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«yyC^ ^eha^tmeTit/ /(w Cnai&
MOSCOW MEETING OF THE COUNCIL OF FOREIGN
MINISTERS • Statementahy the Secretary oj State:
Procedure for Preparation of German Peace Treaty .
Reparations Received by the United States
CONGRESSIONAL HEARINGS ON TRADE AGREE-
MENTS ACT • Statement by Under Secretary Clayton .
INTERNATIONAL BROADCASTING FOUNDATION
OF THE U.S. • Proposal by the Department of State . .
TWO ILO INDUSTRIAL COMMITTEES MEET IN
BELGIUM • Article by Murray Ross ........
607
609
627
618
613
for complete contents see back cover
Vol. XVI, No. 405
April 6, 1947
A^^«
tJ/ie z^e^to/ytm^eni ^j
'^^■^^ o» "■
o/^iate bulletin
Vol. XVI, No. 405 • Publication 2791
April 6,1947
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COUNCIL OF FOREIGN MINISTERS
Moscow Meeting of the Council of Foreign Ministers:
Procedure for Preparation of German Peace Treaty
STATEMENTS BY THE SECRETARY OF STATE
U. S. Position on Peace Conference >
The American Deputy refrained from taking a
position on the peace conference. He did so not
Ijecause the United States is not wholeheartedly
in favor of a peace conference, but because we
thought this matter required the attention of the
Ministers.
It is the view of the United States that this
Coimcil with China as a member should invite all
states at war with Germany to a peace conference
to consider the draft of the peace settlement as
soon as its preparation is sufficiently advanced.
It is our view that all these states should be ac-
corded full and equal rights as members of the
conference. At the close of the conference the
four members of the Council of Foreign Ministers
which prepared the preliminary text of the peace
settlement should, we think, draft the final text
of the settlement on the basis of the recommenda-
tions of the peace conference which are supported
by a two-thirds vote of those present and voting
at the conference, taking into consideration the
other recommendations which are supported by
a majority of those present and voting at the con-
ference. The final text of the peace settlement
when completed should be submitted for signature
by all the states at war with Germany. Respon-
sible representatives of Germany should be given
the opportunity to present their views to the con-
ference. Since, however, the Allies required the
imconditional surrender of Germany, particular
officials should not, in our opinion, be obliged to
take upon themselves the burden of signing the
settlement or voting for its ratification.
We have suggested that the Allies should re-
quire the German Constitution to contain a clause
which clearly provides that all powers thereunder
shall be exercised subject to and in accordance
April 6, 1947
with the peace settlement that may be agreed upon
by and between the Allies. If our view prevails,
when the Germans accept the Constitution, they
will be obliged thereby to accept the peace settle-
ment. Then the German people, and not particular
officials or parties, become responsible for the ac-
ceptance of the Constitution and the peace settle-
ment or statute.
Association of Allies With Council of
Foreign Ministers'
Wliile for practical reasons it may be imprac-
ticable to grant to all the Allies the same degree
of participation at every stage, the United States
hopes that all states at war, large and small, wiU be
granted some degree of participation at all stages.
The United States supports the view that the
cooperation of the Allies in the making of the
peace should not be less extensive than their co-
operation in the war. No state that contributed to
victory should be denied a voice in the peace. For
that reason we welcomed the French proposal for
the setting up of an information and consultation
conference to provide the Allied states with the cur-
rent documentation of the work of the Council, the
Deputies, and the committees, and to afford them
the opportunity to comment and offer suggestions
on the work of the settlement as it progresses.
' Made on Mar. 25, 1947, and released to the press In
Moscow on the same date, and in Washington on Mar. 28.
' Made on Mar. 25, 1947, during discussion of how best
to associate with the Council of Foreign Ministers, in work-
ing out a just and lasting German settlement, the Allies
who joined In the common struggle against Germany;
released to the press in Moscow on Mar. 25, and In
Washington on Mar. 20.
607
i
COUNCIL OF rORBIGN MINISTERS
There would be no voting in this body : it would
provide a channel to keep the Allied states informed
of the work of the Council and the Council in-
formed of the views of the Allied states. In view
of the character of the proposed information and
consultation conference, we see no reason why it
should not include all the states at war with Ger-
many, and we so urge. A number of states which
declared war against Germany did not contribute
armed forces because they were told that they
could contribute more effectively in other ways.
We do not believe that they should be penalized for
taking our advice.
Support of Committees and Conference for
Allied States 3
I should like to refer at this time to what I said
yesterday — that the "Allied states" should specifi-
cally include all states at war with Germany. The
United States has consistently supported the par-
ticipation in the making of peace with Germany by
those states which helped win the war. We want
that participation to be as broad and dignified as
circumstances permit.
In accordance with our belief we agree to the
organization of four permanent committees with
subcommittees as well as to an information and
consultation conference. We insist that these
Allied states who have participated in the winning
of the war, whether they be large or small, should
share at least in some degree the honor as well as
the responsibility for this work. I stress the word
responsibility because I find it of importance that
states associated with the United States in the
winning of the war should shoulder responsibility
for the maintenance of the peace.
I am naturally concerned that our allies in the
Western Hemisphere should be recognized. They
cooperated loyally and often adapted themselves to
our views as to the manner of their participation in
the waging of the war. Just as most men prefer
active combat posts in wartime, Mexico, for ex-
ample, urgently desired to send an expeditionary
force. We recommended against it for logistical
reasons — shortage of shipping, supplies, and so
forth. But Mexico, as did others, made a substan-
tial contribution in other ways, particularly in the
economic field and in manpower. Mexico, there-
'Made on Mar. 26, 1947, and released to the press in
Moscow on the same date and in Washington on Mar. 27.
' Made on Mar. 25, 1947, and released to the press in
Moscow on that date and in Washington on Mar. 26.
fore, should have a dignified place in the making
of the peace. Other American republics should, we
feel be represented on the proposed information
and consultation conference. The countries whose
armed forces fought with us certainly acquired, by
expenditure of men and resources, the right to par-
ticipate in the organizing of the peace at all stages.
Tlie example of Canada, however, would emphasize
what I mean. Canada had over one million in her
armed forces of which 400,000 were under arms as
early as 1941. Canada suffered over 100,000 casual-
ties, provided naval power for the North Atlantic,
was fourth among the nations in air power and ex-
pended about 19 billion dollars for war purposes
to say nothing of the value of vital metals and
other supplies. Facts of this kind cannot be ig-
nored in the selection of our associates who will
work with us in preparing the peace.
I recommend that my colleagues instruct their
deputies to agree to our proposals for the member-
ship of all states at war in the information and con-
sultation conference, and for the participation of
a convenient number of other Allied states in the
permanent committees, and the principal subcom-
mittees. In that way we shall recognize the war-
time contribution of our allies and obtain the bene-
fit of their cooperation in the peace.
Statement on Albania *
The Soviet Delegation has proposed that Al-
bania not only be treated as an Allied state but
be grouped with those states which actively par-
ticipated with their armed forces in the war or
were invaded. The United States Delegation
does not agree that Albania should be so treated
or grouped. Albania as a state was not at war
with Germany and did not declare war on Ger-
many. Albanian troops took an active part allied
to Germany in the treacherous attack on their
valiant neighbor, Greece. The regime now ruling
Albania has declined to recognize that country's
international obligations. Albania was not in-
vited to the Paris Conference as an Allied or as-
sociated power. The United Nations have not yet
agreed that Albania has qualified for membership
with them.
Albania in our opinion has no claim to a privi-
leged position over other states and people who
have fought against the Germans. Other states
have contributed more to the defeat of the Ger-
mans.
608
Department of State Bulletin
The United States Delej^ation therefore sees no
acceptable basis for inviting Albania to partici-
pate in the preparation of the peace settlement.
Position on Yugoslav Representatives '
The United States Delegation does not believe
it is necessary to invite the Yugoslav Government
to send representatives to present their views con-
cerning the report of the Commission on the
financial situation in the free territory of Trieste.
If Yugoslavia should be given a hearing, obviously
the Italian Government should also be invited to
present its view. I am informed that in accord-
ance with its terms of reference which provided
for consultation with the Yugoslav and Italian
authorities in Trieste, the Commission during its
work there in January and February was in con-
stant consultation with these authorities. It is
COUNCIL OF FORE/GN MINISTERS
therefore to be assumed that both the Italian and
Yugoslav Governments are fully informed con-
cerning the work of this Commission.
The report is of a technical nature and deals
with the financial assistance which the free terri-
tory of Trieste, when established, will require. It
is for these reasons the United States Delegation
does not see the necessity for inviting representa-
tives of Yugoslavia to come to Moscow to present
their views on this question to the Council of
Foreign Ministers. The purpose of the Trieste
Commission was by the terms of reference largely
to save the Council of Foreign Ministers the
necessity and time-consuming procedure for ascer-
taining the facts, and the views of the interested
governments. If the representatives of these gov-
ernments are invited here we, in effect, will be re-
doing the work of the Commission.
Reparations Received by the United States
SUMMARY STATEMENT BY THE U.S. DELEGATION"
Tlie United States has thus far received as repa-
rations from Germany:
Industrial capital equipment: (A) Through lARA,
66,666; (B) directly, less than 10,000,000; ships: 5,000,000;
German external assets : 150-250,000,000 ; current produc-
tion : none ; gold : none ; total : less than 275,000,000.
[The tabulation is in dollars.]
A. Industrial capital equipment. As of the end
of February 1947, the Inter-Allied Separation
Agency has been allocated slightly more than
Eeichsmarks 300 million in industrial capital
equipment consisting of 71 plants on advance
reparation account, the general-purpose equipment
from 51 war plants and the equipment included in
French and British emergency removal programs.
Of this amount lARA has completed the alloca-
tion of Reichsmarks 62 million. Of the Reichs-
marks 62 million allocated, the United States has
received approximately Reichsmarks 200,000.
Note : For the purpose of this tabulation the Reichsmark
has been valued at 3 to the dollar.
The United States has made certain removals of
industrial capital equipment from Germany which
have not taken place through the Inter-Allied
Reparation Agency. These removals were ordered
to further our war effort prior to the Japanese
surrender. Evaluation of the removals conducted
by the United States is now being compiled. The
value of all these removals is not large and is not
expected to exceed $10,000,000. When the evalua-
tion has been completed it will be reported to the
Council of Foreign Ministers and the Inter- Allied
Reparation Agency.
B. Ships. The Inter- Allied Reparation Agency
has allocated practically all ships assigned to it by
the tripartite Merchant Marine Commission. The
value of these ships has been placed at Reichs-
marks 220 million. The United States has received
ships valued at Reichsmarks 15.5 million.
C. German external assets. External assets to
be received from Germany as reparation by all
members of the Inter-Allied Reparation Agency
is expected to amount to less than $600 million.
No final figures can be given because of liquidation
still in progress. The United States will receive
between $150 and $250 million. The amount to
be realized by the United States cannot be stated
with greater accuracy at this time, because of doubt
as to whether one substantial asset is in fact
German or of other nationality. This doubt is be-
ing resolved in the courts.
'Made on Mar. 27, 1947, and released to the press in
Moscow on the same date and in Washington on Mar. 28.
' Paper circulated within the Council of Foreign Min-
isters in Moscow on Mar. 25, 1947, and released to the
press in Moscow on the same date and in Washington on
Mar. 26.
AprW 6, 1947
609
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of March 30, 1947
Far Eastern Commission
United Nations:
Security Council
Military Staff Committee
Commission on Atomic Energy
Telecommunications Advisory Committee
Economic and Social Council: Fourth Session
Commission on Conventional Armaments . .
Trusteeship Council
German External Property Negotiations (Safehaven) :
With Portugal
With Spain
Inter-Allied Trade Board for Japan
PICAO:
Interim Council
Air Transport Committee: Sixth Session
Airworthiness Division
Airline Operating Practices Division . .
Inter-Allied Reparation Agency (lARA) : Meeting on Con-
flicting Custodial Claims.
International Court of Justice .
Council of Foreign Ministers . .
International Wheat Conference
Scheduled March-May 1947
World Health Organization (WHO) : Third Session of In-
terim Commission.
International Wool Study Group
Interparliamentary Union: 36th Plenary Session . . . .
UNESCO Executive Board
International Conference on Trade and Employment:
Second Meeting of Preparatory Committee.
International Red Cross Committee
United Nations:
Meeting of Experts on Passport and Frontier Formali-
ties.
Permanent Central Opium Board
Committee on Progressive Development and Codifica-
tion of International Law.
ECOSOC:
Subcommission on Statistical Sampling
Washington .
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lisbon .
Madrid
Washington .
Montreal
Montreal
Montreal
Montreal
Brussels
The Hague
Moscow . .
London . .
Geneva
London
Cairo .
Paris .
Geneva
Geneva
Geneva
Geneva . . .
Lake Success .
' Prepared in the Division of International Conferences,
' Tentative.
Lake Success . . . .
Department of State.
1946
Feb. 26
Mar
25
Mar
25
June 14
Nov
10
1947
Feb.
28-
Mar. 29
Mar
24
Mar
26
1946
Sept
3
Nov
12
Oct.
24
1947
Jan.
7-Apr. 2
Jan.
13-Feb. 13
Feb.
20-Mar. 16
Feb.
25-
Mar. 30
Jan.
29-
Recessed Mar.
22
; will reconvene in
May.
Feb. 10
Mar. 10
Mar. 18-. Temporarily
adjourned; will recon-
vene Apr. 14.
Mar. 31
Mar. 31-Apr. 3
Apr. 7
Apr. 9
Apr. 10
Apr. 14-26
Apr. 14
Apr. 14
May 1 2
Apr. 14'
610
Deparfment of Sfafe Bulletin
Calendar oj Meetings — Continued
ECOSOC— Continued
Subcommission on Protection of Minorities and Pre-
vention of Discrimination.
Fiscal Commission
Subcommission on Freedom of Information
Social Commission
ICAO (International Civil Aviation Organization):
European-Mediterranean Special Air Traffic Control
Conference.
Interim Council
First Meeting of General Assembly
International Tin Study Group: First Meeting
European Central Inland Transport Organization
(ECITO) : Seventh Session of the Council.
Fifth International Hydrographio Conference
ILO:
Industrial Committee on Coal Mining
Industrial Committee on Inland Transport
American International Institute for the Protection of
Childhood: Meeting of International Council.
International Meeting of Marine Radio Aids to Naviga-
tion.
FAO:
International Timber Conference
Rice Study Group
International Refugee Organization (IRO) : Second Part
of First Session of Preparatory Commission.
Congress of the Universal Postal Union
International Radio Conference
International Technical Committee of Aerial Legal Ex-
perts (CITEJA).
International Emergency Food Council (lEFC) : Fourth
Meeting.
Lake Success
Lake Success
Lake Success
Lake Success
Paris
Montreal
Montreal
Brussels
Paris
Monaco
Geneva
Geneva
Montevideo .
New York and New London
Marianske-Lazne, Czechoslo-
vakia.
Southeast Asia
Geneva
Paris
Atlantic City
Montreal
Washington
Apr. 21 '
Apr. 28 >
May 5'
May 26 »
Apr. 15
Apr. 29
May 6
Apr. 15-18
Apr. 17 »
Apr. 22
Apr. 22
May 6
Apr. 25
Apr. 28-May 10
Apr. 28-May 10
May
May 1
May 6
May 15
May
May
Activities and Developments »
ALLIED TRADE REPRESENTATIVESIIN JAPAN*
1. The Far Eastern Commission establishes as
a policy decision the following status for the Allied
trade representatives in Japan.
2. The trade representatives shall represent
their governments and for the time being exercise
the following functions :
(a) To know what items are desired by their
' Poliey decision approved by the Par Eastern Commis-
sion on Mar. 13, 1947, and released to the press Mar. 24.
A directive based upon this decision has been forwarded
to the Supreme Commander for the Allied Powers for
implementation.
April 6, 1947
611
ACTIVITIBS AND DEVELOPMENTS
governments for import from Japan and for ex-
port to Japan.
(h) To keep the Supreme Commander for the
Allied Powers currently informed as to progress
of import and export programs, and items re-
quested or suggested by their governments.
(c) To accept for their governments terms of
sale, with Japanese selling agencies, agreed to by
the Sujireme Commander for the Allied Powers.
(d) To accept delivery of Japanese exports
f .o.b. Japanese port, and to handle details of ocean
shipping and insurance.
(e) To deliver to the Supreme Commander for
the Allied Powers all documents from their gov-
ernments covering imports and to facilitate such
importation and delivery.
(/) To supply the Supreme Commander for the
Allied Powers with all financial data such as costs,
sale prices, and claims, and any necessary docu-
ments affecting imports from and exports to their
governments.
(ff) To maintain an operating relationship with
military or diplomatic liaison missions which their
governments have established in Japan, in order to
coordinate action and take care of routine matters
such as communication.
(h) The trade representatives may use secret
code for communication with their governments
through the Missions of their governments in
Japan.
3. The functions of the Allied trade representa-
tives defined in this interim document may sub-
sequently be reviewed by the Far Eastern Com-
mission in the light of experience.
REVIEW OF NEW JAPANESE CONSTITUTION >
1. The new constitution, which will in due sea-
son after promulgation become the legal successor
of the present constitution with such changes as
have been made or may be made as a result of con-
sideration and policy decision of the Far Eastern
' Policy decision approved by the Far Eastern Commis-
sion on Oct. 17, 1946, and released to the press Mar. 27,
1947. A directive based upon this decision has been for-
warded to the Supreme Commander for the Allied Powers
for Implementation.
' For article on "American Wool Import Policy" by James
Gilbert Evans, see Bulletin of Nov. 3, 1946, p. 783. For
"Statement by Heads of Delegations to International ^Yool
Talks", see Bulletin of Nov. 24, 1946, p. 942. For "Report
on International Wool Talks" by Clarence W. Nichols, see
Bulletin of Dec. 29, 1946, p. 1166.
Commission, shall be subject to further review by
the Diet and the Far Eastern Commission in terms
of the following paragraph.
2. In order that the Japanese people may have
an opportunity, after the new constitution goes
into effect, to reconsider it in the light of the ex-
perience of its working, and in order that the Far
Eastern Commission may satisfy itself that the
constitution fulfills the terms of the Potsdam Dec-
laration and other controlling documents, the Com-
mission decides as a matter of policy that,
not sooner than one year and not later than two
years after it goes into effect, the situation with
respect to the new constitution should be reviewed
by the Diet. Without prejudice to the continuing
jurisdiction of the Far Eastern Commission at
any time, the Commission shall also review the
constitution within this same period. The Far
Eastern Commission, in determining whether the
Japanese constitution is an expression of the free
will of the Japanese people, may require a refer-
endum or some other appropriate procedure for
ascertaining Japanese opinion with resjject to the
constitution.
U. S. DELEGATION, TO INTERNATIONAL
WOOL STUDY GROUP
[Released to the press March 26]
The Acting Secretary of State announced that
the President has approved the composition of
the American Delegation to the First Meeting of
the International Wool Study Group, which is
scheduled to be held at London beginning March
31, 1947.^ The nominations were submitted upon
the recommendation of the Secretary of Agricul-
ture, Clinton P. Anderson, and the Acting Secre-
tary of State, Dean Acheson. The composition of
the Delegation is as follows :
Delegate
Leslie A. Wheeler, Director, Office of Foreign Agricul-
tural Relations, Department of Agriculture
Alternate Delegate
Donald D. Kennedy, Chief, International Resources Divi-
sion, Department of State
Advisers
Robert B. Schveenger, Head, International Economic
Studies Division, Office of Foreign Agricultural Rela-
tions, Department of Agriculture
Paul O. Nyhus, Agricultural Attach^, .\merican Embassy,
London
Adviser and Secretary of the Delegation
J. Russell Ives, Agricultural Economist, Livestock Branch,
Production and Marketing Administration, Depart-
ment of Agriculture
612
Department of State Bulletin
Two ILO Industrial Committees Meet in Belgium
ARTICLE BY MURRAY ROSS
The program of the newly established industrial
committees of the International Labor Organiza-
tion registered further progress with the holding
of the initial meetings of the Textiles Committee
and the Building, Civil Engineering and Public
Works Committee in Brussels, Belgium, from No-
vember 14 to 22 and November 25 to December 3,
1946, respectively. The sessions of the Textiles
Committee were attended by representatives of
governments and of employers' and workers'
organizations from 18 leading textile-producing
countries of the world, including Australia, Bel-
gium, Canada, China, Denmark, Egypt, France,
India, Italy, Mexico, the Netherlands, Norway,
Peru, Poland, Sweden, Switzerland, the United
Kingdom, and the United States. At the building-
trades conference, tripartite delegations were pres-
ent from 19 countries, including Australia, Bel-
gium, Brazil, Canada, Chile, China, Denmark, Fin-
land, France, India, Italy, the Netherlands, Nor-
way, Poland, Sweden, Switzerland, the Union of
South Africa, the United Kingdom, and the
United States. During their extended delibera-
tions, delegates to each of the mdustrial commit-
tees reviewed the various social and economic as-
pects of their respective fields and adopted a series
of resolutions seeking the improvement of labor
standards in the world textile and building-trade
industries. The resolutions stressed achievement
of full employment based on sound production
organization and methods, formulation of stable
industrial-relations principles and practices, and
adherence to an international minimum level of
labor standards and social security.
Textiles Committee
The meeting of the Textiles Committee was held
under the chairmanship of Radi Bey of Egypt.
The employers' and workers' groups of the Gov-
erning Body of the ILO were represented by Louis
E. Cornil, an official of the Belgian Ministry of
Labor and chairman of the Belgian Federation of
Employers, and Paul C. Finet, president of the
Belgian Federation of Workers, respectively. The
United States Government was represented by
Robert J. Myers, Assistant Commissioner of Labor
Statistics, Department of Labor, and Rene Lutz,
Leather and Textile Division, Department of Com-
merce. Verl E. Roberts of the Wage and Hour
and Public Contracts Divisions, Department of
Labor, and Murray Ross, Division of International
Labor, Social and Health Affairs, Department of
State, served as advisers to the Government dele-
gates. Herbert H. Schell, president of Sidney
Blumenthal and Company, Inc., and Edwin Wil-
kinson, assistant to the president of the National
Association of Wool Manufacturers, represented
United States employers. Lloyd S. Klenert and
John Vertente, Jr., of the United Textile Workere
of America, A. F. of L., represented United States
workers.
In accordance with the procedure previously
established by the Governing Body of the ILO
and followed at the meetings of the inland trans-
port, coal mining, iron and steel, and metal trades
industrial committee meetings, the conference pro-
ceeded to use the detailed report of the Interna-
tional Labor Office as a point of departure for its
opening discussions. Representatives from the
various countries reviewed the significant social and
economic problems facing their respective textile
industries and emphasized what they regarded as
the essential measures for the pursuit of healthy
social and economic policies. Following this pre-
liminary exchange of views, the conference estab-
lished two subcommittees to explore in detail prob-
lems of production and social welfare. The work
of both subcommittees was strongly influenced by
the magnitude of the current shortage of textiles
of all kinds.
The Subcommittee on Production and Related
Questions turned its attention to questions of full
emi^loyment, reduced working hours, training of
personnel, and a guaranteed adequate minimum
weekly wage. The discussion on these points
stressed principally the necessity of raising the
economic status of the workers in the textile in-
dustry. The workers' representatives expressed
the desire that wages and other conditions of work
in the industry should be brought up to a level
April 6, 7947
613
ACTIVITIES AND DEVELOPMENTS
equal to that of other industries, both on grounds
of social justice and for economic reasons. Gen-
eral agreement prevailed on the point that only
by materially improving the status of the textile
workers would it be possible to recruit trained
workers in sufficient numbers to meet the current
increased need for textile products in all countries
of the world. Having thus established its general
frame of reference, the subcommittee proceeded to
the formulation of specific resolutions.
After agreeing upon a number of inquiries and
studies dealing with industry and labor practices
which the International Labor Office would be
asked to undertake for the Textiles Committee,
the subcommittee turned to the subject of full em-
ployment. To begin with, the principles of the
Declaration of Philadelphia were endorsed. The
resolution then expressed the belief that govern-
ments, no less than industry, have an important
function to fulfil in maintaining full employment
and urged the cooperation between governments,
employers, and workers in the textile industry in
each country as well as the fullest utilization of all
resources in raw materials and equipment based
on international cooperation. Supplementing the
above resolution introduced by the workers' group
was one on the need for increased production sub-
mitted by the employers' group. This resolution
declared that an emergency exists in the form of
a serious shortage of all types of textiles immedi-
ately required by the peoples of the world, and
invited governments, employers, and workers to
contribute their utmost to increase world produc-
tion immediately.
The consideration of reduction in hours of work
led to an extensive debate. At the outset of the
discussions, emphasis was placed almost exclu-
sively on a recommendation to ILO member states
to ratify at once the convention relating to the
4:0-hour week in the textile industry. A series of
measures was outlined which would be instru-
mental in achieving for the industry conditions
favoring a reduction in the hours of work, and
attention was called especially to the importance
of re-equipping the industry with modern ma-
chinery in order to achieve the most efficient pro-
duction possible. In support of this position, the
workers urged in particular that the solution of
the obstacles to production should not be sought
by lengthening hours of work but rather by the
modernization of equipment and production
methods in the industry.
In recognition of the difficulties with which the
industry was currently faced, the workers indi-
cated that it was not their intention to ask for the
immediate application of the 40-hour week. The
employers, without questioning the principle of
the 40-hour week, emphasized that the present
shortage of textiles in the world and the recon-
struction needs of war-devastated countries made
the immediate application of the 40-hour week in-
opportune. Several government representatives
pointed out that the 40-hour week might serve as
an attraction for bringing back to the textile in-
dustries th§ workers which they require. The view
was also expressed that the principle of the 40-
hour week should be accepted on the international
plane because it would facilitate the equalization
of competitive conditions between different coun-
tries. The resolutions finally adopted on this point
reconciled the divergent views expressed by the
various groups and declared that "the adoption of
a working week of not more than 40 hours in the
textile industry is ultimately inevitable".
The question of wages and income was dealt
with in two separate resolutions. The first urged
states members of the ILO to recommend to em-
ployers' and workers' organizations in the textile
industry to enter into negotiations with a view to
determining a guaranteed adequate minimum
weekly wage for every textile worker, and to de-
clare their support of international policies aimed
at guaranteeing an adequate weekly minimum in
the textile industries of their resj^ective countries.
The second i-esolution expressed the view that
wages paid to workers in the textile industry
should not suffer by comparison with those paid
to workers in industry in general for woi'k re-
quiring similar skill and effort. Furthermore, it
urged the governments of states members to define
their attitude toward the principle of equal re-
muneration for woik of equal value suggested in
the ILO constitution. The last resolution dealt
with the recruitment and training of personnel
and endorsed the principle of improved labor
standards for attracting the necessary labor force.
The Subcommittee on Social Security and Wel-
fare confined its terms of reference to improved
working conditions and welfare facilities, social
security, and holidays with pay. Its first resolu-
tion declared that working conditions have a
614
Department of Sfofe Bulletin
marked influence on the efficiency and pi'oduc-
tivity of workers; that efforts are continually be-
ing made to improve these conditions ; and recom-
mended further specific improvements. The
second resolution urged joint mixed factory com-
mittees to promote health and welfare and the
prevention of accidents. The third resolution
approved the extension of social services provid-
ing for insurance against the principal risks to
which the workers are exposed and requested the
ILO to undertake studies of the conditions of
textile workers in relation to social security in the
various countries. The last resolution endorsed a
minimum two weeks' annual vacation with pay
after a suitable length of service and urged that
this be established in addition to compensated
public holidays.
In addition to the above resolutions proposed by
the subcommittees and approved in plenary ses-
sion, the Committee adopted a general statement
on its work, pointing out that the modernization
of the industry is essential if the production of
textiles is to be increased and the workers in the
industry are to enjoy improved conditions and
greater security which are so desirable. In this
connection the Committee stressed that the output
of machinery and equipment is insufficient and
therefore it requested the Governing Body of the
ILO to draw the attention of governments and of
the competent specialized agencies of the United
Nations to this problem.
The final action of the Committee, and one of
considerable significance from the standpoint of
international implications, related to the develop-
ment of the textile industries in Germany and
Japan. From almost the very inception of the
meeting, some members of the employers' group
expressed considerable apprehension concerning
the reconstruction of the German and Japanese
textile industries. Their fears centered around an
undue emphasis which might be placed on these
industries in the Allied reconstruction plans of
demilitarized economies in these countries. In a
strongly worded resolution they sought official
international support in their struggle to defend
their home and foreign markets, in the event they
were confronted with unfair competition from the
reconstructed textile industries of Germany and
Japan. After some basic revisions introduced by
the United States Government representative and
ACTIVITIES AND DEVELOPMENTS
by the workers' group, the resolution was adopted
in the following form :
"The Textiles Committee of the I. L. O. meeting
in Brussels, 14-22 November, 1946, has taken note
of reports that the future industrial development of
Germany and Japan will emphasise the manufac-
tui-e of textiles, together with other products re-
garded by the Occupying Powers as non-military.
While recognising the present world shortage of
textiles and the disorganised state of the textile
industries in these countries, the Committee notes
that the substantial expansion of such industries
may, at a later date, seriously affect standards in
the textile industries of other countries.
"The Committee fears the danger of unfair com-
petition from Germany and Japan, whether be-
cause of inadequate labour standards or dumping
or for any other reason. The Committee :
^'■proposes that this problem be brought to the
attention of the Governing Body of the I. L. O. and
that the Governing Body be asked to bring it im-
mediately to the notice of the Economic and Social
Council and other international organisations con-
cerned; and
"caKs for study of this problem and other ap-
propriate action by these authorities to help the
threatened countries in maintaining the stability
of their industry.
"It insists that the Japanese and German tex-
tile economies shall be based upon a policy of en-
suring to textile workers in both countries wages,
earnings, hours and other conditions of work cal-
culated to ensure a minimum living wage to all
employed, in conformity with the Declaration of
Philadelphia of 10 May 1944, and that the princi-
ple of collective bargaining be fostergd and en-
couraged".
Building, Civil Engineering and Public
Works Committee
The meeting of the Building, Civil Engineering
and Public Works Committee was held under the
chairmanshiiJ of Dr. A. H. W. Hacke, Director
General of Labor for the Netherlands Govei-n-
ment. The employers' and workers' groups of the
Governing Body were represented by Louis E.
Cornil, chairman of the Belgian Federation of
Employers, and Kobert J. Watt, international
representative of the A. F. of L., respectively.
The United States Government was represented
April 6, 1947
615
ACTIVITIES AND DEVELOPMBNTS
by Robert J. Myers, Assistant Commissioner of
Labor Statistics, Department of Labor, and
Winchester E. Reynolds, Commissioner of Public
Buildings, Federal Works Agency. Herman B.
Byer, Assistant Chief of the Employment and
Occupational Outlook Branch, Bureau of Labor
Statistics, Department of Labor, and Murray
Ross, Division of International Labor, Social and
Health Affairs, Department of State, acted
as advisers to the Government members. Vincent
P. Ahearn, executive secretai-y of the National
Sand and Gravel Association, and Edward P.
Palmer, president of Senior and Palmer, Inc.,
represented the United States employers. Corne-
lius J. Haggerty, secretary of the California Fed-
eration of Labor, and Charles Jolinson, Jr., execu-
tive board member of the United Brotherhood of
Carpenters and Joiners of America, A. F. of L.,
served as representatives of United States workers.
Although the problems of the building trades are
quite different in many respects from those facing
the textile industries, the Committee followed the
same general organizational pattern. After some
preliminary discussions on the basis of a report
prepared by the International Labor Office, three
subcommittees were established to consider in de-
tail the problem of production and reconstruction,
conditions of work, and industrial relations. The
deliberations of all the subcommittees were domi-
nated by the enormous current requirements for
construction work of all kinds.
The Subcommittee on General Problems Relating
to Production and Reconstruction adopted a state-
ment in which it declared that reconstruction must
not be considered merely in terms of the tasks con-
fronting the different countries individually but
should be regarded as a collective task for all the
nations, and endorsed all economic, financial, or
political measures which will facilitate access to
raw materials for such countries as stand most in
need of them and are without them. The general
statement also declared that there are five main
problems relating to production and reconstruc-
tion: (1) program; (2) production; (3) recon-
struction ; (4) recruitment and vocational training
of manpower; (5) stabilization of employment.
The resolution covering the first point recog-
nized the acute shortage of housing accommoda-
tions and urged remedy of this situation with the
least possible delay. To achieve this end it
appealed to all those connected with the building
trades to maximize their productivity, and to gov-
ernments to stimulate and maintain such efforts
of the industry by establishing programs of work
to cover a fairly long period of time. On the sub-
ject of production, the resolution recommended
that no means be neglected of increasing produc-
tivity in the industry by the adoption of new tech-
niques including the use of alternative materials
and of modern mechanical equipment. It simi-
larly stressed the considerable advantages of
standardization of components in construction in-
dustries and urged the preparation of codes of
practice in order to facilitate further standardiza-
tion and thus expedite execution of large construc-
tion programs now in progress in most countries.
The resolution dealing with problems of recon-
struction left to governments the task of deter-
mining the order of reconstruction for their re-
spective countries. In order to avoid unnecessary
delays the resolution recommends that the respec-
tive authorities make all the essential preliminary
preparations, including plans, drawings, etc., and
properly synchronize the several phases of the
reconstruction process. The resolution notes that
there are shortages of building materials and
mechanical equipment in many countries, while in
many others some of these materials and equip-
ment may soon become available for export, and it
recommends to governments that all planned pro-
grams for the production of materials and equip-
ment should be regarded as an essential factor in
reconstruction and that every effort be made to
insure that the materials- and equipment-produc-
tion industries are adequately manned. Further-
more, in view of the urgency of building and civil-
engineering construction, it proposes that, in any
plans devised, special attention should be paid to
eliminating, by all the means compatible with the
circumstances, any difficulties currently resti'icting
international trade in these particular commodi-
ties, without, however, prejudicing national
markets.
On the subject of recruitment and vocational
training of manpower in the construction indus-
tries, the resolution noted the shortage of skilled
labor in the majority of countries and recom-
mended that in the international field the volun-
tary movement of available manpower take place
from countries with a surplus to those experienc-
ing shortiiges. In the national field it urged the
increase in numbers of craftsmen practicing the
616
Deparfmenf of State Bulletin
various trades which are within the scope of the
construction industry. The final resolution
emei'ging from this subcommittee deals with
stabilization of employment. It emphasizes the
universal necessity of achieving maximum pro-
duction and full employment in the construction
industries, thereby making possible a high level
of consumption, the payment of proper wages,
and the provision of satisfactory terms and con-
ditions of employment. To this end the resolution
suggests that governments should continuously
review their existing policies relating to expendi-
tures, taxation, and domestic and foreign trade.
Having in mind the regularization of activities in
the industry for the stabilization of employment,
and conscious of the necessity of prompt action
upon the approach of any possible threat of a
business depression, the resolution draws the at-
tention of governments to the need of organizing
the collection of statistical information which will
facilitate the forecasting of an impending crisis.
The Subcommittee on General Conditions of
Work addressed itself to problems of a more lasting
character and not only to those characteristic of
the immediate reconstruction era. In one omnibus
resolution the subcommittee declared its stand on
matters of safety and health, social security,
methods of remuneration, hours of work, holidays
with pay, and stabilization of employment and
earnings. In order to insure the full protection of
workers in the construction industries against
accidents occurring in the course of their employ-
ment, the resolution called ujjon states members to
consider the desirability of early ratification of
the ILO Safety Provisions (Building) Convention
of 1937. It also expressed supj^ort for the pro-
posal to establish a mixed committee with the
World Health Organization, to deal with ques-
tions concerning industrial hygiene, with special
attention to the health problems of the construc-
tion industries.
With reference to social security the resolution
recommended the development in all countries of
systems of social insurance which would guaran-
tee protection against all the major hazards of
modern industrial life. Considerable discussion
took place on the subject of the 40-hour week.
Owing to the excessive work load and lack of
manpower and materials facing the industry in
almost every country, it was felt inappropriate to
urge the universal adoption of the 40-hour week
ACTIVITIES AND DEVELOPMENTS
until substantial progress had been made in the
rehabilitation and reconstruction of devastated
areas. However, convinced that the reduction in
the hours of work is an objective to be attained as
soon as conditions permit, the resolution requested
the Governing Body of the ILO to place the
question of the 40-hour week on the agenda of
the next meeting of the Committee.
Another part, of the resolution endorsed the
workers' right to paid vacations and requested the
ILO to undertake studies of the most suitable
schemes to overcome the practical difficulties in
this matter arising from the fluctuations in em-
ployment. Lastly, the resolution recommended to
employers' and workers' organizations that they
consider the principle of assuring to the worker
payment for a minimum number of hours each
week irrespective of time lost due to inclement
weather. In this connection the ILO was re-
quested to undei'take an investigation into the law
and practice of guaranteed weekly wages in the
various countries.
The second resolution of the subcommittee
drew attention to the inadequacy of rural housing
and requested the ILO to undertake inquiries on
the subject and make its findings generally
available.
The Subcommittee on Industrial Relations pro-
posed a total of five resolutions. The first, which
appeared in the form of a preamble, noted the
progressive improvement in relations between
employers and workers in the constmiction indus-
tries of the world. It also stressed the compati-
bility of safeguarding occupational interests with
a full regard for the interests of the public as a
whole. The second resolution endorsed industrial
peace, underlined the sanctity of the labor contract,
and urged resolution of all differences on the basis
of mutual confidence and good faith. The third
resolution endorsed the existence of free trade-
union organizations as a basis for proper man-
agement-labor relations in the construction indus-
tries. The fourth resolution urged, upon govern-
ments as well as upon workers' and employers'
organizations, that they examine the possibility
of establishing in each counti'y national joint com-
mittees for the construction industries. These
committees would have the double function of ex-
ploring the social and economic problems of the
various branches of these industries and of pro-
(Continued on page 636)
April 6, 1947
617
THE RECORD OF THE WEEK
International Broadcasting Foundation of tlie United States
PROPOSAL BY THE DEPARTMENT OF STATE
March 1, WJfV
To : The Secretary
From : William, Benton
Subject: The Organisation of International
Broadcasting ty the United States
Secretary Byrnes asked me to study and to re-
port to him on the permanent organization of in-
ternational voice broadcasting emanating from the
United States. This assignment was especially
challenging to me because of my long experience
with domestic broadcasting, and because of the op-
portunity I have had since my appointment to the
State Department to observe the points of similar-
ity and difference between international broad-
casting and domestic.
On January 1, 1946, I recommended that the
temporary arrangement then and now existing, in
which responsibility for international broadcast-
ing is centered in the Department of State, be
continued on an interim basis into fiscal 1947. The
Congress provided funds for this purpose with the
understanding that long-range recommendations
would be forthcoming during the fiscal year now
current.
This memorandum, and the accompanying draft
charter, presents such recommendations. I am
submitting this plan with the suggestion that, if
you approve it, you may wish to forward it to the
Congress for discussion and action. The issues and
potentialities involved in our intei'national broad-
casting are so vital to the national interest, and so
far-reaching, as to call for Congressional consider-
ation, wholly aside from the necessity for the legal
and financial authorization involved in the particu-
lar plan outlined here.
My suggested plan removes from the Depart-
ment of State the responsibility for conducting
international broadcasting. It calls for the crea-
tion of a public corporation, supported with public
618
funds, to conduct and to stimulate international
broadcasting, under the guidance and direction of
a board of trustees of distinguished private
citizens.
Broadcasting — An Instrument of Peace
Radio broadcasting is a unique — and a magnifi-
cent— instrument for advancing understanding
among the peoples of the world. Its potentialities
are unequalled for the task of projecting to foreign
peoples that full and fair picture of American life,
and of the aims and policies of the United States
Government, which the President and the Congress
have affirmed as an integral part of the objectives
of the United States in its foreign relations.
Radio can reach people throughout the world
who have no ready access to other kinds of com-
munication facilities, and can reach them directly
and instantaneously. It is not hamisered by such
familiar barriers to the flow of printed or pictorial
material as remoteness, restrictions on foreign ex-
change, shortages of i^aper or film-stock, cai'tel or
tariff hurdles ; or even by the barrier of illiteracy.
These barriers and others, in combination, have
in the past meant that a substantial proportion of
the earth's population has been insulated from in-
formation about developments in the United
States.
No less important is the fact that radio is not
subject to censorship at national boundaries.
Something like 75 percent of the earth's popula-
tion— regrettably — lives today under some degree
of censoi'ship blackout or dimout, particularly with
respect to news. Radio thus offers the surest
means of reaching the individual with information
direct from an American source and without inter-
vening selection, processing, slanting, or suppres-
sion.
International radio is already a tremendous ac-
Department of Stafe Bulletin
tuality. Thirty-four nations are today beaming a
total of over 3,200 program-hours per week by
short wave across their borders for foreign con-
sumption. But the promise of international
broadcasting far exceeds this present performance.
It is reasonable to expect technical improvements
that will greatly improve the quality of trans-
mission.
The use of short-wave signals, which carry for
gi-eat distances, is the principal method of inter-
national broadcasting. It is estimated that there
are today 20,000,000 sets outside the United States
capable of receiving short-wave signals. It is a
certainty that the number of receiving sets dis-
tributed throughout the world will be multiplied
many times. The Soviet Union, for example, has
announced that it expects to be producing receivers
at the rate of 925,000 sets a year by the end of the
current Soviet Five- Year Plan, including several
types capable of receiving short wave.
The habit of short-wave listening tends to be
more highly developed abroad than liere, and the
number of listeners per set is greater. However,
short wave, even when it is "boosted" by relay
stations abroad, or converted into standard wave
or long wave, is not the sole method of inter-
national broadcasting. Exchange of programs
among the domestic stations or networks of various
countries, either "live" or by transcription, is a
practice that has great potentialities. Today 19
nations are picking up our short-wave "Voice of
America" and carrying our programs on their own
domestic medium- or long-wave stations. More
than 10,000 letters a month now come to the "Voice
of America" from listeners abroad.
Thus radio is not only today the great instru-
ment of "peoples speaking to peoples" but it prom-
ises to become far greater. It is incumbent on the
people of the United States constructively to use
this powerful new force in international relations
between peoples to promote the cause of world
understanding and world peace.
International Broadcasting by the U.S.
Before the War
Despite the spectacular development of domestic
radio in the United States— there are 60,000,000
receiving sets in the United States today — we have
been, as a nation, negligent and backward in recog-
nizing how great a national asset international
broadcasting can be. In 1940 the gross income of
our domestic stations and networks exceeded $150,-
April 6, 1947
THE RECORD OF THE WEBK
000,000. This figure represents only a portion of
the total national outlay for domestic broadcasting,
since it does not include major "talent" costs. In
the same year approximately $1,000,000 was spent
for international broadcasting. There were nearly
900 stations for domestic broadcasting and only
11 transmitters for international short-wave voice
broadcasting.
A big reason for this discrepancy is that domestic
broadcasting is profitable to the broadcasters, and
international broadcasting is not. There have
been financial rewards for enterprise in domestic
broadcasting. There have been no financial re-
turns for the enterprise and expense involved in
international broadcasting — and little prospect of
any.
The fact that there were six American corpora-
tions engaged in short-wave international broad-
casting in 1940 — on a minor or experimental
basis — is a tribute to their pioneering spirit, even
though their total output was clearly inadequate,
from a national or a world viewiDoint, as measured
against the need and the opportunity. These six
private companies, and a seventh which came into
the field during the war, are unanimously agreed
upon the vital importance of international broad-
casting. They also appear to be agreed that, at
least for the discernible future, the hope of profits
or of non -commercial private supjDort is too dim to
attract private broadcasters into operation on the
scale required by the national interest.
Brig. Gen. David Sarnoff, president of the Eadio
Corporation of America, a pioneer in international
broadcasting, reports that, before the war, the total
income of United States corporations from all in-
ternational broadcasting was only $200,000. In
1943 General Sarnoff estimated that, after the war,
our national interest would require "at the start
not less than $15,000,000 or $20,000,000 a year for
international radio activities, as well as unification
of purpose and policy". He stated that private
industry could not be expected to supply the neces-
sary service.
Considerations of potential profit have not been
the motivation in the development of international
broadcasting by other nations. International
broadcasting has been conducted from the be-
ginning throughout most of the world only by
governments, without interest in commercial spon-
sors or in profits. Many nations had entered the
field before the war — notably Great Britain, Ger-
619
THE RECORD Of THE WEBK
many, and Italy. All of the 34 nations engaged
in international broadcasting today are operating
on a governmental basis.
The war produced a tremendous increase in the
volume of international broadcasting both here
and abroad. Of the total volume of international
short-wave jirogramming now on the air, as
measured in program-hours, only 13 percent ema-
nates from the United States; whereas 49.6 per-
cent emanates from Europe and another 10.5 per-
cent emanates fi-om African transmitters, most of
which are inider control of European nations. The
end of hostilities brought some recession in total
volume, with Germany and Japan going off the
air, and the major powers cutting down somewhat
(notably the United States). However, this re-
cession promises to be only temporary. The pres-
ent volume far exceeds the pre-war level, and is
again rising, with new and improved transmitters
coming on the air.
Impact of the War on U.S. International
Broadcasting
The onset of war made clear, dramatically and
at once, the vital importance of projecting to allied
and neutral peoples, and to the peoples of enemy-
occupied areas, an account of American news, of
American and Allied aims and policies, and of the
advances and setbacks on the road to victory.
Kadio was obviously an essential and invaluable
instrument to that end. It was also a weapon for
psychological warfare against the enemy.
The U.S. Government, through the Office of
War Information and the Office of Inter- American
Affairs, took over by contract the financing and
control of the international broadcasting of the
seven private operators; tripled the number of
transmitters; established relay points overseas;
and increased the output to 1,123 program-hours
a week, in 34 languages.
The "Voice of America" thus created made a
notable contribution to the victory, as American
military leaders have gladly attested. It also con-
tributed to a better understanding of America
among foreign peoples, and toward building the
substantial audience which now tunes in on our
peacetime programs.
The Present Situation
Almost coincident with V-J Day, the President,
in his Executive order of August 31, 1945, trans-
ferred the international information activities of
620
the OWI and OIAA to the State Department,
pending completion of a study by the Department
of our peacetime needs in the dissemination
abroad of information about the United States.
Congress approved the use of portions of the un-
expended appropi-iations for OWI and OIAA for
the interim period until June 30, 1946. On Janu-
ary 1, 1946, the Department established its Office
of International Information and Cultural Af-
fairs, which represented the merger of such OWI
and OIAA activities as were adapted to peace-
time needs, and of two previously existing
divisions of the State Department.
For more than a year now, the "Voice of Amer-
ica" broadcasts have been continued under the
direction of the Department; but present ex-
penditures are 56 percent below the wartime
peak of approximately $18,000,000; the number of
languages has been reduced to 25; all psycho-
logical warfare has been eliminated; and the en-
tire programming operation has been adjusted to
peacetime standards. Government contracts with
the private operators have been continued.
Of the $19,284,778 appropriated by Congress
for the over-all activities of the Office of Inter-
national Information and Cultural Affairs for
fiscal 1947, $8,600,000, or almost half, is for in-
ternational radio. The latter figure was ap-
proved after the Department had made repre-
sentations to congressional appropriation commit-
tees about the necessity for preventing the disin-
tegration of the present structure to its pre-war
state and level, and after the Department had as-
sured Congress that recommendations for the
permanent organization of international broad-
casting would be presented during fiscal 1947.
The Proposed Public Corporation
The permanent organization which I propose
would take full responsibility for international
voice broadcasting emanating from the United
States and would serve to stimulate such broad-
casting by private agencies. I propose the cre-
ation of a public corporation, for which the name,
"The International Broadcasting Foundation of
the United States", is suggested. The Founda-
tion would be managed by a board of 15 trustees.
The cliairman of the board of trustees would
serve as the full-time operating director of the
Foundation. One member of the board would be
the Secretary of State, or an Assistant Secretary
Deparfmenf of Sfafe Bulletin
designated by him. The other members of the
board would be outstanding private citizens. The
board would be appointed by the President with
the approval of the Senate. With the exception of
the chairman, its members would serve without
salary.
The activities of the Foundation would be
financed chiefly through annual appropriations by
Congress, although the possibility of some financ-
ing through the sale of time, or through contribu-
tions, or through the Foundation's acceptance of
progi-ams prepared and presented by private agen-
cies, remains open and should be explored.
As compared with the pre-war situation, the
proposed Foundation offers many advantages.
The most important advantage is the fact that,
with annual appropriations by Congress, the
Foundation should be able to guarantee that an
adequate volume and quality of international
broadcasting is carried on in the national interest.
A second major advantage is that the Foundation,
through coordinating available facilities and fre-
quencies, should be able to get maximum useful-
ness out of the limited number of frequencies
available to the United States. A third advan-
tage is that the Foundation should be able to pro-
vide coverage to areas of the world important to
our national policy but not necessarily of interest
to independent operators, and to encourage an
adequate, informed, and coherent treatment
abioad of the "full and fair picture of American
life, and of the aims and policies of the United
States Government".
As compared with the present operation under
the direction of the State Department, the Foun-
dation seems to me to have advantages. Today
America's international short-wave broadcasting
is controlled almost entirely by the Department of
State; and even though private operators were to
enter the field independently (subject to approval
of the Federal Communications Commission) it
is apparent that the overwhelming proportion of
international broadcasting must continue to be
controlled by the Government, and thus by this
Department, unless another method is adopted.
State Department control has the advantage of
providing coordination in the use of facilities and
frequencies, and unity of policy; but it suffers
some handicaps as well. The Foundation form
promises the following advantages, among others :
1. The board of trustees of the proposed Foun-
April 6, 1947
737555 — 47 3
THE RECORD OF THE WEEK
dation should bring to the enterprise a range of
experience and judgment not ordinarily available
to a single agency of Government. The board will
presumably include outstanding figures in the
broadcasting, newspaper, and other communica-
tions industries, as well as educators and leaders
in public life, drawn from both political parties.
2. The proposed board should help to win the
confidence and support of the Congress and the
American people by eliminating any question as to
the objective and non-partisan character of the
broadcasts.
3. With responsibility for programs vested in
the board, and removed from the Department of
State, there should be less possibility that casual
foreign listeners will interpret the broadcasts,
which in fact do and should represent many and
various viewpoints held by Americans, as "the
official policy of the United States".
4. The corporate structure should provide
greater flexibility of operation than is possible
under the administration of a regular Government
department ; it should command wider use of tal-
ents and materials, and thus develop more courage
and imagination in progi-amming. Such a struc-
ture should permit its management more effec-
tively to meet the many new problems that will
arise in this rapidly developing field, and provide
a better structure for cooperation with private
agencies.
The Authority of the Foundation
In the many discussions which have preceded
this proposal it became clear that the absence of
financial incentive to private operators is only one
of the arguments against a reversion to the status
quo ante iellumi. Another strong argiunent is
that the shortage of available frequencies is becom-
ing so acute that a single entity must coordinate
our international broadcasting if the available fre-
quencies are to be used with anything resembling
effective world-wide coverage. Since the use of
public funds entails public responsibility, the
question of the kind of public control to be exer-
cised over the international broadcasting entity be-
came a key question. The Foundation form
seemed to offer adequate public control, through
the annual review by Congress of needed appro-
priations and through Government representation
on the Foundation, without entailing the necessity
of Government operation. The presence of the
621
THE RECORD OF THE W£BK
Secretary of State or his nominee on its board
assures opj^ortunity for liaison with the depart-
ment of Government responsible for over-all policy
in the field of foreign affairs.
The Foundation should be empowered to deter-
mine financial needs, to appoint staff, to acquire
and operate all necessary facilities, and to do its
own progi'amming and to contract for program-
ming by private agencies. It should also exercise
control over the pool of frequencies available to
the United States for international voice broad-
casting.
I suggest that, to provide liaison between the
board of the Foundation and those groups which
have special interests in this field, two consultative
committees might be created to advise with the
board. One of these would consist of representa-
tives of the various interested Federal agencies,
and would have as its chairman the Secretary of
State or his nominee who serves on the board of
the Foundation. The other would consist of rep-
resentatives of the radio industry. The chairman
of the industi-y committee might well be named
a member of the Foundation board.
In order to minimize the expenses of the Foun-
dation, to widen the range of its sources, to
heighten the quality of its output, and to maximize
the opportunity for international broadcasting by
independent groups and non -govern mental agen-
cies, the Foundation should be urged under its
charter to encourage and assist such private groups
and agencies to propose, develop, and produce pro-
grams of international interest and value ; and to
develop broad standards for the guidance of such
broadcasters, with due regard for our foreign
policies.
The Foundation itself, however, cannot avoid
responsibility for determining whether the total
output and the programming beamed to given
areas of the world projects a fair and balanced
picture of American life ; and whether the alloca-
tion of time and attention to given areas is pat-
terned to the national interest. Because of this
responsibility the Foundation must be in a posi-
tion to make the final determination as to the
suitability of proposed programs, both its own
and those of independent agencies.
Centralized authority over programming is
made imperative if only by the shortage of avail-
able clear frequencies. The Department of State
is today employing 56 frequencies in its short-wave
broadcasting. This is regarded by competent
engineers, both from Government and private in-
dustry, as the minimum number on which an
adequate job of world-wide coverage can be ac-
complished. (Typically, several frequencies are
required to get a satisfactory signal to each area
covered because of daily and seasonal climatic
variations, atmospheric disturbances, and inter-
ference resulting from the overcrowded condition
of the international frequency bands.) Even with
this number it is necessary to treat them as a pool,
and to shift frequencies systematically, by means
of a central assignment control, between trans-
mitters, areas, and waking-sleeping hours around
the world.
Under the agreement of the Madrid convention
of the International Telecommunication Union, to
which the United States is a party, it was agreed
that a total of 225 frequencies would be assigned
for short-wave broadcasting by all nations (all
other available frequencies were allocated for ship,
aviation, safety, commercial messages, and other
important purposes). However, 40 percent or
more of these frequencies are unsuitable and thus
unusable. No revisions of these agreements have
been made since 1938. In the pre-war registra-
tion of these voice frequencies the United States
registered first priority on only 19. In the chaotic
situation which developed during the war, the
United States, like other nations, appropriated
new frequencies, some of wliich were outside the
internationally agreed broadcasting bands, and
some of which were borrowed from other nations.
Tliis accounts for the fact that it is now using 56.
The State Department today maintains three
different program services to Europe, two to South
America, and one to the Far East. In addition, it
provides facilities and frequencies for United
Nations broadcasts and for extensive Armed
Forces Radio Services transmissions. Many of
these programs are concurrent. This illustrates
the type of demands made upon the relatively
small number of effective and clear frequencies in-
cluded in the pool of 56 wave lengths. The Depart-
ment's overseas relay or rebroadcasting operations,
which will soon be increased, must also share these
already overworked frequencies.
I am told that, at the next international con-
ference to be held in the spring or summer of 1947,
it is possible that the total number of frequencies
assigned to international voice broadcasting may
622
Department of State Bulletin
not exceed the present number, in the face of in-
creased demands for other important purposes. I
earnestly hope this will not be the case, but in any
event it seems certain that the number now used
by the United States will be contested through
demands by other countries and other services for
return of their frequencies. Those allocated to
the United States will ahnost surely be inadequate
for our needs.
This prospect further demonstrates that unified
and centralized planning of programming is es-
sential if an adequate job in the national inter-
est is to be done. Several independent corpora-
tions, which wished to beam j^articular kinds of
broadcasts to particular areas at particular times,
in their own judgment and without reference to a
centrally determined plan, could preclude and pre-
vent broadcasts far more important to the na-
tional interest.
A further reason for close coordination is the
fact that, in many parts of the world, signals
emanating from the United States cannot be heard
without the use of relay stations located abroad,
which boost the power of the signal. The pos-
sible acquisition of such relays on foreign soil
requires negotiation by the Government. The ef-
fective use and economical maintenance of these
stations indicates a central pattern of program
planning and control.
Central planning and coordination can also help
to obviate the danger of broadcasts which would
have the effect of engendering international mis-
understanding. The competitive situation that
makes for good balance and high standards in
other media does not ajjply equally to international
broadcasting, due to the shortage of frequencies
and the lack of commercial incentives. For these
reasons I am convinced that international broad-
casting cannot be effectively organized on the same
basis as domestic broadcasting.
The caliber and the representative character of
the proposed board of trustees, and the Founda-
tion's policy of encouraging private agencies to
initiate programming within the limits of broadly
conceived Foundation objectives, can and will as-
sure, it seems to me, that the "Voice of America"
will be a voice that is truly American.
Summary
The main points that liave been made in the
foregoing proposal are :
April 6, 1947
THE RECORD OF THE WEEK
1. the vital national interest in adequate world-
wide broadcasting from the United States;
2. the necessity for Government appropriations to
achieve world coverage, because of the ab-
sence of commercial incentive;
3. the necessity of a centralized pattern of
programming, if only because of the short-
age of frequencies ;
4. the proposal of a public corporation to serve as
a channel for both financing and central
planning, and to insure the representative
character of the broadcasts;
5. policy supervision of international broadcast-
ing by a board of oustanding American pri-
vate citizens, with Government participa-
tion.
Radio Relay Stations at Algiers To Close
[Released to the press March 2-1]
The Department of State announced on March
24 that the U.S. radio relay stations at Algiers will
be shut down on June 1, 1947. This radio relay
operation was started during the war in 1943, to
relay programs of the Voice of America by short
wave and medium wave to Europe, Africa, and the
Near East. The medium-wave relay station was
closed in October 1946. Since then, two short-
wave transmitters have carried programs from the
United States for four and three quarters hours
daily in the following languages : English, Bul-
garian, Czechoslovak, French, German, Italian,
Polish, Rumanian, and Yugoslav.
Since the middle of 194G this Government has
been in constant negotiation with the French Gov-
ernment for the ultimate disposition of the facili-
ties, which are under the direction of an American
technical staff responsible to the U.S. Consul Gen-
eral in Algiers.
Programs now relayed through Algiers will be
relayed to various European counti-ies through the
newly established short-wave relay at Munich and
through the facilities of the BBC. The Interna-
tional Broadcasting Division of the Department of
State is now planning long-range relay installations
for more complete coverage of Europe and the
Near East, subject to approval by Congress, and
has an engineering survey under way to determine
the best sites.
The ultimate disposition of the physical facili-
ties at Algiers is not yet decided.
623
Reception in U.S.S.R. of "Voice of America''
STATEMENT BY ASSISTANT SECRETARY BENTON
[Released to the press March 29]
The Associated Press in a Moscow dispatch of
March 26 reported that the "Voice of America" is
"finally making itself heard in Kussia". The
dispatch continued, "The 'Voice of America', on
a new waveband, pounded into Moscow tonight
as loud as the Moscow radio, clear, and with no
interference. The program received numerous
comments from local listeners, who said they were
impressed."
One reason for difficulties in getting our signal
through to Moscow on our daily Eussian broadcasts
was reported on March 27 from Munich by E. J.
Kerrigan, recently resigned vice president of Press
Wireless, who is now serving as a Special Con-
sultant to the Department of State. Mr. Kerrigan
cabled that his investigations of our Munich trans-
mitters had disclosed that the switching gear on
one of our antennae had been sabotaged. He said
that the doors on the switch-house had been broken
and the switch of the antenna had purposely been
"reversed" so that it was directed to South America
rather than to Moscow.
Of the six antennae available at our Munich re-
lay station, three are regularly beamed to Balkan
countries and two to the Soviet Union. One of the
latter two had been used for experiments with new
frequencies, and it is this antenna which had been
tampered with. During the week of March 17 to
25, experiments on a new frequency, beamed to the
Soviet Union via this antenna, failed, apparently
because of the sabotage. The condition was cor-
rected on March 25.
In his cable Mr. Kerrigan reported that an in-
vestigation was under way and assured the Depart-
ment that he was taking all possible precautions
against this and other such acts.
The AP dispatch is further confirmed by Drew
Middleton's report in the New York Times of
March 28, in which he states:
"After five weeks of broadcasting, the 'Voice of
America' program beamed to the Soviet Union
from the United States is winning an increasing
number of listeners, not only in Moscow but also
in the Ukraine, Wliite Russia, and sevei'al pro-
vincial cities of the Russian federation.
"Generally the programs are attracting more
and more listeners, they are getting publicity by
word of mouth, and they are contributing to an
understanding of the United States here."
Proposed International Interchange and Information Act
LETTER OF TRANSMITTAL >
I am transmitting a draft of a proposed bill "to
enable the Government of the United States more
effectively to carry on its foreign relations by
means of (a) promotion of the interchange of
persons, knowledge and skills between the people
of the United States and other countries, and (b)
public dissemination abroad of information about
the United States, its people and its policies."
^ Letter from Acting Secretary Acheson to the President
pro tempore of the Senate, and to the Speaker of the House,
accompanying proposed cultural-exchange act (bill not
printed). For text of draft bill see Department of State
press release 225 of Mar. 21, 1947.
624
This draft was prepared jointly with the De-
partments of Agriculture, Commerce, Interior and
Labor, the Federal Security Agency, the Library
of Congress and the Smithsonian Institution.
The proposed legislation would authorize four
types of activities, each of which has been spon-
sored by this Government over a period of years.
The legislation is submitted to Congress only after
a world-wide inquiry in which the United States
embassies and consulates have advised on the im-
portance of these activities to their work.
The principal activities authorized by tliis leg-
Departmenf of State Bulletin
islation are summarized below, in tlie order that
they appear in the legislation.
(1) Educational exchanges. Since 1039 the De-
partment of State has been encouraging the ex-
change of students and professors, books and other
educational materials with the American Repub-
lics. Through the cooperation of other federal
agencies, young technicians and specialists in the
other American Republics have been brought to
the United States for practical training. Small
grants have been made to American-sponsored
schools abroad, to several American libraries
abroad, and to the United States community cen-
ters abroad which serve as discussion centers for
citizens of the United States and other countries.
The Congress has made a small appropriation each
year for these activities, which are strongly sup-
ported by our embassies. The purpose of this pro-
gram is not "to educate the world" but rather to
call attention openly to the merits of American
educational methods, and thus to give to promising
young leaders abroad an understanding of Amer-
ican aims and ideals.
The proposed legislation will authorize these
activities outside the Western Hemisphere.
(2) AssignTiicnt of Government specialists
abroad. Since 1938 the Department of State has
been arranging for individual specialists employed
by the United States Government to be assigned
for periods of service with other governments.
Approximately 100 pex-sons have been sent abroad
in this nine-year period to advise on jiroblems in
such fields as agriculture, public health, census
taking, child welfare and civil aviation safety.
The present law restricts this service to the other
American Republics, the Philippines and Liberia.
Governments receiving this service now reimburse
the United States for a substantial portion of the
expense. American Ambassadors have expressed
the opinion that the small expense incurred by the
United States for these assignments is eminently
justified by the closer working relationships with
the other governments.
The 251'oposed legislation would authorize the
assignment of specialists to governments outside
the American Republics, the Philippines and
Liberia.
(3) Joitit scientific services. Since 1939 the
Department of State has entered into numerous
agreements with other governments in the Western
AprW 6, 1947
THE RECORD OF THE WEEK
Hemisphere for the joint performance of scientific
and other services that are of mutual benefit. For
example, Mexico and the United States have set
up a joint weather station in Mexico, for which the
United States contributes technical advice and
some scientific equijament. The weather data de-
rived from this station is used by both governments
and is reported to be especially valuable in prepar-
ing storm warnings for the Gulf States and for
United States aircraft. Similar joint operations
have been established for foreign tidal surveys
needed by United States ships, for research in cer-
tain tropical agricultural products sought by the
United States, and for public health measures to
check the international communication of diseases.
The Department of State has utilized the services
of other federal agencies to perform these services.
Other governments have contributed approxi-
mately 60 percent of the cost.
The proposed legislation would authorize the
extension of this type of cooperation to govern-
ments outside the Western Hemisphere.
(4) International information activities. The
President, in an Executive Order on August 31,
1945, transferred to the Department of State the
international information functions of the Office
of War Information and the Office of Inter-Ameri-
can Affaii-s. In the past 18 months the Depart-
ment has eliminated mucli of this information
work, has greatly reduced the number of em-
ployees, and is now conducting only those activities
which it considers essential for peace-time pur-
poses. International radio broadcasts are trans-
mitted in about 2'5 languages. Small reference
libraries are attached to about 60 of the embassies
and consulates. Documentary films on the United
States are available in most embassies for public
showings. A daily wireless bulletin on develop-
ments in the United States is sent to most em-
bassies.
The Department of State believes that misun-
derstandings or false reports about the United
States can readily affect international negotiations
in which the United States is interested. It is in-
dispensable, therefore, for this Goverment to assert
the facts about its policies and let the truthfulness
of the information over a period of time demon-
strate its reliability.
The Congress has previously authorized, subject
to geograjDliical limitations, certain of the activi-
625
THE RECORD OF THE IVEEK
ties described in this letter. The Act of May 25,
1938, as amended, made possible the temporary
detail of United States employees, possessing spe-
cial qualifications, to governments of American
Republics, the Philipp'nes and Liberia. An Act
of August 9, 1939, en.,itled "An Act to render
closer and more effective the relationships be-
tween the American Republics" has enabled the
Department of State to conduct the educational
exchanges and joint scientific services mentioned
above, but only in the Western Hemisphere.
There is doubt whether the Department of State
requires new legislation to authorize its informa-
tion activities. Most of these activities have been
conducted on a less extensive basis in the Depart-
ment of State for many years. I am enclosing a
statement on legislative authority for the infor-
mation program which was prepared for the Sub-
committee of the House Appropriations Commit-
tee in 1946. The Department recognizes that this
is a question which the Congress should decide.
You will recall that legislation substantially
similar to that which I am enclosing was consid-
ered by the last Congress, receiving the approval
of the House of Representatives (H.R. 4982, 79th
Congress) and a favorable report by the Senate
Foreign Relations Committee (S. 2432, 79th Con-
gress) but did not come to a vote in the Senate.
The Department has been informed by the Bu-
reau of the Budget that there is no objection to the
presentation of this proposal to the Congress for
its consideration.
Program for International Exchange of Persons
Roster of Foreign Engineering Students
The Department of State on March 28 an-
nounced publication of a roster of 3,133 foreign
students who are studying engineering in more
than 300 universities and colleges in every State
of the United States and in the District of Co-
lumbia. Almost all of the foreign engineering
students came to the United States to study at
their own expense, or through scholarships pro-
vided by their respective governments. They
represent nearly one fifth of the 17,000 foreign
students now studying a wide variety of subjects
in United States educational institutions.
A total of 937 of the foreign engineering stu-
dents are from nine countries of the Middle and
Far East which are planning modern industrial
developments. The 596 students from the Middle
East include 29 from Greece, 178 from Turkey,
287 from India, 47 from Egypt, 37 from Iran, and
18 from Iraq. Engineering students from Turkey
and India represent half of the number of stu-
dents from those countries studying in the United
States. The 341 engineering students from the
Far East include 300 from China, 38 from the
Republic of the Pliilippines, and 3 from
Afghanistan.
The roster was compiled by the Division of In-
ternational Exchange of Persons of the Depart-
ment's Office of International Information and
Cultural Affairs at the request of the Engineers'
Joint Council of New York.
626
Aviation Training Program
The Department of State announced on March
27 that 68 citizens of Central and South America
would come to the United States this spring for
specialized study in aviation as part of the Sixth
Inter-American Aviation Training Program now
getting under way.
The young men who will participate in tliis
training are from Argentina, Bolivia, Brazil,
Chile, Colombia, Costa Rica, Cuba, Guatemala,
Mexico, Panama, Paraguay, Peru, Uruguay, and
Venezuela. The course is sponsored by the U.S.
Government's Inter-Departmental Committee on
Scientific and Cultural Cooperation and is super-
vised by the CAA.
The purpose of this technical assistance is two-
fold: (1) to promote international aviation har-
mony by advancing uniformity of aeronautical
installations, whether reporting, air-navigation
aids, radio communications, control procedures,
airworthiness standards, and so forth; and (2) to
facilitate the operation of international air
commerce.
Arrival of Burmese Students
Five graduate students from Burma arrived in
Boston on the S.S. Allegheny Victory on March
31 for advanced studies at United States colleges
and universities in Michigan, Minnesota, Colo-
rado, and Utah.
Department of State Bulletin
The five students bring to a total of 22 the
number of Burmese students taking advanced
courses in United States educational institutions
in Massachusetts, New York State, California,
Iowa, Texas, and Washington, D.C. All the stu-
dents are graduates of the University of Rangoon
in Burma. They are being sent to the United
States at the expense of the Government of Burma
to be trained for Government positions in Burma.
Guatemalan Agriculturist Visits U.S.
Hector M. Sierra, Chief of the Agricultural In-
formation Division of the Ministry of Agricul-
ture in Guatemala, is visiting the United States
at the invitation of the Department of State. He
has been extended a grant-in-aid by the Depart-
ment to enable him to confer with colleagues in
the field of agriculture and to visit agi-icultural
, THE RECORD OF THE WEEK
research centers. Mr. Sierra will consult with
appropriate officials regarding a general exchange
of agricultural information between the Guatema-
lan Ministry of Agriculture and agi-icultural or-
ganizations in the United States, and regarding
crops suitable to the soils and climate of Guate-
mala which are in demand in United States mar-
kets. He plans to visit manufacturers and
experiment stations in the field of agi-icultural
equipment suitable for use in tropical areas.
Historian To Visit Ecuador and Chile
Philip Wayne Powell, professor of American
and Latin American liistory at Northwestern Uni-
versity, Evanston, Illinois, has received a grant-
in-aid from the Department of State to enable
him to serve as visiting lecturer on American his-
tory at the cultural centers in Quito, Ecuador, and
Santiago, Chile.
Congressional Hearings on Trade Agreements Act
STATEMENT BY UNDER SECRETARY CLAYTON '
It is my understanding that the Committee on
Ways and Means is instituting these hearings and
has requested my api^earance here in order to ob-
tain information with regard to the reciprocal
trade-agreements program which has now been
carried on for 13 years under the Trade Agree-
ments Act of 1934.
The Committee is, I believe, concerned with
how the program aifects the economic welfare of
the United States. The Committee can hardly be
interested in a rehash and review of the past. On
each of the four occasions on which the Trade
Agreements Act has been renewed by the Congress,
this Committee and the Senate Finance Committee
have thoroughly reviewed and examined the pur-
pose, operation, and results of the program. In
the course of these examinations hundreds of
American citizens have appeared before the Com-
mittees and given their views. These citizens have
included businessmen, representatives of labor and
agriculture, consumers, and others.
Every conceivable question, relevant or irrele-
vant to the program, has been asked and answered
in the course of those hearings. Every shade of
opinion has been fully aired. In the course of the
last three hearings some 10,000 pages of testimony
April 6, 1947
before this Committee have been received and
printed. In 1945 alone the printed record of this
Committee's hearings extended to over 3,000 pages.
The Committee hearings have been followed by
extensive consideration and debate on the floor of
each House of Congress. On each occasion the
Congress had renewed the authority of the Presi-
dent to enter into reciprocal trade agreements for
the purpose, as stated in the act, of expanding
foreign markets for United States products. That
authority is exercised under certain precisely de-
fined guides and limitations laid down in the act
itself. There has been no intimation that the
authority has been used beyond those limitations
and guides.
I assume, therefore, that the Committee's interest
lies in the present and the future, rather than the
past, except as the past foreshadows the future.
On that point I may say that during the operation
of the reciprocal trade-agreements program the
national income materially increased; the in-
' Made before the House Committee on Ways and Means
on Mar. 26, 1947, and released to the press on the same
date. Mr. Clayton is Under Secretary of State for Eco-
nomic Affairs.
627
THE RECORD Of THE WBEK
crease was reflected both in cash farm income and
in wages and salaries paid in industry. Employ-
ment increased, especially in those enterprises
which, by reason of their efficiency and other ad-
vantages, create the most jobs and pay the highest
wages. These industries have found their foreign
markets expanded through the reciprocal trade
agreements.
The trade agreements have not, of couree, been
the sole factor in this economic advance. But
ordinary common sense recognizes that important
and profitable American industries have been able
to sell more of their products in foreign markets
because foreign countries, through reciprocal
trade agi-eements, have reduced their trade bar-
riers. American workers and farmers who bene-
fited by those expanded foreign markets have, in
turn, been better customers in the domestic market
for American jDroducts. Ameiican industrial ac-
tivity and living standards have been raised by
increased imports, at more reasonable prices, of
things from abroad which American industry and
consumers need.
The United States is today facing a world
economic situation different from any which we
have ever faced before, and far more difficult.
Since the end of the war the trend in many coun-
tries is toward more extensive controls of trade
by government agencies and more actual participa-
tion in trading operations by governments. This
is not the sort of climate in which our type of
foreign trade, carried on by private businessmen,
can expand and prosper. In this kind of climate
the volume and direction of trade is determined by
what government allows, not by demands of a free
market. Let me make it clear right at the start,
therefore, that one of the primary objectives in our
post-war trade program is to create the conditions
under which private American traders will have
maximum opportunities to expand their trade
abroad with a minimum of governmental inter-
ference. And that we need a vigoi-ous, expanding,
two-way foreign trade as an extension of a dy-
namic domestic economy has been demonstrated
beyond dispute.
In this situation circumstances have brought the
United States into a position of world economic
leadership and the responsibility that goes with
it. We did not seek this position, but we cannot
abandon it without serious results for ourselves
and for the rest of the world. We have emerged
fi'om the war as the giant of the economic world.
What we do or don't do with our power will de-
termine the course of events not only in this coun-
try but throughout the world. By working with
other countries we can reestablish the pattern of
world economic relationships which we want and
which will enable our own national economy and
our own American system to continue and develop.
If we are to exercise our economic strength and
our leadership in shaping events as we want them,
we must act immediately. Things are moving
too rapidly to permit us the luxury of sitting back
and hoping that matters will turn out all right
while we follow a policy of doing nothing. De-
lay and inaction now will be fatal to our objectives
just as surely as wrong and misguided action will
be fatal. The rest of the world is not going to
wait for us. Unless we move rapidly and vigor-
ously to establish in world commerce the principles
upon which we can best advance our own economic
interests, we are going to leave a vacuum into
which, inevitably, will move an economic system
based on principles alien to our ideas, injurious to
our interests, and highly restrictive on the volume
of world trade.
In the United States we have traditionally de-
pended chiefly on the tariff as a means of regu-
lating our foreign trade. The tariff method is
consistent with our ideas on free enterprise and
competitive efficiency. Govei-nmental quotas,
import licenses, and other rigid controls are not.
Neither is state trading. Other countries — not the
United States — ^began to use such devices even be-
fore the war started.
The only effective way in which we can get rid
of these devices in foreign countries is by nego-
tiating and bargaining. Our import market is
tremendously important to almost all the countries
of the world, and our tariffs control their access
to this market. Therefore, our tariff is our bar-
gaining stock. A tariff slash straight across the
board would not be effective use of that bargaining
power nor would it be wise. For the past 13 years
we have successfully been making selective tariff
cuts without injury to our own economy. In
return, we have obtained maximum value in the
form of reductions in foreign barriers against our
exports and foreign guaranties of non-discrimina-
tion against us.
If we hesitate to continue negotiating on this
basis it can only be because we have lost confidence
628
Department of State Bulletin
in the strength of our own economy and the ef-
fectiveness of our own economic system. In the
absence of all-around negotiated reductions in
trade barriers, we face the dangerous alternative
of trade regulation by governmental quotas and
licenses — a system which seeks as its first objective
a sort of static and negative security and makes
impossible the expansion of trade by private com-
petition and new opportunities, which is the heart
of our own system.
Much of the rest of the world is in economic ruin.
Our own strength is not only unimpaired but has
greatly developed during the war. Under such
conditions can we possibly be afraid to sit down
and negotiate with other countries? Is it because
we are afraid of imports? We are now absorbing
imports at the annual rate of some 5 billion dol-
lars. These imports, far from injuring our do-
mestic economy, are strengthening our industries
with essential raw materials and raising our stand-
ards of living. At its present tempo our economy
30uld profitably absorb a much greater volume of
imports. If that tempo is speeded up and our
industries continue to expand, we can profitably
accept — in fact we must have — even more im-
ports than we are now receiving. We definitely
must have larger foreign markets for the enor-
mous surpluses we are now producing in this
country, principally of farm products. There must
be, in shoi't, a world-wide, multilateral expansion
of world trade imder private enterprise on a non-
discriminatory basis. It is within our power, and
clearly in our self-interest, to help bring this about.
It is against today's present and growing trade
restrictions and discriminations that the United
States Government is now proposing to exert its
power and its leadei'ship through an international
trade program based on the same lines as the re-
ciprocal trade-agreements program of the past.
If we act quickly, and with courage and vision,
we can do much to prevent existing governmental
restrictions and controls on trade throughout the
rest of the world from becoming more burden-
some. We can help to turn the tide in the other
direction, so that United States traders will not
find their foreign markets and their foreign
sources of supi^lies fenced off by new and more
burdensome tariifs, quotas, and import- and
axport-license systems. We can take the leader-
ship in preventing conditions under which foreign
TOvernments take more and more control of com-
THE RECORD Of THE WEEK
merce, actually participate more and more in
trade, and make new bilateral and discriminatory
deals among themselves which will have the effect
of shutting out American traders or putting them
at competitive disadvantage.
If we do not act decisively and effectively now,
it will be increasingly difficult for private Ameri-
can businessmen to carry on foreign trade under
such conditions. They will be compelled to seek
the assistance of their own Government in deal-
ing with foreign governments. The United
States Government will find itself bargaining and
bartering, country by country and month by
month, to get foreign markets for American goods
and foreign supplies for American industry and
consumers. Governmental regulation of and par-
ticipation in foreign trade is a long step in the di-
rection of governmental interference with domestic
business — with production, prices, and consump-
tion. The trade- agreements program will mini-
mize government intervention in private trade,
both foreign and domestic, and should be vigor-
ously supported by believers in free enterprise.
Unless the United States quickly throws its eco-
nomic power into the balance in favor of more
liberal and expanded world trade in private hands,
we shall lose the initiative and fall back into a
defensive action against trade developments
throughout the world that will be highly disad-
vantageous to the whole United States economy.
For 13 years the trade-agreements program has
been used by the United States as a means of
checking and preventing, so far as possible, the
srowth of foreign barriers and discriminations
against United States trade. Until the last war,
the effort was reasonably successful. We obtained
not only reductions in foreign trade barriers but
also commitments for non-discrimination against
United States trade from 29 of the countries with
which we trade. In addition, through the au-
thority in the Trade Agi-eements Act to withhold
trade-agreement benefits from countries which
might discriminate against us, we were able in
most cases to protect American foreign trade from
being placed at serious competitive disadvantage
in the markets of those countries.
Ground was lost during and after the war, how-
ever. It can be regained only through pi'ompt
and vigorous action along the same lines as those
followed in the trade-agreements program in the
past.
April 6, 1947
629
THE RECORD Of THB WEEK
This leadership is not something new for this
country. The reciprocal trade-agreements pro-
gi'am of 1934 was, in itself, an exemplification of
leadership. During and since the war we have
moved farther and farther to the front. In the
Atlantic Charter and in our lend-lease agreements
it was the United States which insisted on the
inclusion of principles looking toward more liberal,
non-discriminatory, and expanding world trade
after the war. Wliile the war was still in progress
it was the United States initiative which led to
the Bretton Woods agreements and the subsequent
establishment of the International Bank for Re-
construction and of the International Monetary
Fund.
In November 1945 the United States published
its Proposals for Expansion of World Trade and
Employment^ which suggested the establishment
of an International Trade Organization and the
adoption of a charter or code of principles under
which international commerce can expand, multi-
laterally and on a non-discriminatory basis, with
the fewest possible restrictions, and with resulting
increases in employment and production and
higher living standards throughout the world.
The Proposals were followed by a Suggested Char-
ter for the proposed International Trade Organi-
zation, and the United States Delegation in the
United Nations Economic and Social Council in-
troduced in the Council the resolution to call an
International Conference on Trade and Employ-
ment which will consider the establishment of an
International Trade Organization and the adop-
tion of a cliarter for it. United States experts
drafted the Suggested Charter, which was the basic
document used by the Preparatory Committee set
up by the Economic and Social Council which first
met at London in October and November 1946.
It was the United States Government which in
December 1945 invited 15 foreign countries, and
later 3 additional countries, to meet with us and
negotiate, under the Trade Agreements Act, for
reciprocal reduction of tariff and other trade bar-
riers and for the elimination of discriminations
in world trade.
Through all these measures we have established
and begun to exercise our economic leadership, in
our own interest and in the interest of the rest of
the world. If we step down now, the consequences
will be disastrous to us and also to the rest of
the world. Therefore, let me tell you briefly how
we propose to exercise our leadership in the im-
mediate future.
As I have said, the Preparatory Committee set
up by the Economic and Social Council of the
United Nations has set next month for its second
meeting in Geneva. At that meeting the Com-
mittee will do two things: first, it will conclude
its preparations for an International Conference
on World Trade and Employment and its drafting
of a charter for an International Trade Organiza-
tion, along the lines proposed by the United States
Government in November 1945 ; second, the nations
represented on the Committee will undertake to
negotiate among themselves trade agreements pro-
viding for the reduction of tariffs and other trade
barriers and for the substantial elimination of
trade discriminations. This, too, is along the lines
planned by the United States when in 1945 and
1946 it invited these same nations to negotiate such
a trade agi'eement.
The United States Government has already car-
ried through the preliminary steps under the
Trade Agreements Act in preparation for the ne-
gotiations at Geneva. Public notice of intention to
negotiate was given last November, and a list of
the products on which we would consider offering
tariff concessions in the negotiations was made
public at the same time. Public hearings on the
proposed agreement were opened by the Commit-
tee for Reciprocity Information on January 13
and continued through February 6. More than
1,000 interest groups and individuals filed written
statements, and more than 500 appearances were
registered at the public hearings. Every inter-
ested person was given full opportunity to give
information and views as to the provisions of the
proposed agi'eements, including concessions
which should be sought from foreign countries in
the interest of American exports, whether any
reductions should be made in United States
tariffs, and what reductions might be made. These
views and information, together with the material
assembled by the reiDresentatives of seven Govern-
ment agencies which make up the interdepart-
mental trade-agreements organization, are being
analyzed and thoroughly studied by that organi-
zation in preparing its recommendations to the
President, through the Secretary of State, on the
terms which the United States, in its own economic
interest, sliould seek to have incorporated in the
agreements.
630
Deparfmenf of Sfafe Bulletin
The trade-agreement negotiations at Geneva are
an essential and integral part of the rest of the job
to be undertaken there — to conclude the pre-
paratory work for the establishment of an Inter-
national Trade Organization and the writing of a
charter or code of principles and rules for the
conduct of international trade. Unless arbitrary,
excessive, and uneconomic barriers to trade are
reduced and unless discrimination and inequality
of trade treatment are abolished, there will not be
much use trying to go ahead with the rest of the
plan.
The charter covers other matters as well. It
proposes commitments that member countries will
try to increase and maintain domestic employment
and buying power by means which will not ad-
versely affect other countries. It provides for
limitation of the use of trade quotas and exchange
restrictions. It establishes principles for the
operation of intergovernmental arrangements
dealing with emergency situations in regard to
primary products. It provides for both joint and
individual action by governments in curbing re-
strictive cartel practices in international trade.
Agreement on all of these things must be reached
if American traders are to gain the maximum ad-
vantages for their individual enterprises and com-
petitive efficiency. If agreement is reached we can
not only maintain but raise the levels of employ-
ment, production, and buying power in this coun-
try. These things will be done — can be done — only
if this country continues to exercise its leadership
in international economic affairs.
I might add here that, contrary to some mis-
understandings, the International Trade Organ-
ization will not be an international super-govern-
ment in the economic field, with power to fix tariffs
of member countries or control either their foreign
or domestic trade. Tariff adjustments under the
charter — the matter of most interest to the United
States — will be made by negotiation and only in
return for comparable advantages, just as the
United States has been doing for 13 years under
the trade-agreements program. Member nations
will voluntarily agree to refrain from imposing
quotas and certain other trade restrictions and
discriminations. The International Trade Organ-
ization will impose no new international controls
or regulations on trade. Under its charter only
THE RECORD Of THE W££K
one "penalty" can be incurred by any country
which violates its commitments. Member coun-
tries may, with the concurrence of the organiza-
tion, withhold from such a country the trade bene-
fits which they have agreed to extend to each other.
The whole aim and purpose of the International
Trade Organization and of the Suggested Charter
is to reduce and minimize, not to increase, govern-
mental interference with foreign trade carried on
by private traders, and to guide that trade on eco-
nomic, not political, principles.
That is what we are going to Geneva for — to
bargain for a chance for American private enter-
prise to continue and to benefit the American
economy through expanded foreign trade.
Actually, we are to bargain for more than busi-
ness profits and economic advancement. The re-
lationship between political and economic ques-
tions in the international field is so close that it
should hardly need emphasis. It has been force-
fully illustrated by the situation in Turkey and
Greece, which was the subject of the President's
recent message to the Congress. We have never
said that successful international economic cooper-
ation would in itself assure political peace, but it
is clear that, in the absence of satisfactory eco-
nomic conditions, political problems become in-
tensified and political peace caimot be stable or
long-enduring. Our kind of system cannot fully
succeed while widespread poverty and want exist.
On the contrary, it is the continuation of such con-
ditions that gives rise to the serious political prob-
lems in many parts of the world today. The more
we can do, therefore, to bring about healthy eco-
nomic conditions, the fewer political problems we
will have. At Geneva we aim to advance further
toward international agreement on the economic
conditions which will strengthen the political basis
for peace.
These, then, are some of the reasons why we
should — and we must — push ahead vigorously and
with the courage of real leadership in the course
we have laid down. This is the hour of opportu-
nity. I am convinced that we can now obtain in-
ternational agreement which will result in a great
expansion in world trade, in which the United
States would certainly be the chief beneficiary.
If we lose this opportunity, who knows when or
whether we may ever have another?
AprW 6, 1947
631
THE RECORD OF THB WEBK
U.S.-French Agreement on Copyright
Extension
An agreement between the United States and
France for an extension of time for fulfilment of
the conditions and formalities for securing copy-
right during the present emergency was effected on
March 27, 1947, by an exchange of notes between
the French Ambassador and the Acting Secretary
of State.^
The note from the French Ambassador to the
Acting Secretary of State describes the French
legislation regarding copyright kept in force dur-
ing the war which accorded citizens of the United
States favorable treatment and prevented Ameri-
can authors from suffering any prejudice to their
rights in France because of the war. The note
from the Acting Secretary of State to the French
Ambassador is accompanied by a copy of a proc-
lamation issued on March 27, 1947, by the Presi-
dent of the United States pursuant to Public Law
258, 77th Congress (55 Stat. 732), extending to
Fi"ench authors and copyright proprietors the time
for comi^liance with and fulfilment of the condi-
tions and formalities established by the laws of
the United States of America relating to copy-
right.-
Restitution of American-Owned
Property in France
[Released to the press March 26]
Americans who were deprived of property in
France during the war are advised that June 1,
1947, has been fixed as the time limit for proceed-
ings under two French ordinances providing for
the restitution of certain types of projDerty.
Procedures for the recovery of property which
was confiscated and subsequently sold by the Vichy
government or by the enemy occupation authorities
were established by ordinance no. 45-770 of April
21, 1945 (Journal 'Officiel of April 22, 1945) . Ee-
ports of all such property were required to be made
by the present holders to the Restitution Service
of the French Ministry of Finance. The dispos-
sessed owners may declare all transfers of such
projierty invalid and may bring special proceedings
for the recovery of their property before the pre-
siding judges of the civil or commercial courts.
' Not printed.
- The text of the above-mentioned proclamation is printed
in 12 Federal Register 2047.
The restitution of movable property which was
pillaged during the occupation and subsequently
recovered by the French Government is governed
by ordinance no. 45-624 of April 11, 1945 [Jov/rnal
Offi.ciel of April 12, 1945) and subsequent orders
implementing the ordinance. Such property may
be reclaimed by filing an application with the Serv-
ice de Restitution des Biens des Victimes des Lois
et Mesures de Spoliation, Ministere des Finances,
71 Boulevard Pereire, Paris. The application
should describe the property as precisely as possi-
ble, and indicate the date on which, and the place
where, the property was pillaged.
No time limit has been fixed for the recovery of
property confiscated by the Vichy government or
by the occupation authorities and taken over by the
French Government at the time of the liberation.
Among the ordinances providing for the return of
such property are those of October IC, 1944 {Jour-
nal Ofjiclel of October 17, 1944) , and of November
14, 1944 {Journal Officiel of November 15, 1944).
Such property may be recovered by direct request
to the administrator or manager of the property.
All of the above measures were adopted by the
French Government in fulfilment of the London
declaration of January 5, 1943. The governments
signatory to that declaration announced their in-
tention to do everything possible to defeat the
methods of expropriation employed by the enemy
in occupied territory, and reserved the right to
declare invalid any jjroperty transaction in enemy-
controlled territory.
Procedure for Filing Property Claims
In the Netherlands
[Released to the press March 27]
Although the time for filing claims for property
confiscated in the Netherlands by the Germans
during the war expired on May 1, 1946, efforts
will be made to have consideration given to such
claims filed by American nationals at the present
time if good reasons can be shown for the delay
in filing. As it appears likely that the custodians
appointed by the Netherlands Government to ad-
minister such property will be in a position to
make a substantial first payment in liquidation of
claims in 1947, claims should be filed without
further delay.
Property of American nationals which was con-
fiscated by the Germans was administered during
the German occupation of the Netherlands by the
632
Depar/menf of Sfofe Bulletin
"Deutsche Revisions — iind Treuhand A.G." The
"Treuhand" assets were among those taken over by
the Netherlands Government when the Netherlands
was liberated. The assets are under the jurisdiction
of the "Nederlandsche Beheersinstituut", an organ-
ization similar to our Alien Property Custodian,
which appointed custodians for the properties of
all German agencies and individuals. Under the
laws of the Netherlands, debtors who were forced
by the Germans to pay "Treuhand" money owed
to the enemies of Germany are considered to have
paid off their debts, and creditors for such debts
are to regard the German agency to which the
debt was paid, in this case "Treuhand", as the
debtor, rather than the firms or individuals who
contracted the debt.
Americans desiring to file claims for bank ac-
THE RECORD OF THE WEEK
counts or other sums of money owing to them
which were turned over to "Treuhand" are ad-
vised to write promptly to the custodians of
"Treuhand" appointed by the "Nederlandsche
Beheersinstituut", Notaries J. van Hasselt and
A. M. Vroom, Singel 250, Amsterdam, Nether-
lands, stating in their letter all the details
of which they are aware regarding the trans-
action between their debtor and "Treuhand",
such as amount, date, place of payment, and so
forth. It is suggested that a copy of the letter
registering the claim be sent to the former debtor
in the Netherlands with the request that he com-
municate with "Treuhand" and provide any addi-
tional pertinent details regarding the transfer of
the funds to "Treuhand" which may have been
omitted in the claim.
U.S. Position on Swedisli Import Restrictions
[Released to the press March 25]
Text of a note delivered by the American Legation
at Stockholm to the Swedish Foreign Minister on
March 2Jf, 19Jff. The note deals with the import
restrictio7is imposed hy the Swedish Government
on March 15, 1947
Excellency :
I am instructed by my Government to inform
you as follows:
The Government of the United States has taken
note of the action of the Government of Sweden,
announced in its communique of March 15, 1947,
in imposing a general import prohibition, effective
from 7 : 00 p.m., March 15, 1947 for the purpose
of preventing a further decline in its foreign ex-
change reserves. The United States Govermnent
has also taken note of the fact that certain com-
modities not included in the import prohibition,
are placed on a so-called free list, and that included
in this free list are chiefly raw materials, machinery
and other commodities essential to the Swedish
economy, as well as commodities which will be
imported in fulfillment of Sweden's bilateral trade
agreement commitments.
The Government of the United States calls the
attention of the Swedish Government to Article
VII of the Reciprocal Trade Agreement entered
mto between the two countries on May 25, 1935
which provides that in the event that either party
to the agreement proposes to change any of the
provisions of Article VII it shall give notice in
writing to the other Government and shall afford
the other Government thirty days after receipt of
such notice to consult with it in respect to such
action. Insofar as the import restrictions placed
in force by the Swedish Government on March 15,
1947 affect the importation into Sweden of com-
modities listed in Schedule I of the Reciprocal
Trade Agreement, the failure of the Swedish Gov-
ernment to give the United States Government
thirty days' notice in writing constitutes a clear
violation of Article VII of the Trade Agi-eement.
Since the Government of Sweden has itself an-
nounced that so long ago as December 19, 1946,
it was informed by the Riksbank of the necessity
of imposing some form of import control in view
of the rapidly decreasing gold and foreign-
exchange holdings of the Riksbank, my Govern-
ment feels that the Swedish Government had
adequate opportunity of affording the United
States Government the thirty-day advance notice
required in the United States-Swedish Trade
Agreement.
The Government of the United States cannot
AprU 6, J 947
633
THE RECORD OF THE WEEK
but strongly protest the implications of the an-
nounced progi-am of the Swedish Government to
permit the import of certain commodities into
Sweden in fulfillment of its bilateral trade-agree-
ment commitments, while prohibiting or severely
restricting the importation of the same or similar
commodities from the United States. By this
course of action the Swedish Government would
appear to be adopting the position that it considers
that its bilateral trade agreements must be hon-
ored and fulfilled at the expense of or in preference
to its contractual obligations with countries with
which it has no such bilateral agreements. This
policy, if pursued, would lead to a complete break-
down of multilateral non-discriminatory trade
among nations, the maintenance of which, in addi-
tion to being a principal tenet of the United States
Government's foreign policy, is also an established
principle of the Swedish Government, according
to repeated pronouncements by its representatives.
The United States Government must emphasize
that it considers its Keciprocal Trade Agreement
entered into with the Government of Sweden to be
fully as binding upon the Swedish Government as
any of that country's bilateral agreements. In
fact the Keciprocal Trade Agreement, by reason
of the date of its entering into force, is a prior
commitment of the Swedish Government.
The United States Government feels constrained
to call attention of the Swedish Government to the
commitments and obligations entered into by Swe-
den in its Reciprocal Trade Agreement with
the United States, particularly as those com-
mitments are set forth in Article II of the
Agreement. That Article provides that in the
event of the establishment of quotas or other im-
port restrictions by either Government, it is agreed
that in the allocation of the quantity of restricted
goods which may be authorized for importation,
the other country will be granted a share equivalent
to the proportion of the trade which it would nor-
mally enjoy. Article II further provides that in
the event either country establishes import re-
strictions, imports originating in the other coun-
try will be granted at least as favorable treatment
as that granted to the same or similar goods orig-
inating in a third country. The United States
' For exchange of correspondence between the Mission
and the interested agencies of this Government, see De-
partment of State press release 245 of Mar. 26, 1947.
634
Government must assume that the announced im-
port licensing system of the Swedish Government
will be administered in accordance with the pro-
visions of Article II of the Reciprocal Trade
Agreement, as well as in accordance with the gen-
eral spirit and intent of that Agreement.
The United States Government reserves all
rights, under Article XI of the Reciprocal Trade
Agreement between the two countries, to make such
further representations to the Swedish Govern-
ment as the f uttire operation of that Government's
import licensing system may seem to require.
Haitian Good-Will Mission Concludes
Negotiations With U.S.
The Special Mission of the Government of Haiti
which has been in the United States recently con-
cluded its negotiations with this Government, and
members of the mission have now returned to
Port-au-Prince. The mission consisted of Jean
Price-Mars, Minister of Foreign Relations; Jo-
seph D. Charles, Ambassador in 'Washington;
Gaston Margron, Minister of Finance; and
Georges Rigaud, former Minister of Agriculture
and Commerce.
During its stay in the United States the mission
or individual members thereof were received by
Secretary Marshall, Under Secretary Clayton, As-
sistant Secretary Braden, the President and mem-
bers of the Board of Directors of the Export- Im-
port Bank, and other officers of the State Depart-
ment and the Bank, who discussed with them mat-
ters of mutual interest to the Governments of
Haiti and the United States.^
Coinciding with the mission's visit were several
developments demonstrating the mutual coopera-
tion and close relations which exist between Haiti
and the United States. These included the exten-
sion until June 30, 1948 of the joint agricultural
program of the Government of Haiti and the In-
stitute of Inter- American Affairs; an increase in
the price paid by the Reconstruction Finance Cor-
poration for Haitian sisal, most of which is pur-
chased by that agency; continuation of an ac-
celerated program of cultural exchange between
the two countries; and the preliminary steps in
the negotiation of a cultural convention which, if
concluded, would be the first such formal accord
entered into by this Government.
Department of Slate Bulletin
\
Proposed Amendment to the Constitution Relating
to President's Terms of Office
[Released to the press March 28]
The original joint resolution proposing an
amendment to the Constitution of the United
States relating to the terms of office of the Presi-
dent was received at the Department of State on
the afternoon of March 24.
The document bears the signatures of Joseph
W. Martin, Jr., Speaker of the House of Repre-
sentatives, and William F. Knowland, Acting
President of the Senate pro tempore, and has also
the customary endorsement, "I certify that this
Joint Resolution originated in the House of Rep-
resentatives", which is signed by John Andrews,
Clerk of the House of Representatives. Resolu-
tions proposing amendments to the Constitution
are not submitted to the President of the United
States, and accordingly this resolution does not
bear the signature of President Truman.
When a proposed constitutional amendment is
received from Congress by the Secretary of State,
it becomes his duty to communicate the resolution
to the Governors of the 48 States. A letter signed
by the Secretary of State, or the Acting Secretary
of State, is sent to the Governor of each State en-
closing a copy of the resolution of Congress duly
authenticated under the seal of the Depai'tment of
State. In the present instance these 48 letters
were dispatched on March 27, which allowed time
for the making of copies of the resolution, for the
preparation of certificates of authentication, and
for the affixing thereto of the seal of the Depart-
ment.
The letter of the Acting Secretary of State to
the Governors read as follows :
"I enclose a certified copy of a resolution of
Congress entitled 'Joint Resolution Proposing an
Amendment to the Constitution of the United
States relating to the terms of office of the Presi-
dent', passed during the first session of the
Eightieth Congress of the United States, 'Begun
and held at the City of Washington on Friday, the
third day of January, one thousand nine hundred
and forty-seven'. It is requested that you cause
this joint resolution to be submitted to the Legis-
Aptil 6, 1947
lature of your State, for such action as it may
take, and that a certified copy of such action be
communicated to the Secretary of State, as re-
quired by section 160, title 5, United States Code,
copy of which is enclosed.
"An acknowledgment of the receipt of this com-
munication is requested."
An enclosure to the letter is a copy of section
160, title 5, of the United States Code, as follows :
"Wlienever official notice is received at the De-
partment of State that any amendment proposed
to the Constitution of the United States has been
adopted, according to the provisions of the Con-
stitution, the Secretary of State shall forthvsdth
cause the amendment to be jjublished, with his
certificate, specifying the States by which the same
may have been adopted, and that the same has
become valid, to all intents and purposes, as a part
of the Constitution of the United States."
Article V of the Constitution of the United
States provides that —
"The Congress, whenever two thirds of both
Houses shall deem it necessary, shall propose
Amendments to this Constitution, or, on the Ap-
plication of the Legislatures of two thirds of the
several States, shall call a Convention for propos-
ing Amendments, which, in either Case, shall be
valid to all Intents and Purposes, as Part of this
Constitution, when ratified by the Legislatures of
three fourths of the several States, or by Conven-
tions in three fourths thereof, as the one or the
other Mode of Ratification may be proposed by tlie
Congress. . . ."
The present joint resolution includes the provi-
sion that the proposed amendment "shall be valid
to all intents and purposes as part of the Consti-
tution when ratified by the legislatures of three-
fourths of the several States". In the case of 20
of the 21 amendments to the Constitution that
have gone into force, the procedure of submission
to the legislatures of the States was employed ; in
the one case of tlie Twenty-first Amendment the
alternative procedure of submission to conventions
in the States was employed.
635
THE RECORD OF THE WEEK
When and as the respective State legislatures
take action on the proposed amendment to the
Constitution, certified copies of such action are
transmitted to the Secretaiy of State ; and if and
when the necessary three fourths of the States, or
in other words 36 States, have ratified the proposed
amendment, the Secretary of State, pursuant to
section 160, title 5, United States Code, will certify
under the seal of the Department that it appears
from oiEcial notices received at the Department
that the amendment has been ratified by the legis-
latures of those States, naming them, and that
the amendment "has become valid, to all intents
and purposes, as a part of the Constitution of the
United States".
A copy of the joint resolution in question
follows :
JOINT RESOLUTION >
PROPOSING AN AMENDMENT TO THE CONSTITUTION OF
THE UNITED STATES RELATING TO THE TEEMS OF
OFFICE OF THE PRESIDENT
Resolved iy the Senate and House of Repre-
sentatives of the United States of America in
Congress assetniled (two-thirds of each House
coneun'ing therein) , That the following article is
hereby proposed as an amendment to the Consti-
tution of the United States, which shall be valid
to all intents and purposes as part of the Consti-
tution when ratified by the legislatures of three-
fourths of the several States :
^^ Article —
'■'■Section 1. No person shall be elected to the
office of the President more than twice, and no
person who has held the office of President, or
acted as President, for more than two years of a
term to which some other person was elected Presi-
dent shall be elected to the office of the President
more than once. But this Article shall not apply
to any person holding the office of President when
this Article was proposed by the Congress, and
shall not prevent any person who may be holding
the office of President, or acting as President,
during the term within which this Article be-
comes operative from holding the office of Presi-
dent or acting as President during the remainder
of such term.
'■^Section 2. This article shall be inoperative un-
less it shall have been ratified as an amendment to
the Constitution by the legislatures of three-
' H. J. R<'S. 27, 80th Cong.
636
fourths of the several States within seven years
from the date of its submission to the States by
the Congress."
Joseph W. Martin, Jr.
Speaker of the House of Representatives
William F. Knowland
Acting President of the Senate pro tempore.
I certify that this Joint Kesolution originated in
the House of Representatives.
John Andrews, Clerk.
ILO Meeting — Continued from page 611
viding means for consideration of questions aris-
ing from the proceedings of the Building, Civil
Engineermg and Public Works Committee. The
fifth and last resolution requested the ILO to un-
dertake a study of the methods employed in the
various countries of conducting industrial rela-
tions in the construction industries.
The first sessions of the Textiles Committee and
the Building, Civil Engineering and Public
Works Committee of the ILO furnished an op-
portunity to the delegates of the several func-
tional groups to meet together and to exchange
their views on the conditions in their respective
countries. In this manner they provided a basis
for becoming acquainted with problems of mu-
tual interest and of laying a foundation stone for
future international cooperation in the field of
social policy in the textile and construction in-
dustries. The consensus of opinion regarded both
meetings as quite successful.
THE FOREIGN SERVICE
Ambassador to Yugoslavia, Resigns
The President has received a letter dated March
26, 1947, from Eichard C. Patterson, Jr., tender-
ing his resignation as United States Ambassador
to Yugoslavia. For the text of Mr. Patterson's
letter and the President's reply, see White House
press release of March 27, 1947.
Ambassador to Poland, Resigns
The President has received a letter dated March
21, 1947, from Arthur Bliss Lane tendering his
resignation as United States Ambassador to Po-
land. For the text of Mr. Lane's letter and the
President's reply, see White House press release
of March 25, 1947.
Department of State Bulletin
World-Wide Oral Examinations for
Foreign Service
[Released to the press March 28]
An examining panel left Washington on March
28 on a trip around the world to conduct oral
examinations for admission to the Foreign Service.
The panel consists of :
Joseph C. Green, of Cincinnati, Ohio, and Chevy Chase,
Maryland, Executive Director of the Board of Ex-
aminers for the Foreign Service, Chairman with the
rank of Minister ;
Frederick W. Brown, of Kensington, Maryland, formerly
of the staff of the Civil Service Commission ;
Wayne C. Taylor, of Chicago, Illinois, and Washington,
D.C., former Under Secretary of Commerce ;
A. Rex Johnson, of Provo, Utah, and Arlington, Virginia,
Assistant Director, Office of Foreign Agricultural Re-
lations, Department of Agriculture.
The examinations will be held in Honolulu,
Manila, Tokyo, Shanghai, Bombay, Cairo, Rome,
Munich, Frankfurt, Berlin, Brussels, and Paris.
Most of those who will take the examinations are
candidates for admission to the middle and upper
THE RECORD Of THE WEEK
classes of the Foreign Service under the Manpower
Act who have been exempted from the written
examinations, or candidates for admission to class
6 who were successful in the special written ex-
amination given in October 1946 for veterans and
members of the armed forces.
THE DEPARTMENT
Garrison Norton Confirmed as
Assistant Secretary of State
On March 21, 1947, the Senate confirmed the
nomination of Garrison Norton to be Assistant Sec-
retary of State for transport and communications.
Mr. Norton was formerly Director of the Office of
Transport and Communications.
Appointment of Officers
The Department of State announced on March
26 the appointment of Walter A. Eadius as Di-
rector, Office of Transport and Communications.
Addresses, Statements, and Broadcasts of the Week
The Secretary of State.
Acting Secretary Acheson.
Under Secretary Clayton.
Warren R. Austin, U.S. Repre-
sentative of the U.N.
Paul Porter, Chief of American
Economic Mission to Greece.
Under Secretary Clayton.
Assistant Secretary Benton.
Joseph Johnson, Chief of Divi-
sion of International Secur-
ity Affairs.
Assistant Secretary Thorp.
Under Secretary Clayton.
Relating to questions before the Council of
Foreign Ministers. In this issue.
Aid to Greece and Turkey.
Aid to Greece and Turkey.
Aid to Greece and Turkey.
Aid to Greece and Turkey.
U.S. Participation in ITO.
"UNESCO: Proposal to History". Not
printed. For text, see Department of
State press release 230 of Mar. 24.
Reception of the Voice of America in Rus-
sia. In this issue.
"The Regulation of Armaments and Lasting
Peace". Not printed. For text, see De-
partment of State press release 262 of
Mar. 29.
"Economic Progress and World Peace". Not
printed. For text, see Department of
State press release 253 of Mar. 27.
"Why Does the United States Need Inter-
national Trade?" Announcement made
in this issue.
Made in Moscow at meetings of the Council
of Foreign Ministers.
Statement made before the Senate Commit-
tee on Foreign Relations on Mar. 24.
Statement made before the Senate Commit-
tee on Foreign Relations on Mar. 25.
Statement made before the House Commit-
tee on Foreign Affairs on Mar. 24.
Statement made before the Security Council
of the U.N. on Mar. 28.
Statement made before the House Commit-
tee on Foreign Affairs on Mar. 28.
Statement made before the House Commit-
tee on Ways and Means on Mar. 25.
Address made before the National Confer-
ence of UNESCO at Philadelphia,
Pa., on Mar. 24.
Statement made in Washington on Mar. 29.
Address made before the Women's Action
Committee in Washington on Mar. 29.
Address made before the Women's Action
Committee in Washington on Mar. 27.
Broadcast over NBC University of the Air
program on Mar. 29.
April 6, 1947
637
THE RECORD OF THE WEEK
Departmental Regulations
420.1 Use of Original Records of the Department of
State: (Effective 9-16-46)
I Use of Records by Officials of the United States
Government. The use of the records of the Department
by Government officials will be subject to such conditions
as the Chiefs of the appropriate policy Divisions in the
Department of State may deem it advisable to prescribe.
II Use of Records by Persons Who Abe Not Officials
of the United States Government.
A The confidential or unpublished files and records
of the Department prior to December 31, 1932 (with the
exception of the Department's records concerning the
Paris Peace Conference of 1919 and related subjects), or
such subsequent date as may be fixed by the Department,
may be made available for consultation to persons who are
not officials of the United States Government, subject
to the following conditions :
1 Files which are in current use in the Department
or which cannot be made public without the disclosure
of confidences reposed in the Department, or without
adversely affecting the public interest, will not be made
available to inquirers.
2 Papers received by the Department from a
foreign government which have not been released for
publication by that government will not be made avail-
able to inquirers without the consent of the govern-
ment concerned. If there is reason to believe that a
foreign government may be willing to permit the use of
the papers in question under certain conditions, the per-
mission may, at the discretion of the appropriate officials
of the Department, be requested.
a If such permission is requested, the expenses
of communicating with the foreign government (cost
of telegrams, postage, and so forth) will be met by
the person desiring to consult the papers.
3 Permission to consult the records of the De-
partment through the date fixed by the Department
may be granted, subject to the limitations set forth
in this regulation to such persons as lawyers, publicists,
historians, instructors, and professors iu accredited
colleges and universities ; and holders of the doctor's
degree (or its equivalent) in foreign relations or allied
subjects from such colleges and universities provided
that :
a The applicants are authorities of recognized
standing in the field to which the records relate, and
that they have an important and definite use for the in-
formation desired.
& Requests for permission to consult material
are definitely limited in scope and are confined to
specific subjects or particular papers. Owing to a
lack of personnel, the Department is not in a position
to assemble large quantities of papers or extensive
files for consultation by persons not officials of the
Government.
638
4 An application from an alien to consult the
records of the Department under this regulation will
be considered only if such an application is accompanied
by a letter from the head of the emba.ssy or legation
at Washington of the country of which the alien is a
citizen, subject, or national. Such a letter will show
that the applicant is favorably known to the appropriate
embassy or legation and that the mission is familiar with
the purpose of the applicant's worli.
5 All applications to consult the original records
of the Department of dates prior to the one fixed by the
Department will be referred to the Chief of the Division
of Historical Policy Research (RE). If the Chief of
RE Is of the opinion that the applicant possesses the
requisite qualifications as set forth in this regulation,
the applications will be handled as follows :
o Documents or papers previously released or
published, and unpublished papers clearly involving
no question of policy, intelligence, or security may be
made available to qualified applicants by the Chief
of RE without reference to other officials.
6 Material or information bearing a security
classification originating with another Government
agency will not be made available for inspection
unless specific approval is obtained from the agency
of origin.
c For requests for all other material. Informa-
tion, or documents, the Chief of RE will have assem-
bled all of the relevant papers and files which the
applicant desires to consult, and will have them sub-
mitted to the Chief of the policy Division charged
with the consideration of questions in the field which
is the object of the research or inquiry.
d If the Chief of the policy Division concerned
determines that the applicant will be permitted to
use all or part of the papers desired, he will inform
the Chief of RE of the conditions under which the
papers may be examined — that is, whether copies may
be made of the relevant documents or whether only
notes may be taken and whether the copies or notes
may be published in whole or in part, or used only for
background information ; or any other conditions
which the Chief of the policy Division may deem it
advisable to prescribe. This decision will be final
except in cases of unusual importance where the ques-
tion may be referred to an Assistant Secretary of
State or higher officer.
e Upon receiving the decision of the Chief of the
policy Division setting forth the conditions deemed
advisable and necessary to prescribe, the Chief of RE
will arrange for the applicant to consult the files
subject to the conditions mentioned.
f After the applicant has consulted the papers,
he will submit to the Chief of RE all notes, copies of
documents, and the like, which he has made. The
Chief of RE will refer these notes, copies, and the like,
except those based on the documents or papers re-
ferred to in paragraph II A 5 a above, to the Chief
of tile policy Division for examination if the Chief of
the policy Division so desires.
p The Chief of the policy Division may, after
Department of State Bulletin
such examination, return the papers to the Chief of
RE for transmittal to the applicant, or he may, at his
discretion, retain the notes and refuse the applicant
permission to use them.
B In order that the records of the Department may
be made available as liberally as circumstances permit,
the Department, each year, will give consideration to the
situation then existing with a view to advancing the date
fixed whenever such action is deemed possible.
Ill Liberal Intekpketation of Regulation. The provi-
sions of this regulation are to be interpreted as liberally
as possible. In this regard it is to be borne in mind that
the further it is possible to go in the way of promoting
legitimate historical research and the study of the foreign
policy of the United States without violating the con-
fidences necessary for the transaction of diplomatic affairs,
the more likely the Department will be to receive the sup-
port and trust of the intelligent public.
123.5 Division of Foreign Activity Correlation (FC):
(Effective 2-12-47)
I Major Functions. FC is responsible for the formu-
lation and coordination of Department policy for the col-
lection, evaluation, analysis, research, and dissemination
of foreign security information ; taking the action neces-
sary to implement this policy ; and directing all Depart-
mental programs in this field.
A Functions. The Division of Foreign Activity Cor-
relation :
1 Formulates Department iwlicy and acts as the
Department's sole liaison agent with respect to all
matters in the field of foreign security information;
2 Represents the Department on all interdepart-
mental boards and committees in this field ;
3 Participates in the formulation of the Depart-
ment's travel policy ;
4 Directs all Department travel-security pro-
grams; and
5 Directs and supervises the collection, evaluation,
research, and distribution of all foreign documen-
tary security information, including captured enemy
documents.
II Organization. FC consists of:
A Security and Control Branch
B Military and Naval Liaison Branch
C External Security Branch
D Administrative Branch
III Branch Functions and Responsibiuty.
A Security and Control Branch:
1 Formulates policy, devises procedures and tech-
niques, and organizes special fact-finding facilities
abroad in the field of security information.
THE RECORD OF THE WEBK
2 Compiles information and participates in the
formulation of the Department's travel policy and
foreign security programs.
B Military and Naval Liaison Branch:
1 Maintains liaison with the War and Navy De-
partments.
2 Prepares agreements on establishing military
missions abroad.
C External Security Branch:
1 Directs the collection of and analyzes foreign
documentary security information, including captured
enemy documents.
2 Prepares special reports based on documentary
information.
D Administrative Branch: Performs the normal
administrative functions for the Division.
IV Reiationshu>s. FC has relationships:
A With all Federal security and investigation
sources for the interchange of information.
B With the National Archives, by Presidential Direc-
tive, as the channel for the acquisition of wartime-censor-
ship material.
Corrigendum
The U.S. delegation to the International Wheat Council,
which was announced in the Bulletin of March 23, 1947,
page 532, also includes Leroy K. Smith, Production and
Marketing Administration, Department of Agriculture.
PUBLICATIONS
Publication on Greece and Turkey
In view of President Truman's proposal for aid to
Greece and Turkey the Department of State plans to
publish a pamphlet containing information on the subject
hitherto made public by the Department of State, the
White House, and the Congress, including such material
as the following : the President's recommendations to
Congress; statement by Warren R. Austin, U.S. Repre-
sentative to the United Nations ; testimony in Congres-
sional committees by Acting Secretary Acheson, by Under
Secretary Clayton, and by Chief of the American Eco-
nomic Mission to Greece, Paul Porter ; an address made
in Chicago by Loy Henderson, Director of the Office of
Near Eastern and African Affairs ; questions and answers
made public by the Senate B^oreign Relations Committee;
and a summary of a report by the Porter Mission. This
Department of State publication 2802 will be sold by the
Superintendent of Documents.
April 6, 1947
639
^^yyUe/yvL
.^^.f^£:^,3Wy;a.?-:-^. - ' '
Council of Foreign Ministers page
Moscow Meeting of the Council of Foreign
Ministers: Procedure for Preparation of
German Peace Treaty. Statements by the
Secretary of State:
U.S. Position on Peace Conference .... 607
Association of Allies With Council of Foreign
Ministers 607
Support of Committees and Conference for
Allied States 608
Statement on Albania 608
Position on Yugoslav Representatives . . . 609
Reparations Received by the United States.
Summary Statement by the U.S.Delegation. 609
Economic Affairs
U.S. Delegation to International Wool Study
Group 612
Two ILO Industrial Committees Meet in Bel-
gium. Article by Murray Ross 613
Restitution of American-Owned Property in
France 632
Procedure for Filing Property Claims in the
Netherlands 632
Haitian Good- Will Mission Concludes Negotia-
tions With U.S 634
International Information
International Broadcasting Foundation of the
United States. Proposal by the Depart-
ment of State 618
Radio Relay Stations at Algiers To Close . . . 623
Reception ^in U.S.S.R. of "Voice of America".
Statement by Assistant Secretary Benton . 624
Occupation Matters
Allied Trade Representatives in Japan . ... 611
Review of New Japanese Constitution .... 612
Treaty Information s&st
Congressional Hearings on Trade Agreements
Act. Statement by Under Secretary Clay-
ton 627
U.S.-French Agreement on Copyright Exten-
sion 632
U.S. Position on Swedish Import Restrictions . 633
Educational, Scientific, and Cultural
Cooperation
Proposed International Interchange and Infor-
mation Act. Letter of Transmittal . . . 624
Program for International Exchange of Persons:
Roster of Foreign Engineering Students . . 626
Aviation Training Program 626
Arrival of Burmese Students 626
Guatemalan Agriculturist Visits U.S. . . . 627
Historian To Visit Ecuador and Chile . . . 627
Calendar of International Meetings . . . 610
The Foreign Service
Ambassador to Yugoslavia Resigns 636
Ambassador to Poland Resigns 636
World-Wide Oral Examinations for Foreign
Service 637
The Congress
Proposed Amendment to the Constitution Re-
lating to President's Terms of Office . . . 635
The Department
Garrison Norton Confirmed as Assistant
Secretary of State 637
Appointment of Officers 637
Departmental Regulations 638
Addresses, Statements, and Broadcasts of
the Week 637
Publications
Publications on Greece and Turkey 629
mm/tymwto/yA
Murray Ross, author of the article entitled "Two ILO Industrial
Committees Meet in Belgium," is Special Assistant to the Chief of the
Division of International Labor, Social and Health Affairs, Office of
International Trade Policy, Department of State.
U. S. GOVERNMENT PRINTING OFFICE; 1947
fJAe/ )u!eha^tryienl/ ^ t/tate/
MOSCOW MEETING OF THE COUNCIL OF FOR-
EIGN MINISTERS • Statements by the Secretary of
State:
Economic Principles Regarding Germany .... 649
Level of Industry and Reparations From Current Pro-
duction 652
German Assets in Austria 653
THE GENERAL CONFERENCE OF UNESCO, PARIS :
THE PROGRAM IN ACTION • Article by Herbert J.
Abraham 645
THE GREAT LAKES FISHERIES CONVENTION •
Article by Durand Smith 643
For complete contents see back cover
Vol. XVI, No. 406
April 13, 1947
,J/ie zl)efta/i((^€^t z)^ c/late VJ W X 1 \J L 1 1 1
Vol. XVI, No. 406 • Publication 2798
April 13, 1947
For sale by the Superintendent of Documents
U. S. Government Printing Office
Washington 25, D. C.
SUBSCRIPTTON:
52 issues, $5; single copy, 15 cents
Published with the approval of the
Director of the Bureau of the Budget
Note: Contents of this publication are not
cnpyriphted and items contained herein may
be reprinted. Citation of the Department
or State Bulletin as the source will be
appreciated.
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
Serrice. The BULLETIN includes
press releases on foreign policy issued
6y 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 interruitional
agreements to which the United States
is or may become a party and treaties
of general interruitional 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 GREAT LAKES FISHERIES CONVENTION
hy Durand Smith
This article presents a historical account of the develop-
ment of a Great Lakes fisheries convention which is hefore
the Senate Foreign Relations Committee for its consideration.
Fishing in the Great Lakes is not only a sport ;
it is an important industry. As a sport it pro-
vides recreation and entertainment for countless
thousands. As an industry it provides nutritious
protein food for the people of Canada and of the
United States.
In 1944, the most recent year for which figures
are available, the commercial fisheries of the Great
Lakes produced for both countries 102,814,000
pounds. The United States share of this catch
was 75,687,800 pounds valued at $10,948,195. A
report on operations during 1939 showed that the
Great Lakes fisheries employed an estimated
10,296 fishermen from the Pi-ovince of Ontario and
from eight States — New York, Pennsylvania,
Ohio, Michigan, Indiana, Illinois, Wisconsin, and
Minnesota. They used 567 vessels, 2,640 motor-
boats, 2,347 non-motorboats and a great variety
and amount of fishing gear.
Like other natural resources upon which indus-
tries depend, the Great Lakes fisheries need con-
servation and development. Many species of
commercially desirable fish in every one of the
Great Lakes are not being caught today in such
quantities as in the earlier years of the industry.
Sturgeon have almost vanished ; the cisco of Lake
Erie are approaching extinction ; the chubs of the
United States waters of Lakes Huron and Michi-
gan are dwindling; the whitefish of Lakes Huron,
Michigan, and Superior are badly depleted. The
commercial fishermen have had to devote more
attention to coarser and less valuable fish. Al-
though the total take has remained fairly constant
during the past 30 years, reports indicate that the
actual abundance of fish in the Great Lakes has
AptW 13, 1947
declined. This fact is particularly significant in
as much as fishing pressure has increased; more
effort is expended and more efficient gear is
employed.
The need for cooperative action on the Great
Lakes was recognized more than 70 years ago. The
first report issued by the Superintendent of the
State Fisheries of Michigan, in 1875, discussed the
need for the establishment of uniform fishing laws.
The first Great Lakes interstate conference, which
was held in Detroit in October 1883, emphasized
tlie lack of regulations. Other interstate confer-
ences in 1884 in Milwaukee and in 1891 in New
York took up the question but accomplished little.
Other conferences and meetings during the next
forty-odd years kept alive the question of uniform
laws but failed to contribute much toward estab-
lishing them.
Gradually opinion developed toward the neces-
sity for international cooperative action. It was
recognized that Canadian participation was essen-
tial to success in as much as the Province of On-
tario shares with the eight States the jurisdiction
of the fish in the boundary waters. President
Cleveland in 1897 and President Taft in 1910 and
1911 sent messages and recommendations to the
Congress regarding joint control but they did not
achieve the desired results.
In February 1938 the Council of State Govern-
ments called a meeting attended by 60 public offi-
cials from all of the Lake States, from the U.S.
Bureau of Fisheries (one of the two predecessor
organizations of the present Fish and Wildlife
Service of the Department of the Interior) , from
the Department of State, and from the Pi'ovince of
643
Ontario. There was unanimity of view among
the State legislators, the directors of State con-
servation departments, the superintendents of
fisheries, and other officials that decisive action was
imperative, that the time had come for some form
of unified control. The delegates unanimously
adopted a resolution urging a treaty between the
United States and Canada for the establishment of
an International Board of Inquiry whose func-
tion would be "to consider and recommend
measures for the conservation of the Great Lakes
fisheries." Assemblyman W. Allan Newell of the
New York Joint Legislative Committee on Inter-
state Cooperation was appointed chairman of a
subcommittee to notify the President. Two para-
graphs from his letter dated February 28, 1938,
are pertinent :
"This letter is to inform you of the action of the
conference in unanimously recommending a treaty
and to urge that you bring this matter to the im-
mediate attention of the Secretary of State in order
that there may be no delay in beginning treaty dis-
cussions with the proper Canadian authorities. . . .
"I know that the delegates will appreciate your
good offices in urging that the Department of State
take immediate action in carrying out the wishes
of the conference."
The Governments of the United States and
Canada under an agreement signed February 29,
1940, established the International Board of In-
quiry for the Great Lakes fisheries to study the
taking of fish from the Great Lakes, to make a
report of its investigations to the two Govern-
ments, and to make recommendations as to methods
for preserving and developing the fisheries of the
Great Lakes. Twenty-nine public hearings were
held throughout the Great Lakes region in which
some 1,500 public officials, commercial fishermen,
and sportsmen participated. On August 6, 1942,
the Board of Inquiry submitted its report to the
Secretary of State calling attention "to the need
for an effective program for the conservation and
development of the Great Lakes fisheries and rec-
ommending joint action for that purpose by the
Governments concerned".
The report was submitted by Hubert R. Gal-
lagher of the Council of State Governments, who
acted as chairman; A. G. Huntsman of the Fish-
eries Research Board of Canada ; D. J. Taylor of
the Game and Fisheries Department of Canada;
644
and John Van Oosten of the Fish and Wildlife
Sei-vice.
A supplemental and considerably longer report
was submitted by the United States members of
the Board. Attention was given to data submitted
by 670 licensed commercial fishermen of the
United States who had an average of 21.4 years of
experience on the Great Lakes. It was significant
that the commercial fishermen themselves felt di-
rectly the deterioration of the resources.
The reports were then carefully studied by the
Department of State and by the Fish and Wildlife
Service. Agreement was reached that only
through coordinated action of all the govern-
ments— State, Federal, Provincial, and Dominion
— could the recommended measures be made
effective. ■
Work commenced on the drafting of a conven-
tion. Representatives of the Governors of the
eight States, members of the respective conserva-
tion departments, invited by the Department of
State, advised and took part in the development
of the convention. A number of their suggestions
were incorporated in the treaty proposals.
Throughout the hearings, the negotiations with
Canada and the drafting of the convention, the
Department of State adhered to the principle that
the States should maintain the fullest independ-
ence of action compatible with effective conserva-
tion and development of the fishery resources.
On April 2, 1946, the convention was signed in
Washington — on behalf of the United States by
Dean Acheson, Acting Secretary of State; on
behalf of Canada by Lester B. Pearson, the
Ambassador, and by H. Francis G. Bridges, the
Minister of Fisheries. President Truman, on
April 22, 1946, submitted it to the Senate for the
advice and consent of that body to ratification.
The convention was referred to the Committee on
Foreign Relations, where it awaits consideration.
The convention provides for an International
Commission which would formulate and recom-
mend specific fishery-research programs of
observation and studies; it requires that the Com-
mission plan for the effective management of the
fishery resources of the Great Lakes. It provides
also that the Commission may make regulations,
if technical reports point to their desirability, fix-
ing (a) open and closed seasons; (6) open and
closed waters; (c) the size limits for each species
(Continued on page 675)
Department of State Bulletin
THE GENERAL CONFERENCE OF UNESCO, PARIS
The Program in Action
hy Herbert J. Abraham
The article below discusses 'policies which are guiding the
course of UNESCO in its development, giving particular
attention to the role of the national commissions in that
organization. This is the second in a series of three articles.
The first, which appeared in the Bulletin of March 2, 19^7,
reviewed the program of UNESCO adopted at the first ses-
sion of the General Conference held at Paris, November 19-
December 10, 19^6.
The activities of UNESCO (United Nations
Educational, Scientific and Cultural Organiza-
tion), during the first three months of its exist-
ence, have largely been limited to recruiting a
staff and defining practicable objectives within
the limits of a $6,000,000 budget. It is therefore
too early to state in detail the steps which UN-
ESCO will take in giving effect to the numerous
projects which were approved by the General Con-
ference. However, certain policies which will
guide the operations of UNESCO have been de-
termined, both in the Constitution of UNESCO
and by action of the General Conference.
Three Functions of UNESCO
The functions of UNESCO are commonly de-
scribed in a threefold classification ; the two main
functions would be to provide services and to
stimulate action by related groups, while a third
function of conducting "operations" would be un-
dertaken to a limited degi'ee.
For example, in such a project as the improve-
ment of textbooks, UNESCO may employ a small
staff, including temporary consultants, to draft a
model procedure for the analysis of books, to pre-
pare illustrative materials on the treatment of
international organizations, and to analyze the
findings of the study. To this extent UNESCO
might be said to be conducting an operation. But
April 13, 1947
the main function, in this case, would be the stimu-
lation of cooperating national groups to under-
take their own studies, to draft their own illus-
trative materials, and to report on their findings
and recommendations. The illustration can be
generalized with reference to many other phases
of the program.
The American Delegation at the Conference
suggested a somewhat different description of
functions, which was adopted by the Program
Commission. In this analysis the term projects
was substituted for the term operations. Accord-
ing to this classification, a threefold distinction of
UNESCO functions can be made along the follow-
ing lines: UNESCO provides certain continuing
services, as for example the assembling and pub-
lication of useful statistics; secondly, UNESCO
stimulates and supports the activities of other or-
ganizations ; and, thirdly, UNESCO initiates and
exercises general direction over a number of sig-
nificant projects, in the conduct of which UNESCO
mobilizes all available resources on an interna-
tional scale. Under this latter classification, for
example, the whole program for the improvement
of textbooks would be a single project, incorporat-
ing the stimulation of other groups to cooperative
activity.
In both of the foregoing classifications one fact
stands out : Only a small part of UNESCO's pro-
64S
gram will be put into effect by UNESCO's own
permanent secretariat; active participation by-
many persons in many countries will be needed.
How this cooperation is to be organized is a major
problem which, it is hoped, will be solved this
year.
Organization of the Secretariat
The General Conference recognized that an ex-
perimental period would be necessary before the
administrative system could be suitably adapted
to the novel functions of the Organization. The
Conference accordingly refrained from prescrib-
ing a scheme for the organization of the Secre-
tariat. Instead, a resolution was adopted, the
essence of which is contained in a single sentence :
"The General Conference resolves that:
"Subject to the approval of the Executive
Board, the Director-General shall be responsible
for developing an efficient Organisation and for
adapting it to changing programmes and needs."
The resolution, however, calls attention to "facts,
directives, and principles which shall guide the
Director-General and the Executive Board in car-
rying out this task."
Tliat the Conference was particularly con-
cerned lest the Secretariat be frozen into a num-
ber of specialized bureaus and that it recognized
clearly the necessity for organizing world-wide
cooperation are demonstrated by the following ex-
tracts from its resolution :
"The administrative system should be so de-
signed as to prevent the development of seg-
mentalised activities and programmes, and to en-
courage the integi'ation of all efforts towards the
Organisation's supreme objective of contributing
to peace and security and the common welfare of
mankind through the development of understand-
ing among the peoples of the world. To effect
this purpose, the Director-General should have
continual regard to the need for the coordination
and planning of programmes in the light of
budgetary requirements.
"In addition to programme, administrative,
legal, and other traditional-type divisions, the
Organisation should provide means for the task
of enlisting the support of the peoples of the world
through their own voluntary organisations and
associations.
"Wliile each director of a major programme
646
division should be assigned in his field the func-
tions of research, stimulation of services, liaison,
and operation, it should be emphasised that many
of Unesco's activities will require joint action by
several or all divisions on a task-force or continu-
ing basis. There should be as few programme
divisions as practicable."
If the organization of the Secretariat proceeds
along the lines of the American Delegation's con-
ception of "projects", UNESCO will have a nu-
clear staff of administrative officers and adminis-
trators of continuing services, together with a
considerable number of experts recruited for
short-term service as "task forces". Without some
such plan, it is dubious whether UNESCO could
attract the ablest scholars, scientists, and educa-
tors to its service, and so avoid bureaucratic de-
bilitation. Perhaps remarkable administrative
skill will be needed if this policy is to be carried
out without impairing the organization's efficiency,
in the customary sense of that term.
The Role of National Commissions
UNESCO, viewed as the center of a network of
international collaboration, has three kinds of
direct relations : first, with the United Nations it-
self and with the other intergovernmental agen-
cies; secondly, with non-governmental interna-
tional associations such as those of educators,
scientists, and scholars; and, thirdly, with its
member states.
The Constitution of UNESCO provides that
member states should take steps to associate non-
governmental groups with the work of the organi-
zation. Article VII of the Constitution requires
that each state "shall make such arrangements as
suit its particular conditions", but the formation of
a national commission is recommended. Na-
tional commissions, where they exist, "shall act in
an advisory capacity to their respective delega-
tions to the General Conference and to their Gov-
ernments in matters relating to the Organisation
and shall function as agencies of liaison in all
matters of interest to it." It was anticipated, ap-
parently, that national commissions would engage
in some positive activities, going beyond their ad-
visory functions, for the Constitution provides
that "the Organisation may, on the request of a
Member State, delegate, either temporarily or per-
manently, a member of its Secretariat to serve on
Department of Sfofe Bulletin
the National Commission of that State, in order
to assist in the development of its work."
The question arose at the Paris Conference
whether UNESCO should initiate positive steps
to bring about the establishment of more national
commissions in states where none or few such
bodies exist. There was even a suggestion that
UNESCO might give some financial assistance to
this end. Since essentially domestic matters were
involved, however, the Conference restricted itself
to requesting member states to implement article
VII, and authorized the Director-General to grant
to member states "all the assistance — other than
financial assistance — which they may require, in
order to establish National Commissions or na-
tional cooperating bodies."
Governments, of course, will be requested to take
appropriate action, such as giving approval to
recommendations of UNESCO and accepting
draft conventions. Governments which have
highly centralized educational systems will play a
larger part in such matters as the revision of cur-
riculum and teaching materials than will our own.
Foreign Offices, ministries of education, and other
appropriate agencies, e.g., the U.S. Office of Edu-
cation will be concerned with UNESCO's program
so far as it affects national policy. Governments,
too, must vote the money which permits
UNESCO's Secretariat to perform its functions.
It is expected that in most countries, however,
the chief instruments of collaboration with
UNESCO will be a national commission or recog-
nized cooperating bodies.
The question of the channels of communication
between UNESCO and domestic groups and in-
dividuals was discussed which raised the sub-
sidiary technical question of whether a national
commission, through its own officers in its com-
munication with UNESCO, represents its govern-
ment, or whether such communications must pass
through an established "Ministi-y". This question
is left to be determined by each member state
in accordance with its particular practices.
The larger problem presents an obvious diffi-
culty. If national commissions are to enlist sup-
port for UNESCO and to mobilize intellectual
and cultural resources in UNESCO's service, they
must be effectively recognized by UNESCO's
Secretariat as the competent bodies for these pur-
poses. It would be unfortunate if the Secretariat
were to develop extensive programs of cooperation
with domestic associations and institutions with-
out using the national commission as its agency of
liaison. On the other hand, an ineffective or in-
adequately staffed national commission might be-
come a bottleneck instead of a channel.
The General Conference foresaw this problem,
and resolved that UNESCO "will keep each Na-
tional Commission informed of its connections in
the country of that Commission and will come to
an agreement with the Commission on all general
questions." The Executive Board was requested
to examine fully the question of national commis-
sions and to communicate its study to the member
states.
The Program Commission recognized in its re-
jDorts that national commissions would be respon-
sible for putting into effect many of its recommen-
dations : "The Secretariat should arrange for the
study of these materials with the assistance of Na-
tional Commissions and other national bodies" in
conducting the program for the improvement of
textbooks and other teaching materials. In the
study of social tensions, "UNESCO should have
regular recourse to the National Commissions
wherever appropriate." National commissions
are to be requested to submit observations on
copyright. It is requested that states accepting
the convention for facilitating the international
circulation of visual and auditory materials of an
educational, scientific, and cultural character shall
use the national commission in carrying out the
obligations of the convention. National commis-
sions are to be consulted in selecting works to be
recommended for translation.
Such typical examples demonstrate explicit ref-
erences in the reports of the General Conference to
the role of national commissions. Further col-
laborative effort by national bodies is evidently
needed in other fields. Twenty-seven special com-
mittees or panels of experts, for example, are called
for in the report, few of which could proceed far
in their studies without large-scale help from com-
petent national bodies. Such help is equally nec-
essary if UNESCO is to serve ultimately and ef-
fectively as a clearing house of information or
stimulate the international exchange of personnel.
The U.S. National Commission for UNESCO
The United States has always stressed the im-
portance of the national commissions in the work
of UNESCO. The law which authorized Ameri-
April 13, 1947
647
can acceptance of membership in UNESCO in-
cluded a provision for the creation of sucli a body.
Of the 100 members of the U.S. National Com-
mission, 60 are nominated by national organiza-
tions, 40 by the Secretary of State. The method
of selection illustrates the duality of UNESCO
itself — an intergovernmental organization which
is to promote collaboration of non-governmental
associations and private persons. The range of
the organizations represented, extending to labor
organizations, farm associations, women's civic
organizations, youth-serving bodies, religious
groups, and agencies of mass communication, re-
flects the intention to make of UNESCO an or-
ganization which will foster international under-
standing among people of all walks of life.
The Secretariat of the U.S. Commission is sup-
plied by the Department of State and is integrated
with the small staff which administers the rela-
tions between the Government and UNESCO.
The authorizing legislation did not prescribe the
functions of the Commission beyond reference to
article VII of UNESCO's constitution. The Com-
mission has interpreted its functions in its by-laws,
as follows :
"(a) to advise the Government of the United
States in matters relating to UNESCO and in all
matters referred to the Commission by the Secre-
tary of State ;
"(&) to act in a consultative capacity with re-
gard to the appointment of the United States dele-
gates to the General Conferences of UNESCO ;
"(c) to advise with the Delegations of the
United States to the General Conferences of
UNESCO with regard to the activities of the
latter ;
" (e?) to serve as an agency of liaison with organi-
zations, institutions and individuals in the United
States which are interested in matters relating to
the activities of UNESCO;
"(e) to promote an understanding of the gen-
eral objectives of UNESCO on the part of the
people of the United States."
At its first meeting, held September 23-26, 1946,
the Commission advised the Government on mat-
ters relating to the first meeting of the General
' United States National Commission for UNESCO: Re-
port on the First Meeting. (Department of State publica-
tion 2726. )
*A report on the National Conference will appear in
an early issue of the Butxetin.
648
Conference.^ Patterns of consultation have thus
been established. Questions held for further con-
sideration at the second meeting were how the
Commission could effectively serve as an agency
of liaison and also how it could promote an un-
derstanding of the objectives of UNESCO.
Two means for attaining those objectives were
provided for by the Congress in Public Law 565.
The Commission was instructed to call "general
conferences for the discussion of matters relating
to the activities of the Organization, to which con-
ferences organized bodies actively interested in
such matters shall be invited to send representa-
tives". Further, the Commission was authorized
to call a special conference of experts.
The National Conference
The first National Conference was held in Phila-
delphia, March 24-26, 1947. Approximately 600
organizations accepted invitations to send dele-
gates at their own expense. Meeting in plenary
sessions and in 14 section meetings, the Conference
received reports on the program of UNESCO and
considered ways in which American participation
could be advanced through the actions of organiza-
tions and by community activities.^
The members of the National Commission took
part in the Conference, and were thus enabled to
take full account of its proceedings and recom-
mendations at their own meeting, wliich was held
immediately afterwards.
Educational Rehabilitation and Reconstruction
UNESCO has an emergency function to per-
form— the mobilizing of assistance for the war-
devastated countries. Essentially, the methods by
which this task is performed are identical with
those required by the general program. The Sec-
retariat does not engage in direct relief activi-
ties. It provides services, collects and publicizes
information about needs, brings donors into touch
with recipients, gives advice, and stimulates action
by national groups. It works through interna-
tional welfare agencies and through governments
and national commissions. Through these chan-
nels, UNESCO hopes to procure goods and serv-
ices and money to the value of 100 million dollars.
In this country the moral obligation of Ameri-
can organizations to give assistance was soon rec-
ognized, and a nation-wide non-governmental
(Continued on page 65i)
Department of State Bulletin
THE COUNCIL OF FOREIGN MINISTERS
Moscow Meeting of the Council of Foreign Ministers:
Economic Principles Regarding Germany
STATEMENTS BY THE SECRETARY OF STATE
Necessity for Economic Unity'
There is much that the four of us have agreed
is desirable in principle: we agree that German
resources should be pooled and equitably shared;
that there should be an export-import plan ; on the
necessity for financial reform ; on the need to sub-
ject resources in Germany to German law; that
German coal, power, and steel should be consumed
economically; and that the level-of -industry plan
should be reviewed.
But we need to reach agreement on the imple-
menting of political and economic unity. We
must agree on the creation of German central
agencies and the establishment and scope of a pro-
visional government, on freedom of movement for
ideas, persons, and goods, the breaking down of
zonal barriers, on reparations, and on sharing the
temporary deficit.
We must make certain, however, that when we
reach agreement, the agreement means the same
thing to all of us. We had a paper agreement at
Potsdam, but it has only partially been imple-
mented or made effective. Unless we can have a
real meeting of minds and a real desire to carry out
both the spirit and the letter of our agreements,
it were better none were reached. We must not
repeat the experience we have had in implementing
the terms of the Potsdam agreement. We can
never reach real agreement on the basis of ultima-
tums or immovable positions.
We regret that the Soviet Delegation found it
necessary to state "the acceptance of reparations
from current production is an absolute condition
of the Soviet Delegation's acceptance of the prin-
ciple of economic unity." The Potsdam agi'ee-
April 13, 7947
738530—47 2
ment for economic unity was not conditioned oh the
acceptance of reparation from current production.
The United States categorically rejects the imposi-
tion of such a condition. It looks very much to
us as though the Soviet Union is trying to sell the
same horse twice.
The French Delegation also states that "it cannot
agree to any settlement of these three questions
without prior settlement of the question of export
of coal in conformity with the demands of the
French Government." Wliile we realize that
France was not a party to the Potsdam agree-
ment, we cannot accept her request as a condition
to our negotiations.
The United States Delegation recognizes the
need of France for coal and of the Soviet Union
for consumers' goods. It understands, too, the
unwillingness of the British Government to in-
crease the burden upon it of its support of the
German people, an unwillingness which the United
States shares.
It is not clear that the conflicts inherent in
these views can be reconciled, whatever position
the United States might take. The Soviet Dele-
gation has suggested that it will be possible for the
French to have their coal, and still leave enough
coal in Germany to manufacture the reparations
the Soviet Government demands. We do not agree.
The French Delegation believes that after it has
obtained the coal it needs from Germany and has
limited steel capacity in Germany to 7^/2 million
tons, it is still worth while to study the question of
1 Made on Mar. .31, 1947, and released to the press in
Moscow on that date and in Washington on Apr. 1.
649
THE COUNCIL OF FOREIGN MINISTERS
reparations out of current production. We do not
agree.
All Europe needs coal and is dependent on in-
creasing quantities for real recovery. We must all
recognize that German coal must be equitably ap-
portioned among the needs of France and other
countries of Europe and the needs of Germany
itself.
It is suggested that the deficit in German balance
of trade, which the United States and Great Bri-
tain are making good, could be avoided. This
could only be accomplished immediately, which is
the Soviet proposal, by reducing imports. Since
the bulk of German imports are foodstuffs, this
action would inevitably reduce German per capita
consumption to about 1,100 calories a day, which
is inadequate over any considerable period of time
to sustain life. Does the Soviet Government make
this proposal seriously ? Even at the present time
the ration standard in Germany includes only 1,550
calories per day, or 1,000 calories below the rate
set in the level-of -industry agreement of March 26,
1946.
The people of Europe lack the elementary neces-
sities of life. This lack can be filled only by the
production of goods of all kinds. A reasonable
increase in the level of industry in Germany will
help in time to produce more goods. With the
four- power treaty which we have proposed guaran-
teeing the continued demilitarization of Germany,
a reasonable increase in the level of industry should
not endanger Eurojiean security, but should con-
tribute materially to European recovery.
The United States is opposed to policies which
will continue Germany as a congested slum or an
economic poorhouse in the center of Europe. At
the same time, we recognize that Germany must
pay reparations to the countries who suffered from
its aggi'ession. Within these limits, we want Ger-
many to use its resources of skilled manpower,
energy, and industrial capacity to rebuild the net-
work of trade on which European prosperity de-
pends; ultimately, it desires to see a peaceful
Germany, with strong democratic roots, take its
place in the European and world community of
nations.
These are the reasons for the position taken by
the United States on the questions covered in this
section of the Coordinating Committee's report.
At a later stage of the agenda, the United States
will put forward again its proposal for four-power
650
guaranty of security. And in connection with its
view on increasing the productivity of Europe, it
will later indicate how it believes the agricultural
resources of the part of Germany placed under
Polish administration at Potsdam can be more
effectively developed and used to meet the needs of
Europe for food. At this time, however, and on
this subject the United States Delegation stands
for economic unity, a common plan to balance ex-
ports and imports at a livable standard in Ger-
many, and increase in the level-of-industry plan
to bring German productive plants more into line
with the requirements of Europe, and with this,
the quick completion of reparations so as not to
enmesh the powers who deserve reparations in con-
tinuous controversies among themselves and with
Germany.
Of all these points in the United States pro-
posals, primary emphasis is attached to the treat-
ment of Germany as an economic unit which was
agreed at Potsdam. Our representatives in Berlin
have been trying for 20 months to get that agree-
ment implemented. The United States is still try-
ing. It desires the treatment of Germany as an
economic unit because it does not wish to see Ger-
many partitioned. If Germany is divided, each
half will require strengthening to exist independ-
ent of the other. Two strong halves of Gei-many
may then emerge, later to be fused into a revital-
ized and militant Germany. The permanent parti-
tion of Germany is dangerous to the peace of
Europe and of the world.
Moreover, a partitioned Germany means a parti-
tioned Europe. While Germany contains but 65
million of the 350 million people of Europe, they
live at its center. The United States wants one
Germany because it wants a Europe which is not
divided against itself.
We must not permit our differences to stand in
the way of European recovery. Because the
United States Delegation accepts some of the pro-
posals here made does not mean that we are not
I'eady to review sympathetically any reasonable
proposals which may be made to implement the
program on which we have embarked together.
We all are here to resolve and not to accentuate our
differences. But we should not seek agreement
merely for the sake of agreement. The United
States recognizes that its responsibilities in Europe
will continue and it is more concerned in build-
ing solidly than in building fast.
Department of State Bulletin
Proposal Regarding Provisional Government
for Germany^
Secretary Marshall made the following ■proposal
with regard to the question of provisional govern-
ment for Germany at the Council of Foreign
Ministers meeting on April 2:
In view of the extent of our apparent agreement
and the necessity of moving ahead in this direc-
tion, I intend to propose and do now propose that
the Council of Foreign Ministers instruct the
Allied Control Council as follows :
1. To proceed to establish a plan for a provi-
sional German government representative of the
Lander with authority to :
a. Direct and coordinate central departments
in the fields set forth in the Potsdam agreement
and such other fields as have been or may be
agreed to by the Allied Control Council.
h. Initiate the processes of the framing of the
permanent democratic constitution.
c. Kecommend a pattern of permanent terri-
torial organization for the Lander in the future
German state.
2. To insure that the basic human rights and
freedoms contained in federal and Lander consti-
tutions will be realized and that the autonomous
powers of both state and central governments are
guaranteed.
3. To define the relationships between the Al-
lied Control Council and the provisional govern-
ment and between the zone commanders and the
provisional government.
During the course of the meeting April ^ Secre-
tary Marshall said at one point:
I would like to make a general comment before
you go into detailed paragraphs. In general, the
United States Delegation is not opposed to the
points expressed by the British Delegation as to
the stages. However, we would prefer that the
provisional constitution should be in fact a charter
from the Allied Control Council so Germany can
devote its real attention to the permanent con-
stitution. We are apprehensive that the prepara-
tion of a provisional government and holdings of
election for its officials will prove a lengthy pro-
cedure. That is why I proposed initially the
Council of Minister Presidents of the several
Lander. It would provide a quick way of secur-
April 73, 7947
THB COUNCIL OF FOREIGN MINISTERS
ing provisional government of a democratic char-
acter to serve while a permanent constitution is
being prepared for ratification by the German peo-
ple, and prepare the way for the election of con-
stitutional officials of the government.
The United States Delegation accepts the Brit-
ish proposal as to stages with the reservation, at
least for the time being, that we are not as yet con-
vinced of the necessity of a provisional constitu-
tion and would like further consideration of the
necessity for delay in the framing of the perma-
nent constitution.
At another point, he said:
I would like first to say with reference to Mr.
Bevin's observation regarding the American Dele-
gation's reluctance regarding a provisional con-
stitution, that our principal doubt or objection re-
lates to the time factor involved. We would prefer
to see a provisional goverimient gotten under way
without unreasonable delays that are involved in
the drafting and accepting of the constitution.
For that reason, we prefer the idea of a charter.
For example, we want a provisional government,
composed at the top of representatives of the
Lander, set up as soon as economic unity is estab-
lished. In the American zone the representatives
of the Lander have been elected. In some other
zones I believe not. We would prefer, in this case,
to accept the present representatives rather than
the delay for the purpose of an election. It is our
conception that this provisional government
promptly established would be charged with the
preparation of a constitution for the permanent
system of government which, of course, would be
subject to amendment, as Mr. Bevin has suggested.
If this were agreed to, we would have no objection
to instructing the provisional council to consult
the political parties, trade unions, and other demo-
cratic bodies in preparing the draft of the con-
stitution, but we are opposed. As I understand,
the Bi'itish Delegation is opposed to having this
body, which is drafting the constitution, include
other than representatives of government rather
than other agencies not purely governmental.
Now, with reference to certain of Mr. Molotov's
comments, our proposal regarding majority vote
is intended to deal with a very practical situation.
We plan to set up a German government. As the
' Made in Moscow on Apr. 2, 1947, and released to the
press in Washington on Apr. 3.
651
THE COUNCIL OF FOREIGN MINISTERS
German government cannot be controlled unless
■we are unanimously agreed, the German govern-
ment would have authority in effect to use its own
judgment whenever there was disagreement in the
Allied Control Council. That would in effect
make the German government the arbiter of our
differences. For example, suppose the Allied Con-
trol Council could not agree in regard to the allo-
cation of coal. Would we then leave the proposal
to the German govenmient to decide or would ship-
ments of coal cease until problematical unanimous
vote was secured ?
With regard to paragraph 1 of Mr. Molotov's
two written proposals, I am not sure from his
statement if it is his proposal and desire that the
Allies should draw up a constitution for Germany
or if he subscribes to the principles that the Ger-
man people should draw up their constitution
with Allied assistance or supervision. There was
mention made of the Weimar constitution, but we
in the American Delegation do not wish to get into
an argument as to what part of the constitution
we approve and what part we do not. Rather we
want to know the view of the German people
today. The second paragraph of Mr. Molotov's
proposal is acceptable to the United States Dele-
gation.
It seems to me that the discussion has been help-
ful, whatever the difficulties of reaching agree-
ments here. We cannot agree on certain general
principles without running the risk that our var-
ious interpretations of them may cause harm rather
than to help the Allied Control Council in work-
ing out the details. We have to be certain that we
thoroughly understand each other before we reach
an agreement with any possibility of a real agree-
ment resulting. Therefore, I suggest as a possible
course of action that we refer all of our proposals
to the Allied Control Commission so that they can
work out both the principles and the details to-
gether. I would, therefore, modify the proposal
I stated today for a directive to the Allied Con-
trol Council, and in its place suggest that the Coun-
cil be instructed to study and formulate a plan for
a central administrative agency and for a provi-
sional government in the light of our several pro-
posals and the discussion we have had here. This
plan could become effective if approved by each
of our governments separately, or after considera-
tion and approval at our next meeting.
At a third point, he said:
Before commenting on the last statement of Mr.
Molotov's, I would like to say he has given too
broad an interpretation to my proposal for a ma-
jority vote; it was not intended to apply to the
general deliberations of the Allied Control Coun-
cil but only to those actions in approving or dis-
approving the acts or proposed acts of the German
government which may come before it.
Level of Industry and Reparations From Current Production
STATEMENT BY THE SECRETARY OF STATE <
The Potsdam agreement and the agreed level
of industry fixed under its terms did not provide
for any reparations from current production.
Present demands to increase the reparations
agreed at Potsdam cannot be considered by the
United States.
The implementation of this agreement, how-
ever, will, in any case, require a review of the
level-of-industry plan of March 26, 1946, to take
into account the following considerations:
1. The maintenance of a tolerable standard of
' Statement circulated at the Apr. 3 meeting of the
Council of Foreign Ministers, and released to the press
in Washington on Apr. 4.
living for the German people, as provided in the
Potsdam agreement, without external assistance,
making adequate provision for :
(a) The population of Germany foreseen in
1949;
(i) The possible loss to Germany of existing
resources (e. g., the Saar) ;
2. Internal inconsistencies in the plan, such as,
for example, the shortage of power to meet
planned requirements, the inadequacy of planned
provisions for certain basic chemicals, some fer-
tilizers, and possibly steel.
The Soviet and British Delegations have indi-
652
Department of State Bulletin
cated that they favor a substantial increase in the
level of industry.
The United States Delegation believes that a
further increase is desirable to serve the peacetime
needs of Germany and of Europe. Although we
do not believe it is possible, without further study,
to indicate quantitatively what this would mean
for specific German industries, a directive to the
Allied Control Council for review of the level-
of-industry plan should, in addition to the two
points mentioned above, also require consideration
of:
3. The peacetime requirements of European
countries for German products and trade revival.
It must be recognized that further increase in
the level of industry will reduce the number of
plants available for removal on reparation ac-
count. If proposals for reparations from current
output are to be considered, these proposals must,
THE COUNCIL OF FORE/GN MINISTBRS
in our view, be limited to compensation for the
plants which were destined for removal but which
are no longer available by reason of an increase
in the level of industry to aid the European
economy.
If reparation from current output is conceived
in this way, the United States Delegation is will-
ing, without commitment, to have its experts study
this question.
Any plan for providing such compensation
must not increase the cost of occupation, retard
the repayment of Allied advances to Germany,
retard the establishment of a self-supporting Ger-
many, nor could it be permitted to prevent the
equitable distribution of coal and other raw mate-
rial in short supply among the countries depend-
ent upon these resources. It could not become
operative until economic and political unity as
well as the other related objectives have been
attained.
German Assets in Austria
STATEMENT BY THE SECRETARY OF STATE'
1. Yesterday I indicated that the United States
Delegation did not agree with the position Mr.
Molotov has taken in his paper on German assets
in Austria. We do not admit that title to German
assets has already passed; however, as I have
already pointed out in the paper which the United
States Delegation circulated on March 21 on this
subject, we feel that it is not essential that this
question of title be decided now,
2. Without prejudice to the ultimate decision by
the Council of this question of title and in the in-
terest of clearing the way for the deputies to make
some progress with consideration of this all-
important subject, let us assume for the sake of
discussion that the question of title has been
decided one way or the other; in either event
further clarification of the three points raised in
my memorandum appears to be essential.
A. Definition
B. Arbitration
C. Application of Austrian law
3. Now let me discuss briefly what I mean by a
definition. I don't mean the definition under
article X of law 5, but instead I am ti-ying to make
certain that we understand just what assets the
Soviet Union think they should have title to as a
result of the Potsdam decision on German assets.
From our 20 months' experience in Austria, we
believe there is a misunderstanding on this score
and that in some instances there have been er-
roneously included in the definition of German
assets property which is really Austrian and which
was taken away from the Austrians by the Ger-
mans after the Anschluss by force or duress, and
other property belonging to United Nations and
their nationals. In our views, none of the Allies
intended at Potsdam to transfer title to German
assets which were taken from the victims of Nazi
aggression and which justice and equity demand
be returned to them. I am sure you will admit
that discussion of this subject by our deputies will
be extremely useful.
4. As to my second point, "arbitration", let us
again take a hypothetical case in which not only
the question of title but also the question of defini-
tion have been agreed to. Certainly, as we have
provided for other settlement of disputes in the
satellite treaties, may we not likewise direct our
" Made on Mar. 27, 1947, and released to the press in
Moscow on that date, and In Washington on Mar. 31.
April 13, 1947
653
THE COUNCIL OF FOREIGN MINISTEKS
dei^uties to provide for such a settlement on this
question of German assets in the Austrian treaty?
5. My last point has to do with the status in
Austria of German assets transferred as German
reparations. Again we may assume that we have
satisfactorily agreed to the other questions enum-
erated above, that German assets to which the
Soviet Union is entitled have been transferred.
Certain Austrian law applies to these properties.
It never was intended at Potsdam that properties
obtained as German reparations even in Germany
would enjoy extraterritorial rights. Mr. Molotov
in his discussion of economic principles in Ger-
many on March 19 states as follows, and I quote :
"In accordance with the Berlin decisions, the
Soviet Government took measures so that repara-
tions would be obtained from the eastern zone of
Germany, a proportion of which has been assigned
to Poland. Reparations took the form of remov-
als of capital equipment, deliveries from current
position (though these have hardly been sufficient)
and the taking of economic entei'prises into Soviet
possession. No extraterritorial rights are in-
volved with respect to these Soviet-owned enter-
prises in Germany, since they all function under
German law".
It would appear inconsistent not to admit that
this same principle would apply in Austria. If
it is held that it does not, the United States Dele-
gation would feel very definitely that to remove
a large segment of Austrian industry from the
Austrian economy would nullify the pledge we
have taken in the very first article of the treaty,
namely, our unanimous agreement to reestablish
a sovereign and independent state. I ask my col-
leagues to agree to instruct our deputies to discuss
and clarify this as well as the other vital questions
enumerated.
General Conference of UNESCO, Paris: The Program in Action — Continued from page 648
effort to coordinate and stimulate this work was
under way before the U.S. National Commission
was created. The Commission for International
Educational Reconstruction (CIER), representa-
tive of many cooperating bodies, was established
and was furnished with a small secretariat.^ In
order to relate the CIER to the U.S. National
Commission, the Chairman of the National Com-
mission has recognized CIER as the competent
body to handle matters relating to American par-
ticipation in the work of educational rehabilitation
and reconstruction. The CIER, however, is not an
operating body; essentially it performs on a na-
tional scale the functions for educational rehabili-
tation which UNESCO performs internationally.
The operation of collecting and transmitting
needed educational equipment and supplies, pro-
viding fellowships, and obtaining some gifts of
money rests with the cooperating national organi-
zations and their local branches.
' The office of the CIER is at 744 Jackson Place, Wash-
ington, D.C. The Executive Secretary is Dr. Harold E.
Snyder.
Conclusion
The effectiveness of the program of UNESCO
will be measured by the increase in international
collaboration of private groups and individuals
and by the increase within member countries of
educational activities contributing to the purposes
of UNESCO. UNESCO must therefore give a
higli priority to the problem of the methodical or-
ganization of related cooperation and participa-
tion. The Secretariat may well be viewed not
merely as the administrative arm of a relatively
small organization, but as the nerve center of a
vast international interlocking of collaboration in
education, science, and culture. The establishment
of methods of systematic collaboration will take
some time, and these necessary preliminaries will
not be spectacular. UNESCO probably will seem
to be rather slow in getting much of its program
under way. But much will have been achieved this
year if, by the time the General Conference recon-
venes at Mexico City in November, this ground-
work has been laid and preliminary studies and
activities have been initiated on an international
scale.
654
Department of State Bulletin
THE UNITED NATIONS
Accomplishments of Fourth Session of the Economic and Social Council
STATEMENT BY ACTING U.S. REPRESENTATIVE IN EC OSOC >
During its Fourth Session, the Economic and
Social Council has come to grips with certain basic
pi'oblems underlying world economic recovery and
social advancement. Because they are basic, these
problems cannot be solved completely in three
weeks, or three years. At this session, however, the
Council has created specific machinery which, if
used effectively and with mutual determination
and good-will, can greatly facilitate international
cooperation for the solution of some of the funda-
mental problems. Positive steps taken at this ses-
sion include the following :
The Economic and Social Council has created
two regional economic commissions, the Economic
Commission for Europe and the Economic Com-
mission for Asia and the Far East. In establishing
these commissions, the United Nations is adopting
a new approach to the problem of putting the war-
devastated areas of the world back on their feet.
These commissions represent a practical method of
achieving multilateral cooperation, through the
United Nations, on concrete problems of recon-
struction. To this joint effort, the United States
attaches major importance.
The commissions will be composed of the coun-
tries members of the United Nations in the areas
concerned. The United States is also a member of
both commissions. Other countries will also be
invited to consult with the commissions on matters
of particular concern to them. Working relation-
ships will also be established with the specialized
agencies such as the Food and Agriculture Organi-
zation, and with the International Bank for Re-
construction and Development and the Intei'na-
tional Monetary Fund.
It will be the task of the Economic Commission
for Europe to work on practical matters, such as
measures to insure the most effective utilization of
the inadequate European coal supplies and the
better coordination of the means of inland trans-
port. The commission's terms of reference are
broad. They call for facilitating "concerted action
for the economic reconstruction of Europe" and
for "raising the level of European economic ac-
tivity." This commission will absorb, and thus
bring within the framework of the United Nations,
many of the emergency post-war functions which
have been performed up to now by the Emergency
Economic Committee for Europe, the European
Coal Organization, and the European Central In-
land Transport Organization.
No similar organizations have existed in the Far
East. The commission in that area will therefore
have to perform a considerable amount of prepara-
tory investigation concerning the most urgent re-
construction problems.
The experiment with regional commissions is
a new departure. The Economic and Social Coun-
cil, however, will maintain general supervision
over their work in order that the activities of the
regional bodies may be effectively integrated with
the broader policies and programs of the United
Nations. The terms of reference of both commis-
sions provide for supervision by the Council and
fxdl reports to the Council on the commissions'
activities.
The commissions are designed primarily to fa-
cilitate reconstruction. For this reason provision
is made for special review within five years to de-
' Issued to the press by Leroy D. Stinebower, Acting U.S.
Representative, on Mar. 27, 1947. The statement was
released to the press by the U.S. Delegation to the United
Nations.
April 13, 1947
655
THE UNITED NATIONS
termine whether they should be discontinued or
maintained on a revised basis.
The measure of agreement obtained in this
Council session on the creation of these important
bodies is a heartening step forward. No such
agreement existed at the previous session of the
Council. The intervening months have demon-
strated that through patient, often undramatic,
work, agreement can be reached on fundamental
issues.
With regard to long-range problems of world
economy, this Council session has brought a
healthy airing of views. Specific action in this
connection includes approval of the significant
report of the Economic and Employment Commis-
sion, containing the instructions this commission
has given to two other bodies which can mean
much in the long view — the subcommissions on
Economic Development, and on Employment and
Economic Stability. The Council is suggesting a
practical basis of work for these two bodies. It
is requesting the Economic and Employment Com-
mission, working through these subcommissions,
and with the assistance of the Secretariat, to probe
the underlying causes of economic instability; to
take up such matters as the reasonable utilization
of manpower, materials, and capital on a world
scale, and with particular reference to under-
developed areas; and appropriate forms of joint
action to maintain full employment.
Tlie United States attaches equal importance to
these twin questions of economic development and
stable employment. It welcomes this joint ap-
proach to matters which will be the continuing
business of the United Nations. For advancing
the economic well-being of peoples throughout the
world is a matter which is limited by no horizon.
In the field of human rights, the Council is
taking constructive steps. One of these is the
expediting of the plans of the Commission on
Human Rights for getting to work on the prelimi-
nary draft of an international bill of rights. An-
other significant step is the bringing into existence
of two highly important subcommissions-— on
Freedom of Information and of the Press, and on
Prevention of Discrimiiiation and Protection of
Minorities.
One of the first tasks of the Subcommission on
Freedom of Information and of the Press will be
the preparation of a draft agenda for the world
conference on freedom of information. To this
656
conference the United States attaches the highest
importance. With proper preparation, this con-
ference can become a milestone in advancing a
basic human right which is of especial importance
to the world at the present time — the right of the
people to know. There is no more solid a basis
for mutual understanding than an informed world
public opinion.
The fourth session of the Economic and Social
Council is significant for another reason. For the
first time the Council had before it reports from
all its commissions (except for the Fiscal Commis-
sion), which held their first meetings just prior
to the Council session. This gave the Council the
opportunity to review its responsibilities in a more
comprehensive manner than has been possible to
the present time. Recommendations of these
commissions, being approved by the Council, in-
clude the making of special studies by the Secre-
tariat in both economic and social fields, special
advisory services to be set up under the United
Nations, and conferences to be held on specific
subjects under United Nations auspices. In the
field of social welfare provision has been made to
carry on some of the advisory functions of the
United Nations Relief and Rehabilitation Ad-
ministration. The International Children's
Emergency Fund is to be administered under the
general review of the Council, and the inter-
national regulation of the traffic in narcotic drugs
has been taken over as a responsibility of the
United Nations.
On the initiative of the United States the Coun-
cil will convene an international conference on re-
sources and conservation, and a World Statistical
Congress. The conservation conference will
probably be held in 1948. The World Statistical
Congress will be held in Washington in September,
1947, in connection with sessions of a number of
international professional groups scheduled for
that time and place. This congress will focus the
attention of the world's leading statisticians
present upon the statistical activities and needs
of the United Nations and specialized agencies.
The Economic and Social Council is getting on
with its tasks of promoting the conditions of
economic and social progress and development,
and respect for the dignity and worth of the in-
dividual which must underlie any stable and
enduring peace.
Department of State Bulletin
Summary Statement by the Secretary-General
MATTERS OF WHICH THE SECURITY COUNCIL IS SEIZED AND THE STAGE
REACHED IN THEIR CONSIDERATION >
Pursuant to Rule 11 of the Provisional Rules
of Procedure of the Security Council, I wish to
report that as of 28 March 19J:7, the Security
Council is seized of the following matters:
9. Incidents in the Corfu Channel
10. Draft Trusteeship Agreement for the
Former Japanese Mandated Islands.
The stage reached in the consideration of Items
1 through 6 is set forth in document S/279. The
stage reached in the consideration of Items 7 to
10 is as follows :
7. The Greek Question {See also Document S/279)
At the request of the Representative of the
United States the Greek Question was placed on
the Agenda of the one hundred and twenty-third
meeting on 28 March 1947. A statement was made
by the Representative of the United States and the
Council decided to continue the discussion at a
meeting to be held on 7 April.
8. The General Regulation and Reduction of
Armaments and Information on Armed
Forces {See also Document S/279)
The Commission for Conventional Armaments
was convened on 24 March 1947 and commenced
its task under its terms of reference.
9. Incidents in the Corfu Channel
The discussion was resumed at the one hundred
and seventh meeting on 18 February and continued
at the one hundred and ninth, eleventh and four-
teenth meetings on 19, 24 and 27 February, the
Representative of Albania participating. The
Council adopted a resolution submitted by the
Representative of Australia to appoint a Sub-
Committee of three members to examine all the
available evidence and to make a report on the
facts of the case as disclosed by sucli evidence.
The Report of the Sub-Committee (document
S/300) was discussed at the one hundred and
April 73, r947
738530 — 47^—3
twentieth, twenty-first and twenty-second meetings
on 20, 21 and 'lb March. Draft resolutions were
submitted by the Representatives of the United
Kingdom and Poland at the one hundred and
twentieth and twenty-second meetings, respec-
tively. The Representative of the United King-
dom accepted amendments submitted by the Rep-
resentatives of the United States and France at
the one hundred and twenty-first and twenty-
second meetings.
At the one hundred and twenty-second meeting
the amended United Kingdom draft resolution was
put to a vote and received seven votes in favour,
two against with one abstention. Since it did not
receive the affirmative vote of one of the permanent
members of the Council it was not adopted. The
Representative of Poland withdrew his draft reso-
lution.
10. Draft Trusteeship Agreenvent for the Former
Japanese Mandated Islands
By cablegram dated 13 March 1947 (document
S/297), the New Zealand Government requested
that those members of the Far Eastern Commis-
sion not represented on the Security Council
(namely, Canada, India, the Netherlands, New
Zealand and the Philippines) be invited under
Article 31 of the Charter to participate, if they
so desired, in the discussion in the Council. By
letter dated 12 March (document S/299) the In-
dian Government requested to be invited. At the
one hundred and eighteenth meeting the Council
decided to grant these requests.
The discussion was continued at the one hundred
and nineteenth and one hundred and twenty-third
meetings on 17 and 28 March with Representatives
of Canada, India, the Netherlands, New Zealand
and the Philippines participating.
The Council adjourned until 2 April.
' Security Council Document S/314, Mar. 28, 1947. This
summary supplements the one printed In the Bulletin of
Mar. 23, 1947, p. 527. The omitted parts correspond sub-
stantially to the material formerly printed.
657
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings "
In Session as of April 6, 1947
Far Eastern Commission
United Nations:
Security Council
Military StafiF Committee
Commission on Atomic Energy
Telecommunications Advisory Committee . . . .
Commission on Conventional Armaments . . . .
Trusteeship Council
German External Property Negotiations (Safehaven)
With Portugal
With Spain
Inter- Allied Trade Board for Japan
Council of Foreign Ministers .
International Wheat Conference
WHO (World Health Organization): Third Session of Interim
Commission.
Scheduled for April-June 1947
Interparliamentary Union: 36th Plenary Session
UNESCO Executive Board
International Conference on Trade and Employment: Second
Meeting of Preparatory Committee.
International Red Cross Committee.
ECITO (European Central Inland Transport Organization) :
Seventh Session of the Council.
United Nations:
Meeting of Experts on Passport and Frontier Formalities .
Permanent Central Opium Board
Committee on Progressive Development and Codification
of International Law.
Preparatory Conference of Experts on Telecommunications.
ECOSOC (Economic and Social Council) :
Subcommission on Statistical Sampling
Subcommission on Protection of Minorities and Preven-
tion of Discrimination.
Fiscal Commission
Subcommission on Freedom of Information and of the
Press.
Social Commission
Economic and Employment Commission
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lisbon
Madrid
Washington
Moscow . .
London . .
Geneva
Cairo .
Paris .
Geneva
Geneva
Paris .
Geneva . . .
Geneva . . .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
' Prepared in the Division of International Conferences, Department of State.
2 Tentative.
1946
Feb.
26
Mar.
25
Mar.
25
June 14
Nov.
10
1947
Mar.
24
Mar.
26
1946
Sept
3
Nov.
12
Oct.
24
1947
Mar.
10
Mar. 18-. Tem-
porarily ad-
journed; will re-
convene Apr. 14
Mar. 31
Apr.
7-12
Apr.
9
Apr.
10
Apr.
14-26
Apr.
14
Apr.
Apr.
May
14
14
1
June 9 «
Apr.
Apr.
14 2
21 »
Apr. 28 »
May 5»
May 26 >
June 9 '
i
658
Department of State Bulletin
Calendar oj Meetings — Continued
United Nations: ECOSOC— Continued
Human Rights Commission . . .
ICAO (International Civil Aviation Organization) :
European-Mediterranean Special Air Traffic Control Con-
ference.
Interim Council
Air Transport Committee ,
First Meeting of General Assembly
South American Regional Air Navigation Meeting
International Tin Study Group: First Meeting
Fifth International Hydrographic Conference
ILO (International Labor Organization) :
Industrial Committee on Coal Mining
Industrial Committee on Inland Transport
101st Session of Governing Body
30th Session of International Labor Conference
American International Institute for the Protection of Child-
hood: Meeting of the International Council.
International Meeting of Marine Radio Aids to Navigation . .
FAO (Food and Agriculture Organization) :
International Timber Conference . . ,
Rice Study Group
IRO (International Refugee Organization): Second Part of
First Session of Preparatory Commission.
Congress of the Universal Postal Union
International Radio Conference . . .
lEFC (International Emergency Food Council): Fourth
Meeting.
IAR.\ (Inter-Allied Reparation Agency) : Meeting on Con-
flicting Custodial Claims.
Eleventh International Congress of Military Medicine and
Pharmacy.
Caribbean Commission
Lake Success .
Paris
Montreal
Montreal
Montreal
Lima . .
Brussels
Monaco
Geneva
Geneva
Geneva
Geneva
Montevideo
New York and New London
Marianske-Lazne, Czechoslovakia .
Trivandrum, Travancore, India . .
Lausanne
Paris . . . .
Atlantic City
Washington .
Brussels
Basel .
Jamaica
June 16 2
Apr. 15
Apr. 29
April
May 6
June 17
Apr. 15-18
Apr. 22
Apr. 22
May 6
June 13
June 19
Apr. 25
Apr. 28-May 10
Apr. 28-May 10
May 15
May 1
May 6
May 15
Mav 26-27
May
June 2-7
June 23-30
' Tentative.
Activities and Developments»
WOOL STUDY GROUP ADOPTS TERMS OF REFER-
ENCE AND PRESENTS CONCLUSIONS i
During the past week, representatives of
Australia, Argentina, Belgium, Canada, Cuba,
Czechoslovakia, Finland, France, Iceland, Ire-
land, Mexico, Italy, the Netherlands, New Zea-
land, Paraguay, Peru, Poland, the Union of South
Africa, Switzerland, Turkey, the United King-
dom, Uruguay, the United States of America, and
'Released at conclusion of Wool Study Group meeting
in London on Apr. 3, 1947, and In Washington on Apr. 4.
April 73, 7947
659
ACTIVmeS AND DEVELOPMENTS
Yugoslavia, together with observers from the
United Nations, the Food and Agriculture Organ-
ization, and U. K./Dominion "Wool Disposal, Ltd.,
have participated in the first meeting of the Wool
Study Group.
The principal objects of the meeting have been :
(i) To consider the organization of the study
group;
(ii) To review the world wool situation in the
light of the changes since the International Wool
Conference held in London in November 1946;
and
(iii) To exchange information about domestic
wool problems and policies.
The study group has adopted terms of reference,
of which the principal features are that member-
ship should be open to all countries substantially
interested in the production, consumption, or trade
in wool; that the group shall have the responsi-
bilities for considering possible solutions to any
problems or diflBculties which are unlikely to be
resolved by the ordinary development of world
trade in wool; and that the group shall arrange
for any necessary collation or collection of statis-
tics, using for this purpose existing sources so far
as practicable.
It is apparent that total stocks of wool remain
very large, in spite of the acliievement of a very
high level of consumption during 1946-47. The
International Wool Conference last November
concluded that the absorption of stocks into final
consumption, alongside the new clips of 1946-47
and later seasons, must still present a formidable
problem. No material change in this respect can
be recorded.
Bearing in mind the desirability of the coordi-
nation of national wool policies the study group
has invited the participating governments to con-
sider further the question of special studies re-
garding such coordination.
The present review indicates that the 5,000 mil-
lion pounds in stock at the 13 June 1946 [sic] were
about equally divided between governmental or-
ganizations and commercial holdings, whilst a year
later the total estimated stocks of about 4,500
million pounds are expected, on the basis of pres-
ent conditions, to be held as to about 55 percent
commercially. These stock figures compare with
total estimated production in 1946-47 of 2,905
million pounds and total estimated consumption
of 3,395 million pounds.
660
U.S. DELEGATION TO PREPARATORY COMMIT-
TEE FOR INTERNATIONAL CONFERENCE ON
TRADE AND EMPLOYMENT
The Department of State announced on April
4 the list of United States Delegates to participate
in the second meeting of the Preparatory Com-
mittee for the International Conference on Trade
and Employment, which was to open in Geneva m
on April 10.
The Geneva Conference will work toward the
completion of a draft charter for an International
Trade Organization under which an international
code of conduct in world trade would be estab-
lished. At the same time it will also conduct tariff
negotiations for the removal of barriers to world
trade and the elimination of discriminatory trade
practices between nations.
Non-governmental views on the proposed char-
ter for the international organization were
gathered at several recent informal hearings held
throughout the country under the auspices of the
Executive Committee on Economic Foreign Policy.
These views will assist the American Delegation
in its work at Geneva.
Chairman of the U.S. Delegation is William
L. Clayton, Under Secretary of State for Eco-
nomic Affairs. Vice Chairman is Clair Wilcox,
Director of the OflSce of International Trade
Policy of the Department of State.
The U.S. Delegation is composed of :
Department of State
Robert S. Abbott
Julean Arnold, Jr.
Charles L. Aulette
Wilson T. M. Beale
Winthrop G. Brown
Robert M. Carr
Margaret R. T. Carter Department of Commerce
Du Wayne Clark pj^jup j^ ^^pp
Robert P. Donogh
Winifred R. Maroney
Mary C. Williford
Robert B. Wright
Department of Agriculture
George B. L. Arner
John A. Hopkins
Monteli E. Ogdon
William A. Fowler
Homer S. Fox
Merrill C. Gay
Amelia H. Hood
John M. Leddy
Kathleen Molesworth
Edwin G. Molina
Daniel J. Reagan
Joe Adams Robinson
Robert J. Schaetzel
John F. Shaw
Constant Southworth
Robert P. Terrlll
Roger W. Tubby
Clair Wilcox
Navy Department
Capt. W. B. Thorp
Tariff Commission
George S. Ayres
Louis S. Ballif
Howard Barker
Prentice N. Dean
John B. Howard
Anthony B. Kenkel
David Lynch
Loyle A. Morrison
Department of State Bulletin
U.S. DELEGATION TO INTERNATIONAL TIMBER
CONFERENCE OF FAO
[Released to the press April 3]
Acting Secretary Acheson announced on April 3
that the President has approved the composition
of the United States Delegation to the Interna-
tional Timber Conference, called by the Food and
Agriculture Organization, which is scheduled to
begin on April 28, 1947, at Marianske-Lazne (near
Praha) , Czechoslovakia. These nominations were
submitted upon the recommendations of the Sec-
retary of Agriculture, Clinton P. Anderson; the
Secretaiy of Commerce, W. Averell Harriman;
and the Acting Secretary of State, Dean Acheson.
The following comprise the United States Delega-
tion:
Chairman of the Delegation
Donald D. Kennedy, Chief, International Resources Divi-
sion, Department of State
Delegates
Theodore Geiger, Administrative OfiBcer, Mission for Eco-
nomic Affairs, American Embassy, London
Edward I. Kotok, Assistant Chief, Forest Service, Depart-
ment of Agriculture
Joseph L. Muller, Acting Chief of the Forest Products
Division, OflSce of International Trade, Department
of Commerce
The FAO, as the only United Nations agency
in the field of forestry, proposed the convening of
this meeting as the first step in developing a pro-
gram for forestry and forestry products. Con-
ACTIVITIBS AND DEVEIOPMCNTS
cerned solely with the lumber pi-oblem in Europe,
the Conference is the first of three regional meet-
ings scheduled to be held this year, the other two
to take place in South America and Asia. All
three conferences are to lay the groundwork for
a world timber conference which will be held
later. The United States and the American re-
publics have been invited to the European meeting,
since those countries are in a position to relieve
deficiencies and since the United States is a sui^-
plier of lumber machinery.
Thirty-four governments and five international
agencies have been invited to send representatives.
The Conference is expected to last about eight or
ten days.
The following Governments are invited: Aus-
tria, Belgium, Brazil, Bulgaria, Byelorussian
Soviet Socialist Republic, Canada, Chile, Czecho-
slovakia, Denmark, Egypt, Finland, France,
Greece, Hungary, Iraq, Ireland, Italy, Liberia,
Luxembourg, Mexico, Netherlands, Norway, Pal-
estine, Poland, Portugal, Rumania, Sweden, Swit-
zerland, Ukrainian Soviet Socialist Republic,
Union of Soviet Socialist Republics, United King-
dom, United States, Venezuela, and Yugoslavia.
The international agencies invited are : the Eco-
nomic and Social Council of the United Nations,
the International Bank and Fund, the Interna-
tional Labor Office, the Emergency Ek;onomic
Committee for Europe, and the Pan American
Union.
April 73, 1947
661
THE RECORD OF THE WEEK
UNESCO: A Proposal to History
BY ASSISTANT SECRETARY BENTON >
Mr. Chairman and Delegates to the National
Conference on UNESCO:
It is altogether fitting that this great National
Conference should meet at this time — and in this
city.
We are met to consider how the United States
of America can effectively assist in carrying out
the program of the United Nations Educational,
Scientific and Cultural Organization (UNESCO).
And what is UNESCO? UNESCO, as its name
states, is an organization — and an instrument for
constructive action. But UNESCO is more than
an organization and an instrument. It is a sym-
bol. It is a declaration of faith. UNESCO is a
proposal to history.
Let us educate ourselves for peace : let us share
with each other the knowledge and understanding
which will fit us to live together in a free and just
and peaceful society. That is UNESCO's pro-
posal. It is UNESCO's proposal to all men
everywhere. It is UNESCO's proposal to the men
of today and the men of tomorrow. It is a pro-
posal to history.
And it is most fitting that we declare our faith
at this time, and in this place.
Philadelphia is a city in which men have de-
clared great purposes and noble doctrines. The
founders of the American Republic here made a
proposal to history. They declared that all men
have inalienable rights to life, liberty, and the
pursuit of happiness. Their words animate the
cause of liberty today. It was here that the
founders of this Republic established "a more per-
fect union", a free government which has outlived
all the ancient tyrannies which then prevailed.
'Made before the National Conference on UNESCO in
Philadelphia on Mar. 24, 1947, and released to the press
on the same date.
662
Here then in Philadelphia, by looking back at
history, we may take courage to look forward into
history and propose boldly to all men in all coun-
tries that they learn together how they can live
together, in freedom and in peace.
You represent the constructive forces of our
country. The 500 organizations which sent you
here are devoted to the peaceful arts. Your or-
ganizations are engaged in work that creates, pre-
serves, and strengthens the fabric of social life.
Here you are proclaiming your purpose to unite
with your fellows in other lands, and, in coopera-
tion with them, to create, to preserve, and to
strengthen the fabric of an enduring international
community.
On behalf of the Government of the United
States, I affirm to your fellows in other lands that
our Government is resolved to work unceasingly
toward this end.
Up to the present time 30 states have demon-
strated their hope for the principles for which
UNESCO stands by accepting membership in
UNESCO. Membership is open to every member
of the United Nations. I regret that some mem-
bers of the United Nations have not yet joined.
I hope that they will soon take their place within
UNESCO.
Our Congress has recognized that UNESCO
can succeed only as non-governmental groups and
private individuals carry out at home, within their
own borders and in their own communities, the
programs which UNESCO undertakes. That is
why you are here. This National Conference is
held with the official authorization and support of
the Government of the United States and at the
express order of Congress.
The United States has thus taken the lead in
giving effect to article VII of the Constitution of
UNESCO : "Each Member State shall make such
arrangements as suit its particular conditions for
Department of State Bulletin
the purfKise of associating its principal bodies in-
terested in educational, scientific and cultural mat-
ters with the work of the Organisation, preferably
by the formation of a National Commission
broadly representative of the Government and
such bodies." Congress instructed the Secretary
of State to establish such a National Commission.
Its membership consists of representatives of 50
national organizations (the number shortly to be
increased to 60), and 40 outstanding individuals
designated by the Secretary of State. But Con-
gress wished to enlarge still further the base of
popular participation in the work of UNESCO.
Accordingly the National Commission was in-
structed to call from time to time a large national
conference at which all organizations interested
in UNESCO can be represented. The Depart-
ment of State is sometimes said to be a somewhat
slow-moving outfit. I may thus perhaps be for-
given for pointing with some pride to the fact that
the National Commission had been selected and
had held its first meeting within two months of
the passage of the act of Congress ; and this large
National Conference is being held before the Na-
tional Commission has held its second meeting.
Our Government is also attempting to carry
out the broad aims of UNESCO through the pro-
gram of the Office of International Information
and Cultural Affairs in the Department of State.
It is the purpose of this office to give to foreign
peoples a truthful picture of the United States,
its people, and their aspirations. Through this
office, radio programs are broadcast to many parts
of the world, in 25 languages. Documentary films
about American life are distributed abroad
through our Embassies and Legations. These are
currently being seen by more than 8,000,000 people
a month. Daily bulletins are sent to our repre-
sentatives abroad, containing texts of important
statements and official documents, and background
information. The office works closely with private
American organizations to facilitate the exchange
of students, professors, and specialists between the
United States and other nations. It maintains
small American information centers and libraries
abroad, which were visited by 3,000,000 people in
the past year. Public-affairs officers have been
stationed in our Embassies and Legations who
serve as interpreters of American life and thought.
The United States conducts only a modest pro-
gram in these fields, compared with some other
THE RECORD OF THE WCBK
countries. Even this modest program is now in
mortal danger and may be legislated out of ex-
istence by the present Congress. Many believe
this is a probability, even though in fact the pro-
gram should be greatly enlarged. There are large
areas of the world whose people have no other
source of accurate information about the United
States. Because of ignorance or misrepresenta-
tion, we are the object of suspicion and distrust.
The work of the Office of International Infor-
mation and Cultural Affairs is consistent with —
and is a major expression of — our support of the
principles of UNESCO. If you believe with me
that spending money for the building of peace
through understanding is true economy, I urge
you to make your belief known. How, except
through the development of world understanding,
can we hope to remove from the bent backs of the
peoples of the world the crushing burden of the
cost of armaments? The proposed budget for
the Office of International Information and Cul-
tural Affairs is only one fourth of one percent of
the budget for our Army and Navy ; and the cur-
rent budget for UNESCO is, I would estimate,
no more than one one-hundredth of one percent
of the world's military expenditures.
Yet these activities — in scientific, educational,
and cultural fields — to promote so intangible a
thing as understanding — ai'e vital to the security,
indeed to the continued existence, of the human
race. I solemnly declare that this National Con-
ference can give a new hope that men can liberate
themselves from war. In such a declaration I
do not think that I can be accused of being wholly
and entirely an impractical dreamer. If there is
not such hope in this conference, there is indeed
no hope at all. That idea, I believe, must be ac-
cepted even by the species known as "hard-headed
businessmen". UNESCO is a hard-headed and
practical proposal to history. But as yet it is only
a proposal. As a baby in arms, it is not yet hard-
headed.
Let me now examine first what UNESCO is
going to do; second, how UNESCO fits in with
the political realities of the present time; and,
third, what this National Conference can do about
and for UNESCO.
First, wliat will UNESCO do? I do not pro-
pose to review UNESCO's current program in any
detail. That program was worked out at the first
meeting of UNESCO's General Conference at
j April 73, 1947
663
THB RECORD OF THE WEEK
Paris last November and December. It is de-
scribed in the report by the American Delegation
to the conference. In broad outline, there are four
main lines, or fronts, on which UNESCO pro-
poses to advance.
First, and for the short range, UNESCO will
give all the help within its limited power to the
countries that have been devastated during the
war ; countries whose teachers have been massacred
and schools destroyed; countries that lack pencils
and paper for their primary schools, and libraries
and equipment for their universities. UNESCO
is not itself a relief organization but it will help
to organize assistance from those fortunate peo-
ple— such as ourselves — with resources still avail-
able.
A second front for UNESCO is the very long-
range job of helping the underdeveloped or back-
ward countries raise their level of education. How
can the world hope for unity when half or more of
its people are cut off from the reservoirs of knowl-
edge? UNESCO hopes to bring to these people
expert help and technical advice in their efforts to
raise their educational standards. It proposes to
help establish institutes for the scientific study of
the resources of tropical lands. It will send out
teams of scientists and establish centers for the
dissemination of scientific information and skills.
A third line of action is a frontal attack upon
the unwarranted suspicion and misunderstanding
that poison the relationships of nations which, in
spite of their literacy and their scientific knowl-
edge, now live under the shadow of conflict.
UNESCO proposes to bring together those persons
who directly influence ideas — the teachers, the
leaders in press and radio and films, the leaders of
popular organizations such as those you represent —
and it will seek agi-eement among them on
ways to promote a genuine international under-
standing. As a part and parcel of this great en-
terprise, UNESCO must develop and advocate
agi-eements to break down the barriers which now
obstruct the free flow of international communica-
tion. Further, UNESCO must stimulate an in-
ci-ease in the interchange of persons between coun-
tries, and persons from every walk of life.
The fourth big job proposed for UNESCO is to
promote cooperation among leaders in the arts
and sciences for the increase of men's knowledge
about themselves and their world, and for the en-
richment of their cultural heritage.
664
I now turn to my second question: How does
UNESCO fit into the political realities of the
present day ? It is quite obvious that UNESCO
is an easy mark for cynical criticism. I can ima-
gine, for example, three lines of attack which
would occur even to a moderately bright youngster.
I will put them this way: First, UNESCO is a
pigmy which is trying to make war against giants ;
second, this pigmy has lots of fanciful notions but
no well-thought-out strategy; third, our little
pigmy is only shadow-boxing, anyway, because the
real giants which must be fought are in a very dif-
ferent part of the forest.
Now there is basis for this criticism, as there
must always be basis for propaganda if it is to take
hold. UNESCO is a pigmy : its budget, for this
year, of $6,000,000 is about as much as a couple of
large libraries spend in a year; $6,000,000
wouldn't buy a light cruiser.
Further, there is a danger that UNESCO may
go off in all directions or waste much of its money
on unrelated trivialities. Finally, it is true that
UNESCO really has little to contribute to the
settlement of the most urgent, most immediate,
the most vexing problems of the immediate mo-
ment ; they are in a very different part of the forest.
But that is only part of the story. Let me look
at these points again.
UNESCO is a very small organization. It is a
fledgling organization. It was the considered
judgment of the Paris General Conference that
UNESCO could not in its first year efficiently and
economically expend more than $6,000,000. It
must get more, very much more, if it does work
that is worth doing, and if the people know that
it is doing work worth doing. Remember, too, that
UNESCO is being weaned at a time when many
countries are impoverished beyond endurance.
They are now giving to UNESCO all that is within
their power. And remember, too, that UNESCO
will multiply its resources to the extent that gov-
ernments and private organizations themselves
carry out UNESCO's programs.
But will UNESCO avoid a program of confu-
sion and triviality? The conference at Paris
sought an underlying strategy, a strategy which
would pull together UNESCO's many proposed
projects. This problem is not yet resolved, nor is
the strategy yet clear for all to see. There is a
very real danger that UNESCO may spread itself
thin and become a catch-all for pet schemes. It
Departmenf of Sfafe Bulletin
)iiay fragmentalize itself among the special and
deeply vested interests of scientists, philosophera,
historians, film producers, teachers, and so forth.
We here assembled must recognize this danger, and
guard against it. We should, all of us, cultivate
a large view of UNESCO's program, and display
both patience and tolerance about our own pet
ideas. In pressing one set of proposals on
UNESCO, it is easy to underestimate the import-
ance of others. Many scientists have a very under-
standable feeling that the importance of their work
on an international scale is not understood by out-
siders. I share their view that over a period
science must play a major role in UNESCO ; but
some philosophers may quarrel with me on that.
I myself have frequently stated, and shall continue
to state, that UNESCO must make full use of
radio, for it seems obvious to me that ordinary peo-
ple can best be reached through the media which
ordinary people use. Does such advocacy mean
that I do not understand the importance of the
public schools? And so it goes. We must develop
more understanding among ourselves if we wish to
accelerate international understanding.
The third criticism is the most serious current
charge against UNESCO: Is it tilting against
windmills while the giants are elsewhere ? Should
the peoples of the world now be concentrating their
attention on those political and economic disputes
and difficulties which are the most immediate
causes of war? Let us clearly recognize that
UNESCO offers no panacea for these diseases.
UNESCO is not a substitute for a foreign policy,
or for the Security Council of the United Na-
tions. We cannot resolve today's crisis by today's
lesson in the schoolroom.
That is true.
And yet it is a fatal error to mistake the imme-
diate necessity of foreign policy for its basic long-
range aims. We were compelled by Axis aggres-
sion to wage a war for freedom. To wage a war
was necessary, but it was not our basic aim. Our
basic aim was then, and is now, to establish a last-
ing peace based on justice and mutual understand-
ing among free peoples. We must never lose sight
of this aim. We must be prepared to spend real
money on it. We must double and redouble our
efforts to achieve it, no matter how discouraging
any circumstances may be. For this is the funda-
' mental purpose toward which foreign policy of
all governments should be directed today.
THE RECORD OF THB WEEK
People don't want to live forever in a state of
mutual hostility and sporadic destruction. Wher-
ever men get together to talk over the state of the
world, the upshot is bound to be something like
this: We are going to kill each other off unless
the human race learns to live together in some
kind of orderly world society.
To which UNESCO replies : Start learning now.
Do not continue to play ostrich.
UNESCO, I have said, is a declaration of faith.
That faith is, quite simply, that men can in fact
learn : learn not only new facts but also new atti-
tudes, new ways of looking upon their fellow men
in other lands, new habits of working together,
new rules for ordering their common affairs, and
new methods of settling their disputes. And
UNESCO is a proposal : Start learning now.
Keep at it. Go from kindergarten right through
to the Ph.D. degree, as a preparation for the life
of learning that is to follow. But start learning
now.
As I address UNESCO's proposal to you, the
delegates to this National Conference on
UNESCO, I would add two more words which
apjjly to you personally and to your organizations :
Start learning and teaching now.
I suppose that is the essence of the answer to
some of the questions which have probably been
on your minds, as they certainly have been on
mine. Wliat is going to come out of this confer-
ence? What difference will it make? What are
you going to do about and for UNESCO? It is
a long, long time before UNESCO can do any-
thing for you.
I should like to offer a few suggestions by way
of expansion of my injunction that you go forth
and teach.
First, I urge you to take this injunction literally.
Learn about UNESCO while you are here. Con-
sider its fundamental aim, inform yourselves about
its program. If you have come with a special
interest in one phase of UNESCO's program, read
the few documents we have given you and get a
total picture of the organization and its total ob-
jectives. UNESCO is desperately short of people
who can tell the American people authoritatively
what it is all about. UNESCO needs interpreters.
Then get out information to the members of your
organizations. Remember the injunction of Hosea.
"Take with you words and turn unto Him". Get
(.Continued on page 670)
April 73, 7947
665
state, War, and Navy Program for the Interchange of Persons
Germany
[Released to the press March 31]
The Department of State, War Department, and
Navy Department announced on March 31 a
policy permitting the interchange of certain cate-
gories of persons between the United States and
Germany. The policy is intended to further the
democratic reorientation of the German people
and the resumption of inter-cultural contact set
forth in the "Long-Range Policy Statement for
German Re-education", published in the United
States on August 21, 1946.^ The arrangement of
projects and the selection of individuals in ac-
cordance with this policy will be made in consider-
ation of specific needs in the fields of education and
religion, and in fields important to the forming of
public opinion, such needs to be determined by the
State and War Departments and the Office of
Military Government in Germany.
The program to be developed under this policy
is conceived as a cooperative undertaking of the
United States Government and of private institu-
tions and organizations interested in furthering
democratic reeducation and reconstruction in Ger-
many. In the planning and executing of projects
best designed to serve the general purposes of the
policy, the assistance of private institutions and
organizations active in the fields of education,
religion, and information will be enlisted. The
extent to which the United States Government will
participate financially will depend upon the avail-
ability of funds.
Under the provisions of this policy. United
States experts and specialists may visit Germany
to advise and work with leading German person-
alities in the following fields: fonnal and extra-
curricular education ; religion ; public information,
including press, radio, and film; civic, welfare,
youth, and other social organizations; occupa-
tional and professional organizations; art, letters,
music, and the stage. For the time being, because
of the shortage of facilities and teachers, and be-
cause of overcrowded conditions at German educa-
tional institutions, it will not be possible for
United States students to visit Germany for the
purpose of studying at German educational insti-
^ See BiiLiJTiN of Sept. 1, 1946, p. 428.
tutions. It is contemplated that there will be
brought to the United States a carefully selected
group of German specialists in the afore-men-
tioned fields to observe practices in this country ;
trainees for specialized training, including persons
of outstanding promise about to enter upon, or in
the early years of, their active careers in the afore-
mentioned fields ; and students to study at Amer-
ican institutions.
Only such persons will be selected for this pro-
gram as can be expected to further, through their
trips, the work of the U.S. military government
and to play a constructive part in the revival of
German cultural life and in the reorientation of
the German people toward peace and democracy.
German nationals will be expected to meet estab-
lished security requirements; they must have a
satisfactory record with regard to past and present
political activities and affiliations. Preference
will be given to persons who have demonstrated
their opposition to Nazism and their belief in
democratic principles. Such persons will be
brought to the United States in order to complete
a carefully planned program generally lasting be-
tween six and twelve months, and they must return
to Germany when the program has been completed.
The trip of each individual must be recom-
mended or sponsored by a recognized American
non-Governmental agency or institution, or by an
agency or institution of the United States Govern-
ment. The participation of democratic German
elements in the recommendation or invitation of
candidates under this program is contemplated.
The eligibility of each person and that of his spon-
sor under the provisions of this policy, the length
of his stay, and the program for his visit must be
approved by the State Department, the War De-
partment, and the U.S. military government in
Germany.
United States private institutions and organiza-
tions desiring to participate in the program may do
so either by paying the expenses of United States
experts proceeding to Germany under the terms
and for the purposes of this policy, or by paying
the expenses, providing placements for training,
and furnishing accommodations in the United
States for experts, trainees, and students from
666
Department of State Bulletin
Germany. Offers for training and accommodation
of Germans in tlie United States will be of maxi-
mum value to the program when they are made in
terms of training which can be provided for per-
sons of a specified type, rather than by designating
specific individuals whom it is desired to accom-
modate. Where individuals are specified, each
case will be considered on its merits within the
framework of the policy as a whole and in consid-
eration of the general program of cultural ex-
changes developed by the Department of State.
Tlie number of persons admitted under the
auspices of this policy and under the one concern-
ing Austria will be determined by the nature and
scope of programs developed, by the facilities and
placements offered by the participating agencies,
and by the extent of funds available for the execu-
tion of such programs.
Inquiries concerning the program and offers of
applications for participation by private organiza-
tions and individuals should be addressed to the
Civil Affairs Division of the War Department.
Austria
[Released to the press March 31 ]
The Department of State, War Department, and
Navy Department announced on March 31 a policy
permitting the interchange of certain categories of
persons between ihe United States and Austria.
The policy is intended to further the reestablish-
ment of normal cultural relations with Austria, to
assist Austria in the restoration and maintenance
of a democratic state and society, and to strengthen
the ties of mutual understanding between the two
countries. Arrangements of projects and selec-
tion of individuals in accordance with this policy
shall be in consideration of specific needs in the
fields of education and religion, and fields impor-
! tant to the forming of public opinion, such needs to
be determined by the State and War Departments,
and the United States military authorities in Aus-
tria in consultation with the Austrian Government
or with recognized Austrian organizations and in-
stitutions.
The program to be developed under this policy
is conceived as a cooperative undertaking of the
United States Government and private institu-
tions and organizations interested in furthering
democratic reconstruction in Austria. In the
planning and execution of projects best designed to
serve the general purposes of the policy, the as-
April 13, 1947
THE RECORD Of THE V<fCEK
sistance of institutions and organizations active
in the fields of education, religion, and information
will be enlisted. Within the general framework
of the program established by the Government,
projects financed wholly from private sources may
be undertaken at once. There are no Government
funds available during the current fiscal year
which may be used for the purposes of this pro-
gram. Such funds are being requested from Con-
gress as a part of the War Department appropri-
ation for the fiscal year beginning July 1, 1947.
They will be used, if available, to supplement pri-
vate funds in the financing of particular projects.
Government projects will be planned so that to-
gether with those wholly or partially financed
by private fmids they will constitute a balanced
program.
Under the provisions of this policy, United
States experts and specialists may visit Austria to
work with leading Austrian personalities in the
following fields: education; religion; informa-
tional and related fields of activity, such as press,
radio, and films; civic, welfare, youth, and other
social organizations; occupational and profes-
sional organizations; art, letters, music, and the
stage. United States professors and teachers may
visit Austria to accept temporary teaching assign-
ments at Austrian educational institutions. For
the time being, because of the shortage of facilities
and teachers, and because of overcrowded condi-
tions at Austrian educational institutions, it will
not be possible for United States students to visit
Austria for the purpose of studying at Austrian
educational institutions.
It is contemplated that there will be brought to
the United States a carefully selected group of
Austrian specialists in the afore-mentioned fields
to observe practices in this country; trainees for
specialized training, including persons of out-
standing promise who are about to enter upon or
who are in the early years of their careers in such
fields; and students to study at United States
educational institutions. Only such persons will
be selected for this program as can be expected to
play a part in the revival of Austrian cultural life
and in Austrian democratic reconstruction. Aus-
trian nationals coming to the United States must
have a satisfactory record as regards past and
present political activity and affiliation, and pre-
ference will be given to persons who have demon-
strated their opposition to Nazism and their belief
667
THE RECORD OF THE WECK
in democratic principles. Such persons will be
brought to the United States in order to complete
a cai'efully planned program generally lasting
between six and twelve months, and they must
return to Austria when the program has been
completed.
The trip of each individual must be recom-
mended or sponsored by a recognized American
non-Govermnental organization or institution, or
by an agency or institution of the United States
Government. The participation of suitable Aus-
trian representatives in the recommendation and
invitation of Austrian nationals to visit the United
States under the program is also contemplated.
The eligibility of each person and that of his
sponsor under the provisions of this policy, the
length of his stay, and the program of his visit
must be approved by the United States military
authorities in Austria, the War Department, and
the Department of State.
United States private organizations and insti-
tutions desiring to participate in the program
may do so either by paying the expenses of United
States experts proceeding to Austria under the
conditions and for the purposes of this policy,
or by paying the expenses, providing placements
for training, and furnishing accommodations in
the United States to experts, students, and trainees
from Austria. Offers for training and accommo-
dation of Austrians in the United States will be
of maximum value to the program when they are
made in terms of training which can be provided
for persons of specified type rather than by desig-
nating specific individuals whom it is desired to
accommodate. Where individuals are specified,
each case will be considered on its merits within
the framework of the policy as a whole and in
consideration of the general program of cultural
exchanges developed by the Department of State.
Inquiries concerning the program and applica-
tions for participation by private organizations
and individuals should be addressed to the Civil
Affairs Division, War Department, Washington,
D.C.
The foregoing program, which will provide for
exchanges of an important category of persons be-
tween the United States and Austria, does not,
however, indicate a relaxation of the present gen-
eral restrictions on travel to Austria which have
' BtTLLETiN Of Sept. 29, 1946, p. 563.
668
been imposed by the Allied occupation authorities
because of the current exigencies of food, housing,
and transportation. The United States desires the
removal of all obstacles to the normal private in-
terchange of all categories of persons between the
United States and Austria at the earliest possible
date, and restrictions will be removed as rapidly as
is consistent with the welfare of Austria. It is
hoped that steps in this direction may be taken
upon the conclusion of the Austrian treaty and
the end of the Allied occupation.
Alexander B. Daspit Acting Deputy
on Tripartite Commission
Alexander B. Daspit, Deputy U.S. Delegate to
IAEA, has been authorized to act also as Deputy
U.S. Member of the Tripartite Commission for the
Restitution of Monetary Gold during any possible
absence of Minister Russell H. Dorr from Brussels.
Minister Dorr is the United States Delegate to
the Inter-Allied Reparation Agency and is Com-
missioner for the United States on the Tripartite
Commission for the Restitution of Monetary
Gold.^
Registration of Shares of Rumanian
National Bank
[Released to the press April 4]
The attention of any American citizen who may
hold shares of the Rumanian National Bank is
again called to the provisions of the law published
on December 28, 1946, nationalizing that institu-
tion, which required that shareholders register
their shares in order to have compensation fixed
for their holdings. The law as published stated
that holders who failed to register their shares
within a period of 10 days would be reimbursed
in accordance with decisions in cases in which fil- _
ing was done within this period. I
The United States Mission at Bucharest was re-
cently informed by the Rumanian Foreign Office
that United States shareholders would be given
such compensation as may be applicable to share-
holders of other nationalities, provided such
United States shareholders submit their shares
either to agencies of the National Bank of Ru-
mania at Bucharest or to the Rumanian Legation
at Washington, not later than July 1, 1947. Under
article 17 of the law published on December 28,
1946, no claim for compensation may be made after
July 1, 1947.
Department of Stale Bulletin
i
Austrian Restitution Laws
[Released to the press April 4]
During the period from September 14, 1946, to
Mai-ch 28, 1947, the Government of Austria has
put into effect three laws dealing with the restitu-
tion of property which, in connection with the Na-
tional Socialist assumption of power, was taken
away from its owners after March 13, 1938, for
so-called racial, national, or other reasons, either
arbitrarily or on the basis of laws or other regu-
lations.
Tlie First Kestitution Law covers property pres-
ently subject to administration by the Federal or
state government of Austria (as trustee for the
former German authorities) . The Second Eesti-
tution Law covers property where title has passed
to the Federal government of Austria. The Third
Restitution Law covers all other cases where prop-
erty has been taken away, except :
1. Claims of employees;
2. Claims of lessees of apartments and business
premises and small-produce gardens;
3. Claims based on the confiscation or the pre-
vention of the exercise of patent rights, or other
commercial protection rights, or other intangible
property rights.;
4. Claims based on public law which fall within
the competence of the administration authorities.
It is expected that special legislation will regu-
late these claims.
Under all three laws claims may be filed for
restitution by the origmal owners of the property.
If the original owner shall have died, the spouse,
parents, children, brothers and sisters, and neph-
ews and nieces may file claim if the estate has been
probated. Failing these heirs, other heirs-at-law
may make claim if they had been a part of the
decedent's houseliold. Where the estate is in pro-
bate the executor or administrator may file claim.
Claims under the First and Second Restitution
Laws should be filed with the Finanzlnndesdirek-
tion for pro)>erty located within the particular
Finanzlandesdirektion District. Where property
is located within more than one such District, or
if the claimant is unable to determine in which
Finanzlandesdirektion his property is located, the
Austrian Federal Ministry for Safeguarding
AprW 13, J 947
Property and Economic Planning (Fundesmin-
isterium fiir VermogeTissichenmg und Wirtschafts-
planimg) has agreed to receive claims for for-
warding to the competent Finanzlandesdirektion.
However, it is desirable that as far as possible
claims be filed directly with the competent Finanz-
landesdirektion in order to avoid extra handling
and delay.
Claims under the Third Restitution Law should
be filed with the appropriate Restitution Com-
mission {Ruckstellimgsko7nission) . A Restitution
Commission will be established at each Landesge-
richt (provincial court) having jurisdiction in
civil-law matters. Its competence will extend
throughout the Federal Land in which the Lan-
desgericht is located. For Vienna, Lower Aus-
tria, and the Burgenland the Restitution Commis-
sion will be established at the Court for Civil Mat-
ters, Vienna. The jurisdiction of the Commission
at the Landesgericht Linz-Nord will cover the dis-
trict of that court.
Claims may be filed by an attorney in fact. The
power of attorney must be executed subsequent to
April 27, 1945. It should be notarized and sent
with county clerk's certificate to the Legation of
Austria, Washington, D.C., for authentication.
Unauthenticated powers of attorney will not be
recognized as valid by the authorities in Austria.
Because of the technical nature of these laws,
and because it is the responsibility of the individ-
ual claimant to determine under which law his
claim should be filed, it would appear desirable
that a competent Austrian attorney be empowered
to act as attorney in fact. There is on file with the
Department of State a complete list of attorneys
who have been approved by the Bar Associations
of Vienna, Graz, Linz, Salzburg, Klagenfurt,
Innsbruck, and Feldkirch.
Neither the Department of State nor, it is un-
derstood, the Legation of Austria in Washington
is equipped to Be of any assistance in the interpre-
tation of these laws or in the filing of the claims.
The American Legation at Vienna, likewise, is in
no position to file claims or to interpret the resti-
tution laws. However, the American Legation in
Vienna will render every possible facility and as-
sistance to the designated agents in Austria of
6«9
THE RECORD OF THE WEEK
American citizens. These representatives may
call upon the Legation to obtain documents which
have heretofore been filed by prospective claim-
ants. In addition, the Legation will send to appli-
cants copies of memoranda prepared by the Aus-
trian Ministry for Safeguarding Property and
Economic Planning concerning the method of fil-
ing restitution claims under these laws.
It should be clearly understood by persons hav-
ing claims that any previous filing of papers with
the Department of State or the American Legation
in Vienna does not constitute a proper filing for the
purposes of obtaining restitution under the Aus-
trian laws. Nor does the filing of forms TFR 500
\Fith the U.S. Treasury Department constitute fil-
ing of claim. Furthermore, persons who have
merely reported to the Austrian Government, un-
der the Austrian law of May 10, 194:5, as amended,
the fact that property has been taken away from
them, should not regard these statements as proper
claims. Claims can be filed only in the form pro-
vided for by each particular restitution law.
It should also be noted that the claims together
with all their supporting documents must be in
the German language.
Claims under the First Restitution Law should
be filed before September 14, 1947. Claims filed
under the other two laws should be filed within
one year after the date of their enactment, or
March 28, 1947.
UNESCO: A Proposal to History — Continued from page
into the newspapers and the magazines and radio
with your words. The Department of State can
only carry a small part of the burden of writing
and speaking and publishing. We don't have
either money or staff to publicize UNESCO as it
should be publicized.
I believe that if a private organization were
really convinced that UNESCO matters, if it
really took to heart the purpose of building peace
through understanding, it would consider appoint-
ing an international-relations secretary and give
him or her money to do a full-time job. Perhaps
several organizations can and will do something
like that jointly. There would be plenty for such
an official to do. He could get out information
bulletins to the membership. He could make pro-
gram suggestions to local bi'anches. He could
develop schemes of international exchanges. He
could find people to take part in the projects which
UNESCO initiates.
Then the National Commission for UNESCO
might call national gatherings of these interna-
tional-relations secretaries, and thus build up a
real network of active and informed leaders.
I know that a few of the organizations repre-
sented here have already set up such arrangements.
Let us multiply them. I offer this suggestion to
the section meeting on community participation,
for its consideration. I hope it will bring a rec-
ommendation along these lines to this conference.
«70
865
Every one of the 15 section meetings to be held
tomorrow has on its agenda the question : How can
American organizations help carry out the pro-
gram of UNESCO ? You will turn up many good
ideas. Do not let them die. Carry them back
to your organizations, discuss them, get them
adopted, and put them into effect.
May I remind you, in closing, that this Na-
tional Conference is the first such conference ever
held anywhere in the world. "V\Tiat is done here,
and — even more — what is done as a result of this
meeting, will be studied by people in many coun-
tries. Other states will be proceeding soon to set
up National Commissions. No other state has yet
thought to associate with the work of its National
Commission the whole array of its popular organ-
izations. If this conference does well, I am sure
others will follow our example. Wliat we do here
will be remembered long after what we say here
is forgotten.
Will men— will history— accept UNESCO's
proposal ? To the hopeful among you I say, hold
fast to the hope, even though our chance of success
may not be as great as the chance the Founding
Fathers took in this city more than 150 years ago.
To the less hopeful among you I say, there is a clear
duty upon us to try. What alternative do you
propose? And remember the words of William
the Silent : "It is not necessary to hope in order to
undertake, or to succeed in order to persevere".
Department of State Bulletin
Civilian Communication Between U.S.
and British and American Zones in
Germany
[Released to the press April 4]
Telephone and telegraph service has been
opened, as of April 1, 1947, between the United
States and the civilian population of the British
and American zones of occupation in Germany.
This service does not include the city of Berlin.
Messages may be of a personal or a commercial
nature, except that messages which actually carry
out business transactions are prohibited for the
time being, as are all messages relating to German
external assets. All telegrams and telephone con-
versations will be subject to censorship by the mili-
tar}' authorities.
An unlimited number of prepaid messages may
be sent from the United States to those portions
of Germany open for civilian traffic. Traffic from
German civilians to the United States which is
paid for in German currency will be restricted to
those messages specifically approved by the mili-
tary authorities as essential to the purposes of the
occupation, including certain commercial mes-
sages. It may be possible, however, for a person
sending a message from the United States to ar-
range with the telegraph company to pay for the
reply thereto. Such a reply would not require
special authorization by the military authorities,
but would be subject to the rules governing the
content thereof as mentioned above.
In other words, telegraph traffic which is paid
for in American dollars is acceptable without
THE RECORD OF IHi WBBK
limit, subject only to the censorship regulations
mentioned above ; traffic paid for in German cur-
rency, however, is acceptable only as specifically
authorized by the military authorities. This re-
striction is made necessary by reason of Germany's
critical foreign-exchange position.
Similar conditions apply to telephone service.
The above regulations do not affect the present
service with American military and civilian per-
sonnel in Germany.
Similar service has been authorized between the
civilian population of the British and American
zones and all other countries willing to accept such
service, with the exception of Spain, Japan, and
their dependencies.
It is hoped that these services may be extended
in the near future to other portions of Germany.
Removal of Currency Controls
[Released to the press by the Treasury Department on April 4]
Secretary Snyder announced on April 4 the re-
moval of Treasury Department controls on the
importation of all currency.
As a result of this action, it will no longer be
necessary for persons receiving or importing cur-
rency of any denomination from foreign countries
to submit it to a Federal Reserve Bank for exami-
nation under the import controls.
This change was in the form of an amendment
to General License No. 87.'
" 12 Federal Register 2249.
Addresses and Statements of the Week
The Secretary of State
Under Secretary Acheson
Loy Henderson, Director,
Office of Near Eastern
and African Affairs
General Frank R. McCoy,
U.S. Member of the Far
Eastern Commission
Relating to Questions before the Council
of Foreign Ministers. In this issue.
Questions and answers on aid to Greece
and Turlsey. Department of State
press release 279 of April 3. Not
printed.
Aid to Greece and Turkey. Department of
State press release 285 of April 4. Not
printed.
Transfer of Japanese industrial facilities
to devastated countries. In this issue.
Made in Moscow at meetings of the Council
of Foreign Ministers.
Made before the Senate Committee on
Foreign Relations.
Address made before the Council on For-
eign Relations in Chicago, 111., on
April 4.
Statement made at meeting of Far Eastern
Commission on April 3.
April 73, 1947
671
Treaty of Friendship, Commerce, and Navigation Witii Ciiina '
THE PRESIDENT'S LETTER OF TRANSMITTAL
The White House, March SO, 191,7.
To the Senate of the United States.
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
a treaty of friendsliip, commerce, and navigation
between the United States of America and the
Republic of China, together with a protocol there-
to, signed at Nanking on November 4, 1946. The
enclosed treaty is a comprehensive instrument
which takes into account the developments in in-
ternational relationships during the past century
and is intended to meet effectively the needs of the
present day.
I transmit also, for the information of the
Senate, a report on the treaty made to me by the
Acting Secretary of State.
Harry S. Truman
(Enclosures: (1) Report of the Acting Secretary of
State; (2) treaty of friendship, commerce, and navigation
with China, with protocol, signed at Nanking, November
4, 1946).'
I
REPORT OF THE ACTING SECRETARY OF STATE
Department of State,
Washington, March 18, 191,7.
The President,
The White House:
The undersigned, the Acting Secretary of State,
has the honor to lay before the President, with a
view to its transmission to the Senate to receive the
advice and consent of that body to ratification, if
his judgment approve thereof, a treaty of friend-
ship, commerce, and navigation between the
United States of America and the Republic of
China, together with a protocol thereto, signed at
Nanking on November 4, 1946.
Negotiation of the treaty was carried out pur-
suant to that part of article VII of the treaty be-
tween the United States of America and the Re-
public of China for the relinquishment of extra-
territorial rights in China and the regulation of
related matters, signed at Washington on January
11, 1943 (57 Stat., pt. 2, 771) , which provides that
the two Governments —
"will enter into negotiations for the conclusion of
a comprehensive modern treaty of friendsliip, com-
merce, navigation and consular rights, upon the
request of either Government or in any case within
six months after the cessation of the hostilities in
the war against the common enemies."
In accordance with the provision quoted above, the
enclosed treaty includes provisions with respect to
' S. Exec. J, 80th Cong., 1st sess.
* Treaty not printed.
672
the rights of individuals and corporations and
with respect to commerce and navigation. It is
intended that consular provisions be set forth in
a separate instrument. ■
The present instrument includes provisions
which were drafted in the light of suggestions
from representative private organizations which
have been active in the promotion of cultural and
commercial relations with China. Departments
and agencies of the Federal Government which
deal directly with the subjects covered by the
treaty were consulted and gave their assistance in
the preparations for the negotiations.
The enclosed treaty, which is basically similar
to treaties of friendship, commerce, and navigation
now in force between the United States and various
other countries, is intended to provide a compre-
hensive legal framework for relations between the
United States and China, It is believed that the
treaty offers an adequate basis for the development
of cultural, business, and trade relationships to
the mutual advantage of the two countries. Dur-
ing the negotiations the Department's endeavor
was to draw up an instrument which would be
responsive to the needs growing out of the prob-
lems and practices of present-day international
relationships, particularly to the changes in eco-
nomic and commercial practices resulting from in-
creasing use of the corporate form of business
enterprise. Thus this treaty, as compared with
earlier commercial treaties, contains somewhat
Department of State Bulletin
broadened and modernized provisions, so as to
make more specific and detailed the rights and
privileges of corporations. The wording of the
commercial provisions reflects recent experience in
the drafting of provisions to protect American
exports from the many new and complex forms
of trade restriction and exchange control which
have come into use since the early 1930's.
The articles of the treaty may be classified, ac-
cording to subject matter, into the following
categories :
(1) rights of individuals and corporations;
(2) exchange of goods ;
(3) navigation; and
(4) general matters.
These categories may be summarized as follows :
(1) Rights of individuals and corporations. —
As is customary in treaties of friendship, com-
merce, and navigation, provisions are included
with respect to entry, travel, residence, the conduct
of designated activities (including those of a com-
mercial, manufacturing, scientific, educational, re-
ligious, and philanthropic nature), freedom of
worship, protection of property against uncom-
pensated expropriation, access to courts, freedom
from unreasonable searches and seizures, compul-
sory military service, and landholding. Provisions
with respect to commercial arbitration are for the
first time included in this treaty. More extensive
safeguards are afforded against discriminatory ex-
change control, and greater protection is provided
with respect to literary, artistic, and industrial
property.
(2) Exchange of goods. — In addition to the pro-
visions relating to most- favored-nation treatment
as to import and export duties and national treat-
ment as to internal taxation of imported articles,
usually included in treaties of this type, the pro-
visions with respect to the exchange of goods in-
clude rules applicable to customs administration,
quotas and their allocation, exchange control, pub-
lic monopolies as they may affect trade between
the United States and China, and the awarding of
public contracts and concessions. With respect to
the provisions relating to the exchange of goods,
most-favored-nation treatment is generally pro-
vided. In accordance with customary practice
in the case of treaties of friendship, commerce, and
navigation, the present instrument does not con-
tain schedules of duty concessions.
April J 3, ?947
THE RECORD OF THB WEEK
(3) Navigation. — Standard articles on naviga-
tion, relating to such matters as entry of vessels into
ports, freedom from discriminatory port charges,
and most-favored-nation treatment with respect to
the coasting trade, are contained in the present
treaty, in a somewliat revised form. The rules set
forth are designed to be applied to public vessels
which may be engaged in commerce, as well as to
private vessels.
(4) General matters. — The ti'eaty provides for
certain exceptions to its application, including the
usual provisions regarding sanitary regulations
and moral and humanitarian measures. Excep-
tions also are included to give the two parties the
requisite freedom of action in times of national
emergency and to keep the instrument in general
conformity with the articles of agreement of the
International Monetary Fund. Other provisions
relate to such matters as the territories to which
the treaty is to apply, the submission to the In-
ternational Court of Justice of disputes concerning
questions of interpretation or application, and the
superseding of provisions of certain treaties now in
force between the United States and China.
Provision is made in the treaty for its entry into
force on the day of the exchange of ratifications
and for its continuance in force for a period of 5
years from that day and thereafter, subject to ter-
mination at any time following the 5 year period
on 1 year's notice by either Government to the other
Government.
It should be noted that the present instrument
will not limit or restrict the rights, privileges, and
advantages accorded by the treaty between the
United States of America and the Kepublic of
China for the relinquishment of extraterritorial
riglits in China and the regulation of related mat-
ters and accompanying exchange of notes, signed
at Washington on January 11, 1943.
The protocol, which is to have the same validity
as if its provisions were inserted in the text of the
treaty, is intended for the purpose of clarifying
and construing certain provisions of the treaty.
Approval of the treaty was given by the Legis-
lative Yuan of China on November 9, 1946.
Respectfully submitted.
Dean Acheson
(Enclosure: Treaty of friendship, commerce, and navi-
gation with China, with protocol, signed at Nanliing, No-
vember 4, 1»16.)
673
Transfer of Japanese Industrial Facilities to Devastated Countries
STATEMENT BY FRANK R. McCOY i
The United States Government lias decided to
issue an interim directive to the Supreme Com-
mander for the Allied Powers in Japan authori-
zing him to make immediately available, as ad-
vance reparations transfers, Japanese industrial
facilities to certain war-devastated countries.
This directive will provide that the four spec-
ified countries immediately receive out of the
Japanese industrial facilities which the Far East-
ern Commission has already decided to be available
for removals, certain items capable of immediate
employment for relief purposes. Those four coun-
tries have been assigned percentages which clearly
do not prejudice their own or any other country's
interest in final national percentage shares of
Japanese reparations. China will receive 15 per-
cent of such facilities ; the Philippines, 5 percent ;
the Netherlands, for the Indies, 5 percent; and the
United Kingdom, for Burma, Malaya, and its
colonial possessions in the Far East, 5 percent.
The United States will receive nothing for itself
under the advance transfers program.
The issuance of an interim directive by the
United States Government as a matter of urgency
is provided for in the Terms of Reference of the
Far Eastern Commission: "The United States
Government may issue interim directives to the
Supreme Commander pending action by the Com-
mission whenever urgent matters arise not covered
by policies already formulated by the Commis-
sion . . ."^ (with the exception of reserved sub-
jects which do not include reparations).
All directives, including interim directives,
according to the Terms of Reference, are to be
filed with the Far Eastern Commission, which is
empowered to review them.
The United States Government has concluded
that an interim directive on the advance transfers
' Made on Apr. 3, 1947 and released to the press on that
date. General McCoy is U.S. member of the Far Eastern
Commission.
2 Bttlletin of Dec. 30, 1945, p. 1028.
' To be released to the press as soon as the Supreme
Commander for the Allied Powers has given notice of its
receipt in Japan.
of reparations fulfils the requirement as to urgency
contained in the Terms of Reference. The four
states concerned are in extreme need of industrial
equipment for the immediate relief of their econo-
mies. Protracted delay in removing this equip-
ment is resulting in deterioration of assets usable
for relief purposes. Also, delay in initiating any
program of actual removals of industrial equip-
ment from Japan has impeded the Supreme Com-
mander's occupation program.
From the establishment of the Far Eastern
Commission on February 26, 1946, it has passed
a number of important policy decisions on repara-
tions matters. These include a series of decisions
determining the availability of capacity within
categories of Japanese industry for removal as
reparations, a decision providing that Japan is to
be assured of retaining designated production ca-
pacity within certain industrial levels, and a de-
cision on delivery of reparations goods to claim-
ant countries.
Notwithstanding the importance of these policy
decisions the Far Eastern Commission has not
reached an agreement as to the assignment of na-
tional percentage shares to claimant countries.
Hence, no actual removals have taken place.
On February 13, the United States Government
submitted to the Far Eastern Commission the pro-
posal embodied in the interim directive which the
United States Government has now decided to
issue. The United States Government advised the
Far Eastern Commission of its view that this was
an urgent first move in getting reparations re-
movals started.
The start of actual reparations removals from
Japan has now been delayed for over a year. All
members of the Far Eastern Commission agi-ee as
to the urgency of commencing such removals.
Consistent with the Far Eastern Commission's
Terms of Reference, the United States Govern-
ment, therefore, has decided to send to the Supreme
Commander as an interim directive the paper on
Advance Transfers of Japanese Reparations,^
with an accompanying paper, Reparatiorm Allo-
cations Procedures for Industrial Facilities in
I
674
Department of State Bulletin
Japan, which is largely a set of administrative
regulations. This interim directive, which will
deal only with these two papers, will be placed
before the Commission for review in accordance
with the Terms of Reference of the Far Eastern
Commission, and the Commission will continue to
consider this as well as all other aspects of the
reparations problem.
Recovery of Property Removed From
the Philippines by the Enemy
[Released to the press AprU 7]
American owners of property in the Philippines
which was looted by the Japanese may obtain the
assistance of the Phili^jpine Government in locat-
ing the property, if it is clearly identifiable. In-
formation concerning all property, regardless of
the nationality of the owner, which is believed to
fiave been removed from the Philippines by the
enemy will be reported by the Philippine Gov-
ernment to the Supreme Commander of Allied
Powers in Japan so that a search can be made in
Japan.
American owners should mail declarations re-
garding such property directly to the American
Embassy at Manila for transmission to the Philip-
pine Government. Declarations should describe
the property as fully as possible to facilitate its
identification, should state the circumstances un-
der which it disappeared, and should be accom-
panied by proof of ownership.
Fisheries Convention — Continued from page 644
of fish; (d) the time, methods, and intensity of
Sshing; (e) the type and specifications of the nets,
?ear, and apparatus and appliances which may be
used; (/) the methods of measurement; (g) the
axtent and nature of stocking operations; and (A)
catch returns and other statistical records.
Inevitably, appropriate measures for develop-
ment, protection, and conservation imply some
regulation and restriction to secure eventual bene-
fits. Experience shows that international cooper-
ation in these matters brings worth-while results.
Notably successful in the field of international
cooperation are two similar conventions between
the United States and Canada: the convention
regarding the halibut fishery of the North Pacific
Ocean and the Bering Sea, and the convention
April 13, 1947
THE RECORD OF THB WBBK
regarding the sockeye salmon fisheries of the
Eraser River system. These conventions estab-
lished international commissions with authority to
investigate conditions, to conduct fish-culture
operations, to improve spawning gi'ounds, to regu-
late the sizes of mesh in certain nets, and to limit
or prohibit the taking of halibut and salmon in
convention waters. Both scientists and commer-
cial fishermen have publicly recognized the opera-
tions under these two conventions as constituting
outstanding examples of the benefits to be derived
from international cooperation and sound conser-
vation measures.
In spite of the success of these earlier conven-
tions some opposition has arisen to the Great Lakes
fisheries convention because Canada, whose share
of the total catch is much smaller than the United
States share, would have equal voting power on
the Commission. Further opposition has been
based on the contention that Canadian fishermen
will secure through the convention additional fish-
ing rights in United States waters. Tlie terms of
the convention, however, do not in any way sub-
stantiate such a claim.
Two fears have been expressed: (1) that the
Commission might impose restrictions and regu-
lations which would be handicapping rather than
beneficial, and (2) that the convention would in-
terfere with the States' rights to control this
natural resource. Such fears, however, are not
well founded. Restrictions and regulations will
be imposed only on the basis of scientific findings.
Furthermore the convention says that "in United
States waters the regulations for each lake may be
enforced in the first instance by the enforcement
agencies of the states bordering thereon within
their respective jurisdictions and in Canadian
waters by the appropriate enforcement agencies in
the Province of Ontario." The convention also
specifically provides that nothing therein shall be
construed as preventing any State from making or
enforcing laws or regulations within its jurisdic-
tion which would give further protection to the
fisheries.
The great natural resources represented by the
fisheries of the Great Lakes need development, pro-
tection, and conservation. An effective program
lequires coordinated action by all the governments
having jurisdiction. The Great Lakes fisheries
convention, so long delayed, is a vitally important
step toward the desired goal.
675
Necessity for Extension of Export Control Act
MESSAGE FROM THE PRESIDENT TO THE CONGRESS
I
[Released to the press by the White House March 19]
To the Congress of the United States:
In my message to the Congress on January 31,
1947, concerning the extension of specified parts
of the Second War Powers Act, I stated that it
was desirable to delay any commmiication on the
subject of the control of this country's exports un-
til it became clear whether or not an extension of
such controls would be necessary, beyond June 30,
1947.
Further review of domestic and world supplies
has now convinced me that this Government must
continue its control over the export of products in
critically short supply here and abroad, in order
to protect the economy of the United States as well
as to discharge our international responsibilities.
The situation, although essentially temporary in
character, will certainly remain acute for some
time to come.
As a result of the war, many nations have been
stripped of essential supplies and their productive
capacity has been curtailed. Foreign demands for
these supplies are therefore extremely large.
Prices of many commodities in other countries are
far above present levels in the United States. Un-
controlled exports of food products would result
in a marked increase in the already substantial
burden of living costs borne by the American peo-
ple. Unlimited export of feeds, seeds and ferti-
lizers would make extremely difficult the
achievement of the food production goals which
we have asked American farmers to meet and
would increase the cost of production of farm
products.
This country is the great undamaged center of
industrial production to which the whole world
looks for materials of every kind. Our steel, lum-
ber, building materials, industrial chemicals and
many other basic industrial commodities are
sought throughout the world. Shortages of many
of these commodities restrict our own domestic
production of other essential products. Unre-
strained export would inevitably limit the level
of our own industrial production and employment.
«76
Furthermore, there are instances in which we wish
to direct exports to those countries which produce
commodities essential to our own economy. Thus,
limited amounts of equipment have been directed
to certain comitries to increase the production of
tin, hard fibres, sugar, and fats and oils.
Serious as would be the effect of unlimited and
completely undirected exports upon a nation still
troubled by many shortages, our domestic prob-
lems are not the only ones which lead me to urge
upon the Congress a further extension of export
controls. The United States has become a nation
with world-wide responsibilities. During a period
of world shortages, the distribution of this coun-
try's exports has serious international significance.
If we retain the ability to channel commercial ex-
ports of critically scarce materials, we can permit
export of these products to countries whose need
is greatest while still protecting the United States
from excessive export drains. Our international
responsibilities cannot be fulfilled without this
machinery. In its absence, foreign purchasing
would tend to be concentrated on those commodi-
ties in greatest world shortage. Not only would
our domestic supply and price structure be seri-
ously affected, but the commodities would go to
destinations where the need is comparatively less
pressing.
Furthermore, we have granted loans and other
monetary aid to nations whose existence must Be
preserved. These loans will accomplish their pur-
pose only if the recipient nations are able to obtain
critically needed supplies from this country. Ex-
port control is an important instrument in carrying
out the purpose of these loan programs.
The record clearly shows that this authority over
exports has been exercised in the past only with
respect to those commodities in critically short
supply and that, as rapidly as the supply situation
has improved, commodities have been removed
from control. The list of items subject to export
control has been reduced from a wartime peak of
over 3,000 to approximately 725 on October 1, 1946,
and approximately 500 at the present time. We
Deparfmenf of Sfofe Bulletin
will continue to remove export controls as rapidly
as the supply situation permits. I look forward to
the day when the United States and other coun-
tries can remove these interferences to the free flow
of commodities in world trade. But the danger of
immediate and complete decontrol in the face of
continuing domestic and world scarcities is too
great for this nation to undertake at this time.
I therefore, recommend that the authority de-
rived from the Export Control Act be extended
for a period of one year beyond its present expira-
tion-date, June 30, 1947. It is essential that this
extension be made well in advance of this date.
Delay would prove unsettling to business and
would handicap the planning and execution of our
food and other export programs. Effective ad-
ministration of the export control orders requires
THE RECORD OF THE WEEK
the assurance of continuity in operations. I urge
upon the Congress prompt action in extending this
authority.
Harry S. Truman
The White House
March 19, 191,7
Foreign Commerce Weekly
The following article of interest to readers of the
Bulletin appeared in the March 29, 1947, issue of
Foreign Commerce Weekly, a publication of the De-
partment of Commerce, copies of which may be ob-
tained from the Superintendent of Documents, Gov-
ernment Printing Office, for 15 cents each :
"Philippine Abacd Situation : Knotty Problems Curb
Progress", by Clarence A. Boonstra, Agricultural At-
tach^, formerly with the United States Embassy,
Manila, and now at Santiago.
Discussions of Legislation for Communications Merger
[Released to the press April 2]
The Telecommunications Coordinating Commit-
tee (TCC), which coordinates Government policy
in the communications field, and is made up of rep-
resentatives of Government departments and
agencies with interests in telecommunications,
namely, the Department of State, the Federal
Communications Commission, the War Depart-
ment, the Navy Department, the Treasury Depart-
ment, and the Department of Commerce, has for
some time been studying the question of the ad-
visability of recommending legislation dealing
with the subject of merger of the United States
carriers engaged in international communication
service.
In connection with its study of this question, the
TCC on March 31, 1947, met with representa-
tives of the labor organizations representing em-
ployees of the international telegraph companies,
in room 474 of the Department of State. The
meeting was held in order to obtain the views of
these organizations as to the desirability of legis-
lation which would permit the international tele-
graph companies to merge. A similar meeting
with representatives of the companies had been
held on March 11, 1947.
The labor organizations which were invited to
attend the meeting of March 31, 1947, included the
American Communications Association (C.I.O.),
which represents the employees of all United
States international telegraph companies except
April 73, 1947
those of the All America Cables and Radio, Inc.,
and the National Federation of Telephone Work-
ers (independent), representing employees of the
American Telephone and Telegraph Company
which operates telephone circuits for overseas serv-
ice. The latter organization, however, was unable
to attend the meeting. The views presented at
the meeting were as follows :
The American Communications Association op-
posed any merger of carriers in the international
telegraph field on the ground that a merger in this
field would be opposed to the interests of the public.
This organization also took the position that labor-
protection provisions, although essential in any
merger legislation, do not in fact offer sufficient
guaranties for the protection of the interests of
employees. In support of its position, the Ameri-
can Communications Association stated that the
domestic telegraph merger had resulted neither in
a reduction of rates nor improvement of service
and that the interests of employees in the domestic
telegraph industry have been adversely affected by
the merger which has taken place.
The All America Cables Employees Association
expressed its opposition to any legislation pro-
viding for international merger on the ground
that any such merger would benefit only the com-
panies involved and would result in detriment to
their employees. This organization therefore
took the position that a merger would not be in
the public interest.
677
THB RECORD OF THE WEEK
Quota Ended on Fox Furs From Canada
The President has signed a proclamation termi-
nating the absolute quota on imports of silver or
black fox furs and certain silver or black foxes
into the United States and restoring the duty on
such furs from 35 percent to the rate of 37i/2 per-
cent ad valorem fixed by the trade agreement with
Canada signed on November 17, 1938. These
changes will go into effect on May 1, 1947. This
proclamation followed an exchange of notes be-
tween the United States and Canada agreeing to
terminate the supplementary trade agreement with
Canada on such furs.
The first supplementary trade agreement be-
tween the United States and Canada on fox furs
went into effect January 1, 1940. It established
an annual absolute global quota of 100,000 units on
the importation of silver or black fox furs and
skins into the United States and reduced the duty
from 37% percent ad valoreTn, the rate fixed in
the 1938 trade agreement with Canada, to 35 per-
cent. Of the global quota Canada was allocated
58,300 units, with 41,700 units for all other coun-
tries combined. A second fox-fur agreement,
which went into effect December 20, 1940, replaced
the first fox-fur agreement.
In this later agreement Canada was, during the
fur-marketing season, allotted 70,000 out of the
global quota of 100,000 units, and all other coun-
tries combined were allotted 30,000. The second
agreement continued the 35-percent rate of duty.
It is this agreement which is now terminated.
The termination of this agreement, in con-
formity with a provision in it for its termination
at any time by agi'cement between the United
States and Canadian Governments, gives recogni-
tion to the fact that the emergency conditions in
the early part of the war in Eui'ope which led
to the negotiation of the present fox-fur agree-
ment and which closed foreign markets and sud-
denly increased quantities of furs available for
United States markets no longer exist. Since
then there has been a sharp diminution in world
silver or black fox-fur production. Recovery in
European production will require some years.
Fox-fur prices have recently been generally higher
in Europe than in the United States. For some
months the rate of impoi'ts into the United States
has been low and there is no prospect of a great
increase in the immediate future. European mar-
kets for fox furs have recovered considerably
since the end of the war. These facts have been
clearly established by a public hearing held by the
Committee for Reciprocity Information on March
7, 1946 and by other information which has been
available from domestic and foreign sources.
Termination of the agreement also recognizes
the changed situation resulting from the end of
the war, compared with December 1940, in the
ability of various European countries, particularly
Norway, to send furs to this market. It also re-
moves the possibility of discrimination against
such countries as a result of the allocation pro-
visions in the agreement.
The interdepartmental trade-agreements organi-
zation will, in conformity with its customary
procedure, follow closely the situation affecting
imports of silver fox furs into the United States.
"Nazi Conspiracy and Aggression",
Volume II
The American prosecution staff released on
March 22 complete and authoritative analyses of
the Nazi Gestapo and SS in publishing the seventh
in its series of eight volumes of the documentary
evidence presented at the Niirnberg war-crimes
trial.
The eight-volume set, which contains English
translations of evidence collected by both the
American and British prosecutions, and which has
been approved for release by Justice Robert H.
Jackson, is published by the Government Printing
Office under the title of Nazi Conspiracy and
Aggression. Most of the documents published
were captured from the secret files of the German
Government, the Nazi Party, the Wehrmacht, and
the personal files of the Nazi leaders.
Six volumes of these documents (volumes I, III,
IV, V, VI, and VII) have already been completed.
Because publication of certain volumes has been
delayed in order to permit the inclusion of last-
minute material, the volumes are being issued out
of their proper order in the series, and delivery
of each volume is being made as it comes off the
press.
The latest volume, volume II in the series, is
designed to seive with volume I as a guide to the
mass of documents included in the remaining six
volumes. It consists of studies, in non-technical
language, summarizing and analyzing the docu-
ments according to the particular subjects on
which they bear.
678
Department of Slate Bulletin
QUARTERLY CUMULATIVE TABLE OF CONTENTS
January 5-March 30, 1947
Addresses, Statements, and Broadcasts of the Week
Lists, 31, 116, 506, 599.
International Organizations and Conferences
Calendar of Meetings, 25, 57, 117, 156, 197, 245, 279, 329,
388, 431, 478, 531, 573.
Meetings of Organizations. See Economic Affairs;
Educational, Scientific, etc. ; United Nations.
The Congress
Documents, Reports, etc., listed, 139, 219, 366, 455, 506, 600.
The Department
Appointments and Confirmations, 219, 258, 259, 366, 367,
455, 579.
Byrnes, James F., Resignation as Secretary of State, 86.
Departmental Regulations, 78, 258, 398, 507, 556, 600.
Lane, Chester T., Resignation as Lend-l-«ase Administra-
tor, 579.
Marshall, George C. :
Biographic Sketch, 305.
Confirmation as Secretary of State, 83.
Oath of OflBce, 177.
Statements at I'ress Conference of Feb. 7. 286.
Peurifoy, John E., Appointment as Deputy Assistant
Secretary of State for Administration, 215.
Reorganization of Research and Intelligence Units, 366.
Economic Affairs
Abolishment of Board of War Communications : Executive
Order 9831, 448.
Aid to Great Britain in Fuel Emergency, 340, 397.
Aid to Mexico in Fighting Foot-and-Mouth Disease:
Statement by the President, 454.
Argentine Decree Eliminates Enemy Control of Firms, 214.
Caribbean Commission, 158.
Arrangements for World Telecommunications Confer-
ences, 2S2.
Discussion on Merger of U. S. Carriers Engaged in In-
ternational Communication Service, 550.
Economic Report of the President, 125, 126.
Fifth Assembly of Inter-American Commission of Women,
59.
Food:
Grain Shipments for Relief to Italy, 212.
International Cooperation in Sugar, 43.
International Emergency Food Council :
Approves Hungarian Grain Requirements, 585.
Recent Actions of the Council, 334.
International Wheat Conference:
Preparation of Draft Memorandum of Agreement, 471.
U. S. Delegation, 532.
April 73, 7947
Food — Continued
International Wheat Council, Gl, 250.
Supplies From American Red Cross to Rumania, 396,
448.
World Distribution of Grain Exports, 263.
Geography and History Assembly in Caracas, 62.
Government and Business Groups Discuss U.S. Foreign
Trade, 439.
International Oil Picture, 554.
International Trade Organization :
American Trade Program : What Do We Have at Stake?
288.
Congressional Hearings on Draft Charter, 587.
Hearings on Proposed ITO Charter, 68, 257, 280, 389.
Radio Broadcast on ITO, 74.
Summary of Provisions of Proposed Charter, 69.
Support Urged for ITO, 586.
Joint American-Philippine Financial Commission, Mem-
bers of, 130, 218.
Lend-Lease :
Defense of "Pipeline" Contracts for Sale of Lend-Lease
Supplies, 343, 344.
Increased Surplus-Property Credit Granted to Hungary,
341.
President's Letter Transmitting Twenty-Third Report
of Lend-Lease Operations, 32.
Report to Congress on Foreign Surplus Disposal, 255.
Resignation of Chester T. Lane as Lend-Lease Adminis-
trator, 579.
Sales and Transfer of Non-Demilitarized Combat Mate-
rial, 322.
Statements by Under Secretary Clayton on Certain
Aspects of Lend-Lease Arrangements with U.K. and
U.S.S.R., 347.
License Restrictions Lifted on Trading With Germany
and Japan, 496.
Meeting of Medical and Statistical Commissions of Inter-
American Committee on Social Security, 337.
Meeting of Permanent Conmiittee of International Office
of Public Health, 332.
Meeting on Marine Radio Aids to Navigation, 330.
Minerals as a Factor in U.S. Foreign Economic Policy,
300.
Peace, Freedom and World Trade: Address by the Presi-
dent, 481.
Postal Regulations for Printed Matter to U.S. and British
Zones in Germany, 448.
Property :
Deposit of Shares in Yugoslav Stock Companies for
Conversion and/or Registration, 75, 133.
Direct Negotiations for Owners of Property in Germany
and Japan, 200.
679
CUMULATIVB TABLB OF CONTENTS
Economic Affairs — Continued
Property — Continued
Eligibility and Compensation Proceedings on Enterprises
Nationalized in Czechoslovakia, 397.
Establishment of Philippine Alien Property Adminis-
tration, 130.
Filing of Protests Against Nationalization of Polish
Firms, 252.
Philippine Corporations and Shareholders Required to
Present Records, 451.
Recovery of Property Removed from France by the
Enemy, 253.
Registration of Shares of Rumanian National Bank,
133.
Regulations Governing Restitution of Property in Po-
land. 494.
War Damage Compensation for American Nationals in
France, 166.
Railvpay-Mounted Power Train Leased to Mexico, 218.
Relaxation of Restrictions Against Business and Commer-
cial Communication With Germany and Japan, 74.
Report of Air Coordinating Committee : Letter of Trans-
mittal From the President to Congress, 452.
Saudi Arabia Approves Railroad Project by U. S. Firm,
506.
Sixth Plenary Session of Intergovernmental Committee
on Refugees, 200.
Sixth Session of the Council of ECITO, 60.
State Trading and Totalitarian Economies, 371.
UNRRA :
Article on Sixth Session of Council, 159.
President's Letter to Congress Transmitting Ninth
Quarterly Report, 215.
President's Letter to Congress Recommending Appropri-
ation, 395.
Purpose and Method of Post-UNRRA Relief, 440.
U.S. and Economic Collaboration Among the Countries of
Europe, 3.
U.S.-Canadian Discussions on Water Resources, 216.
U.S. Delegation to Fifth International Hydrographic
Conference, 575.
U.S. Delegation to Pan American Sanitary Conferences:
Twelfth Pan American Sanitary Conference, 119.
Second Pan American Sanitary Education Conference,
119.
U.S. Delegation to South Pacific Regional Air Navigation
Meeting of PICAO, 157.
U.S. Observer to Conference of International Union for
Protection of Industrial Property, 250.
General Policy
American Position on Relief to Yugoslavia, 585.
Cessation of Hostilities of World War II :
Proclamation :
Effect on Aliens Seeking Entrance to U.S., 217.
Text of Proclamation, 77.
Statement by the President, 77.
Clarification of U.S. Position on Antarctic Claims, 30.
Control of Documents Removed from German Diplomatic
Establishments in U.S., 211.
Cooperation of the Department and the FBI in Gerhart
Eisler Case, 365.
Cooperation with Congress on Bipartisan Foreign Policy,
283.
Department of State Submits 27 Items for Senate Con-
sideration, 284.
Discussions Between U.S. and Mexico on Illegal Entry of
Mexican Workers Into U.S., 303.
Enumeration of Arms, Ammunition, and Implements of
War : Presidential Proclamation, 327.
Greece and Turkey :
American Economic Mission to Greece, 136.
Congressional Hearings on Aid to Greece and Turkey,
580.
Greek Government Seeks U.S. Financial Aid, 493. 494.
Messages From Greek Prime Minister and Leader of
Parliamentary Opposition :
Statement by President Truman, 537.
Statement by U.S. Representative to United Nations,
538.
Text of Messages, 537.
Radio Broadcast on American Aid to Greece, 543.
Recommendations on Greece and Turkey : Message of
the President to Congress, 534.
Views on Recent Broadening of Greek Government:
Statement by the Secretary of State, 341.
Gnod Neighbor Policy — An Application of Democracy to
International Affairs : Address by the President, 498.
Letters of Credence : Chile, 258 ; Colombia, 452 ; Denmark,
499 ; Dominican Republic, 452 ; India, 450 ; Poland, 298.
Poland:
Presentation of Letters of Credence by Polish Am-
bassador, 298.
United States Position on Polish Elections, 134, 164,
251, 298.
Polish Refugee Camp in Mexico Closes, 138.
President's Special Representative at Inauguration of
President of Uruguay, 403.
Remains of Late Pedro Leao Velloso To Be Transported
to Brazil, 214.
Restrictions Lifted on Pleasure Travel to Europe, 342.
Extension of Second War Powers Act, 362.
Request for Extradition of Former Soviet Trade Repre-
sentative Denied, 212.
Situation In China, 83.
Smallpox Vaccination Certificate Required of Persons on
U.S. Vessels Entering Philippine Ports, 177.
Some Recent Developments in the Problem of the Turkish
Straits, 1945-1946, 143.
Special U.S. Diplomatic Mission to Nepal, 598.
State of the Union: Message of the President to the
Congress, 123.
Statements by Secretary of State Marshall at Press Con-
ference of Feb. 7, 286.
Transport Vessels Made Available to Italian Government,
136.
U. S. S. R. Protests Acheson Statement Before Senate
Atomic Energy Commission, 392.
U.S.-Canadian Permanent Joint Board on Defense To
Continue Collaboration for Security Purposes, 361.
680
Deparfment of State Bulletin
CUMULATIVE TABLE OF CONTENTS
General Policy — Continued
U.S. Interests in Self-Government for India, 450.
D.S. Reiterates Non-Political Concern in Palestine Situa-
tion, 449.
U.S. Relations With Liberia, 548.
U.S. Welcomes Self-Governmeut for Burma, 258.
Visitors to U.S. :
Crown Prince of Saudi Arabia, 167.
Ecuadoran Foreign Minister, 76.
Governor General of Canada, 257.
Greek Prime Minister, 29.
Hungarian Minister, 5S5.
Italian Prime Minister, 76, 165.
President-Elect of Uruguay, 303.
"We Must Demonstrate Our Capacity in Peace": Address
by Secretary of State Byrnes, 87.
World Order and Security — Youth's Responsibilities :
Address by Secretary of State Marshall, 390.
Educational, Scientific, and Cultural Cooperation
A. Adrian Albert Appointed Visiting Professor at Univer-
sity of Brazil, 132.
Afghanistan Seeks American Teachers, 505.
American Students To Study in Svyeden, 253.
Arrangements Being Prepared for Exchange of Students
With Other Nations, 364.
Conferences :
Pan American Congress on Tuberculosis, U.S. Delega-
gation to, 575.
Second Inter-American Congress of Radiology, 199.
Second Pan-American Conference on Leprosy, 331.
Twelfth Pan-American Sanitary Conference and Sec-
ond Pan-American Conference on Health and Edu-
cation, 26.
U.S. Extends Invitations for IMC Meetings, 479.
Cultural Exchanges Between the United States and the
Soviet Union, 393.
Panamanian Director of Immigration Visits U.S., 257.
Policy on Exchange of Cultural Materials Between U.S.
and Austria, 540.
Professor of Hispanic-American History To Visit Colom-
bia, 302.
Responsibility for Administration of Libraries in Mexico,
Nicaragua, and Uruguay, 76.
Stanley Tylman To Lecture in Bolivia on Dentistry, 215.
Tour of New Zealand Botany and Zoology Students, 217.
^, Council of Foreign Ministers
Third Session, New York City, Nov. 4-Dec. 12, 1946:
Peace Treaties With Italy, Rumania, Bulgaria, Hun-
gary, and Finland :
Completion of Texts, 183.
Release of Advance Copies, 167.
Preliminary Plans for Peace Settlements With Germany
and Austria, 186.
F(jurth Session, Moscow, Mar. 10-:
Press and Radio Coverage :
Advance Plans, 199.
Correspondents Oppose Visa Limitation, 350.
Fourth Session, Moscow, Mar. 10 — Continued
Statements by the Secretary of State:
Departure for Moscow, 497.
German Denazification, 522.
Liquidation of War Plants in American 25one, 523.
Germans in U.S. Custody, 524.
Reconstruction of Germany on Democratic Basis, 524.
Territorial Reorganization In.side Germany, 525.
Displaced Persons in Germany, 526.
News From Council Meeting To Be Broadcast, 526.
Problems Relating to Reparations From Germany:
Status of War Plants in U.S. Zone, 563.
U.S. Position on Potsdam Agreement Regarding
Germany, 564.
Progress Toward Economic Unification of Germany:
Fundamental Considerations by U.S., 564.
Directive to Allied Control Authority, 567.
Scope and Form of Provisional Political Organiza-
tion, 569.
Proposal by U.S. Delegation, 569.
Questions Relating to Austria :
German Assets in Austria, 571.
Invitation to Austria, 571.
U.S. Delegation to Moscow Meeting, 432.
TIte Foreign Service
Appointments and Confirmations, 219, 455, 499, 579.
Christian M. Ravndal Appointed Deputy Director General
of Foreign Service, 455.
Consular Ofl3ees, 219.
Foreign Service Institute, 549, 579.
Resumption of Foreign Service Examinations, 403.
U.S. and Denmark Raise Missions to Embassies, 299.
U.S. and Siam Raise Missions to Embassies, 599.
International Information
Addresses by Assistant Secretary Benton :
American Position on International News and Inter-
national Libel, 591.
Freedom of Information : The Role of the State De-
partment, 352.
International Understanding: An Undeveloped Human
Resource, 500.
National Defense and National Reputation, 202.
Daily Russian-Language Broadcasts to U.S.S.R., 252, 395.
Radio Broadcast on "Keeping the Record Straight on
America Overseas," 216.
Occupation Matters
Art Objects, Return to Countries of Origin, 358.
Assistant Secretary Hilldring:
Election as Chairman of Bi-Zonal Supplies Committee,
29.
Request for Public Support for Success of Occupation
Policies, 130.
Europe :
Accord on Treatment of German-Owned Patents, 434.
Allied Commision for Italy, Abolition of, 287.
Appointment of Members and Alternate Member of a
Military Tribunal Establi.shed for the Trial and
Punishment of Major War Criminals in Germany,
133, 447.
April 13, 1947
681
CUMULATIVB TABLB OF CONTENTS
Occupation Matters— Continued
Europe — Continued
Beginnings of Self -Government in American Zone of
Germany, 223.
Correction of Information on Prisoners of War to the
Netherlands, 539.
Decartelization Law for U.S. Zone in Germany, 443.
U.S.-Prench Accord on Release of German Prisoners of
War, 539.
U.S. in the Allied Administration of Austria, 407.
U.S. Opposes Intervention in Hungary by Soviet High
Command, 495.
U.S. Policy on German Youth Activities, 294.
U.S. Reiterates Position on Soviet Activities in Hun-
gary, 583.
Far East :
Activities in Korea and Japan Under Military Govern-
ment, 507.
Activities of Dissident Korean Groups, 210.
American Attitudes on Allied Occupation of Japan, 596.
Controls for Japan to Relieve World Shortages, 574.
Edwin W. Pauley Resigns as President's Personal Rep-
resentative on Reparations Matters and as U.S.
Reijresentative on Allied Commission on Repara-
tions, 505.
Japanese Reparations Goods, 433.
Japanese Re.seai'ch and Activity in the Field of Atomic
Energy, 434.
Korea — House Divided : By Assistant Secretary Hill-
dring, 544.
Military Government Activities in Korea, 209.
Non-Mllltary Activities in Japan, 129.
Proposals for Reopening U.S.-Soviet Joint Commission,
168, 173.
Radio Broadcast on Japan, 403.
U.S. Policy Toward a Unified -Government in Southern
Korea, 128.
U.S. Position on Control of Dairen, 127.
U.S. Withdraws From Committee of Three, 258.
Publications
Department of State, Lists, 79, 601.
Foreign Agriculture, 78.
Foreign Commerce Weekly, 138, 219, 255, 360, 595.
International Control of Atomic Energy : Growth of a
Policy, 216.
Minutes of the Council of Four of the Paris Peace Confer-
ence of 1919, 33.
Minutes of the Council of Heads of Delegations, 178.
Participation of U.S. in International Agencies and in
International Conferences, 307.
Project on Publication of German War Documents, 211.
Publication of Official Text of Ntlrnberg Verdict, 447.
Seal of the United States, 139.
Treaty of Versailles and After : Annotations of the Text
of the Treaty, 504.
Treaty Information
Adherence of Austria to Postal Convention, 304.
Agreement Between U.S. and Philippines on Military
Bases, 554.
682
Agreements Between UN, FAO, and UNESCO, 250.
Aviation :
Air-Transport Agreements: Canada, 256; China, 30;
Ecuador, 214 ; Paraguay, 504 ; Peru, 31 ; Slam, 450.
Chicago Aviation Agreements, 506.
Convention on International Civil Aviation, 530.
U.S. Granted Fifth Freedom Air Rights at Ceylon, 449.
Convention With France on Double Taxation, 174.
Extension of Food-Supply Agreement With Haiti, 75.
Inter-American Coffee Agreement, 213, 378.
Niirnberg Judgment : A Summary, 9.
Peace Treaties With Italy, Bulgaria, Rumania, and Him-
gary, 199, 486, 541.
Peru Ratifies Convention on Nature Protection and Wild-
life Preservation in the Western Hemisphere, 302.
Proposed Treaty of Commerce With India, 208.
Protocol on Inter-American Registration of Trade Marks,
257.
Protocol Prolonging International Agreement Regarding
Regulation of Production and Marketing of Sugar,
552.
Report to Congress on Canol-1 Project Disposition, 256.
Signing of Articles of Agreement of Fund and Bank by
Turkey, 553.
Signing of Articles of Agreement of International Bank,
24, 198.
Tax-Treaty Negotiations with Denmark, 138, 360.
Three Rubber Purchasing Agreements Expire, 75.
Trade :
Administration of the Reciprocal Trade-Agreements
Program :
Executive Order 9832, 436.
Statement by the President, 438.
Statement by Under Secretary Clayton, 438.
Public Hearings on Trade-Agreement Negotiations:
Possible Tariff Concessions for Additional Products,
399.
Supplementary Statistical List, 399.
Supplementary Statutory List, 401.
Committee for Reciprocity Information, 402.
Trade Agreement With Canada : Withdrawal of Fire-
Hose Concession, 137, 4.53.
Trade Agreement With Paraguay, 543.
Trade Agreement With the Philippines, 129.
Trade Agreements Negotiations : Exchange of Letters
Between Sen. Butler and Under Secretary Clayton,
161.
Treaty of Conciliation With the Philippines, 254.
U.S.-French Discussions on Bilateral Patent Agreement,
441).
U.S.-Polish Agreement on Compensation Claims, 28.
The United Nations
Accomplishments of the Commission on Narcotic Drugs,
91.
Appointment of Byron Price as Assistant Secretary-
General of UN, 384.
Appointments and Confirmations of U.S. Representatives,
155, 475.
Atomic Energy :
First Report of Atomic Energy Commission to the Se-
curity Council, 105, 107.
Department of State Bulletin
The United Nations — Continued
Atomic Energy — Continued
Resignation of Bernard M. Baruch as U.S. Representa-
tive on Atomic Energy Commission, 47, 50.
Resolution for Drafting Atomic Energy Agreements, 572.
Bodies Established by General Assembly During Second
Part of First Session, 116.
Couunission on Human Rights :
First Session of Commission, 154.
U.S. Proposal for Subcommission on Protection of Mi-
norities and Prevention of Discrimination, 278.
U.S. Proposals Regarding an International Bill of
Rights, 277.
FAO Preparatory Commission : Report on World Food
Proposals, 247.
First Meeting of Commission of Investigation Scheduled,
113.
Freedom of Information and the Press :
U.S. Draft Resolution Regarding Conference on, 244.
U.S. Proposal Regarding Sub-Commission on, 243.
General Assembly Resolution on Information on Armed
Forces of the United Nations : Letter From the Sec-
retary-General to the President of the Security Coun-
cil, 50.
Goal of Collective Security : Address by Warren Austin,
474.
Health :
One Year of Progress in World Health Cooperation, 384.
Protocol Concerning International Office of Public
Health, 381.
Third Session of Interim Commission of WHO, 572.
International Children's Emergency Fund, 466.
International Fund and Bank :
Colombia Signs Articles of Agreement of International
Bank, 24, 198.
Confirmation of U.S. Executive Director of International
Bank, 533.
John J. McCloy Elected President of International Bank,
450.
Report on U.S. Participation in World Bank : Presi-
dent's Letter of Transmittal, and Excerpts From
Report, 152.
U.S. Completes Payment to International Monetary
Fund, 420.
Venezuela and Turkey Sign Articles of Agreement of
Bank and Fund, 24, 533.
International Labor Organization :
Agreement Between United Nations and ILO Signed, 24.
Meeting of Governing Body, 27.
Meeting of Petroleum Committee, 27.
Permanent Migration Committee of International Labor
Office, 120.
Report on Petroleum Industry Committee Meeting, 576.
U.S. Delegation to Committee on Petroleum Production
and Refining, 282.
U.S. Delegation to 101st Session of Governing Body,
387.
CUMULAllVB TABLE OF CONTENTS
International Refugee Organization :
Congressional Hearings on IRO Constitution, 424, 425.
U.S. Participation : President's Recommendatiou to Con-
gress, 423.
Meeting of Special Technical Committee on Relief Needs,
23.
Preliminary Proposals for an International Trade Organi-
zation :
Commercial Policy, 234.
Employment and Economic Activity, 187.
Industrial Development, 190.
Intergovernmental Commodity Arrangements, 266.
Organizational Questions at London Meeting, 271.
Restrictive Business Practices, 239.
Proposal by the U.S. Government for a United Nations
Scientific Conference on Resource Conservation and
Utilization, 476, 477.
Itegulation and Reduction of Ai-maments : Action of the
General As.semlily, 311.
Replies From 29 Nations on Action Taken in Accordance
With Resolution on Spain, 115.
Resignation of John G. Winant as U.S. Representative on
ECOSOC, 52.
Security Council :
Resolutions :
General Regulation and Reduction of Armaments, and
Armed Forces :
U.S. Draft Resolution, 275.
Adoption of Resolution by Council, 321.
Investigation of Greek Border Incident, 23.
Voting Procedure in Security Council, 115.
Summary Statements by the Secretary-General of Mat-
ters of Which the Security Council Is Seized, 114,
196, 385, 527.
Trusteeship:
Confirmation of Francis Sayre as U.S. Representative to
Trusteeship Council, 430.
Inauguration of the Trusteeship System of the U.N.,
511.
Participation in Conference To Consider Establishment
of Regional Advisory Commission for Non-Self-
Governing Territories in South Pacific, 51.
Report on the South Seas Conference, 459.
Submission of U.S. Draft Trusteeship Agreement for
Japanese Mandated Islands, 416.
U.S. Submits Draft Trusteeship Agreement to Security
Council, 383.
UNESCO :
Appointment of Walter Laves as Deputy Director-Gen-
eral, 155.
National Conference on UNESCO, 429.
Reports on First General Conference, Paris, 20, 53, 374.
U.S. Delegation to U.N. Preparatory Committee on Trade
and Employment, 528.
U.S. Participation in the United Nations: President's
Letter Transmitting Report to Congress, 193.
U.S. Representatives on Commission of Investigation of
Greek Border Incident, 113.
April 73, 1947
683
The Council of Foreign Ministers Fag«
Moscow Meeting of the Council of Foreign
Ministers. Statements by the Secretary of
State:
Economic Principles Regarding Germany:
Necessity for Economic Unity 649
Proposal Regarding Provisional Government
for Germany 651
Level of Industry and Reparations From
Current Production 652
German Assets in Austria 653
Economic AKairs
Wool Study Group Adopts Terms of Reference
and Presents Conclusions 659
U.S. Delegation to Preparatory Committee for
International Conference on Trade and
Employment 660
U.S. Delegation to International Timber Con-
ference of FAO 661
Alexander B. Daspit Acting Deputy on Tri-
partite Commission 668
Registration of Shares of Rumanian National
Bank 668
Austrian Restitution Laws 669
Removal of Currency Controls 671
Recovery of Property Removed From the
Philippines by the Enemy 675
Discussions of Legislation for Communications
Merger 677
Necessity for Extension of Export Control Act.
Message From the President to the
Congress 676
The United Nations
The General Conference of UNESCO, Paris:
The Program in Action. Article by
Herbert J. Abraham 645
Accomplishments of Fourth Session of the Eco-
nomic and Social Council. Statement by
Acting U.S. Representative in ECOSOC . 655
The United' Nations — Continued psge
Summary Statement by the Secretary-Gen-
eral. Security Council Matters 657
UNESCO: A Proposal to History. By Assist-
ant Secretary Benton 662
Occupation Matters
State, War, and Navy Program for the Inter-
change of Persons:
Germany 666
Austria 667
Civilian Communication Between U.S. and
British and American Zones in Germany . 671
Transfer of Japanese Industrial Facilities to
Devastated Countries. Statement by Frank
R. McCoy 674
Treaty Information
The Great Lakes Fisheries Convention. Article
by Durand Smith 643
Treaty of Friendship, Commerce, and Naviga-
tion With China:
The President's Letter of Transmittal ... 672
Report of the Acting Secretary of State ' . . 672
Quota Ended on Fox Furs From Canada . . . 678
Educational, Scientific, and Cultural
Cooperation
State, War, and Navy Program for the Inter-
change of Persons:
Germany 666
Austria 667
Calendar of International Meetings . . . 658
Addresses and Statements of the Week . . 671
Publications
Foreign Commerce Weekly 677
"Nazi Conspiracy and Aggression", Volume II . 678
Quarterly Cumulative Table of Contents:
January 5-March 30, 1947 679
wyyd^mwtm^
Durand Smith, author of the article on the Great Lakes fisheries
convention, is a Commodity Specialist in the International Resources
Division, Office of International Trade Policy, Department of State.
Herbert J. Abraham, author of the article on the program of
UNESCO in action, is Research and Analysis Officer, UNESCO Rela-
tions Staff, Office of International Information and Cultural Affairs,
Department of State.
a. 9. COVEnmiEHT PRIHTIKC office: 1947
^Jrie/ ^eha7^t^^en{/ ,(w t/tate/
MOSCOW MEETING OF THE COUNCIL OF FOREIGN
MINISTERS • Statements by the Secretary of State:
Questions Relating to Germany ......... 693
The Problem of Boundaries 696
THE JOINT CAMPAIGN AGAINST FOOT-AND-MOUTH
DISEASE IN MEXICO • Article by John A. Hopkins. . 710
PICAO SOUTH PACIFIC REGIONAL AIR NAVIGATION
MEETING • Article by Carl Swyter 713
RESOLUTIONS ADOPTED BY ECOSOC RELATING TO
NARCOTIC DRUGS • Article by George A. Morlock i . 687
For complete contents see back cover
Vol. XVI, No. 407
April 20, 1947
^V.t*T o*.
MAY 12 1947
* ^<wy^* bulletin
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April 20, 1947
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The Department of State BULLETIN,
a weekly publication compiled and
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partment of State and the Foreign
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press releases on foreign policy issued
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ment, and statements and addresses
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RESOLUTIONS ADOPTED BY THE ECONOMIC AND SOCIAL COUNCIL
RELATING TO NARCOTIC DRUGS
hy George A. Morlock
The Economic and Social Council at its fourth session took
note of the First Report of the Commission on Narcotic
Drugs and approved recommendations to insure the efftcient
discharge of the functions and duties of the United Nations
in the field of narcotic drugs.
The Economic and Social Council had on its
agenda for the Fourth Session the topic "Report of
the Narcotics Commission and the Assembly Reso-
lution on Narcotics".
On invitation of the Chairman, Col. C. H. L.
Sharman, Chairman of the Commission on Nar-
cotic Drugs, made some observations ' on the report
of the Commission to the Economic and Social
Council on the work of its First Session held at
Lake Success, N. Y., from November 27 to Decem-
ber 13, 1946.=
Remarks by Colonel Sharman
I have a few remarks to make to the members of
the Council.
As members of the Council will recall, the Com-
mission on Narcotic Drugs owes its existence to the
resolution of the Council of February 16, 1946.
The first session of the Commission on Narcotic
Drugs was held at Lake Success from November
27 to December 13, 1946.
Tlie report of the Commission to the Economic
and Social Council has been circulated to members.
In addition to discussing questions relating to
organization and procedure, the Commission has
reviewed the general situation throughout the
world in the field of narcotics and considered the
measures required in order to maintain and
strengthen the system of international control,
April 20, 1947
particularly in countries where interruptions have
been caused by the war. Special attention was
given to the urgent question of the limitation of the
production of raw materials. Various other prob-
lems were also examined, including opium smoking
in the Far East, the illicit traffic, drug addiction,
and the situation in Germany, Japan, and Korea.
The Commission adopted a number of resolu-
tions and recommendations to the Council, which
are contained in the report. It will be observed
that the action required to implement fully these
resolutions and recommendations will add sub-
stantially to the work of the Secretariat and will
involve certain additional expenditure. The
Council will be trusted to take the necessary steps
to insure that adequate provision is made for these
purposes.
During the session of the Commission, repre-
sentatives of 38 nations, and shortly afterwards
an additional 11 members, signed the protocol
amending previous international agreements on
narcotic drugs and transferring to the United
Nations the powers and functions formerly exer-
cised by the League of Nations in relation to the
control of narcotics.
Members of the Council will recall that many
' U. N. doc. E/P.V./52, Feb. 28, 1947.
' U. N. doe. E/251, Jan. 27, 1947.
687
nations who are not yet members of the United
Nations were signatories of the previous interna-
tional agreements relating to narcotic drugs. The
effectiveness of the international control of nar-
cotic drugs depends, to a great extent, on its uni-
versality, and it is urgent that nations outside the
United Nations who were parties to the previous
agreements, should sign the new protocol; other-
wise there will be serious gaps in the international
administration. For this reason the Commission
has requested the Economic and Social Council to
consider the measures necessary to insure the par-
ticipation at an early date in the protocol of all
parties to the previous international agreements,
conventions, and protocols on narcotic drugs who
are not members of the United Nations.
The reestablishment at its pre-war level of the
international control of narcotic drugs was one
of the most important problems discussed by the
Commission during its first session. The Com-
mission recommended that, in order to hasten the
reestablishment of international control in the
countries directly affected by the war, and to im-
prove it wherever necessary, all possible technical
assistance should be given. The Commission con-
sidered that it was necessary to begin the prepa-
ration of a digest of laws giving a survey of the
legislation in countries which were parties to the
conventions, in order to ascertain whether their
legislation on narcotic drugs is in accordance with
the conventions.
It also emphasized the importance of the re-
vision of the list of narcotic drugs which are sub-
ject to control. The development of new drugs,
synthetic and otherwise, since 1940 makes it essen-
tial to revise the list in order that these di'ugs
may be brought under control. The Commission
was of the opinion that the preliminary work of
revision could best be midertaken by a consultant
pharmacologist.
The Commission devoted particular attention to
the problem of the limitation of the production
of raw materials. This work was begun in 1932
by the Opium Advisory Committee of the League
of Nations, but was interrupted by the war. In
1944 the United States Government assumed the
initiative in carrying on the work of preparation
of a conference on this subject. The Commission
on Narcotic Drugs decided to issue, subject to the
approval of the Council, a questionnaire on raw
opium calling for further information and to in-
688
struct the Secretariat to draw up a questionnaire
on the coca leaf for consideration by the Commis-
sion at its next session.
The Commission also reviewed the new situation
created by the abolition of most of the previously
existing opium monopolies in the Far East. As
soon as the Far Eastern territories of France,
the United Kingdom, Netherlands, and Portugal
were liberated from the Japanese occupation, the
Governments of these countries made opium smok-
ing illegal in them.
The Commission has asked the Economic and
Social Council to invite all countries which still
legalize the use of opium for smoking to take im-
mediate steps to prohibit the manufacture, in-
ternal traffic in, and the use of such opium.
During the session the Commission examined the
different aspects of the question of drug addic-
tion. It dealt with the question of addiction due
to drugs derived from opium and coca leaf and
addiction due to Indian hemp, new synthetic
drugs, and the barbiturates. It decided to issue
a questionnaire on drug addiction. As regards
new drugs, the Commission recommended that
the Council should remind governments which
were parties to the convention of 19 February
1925 that they have undertaken to send to the
Permanent Central Opium Board statistics of
drugs whether synthetic or not which are brought
under this convention in virtue of article 10.
This article, as amended by the protocol, provides
that governments which accejit the recommenda-
tions of the World Health Organization concern-
ing dangerous new drugs which should be brought
within the scope of the convention shall apply the
remaining provisions of the act in their respect.
The Commission also recommended that the Coun-
cil should request governments to send estimates in
respect of these drugs to the Permanent Central
Opium Board and the Supervisory Body.
Particular attention was paid to the problem of
Germany and the Commission took note of the
following passage from the report of the Perma-
nent Central Opiima Board in 1945 :
". . . The Board can only emphasize that
some system under which the control of narcotics
in Germany is centralized, or, at least, the control
over them in the different zones is co-ordinated,
should be established at the earliest possible mo-
ment with a threefold object: First, it is necessary
that the statistical information on imports and ex-
Department of State Bulletin
ports, manufacture, stocks and seizures should be
collected by some Central Authority, and trans-
mitted to the Board and to the Allied Govern-
ments, who are responsible for the enforcement of
drug control in Germany. Secondly, it is desir-
able that such a Central Authority should re-
establish proper regulations through import and
expoi't licenses over imports to and exports from
the whole German territory occupied by the mili-
tary authorities. Thirdly, there are a number of
internal measures of control which should be uni-
form in all four zones."
The Commission has requested the Council to
urge the occupying powers to take the necessary
measures at the earliest possible moment for the
establishment of an effective control of narcotics
for all Germany.
The Council will be interested to learn that a
special study of the problem of narcotics in Jajjan
and Korea was made by the Commission. The
Chinese Delegate submitted a proposal for the total
prohibition of the manufacture of narcotic drugs
in Japan and for the instalment of a United Na-
tions stockpile of narcotic di-ugs in the Far East
which would be the sole source of supply for the
medical and scientific needs of Japan.
A subcommittee was appointed to study the
problem and presented two alternative proposals
for the consideration of the Commission. The
Commission decided to submit both alternatives to
the Council. Alternative A of the two proposals
contains a recommendation that an international
stock23ile should be established from which the
medical and scientific needs of Japan would be
supplied. Alternative B provides that all imports
of narcotic drugs into Japan should require the
prior sanction of an inspectorate appointed by the
United Nations.
With regard to Korea, the Commission decided
to recommend that similar measures of control to
those adopted in respect of Japan should apply
to Korea.
In order to insure that the terms of such con-
trol are incorporated in the peace treaties which
are presently to be concluded with Japan, the
Commission recommended that the Economic and
Social Council should :
(a) send its recommendations in regard to Ja-
pan to the Far Eastern Commission, with copies
to all governments represented on the Commission
April 20, J 947
and to the Allied Military Authorities now in con-
trol of Japan ; and
(b) send its reconamendations in respect of
Korea to all governments and authorities con-
cerned.
I should like to refer, if I may be allowed to do
so, to the harmonious manner in which the Com-
mission carried out its task at the first session,
a task which although essentially technical and
non-political nonetheless required a cooperative
spirit among its members in order to achieve con-
structive results. The Commission's work was
greatly facilitated by the decisions taken by the
Council and the Assembly to preserve the conti-
nuity of the international control of narcotics.
I am sure that members of the Council will also
permit me to express my thanks on behalf of the
Commission to the Secretary-General for the
measures which he put into force to insure the
efficient functioning of the international control
during the difficult period of transition while
United Nations were assuming the duties formerly
carried out by the League in this field.
Action on Report
A number of members of the Council com-
mended the report of the Commission on Narcotic
Drugs, the first report to come before the Council
from one of its commissions, for its high quality.
The Chairman described it as exhaustive and clear
and stated that it contains just what is expected
of the Economic and Social Council.
At the suggestion of the Soviet Kepresentative
and several other representatives, the Chairman
proposed that the report be referred for study to
a committee designated as the Committee of the
Council on Social Affairs to be composed of the
United States, the United Kingdom, France,
China, the Union of Soviet Socialist Republics,
India, Peru, New Zealand, Byelorussia, Venezuela,
and Lebanon. The proposal was approved.
This Committee held three meetings at Lake
Success, N. Y., on Tuesday, March 4, and Wednes-
day, March 12, 1947. It considered the resolutions
recommended to the Council in the report of the
first session of the Commission on Narcotic Drugs
in the light of the debate held in plenary session
of the Council on February 28, 1947.
The Committee on Social Affairs recommended
for adoption, and the Economic and Social Coim-
689
cil adopted on March 28, 1947, with minor changes,
the following resolutions :'
[A.] Transfer of the Functions of the League
of Nations
The Economic and Social Council
Takes note of the first report of the Commis-
sion on Narcotic Drugs and decides as follows:
Having noted that forty-nine Members of the
United Nations have now signed the Protocol
transferring to the United Nations the functions
previously exercised by the League of Nations
under international conventions, agreements and
other instruments relating to narcotic drugs, and
Having noted that a certain number of parties
to such conventions, agreements and other instru-
ments are not Members of the United Nations
RequesU the Secretary-General to invite all
those parties to the conventions, agreements and
other instruments above-mentioned which are not
Members of the United Nations, with the exception
of Spain so long as the Franco Government re-
mains in power in that country, to become parties
to the said Protocol at an early date.
[B.] Re-establishment and Improvement of the
International Control of Drugs
(^■) Re-establishment of control
The Economic and Social Council
Having noted the urgency of re-establishing
the control of narcotics in the countries directly
affected by the war and of improving it wherever
necessary
Approves the decisions of the Commission on
Narcotic Drugs
1. To ask these countries to resume at the earli-
est date possible full collaboration with the inter-
national organs of control.
2. To offer them on request such technical assist-
ance as they may require with a view to the re-
establishing of national controls at pre-war levels
{ii) Improvement of control
The Economic and Social Counch.
Having recognized the importance of facilitat-
ing the task of the Council and the Commission
in supervising the application of the conventions
and agreement on Narcotic Drugs,
Approves the decision of the Commission to initi-
ite the preparation of a digest of laws giving an
' U.N. doc. B/3J)9, Apr. 3, 1947.
690
analytical survey of national legislation in all
countries parties to these conventions with a view
to ascertaining whether their legislation on nar-
cotic drugs is in accordance with the Conventions,
and
Having noted the opinion of the Commission
that the revision of the list of narcotic drugs fall-
mg within the scope of the various Conventions
should not be delayed,
1. Requests the Secretary-General to undertake
these tasks as expeditiously as possible.
2. Invites Governments to give the Secretary-
General all possible assistance in the execution of
tliis work.
[C] Limitation of Production of Raw Materials
The Economic and Social Council
Having noted the importance of bringing a
speedy solution to the urgent problem of the limi-
tation of production of raw materials from which
narcotic drugs are manufactured, and
Having noted the preparatory work initiated by
the Commission with a view to holding an inter-
national conference to deal with this problem
1. Approves the issue of the questionnaire on
raw opium prepared by the Commission on Nar-
cotic Drugs (document E/251/Add.2), and re-
quests the Secretary-General to transmit this ques-
tionnaire to the governments concerned asking
them to communicate, on or before 15 August 1947
the information called for therein and any obser-
vations bearing on the subject which they may wish
to submit, and
2. Approves the decision of the Commission to
draw up a questionnaire on the coca leaf to be
considered by the Commission at its next session
and subsequently to be transmitted to Govern-
ments.
[D.] Abolition of Opium Smoking
The Economic and Social Council
HA^^NG considered the stipulation embodied in
Article 6 of the International Drug Convention of
23 January 1912 concerning the suppression of the
manufacture of, internal traffic in and use of pre-
pared opium, and
Having noted the Governments of some coun-
tries have adopted a policy of complete prohibition
of opium smoking and have taken measures to give
effect to this policy
Requests the Secretary-General to invite, on
Deparfmenf of Sfafe Bullefin
ii
behalf of the Council, all countries where the use
of opium for smoking is still legal, to take imme-
diate steps to prohibit the manufacture of, internal
traffic in and the use of opium for this purpose.
[E.] Drug Addiction
The Economic and Social Council
Having noted that under the Convention of
19 February 1925 Governments have undertaken
to send to the Permanent Central Opium Board
statistics of drugs, whether synthetic or not, which
are brought under control in virtue of Article 10
of this Convention,
Requests the Secretary-General to remind the
Governments concerned of the obligation above-
mentioned, and to ask them to send, for the in-
formation of the Permanent Central Opium
Board and the Supervisory Body, estimates of
requirements of these drugs, together with the
estimates to be furnished under Articles 2 to 5
inclusive of the Convention of 1931.
[F.] Control of Narcotic Drugs in Germany
The Economic and Social Council
Requests the Secretary-General, on behalf of
the Council, to inform the Governments of France,
the Union of Soviet Socialist Republics, United
Kingdom, and the United States of the special
importance which the Council attaches to the
establishment of an effective control of narcotic
drugs in Germany, and to invite them, on behalf
of the Council, to recommend to the Allied Con-
trol Authority to take the necessary measures at
the earliest possible moment for the establishment
of an effective control of narcotic drugs through-
out Germany.
[G.] Control of Narcotics in Japan
The Economic and Social Council
Having considered the problem of the control
of narcotic drugs in Japan, and the recommenda-
tions of the Commission on Narcotic Drugs on
this subject,
Approves the decision of the Commission to ap-
proach the competent authorities at Pacific Head-
quarters through the proper channels, with the
request to supply to the Secretary-General, and
through him to the Parties to the Narcotics Con-
ventions, reports and other information to be fur-
nished in accordance with the conventions of 1912,
1925, 1931 and 1936, and
Having noted that the most stringent measures
for the control of narcotic drugs should be incor-
porated in the peace treaties to be concluded with
Japan,
Recommends to the Governments responsible for
negotiating these treaties that provision should be
made in them for the most stringent control in the
period after the conclusion of the treaties of all
transactions concerning narcotic drugs in Japan,
and that to ensure effective operation this control
should be under the supervision of such control
authorities as may be established by the peace
treaties and of the United Nations, whose expert
bodies will be available to give such information
and advice as may be requested.
[H.] Appointments to the Permanent
Central Opium Board
The Economic and Social Council
1. Resolves to follow with regard to appoint-
ments to the Permanent Central Opium Board for
the present the procedure contained in the memo-
randum Annex III to the Report of the Commis-
sion * and
2. Instructs the Secretary-General to invite the
Governments mentioned therein to make nomina-
tions in accordance with the provisions of this
memorandum, these nominations to reach the
Secretary-General on or before 1 August 1947
3. Invites the Secretary-General to initiate
studies with a view to amending or deleting the
provision in Article 19 of the Convention of 1925
that requires that members of the Permanent Cen-
tral Opium Board shall not hold any office which
puts them in a position of direct dependence on
their governments
4. Having noted the inmiediate vacancy to be
filled on the Permanent Central Opiiun Board and
the nomination submitted in accordance with the
decision of the Commission *
Resolves to appoint/ Professor J. Bougault
(France)
[I.] Budgetary Provision
The Economic and Social Council
Having considered the numerous functions and
duties which have to be performed, arising out of
* U.N. doc. E/251, Jan. 27, 1947.
• U.N. doc. E/251, p. 11.
April 20, 1947
691
the international agreements, conventions and
protocols on narcotic drugs, and out of the deci-
sions of the General Assembly, and of the Eco-
nomic and Social Council
Having noted further that the international
control of narcotic drugs has been partially inter-
ruiDted by the war, and that its full re-establish-
ment is a matter of urgency, and
Having noted that the preparatory" work for the
limitation of the production of the raw materials
used in the preparation of narcotic drugs must be
resumed as soon as possible,
Recommends to the General Assembly that it
should ensure that provision is made to supply
the Commission on Narcotic Drugs and the Sec-
retary-General with all the means required to en-
sure the efficient discharge of the functions and
duties of the United Nations in the field of nar-
cotic drugs.
Comment
A comparison of the resolutions adopted by the
Economic and Social Council with the recommen-
dations and suggestions* presented by the Com-
mission on Narcotic Drugs discloses general ap-
proval by the Council of the work of the Commis-
sion. The financial implications of the various
recommendations were considered and taken into
account in resolutions designated above as B, C,
and I, relating to expenditures in connection with
the reestablishment and improvement of the in-
ternational control of narcotic drugs. The adop-
tion of these resolutions insures to the Secretary-
General (assuming that the approval of the Gen-
eral Assembly will be obtained) the means required
to enable the United Nations to carry out their
obligations under the international drug con-
ventions.
The action called for in resolution A will un-
doubtedly result in universal acceptance by the
parties to the international drug conventions,
agreements, and other instruments, with the ex-
ception of Spain so long as the Franco govern-
ment remains in power in that country, of the
transfer to the United Nations of the functions
'Bulletin of Jan. 19, 1947, p. 91; see also U.N. doc.
B/251.
' U.N. doc. E/P. V./52, Feb. 28, 1947.
' U.N. doc. E/AC.7/3, Mar. 8, 1947.
692
exercised by the League of Nations relating to
narcotic drugs.
The words on request in point 2, paragraph (%) ,
of resolution B were inserted on the suggestion of
Mr. Borisov (U.S.S.R.).
Resolution D on the abolition of opium smok-
ing, E on drug addiction, and F on control of
narcotic drugs in Germany carry out fully the
recommendations of the Commission on Narcotic
Drugs.
Resolution G on the control of narcotics in
Japan provoked considerable discussion. It will
be recalled that the Commission on Narcotic Drugs
presented two alternative proposals for the con-
sideration of the Council : alternative A, embody-
ing a recommendation that an international stock-
pile should be established, from which Japan
might draw its narcotics for medical and scientific
purposes, and alternative B, stipulating that all
imports of narcotic drugs into Japan should re-
ceive the visa of an inspectorate appointed by the
United Nations. In the discussion of these pro-
posals at the second meeting of the Fourth Session
of the Economic and Social Council on February
28, 1947,' the representatives of the United King-
dom, France, Canada, the Netherlands, and the
United States expressed themselves as favoring
alternative B as being more practical, economical,
and ethcient than alternative A.
Dr. Szeming Sze (China) proposed in the first
meeting of the Committee on Social Affairs of the
Economic and Social Council,* March 4, 1947, that
the paragi'aph in his original proposal relating to
Korea be omitted because the narcotics situation in
Korea is not on the same footing as in Japan. In
order not to delay a decision, he said he was pre-
pared to adopt alternative B, reserving the right to
raise the question of an international stockpile at
a moi-e suitable time. Mr. Borisov said that both
alternative A and alternative B implied that the
Economic and Social Council would have to under-
take executive functions and that this was outside
of the scope of the United Nations. He thought
that the action taken by member governments
under existing conventions was sufficient for the
application of the necessary control and that it was '
preferable to await conclusion of ti'eaties with
Japan before making the recommendations con-
tained in alternatives A and B. Mr. Kaminsky
(Byelorussian Soviet Socialist Republic) sug-
(Continued on page 706)
Department of State Bulletin
i
THE COUNCIL OF FOREIGN MINISTERS
Moscow Meeting of the Council of Foreign Ministers:
Questions Relating to Germany
STATEMENTS BY THE SECRETARY OF STATE
Polish-German Frontier *
The time has now come for the Council of
Foreign Ministers to examine the problem of the
final determination of the Polish-German bound-
ary. The Potsdam protocol provided that "the
final delimitation of the western frontier of
Poland should await the peace settlement."
Pending that final settlement about 40,000 square
miles of eastern German territory were, at Pots-
dam, placed under the administration of the
Polish state.
"We are agreed that Poland should receive sub-
stantial accessions of territory in the north and
west in compensation for territory acquired by
the Soviet Union east of the Curzon Line.
In the peace settlement, therefore, a substantial
revision of the pre-war German frontier in
Poland's favor is required. Our problem is how
and where to draw the final line so as to avoid
unnecessary and unjustified economic upset and to
minimize inescapable irredentist pressure in
Germany.
The area in question is very important to the
livelihood not merely of those who live there
but of many others who live in neighboring areas.
We are dealing with a problem which touches
closely on the political stability and the economic
health of much of Europe. Recognition of this
should dominate our thinking. We should see to
it that the new frontiers wherever they are drawn
do not create a continuing political problem and
are not barriers to the accustomed and healthful
flow of trade and commerce and human inter-
coui'se.
It is not inevitable that new frontiers should
block trade and intercourse. Some frontiers be-
come almost impenetrable barriers. But we can,
if we so agree, establish here a territorial settle-
ment on terms which would protect Europe
against such evil eflFects. The peace settlement
might, for example, provide that certain economic
resources of the ceded territory on which other
countries are dependent should be administered
with due regard to their needs.
I suggest that before we decide on where the
April 20, 1947
739228 — 47 2
new frontier shall be we consider first what kind
of a frontier it is to be. The Polish Government
should, of course, be consulted jiromptly, for it is
deeply concerned. The final action should be in
the interest of Europe as a whole. Let us start to
apply the conception that European matters which
are of general concern should be dealt with in the
general interest. We at this council table have
the duty to try to rebuild a Europe better than
that it replaces. Only as we inspire hope of that
can we expect men to endure what must be en-
dured and make the great efforts which must be
made if wars are to be avoided and civilization
is to survive in Europe.
The new frontiers of Poland must be adequate to
give Poland resources at least as great as she had
before the war and capable of maintaining her
people at a good standard of life. To give Poland
satisfactory new frontiers means that some terri-
tory which has long been German and intimately
interrelated with the German economy must be
affected. We must not deprive Poland of the com-
pensation we promised her. But in deciding what
compensation she is entitled to we must consider
what territory Poland needs and can effectively
settle. We must avoid making a settlement which
would only create difficulties for Poland and for
Europe in futui-e years.
There are specific economic factors affecting Ger-
many which require consideration. German pre-
war imports of foodstuffs provided about one fifth
of the total food consumed in Germany. Before
the war the German area now under provisional
Polish control also contributed over a fifth of Ger-
many's total food supply. If Germany nmst, in
the future, import two fifths or more of her food
supply from abroad, the German economy will
have to be industrialized to an even greater extent
than before the war or Germany will become a
congested slum in the center of Europe. The five
to six million Germans who have been evacuated
from areas in the east will, for the most part,
have to depend on industrial employment for their
' Made on Apr. 9, 1947, and released to the press in
Moscow on the same date, and in Washington on Apr. 10.
*93
THE COUNCIL OF fOSEJGN A1/N(Sr£RS
livelihood. I agree with Mr. Bidault that there
is danger in requiring an eventual German popu-
lation of over 66,000,000 to live within the confines
of a smaller Germany.
There are also political factors to be considered.
The cession to Poland of areas long German will
of necessity create some irredentist feeling. Our
problem is to provide Poland with compensation
which is her due. At the same time we must avoid a
territorial settlement which might discredit the
democratic forces of Germany and give militant
nationalist groups the chance to gain a hold on
another generation of German youth. We should
not provide an enduring and popular issue for the
enemies of democracy and freedom in Germany.
We should not destroy the hope that in future years
Polish-German relations may become genuinely
peaceful and cooperative.
We must find a settlement which will not, in the
future, confront the United Nations with inter-
national friction likely to impair the general wel-
fare or friendly relations among nations or to
endanger the maintenance of peace and security.
A solution of the problems involved in the char-
acter and location of the Polish-German frontier
must be sought. Wliile it wiU require precise and
informed investigation, the main limits to this in-
vestigation can be stated now. It will be accepted,
I think, that southern East Prussia should become
Polish territory, German Upper Silesia and its
industrial complex should also become Polish ; but
there should be provisions to assure that its coal
and other resources will be available to help sus-
tain the economy of Europe. The division of the
remaining territory, which is largely agricul-
tural land, requires consideration of the needs of
the Polish and German peoples and of Europe as
a whole. Accordingly, I propose that the follow-
ing be agreed here at Moscow :
"The Council of Foreign Ministers establishes
a special boundary commission to function under
the direction of the deputies. It will be composed
of representatives of the U.S.S.R., U.K., U.S.A.,
France, Poland, and a convenient number of other
Allied states to be designated by the Council of
Foreign Ministers. The Council of Foreign Min-
isters will invite Poland and each of the designated
countries to appoint a member.
' Made on Apr. 10, 1947, and released to the press in
Moscow on the same date, and in Washington on Apr. 11.
694
"The function of the commission shall be to con-
sider and recommend to the Council of Foreign
Ministers :
"(a) A revision of pre-war Polish-German
boundaries which will fairly compensate Poland
for the cession of the territory east of the Curzon
Line to the Soviet Union ;
"(b) The economic arrangements appropriate to
assure that such raw materials and heavy indus-
trial resources of the area in question as are vital
to European economy shall fairly serve that need,
including particularly the need of Poland.
"In making its recommendation the commission
shall inquire into and report upon Polish resettle-
ment and German settlement in the areas in ques-
tion and the best means to assure the effective utili-
zation of such areas for the economic well-being
of the Polish and German peoples and of Europe
as a whole."
The Ruhr >
The United States Delegation believes the con-
centration of basic economic resources in the Ruhr
area raises two distinct problems. One is the
question of security against the militant use of
Ruhr resources by a revived Germany. The other
is the question of how to assure that the concen-
tration of coal, steel, and other resources in the
Ruhr area will be equitably employed in the in-
terests of the countries of Europe including Ger-
many.
We are convinced that no attempt should be
made finally to solve either of these two problems
until the Council has examined the other aspects
of security, including the United States proposal
for a four-power disarmament treaty. We are
ready, however, to consider the economic aspects
of the problem on the understanding that no over-
all commitment can be reached until the Council
has discussed the security question.
While the Ruhr area contains a greater con-
centration of basic industrial resources than is
to be found elsewhere in Europe, it is not the only
concentration. An area of less — but still substan-
tial— importance is Upper Silesia. Since no part
of this area is now under German control, it is
unnecessary to consider it from the point of view
of security. The economic questions raised by the
Ruhr concentration, however, are equally relevant
to the Silesian concentration and, indeed, to
others.
Department of State Bulletin
These questions may be put as follows : (1) How,
during periods of acute shortages, are basic com-
modities, sucli as coal and steel, to be equitably
shared? (2) How are countries within whose
boundaries concentrations of basic resources are
to be found to be prevented from imposing re-
strictions which limit the access of other countries
to these resources ? Both of these questions apply
not only to the Ruhr but to other areas. However,
in discussing them now I shall limit myself to the
problem of the use of Ruhr resources.
The United States Delegation has already stated
its position that, during the period of military
occupation, no special regime for the Ruhr is
necessary. When Allied military government in
Germany is terminated and a German government
is functioning under a constitution, however, some
special provision for the overseeing of Ruhr re-
sources may be advisable. The United States Del-
egation is of the opinion that whatever provision
is made should not interfere with German respon-
sibility for the management and operation of Ger-
many's resources. In the first instance Germany
must have responsibility not only for the produc-
tion but the marketing of the products of her own
industries. It is only if the Germans take action
contrary to the just interests of other countries that
the attention of an international agency may have
to be called to the question.
The United States Delegation believes that the
ultimate solution to such conflicts as may arise on
questions of this sort must be resolved on a Euro-
pean-wide basis and that for this purpose the Eco-
nomic Commission for Europe will prove useful.
We do not consider it necessary here and now to
discuss questions of procedure. It is much more
important to agree among ourselves on two prin-
ciples which the United States Delegation thinks
should govern the allocation of essential commodi-
ties, not only from the Ruhr but from other areas.
These principles are (1) equitable distribution of
essential commodities in short supply; and (2)
access to essential commodities on a non-discrimi-
natory basis.
With respect to the Ruhr the United States
Delegation considers that the principle of equi-
table distribution means that, in the allocation be-
tween domestic consumption and export of coal
and other essential commodities in short supply,
the legitimate interests of European countries'
must be met while leaving to Germany the pos-
April 20, 1947
THE COUNCIL OF FORBIGN MINISTERS
sibility of achieving, without outside assistance, a
tolerable standard of living.
The United States Delegation means by the
principle of equal access that there shall be no dis-
crimination either by Grermany or against Ger-
many in the use of basic resources of the Ruhr.
Narrowly this requires that Germany shall not
impose export taxes, quotas, or embargoes which
result in discrimination. More broadly, it in-
volves insurance against the possibility that Ger-
many, through her possession of coal and steel,
will again attempt to dominate European indus-
try and limit the development of heavy industry
outside of Germany through the absolute control
of metallurgical coal.
The basic economic problem is created by the
fact that the coal mines and the steel industry
of the Ruhr are located in Germany and needed
by much of Europe. That Europe requires coal
and steel, however, should not blind us to the fact
that they are in Germany, and that they are also
needed by the German economy. No solution will
work which denies equal access to these resources
to the Germans. It would be impossible to expect a
country to develop along peaceful democratic
lines with a group of deeply interested foreign
countries in indefinite control of its prime resources
and of local consumption.
What is required, in the view of the United
States Delegatif^n, is a mechanism which permits
the various interests to be resolved when they come
in conflict, rather than to have one dominated by
the other. What is required, in other words, is a
European solution in a Europe which includes
Germany.
The Saar Territory >
The economic resources of the Saar and Lor-
raine are complementary. The coal mines and
iron and steel facilities of the Saar are adjacent
to the great iron-ore deposit and the steel facilities
of Lorraine. When pre-war production levels are
regained, the coal production of the Saar will be
relatively unimportant to the internal German
economy but will be of the greatest importance
to France.
At Stuttgart, last September, Secretary Byrnes
stated that the United States does not feel that
it can deny to France, which has been invaded
'Made on Apr. 10, 1947, and released to the press In
Moscow on the same date, and in Washington on Apr. 11.
695
THE COUNCIL OF FOREIGN MINIiTERS
three times by Germany in 70 yeai'S, its claim
to the Saar territory, whose economy has long been
closely linked with France.
For these reasons the United States supports
the claims of France to have the Saar territory
detached politically from Germany and to have
it integrated with the economic and financial sys-
tem of France by a customs and financial union,
and possibly by means of other economic arrange-
ments.
We understand that France does not ask the
political incorporation of the Saar into France.
While France should be entrusted with the right
to defend Saar territory from attack, the political
autonomy of the Saar and the right of its people
to manage their local affairs should be carefully
safeguarded.
In referring to the Saar territory, the United
States Delegation has in mind the area covered
by the Saar plebiscite. While minor rectifications
of the Saar boundaries may be considei'ed, clear
justification for such rectification should be re-
quired.
The incorporation of the Saar resources into the
economy of France will make necessary some
modification of the level of industry allowed to
Germany and some readjustment of reparation
removals and the retention in the Saar territory of
The Problem of Boundaries
STATEMENT BY THE
Returning to the problem of boundaries, I may
seem to my colleagues to be unduly emphatic re-
garding this question. My emphasis comes from
a deep sense of responsibility to my country re-
garding the settlement of this particular issue.
Twice in recent years the United States has
been compelled to send its military forces across
the Atlantic to participate in a war which started
in Europe. In men by the million and dollars by
the billion we did our best to contribute to the
victories for the preservation of a free Europe.
Our task is to make a peace settlement which as
a whole the people of Europe will want to main-
tain and not to break. We want a peace settlement
which in future years will become, as it were, self-
enforcing. We want a peace settlement which
will encourage the people of Europe to work to-
' Made on Apr. 10, 1947, and released to the press in
Moscow on the same date, and in Washington on Apr. 11.
' Not printed.
696
some plants which were to be removed for repara-
tions. French claims for reparations will have to
be subject to adjustment in light of the changed
situation.
The French Government is anxious to incor-
porate the Saar in its economic and financial
system as soon as possible. The United States
Delegation sees no reason for delay and certain
advantages to be gained by making this decision
now in so far as it is within our competence.
We suggest therefore that we agree now to the
detachment of the Saar with its pre-war bounda-
ries from the jurisdiction of the Allied Control
Council and its administration solely by France,
subject to the approjiriate adjustment of the
French reparation claims. I suggest that we ap-
point a committee of experts to prepare a proposal
on such reparation adjustments as may be required.
The definitive detachment of the Saar from Ger-
many and the definitive determination of its boun-
daries will have to be decided by the German peace
settlement, which will also have to decide many
details relating to the ownership of property, debt,
and other matters. I suggest that we direct our
deputies, upon conclusion of the present session of
the Council of Foreign Ministers, to study all these
matters and to make appropriate recommendations
for inclusion in the peace settlement.
SECRETARY OF STATE '
gether peacefully. We want a settlement that
will live and that history will apfirove. We want
above all to avoid a solution which will create a
highly explosive situation through congestion and
lack of food and other resources essential to mod-
ern civilization. We have to look beyond today
and tomorrow, to look 25 and 50 years ahead of
us, beyond the lifetime of most of us.
The Allied nations have now the power to im-
pose new boundaries but, I sincerely hope, not
boundaries whose only claim to jjermanency is
force. Such cannot be a good foundation for
peace.
Regarding the boundary proposal made to our
Government and to our deputies during their meet-
ings in London by the Belgian, Holland, Czecho-
slovak, and Luxembourg Governments, I am in
general accord with what has been stated by Mr.
Bevin,^ and I don't think it necessary at this time
to add anything further to that statement.
Department of State Bulletin
ij
THE UNITED NATIONS
The Regulation of Armaments and Lasting Peace
BY JOSEPH E. JOHNSON >
The problem of understanding the relationship
between arms control and world stability is one of
the most challenging tasks before the American
people and the Government. The problem is be-
fore us today in an acute form. The United Na-
tions Commission for Conventional Armaments
this week began its session at Lake Success, and the
Atomic Energy Commission is resuming its labors.
If we undeistand the true relationship between
armaments and peace and security, if national
policy conforms to that understanding, we may be
able to lay the gi'oundwork for a stable and peace-
ful world. If we fail to insist upon adequate meas-
ures for effective international control, if we fail
to make certain that a proper balance is maintained
between the annaments of the major powers and
between international authority and national
forces, we may endanger our own security and the
peace of the world. If we succumb again to the
delusion that armaments in themselves are a cause
of wars, we shall invite disaster.
Twenty-seven years ago this country, a victor in
World War I, began a search for peace through
disarmament. I think we must recognize today,
after the second World War in our lifetime, that
something very fundamental was wrong with our
method and our policy. Our error lay, we now see,
in thinking that by controlling inanimate weap-
ons we could prevent evil men from committing
aggression and making war. It lay also in trying
to achieve disarmament apart from adequate meas-
ures of armaments inspection and control and apart
from basic political agreement and control.
It is important, therefore, that we take a look
first at our mistakes of the past in order to get at
least a general idea of the direction in which we
ought to try to go today.
The Covenant of the League of Nations placed
the question of disarmament in the forefront of
procedures necessary for peace.
"The Members of the League recognize", said
the Covenant, "that the maintenance of peace re-
April 20, 7947
quires the reduction of national armaments to
the lowest point consistent with national safety
and the enforcement by common action of inter-
national obligations."
The Covenant also established a permanent dis-
armament commission to aid in executing this
disarmament policy and to advise on military,
naval, and air questions in general.
This emphasis upon disarmament in the Cove-
nant became the watchword of internationalists in
the United States during the interwar years. Dis-
armament was considered an essential prerequisite
to peace. It was widely believed that armaments
are a danger in themselves, that they create politi-
cal instability and are one of the principal causes
of wars. This belief underlay the Washington
Conference in 1921-1922, the Geneva Conference of
1927, and the London Naval Conference of 1930.
It led directly to the Preparatory Commission for
General Disarmament at Geneva between 1927
and 1930 and pervaded the debates of the General
Disarmament Conference from 1932 to 1934.
There were many, especially in Europe, who
during those years dissented from the thesis that
armaments were in themselves a principal cause
of war. The French in particular maintained
from 1919 onward that security must precede dis-
armament and that states desiring peace cannot
disarm in the absence of an adequate security sys-
tem. This point of view was reflected in the es-
tablishment in 1921 of a temporary mixed com-
mission to advise the League Council on matters
of political import as they related to disarma-
ment. Moreover, the draft treaty of mutual as-
sistance of 1923, the Geneva protocol for the
pacific settlement of disputes of 1924, and the
Locarno pacts in the next year were all attempts
' An fiddress delivered before the annual convention of
the Women's Action Committee for Lasting Peace in Wash-
ington on Mar. 29, 1947, and released to the press on the
same date. Mr. .Johnson is Chief, Division of Interna-
tional Security Affairs, Office of Special Political Affairs,
Department of State.
697
THE UNITED NATIONS
to achieve some kind of security which might per-
mit real disarmament.
That this approach to the problem was the wiser
is suggested by a careful examination of the results
of the three naval conferences. At Washington
in 1921-1922, and at London in 1930, agreements
were reached on specific ratios among the Big Five
and the Big Three of those days, while the Geneva
Disarmament Conference of 1927 broke up in dis-
agreement. Why? I suggest that one reason is
that the treaties of 1922 and 1930 were linked with
what were thought to be security measures, while
the Geneva Conference was not. The Washington
naval-limitation treaty was negotiated simultane-
ously with two important political instruments —
the Nine- and Four-Power pacts — which sought
to stabilize a part of the world political structure,
and the London Conference followed the signing
of the Kellogg-Briand pact, which was regarded as
a security pact. We know only too well how false
a belief that was, and that the failure of both con-
ferences to provide effective safeguards proved
nearly fatal.
A most interesting aspect of the disarmament
efforts of the twenties and thirties was the atti-
tude of the Soviet Union. From 1921 to 1932 the
Soviet Government manifested by official state-
ments and by participation in international con-
ferences a keen interest in disarmament.
Although not invited to the Washington Dis-
armament Conference of 1921, the Soviet Govern-
ment informed the conference that "it would be
happy to welcome any disarmament or reduction
in military forces which burdened the workers of
all countries."
The Soviet Government participated actively in
the Preparatory Commission for General Disarma-
ment from 1927 to its conclusion in 1930, and in
the General Disarmament Conference from its
inception in 1932 to its death at Hitler's hand in
the middle thirties.
The world still recalls the resounding words of
Mr. Litvinoff when he submitted the Soviet draft
convention for "immediate, complete and general
disarmament" in 1927 and again in 1932. Litvin-
off's declaration that the road to peace is through
disarmament and that disarmament means total
disarmament shook the world conferences. It is
extremely interesting to note that the Kussian plan
of those days contained provisions for interna-
tional controls and international inspection, and
698
for punitive action against violators based on a
majority vote in the international control organ.
The Soviet proposals for total disarmament were
rejected, as were their proposals for partial limi-
tation and reduction of armaments. Both were
far-reaching and contained basic elements absent
from the proposals of other powers.
Three points should be noted about those prO'
posals. In the first place the emphasis was on
disarmament as a road to peace, and not on the
establishment of conditions of security as the road
to disarmament. Litvinoff expressed the Soviet
view concisely when he said in 1932 that "the task
of the hour is not the repetition of any attempts
to achieve some reduction of armament on war
budgets . . . but the actual prevention of war
with the creation of effective security against war.
This task can only be carried out hy means of total
and general disarmaments
The second significant aspect of the Soviet pro-
posals of 1927 and 1932 is that not only would total
disarmament have been to the positive advantage
of the only Conununist state in a world of capital-
ist powers, but proposals for such disannament
were, as Allen Dulles has recently suggested in an
article in Foreign Affairs, "calculated to expose the
hypocrisy of the capitalist states, even though [the
Soviet Government] considered as a foregone con-
clusion that they would not be accepted."
The sixth congress of the Comintern in 1928
described this position with, as Mr. Dulles says,
"complete frankness".
"The aim of the Soviet proposals", it said, "was
not to spread pacifist illusions, but to destroy them ;
not to support Capitalism by ignoring or toning
down its shady sides, but to propagate the funda-
mental Marxian postulate, that disarmament and
the abolition of war are possible only with the fall
of Capitalism ... it goes without saying,
that not a single Communist thought for a moment
that the imperialist world would accept the Soviet
disarmament proposals . . . after the Soviet
proposals for complete disarmament were re-
jected, the Soviet Delegation in March 1928 sub-
mitted a second scheme which provided for partial
disarmament and for a gradual reduction of land
and naval forces. This was not a concession to
pacifism ; on tlie contrary, it served to expose more
completely the attitude of the Great Powers toward
the small and oppressed nations. The Soviet Gov-
ernment's position on the question of disarmament
Department of State Bulletin
k
is a continuation of Lenin's policy and a consistent
application' of his precepts."
A third comment on the Soviet proposals is that
then, as now, a nation whose principal strength
lies in manpower would have much to gain from
complete disarmament. Men may be speedily re-
called to the colors. Ships and planes take time —
a long time — to build, and while they are build-
ing the nation which must rely on them remains
impotent.
Wliat lessons can we draw today from the un-
happy history of the intei'war period of false
peace ?
First, no responsible peace-loving state can af-
ford to reduce its armaments except in so far as
its security is adequately provided for. As Mr.
Parodi, the French Delegate, phrased it in the
recent General Assembly, "disarmament is impos-
sible without security organized along parallel
lines."
Secondly, the effective regulation and reduction
of armaments requires adequate safeguards to pro-
tect complying states against the hazards of viola-
tions and evasions. These safeguards must be both
political and technical in character. Political
safeguards would include conditions of political
equilibrium and provisions against violations of
any agreement. By technical safeguards I mean
provisions, such as inspection under international
authority, which would insure timely and adequate
knowledge of any violation of any arms-control
agreement.
Thirdly, the unilateral disarmament of the
United States would be a menace not only to its
own security but to the peace and security of the
world. This fact is, I believe, recognized not only
in this country but by thoughtful persons abroad,
who are fully aware that the weakness of the
United States in 1939 was an invitation to aggres-
sion against the peace-loving nations of Europe,
as its wealiness was from 1931 an invitation to
aggression in the Far East and eventually in the
Pacific, at Pearl Harbor.
The Government of the United States is deter-
mined to remember those lessons and act upon
them. It will seek its security through the United
Nations and through means consistent with the
Charter. It fervently upholds the concept em-
bodied in the Charter phrase international peace
and security, in which the two ideas of peace and
security are coupled together. It insists and will
TH£ UNITBD NATIONS
continue to insist that in this atomic age nothing
short of true security can be acceptable. It is
therefore determined that the regulation of arma-
ments shall be accompanied by adequate safe-
guards. It will not again disarm unilaterally,
and it will resist all efforts, from whatever source,
to induce it and the American people to accept
measures which might lead to the unilateral dis-
armament of this country.
The lessons of the past are written into the Char-
ter of the United Nations. The Charter repeat-
edly employs the phrase international peace and
secvxrity. It rejects the concept of the League
Covenant that disarmament is basic to peace. In-
stead, it proclaims the thesis that peace depends
upon power used in conformity with its purposes
and principles.
The Charter rests on the belief that the power
relationship among the great states provides an
important answer to the search for international
security.
The Charter acknowledges that the great pow-
ers, beciiuse they are great powers', have special
responsibilities toward the rest of the world.
The Chai'ter recognizes that armed forces are
necessary to the maintenance of international se-
curity. It provides that the Security Council
shall have armed forces at its disposal, to be made
available to it by the member states.
The Charter thus recognizes the tise of force un-
der law in international society. It acknowledges
that certain great states are endowed with excep-
tional capacity to wage modern war, and that
world peace depends upon the ability of these
great powers to settle their problems peacefully.
The regulation and reduction of armaments is
not in the Charter as a first principle of security,
but is made a subsidiary and contributing factor
to the major objectives of international peace and
security.
You will have observed that in my title and else-
where I have used the term regulation of arma-
ments. I have done so deliberately. I believe
we should avoid the word duarmainent. It is mis-
leading. "Regulation of armaments," which is
Charter language, describes more accurately the
goal we seek.
Regidation means that the control of armaments
as envisaged in the Charter must be multilateral,
systematic, and related to the responsibilities for
maintaining peace and security. Those states pri-
l<pt\\ 20, 1947
699
THE UNITED NATIONS
marily charged with the responsibility of main-
taining peace and security must have the power
to implement that responsibility. It is on this
basis that reduction must be carried out.
So far I have spoken of the regulation of arma-
ments in general. In doing so I have stressed the
difficulties of the problem and painted a rather
gloomy picture, which, nevertheless, in my opinion
is in accordance with the facts.
I wish to turn now very briefly to the interna-
tional control of atomic energy. In a sense this
is a problem of arms regulation. But it is much
more than that. It is more because atomic weap-
ons are so infinitely more destructive than all other
weapons, and because of the enormous potential
benefits which atomic energy holds for mankind,
benefits which cannot be fully realized unless
atomic weapons can be controlled.
The control of atomic energy calls for special
treatment. That is why the United States, long
before any serious thought was given to the gen-
eral regulation and reduction of armaments, took
steps looking toward the effective control of this
new force. That is why we still desire to have it
dealt with separately. That is why we still be-
lieve agreement for its control should come fii-st.
The guns of World War II had hardly been
silenced when this Government, together with the
Governments of the United Kingdom and Canada,
took the first momentous steps toward the goal
of international control of atomic energy. On
November 15, 1945, three weeks after the United
Nations Charter came into force, and nearly two
months before the United Nations began function-
ing, a joint statement, the Three Nation Agreed
Declaration, was issued. The three nations' —
those responsible for developing this great new
force in the affairs of men — proposed to strive for
its control internationally. They declared their
intention of seeking suitable methods of interna-
tional control of atomic energy which, when put
into effect in collaboration with other nations,
would insure its use for peaceful purposes only, and
eliminate from national armaments atomic weap-
ons and other weapons adaptable to mass destruc-
tion. They pi-oposed to seek this goal through the
United Nations.
In December 1945 this Government, jointly with
Great Britain, asked for and received from the
Soviet Government a promise of collaboration to
this end. This agreement was embodied in the
Moscow communique and was adhered to by
France and China as well.
As a result, the General Assembly of the United
Nations on January 24, 1946, adopted a resolution
establishing the United Nations Atomic Energy
Conmiission.
The position of leadership assumed by the
United States with respect to the international
control of atomic energy has been maintained ever
since. Between the Moscow Conference and the
first meeting of the Atomic Energy Commission on
June 14, 1946, the United States carefully worked
out proposals for control and development. First
came the dynamic, imaginative, practical docu-
ment known as the "Acheson-Lilienthal report",
prepared under a directive from Secretary of State
Byrnes. Tlien Mr. Bernard M. Baruch, United
States representative to the Atomic Energy Com-
mission, building upon the Acheson-Lilienthal
recommendations, developed proposals which he
presented forcefully to the Commission at its open-
ing session.
Mr. Baruch and his colleagues continued for the
next six months to exert strong leadership in the
Commission. Mr. Austin and his deputy, Mr.
Osborn, who have now taken over the task, are
carrying on with vigor.
Surely our record is without parallel. The
United States, possessing the world's most terrify-
ing and destructive weapon, has offered and con-
tinues to offer to renounce the use of the weapon
and to give up its special knowledge. All that we
ask in return is that we may be absolutely assured
the weapon will not be used against us.
The work of the Atomic Energy Commission is
well known. From the beginning the United
States has held that there must be an international
authority, with control over dangerous source and
fissionable materials, with full powers of inspec-
tion, with great responsibilities in the field of
development and i-esearch. We further insist that,
while atomic weapons must be outlawed, this must
be done only as part of an over-all plan for effective
international control. We also insist upon meas-
ures which will reduce to a minimum the possibili-
ties of violation of any agi'eement and insure swift
and certain punishment if any violation should
occur.
Nine other membei's of the Atomic Energy Com-
mission, by voting for the report which it sub-
mitted to the Security Council on December 31,
700
Department of State Bulletin
1946, subscribed to these views; so, too, apparently
have the new members of the Commission and of
the Security Council.
Until this month the attitude of the Soviet Union
had not been entirely clear. Since last June the
U.S.S.R. has publicly pressed for immediate out-
lawry of the bomb and the cessation of production
of bombs by this country, while at the same time
advocating that a convention for control be worked
out later. The Soviet representatives have held to
these views so tenaciously as to give rise to a
suspicion that the principal Soviet aim in the
United Nations discussions has been to disarm the
United States unilaterally and immediately by
multilateral agreement, while preventing or delay-
ing the establishment of a system which would
assure us that no other country is producing or in
possession of atomic bombs.
It was also known, of course, that Mr. Gromyko
in July considered the United States proposals as
"unacceptable in whole or in part". Statements
by Gromyko himself, Molotov, and Stalin during
the autumn led, however, to a hope that the Soviet
position might have been somewhat modified. The
fact that the U.S.S.R. abstained, instead of voting
in the negative, on the Atomic Energy Conunis-
sion's report in December reinforced the hope.
Mr. Gromyko demolished that hope by his state-
ment in the Security Council on March 5. It is
now all too evident that virtually all, if not all,
of the provisions which the United States regards
as essential for the international control of atomic
energy are at present unacceptable to the U.S.S.R.
The outlook now, as the Atomic Energy Com-
mission resumes its labors, is dark. Of that there
can be no question. Yet I, for one, do not despair.
I am sustained by the conviction that the in-
escai^able logic of the facts must lead to the even-
tual recognition that a solution must be found
which will carry out the Commission's mandate.
That mandate requires, among other things, that
it submit specific proposals : "for control of atomic
energy to the extent necessary to ensure its use
only for peaceful purposes . . . for the elimi-
nation from national armaments of atomic wea-
pons . . . for effective safeguards by way of
inspection and otlier means to protect complying
States against the hazards of violations and
evasions."
The Commission for Conventional Armaments,
established by the Security Council resolution of
April 20, 1947
739228 — 47 3
THE UNITED NATIONS
Februaiy 13, has just begun its work. It would be
fruitless and unwise to attempt to predict its
future.
Bearing in mind, however, the history of earlier
endeavors in the field of disarmament, one can
safely prophesy that its task will be immensely
complicated and slow of fulfilment. The report
which it is to submit at the end of three months
can, I believe, be at most an outline of its problem
and a suggestion of the way in which it plans to
tackle the job.
Past history suggests too, that real progress will
have to be sought through establishment of basic
conditions of security and through study of the
I^roblem of safeguards.
What course the Soviet Union will follow can-
not be foretold. Mr. Gromyko has not yet made a
jjolicy statement in the Commission. There is no
reason, however, to believe that Soviet interests or
objectives have undergone any basic alteration
since 1932. Indeed the position which Soviet
representatives have taken in the United Nations
discussions to date suggests they have not. It
would therefore be logical to expect Mr. Gromyko
to press for outright disarmament, or at least sub-
stantial reduction of arms, and to appear to call
for real regulation of armaments, while in fact
taking little account of and making no adequate
2)rovision for the safeguards which are essential
to the establishment and maintenance of true
world security.
The attitude with which the United States Gov-
ernment looks forward to the work of the Com-
mission is, I believe, evident from what I have
already said. It was clearly set forth by Mr.
Herschel Johnson in the Commission earlier this
week.
In sum it is that both tlie fulfilment of our com-
mitment under the Charter to the principles of
international collective security and our national
self-interest require us to insist that practical
security arrangements be a primary consideration
in any program for the general regulation and
reduction of armaments.
As conditions of international security are
achieved, as general settlements among the great
powers are made, the regulation and reduction
of armaments will naturally follow. If the United
States were to agree to reduction of armaments
without safeguards, reduction of armaments with-
(Covtinued on page 115)
701
United States Membership and Participation
in tlie World Healtli Organization
THE PRESIDENT'S LETTER OF TRANSMITTAL!
To the Congress of the United States:
I am transmitting herewith for your consider-
ation a suggested joint resolution, providing for
United States membership and particijiation in
the World Health Organization. I also am en-
closing a memorandum from the Secretary of
State, with reference to United States member-
ship in the World Health Organization.
I have been impressed by the spirit of interna-
tional good will and community of purpose which
have characterized the development of the con-
stitution of this Organization. I am sure that it
will make a substantial contribution to the im-
provement of the world-health conditions through
the years.
I have been impressed by the spirit of interna-
national health problems, I consider it important
that the United States join the World Health Or-
ganization as soon as possible. Therefore, I hope
that the suggested joint resolution may have the
early consideration of Congress.
Harry S. Truman
The White House, March M, 19p
(Enclosures: (1) Joint resolution; (2) memorandum
from Secretary of State.)
I
JOINT RESOLUTION
Providing for membership and participation by the United States in the
World Health Organization and authorizing an appropriation therefor
I
Resolved by the Senate and House of Represent-
atives of the United States of America in Congress
assembled, That the President is hereby authorized
to accept membership for the United States in the
World Health Organization (hereinafter referred
to as the Organization), the constitution of which
was adopted in New York on July 22, 1946, by the
International Health Conference for the Establish-
ment of an International Health Organization, and
deposited in the archives of the United Nations.
Sec. 2. The President shall designate from time
to time to attend a specified session or specified
sessions of the World Health Assembly of the
Organization not to exceed three delegates of the
United States and such number of alternates as he
may determine consistent with the rules of pro-
cedure of the World Health Assembly. One of the
delegates shall be designated as the chief delegate.
Whenever the United States becomes entitled to
designate a pei-son to serve on the Executive Board
' H. Doc. 177, 80th Cong., 1st sesa.
702
of the Organization, under article 24 of the con-
stitution of the Organization, the President shall
designate such person who shall be entitled to
receive compensation at a rate not to exceed $12,000
per annum for such period or periods as the Presi-
dent may specify, except that no Member of the
Senate or House of Representatives or officer of the
United States who is thus designated shall be
entitled to receive such compensation. The Presi-
dent may also designate such alternates as may be
deemed necessary.
Sec. 3. There is hereby authorized to be appro-
priated annually to the Department of State, out
of any money in the Treasury not otherwise appro-
priated, such sums as may be necessary for the
payment by the United States of its share of the
expenses of the Organization, including those in-
cui-red by the Interim Commission, as apportioned I
by the Health Assembly in accordance with article
56 of the constitution of the Organization, and
such additional sums as may be necessary to pay
Department of State Bulletin
the expenses incident to participation by the
United States in the activities of the Organization,
including (a) sahvries of tlie officials provided for
in section 2 hereof, and appropriate staff, including
personal services in the District of Columbia and
elsewhere without regard to the civil-service and
classification laws; (b) travel expenses without
regard to the Standardized Government Travel
Regulations, as amended, the Subsistence Expense
Act of 1926, as amended, and section 10 of the Act
of March 3, 1933, as amended, and, under such rules
and regulations as the Secretary of State may
prescribe, travel expenses of families and transpor-
tation of effects of the United States officials pro-
vided for in section 2 hereof and other personnel
THE UNirCD NATIONS
in going to and returning from tlieir post of duty ;
(c) allowances for living quarters, including heat,
fuel, and light, as authorized by the Act approved
June 26, 1930 (5 U.S.C. 118a), and similar allow-
ances for persons temporarily stationed abroad;
(d) cost of living allowances under such rules and
regulations as the Secretary of State may prescribe,
including allowances to persons temporarily sta-
tioned abroad ; (e) services as authorized by section
15 of Public Law 600, Seventy -ninth Congress;
(f) official entertainment; (g) local transporta-
tion; and (h) printing and binding without regard
to section 11 of the Act of March 1, 1919 (44 U.S.C.
Ill), and section 3709 of the Revised Statutes, as
amended.
MEMORANDUM FROM THE SECRETARY OF STATE
Subject : United States Membership in the World
Health Organization.
The attached joint resolution authorizes the
President to accept the constitution of the World
Health Organization so that the Organization
may be established and begin its work at an early
date.
The United States Senate expressed itself in
favor of the early formation of such an Organiza-
tion in adopting Senate Joint Resolution 89,
Seventy-ninth Congress, First session, on Decem-
ber 20, 1945 :
. . . That there should be the speedy convening
of an International Health Conference and the
early formation of an International Health Or-
ganization as one of the objectives of the United
Nations Organization, and that the President is
hereby requested, on behalf of the Government of
the United States, to urge upon the United Nations
Organization the prompt convening of such Con-
ference and the formation of such an Organization.
The Senate committee report on this resolution
stated :
There is today no international health agency
organized or equipped to cope with many of the
health problems of the rapidly changing woi-ld.
This committee believes that the creation of such
an agency is an urgent necessity for the well-being
of every American citizen as well as for world
health. . . .
Disease does not respect national bsundaries.
Particularly in our shrinking world, the spread of
disease via airplane or other swift transport across
national boundaries gives rise to ever-present
danger.
Since the adoption of this resolution by the
Senate, an International Health Conference has
been held, a constitution of a World Health Or-
ganization signed by 61 states, and an Interim
Commission established.
Because of the urgent need for an International
Health Organization, the General Assembly of
the United Nations adopted on December 14, 1946,
a resolution recommending to all members of the
United Nations the acceptance by them of the
constitution of the World Health Organization at
the earliest possible date. Further, the Twelfth
Pan-American Sanitary Conference, meeting in
Caracas, Venezuela, January 12-24, 1947, adopted
a resolution recommending to the Governments of
the American Republics approval of the constitu-
tion of the World Health Organization signed in
New York City on July 22, 1946, in accordance
with their respective constitutional processes.
In the opinion of the Department of State, a
broad-gaged international organization in the
field of health, such as the World Health Organi-
zation, is absolutely essential to attack diseases at
their source, to prevent their spread until brought
under control, and to raise the health level of
peoples, in this and every other country.
No one nation has a monopoly of medical skiUs
and talents. Our own present high standards of
medical technique stem from contributions made
by scientists in all pails of the world. Microscopic
April 20, 1947
703
TH£ UNITED NATIONS
life was discovered by a Netherlander, antiseptic
technique by an Englishman, the germ theory of
disease and immunization by a Fienclmian.
We owe to other countries some of the most power-
ful weapons against disease whicli we used to good
effect during the recent war — penicillin, the sulfa
drugs, DDT, and atabrine. Cooperation of medi-
cal scientists and public-healtli experts of all
countries will advance the study of disease and the
development of means of control.
All countries, the more advanced in medical
science and public health as well as tliose in which
progi-ess has been slower, stand to gain from inter-
national cooperation in tlie field of health.
Through the machinery of the World Health
Organization, the United States, which is one of
the countries far advanced in medical science and
public health, can play an important role in im-
proving the health conditions of more backward
states. The World Health Organization, how-
ever, is a joint enterprise and, like other states,
the United States stands to gain significantly from
participation in it. Some of the very real ways
in which we stand to gain, in addition to protec-
tion against invasion of disease, may be briefly
stated as follows :
Opportunities will be provided for our scientists
to make intensive studies of diseases which, al-
though not present in the United States, constitute
a threat to us, and of diseases which, although
present liere, are not sufficiently common to offer
adequate research opportunities.
Results of research performed on an interna-
tional basis, a field of activity which deserves
intensification, will be immediately available to us.
We shall receive a constant flow of information
concerning health and medical advances through-
out tlie world.
Demands will be created for American skills,
scientific and technical equipment and diagnostic
and therapeutic products through world-wide
familiarity with them.
The development of international standards for
drugs and biologicals by the World Health Or-
ganization will have important advantages for our
pharmaceutical industry which is prepared to
supply other countries with products of high
quality.
In the field of disease control, we have been ac-
customed to rely on international quarantine for
our i^rotection. Such control becomes ineffective
when international travel can be accomplished, as
it is today, within the incubation, or undetectable,
period of disease, and within the infectible period
of healthy carriers of such diseases as cholera.
Even where there are grounds for suspecting the
presence of disease, a traveler coming from Africa
in 20 hours will scarcely want to submit to 6 days'
isolation. It is the consensus among public-health
experts and medical authorities generally, as re-
peatedly expressed at the International Health
Conference, that the control of the international
spread of disease can rest now only upon the devel-
opment of strong national health services ca-
pable of controlling epidemic disease at its source.
Such development, it is believed, can best be stim-
ulated and brought to fruition by an international
health organization, broad in its scope, dedicated
to the strengthening of national health services
and of such standing as to merit the confidence of
governments and invite consultation by them.
There is no such organization at the present
time. The Pan American Sanitary Bureau is geo-
graphically limited by its regional character, the
Health Organization of the League of Nations has
been dissolved and its functions transferred to the
Interim Commission established by the Interna-
tional Health Conference ; the International Office
of Public Health, which has operated in the tech-
nical field of international exchange of epidemio-
logical information, is awaiting formal dissolution
while its functions are being assumed by the
Interim Commission ; and the Health Division of
UNRRA, an important but temporary agency, is
disbanding.
Recognition of the need for a new international
health organization prompted the calling of the
International Health Conference which met in
New York, June 19-July 22, 1946. This, the first
international conference convened by the United
Nations, was the largest and most representative
international conference ever held in the field of
health, being attended by representatives of 64
states. The official delegations to the Conference
were for the most part composed of technically
qualified persons, such as ministers of health,
chiefs of national health services, distinguished
practicing physicians and medical educators.
The constitution of the World Health Organi- 1
zation, which was fonnulated by the International
Health Conference and signed by representatives
of 61 states, provides for a single International
704
Department of State Bulletin
Health Orp;anization with which existing interna-
tional health organizations will be integrated.
The constitution presents the objectives of the
new Organization as "the attainment by all
peojjle of the highest possible level of health"
(art.l).
It sets out the means by which the Organization
shall seek to realize its objective. Probably the
most important function given to the Organiza-
tion is that of assisting states, at their request, in
strengthening their national-health services. The
immense value of this type of international action
in the healtli field has been dramatically demon-
strated by the Health Organization of the League
of Nations and the Pan American Sanitary Bu-
reau. This does not mean that the Organization
will have, in any way, authority to intervene in
the administration of health or medical care in
any state.
The functions of the Organization include, fur-
ther, the collection and improvement of world-
wide disease statistics; the centralization, consoli-
dation, and distribution of health and medical
knowledge; the promotion and conduct of research
in the field of health ; the continuation and further
development of the highly important work done
by the League of Nations in the standardization
of drugs and biological preparations; and the pro-
motion, in cooperation with other international
organizations, of the improvement of nutrition,
housing, sanitation, recreation, economic or work-
ing conditions, and other aspects of environmental
hygiene (art. 2).
Thus the Organization will engage in activities
such as the above-mentioned Senate committee re-
port envisaged :
Health conditions do not improve automatically,
but only as the result of organized, concerted ac-
tivity. It is not enough to control the spread of
disease. In the long run it will be necessary to
eradicate their causes, and this can be done only
through united international effort. . . . The
maintenance of good health is not only a matter
of quarantine and vaccinations. It is also essen-
tial that the social and economic bases for health-
ful living be established ; income adequate to main-
tain at least a decent standard of living; good
nutrition, housing, clothing, and working condi-
tions; and education and cultural opportunity
must be included as goals in any effective health
program. For this reason a close relationship be-
THE UNITED NATIONS
tween the Economic and Social Council of the
United Nations Organization and the proposed
Health Organization is necessary.
One of the most significant advances in the con-
stitution of the World Health Organization is the
authority given to the Organization to adopt regu-
lations in certain prescribed technical fields.
Under these provisions of the constitution the
right cf any government to reject regulations
whicli it finds unacceptable is fully protected. The
regidatory provision was inserted in an effort to
create a mechanism which would permit rapid
general application of new scientific techniques
to the control of the international spread of dis-
ease. This is in accord with a suggestion made in
the Senate Foreign Relations Committee, when
considering the sanitary conventions of 1944, that
some way be foimd to accomplish this purpose
without the necessity of referring to the Senate
new treaties drawn solely to incorporate new tech-
nical procedures into existing agreements (arts.
21-22).
As to the structure of the World Health Or-
ganization, the constitution provides for (1) a
Health Assembly, on which all member states shall
be represented by from one to three delegates;
(2) an Executive Board, composed of 18 persons
designated by as many states; and (3) a Director-
General and a Secretariat (chs. V, VI, and VII,
respectively).
The Organization will be supported by contri-
butions from member states. The Health Assem-
bly will approve the budget and apportion the
expenses among the members in accordance with
the scale which it determines (arts. 55-57).
The constitution anticipates the establishment
of close working relations between the Organiza-
tion and other international organizations with
related interests. It provides that the Organiza-
tion shall be brought into relationship with the
United Nations as a specialized agency, by special
agreement (arts. 69-70).
The development of the constitution has taken
place in a continuous atmosphere of international
good will, mutual respect, and singleness of pur-
pose. The history of effective international action
in the field of health during the past half century
and the harmonious development of the present
constitution are convincing evidence that health
offers a field in which international cooperation
can contribute substantially to the welfare of man-
April 20, 1947
70S
THE UNITBD NATIONS
kind and to harmony among nations. It is clear
that the World Health Organization will have a
larger initial membership than has been the case
with other specialized organizations. The con-
stitution was signed on behalf of all members of
the United Nations and nine states, nonmembers
of the United Nations. Repi-esentatives of 61
states signed the arrangement which established
the Interim Commission.
The constitution will come into force and the
Organization will be established when 26 members
of the United Nations have notified the Secretary-
General of the United Nations of their acceptance
of the constitution. Six members of the United
Nations have thus far taken the necessary action
(China, Canada, Iran, New Zealand, Syria, United
Kingdom).
The constitution was signed by representatives
of the United States, subject to subsequent ap-
proval by this Government. United States ap-
proval given subsequent to the adoption by both
Houses of Congress of the attached joint resolu-
tion, which authorizes the Pi-esident to accept the
constitution on behalf of the United States and
authorizes appropriations for United States par-
ticipation, will speed the establishment of thei
Organization and the convening of the first World
Health Assembly. Particular importance is at-
tached to United States approval since there is
reason to believe that several other states will
approve the constitution witliin a short time after
the United States has given its approval.
The participation of the United States in this
Organization will be another manifestation of
the determination of this Government, which has
been emphasized by the President and Congress,
to give continuing full support to the United
Nations.
G. C. Marshall
(Enclosure: A certified copy of the final acts of the
International Health Conference.')
' Not printed.
' U.N. doc. B/AC.7/2, Mar. 5, 1947.
Narcotic Drugs — Continued from page 692
gested the adoption of a resolution ^ concerning the
control of narcotic drugs in Japan similar to that
agreed upon for Germany. Mr. Nash (New Zea-
land) then proposed a compromise recommenda-
tion which, as amended by the representatives of
the United States and the United Kingdom, was
finally adopted by the Committee on Social Affairs
and approved by the Economic and Social Council
(resolution G as given above).
The third paragraph of resolution H on appoint-
ments to the Permanent Central Opium Board is
important. It may result in the drafting of a
protocol amending or deleting the following para-
graph in article 19 of the international drug con-
vention signed at Geneva on February 19, 1925 :
"The members of the Central Board shall not hold
any oilice which puts them in a position of direct
dependence on their governments."
Mr. Borisov in the second meeting of the Com-
mittee on Social Affairs, March 4, 1947, raised the
question how this provision could be applied to all
members of the United Nations, as in many coun-
tries industry and numerous other activities were
under state control. Dr. Sze (China) suggested
that inunediate steps should be taken to revise the
1925 convention so as to avoid the difficulty men-
tioned by the representative of the Union of Soviet
Socialist Republics and in order to insure adequate
and competent representation on the Board. Mr.
Borisov said that he considered it imperative that
the Committee should recommend to the Economic
and Social Council the earliest possible revision of
article 19. At the conclusion of the debate, the
Committee decided upon the action embodied in
the third paragraph of resolution H.
The Economic and Social Council, in adopting
the above-mentioned resolutions, has taken firm
action to reestablish and improve narcotic con-
trols, to further the abolition of the use of smoking
opium throughout the world, and to advance the
preparatory work for the limitation of the pro-
duction of narcotic raw materials.
I
706
Department of Stale Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of April 13,
Permanent Central Opium
Geneva . . .
Apr. 14r-19
1947
1946
Board.
Committee on Progressive
Lake Success .
May 1
Far Eastern Commission . .
Washington .
Feb. 26
Development and Cod-
United Nations:
ification of Interna-
Security Council
Lake Success .
Mar. 25
tional Law.
Military Staff Committee .
Lake Success .
Mar. 25
Economic Commission for
Geneva . . .
May 12 '
Commission on Atomic En-
Lake Success .
June 14
Europe: First Plenary
ergy.
Session.
Telecommunications Advis-
Lake Success .
Nov. 10
Preparatory Conference of
Lake Success .
June 9 '
ory Committee.
1947
Experts on Telecom-
munications.
Commission on Conven-
Lake Success .
Mar. 24
Economic Commission for
Shanghai . .
June 5 '
-: tional Armaments.
Asia and the Far East:
Trusteeship Council . . .
Lake Success .
Mar. 26
First Plenary Session.
ECOSOC (Economic and
German External Property
Social Council) :
Negotiations (Safeha-
1946
Subcommissiou on Pro-
Lake Success .
Apr. 21 »
ven):
tection of Minorities
With Portugal
Lisbon. . . .
Sept. 3
and Prevention of
With Spain
Madrid . . .
Nov. 12
Discrimination.
Fiscal Commission . . .
Lake Success .
May 19 »
Inter-Allied Trade Board for
Japan.
Washington .
Oct. 24
Subcommissiou on Free-
Lake Success .
May 5 ^
dom of Information
1947
and of the Press.
Council of Foreign Ministers .
Moscow . . .
Mar. 10
Social Commission . . .
Lake Success .
May 26 '
Subcommissiou on Sta-
Lake Success .
June 2 2
International Wheat Confer-
London . . .
Mar. 18-
tistical Sampling.
ence.
Temporar-
ily ad-
Economic and Employ-
ment Commission.
Lake Success .
June 9 '
journed;
Human Rights Commis-
Lake Success .
June 16 »
will re-
sion.
convene
Apr. 14.
ICAO (International Civil
Aviation Organization) :
WHO (World Health Organi-
Geneva . . .
Mar. 31-
European-Mediterranean
Paris ....
Apr. 15
zation) : Third Session of
Apr. 11.
Special Air Traffic
Interim Commission.
Control Conference.
UNESCO Executive Board .
Paris ....
Apr. 10-16
Interim Council
Montreal . .
Apr. 29
Air Transport Committee .
Montreal . .
April
International Conference on
Geneva . . .
Apr. 10
First Meeting of General
Montreal . .
May 6
Trade and Employment:
Assembly.
Second Meeting of Pre-
South American Regional
Lima ....
June 17
paratory Committee.
Air Navigation Meet-
Scheduled April-June 1947
ing.
International Tin Study
Brussels . . .
Apr. 15-18
International Red Cross Com-
mittee.
Geneva . . .
Apr. 14-26
Group: First Meeting.
ECITO (European Central
Paris ....
Apr. 14
FAO (Food and Agriculture
Inland Transport Organ-
Organization):
ization) : Seventh Session
Ad hoc Salt Fish Working
Washington .
Apr. 21-25
of the Council.
Party.
United Nations:
Meeting of Experts on
Geneva . . .
Apr. 14
1 Prepared in the Division of International C
onferences,
Passport and Frontier
Department of State.
Formalities.
» Tentative.
April 20, J 947
707
Calendar of Meetings — Continued
International Timber Con-
Marianske-
Apr. 28-
IRO (International Refugee
Lausanne . .
May 1
ference.
L a z n e ,
Czechoslo-
vakia.
May 10
Organization) : Second
Part of First Session of
Preparatory Commission.
Rice Study Group ....
Trivandrum,
May 15
Travancore,
Congress of the Universal
Paris ....
May 6
India.
Postal Union.
Executive Committee . . .
Washington .
June 2
International Radio Con-
Atlantic City .
May 15
Fifth International Hydro-
Monaco . . .
Apr. 22
ference.
graphic Conference.
PMCC (Provisional Mari-
Paris ....
May 16
ILO (International Labor
time Consultative Coun-
Organization):
cil).
Industrial Committee on
Geneva . . .
Apr. 22
Coal Mining.
lEFC (International Emer-
Washington .
May 2&-
Industrial Committee on
Geneva . . .
May 6
gency Food Council) :
27
Inland Transport.
Fourth Meeting.
101st Session of Governing
Geneva . . .
June 13
Body.
lARA (Inter-Allied Repara-
Brussels . . .
May
30th Session of Interna-
Geneva . . .
June 19
tion Agency) : Meeting
tional Labor Confer-
on Conflicting Custodial
ence.
Claims.
American International Insti-
Montevideo .
Apr. 25
Eleventh International Con-
Basel ....
June 2-7
tute for the Protection
gress of Military Medi-
of Childhood: Meeting
cine and Pharmacy.
of the International
Council.
International Cotton Advi-
sory Committee.
Washington .
June 9
International Meeting on
New York and
Apr. 28-
Marine Radio Aids to
New Lon-
May 10
Caribbean Commission:
Jamaica . . .
June 23-
Navigation.
don.
Fourth Meeting.
30
Activities and Developments
INTERIM PRINCIPLES FOR RESTITUTION OF
IDENTIFIABLE PROPERTY CONFISCATED IN
JAPAN FROM ALLIED NATIONALS'
1. The Supreme Commander for the Allied
Powers should be authorized to I'estore to nationals
of any of the United Nations identifiable prop-
erty, tangible or intangible, which was located in
Japan prior to the outbreak of hostilities between
their government and the government of Japan
70S
and owned by them at that time or lawfully
acquired thereafter, and which was seized, con-
fiscated, or sequestered, formally or otherwise,
during the recent hostilities by the Japanese
Government, members of its armed forces, or by
oflicial or private Japanese or other enemy indi-
viduals or groups, provided that :
a. Subject to the discretion of the Supreme Com-
mander, restitution should be made at this time
only to :
( 1 ) Natural persons present in Japan ;
(2) Juridical persons where the holders of a
controlling interest are nationals of Members of
the United Nations now resident in Japan ;
(3) Charitable and religious institutions fi-
I
" Policy decision approved by the Far Eastern Commis-
sion on Mar. 6, 1947, and released to the press by the Com-
mission on Apr. 10, 1947. A directive based upon this
policy decision has been forwarded to the Supreme Com-
mander for the Allied Powers for implementation.
Department of State Bulletin
I
nanced primarily by non-Japanese funds, where
a duly authorized agent or properly qualified per-
son is resident in Japan to receive title ;
. h. Without in any way prejudging the defini-
tive policy later to be adopted by the Far Eastern
Commission with respect to the disposition of
large-scale enterprises, only small-scale commer-
cial and industrial enterprises should be restored
at the present time;
c. Though title to gold, other precious metals
and foreign exchange may be restored to the United
Nations owners, they should remain subject to the
laws and regulations in force at any time govern-
ing the custody, control and transfer of such
assets ;
d. The Supreme Commander is satisfied as to
the identification of such property.
2. The policy for restitution of similar property
to nationals of Members of the United Nations who
are not resident in Japan at present will be dealt
with in a future paper.
3. For the purpose of determining whether
property was in fact confiscated it should be
assumed that all property taken by the Japanese
or other enemy Government, Armed Forces, or
nationals during the recent hostilities from na-
tionals of any of the United Nations was confis-
cated whether or not payment was made at the
time of acquisition unless it can be definitely shown
that no duress or fraud was involved.
4. The restitution of property should be made
without expense for the owners and without preju-
dicing the claim of the original owners against the
Japanese or other enemy Government and/or their
nationals for damages to property, rent, deprecia-
tion, and other ascertainable losses. To facilitate
the preparation and adjudication of claims, agreed
statements as to the extent and condition of the
property restored should be drawn up at the time
of its return. The Japanese Govei-nment should
be required to furnish to the owner a complete
inventory of the property together with a report
by the Japanese official administrator on the man-
agement of it and, in the case of industrial and
commercial concerns, a closing balance sheet.
6. If payment to restoree was made at the time of
confiscation the Supreme Commander for the
Allied Powers should require persons repossessing
the property to agree to remit such amounts to the
Japanese Government as a prerequisite to restitu-
tion. However, actual payment of such amounts
ACTIVITIBS AND DEVELOPMENTS
should be made only after settlement of claims as
specified in paragraph 3 above.
6. If funds received in payment for confiscated
property wei'e blocked by the Japanese Govern-
ment, such funds should be unblocked and the
owner permitted to draw upon them on the same
basis as depositors in general draw upon their
bank funds, except that in the event that the
confiscated property is returned such funds should
l:ie unblocked only in an amount sufficient to make
the payment required in paragraph 5 above.
7. The right to restitution provided in the fore-
going paragraphs and even the completion of resti-
tution should not be considered as permission to
operate properties where the Supreme Commander
for the Allied Powers considers the operations of
such property injurious to the occupying forces or
to the purposes of the occupation. Similaily, the
operation of properties considered by the Supreme
Commander for the Allied Powers upon consulta-
tion with the Allied Council for Japan in accord-
ance with the Terms of Reference of the Allied
Council for Japan to be beneficial to the occupying
forces and/or the accomplishment of the purposes
of the occupation should not await restitution of
title or the transfer of possession of such proper-
ties ; but in such cases compensation for the use of
the property should be paid for the account of the
owner.
8. Japanese nationals injured by the provisions
of the foregoing paragraphs should look to the
Japanese Government for relief.
U. S. DELEGATION TO ICAO AIR TRAFFIC
COiyiMITTEE FOR EUROPEAN-MEDITERRANEAN
REGION
[Released to the press AprU 11]
The Acting Secretary of State announced on
April 11 the designation of the following dele-
gation to represent the United States at the second
special meeting of the Air Traffic Control Com-
mittee for the European-Mediterranean Air Navi-
gation Region of the International Civil Aviation
Organization, wliich will convene at Paris, France,
on April 15, 1947 :
Chairman of the delegation:
Glen A. Gilbert, Chief of Special Missions, Civil Aero-
nautics Administration, Department of Commerce
Alternates:
Horace F. Amrine, Aviation Division, Department of State
Walter Swanson, Civil Aeronautics Administration, De-
partment of Commerce
April 20, 1947
709
ACTIVITIES AND DEVELOPMENTS
Advisers:
Jesse Penno, Civil Aeronautics Board
Peter Caporale, Civil Aeronautics Administration, De-
partment of Commerce
Col. Joseph Duckworth, Army Air Forces
Upon arrival at Paris the delegation will be
augmented by about 15 representatives of the Civil
Aeronautics Administration and the Army Air
Forces in Europe.
This meeting will mark the first regional gath-
ering since the permanent International Civil
Aviation Organization came into being on April
4, 1947. The permanent organization replaces the
provisional organization which has been operating
with headquarters at Montreal, Canada, since its
establishment following the International Civil
Aviation Conference at Chicago in 1944. The
necessary twenty-sixth state ratified the aviation
convention on March 4, 1947, and under the terms
of that convention the permanent organization
came into being one month later.
Under the terms of the provisional organization
the Interim Council at Montreal approved the
convening from time to time of those regional
committees which had need of meeting in order
to create or maintain those standards of operation
on international air trunk routes which have been
subscribed to by the member states. The inaugu-
ral regional meeting, at which the Air Traffic Con-
trol Committee for the European-Mediterranean
Region, along with five other regional committees,
was formed, was held last May. The first special
session of the Air Traffic Control Committee for
the European-Mediterranean Region was held in
November, and the forthcoming Paris meeting will
be the second session.
The Committee will restudy and possibly rec-
ommend the amending of existing air-traffic-con-
trol i-ules, procedures, and facilities for the region.
The recommendations of the Committee will be
submitted to the ICAO Council at Montreal, which
will make the final decisions.
The Joint Campaign Against Foot-and-Moutli Disease in Mexico
ARTICLE BY JOHN A. HOPKINS >
A new and highly important instrument for
cooperation between the United States and Mex-
ico was set up in late March 1947 with the estab-
lisliment of a joint office for the eradication of
foot-and-mouth disease in Mexico. Headquarters
of the agency are to be located in Mexico City.
Oscar Flores, Mexican Under Secretary of Animal
Industry, has been appointed director. Dr. M. S.
Shahan, research scientist and veterinarian of the
Bureau of Animal Industry, Agi-icultural Re-
searcli Administration, United States Department
of Agriculture, is co-director. An administrative
board, which will determine operating policy and
exercise general supervision over the campaign,
consists of the following persons:
Mexico
Jos^ Figueroa, member of the Mexican National Com-
mission for the Eradication of Foot-and-Mouth
Disease
Francisco Rubio Lozano, Ministry of Agriculture and
Animal Industry
' Mr. Hopkins is Acting Head of the Latin American
Division, Office of Foreign Agricultural Relations, De-
partment of Agriculture.
710
Ignacio de la Torre, Ministry of Agriculture and Animal
Industry
United States
Norris E. Dodd, Under Secretary of Agriculture
Bennett T. Simms, Chief, Bureau of Animal Industry,
Agricultural Research Administration, Department
of Agriculture
Don Stoops, Assistant Agricultural Attach^, American
Embassy, Mexico City
The director and the co-director will also serve,
ex officio, as members of the administrative board.
Importance to the United States
The purpose of the new office is to eradicate foot-
and-mouth disease from Mexico, and thereby also
to i^rotect the great livestock industry of the
United States. In January 1946 there were within
United States boundaries approximately 82 million
head of cattle, 61 million hogs, and 42 million
sheep, with an aggregate valuation of 8 billion dol-
lars. By the beginning of 1947, total value of these
livestock had risen to over 10 billion dollars.
The entire organization of agriculture in the
United States is closely integrated with the live-
Department of Sfafe Bulletin
I
stock enterprises, and the over-all efficiency of im-
portant sectors of our agriculture depends on the
ability of our farmers to ship feeder cattle, sheep,
or hogs freely from one region to another for fat-
tening or marketing, without fear of transmitting
serious livestock diseases in the pi'ocess.
Cattle, hogs, and sheep are all susceptible to foot-
and-mouth disease. The disease is very difficult
to combat and expensive to eradicate, once it gains
a foothold. The outbreaks that have occurred in
the United States in previous years have been of
virulent types and have resulted in heavy losses.
In countries where the disease is enzootic, losses
to farmers result not only from the death of ani-
mals but even more from reduced production of
dairy products and lower rates of gains on surviv-
ing cattle, hogs, or sheep.
Total value of production of beef, milk, pork,
mutton, and wool in the United States in 1945
amounted to about 9 billion dollars. With higher
prices in 1946, of course, the value of such produc-
tion was materially higher. At the 1945 rates,
even a 1 percent loss would thus amount to 90 mil-
lion dollars a year.
Outbreak of the Disease in Mexico
In Mexico the disease is reported to have broken
out first on a ranch near Veracruz early in Novem-
ber 1946. For a while it was believed to be vesicu-
lar stomatitis, which occurs rather frequently in
that area. However, it spread rapidly and suspi-
cion was soon aroused. The United States De-
partment of Agriculture was informed on Decem-
ber 18, 1946, and immediately sent two experienced
veterinarians to Mexico in order to cooperate with
Mexican authorities in diagnosing the infection.
Within a few days the condition was known with-
out question to be foot-and-mouth disease.
The Mexican Government immediately started
a control campaign. By this time, however, the
infection had spread into eight Mexican States,
and cases were reported in an area extending about
150 miles north and south and 300 miles east and
west from the city of Veracruz into the Valley of
Mexico. Several regiments of the Mexican Army
were pressed into service in order to maintain
quarantine lines, and various other control meas-
ures were adopted to try to keep the epidemic
within the region already affected. In spite of
these measures, some further spread continued,
until in late March the infected zone extended
from the State of Chiapas, which borders Guate-
April 20, 1947
ACTIVITIES AND DEVELOPMENTS
mala, to the States of Zacatecas and Aguascalien-
tes, which are 300 miles northwest of Mexico City.
One Mexican authority estimated that 500,000 cat-
tle had already contracted the infection by this
time.
Development of the Joint Cooperative Program
In late December 1946, Oscar Flores, Mexican
Under Secretary of Animal Industry, conferred
with officials of the United States Department of
Agriculture and the Department of State and re-
quested aid in procuring supplies and equipment
which the Mexican Government needed for the
campaign. At the same time Mr. Flores took the
first steps toward developing a cooperative eradi-
cation program between the two Governments.
The Mexican Government had divided the
country into three zones with regard to the epi-
demic. The first or infected zone included all the
area in which cases of the disease were known to
exist. The second zone comprised a buffer region
between this and the third, or uninfected, area.
Infected or exposed animals were to be destroyed
in the second as well as the first zone. In addi-
tion, all movement of animals between zones was
to be halted. The disease, however, continued to
spread, and during the following two months the
number of infected animals increased very rapidly,
especially in zone one, while a number of small
infected areas developed in what was intended to
be the buffer zone. Exposed and recovered ani-
mals continued to move through the markets of
Central Mexico into slaughterhouses in Mexico
City, Puebla, and Veracruz, and in addition, a
large proportion, perhaps a majority, of the dairy
animals in the Valley of Mexico became infected.
With this rapid spread, the Mexican Government
soon found itself unable either to slaughter all
infected or exposed animals or to indemnify their
owners.
At the request of the Mexican Government, a
subcommission of the Mexican-United States
Agricultural Commission went to Mexico to study
the situation and help the authorities there plan
a course of action. Following the report of this
subcommission, a meeting of the full Commission
was held in Washington on March 6, 1947. It was
decided that joint action between the two Govern-
ments would be necessary if the disease were
actually to be controlled or eradicated. In fact,
in anticipation of the need for such action, Con-
711
ACTIVITIES AND DBVEIOPMENTS
gi-ess had already passed a law authorizing such
joint action. This law was approved by President
I'ruman on February 28.
At the meeting of the Mexican-United States
Agricultural Commission on March 6, it was re-
solved that a joint office for eradication of the
diseiise should be established in Mexico City. It
was provided that the office should have a Mexican
director and an American co-director. Provision
was also made for an administrative board, which
is to formulate general policies and procedures.
It is to consist of three Mexican members and three
members appointed by the United States Secretary
of Agriculture. Since the livestock industry both
in the United States and m Mexico is deeply inter-
ested in the eradication of the disease, the Commis-
sion also proposed that there should be advisory
committees, consisting of representatives of inter-
ested groups in each country.
The problem of finances still remained to be
solved. Consequently, at a meeting held in Wash-
ington on March 15, it was resolved that the two
Governments should make approximately equal
contributions for the fight against foot-and-mouth
disease until the end of June 1947.
Representatives of the Mexican Government
estimated that its' contribution during the initial
months of the campaign would amount to approxi-
mately $9,350,000. This sum includes the expense
of maintaining Mexican Army units on quarantine
lines, salaries of veterinarians and other Mexican
Government officials, labor and clerical work, and
materials and supplies, including disinfectants'.
The Governments of the two countries approved
the contents of these two sets of resolutions by ex-
changes of notes on March 17 and March 18 ; these
notes became the basis of cooperation from that
time on. Meantime, the Congress of the United
States, recognizing the gravity of the situation,
gave full support to the campaign and in late
March appropriated the sum of $9,000,000 as the
United States contribution for the period ending
June 30, 1947.
It is not possible to anticipate exactly what ex-
penses will be involved during the 1947-48 fiscal
year or in subsequent periods. The two Govern-
ments, however, intend to stamp out the disease as
quickly as possible. It is believed that the Mexi-
can Government will not be able to increase the
rate of its contribution materially over that of the
spring months of 1947. The United States Gov-
712
ernment may, however, increase its' portion of the
expenditures in order to push the campaign to
the earliest possible conclusion.
Some Problems of the Campaign
Eradication of foot-and-mouth disease in Mexico
is likely to prove difficult for several reasons. In
the first place, the area already covered by the
infection is large, as was mentioned above. One
large portion of the infected zone consists of the
densely inhabited Valley of Mexico. Part of the
region consists of jungle along the coast of Vera-
cruz. Other areas are rough or mountainous.
Some of the animals infected or exposed to the
disease are owned by large ranchers. Others con-
sist of a few cows, goats, or pigs owned by small
farmers. In addition, the deer and wild pigs in
the Veracruz region are susceptible to the disease,
and are capable of spreading the infection. These
will be very difficult to exterminate.
Another difficulty is the fact that oxen consti-
tute the principal source of farm power in the
infected zone. It will be necessary to eliminate
these as weU as the other cattle. This means that
farmers must be assisted in obtaining tractors,
horses, or mules to do their farm work. Equines
are not susceptible to foot-and-mouth disease.
Furthermore, all dairy cattle in the infected
zone will have to be destroyed, and new sources of
milk must be found for Mexico City, Puebla, and
Veracruz, as well as for smaller towns and villages.
Such measures as these completely upset a large
sector of the agi'icultural economy of the affected
regions. Hence, there are many problems of pub-
lic relations. It is extremely important both to
obtain the willing cooiieration of livestock owners
and to assist them in reestablishing their farms
on a temporary basis until it is safe to reintroduce
cattle, sheep, and hogs.
It is expected that the campaign will cost the
United States Government much more than the
$9,000,000 which it has already made available.
However, the value of the U.S. livestock industry
is so great and the danger of infection is so serious
that it would be profitable in the long run to spend
many times this amount in order to avert a con-
stant danger of infection in this country. Fur-
thermore, prompt and vigorous action will prove
economical in the long run, before the disease has
an opportunity to spread to the extensive cattle-
producing regions of northern Mexico.
Department of State Bulletin
PICAO South Pacific Regional Air Navigation Meeting
ARTICLE BY COL. CARL SWYTER
The fifth in a series of ten regional air naviga-
tion meetings being held by the Provisional Inter-
national Civil Aviation Organization ( PICAO )^
took place in Melbourne, Australia, February 4 to
22, 1947. Represented at this meeting, with voting
riglits by reason of having territory located in the
region, or providing or operating facilities or serv-
ices within the region, or operating civil air lines
in the region, were Australia, Canada, Chile,
China, El Salvador, France, the Nethei-lands, New
Zealand, the Philippine Republic, Portugal, the
United Kingdom, and the United States. In at-
tendance as observers were Belgium, Czechoslo-
vakia, Greece, and Switzerland. International or-
ganizations represented at the meeting were
PICAO, International Air Transport Association,
and the Federation Aeronautique Internationale.
The United States Delegation was made up of
14 official members and 25 advisers and observers
and included representatives from the Depa^rt-
ments of State, Commerce, War, and the Navy,
the Coast Guard, the Civil Aeronautics Board, and
Pan American Airways. Glen A. Gilbert of the
Civil Aeronautics Administration was the Dele-
gation chairman; Capt. A. S. Hayward, United
States Navy, was alternate chairman, and Col.
Carl Swyter, Army Air Forces, was technical sec-
retary. Principal committee spokesmen for the
United States were James Angier, Civil Aeronau-
tics Administration, for airdromes, air routes, and
ground aids; Clifford P. Burton, Civil Aei-onau-
tics Athninistration, for air-traffic control ; L. Ross
Hayes, Civil Aeronautics Administration, for com-
munications; Delbert M. Little, United States
Weather Bureau, for meteorology; Lt. Comdr.
J. D. McCubbin, Coast Guard, for search and
rescue; and Ray F. Nicholson, Civil Aeronautics
Administration, for Subcommittee No. 1 dealing
with general operational matters.
In accordance with the report of Subcommittee
No. 1, the meeting recommended that instrument
landing systems be installed at all regular and
alternate airdromes as soon as possible, but not
later than January 1, 1951, except where favorable
weather conditions make a landing aid unneces-
sary. It was agreed that VHF (very high fre-
quency) omni-directional ranges should be in-
stalled for short-range navigation as soon as prac-
ticable, but not later than January 1, 1951, and
that distance-measuring equipment should simi-
larly be installed where required for air-traffic
control or terrain reasons. Meanwhile, LF/MF
radio ranges and non-directional radio beacons
should be maintained and extended where neces-
sary. For long-range navigation, the meeting
reconamended that existing standard Loran chains
be maintained and extended where required, until
a long-range navigation aid which fully meets the
PICAO requirements is available, and that
HF/DF networks and LF/MF non-directional
beacons also be maintained and extended where
required. It was agreed that the necessary exten-
sion of existing facilities indicated above be com-
pleted for LF/MF radio ranges not later than
July 1, 1948, for non-directional radio beacons not
later than January 1, 1948, and standard Loran
for the China Coast area not later than July 1,
1949. Agreement was reached on standard instru-
ment approach and landing procedures to be
adopted as a guide for use with radio ranges, non-
directional beacons, and the PICAO standard
instrument landing system. It was agreed that
altimeter settings for navigation within the South
Pacific region should be 29.92 in. hg. or 1013.2 mbs.
over water and beyond 100 miles from regular
and alternate international airdromes. When over
land and 100 miles beyond the above airdromes
the altimeter setting shall conform to the national
usage of the country whose territory is being flown
over, and within 100 miles of the above airdromes
the altimeter settings shall be at sea-level pressure.
Agreement was reached on a composite system
of units of measurement which employs both the
English and metric systems, as well as the nautical
mile and knot. It was recommended that the
'As of Apr. 4, 1947, the Provisional International Civil
Aviation Organization (PICAO) became the International
Civil Aviation Organization (ICAO).
April 20, 1947
713
ACTIVITIES AND DEVBLOPMENTS
South Pacific Regional Manual should consist of
a single volume, and that distress and emergency
procedures be made a separate part of the manual
because it was considered that these procedures
comprise the most essential information that the
commander of the aircraft should possess for
ready reference. For an interim period, the
PICAO Regional Manual should not include a
detailed discussion of the radio navigation facili-
ties which are listed in the several national pub-
lications now in use but, in lieu, a reference should
be made in the manual to these publications and
how they may be obtained. The national publica-
tions referred to are —
ANFAC: published by the Department of Civil
Aviation. Melbourne, Australia.
JACSPAC: published by 71st AACS Group (APO 953,
c/o Postmaster, San Francisco, Califor-
nia), Hickam Field, T.H., U.S.A.
RACONA : published by the Netherlands East Indies
Army Air Forces, Batavia.
Regular land airdromes for long-, medium-, and
short-range operation were designated by the
meeting, as well as alternate airdromes for long-
and medium-range operation. These designa-
tions were based on existing and proposed land-
plane routes of member countries assembled. The
standard to which each airdrome designated for
international civil aviation should be brought was
indicated and it was agreed that each country
should immediately start to bring airdromes up
to these standards. It was noted, however, that
it might be some time before certain airdromes
could or should be brought up to the full standard
in view of the very light traffic frequency.
For air-traffic control, agreement was reached
on boundaries for flight-information regions, and
control areas were designated around principal
airdromes and along some of the routes where the
traffic density is comparatively heavy. It was
agreed that these route-control areas should be
50 miles wide except within 100 miles of airdromes,
where they should be 10 miles wide. Locations for
air-traffic control centers and airdromes requiring
approach control were also designated.
In the field of aeronautical communications, the
meeting recommended that manual point-to-point
radio circuits should be converted wherever prac-
ticable to high-speed radio teletypewriter, and that
714
this equipment should be standardized as soon as
possible. Domestic radio circuits should be re-
placed by line circuits. It was agreed that VHF
for aeronautical mobile communications should be
established as soon as possible at all regular and
alternate international airdromes. For VHF op-
eration, frequencies were recommended for air-
drome control, approach control, airport utility,
air carriers en route, and emergency. The HF and
MF emergency channels agreed on were 8280 k.c.
and 500 k.c. The Australia-New Guinca-Hahna-
heras area was considered by the meeting as the
most suitable for the conduct of the tests on low-
frequency Loran recommended by PICAO.
To meet the meteorology requirements of inter-
national civil aviation, the meeting considered it
essential that existing facilities be expanded by the
addition of six main meteorology offices located at
Shanghai, China; Noumea, New Caledonia; Ma-
nila, Philippines; Baucau, Portuguese Timor;
Guam; and Wake; three dependent meteorology
offices at Tontouta (New Caledonia) ; Espiritu
Santo (Condominium of New Hebrides) , and Mid-
way (U.S.A.) ; additional surface observation sta-
tions at Jarvis Island (U.S.A.) and Swains Island
(U.S.A.) ; additional upper air observation sta-
tions at Canton (China) or Hongkong (U.K.),
Tarakan, Koepang, and Merauke (Netherlands),
and Tutuila (U.S.A.) ; radio wind-observation
stations at Kemajoran, Soerabaja, Hollandia,
Macassar, and Ambon ( Netherlands) . The instal-
lation of automatic weather stations was consid-
ered important in view of the sparsity of weather-
reporting networks possible in certain areas of the
South Pacific region due to the wide expanse of
ocean area and to the fact that many of the islands
are uninhabited. Because of the high cost in-
volved in periodic visits to such automatic stations
for servicing, it was considered necessary to specify
the operational requirements for which automatic
weather-station equipment should be designed. It
was agreed that the equipment should operate a
minimum of six months unattended and should
observe, as a minimum, the wind direction, wind
speed, atmospheric pressure, and amount of rain-
fall between reports. It was also agreed that two
ocean weather stations are required between San
Francisco and Honolulu giving weather and other ■
services approximately 700 miles apart, and one 1
station between Guam and Manila. Although
agreeing to the need for these stations from a
Department of State BuUetin
meteorological point of view, the Delegations from
France, the United Kingdom, and the Netherlands
indicated that their countries could not share in
their cost of operation.
For search and rescue, the meeting agreed on
the location of 19 rescue-coordination centers
which were considered necessary to evaluate infor-
mation concerning aircraft in distress and to
utilize all available search and rescue facilities to
the greatest possible extent. The location for
search-and-rescue coordination subcenters and
rescue-alerting centers was also agreed on. Other
recommendations for search and rescue include
locations for very-long-range, long-range, me-
dium-range, and short-range search-and-rescue
aircraft, as well as surface-rescue craft. Search-
and-rescue procedures, including emergency pro-
cedures to be used by aircraft in distress, were also
agreed on.
The recommendations of the meeting concern-
ing procedures, facilities, and services have been
forwarded to the PICAO headquarters in Mont-
real for review and approval by the Interim
Council. After approval, each country concerned
will be formally requested by PICAO to imple-
ment the recommendations in accordance with the
action specified by the Interim Council.
Due to the expanse of the PICAO South Pacific
region, consisting largely of ocean with numerous
small islands, air routes in the region will have
relatively light traffic density. This situation pre-
sented some opposition to the position the United
States has maintained at all regional meetings,
that recommendations must be based on technical
considerations for safe, regular, and efficient oper-
ation and not on the financial capabilities of indi-
vidual countries to provide the services and facili-
ties required. It can be said, however, that the
agreements reached at this meeting, when imple-
mented, will fully meet the requirements of
international civil aviation.
Preparation for the South Pacific Regional Air
Navigation Meeting on behalf of the United States
was accomplished within the framework of the Air
ACTIVITIES AND DEVELOPMBNTS
Coordinating Committee's Technical Division.
The official delegation for the meeting was largely
made up from technical division and subcommittee
membership. The success of the United States in
gaining acceptance of a very high percentage of
its projDOsals can be attributed to the experience
and teamwork of the United States representa-
tives on the delegation and the completeness of the
preparation in Washington and Honolulu prior to
the meeting.
Armament Regulation— Coniinued from page 701
out collective security, we would not only be clos-
ing our eyes to a dangerous and troubled world;
we would be neglecting our responsibilities as a
member of the United Nations, and as a great
power, to assist in maintaining international peace
and security.
It is fitting to quote in this connection a passage
from President Truman's address to Congress on
March 12, 1947:
"To insure the peaceful development of nations,
free from coercion, the United States has taken
a leading part in establishing the United Nations.
The United Nations is designed to make possible
lasting freedom and independence for all its mem-
bers. We shall not realize our objectives, however,
unless we are willing to help free peoples to main-
tain their free institutions and their national in-
tegrity against aggressive movements that seek
to impose upon them totalitarian regimes. This
is no more than a frank recognition that totali-
tarian regimes imposed upon free peoples, by di-
rect or indirect aggression, undermine the founda-
tions of international peace and hence the security
of the United States."
The United States wants a lasting peace, a peace
with security for all. Its foreign policy is dedi-
cated to achieving this end through the United
Nations and, in achieving it, to achieving also,
and in the only way possible, effective regulation
and reduction of armaments.
April 20, 1947
715
THE RECORD OF THE WEEK
U.S. Urges Reconvening of Joint U.S.— U.S.S.R. Commission
NOTE FROM THE SECRETARY OF STATE TO THE
SOVIET MINISTER FOR FOREIGN AFFAIRS
Text of note sent hy Secretary Marshall to Soviet
Minister Molotov on April 9, 19Jfl, and released
to the press in Moscow on Api'il 11
I wish to call your attention to the situation in
Korea. The representatives of the Soviet Union
and the United States on the Joint U.S.-U.S.S.R.
Commission in Korea have been unable to make
progress toward the establishment of a Korean
Provisional Government. It has been nineteen
months since the Japanese surrender, yet Korea
has profited little. The country is divided into
two zones. The Soviet Commander in Northern
Korea has refused to permit freedom of movement
and free economic exchange between these zones.
This has precluded freely chosen political amal-
gamation of the Korean people and has resulted
in grave economic distress.
The policy of the United States toward Korea
has the following basic objectives :
(1) To assist in the establishment as soon as
practicable of a self-governing sovereign Korea,
independent of foreign control and eligible for
membership in the United Nations.
(2) To insure that the national government so
established shall be representative of the freely
expressed will of the Korean people.
(3) To aid the Koreans in building a sound
economy as an essential basis for their independent
and democratic state.
The United States, in the Cairo Declaration of
December 1, 1943, declared its determination that
in due course Korea should become free and inde-
pendent. The United Kingdom and the Republic
of China were parties to the same declaration.
The Cairo Declaration was specifically reaffirmed
by the Three Powers in the Potsdam Declaration,
which defined terms for the Japanese surrender.
The U.S.S.R. in its declaration of war on Japan
on August 8, 1945, declared its adherence to these
declarations.
Upon the surrender of Japan, United States and
716
Soviet forces accepted the surrender of Japanese
forces in Korea in the areas respectively south and
north of a line arbitrarily assigned for this pur-
pose, the thirty-eighth degree parallel. This line
of demarcation became in effect a boundary be-
tween zones of occupation. At the conference of
the Foreign Ministers of the U.S., the U.K. and
the U.S.S.R. in Moscow in December, 1945, the
serious consequences of the bizonal division of
Korea were discussed and an agreement regarding
Korea was reached and published in part three
of the communique of the conference. The Repub-
lic of China subsequently subscribed to this agi'ee-
ment.
On March 20, 1946, the Joint U.S.-U.S.S.R.
Commission a^Dpointed under the terms of the Mos-
cow Agreement met and began its task, as outlined
in the agreement, of assisting in the formation of a
provisional Korean democratic government as a
first step in assuring the establisliment of an inde-
pendent and sovereign Korean nation.
It was the hope of the Government of the United
States that speedy action would be taken by the
Joint Commission, a provisional Korean govern-
ment would rapidly be established, the unfortunate
results of the line of demarcation between the
United States and the Soviet forces would be over-
come and Korea could be started on the way to
attaining an independent and democratic govern-
ment.
Unfortunately the work of the Joint Commis-
sion became stalemated after a short time through
the failure to agree on the definition of the word
"democratic" as it pertained to the representatives
of the parties and social organizations mentioned
in the Moscow Agreement to be consulted by the
Joint Commission in its task of assisting in the
formation of a provisional government. As it be-
came evident that no agreement could be reached
at the time, the Joint Commission adjourned sine
die on May 8, 1946.
The United States Commander in Korea has
Department of State Bulletin
several times suggested to the Soviet Commander
that the Commission reconvene and get on with its
work.
However, the Soviet Commander has insisted on
a formula wliich would resirlt in eliminating the
majority of representative Korean leaders from
consultation as representatives of Korean demo-
cratic parties and social organizations, and has
reiterated this position in a letter to the American
Commander as recently as February 28, 1947. It
lias therefore been impossible to agree upon a basis
for reconvening the Commission.
Now in April 1947, almost sixteen months since
the agreement pertaining to Korea was reached in
Moscow, there has still been no real progress made
toward the implementation of that agi'eement.
In fulfillment of the intent of the Agreement and
Declaration made at Moscow in December 1945, the
Government of the United States desires to fur-
THB RECORD OF THE WEEK
ther the work of establishing a free and independ-
ent Korea without additional delay.
To this end I ask that our Governments agree
to instruct our respective Commanders in Korea
to reconvene the Joint Commission as soon as pos-
sible and charge it with expediting its work under
the terms of the Moscow Agreement on a basis
of respect for the democratic right of freedom of
opinion. I further suggest that a mutually accept-
able date during the summer of 1947 be fixed for a
review by the two Governments of the progress
made to that date by the Joint Commission. In
the meantime, the United States, mindful of its
obligations under the Moscow Agreement, sees no
alternative to taking without further delay such
steps in its zone as will advance the purposes
of that agreement.
I am furnishing copies of this letter to the Brit-
ish and Chinese Governments.
Japanese Vessels Available for Delivery to
U.S., U.K., U.S.S.R., and China
STATEMENT BY ACTING SECRETARY ACKESON
[Released to the press April 11]
The Govei'nments of the United States, United
Kingdom, U.S.S.R., and China, in accordance with
their declaration at Moscow on October 30, 1943,
'That those of them at war with a common enemy
will act together in all matters relating to the
surrender and disarmament of that enemy", agreed,
following the surrender of Japan, that all sub-
marines and large surface vessels, above destroyer
size, of the Japanese Navy would be destroyed and
that destroyers and surface combatant vessels of
lesser tonnage would be divided equally among the
four powers.
The Supreme Commander for the Allied Powers
was therefore directed by the United States Gov-
ernment to destroy all combatant vessels of the
Japanese fleet with the exception of destroyers and
surface vessels of lesser tonnage. The scrapping
of these vessels is proceeding according to plan.
The Supreme Commander has found it necessary
in carrying out his responsibilities as executive
authority for the Allied powers in Japan to utilize
temporarily for repatriation, mine-sweeping, and
other occupation duties certain of the combatant
vessels to be divided among the four powers. It
has been understood that these ships would be made
available for delivery as soon as they were no
longer needed for occupation duties.
Additional Japanese naval vessels falling within
the category to be divided among the four powers
have been wrecked or cannot be rendered operable
within a period of 60 days. These vessels will be
scrapped.
SCAP has indicated that certain of these com-
batant vessels are now available for division, and
the United States Government has communicated
to the Governments of the United Kingdom,
U.S.S.R., and China full details with regard to
these ships. As of February 24, 1947, 239 Japanese
combatant vessels of destroyer tonnage or less were
opei-able or could be made operable within a period
of 60 days. General MacArthur has stated that,
of these, 140 are now ready for delivery.
It is intended that an equal division of the ships
available for delivery will be accomplished by the
drawing of equivalent lots in Tokyo by the desig-
nated representatives of the Governments con-
cerned. Inspection of the vessels by the represen-
tatives of the claimant nations prior to their deliv-
ery will be facilitated by SCAP. All ships have
April 20, 1947
71 r
THE RECORD Of THE WEEK
been demilitarized and all items of military equip-
ment destroyed.
Each claimant nation will designate a port in the
Far East to which the vessels will be delivered.
Japanese crews will be provided for the vessels.
The United States Government will notify the
other Governments concerned as soon as additional
vessels become available for delivery.
Arrangements Made for Commercial
Banking in Japan
[Released to the press April 9]
The Department of State announced on April 9
that the Supreme Commander for the Allied
Powers in Japan will establish commercial ac-
counts with American and foreign banking institu-
tions when and as needed in connection with the
administration of the dollar proceeds of Japanese
exports to countries other than the United States.
It was explained that heretofore the sole deposi-
tory of dollar jDroceeds of Japanese exports con-
sisted of a trust-fund receipt account established
within the framework of the Army accounting
system. This account was designed primarily to
handle financial transactions involving trade be-
tween Japan and the United States and is not
readily adaptable to financial transactions arising
out of trade with other countries. The need for
commercial banking facilities of this nature arises
out of the expansion of Japanese foreign trade
with all areas capable of supplying Japan with
food and raw materials and in which profitable
markets for Japanese exports may be found.
State Department officials indicated that since
the National City Bank of New York is the only
American bank operating a branch office in Japan
at present, it is likely that the first commercial ac-
count of this nature to be opened by SCAP Head-
quarters will be with that institution. It is ex-
pected, however, that, as the volume of Japanese
foreign trade grows, commercial accounts will be
opened with other American banks and with for-
eign banks in keeping with this Government's
policy of utilizing on a non-discriminatory basis
the services of any qualified institution interested
in acting as a depository of dollar funds arising
out of Japanese foreign trade.
718
Philippine Foreign Affairs
Training Program
A fifth group of Filipinos, participating in the
Philippine Foreign Affairs Training Program of
the Department of State, began its course of in-
struction on April 7.
The program was inaugurated in December
1945 to aid the Commonwealth of the Philippines
to train its future diplomats. It was continued
after Philippine independence at the request of
the Government of the Republic of the Philip-
pines. The expense of the program is borne en-
tirely by the Philippine Government, and the
program is imder the central supervision of the
Division of Philippine Affairs of the Department
of State.
The new group of trainees numbers fifteen and
is composed of men with outstanding educational
and professional backgrounds who were selected
by the Philippine Government after stiff competi-
tive examinations. The trainees will attend the
regular officer-training courses of the Foreign
Service Institute and then undergo a period of
special training in which the home-office side of
foreign relations will be emphasized.
The course extends three and one-half months.
At its termination, selected members of the group
will be assigned to American Foreign Service es-
tablishments abroad for observation and prac-
tical training in the field.
Two recent graduates of the course were detailed
to the American Embassies in London and Paris
on completion of their training, and several others
who now hold positions in the Philippine Foreign
Service and Department of Foreign Affairs were
assigned to the American Embassies in Mexico
City, Ottawa, and Habana and to the Consulate
General of Sydney.
A majority of the members of the Philippine
Foreign Service at the present time have received
training under the program. The United States
Government hopes to contribute in this manner
to the creation of a foreign-affairs establishment
for the Philippine Republic which will play a
significant role in world affairs and cement further
the close ties now existing between the two
countries.
Department of State Bulletin
Agriculture Situation in the
Philippines
[Released to the press April 9]
C. A. Boonstra, former Agricultural Attache,
American Embassy, Manila, has reported to the
Department of State on the current agriculture
situation in the Philippines, with particular em-
phasis on the major agricultural crops of copra,
abaca, sugar, and tobacco. His report was based
on extensive travel and research in the field. Mr.
Boonstra is in Washington pending x-eassignment
as Agricultural Attache, American Embassy, San-
tiago, Chile. His report is summarized below :
Copra. The outstanding feature with regard to
copra is the remarkable recovery of that industry
since the end of the war. This recovery is not so
amazing if one considers the fact that the supply
of coconuts available for copra production was
actually greater after the termination of the war
than it was before the war. The major problems
which confronted the recovery of the copra indus-
try were getting the workers back on the job and
overcoming the critical transportation situation.
With a production of 650,000 long tons of copra
last year and an estimated production of 750,000
long tons this year, the outlook of the copra indus-
try is particularly encouraging. Of the 1947
yield, it is estimated that about 100,000 tons will
be crushed in the Philippines. At the present
time only one large crusher is in operation.
However, the Philippine Refining Company
(Lever Brothers), one of the largest crushing
companies, expects shortly to open new plants.
The following facts could conceivably affect the
available quantity of exportable copra for the
forthcoming year: (1) the price of hemp might
rise sufficiently to divert labor in dual-crop areas
into that field; and (2) foodstuffs may again
become scarce, requiring a diversion of labor into
that field.
Aiacd. The production of abaca last year was
almost 110,000,000 pounds (all grades), which is
roughly one third of the 350,000,000 pounds yearly
pre-war production rate. There is, however,
enough Manila hemp in the Philippines so that if
it were fully utilized and efficiently stripped, the
productive yield could be raised to approximately
250,000,000 pounds for 1947. One of the reasons
for the low output last year was the failure to strip
abaca extensively until the price rises in August
April 20, 1947
THE RECORD OF THE WEEK
and November. The Davao region, the principal
abaca-producing section before the war, produced
about 60,000,000 pounds last year. This relatively
low output is explained by the fact that the former
Japanese plantations in the Davao region were
abandoned during the war. For the long-range
outlook, it might be more economical to plant
virgin lands than to attempt to clear and replant
the old Japanese plantations.
Sugar. Of the 41 pre-war sugar mills, 15 will
be in operation this year. The pre-war sugar ex-
ports were almost 1,000,000 short tons. The 1947
production will be under 100,000 tons, which is
not sufficient for domestic requirements. It is esti-
mated that the production in 1948 may provide
150,000 to 200,000 short tons for export. It is the
intention of 32 mills to rebuild and claim full
quotas of cane. The general feeling in the sugar
industry is that it will be profitable to rebuild
under the terms of the Bell act, because the
Philippines is the only sugar-producing country
having a guaranteed market. The question as to
whether the quotas belong in the mills or to the
planters has not been resolved and has precipi-
tated a division of crops on a 65 to 35 ratio for
the planters, in lieu of the former 50-50 division.
Tohacco. The tobacco industry is probably in
the most critical condition of any in the Philip-
pines. It is believed, however, that tobacco pro-
duction may be back to the pre-war level within
the next year. The big jDroblem confronting this
industry is the lack of a tobacco market. The
formerly profitable cigar industry is handicapped
by a high cost of hand production and is unable
to compete for the United States market. The
lack of factories, which were destroyed by the war,
has contributed to the chaotic condition of the in-
dustry. The National Tobacco Corporation has
maintained a policy of subsidizing tobacco prices
at a high level in order to protect the destitute
Cagayan Valley farmers, with the resulting dan-
ger of losing the entire foreign tobacco market
and even the local Philippine market.
Letters of Credence
1 raq
The newly appointed first Ambassador of Iraq,
Ali Jawdat, presented his credentials to the Presi-
dent on April 11, 1947. For the text of the Am-
bassador's remarks and the President's reply, see
Department of State press release 311 of April 11.
719
THE RECORD Of THE WBBK
S.S. "Martin Behrman" Incident
[Released to the press March 21]
The Department of State, recognizing the
amount of public interest aroused by the case of
the American vessel, S.S. Martin Behrman, which
is under detention by Netherlands Indies author-
ities at Batavia, makes the following announce-
ment with respect thereto.
The Department considers, on the basis of pres-
ent evidence, that the Netherlands Indies Govern-
ment has acted within its legal rights with respect
to the action taken towards the Martin Behrtnan,
and its cargo.
Nevertheless, following conversations between
the two Governments in the spirit of the tradi-
tionally cordial relations between our two peoples,
the Netherlands Government has agreed to a set-
tlement of the issue which will permit the Mar'tin
Behrman to sail for the United States with a cargo
of the commodities which she originally intended
to pick up, with fair compensation to the Isbrandt-
sen Company as carrier, and with reimbursement
to that company for extra charges resulting from
the delay. The settlement does not compromise
Netherlands Indies law, but minimizes any losses
to the Isbrandtsen Company arising from the fact
that new trade regulations were promulgated while
the vessel was en route to Cheribon.
Note. On February 5, 1947, the S.S. Martin Behrman,
a Liberty ship owned by the Maritime Commissiou and
under charter to the Isbrandtsen Company of New York,
arrived off the Indonesian-held port of Cheribon, Java,
to pick up a cargo of rubber, sugar, and other commodi-
ties under an agreement with the Perseroan Bank, an
Indonesian organization. The vessel's arrival marked
the first attempt to establish direct trade between Indo-
nesian-held territories and the United States. Since the
war a large trade had developed between these territories
and Malaya. Much of this trade was regarded by the
Dutch as smuggling on the grounds that cargoes consisted
of "estate produce" (products of plantations owned by
absent Netherlanders or other Europeans).
Before the Martin Behrman had left Manila for Cheri-
bon, the Isbrandtsen Company had asked the advice of the
Department of State concerning the proposed transaction.
The Department advLsed the company that, because of
the uncertainty of the ownership of cargoes available
at Indonesian-held ports, the Netherlands Government was
opposed to direct trade between these ports and the outside
world, except with the approval of the Netherlands East
Indies Government. The Department also emphasized
its recognition of Netherlands sovereignty over the entire
archipelago. Later, however, the company obtained the
approval of the Netherlands Indies Trade Commissioner
and of the Netherlands Embassy to the transaction on the
condition that export duties would be paid and reasonable
720
Conversations With Iranian
Purchasing Mission
[Released to the press April 10]
An Iranian purchasing mission, consisting of
Major General A. Hedayat, Brigadier General M.
Mazhari, and Captain Saleh, has just arrived to
resume conversations begun in Washington last
October concerning the possibility of the pur-
chase by Iran of surplus United States military
equipment. Colonel A. Moarefi, who has remained
in Washington since assisting Brigadier General
Mazhari here last fall, will also be a member of
the mission.
It was agreed in principle last December that
this Government would sell to the Iranian Army
and gendarmerie, through routine arrange-
ments with the Office of the Foreign Liquidation
Commissioner, reasonable quantities of military
suiDplies for the purpose of maintaining internal
security within Iran. On the basis of that agree-
ment, the Iranian Government has reviewed care-
fully the essential needs of its security forces and
is now expected to present to the Foreign Liquida-
tion Commissioner a list of minimum requirements
for its military establishment.
evidence of title should be obtained. On this basis the
Department interposed no further objection, advising the
company that the transaction was undertaken at the com-
pany's own risk and responsibility.
On January 28, however, one week before the Martin
Behnnan reached Cheribon, new trade regulations were
published by the Netherlands Indies Government, making
illegal the export from Indonesian-held ports of rubber,
sugar, and other commodities which on prima facie evi-
dence could be considered estate produce, except on per-
mits of the Netherlands Indies Government. The De-
partment was informed of the issuance of these regula-
tions on February 4 and immediately advised the Isbrandt-
sen Company to adhere to all Netherlands East Indies
regulations. The Netherlands Embassy in Washington
similarly advised the company, and the United States
Consul General in Batavia telegraphed the ship's master.
The company gave assurance that it would abide by the
regulations.
Nevertheless, upon instructions from the Isbrandtsen
Company, the master of the ship proceeded to load his
cargo of rubber and sugar. After completing the loading
on March 1, the Martin Behrman was ordered by the
Dutch autliorities to sail to Batavia. On March 7 a
Dutch party came aboard with an order to seize the cargo
and asked the master's cooperation in discharging it. He
demurred, whereupon Dutch soldiers and marines were
placed aboard the vessel and the unloading was begun,
under court order. The Isbrandtsen Company threatened
to file a claim for $10,000,000 against the Netherlands
Indies Government.
Department of State Bulletin
American Interest in Proposed International Trade Organization
STATEMENT BY ACTING SECRETARY ACHESON <
[Released to the press April 8]
On the occasion of Mr. Clayton's departure for
Geneva, I would like to point out once more why
the Department of State has gone "all out" in
support of the International Trade Organization.
As you gentlemen know, the Department about
a year ago put forward a proposal for world trade
and prosperity, as a post-war amplification of Mr.
Hull's highly successful reciprocal-trade program
which began back in 1933. Following up its trade
proposals the Department, in cooperation with
other interested agencies of the Government,
drafted a proposed charter for freer world trade.
Mr. Clayton is chairman of the American Dele-
gation to the Geneva conference of 18 nations
which will seek to complete a draft of a charter
for the proposed ITO. His mission is significant,
for the ITO, if successful, will be one of the firmest
stones in the foundation of the U.N.
It has been often said that one of the main causes
of the failure of the League of Nations was lack of
any provision for international economic coopera-
tion.
That mistake must not be repeated in the U.N.
In the light of past history and future need, the
task of Mr. Clayton and his colleagues from 18
representative trading nations is a challenging
one. I am confident that the Geneva conference
will mark a turning point in world trade and eco-
nomic prosperity and will bi'ing us closer to the
enduring peace we all want so much.
Summary of Informal Hearings on Proposed Charter for ITO
MEMORANDUM TO ACTING SECRETARY ACKESCN FROM ASSISTANT SECRETARY THORP 2
Enclosed is the final report on the hearings held
under the auspices of the Executive Committee on
Economic Foreign Policy during the period Feb-
ruary 24-March 14 on the proposed Charter for
an International Trade Organization. In trans-
mitting the report, I should like to invite your
attention particularly to the following considera-
tions :
The hearings marked the first time that the pro-
posed Charter had been taken to the counti-y in an
effort to obtain a cross section of national opinion
with respect to the objectives and principles of an
International Trade Organization, and to receive
suggestions for its improvement.
Two hundred and forty-five persons presented
their viewpoints at the Charter hearings which
were held in seven strategically located cities.
Only twenty-one of those appearing were non-
committal : that is, expressed neither appi'oval nor
disapproval of the Charter. Two hundred and
eight endorsed its principles and objectives. Six-
teen expressed general opposition. Thus the ratio
of those expressing an opinion stood at thirteen to
one in approval of the objectives set forth in the
proposed Charter.
A number .of constructive suggestions were
offered to the Interdepartmental Committee, which
conducted the hearings. These suggestions reflect
careful consideration by many individuals and
organizations representing a broad area of Ameri-
can social life and economic activity.
The Executive Committee on Economic Foreign
Policy is now completing a series of meetings in
which the Charter is being analyzed, provision
by provision, in the light of the suggestions re-
ceived. The results of these deliberations will be
transmitted to the United States Delegation for
its guidance at the Second Meeting of the Pre-
paratory Committee for an International Con-
ference on Trade and Employment to be held in
Geneva, Switzerland, beginning April 10, 1947.
* Made to press and radio correspondents at his press
conference on Apr. 8, 1947.
' Released to the press Apr. 13, 1947. Willard L. Thorp
is Assistant Secretary of State for economic affairs.
April 20, 1947
721
REPORT ON INFORMAL HEARINGS ON PROPOSED CHARTER FOR AN INTERNATIONAL TRADE
ORGANIZATION, FEBRUARY 25-IV!ARCH 12, 1947 >
Background of Hearings
In order to afford all interested persons and
groups an opportunity to present their views and
to make suggestions for improvement, the Execu-
tive Committee on Economic Foreign Policy de-
cided on December 27, 1946, to sponsor a series
of informal hearings throughout the nation on the
Preliminary Draft Charter for an International
Trade Organization. The hearings were sched-
uled for two-day sessions in each of seven cities :
Boston, Chicago, Denver, New Orleans, New York,
San Francisco and Washington.
United States Department of Commerce field
officers were given general responsibility for mak-
ing arrangements for the hearings in each city.
In addition to physical facility az'rangements,
they gave full local publicity to the hearings
through the press, radio and contacts with busi-
ness, farm, labor, civic and other organizations.
Early in February, a Department of State repre-
sentative visited each of the cities for two or three
days to assist in assuring that all interested persons
were afforded an opportunity to present their,
views.
Members of the Panels who were sent out to
conduct the hearings in each city were drawn from
all Government agencies represented on the Ex-
ecutive Committee on Economic Foreign Policy.
Interested persons and organizations were in-
vited to present their views orally or in writing.
Each person wishing to appear at the hearings
was requested to notify the Executive Committee
on Economic Foreign Policy sufficiently in ad-
vance of the heai'ings to enable the Executive
Secretary of the Committee to schedule appear-
ances. Persons who failed to notify the Execu-
tive Secretary in time to be scheduled were asked
to arrange for their appearance with the Secre-
' See Department of State press release 314 of Apr. 14 for
the following .ittaehnients to the report: Panel members
assigned to each of the hearings cities ; Distribution of
organizations and persons presenting oral views at ITO
hearings ; Attitudes expressed toward proposed ITO char-
ter at hearings (by organization) ; Organizations which
presented their views on the proposed ITO charter ; Organ-
izations saying little or nothing about proposed charter, but
expressing concern with respect to their own interests;
and Organizations generally opposing the ITO.
tary of the Hearings Panel at the time of the
hearings. In most cases it was possible to work
these persons into the prearranged two-day sched-
ule. In San Francisco, however, it was necessary
to schedule an additional half-day session.
Hearings Procedure
The time allotted each person for presentation
of views varied from city to city, being determined
by the Panel Secretary after the total number of
persons to be heard was known. Moreover, there
was considerable variation in the length of time re-
quired by witnesses; some required no more than
five or ten minutes; most needed between fifteen
and twenty minutes; a few required the greater
part of an hour for presentation of their views. In
all cases, the Panel sought to hear everything any
person had to say.
Presentation of oral views varied in character
also. Some persons read from prepared state-
ments ; other spoke from notes. Many used a part
of their scheduled time to raise questions relating
to the Charter with Panel members. Informality
and freedom of expression were encouraged. In
only one respect was testimony limited. Because
of their limited jurisdiction, the Panels did not
entertain discussion relating to specific tariffs on
specific commodities.
At the end of each person's statement, Panel
members frequently asked questions to clarify is-
sues raised or made statements to correct misunder-
standing.
Summary of Appearances
Two hundred and twenty-three persons, repre-
senting almost every type of economic, civic, labor
ajid religious organization, orally presented their
views on the proposed Charter during the course
of the hearings. San Francisco led the list with
forty-nine personal appearances. New York was
next with forty-five; Boston with thirty-five;
Washington, twenty-eight; New Orleans, twenty-
four; Chicago, twenty-two; and Denver, twenty.
Business and professional associations (includ-
ing cooperative and farm organizations) were most
numerously represented at the hearings, with 109
persons appearing in their behalf. Civic organi-
zations were represented by 41 persons. Individ-
722
Department of State Bulletin
ual business establishments were next with 24 rep-
resentations. Representatives of labor, consumer,
religious and veterans' organizations were repre-
sented by seventeen, six, eleven, and two persons
respectively. Other presentations were made by a
mayor, educators, students, and Port Authority
representatives.
Witnesses appeared on behalf of fifty national
organizations. Of these, twenty-seven were busi-
ness and farm organizations; twenty-three were
civic, labor, consumer, religious and veterans' or-
ganizations.
Geographically, witnesses were drawn from
twenty States - and the District of Columbia.
Attitudes Expressed Toward Proposed Charter
Aside from the indication of widespread sup-
port from every type of organization for the pro-
posed Charter for an International Trade Or-
ganization, the most impressive revelation at the
hearings was the amount of careful study that
witnesses had given to the proposed Charter.
Critical evaluation was evident and thoughtful
suggestions were contained in the testimony of
the vast majority of persons and organizations
who presented their views. There were, to be sure,
many suggestions and criticisms but for the most
part these were made in the spirit of improving
the proposed Charter.
Two hundred and forty-five oi'ganizations and
persons expressed their views on the proposed
Charter orally or in writing. Of these two hun-
dred and eight endorsed the principles and ob-
jectives of the proposed Charter. Over one hun-
dred and fifty endorsed the Charter almost with-
out qualification. Only sixteen witnesses took a
position in general opposition to the Charter.
General approval of the proposed Charter, with
little or no qualification, came from representatives
of almost every type of economic and civic organi-
zation. In this group, individual business estab-
lishments and business and farm organizations
were most numerous — 74 of 165 — but equally
strong support was given by civic, religious, labor,
consumer and veterans' organizations. The testi-
mony of most of this group indicated that their
statements were prepai-ed only after careful study
of the document under consideration.
Typical of many organizations of its kind, the
San Francisco Chamber of Commerce expressed
"its keen desire for the success of the negotiations
THB RECORD OF THE WEBK
which will shortly be undertaken to complete the
drafting of the Charter and to establish the Inter-
national Trade Organization as an organ of the
United Nations."
Anna Lord Strauss, President of the League of
Women Voters of the United States, indicated her
organization's "wholehearted support for United
States leadership in a broad program of expanding
world trade and employment". After referring to
their previous support of the International Bank
and Monetary Fund, and the Food and Agricul-
ture Organization, she said "By Convention ac-
tion, the League is supporting an International
Trade Organization as a necessary part of this
total economic program."
Speaking in behalf of the Congress of Industrial
Organizations, Michael Ross said his organization
"supports without reservation the effort to set up
an International Trade Organization ... as
an essential part of the machinery required to
accomplish the purposes of the United Nations
Charter".
Mr. Charles P. Taft, President and speaking in
behalf of the Federal Council of Churches of
Christ in America, observed that opponents of the
Program offer no alternative —
". . . except the adoption of the methods of
State Foreign Trading and bilateral 'Yankee'
deals which were developed if not invented by the
Nazis, for the purpose of waging economic war-
fare during the period between the Great Wars.
"That alternative is in effect the adoption of
state socialism in foreign trade, and will drive us
to a considerable measure of state socialism at
home.
"The middle ground is the only real possibility,
a goal of many-directional commerce around the
world as free as jDracticable, of private and gov-
ernmental restrictions, but conceding whatever is
shown to be absolutely necessary to meet the actual
situation of these war devastated economies of our
allies and our friends.
"The proposed International Trade Organiza-
tion is just that, and is therefore in effect, the only
possible way in which we can go."
Forty-three persons expressed general approval
^Alabama, California, Colorado, Connecticut, Illinois,
Indiana, Kentucliy, Louisiana, Massachusetts, New Jersey,
New York, Ohio, Oregon, Pennsylvania, Rhode Island,
Tennessee, Texas, Utah, Washington and Wisconsin.
April 20, 1947
723
THE RECORD OF THE WEBK
of the proposed Charter on behalf of their or-
ganizations, but made several specific suggestions
or expressed reservations with respect to certain
aspects of the Charter. Twenty-nine of these rep-
resented business and farm associations. In' al-
most all of these cases, the suggestions were de-
signed to implement the principles and objectives
of the Charter ; not to weaken them.
The American Farm Bureau Federation, for
example, pointed to its long record in favor of
international economic cooperation and cited in
support a resolution passed by their annual meet-
ing held in San Francisco in December 1946. "I
am convinced", President O'Neal said, "that the
establishment of this proposed International Trade
Organization offers an opportunity to conduct in-
ternational trade more nearly on a basis in line
with our ideals of free enterprise than could be
possible otherwise".
President O'Neal went on, however, to make a
number of thoughtful suggestions with respect to
the Charter. He indicated, for example, his or-
ganization's belief that "the Charter should be
drawn in such a manner that export subsidies on
certain basic agricultural products could be used in
the event that it is necessary to prevent widespread
chaos in some of our basic agricultural industries."
He expressed pleasure at the inclusion of Chapter
VII which deals with inter-governmental com-
modity arrangements, but raised a question about
the desirability, in Article 51, of giving importing
countries an equal voice with exporting countries.
Mr. O'Neal expressed concern about the httle em-
phasis in the proposed Charter upon using non-
governmental groups in an advisory capacity. On
the whole, the American Farm Bureau Federation,
like others in this group, supiDorted the program,
while at the same time making suggestions for its
improvement.
A third group of persons, twenty-one in all, had
little or nothing to say by way of approval or dis-
approval of the proposed Charter, but most of
them expressed some concern about the possible
impact of the proposed International Trade Or-
ganization on their own' industries. A few of this
group suggested the inclusion or more explicit
coverage of their own interests.
The California Walnut Growers Association, for
example, in its testimony said : "The basic assump-
tion [of the ITO] is that protective tariffs are
evils. This has serious implications for the Amer-
724
ican nut industries, and many others. Like the
reciprocal trade treaties, which always contem-
plate tariff cuts and never any increases, ITO is
to be a tariff reducing agency .... The
American walnut industry fears ITO because of
the very obvious threat to its tariff protection."
The National Bankruptcy Conference suggested
"that the International Trade Organization has a
unique opportunity at this time to write into its
charter a provision at one stroke . . . estab-
lishing equal treatment for all creditors in the
courts of nations participating in the organization
or subscribing to its principles".
Sixteen persons expressed general opposition to
the jjroposed Charter. Thirteen of these were
business associations; three were representatives
of individual establisliments. Eight of the sixteen
represented textile interests ; three, food products ;
one, shoe and leather; one, petroleum; one, ex-
porter and importer; one, shipping; and one, a
more general organization: the American Tariff
League.
Mr. Henry D. Molnar, representing Trans- Atlas
et Cie, Ltd., criticized the Charter as impractical
in all aspects and suggested that a new Charter
be formulated by representatives of Business and
Banking. The American Lace Manufacturers
Association referred to Chapter VII on inter-
governmental commodity agi-eements as a plan
for world collectivism. ■
The American Tariff League described the Char-
ter as "voluminous, wordy, difficult to study and
comprehend, and frequently ambiguous and lack-
ing in clarity." Further, the League observed,
"the Cliarter is confusing. It sets forth many
basic principles, and then proceeds to riddle them
with exceptions, so that it ends by blessing not
only the desirable world trade practices, but vir-
tually all the undesirable ones as well."
Written Views
Only five detailed wi'itten briefs relating to the
proposed Charter were submitted to the Executive
Committee on Foreign Economic Policy on behalf
of organizations which did not appear at the hear-
ings to present their views orally. There were, in
addition, however, seventeen letters, resolutions
and telegrams in response to the invitation in the
original press release announcing the hearings.
In sum, there were only twenty-two persons and
Deparfmenf of Sfafe Bulletin
1
organizations who chose to present their views in
writing rather than in person.
All of the written communications endorsed the
objectives and general structure of the proposed
International Trade Organization. Four of the
five written briefs, however, made specific sugges-
tions for modification of the proposed Charter.
Tlie remaining brief and the other written com-
munications endorsed the proposed ITO without
qualification. Most of the letters from individuals
did not indicate the degree to which the endorse-
ment resulted from careful study of the proposed
Charter.
Evaluation of the Hearings
The Executive Committee on Economic Foreign
Policy has been gratified by the results of the hear-
ings. Two or three things stand out. In the first
place, interest in constructive measures to assure
international economic cooperation was revealed
as considerably greater than had been supposed.
From this flowed the second revelation of impor-
tance: most of the persons who appeared at the
hearings had studied the proposed Charter with
care. Third, in every city visited by the hearings
Panels, deep satisfaction was expressed that the
Charter was taken to the public for examination
and criticism at this relatively early stage of its
development. Finally, and most important, many
thoughtful criticisms and suggestions for improve-
ment of the Charter were received. It was, of
course, exactly this that inspired the hearings in
the first place.
The Executive Committee on Economic Foreign
Policy is now completing a series of meetings in
which the many suggestions received at the hear-
ings have been carefully studied and evaluated.
The results of these deliberations will be trans-
mitted to the United States Delegation for its
guidance in the Second Meeting of the Prepara-
toi-y Committee for an International Conference
on Trade and Employment to be held in Geneva,
Switzerland, beginning April 10, 1947.
Industrial Property Agreement With
France Signed
[Released to the press April 8]
An agreement between the United States and
France concerning the restoration of certain in-
dustrial-property rights affected by World War
II was signed on April 4, 1947, by Acting Secre-
AprU 20, 1947
THE RECORD OF THB WBBK
tary of State Dean Acheson and Henri Bonnet,
Ambassador of the French Republic.
The agreement is designed to permit delayed
filing of patent api^lications, accomplishment of
formalities, payment of fees, and delayed renewal
of trade-mark registrations, which actions were
not possible during the war. Existing United
States statutes grant these extensions, based on
reciprocity. The agreement enables France to
grant such extensions reciprocally to citizens of
the United States.
It is provided in the agreement that a notice of
acceptance of the agreement shall be delivered
by each government to the other. The agreement,
in accordance with its provisions, will enter into
force on the date of the delivery of whichever
notice is the later in arriving.
The agreement was negotiated for the United
States by Acting Commissioner of Patents Leslie
Frazer and other officials of the Patent Office, in
collaboration with officers of the Department of
State. For France, the negotiation was carried
on by M. E. Mathon, Director of the French In-
dustrial Property Service, Ministry of Industrial
Production, and by officials of the French
Embassy.
Maine Ratifies Constitutional
Amendment
[Released to the press April 9]
The Department of State received on April 9
an authenticated copy of the ratification by the
Legislature of the State of Maine of the recently
proposed constitutional amendment relating to the
terms of office of the President.
The action of the Legislature of Maine was under
date of March 31, 1947.
This is the first formal notification received by
the Department, as required by law.
Finland Grants Commercial Air Rights
[Released to the press April 8]
The Government of Finland has authorized the
United States certificated air carrier, American
Overseas Airlines, Inc., to operate a commercial
air service between Finland and the United States
on a temporary basis pending conclusion of a
bilateral agreement between the two countries,
the Department of State announced on April 8.
It is expected that service will be inaugurated
by the American company in the early part of
May 1947.
725
Withdrawal of Obsolete Treaties From the Senate
MESSAGE OF THE PRESIDENT TO THE SENATE
[Released to the press by the White House April 8]
To the Senate of the United States :
Because of changed conditions affecting their
provisions since they were submitted to the Sen-
ate, a number of the treaties now pending in the
Senate have become obsolete. The situation with
respect to several other pending treaties would be
clarified if they were withdrawn for further study
and consideration in the light of developments
since they were formulated and, if found advis-
able, resubmitted with a fresh appraisal of their
provisions.
I therefore desire to withdraw from the Senate
the following treaties with a view to placing the
treaty calendar on a current basis :
Agreement between the United States of America
and Costa Rica regarding an interoceanic canal
across Costa Rican territory, signed at Wash-
ington February 1, 1923 (Executive B, 67th
Congress, 4th session).
International convention for the suppression of
the circulation of and the traffic in obscene pub-
lications, signed at Geneva September 12, 1923
(Executive M, 68th Congress, 2d session).
Protocol for the prohibition of the use in war of
asphyxiating, poisonous, or other gases, and of
bacteriological methods of warfare, signed at
Geneva June 17, 1925 (Executive G, 69th Con-
gress, 1st session).
Convention and protocol between the United
States of America and Canada for the preserva-
tion and improvement of the Niagara Falls,
signed at Ottawa January 2, 1929 (Executive
U, 70th Congress, 2d session).
Protocol of revision of the Statute of the Perma-
nent Court of International Justice (World
Court), signed at Geneva September 14, 1929;
protocol of signature of the Statute of the Per-
manent Court of International Justice, signed
at Geneva December 16, 1920 ; and protocol of
accession of the United States of America to the
Statute of the Permanent Court of Interna-
tional Justice, signed at Geneva September 14,
1929 (Executive A, 7lst Congress, 3d session).
726
Treaty between the United States of America and
Canada for the completion of the Great Lakes-
St. Lawrence Deep Waterway, signed at Wash-
ington July 18, 1932 (Executive C, 72d Con-
gress, 2d session).
Berne Convention of September 9, 1886 for the
protection of literary and artistic works, revised
at Berlin, November 13, 1908, and at Rome,
June 2, 1928 (Executive E, 73d Congress, 2d
session).
International Convention for the suppression of
the traffic in women of full age, opened for sig-
nature at Geneva October 11, 1933 (Executive
H, 74th Congress, 1st session).
Convention between the United States of America
and the Republic of Argentina with reference
to sanitary regulations concerning plant and
animal products, signed at Washington May 24,
1935 (Executive O, 74th Congress, 1st session).
International convention relating to economic
statistics and a protocol thereto, signed at
Geneva December 14, 1928 (Executive S, 74th
Congress, 1st session).
Convention between the United States of America
and the Republic of Panama for the regulation
of radio communications in the Republic of
Panama and the Canal Zone, signed at Wash-
ington March 2, 1936 (Executive C, 74th Con-
gress, 2d session).
International convention for the unification of
certain rules to govern the liability of vessels
when collisions occur between them, and a pro-
tocol thereto, signed at Brussels September 23,
1910 (Executive K, 75th Congi'ess, 1st session).
Draft convention (no. 56) concerning sickness
insurance for seamen, adopted by the Inter-
national Labor Conference at its twenty-first
session, held at Geneva October 6-24, 1936 (Ex-
ecutive Y, 75th Congress, 1st session).
Draft convention (no. 61) concerning the reduc-
tion of hours of work in the textile industry,
adopted by the International Labor Conference
at its twenty-third session, held at Geneva June
3-23, 1937 (Executive J, 75th Congress, 3d
session).
Department of State Bulletin
Draft convention (no. 63) concerning statistics
of wages and hours of work in the principal
mining and manufacturing industries, includ-
ing building and construction, and in agricul-
ture, adopted by the International Labor Con-
ference at its twenty-fouilh session, held at
Geneva June 2-22, 1938 (Executive L, 76th Con-
gress, 1st session).
[nternational sanitary convention, signed at Paris
October 31, 1938 (Executive J, 76th Congress,
3d session).
Convention for the establishment of an inter-
American bank, signed on behalf of the United
States of America May 10, 1940 (Executive K,
76th Congress, 3d session).
Convention between the United States of America
and the United Kingdom of Great Britain and
Northern Ireland providing for the exemption
of taxation on property or transactions con-
nected with defense, signed at Washington Oc-
tober 17, 1941 (Executive H, 77th Congress, 1st
session).
Siupplementary protocol concerning whaling
signed at London October 5, 1945 (Executive J,
79th Congress, 1st session).
Harky S. Tkusian
The White House
ApHl 8, 1947
Estate Tax Convention With South
\frica Signed
[Released to the press April 10]
A convention between the United States and the
Union of South Africa for the avoidance of double
;axation and the prevention of fiscal evasion with
■espect to taxes on the estates of deceased persons
vas signed at Capetown on April 10, 1947, by Gen-
iral Thomas Holcomb, American Minister to the
Union of South Africa, and Field Marshal Jan
Uhristiaan Smuts, Prime Minister of South
Africa.
The convention provides that it shall come into
:orce on the date of exchange of instruments of
•atification and shall be effective only as to
(a) the estates of persons dying on or after
such date and
(b) the estate of any person dying before such
date and after the thirtieth day of June 1944,
whose personal representative elects, in such
manner as may be prescribed, that the provisions
of the convention shall be applied to such estate.
ftpr.7 20, J 947
THE RECORD OF THE WEEK
The convention is similar in general to estate-
tax conventions of the United States with Canada
and the United Kingdom.
Protocol for Extension of
Coffee Agreement
[Released to the press April 4]
The President on April 1, 1947, proclaimed the
protocol for the extension of the Inter- American
Coffee Agreement for one year from October 1,
1946.^ The protocol was opened for signature at
the Pan American Union from September 3, 1946,
until November 1, 1946, and during that period
was signed for the Government of the United
States of America (subject to ratification) and for
the Governments of 14 other American republics.
The protocol was approved by the Senate on Feb-
ruary 21, 1947, and was ratified by the President
on March 7, 1947. The United States instrument
of ratification was deposited with the Pan Ameri-
can Union on March 19, 1947.
Bolivian Lawyer Visits U.S.
Miss Josefa Saavedra, a prominent lawyer of
Bolivia, is visiting the United States at the invita-
tion of the Department of State. She has been
awarded a travel grant under a program adminis-
tered by the Division of International Exchange of
Persons of the Department, to enable her to visit
juvenile courts, women's prisons, and homes for
delinquent children, and to confer with officials of
Government, public and private agencies, and
institutions in her field of interest. Wliile in the
United States Miss Saavedra also plans to visit
universities and educational centers.
Documents Salesroom
The Superintendent of Documents will open a
salesroom in Room 120, 1778 Pennsylvania Ave-
nue, NW., where Department of State publica-
tions may be purcliased and where a few publica-
tions of other agencies of the Government will
also be sold. Persons outside of Washington de-
siring to purchase Department of State publica-
tions should continue to order direct from the
Superintendent of Documents, Government Print-
ing Office, Washington 25, D.C.
' For an article on the subject by John K. Havemeyer,
see Bulletin of Mar. 2, 1947, p. a7S.
727
The Council of Foreign Ministers ^age
Moscow Meeting of the Council of Foreign
Ministers. Statements by the Secretary
of State:
Questions Relating to Germany:
Polish-German Frontier 693
The Ruhr 694
The Saar Territory 695
The Problem of Boundaries 696
The United Nations
Resolutions Adopted by ECOSOC Relating
to Narcotic Drugs. Article by George
A. Morlock 687
The Regulation of Armaments and Lasting
Peace. By Joseph E. Johnson 697
U.S. Membership and Participation in WHO:
The President's Letter of Transmittal 702
Memorandum From the Secretary of State. 703
U.S. Delegation to ICAO Air Traffic Commit-
tee for European-Mediterranean Region. 709
Economic Affairs
The Joint Campaign Against Foot-and-Mouth
Disease in Mexico. Article by John A.
Hopkins 710
PICAO South Pacific Regional Air Naviga-
tion Meeting. Article by Col. Carl
Swyter 713
Arrangements Made for Commercial Banking
in Japan 718
Agriculture Situation in the Philippines 719
Conversations With Iranian Purchasing Mis-
sion 720
American Interest in ITO. Statement by
Acting Secretary Acheson 721
Economic Affairs — Continued Pas*
Summary of Informal Hearings on Proposed
Charter for ITO:
Letter to Acting Secretary Acheson 721
Report on Informal Hearings 722
Occupation Matters
Interim Principles for Restitution of Identi-
fiable Property Confiscated in Japan
From Allied Nationals 708
U.S. Urges Reconvening of Joint U.S.-
U.S.S.R. Commission 716
Japanese Vessels Available for Delivery to
U.S., U.K., U.S.S.R., and China 717
General Policy
Letters of Credence : Iraq 719
S.S. "Martin Behrman" Incident. 720
Treaty Information
Industrial Property Agreement With France
Signed 725
Finland Grants Commercial Air Rights 725
Estate Tax Convention With South Africa.. 727
Withdraviral of Obsolete Treaties From the
Senate: President's Message to Senate.. 726
Protocol for Extension of Coffee Agreement. 727
Calendar of international Meetings 707
Educational, Scientific, and Cultural Co-
operation
Bolivian Lawyer Visits U.S 727
The Congress
Maine Ratifies Constitutional Amendment.. 725
The Foreign Service
Philippine Foreign Affairs Training Program. 718
Publications
Documents Salesroom 727
'^
Oeorge A. Morlock, author of the article on ECOSOC resolutions re-
lating to narcotic drugs, is Chief of the Narcotics Section, Division of
International Labor, Social and Health Affairs, Office of International
Trade Policy, Department of State.
John A. Hopkins, author of the article on foot-and-mouth disease in
Mexico, is Acting Head, Latin American Division, Office of Foreign
Agricultural Relations, Department of Agriculture. Mr. Hopkins is
Secretary of the U.S. Section of the Joint U.S.-Mexican Agricultural
Commission.
Colonel Carl Sivyter, United States Army Air Forces, author of the
article on the South Pacific regional air navigation meeting of PICAO,
served as Technical Secretary of the U.S. Delegation to that meeting.
U. S. GOVERNMENT PRINTING OFFICE: 1947
^rie/ ^eha/^{mzeni/ ,<w t/tate^
MOSCOW MEETING OF THE COUNCIL OF FOR-
EIGN MINISTERS : Questions Relating to Germany
• Statements by the Secretary of State .... 741
OUR DOMESTIC ECONOMY AND FOREIGN
AFFAIRS • by Assistant Secretary Thorp ....
758
CONTROL OF ARMS, AMMUNITION, AND
IMPLEMENTS OF WAR • The President's Message
to the Congress 750
THE ESTABLISHMENT OF THE COMMISSION FOR
CONVENTIONAL ARMAMENTS . Article by
James M. Ludlow 731
For complete contents see hack cover
Vol. XVI, No.
April 27, m?
^enx oj»
u, s. suPEPvifriEfican of bucj
MAY 12 1347
*^^^y... bulletin
Vol. XVI, No. 408 • PnBOCATioN 2813
April 27, 1947
For sale by the Superintendent of Doraments
U. S. Government Printing Office
Washington 25, D. C.
SoBscRiniON:
62 Issues, $5.00; single copy, 15 cents
Published with the approval of the
Director of the Bureau of the Budget
Note: Content? of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
or State Bulletin as the source will be
appreciated.
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-
natioTUil affairs and the functions of
the Department. Information con-
cerning treaties and interruitional
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 thefield of inter-
national relations, are listed currently.
THE ESTABLISHMENT OF THE COMMISSION
FOR CONVENTIONAL ARMAMENTS
&y James M. Ludlow
In order to promote the establishment and maintenance
of international peace and security with the least diver-
sion for armaments of the world's human and economic
resources^ the Security Council shall he responsible for for-
mulating . . . plans to be submitted to the Members
of the United Nations for the establishnient of a system for
the regulation of armaments.
— CHAKTER OF THE UNITED NATIONS
Article 26
On January 9, 1947, the United Nations Secur-
ity Council had on its agenda five items concerned
with the reguhition and reduction of armaments
and armed forces and the priority with which the
proposed regulation and reduction should be
effected. Separately the items dealt with particu-
lar aspects of the over-all problem. But as the
items were discussed disagreements developed over
the necessary conditions and methods of achieving
the solution of the problem. The critical issue
was whether the regulation and reduction of ar-
maments rests on conditions of international secu-
rity or whether disarmament in itself establishes
and contributes to international security.
The first item was a resolution unanimously
passed by the General Assembly December 14,
1946, entitled "Principles Governing the General
Regulation and Reduction of Armaments".' The
second was a General Assembly resolution,^ also
passed on December 14, 1946, calling upon the
Council to determine, as soon as possible, the in-
formation on armed forces which the member
states should be required to furnish to implement
the first-mentioned resolution. The third, a pro-
posed resolution ' introduced by the Soviet Repre-
sentative, Andrei Gromyko, urged the establish-
ment of a special conmiission which would be given
three months to make recommendations on the im-
plementation of the General Assembly's resolu-
tion. The fourth was a draft resolution ' presented
by the United States Representative, Herschel V.
Johnson, urging, pursuant to the General Assem-
bly's resolution, that the Security Council con-
sider and act upon the atomic-energy report as
soon as received, and recommending that only
thereafter should the Council discuss what further
practical measures it should take and in what pri-
ority the implementation of the General Assembly's
resolution should be carried out. The fifth was the
first report of the Atomic Energy Commission to
the Security Council.'
The Opposing Views of the U.S. and U.S.S.R.
These five documents provided the basis for the
discussions which led to the establishment of the
Connnission for Conventional Armaments. Al-
' See article on "Regulation and Reduction of Arma-
ments: Action of the General Assembly", Buixetin of
Feb. 23, 1947, p. 311. The resolution was transmitted to
the Security Council as S/231.
= S/230.
' S/229.
' S/233.
° AEC/18/Rev. 1. Tliis was transmitted to the Security
Council by S/239.
April 17, 1947
731
thougli the debates on these resolutions resulted
in eventual agreement on establishing a commis-
sion with specific terms of reference, the delibera-
tions disclosed that the United States and the
Soviet Union held opposing views on how the
regulation and reduction of armaments should
be achieved.
In these discussions the consistent position of
the United States was that conditions of interna-
tional security must be established before the regu-
lation and reduction of armaments and armed
forces can be effected. The position of the Soviet
Union was that the reduction and regulation of
armaments and armed forces are fundamental in
achieving international security and therefore
should come first.
The United States vigorously advocated that the
international control of atomic energy should be
considered as an essential first step in achieving
international security and repeated what Secre-
tary Byrnes had so clearly stated before the Gen-
eral Assembly on December 13, 1946 :
"In meeting the problems of disarmament first
things should come first. The first task which
must be undertaken is the control of atomic energy
to insure that it will be used only for human wel-
fare and not for deadly warfare.
"Let us concentrate upon these major weapons
and not dissipate our energies on the less impor-
tant problems of controlling pistols and hand
grenades.
"If we are really interested in effective disar-
mament, and not merely in talking about it, we
should instruct our representatives on the Atomic
Energy Commission to press forward now with its
constructive proposals." *
In conjunction with this view the United States
also held that the conclusion of the agreements
establishing the United Nations armed forces as
projected by article 43 of the Charter was another
important element in international security.
Such steps, it was stated, precondition the eventual
success of general regulation and reduction of
armaments and armed forces.
The position of the Soviet Union was in sharp
contrast with that of the United States. The
urgency of the problem was stressed but with no
' BuLiJSTiN of Dec. 22, 1946, p. 1138.
732
reference to the necessity of achieving interna-
tional security first. On the contrary, the Soviet
Union emphasized the importance of establishing
a commission to make findings and recommenda-
tions on the immediate regulation and reduction
of armaments and armed forces. It advocated
simultaneous discussions on atomic and conven-
tional weapons and sought to lessen the emphasis
on the urgency of establishing the United Na-
tions armed forces. An analysis of the position
of the Soviet Union suggests that one purpose may
have been to allow a new commission to invade
the jurisdiction of the Atomic Energy Commis-
sion, thereby possibly confusing the activities of
both commissions.
Neither position completely prevailed. The
United States was unable to convince the Council
of the desirability of granting priority in the Se-
curity Council to the first report of the Atomic
Energy Commission before the consideration of
the further implementation of the General As-
sembly resolution on the general regulation and
reduction of armaments, but it did prevail in its
position that the terms of reference of the new
commission must clearly proscribe interference
with any aspects of the work of the Atomic Energy
Commission.
The deliberations of the Security Council, which
extended over a period of six weeks, were marked
by three distinct phases. The first phase of the
discussions extended from January 9 to January
20, when further considerations were postponed
for two weeks. These discussions were concerned
mainly with whether or not the first report of
the Atomic Energy Commission would be given
priority over the implementation of the General
Assembly resolution of December 14, 1946. The
debates in the second phase, lasting from February
4 to February 11, centered on the jurisdiction and
terms of reference of the proposed new commis-
sion, especially in relation to the Atomic Energy
Commission. The final phase of the considera-
tions, from Febru.a'Y 11 to February 13, led to
compromise and eventual agreement and the adop-
tion of the resolution establishing the Commis-
sion for Conventional Armaments.
The First Phase: Priority in the Regulation and
Reduction of Armaments
Discussion of the American and Soviet pro-
posals started on January 9, 1947. Contending
that the General Assembly's resolution did not
Deparfment of State Bulletin
give priority either to atomic-energy control or
to the regulation and reduction of conventional
armaments, the Soviet Union started the debate
by asserting that the proposals presented by the
United States would merely delay the Security
Council's implementation of the General Assem-
bly's resolution. Attacking the United States as
obstructing considerations of the problem by an
"either — or" position, Mr. Gromyko observed :
"The attempt to make the working out of the
concrete measures on the realization of the Gen-
eral Assembly decision on one question, dependent
on the progress and results of the consideration of
another one, to the detriment of the realization
in general of the General Assembly decision on
'Principles Governing the General Kegulation and
Reduction of Armaments' cannot be justified by
any reference to the necessity of giving priority to
any one distinct question. Actually, the task of the
Security Council is to proceed without delay with
working out the practical measures on all the
questions on which the General Assembly has taken
the decision." '
In reply Mr. Johnson took issue with Mr. Gro-
myko and stressed that the General Assembly reso-
lution of December 14, 1946, clearly and repeatedly
emphasized the importance of expediting the work
of the Atomic Energy Commission in the Security
Council as well as in the Commission itself. Re-
iterating the position already stated by Mr. Byrnes
on the importance of safeguards to any system
of regulation, Mr. Johnson said :
"The creation of a system of effective regula-
tion is fundamentally a problem of devising ef-
fective international controls and safeguards
which will protect complying States against the
hazards of violations and evasions. We cannot
expect any nation to accept any system for the
regulation of armaments and armed forces un-
less it is satisfied that the international controls
and safeguards provided will be truly effective.
No system of this nature, which leaves law-abid-
ing States weak and helpless in the face of ag-
gression, can ever contribute to world peace and
security." ^
Neither the views of the United States nor those
of the Soviet Union were completely acceptable
to the other members of the Council. Resolutions
seeking to compose the differences were intro-
duced on January 9 by France and on January
15 by Australia and Colombia.^ The aims of the
three proposals were in general similar:
(1) All required immediate action in setting up
a commission to consider the regulation and reduc-
tion of armaments and armed forces and in con-
sidering the Atomic Energy Commission's report.
(2) Wlien established, it was proposed that the
new commission should make a report on its work
to the Council within three months. ( The Austral-
ian resolution stipulated April 30.) The French
resolution required the new commission to make
such recommendations on the problem of regula-
tion and reduction of armaments as it could within
the time limits and suggested that studies be made
on the problem by the Military Staff Committee or
by other organs of the United Nations. The Aus-
tralian and Colombian resolutions required the
proposed commission to concern itself with recom-
mendations on practical and effective safeguards
as well as on the regulation and reduction of arma-
ments and armed forces. The Colombian resolu-
tion specifically barred the new commission from
considering anything relating to atomic weapons
but assigned to it all other weapons adaptable to
mass destruction.
(3) With reference to the report of the Atomic
Energy Commission, the Australian and Colom-
bian resolutions advocated the drafting of a con-
vention or conventions setting up an international
system for control of atomic energy with a time
limit of three months for a report on this work.
The French resolution merely called for considera-
tion of the Commission's report as soon as possible.
(4) All called upon the Military Staff Commit-
tee to expedite proposals on the establishment of
the United Nations armed foi'ces under the provi-
sions of article 43 of the Charter and on the with-
drawal of troops from ex-enemy territory and
friendly nations in accoidance with section 7 of the
General Assembly resolution. All placed a defi-
nite time limit of three months on the reports from
the Military Staff Committee. The French and
Australian resolutions also called upon the Mili-
tary Staff Committee to make proposals on the
information that member states should furnish on
their armed forces.
33.
' S/P. V./90, p.
■ Ibid., p. 47.
• S/243, S/249, S/251.
April 27, 1947
733
Assessing these resolutions, these pomts appear
clear :
(1) Concurrent examination of the problems
of the regulation of atomic and conventional
weapons was tliought desirable.
(2) There was evidence that France, Australia,
and Colombia supported expeditious consideration
of the Atomic Energy Commission's report only
after machinery for examining the problems of
regulation and reduction of conventional arma-
ments had been established.
(3) There were varying ideas as to the terms of
reference of the proposed new commission and as
to what it could accomplish in the three months'
time allotted to it for making a report.
(4) There was general recognition of the rela-
tionship of the article 43 agi'eements to the regula-
tion and reduction of armaments and armed
forces.
U.S. Bequests Postponemeni
The debates which had started on January 9
continued on January 15. On that day Senator
Warren E. Austin assumed his duties as the Repre-
sentative of the United States on the Security
Council. Speaking therefore for the first time, he
requested that further consideration of the prob-
lems before the Council relating to the implemen-
tation of the General Assembly's resolution be
posti^oned for three weeks until February 4. In
sujjport of this suggestion he pointed out that since
he had just entered upon his duties he believed he
needed more time for the consideration of the
problems before the Council. Furthermore, since
there was to be a new Secretary of State, he should
also have time to study these problems. In con-
cluding, Senator Austin expressed his belief that
haste in the discussions would not be conducive to
the desired unanimity of the Council.'"
Mr. Gromyko, who followed Mr. Austin, ob-
jected to any postponement of the problem and
felt that the Council's considerations should con-
tinue along the lines of the Soviet proposal.''
Oscar Lange of Poland also opposed postpone-
" S/P. V./93, pp. 32-40.
"Ibid., pp. ril-.'-i2.
" Ibid., pp. 60-80.
" S/P. V./92, pp. 12-2.5, 41.
" S/P. V./93, pp. 81-97, 97-110.
" Ibid., pp. 121-122.
" S/P. V./95, p. 52.
ment and stressed his conviction of the urgency of
putting the General Assembly's resolution into
effect as quickly as possible. He stated that he
believed disarmament was possible and was de-
sired by the peoples of the world immediately
rather than in any specific number of years in the
futuie. He especially objected to the United
States proposal because he envisaged substantial
delays from the Council's first considering the
Atomic Energy Commission's report.'^
Dr. Quo Tai-chi of China" and Dr. Henrique
de Souza Gomes of Brazil " in general supported
the American position. Baron Silvercruys of Bel-
gium," Dr. Alfonso Lopez of Colombia," and Sir
Alexander Cadogan of the United Kingdom
expressed their willingness to agree to Senator
Austin's request for postponement, although Bar-
on Silvercruys and Dr. Lopez saw no objection
to concurrent discussion on conventional arma-
ments and on atomic weapons and other major
weapons adaptable to mass destruction. Of par-
ticular force was Sir Alexander Cadogan's con-
clusion to his observations on the length of time
needed to prepare for the general disarmament
conference :
"I am quite aware of the necessity for speed, but
not break-neck speed, although I know that if one
advises against break-neck speed, one exposes one-
self to the easy taunt that one is obstructing dis-
armament or playing power politics, or some other
sinister motive"."
At its meeting on January 20, by a vote of 9 to 2
with the Soviet Union and Poland opposing, the
Security Council adopted Mr. Austin's resolution
for postponement."
The Situation at Postponement
At postponement it ai:)peared clear that if the
American resolution requesting that the work of
the Atomic Energy Commission be given first
priority had been put to a vote it pi-obably would
not have been passed. This would have been due
to the prevailing view in the Council that consid-
eration of the work of the Atomic Energy Commis-
sion and the establishment of the new commission
could be carried on simultaneously.
The views of the Soviet Union, already apparent,
were made abundantly clear in the subsequent de-
bates. It maintained that agreement should be
reached for the outlawing of atomic weapons as
soon as possible, prior to the successful negotia-
734
Department of State Bulletin
tions for the establishment of an international
system of controls and safeguards. The Soviet
position had not changed since its proposals had
been submitted to the Atomic Energy Commis-
sion on June 19, 1946. In specifically not corre-
lating the outlawing of the atomic bomb with the
establishment of any international system of con-
trols and safeguards the Soviets were emphasizing
only the prohibition of the use, manufacture, and
possession of atomic weapons.'' Mr. Molotov had
reaffirmed this position during the General Assem-
bly." Mr. Gromyko's insistence on speed in set-
ting up a new commission, with authority and
terms of reference not clearly defined, was not only
counter to the United States objective of priority
for the work of the Atomic Energy Commission
as a first ste^D in the regidation and reduction
of armaments and armed forces, but also seemed to
look toward a possible new forum for the Soviet
atomic-weapons proposals. In such a forum the
Soviet Government might have sought to circum-
vent or overrule the decisions and recommenda-
tions of tlie Atomic Energy Commission.'^
The Second Phase: The Commission's Terms of
Reference
TJ. S. Objective and Resolution
The United States objective, when discussions
were resumed in the Security Council on Febru-
ary 4, was to make certain that the new commis-
sion was given precise terms of reference. With
inadequately defined terms of reference it might
duplicate the functions of the Atomic Energy
Commission. It was felt that a commission on
such a vital matter with no concrete aims and no
clear-cut authority would be most unsatisfactory,
and failure in its considerations would be dis-
astrous to the world's hopes for future peace.
To assure a careful study of the composition and
terms of reference of the commission, the United
States view was that the Council should estab-
lish a special committee which would have the
task of recommending to it the terms of reference
of the proposed commission and the relationship
of the commission to the Military Staff Committee
and the Atomic Energy Commission.
Two other objectives which the United States
felt necessary were (1) a commitment on the part
of the Security Council that it would allow no
delay in the consideration of the Atomic Energy
Commission's first report, "which had been on the
Council's agenda for nearly a month, and (2)
the elimination of any concept that the proposed
new commission might be able to make a compre-
hensive report within the relatively short and
specified time limit especially if satisfactory action
by the Council had not been taken on the Atomic
Energy Commission report. Provisions to achieve
these objectives were set forth in the resolution
presented by Mr. Austin to the Council at its
meeting on February 4. The resolution read as
follows :
"The Security Council, in consideration of the
General Assembly Eesolution of December 14,
1946, on the "Principles Governing the Regula-
tion and Reduction of Armaments",
^'Besolves:
"1. To establish a commission composed of the
Members of the Security Council, the function of
which shall be to make recommendations to the
Security Council regarding the practical meas-
ures, including the provision of effective safe-
guards for the general regulation and reduction
of armaments and armed forces, except as regards
those matters which fall within the competence of
the Atomic Energy Commission as determined by
the General Assembly Resolutions of January 24,
1946, and December 14, 1946.
"2. To create a committee of the Security Coun-
cil consisting of a representative of each member
of the Council which shall make recommendations
to the Security Council regarding the terms of
reference of the proposed Commission, including
its relations with the Security Council, the Mili-
tary Staff Committee, and the Atomic Energy
Commission.
"3. To begin at its next meeting consideration
of the First Report of the Atomic Energy Com-
mission dated December 31, 1946, with particular
reference to the Recommendations contained in
Part III thereof." ^^
" Atomic Energy Commission doe. no. 7, June 24, 1946 ;
International Control of Atomic Energy: Growth of a
Policy (Department of State publication 2702), pp. 209-
216.
'^Journal of the United Nations, no. 18, supp. A-A/P.
V./42, pp. 167-168, 175-180, 181.
"At the tenth meeting of the Atomic Energy Commis-
sion, Dec. 30, 1946, tlie Commission adopted its first report
for submission to the Security Council with 10 members
voting In the affirmative and with the U.S.S.R. and Poland
abstaining (First Report of the United Nations Atomic
Energy Commission to the Security Council, Dec. 31, 1946,
Department of State publication 2737).
=" S/264.
April 27, 1947
735
In the statement which he made at the time,
Mr. Austin again underscored this country's posi-
tion that security is prerequisite to tlie general
regulation and reduction of armaments and
armed forces.
"The United States is committed to the prin-
ciples of international collective security set forth
in the United Nations Charter. In fulfillment
of its obligation under this Charter, the United
States must insist that in any plan or pro-
gram for the general regulation and reduction
of armaments practical security arrangements
must be a primary consideration. The Members
of the United Nations must have definite, con-
crete assurances that effective and enforceable
safeguards with regard to such security ar-
rangements have been established before com-
mitting themselves to final plans for the reduc-
tion of armaments and armed forces." ^'
Mr. Austin contended that the questions relat-
ing to establishing international collective security
constituted the "how" and the "when" of the
problem of the regulation and reduction of arma-
ments. The "how" involved the necessary safe-
guards which should be included in any treaties
or conventions to protect complying states against
the hazards of violations and evasions, and the
"when" involved such matters as the conclusion
of the peace treaties and the provision of armed
forces for the Security Coimcil under article 43
of the Charter.
Refly of the U. S. S. R.
Mr. Gromyko immediately subjected the United
States proposal to severe criticism. He held that
the first paragraph of the new American proposal
was merely a repetition of the Soviet proposal and
that the General Assembly resolution of Decem-
ber 14 satisfactorily outlined the terms of refer-
ence for the Atomic Energy Commission and the
proposed new commission. Tlierefore, he objected
strongly to creating a committee to consider the
relation of the proposed commission to the other
organs of the United Nations by characterizing it
as unnecessary. Moreover, a committee would
mean a delay in the consideration and prepara-
tion of practical measures to implement the As-
sembly resolution of December 14. The immediate
" S/P. V./98, p. 17.
"/bid., pp. 41-74.
creation of a commission would make it possible
for work to be begun immediately upon the prepa-
ration of practical measures to implement this
resolution.
In conclusion he stated the basic Soviet position
on tlie regulation of armaments :
"The statements made by the representatives of
the United States very often contain as a kind of
constant theme the idea that it is impossible for
the United States to proceed to disarmament or,
to use the phrase we have adopted, the regulation
and reduction of armaments and armed forces,
until a complete system of security and safeguards
has been set up. An attempt is . . . made
[by the United States proposal] to establish op-
position between the general regulation and re-
duction of armaments and armed forces, on the
one hand, and on the other, the system of guaran-
tee of security and safeguard. This opposition
may very well lead to misunderstanding in some
quarters. I think from the factual, methodologi-
cal and logical point of view that this opposition
is altogether false. The reduction of armaments
and armed forces is an essential, an integral part
of the security system that is so ardently desired
by all peace-loving people." ^^
Views of Australia and the U.K.
At the afternoon meeting on February 4, the
Australian Representative came out in opposition
to the new United States resolution. He objected
to the requirements of paragraph 3, the practical
effect of which would be to give priority consid-
eration to the Atomic Energy Commission's re-
port, which would defer Security Council action
on the general regulation and reduction of arma-
ments. He shared Mr. Gromyko's feeling that
the suggested committee for establishing the terms
of reference of the proposed commission would
cause delay, saying that he felt that it was possible
for the Security Council itself to establish the
commission, determine its membership, and set
forth its terms of reference. Finally, he criti-
cized the new resolution for failing to mention
such other urgent matters as the work of the Mili-
tary Staff Committee as referred to in the Gen-
eral Assembly resolution of December 14. In an
effort to reconcile the differences between the
various proposals before the Council, the
Australian representative suggested that the au-
thors of the various resolutions should, at the di-
736
Department of State Bulletin
rection of the President of the Council, confer
either formally or informally to try to arrive at
a mutually acceptable draft resolution."'
The United Kingdom representative held that
the differences of opinion with regard to establish-
ing a special committee charged with formulating
the new commission's terms of reference were
essentially illusory, since presumably the same na-
tions, whether in the Council, in the Committee,
or in the proposed commission, would be the same.
However, he believed that the proposal of the
United States was a more regular procedure than
the alternative of having a new commission at-
tempt to determine its own terms of reference.^*
The Drafting Committee's Discussions and Report
After some further discussion, it was agreed that
Fernand van Langenhove of Belgium, the Presi-
dent of the Council, would call together the repre-
sentatives of Australia, Colombia, France, the
United States, and the U.S.S.R. for informal dis-
cussions looking to a possible compromise draft.
Three days of informal discussions failed to
resolve the chief point of disagi'cement between
the United States and the Soviet Union on the
terms of reference for the new commission. At
the meetings held on February 5, 6, and 7, this
Government's concern over the importance of hav-
ing the terms of reference of the commission so
clearly defined as to avoid encroachment on the
functions of the Atomic Energy Commission
pi'oved justified. The Soviet Representative con-
tinued to oppose as unnecessary the United States
insistence on precise terms of reference. It was
therefore necessary for the informal group to
present alternatives for paragraph 3 of the draft
proposal.
The resolution returned to the Security Council
did, however, represent a wide area of agreement.
Based on the French proposal, it contained a modi-
fied form of the Soviet preamble and first para-
graph. Paragraph 2 of the resolution reported
the fact that agi-eement with the U.S. position
had been reached, that the Atomic Energy Com-
mission's report would be considered by the Coun-
cil as expeditiously as possible. The United States
on its part acceded to the three months' time limit
on the commission's first report. Paragraph 4
represented agreement on the belief that the Mili-
tary Staff Committee should hasten the completion
of its recommendations with regard to the im-
April 27, 7947
740187—47 2
plementation of article 43 of the Charter. Only
with regard to the terms of reference and the
authority of the new commission did basic dis-
agreements remain. These were set forth in para-
graph 3, which read as follows (the italicized por-
tion was that specified as essential by the United
States but opposed by the Soviet Union) :
"3. To set up a Commission consisting of repre-
sentatives of the members of the Security Council
with instructions to prepare and to submit to the
Security Council within the space of not more than
three months, the proposals :
" (a) for the general regulation and reduction of
armaments and armed forces and
"(b) for practical and effective safeguards in
connection with the general regulation and reduc-
tion of armaments.
"which the Commission may be in a position to
formulate in order to ensure the implementation
of the above-mentioned resolutions of the Gen-
eral Assembly of 14 December 1946 insofar as
these resolutions relate to armaments within the
new Commissioii's jurisdiction.
'"''The Commission shall submit a plan of work to
the Council for approval.
^''Those matters which fall within the competence
of the Atomic Energy Commission as determined
hy the General Assembly resolutions of 2^ January
1946 and 1^ December 1946 shall be excluded
from the jurisdiction of the Coinmission hereby
established.
'"''The title of the C ominission shall be the Com-
mission for Conventional Armaments.
"The Commission shall make such proposals as
it may deem advisable concerning the studies which
the Military Staff Committee and possibly other
organs of the United Nations might be asked to
undertake. "-=*
The Third Phase: Compromise and Agreement
Discussions on Paragraph 3 of Draft Resolution
When the sessions of the Security Council re-
commenced on February 11 the position of Mr.
Austin had received strong endorsement from the
new Secretary of State. At his first press confer-
ence on February 7, the Secretary had declared
that in the regulation and reduction of world ar-
^ S/P. V./99, pp. 1-20.
""Ihia., pp. 21-30.
=" S/268.
737
niameiits the goal of all was a peace based on col-
lective security. The United States would work
with other nations toward the rapid attainment of
this goal. He held that the international control
of atomic energy together with effective safeguards
was of first importance and that the problems posed
by the peace settlements had to be resolved before
any real disarmament could be anticipated.-"
Mr. Austin opened the debate by reiterating the
United States view that the jurisdiction of the two
commissions should be precisely defined. He held
that the General Assembly would never have
agreed that the Security Council should set up a
new commission whose authority would in any
way encroach on that of the Atomic Energy Com-
mission, and he pointed to paragi-aph 8 of the
General Assembly resolution to emphasize that
fact. Adverting to the Soviet Union's reluctance
to agree to the specific delineation of functions
between the two commissions, he said :
"I think it is clear from the discussions we have
had up to date that the Soviet Union is not willing
that the new Commission should be expressly
barred from considering matters which have been
assigned to the Atomic Energy Commission. I
make no attempt to assign a reason for that re-
fusal, but it is clear that one reason might be an
intention on the part of the Soviet Government
to introduce proposals into this new Commission
which appropriately fall within the terms of I'efer-
ence of the Atomic Energy Commission."
Mr. Austin stated that this Government's posi-
tion had been strengthened because of this Soviet
view not to agree to terms of reference which
would allow any member of the United Nations
such an opportunity. With reference to the pos-
sibility that obscure jurisdictional lines might
raise the problem as to what information might be
available to the new commission, he argued that
it might conceivably be empowered to request mem-
bers to furnish infoi'mation regarding atomic
weapons and other major weapons adaptable to
mass destruction. This, he held, should remain
within the sole jurisdiction of the Atomic Energy
Commission. In support he pointed in this con-
nection to a statement of Mr. Gromyko before the
* BuujTiN of Feb. 16, 1947, p. 286.
"" S/P. V./102, pp. 17, 18, 21, 22, 36-40.
General Assembly with reference to information
on military personnel :
". . . however much this information may be
of interest to the General Assembly or to the Se-
curity Council before the consideration of the
question of the general reduction of armaments,
the value of such information would not be very
great if we did not receive at the same time the
submission of all information concerning arma-
ments, having in mind all types of armaments,
and including therein the new types of armaments
for mass destruction."
In view of this statement on the record, Mr.
Austin said that for the Security Council to fail
to adopt the version of paragraph 3 of the draft
resolution which most clearly outlined the two
connnissions' jurisdictions would be to risk undo-
ing, through the medium of the new commission,
the work already done and reported on in the
first report of the Atomic Energy Commission.
In concluding, he stated that the actions of the
United States could not be interpreted as delaying
the cause of disarmament; on the contrary, this
country was responsible for initially proposing
that atomic bombs, the greatest weapon of all, be
eliminated from national armaments and that safe-
guards be set up to assure compliance."'
Mr. Gromyko, in reply, ai-gued once more that
the terms of reference of both commissions were
clear in the General Assembly resolution and as
such should not be subject to action by the Secur-
ity Council. He held that the United States, by
stubbornly insisting on language which created
an artificial opposition between the Atomic En-
ergy Commission and the proposed new commis-
sion, diverted the attention of the Council from
the main issue of the rapid implementation of the
General Assembly resolution by focusing the
Council's attention on purel}' organizational pro-
cedural questions. He then went on to say :
"The resolutions adopted by the General Assem-
bly do not speak separately of provisions govern-
ing atomic weapons, on the one hand, and other
conventional weapons on the other. Atomic arms
are mentioned within the general framework of
arms and armaments, and there is no opposition
in these resolutions of the General Assembly, as
there is in the United States proposals, between
atomic arms, on the one hand, and armaments of
other kinds, on the other. There is no attempt to
738
Department of Stale Bulletin
speak, first of all, of atoiiiic weapons and then, in
the second place, of other weapons."
He concluded by saying that various interpre-
tations were possible in regard to the powers of
the Atomic Energy Connnission and the proposed
commission and that the problem should be re-
solved. However, he believed that the Council
could be guided only by the General Assembly's
resolution and not by the proposals of the United
States. Not only were they unnecessary but they
would be harmful in that they would delay the
Council in its assignment of expediting the general
regulation and reduction of armaments and armed
forces."'
This clarification of the Soviet position was the
turning point in the discussion. It became fully
evident that the adoption of the Soviet version of
paragraph 3 would make it possible for the labors
and recommendations of the Atomic Energy Com-
mission to be avoided or confused in another com-
mission.
Speaking in general support of the United
States position, Mr. de la Tournelle of France held
that considerations on the control of atomic energy
and those relating to general disarmament should
be conducted on parallel lines and were independ-
ent of each other since neither was properly sub-
ordinate to the other."
Colombia,'" Great Britain. Brazil," Australia,"'
and China ^' supported the French and American
position that the terms of reference of the new
commission should be clearly set forth in the reso-
lution. Sir Alexander Cadogan asked Mr. Gro-
myko, with regard to paragraph 3, whether he
believed that the phrasing was unnecessary or
whether he objected to the substance of the pro-
posed phrase. If the former, he urged him to drop
his objection, but if the latter he felt that it was
essential that the doubt be cleared up immediately
to "avoid constant wrangling in the Commission
itself and perhaps between the two Commissions
and consequent delay and confusion." '^ Only Mr.
Michulowski of Poland supported the Russian
view that the wording advocated by the United
States was unnecessary."
After considerable discussion entailing much
■ parliamentary procedure, the proposed wording
for paragi-aph 3 advocated by Mr. Austin was ac-
cepted by the Council by a vote of 9 to 0 with the
Soviet Union and Poland abstaining."'
Debate on Article lf3 Agreements
During the two days' discussions of I'ebruary 12
and 13, the slow progress of the Military Stafif
Conunittee was subjected to several severe com-
mentaries from the members of the Council, par-
ticularly the representatives of France, Great
Britain, and Australia. The latter two introduced
amendments seeking to place a definite time limit
for a report from the Military Staff Committee."'
The French Representative, Mr. de la Tournelle,
pointed out that at the request of the Soviet Dele-
gation the French Delegation had, during the
course of the informal discussions of Febiiiary 5,
6, and 7, consented not to demand any time limit
for the carrying out by the Military Staff Com-
mittee of the task assigned to it by the Security
Council concerning the organization of the United
Nations armed forces. He pointed out that the
absence of a report from the Military Staff Com-
mittee Avas particularly regrettable in that it was
impossible to conceive of a general reduction of
armaments without the organization of an inter-
national system of collective security. "Without
security", he said, "States which would disarm
would risk their security." "' Sir Alexander Cado-
gan in his attack on the work of the Military
Staff Committee blamed the Soviet Union for the
delay in its woi'k and supported the French view
by observing —
"I am afraid, it seems to me, that with our con-
centration on the reduction of armaments we have
relegated or risked relegating consideration of
security to the background. My Government
would ask me to resist very strongly any tendency
of that kind as they are extremely anxious to see
progress made with this side of the question." "'
Replying to Sir Alexander Cadogan's observa-
tions on security and disarmament and his criti-
cism of the work of the Military Staff Committee,
Mr. Gromyko stated :
=' Ihhl., pp. 54-60, 64-^5, 71.
■' S/P. V./103, p. 12.
"'Ihul., pp. 16-5.5.
" S/P. V./104, pp. 1-20, 21-35,
"^ S/F. V./103, p. 58.
"= S/P. V./104, pp. 3&-45.
" Ihid.. p. 171.
" Ibid., p. 28; S/P. V./103, p. 62
"' Ihid., p. 12.
=' Ibid., p. 61.
46-55.
April 27, J 947
739
"Sir Alexander is virtually only repeating a
thesis which has been very much used in recent
times and which has become popular not only in
banquets, but also in the meetings of the Security
Council ; the thesis that it is not possible to pro-
ceed to the regulation and reduction of armaments
and armed forces until an international system
of security has been set up. . . . This con-
trast which is drawn between the two questions,
security and disarmament, only tends to compli-
cate the position and to obscure the important
questions with which the Security Council has to
deal." "
After having discussed his concern at the length
of time which it would take the proposed com-
mission to start upon its functions, and having
urged all possible speed in establishing a com-
mission, Mr. Gromyko, who had originally pro-
posed a report within three months from the new
"disarmament" commission and who had favored
the phrasing of the compromise draft proposal
calling for the new commission's report "within
the space of not more than three months",^^ turned
to the subject of the Military Staff Committee and
observed :
"We should not forget, Mr. President, that it
is unwise to take a decision regarding the execu-
tion of which there is some doubt, a decision which
may not be capable of execution at all or which
may be capable only of inadequate execution.
Unfortunately, the Security Council does not at
present know enough about the position to be able
to fix, in my opinion a date when the Military Staff
Committee should make this submission to the
Security Council. We do not know how soon the
Military Staff Committee will be in a position to
make these recommendations. We have not asked
the Military Staff Committee at what time it thinks
it will be in a position to make these first recom-
mendations. I think perhaps it may be found,
after consulting the Military Staff Committee,
that they can submit them before the 30th of April.
On the other hand, it may be found that they can
submit them only after that date. I wonder, Mr.
President — and this is only a question — whether
it would not be better, first of all, to ascertain the
^ S/P. V./104, p. 62.
"S/P. V./105, p. 11.
" S/P. V./1(M, pp. 87-
" S/P. V./105, p. 36.
facts of the situation before adopting a resolution
of such a definite character.*'
tAdoption of the Resolution of Fehrtuary 13, 19^7
Debate on the various proposals for amend-
ments ended, the Council adopted the following
resolution by a vote of 10 to 0." The U.S.S.K.
abstained.
"The Security Council, having accepted the
resolution of the General Assembly of 14 Decem-
ber, 1946 and recognizing that the general regula-
tion and reduction of armaments and armed forces
constitute a most imjDortant measure for strength-
ening international peace and security, and that
the implementation of the resolution of the Gen-
eral Assembly on this subject is one of the most
urgent and important tasks before the Security
Council,
^^ Resolves:
"1. to work out the practical measures for giv-
ing effect to the resolutions of the General As-
sembly of 14 December 1946 concerning, on the
one hand, the general regulation and reduction of
armaments and armed forces, and the establish-
ment of international control to bring about the
reduction of armaments and armed forces and,
on the other hand, information concerning the
armed forces of the United Nations.
"2. to consider as soon as possible the report
submitted by the Atomic Energy Commission and
to take suitable decisions in order to facilitate its
work.
"3. to set up a Commission consisting of repre-
sentatives of the members of the Security Council
with instructions to prepare and to submit to the
Security Council within the space of not more than
three months, the proposals :
"(a) for the general regulation and reduction
of armaments and armed forces, and
"(b) for practical and effective safeguards in
comiection with the general regulation and reduc-
tion of armaments
"which the Commission may be in a position to
formulate in order to ensure the implementation
of the above-mentioned resolutions of the General
Assembly of 14 December 1946, insofar as these
resolutions relate to armaments within the new
Commission's jurisdiction.
( Continued on page 7-iS)
740
Department of State Bulletin
THE COUNCIL OF FOREIGN MINISTERS
Moscow Meeting of the Council of Foreign Ministers:
Questions Relating to Germany
STATEMENTS BY THE SECRETARY OF STATE
Relation of German Coal Production to
Economic Unity >
The report of the Allied Control Council on the
production and allocation of coal clearly indicates
the vital need for economic unity. Coal is Ger-
many's most important natural resource. The
amount of coal produced in Germany, and the
way this coal is allocated, greatly affects the level
of general industrial production in Germany and
in many other countries. So long as Germany is
divided, the production and distribution of coal,
as of all other resources, remains the responsibility
of the several zone commanders. Only by treat-
ing Germany as an economic unit can our joint
efforts be effectively brought to bear on the coal
problem in Germany.
Coal production: the report points up the need
for an increase of manpower in the mines, for
wage adjustments, for production of mine sup-
plies, and for better food rations, improved hous-
ing, and other incentives for miners. From
180,000 tons daily in September, Ruhr production
has increased to a recent peak day of 238,000 tons.
In spite of continuing difficulties, it is believed that
a solid groundwork is being laid for the gradual
recovery of coal production in the Ruhr.
Allocation of coal : while the Control Council
nominally allocated coal for more than a year,
there was never a real allocation of production
from all four zones. It has proved impossible to
obtain Soviet agreement to include in alloca-
tions the coal production from Soviet zone based
on common requirements. The Soviet zone, for
example, excluded about 700,000 tons of coal per
month which were converted into synthetic fuel.
Neither this coal nor the synthetic fuel it produced
were ever subject to allocation. Actually, four-
power allocation was being made of production
from the three western zones only. Coal from
the Soviet zone was bartered for hard coal from
the Ruhr, but was never made available for gen-
eral allocation within Germany or for exports.
Wlien the Soviet zone commander refused to
correct this arrangement, and insisted on unilat-
eral determination of Soviet zone requirements,
the four-power allocation of coal broke down.
The solution of the coal problem depends on
common planning and common control of both
production and allocation for all commodities in
short supply, including allocation of imported as
well as indigenous resources. Coal and steel can-
not be allocated for all four zones if food and
fertilizer are not allocated but ti'eated as zonal
resources. In other words, we advocate the eco-
nomic unity of Germany and the common use of
all of its resources, including coal. Again we urge
all delegations to accept this fundamental princi-
ple of the Potsdam agreement.
Until this is agreed, there is no action we can
take on this coal report except to note it.
Delimitation of Scope of Proposed Four-Power
Treaty for Germany >
Yesterday we discussed the United States pro-
posal for a four-power treaty to assure the contin-
uing disarmament and demilitarization of Ger-
many. We had proposed that treaty as a first step
and basic step. As a first step it would dispel fear,
which is never a wise counselor. As a basic step,
it was simple and limited to one concrete thing,
namely, preventing the rearmament of Germany.
There are many aspects to the German settle-
ment. The four-power pact is not intended to deal
with all of these. We have not so represented it.
If there are any illusions about this, they are not
of our creation. But a first and basic step should
be directed against one thing which can be identi-
fied and which is most feared, namely, the military
rearmament of Germany.
It has been suggested here that the proposed
four-power treaty should be amended to deal with
' Made on Apr. l."!), 1947, and released to the press in
Moscow on that date and in Washington on Apr. 16.
April 27, 1947
741
THE COUNCIL OF FOREIGN MINISTBRi
a great mass of other subjects such as the perma-
nent regime for the Ruhr, the denazification of
Germany, the democratization of Germany, the
accomplishment of hind reforms, the collection of
reparation, the elimination of cartels, et cetera.
All these matters must be dealt with by the
Control Council or in the ultimate peace settle-
ment. To deal with them in the four-power treaty
which we proposed would be totally to alter the
scope and purpose of that treaty. Such amend-
ments have no place in the kind of treaty we
propose.
Such provisions have no more place in the pro-
posed treaty than in the series of bilateral treaties
against German aggression which have been nego-
tiated by the Soviet Union, all of which are simple
and none of which contain any such provisions as
the Soviet Union now proposes for the four-power
treaty. The proposals, in our opinion, would
usurp, for the four of us, peace-treaty powers
which belong to the Allied nations as a whole.
Yesterday I put the inquiry as to whether the
other three powers here are prepared in principle,
I repeat ?w principle, to negotiate quicklj' a treaty
of the character suggested by the United States
whereby the four of us will undertake to keep Ger-
many disarmed. That question, I understand, has
been answered in the affirmative by France and
the United Kingdom. I should like to know
whether the Soviet Delegation is willing to refer
this matter to plenipotentiaries for negotiation on
the basis which the United States proposed.
Consideration of Disarmament Measures
for Germany ^
A year ago at the meeting of the Council of
Foreign Ministers in Paris, Secretary Byrnes pre-
sented a draft of a treaty whereby the four prin-
cipal Allied powers would undertake to work
together to keep Germany disarmed for 25 years
or more. That proposal was made because the
United States is determined to take an active part
in keeping Germany disarmed. The proposal was
made soon after fighting stopped and before the
German settlement was reached on the Council's
agenda because we wanted as quickly as possible to
dissipate fear and make it more likely that the
peace settlements of Europe would be planned
wisely. A year has now elapsed. There has been
ample time for reflection. The United States Gov-
ernment believes that the time has now come for
the other three Allied powers to decide whether or
not they want a four-power treaty to keep Ger-
many disarmed.
As regards the text, the United States has always
recognized that study and intervening events
would suggest the desirability of some changes in
the first provisional diaft. I now suggest that the
treaty might provide for periodic review of its
terms. In particular, after the peace treaty with
Germany becomes final, the four-power treaty
should be reconsidered to adapt it to the provisions
of tlie peace treaty. I also suggest that any pro-
hibitions contained in the four-power treaty should
be included in the peace treaty so as to bind tlie
German state and become the law of the land in
Germany, obligating Germans individually to obey
and German courts to enforce.
I have no doubt other suggestions will be made
which can improve the text provided it is kept
simple and clearly just. However, I do not ask
the Council now to involve itself in considering
texts. The decision we want is a decision as to
whether the other three powers here want to have
a four-power treaty to prevent the rearmament of
Germany. If so, then I propose that we designate
plenipotentiaries to negotiate promptly the final
text.
American Position on Peace Conference
STATEMENT BY THE SECRETARY OF STATE ^
I
Saturday I stated that I would make a statement
today to clarify the American position regarding
' Made on Apr. 14, 1SM7, and released to the press in
Moscow on thi'.t date and in Washington on Apr. 15.
the peace conference and answer some questions
raised by my colleagues.
In general our position has been that the con-
ference should function along substantially the
742
Department of State Bulletin
same lines as the Assembly of the United Nations.
It does not seem to us that it would be proper to
exclude any state at war with Germany from par-
ticipation in the peace conference. While the orig-
inal proposal of the United States provides that
all states at war should be accorded full and equal
rights as membei-s of the conference, the United
States Delegation is prepared to agree that the so-
called "two-thirds" recommendations of the con-
ference should require not only two thirds of all
the .states pi-esent and voting but also two thirds of
those states present and voting which are enum-
erated in paragraph 2 of pai't 1 of the Deputies'
report. That is, there would be no "two-thii'ds"
recommendation unless it was concurred in by
two thirds of those states present and voting which
are neighbors of Germany or which participated
with their armed forces in the common stiuggle
against Germany.
Similarly, the U.S. Delegation is prepared to
agree that the so-called "simple majority" recom-
mendations should require not only a majority of
all states present and voting but a majority of those
states present and voting which are enumerated in
paragraph 2 of part 1 of the Deputies' report.
The United States Delegation is also prepared to
agree that the recommendations of the peace con-
ference should be considered by the Council of
Foreign Ministers in drawing up the final text of
the German treaty in the same way as the recom-
mendations of the Paris conference on the satellite
treaties were considered. In other words, the
Council must take into consideration both classes
of recommendations. While the "two-thirds" rec-
ommendations will naturally carry gi-eater weight
than the "simple majority" recommendations, their
acceptance by the Council will not be obligatory
on the Council.
The United States Delegation has suggested that
the German constitution should contain a clause
directing the German Government to accept and
ratify the peace treaty. One of the major Nazi
attacks against the democratic representatives who
in l)ehalf of Germany signed and accepted the Ver-
sailles Treaty was that Germany was thus be-
trayed by democrats. We believe that, by the con-
stitutional procedure we suggest, responsibility for
the acceptance of the treaty would rest on the Ger-
man people. Under tho-se circumstances we will
not object to the treaty being signed and ratified
by the German Government.
THE COUNCIL OF FOREIGN MINISTEKS
Armaments Commission — Continued from page IJfi
"The Commission shall submit a plan of work
to the Council for approval.
"Those matters which fall within the compe-
tence of the Atomic Energy Commission as deter-
mined by the General Assembly resolutions of 24
January 1946 and 14 December 1946 shall be ex-
cluded from the jurisdiction of the Commission
hereby established.
"The title of the Commission shall be the Com-
mission for Conventional Armaments.
"The Commission shall make such proposals as
it may deem advisable concerning the studies
which the Military Staff Committee and possibly
other organs of the United Nations might be asked
to undertake.
"4. to request the Military Staff Committee to
submit to it, as soon as possible and as a matter of
urgency, the recommendations for which it has
been asked by the Security Council on 16 February
1946 in pursuance of Article 43 of the Charter,
and as a first step, to submit to the Security Coun-
cil not later than 30 April, 1947, its recommenda-
tions with regard to the basic principles which
should govern the organization of the United Na-
tions Armed Force." ^'^
The Task Ahead in the Commission on
Conventional Armaments
In the two months which have followed the
adoption of the resolution, the differences as to
the relationship and precedence of international
security or disarmament have remained. Pur-
suant to the urgings of the United States the
Security Council finished its considerations of the
Atomic Energy Commission's first report and re-
turned the problems posed therein to the com-
mission for further study. The Commission for
Conventional Armaments has held its first meet-
ings, and in three months the Commission is to
make its first report to the Security Council. The
difficulties confronting the Commission are many
and do not appear to be subject to swift settle-
ment, and therefore its first report does not war-
rant great hopes; but at least the opportunities
of the Commission's eventual success are definitely
enhanced by the clarification of its authority and
objectives.
" S/268/Rev. l/Corr. 1.
AptW 27, J 947
743
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of April 20, 1947
Far Eastern Commission. . . .
United Nations:
Security Council
Military Staff Committee . .
Commission on Atomic Energy
Commission on Conventional Armaments
Trusteeship Council
Meeting of Experts on Passport and Frontier Formal-
ities.
Trusteeship Council Questionnaire Committee ...
German External Property Negotiations (Safehaven) :
With Portugal
With Spain
Inter-Allied Trade Board for Japan
Council of Foreign Ministers . .
International Wheat Conference
International Conference on Trade and Employment:
Second Meeting of Preparatory Committee.
International Red Cross Committee .
ECITO (European Central Inland Transport Organiza-
tion) : Seventh Session of the Council.
ICAO (International Civil Aviation Organization): Euro-
pean-Mediterranean Special Air Traffic Control Con-
ference.
Scheduled for April-June 1947
FAO (Food and Agriculture Organization) :
Ad hoc Salt Fish Working Party
International Timber Conference
Rice Study Group
Executive Committee
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Geneva . . .
Lake Success .
Lisbon
Madrid
Washington
Moscow
London
Geneva
Geneva
Paris .
Paris
Washington
Marianske-Lazne, Czechoslovakia.
Trivandrum, Travancore, India .
Washington
1946
Feb. 26
Mar. 25
Mar. 25
June 14
Mar. 24
Mar. 26
Apr. 14
Apr. 15
1947
1946
Sept. 3
Nov. 12
Oct. 24
1947
Mar. 10- Apr. 24
Mar. 18-
Temporarily adjourned.
Reconvened Apr. 14—23.
Apr. 10
Apr. 14-26
Apr. 14
Apr. 15
Apr. 21-25
Apr. 28-May 10
May 15
June 21
• Prepared in the Division of International Conferences, Department of State.
I
744
Department of State Bulletin
Calendar oj meetings — Continued
Fifth International Hydrographic Conference
ILO (International Labor Organization) :
Industrial Committee on Coal Mining
Industrial Committee on Inland Transport
101st Session of Governing Body
30th Session of International Labor Conference . . .
American International Institute for the Protection of
Childhood: Meeting of the International Council.
International Meeting of Marine Radio Aids to Naviga-
tion.
L^nited Nations:
General Assembly: Special Session
Committee on Progressive Development and Codifi-
cation of International Law.
Economic Commission for Europe:
First Plenary Session
Transport Session
Economic Commission for Asia and the Far East:
First Plenary Session
Committee of the Whole
Preparatory Conference of Experts on Telecommuni-
cations.
ECOSOC (Economic and Social Council) :
Fiscal Commission
Subcommission on Freedom of Information and of
the Press.
Subcommission on Statistical Sampling
Economic and Employment Commission
Human Rights Drafting Committee
ICAO (International Civil Aviation Organization) :
Interim Council
Air Transport Committee
First Meeting of General Assembly
South American Regional Air Navigation Meeting . .
IRO (International Refugee Organization) : Second Part
of First Session of Preparatory Commission.
Congress of the Universal Postal Union
International Radio Conference
PMCC (Provisional Maritime Consultative Council) . .
lEFC (International Emergency Food Council): Fourth
Meeting.
lARA (Inter-Alhed Reparation Agency) : Meeting on
Conflicting Custodial Claims.
Eleventh International Congress of Military Medicine
and Pharmacy.
International Cotton Advisory Committee
Caribbean Commisgion: Fourth Meeting
UNRR A Council: Seventh Session
Monaco
Geneva
Geneva
Geneva
Geneva
Montevideo
New York and New London
Flushing Meadows
Lake Success . . .
Geneva
Geneva
Shanghai . .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Montreal
Montreal
Montreal
Lima . .
Lausanne
Paris . . . .
Atlantic City
Paris . . . .
Washington .
Brussels . . .
Basel
Washington
Jamaica . .
Washington
1947
Apr. 22
Apr. 22
May 6
June 13
June 19
Apr. 25
Apr. 28-May 10
Apr. 28
May 1 2
May 2
May 15 =
June 5 '
June 23 »
June 16 '
May 19 2
May 19 ^
June 2 =
June 2 2
June 9 2
Apr. 29
April
May 6
June 17
May 1
May 6
May 15
May 16
May 26-27
May
June 2-7
June 9
June 23-30
June
2 Tentative.
Apti\ 27, 1947
745
Policy for the Revision of the Japanese Educational System '
Guiding Principles and Objectives
1. Education should be looked upon as the pui'-
suit of truth, as a preparation for life in a demo-
cratic nation, and as a training for the social and
political responsibilities which freedom entails.
Emphasis should be placed on the dignity and
worth of the individual, on independent thought
and initiative, and on developing a spirit of in-
quiry. The inter-dependent character of inter-
national life should be stressed. The spirit of
justice, fair play, and I'espect for the rights of
others, particularly minorities, and the necessity
for friendship based upon mutual resi^eot for
people of all races and religions, should be em-
phasized. Special emphasis should also be placed
on the teaching of the sanctity of the pledged word
in all human relations, whether between individ-
uals or nations. Measures should be taken as
rapidly as possible to achieve equality of educa-
tional opportunity for all regardless of sex or
social position. The revision of the Japanese
educational system should in large measure be
undertaken by the Japanese themselves and steps
should be taken to carry out such revision in ac-
cordance with the principles and objectives set
forth in this paper.
Training, Recruitment, and Conditions of Service of
Teachers
2. Those teachers and other educational officials
whose record shows them to have been pronounced
exponents of ultra-nationalistic, militaristic, or
totalitarian ideas, should be forbidden to teach
or engage in other employment connected with
education.
3. Short refresher courses and vacation schools
for teachers should be opened, so far as possible,
in order to train them in democratic ideas.
4. The development of modern techniques of
teaching should be encouraged and opportunities
should be provided for teachers to become ac-
' Policy decision approved b.y the Far Eastern Commis-
sion on Mar. 27, 1947, and released to the press on Apr. 11.
A directive based upon this decision has been forwarded to
the Supreme Commander for the Allied Powers for imple-
mentation.
quainted with these techniques. In this connec-
tion, regard should be had to the value of afford-
ing teachers opportunities of transferring from
one institution to another.
5. As a corrective to the regimented and limit-
ing nature of normal-school training in the past,
and to provide teachers with aims and techniques
in harmony with the objectives of the occupation,
special emphasis should be placed upon the reor-
ganization of normal schools and the establish-
ment of teacher-training institutes staffed with
the most competent instructors available for in-
culcating democratic principles. Endeavors
should be made to increase the proportion of
teachers who have had a university training.
6. The teaching profession should be recog-
nized as of vital importance to the future welfare
and democratic development of the nation, and its
economic status should be improved to a degree
commensurate with this importance. Considera-
tion should be given to the establishment of salary
scales affording all teachers a reasonable standard
of living according to their abilities, qualifications,
and responsibilities without the necessity of sup-
plementing their income from outside sources. A
basic living wage should be guaranteed for all
teachers, with increases according to their quali-
fications.
Textbooks, Curricula, and Teacfiing Methods
7. Teaching of ultra-nationalism, state Shin-
toism, veneration of the Emperor, exaltation of
the state over the individual, and race superiority,
should be eliminated from the educational system.
8. Textbooks and othei' reading material that
contain such ideas as those outlined above .should
be withdrawn from use in schools. New textbooks
should be issued which give an understanding of
progressive ideas. Foreign books should be made
available, especially in central libraries, and for
teachers. These objectives should be given due
weight when allocations of paper supplies and im-
ports of foreign publications are made.
9. Courses in social sciences, civics, constitu-
tional law and government, current events, world
affairs, and international cooperation should be
746
Deparfmenf of State Bulletin
made an integral part of the educational system
at appropriate levels of teaching.
10. Teaching of military subjects should be to-
tally forbidden in all educational institutions.
The wearing by students of military-style uni-
forms should be forbidden. Classical sports such
as kendo, which encourage the martial spirit,
should be totally abandoned. Physical training
should no longer be associated with the seishin
kyoiku. Greater emphasis should be placed on
games and other recreational activities than on
pure calisthenics and drill. If former servicemen
are employed as drill instructors, or in connection
with physical training or sport, they should be
carefully screened.
11. Imperial rescripts should not be used as a
basis of instruction, study, or ceremonies in
schools.
12. Independent thinking on the part of teach-
ers and students should be encouraged.
13. Uniform minimum standards should be pi-e-
scribed for the different levels of instruction in
all the schools of Japan, whether public or private.
Adult Education
14. Adult education should be promoted rapidly
by the use of all suitable facilities such as evening
classes, university extension courses, the radio, the
cinema, and libraries.
Vocational Education
15. Japanese youth should be provided with
opportunities for varied vocational training and
guidance and appropriate organizations for this
purpose.
Educational Administration and Finance
16. The Japanese Government should seek ad-
vice from representatives of all walks of life either
through a non-official advisory council or other-
wise.
17. The Japanese Government should exercise
such control over the education system as will en-
sure the achievement of the objectives of the occu-
pation, particularly the reforms called for by
this policy decision. Subject to the foregoing,
and to maintenance of standards prescribed by
the Government, the responsibility for the local
administration of educational establishments
should in due time be decentralized. Japanese
xcr/v(n£s and dbvelopments
parents and citizens should be encouraged to feel
a sense of individual responsibility for the achieve-
ments of the objectives set out in paragraph 1.
Where practicable they should be associated with
the control, development, and work of the schools
and other educational institutions.
18. The plans enumerated in this paper should
be closely correlated with the reforms in the social,
economic and political life of the nation. In the
implementation of the educational policies outlined
above, funds should be allocated for all essential
educational reform commensurate with the needs
and resources of the nation.
19. In order that educational standards in poor
districts should not be lowered by the inability
of some local bodies to provide sufficient finance
from local revenue, finance for education should
come for the most part from the national govern-
ment, which should be responsible for the mainte-
nance of an adequate level of education through-
out Japan. Local and private bodies should be
encouraged to supplement these funds provided by
the national government.
General
20. Free and compulsory education should be
provided for all Japanese children for a mini-
mum period of six years and should be extended
to higher age groups as rapidly as posssible.
21. More opportunities should be provided for
higher education.
22. Equal opportunity for both sexes should be
provided at all levels of education — primary, sec-
ondary, and tertiary.
23. Encouragement should be given to the for-
mation and reorientation of educational associa-
tions, parent-teacher associations; and to assist
in making the Japanese people aware of the sig-
nificant changes in the direction of education in a
democratic Japan, such groups should be encour-
aged to consider practical problems of education.
24. Discrimination against the graduates of
jirivate schools in civil service appointments should
be eliminated, provided the schools in question
conform to educational standards laid down for
the public educational system.
25. Educational institutions of foreign founda-
tion in Japan have played a useful part in the past
ill widening and deepening the scope of Japanese
education, and should be given equal rights to
those of Japanese institutions in future.
April 27, 1947
747
ACTIVITIES AND DEVBLOPMBNTS
U.S. DELEGATION TO TIN STUDY GROUP
[Released to the press April 16]
A United States Delegation met in Brussels
April 15-18 to participate in forming an Inter-
national Tin Study Group.
It was agreed at the World Tin Conference
convened at London in October 1946 that such a
study group was needed in order to maintain con-
tinuous intergovernmental review of the world tin
situation. The governments o^ the following
countries were represented at London and have
formally agreed to participate in a Tin Study
Group: Belgium, Bolivia, China, France, the
Netherlands, Siam, the United Kingdom, and the
United States.
The members of the United States Delegation
were as follows :
Delegate
Donald D. Kennedy, Chief, International Resources Divi-
sion, Office of International Trade Policy, Department
of State
Advisers
Karl L. Anderson, Assistant Chief, International Resources
Division, Office of International Trade Policy, Depart-
ment of State
H. C. Bugbee, AttacW American Embassy, London
John J. Croston, Deptty Director, Metals and Minerals
Division, Civilian Production, Office of Temporary
Controls
Carl Ilgenfrltz, Vice President, Purchases, United States
Steel Corporation, Wilmington, Delaware
Charles W. Merrill, Chief, Metal Economics Division,
Bureau of Mines, Department of the Interior
U.S. DELEGATION TO PREPARATORY WORLD
CONFERENCE ON PASSPORTS
[Released to the press April 14]
A United States Delegation is attending a prep-
aratory meeting in Geneva, Switzerland, which
opened on April 14, on a projected World Con-
ference on Passports and Frontier Formalities, the
Department of State announced on April 14.
The Delegation is as follows :
Delegate
George Talt, Counselor of Embassy, London
Advisers
John H. Madonne, Consul, Bern, Switzerland
Herbert A. Wilkinson, Office of International Trade, De-
partment of Commerce
Ernest E. Salisbury, Immigration and Nationalization
Service, Department of Justice
James H. Mann, U.S. Treasury Representative, Bern,
Switzerland
Donald J. McGrew, U.S. Treasury Representative, Bern,
.Switzerland
Robert P. Terrill, Division of International Resources,
Department of State
The Transport and Communications Commis-
sion of the United Nations Economic and Social
Council recommended in May 1946 to the Council
that a world conference on passports and frontier
formalities be held as soon as possible. The Second
Session of the Economic and Social Council (May
1946) and the International Conference of Na-
tional Tourist Organizations (October 1946)
passed resolutions recommending the convening of
a conference of experts to prepare for this world
conference. At its Third Session (September-
October 1946), the Council requested the Secre-
tary-General to prepare an agenda for the meeting
of experts.
The meeting will make recommendations regard-
ing a world conference for the simplification of
documents and formalities which have developed
since World War I in connection with non-immi-
grant travel. The experts will consider recommen-
dations of the Provisional International Civil
Aviation Organization, the International Confer-
ence of National Tourist Organizations, and the
International Chamber of Commerce.
The agenda is expected to include such items as :
compulsory passport requirement, simplification of
passport systems, duration and extent of validity
of passports, cost, formalities for obtaining pass-
ports, visa requii'ements, control of exchange at
frontiers, health and immigration requirements,
and customs inspection.
U.S. DELEGATION TO PREPARATORY
COMMISSION OF IRO
[Released to the press April 15]
The Acting Secretary of State announced on
April 1.5 that George L. Warren, designated by
the President as United States Representative on
the Preparatory Commission of the International
Refugee Organization, together with William O.
Hall and David Persinger of the Department of
State as Advisers, will constitute the United States
Delegation to the Second Part of the First Meet-
ing of the Preparatory Commission of the IRO
scheduled to meet at Lausanne, Switzerland, on
May 1, 1947.
In December 1946 the General Assembly of the
United Nations approved, and the Secretary-Gen -
748
Department of State Bulletin
eral opened for signature, the constitution of the
IRO. The First Part of the First Session of the
Preparatory Commission was held at Geneva,
Switzerland, on February 11-12, 1947.
The IRO is designed to assist about 850,000 refu-
gees and displaced persons either to return to
their countries of origin or to find new homes
elsewhere. The United States, besides having
signed the constitution of the IRO, is also a signa-
torj' to the agreement establishing the Prepara-
tory Commission and therefore a member of the
commission.
The agenda for the Second Part of the First
Meeting of the Commission includes problems i"e-
lating to the constitution of the Intei-national Ref-
ugee Organization as well as the Organization's
program for the first year.
AMERICAN DELEGATION TO INTERNATIONAL
RADIO CONFERENCE
[Released to the press April 16]
The Department of State announced on April
16 that there will be convened at Atlantic City on
May 15, 1947, an International Radio Conference,
which will be attended by almost all the govern-
ments of the world. Its objective will be a com-
plete revision of the existing international Gen-
eral Radio Regulations adopted at Cairo in April
1938. At the same place on July 1, 1947, an In-
ternational Plenipotentiary Telecommunications
Conference will be convened for the purpose of
revising the international telecommunication con-
vention which was adopted at Madrid in 1932.
Following the International Radio Conference,
there will be held in Atlantic City an International
High Frequency Broadcasting Conference to
settle outstanding questions in the field of world
short-wave broadcasting. These three conferences
are being convened by the Government of the
United States in view of the extreme urgency of
resolving many telecommunications problems re-
sulting from the dislocations of the war and the
rapid wartime advancements in the telecommuni-
cations art.
The President appointed on April 16 the chair-
men of the three American Delegations which will
represent the United States at these conferences :
ACTIVITIBS AND DSVELOPMENT5
For the International Radio Conferetice :
Charles R. Denny, Jr., Chairman of the Federal
Communications Commission
For the International Plenipotentiary Telecoin-
inunications Conference :
Garrison Norton, Assistant Secretary of State for
transport and communications
For the International High Frequency Broadcast-
ing Conference :
William Benton, Assistant Secretary of State for
public aifaii-s
The vice chairmen of these three conferences will
be named at a later date.
MILTON EISENHOWER NAMED U.S. MEMBER ON
UNESCO EXECUTIVE BOARD
Milton Eisenhower, president of Kansas State
College, has been named United States Member
of the Executive Board of UNESCO, the Depart-
ment of State was informed on April 15.
Mr. Eisenhower, brother of Gen. Dwight D.
Eisenhower and chairman of the United States
National Commission for UNESCO, was elected
unanimously by the Executive Board meeting in
Paris. He succeeds Archibald MacLeish, who
resigned from the Board on April 14 because of the
press of personal affairs.
Mr. Eisenhower will succeed Mr. MacLeish on
May 1 on the UNESCO Executive Board in Paris.
ITALY, SYRIA, AND LEBANON SIGN ARTICLES
OF AGREEMENT OF BANK AND FUND
The articles of agreement of the International
Monetary Fund and the articles of agreement of
the International Bank for Reconstruction and
Development (Bretton Woods agreements) were
signed and accepted by Italy on March 27, 1947,
and by Syria on April 10, 1947, and were accepted
by Lebanon on April 11, 1947, and signed by that
country on April 14.
The number of countries which have become
parties to the agreements has now reached forty-
four.
April 27, 1947
749
THE RECORD OF THE WEEK
Control of Exportation and Importation of Arms, Ammunition,
and Implements of War
THE PRESIDENT'S MESSAGE TO THE CONGRESS
To the Congress of the United States:
I transmit herewith a proposal for legislation
to authorize supervision of the exportation of
arms, anununition, implements of war and related
commodities, and the importation of arms, ammu-
nition, and imiilements of war ; to provide for the
registration, under certain conditions, of manufac-
turers, exporters, importers, and certain dealers
in munitions of war; and to provide for obtaining
more adequate information concerning the inter-
national traffic in arms.^ The principal purpose
of this proposal is to supersede the present provi-
sions of law in Section 12 of the Neutrality Act
of November 4, 1939. For the reasons outlined
below it is believed that the Congress will agree
that this section of the present law is particularly
ineffective in dealing with current problems and
that the Congress will wish to take prompt action
to enact a new law along the lines proposed herein.
Section 12 of the Neutrality Act provides for :
the establislunent of a National Munitions Con-
trol Board; the administration of the provisions
of that section by the Secretary of State ; the regis-
tration of those engaged in the business of manu-
facturing, importing or exporting arms, ammu-
nition, and implements of war; the conditions
under which export and import licenses may be
issued; the reports which the National Munitions
Control Board shall make to the Congress; and the
determination by the President of what articles
shall be considered arms, ammunition, and imple-
' ¥nv a report to the President from the National Muni-
tions Control Board, see H. Doc. 195, 80th Cong.
mcnts of war. Reports of the activities carried
on by the Department of State pursuant to Sec-
tion 12 for the years 1941 to 1946, inclusive, have
been submitted to assist the Congress in its con-
sideration of the legislation now suggested. Op-
erations prior to 1941 are contained in the first
to sixth Annual Eeports of the National Muni-
tions Control Board.
The proposed legislation contemplates continu-
ing certain of the essential aspects of Section 12
of the Neutrality Act, particularly those pertain-
ing to the administrative framework of the con-
trols now exercised. However, it is different in
its objective and it proposes a more flexible and
efficient administration.
The present system of supervising this coun-
try's international traffic and trade in arms and
munitions of war was conceived during a period
of neutrality and with the view to remaining out
of war. To achieve this end the successive Neu-
trality Acts of 1935, 1937, and 1939 were founded
on the principle of unpartiality toward all who
would secure munitions from us regardless of their
motives. As long as Section 12 of the Neutrality
Act is in effect that requirement of impartiality
is still the law and the Secretary of State must
treat aggressor and aggrieved, peacemaker and
troublemaker equally by granting every applica-
tion for a license for the exportation of any arms,
ammunition, or implements of war unless such ac-
tion would be in violation of a treaty. Such a
provision of law is no longer consistent with this
courUtry^s commitments and reqmrem^nts. W>e
750
Department of State Bulletin
have committed oui'selves to international coopera-
tion through the United Nations. If this partici-
pation is to be fully effective this Government mitst
have control over traffic in weapons which loill per-
mit us to act in accordance with our position in the
United Nations and loill he adaptable to changes
in the international situation. Therefore, there
must be new legal provisions enabling the exercise
of discretion in the granting or rejecting of appli-
cations for export or import licenses for arms, am-
munition, and implements of war and related
items.
Weapons and implements of war are material
weights in the balances of peace or war and we
should not be legally bound to be indiscriminate
in how they are placed in the scales. If war should
ever again become imminent, it would be intoler-
able to find oui-selves in our present position of
being bound bj- our own legislation to give aid
and support to any power which might later at-
tack us. The proposed legislation is designed to
permit in normal times of peace conti'ol over traf-
fic in arms or other articles used to supply, directly
or indirectly, a foreign military establishment, and
in times of international crisis, to permit control
over any article the export of which would affect
the security interests of the United States.
The exercise of discretion necessarily requires a
revision of the administration of the controls pres-
ently in operation. The suggested legislation pro-
vides for the exercise of discretion in the types of
licens&s which may be used, and in determining
the activities which may be subject to registration.
The new proposal differs from Section 12 in as
much as it permits the issuance of various types
of licenses designed to take into account under
what circumstances and in what quantities the ex-
port of the articles covered by the proposed bill
should be subject to control. The purpose of this
procedure is to permit freedom of trade in items
of a purely connnercial nature.
With regard to the registration requirements it
should be noted that under the present law any-
one engaged in manufacturing, exporting or im-
porting any of the articles defined as arms, am-
munition or implements of war must register with
the Secretary of State, whether the item handled
by that person is a battleship or merely a .38 caliber
pistol. Under the new proposal the President
upon recommendation of the National Munitions
Control Board may determine when the manu-
THE RECORD OF THE Vlll*.
facture, exportation or importation of any desig-
nated arms, ammunition, and implements of war
shall require registration. This will mean that
consideration may be given to the relative militarj'
significance of the item handled.
Another important change provides for obtain-
ing fuller information which will be made avail-
able to the Congress in the reports of the National
Munitions Control Board. With a luimber of agen-
cies of this Government actively concerned with
the disposal of arms and i-elated items, the pro-
posed legislation will allow for the amalgamation
of all such information into one comprehensive
report.
In addition to the foregoing, the proposed legis-
lation differs from Section 12 of the Neutrality
Act by providing export controls over two addi-
tional categories; namely, (1) articles especially
designed for or customarily used only in the manu-
facture of arms, ammunition and implements of
war and (2) articles exported for u.se, directlj'
or indirectly, by a foreign military establishment.
With regard to item (1) it is certainly unsound
to endeavor to regulate traffic in arms and ammuni-
tion and pennit a free flow of tlie special machin-
ery and tools used in the production of those arms
and anamunition. In the absence of such a provi-
sion those countries from whom munitions are
withheld would soon seek and obtain the equip-
ment with which to supply themselves.
In the interest of world peace articles supplying
a foreign military establishment cannot be left
free from Government supervision so far as ex-
ports are concerned. Prior to the last war there
were no provisions for controlling articles supply-
ing foreign military establishments. This condi-
tion must not be allowed to recur. The proposed
legislation is consistent with the international
trade policies I outlined a short time ago at Waco.
Texas. It is designed to protect the security inter-
ests and to carry out the foreign policy of the
United States.
There is one other aspect of the suggested legis-
lation which warrants connnent. At present there
is no provision for supervising the activities of
those persons who do not manufacture, import or
export arms, ammunition, and implements of war,
but who, as free agents, buy or sell these items for
export, or who obtain commissions or fees on con-
tracts for manufacture or exportation of such
items. These brokers assume none of the respon-
l^ptW 27, J 947
751
THE RECORD OF THE WEEK
sibilities of this important traffic, yet they pro-
mote it, often irresponsibly, and need only con-
cern themselves with the profits to be found in the
trade. It is scarcely fair to those who have the
responsibility of carrying on what experience has
shown to be a legitimate business, that such people
should not be subject to regulation.
The international traffic in munitions and re-
lated items is a matter of major concern to us and
to the other nations of the world. By such legis-
lation as is now proposed for consideration by
the Congi-ess, the Government would be given
powers essential for the safeguarding of its secu-
rity interests in this international trade.
Haert S. Truman
The White House,
April 15, 1947.
The text of the proposed legislation submitted
hy the President with his message to the Congress
follows
DBAFT OF A BILL
To control the exportation and Importation of arms,
ammunition, and implements of war, and related
items, and for other purposes.
Be it enacted hy the Senate and Honse of Repre-
sentatives of the United States of America in Con-
gress Assembled:
Sec. 1. That there is hereby established a Na-
tional Munitions Control Board (hereinafter re-
ferred to as the "Board") . The Board shall con-
sist of the Secretary of State, who shall be chair-
man and executive officer of the Board, the Secre-
tary of War, the Secretary of the Navy, and the
Secretary of Commerce.
Sec. 2. Except as otherwise provided in this Act,
the Administration of this Act is vested in the
Secretary of State. The Secretary of State shall
make such rules and regulations with regard to
the enforcement of this Act as he may deem neces-
sary to carry out its provisions; but the regula-
tions, issued on June 2, 1942, by the Secretary of
State (7 F.R. 4216; Title 22, Chapter II, Sub-
chapter D of the Code of Federal Regulations)
governing registration and licensing under sec-
tion 12 of the joint resolution of Congress ap-
proved November 4, 19.39, shall, until amended or
revoked by the Secretary of State, have full force
and effect as if issued under the authority of this
Act.
CONTROL OF EXPORTS
Sec. 3. The President is hereby authorized to
designate from time to time, upon the recommen-
dation of the Board, such of the following as he
determines must be subject to the export licensing
requirements of section 4 of this Act in order to
protect the security interests or carry out the for-
eign policy of the United States :
(a) Arms, ammunition, and implements of war
and articles especially designed for, or customarily
used only in, the manufacture of arms, ammuni-
tion, or implements of war.
(b) Articles which he determines are being, or
are proposed to be, exported for use directly or
indirectly by a foreign military establishment.
(c) In time of war or in the event of an emer-
gency in international relations declared by Con-
gress or declared in the manner now or hereafter
authorized by law, any article the export of which
would affect the security interests of the United
States.
Seo. 4. (a) Without first having obtained a
license therefor it shall be unlawful for any person
to export, or attempt to export, from the United
States to any other country any articles designated
by the President under the authority of section 3
of this Act.
(b) The Secretary of State shall issue such li-
censes unless he determines that the proposed
export would not be in aceord with the foreign
policy or the security interests of the United States
and with the standards set forth in section 3 of
this Act. Such licenses may be either general or
specific. The Secretary of State is authorized to
revoke any license under the same standards as
govern the issuance of such license. A valid li-
cense issued under the authority of section 12 of
the joint resolution of Congress approved No-
vember 4, 1939, shall be considered to be a valid
license issued under this section, and shall remain
valid, unless specifically cancelled or revoked by
the Secretary of State, for the same period as if
this Act had not been enacted.
(c) The Secretary of State shall develop such
procedures for disseminating information as to the
licensing policies to be followed under this section
as he may deem necessary to enable manufacturers
and exporters of articles designated under section
3 of this Act to plan legitimate commercial trans-
actions, but he shall not be required to disclose any
752
Department of State Bulletin
information if in his opinion such disclosure would
be contrary to the national security.
(d) In fornuilating the policies governing the
licensing authority granted in this section, the
Secretary of State shall act after consultation with
the Board.
CONTROL OF IMPORTS
Sec. 5. The President is hereby authorized to
designate from time to time, upon recommenda-
tion of the Board, those arms, ammunition, and
implements of war which he determines must be
subject to the import licensing requirements of
section 6 of this Act in oi-der to protect the security
interest or carry out the foreign policy of the
United States.
Sec. 6. (a) Without first having obtained a
license therefor it shall be unlawful for any person
to import, or attempt to import, into the United
States from any other country any arms, ammuni-
tion, or implements of war designated by the Presi-
dent under the authority of section 5 of this Act.
(b) The Secretary of State shall issue such li-
censes unless he determines that the proposed im-
port would not be in accord with the foreign policy
or the security interests of the United States and
with the standards set forth in section 5 of this
Act. Such licenses may be either general or
specific. The Secretary of State is authorized to
revoke any license under the same standards as
govern the issuance of such license. A valid li-
cense issued under the authority of section 12 of
the joint resolution of Congi-ess approved Novem-
ber 4, 1939, shall be considered to be a valid license
issued under this section and shall remain valid,
unless specifically cancelled or revoked by the
Secretary of State, for the same period as if this
Act had not been enacted.
(c) In formulating the policies governing the
licensing authority granted in this section the
Secretary of State shall act after consultation with
the Board.
REGISTRATION
Sec. 7. The President is hereby authorized to
designate from time to time, upon the recommen-
dation of the Board, those arms, ammunition and
implements of war the manufacture, exportation
or importation of which he determines must be
subject to the registration requirements of sections
April 27, 1947
740187—47 4
TH£ RECORD OF THE WEEK
8 and 9 of this Act in order to protect the security
interests or carry out the foreign policy of the
United States.
Sec. 8. (a) Every person who engages in the
business of manufacturing, exporting, or import-
ing any arms, ammunition, or implements of war
designated by the President under the authority of
section 7 of this Act, shall register with the Secre-
tary of State, his name or business name, principal
place or places of business in the United States and
in any foreign country, the names of his agents or
sales representatives in any foreign country, a list
of the arms, ammunition, and implements of war
manufactured, exported, or imported by him and
such other pertinent information as the Secretary
of State may prescribe in the regulations issued
under the authority of section 2 of this Act.
Every person required to register under this sec-
tion shall notify the Secretary of State of any
change in the information required under this
section.
(b) Every person required to register under the
provisions of section 8 (a) of this Act shall pay a
registration fee of $100. Upon receipt of the in-
formation required under tlie provisions of sec-
tion 8 (a), and of the registration fee, the Secre-
tary of State shall issue to such person a registra-
tion certificate valid for five years, which shall be
renewable for further periods of five years upon
the payment for each renewal of a fee of $100 ; but
certificates of registration issued under the author-
ity of section 12 of the joint resolution of Congress
approved November 4, 1939, shall, without pay-
ment of any additional fee, be considered to be
valid certificates of registration under this Act
and shall renaain valid for the same period as if
this Act had not been enacted.
(c) Ajiy person, who, having registered imder
the provisions of section 8 (a), ceases to engage in
tlie business of manufacturing, exporting, or im-
porting arms, ammunition, or implements of war,
may so notify the Secretary of State, and upon
surrender of his certificate of registration there
shall be refunded to him the sum of $20 for each
full year remaining in the period of validity of
his certificate.
(d) All persons required to register under sec-
tion 8 (a) shall maintain, subject to the inspection
of the Secretary of State, or any person or persons
designated by him, such permanent records of
transactions pertaining to the manufacture, expor-
753
THE RECORD Of THE WBBK
tation or importation of arms, ammunition, or
implements of war as the Secretary of State shall
prescribe by regulations issued pursuant to the
authority of section 2 of this Act.
Sec. 9. (a) Every person not required to reg-
ister under the provisions of section 8 (a), who is
engaged or engages in buying or selling for export
or import or offering to buy or sell for export or
import any arms, ammunition, or implements of
war, the manufacture of which requires registra-
tion under the provisions of section 8 (a) or for
the expoi-t or import of which a license is required
imder the provisions of sections 4 (a) or 6 (a),
shall register with the Secretary of State his name
or business name and his place or places of busi-
ness and such other information concerning his
business as may be required by regulations issued
by the Secretary of State under the authority of
section 2. The provisions of this section shall not
apply to the representatives, agents, officers or
employees of persons required to register under
section 8 (a) while acting as such representatives,
agents, officers or employees.
(b) Every person required to register under
the provisions of section 9 (a) shall pay a regis-
tration fee of $100. Upon receipt of the informa-
tion required in section 9 (a) and of the fee, the
Secretary of State shall register such person.
Such registration shall be valid for five years, and
shall be renewable for further periods of five years
upon the payment for each renewal of a fee of $100.
(c) All persons required to register under sec-
tion 9(a) shall maintain, subject to the inspection
of the Secretary of State, or any person or persons
designated by him, such permanent records of the
activities which require their registration as the
Secretary of State shall prescribe by regulations
issued pursuant to the authority of section 2 of
this Act.
GENERAL
Sec. 10. The Board shall make a report to Con-
gress on March 1 of each year, copies of which
shall be distributed as are other reports trans-
mitted to Congress. Such reports shall contain
such information and data collected by the Board
as may be considered of value in the determina-
tion of questions connected with the control of
the trade in arms, ammunition, and implements
of war, and other articles to which this Act relates.
The Board shall include in such reports a list of
all persons registered under the provisions of this
Act, full information concerning the licenses is-
sued hereunder, and such other information as
the President may from time to time direct any
officer, executive department, or independent es-
tablishment of the Government to furnish the
Board ; but the Board may omit any information
the revelation of which it may deem contrary to
the interest of the national defense or security.
Sec. 11. (a) In every case of the violation of
any of the provisions of this Act or of any rules
or regulations issued pursuant thereto such vio-
lator or violators, upon conviction, shall be fined
not more than $10,000.00 or imprisoned not more
than two years, or both.
(b) Any arms, ammunition, or implements of
war, or other articles, exported or imported or the
export or import of which is attempted in viola-
tion of the provisions of this Act shall be subject
to seizure and forfeiture in accordance with the
provisions of sections 1 to 8, inclusive, of Title VI
of the Espionage Act of June 15, 1917 as amended
(22 U. S. C. A. Sees. 401^08).
(c) In the case of the forfeiture of any arms,
ammunition, or implements of war by reason of
a violation of this Act, no such arms, ammunition,
or implements of war shall be sold but they shall
be delivered to the Secretary of War; and the
Secretary of War may order the forfeited articles
destroyed or may retain them for the use of the
armed forces of the United States.
Sec. 12. For the purposes of this Act, the term
"United States" includes the several States and
Territories, the insular possessions of the United
States, the Canal Zone, and the District of Colum-
bia; the term "person" includes a partnership,
company, association, or corporation, as well as a
natural jierson.
Sec. 13. If any of the provisions of this Act, or
the application thereof to any person or circum-
stance, is held invalid, the remainder of the Act
and the application of such provision to other
persons or circumstances shall not be affected
thereby.
Sec. 14. Section 12 of the joint resolution of
Congress approved November 4, 1939 (54 Stat.
10 ; 22 U.S.C. 452) and Senate Joint Resolution
124 of January 26, 1942 (Public Law 414, 77th
Cong., 56 Stat. 19) are hereby repealed; but
offenses committed and penalties or liabilities in-
{Continued on page 764)
754
Department of State Bulletin
Post-UNRRA Relief Program
STATEMENT BY ACTING SECRETARY ACHESON
On February 21, 1947, the President recom-
mended that the Congress authorize the appro-
priation of 350 million dollars to assist in com-
pleting the task of bringing relief to the people
of the liberated countries. This is a matter of
the gi'eatest urgency. We are coming perilously
close to the day when, if we do not procure and
ship food to certain of these countries, the pipe
lines will be broken, and even the present meager
rations will not be able to be maintained. For
example, after April 30 no food shipments are in
sight for Austria except as the Army may be able
to divert some from its program for Germany or
other occupied areas, and for Greece only two
shiploads — the last arranged for through
UNKRA — are available. Other countries are only
slightly better off.
Great progress has been made by the devastated
countries in their struggle to return to a normal
life. We can be justly proud of the part which
we have played in helping to keep these people
alive and in giving them the strength to rebuild
their shattered economies. Yet the task is not
quite finished. A few of the liberated countries
are not yet able to stand alone without outside as-
sistance. If we do not help in the completion of
the relatively small part of the task still remain-
ing, much of the work already done will have been
fruitless.
The General Assembly of the United Nations
on December 11, 1946, passed a resolution which
recommended that post-UNRRA relief needs be
met through direct arrangements between the in-
dividual contributing coimtries and the recipient
countries. The resolution urged all members to
assist in meeting those needs, recommended in-
formal consultation among members of the United
Nations to coordinate their respective relief pro-
grams, and established a Technical Committee to
analyze relief needs for 1947 following the termi-
nation of UNHRA shipments. This plan was
urged by the United States as being more efficient
and better suited to handle the remaining prob-
lem than a contmuation of UNRRA or some other
United Nations operating body. We have coop-
erated fully in the work of the Technical Com-
mittee and in consultations with other members
which have been arranged by the United Nations
Secretariat.
During the past several months we have made
careful studies as to the extent of relief needs,
utilizing the information and experience of the
various Departments of the Government and of
our Missions abroad. Extensive on-the-spot sur-
veys have been made by personnel of these Mis-
sions and we are constantly receiving up-to-date
information concerning economic and agricultural
developments in these countries. We have fully
considered the findings of the United Nations
Technical Committee, although in some respects
our conclusions differ from theirs. Our calcula-
tions and those of the Technical Committee both
cover needs for the calendar year 1947, making
allowance for UNRRA shipments in the early
part of the year.
Our studies indicate that the total needs for
basic relief in 1947, following the termination of
UNRRA shipments, amount to approximately
600 million dollars. Austria, Greece, Hungary,
Italy, and Poland are the countries which appear
to need assistance, and China will probably have
emergency needs for food imports to prevent suf-
fering and starvation in certain areas. These
studies are being kept under continuous review.
Other countries which have heretofore been re-
ceiving assistance from UNRRA will not, accord-
ing to our calculations, require further relief. The
relief needs have been calculated on a minhnum
basis and include no requirements for rehabilita-
tion or reconstruction. In making our estimates
we first determined the essential imports required
to supplement the supplies produced locally, in
^ Made before the Senate Committee on Foreign Rela-
tions on Apr. 15, 1947, and released to the press by that
committee on the same date.
April 27, 1947
755
THE RECORD OF THE WEEK
order to feed the people at a level of 2,000 to 2,200
calories and to prevent economic retrogi'ession
which would threaten the supply of the basic essen-
tials of life. We then deducted from the cost
of these minimum imports the total resources avail-
able to each country which could be utilized to
pay for them, including current earnings of for-
eign exchange and existing and anticipated foreign
loans and credits. The difference respresents the
extent of the relief need.
I should point out here that the strictly relief
aid to Greece which is contemplated under tliis
bill constitutes an indispensable foundation for
the other and more extensive program of economic
assistance which would be provided under the
bill recently reported by this committee for aid
to Greece and Turkey. There is no duplication
involved in the two. The assistance to Greece in-
cluded in the other bill involves a program of re-
construction and rehabilitation which can be ef-
fectively undertaken only after the basic relief
needs have first been met.
The 350 million dollars which is requested repre-
sents approximately 58 percent of the estimated
total need as compared with our contribution of
72 percent to the resources of UNRRA. Although
there are no definite assurances as to the total
amount which will be made available by other
countries we are hopeful that the additional needs
will be met from such sources. The British have
promised the equivalent of 40 million dollars for
Austria; the Norwegian Parliament has voted 15
million kroner (3 million dollars) for relief in
Poland, Finland, Austria, and Greece; and the
Danes have stated they plan to contribute about
4 million dollars' worth of relief supplies. It has
been reported that the U.S.S.R. is making an
advance of gold in the amount of 27.5 million
dollars to Poland which, according to the report,
can be used at least in part to procure essential
supplies included in the minimum Polish import
program. We believe that a number of other
contributions may be forthcoming when a deci-
sion is reached in regard to our own program.
I should like here to emphasize a point which
we consider to be of fundamental importance.
We believe it would be a mistake to determine
finally at this time the total amount we would
allocate to any country from our contribution.
The relative needs of the various countries should
be appraised continuously over the ensuing months
and specific programs approved from time to time
in the light of current data. In addition, we do
not now have complete informaton as to the pro-
grams of other contributors and we should be
in a position to cooperate with them and to adjust
our program in the light of their contributions
to the various needy countries. If a total amount
from our contribution were now announced for
each recipient country even on a tentative basis,
the people in the country would tend to assume
that they had a vested interest or right to this
particular amount. This problem has existed in
the case of UNREA where we have found that any
attempt to adjust previously announced programs
to take account of changing needs has caused
resentment and consequent embarrassment.
I should like to state briefly the reasons why
we have included Poland in the list of potential
recipient countries. This is done solely to be in
a position to help in preventing suffering and
serious malnutrition to the extent that our assist-
ance is clearly needed for this purpose. We are
not proposing a progi-am of reconstruction or aid
to the regime in Poland. We have subscribed to
the resolution of the General Assembly of the
United Nations which states the principle that at
no time should relief supplies be used as a political
weapon and calls upon all members of the United
Nations to assist in the furnishing of relief when
needed and where needed. Moreover, it seems
to me wholly in keeping with our traditions to
furnish relief where needed and, providing we can
be sure it will not be misused, to alleviate the suf-
ferings of human beings, whatever our opinion
of the government under which they live. Our
help would be made available only on the condition
that the Government of Poland agrees to the
stringent but fair conditions we would lay down
for all countries and lives up to these conditions
faithfully. These conditions, which I shall dis-
cuss in a moment, are calculated to provide ade-
quate assurance that relief aid would reach the
people needing it and would not be used to pro-
mote the political aims of the Government. Fur-
thermore, the requirements for full publicity in
the country would insure that the people would
know the American source of the help and would
understand its purposes. Thus we would main-
tain the ties of friendship between our people
and the people of Poland and demonstrate to
them that we have not forgotten them.
756
Department of State Bulletin
I believe that the resolution being considered by
the committee establishes adequate guaranties that
relief supplies will be administered under firm
American control and that this control will be
exercised to the end that the supplies are shipped
where they are needed and are used within the
receiving countries in a manner consistent with
the humanitarian purposes of this resolution. It
is provided that the relief to be furnished shall
be restricted to food, medical supplies, processed
and unprocessed materials for clothing, fuel, fer-
tilizer, pesticides, and seed. All these items are
basic essentials of life.
No relief can be made available unless we are
assured that the distribution, not only of our sup-
plies but of all similar supplies produced locally
or imported from other sources, will be made in
each country without discrimination as to race,
creed, or political belief. We must also be as-
sured that the recipient country is taking all pos-
sible measures necessary to reduce its relief needs
and provide for its own rehabilitation.
It must also agree to furnish full reports con-
cerning the production, use, distribution, importa-
tion, and exportation of any supplies which affect
its relief needs. Representatives of the American
press and radio as well as governmental repre-
sentatives must be permitted to observe fully and
report freely regarding the distribution and utili-
zation of the supplies. All such supplies must
be used to meet the needs of the population and
cannot be exported or used for non-essential pur-
poses. United States representatives must be per-
mitted to supervise the distribution of our supplies.
The government of the country must give us
assurance of full publicity within their country
as to the character, scope, and progress of our
program. If any of these conditions are violated
or if for any other reasons it appears inadvisable
to continue shipments they shall be stopped
immediately.
It is also provided that the Congress, by con-
current resolution, may direct the termination of
the program to any country.
The bill authorizes provision of relief in the
form of free grants. We do not believe that needy
countries should be required to assume debts for
consumable relief commodities, such as food,
which do not add to productive capacity and thus
provide the means for repayment. The countries
under consideration for relief are economically
TH£ RECORD Of THE WEEK
bankrupt. The special case of crisis in Greece
has already been examined in detail by the com-
mittee. The needs for rehabilitation and recon-
struction of the other countries under considera-
tion are such that all of their available resources
and foreign exchange will be needed for some time
for the purchase of essential imports and for the
servicing of reconstruction and rehabilitation
loans. Their ability to obtain such loans and the
soundness of such loans if made would be greatly
impaired if, in their present weakened condition,
they had to assume an additional debt burden for
relief items. In consulting with other possible
contributors we have urged them to provide relief
on a free-grant basis. If we were to require re-
payment I feel sure that other countries would
also do so.
If this program is approved we plan to negotiate
an agreement with each recipient government.
This agreement would include all of the condi-
tions which are specified in the bill and would also
cover the following points :
(1) Arrangements under which programs of
supplies would be approved by United States
representatives ;
(2) An outline of the general procedures and
controls in regard to the procurement and ship-
ment of supplies ;
(3) Provision for an adequate ration and price-
control system so that all classes of the popula-
tion irrespective of purchasing power shall re-
ceive their fair share of essential supplies ;
(4) Requirement that all local funds accruing
from the sale of United States supplies be depos-
ited in a special account to be used only upon ap-
pi'oval of the United States for relief and rehabili-
tation purposes.
After conclusion of such an agreement we would
approve from time to time target programs cov-
ering the type and amount of commodities which
could be px'ocured over, say, a two- or three-month
period. The supplies would then be procured
either through United States Government agen-
cies or by the recipient government under strict
suiDervision and control. In tlie latter case funds
would be released in the form of credits subject
to the control of the President, only in the amounts
needed to meet contract obligations as they
accrue.
Under the over-all direction of a supervisor of
(Continued on page 76G)
April 27, 1947
757
Our Domestic Economy and Foreign Affairs
BY ASSISTANT SECRETARY THORP
It is worthy of some note that the Congress of
the United States has spent more time and energy
on foreign aflFairs since it assembled three months
ago than on domestic matters. Tlie Congressional
Record is full of speeches on this or that phase
of foreign relations. The humanitarian angle ap-
pears in relief and refugee legislation; the eco-
nomic angle in sugar and rubber legislation and in
the extension of the war powers for export and im-
port controls ; the political angle in the four peace
treaties now before the Senate ; the security angle
in the discussions of the atom bomb. And there
are triangular or multi-angular items such as the
Greek and Turkish progi-ams, temporary adjust-
ments in immigration quotas, and the foreign in-
formation program. There is no sense in speaking
today of isolation. It never did exist, and it never
can.
This is very clearly the case in the economic
field. Our economic life is thoroughly entangled
with the rest of the world. We seldom realize that
fact, any more than New Yorkers think about
their dependence on New England or California,
but the world has grown smaller and smaller and
the economic independence of any individual or
area has grown less and less. Today the best word
to describe this situation is not independence, nor
dependence, but interdependence — that is, depend-
ence both ways.
Let us start with the most obvious relationship —
our dependence upon other countries for certain
products. Last year we imported 5.2 billion dol-
lars worth of commodities from abroad and the
estimate for 1947 is 6.7 billion dollars. The
greater part of these tremendous totals either was
not available here or could have been obtained or
produced here only at much gi-eater cost. Some
items need a different climate — coffee, rubber, ba-
nanas, and chocolate, for example, all come to this
' An address delivered before the Economic Club of New
York in New York City on Apr. 16, 1947, and released to
the press on the same date. Willard L. Thorp is Assistant
Secretary of State for economic affairs.
country by boat. Tlie lac bug which is responsible
for our shellac seems to thrive only in India and
Siam. Nor were minerals located on this globe in
some earlier geologic age with an adequate con-
sideration for the future requirements of the
United States of America. Consequently, our tin,
diamonds, and nickel, for example, must come from
abroad. In some few instances, the technologists
have been able to reduce our dependence on other
areas by developing new products and processes
such as synthetic rubber and the fixation of nitro-
gen. But in other fields, our dependence on for-
eign sources is increasing rapidly — a tendency ac-
celerated by the great demands placed by the war
upon our natural resources. Perhaps the extreme
illustration is lead, which we regularly exported
before the war, and which must now be imported
in substantial quantities to meet our domestic re-
quirements. In fact, a number of our bottlenecks
in production at present can be traced to our de-
pendence upon foreign resources and the failure
of foreign supplying enterprises, for one reason
or another, to operate at full production.
Our foreign relations also involve the flow of
commodities in the other direction. Over the
years, a segment of our national plant and equip-
ment has been created in order to sell to foreign
markets. Our electric refrigerators, our flash-
lights, our rubber tires, and our cotton go all over
the world. At the moment, we have an unsatis-
fied domestic market in many items, but cotton
would not be selling at 35 cents per pound if we
had not sent millions of bales to foreign countries,
largely through UNRRA and Export-Imjiort
Bank credits.
It is obvious that the flow of goods in and out
of this country is a big industry in itself, re-
quiring transportation, insurance, financing, and
other services. And anj' .serious failure to main-
tain this flow would put some millions of American
businessmen, farmers, and workers out of business.
There is another important type of economic
link, and that is in the field of ownership and
finance. Americans ovn\ factories abroad. Our
758
Department of State Bulletin
private and public extension of credit has made
us a great creditor nation. Some of our recent
Government assistance has gone out as an outright
gift — but much of it has been in the form of credits.
Private investments carried over from before the
war bulk exceedingl}' large. As owners and
creditors we have a very real and tangible stake
in other economies.
Furthermore our economy is tied to other econo-
mies in the process of economic operation itself.
Commodity prices, for example, are not insulated
from foreign influences. It is not neccssarj' for
there to be a major flow of a commodity from
one country to another to affect prices — the fact
that it can flow is enough to keep prices in a rough
sort of relationship. And financial operations are
even more sensitive. International finance has
always transmitted strains and stresses fi'om one
country to another with great rapidity, although
various steps taken in recent years to reinforce
credit structures have provided some degree of
protective insulation.
Perhaps the best demonstration of this matter
of international economic relationship is provided
by the record of business activity in various coun-
tries in the past. More than a century ago there
were clear evidences of the international charac-
ter of cycles of business conditions. The boom
of 1815 and the sharp collapse thereafter appear
in the records of France, Great Britain, and the
United States. The same end to a prosperity
period appeared in many countries in 1837, 1847,
1857, 1873, and in 1882. And in more recent years,
the international synchronization of the rhythm
has become increasingly clear cut, except when
wars have thrown various countries out of step
temporarily. The year 1890 was a crisis year
everywhere, and so were 1900, 1907, 1913, 1920,
and 1929. The record is clear that no major trad-
ing country has been able to isolate itself for long
from the eflects of business conditions in other
countries.
I could continue to develop this line of argu-
ment, but I doubt if much persuasion is needed
on the general point that our domestic economy is
affected by foreign economic affairs. But this
poses a most difficult question for American foreign
economic policy. The difficulty is created by the
fact that so much of the world is in terrible shape.
For great areas of the world the present level of
economic activity is tragically low. Not enough
April 27, 1947
THE RECORD OF THE WEEK
men are working. Not enough goods are being
produced. Whole industries and trading areas
suffer from economic paralysis.
We in this country have difficulty in fully ap-
preciating the situation in other countries because
the United States is above the pre-war level in
economic activity. We are breaking production
and employment records. But we are very much
the exception. In some parts of the world, indus-
trial and agricultural activity is not more than
half the pre-war level. Hunger and starvation are
the present threats to existence rather than bullets
and bombs.
This wide contrast has implications for us from
many angles. At the moment, we may feel com-
petent and confident in our prosperity. But we
cannot escape from the lines of international con-
tact which I outlined earlier. The depressed con-
dition of so many other countries offers us either
the opportunity to maintain our prosperity as they
recover, or the threat of depression if they slide
into chaos. I do not wish to imply that economic
conditions in this country are entirely dominated
by foreign influences. I am sure that we are able
to slide into depression without outside aid. But
I do say that the economic state of the rest of the
world is a major influence on business conditions
here.
The low level of activity in so many other coun-
tries is due to a number of causes which presum-
ably do not need elaboration. Global war, by defi-
nition, means not merely the effort to destroy the
military forces of the enemy. It means, also, the
effort to undercut the effectiveness of the enemy's
military operation by disrupting and destroying
the economic life which supports the enemy. Such
methods of warfare proved to be so thoroughly
effective that the heritage of the war in nearly all
European countries is not merely the simple ef-
fects of conversion to war and undermaintenance
during the war but the disastrous total loss of sig-
nificant elements in the economy itself. Transpor-
tation facilities and strategic factories were favor-
ite targets. The estimates of damage from
destruction and looting run to more than one half
the industrial wealth in those countries which
suffered most.
The problem is not merely one of physical equip-
ment, of fixed capital. It also involves the effects
of the war on manpower, the eradication and dis-
placement of skilled labor and management, the
759
THE RECORD Of THE WEEK
disruption of usual channels of distribution, and
the disappearance of many facilitating services.
The process of recovery involves the reconstruc-
tion and reorganization of a thousand and one ele-
ments, all of which must work together smoothly
to enable a nation to function as a going concern.
And even this is not the full total of the problem
of these countries. Going beyond the direct ele-
ments or factors of production, there is the need
for liquid financial resources, a necessary part
of modern economic life. Enterprises must have
working capital as well as fixed capital. As a
natural corollary, nations must have foreign ex-
change. And this in turn affects their fiscal situa-
tion. Both foreign exchange and internal cur-
rencies must provide some assurance of stability.
Until this stability is within sight, working capital
will be reluctant to come out of hiding. It also
means that part of the scarce and much-needed
supplies of goods will be hoarded, such as food
on the farms. They will move to market only
if goods are available for purchase, or currency
provides a secure medium for holding purchasing
power for future use.
There is a third element in the problem which
interferes with the efforts of these countries to
cope with physical reconstruction and a virtually
broken-down financial machine. This additional
deterrent to recovery is political instability, which
weakens the nations' framework of law and order,
thus laying open the economic processes to piracy,
theft, corruption, and special privilege.
Political instability assumes many forms in this
post-war period. In those areas of the world
where native populations have achieved a new
and uncertain independence, the young unseasoned
governments have not yet established any firm
pattern of new policy. Many of these areas and
countries are important to the world economy as
sources of raw materials. The present uncertain-
ties concerning their probable political behavior
create a risk which stands in the way of immediate
economic investment and development. Else-
where, within mature countries, a struggle for
power is going on with the result that, whatever
governments may have formal authority, their
coalition character greatly limits the extent to
which they can take effective action without losing
the support of some of the elements necessary to
maintain their authority. Even a strong govern-
ment would hesitate before taking an unpopular
760
measure like reducing the food ration or greatly
increasing taxes. Wliere governments are weak,
it is not surprising that they are prone to tempo-
rize rather than to take drastic action.
These many difficulties, particularly those in
the economic field, have led countries to take what-
ever kinds of extraordinary measures the traffic,
measured in votes, will bear. These vary from the
operation of internal relief programs to the tak-
ing over of sections of industry for direct govern-
mental control through the process of nationali-
zation. Unusual fiscal measures are seized upon
in the effort to prevent runaway inflation ; and in
the field of foreign economic relationships most
countries are now exercising controls through
quota systems over the type of goods to be moved,
and through foreign exchange control over the
process of international payments.
These various steps should not be regarded as
some hidden conspiracy against the business com-
munity or even against the principles of freedom
of enterprise. To a large extent, they are the
inevitable consequences of the present state of the
world and, more particularly, of the countries
where the distress is greatest. Wlien we in the
United States had a major economic job to do
in producing the goods needed for the war, we
found it necessary to establish many of these same
types of control ; and the foreign countries today
have a much more difficult task to utilize the lim-
ited resources available to them to the full.
It is inevitable that many of these controls should
be essentially restrictive. They arise because of
the necessity for allocation to the most essential
use of some short facility or material. But this
leads to a basic difficulty. If a number of countries
all adopt restrictive devices, trade among them is
established at a minimum. In fact, it must then
be carried on by the painful procedure of bilateral
barter agreements under which arrangements are
made for the exchange of specific quantities of
specific goods. Obviously, such a way of carrying
on trade is certain to fail to uncover most of the
opportunities for Avorking out transactions in the
interest of all concerned. And it makes all trade
dependent upon arrangements made by govern-
ments rather than by businessmen.
Up to now, I have pointed out that the world
is in a critical economic state and that the result
of this necessarily has been a wide extension of
government controls and restrictive devices. A
Deparfmenf of State Bulletin
third proposition which I am sure needs only to be
suggested is that there is no single grand action
which can resolve these difficulties, no one neat
I'eraedy for the world's economic ills. The domes-
tic rate of production, the volume of foreign ex-
ports, the volume of foreign imports, the converti-
bility of foreign exchange, the stability of domestic
currency, the extent of reconstruction and rehabili-
tation, the level of employment, and the standard
of living, or perhaps I should say, of survival, are
all completely intertwined with each other. Econ-
omists have sometimes tried to picture the opera-
tion of the economic system in terms of a series of
complicated simultaneous equations. In mathe-
matical terms, none of the elements which I have
been describing is an independent variable. It
follows necessarily from this basic fact that any
program to deal with the situation must contain a
number of elements. And failure to act in any
area provides a brake on the possibility of progress
in the others.
I shall not endeavor today to outline the efforts
made by the United States Government with rela-
tion to each of the variables in the international
economic picture. Obviously, we cannot bring
about recovery in any of these countries. All we
can do is to help create conditions which make it
possible for the people of these countries, by their
own efforts, to get the economic machine into op-
eration again. We can provide gasoline and spare
parts and perhaps a road map. We have provided
goods and financial support to many countries
through the very extensive relief and rehabilitation
program carried out by UNRRA. After UNRRA
halts its operations we intend to continue the job
through a further relief program.
But relief is obviously a stopgap, although a
completely necessary one. The long-run program
requires reconstruction, cuiTency stability, and the
revival of trade. As to the first two, we have al-
ready given nmch direct assistance. We have made
surplus goods, including ships, available to foreign
governments on credit terms. We have made ex-
tensive loans, some calculated with reference to
specific reconstruction progi'ams like the French
loan, and some to ease a balance-of-payments def-
icit and permit the relaxation of foreign exchange
controls, like the British loan. We have been the
chief sponsor and contributor in the creation of
two important international institutions — the In-
ternational Bank to deal with reconstruction and
THE RECORD Of THB WBBK
development credits, and the International Mone-
tary Fund to work for stable and convertible cur-
rencies. However, I wish to speak particularly of
the problem in the field of trade because of its vital
importance to our economy.
In the period before the war, interferences with
trade were clearly on the increase. The world de-
pression had thrown trade out of balance, and
restrictions on imports were used by various coun-
tries to prevent any drain on the assets needed to
back their various currencies. Furthermore, it
was a period when forces of aggression were lead-
ing countries to adopt nationalist economic pro-
grams, and many nations were endeavoring to
reduce their dependence upon foreign sources of
goods and materials. Trade barriers rose rapidly.
The present picture is far worse. Much of the
world's trade today is carried on within a frame-
work of specific quota restrictions. These obvi-
ously are likely to be much more harmful than
tariffs. Quotas are absolute and under no cir-
cumstances can trade expand beyond their rigid
limits. Tariffs do impose a hurdle but it is always
possible for goods to flow over a tariff barrier if
there is a sufficient need for them.
Quota systems carry with them another type of
limitation not found in tariffs and that is that
quotas necessarily imply allocation. A quota
means that less can be imported than would move
in a free market. But how will the reduction be
made ? By the government issuing specific licenses
for specific imports. This means that the trade
relationship of the quota-establishing country
with each other country becomes a matter of sepa-
rate negotiation, controversy, and pressure. Thus
a tremendous amount of specific government inter-
ference arises and the individual businessman is
helpless in the face of decisions made by his and
by foreign governments.
It is against this background that the United
States put forward the proposal that an interna-
tional trade organization should be established as
one of the essential institutions of the United
Nations and that a fundamental purpose of the
organization should be to find ways and means of
reducing barriers to trade. Here in this country
we went so far as to develop, through an interde-
partmental committee, a proposed charter for such
an organization. Last November this whole prob-
lem was discussed in London by a commission,
consisting of representatives of 18 countries,
April 27, 1947
761
THE RECORD OF THE WBEK
which had been set up by the United Nations for
the purpose. The American draft was taken as
the basis of discussion. At the conference a sub-
stantial part of the charter was agreed upon by the
conferees althougli, of course, such agreement
had no binding effect on the govenunents con-
cerned.
Since the conference, the revised charter has
been printed and distributed widely in the United
States. The interdepartmental committee in-
volved, the Executive Committee on Economic
Foreign Policy, has held informal hearings in
Boston, New York, Washington, Chicago, Denver,
New Orleans, and San Francisco. In general, the
hearings indicated wide-spread support for the
general idea and a number of specific suggestions
were presented which have been given careful
study in Washington, and many of which have
been incorporated in the American position.
However, it is not enough for the United States
to urge that an international organization be es-
tablished. For 14 years, as expressed in the au-
thority given by Congress to the President, we have
had as our national policy the negotiation of re-
ciprocal trade agreements bilaterally, by means of
which very carefully selected reductions in the
American tariff were made in exchange for reduc-
tions in the trade barriers in the other country with
whom we were negotiating. Last week in Geneva
we commenced the negotiation of such reciprocal
trade agreements with 17 other countries and hope
thus to demonstrate in no uncertain terms our will-
ingness to lower trade barriers, providing these
and other countries will show their willingness to
follow the same general course.
This is a positive program, an American pro-
gram. It is a reflection of our own economy. The
American economic system is based upon a tremen-
dous market within which trade flows without
restrictive barriers and with a single medium of
exchange. The high standard of living in New
England is made possible in large part by the
tremendous interchange in goods and services
which takes place between New England and the
rest of the United States. Although we recognize
that there are times and circumstances when the
government nnist step into the picture, by and
large we leave the economic process to the work-
ing of economic forces and the direction of individ-
ual businessmen and consumers.
The contrasting picture of multiple government
controls by means of quotas is bad not merely be-
cause of its restrictive character, but because in all
probability it would have a serious impact upon
our way of doing business in our own country.
Barter arrangements and qviota systems are fixed
not by private traders but by public officials. If
we in the United States are to be faced by quotas
all around the world, we shall have to bargain our
way into foreign markets product by product,
country by countrj', and month by month. We
shall have to obtain our needed raw materials by
the process of negotiation.
Private traders are helpless in the face of such
a situation. To deal effectively, we might need to
put on a quota system of our own, and finally to
establish either a Government export and import
monopoly, or a complete system of controls by
licenses. I therefore speak with the utmost seri-
ousness when I say that the pattern for interna-
tional trade adopted by the leading trading na-
tions must be a matter of great concern to those
who wish to preserve the American economic sys-
tem in the United States, let alone to strengthen it.
These are major stakes, and without strong
leaderehip from the United States there is little
hope that many countries can dare to take the risk
of withdrawing their protective controls which
are so restrictive. The program must move ahead
simultaneously on the various fronts which I have
indicated. Failure to carry through effectively
on our part means that we risk our international
leadership in the economic field, our foreign trade,
and some aspects of our economic system itself.
I have been focusing my attention upon the
economic aspects of our interest in foreign affairs,
but I do not want to end on that note. At least
two other angles should be mentioned, both of
which are closely related to the preservation of
the American way.
First is the humanitarian, the friendly, the per-
sonal concern. I am unwilling to recognize that
this country is only interested in the materialistic.
I think we have shown our generosity through our
contributions to relief and our many indirect and
informal types of assistance. Tliat is part of the
American way, and it does not stop at the national
boundary.
And second is our search for security, for na-
tional security. We are not a warlike nation. We
are slow to enter into war, and we are overwhelm-
ingly eager to find ways and means of putting
762
Department of State Bulletin
an end to the use of force. Not only is war itself
such a terrible thing, but the burden of armaments,
the providing of security in peacetime through
preparedness, is a tremendous burden upon
mankind.
But this brings us back to my central theme.
Economic health will not assure peace, but it is
a substantial preventive of conditions which create
international ill-will. Access to markets and raw
materials, non-discrimination in international
THE RECORD OF THE WBCK
trade and development, and the creation of a forum
wherein economic controversies can be handled
in an orderly way will all help towards the goal
of universal peace.
I see no escape from the fundamental proposi-
tion : We cannot separate our domestic and our
foreign affairs. And the strengthening of our
domestic economy depends in part upon the suc-
cess of our efforts to bring economic health, sta-
bility, and sanity to the rest of the world.
International Trade Conference Convenes in Geneva
STATEMENT BY DEPUTY CHAIRMAN OF THE U.S. DELEGATION
It is a matter of regret that the Chairman of the
Delegation of the United States, Mr. W. L. Clay-
ton, Under Secretary of State for Economic
Affairs, was unable to be present for the opening
of this meeting. He is now on his way to Geneva
and should be with us by the middle of the week.
The statement that I shall make on his behalf is
brief.
In the speech which he delivered at Waco, Texas,
on the 6th of March, the President of the United
States made clear the great importance which he
attaches to the success of this meeting. Speaking
of the preparation of a charter for an interna-
tional trade organization, he said the progress that
has already been made on this project is one of the
most heartening developments since the war.
If the nations can agree to observe a code of
good conduct in international trade they will co-
operate more readily in other international af-
fairs. Such agreement will prevent the bitterness
that is engendered by an economic war. It will
provide an atmosphere congenial to the preserva-
tion of peace and, speaking further of the negotia-
tions directed toward the reduction of tariffs, the
elimination of other restrictive measures, and the
abandonment of discrimination. The President
went on to say tlie success of this program is es-
sential to the establishment of the International
Trade Organization, to the effective operation of
the International Bank and the Monetary Fund,
and to the strength of the whole United Nations
structure of cooperation in economic and political
affairs. The negotiations at Geneva must not fail.
April 27, 1947
These last words may be taken as the message of
the President to this meeting: The negotiations
at Geneva must not fail. During the months that
have intervened since the first meeting of this
committee, the Government of the United States
has completed its preparation for the work that is
about to begin.
As a part of this preparation it carried the
London draft of the charter to the American peo-
ple and asked for their advice in informal con-
ferences and in public hearings held in seven cities.
Testimony was received from some 250 persons
representing business, labor, agricultural, con-
sumer, civic, and religious organizations from 20
states. This testimony revealed a careful and
sympathetic apfjraisal of the document and
brought forth a number of thoughtful suggestions
for its clarification and development. More re-
cently a committee of the United States Senate
subjected the charter to a detailed and painstak-
ing analysis and in the course of this inquiry
additional suggestions for the improvement of the
draft were made as a result of these suggestions.
The American Delegation is prepared at the
appropriate time to present a number of proposals
for aniendjnent. All of these proposals, I may
add, are in the spirit of the charter and are con-
sistent with the purposes upon which we are all
' Made at a plenary session on Apr. 14, 1947 and released
to the press in Washington on Apr. 1.5. Clair Wilcox, Di-
rector of the Office of International Ti-ade Policy, Depart-
ment of State, is Deputy Chairman.
763
THE RECORD OF THE WEEfC
agreed. The other part of our preparation for
this meeting has consisted of steps leading up to
definitive negotiations on tariffs and other barriers
to trade. It will be recalled that this committee
had agreed at its meeting in London upon the
procedures that were to be followed at each stage
of this work.
At the first stage each member of the committee
was to transmit to each other member a prelimi-
nary list of concessions which it proposes to re-
quest. This we have done.
At the second stage, each member should sub-
mit a schedule of the proposed concessions which
it would be prepared to grant to all other members
in the light of the concessions it would have re-
quested from each of them. This we are now
prepared to do. The basis of these negotiations
is set forth in article 24 of the charter which pro-
vides that tariff negotiations shall be on a recipro-
cal and mutually advantageous basis. This means
that no country would be expected to grant con-
cessions unilaterally without action by others or
to grant concessions to others which are not ade-
quately counterbalanced by concessions in return.
It is on this basis that the United States is now pre-
pared to, as soon as the committee is ready, in
accordance with the procedure upon which it has
agreed to, enter into actual negotiations whether
they be on the text of the charter or on the details
of trade concessions. We shall be ready to par-
ticipate. It is our hope that these negotiations
will be initiated at the earliest possible moment
and carried forward with the greatest possible
dispatch. We realize of course that the magnitude
and the complexity of this undertaking are with-
out precedent, but we know too that this committee
has already earned for itself a reputation for quiet
industry, steady progress, and the prompt comple-
tion of an appointed task — a reputation that gives
ground for confidence of achievement in the weeks
that lie ahead.
Arms, Ammunition, and Implements
of War — Continued from page 754
curred under section 12 of the joint resolution of
November 4, 1939, prior to the effective date of this
Act may be prosecuted and punished, and suits
and proceedings for violations of section 12 of the
joint resolution of November 4, 1939, or of any
764
rule or regulation issued pursuant thereto may be
commenced and prosecuted in the same manner
and with the same effect as if that section of the
joint resolution had not been repealed.
Sec. 15. The functions conferred by this Act
shall be excluded from the operation of the Ad-
ministrative Procedure Act (Public Law 404, 79th
Cong.), except as to the requirements of section 3
thereof relating to public information.
Sec. 16. There is hereby authorized to be appro-
priated to the Department of State, out of any
money in the Treasury of the United States not
otherwise appropriated, such sums as may be
necessary for the purpose of carrying into effect
the provisions of this Act.
Sec. 17. This Act may be cited as the "Munitions
Control Act of 1947".
U.S. Requests Reinstatement of Cre-
dentials for Correspondent in Spain
[Released to the press April 14]
On April 2, 1947, Francis E. McMahon, corre-
spondent in Spain for the New York Post, was
notified in Seville by representatives of the Sub-
secretariat of Popular Education of the with-
drawal of his press credentials.
On April 3, 1947, Philip W. Bonsai, U.S. Charge
d'Affaires in Madrid, informed the Spanish For-
eign Oifice of what had occurred and requasted that
an investigation be made of the circumstances sur-
rounding the withdrawal of Dr. McMahon's press
credentials. On April 5, 1947, the Spanish For-
eign Office confirmed the withdrawal of Dr. Mc-
Mahon's press credentials. On this occasion Mr.
Bonsai made an energetic oral protest which was
presented in written form on April 8. On April
11, 1947, Spanish Foreign Minister Martin A.
Artajo informed Mr. Bonsai that the Spanish Min-
ister of Education had decided not to renew the
press credentials of Dr. McMahon. The with-
drawal of credentials was said not to be due to any
one single story. The Foreign Minister said that
the action was taken in view of the "tendencious
and often factually inexact" nature of Dr. Mc-
Mahon's articles. Mr. Bonsai had previously been
informed that the reason for the withdrawal of
the credentials was that Dr. McMahon had "failed
to meet the test of indispensable objectivity."
Mr. Bonsai contrasted this treatment with the
Department of State Bulletin
complete freedom of action enjoyed by Spanish
correspondents in the United States. This Gov-
ernment believes the action of the Spanish Gov-
ernment in withdrawing Dr. McMahon's creden-
tials represents a regrettable modification of the
policy of freedom from censorship for foreign cor-
respondents in Spain which was announced by the
Spanish Government in April 1945.
The Spanish Foreign Minister assured Mr. Bon-
sal that he would receive in due course a written
reply to his protest delivered on April 8. The
text of Mr. Bonsai's note follows :
"Excellency : I have the honor to refer to the
case of Dr. Francis E. McMahon, correspondent of
the New York Post, which I discussed with Seiior
Jose Sebastian de Erice, Director General of For-
eign Policy, on April 5. This case has given seri-
ous concern to the Government of the United
States and this communication reflects specific in-
structions from the Department of State.
"The facts in the case appear to be as follows :
"On March 24, the Director General of Press,
Seiior Tomas Cerro, renewed Dr. McMahon's press
credentials for a six-month period. On March 26,
Dr. McMahon filed in Seville his regular weekly
telegram to his newspaper. This telegram was
held up in Madrid apparently by the press au-
thorities without notification to Dr. McMahon with
the result that Dr. McMahon's employer, the New
York Post, was seriously concerned at not hearing
from him. On Wednesday, April 2, Dr. McMahon
was informed by the Seville representative of the
Subsecretariat of Popular Education that he
should return his press card to the authorities.
He was given no explanation of the basis for this
action and he refused to comply with the order
until he did receive an explanation.
From what Seiior Erice tells me, I gather that
the reason for which Dr. McMahon incurred the
displeasure of the authorities was the following
passage from his telegram of March 26, b^sed upon
an article taken from the magazine Catedra, weekly
publication of the official syndicate of university
students at the University of Seville :
" 'Police Seville been active this week. Seized
all copies could lay hands on university student
publication Catedra. Magazine edited by Falange
gi'oup at institution.
" 'Not seized because attacked tiiis issue certain
IHB RECORD Of IHi WEEK
professor for his widely known democratic views.
Blasts against this professor appeared before with-
out any sign disapproval political authorities.
" 'It was their assault upon integi'ity two public
officials aroused wrath politicians. Students in-
serted alleged news item about Minister Foreign
Affairs named Martinart and his colleague head
Cultural Institute by name Ruskijimenich. Both
men declared had planned make movies about re-
nowned conquistador. To this effect created com-
mittee they dominated. From this committee, ac-
cording story, the two men solicited funds. "Com-
mittee" studied matter finally informing Martinart
and Ruskijimenich would be allotted them one
million dollars. Although incident allegedly took
place distant country region Carpathian Moun-
tains authorities here believed too much similarity
in names to Sr. Martin Artajo Francos, Minister
Foreign Affairs, and Professor Ruiz Jiminez, head
Hispano-American Institute in Madrid.
" 'Now reported from Madrid Artajo protested
personally General Franco threatening resign his
post unless measures taken restore his reputation.
" 'Next number Catedra probably carry another
vicious attack against anti-Fascist professor but
one can be sure all references derogatory character
to powei-s that be will be omitted.'
"I believe that you will agree that a public attack
by a Falange organization upon other officials of
the Spanish Government constitutes an item of le-
gitimate news interest and that it was entirely
within the scope of Dr. McMahon's professional
duties to report it.
"I wish hereby to protest most emphatically at
the treatment accorded to Dr. McMahon who in
addition to being a reputable newspaper corre-
spondent is a distinguished scholar and professor.
That treatment included both the holding up of his
despatch of March 26 without advice to him and
the peremptory demand made upon him without
any explanation whatever to deliver to the authori-
ties the press credentials which had been renewed
only eight days before.
"I wish to point out in this connection that Span-
ish correspondents in the United States are given
entire freedom of action. I also wish to recall
that in April of 1945 Ambassador Armour was
informed by the then Minister of Foreign Affairs
that the Spanish Government had decided upon
the policy of granting entire freedom from censor-
April 27, 1947
765
THE RECORD Of THE WEEK
sliip and control to duly accredited foreign cor-
respondents in Spain.
"I am instructed by my Government to request
in view of the above factors that Dr. McMahon's
press credentials and privileges be reinstated with-
out loss of time.
"Accept [etc.]"
U.S. Zone in Germany Closed to Addi-
tional Displaced Persons
[Roleased to tlip press April 18]
At his netvs conferenre on April 18. Aeting Secre-
tary Acheson vmde the following statement
There is one matter that I should like to bring up
myself in view of some confusion which has taken
place in the press, and that is the announcement
which General Clay made a few days ago in Ger-
ninny about displaced persons.
General Clay has announced that on April 21
new applicants will not be accepted in displaced-
l>ersons centers in the United States zone. With
certain exceptions explained by General Clay, this
applies to the 166,000 persons of all nationality out
of camps in the zone as well as to new arrivals in
the zone. The purpose is to stabilize the present
displaced-persons population of the centers. The
policy was proposed by the War Department for
administrative reasons, and was concurred in by
the State Department prior to issuance. The
directive in question has nothing to do with the
Palestine question. It was not made as a result
of any British representations, or in anticipation
of any. It does not alter the policy of this Gov-
ernment not to close the borders of its zones to
]5ersecutees.
Surplus Property Air-Rights
Agreements
[Released to the press by OFLC April 9]
Air-rights agreements involving disposal of sur-
plus property overseas have been concluded with 15
countries, the Office of the Foreign Liquidation
Commissioner disclosed on April 9.
United States air lines, as a result, are able to fly
almost all routes over which they are authorized to
operate using navigational aids, communication
facilities, weather-reporting facilities, and aii'fields
which dot the globe.
The aids — all items of surplus property — were
turned over to the various governments for cash
766
and credit through bulk sales, for other considera-
tions, and, in all cases, for the right of American
lines to utilize the facilities.
At some stations American air-line personnel are
temporarily operating the equipment while train-
ing local technicians for operational jobs.
Agi-eements most recently completed were those
involving facilities at Myitkyina, Burma; Fenny
and Assam, India ; Saigon, Hue, Qui-nhon, French
Indochina; St. Pierre Island off Newfoundland;
Copenhagen, Denmark ; Stockholm, Sweden ; Oslo,
Norway; Amsterdam, Holland; Biskra, Bone,
Maison-Blanche, Oran, and Corsica under the
French flag.
Previously, agreements had been completed with
the United Kingdom, Canada, Egypt, Brazil, Italy,
China, the Philippine Republic, and Belgium.
Post-UNRRA Relief Program— Continued from page 757
American relief in Euroiie. we would establish
in each country, attached to the United States
Mission, a staff charged with the responsibility
of supervising and inspecting the distribution of
the supplies and checking on compliance with the
terms of our agreement. It would obviously be
impractical in the short time available to build
up a force of thousands of people which could
physically distribute supplies to each person in
the country. A relatively small staff, by circulat-
ing freely through the country and inspecting
the operations, can adequately supervise the dis-
tribution process. Such a staff composed of top-
notch men experienced in foreign relief operations
would readily detect any important violations of
our agreement. Immediate action to stop relief
shipments would be taken in case they reported
any such violations and these were not promptly
corrected. The regular staff of our Embassies
would of course assist in this work.
In concluding my statement I want to re-em-
phasize the need for urgent consideration of the
bill. Remaining UNRRA food shipments, to-
gether with shipments procured with such small
amounts of funds as the countries themselves can
make available, will cease late in April or early
ill May. In all European countries grain stocks
are lowest just before the harvest. Except for
farmers, the people in the needy countries will to
a large extent have to exist on imported grain
until the new harvest becomes available. We must
Department of State Bulletin
be able to commence shipments early in May if a
break-down of food distribution, with a threat of
starvation and civil unrest, is to be avoided dur-
ing this critical period.
With the possible exception of Austria, and the
special case of Greece, where, as the committee
knows, we are planning a more extended program,
I do not believe that free relief beyond that au-
thorized in the bill will be needed unless disastrous
crop conditions or other unforeseen events oc-
cui". However, if we fail promptly to provide the
assistance which has been requested by the Presi-
dent, I feel sure that there will be wide-spi-ead
human suffering with grave political and eco-
nomic consequences which would affect us and the
whole world.
Lend-Lease Discussions With U.S.S.R.
[Released to the press April 14]
The Governments of the United States and the
Union of Soviet Socialist Republics have reached
an agreement to begin conversations with a view
to concluding a final settlement of outstanding
lend-lease questions as provided for in the terms
of the master lend-lease agreement of June 11,
1942.
The conversations will take place in Washing-
ton. The Soviet Ambassador to the United States,
Mr. Nicolai V. Novikov, has been designated Soviet
negotiator and discussions will commence imme-
diately after his return to "Washington. The
United States Government will be represented by
Assistant Secretary of State for economic affairs
Willard Thorp and officials of his office.
U.S.-Swedish Discussions
Import Restrictions
on
[Released to the pnss .\inn 17]
At the suggestion of the Government of Sweden,
a Swedish trade delegation has arrived in Wash-
ington to discuss the problems surrounding the ap-
plication of the recently imposed Swedish import
restrictions in their relation to the United States-
Swedish reciprocal trade agreement of 1935.
The Swedish Delegation is composed of Herman
Erik.sson, Swedish Minister, Dag Hammarskjold,
Financial Adviser to the Swedish Government,
Sven Brusewitz, former Director of the State
Trade Commission, and Leif de Belfrage, Com-
mercial Counselor of the Swedish Legation.
THE RECORD OF THE WeCK
Pre-1934 Philippine Bonds Delivered to
U.S. for Destruction
Secretary Snyder announced on April 10 that
arrangements are being completed for the de-
livery of securities totaling $19,420,250 face
amount to the Secretary of the Treasury by the
Philippine Government under the provisions of
the Philippine independence act, as amended.
This act, also known as the Tydings-McDuffie act,
required that all bonds of the Philippines, its prov-
inces, cities, and municipalities, issued prior to
May 1, 1934, under authority of acts of Congress,
■which were held in sinking funds of such out-
standing bond issues as of July 4, 1946, should be
delivered to the Secretary of the Treasury for de-
struction. It also required that all other assets
of sinking funds maintained by the Philippine
Government for pre-1934 bonds, together with
proceeds of the Supplementary Sinking Fund
which had been established for such bonds in the
United States Treasury under the provisions of
the same act, should be deposited in a special trust
account in the name of the Secretary of the Treas-
ury for the payment of future principal and in-
tere.st on pre-1934 Philippine Government bonds.
The delay in the physical delivery of securities
to the Secretary of the Treasury was occasioned
as a result of the war with Japan and the necessity
for reconciling Philippine acounts after reoc-
cupation of Manila. However, the Philippine se-
curities representing sinking-fund assets have been
held by the United States agencies having such
securities in custody subject to the sole order of
the Secretary of the Treasury since July 4, 1946,
pending the determination, from available rec-
ords, of the specific securities to be delivered to
the Secretary. This determination has now been
completed.
Letters of Credence
Siar)i
The newly appointed Ambassador of Siam, His
Royal Highness Prince Wan Waithayakon, pre-
sented his credentials to the President on April
18. For texts of the Ambassador's remarks and
the President's reply, see Department of State
press release 338 of April 18, 1947.
April 27, 1947
767
Anniversary of Pan American Day
STATEMENT BY ASSISTANT SECRETARY BRADEN*
On this anniversary of Pan American Day,
which holds particular significance and hope for
all the Americas, I am very happy to convey my
cordial greetings and good wishes to the people
of the republics of the new world.
It is both a comfort and an inspiration to us to
realize that on this day, which marks the estab-
lishment of the Pan American Union more than
half a century ago, people in all the 21 American
republics are commemorating the spirit of solidar-
ity and cooperation which has become so important
a factor in our continental life. Recalling as we
do today the past achievements which the coop-
eration of the American republics has made pos-
sible, we derive therefrom a renewed confidence in
our ability to meet with continued success the com-
mon problems which face us in the future.
Today, a year and a half since the final military
victory over our recent enemies, we find that the
pressing problems of peace are but little less
urgent than the imperative demands of war. For-
tunately our experience has proved to us that we
have in our inter-American system a vehicle
through which our combined efforts can be brought
to effective action in meeting these problems. We
know also that the principles which have guided
the inter-American system in the past — principles
of mutual respect, of observance of our obligation,
and of devotion to human liberty and welfare —
are essential to the achievement of peace and of
democracy which are the ultimate goals of our
inter-American endeavor.
The principal organ of the inter- American sys-
tem is the Pan American Union, for which this
year, 1947, is a particularly significant one. Next
^ Recorded in Spanish for sbort-wave broadcast to Latin
America over tlie "Voice of tlie United States of America"
on tlie occasion of Pan American Day, Apr. 14. 1947, and .
released to the press on the same date. Spruille Braden
is Assistant Secretary of State for American republic
affairs.
768
month the Union will welcome its new Director
General, Dr. Alberto Lleras Camargo of Colombia,
who was elected in March to this most important
post by the maanimous vote of the Governing
Board of the Pan American Union. Dr. Lleras
Camargo's unquestioned talents and brilliant rep-
utation bring to the Pan American Union a con-
fidence that its affairs during the coming years
will be conducted with the highest ability. His
presence will do much to compensate for the great
sorrow which was experienced throughout the
American republics at the tragic death of Dr. Leo
S. Rowe, whose long and devoted labors contrib-
uted so greatly to the development of the Union.
Furthermore, we look forward this year with
greatest anticipation to the Ninth International
Conference of American States which is scheduled
to be held in Bogota in December of this year. At
this conference there will be brought to fruition the
labors which have been undertaken, since the In-
ter-American Conference on Problems of War and
Peace at Mexico City in 1945, for the strengthen-
ing and improvement of the inter-American sys-
tem, and the clarification of its underlying prin-
ciples. I am confident that the work of the Ninth
International Conference will produce a union and
an inter-American system that will be better fitted
than ever to cope with the problems of peace and
security, and of economic and cultural cooperation,
which the future will lay before us. This will be
an achievement not only of the highest importance
to the American republics, but of significance to
the entire world as it searches in this period of
history for a solid foundation on which to build the
peace which all peoples so deeply desire.
Success in the great tasks before the inter-
American system this year will demonstrate to
the world that the American republics, banded to-
gether in a common love of justice, freedom, and
democracy, can point the way for others who seek
the spiritual and material fruits of united action by
honest men.
Department of State Bulletin
The Inter-American System: A Solid Foundation for the Challenge of the Future
BY ELLIS O. BRIGGS'
We now approach the ninth general conference
of American states, which lias been scheduled by
the host Government of Colombia for next Decem-
ber. AVhat is the program, and how can we render
the meeting effective?
The victory has been won, but the peace still
eludes us. Clearly in the measure in which the
foundations of world peace shall have been laid,
problems facing the inter- American family will
have been simplified. Conversely a deterioration
elsewhere in the world could not but render our
tasks at Bogota and thereafter infinitely more diffi-
cult. The New World is but a part of the whole
world, and tlie inter- American association has vol-
untarily established itself under the United Na-
tions Charter as a regional system within a world
system. The Bogota meeting must be viewed in
a whole-world perspective.
The ideals and practices of the inter- American
system cannot be divorced from the ideals and
practices of democracy. That system is an ex-
tension in the international sphei'e of the concepts
whereby free peoples seek to guide their domestic
affairs. Tlie procedures of inter- American coop-
eration would have little meaning without the vi-
talizing breath of the democratic spirit. They are
the manifestations of that spirit in action.
Our concern for the development and strength-
ening of the inter-American system cannot be
separated from our concern for the maintenance
and development of democratic ideals and prac-
tices in all the American republics. Democracy
and the inter- American system, as a statesman of
Uruguay recently pointed out, are bound to stand
or fall together.
The American republics have rejected the doc-
trine that man exists for the benefit of the state,
a doctrine irreconcilably opposed to democracy,
which rests on the belief that the state exists for
the benefit of man. That belief was challenged by
Germany and Japan, but their defeat did not
solve the problem. That belief is being challenged
today, and the echoes of the challenge will be
heard at the Bogota conference.
Dictatorships assert that the state is an end in
April 27, 1947
itself, and that man is but the expendable tool of
the state. Dictatorships, as a liberal American
newspaper recently declared, are by nature con-
spirational in character, are not accountable to the
l^eople for their actions, and sooner or later in an
effort to distract attention from their domestic
shortcomings or incompetence are likely to engage
in bellicose maneuvers against neighboring states.
It makes little difference to the individual
whether his freedoms, hard-won through the cen-
turies, are stolen in the name of rightist or leftist
totalitarianism. Both are thieves of liberty, and
to him who has been robbed it is of small impor-
tance whether the coat of the thief was red or black.
It is not enough however for us to be against
totalitarianism of whatever shade or color. We
must not only resolutely protect ourselves against
the thieves of liberty, we must also be for our
democratic principles of life. Above all, we must
make those principles function successfully.
Political peace, and the operation in practice of
the principles of democracy, are important parts
of the problem. Another is economic security.
The republics of this hemisphere, in contrast
to most of the rest of the world, emerged from
the war relatively undamaged. We do not forget
our own million casualties on the battlefields from
Guadalcanal to Africa, nor that the United States
now has a per capita debt, due largely to the war,
of approximately $2,000 for every man, woman,
and child in this country. It is also pertinent
to observe that while the New World in compari-
son with the Old World suffered no devastation,
the countries of Latin America, although their
economies were in varying degrees affected, fared
well in contrast to the United States. Some, in
fact, fared excellently.
The economic aspect to which I refer involves
an application of sovereignty. Now the tree of
sovereignty produces valuable fruit. Juridical
equality grows there, much esteemed by the inter-
* Excerpts from an address delivered before the Pan
American League in Miami, Fla., on Apr. 14, 1947, on the
occasion of Pan American Day, and released to the press
on the same date. Mr. Briggs is Director, Office of Amer-
ican Republics Affairs, Department of State.
769
THE RECORD Of THE WEEK
American family, together with pride on the part
of each country in its own achievements. Sap
from the roots of sovereignty produces the flower
of patriotism. In our time, however, a thorny
branch has appeared on the tree, its growth stim-
ulated by the war. It is called exaggerated na-
tionalism, and unless each country prunes that
branch, the thorns can constitute an impenetrable
economic tiiicket, a veritable forest of brambles
altogether stifling to international trade and frus-
trating to progress.
All of the American republics have declared
that they favor liberal trade practices and private
enterprise. Many of them have acknowledged the
desirability of having foreign capital— private en-
terprise capital— participate in future economic
development. Much remains, nevertheless, to be
done to make these declarations effective. It is
clear that foreign capital will not venture, and in
fact cannot operate, in circumstances in which ex-
cessive nationalism persists, or where the state of
mind producing excessive nationalism results in
measures which discriminate against foreign cap-
ital merely on the grounds that it is not national
capital.
This also is a world problem, and solutions are
being sought on a world basis. It is likewise a
question the answer to which can profitably be dis-
cussed, pruning equipment in hand, within the
inter- American association.
For the i-est, it is comforting in this disordered
moment of history to observe the confidence with
which the American republics are looking forward
to the Bogota conference. Problems we have, dif-
ficult problems, in abundance. But ours is a con-
fidence based on trust, on friendship, and on the
rich experience of nearly six decades of pan-
American relationship.
The foundations have been strongly laid : com-
pliance with obligations, non-intervention, and re-
spect for the juridical equality and the sovereignty
of each member. Those are sound foundations.
They require no modification.
The war years have strengthened our associa-
tion, have made us more conscious of the value and
the vitality of the underlying ideals on which in-
ter-American cooperation is based.
In approaching the Ninth International Con-
ference of American States, we are inspired by the
knowledge of how well the forces of democracy in
this hemisphere have met the challenge of the re-
770
cent past. We are aware of the fortitude, the ef-
fort, and the vigilance that may be required to
meet the challenge of the future.
Visit of Cuban Cliemist
Dr. Francisco de la Carrera y Fuentes, director
of the Department of Chemistry and vice dean of
the School of Sciences of the University of Ha-
bana, Cuba, is visiting the United States at the
invitation of the Department of State. He has
been awarded a grant-in-aid under a program ad-
ministered by the Division of International Ex-
change of Persons of the Department to enable
him to visit universities, educational centers, and
scientific institutions in the United States, and
to confer with colleagues in the field of chemistry.
He is especially interested in obtaining informa-
tion that will assist him in plans for a new chem-
istry building, for which the University of Ha-
bana has recently appropriated funds.
Dr. de la Carrera arrived in Washington on
April 9, 1947. Following his attendance at the
annual meeting of the American Chemical So-
ciety, held in Atlantic City, New Jersey, from
April 1-1 to 19, Dr. de la Carrera plans to visit
educational institutions in Pennsylvania, New
York, Connecticut, Massachusetts, Ohio, Mich-
igan, California, Texas, and Louisiana.
Conversations on Broadcasting
Arrangements Witli Cuba
[Released to the press April 16)
Federal Communications Commissioner Rosel
Hyde and Neal McNaughton, a Commission en-
gineer and Chief of the Broadcast Branch, Stand-
ard Broadcast Division, have arrived in Habana
at the request of the Department of State to open
negotiations on the provisions of the North Ameri-
can regional broadcasting agreement, Habana,
1937, as set forth in paragraph 3, section D, part
II.
In consultation with the American Embassy,
Commissioner Hyde and Mr. McNaughton will
negotiate with Cuban officials in an endeavor to
amplify, by means of bilateral agi'eement, the pro-
visions of this agreement with respect to the es-
tablishment of a new or expanded procedure by
means of which potential radio interference on
broadcasting channels may be calculated.
From Cuba, Mr. Hyde and Mr. McNaughton
may proceed to Mexico City for similar talks be-
fore returning to Washington.
Department of Stale Bulletin
Protocol for the Regulation of Whaling— 1946 ^
THE PRESIDENT'S LETTER OF TRANSMITTAL
The White House, April <S, 1947.
To the Senate of the United States:
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
a certified copy of a protocol for tlie regulation of
whaling, opened for signature at Washington on
December 2, 1946, and signed under that date for
the United States of America. Argentina, Aus-
tralia, Brazil, Canada, Chile, Denmark, P^rance,
the Netherlands, New Zealand, Norway, Peru, the
Union of South Africa, the Union of Soviet So-
cialist Republics, and the United Kingdom of
(Jreat Britain and Northern Ireland. The pro-
tocol extends until October 31, 1948, the provisions
of the protocol signed at London, November 26,
1945, amending tiie agreement for the regulation
of whaling, signed at London, June 8, 1937.
I also transmit, for the information of the Sen-
ate, the report made to me by the Acting Secretary
<if State in explanation of the objectives and pro-
visions of the protocol of December 2, 1946.
H.ARRY S. Truman
(Enclosures: (1) Report of the Acting Secretary of
State. (2) certified copy of protocol, opened for signa-
ture December 2, 1946, for the regulation of whaling^)
REPORT OF THE ACTING SECRETARY OF STATE
Washington, April 7, 19J,7.
The President,
The White House.
The undersigned, the Acting Secretary of State,
has the honor to lay before the President, with
a view to its transmission to the Senate to receive
the advice and consent of that body to ratification,
if his judgment approve thereof, a certified copy
of a protocol for the regulation of whaling, opened
for signature at Washington December 2, 1946,
and signed under that date for the United States
of America, Argentina, Australia, Brazil, Canada,
Chile, Denmark, France, the Netherlands, New
Zealand, Norway, Peru, the Union of South Africa,
the Union of Soviet Socialist Republics, and the
United Kingdom of Great Britain and Northern
Ireland. The protocol extends until October 31,
1948, the provisions of the protocol signed at
London November 26, 1945, amending the agree-
ment for the regulation of whaling, signed at
London June 8, 1937.
The provisions of the protocol were formulated
by the International Whaling Conference held at
Washington from November 20 to December 2,
1946. One of the objectives of that Conference
was to decide upon adequate regulations to be ap-
plied during the whaling season of 1947-48. In
the absence of such regulations, failure to effect the
entry into force, prior to the opening of the 1947-48
season, of the long-range regulations formulated
April 27, 1947
at the Conference would bring about a situation
in which that season would be governed only by
the less extensive provisions of the convention for
the regulation of whaling signed for the United
States at Geneva March 31, 1932, the agreement for
the regulation of whaling signed at London June
8, 1937, and the protocol signed at London June
24, 1938, to all of which the United States is a
party as a result of the ratification thereof by this
Government.
Accordingly, article I of the protocol extends
to the 1947-48 whaling season the provisions of
the protocol of November 26, 1945, which supple-
ments and modifies previous agreements, thus con-
tinuing the over-all catch limitation in Antarctic
waters as well as other desirable features of the
protocol of 1945.
Article II provides that the protocol shall enter
into force when notifications of acceptance have
been given to the Government of the United States
of America by all the governments parties to the
protocol of November 26, 1945, to which the United
States is a party as a result of the ratification
thereof by this Government.
Respectfully submitted.
Dean Acheson
(Enclosures : Certified copy of protocol, opened for signa-
ture December 2, 1946, for the regulation of whaling.)
' S. Exec. K, 80th Cong., 1st sess.
'Protocol not printed.
77t
International Convention for the Regulation of Whaling
THE PRESIDENT'S LETTER OF TRANSMITTAL
The "White House, April 8, 194-7.
To the Senate of the United States :
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
a certified copy of an international convention for
the regulation of whaling, opened for signature
at Washington on December 2, 1946, and signed
under that date for the United States of America,
Argentina, Australia, Brazil, Canada, Chile, Den-
mark, France, the Netherlands, New Zealand,
Norway, Peru, the Union of South Africa, the
Union of Soviet Socialist Kepublics, and the
United Kingdom of Great Britain and Northern
Ireland.
The purposes of the convention are explained in
the report of the Acting Secretary of State, which
is transmitted herewith for the information of the
Senate.
I also transmit a certified copy of the final act
of the International Wlialing Conference held at
Washington from November 20 to December 2,
1946, at which the convention was formulated,
and a copy of the report of the delegation of the
United States of America to that Conference. The
final act does not require ratification and is trans-
mitted as of possible interest in connection with
the consideration of the convention.
Harry S. Truman
(Enclosures: (1) Report of the Acting Secretary of
State; (2) certified copy of convention for regulation of
whaling, opened for signature December 2, 1946;' (3)
certified copy of final act of International Wlialing Con-
ference held at Washington, November 20 to December 2,
1946 ; ' (4) copy of report of the United States delegation.')
REPORT OF THE ACTING SECRETARY OF STATE
Washington, April 7, 1947.
The President,
The White House:
The undersigned, the Acting Secretary of Stat«,
has the honor to lay before the President for
transmission to the Senate to receive the advice
and consent of that body to ratification, if his
judgment approve thereof, a certified copy of an
international convention for the regulation of
whaling, opened for signature at Washington De-
cember 2, 1946, and signed under that date for
the United States of America, Argentina, Aus-
tralia, Brazil, Canada, Chile, Denmark, France,
the Netherlands, New Zealand, Norway, Peru, the
Union of South Africa, the Union of Soviet So-
cialist Kepublics, and the United Kingdom of
Great Britain and Northern Ireland.
The provisions of the convention were formu-
• S. Exec. I-, 80th Cong., 1st sess.
'Not printed.
772
lated by the International Whaling Conference
held at Washington from November 20 to De-
cember 2, 1946. The principal objectives of that
Conference were to consider the codification and
possible modification of existing regulations on
whaling in the light of the necessity for proper
conservation of whale resources and orderly de-
velopment of tlie whaling industry and to devise
effective administrative machinery for the modi-
fication of these regulations from time to time
without calling a new international conference
and concluding a new agreement or protocol in
each instance.
The regulations for the protection of whale
stocks, which have undergone certain modifica-
tions but remain substantially similar to regula-
tions embodied in previous agreements to which
the United States is a party, are incorporated in ,
the schedule attached to and forming an integral ^
part of the present convention. The International
Whaling Commission, provided for by articles
III, IV, and V, is charged with responsibility for
Department of State Bulletin
carrying out the purposes of the convention and
in particular for amending the provisions of the
schedule by the adoption of new regulations with
respect to the conservation of whaling resources.
Article I provides that the schedule shall form
an integral part of the convention and that the
convention shall apply to factory ships, land sta-
tions, and whale catchers, and to all waters in
which they operate. These provisions are based
upon article II of the agreement for the regula-
tion of whaling, signed at London June 8, 1937,
and ratified by the United States on September
3, 1937 (52 Stat. 1460).
Article II defines certain terms essential to the
effective operation of the convention. These par-
ticular terms are embodied in the convention it-
self, rather than in the schedule annexed thereto
and, like the other portions of the convention
proper, can be changed only by a new convention
or protocol.
Article III provides for the creation of the In-
ternational Whaling Commission referred to
above, to be composed of one member designated
by each contracting government, and lays down
certain rules for the operation of the Commission.
Decisions of the Commission shall be taken by a
simple majority of the members voting, except in
cases involving amendments to the schedule, in
which case a three-fourths majority of the mem-
bers voting is required. The question of the re-
lationship of this body to the United Nations,
within the framework of a specialized agency
thereof, is reserved for further consideration.
The provisions of article IV, which authorize
the Commission to organize studies and gather
statistical and other data with respect to whales
and whaling, are new to international whaling
agreements but are similar in many respects to
provisions in recent international fisheries agree-
ments to which the United States is a party, in-
cluding the convention between the United States
and Canada for the preservation of the halibut
fishery of the Northern Pacific Ocean and Bering
Sea, signed at Ottawa January 29, 1937, and the
convention between the United States and Canada
for the preservation of the sockeye-salmon fish-
eries of the Fraser River system, signed at Wash-
ington May 26, 1930.
The provisions of article V are likewise similar
in certain respects to provisions contained in the
above-mentioned fisheries conventions. The Com-
THE RECORD Of THE WEEK
mission established in accordance with article III
may amend the schedule by adopting regulations
designating protected species, fixing closed sea-
sons and waters, limiting total catches and the
sizes of whales taken, defining standards for
measurement of whales and specifications for
whale-catching equipment, and establishing re-
quirements for statistical and other records. In
making such amendments, however, the Commis-
sion is prohibited from assigning numerical or
other quotas to factory ships and land stations and
is to be guided in its decisions by certain other
criteria.
Article V places other limitations upon the Com-
mission's amending power in addition to the re-
quirement of a three-fourths vote as provided
by article III. A contracting government may
exempt itself from amendments adopted by the
Commission by filing notice of objection with the
Commission within 90 days after the Commission
has informed it of the amendment. Such action
shall suspend the operation of the amendment in
question for an additional 90 days and shall accord
to any other contracting government the right to
file similar objection within that period or within
30 days from the date of receipt by the Commis-
sion of the last objection filed during the former
period, whichever date shall be the later. The
amendment in question shall become effective, with
respect to all contracting governments which have
not filed such objections, upon the expiration of
the latest of the additional periods, but shall not
become effective with respect to any government
making objection thereto unless that objection is
withdrawn. It is further provided that no amend-
ments proposed by the Commission shall become
effective before July 1, 1949.
Articles VI and VII contain provisions relat-
ing to the Commission's powers of recommenda-
tion and to the transmission of whaling statistics
and other information, which are to be deposited
with the International Bureau for Whaling Sta-
tistics at Sandef jord, in Norway, or with any other
body which the Commission may designate.
Article VIII, which is based in large measure
upon the pi-ovisions of article X of the agreement
of June 8, 1937, authorizes the taking of whales
for research purposes and subject to certain
restrictions.
Article IX requires that each contracting gov-
ernment apply and enforce the provisions of the
April 27, 7947
773
THE RECORD OF THE WEEK
present convention with respect to persons or ves-
sels under its jurisdiction. In addition, the pay-
ment to crews of bonuses or other remuneration
calculated upon the results of their work is pro-
hibited with respect to the taking of whales pro-
tected by the provisions of the convention.
Article X provides for ratification by signatories
and adherence by nonsignatories, and provides
that the convention shall enter into force upon
deposit with the Government of the United States
of America of instruments of ratification by six
signatory governments, which shall include the
United States of America, the Netherlands, Nor-
way, the Union of Soviet Socialist Republics, and
the United Kingdom of Great Britain and North-
ern Ireland. It shall enter into force with respect
to each government subsequently ratifying or ad-
hering upon the date of deposit of its instrument
of ratification of of receipt of its notification of
adherence.
Article XI provides that any contracting gov-
ernment may withdraw from the convention on
June 30 of any year by virtue of notice given on
or before the preceding January 1st. Such action
shall accord to anj' other contracting government
the riglit, within one month of receipt from the
Government of the United States of America of a
copy of such notice, to give similar notice of with-
drawal, wliich shall become effective the same
June 30.
The provisions of the schedule, which pursuant
to the provisions of article X of the convention,
do not become effective until July 1, 1948, are
based, with certain modifications and additions,
upon similar provisions of the agreement of June
8, 1937, and the protocols of June 24, 1938, and
November 25, 1943, to which the United States is
a party. Among the modifications are the re-
quirement of two inspectors aboard each factory
ship (par. 1), the inclusion of sei whales among
the species for which a minimum length has been
specified (par. 9), and the establishment of a
31/^ months' season for baleen whales in Antarctic
regions (par. 7).
The undersigned also lays before the President
a certified copy of the final act of the International
Whaling Conference held at Washington from
November 20 to December 2, 1946, which is fur-
nished for the information of the Senate. The
final act does not require action by the Senate.
" Not printed.
As of possible further interest to the Senate,
particularly with respect to the provisions of the
schedule, a copy of the report of £he delegation
of the United States of America to the Conference
is furnished herewith.
Respectfully submitted.
Dean Acheson
(Enclosures: (1) Certified copj' of convention for regu-
lation of whaling, opened for signature December 2, 1946;
(2) certified copy of final act of International Whaling
Conference held at Washington November 20 to December
2, 1W6; (3) report of the United States delegation.')
The United States and Non-SeSf-
Governing Territories
The Department of State released on April 14
a summary entitled "The United States and Non-
Self -Governing Territories", a compendium of in-
formation regarding the United States and non-
self-governing territories with particular refer-
ence to chapters XI, XII, and XIII of the Charter
of the United Nations. The summary outlines the
development of international responsibility and
of United States policy regarding dependent
areas, the expansion of United Nations machinery
for dealing with the problems of non-self-govern-
ing territories, and the work of the Preparatory
Commission of the United Nations and of the Gen-
eral Assembly sessions in London and in New
York with respect to the trusteeship question, and
it defines the future responsibilities of the United
States in the role of administrator of certain trust
territories. Appended are pertinent United Na-
tions and other international agreements and reso-
lutions.
Copies of this study will be made available in
printed form at a later date.
Confirmations to the Atomic Energy
Commission
The Senate on April 9, 1947, confirmed the fol-
lowing nominations to the Atomic Energy Com-
mission :
Carroll L. Wilson, to be General Manager Witliin
the Atomic Energy Commission.
David E. Lilienthal, Robert F. Bacher, Sumner
T. Pike, Lewis L. Strauss, and William W. Way-
mack, to be members of the Atomic Energy Com-
mission for terms expiring August 1, 1948.
774
Department of State Bulletin
Air Agreement With Canada Amended
EXCHANGE OF NOTES BETWEEN U.S. AMBASSADOR AND CANADIAN
SECRETARY OF STATE FOR EXTERNAL AFFAIRS
[Released to the press April 17]
The Department of State announced on April
17 that the annex to the bilateral air-transport
agreement between the United States of America
and Canada of February 17, 1945, has been
amended by an exchange of notes in Ottawa effec-
tive April 12, 1947. The changes effected by the
new annex are in the form of provisions which
mutually facilitate air-transport operations be-
tween the two neighboring countries by the re-
moval of certain restrictions on several air-
transport services and by the opening to both
countries of the airfield at the border at Sault Ste.
Marie.
The texts of the notes follow:
April 10, 1947.
Excellency :
I have the honor to refer to the recent discus-
sions held in Ottawa by the representatives of the
Governments of the United States of America and
Canada relative to air transport. As a result of
these discussions I would propose that the agree-
ment between the United States of America and
Canada for air transport services, effected by ex-
change of notes signed at Washington February
17, 1945, be amended by the substitution of the
following Annex in lieu of the Annex contained
therein :
"4?mea7
"A. The airlines designated by the Government
of the United States of America may operate on
the following routes, with the right to take on
and put down passengers, mail and cargo at the
Canadian terminals specified:
Boston — Moncton
Boston — Montreal
New York or Boston — Quebec
Montreal
Ottawa
(Montreal
"I Ottawa
"In consideration of special circumstances exist-
New York —
Washington-
Buffalo— Toronto
Fargo — Winnipeg
Great Falls — Lethbridge
Seattle — Vancouver
Seattle — Wliltehorse
Fairbanks — Wliitehorse
ing on the routes from New York and Washington
to Montreal and Ottawa, the Canadian Govern-
ment agrees that the United States carrier may
serve both Canadian points on the same flights,
so long as no Canadian cabotage rights are exer-
cised.
"The service on the route between Buffalo and
Toronto may, at the election of the United States
Government, bo rendered by two airlines. On the
other routes service by a single airline only will
be authorized.
"In addition to the routes listed above, airlines
of United States registry will be authorized to
stop in Windsor on any route on which they are
now or in the future may be authorized by the
United States Government to serve Detroit.
"B. The airlines designated by the Government
of Canada may operate on the following routes,
with the right to take on and put down pas-
sengers, mail and cargo at the United States
terminals specified :
Halifax
— Boston
Toronto
— New York
Toronto
— Cleveland
Toronto
— Chicago
Port Arthur
— Duluth
Victoria
—Seattle
Whitehorse
—Fairbanks
Winnipeg
—Sault Ste. Marie-
North Bay-Toronto
"In consideration of special circumstances exist-
ing on the internal Canadian route between Win-
nipeg and Toronto, the United States Government
agrees that the Canadian carrier on this route may
make use of an airfield at Sault Ste. Marie, Michi-
gan, and may pick up and set down traffic there.
"A single airline will be authorized for each of
the foregoing routes. With respect to the routes
between Toronto and Cleveland and Toronto and
Chicago no through services will be operated from
either point in the United States to points lying
beyond the territorial limits of Canada.
April 27, 1947
775
THE RECORD Of THE WBBK
"In addition to the routes listed above, airlines
of Canadian registry will be authorized to stop in
Detroit on any route on which they are now or in
the future may be authorized by the Canadian
Government to serve Windsor."
Accept [etc.] Ray Atherton
The Right Honorable
The Secretary of State for External Affaii'S
Oiiawa
Ottawa, l£tk April, 19^7.
ExCELLENCT,
I have the honor to refer to your note no. 675
of April 10, 1947, in which you propose that the
Agreement between the United States and Canada
for Air Transport Services, effected by an ex-
change of notes signed at Washington February
17, 1945, be amended by the substitution of the
Annex contained in the above-mentioned note, in
lieu of the Annex contained in the notes of Febru-
ary 17, 1945. The terms contained in the new
Annex are acceptable to the Government of Can-
ada, which agrees that your note no. 675 of April
10 and this reply shall be regarded as constituting
an undei'standing between our two Governments
concerning this matter.
Accept [etc.]
L. B. Pearson
For : Secretary of State for
External Affairs.
His Excellency
The Honorable Ray Atherton,
Ambassador for the United States,
Ottawa.
THE CONGRESS
International Refugee Organization : Report to accom-
pany S.J. Res. 77, from the Committee on Foreign Rela-
Uons. S. Rept. 51, SOtli Cong. 4 pp.
Amending the Law Relating to Larceny in Interstate
or Foreign Commerce: Report to accompany H.R. 1564
from tlie Committee on the Judiciary. H. Rept. 145, 80th
Cong. 3 pp.
Assistance to Greece and Turkey : Report From the Com-
mittee on Foreign Relations, to accompany S. 938 to provide
for assistance to Greece and Turkey. S. Rept. 90, 80th
Cong., 1st sess. 21 pp.
Relief Assistance to the People of Countries Devastated
by War: Report From the Committee on Foreign Affairs,
to accompany H.J. Res. 153 providing for relief assistance
to the people of countries devastated by war. H. Rept. 239,
80th Cong., 1st sess. 10 pp.
776
Extension of Title III of Second War Powers Act : Con-
ference report on the bill (S. 931) to extend certain powers
of the President under Title III of the Second War Powers
Act. S. Doc. 25, 80th Cong., 1st sess. 2 pp.
Providing for Relief Assistance to the People of Coun-
tries Devastated by War. H.J. Res. 153, 80th Cong., 1st
sess. 6 pp.
Providing for Membership and Participation by the
United States in the International Refugee Organization
and Authorizing an Appropriation Therefor. S.J. Res. 77,
80th Cong., 1st sess. 5 pp.
Enabling the People of Hawaii To Form a Constitution
and State Government and To Be Admitted Into the Union
on an Equal Footing With the Original States : Report to
accompany H.R. 49. H. Rept. 194, 80th Cong., 1st sess.
40 pp.
Assistance to Greece and Turkey : Hearings before the
Committee on Foreign Relations of the United States
Senate, on S. 938, a bill to provide for assistance to Greece
and Turkey. 80th Cong., 1st sess. 214 pp.
Amending Section 327 (H) of the Nationality Act of
1940 : Report from the Committee on the Judiciary, to
accompany S. 460. S. Rept. 96, 80th Cong., 1st sess. 2 pp.
Menace of Communism : Statement of J. Edgar Hoover,
Director, Federal Bureau of Investigation, before the
Committee on Un-American Activities of the House of
Representatives, relative to the menace of Communism.
S. Doc. 26, 80th Cong., 1st sess. 12 pp.
To Continue the Authority of the Maritime Commission
To Operate Vessels Until July 1, 1947 : Hearings before the
Committee on Merchant Marine and Fisheries of the
House of Representatives, on H. J. Res. 114, a joint reso-
lution to continue the authority of the Maritime Commis-
sion to operate vessels until July 1, 1947. 80th Cong., 1st
sess. 87 pp.
To Continue the Commodity Credit Corporation : Hear-
ings before the Committee on Agriculture and Forestry
of tlie United States Senate, on S. 350, a bill to continue
the Commodity Credit Corporation as an agency of the
United States until June 30, 1949. 80th Cong., 1st sess.
144 pp.
Eradication of Foot-and-Mouth Disease : Hearings be-
fore the Committee on Agriculture of the House of Repre-
sentatives, on H. R. 1819 (S. 5G8), to authorize the Secre-
tary of Agriculture to cooperate with other American
countries in the control and eradication of foot-and-mouth
disease and rinderpest. 80th Cong., 1st sess. 93 pp.
Control and Eradication of Foot-and-Mouth Disease and
Rinderpest : Hearings before the Committee on Appro-
priations of the United States Senate, on H. J. Res. 154,
a Joint resolution making an appropriation for expenses
incident to the control and eradication of foot-and-mouth
disease and rinderpest. 80th Cong., 1st sess. 26 pp.
Rubber Production and Importation Policy: Hearings
before a Subcommittee of the Committee on Banking and
Currency of the United States Senate, on S. J. Res. 79,
H. J. Kes. 77, and S. J. Res. 83, joint resolutions to
strengthen the common defense by maintaining an ade-
quate domestic rubber-producing industry. 80th Cong.,
1st sess. 183 pp.
Department of State Bulletin
Relief Assistance to CJountries Devastated by War:
Hearings before the Committee on Foreign Affairs of the
House of Representatives, on H. J. Res. 134, a joint resolu-
tion providing for relief assistance to countries devastated
by war. 80th Cong., 1st sess. 129 pp.
Succession to the Presidency : Hearings before the Com-
mittee on Rules and Administration of the United States
Senate on S. Con. Res. 1, a concurrent resolution to appoint
a Joint committee to investigate matters connected with
the succession to the Presidency and the election of Presi-
dent and Vice President ; S. 139, a bill to provide for the
holding of special elections to fill vacancies caused by
removal, death, resignation, or inability of both the Presi-
dent and the Vice President ; S. 536, a bill to provide for
the holding of a special election by the members of the
Electoral College to fill vacancies caused by the removal,
death, resignation, or inability of both the President and
the Vice President ; S. 564, a bill to provide for the per-
formance of the duties of the office of President in case
of the removal, resignation, or inability both of the Presi-
dent and Vice President. 80th Cong., 1st sess. 63 pp.
Safety in Air Navigation : Hearings before the Com-
mittee on Interstate and Foreign Commerce of the House
of Representatives, on safety in air navigation. Part 1.
80th Cong., 1st sess. 646 pp.
First Deficiency Appropriation Bill for 1947: Hearings
before the Subcommittee of the Committee on Appropria-
tions of the House of Representatives, on the first deficiency
appropriation bill for 1947. 80th Cong., 1st sess. 920 pp.
Providing Support for Wool : A report from the Com-
mittee on Agriculture, to accompany S. 814, a bill to pro-
vide support for wool, and for other purposes. H. Rept.
257, 80th Cong., 1st sess. 5 pp.
Amending the Act on Espionage and Alien Registration :
A report from the Committee on the Judiciary, to accom-
pany H. R. 1467, a bill to amend the act entitled "An act
to punish acts of interference with the foreign relations,
the neutrality, and the foreign commerce of the United
States, to punish espionage, and better enforce the crim-
inal laws of the United States, and for other purposes,"
of June 15, 1917, as amended, and the Alien Registi-ation
Act, 1940, to increase the penalties for violation of such
acts, having considered the same. H. Rept. 250, 80th
Cong., 1st sess. 5 pp.
Estimate of Appropriation Involving a Decrease for the
Council of Economic Advisers : Communication from the
President of the United States, transmitting estimate of
appropriation involving a decrease of $33,000 for the
Council of Economic Advisers. H. Doc. 202, 80th Cong.,
1st sess. 2 pp.
Relieving Collectors of Customs of Liability for Failure
To Collect Certain Special Tonnage Duties and Light
Money : A report from the Committee on the Judiciary, to
accompany H. R. 14C5, a bill to relieve collectors of cus-
toms of liability for failure to collect certain special ton-
nage duties and light money, and for other purposes.
H. Rept. 249, 80th Cong., 1st sess. 2 pp.
April 27, 1947
THE RECORD OF THE WBEK
Agriculture in tiie Americas
The following article of interest to Bulletin read-
ers appeared in the April-May 1947 issue of Agri-
culture in the Americas, a publication of the Depart-
ment of Agriculture, copies of which may be obtained
from the Superintendent of Documents, Government
Printing Office, for 10 cents each :
"Cibao Valley — Food Basket of the Dominican Re-
public", by RoUo P. Stovall, Economic Analyst, Ameri-
can Embassy, Ciudad Trujillo, Dominican Republic.
THE FOREIGN SERVICE
Appointments of Public Affairs
Officers
The Department of State announced on April 10 the
following appointments :
Donald Carl Dunham, as Public Affairs Officer at Bucha-
rest, Rumania
George W. Edman, as Public Affairs Officer at Copenhagen,
Denmark
Arthur H. Hopkins, Jr., as Assistant Public Affairs Officer
at Chungking, China
THE DEPARTMENT
Interim Greece-Turkey Assistance
Committee
I Pending the establishment of a permanent organi-
zation, an Interim Greece-Turkey Assistance Committee
is hereby established.
A Functions. The Committee shall serve as the
principal instrument of coordination for the various offices
of the Department concerned with problems relating to
the Greece-Turkey Assistance Program. Specifically :
1 To identify, analyze, and coordinate policy, op-
erational, and organizational plans and recommenda-
tions on problems relating to the Greece-Turkey Assist-
ance Program for the consideration of the Secretary
and Under Secretary.
2 To plan, initiate, and maintain policy supervi-
sion over the preliminary operational phases of the
program.
B Memiership.
1 The Interim Greece-Turkey Assistance Commit-
tee shall be composed of a representative from each of
the following units : U-E ; A-P ; A-H ; A-T ; A-B ; NEA ;
EUR ; OFD ; and ITP. When appropriate, representa-
tives of other units concerned may be invited or may
request to participate in the work of the Committee.
2 The officers of this Committee are : The Chair-
man, Mr. George C. McGhee, U-B; the Executive Sec-
retary, Mr. John D. Jernegan, NE. The secretary will
777
THE DEPARTMENT
be provided by the Committee Secretariat Branch of
the Executive Secretariat.
Appointment of Officers
Hamilton Robinson as Director, Office of Controls,
effective March 10, 1947.
Robert W. Woc.dward as Deputy Director, Office of
American Republic Affairs, effective March 20, 1947.
The Department of State announced on April 14 the ap-
pointment of Otis E. Mullilcen as Adviser in the Division
of International Organization Affairs, Office of Special
Political Affairs, Department of State.
Departmental Regulations
116.1 Office of the Legal Adviser (Le): (EfFective
2-14-47)
I Functions. The Legal Adviser has equal rank in
all respects with the Assistant Secretaries and has general
respnnsibaity for aU matters of a legal character concern-
ing the Department and Foreign Service. This involves
the direction and coordination of all legal activities in the
Department and includes the following functions :
A General.
1 Maintains liaison within the Department and
with other departments on legal and related matters.
2 Provides legal representation on Departmental
and Interdepartmental committees.
3 Participates in international conferences, and
provides representation to the Secretary's Staff Com-
mittee.
B Atomic Energy and Oemianr Austrian Matters.
1 Assists in the solution of legal problems relating
to atomic energy matters; including the participation of
the United States in the Atomic Energy Commission of
the United Nations and in the establishment of an inter-
national agency for the control and development of
atomic energy.
2 Handles specialized legal problems Involving
Military Government laws and policy with respect to
Germany and Austria.
C Political Affairs.
1 Provides legal services for the geographic offices
and divisions including the drafting or approving of in-
structions to embassies, consulates, and missions abroad
and of communications to foreign embassies and lega-
tions in Washington whenever such Instructions relate
to a function of the political divisions and present a
problem of legal character ;
2 Handles questions relating to diplomatic pro-
tection of American nationals and their property inter-
ests In foreign countries ;
778
3 Drafts and advises on treaties and other agree-
ments with foreign governments in the general political
field including treaties of peace and agreements subsid-
iary thereto.
D International Organization Affairs.
1 Renders legal services in connection with partici-
pation of the United States in international organiza-
tions, particularly the United Nations and its principal
organs, the Security Council, General Assembly, the Eco-
nomic and Social Council, the Trusteeship Council, and
the International Court of Justice ;
2 Handles legal problems relating to the functions
of the United Nations Relief and Rehabilitation Admin-
istration and to the specialized agencies of the United
Nations.
E International Claims.
1 Provides legal services on all international
claims, including legal questions arising as a consequence
of (a) war losses and (6) post-war programs of nation-
alization and agrarian reform programs of foreign
countries ;
2 Assists in the settlement of pre-war claims
against a number of countries.
F Economic Affairs.
1 Provides legal services for the Under Secretary
for Economic Affairs, the Assistant Secretary for Eco-
nomic Affairs and for the offices and divisions (other
than the Office of Foreign Liquidation ) under the direc-
tion of the Assistant Secretary for Economic Affairs, and
economic matters otherwise arising in the Department ;
2 Provides legal services on problems relating to
financial matters including loans made by the United
States, investments of American industries abroad, car-
tels and combines, industrial and literary property, com-
mercial treaties and trade agreements, and transporta-
tion problems;
3 Provides legal services on matters relating to
aviation, shipping, and seamen, telecommunications,
health and welfare activities, labor problems and natural
resources, including fisheries.
G Administration and Foreign Service. .
1 Provides legal assistance to the Assistant Secre-
tary for Administration and for the offices and divisions
under his directiton in all matters relating to the admin-
istration of the Department and the Foreign Service,
including personnel, budget, expenditure of funds and
appropriation language ;
2 Prepares, revises or reviews legislation. Foreign
Service regulations, and Executive Orders before clear-
ances with the Bureau of the Budget ;
3 Supei-vises the legal aspects of the Foreign Serv-
ice building program and passes upon tlie validity of real
property transactions ;
4 Handles Foreign Service legal problems relating
to estates and notarial functions;
5 Provides instruction on problems of law affecting
the Foreign Service, such as diplomatic privileges and
immunities.
Department of State Bulletin
H Military Affairs and Occupied Areas.
1 Provides legal services for the Assistant Secre-
tary for Occupied Areas including legal services relating
to the Administration of the Selective Service Act in Its
effect on foreign relations, to war crimes, and to Hague,
Geneva, or similar Conventions as may be given consid-
eration ;
2 Handles legal problems concerning military and
naval bases ; and jurisdiction over members of armed
forces in foreign countries ;
3 Works closely with other interested divisions of
the Department with regard to the legal problems of
occupied areas and other related problems arising di-
rectly out of the war such as reparations, the repatria-
tion of refugees, and the taking over of Axis assets
abroad, including diplomatic and consular properties.
I Piihlic Affairs.
1 Provides legal services for the Assistant Secre-
tary for Public Affairs and for the offices and divisions
under his direction relating to contracts, supplementary
agreements and modifications in connection with the
Information and cultural relations program ;
2 Handles legal matters connected with the Ad-
ministration of the Act of May 23, 1938 (5 U. S. O. llSe) ;
3 Provides legal counsel in connection with radio
broadcasting and motion picture activities.
J Special ProhJems.
1 Handles legal problems in particular fields which
call for specialization of an intensive character and
which cut across other fields, such as immigration and
nationality, sovereign immunity, extradition, and court
procedure generally.
2 Discharges the Department's responsibilities
with regard to amendments to the Constitution, and
ascertains the electors for President and Vice President.
K Treaties and other International Agreements.
1 Collects, compiles, and maintains information
pertaining to treaties and other international agree-
ments ;
2 Performs research and furnishes information
and advice with respect to the provisions of such exist-
ing or proposed instruments ;
3 flandles procedural matters on treaties, includ-
ing the preparation of full powers, ratifications, procla-
mations, and protocols ;
■1 Handles matters related to the signing, ratifica-
tion, proclamation, and registration of treaties and other
international agreements ;
5 Provides custody of the original texts of treaties
and other international agreements ;
6 Prepares reports and messages for submission of
treaties to the Senate ;
7 Provides current and long range planning on all
treaty matters, in collaboration with other offices con-
cerned.
L Legislative Counsel.
1 Maintains relations vilth the Congress and serves
April 27, 1947
THE DEPARTMENT
as the principal point of coordination for all liaison
activities between the Department and the Congress ;
2 Provides legal guidance to offices and divisions
of the Department concerned with legislative action (in-
cluding the advice and consent of the Senate to the ratifi-
cation of treaties and conventions) in connection with
the Department's programs or projects ;
3 Assists in the preparation of legislation and di-
rects the coordination of its presentation to the Congress
in conjunction with and on approval of the Assistant
Secretaries as to policy affecting their respective fields
of responsibility ;
4 Clears all reports to Congress that are trans-
mitted or approved on behalf of the Department;
5 Receives in the first instance all requests, oral or
written, for expressions of opinion on pending or pro-
posed legislation excepting those instances where con-
tact is made directly with the Office primarily con-
cerned with such pending or proposed legislation. Where
these exceptions occur, the Legal Adviser is to be kept
fully advised of all developments consequent thereto;
6 Clears all communications prepared in response
to requests for comment on pending or proposed legis-
lation, all communications between the Department and
other government departments and agencies regarding
such legislation and in general all communications per-
taining to pending or proposed legislation, treaties or
conventions which are addressed by the Department to
the Congress, to chairmen of committees and to individual
members ;
7 Clears all replies to oral or written requests from
the Bureau of the Budget for the views of the Depart-
ment on enrolled enactments of the Congress, proposed
or pending legislation, and Executive Orders.
II Organization. The Office of the Legal Adviser con-
sists of the following :
A Tlie immediate office of the Legal Adviser includ-
ing the office of his Executive Assistant (Le).
B Special Assistants.
1 Special Assistant to the Legal Adviser for Atomic
Energy Matters (Le).
2 Special Assistant to the Legal Adviser for Ger-
man-Austrian Affairs (Le).
C Assistant Legal Adviser for Political Affairs
(Le/P).
D Assistant Legal Adviser for International Organ-
ization Affairs (Le/I).
E Assistant Legal Adviser for International Claims
(Le/C).
P Assistant Legal Adviser for Economic Affairs
(Le/E).
G Assistant Legal Advi.ser for Administration and
Foreign Service (Le/A).
H Assistant Legal Adviser for Military Affairs and
Occupied Areas (Le/M).
I Assistant Legal Adviser for Public Affairs (Le).
J Assi.stant Legal Adviser for Special Problems
(Le/S).
K Assistant for Treaty Affairs (Le/T).
L Legislative Counsel (AA/L).
779
The Council of Foreign Ministers ^sKe
Moscow Meeting of the Council of Foreign
Ministers. Statements by the Secretary
of State:
Questions Relating to Germany:
Relation of German Coal Production to
Economic Unity 741
Delimitation of Scope of Proposed Four-
Power Treaty for Germany 741
Consideration of Disarmament Measures
for Germany 742
American Position on Peace Conference . . 742
Economic Affairs
U.S. Delegation to Tin Study Group .... 748
American Delegation to International Radio
Conference 749
Post-UNRRA Relief Program. Statement by
Acting Secretary Acheson 755
Our Domestic Economy and Foreign Affairs.
By Assistant Secretary Thorp 758
International Trade Conference Convenes in
Geneva. Statement by the Deputy
Chairman of the U.S. Delegation .... 763
U.S.-Swedish Talks on Import Restrictions . . 767
Pre-1934 Philippine Bonds Delivered to U.S.
for Destruction 767
Conversations With Cuba on Broadcasting . . 770
General Policy
Control of Exportation and Importation of
Arms, Ammunition, and Implements of
War. The President's Message to the
Congress 750
U.S. Requests Reinstatement of Credentials for
Correspondent in Spain 764
Letters of Credence: Siam 767
Anniversary of Pan American Day. Statement
by Assistant Secretary Braden 768
The Inter- American System: A Solid Founda-
tion for the Challenge of the Future. By
Ellis O. Briggs 769
Confirmations to Atomic Energy Commission . 774
United Nations Page
The Establishment of the Commission for Con-
ventional Armaments. Article by James
M. Ludlow 731
U.S. Delegation to Passports Conference . . . 748
U.S. Delegation to Preparatory Commission of
IRQ 748
Milton Eisenhower to UNESCO Executive
Board 749
Occupation Matters
Revision of Japanese Educational System . . . 746
U.S. Zone in Germany Closed to Additional
Displaced Persons 766
Treaty Information
Italy, Syria, and Lebanon Join Bank and
Fund 749
Surplus Property Air-Rights Agreements . . . 766
Lend-Lease Discussions With U.S.S.R 767
Protocol for the Regulation of Whaling — 1946 . 771
International Convention for the Regulation
of Whaling 772
Air Agreement With Canada Amended. Ex-
change of Notes 775
Educational, Scientific, and Cultural
Cooperation
Visit of Cuban Chemist 770
Calendar of international Meetings . . . 744
The Foreign Service
Appointments of Public Affairs Officers. , . . 777
The Congress 776
The Department
Interim Greece-Turkey Assistance Committee. 777
Appointment of Officers 778
Departmental Regulations 778
Publications
The U.S. and Non-Self-Governing Territories . 774
Agriculture in the Americas 777
James M. Ludlow, author of the article on the establishment of
the Commission for Conventional Armaments, is a Divisional Assis-
tant in the Regulation of Armaments Branch, Division of Interna-
tional Security Affairs, Office of Special Political Affairs, Department
of State.
U. S. GOVERNMENT PRINTING OFFICEi 1947
^ri€/ zl^e^a/y^iT^teni/ xw t/tate^
MOSCOW MEETING OF THE COUNCIL OF FOR-
EIGN MINISTERS: Discussion of German and
Austrian Draft Treaties • Statements by the Secretary
of State 793
POLICY STATEMENTS BY FAR EASTERN COM-
MISSION ON JAPANESE CONSTITUTION .
802
UNITED STATES TRUSTEESHIP FOR THE TERRI-
TORY OF THE PACIFIC ISLANDS • Article by
Robert R. Robbina 783
For complete contents see back cover
Vol. XVI, No. 409
May 4, 1947
li. S. SUPERIKTENDENT Of DOCUMENTS
JUN ^ 1947
<JAe ^e^ia/i(i^e^t /^ ^ale Vj W JL JL Kj L 1 1 1
Vol. XVI, No. 409 • Publication 2818
May 4, 1947
For sale by the Superintendent or Documents
D. S. Government Printing Office
WashiDgton 25, D. C.
Subscription:
62 Issues, $5; single copy, 15 cents
Published with the approval of the
Director of the Bureau of the Budget
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
OF State Bulletin as the source will be
appreciated.
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 plutses of inter-
national affairs and the functions of
the Department. Information is in-
cluded concerning treaties and in-
ternational agreements to which the
United States is or may become a
party and treaties of general inter-
national interest.
Publications of the Department, cu-
mulative lists of which are publislied
at the end of each quarter, as well as
legislative material in thefield of inter-
national relations, are listed currently.
UNITED STATES TRUSTEESHIP FOR THE TERRITORY
OF THE PACIFIC ISLANDS
iy Robert R. Robbins
This article traces the steps in the development of the
trusteeship agreement for the forvrver Japanese Mandated
Islands which was approved by the Security Council on April
^, 191i7. Only congressional authorization to accept on be-
half of the United States is now required to approve and
bring into force the trusteeship agreen^nt for the Territory
of the Poucific Islands.
The Security Council of the United Nations has
completed its deliberations on the United States
draft trusteeship agreement for the former Jap-
anese Mandated Islands. By a unanimous vote on
April 2, 1947, it approved, with but four minor
changes, the text of the agreement proposed by the
United States and submitted to the Secretary-
General by the United States Representative in the
Security Council on February 17, 1947. The final
acceptance of the agreement without substantial
changes was reached only after full acceptance of
the United States view that the matter of trustee-
ship for the former Japanese Mandated Islands
does not depend upon, and need not await, the
general peace settlement witli Japan.
According to article 16 of the agreement, the ap-
proval by the Government of the United States
ifter due constitutional process is also required as
well as that of the Security Council, which has al-
['•eady been given, before the agreement comes into
jforce. Wlien that process is completed, the juris-
diction which the United States now exercises un-
|ler military government in the mandated Mari-
|inas, Caroline, and Marshall Islands of the central
Pacific will be transformed and established within
I he international trusteeship system of the United
'fations.
Aay 4, 1947
A review of the problem of trusteeship and non-
self-governing territories in Allied consultations
during tiie war, the initiative by the United States
on this issue, and the constructive leadership it
exercised throughout the prolonged deliberations
which culminated in the writing of chapters XI,
XII, and XIII into the Charter of the United
Nations at the San Francisco conference is set
forth in an earlier issue of the Bulletin.^ A more
recent Bulletin article = deals with the inaugura-
tion of the trusteeship system provided for by the
Charter and the organization of the Trusteeship
Council following the approval by tlie General As-
sembly in December 1946 of trusteeship agreements
for eight non-strategic territories, all of which
were formerly mandates under the League of Na-
tions. The most recent step in the development of
the international trusteeship system is the action
taken by the Security Council to place the former
Japanese Mandated Islands under trusteeship. To
' Ralph J. Bunclie, "Trusteeship and Non-Self-Governing
Territories in the Charter of the United Nations", Bulle-
tin of Dec. 30, 1945, p. 1037.
^Elizabeth H. Armstrong and William I. Cargo, "The
Inauguration of the Trusteeship System of the United
Nations", Bulletin of Mar. 23, 1947, p. 511.
783
this end, the United States submitted the draft
trusteeship agreement which may now be consid-
ered in the light of its recent approval by the
Security Council.
At the outset of any discussion concerning the
disposition of the former Japanese Mandated
Islands, it is useful to bear in mind the nature and
extent of these islands and the historical facts
which led up to the assumption of United States
jurisdiction over them.
The Isles of Micronesia
The islands of Micronesia are sometimes consid-
ered as an archipelago of great extent which lies
just north of the Equator in the central Pacific.
The archipelago contains three groups of islands
which stretch fully 2,600 miles from east to west,
and about 500 miles in gi-eatest width. The
island groups are : the Marshall Islands, including
Kwajelein, Eniwetok, and Majuro, which lie about
1,500 miles southwest of Hawaii; the Caroline
Islands, including Kusaie, Ponape, Truk, Ulithi,
Yap, and the Palaus, the latter extending to
within several hundred miles of the Philippines ;
and the Marianas Islands, including Saipan and
Tinian in addition to the United States possession
of Guam, extending northward to within 1,000
miles of Japan proper.* With respect to the area,
population, and economy of the islands, the United
States Representative in the Security Council
stated on February 26, 1947, that "The Japanese
Mandated Islands— the Marshalls, Marianas, and
Carolines— consist of some 98 islands and island
clusters with a total land mass of only 846 square
miles, a total population of only about 48,000
native inhabitants, and negligible indigenous eco-
nomic resources." *
Many of the isles of Micronesia were discovered
by Spanish navigators during the sixteenth cen-
tury. In 1565 Spain annexed the Marianas. It
was only in the latter part of the nineteenth cen-
tury, however, that the islands of the central
Pacific acquired international political signifi-
' Also included in the Pacific area of Micronesia are tlie
Gilbert Islands, which lie across the Equator, and the
mandated island of Nauru, which lies just south of the
Equator.
* BuiXETiN of Mar. 9, 1947, p. 416.
'Foreign Relations, The Paris Peace Conference, 1919,
vol. XIII, pp. 97-98, lOa-104, 277-278. (Department of
State publication 2757.)
784
cance. Germany took possession of the Marshalls
in 1885. The Spanish flag was raised over the
Carolines the following year. In 1898, at the close
of the Spanish-American War, the United States
acquired Guam. In 1899 Germany purchased the
remaining Marianas and all of the Carolines from
Spain and remained in possession of these and
the Marshalls until World War I. In October
1914 Japanese forces occupied all the German
islands in Micronesia except Nauru, which was
occupied by the Australians.
By article 119 of the Treaty of Versailles, Ger-
many renounced in favor of the Principal Allied
and Associated Powers all her rights and titles
over her overseas possessions. These colonies, de-
scribed in paragraphs 5 and 6 of article 22 of the
Covenant of the League of Nations, were subse-
quently administered under "B" and "C" man-
dates. On May 7, 1919, the territories referred to
were allocated to mandatories for administration
under the terms of article 22 by a decision of rep-
resentatives of the United States, France, Great
Britain, and Italy. The decision included the
following stipulation regarding the German
islands north of the Equator : "The mandate shall
be held by Japan." The United States, on No-
vember 9, 1920, declared to the other governments
to which Germany renounced her colonies that "at
the previous request of President Wilson" at the
Paris Peace Conference and in the hope that it
might be made available by agreement as an inter-
national cable station, "it is the understanding of
the Government that the Island of Yap was not
included in the action of the Supreme Council on
May 7, 1919."
In as much as the Governments of Great Britain,
France, Italy, and Japan did not share that under-
standing, correspondence ensued which involved
the terms of the mandate under which Japan was
to administer the former German islands north
of the Equator. The Governments of the United
States and Japan reached an agreement with re-
gard to the temporary operation of the Naba- Yap-
Guam cables, with the consent of Great Britain,
France, and Italy. This agreement was evidenced
by Executive Order No. 3600, December 24, 1921,
and an exchange of notes of January 30 and Feb-
ruary 4, 1922.=
Japan was assigned a class "C" mandate over the
former German islands in the Pacific Ocean north
Deparfmenf of State Bulletin
of the Equator. Specific obligations were im-
posed upon the mandatory power, notably to pro-
mote to the utmost the material and moral well-
being and the social progress of the natives, to
prohibit slavery and forced labor, to control traffic
in arms, to exclude alcoholic beverages, to permit
freedom of worship and missionary activities, to
refrain from building fortifications and military
bases, and to submit an annual report to the League
of Nations. On these terms Japan was confirmed
as the mandatory power by the Council of the
League of Nations on December 17, 1920.
United States arrangements with Japan for
communication facilities were further recorded in
the treaty with Japan regarding rights in former
German islands in the Pacific Ocean north of the
Equator, and in particular the Island of Yap,
signed at Washington February 11, 1922, and
brought into force July 13, 1922.
The islands under mandate attracted little inter-
national attention until rumors gained currency
in 1932 that Japan was fortifying some of the
islands, notably Truk, in violation of the mandate.
Japan categorically denied such reports and suc-
cessfully avoided international investigation. In
1933 the fortification issue became subordinate to
Japan's notice of intention to withdraw from the
League and resulting discussion of her right to
continue as mandatory upon ceasing to be a mem-
ber of the League. Japan remained in the man-
dated territory after her withdrawal became final
in 1935 and continued to submit annual reports
to the League through the year 1938. Meanwhile,
no League member raised officially the question of
Japan's right to continue as mandatory power.
After 1938 the islands were increasingly treated
by Japan as a closed military area.
The Islands During the War
Upon the outbreak of World War 11, Japan's
rapid movement south and eastward into the Pa-
cific at the same time her forces were overrunning
southeastern Asia revealed with grim clarity the
extent to which military preparations had been
undertaken and operations projected which in-
cluded use of the mandated islands as bases for ag-
gression to the south and east. Japanese eastward
I aggression reached its apogee in the attack on Pearl
'Harbor on December 7 and the hard-won landings
I at Wake Island on December 22, 1911. Guam fell
to the aggressor on December 12.
Within less than three months, however, Amer-
ican naval units were engaging in defensive oper-
ations devised almost exclusively for protecting
our shores and lines of communication from the
enemy. Operations of this type in the central Pa-
cific began by the raid on the Marshall and Gilbert
Islands on February 1, 1942. Our victory in the
Battle of Midway " of June 3-6 removed the threat
to Hawaii and the American west coast.
Over the next two years defensive operations
gradually changed to full offensive attacks on
enemy positions. In the autumn of 1943 carrier-
based air strikes on Marcus, Tarawa, Apamama,
and Wake Islands served to soften Japanese in-
stallations and keep the enemy guessing as to
where the next full-scale attack would be delivered.
Makin Island was captured on November 22, and
after a four-day assault the heavily fortified island
of Tarawa was taken on November 24, 1943. At
the end of January 1944, large-scale offensive oper-
ations were undertaken in the Marshalls which
continued throughout February. In the follow-
ing two months extensive task-force raids were
carried out in the western, central, and eastern
Carolines. Heavy attacks on Truk and Ponape
at the end of April were delivered by the fast-
carrier task force returning from support of the
Hollandia operation. The Marianas Islands op-
eration took place during the summer of 1944 and
resulted in the capture of Saipan, Guam, and
Tinian, and the neutralization of the other islands
of the Marianas. The western Carolines opera-
tion opened in September. Heavy assaults and
stiffly resisted landings on Peleliu Island on Sep-
tember 15 were the principal steps in neutralizing
all the Palau Islands. Thus, in part, the way was
prepared for executing plans for the reoccupation
of the Philippines and subsequent operations cal-
culated to bring about the total defeat of Japan.
The Japanese Mandated Islands thus loomed
large in the war in the Pacific. The foregoing
chronology of naval operations ' recalls to mind
'The Korean Admiral Yi-San defeated the fleet of the
Japanese Shogun Hideyoshi ofC the Korean coast in 1592.
In this connection the statement has been made that the
Battle of Midway was the first defeat suffered by the
Japanese Navy in 350 years, which gives the false im-
pression that there was a Japanese Navy in existence
throughout that period.
' U.S. Navy at War 1941-19/,5, Official Reports to the
Secretary of the Navy by Commander in Chief, United
States Fleet, and Chief of Naval Operations (Washington,
1946), passim.
May 4, 1947
785
the magnitude of the price in human lives, eifort,
and materiel required to wrest them from the
enemy. No member of the United Nations has
suggested that Japan should ever be reestablished
in them.
Present Status of Japanese and Japanese
Mandated Islands
The Cairo Declaration of December 1, 1943,
stated that:
". . . Japan shall be stripped of all the
islands in the Pacific which she has seized or occu-
pied since the beginning of the first World War in
1914, and that all the territories Japan has stolen
from the Chinese, such as Manchuria, Formosa,
and the Pescadores, shall be restored to the Re-
public of China. Japan will also be expelled from
all other territories wliich she has taken by violence
and greed."
This declaration was reaffirmed by the procla-
mation issued by the heads of the Governments of
the United States, China, and the United Kingdom
on July 26, 1945, at Potsdam, and subsequently
adhered to by the Union of Soviet Socialist Re-
publics.* Article 8 of the Potsdam Declaration
stated :
" ( 8 ) The terms of the Cairo Declaration shall be
carried out and Japanese sovereignty shall be
limited to the islands of Honshu, Hokkaido,
Kyushu, Shikoku and such minor islands as we
determined."
On September 2, 194.5, Japan accepted these
terms by the Instrument of Surrender."
The application of tlie surrender terms to the
islands of the Pacific formerly under the jurisdic-
tion of Japan resulted in the United States acquir-
ing responsibility for the present administration
of a large number of them. United States military
government is maintained at present in all outlying
Japanese islands except the Kuriles and Southern
Sakhalin, now under the control of the Govern-
ment of the Soviet Union, and in Formosa, which is
under the jurisdiction of China. The authority of
General of tlie Army MacArthur extends to the
' BuujiTm of July 29, 1945, p. 137.
' BuiXETi>f of Sept. 9, 194.5, p. 3&4.
" Bulletin of Nov. 17, 1946, p. 889.
" For text of the draft agreement see Bulletin of
Nov. 17, 1946, p. 889.
786
Ryukyu and Izu Islands which lie south and
southeast of the main Japanese islands. All the
other Japanese islands to the south and the former
Japanese Mandated Islands are administered by
the United States Navy under directives issued by
the Joint Chiefs of Staff.
The position of the United States regarding the
outlying Japanese islands and Japanese Mandated
Islands has been clearly stated by President Tru-
man, who announced on November 6, 1946: "The
United States is prepared to place under trustee-
ship, with the United States as the administering
authority, the Japanese Mandated Islands and any
Japanese islands for which it assumes responsibil-
ities as a result of the second World War." '" The
President also stated that at an early date the
United States planned to submit formally to tlie
Security Council of the United Nations a draft
trusteeship agreement for the former Japanese
Mandated Islands.
Submission of the Trusteeship Agreement
The draft trusteeship agreement " to which the
President referred was developed after long and
careful consultations by the State, War, and
Navy Departments. It contained the provisions
whereby the United States was prepared to place
the former Japanese Mandated Islands under in-
ternational trusteeship. The draft agreement was
made public on November 6, 1946, and copies
were transmitted for information to the other
members of the Security Council (Australia, Bra-
zil, China, Egypt, France, Mexico, the Nether-
lands, Poland, the Union of Soviet Socialist Re-
publics, and the United Kingdom) and to New
Zealand and the Republic of the Philippines, and
were later transmitted to the newly elected mem-
bers of the Security Council (Belgium, Colombia,
and Syria) .
It was believed by some governments that the
matter should be held over until the peace treaty
with Japan. The United States maintained that
it was proposing the agreement in ftiU compliance
with the trusteeship provisions of the Charter and
was acting on the recommendation of the General
Assembly of February 1946 which invited states
administering former mandated territories to sub-
mit trusteeship proposals. Therefore, it saw no
reason why this matter should be postponed, but
was willing, after the formal presentation of its
Department of Slate Bulletin
trusteeship proposals, to consider such postpone-
ment as the Security Council might deem
necessary.
On February 17, 1947, the text of the draft trus-
teeship agreement was submitted by the United
States Eepresentative to the United Nations, War-
ren R. Austin, to the Secretary-General with a
request that the matter be placed on the agenda
of the Security Council at an early date.^^ Tlae
matter was placed on Uie provisional agenda for
the 113th meeting of the Security Council." The
United States submitted the draft trusteeship
agi-eement for approval by the Security Council,
rather than by the General Assembly, because
under its terms the territory is designated as stra-
tegic. This is in accordance with article 82 of the
Charter, which provides that "There may be desig-
nated, in any trusteeship agi-eement, a strategic
area or areas which may include part or all of the
trust territory . . .", and article 83, which states
that "All functions of the United Nations relating
to strategic areas, including the approval of the
terms of the trusteeship agreements . . . shall be
exercised by the Security Council."
Consideration by the Security Council
Mr. Austin formally submitted the United States
draft trusteesliip agreement to the Security Coun-
cil on February 26, 1947." At the same time he
submitted to the Security Council a paper contain-
ing the text of the draft agreement with article-by-
article explanatory comments.'^ The Security
Coimcil began consideration of the draft trustee-
ship agreement on March 7, 1947, and discussions
on the question were continued at four later meet-
ings held on March 12, 17, and 28, and April 2,
1947.
At the 116th meeting of the Security Council the
Australian Representative proposed that the de-
cision of the Security Council should be finally
confirmed at the peace conference settling the
Pacific war, and that states not members of the
Security Council who were belligerents in that war
should have an opportunity to discuss the terms of
trusteeship. As indicated below, the first of these
propositions was later withdrawn. In regard to
the second proposition the Australian Representa-
tive proposed that a committee of the Council be
established for the purpose of considering in detail
May 4, 1947
the draft trusteeship agreement; and that the com-
mittee should consist of representatives of coun-
tries having a direct interest in the future of the
Japanese Mandated Islands, including representa-
tives of such countries, not members of the Se-
curity Council, who might be invited to partici-
pate in the discussion of the question in accordance
with article 31 of the Charter.
In reply to this proposition the United States
Representative stated: "Four months ago, the
countries who are not members of this Security
Council were delivered copies for the purpose of
studying them. This conduct was consistent with
the principles and policies of the United States."
In conclusion he asked : "Wliy is it that the Council
is asked to take such action as this that is proposed
here if these countries who have had notice, and if
other countries who have not had notice but who
have lived in circumstances where they are really
charged with knowledge, have none of them — not
one single one — come forward and asked to be
heard ? Wliy are we asked to pass that ? I regret
it very much, but I think it would not be acting
equitably to pass this resolution."
In responding to this statement the Australian
Representative declared that Australia's policy has
been to support the United States policy in obtain-
ing control of the islands, and that it was surpris-
ing that his resolution should be interpreted as an
attempt to interfere with the attainment of that
objective.
As debates ^^ on the issue continued, communi-
cations were received from the Governments of
New Zealand and India requesting, under article
31 of the Charter, that they be allowed to partici-
pate in the discussions. The New Zealand Gov-
ernment also requested that those members of the
Far Eastern Commission not represented in the
Security Council be invited to participate, if they
so desired, in the discussions. At its 118th meet-
"^ U.N. doe. S/281, Feb. 17, 1947.
" U.N. doc. S/287, Feb. 21, 1947.
" The complete .statement by Mr. Austin in the Security
Council i.s found in the Buixetin of Max. 9, 1947, p. 416.
'° BuiiETiN of Mar. 0, 1947, p. 420.
"Verbatim records of the Security Council discussions
on the U. S. draft trusteeship agreement for the former
Japanese Mandated Islands are contained in the following
U. N. documents (1947) : S/P. V. 113, Feb. 26; S/P. V. 116,
Mar. 7 ; S/P. V. 118, Mar. 12 ; S/P. V. 119, Mar. 17 ; S/P. V.
123, Mar. 28 ; S/P. V. 124, Apr. 2.
787
ing the Security Comicil decided to grant these
requests. Mr. Austin stated that the United States
freely assented to the issuance of the proposed
invitations, and Mr. Hasluck, the Australian
Representative, treating the statement as a pro-
posal, promptly supported it. The Security
Council accordingly invited Canada, India, the
Netherlands, New Zealand, and the Republic of
the Philippines to be represented at subsequent
discussions on the United States draft trusteeship
agreement. The views of all of these states, whose
representatives took an active part in the delibera-
tions, were heard at the Council's table.
In a five-and-one-half-hour session on April 2,
1947, the Security Council reconsidered tlie entire
agreement article by article. Well along in the
discussions, during the debate on article 15 of the
agreement, the Representative of Syria stated that
the Council "was not giving implementation or
the correct execution of article 79 of the Charter",
because it "was paying no attention or no con-
sideration at all to the States directly concerned."
He believed "that the matter ought to be studied
further in order to have this part of the work
better understood and better defined." He moved
to adjourn the meeting and to fix another meeting
the following week so that all the representatives
participating in the discussions might be able to
study the matter and prepare a full discussion on
the point of which are the "States directly con-
cerned". This motion was lost by a 5 to 6 vote,
which permitted the discussions to continue until
the final vote on the agreement was taken.
In voting on proposed amendments the United
States Representative followed the rule of casting
a vote when the United States vote would be in
the affirmative, and abstaining from voting in cases
wherein the United States did not favor the pro-
posal before the Council. He abstained, therefore,
from voting on proposals to revise article 8(1)
and article 15. Prior to the voting on each of
these articles, the United States Representative
declared that the United States would not veto
the amendment. He made it clear in both cases,
however, that if the United States had a vote it
would, of course, vote "no". Thus, in advance
of his first abstention, he stated that, "On ques-
tions such as this, it is perfectly clear — to us any-
way— that the United States, when it may be
obliged in view of its responsibilities to withdraw
the tender of an agreement, should certainly not
788
exercise a veto in the Security Council also." Prior
to his second abstention he said, "The United
States being a jjarty to the agreement, all I can
do is, with the utmost modesty, state that an
amendment in the nature of that proposed . . .
probably could not be accepted by the United
States as a party to the agreement."
At the close of the 124th meeting, the Security
Council voted on the agreement as a whole, noting
the various changes which had been passed. The
Council approved unanimously the United States
draft agreement including three minor amend-
ments which had been accepted by the United
States Representative upon instructions from his
Government. The three amendments in the text
of the agreement are as follows :
1. Articles. An amendment was proposed by
the Representative of the Union of Soviet Social-
ist Republics to delete the words as an integral part
of the United States. Upon accepting this amend-
ment at the 116th meeting of the Security Council,
the United States Representative said, inter alia:
"In agi-eeing to this modification, my Government
feels that it should affirm for the record that its
authority in the trust territory is not to be consid-
ered in any way lessened thereby."
2. Article 6{1). An amendment was proposed
by the Representative of the Union of Soviet So-
cialist Republics, and revised in the Council, to
add after the words toward self-government the
words or independence as may be appropriate to
the particular circumstances of the trust territory
and its peoples and the freely expressed wishes of
the peoples concerned,. In accepting modifica-
tion in article 6(1) at the 116th meeting of the
Security Council, the United States Representa-
tive declared that "the United States feels that it
must record its opposition not to the principle of
independence, to which no people could be more
consecrated than the people of the United States,
but to the thought that it could possibly be
achieved within any foreseeable future in this
case."
3. Article 6{1). An amendment was suggested
by the Representatives of New Zealand and India
and introduced on behalf of the latter at the 124th
meeting of the Security Council, to delete the word
local from the phrase in local government; . The
observation of the Representative of India at the
124th meeting in behalf of this deletion was that
in certain countries the word local connotes mu-
Deparfmenf of State Bulletin
nicipal government, and that surely would not be
the intention of the Kepresentative of the United
States.
In the final consideration of the United States
trusteeship proposals, the original text of articles
1, 2, 4, 5, 9, 10, 11, 12, 14, and 19 was approved in
each case without objection or comment. The
United States Representative, Mr. Austin, re-
quested that article 6(2) be perfected by putting
a comma in the second line after the word inhabi-
tants. He also requested that article 7 be perfected
as follows :
'■'■ Article 7. In discharging its obligations under
Article 76(c), of the Charter, the administering
authority shall guarantee to the inhabitants of the
trust territory freedom of conscience, and, subject
only to the requirements of public order and se-
curity, freedom of speech, of the press, and of
assembly; freedom of worship, and of religious
teaching; and freedom of migration and move-
ment."
Mr. Austin stated : "The significance of this per-
fection of the article is that it moves up freedom
of conscience so that it will not be subject to the
requirements of public order and security."
The approval of the trusteeship agreement with
the three minor amendments and these two slight
changes followed the withdrawal or rejection of
several other proposed amendments as follows:
1. The Preamble. Discussions on the preamble
concerned three alternative versions — suggested by
Poland, the Netherlands, and the United States —
of an amendment proposed originally by the Rep-
resentative of Poland at the 116tli meeting of the
Security Council. This proposal was to add the
following phrase to paragraph four: "Whereas
Japan has violated the terms of the above-men-
tioned mandate of the League of Nations and has
thus forfeited her mandate . . .". The United
States Representative endorsed this proposal, but
the amendment was reconsidered at the 124th
meeting. The Netherlands Representative pro-
posed that the amendment read: "Wliereas, as a
result of the signature by Japan of an act of uncon-
ditional surrender, the mandate held by Japan for
these islands has come to an end". As a compro-
mise, the United States Representative proposed
the following wording: "Whereas the mandate
held by Japan for these islands has come to an end".
After failure to reach agreement on these alterna-
May 4, 1947
741062-
tive proposals, the original wording of the Pre-
amble was approved unanimously.
2. Article 8{1). The United Kingdom Repre-
sentative proposed an amendment to article 8(1)
to delete the phrase except the administering au-
thonty, holding that the inclusion of these words
would give preferential position to the United
States, which did not seem to be in strict accord-
ance with articles 83(2) and 76(d) of the Charter.
He asked whether the phrase in article 83(3) with-
out prejudice to security considerations would not
really give the United States sufficient safeguard.
After replying to this question in the negative, the
United States Representative stated for the record :
". . . the United States Government has no in-
tention, through this clause or any other clause, of
taking advantage for its own benefit, and to the
detriment of the welfare of the inhabitants, of the
meager and almost non-existent resources and com-
mercial opportunities that exist in the scattered and
barren islands. The nature of this proposed clause
is dictated by the fact that these islands are pro-
posed as a strategic trusteeship area and by the
obligations which the administering authority will
assume under the Charter 'to further international
peace and security' and to insure that the territory
itself 'shall play its part' in the maintenance of in-
ternational peace and security."
3. Article 13. The United Kingdom Representa-
tive proposed a redraft of article 13 to read:
"The provisions of article 87 and 88 of the
Charter shall be applicable to tlie trust territory,
provided that the administering authority may
at any time inform the Security Council, in ac-
cordance with article 83(3) of the Charter, that
security considerations do not permit the exercise
of the functions of the Trusteeship Council in
regard to specific areas."
He did not insist on this amendment, however,
because the United States Representative stated
for the record that the United States contemplates
that notification shall be made to the Security
Council whenever the proviso that is contained in
article 13 comes into use.
4. Article 15. Extended debate took place before
reaching agreement on article 15. Two formal
amendments to this article were presented by the
Representatives of Poland and the Union of Soviet
Socialist Republics. The Soviet amendment was
789
to make article 15 read as follows : "The terms of
the present agreement may be altered and amended
or the terms of its validity discontinued by deci-
sion of the Security Council." The Polish amend-
ment was to modify article 15 to read : "The terms
of the present agreement shall not be altered,
amended or terminated except as provided by the
Charter." At an earlier meeting the United States
Representative indicated a willingness to accept
the following text as a compromise: "The terms
of the present agreement shall not be altered,
amended, or terminated except by agi-eement of
the administering authority and the Security
Council." Following the rejection of the Soviet
and Polish amendments he indicated tliat the
United States compromise proposal was not now
pending. Thus, there was pending only the origi-
nal article 15 which the Council voted to accept.
5. Proposed Article 17. An issue debated at
length in the Security Council was embodied in
an amendment proposed by Australia to add an
article 17 to the agreement which would have de-
layed its coming into force until the effective date
of the peace treaty with Japan. The view thus
expressed was supported by the United Kingdom
and by New Zealand. The United States Repre-
sentative argued most forcefully against this pro-
posal, which would have left the agi-eement in
suspense for an indefinite period. He emphasized
throughout the debates the basic contention of the
United States Government that the matter did not
depend upon, and need not await, the general
peace settlement with Japan. Following the Se-
curity Council's decision to widen its discussions
to include representatives of Canada, India, the
Netherlands, and the Republic of the Philippines
for the purpose of stating their views on the United
States trusteeship proposals, the Australian Rep-
resentative stated: "The result of this will be to
extend the Security Council, for the time being,
into a small replica of the Conference of Nations
which would be entitled, as a matter of justice
and democratic right, to participate in the final
settlement with Japan." For this reason and in
the interests of a unanimous decision, the Austral-
ian-proposed amendment to add a new article 17
was withdrawn.
According to article 16 of the agreement, the
Security Council having approved the terms of
trusteeship, only the approval by the United States
in accordance with its constitutional process is now
required to bring the trusteeship agreement into
force. Wlien that is accomplished, the islands of
Micronesia formerly mandated to Japan will be
known officially, according to article 1 of the agree-
ment, as the Territory of the Pacific Islands. The
coming into force of the trusteeship agreement will
require a change in the membership of the Trustee-
ship Council. Article 86(1) (c) of the Charter
provides that the number of members of the Trus-
teeship Council is to be equally divided between
those members of the United Nations which ad-
minister trust territories and those which do not.
Hence, when the United States is confirmed as the
administering authority of the Trust Territory of
the Pacific Islands, it will be necessary for the
General Assembly to elect two additional members
which do not administer trust territories.
790
Department of State Bulletin
Trusteeship Agreement for the Former Japanese Mandated Islands ^
APPROVED AT THE 124th MEETING OF THE SECURITY COUNCIL
Preamble
Whereas Article 75 of the Charter of the
United Nations provides for the establishment of
an international trusteeship system for the ad-
ministration and supervision of such territories
as may be placed thereunder by subsequent agree-
ments; and
Whereas under Article 77 of the said Charter
the trusteeship system may be applied to terri-
tories now held under mandate ; and
Whereas on 17 December 1920 the Council of
the League of Nations confirmed a mandate for
the former German islands north of the equator
to Japan, to be administered in accordance with
Article 22 of the Covenant of the League of Na-
tions; and
Whereas Japan, as a result of the Second World
War, has ceased to exercise any authority in these
islands ;
Now, therefore, the Security Council of the
United Nations, having satisfied itself that the
relevant articles of the Charter have been com-
plied with, hereby resolves to approve the follow-
ing terms of trusteeship for tl:e Pacific Islands
formerly under mandate to Japan.
Article 1
The Territory of the Pacific Islands, consisting
of the islands formerly held by Japan under man-
date in accordance with Article 22 of the Cov-
enant of the League of Nations, is hereby desig-
nated as a strategic area and placed under the
trusteeship system established in the Charter of
the United Nations. The Territory of the Pacific
Islands is hereinafter referred to as the trust terri-
tory.
Article 2
The United States of America is designated as
the administering authority of the trust territory.
Article 3
The administering authority shall have full
powers of administration, legislation, and juris-
diction over the territory subject to the provisions
of this agreement,^ and may apply to the trust
territory, subject to any modifications which the
administering authority may consider desirable,
such of the laws of the United States as it may
deem appropriate to local conditions and require-
ments.
Article ^
The administering authority, in discharging
the obligations of trusteeship in the trust territory,
shall act in accordance with the Charter of the
United Nations, and the provisions of this agree-
ment, and shall, as specified in Article 83(2) of
the Charter, apply the objectives of the interna-
tional trusteeship system, as set forth in Article
76 of the Charter, to the people of the trust
territory.
Article 5
In discharging its obligations under Article
76(a) and Article 84, of the Charter, the adminis-
tering authority shall ensure that the trust terri-
tory shall play its part, in accordance with the
Charter of the United Nations, in the maintenance
of international peace and security. To this end
the administering authority shall be entitled :
1. to establish naval, military and air bases and
to erect fortifications in the trust territory ;
2. to station and employ armed forces in the
territory; and
3. to make use of volunteer forces, facilities and
assistance from the trust territory in carrying out
the obligations towards the Security Council im-
dertaken in this regard by the administering au-
thority, as well as for the local defense and the
maintenance of law and order within the trust
territory.
' See document S/281 for the original draft agreement
submitted by the Representative of the United States.
[Footnote in the original, document S/318, Apr. 2, 1947.]
See Bulletin of Nov. 17, 1946, p. 889 ; Mar. 9, 1947, p.
416 ; and Mar. 23, 1947, p. 511.
' In the final text approved by the Security Council on
Apr. 2, 1947, article 3 was amended by deletion of the
phrase as an inlciiral part of the United States.
May 4, 1947
791
Article 6
In discharging its obligations under Article
76(b) of the Charter, the administering authority
shall :
1. foster the development of such political insti-
tutions as are suited to the trust territory and shall
promote the development of the inhabitants of the
trust territory toward self-government ' or inde-
pendence as may be appropriate to the particular
circumstances of the trust territory and its peoples
and the freely expressed wishes of the peoples con-
cerned ; and to this end shall give to the inhabitants
of the trust territory a progressively increasing
share in the administrative services in the terri-
tory ; shall develop their participation in * govern-
ment ; shall give due recognition to the customs of
the inhabitants in providing a system of law for
the territory; and shall take other appropriate
measures toward these ends;
2. promote the economic advancement and self-
sufEciency of the inhabitants, and to this end shall
regulate the use of natural resources; encourage
the development of fisheries, agriculture, and in-
dustries; protect the inhabitants against the loss
of their lands and resources; and improve the
means of transportation and communication;
3. promote the social advancement of the in-
habitants and to this end shall protect the rights
and fundamental freedoms of all elements of the
population without discrimination; protect the
health of the inhabitants; control the traiSc in
arms and ammunition, opium and other dangerous
drugs, and alcohol and other spiritous [sqiritiwus']
beverages ; and institute such other regulations as
may be necessary to protect the inhabitants against
social abuses ; and
4. promote the educational advancement of the
inhabitants, and to this end shall take steps toward
the establishment of a general system of elemen-
'As finally approved by the Security Council on Apr. 2,
1947, article 6(1) was amended to add after the words
toward seli -government, the words or independence as
may be appropriate to the particular circumstances of the
trust territory and its peoples and the freely expressed
wishes of the peoples concerned.
' Article 0(1) was also amended by deletion of the word
local In the phrase in local government.
' As finally approved by the Security Council of Apr. 2.
1947, the text of article 7 contains a slight revision, re-
quested by the United States Representative, whereby
freedom of conscience is moved forward so that it is not
subject to the requirements of public order and security.
792
tary education ; facilitate the vocational and cul-
tural advancement of the population; and shall
encourage qualified students to pursue higher edu-
cation, including training on the professional
level.
Article 7
In discharging its obligations under Article
76(c) of the Charter, the administering authority
shall guarantee to the inhabitants of the trust
territory freedom of conscience,^ and, subject only
to the requirements of public order and security,
freedom of speech, of the press, and of assembly ;
freedom of worship, and of religious teaching;
and freedom of migration and movement.
Article 8
1. In discharging its obligations under Article
76(d) of the Charter, as defined by Article 83(2)
of the Charter, the administering authority, sub-
ject to the requirements of security, and the obli-
gation to promote the advancement of the inhabi-
tants, shall accord to nationals of each Member
of the United Nations and to companies and asso-
ciations organized in conformity with the laws of
such Member, treatment in the trust territory no
less favourable than that accorded therein to na-
tionals, companies and associations of any other
United Nation except the administering authority.
2. The administering authority shall ensure
equal treatment to the Members of the United Na-
tions and their nationals in the administration of
justice.
3. Nothing in this Article shall be so construed
as to accord traffic rights to aircraft flying into
and out of the trust territory. Such rights shall
be subject to agreement between the administering
authority and the state whose nationality such
aircraft possesses.
4. The administering authority may negotiate
and conclude commercial and other treaties and
agreemens with Members of the United Nations
and other states, designed to attain for the inhabi-
tants of the trust territory treatment by the Mem-
bers of the United Nations and other states no less
favourable than that granted by them to the
nationals of other states. The Security Council
may recommend, or invite other organs of the
United Nations to consider and recommend, what
rights the inhabitants of the trust territory should
(Continued on page 79.^)
Deparfmenf of State Bulletin
THE COUNCIL OF FOREIGN MINISTERS
Moscow Meeting of the Council of Foreign Ministers:
Discussion of German and Austrian Draft Treaties
STATEMENTS BY THE SECRETARY OF STATE
Reiteration of Position on Disarmament and
Demilitarization of Germany >
The United States proposal for a Four Power
treaty for the disarmament and demilitarization
of Germany which we discussed here is not men-
tioned in the Deputies' report. I am not suggest-
ing that it be included. The principle involved
is in my opinion too fundamental to be referred
to any subordinate body. I do not intend to re-
peat all the various considerations which led the
Government of the United States to propose this
treaty, nor the reasons why it attaches the great-
est importance to this subject. I will only state
that the United States Government regards very
seriously what in effect is the virtual rejection of
this treaty by the Soviet Government. I say re-
jection because the redraft proposed by Mr. Molo-
tov introduces into the treaty nearly every im-
portant difference which exists between the Four
Powers on the subject of Germany, and thus ren-
ders obviously impossible any hope of concluding
such a treaty at this time.
An agreement in principle here along the lines
proposed by the United States would have been
indication to the world that despite the character
and extent of our disagreements on other aspects
of the German problem, the Four Powers repre-
sented at this table were at least united in their
determination to prevent the revival of Germany's
capacity to make war. The advantages of such a
clear demonstration of Allied intentions, not only
on the future solution of other problems connected
with Germany but on the whole international sit-
uation, appear so obvious that the United States
finds it difficult to understand the reasons which
account for the Soviet Government's declining to
agree. Although we must face the fact that be-
cause of this attitude there is no prospect of an
agreement on this treaty at this conference, the
May 4, 1947
United States is not withdrawing its proposal for
such a treaty.
Position on Treaty for Reestablishment of
Independent and Democratic Austria '
I should like to turn again to the matter of the
Austrian treaty. I think we must decide now
whether we can or cannot conclude the Austrian
treaty here. As Mr. Molotov has several times
made clear, the main outstanding issue is article
35, dealing with German assets in Austria, The
British, French, and American Delegations have
put forward various proposals in an effort to meet
as far as possible the Soviet position. I refer
particularly to the last proposal put forward by
the United States Delegation last week and that
put forward by the British Delegation yesterday.
There is no substantial difference in the views of
the British, French, and American Delegations
on this subject.
The Soviet Delegation, according to my under-
standing, has not in any substantial way with-
drawn from the proposal it made at the session
of the Deputies in London last February. The
views expressed by the Soviet Delegation have
widened rather than narrowed our differences.
The three other delegations have made clear that
they cannot accept the Soviet proposal because
it would oblige the Austrian Government to hand
over not only b07ia fide German assets but property
which the Germans had taken from Austrians
and others by fraud and duress. We do not be-
lieve that the Soviet proposal on German assets
in Austria is consistent with the pledge made
at Potsdam that no reparations would be taken
from Austria, and with the pledge made in article
' Alade on Apr. 23, 1947, and released to the press in
Moscow on the same date, and in Washington on Apr. 24.
The Council concluded its Moscow session on Apr. 24.
793
THE COUNCIL OF FOREIGN MINISTERS
1 of the Austrian treaty,^ to reestablish Austria
as a sovereign, independent, and democratic state.
The three other delegations have urged the Soviet
Delegation to submit proposals which would meet
this objection, but despite our urging no new pro-
posal has been offered us by the Soviet Delegation.
It is clear now that no agreement can be reached
on the Austrian treaty if the Soviet Delegation
is unwilling to make any greater effort than it
has made so far to reach an understanding on
German assets in Austria. Unless, therefore, the
Soviet Delegation has some concrete proposal to
make on this subject, which will make clear that
German, assets do not include assets which in
justice and equity should be restored to non-
Germans, we must accept the fact that further
progress in the Austrian treaty is iniiJossible at
this conference.
I have one further suggestion to make. If we
are unable to reconcile our views before the meet-
ing of the General Assembly of the United Nations
in September, I hope that we may join in asking
the General Assembly to make recommendations
on this subject under article 14. It is our view
that we should not permit differences among us to
deny to Austria her independence and her right to
be free from the burdens of occupation.
Trusteeship Agreement — Continued from page 792
acquire in consideration of the rights obtained by
Members of the United Nations in the trust
territory.
Article 9
The administering authority shall be entitled to
constitute the trust territory into a customs, fiscal,
or administrative union or federation with other
territories under United States jurisdiction and
to establish common services between such terri-
tories and the trust territory where such measures
are not inconsistent with the basic objectives of
the International Trusteeship System and with
the terms of this agreement.
Article 10
The administering authority, acting under the
provisions of Article 3 of this agreement, may
accept membership in any regional advisory com-
' Referring to the treaty drafted at London January-
February 1W7 by the Foreign Ministers' Deputies.
794
mission, regional authority, or technical organ-
ization, or other voluntary association of states,
may co-operate with specialized international
bodies, public or private, and may engage in other
forms of mternational co-operation.
Article 11
1. The administering authority shall take the
necessary steps to provide the status of citizenship
of the trust territory for the inhabitants of the
trust territory.
2. The administering authority shall afford
diplomatic and consular protection to inhabitants
of the trust territory when outside the territorial
limits of the trust territory or of the territory of
the administering authority.
Article 12
The administering authority shall enact such
legislation as may be necessary to place the provi-
sions of this agreement in effect in the trust terri-
tory.
Article 13
The provisions of Articles 87 and 88 of the Char-
ter shall be applicable to the trust territory, pro-
vided that the administering authority may deter-
mine the extent of their applicability to any areas
which may from time to time be specified by it as
closed for security reasons.
Article H
The administering authority undertakes to ap-
ply in the trust territory the provisions of any
international conventions and recommendations
which may be appropriate to the particular circum-
stances of the trust territory and which would be
conducive to the achievement of the basic objectives
of Article 6 of this agreement.
Article 15
The terms of the present agreement shall not be
altered, amended or terminated without the con-
sent of the administering authority.
Article 16
The present agreement shall come into force
when approved by the Security Council of the
United Nations and by the Government of the
United States after due constitutional process.
Department of Slate Bulletin
THE UNITED NATIONS
Special Session of General Assembly Called
CABLE SENT BY SECRETARY-GENERAL TO MEMBER NATIONS
Trygve Lie, Secretary-General of the United
Nations, cabled on April 13 the 55 members of
the United Nations, calling a special session of
the General Assembly for Monday, April 28, at
General Assembly Hall at Flushing, to consider the
Palestine question.
The cables were sent following approval of the
special session by 29 countries, one more than the
required majority. Affirmative replies came from
Canada on April 12 and from the Philippine Ke-
public and Turkey on April 13. The text of the
cable follows:
"Have honour inform you that a majority of
Members have today concurred in the request of
United Kingdom to summon a special session of
General Assembly. In accordance with rules 3
and 8 of provisional rules of procedure of Gen-
eral Assembly I hereby notify you that special
session will open on Monday 28 April 1947 at
eleven a.m. in General Assembly Hall Flushing
Meadows New York City.
"Provisional agenda of special session follows :
"1. Opening of session by Chairman of Bel-
gian Delegation
"2. Election and report of credentials commit-
tee
"3. Election of President
"4. Organization of the session
"5. Adoption of agenda
"6. Constituting and instructing special com-
mittee to prepare for consideration of the ques-
tion of Palestine at second regular session.
"Trygve Lie
'''' Secretary-General''^
The countries which have replied up to April
13 are Australia, Brazil, Canada, China, Cuba,
Czechoslovakia, Denmark, Dominican Republic,
Ecuador, France, Greece, Haiti, Honduras, India,
Liberia, Luxembourg, Mexico, New Zealand, Nor-
way, Panama, Paraguay, Peru, Philippine Re-
public, Sweden, Turkey, Ukrainian Soviet So-
cialist Republic, Union of South Africa, Union
of Soviet Socialist Republics, United States. All
replies so far have been in favor of the pi'oposal
for a special General Assembly.
ITEMS REQUESTED FOR AGENDA
Text of letter from the United Kingdom Delega-
tion to the United Nations ^
2nd April, 19^7.
Sir:
I have received the following message from my
Government :
"His Majesty's Government in the United King-
dom request the Secretary-General of the United
Nations to place the question of Palestine on the
Agenda of the General Assembly at its next regu-
lar Annual Session. They will submit to the
Assembly an account of their administration of
the League of Nations Mandate and will ask the
Assembly to make recommendations, under
Article 10 of the Charter, concerning the future
government of Palestine.
' General Assembly doc. A/286, Apr. 3, 1947.
May 4, 1947
795
THE UNITED NATIONS
"In making this request, His Majesty's Govern-
ment draw the attention of the Secretary-General
to the desirability of an early settlement in Pales-
tine and to the risk that the General Assembly
might not be able to decide upon its recommenda-
tions at its next regular Annual Session unless
some preliminary study of the question had previ-
ously been made under the auspices of the United
Nations. They therefore request the Secretary-
General to summon, as soon as possible, a special
Session of the General Assembly for the purpose
of constituting and instructing a Special Commit-
tee to prepare for the consideration, at the regular
Session of the Assembly, of the question referred
to in the preceding paragraph."
I have the honour [etc.]
Alexander Cadogan
Dr. Victor Chi Tsai Hoo
Assistant Secretary-General of the United
Nations, Lake Success
Text of telegram sent on April £, 1947, hy the
Acting Secretary-General to all members of the
United Nations except the United Kingdom *
Have honor notify you that on 2 April United
Kingdom Government requested Secretary-Gen-
eral to place question of Palestine on agenda next
regular session of General Assembly. In accord-
ance with rule 4 provisional rules procedure
General Assembly have honor inform you that
United Kingdom Government further requested
Secretary-General in view of desirability of an
early settlement in Palestine to summon special
session General Assembly as soon as possible for
purpose of constituting and instructing a special
committee to prepare for the consideration of
above question at next regular session. Tlieref ore
have honor inquire whether your government con-
curs in summoning special session for this purpose
and to request you notify me of its decision. If
within 30 days majority of members concur, special
session will be convoked in accordance rules 3 and
8 and provisional agenda circulated in accordance
rule 11.
Victor Hoo
Acting Secretary-General
Text of letter from the Ambassador of Iraq in the
United States to the Secretary-General •
21 April 19^7.
Excellency :
I have the honor to inform you that I have been
instructed by my Government to request you, in
accordance with Kule 18 of the Provisional Rules
Note : The rules referred to are as follows ( General
Assembly doc. A/71/Rev. 1, Apr. 28, 1947) :
Rule 3 : Special sessions of the General Assembly shall
also be held within fifteen days of the receipt by the Sec-
retary-General of a request for such a session either from
the Security Council or from a majority of the Members
of the United Nations.
Rule 4 : Any Member of the United Nations may request
the Secretary-General to summon a special session. The
Secretary-General shall thereupon inform the other Mem-
bers of the United Nations of the request and inquire
whether they concur in it. If within thirty days of the
date of the communication a majority of the Members
concur in the request, a special session of the General
Assembly shall be summoned in accordance with the pro-
visions of Rule 3.
Rule 8 : The Secretary-General shall notify the Mem-
bers of the United Nations at least fourteen days in ad-
vance of the opening of a special session convoked at the
request of the Security Council, and at least ten days
in the case of a request by a majority of the Members.
Rule 11 ; The provisional Agenda for a regular session
shall be communicated to the Members of the United Na-
tions at least sixty days before the opening of the session.
The provisional Agenda of a special session, summoned
at the request of the Security Council, shall be communi-
cated at least fourteen days before the opening of the
session. The provisional Agenda of a special session, sum-
moned at tlie request of a majority of the Members, shall
be communicated at least ten days before the opening of
the session.
Rule 18: Any Member of the United Nations may, at
least four days before the date fixed for the opening of a
special session, request the inclusion of additional items
in the Agenda. Such Items shall be placed on a supple-
mentary list which shall be communicated to the Members
of the United Nations as soon as possible.
' General Assembly doc. A/295, Apr. 25, 1947.
"General Assembly doc. A/288, Apr. 23, 1947.
796
Department of Slate Bulletin
of Procedure for the General Assembly, to include
the following as an additional item in the Agenda
of the Special Session of the General Assembly
convening on April 28, 1947 :
The Termination of the Mandate over Pales-
tine and the Declaration of its Independence.
Please accept [etc.]
Axi Jawdat
The Ambassador
Text of telegram from Egyptian Amhassador in
the United States to the Secretary-General : *
Washington D.C.
April 21, 19Jf7
His Excellency Trygve Lie
Secretary-General, United Nations
Sir : I have the honour to advise that according
to instructions received from my Government and
in conformity of article 18 of the provisional rules
of procedure of the General Assembly the Royal
Egyptian Government requests to include the fol-
lowing additional item on the agenda of the forth-
coming extraordinary meeting of the United Na-
tions General Assembly which is to deal with the
question of Palestine on the 28th of April 1947.
The item reads as follows : The termination of the
mandate over Palestine and the declaration of its
independence. Accept Sir the assurances of my
highest consideration.
Mahmoud Hassan
Egyptian Ambassador
Text of telegram from the Syrian Minister in the
United States to the Secretary-General^
22 April 1947.
Tbtgve Lie :
I have the honor to inform you that I have been
instructed by my Government to request you, in
accordance with Rule 18 of the Provisional Rules
of Procedure of the General Assembly, to include
the following as additional item in the Agenda
of the Special Session of the General Assembly
May 4, 1947
741062 — 47 3
THE UNITED NATIONS
convening on April 28, 1947 : The termination of
the mandate over Palestine and the declaration
of its independence.
Please accept [etc.]
COSTI K. ZURAYK
Minister of Syria
Text of telegram from the Lebanese Minister in
the United States to the Secretary-General "
22 April 1947.
Trygve Lie:
Excellency I have the honor to state that I am
instructed by my Government to request in ac-
cordance with Rule 18 of the Provisional Rules
of Procedure for the procedure of the General
Assembly the inclusion of the following additional
item in the Agenda of the forthcoming Special
Session of the General Assembly scheduled to
open on April 28, 1947 : "The termination of the
mandate on and the granting of independence to
Palestine".
Accept [etc.]
Charles Malik
Minister of Lebanon
in the United States
Text of letter from, the Saudi-Ayabian Minister in
the United States to the Secretary-General '
April 22, 1947.
Excellenct :
I have been instructed by my Government to
request, in accordance with Rule 18 Provisional
Rules of Procedure of the General Assembly, that
the following item be put on the Agenda of the
Special Session which convenes on April 28th,
1947.
"The termination of the mandate over Pales-
tine and the declaration of its independence."
Accept [etc.]
Asad Ax-Faqlh
Minister
' General Assembly doc. A/287, Apr. 21, 1947.
' General Assembly doc. A/289, Apr. 23, 1947.
° General Assembly doc. A/290, Apr. 23, 1947.
' General Assembly doc. A/291, Apr. 23, 1947.
797
UNITED STATES DELEGATION
[Released to the press April 25]
The following is the list of the United States
Delegation to the special session of the General
Assembly of the United Nations on the Palestine
question which convenes at New York on April
28, 1947 :
United States Representative
Warren R. Austin
Alternate United States Representative
Herschel V. Johnson
Advisers
William Cargo, Division of Dependent Area Affairs, De-
partment of State
William Dawson, retired Foreign Service oflBcer
Wilder Foote,^ Director of Information, U.S. Delegation to
the United Nations
Loy Henderson, Director, Office of Near Eastern and Afri-
can Affairs, Department of State
Gordon Knox,' Adviser, U.S. Delegation to the United
Nations
Robert McClintock, Special Assistant to the Director, Office
of Special Political Affairs, Department of State
Charles Noyes,' Adviser, U.S. Delegation to the United
Nations
Hayden Raynor, Special Assistant to the Director, Office of
European Affairs, Department of State
John C. Ross,i Deputy to the U.S. Representative to the
United Nations
William Sanders, Associate Chief, Division of Interna-
tional Organization Affairs, Department of State
Henry Villard, Deputy Director, Office of Near Eastern
and African Affairs, Department of State
Fraser Wilkins, Division of Near Eastern Affairs, Depart-
ment of State
Public Liaison Offlcer
Chester Williams '
Special Assistant to the U.S. Representative
William Mills '
Secretary-Oeneral
Richard Winslow '
Deputy Secretary-General
Thomas Power '
Designating the United States Mission to the United Nations
and Providing for Its Direction and Administration ^
By virtue of and pursuant to the authority
vested in me by the United Nations Participation
Act of 1945 (59 Stat. 619) and as President of the
United States, and for the purpose of defining fur-
ther the functions of the Representative of the
United States at the seat of the United Nations
in connection with the participation of the United
States in the United Nations, it is hereby ordered
as follows :
1. The Representative at the seat of the United
Nations, the Deputy Representative to the Security
Coxmcil, Representatives in the Economic and So-
cial Council and its Commissions, the Ti'usteeship
Council, the Atomic Energy Commission, the Com-
mission for Conventional Armaments and the Mil-
itary StafE Committee, and representatives to
' Detailed from the permanent staff of the U.S. Repre-
sentative at the seat of the United Nations.
= Ex. Or. t)S44 (12 Federal Register 2765).
798
organs and agencies of the United Nations here-
after appointed or designated and included within
the United States Mission to the United Nations
herein provided for, together with their deputies,
staffs and offices, shall be known as the United
States Mission to the United Nations.
2. The Representative of the United States at
the seat of the United Nations shall be the Chief of
Mission in charge of the United States Mission
to the United Nations. The Chief of Mission shall
coordinate at the seat of the United Nations the
activities of the Mission in carrying out the in-
structions of the President transmitted either by
the Secretary of State or by other means of trans-
mission as directed by the President. Instruc-
tions to the Representatives of the Joint Chiefs of
Staff in the Military Staff Committee of the United
Nations shall be transmitted by the Joint Chiefs
of Staff. On request of the Chief of Mission, such
Department of State Bulletin
Eepresentatives shall, in addition to their respon-
sibilities under the Charter of the United Nations,
serve as advisers in the United States Mission to
the United Nations.
3. The Chief of Mission shall also be responsi-
ble for the administration of the Mission, includ-
ing personnel, budget, obligation and expenditure
of funds, and the central administrative services ;
provided that he shall not be responsible for the
internal administration of the personnel, budget,
and obligation and expenditure of funds of the
THE UNITED NATIONS
United States Representatives in the Military
Staff Committee. The Chief of Mission shall dis-
charge his responsibilities under this paragraph in
accordance with such rules and regulations as the
Secretary of State may from time to time prescribe.
4. This order shall be published in the Federal
Register.
Harry S. Truman
The White House
AfHl 28, 19If7
Summary Statement by the Secretary-General
MATTERS OF WHICH THE SECURITY COUNCIL IS SEIZED AND THE STAGE
REACHED IN THEIR CONSIDERATION'
9. Incidents in the Corfu Chmmel {consideration
of this item was completed this weeh)
At the one hundred and twenty-fifth meeting on
3 April, the Representative of the United King-
dom submitted a new draft resolution which was
adopted by the Council at the one hundred and
twenty-seventh meeting on 9 April 1947 by eight
votes in favour with two abstentions. The Resolu-
tion recommended that the United Kingdom and
Albanian Governments should immediately refer
the dispute to the International Court of Justice
in accordance with the provisions of the Statute
of the Court (document S/324).
The Council is therefore no longer seized of this
matter.
7. The Greek Question {See also document
S/279) "
The Greek Question was placed on the agenda of
the one hundred and twenty-third meeting on 2'8
March 1947 at the request of the Representative of
the United States to make a statement. The dis-
cussion continued at the one hundred and twenty-
sixth, twenty-eighth, twenty-ninth, thirtieth and
thirty-first meetings on 7, 10, 14 and 18 April with
Representatives of Greece, Yugoslavia, Albania
and Bulgaria participating. Draft resolutions
were introduced by the Representatives of the
United States (S/P.V./126, p. 47) and the Union
of Soviet Socialist Republics (S/P.V./131, p. 97).
The Representative of the United States accepted
amendments submitted by the Representative of
France (S/P.V./126, p. 72 and S/P.V./131, p. 56).
An amendment to the draft resolution of the
Representative of the Union of Soviet Socialist
Republics was submitted by the Representative of
Poland (S/P.V./130, p. 69).
The Council adopted the amended United
States draft resolution, resolving that pending a
new decision of the Security Council, the com-
mission established by the resolution of the Coun-
cil of 19 October 1946, shall maintain in the area
concerned a subsidiary group, composed of a
representative of each of the members of the com-
mission, to continue to fulfil such functions as the
commission may prescribe, in accordance with its
terms of reference (document S/330).
The Union of Soviet Socialist Republics' resolu-
tion and Polish amendment were not carried.
8. The General Regulation and Reduction of
Armaments and Information on Armed
Forces {see also docwnent S/279)
The Commission for Conventional Armaments
was convened on 24 March 1947 and commenced
its task under its terms of reference.
' Security Council doc. S/327, Apr. 11, 1947. Tliis sum-
mary supplements the one printed in the Bulletin of Apr.
13, 1947, p. 657. The omitted parts correspond substan-
tially to the material formerly printed.
' Items 7 and 8 are printed from Security Council doc.
S/331, Apr. 18, 1947, and supplement the material
printed in the Bulletin of Apr. 13.
May 4, 1947
799
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings '
In Session as of April 27, 1947
Far Eastern Commission . . .
United Nations:
Security Council ,
Military Staff Committee . . ,
Commission on Atomic Energy
Commission on Conventional Armaments
Trusteeship Council
Meeting of Experts on Passport and Frontier Formalities
Trusteeship Council Questionnaire Committee
German External Property Negotiations (Safehaven):
With Portugal
With Spain
Inter-Allied Trade Board for Japan
International Conference on Trade and Employment: Second
Meeting of Preparatory Comnxittee.
ICAO (International Civil Aviation Organization) European-
Mediterranean Special Air Traffic Control Committee.
Fifth International Hydrographic Conference
ILO (International Labor Organization) Industrial Committee on
Coal Mining.
American International Institute for the Protection of Childhood:
Meeting of the International Council.
Scheduled for April-June 1947
FAO (Food and Agriculture Organization):
International Timber Conference
Rice Study Group ,
Executive Committee
International Meeting of Marine Radio Aids to Navigation
United Nations:
General Assembly: Special Session
Economic Commission for Europe;
First Session
Transport Session
Second Session
Washington .
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Geneva . . .
Lake Success
Lisbon . . .
Madrid . . .
Washington .
Geneva
Paris .
Monaco
Geneva
Montevideo
Marianske-Lazne, Czechoslo-
vakia.
Trivandrum, Travancore,
India.
Washington
New York and New London.
Flushing Meadows
Geneva
Geneva
Geneva
' Prepared in the Division of International Conferences, Department of State.
" Tentative.
1946
Feb.
26
Mar.
25
Mar
25
June
14
1947
Mar.
24
Mar.
26-Apr. 28
Apr.
14
Apr.
15-23
1946
Sept
3
Nov.
12
Oct.
24
1947
Apr. 10
Apr. 15
Apr. 22
Apr. 22-May 3
Apr. 25-28
Apr. 28- May 10
May 15
June 2
Apr. 28-May 10
Apr. 28
May 2
May 12 «
June 23 '
800
Department of State Bulletin
Calendar oj Meetings — Continued
United Nations — Continued
Committee on Progressive Development and Codification of
International Law.
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Preparatory Conference of Experts on Telecommunications . .
ECOSOC (Economic and Social Council):
Fiscal Commission
Subcommission on Freedom of Information and of the Press .
Subcommission on Statistical Sampling
Economic and Employment Commission
Human Rights Drafting Committee
ICAO (International Civil Aviation Organization):
Air Transport Committee
Interim Council
First Meeting of General Assembly
South American Regional Air Navigation Meeting
IRO (International Refugee Organization): Second Part of First
Session of Preparatory Commission.
ILO (International Labor Organization):
Industrial Committee on Inland Transport
102d Session of Governing Body
30th Session of International Labor Conference
Congress of the Universal Postal Union
Central Rhine Commission
International Technical Committee of Aerial Legal Experts: 16th
Session.
German External Property Negotiations With Turkey (Safe-
haven) .
International Radio Conference
PMCC (Provisional Maritime Consultative Council)
lEFC (International Emergency Food Council) : Fourth Meeting .
Eleventh International Congress of Military Medicine and Phar-
macy.
ECITO (European Central Inland Transport Organization) :
Seventh Session of the Council (Second Part) .
International Cotton Advisory Committee
Caribbean Commission: Fourth Meeting
lARA (Inter- Allied Reparation Agency): Meeting on Conflicting
Custodial Claims.
Lake Success
Shanghai .
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Montreal .
Montreal .
Montreal .
Lima . . .
Lausanne .
Geneva . .
Geneva . .
Geneva . .
Paris . . .
Strasbourg .
Montreal .
Ankara . .
Atlantic City
Paris . . .
Washington
Basel . . .
Paris . . .
Washington
Jamaica . .
Brussels . .
1947
May 12 2
June 5 2
June 23 2
June 16 2
May 19 2
May 19 2
June 2 2
June 2 2
June 9 2
Apr. 28
Apr. 29
May 6
June 17
May 1
May 6
June 13
June 19
May 6
May 7-8
May 10
May 12 ■'
May 15
May 16
May 26-27
June 2-7
June 3
June 9
June 23-30
June
2 Tentative.
May 4, 1947
801
Toward Formulating a New Japanese Constitution
FEC Interest in Japanese Constitution'
The Commission has received from the United
States Government the text of a draft constitution
which appears to have been drawn up in compli-
ance with an Imperial rescript, tlie text of which
has also been supplied by the United States Gov-
ernment, along with the Supreme Commander's
comments on that text.
The opening sentences of this draft indicate to
the Commission that it will be presented to the first
session of the Japanese Diet which will be chosen
at the forthcoming general elections. The Com-
mission therefore assiunes that this and possibly
other texts will be debated in the Diet and that
amenchnents may be offered and perhaps other pro-
posals introduced.
The Commission, therefore, desires that the Su-
preme Commander keep it informed of the progress
and development of this and other drafts that may
be considered by the Diet.
For mindful of its responsibilities under its
Terms of Reference for the formulation of policy
in regard to the implementation of the surrender
terms, and of the important bearing which this or
any other proposed changes in the constitutional
structure of Japan may have upon the decisions in
carrying out that responsibility, the Commission
desires that the Supreme Commander for the Al-
lies make clear to the Japanese Government that
the Far Eastern Commission must be given an op-
portunity to pass upon the final draft of the con-
stitution to determine whether it is consistent with
the Potsdam Declaration and any other control-
ling document before it is finally approved by the
Diet and becomes legally valid.
The Commission believes that in this way hasty
action by the Japanese Diet will be prevented and
' Policy decision approved by tlie Par Eastern Commis-
sion on Mar. 20, 1946, and released to tlie press on Apr. 18,
1947. A directive based upon this decision was forwarded
to the Supreme Commander for the Allied Powers for
implementation.
'Policy decision approved by the Far Eastern Commis-
sion on July 2, 1946, and released to the press on Apr.
18, 1947. A directive based upon this decision was for-
warded to the Supreme Commander for the Allied Powers
for implementation.
tune given for all elements inside and outside the
Diet to consider this very important question and
bring to that consideration all available thought
produced by the freely expressed will of the Jap-
anese people.
In this connection the Commission notes the en-
couragement given to the Japanese people in the
Supreme Commander's announcement that this
draft of a proposed constitution has his personal
approval. It is somewhat apprehensive that this
approval may be mismiderstood by the Japanese
public and taken to mean that tliis particular draft
has the approval of the Powers represented on tliis
Commission.
As such is not necessarily the case and as the
Commission does not want to take any action in re-
gard to this or any other draft constitution that
might prejudice Japanese public opinion for or
against any proposal of this nature, it considers
that the Supreme Commander for the Allied Pow-
ers should in some appropriate manner make it
known to the Japanese people that while this draft
of a proposed constitution is a document of obvious
merit and is available now for consideration and
study, the fact that it is a draft prepared by the
Government does not preclude favorable consider-
ation of other proposals or drafts which may be
submitted to the Diet for study and comparison.
The Commission requests that the United States
Government inform the Supreme Commander of
its views as expressed above, and since the consti-
tutional issue is one that is likely to influence the
votes of the electors, it do so with a minimum of
delay.
Basic Principles for a New Japanese Constitution^
1. The Japanese Constitution should recognize
It
802
that sovereign power resides in the people,
should be so framed as to provide for :
a. A representative govermnent based upon
universal adult suffrage consisting of :
(1) An executive, deriving its authority from
and responsible to either the electorate
or a fully representative legislative body ;
Department of State Bulletin
(2) A legislature, fully representative of the
electorate, which should have full legis-
lative powers including full control over
raising of public revenue and expenditure
of public funds;
b. The establishment of an independent ju-
diciary ;
c. The guarantee of fundamental civil rights
to all Japanese and to all persons within Japanese
jurisdiction. All Japanese shall enjoy equal
rights before the law and no special privileges of
particular social groups such as the nobility shall
be allowed ;
d. The popular election of heads of institutions
of local government such as prefectures, cities,
towns, and villages;
e. The popular election of local assemblies such
as pref ectural, city, town, and village ;
/. The adoption of constitutional amendments
in a manner which wiU give effect to the freely
expressed will of the Jai^anese people.
2. Though the ultimate form of government in
Japan is to be established by the freely expressed
will of the Japanese people, the retention of the
Emperor Institution in its present constitutional
form is not considered consistent with the fore-
going general objectives. Consequently, the Jap-
anese should be encouraged to abolish the Emperor
Institution or to reform it along more democratic
lines.
3. If the Japanese people decide that the Em-
peror Institution is not to be retained, constitu-
tional safeguards against the institution will obvi-
ously not be required, but the constitution will have
to conform to the requirements of paragrapli 1
and shall also provide:
a. That the legislation shall have sole authority
over financial measures and any other organ shall
possess only a temporary veto power over other
legislative measures ;
b. That the prime minister and the ministers
of state, all of whom shall be civilians and of
whom a majority, including the prime minister,
shall be selected from the Diet, shall form a Cabi-
net collectively responsible to the legislature. If a
system of government is adopted whereby the chief
executive is elected to tliat office by the people, the
provision that a majority of the Cabinet members
May 4, 1947
ACTIVniBS AND DEVELOPMENTS
shall be chosen from the legislature should not
necessarily apply;
c. That the legislative organ shall have the
power to meet at will.
4. If the Japanese decide to retain the Institu-
tion of the Emperor, the following safeguards in
addition to those enumerated in 1 and 3 above will
be necessary :
a. When a Cabinet loses the confidence of the
legislature it shall either resign or appeal to the
electorate ;
b. The Emperor shall have no powers other
than those to be conferred on him by the new
Constitution. He shall act in all cases in accord-
ance with the advice of the Cabinet ;
c. The Emperor shall be deprived of all military
authority such as that provided in articles XI, XII,
XIII, and XIV of chapter 1 of the Constitution
of 1889;
d. All property of the Imperial household shall
be declared property of the State. The expenses
of the Imperial household shall be appropriated
by the legislature.
5. The retention of the Privy Council and the
House of Peers in their present form and with
their present powers is not considered consistent
with the foregoing general objectives.
Further Policies Relating to New
Japanese Constitution '
The Far Eastern Commission reaffirms its previ-
ous decision, taken in FEC-031/19, Basic Prin-
ciples for a New Japanese Constitution, that all
cabinet ministers should be civilians, and further
decides as a matter of policy that the House of
Councillors should not have any predominance
over the House of Kepi'esentatives. The Com-
mission considers essential its continuing right to
scrutinize the implementing legislation very care-
fully to insure that such predominance is not
established.
' Policy decision approved by the Far Eastern Commis-
sion on Sept. 25, 1946, and released to the press on Apr. 18,
1947. A directive based upon this decision was forwarded
to the Supreme Commander for the Allied Powers for
implementation.
803
ACTIVITIBS AND DEVELOPMENTS
Review of Japanese Constitution ^
a. The terms of the policy decision contained
in FEC-031/4: (Provisions for the Review of a
New Japanese Constitution, approved on October
17, 1946, and forwarded to the Supreme Com-
mander for the Allied Powers on October 28, 1946,
Serial #62) should be formally communicated to
the Government of Japan.^
b. The Supreme Commander for the Allied
Powers should be informed that the time and man-
ner of public announcement of this policy decision
are still being considered by the Far Eastern
Conamission.
Apprehension, Trial, and Punishment
of War Criminals in the Far East ^
1. The term "war crimes" as used herein, in-
cludes :
a. Planning, preparation, initiation or waging
of a war of aggression or a war in violation of
international treaties, agi-eements and assurances,
or participation in a common plan or conspiracy
for the accomplishment of any of the foregoing.
b. Violations of the laws or customs of war.
Such violations shall include but not be limited to
murder, ill-treatment or deportation to slave labor
or for any other purpose of civilian population of,
or in, occupied territory, murder or ill-treatment
of prisoners of war or persons on the seas, or else-
where improper treatment of hostages, plunder
of public or private property, wanton destruction
of cities, towns or villages or devastation not justi-
fied by military necessity.
c. Murder, extermination, enslavement, depor-
tation and other inhumane acts committed against
any civilian population, before or during the war
or prosecution on political, racial or religious
grounds in execution of or in connection with any
'Policy decision approved by the Far Eastern Com-
mission on Dee. 12, 1946, and released to tlie press on
Apr. 18, 1947. A directive ba.sed upon this decision was
forwarded to the Supreme Commander for the Allied
Powers for implementation.
' BuxLETiN of Apr. 6, 1947, p. 612.
" Policy decision approved by the Far Eastern Commis-
sion on Apr. 3, 1946, and released to tlie press on Apr. 18,
1947. A directive based upon this decision was forwarded
to the Supreme Commander for the Allied Powers for
implementation.
«04
crime defined herein whether or not in violation
of the domestic law of the country where per-
petrated.
2. The offense need not have been committed
after a particular date to render the responsible
party or parties subject to arrest but, in general,
should have been committed since, or in the period
immediately preceding the Mukden incident of
September 18, 1931. The preponderance of cases
may be expected to relate to the years since the
Lukouchiao incident of July 7, 1937.
3. All practicable measures should be taken to
identify, investigate, apprehend, and detain all
persons suspected of having committed war
crimes, as defined in paragraph 1 above, and all
persons whom any one of tlie United Nations or
Italy charges with such crimes.
4. Suspected war criminals should be held in
close confinement, without access to the press or
other media of public information, and without
distinction as to rank or position, as befits ordinary
criminals.
5. The Supreme Commander for the Allied
Powers should have :
( a ) Power to appoint special international mili-
tary courts (which term should be held to include
tribunals of any type) composed of military, naval,
or air force officers or civilians representing any
two or more of the states members of the Far East-
ern Commission for the trial under any applicable
law, domestic or international, including the laws
and customs of war, of the Far Eastern war crimi-
nals indicted by the Governments of these states,
and
(b) Power to prescribe, subject to consultation
with the representatives of those governments,
rules of procedure for such courts, the Supreme
Commander shall appoint to each international
court a judge nominated by each state represented
on the Far Eastern Commission which signifies its
desire to participate in the work of such court. In
the appointment of the international courts and in
all trials before them, the international character
of the courts and of the authority by which they
were appointed and under which they act should
be properly emphasized and recognized, particu-
larly in dealings with the Japanese people. The
Supreme Commander for the Allied Powers should
have : ( 1 ) the responsibility for carrying out the
judgments of any international courts appointed
Department of State BvUetin
by him, and (2) the power to approve, reduce or
otherwise alter any sentences imposed by any such
courts, but not to increase the severity thereof,
after consuUation with the Allied Council for
Japan and the Representatives in Japan of the
other Powers, members of the Far Eastern Com-
mission.
6. The Supreme Commander for the Allied
Powers (a) should promptly establish an agency,
acting under his command to investigate reports of
war crimes, to collect and analyze evidence, to
arrange for the apprehension and prompt trial of
suspects, to prepare, supervise and conduct the
prosecution of individuals and organizations be-
fore international military courts or tribunals, and
to recommend to the Supreme Commander which
individuals and organizations should be prose-
cuted, before what courts they should be tried and
what persons should be secured as witnesses, and
(b) should provide, after discussion with the local
representatives of the nations involved, and in a
manner consistent with efficient administration,
for equitable inclusion in the membership of such
agency of suitable representatives of the states
members of the Far Eastern Commission. This
agency should advise the Supreme Commander
and other military commanders for the Allies on
matters relating to war criminals. This agency
should attach importance to the investigation of
the evidence that offenses of the type described in
paragraph 1 a above have been committed, should
collect and analyze the evidence of such offenses
and should recommend to the Supreme Com-
mander a plan as indicated in paragraph 5 above
for the appointment of an international court for
the trial of such offenses and the charges to be pre-
ferred. This agency should also maintain a cen-
tral record and information office of Japanese war
criminals and war crimes, the records and files of
which should be available to any interested United
Nation.
7. The militai-y conunander of any nation (in-
cluding the United States) participating in the
occupation of areas previously dominated by Japan
may establish special national military courts to
deal with war criminals not held or requested by
the Supreme Commander for trial by an inter-
national military court or tribunal of the types
referred to in paragraph G above. Such courts
should be separate from courts which may be set
lAoy 4, 1947
ACTIVITIBS AND DEVELOPMENT
up to deal with current offenses against the occu-
pation or infractions of military discipline.
8. Military commanders of forces of occupation
in the Far East should promptly comply with a
request by the government of any one of the United
Nations or Italy for the delivery to it of any person
who is stated in such request to be charged with a
war crime subject to the following exceptions:
(1) Persons who have held high political, civil
or military positions in the Japanese Empire or in
one of its allies, co-belligerents or satellites, should
not be delivered, pending decision whether such
person should be tried before an international mili-
tary court or tribunal. Suspected war criminals
desired for trial before such a court or tribunal
or persons desired as witnesses at such trials will
not be turned over to the nation requesting them
so long as their presence is desired in connection
with such trials.
(2) Wliere persons are requested by more than
one of the Governments above mentioned for trial
of a war crime, the military commanders concerned
should make their determinations based on all the
circumstances, including the relative seriousness-
of the respective charges against such a person and
the national interests involved, and should deliver
the requested person to a particular United Nation
or Italy accordingly.
9. Compliance with any request for the delivery
of a suspected war criminal should not be delayed
on the gi-ound that other requests for the same
person are anticipated.
10. Delivery of a suspected war criminal to a
requesting government should be subject to the
condition that if such person is not brought to trial,
tried and convicted within six months from the
date he is so delivered, he will be returned to the
authority who made delivery if he has been re-
quested for trial by any of the other United
Nations or Italy.
11. Military commanders should take under
their control, pending subsequent decisions as ta
its eventual disposition, property, real and per-
sonal, found in areas of their respective jurisdic-
tion and owned or controlled by persons taken into
custody pursuant to the provisions of paragraph 3
above.
12. Such measures as are deemed necessary
should be taken to insure that witnesses to war
crimes will be available when required.
805
ACTIVITieS AND DEVSLOPMBNTS
13. The execution of death sentences should be
deferred if there is a reason to believe that the
testimony of those convicted would be of value
in the trial of other war criminals.
14. Any national of any United Nation who
may be requested, or who there is reason to believe
may be desired, by his government as a renegade
or quisling, should be arrested. Such persons
should normally be turned over as soon as prac-
ticable to their government.
15. Military commanders having custody of
alleged offenders requested under paragraphs 8 and
14 above, if in doubt as to whether such persons
should be turned over to the demanding nation
for trial, should consult their government and,
in appropriate cases leave the matter to be dealt
with through diplomatic channels. Within the
main islands of Japan, the Supreme Commander
for the Allied Powers will have custody of such
alleged offenders and should consult the Joint
Chiefs of Staff in cases of doubt.
Determination of Peaceful
Needs of Japan ^
1. The Far Eastern Commission determines as
a matter of policy that the peaceful needs of the
Japanese people should be defined as being sub-
stantially the standard of living prevailing in
Japan during the period of 1930-1934.
2. Data about the standard of living during
1930-1934 should for present purposes be used to
make an estimate of Japan's peaceful needs in
1950. In estimating the nature and size of the
industrial structure within that level, account
should be taken of such factors as technological
developments, the balance of payments, and em-
ployment.
3. Acceptance of the above policy should not be
interpreted to mean acceptance in advance of a
specific level for any particular industry.
' Policy decision approved by the Far Eastern Commis-
sion on Jan. 23, 1947, and released to tlie press on Apr. 18.
A directive based upon this decision was forwarded to the
Supreme Commander for the Allied Powers for imple-
mentation.
806
U.S. DELEGATION TO ILO INDUSTRIAL
COMMITTEE ON COAL MINING
[Released to the press April 25]
The President has approved the composition of
the United States Delegation to the second meet-
ing of the Industrial Committee on Coal Mining
of the International Labor Organization, as sub-
mitted by the Secretary of State upon the recom-
mendation of the Secretary of Labor. The meet-
ing will commence on April 24 at Geneva, Swit-
zerland, and will continue for 10 days.
Tlie United States Delegation is a tripartite
group of six delegates representing equally, in
accordance with ILO constitutional provisions,
government, management, and labor. In addition,
two Government advisers will participate. The
Delegation is listed as follows :
Representing the Oovernment of the United States:
Delegates
Harry Weiss, Director, Ek;onomics Branch, Wage and
Hour and Public Contracts Divisions, Department
of Labor
Louis C. McCabe, Chief of the Coal Division of the
Bureau of Mines, Department of the Interior
Advisers
Witt Bowden, Economist, Labor Economics Staff, Bureau
of Labor Statistics, Department of Labor
Paul R. Porter, Acting Chief, Mission for Economic
Affairs, London
Representing the Employers of the United States
Robert P. Koenig, President, Ayrshire Colleries Corpo-
ration, Indianapolis, Indiana
H. J. Connolly, President, Pennsylvania Coal Company,
Scranton, Pennsylvania
The following members originally scheduled to
represent the workers of the United States have
been detained by Union business :
Thomas Kennedy, Secretary-Treasurer, United Mine
Workers of America, Washington, D. C.
John T. Jones, President, District 16, United Mine Work-
ers of America, Washington, D. C.
This will be the second session of the Coal Min-
ing Committee, the first having been held in De-
cember 1945 at London. The meeting stems from
the policy inaugurated 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 indi-
vidual industries, and thus implementing the
previously evolved general principles governing
Department of State Bulletin
ACTIVITIES AND DEVELOPMENTS
labor standards and social policy on an individual
industry basis.
The 12 major coal-producing countries that
comprise the Committee are Australia, Belgium,
Canada, Czechoslovakia, France, India, the
Netherlands, Poland, the Union of South Africa,
Turkey, the United Kingdom, and the United
States.
The agenda for the second session will include a
report on the progress made by the member coun-
tries since the first meeting. The mineworkers'
charter, which was drafted at the first session, will
be scrutinized in the light of subsequent develop-
ments, particularly with respect to mine-safety
provisions. Attention will also be focused upon
the utilization of the economic, human, and tech-
nical resources of the coal mining industry in
view of the critical need for increased production
of fuel in Europe at this time.
In accordance with the terms of the agreement
between the International Labor Organization and
the United Nations, representatives of interested
agencies of the United Nations have been invited
to attend the meeting.
U. S. DELEGATION TO IMMRAN
[Released to the press April 24]
The Acting Secretary of State announced on
April 24 that the President has approved the com-
position of the American Delegation to the Inter-
national Meeting on Marine Radio Aids to
Navigation (IMMRAN), which is scheduled to
be held at New York, N. Y., and New London,
Conn., beginning on April 28, 1947, and continu-
ing for two weeks. The nominations were sub-
mitted by Acting Secretary Acheson upon the rec-
ommendation of the interested Government agen-
cies, the National Federation of American Ship-
ping, and the Radio Manufacturers Association.
The American Delegation is as follows :
Chairman
John S. Cross, Assistant Chief, Telecommunications Di-
vision, Department of State
Vice Chairman
Edward M. Webster, Commissioner, Federal Communica-
tions Commission
Delegates
Capt. H. C. Jloore, United States Coast Guard
Commodore Gordon McLintock, United States Maritime
Commission
I,t. Conidr. Irvin L. McNally, United States Navy
Daniel J. McKenzie, Master Mariner, Transportation
Corps, War Department
Lt. Comdr. Clarence A. Burmister, Coast and Geodetic
Survey, Department of Commerce
P. De Forrest McKeel, Civil Aeronautics Administration,
Department of Commerce
Edward C. Phillips, National Federation of American
Shipping, Inc., Washington
W. R. G. Baker, Radio Manufacturers Association,
Washington
The purpose of the meeting is to provide infor-
mation to foreign countries regarding United
States policy in the field of marine radio aids to
navigation and to demonstrate the progress which
the United States has made in this field. The ses-
sions in New York will consist of lectures and dis-
cussions, and exhibits by manufacturers of radio
and electronic equipment, including radar and
loran. During the second week the headquarters
of the meeting will be at the United States Coast
Guard Academy in New London, Conn., where
there will be further discussions and demonstra-
tions at sea of equipment under operating condi-
tions. Vessels for the demonstrations on ship-
board have been made available by the United
States Maritime Commission, the United States
Coast Guard, and the United States Coast and
Geodetic Survey.
It is expected that the meeting will inform the
delegates regarding the adoption of new radio aids
to navigation by this Government and the availa-
bility, type, and quality of marine radio-aid
equipment produced by United Statas manufac-
turers. Should it appear that fruitful conclusions
and resolutions leading to world standardization
of marine radio aids can be evolved during the
progress of the meeting, such conclusions and reso-
lutions will be recorded for future reference and
utilization when the nations of the world meet to
consider standardization of equipment in this field.
The Honorary Chairman of the meeting will be
Garrison Norton, Assistant Secretary of State.
Chairman of the meeting will be William L.
Everitt of the University of Illinois. John S.
Cross of the Department of State will serve as
Executive Secretary and Lt. Comdr. L. E. Brumier
of the United States Coast Guard as Program
Coordinator. Henry F. Nichol and Reginald T.
Johnson, both of the Department of State, will
serve respectively as the Executive Officer and the
Administrative Officer of the meeting.
fAay 4, 1947
807
ACTIVITIES AND DEVELOPMENTS
The congressional advisers who are expected to
attend are: Fred Bradley of Michigan; Alvin F.
Weichel of Ohio; T. Millet Hand of New Jersey;
Henry J. Latham of New York; David M. Potts
of New York; Willis W. Bradley of California;
Thor C. Tollefson of Washington ; Horace Seely-
Brown of Connecticut; John C. Brophy of Wis-
consin; Robert Nodar, Jr., of New York; Herbert
C. Bonner of North Carolina ; Henry M. Jackson
of Washington ; Eugene J. Keogh of New York ;
Cecil R. King of California; Emory H. Price of
Florida; and Leo F. Rayfiel of New York. Ac-
companying them will be Marvin Coles, Chief
Counsel, and Guy H. La Bounty, Chief Investi-
gator, both of the Merchant Marine and Fisheries
Committee, House of Representatives.
Attached to the Delegation will be approxi-
mately 15 industi-y advisers and 20 advisers from
United States Government agencies. In addition,
speakers who are experts in the field of radio and
radio marine aids to navigation will address the
meeting.
To date 26 countries have accepted the invitation
to IMMRAN. The United Kingdom Delegation
will be headed by Sir Watson-Watt, well-known
scientist in the field of electronics.
U.S. DELEGATION TO FIRST ASSEMBLY OF ICAO
[Released to the press April 231
The President announced on April 23 the com-
position of the United States Delegation to the fii'st
assembly of the International Civil Aviation Or-
ganization, scheduled to convene in Montreal,
Canada, May 6, 1947.
The Delegation will be headed by Garrison
Norton, Assistant Secretary of State and chainnan
of the Air Coordinating Committee. William A.
M. Burden, Assistant Secretary of Commerce and
vice chairman of the Committee, will be alternate
chairman. Other delegates designated by the
President are : James M. Landis, chairman of the
Civil Aeronautics Board and co-chairman of the
Committee; Maj. Gen. Laurence S. Kuter, U.S.
Representative to the ICAO Council; Harllee
Branch, member of the Civil Aeronautics Board ;
L. Welch Pogue, president of National Aeronautic
Association and member of the Industry Advisory
Panel of the Air Coordinating Committee; and
Lt. Comdr. Paul A. Smith, U.S. Representative to
the Air Navigation Committee and an alternate to
General Kuter on the ICAO Coimcil.
808
Invitations have been extended to both Houses
of Congress to send congressional advisers as part
of the Delegation.
Designated as consultants to the Delegation
were: W. Stuart Symington, Assistant Secretary
of War for Air ; John N. Brown, Assistant Secre-
tary of Navy for Air; Robert S. Burgess, Deputy
Second Assistant Postmaster General; Gerald
Brophy, former U.S. Representative to PICAO.
The President named the following as alternate
delegates: Russell B. Adams, Director, Economic
Bureau, Civil Aeronautics Board; J. Paul Bar-
ringer, Assistant Chief, Aviation Division, De-
jjartment of State; Paul T. David, U.S. Repre-
sentative on Air Transport Committee and an
alternate to General Kuter on ICAO Council;
Livingston T. Merchant, Chief, Aviation Division,
Department of State; Emery Nunneley, General
Counsel, Civil Aeronautics Board ; Carl Schwartz,
Assistant Chief, Estimates Division, Bureau of the
Budget ; Charles I. Stanton, Deputy Administra-
tor, Civil Aeronautics Administration, Depart-
ment of Commerce.
Included on the Delegation as advisers are the
following Government and industiy aviation ex-
perts : Col. W. G. Bryte, Cliief , Civil Air Division
AC/AS5, War Department; G. N. Calkins, At-
torney Adviser, General Counsel, Civil Aeronautics
Board; Enar B. Olson, Budget Analyst, Civil
Aeronautics Administration, Department of Com-
merce; Glen Gilbert, Chief, Technical Mission,
Civil Aeronautics Administration, Department of
Commerce ; Frank Hefner, Budget Examiner, Bu-
reau of the Budget; Robert Hoyt, Coordinator of
International Relations, Civil Aeronautics Board ;
Stephen Latchford, Aviation Adviser, Aviation
Division, Department of State ; Comdr. E. S. Lee,
Jr., Civil Aviation Section, Naval Operations,
Navy Department; Robert J. G. McClurkin, As-
sistant Director, Economic Bureau, Civil Aero-
nautics Board; Walker Percy, CAA-PICAO Co-
ordinator, Department of Commerce; David W.
Wainhouse, Assistant Chief, Division of Interna-
tional Organization Affairs, Department of
State; Richard K. Waldo, Special Assistant on
ICAO Matters, Aviation Division, Department of
State ; John Dickerman, Air Line Pilots Associa-
tion ; Donald W. Nyrop, Air Transport Associa-
tion; Stuart Tipton, Air Transport Association;
W. K. Ebel, vice president, Glenn L. Martin Com-
pany, and member of Aircraft Industries Associa-
Department of Sfafe Bulletin
tion; Hall L. Hibbard, vice president, Locklieed
Corporation, and member of Aircraft Industries
Association. Representatives of United States
flag airlines engaged in international air commerce
have been invited to attend the assembly session
as observers attached to the United States Dele-
gation.
United States positions on specific agenda items
are in the process of preparation within the
framework of the Air Coordinating Commit-
tee, providing an opportunity for full and com-
plete industry participation in the development of
United States positions. The provisional agenda
for the Assembly has been in the hands of the Air
Coordinating Committee since March 6, 1947.
ACTIVITIES AND DEVEIOPMENTS
The assembly at Montreal will be of particular
importance this year in as much as this will be the
first assembly of the permanent organization. The
convention on international civil aviation, drafted
at the Chicago aviation conference in the winter
of 1944, under which the permanent organization
was established, came into force on April 4, 1947,
following receipt of the necessary number of ratifi-
cations from member governments.
Among the items to be considered at the assem-
bly are the organization, structure, and duties of
the permanent international body, the relationship
of the organization to the United Nations, the fi-
nancing of ground facilities on an international
basis and a possible multilateral air-transport con-
vention.
The Twelfth Pan American Sanitary Conference: Regional
Health Programs and World Health Organization
The Twelfth Pan American Sanitary Confer-
ence met in Caracas, Venezuela, from January 12
to 24, 1947. It was composed of delegates from 20
of the 21 American republics,^ together with
observers ^ from Canada and the British, Dutch,
and French territorial possessions in the Western
Hemisphere, and from the World Health Organ-
ization, the Rockefeller Foundation, the Institute
of Inter-American Affairs, and Pan American
Airways.
The agenda of the Conference included a wide
range of health problems which may be grouped
under three major categories: (1) those concern-
ing international cooperation and organization in
public health; (2) those relating to national poli-
cies and organization in public health; and (3)
those regarding the prevention and eradication of
major diseases. Although the work of the Con-
ference in the last two fields was of vital signifi-
cance since it affects the health of all the peoples of
the Western Hemisphere, the Conference decisions
in the field of international public-health organ-
ization have aroused such wide-spread interest
that they will be given primary attention in the
present article.
The most controversial issue facing the Confer-
ence was that of the relationship between the Pan
American Sanitary Bureau and the World Health
Organization. The constitution of the World
Health Organization, as drawn up and signed by
May 4, 1947
the representatives of 61 nations at the Interna-
tional Health Conference in New York City on
July 22, 1946, provides in chapter XI for the
structure of regional offices and committees of the
World Health Organization and in article 54
states that :
"The Pan American sanitary organization rep-
resented by the Pan American Sanitary Bureau
and the Pan American Sanitary Conferences, and
all other inter-governmental regional health or-
ganizations in existence prior to the date of sig-
nature of this Constitution, shall in due course be
integrated with the Organization. This integra-
tion shall be effected as soon as practicable through
common action based on mutual consent of the
competent authorities expressed through the or-
ganizations concerned."
A subcommittee of representatives of four
American republics (Brazil, Mexico, United
States, and Venezuela) was appointed by the In-
' The Dominican Republic received an invitation from
the Venezuelan Government, transmitted through the Pan
American Sanitary Bureau, but declined to send
representatives.
' It was decided by the Conference that representatives
of states and territories not members of the Pan American
Sanitary Bureau would have full right of participation in
the discussions and worl£ of the Conference, but without
the right to vote.
809
ACTIVITieS AND DBVEIOPMENTS
terim Commission of the World Health Organiza-
tion to negotiate with the Pan American sanitary
organization in order to implement this article.
This subcommittee prepared in the fall of 1946 a
draft agreement between the two organizations.
The Directing Council of the Pan American Sani-
tary Bureau met in early October and approved a
document called the '"Declaration of Habana"
which urged that the American republics in ratify-
ing the constitution of the World Health Organi-
zation seek assistance to insure that the complete
organizational, financial, administrative, and pol-
icy independence of the Bureau would be preserved
in any agreement with the World Health Organi-
zation.
Four principal issues faced the commission of
the Conference which dealt with this problem:
(a) the general nature and form of action which
the Conference should take; {h) the policy to be
recommended as to approval of the constitution
of the World Health Organization; (c) whether,
after integration, the Pan American sanitary or-
ganization would continue to carry on activities
apart from those as regional agency of the World
Health Organization ; and (d) the extent to which
the Pan American sanitary organization would be
required to conform to the World Health Organi-
zation constitution and policies, both in serving as
its regional organization and in any separate
activities.
1. As to the nature of the action to be taken
by the Conference, there was an initial difference
of opinion as to whether the Conference should
seek to work out the terms of an agreement with
the World Health Organization or should confine
itself to a brief statement of general principles to
govern the relations.
It was therefore agreed to adopt a generally
worded resolution and to place the more detailed
provisions in an annex as the guiding basis for the
formulation of a specific agreement with the World
Healtli Organization. In this resolution the Con-
ference authorizes the Directing Council of the
Bureau to negotiate the agreement within the
framework of the principles set forth in the annex
and specifically delegates to the Council power to
approve modifications therein if this proves de-
sirable. A motion to limit this power to accept-
ance only of proposals falling witliin the context
of the points in the annex was defeated in the full
conmiission (receiving only three votes) when the
810
desirability was jwinted out of giving the Council
certain freedom of action in negotiating the agree-
ment.
The procedure thus worked out is believed to be
eminently practicable. It permits prompt negoti-
ations with the Interim Commission of the World
Health Organization for the formulation of the
specific agreement and fulfils the requirement in
article 54 of the World Health Organization con-
stitution that the "mutual consent of the com-
petent authorities" to proceed with integration
should be "expressed through the organizations
concerned". Yet the procedure obviates the neces-
sity of further reference of a specific agi'eement
to the individual American governments and
avoids the four-year delay which would have oc-
curred if the agreement had been required to be
submitted to the next Pan American Sanitaiy
Conference for approval. Once negotiated, the
agreement is to come into effect, according to par-
agraph VI of the resolution, after the establish-
ment of the World Health Organization, approval
by the World Health Assembly, ratification of the
constitution by 14 American republics, and signa-
ture of the agreement by the Director of the Pan
American Sanitary Bureau.
2. The second major problem mentioned above
related to the policy to be recommended by the
Conference on ratification of the World Health
Organization constitution. The United States
position at the Conference was one of firm opposi-
tion to any recommendation to the governments to
ra,tify the constitution with reservations. The
resolution as finally agi'eed upon recommends the
prompt approval of the constitution by all Ameri-
can republics with no reference to reservations of
any kind.
3. The third question was whether, after the
agreement with the World Health Organization
became effective, the Pan American Sanitaiy Bu-
reau would continue any separate activities in
addition to its functions as regional ofiice. The
possibility of additional activities was envisaged
in the draft agi-eement prepared by the subcom-
mittee of the World Health Organization, and it
was generally assumed in the discussions at the
Conference that sejDarate activities would be con-
tinued by the Bureau. Indeed, the list of prin-
ciples in the annex to the resolution places great
emphasis upon such separate progi-ams.
Department of State Bulletin
4. The basic issue of the extent to which the Pan
American Sanitary Bureau should conform to the
World Health Organization constitution and poli-
cies, both in serving as regional office and in its
separate activities, was not definitely settled in
all its aspects.
However, a key to the resolution of this problem
is found in paragraph 1 of the annex:
"The Pan American Sanitary Organization
. . . shall continue to function in its conti-
nental character in American aspects of health
problems and shall act as Regional Committee and
Office of the World Health Organization in the
Western Hemisphere, in accordance with the Con-
stitution of the World Health Organization."
This clearly provides for conformance with the
World Health Organization constitution when the
Organization acts as regional agency. However,
there was no discussion as to whether the final
phrase following the comma applies to the entire
paragraph or only the last portion.
Nevertheless, two other articles in the annex
establish a pattern of conformance of the Bureau,
even in its separate activities, to World Health
Organization constitution and policies. Article
IX provides that the Pan Am^ican Sanitary Con-
ference—
"is free to promote and adopt sanitary standards
and conventions in the Western Hemisphere being
required to take into account and to proceed in
accordance with the standards, conventions and
plans of the World Health Organization . . .".
Article X empowers the Bureau to undertake
regional health programs under the terms of the
Pan American Sanitary Code and as directed by
the conferences or the Directing Council, "pro-
vided that such programs are not incompatible
with the Constitution of the World Health
Organization".
The provisions concerning the election of the
Director were considered as of the greatest im-
portance, since the post is a dual one under the
ACriVniBS AND DEVeiOPMBNTS
present concept. The idea was readily accepted
that the existing Director at the time the agree-
ment becomes effective shall assume the post of
Regional Director until the end of his term.
After discussion it was agreed that his successors
should be elected by the Executive Board of the
World Health Organization in agreement with the
Pan American Sanitary Conference (as provided
in article 52 of the World Health Organization
constitution) with two conditions: (1) that the
person must have received the vote of two-thirds
of the American republics in the Directing Coun-
cil, and (2) that both the Directing Council and
the World Health Organization may reject candi-
dates proposed by the other only once for each
election. The United States Delegation did not
favor the latter condition.
The complex of problems with which the Con-
ference dealt in the field of national policies and
organization of public health included the Na-
tional Organization of Sanitary Services, the
relations between social security and public-health
service, post-war health problems with special
reference to migration, and the regulation of food
and drugs. An equally important portion of the
Conference agenda was devoted to problems of the
diagnosis, control, and treatment of diseases which
constitute nation-wide problems, such as malaria,
tuberculosis, and venereal disease, as well as rabies,
typhus, plague, and other animal diseases trans-
mittable to man.
Each of these topics was assigned to a special
commission of the Conference attended by repre-
sentatives who were experts in these particular
fields and, through discussion and a sharing of
experiences among these leaders in public health,
a series of resolutions and recommendations was
evolved on each of the subjects. After consider-
ation and approval by the full Conference, these
were transmitted to the governments. It will be
part of the continuing task of the Pan American
Sanitary Bureau to work with the 21 American
governments to seek to assure the implementation
of these programs.
May 4, 1947
8U
THE RECORD OF THE WEEK
Soviet Position on Reconvening of Joint U. S.-U. S. S. R. Commission
NOTE FROM SOVIET MINISTER FOR FOREIGN'AFFAIRS TO THE SECRETARY OF STATE
Dear Mr. Marshall :
In reply to your letter of April 8 on the question
of Korea,^ I am communicating the following :
At the Moscow meeting of the Foreign Ministers
of the Soviet Union, the United States of America
and the United Kingdom in December 1945, an
agreement was reached which determined the pol-
icy of the three powers with respect to Korea. A
basis for this agreement were the proposals of the
Soviet Government, to which the Government of
the U.S.A. also agreed, having consequently aban-
doned its first intention not to establish a National
Korean Government in Korea. The Moscow
Agreement held the establishment of a provisional
democratic Korean Government which could take
all the necessary measures for the development of
Korean industry, transport, agricultui-e and the
national culture of the Korean people, to be a
problem of primary importance.
Having made these proposals, the Soviet Gov-
ernment deemed that the unification of Korea un-
der the leadership of the Korean National Govern-
ment was the most important prerequisite for the
restoration of Korea as an independent state and
the establishment of bases for the development of
the country on democratic principles.
The Soviet Government continues to adhere to
this point of view and insists on a steadfast im-
plementation of the Moscow Agreement on Korea,
being certain that, on the basis of the execution of
this agreement Korea would be successfully de-
veloped along democratic principles and would be-
come an independent and prosperous state and an
equal member of the United Nations.
However, the legislative program provided for
Korea by the Moscow Agreement has not yet been
carried out. A provisional democratic Korean
Government has not been established. The work
of the Joint Soviet-American Commission, estab-
' Bulletin of Apr. 20, 1947, p. 716.
8ia
lished for the purpose of collaborating in the
establishment of a provisional democratic Korean
Government was suspended as a result of the fact
that the American delegation on this Commission
took a stand contrary to the Moscow Agreement
on Korea. Furthermore, the American Command
in southern Korea did not agree to a serious con-
sideration of the proposals by the Soviet Com-
mand in northern Korea on the question of an
economic exchange between the two zones, which
made it impossible to reach an agreement on this
question.
In the course of the work of the Joint Soviet-
American Commission during the period from
March to May, 1946, the Soviet delegation made
every effort to effect the execution of the afore-
mentioned agreement on Korea and, first of all,
provide for a prompt establishment of a provi-
sional democratic Korean Government and for the
unification of Korea under its leadership. How-
ever, the Soviet delegation met not only with diffi-
culties in this connection, but also with direct
counter-action on the part of the American dele-
gation. Basing itself on the agreement on Korea,
which provides that the Joint Commission, in
formulating its proposals, should consult Korean
democratic parties and social organizations, the
Soviet delegation insisted on a wide-scale attrac-
tion of such parties and organizations to consulta-
tion with the Commission. The American delega-
tion excluded participation by a whole series of
large democratic organizations in southern Korea
and insisted on consultation with groups which
had taken a stand in opposition to the Moscow
Agreement, consultation with which, naturally
could not facilitate the execution of this agree-
ment. The American delegation included in the
list of parties and organizations submitted by it
for consultation with the Joint Commission, sev-
enteen political i^arties and social gi'oups of
southern Korea which took a stand against the
Deparfment of State Bulletin
Moscow Agreement, and only three democratic
parties which suppoiled the agreement. The
American delegation excluded such large demo-
cratic parties and social organizations as the All-
Korean Labor Confederation, the All-Korean
Peasant Union, the Korean National Revolution-
ary Party, the All-Korean Youth Union, etc.,
from participation in consultation. Deeming it
impossible to agree to this position of the Ameri-
can delegation, the Soviet delegation nevertheless
did its utmost to find a way to reach an agreed
decision. This, however, appeared impossible
and the work of the Commission, on the sugges-
tion of the American delegation, was curtailed.
The intolerance of the resulting situation is evi-
dent. As a result of this, as you know, it was
necessary to take new measures in endeavoring
to find a way out of such a situation.
The Soviet Commander in his relations with the
American Commander endeavored to find a basis
for the renewal of the work of the Joint Commis-
sion. As a result of an exchange of letters, there
has been a considerable rapprochement of the
points of view of both sides, which fact was noted
by both commanders. It was expected that an
agreement would soon be reached and the Joint
Commission would begin its work very shortly.
However, no reply has been received to date from
the American Commander to the last letter of
February 28, from the Soviet Commander and the
proposed agreement was not reached. Disagree-
ment of action was a serious obstacle for the op-
portune fulfillment of the program of measures
proposed in the Moscow Agreement of Korea as
a whole.
In connection with northern Korea, during the
period beginning with the capitulation of Japan,
considerable progress was made in the field of
democratization, and also with respect to the res-
toration of national economy and culture. Wide
democratic reforms have been made which guar-
antee political freedom and raise the standard of
living of the population. I have in mind, first
of all, the introduction of an over-all electoral
right ; a law on equal rights for women ; the estab-
lishment of local authority agencies and the
People's Committee of Northern Korea on the
basis of free democratic elections; land reform, as
a result of which 725,000 landless peasant farmers
and those having little land received more than 1
million hectares of free land, which formerly be-
May 4, 1947
THE RECORD Of THE WEBK
longed to Japanese colonists and their accomplices
in Korea; the nationalization of former Japa-
nese industries, the 8 hour work-day, safeguarding
of labor and social insurance; public educational
reform, as a result of which the Korean language
has been reestablished, the network of schools was
increased and the number of students was in-
creased, etc. However, such wide democratic re-
forms have been carried out only in northern
Korea, where there is only two fifths of the popula-
tion of Korea.
The Soviet Government, closely adliering in
their policy toward Korea to the program planned
in the Moscow Agreement, believes the following
to be points of j^rimary importance :
1. The establishment of a provisional demo-
cratic Korean Government on the basis of a wide-
scale participation of Korean democratic parties
and social organizations, in order to expedite the
political and economic unification of Korea as a
self-supporting state independent of foreign in-
terference, which would do away with the division
of the country into two zones.
2. The establishment of democratic authority
agencies throughout Korea by means of free elec-
tions on the basis of a general and equal electoral
right.
3. The aiding of Korean people in the restora-
tion of Korea as an independent democratic state
and in the development of its national economy
and national culture.
In conformity with the steadfast aspiration on
the part of the Soviet Government for the prompt
restoration of Korea as a united sovereign state
and elimination of difficulties arising from the fact
that Korea to date has not been unified and does
not have a national government, I propose that
the Joint Soviet- American Commission resume its
work on May 20 of the current year in the city of
Seoul, on the basis of an exact execution of the
Moscow Agreement on Korea, and that the Com-
mission present the result of its work on the elabo-
ration of recommendations with respect to the
establishment of a provisional democratic Korean
Government for consideration by the two govern-
ments in July and August 1947.
I am sending copies of the present letter to Mr.
Bevin and to the Chinese Ambassador in Moscow.
I beg you [etc.]
V. MoLOTOV
813
Lend-Lease to the Union of Soviet Socialist Republics^
Lend-Lease Assistance to the Soviet Union During
the Period of Hostilities
Lend-lease aid to the Soviet Union during the
period of hostilities amounting to about $11,100,-
000,000 was rendered under the terms of a master
lend-lease agreement with the Soviet Government
signed on June 11, 1942. Aid on this basis was
ordered halted on V-J Day, September 2, 1945,
and no further shipments were made except for
goods then in process of loading or in transit to
shipside. Aid rendered from V-E Day, May 12,
1945, to V-J Day, September 2, 1945, was solely
for support of the Soviet Far Eastern Army and
the strengthening of this area for operations
against Japan. Ninety-five merchant ships now
remain in Soviet possession out of the 126 which
were transferred under tlie terms of the master
agreement of June 11, 1942. The Soviet Govern-
ment has now agreed to commence discussions for
settlement of its obligations for lend-lease aid
rendered under this agreement. These discussions
will include the disposition of the 95 merchant
ships.
Lend-Lease Shipments to the Soviet Union Since
V-J Day
On V-J Day, September 2, 1945, there remained
in warehouses and in production, quantities of
lend-lease articles which had been ordered for the
Union of Soviet Socialist Republics during the
period of hostilities. These articles were the resi-
due of a larger quantity of orders, many of which
were cancelled shortly after the cessation of hos-
tilities in Europe on V-E Day, May 12, 1945.
On October 15, 1945, an agreement was concluded
with the Government of the Union of SoAriet So-
cialist Republics under section 3(c) of the Lend-
Lease Act which reads in part as follows :
". . . until July 1, 1949, any of such powers
may be exercised to the extent necessary to carry
out a contract or agreement with such a foreign
government made before July 1, 1946 . . .".
The agreement of October 15, 1945, was con-
cluded independently of the master lend-lease
agreement of June 11, 1942. Under its terms the
Government of the United States agreed to deliver
and the Government of the Union of Soviet Social-
ist Republics agreed to accept under terms of pay-
ment stated below a specific quantity of these resid-
ual supplies. The supplies included in the sched-
ules of this agreement consist primarily of in-
dustrial and transportation equipment fabricated
to Soviet specifications. (No arms, ammunition,
or implements of war were included for shipment
under the agreement of October 15, 1945. It will
also be noted from the tables below that no cargo
trucks were included in the "pipeline" schedule.)
As a whole this equipment would have brought a
limited return if disposed of in the United States
as surplus. In many instances contract-cancella-
tion charges for material still in production on
V-J Day would have been excessive. Up to De-
cember 31, 1946, materials valued at $233,000,000
had been transferred to the Soviet Government
under this agreement and only about $17,000,000
of equipment still remained untransferred either
located at warehouses or in production. All trans-
fers are now suspended pending consideration by
the Congress.
The articles shipped after V-J Day and up to
December 31, 1946, were as follows:
Machine tools
Steam locomotives (Russian gage)
Generator sets
Cranes, derricks, hoists, etc.
Electric rotating equipment
Marine engines
Canned tushonka
Pumps
Crushing equipment
Valves and fittings
Gas-producing equipment
Secondary metal-forming machinery
$40, 850, 000
30, 634, 000
22, 800, 000
8, 129, 000
8, 633, 000
6, 824, 000
4, 054, 000
4, 620, 000
4, 135, 000
5, 114, 000
4, 177, 000
4, 956, 000
^ Statement prepared by the Department of State and
presented to the Senate on Apr. 18 by Arthur H. Vanden-
berg. President pro tempore of the Senate.
814
Diesel electric locomotives (Russian gage) 3, 001, 000
Industrial trucks and tractors 3, 768, 000
Fan and blower equipment 3, 182, 000
Power-transmission equipment 3, 162, OOO
Power-conversion equipment 3, 117, 000
Rolling mills and equipment 3, 372, 000
Mine and quarry machinery 3,690,000
Insulated wire and cable 3, 765, 000
Bearings 2, 803, 000
Department of State Bulletin
THE RECORD OF THE WEEK
Metal-melting and heating furnaces
Welding machinery
Metal-cutting tools
Mine-type locomotives
Leather
Various industrial equipment and materials
Total
The equipment remaining to be transferred to
the Soviet Government under the agreement is
made up as follows :
Oil-refinery equipment
Equipment to expand refineries shipped to
the U.S.S.R. before the cessation of
hostilities 9/2/45 $6, 972, 000
$2, 079, 000
Mine hoists
$3, 058, 000
2, 965, 000
Locomotive storage batteries
1, 777, 000
2, 289, 000
Power equipment
1, 272, 000
2, 085, 000
Electrical equipment
945,000
2, 117, 000
Mining equipment
674,000
46, 589, 000
Electric motors and controllers
350,000
Miscellaneous machinery and equipment
1, 648, 000
$233, 000, 000
Total $16, 696, 000
Payment for articles covered by the "pipeline"
agreement as set forth above is to be made over a
period of 30 years ending in 1975, with interest at
2% percent per annum. The first payment of
interest will be due July 1, 1947. The first pay-
ment of principal will be due July 1, 1954.
Protocol on Establishment of Four Power Naval Commission,
Disposal of Excess Units of Italian Fleet, and Return
by Soviet Union of Warhips on Loan
Protocol signed at Paris February 10, 1947, hy
representatives of the United States, United King-
doin, Union of Soviet Socialist Republics, and
France, on the establishment of a Four Power
Naval Commission, the disposal of excess units
of the Italian Fleet, and the return by the Soviet
Union of warships on loan
PART I
Whereas the Treaty of Peace with Italy pro-
vides that all the excess units of the Italian Fleet,
as listed in Annex XII B of the said Treaty, shall
be placed at the disposal of the Governments of
the Union of Soviet Socialist Republics, the United
Kingdom of Great Britain and Northern Ireland,
the United States of America, and of France;
And whereas it is necessary to make provision
for the final disposal among certain Allied and
Associated Powers of tlie said excess units ;
The Governments of the Union of Soviet So-
cialist Republics, the United Kingdom of Great
Britain and Northern Ireland, the United States
of America, and of France have therefore agreed
as follows:
1. The excess units of the Italian Fleet as listed
in Annex XII B of the Treaty of Peace with Italy,
and as finally verified on 1st January 1947, shall
be allocated as set out in the Annex to this Protocol.
No modification of the list of ships in Annex XII
B will be accepted, irrespective of the date of any
May 4, 1947
damage to or loss of such ships, the Italian Gov-
ernment being held responsible for the security
and maintenance of such excess units up to the
time at which each transfer is completed.
2. Upon transfer by the Italian Government, the
vessels concerned shall respectively vest in full
ownership in the States hereby becoming entitled
thereto, subject to the following exceptions:
(a) The Governments of the Soviet Union and
of France take note : that the Governments of the
United Kingdom and of the United States of
America have undertaken to meet, at least in part,
and out of the tonnage at their disposal, the claims
of certain other Powers for Italian naval vessels ;
furthermore, that in regard to any such Italian
naval vessels as the Government of the United
States of America may elect to transfer to other
Powers, the Government of the United States of
America will accept temporary custody only, and,
upon transfer of custody by the United States
Government to any such Power, full ownership
will pass from the Italian Government to that
Power.
(b) None of the Governments concerned shall
be obliged to accept any ship assigned to it under
this Protocol if such Government deems the ship
unsuitable for its purpose, but in that case the
Four Powers shall ensure that such ship, unless
it is an auxiliary naval vessel, be scrapped or
sunk by the Italian Government within nine
months from fhe coming into force of the Treaty.
815
THE RECORD OF THE WECK
3. A Commission, to be known as the Four
Power Naval Commission, shall be set up, to
meet for the first time immediately after the sig-
nature both of the Treaty of Peace with Italy and
of this Protocol. This Commission shall make all
detailed arrangements necessary to effect the
transfer of the excess units of the Italian Fleet,
together with their spare. parts and armament
stores, to the beneficiary Powers, in conformity
with the naval clauses of the said Treaty.
4. By invitation of the French Government, the
Commission will meet in Paris, where it will oper-
ate under the authority of the Council of Foreign
Ministers, and carry out all preliminary work
practicable prior to the coming into force of the
Treaty.
5. Upon the coming into force of the Treaty, the
Commission will move to Rome, where it will
operate under the authority of the Ambassadors
of the Soviet Union, the United Kingdom, the
United States of America and France.
6. All orders and instructions by the Commis-
sion shall be issued in the name of the four Am-
bassadors, and shall be communicated by them to
the Italian Government for execution.
7. The Commission shall have the right to co-
opt the services of representatives of Greece,
Yugoslavia and Albania, when matters affecting
these States are under discussion, and to call for
such Italian representation as may be found neces-
sary to the execution of the work of the
Commission.
8. The Annex to this Protocol will be published
at a later date.
PAHT II
And whereas, by agreement between the Gov-
ernments of the Union of Soviet Socialist Repub-
lics, the United Kingdom of Great Britain and
Northern Ireland, and the United States of Amer-
ica, certain warships of the Royal Navy and of the
United States Navy were, in 1944, transfei-red on
loan to the Government of the Soviet Union ;
And whereas it is necessary to make provision
for the return to the Governments of the United
Kingdom and of the United States of America of
the aforementioned warships now on loan ;
The Governments of the Union of Soviet Social-
ist Republics, the United Kingdom of Great
Britain and Northern Ireland, and the United
States of America have further agreed as follows :
816
9. The representatives of the abovementioned
three Governments on the Commission shall co-
ordinate the arrangements for the return to the
Governments of the United States of America and
of the United Kingdom of the vessels on loan to
the Government of the Soviet Union, as listed in
paragraph 10 below. The return of such vessels
to United Kingdom and United States ports shall,
as far as possible, be effected simultaneously with
the transfer to the Soviet Union of the excess
units of the Italian Fleet allocated to her.
10. List of Vessels on Loan from the United
Kingdom
British Name Temporary Russian Name
Battleship
Royal Sovereign
Archangelsk
Destroyers
St. Albans
Dostoiny
Brighton
Zharky
Riclimond
Zhyvuchy
Chelsea
Derzky
Leamington
Zhguchy
Roxburgh
Doblestny
Georgetown
Zhostky
Submarines
Unbroken
B. 2
Unison
B. 3
Ursula
B. 4
Vessels on Loan from
the United States
United States Name
Temporary Russian Name
Cruiser
Milwaukee
Murmansk
In faith whereof the Undersigned Plenipoten-
tiaries have signed the present Protocol, which
will take effect immediately, the English, French
and Russian texts being equally authentic.
Done in Paris this tenth day of February one
thousand nine hundred and forty seven.
[Here follow the signatures.]
THE CONGRESS
Continuing the Authority of the Committee on
Interstate and Foreign Commerce To Investigate
the Transportation Situation : Report to accom-
pany H. Res. 153. H. Rept. 277, 80th Cong., 1st
sess. 1 p.
Reincorporation of Export-Import Bank of
AVashington : Report to accompany S. 993, a bill to
provide for the reincorporation of Export-Import
Bank of Washington, and for other purposes. S.
Rept. 104, 80th Cong., 1st sess. 2 pp.
Correcting an Error in Section 342 (B) (8) of
the Nationality Act of 1940, as Amended : Report
to accompany H.R. 2237. H. Rept. 272, 80th Cong.,
1st sess. 2 pp.
Department of State Bulletin
Protocol Amending Agreements, Conventions
and Protocols on Narcotic Drugs ^
THE PRESIDENT'S LETTER OF TRANSMITTAL
To the Senate of the United States :
With a view to receiving the advice and con-
sent of the Senate to ratification, I transmit here-
with a certified copy of the protocol amending the
agreements, conventions and protocols on nar-
cotic drugs concluded at The Hague on January
23, 1912, at Geneva on February 11, 1925 and Feb-
ruary 19, 1925, and July 13, 1931, at Bangkok on
November 27, 1931 and at Geneva on June 26,
1936.
This protocol was opened for signature at Lake
Success, New York on December 11, 1946 and was
signed on behalf of the United States of America
on that date.
I transmit also for the information of the Sen-
ate the report of the Acting Secretary of State
regarding this protocol.
Haret S. Truman
The White House, April 22, 191^1
(Enclosures: 1. Certified copy of protocol, opened for
signature December 11, 194G, amending the agreements,
conventions and protocols on narcotic drugs.'' 2. Report
of the Acting Secretary of State.)
REPORT OF THE ACTING SECRETARY OF STATE
WASHrNGTON, A'pril 21, 1947.
The President,
The White House:
The undersigned, the Acting Secretary of State,
has the honor to lay before the President, with a
view to its transmission to the Senate to receive
the advice and consent of that body to ratification,
if his judgment approve thereof, a certified copy
of the protocol amending the agreements, conven-
tions and protocols on narcotic drugs concluded at
The Hague on January 23, 1912, at Geneva on Feb-
ruary 11, 1925 and February 19, 1925, and July 13,
1931, at Bangkok on November 27, 1931 and at
Geneva on June 26, 1936.
By resolution adopted February 12, 1946, the
General Assembly of the United Nations decided,
with certain reservations, to take the steps neces-
sary to ensure the uninterrupted exercise of the
functions and powers of a technical and non-polit-
ical character vested in the League of Nations by
virtue of international agieements. Questions
with respect to those functions and powers relating
to the control of narcotic drugs were referred to
the Economic and Social Council with a view to
the drafting of amendments made necessary as a
result of the dissolution of the League of Nations
and the willingness of the United Nations to as-
sume the international control of narcotic drugs.
Accordingly, the Economic and Social Council
undertook a study of existing international agree-
ments in order to determine how the administra-
tive and enforcement powers conferred by such
agreements on the Council of the League of Na-
tions and other bodies could best be transferred to
the United Nations without altering the substan-
tive provisions. Subsequently, a draft protocol
adopting certain amendments, as set forth in an
accompanying annex, was referred to the General
Assembly which, on November 19, 1946, unani-
mously approved the assumption by the United
Nations of the functions and powers exercised by
the League of Nations in respect of narcotic drugs.
The protocol was opened for signature at Lake
Success, New York on December 11, 1946 and was
signed by the United States Representative to the
United Nations on that date.
The six agreements, conventions and protocols,
amendment of which is contemplated by the pres-
' S. Exec. N, 80th Cong., 1st sess.
' Not printed.
May 4, 1947
817
THE RECORD OF THE WEEK
ent protocol, represent the entire field of existing
multilateral undertakings of a fomial character in
regard to narcotic control. Tliey had been drawn
ujj from time to time, as closer collaboration in
this field between nations gave reason to expect that
they would be accepted by a sufficient number of
governments to make further regulation practica-
ble. This explains the existence of six separate in-
ternational agreements on the subject and the com-
plexity of the control system resulting therefrom.
Each of these agreements covers a special aspect
of drug control. Each is made effective by its own
terms, irrespective of the others, although the 1936
convention does not enumerate the narcotic sub-
stances covered by its provisions, merely providing
that they are the narcotics referred to in the 1912,
1925, and 1931 conventions.
The Convention for the Suppression of the
Abuse of Opium and Other Drugs, signed at The
Hague on January 23, 1912, first of the series and
antedating the League of Nations, laid the ground-
work for drug control by defining raw, prepared,
and medicinal opium, morphine, cocaine, and her-
oin and providing for the adoption of certain
measures by the participating Powers for control-
ling the traffic in those drugs. The United States
of America became a contracting party to that con-
vention. The Netherlands Govenmient was des-
ignated depositary and remained such until the
General Assembly of the League of Nations, by
resolution of December 15, 1920, entrusted to the
League of Nations, with the consent of the Nether-
lands Government, the exercise of the powers con-
ferred upon that Government by the Hague Con-
vention. The first Assembly of the League created
the Advisory Committee on the Traffic in Opium
and Other Dangerous Drugs to secure the fullest
cooperation between the various countries in re-
gard to narcotic control and to assist and advise
the Council in matters pertaining thereto.
The Agreement Concerning the Manufacture
of. Internal Trade in, and Use of Prepared Opium,
with Protocol, signed at Geneva on February 11,
1925 by representatives of the British Empire
(with India), China, France, Japan, the Nether-
lands, Portugal, and Siam, was designed to im-
plemenl Chapter II of the Hague Convention of
1912. The contracting Powers undertook, with
respect to Far Eastern possessions or territories,
to make the importation, sale and distribution of
opium a monopoly of the Government with a view
818
to the gi-adual and effective suppression of the
trade in, and use of, prepared opium.
The International Convention Relating to Dan-
gerous Drugs, vnth Protocol, signed at Geneva on
February 19, 1925, further strengthened the Hague
Convention of 1912 by extending control to ecgo-
nine and Indian hemp, establishing a system of
import certificates and export authorizations, and
entrusting supervision over such trade to a Per-
manent Central Opium Board. The contracting
powers were required to furnish this Board esti-
mates of annual drug requirements and statistics
showing annual drug production. The United
States of America did not become a party to the
Geneva Convention of 1925. However, it has co-
operated with the Permanent Central Opium
Board by making the reports which the Board has
requested. Since 1933 it has participated in the
nomination of candidates for the Board and in
the nomination of a representative to join with the
Council in the selection of the Board.
The Convention for Limiting the Manufacture
and Regulating the Distribution of Narcotic
Drugs, with Protocol of Signature, signed at Ge-
neva July 13, 1931, advanced the area of control
by limiting the world manufacture of narcotic
drugs to the world's medical and scientific needs
and by limiting in each country the accumulation
of stocks of such drugs. Iii both cases the limita-
tion was to be accomplished by means of a system
of government estimates of annual drug require-
ments, to be examined by an international super-
visory body provided for in the convention and to
be binding upon the estimating governments. The
United States of America was a signatory to this
convention and became a party.
The Agreement for the Control of Opium Smok-
ing in the Far East, signed at Bangkok on No-
vember 27, 1931, by representatives of the Govern-
ments of the United Kingdom of Great Britain
and Northern Ireland, France, India, Japan, the
Netherlands, Portugal, and Siam, reaffirmed their
desire to suppress and discourage opium smoking
by providing that the retail sale and distribution
of the drug shall take place only from government
shops, in the absence of a system of licensing and
rationing of smokers. This agreement was ap-
plicable only to Far Eastern possessions or terri-
tories of the contracting powers, including leased
or protected territories in which the u.se of pre-
pared opium was temporarily authorized.
Deparfmenf of Sfale Bulletin
To standardize penalties for illicit trafficking
and to formalize arrangements for extradition of
persons guilty of drug offenses, the Convention
for the Suppression of the Illicit Traffic in Dan-
gerous Drugs was signed at Geneva June 26, 1936.
The United States of America participated in the
consideration of this convention but the conven-
tion as drafted was regarded as unacceptable to the
United States of America and was not signed by
the American delegates.
The jjresent protocol has the effect of lodging
in new administrative and judicial bodies created
as organs or under the auspices of the United Na-
tions the authority formerly exercised by various
bodies. More particuJai'ly the transfer of func-
tions in regard to narcotic control may be shown
as follows :
NARCOTIC CONTKOIj
Functions of
The Council of the League
of Nations
The Secretary-General of
the League of Nations
The League of Nations
Advisory Committee on
Traflfic in Opium and
Other Dangerous Drugs
Tlie League of Nations
Health Committee and
the Permanent Commit-
tee of the Office Inter-
national d'Hygi^ne pub-
lique In Paris
The Permanent Court of
International Justice
Transferred to
The Economic and Social
Council of the United
Nations
The Secretary-General of
the United Nations
The Commission on Nar-
cotic Drugs of the Eco-
nomic and Social Council
of the United Nations
The World Health Organi-
zation
The International Court of
Justice
The provisions of the prior agreements, con-
ventions and protocols which refer to states mem-
bers of the League of Nations and to non-members
shall, upon the coming into force of the present
amendments, apply to states members of the
United Nations and to non-member states. Dur-
ing the period preceding the entry into force of
this protocol, the Permanent Central Opium
Board and the Supervisory Body established,
respectively, by the Geneva conventions of Febru-
ary 19, 1925 and July 13, 1931, shall continue, as
constituted, to perform their functions. There-
after the Board and Supervisory Body will con-
tinue to function subject to the amendments
contemplated by the present protocol.
A Commission on Narcotic Drugs has been
created by the Economic and Social Council of
THE RECORD OF THE WEEK
the United Nations to assist in exercising such
authority in respect of narcotic drugs as may be
vested in the Council, and particularly to carry
out functions formerly entrusted to the League of
Nations Advisory Committee on Traffic in Opium
and Other Dangerous Drugs. Should the amend-
ments relating to the conventions of February 19,
1925 and July 13, 1931 come into force before the
Work] Health Organization is in a position to as-
sume its functions, the functions conferred on
that Organization by the amendments shall, pro-
visionally, be performed by its Interim Commis-
sion.
The present protocol provides in Article VII
that it shall come into force in respect of each
party on the date upon which it has been signed
on behalf of that party without reservation as to
approval, or upon which an instrument of accept-
ance has been deposited. The amendments set
forth in the Annex shall come into force in respect
of each agreement, convention and protocol when
a majority of the parties thereto have become
parties to tlie present protocol. However, states
which are parties to any of the instruments which
are to be amended are invited (Article II, para-
graph 3) to apply the amended texts of those
instruments so soon as the amendments are in
force even if they have not yet been able to become
parties to the present i^rotocol.
This protocol does not terminate, amend, or add
to the substantive provisions in the instruments
mentioned above. It is designed solely to transfer
functions and responsibilities in the field of
narcotic control from the old organisms to new
organisms of, or under the auspices of, the United
Nations. The substantive commitments of con-
tracting Powers under the several existing instru-
ments remain as before. No additional financial
ol)ligation is imposed on the Government of the
United States of America and it does not, by this
protocol, become a party to any of the existing
instruments to which it is not already a party.
The provisions in such existing instruments with
respect to the procedure for becoming a party
thereto and with respect to denunciation are to
remain in effect.
It is of the greatest importance to the world that
states collaborate in the interest of unbroken con-
trol of the traffic in narcotics, so long as danger of
drug addiction remains unabated. The danger is
May 4, 1947
819
THE RECORD Of THE WB£K
greater than ever. Because of the recent war there
are many new factories engaged in drug manu-
facture and processing. A number of countries
had been cut off from their normal sources of sup-
ply and, to assure for themselves the largely in-
creased requirements which the war necessitated
for legitimate medical and scientific operations,
they found it necessary to cultivate the raw mate-
rials and build factories to convert the raw mate-
rials into drugs. The danger is increased by scien-
tific progress. Now the straw of the poppy can be
used for making morphine. A new synthetic drug,
demerol (isonipecaine) , with properties similar to
morphine, is being manufactured in many coun-
tries. With new drug sources, increased pi'oduc-
tion, and the susceptibility of war-torn peoples to
the taking of drugs to escape suffering, there is a
pressing need for further concerted effort to avoid
the diversion of dangerous and habit-forming
drugs into illicit chamiels.
Respectfully submitted.
Dean Acheson
Report of Operations of the Department of State Under Public Law 584
THE PRESIDENT'S LETTER OF TRANSMITTAL
To the Congress of the United States:
I transmit herewith a report, by the Acting Sec-
retary of State, on the operations of the Depart-
ment of State under section 32 (b) (2) of Public
Law 584, Seventy-ninth Congress, as required by
that law.
Harry S. Truman
The WnrrE House,
March 10, 1947
(Enclosure: Report from the Acting Secretary of State
concerning Public Law 584.)
REPORT OF THE ACTING SECRETARY
OF STATE
In accordance with section 32 of the Surplus
Property Act of 1944, as amended August 1, 1946,
the following report is submitted covering opera-
tions under paragraph 32 (b) (2) of the act during
the period August 1 through December 31, 1946.^
The activities of the Department of State during
this period have been confined to the preliminary
fiscal and administrative arrangements required
for the establishment of a program of international
educational exchanges, within the restrictions im-
posed by the act.
As of December 31, 1946, sales of surplus war
property abroad, developing local currencies avail-
' H. Doe. 167, 80th Cong., 1st se.ss. Public Law 584 is an
act to amend the Surplus Property Act of 1944 and to desig-
nate the Department of State as the disposal agency for
surplus property outside the continental United States, its
territories and possessions, and for other purposes.
' Bulletin of Aug. 11, 194G, p. 262.
820
able under the act for educational programs, have
been made to the following countries: United
Kingdom, Australia, New Zealand, Czechoslo-
vakia, Greece, Hungary, Poland, Norway, Finland,
Netherlands, Belgium, France, Italy, India, Iran,
Turkey, Egypt, Lebanon, Saudi-Arabia, Ethiopia,
China, Netherlands Indies, Pliilippines, Austria,
Korea, and Siam. Sales in process of negotiation
may, when consummated, make it possible to de-
velop programs in several other countries.
As of the close of the calendar year 1946 none of
the Executive agreements required by the act had
been concluded. No American citizens were at-
tending schools or institutions pursuant to such
agreements, and no currencies or credits for cur-
rencies had been expended for any of the purposes
imder paragraph 32 (b) (2) of the act.
It is to be expected that during the 1947 cal-
endar year the Executive agreements will be nego-
tiated, and the Board of Foreign Scholarships
will be appointed, as provided for in the act.
Ample time will then be permitted for the filing
of applications for fellowships, in order to give
equal opportunity to all those interested. The first
fellowships are expected to commence in 1948.
Foreign Commerce Weekly
The following article of interest to BirriETiN readers
appeared in the April 19, 1947, issue of Foreign Com-
mence Weekly, a publication of the Department of
Commerce, copies of which may be obtained from the
Superintendent of Documents, Government Printing
OflSce, for 15 cents each :
"Mala.va Makes Some Progress in Its First Full
Year of Peace", by Max Seitelman, Vice Consul,
American Consulate General, Singapore.
Department of State Bulletin
Authorizing the Secretary of the Navy To Transfer Certain Vessels
and Material and To Furnish Certain Assistance
to the Republic of China ^
Whereas the act of July 16, 1946, Public Law
512, Seventy-ninth Congress, provides, in part :
"That notwithstanding the provisions of any
other law, the President is authorized, whenever
in his discretion the public interests render such
a course advisable, or will assist in relieving
United States forces of duty in China or putting
the Government of the Republic of China in
better position to protect or improve the safety
of navigation in its waters, to provide to the Re-
public of China such naval services, training,
plans, and technical advice as he may deem proper ;
and to dispose of naval vessels and craft, not to
exceed two hundred and seventy-one vessels and
craft under authority of this Act, which are in
excess of the naval needs of the United States,
floating drydocks of capacity sufficient to accom-
modate any vessel or craft disposed of under au-
thority of this Act, and material necessary for the
operation and maintenance of the vessels and craft
disposed of under authority of this Act and for
the training of the crews of such vessels and craft,
to the Republic of China by sale, exchange, lease,
gift, or transfer for cash, credit, or other property,
with or without warranty, or upon such other
terms and conditions as he may deem proper:
Provided, That prior to the disposition under the
authority of this Act of any battleship, aircraft
carrier of any type, cruiser, destroyer (but not
destroyer escort) , or submarine the President shall
first obtain the authority of the Congress in each
instance : Provided further, That no information,
plans, advice, material, documents, blueprints, or
other papers, bearing a secret or top-secret classi-
fication shall be disposed of or transferred imder
authority of this Act.
"Sec. 2. The President is authorized, upon ap-
plication from the Republic of China, and when-
ever in his discretion the public interests render
such a course advisable, to detail not to exceed one
hundred officers and two hundred enlisted men of
the United States Navy and Marine Coi'ps to assist
the Republic of China in naval matters : Provided,
That United States naval or Marine Corps per-
sonnel shall not accompany Chinese troops, air-
May 4, 1947
craft, or ships on other than training maneuvers
or cruises . . ."
Whereas the Republic of China has requested
the United States to transfer to it certain specified
naval vessels, craft, and floating drydocks, and
to furnish it certain technical advice and assistance
in connection with the organization and mainte-
nance by it of a naval establishment ; and
Whereas such vessels and craft are in excess of
the naval needs of the United States ; and
Whereas it appears that the transfer of such
vessels, craft, and floating drydocks, and the fur-
ishing of such advice and assistance to the Re-
public of China would be in accordance with the
conditions and limitations of the said act of July
16, 1946, and would be in the public interest :
Now, therefore, by virtue of the authority
vested in me by the said act of July 16, 1946, and
as President of the United States and as Com-
mander in Chief of the Army and Navy of the
United States, it is hereby ordered as follows :
Section 1. Subject to the conditions and limita-
tions contained in the said act of July 16, 1946,
the Secretary of the Navy is authorized :
(a) To transfer to the Republic of China with-
out compensation the said vessels, craft, and float-
ing drydocks.
(6) To repair, outfit, and equip the vessels,
craft, and floating drydocks which are to be trans-
ferred under paragraph {a) of this section, and
to transfer material deemed by the Secretary of
the Navy to be necessary for the operation and
maintenance of the vessels and craft so trans-
ferred, all on the basis of cash reimbursement of
the cost thereof by the Republic of China.
(c) To furnish to the Republic of China such
plans, blueprints, documents, and other informa-
tion in connection with such vessels, craft, and
floating drydocks, and such technical information
and advice in connection with the organization
and maintenance of a naval establishment by the
' Ex. Or. 9843 (12 Federal Register 2763).
821
THE RECORD OF THE WBBK
Republic of China which has not been classified
as secret or top-secret as the Secretary of the Navy
may deem proper.
(d) To train personnel for the operation of
such vessels, craft, and floating drydocks, and for
such other naval purposes as the Secretary of the
Navy may deem proper.
(e) To detail not more than one hundred offi-
cers and two hundred enlisted men of the United
States Navy or Marine Corps to assist the Re-
public of China in naval matters under such con-
ditions and subject to such rules and regulations
as the Secretary of the Navy may prescribe.
Section 2. The authority hereby granted shall
be exercised by the Secretary of the Navy subject
to concurrence by the Secretary of State; and if
at any time the Secretary of State shall determine
that the transfer of further vessels and craft or
material would not be in the public interest, such
transfers shall be discontinued.
Haert S. Truman
The White House
April 25, 19Jt7
U. S. Military Attaches in China
Returned by Communist Captors
[Released to the press April 22]
According to recent Chinese Communist broad-
casts, Maj. Robert B. Rigg and Capt. John W.
Collins, Assistant Military Attaches of the Amer-
ican Embassy at Nanking who were captured by
Communist troops on March 1, were released at
noon April 24. Following the procedure outlined
in the Chinese Communist broadcast, United
State representatives were sent to a rendezvous
at Hungfangtze, a place northeast of Changchun,
to meet Rigg and Collins at the time appointed
for their release. The American representatives
were Oliver Edmund Clubb, United States Consul
General at Harbin, and Lt. Col. Edward T. Cowen,
Assistant Military Attache at the United States
Embassy.
Visiting Lecturer of Ceramics to
Honduras
James ]\f arek, consultant in ceramics, Indianap-
olis, Indiana, has been awarded a grant-in-aid by
the Department of State to enable him to serve
as visiting lecturer of ceramics at the Escuela
Nacional de Bellas Artes, Tegucigalpa, Honduras.
Philippine Vice President and Foreign
Secretary To Visit U.S.
[Released to the press April 21]
Elpidio Quirino, Vice President and concur-
rently Secretary of Foreign Affairs of the Repub-
lic of the Philippines, has accepted the invitation
of this Govermnent to visit the United States.
The Vice President will remain in Honolulu and
San Francisco for a few days and is expected to
arrive in Washington May 6. The party will be
the guests of this Government at the Blair House.
Control of Coal Exports in Western
Zones of Germany
[Released to the press simultaneously in Washington,
Loudon, and Paris on April 21]
It was announced jointly on April 21 by the
American, British, and French Governments that
an arrangement has been made to fix the propor-
tion of coal exports from their zones of occupation
in Germany to the coal-importing countries of
Euroj^e for the six-month period beginning July
1, 1947. Exports will be fixed in terms of per-
centages of net merchantable coal production be-
ginning at 21 percent when the daily output of
clean bitimiinous and anthracite coal in the western
zones reaches 280,000 tons a day, and rising to 25
percent when it reaches 370,000 tons a day.
The scale of percentages takes account on the
one hand of the needs of coal for the reconstruction
of the liberated countries of Europe who have
always been dependent on imports of German coal ;
and on the other of the essential industrial and
other requirements of the German economy.
The arrangement will facilitate planning both
by the coal-importing countries and by the authori-
ties in charge of the economics in Germany. It is
subject to review at the end of 1947.
It has also been decided that when the economic
incorporation of the Saar with France has been
decided upon, a joint notification will be made to
the European Coal Organization, indicating that
in future France will present to ECO both the
resources and the needs of France and the Saar as
a wliole, and inviting ECO to take account of this
new situation.
The present arrangement represents the results
of long discussions and has been confirmed by the
three Foreign Ministers.
822
Department of State Bulletin
Visit of President of iViexico
At the invitation of President Truman, His
Excellency Miguel Aleman, Pi'esident of Mexico,
arrived in Washington on April 29 to be the
official guest of the United States (Tovernment mi-
til May 7. His visit was the first official visit
by a Mexican President in office to this country's
capital. After remaining several days in Wash-
ington, the official party visited New York, N. Y.,
Chattanooga, Tenn., and Kansas City, Mo.
Elisabeth Enoclis To Attend Institute
for Protection of Childhood
[Released to the press April 22]
The Acting Secretary of State announced on
April 22 that Mrs. Elisabeth Shirley Enochs, Di-
rector of the Inter- American Cooperation Service
of the Children's Bureau, Social Security Admin-
istration, Federal Security Agency, has been des-
ignated as alternate technical delegate of the
United States to attend the regular annual meet-
ing of the Executive Council of the American
International Institute for the Protection of Child-
hood. This meeting is scheduled to be held at
Montevideo, Uruguay, beginning on April 25,
1947.
The Institute was established with headquarters
a( Montevideo in 1927 in accordance with a reso-
lution of the Fourth Pan American Child Con-
gress (1924). A permanent official pan-American
agency for the promotion of child welfare in the
American republics, the Institute is a center of
social action, information, advice, and study of all
questions relating to child Mfe and welfare. The
Executive Council, which is composed of repre-
sentatives of member states, directs the Institute's
activities.
United States participation in the American
International Institute for the Protection of Child-
hood was authorized by Congress in 1928. Since
that time Miss Katharine F. Lenroot, Chief, United
States Children's Bureau, has been the technical
delegate of the United States. Due to prior com-
mitments she is unable to attend this meeting, and
Mrs. Enochs, who has attended four of the Coun-
cil meetings in the past seven years, is going in her
stead. Mrs. Enochs' trip will include stopovers
at Rio de Janeiro and Lima where she will have
consultations with field representatives of the
Children's Bureau.
THE RECORD OF THE WEEff
New Salesroom Opened
Publications of the Department of State and
selected publications of other Government agencies
are now being sold in Room 120 at 1778 Pennsyl-
vania Avenue NW., one of the buildings occupied
by the Department of State. The salesroom was
opened as a convenience to visitors to the Depart-
ment and to persons in Washington. It is operated
by an agent of the Superintendent of Documents.
Mail orders for the Department's publications
should be addressed as in the past to the Superin-
tendent of Documents, Government Printing Of-
fice, Washington 25, D.C.
Paul A. Porter Resigns
The President on April 25 accepted the resig-
nation of Paul A. Porter as Chief of the American
Economic Mission to Greece with the personal
rank of Ambassador. For texts of Mr. Porter's
letter and the President's reply, see Wliite House
press release of April 25.
Confirmations to the United Nations
The Senate on April 21, 1947, confirmed the Executive
nominations of Warren R. Austin to be the Representative
of the United States of America to the special session of
the General Assembly of the United Nations ; and of
Herschel V. Johnson to be the Alternate Representative
of the United States of America to the special session of
the General Assembly of the United Nations.
THE FOREIGN SERVICE
Confirmations to the Diplomatic
and Foreign Service
The Senate on April 9 confirmed the following nomina-
tions :
Ambassadors Extraordinary and Plenipotentiary of the
United States of America to the Countries Named
Willard L. Beaulac, to Colombia
Walter J. Donnelly, to Costa Rica
John F. Simmons, to Ecuador
Albert F. Nufer, to El Salvador
Paul C. Daniels, to Honduras
Henry F. Grady, to India
Fletcher Warren, to Paraguay
John C. Wiley, to Portugal
Edward F. Stanton, to Slam
Williamson S. Howell, Jr., to Uruguay
Cavendish W. Cannon, to Yugoslavia
Envoys Extraordinary and Ministers Plenipotentiary of
the United Slates of Ameriea to the Countries Named
Solden Chapin, to Hungary
George A. Garrett, to Ireland
Paul H. Ailing, to the Republic of Syria
May 4, 1947
823
Jj^'r-:.'/;>«1ii^;iJ--
The United Nations Page
U.S. Trusteeship for the Territory of the Pacific
Islands. Article by Robert R, Robhins . 783
Trusteeship Agreement for the Former Japanese
Mandated Islands 791
Special Session of General Assembly CaUed:
Cable of Secretary-General to Members . . 795
Items Requested for Agenda 795
U.S. Delegation 798
Designating the U.S. Mission to the U.N. and
Providing for Its Direction and Administra-
tion 798
Summary Statement by the Secretary-General.
Security Council Matters 799
U.S. Delegation to First Assembly of ICAO . . 808
Confirmations to the United Nations 823
Occupation Matters
Toward Formulating a New Japanese Constitu-
tion:
FEC Intere.st in Japanese Constitution . . . 802
Principles for a New Japanese Constitution . 802
Further Policies for New Japanese Constitu-
tion , 803
Review of Japane.se Constitution 804
Apprehension, Trial, and Punishment of War
Criminals in the Far East 804
Determination of Peaceful Needs of Japan . . . 806
Soviet Position on Reconvening of Joint U.S.-
U.S.S.R. Commission. Exchange of notes. 812
Control of Coal Exports in Western Zones of
Germany 822
The Council of Foreign Ministers
Moscow Meeting of the Council of Foreign
Ministers: Discussion of German and
Austrian Draft Treaties. Statements by
the Secretary of State:
Reiteration of Position on Disarmament and
Demilitarization of Germany 793
Position on Treaty for Reestablishment of
Independent and Democratic Austria. . 793
General Policy
Authorizing the Secretary of the Navy To Trans-
fer Certain Vessels and Material and To
Furnish Certain As-sistance to the Republic
of China 821
General Policy — Continued page
U.S. Military Attaches in China Returned by
Communist Captors 822
Philippine Vice President and Foreign Secretary
To Visit U.S 822
Visit of President of Mexico 823
Economic Affairs
U.S. Delegation to ILO Coal Committee . . . 806
Treaty Information
Lend-Lease to the U.S.S.R 814
Protocol on Establishment of Four Power Naval
Commission, Disposal of Excess Units of
Italian Fleet, and Return by Soviet
Union of Warships 815
Protocol Amending Agreements, Conventions
and Protocols on Narcotic Drugs:
The President's Letter of Transmittal . . . 817
Report of the Acting Secretary of State . . 817
Educational, Scientific, and Cultural Coopera-
tion
U.S. Delegation to IMMRAN 807
Twelfth Pan American Sanitary Conference:
Regional Health Programs and WHO . . 809
Visiting Lecturer of Ceramics to Honduras . . 822
Elizabeth Enochs To Attend Institute for
Protection of Childhood 823
Calendar of International Meetings . . . 800
The Foreign Service
Confirmations to the Diplomatic and Foreign
Service 823
The Congress 816
The Department
Report of Operations of the Department of State
Under Public Law 584 820
Paul A. Porter Resigns .823
New Salesroom Opened 823
Publications
Foreign Commerce Weekly 820
i6mv(/mui(yy6,
Robert R. Robbins, author of the article on United States trustee-
ship for the territory of the Pacific Islands, is a Specialist in Dependent
Area Affairs, Trusteeship Branch, Division of Dependent Area Affairs,
Office of Special Political Affairs, Department of State.
U. S. GOVERNMENT PHINTINS OFFICE: 1947
J/ie/ ^efia/)^Cnienf/ /O^ tnate/ ^ cy^s ^^ i (^^^
u
lletin
Sup p lement
AID TO
GREECE AND
TURKEY
A Collection of State Papers
Vol. XVJ, No. 409 A
May 4, 19i7
1} ''i^SeSi^S^I^^^ *
■■•»«• •♦
M
e
zl^e^€(/ytme)tt ^£ CHa^ Yj LA X JL \D L X X X
Vol. XVI, No. 409 A • Publicatiom 2802
Near Eastern Series 7
May 4, 1947
For sale by the SuperinteodeDt of Documents
U. 8. Government Printing Office
Wasliington 25, D. 0.
Scbsceiption:
62 Issues, $S.OO; single copy, 16 cents
Published with the approval of the
Director of the Bureau of the Budget
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Depabtuent
OF State Buixeiin as the source will be
appreciated.
SUPPLEMENT
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 uiith 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
nuide 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 interruitional
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 toell as
legislative material in the field of inter-
national rela tions, are listed currently.
y. a. SUFeRI.VtENDENT of DOCUMtNU
JUN 2 1947
AID TO GREECE AND TURKEY
Greek Government Seeks U.S. Financial Aid
MESSAGE TO THE PRESIDENT AND THE SECRETARY OF STATE FROM
THE GREEK PRIME MINISTER AND THE MINISTER FOR FOREIGN AFFAIRS i
Sir: I have the honor, on instructions of my
Government, to convey the following urgent mes-
sage to His Excellency the President of the United
States and to Your Excellency :
"Owing to the systematic devastation of Greece,
the decimation and debilitation of her people and
the destruction of her economy through four in-
vasions and protracted enemy occupation, as well
as through disturbances in the wake of war, and
despite the valuable assistance rendered by our
Allies during and after the war for which the
Greek people feel profoundly grateful, further and
immediate assistance has unfortunately become
vital. It is impossible to exaggerate the magnitude
of the difficulties that beset those survivors in
Greece who are devoting themselves to the restora-
tion of their country. Such means of survival as
remained to the Greek people after the enemy
withdrew have now been exhausted so that today
Greece is without funds to finance the import even
of those consumption goods that are essential for
bare subsistence. In such circumstances the Greek
people cannot make progress in attacking the prob-
lems of reconstruction, though substantial recon-
struction must be begun if the situation in Greece
is not to continue to be critical.
"The Greek Government and people are there-
fore compelled to appeal to the Government of
the United States and through it to the American
people for financial, economic and expert assist-
ance. For Greece to survive she must have :
"1. The financial and other assistance which will
enable her immediately to resume purchases of the
food, clothing, fuel, seeds and the like that are
indispensable for the subsistence of her people and
that are obtainable only from abroad.
"2. The financial and other assistance necessary
to enable the civil and military establishments of
the Government to obtain from abroad the means
Supptement, May 4, 7947
741728 — 47
of restoring in the country the tranquillity and feel-
ing of security indispensable to the achievement
of economic and political recovery.
"3. Aid in obtaining the financial and other as-
sistance that will enable Greece and the Greek peo-
ple to create the means for self-support in the
future. This involves problems which unhappily
cannot be solved unless we surmount the crisis im-
mediately confronting us.
"4. The aid of experienced American admin-
istrative, economic and teclmical personnel to as-
sure the utilization in an effective and up-to-date
manner of the financial and other assistance given
to Greece, to help to restore a healthy condition in
the domestic economy and public administration
and to train the young people of Greece to assume
their responsibilities in a reconstructed economy.
"The need is great. The determination of the
Greek people to do all in their power to restore
Greece as a self-supporting, self-respecting democ-
racy is also great; but the destruction in Greece
has been so complete as to rob the Greek people of
the power to meet the situation by themselves. It
is because of these circumstances that they turn to
America for aid.
"It is the profound hope of the Greek Govern-
ment that the Government of the United States
will find a way to render to Greece without delay
the assistance for which it now appeals.
"Signed : D. Maximos, Prime Minister, C. Tsal-
DARis, Deputy Prime Minister and Minister for
Foreign Affairs."
Accept [etc.] Paul Economou-Goubas
His Excellency George C. Maeshaix
Secretary of State
Washington, D. C.
' Delivered by the Charge d'Affaires of Greece in Wash-
ington on Mar. 3, 1947, and released to the press on Mar. 4.
827
AID TO GREECE AND TURKEY
STATEMENT BY THE SECRETARY OF STATE
[Released to the press March 4]
• For some time this Government has been en-
deavoring in various ways to assist in the restora-
tion of the economy of Greece. Spurred by ap-
peals from the Greek Government, it has been
studying ways and means of providing additional
assistance. This study impelled the dispatch of
the economic mission headed by Paul A. Porter
which is now in Greece. It has also involved con-
sultations and exchanges of ideas with the Greek
Government and the British Govermnent, which
has likewise been bending every effort to help
Greece.
Recently reports from our own representatives
and from the Greek and British Governments have
shown that the economic condition of Greece has
deteriorated to the verge of collapse. The Greek
Government has renewed its request for help. In
the light of the world situation, this is a matter of
primary importance to the United States. It has
received the urgent attention of the President and
the executive agencies concerned. It has been dis-
cussed with the appropriate congressional leaders.
I cannot say anything today regarding the ac-
tion which may be taken, other than that a fuU
public statement will be made very soon, when the
executive agencies have completed their consider-
ation of the matter. The problems involved are so
far-reaching and of such transcendent importance
that any announcement relating to them could
properly come only from the President himself.
The final decisions will rest with the President
and the Congress.
828
Department of State Bulletin
Recommendations on Greece and Turkey
MESSAGE OF THE PRESIDENT TO THE CONGRESS '
Mr. President, Mr. Speaker, Members or the
Congress of the United States :
The gravity of the situation which confronts the
■world today necessitates my appearance before a
joint session of the Congress.
The foreign policy and the national security of
this country are involved.
One aspect of the present situation, which I
wish to present to you at this time for your con-
sideration and decision, concerns Greece and Tur-
key.
The United States has received from the Greek
Government an urgent appeal for financial and
economic assistance. Preliminary reports from
the American Economic Mission now in Greece and
reports from the American i\jnbassador in Greece
corroborate the statement of the Greek Govern-
ment that assistance is imperative if Greece is to
survive as a free nation.
I do not believe that the American people and
the Congress wish to turn a deaf ear to the appeal
of the Greek Government.
Greece is not a rich country. Lack of sufficient
natural resources has always forced the Greek
people to work hard to make both ends meet.
Since 1940 this industrious and peace-loving coun-
try has suffered invasion, four years of cruel enemy
occupation, and bitter internal strife.
When forces of liberation entered Greece they
found that the retreating Germans had destroyed
virtually all the railways, roads, port facilities,
communications, and merchant marine. More
than a thousand villages had been burned.
Eighty-five percent of the children were tubercu-
lar. Livestock, poultry, and draft animals had
almost disappeared. Inflation had wiped out
practically all savings.
As a result of these tragic conditions, a militant
minority, exploiting human want and misery, was
able to create political chaos which, until now,
has made economic recovery impossible.
Greece is today without funds to finance the
Supplement, May 4, 1947
importation of those goods which are essential
to bare subsistence. Under these circumstances
the people of Greece cannot make progress in
solving their problems of reconstruction. Greece
is in desperate need of financial and economic as-
sistance to enable it to resume purchases of food,
clothing, fuel, and seeds. These are indispensable
for the subsistence of its people and are obtainable
only from abroad. Greece must have help to im-
port the goods necessary to restore internal order
and security so essential for economic and political
recovery.
The Greek Government has also asked for the
assistance of experienced American administrators,
economists, and technicians to insure that the finan-
cial and other aid given to Greece shall be used
effectively in creating a stable and self-sustaining
economy and in improving its public administra-
tion.
The very existence of the Greek state is today
threatened by the terrorist activities of several
thousand armed men, led by Commimists, who defy
' Delivered by the President before a joint session of
Congress on Mar. 12, 1&47, and released to the press by
the White House on the same date. This message has
also been printed as Department of State publication 2785.
The full text of the President's speech was translated into
eight languages and broadcast at differing times to Europe,
the Soviet Union, and the Far East. Summaries of the
speech were broadcast several times in all the 25 languages
of the "Voice of the United States of America".
As the President was speaking at the Capitol, a "live"
broadcast of his voice was transmitted to Europe and
to the Middle East through relay at Algiers. A recording
of the President's voice was broadcast to Latin America
at 5 : 30 and 9 : 25 p.m. on March 12 ; to the Far East at
5: 30 p.m. on March 12 and at 5 and 8: 30 a.m. on March
13 ; and to Europe and the Middle East at 5 : 30 a.m. on
March 13. With the time changes around the world, the
rebroadcasts carried the President's voice to all parts of
the world at the most favorable listening hours during the
morning, afternoon, and evening.
Since the "Voice of the United States of America" does
not include the Greek and Arabic languages, the Presi-
dent's message was heard in Greece and Turkey only in
the English language.
829
AID TO GREECE AND TURKBY
the Government's authority at a number of points,
particularly along the northern boundaries. A
commission appointed by the United Nations Se-
curity Council is at present investigating disturbed
conditions in northern Greece and alleged border
violations along the frontier between Greece on
the one hand and Albania, Bulgaria, and Yugo-
slavia on the other."
Meanwhile, the Greek Government is unable to
cope with the situation. The Greek Army is small
and poorly equipped. It needs supplies and equip-
ment if it is to restore authority to the Government
throughout Greek territory.
Greece must have assistance if it is to become
a self-supporting and self-respecting democracy.
The United States must supply that assistance.
We have already extended to Greece certain types
of relief and economic aid, but these are inadequate.
There is no other country to which democratic
Greece can turn.
No other nation is willing and able to provide
the necessary support for a democratic Greek Gov-
ernment.
The British Government, which has been help-
ing Greece, can give no further financial or eco-
nomic aid after March 31. Great Britain finds it-
self under the necessity of reducing or liquidating
its commitments in several parts of the world, in-
cluding Greece.
We have considered how the United Nations
might assist in this crisis. But the situation is an
urgent one requiring immediate action, and the
United Nations and its related organizations are
not in a position to extend help of the kind that
is required.
It is important to note that the Greek Govern-
ment has asked for our aid in utilizing effectively
the financial and other assistance we may give to
Greece, and in improving its public administration.
It is of the utmost importance that we supervise
the use of any funds made available to Greece, in
such a manner that each dollar spent will count
toward making Greece self-supporting, and will
help to build an economy in which a healthy de-
mocracy can flourish.
No government is perfect. One of the chief vir-
tues of a democracy, however, is that its defects
are always visible and under democratic processes
can be pointed out and corrected. The Govern-
' Bulletin of Jan. 5, 1947, p. 23
830
ment of Greece is not perfect. Nevertheless it rep-
resents 85 percent of the members of the Greek
Parliament who were chosen in an election last
year. Foreign observers, including 692 Ameri-
cans, considered this election to be a fair expression
of the views of the Greek people.
The Greek Government has been operating in an
atmosphere of chaos and extremism. It has made
mistakes. The extension of aid by this country does
not mean that the United States condones every-
thing that the Greek Government has done or will
do. We have condemned in the past, and we con-
demn now, extremist measures of the right or the
left. We have in the past advised tolerance, and
we advise tolerance now.
Greece's neighbor, Turkey, also deserves our
attention.
The future of Turkey as an independent and
economically sound state is clearly no less impor-
tant to the freedom-loving, peoples of the world
than the future of Greece. The circumstances in
which Turkey finds itself today are considerably
different from those of Greece. Turkey has been
spared the disasters that have beset Greece. And
during the war the United States and Great
Britain furnished Turkey with material aid.
Nevertheless, Turkey now needs our support.
Since the war Turkey has sought additional
financial assistance from Great Britain and the
United States for the purpose of effecting that
modernization necessary for the maintenance of its
national integrity.
That integrity is essential to the preservation of
order in the Middle East.
The British Government has informed us that,
owing to its own difficulties, it can no longer extend
financial or economic aid to Turkey.
As in the case of Greece, if Turkey is to have the
assistance it needs, the United States must supply
it. We are the only country able to provide that
help.
I am fully aware of the broad implications in-
volved if the United States extends assistance to
Greece and Turkey, and I shall discuss these im-
plications with you at this time.
One of the primary objectives of the foreign
policy of the United States is the creation of con-
ditions in which we and other nations will be able
to work out a way of life free from coercion. This
was a fundamental issue in the war with Germany
and Japan. Our victory was won over countries
Deparlmenf of State Bulletin
AID TO GREECE AND TURKEY
which sought to impose their will, and their way of
life, upon other nations.
To insure the peaceful development of nations,
free from coercion, the United States has taken a
leading part in establishing the United Nations.
The United Nations is designed to make possible
lasting freedom and independence for all its mem-
bers. We shall not realize our objectives, however,
unless we are willing to help free peoples to main-
tain their free institutions and their national in-
tegrity against aggressive movements that seek to
impose upon them totalitarian regimes. This is
no more than a frank recognition that totalitarian
regimes imposed upon free peoples, by direct or
indirect aggression, undermine the foundations of
international peace and hence the security of the
United States.
The peoples of a number of countries of the
world have recently had totalitarian regimes
forced upon them against their will. The Gov-
ernment of the United States has made frequent
protests against coercion and intimidation, in vio-
lation of the Yalta agreement, in Poland, Ru-
mania, and Bulgaria. I must also state that
in a number of other countries there have been
similar developments.
At the present moment in world history nearly
every nation must choose between alternative ways
of life. The choice is too often not a free one.
One way of life is based upon the will of the
majority, and is distinguished by free institutions,
representative government, free elections, guar-
anties of individual liberty, freedom of speech and
religion, and freedom from political oppression.
The second way of life is based upon the will of
a minority forcibly imposed upon the majority.
It relies upon terror and oppression, a controlled
press and radio, fixed elections, and the suppression
of personal freedoms.
I believe that it must be the policy of the United
States to support free peoples who are resisting
attempted subjugation by armed minorities or by
outside pressures.
I believe that we must assist free peoples to work
out their own destinies in their own way.
I believe that our help should be primarily
through economic and financial aid which is essen-
tial to economic stability and orderly political
processes.
The world is not static, and the status quo is not
sacred. But we cannot allow changes in the status
Supplement, May 4, 1947
quo in violation of the Charter of the United Na-
tions by such methods as coercion, or by such
subterfuges as political infiltration. In helping
free and independent nations to maintain their
freedom, the United States will be giving effect to
the principles of the Charter of the United Nations.
It is necessary only to glance at a map to realize
that the survival and integrity of the Greek nation
are of grave importance in a much wider situation.
If Greece should fall under the control of an armed
minority, the effect upon its neighbor, Turkey,
would be immediate and serious. Confusion and
disorder might well spread throughout the entire
Middle East.
Moreover, the disappearance of Greece as an
independent state would have a profound effect
upon those countries in Europe whose peoples are
struggling against great difficulties to maintain
their freedoms and their independence while they
repair the damages of war.
It would be an unspeakable tragedy if these
countries, which have struggled so long against
overwhelming odds, should lose that victory for
which they sacrificed so much. Collapse of free
institutions and loss of independence would be dis-
astrous not only for them but for the world. Dis-
couragement and possibly failure would quickly be
the lot of neighboring peoples striving to maintain
their freedom and independence.
Should we fail to aid Greece and Turkey in this
fateful hour, the effect will be far-reaching to the
West as well as to the East.
We must take immediate and resolute action.
I therefore ask the Congress to provide authority
for assistance to Greece and Turkey in the amount
of $400,000,000 for the period ending June 30, 1948.
In requesting these funds, I have taken into con-
sideration the maximum amount of relief assistance
which would be furnished to Greece out of the
$350,000,000 which I recently requested that the
Congress authorize for the prevention of starva-
tion and suffering in countries devastated by the
war.
In addition to funds, I ask the Congi-ess to au-
thorize the detail of American civilian and mili-
tary personnel to Greece and Turkey, at the request
of those countries, to assist in the tasks of recon-
struction, and for the purpose of supervising the
use of such financial and material assistance as
may be furnished. I recommend that authority
831
AID TO GREECE AND TURKEY
also be provided for the instruction and training
of selected Greek and Turkish personnel.
Finally, I ask that the Congress provide au-
thority which will permit the speediest and most
effective use, in terms of needed commodities, sup-
plies, and equipment, of such funds as may be
authorized.
If further funds, or further authority, should be
needed for purposes indicated in this message, I
shall not hesitate to bring the situation before the
Congress. On this subject the Executive and
Legislative branches of the Government must work
together.
This is a serious course upon which we embark.
I would not recommend it except that the alter-
native is much more serious.
The United States contributed $341,000,000,000
toward winning World War II. This is an in-
vestment in world freedom and world peace.
The assistance that I am recommending for
Greece and Turkey amounts to little more than one
tenth of one percent of this investment. It is only
common sense that we should safeguard this in-
vestment and make sure that it was not in vain.
The seeds of totalitarian regimes are nurtured
by misery and want. They spread and grow in
the evil soil of poverty and strife. They reach
their full growth when the hope of a people for a
better life has died.
We must keep that hope alive.
The free peoples of the world look to us for
support in maintaining their freedoms.
If we falter in our leadership, we may endanger
the peace of the world — and we shall surely en-
danger the welfare of our own Nation.
Great responsibilities have been placed upon us
by the swift movement of events.
I am confident that the Congress will face these
responsibilities squarely.
832
Department of State Bulletin
Messages From the Greek Prime Minister and the Leader
of the Parliamentary Opposition
STATEMENT BY PRESIDENT TRUMAN
[Released to the press by the White House March 15]
I have just received two warm and appreciative
messages from Greece, one from Prime Minister
Maximos and one from Sir. Themistocles Sophou-
lis, leader of the Pariiamentary Opposition.
Both of these messages welcome the prospect of
the kind of American assistance which I recently
requested Congress to authorize and pledge the
whole-hearted support of the Greek people in
devoting any aid that may be forthcoming to the
purpose of constructive rehabilitation and the
cause of peace and freedom. These two state-
ments bear witness to the fact that all of the
Greek Parliament, including the Opposition as
well as those parties now represented in the Coali-
tion cabinet, are prepared to cooperate unre-
servedly with the United States Government in its
desire to assist Greece in restoring those basic
conditions of economic stability and internal order
which will allow the Greek people to build their
future in peace and security.
I sincerely hope that these evidences of good-will
mark the beginning of a happier era for Greece,
in which all loyal citizens will contribute their
share toward the restoration of a country of whose
democratic history they may be proud. It is also
my profound hope that those Greeks who have
taken up arms against their government will ac-
cept with confidence the amnesty which the Greek
Government is extending to all except those guilty
of crimes against the common law. The Greek
people, aware of the sympathetic interest of the
American people, will, I am sure, rally their
strength to vitalize their national life, forgetting
past excesses and looking courageously toward a
hopeful future.
TEXTS OF MESSAGES
[Released to the press by the White House March 15J
His Excellency ILviiRY Trdman,
President of the United States.
My Dear Mr. PREsroENT :
It is with great emotion that I hasten to express
to you the gratitude of the Greek Government, as
well as my own, for your momentous address to
Congress. It is destined to have a decisive influ-
ence on the future of the world, and especially on
that of our Greek people, a significant encourage-
ment in the just and noble struggle they are wag-
ing for the principles of freedom and democracy.
You are aware that the Greek people have long ago
chosen between the two ways of life which consti-
tute at the present historical moment the only
choice for the peoples of the world. This way of
life, which is based upon the will of the majority
and distinguished by free institutions, represent-
ative governments, free elections, and guarantees
of individual liberty, has been ours for thousands
Supp/emenf, May 4, 1947
of years. That is why we defied the Axis forces
which accumulated ujjon our people innumerable
calamities. That is also why we are now facing a
subversive movement of a militant minority which
is supported from abroad and is seeking to impose
its will upon the majority of the people by force
of arms and terrorism. This struggle is an excep-
tionally hard one because it has found the nation
exhausted by the devastation wrought by war and
occupation as your distinguished representatives
in Greece, the Ambassador of the USA and the
Chief of the American Economic Mission, have so
accurately informed you. Its prolongation would
definitely stop the economic recovery of our people
and dangerously weaken the nation's capacity of
resistance. That is why your announcement con-
cerning the precious assistance of the great Amer-
ican democracy has revived the hopes of all of us
and has convinced us that the time is no longer far
when Greece, free from all trials, will regain her
833
AID TO GREECE AND TURKEY
position among the happy and peace loving democ-
racies of the world. You declare that you have
condemned in the past and condemn now extremist
acts, either of the right or of the left, and that in
the past you have advised tolerance which you also
advise now.
The Greek Government, chosen by the free will
of the Greek people and based upon the confidence
of its great majority, is exactly following the
policy which you suggest by defending free insti-
tutions with conviction by enforcing a state of law
for all and by offering an amnesty in order to put
a quick end to the abnormal situation.
The Greek people are well aware of the im-
portance of your assistance under the present cir-
cumstances and through me give you the unre-
served assurance that they will prove themselves
worthy of the solicitude and the confidence which
you are extending to them, confident that the policy
outlined by your address will soon bring peace and
happiness to this part of the world and that Greece
by recovering her tranquillity and applying her-
self undistractedly to productive work will become
an example for peace loving and progressive dem-
ocratic peoples.
I assure you, Mr. President, of the eternal grat-
itude of the Greek nation. I have the honour to
be, my dear Mr. President,
Yours faithfully,
D. Maximos, Prime Minister of Greece
The President of the United States,
Harry Truman/
Please accept the expression of our deepest grati-
tude for the valuable assistance which you have
kindly proposed to Congress in favor of Greece
for her economic rehabilitation, the stabilization
of her freedom and independence, and for her in-
ternal pacification. The assistance of the United
States and your wise advice condemning the ex-
tremes of the right and left and recommending a
policy of toleration will also contribute, I am sure,
to the internal pacification of Greece without
further bloodshed.
Themistocles Sophotjlis
The Leader of the Opposition Committee
STATEMENT BY U.S. REPRESENTATIVE AT THE SEAT OF THE UNITED NATIONS >
The United States is dedicated to the principles
of the United Nations Charter and to the building
up of collective security. Support of the freedom
' Made by Warren R. Austin, U.S. Representative at the
Seat of the United Nations, on Mar. 13, 1947, and released
to the press by the U.S. Delegation to the U.N. on the
same date.
and independence of Greece and Turkey is essen-
tial to these purposes. Prompt approval by Con-
gress of the President's proposal would be new
and effective action by the United States in sup-
porting with all our strength our policy in the
United Nations.
834
Department of State Bulletin
Senate and House Committee Hearings
STATEMENT BY ACTING SECRETARY ACHESON >
Three weeks ago the British Government in-
formed the Department of State that as of March
31 it would be obliged to discontinue the financial,
economic, and advisory assistance which it has
been giving to Greece and Turkey.
A few days later we received from the Greek
Government an urgent appeal for financial, eco-
nomic, and expert assistance. Assistance is im-
perative, says the Greek Government, if Greece
is to survive as a free nation.
At various times during recent months the Turk-
ish Government has applied to the United States
for financial aid, but the Government has not had
the facilities for responding to those requests.
With the withdrawal of British aid, the needs of
Turkey for assistance are greatly increased.
This, then, is the situation with which we have
to deal. Greece and Turkey are in urgent need of
aid, and there is no other country to which they
may turn. The President in his message to Con-
gress on March 12 recommended that this Govern-
ment extend the necessary assistance.*
The problem with which we are faced has a his-
tory and a background. Greece's difficulties are
not new. But they have become acute as a result
of special circumstances.
Long before the war Greece had a hard time
making ends meet. Her poverty of natural re-
sources is so great that she has always needed more
imports than she could pay for with exports. Only
by hand-to-mouth contriving has she been able to
maintain a precarious balance in her international
economic position. In the past much of her export
trade naturally went to central European markets,
particularly to Germany; during the thirties she
was forced into closer dependence on Germany
through clearing agreements and other instruments
of Nazi economic warfare.
And then came the Italian invasion, the Ger-
man invasion, four years of cruel enemy occupa-
tion, and the scorching of her earth by the retreat-
ing enemy. Perhaps no other coimtry in the world
Supplement, May 4, 1947
741728 — 47 2
has suffered greater destruction of its physical
resources than Greece.
I should like to focus your attention upon four
conditions which were found to exist at the time
of Greece's liberation :
1. Physical destruction had catastrophically
impaired Greece's ability to produce, either for
home consumption or for export;
2. Greece's entire fiscal system had been
destroyed ;
3. The Greek civil service and administrative
system had been gravely impaired through starva-
tion and by death, undermined by infiltration of
undesirable elements, demoralized by inflation and
the resultant scramble for existence; and
4. The authority of the Greek state was threat-
ened by several thousand armed men who defied
and continue to defy it in certain areas of the
country. This situation in part grew out of the
arming of guerrilla forces during the war of lib-
eration. Many of these people have retained their
weapons, and certain bands now use them, fighting
to resolve political differences that might other-
wise be peaceably settled. The Greek Govern-
ment has charged before the Security Council of
the United Nations that the insurgent groups oper-
ating in northern Greece are assisted from outside
Greece by supplies and training in neighboring
countries. A commission appointed by the Secur-
ity Council of the United Nations is now investi-
gating these charges.
In the period of more than two years since its
liberation, Greece has received substantial relief
assistance from the United Nations Relief and
Rehabilitation Administration. Great Britain has
also extended very substantial aid to Greece in an
effort to supplement the relief and reconstruction
" Made before the House Foreign Affairs Committee on
Mar. 20, 1047, and released to the press on the same date.
' BtnxBMN of Mar. 23, 1947, p. 534.
835
AID TO GREECE AND TURKEY
eiforts of UNRRA, and to organize and equip the
Greek Army.
However, at the end of this current month out-
side assistance to Greece is scheduled to stop.
UNRRA is going out of business in Greece, and
British assistance, for reasons of which you are
aware, is to be discontinued.
The cessation of outside aid to Greece means
immediate crisis. Unless help is forthcoming from
some other quarter, Greece's economy will quickly
collapse, very possibly carrying away with it the
authority of the Government and its power to
maintain order and the essential services.
Essential imports for civilians and for the army
under the circumstances can continue for only a
few weeks. Two weeks ago the dollar resources
available to Greece were only $14,000,000 — enough
for one month's imports of food and other essen-
tials from the United States and other countries.
If imports should cease, the price of such goods as
are available would very rapidly reach astronomi-
cal figures. This is inflation. Its result in a coun-
try so dependent upon imports would be paralysis
of the government and of economic life. It would
also very probably mean the end of Greek freedom
and independence.
The armed bands in the north, under Communist
leadership, are already fighting, Greek against
Greek. In the event of economic collapse and
government paralysis, these bands would un-
doubtedly increase in strength until they took over
Greece and instituted a totalitarian government
similar to those prevailing in countries to the north
of Greece. The rule of an armed minority would
fasten itself upon the jDeople of Greece.
In this critical situation Greece has urgently
asked the United States for help. She requests
financial assistance for the following purposes:
(1) to enable her to carry on essential imports of
food, clothing, and fuel necessary for the sub-
sistence of her people; (2) to enable her to organ-
ize and equip her army in such a way that it will
be able to restore order throughout her territory;
and (3) to enable her to begin the process of
reconstruction by putting her production facilities
in order. (4) Finally, Greece requests the aid of
experienced American administrative, economic,
and teclinical personnel to assure the effective
utilization of whatever financial aid may be
extended her and to help her to begin the re-
construction of her own economy and public
administration.
The situation in Turkey is substantially differ-
ent, but Turkey also needs our help. The Turkish
Army has been mobilized since the beginning of
World War II and this has put a severe strain
upon the national economy. During the war
Turkey received substantial assistance from Great
Britain and the United States, which helped her
to carry this load.
Today the Turkish economy is no longer able
to carry the full load required for its national
defense and at the same time proceed with that
economic development which is necessary to keep
the country in sound condition. With some help
from the United States, and further assistance
which Turkey may be able to negotiate with
United Nations financial organs, Turkey should
be in a position to continue the development of her
own resources and increase her productivity, while
at the same time maintaining her national defenses
at a level necessary to protect her freedom and
independence.
The crisis in Greece and Turkey confronts us
with only two alternatives. We can either grant
aid to those countries or we can deny that aid.
There is no possibility of putting the responsi-
bility for extending the aid which Greece has asked
from the United States on some other nation or
upon the United Nations.
This becomes clear when we consider the specific
problems that confront Greece today and the spe-
cific kinds of assistance that Greece has requested
from the United Nations on the one hand and from
the United States on the other.
Let us consider first the problem arising from
outside Greece's borders. Greece has charged be-
fore the Security Council that armed bands op-
erating within her territory are partly supplied,
trained, and given refuge in neighboring countries
and are moving back and forth across the borders.
Greece has asked the United Nations for help in
dealing with this situation. This is peculiarly a
United Nations problem and one with which the
United Nations is dealing expeditiously and effec-
tively. In this matter the United States is sup-
porting the Security Council's action energetically.
The second problem confronting the Greek
Government is the need for supplies and funds to
enable it to meet its internal difficulties, namely,
836
Deparfment of State Bulletin
averting of economic collapse. The United Na-
tions Relief and Rehabilitation Administration
and the British Government have been helping
Greece with these particular problems, and the
present crisis has arisen because those two supports
must be withdrawn. To whom was Greece to turn ?
If Greece had applied to the United Nations or any
of its related organizations, the essential element
of time would have been lost and the end result, if
any, would have been the same.
The United Nations does not of itself possess
funds. The Economic and Social Council is an ad-
visory body that recommends economic, financial,
and social action to member states. The Interna-
tional Bank, which is just now completing its
organization, is set up primarily to make self-
liquidating loans for long-term reconstruction pur-
poses. It has not yet made any loans whatsoever.
The Economic Commission for Europe is still in
its early organization stage.
It may be that at some future time the United
Nations will be organized and equipped so as to
render emergency aid to member states of the kind
now needed in Greece and Turkey. But as the
President said, the United Nations and its related
organizations are not now in position to extend
help of the kind that is required. Even if some
organ of the United Nations should decide to rec-
ommend assistance to Greece and Turkey, it would
have eventually to turn primarily to the United
States for funds and supplies and technical as-
sistance. Even if the project were not blocked by
the objections of certain members of the United
Nations, much time would have been lost, and time
is of the essence.
The third problem confronting Greece is one of
expert personnel. Greece has linked this problem,
and we heartily concur, with the supply of funds.
Greece is in the most serious need of expert advice
and assistance. We believe, and we think Con-
gress believes, that the expenditure of American
funds in Greece and Turkey should be supervised
by American experts.
These are the emergency aspects of the problem.
In the longer range, the United Nations may be
able to take over various parts of the economic and
financial problem in Greece and Turkey. We are
giving serious study and consideration to ways in
which the United Nations may take hold of this
problem after the present emergency is past.
Supplement, May 4, 1947
fore us are to give the help requested, or to deny it.
An essential step in considering the wisdom of any
policy is to look at the alternatives. What are the
probable consequences of not extending aid to
Greece and Turkey?
I have already indicated what would more than
likely happen in Greece. As the President said,
however, it is necessary only to glance at the map
to realize that the survival and integrity of Greece
is of grave importance in a much wider situation.
The inexorable facts of geography link the future
of Greece and Turkey. Should the integrity and
independence of Greece be lost or compromised the
effect upon Turkey is inevitable.
But the effect is even wider. Consider for a
moment the situation of the countries to the east
and south of Turkey. All of them are confronted
with the accumulated problems of the past and of
the war. Some of them are just emerging into
statehood. These nations wish and should be able
to develop and maintain free institutions and in-
dividual liberties, but untoward circumstances may
force them in the other direction. Will these
countries be able to solve the extremely difficult
problems that confront them in ways compatible
with free institutions and individual liberty? It
is vital to our own interests to do all in our power to
help them solve their economic difficulties in such
a way that their choice will be in favor of freedom.
I need not emphasize to you what would more
than likely be the effect on the nations in the
Middle East of a collapse in Greece and Turkey,
and the installation of totalitarian regimes there.
Both from the point of view of economics and
morale, the effects upon countries to the east would
be enormous, especially if the failure in Greece and
Turkey should come about as the result of the
failure of this great democracy to come to their
aid. On the other hand, I ask you to consider
the effects on their morale and their internal de-
velopment should Greece and Turkey receive a
helping hand from the United States, the country
with which they closely associate the principles of
freedom. It is not too much to say that the out-
come in Greece and Turkey will be watched with
deep concern throughout the vast area from the
Dardanelles to the China Sea.
It is also being watched with deepest anxiety by
the peoples to the west, particularly the peoples of
837
AID TO GREECE AND TURKEY
Europe, who, as the President said, are struggling
against great difficulties to maintain their freedom
and independence while they repair the damages
of war.
As the President said, it would be an unspeak-
able tragedy if these countries, which have
struggled so long against overwhelming odds,
should lose that victory for which they sacrificed
so much. Collapse of free institutions and loss of
independence could be disastrous not only for them
but for the world. Discouragement and possible
failure would quickly be the lot of neighboring
people striving to maintain their freedom and inde-
pendence.
I have tried to outline to you the nature of the
present crisis, and to describe some of its implica-
tions for the United States. The Secretary of
War, Mr. Patterson, and the Secretary of the Navy,
Mr. Forrestal, will give you an appreciation of the
problem from the point of view of their Depart-
ments. The Under Secretary of State, Mr. Clay-
ton, and Ambassador Porter, who has just
returned from an economic mission in Athens, will
give you more facts about the present situation in
Greece and an account of the preliminary recon-
struction program we have worked out for Greece.
Our Ambassadors to Greece and Turkey, Mr.
MacVeagh and Mr. Wilson, have been recalled for
consultation. If the Committee wishes to have the
benefit of their views, I request that, on account of
the nature of their position and official duties, they
be heard in executive session.
STATEMENT BY UNDER SECRETARY CLAYTON •
The general political situation in Greece has
already been outlined by Mr. Acheson. I should
like to explore with you the economic position of
the country and the events which have brought the
Greek economy to a state of near collapse.
Even before the war, Greece was a poor country.
Her per capita income was one of the lowest in
Europe; labor productivity was low in both agri-
culture and industry; population pressed on
limited resources ; and there was a constant deficit
in the balance of trade.
Greece entered the war on the side of the United
Nations relatively early in the conflict. By April
1941, Greece was completely occupied by eneniy
forces and remained under occupation until late in
1944. During this period, the Greek economy was
operated almost entirely by and for the enemy war-
machine. Through such devices as issue of occu-
pation currency, drafts on the Greek Government,
clearing arrangements which gave exports to the
enemy without recompense, requisitions, confisca-
tions, and the like, the Greek economy was sys-
tematically and progressively stripped and at the
same time billions of drachma were pumped into
circulation.
One of the first acts of the German occupation
authorities was to requisition existing stocks of
Greek food, already seriously depleted. Agricul-
tural products were regularly requisitioned in
various areas and sometimes the Germans them-
' Made before the House Foreign Affairs Committee on
Mar. 24, 1947, and released to the press on the same date.
838
selves harvested crops to keep them from the local
population. Clothing was requisitioned in Crete
and other Greek areas. The Germans seized trans-
port, machinery, and raw materials to whatever
extent was required by the German armed forces
and the German economy. Greek industry was
used to meet the conqueror's needs at home and to
supply the necessary spare parts and repairs for
his damaged equipment. Machinery in factories
that could have supplied Greek civilian require-
ments was removed and replaced by machinery
designed especially to maintain German war
equipment.
As the enemy forces withdrew, they put into
effect a policy of systematic destruction calculated
to wreck the Greek economy to such an extent that
a liberated Greece would have slight prospect of
normal recovery in the foreseeable future. The
physical damage inflicted on the country was suf-
ficient to result in almost complete paralysis.
Means of communication were destroyed, port fa-
cilities wrecked, and bridges demolished. Live-
stock was carried off, villages burned, railways
torn up and the Corinth Canal dynamited.
The following figures will serve to highlight the
heavy material losses suffered by Greece from the
war. Of 55 passenger ships in 1939 only 5 re-
mained. Less than one quarter of the cargo ves-
sels were still afloat. The Greek State Railways
had lost over 80 percent of their rolling stock and
nearly 90 percent of their locomotives. Half of
the highway system was unusable and half the
Department of State Bulletin
bridges were out. A large proportion of the live-
stock and draft animals had disappeared. Indus-
trial production was only a small fraction of that
in 1939. Agricultural production had not suf-
fered as much but was still substantially below
pre-war levels.
In addition to the visible damage sustained by
Greece, the Greek economy fell prey to progressive
inflation, which stemmed largely from the heavy
occupation costs levied by the enemy. At one
point in the summer of 1942, occupation-cost pay-
ments reached 30 billion drachma monthly. It
may be estimated from Greek Government figures
that occupation costs totaled over 431 million 1938
dollars. In addition, Greece incurred heavy
drachma expenses for products exported to the
Axis during the occupation under the clearing ar-
rangements with Germany and Italy. Both clear-
ings at the end of occupation reflected net unpaid
exports by Greece totaling about 534 million 1938
dollars. By liberation, such fantastic amounts of
drachma were in circulation that the currency sys-
tem was on the verge of complete collapse.
In fact, the Greek Government-in-Exile was com-
pelled almost immediately upon its return to
Greece to abandon the old currency and establish
a new one. Conversion was effected in November
1944 at the rate of 50 billion old to 1 new drachma.
This had the effect of wiping out bank deposits
and destroying the value of Greek Government
bonds and other obligations.
The fiscal position of the Greek Government on
liberation was also appalling. The machinery of
government was disorganized. The pre-war tax
structure had completely collapsed during the oc-
cupation on the municipal as well as on the national
level. At the same time the financial burdens of
the Government were greatly increased. Hos-
pitals, schools, and many other essential services
had to be financed from the national treasury since
the municipalities were bankrupt. The Greeks'
brave fight to preserve their independence against
impossible odds and the subsequent occupation had
greatly increased the number of widows, orphans,
and maimed entitled to pensions. Moreover un-
settled world conditions imposed a further heavy
burden on the Greek budget for military needs
even though the British Government made a sub-
stantia] contribution in this respect.
Ever since liberation the Greek Government has
Supplement, May 4, 1947
AID TO GREECE AND TURKEY
been faced with a mounting budget deficit. Un-
fortunately, however, the lack of confidence in the
currency and credit of the Government engen-
dered by the inflationary experiences through
which the Greek people have just passed has meant
that the Government has been unable to float any
internal bond issues since the drastic currency con-
version of November 1944. Lack of confidence in
the currency is also reflected in the absence of any
appreciable savings in the form of bank deposits.
Tliis in turn has limited the ability of Greek banks
to supply essential credits to the Government or to
business and industry to finance rehabilitation and
reconstruction. As a result, reconstruction has
been greatly retarded and the Government has
been forced to cover the deficit in effect by currency
issues.
These currency issues have inevitably added to
the inflation in Greece, exerting upward pressures
on prices and the exchange rate. The over-al] cost
of living is now more than 100 times as high as in
1939. Wages have increased but not proportion-
ately, with the result that there has been a drastic
decline in real wages. The exchange rate has had
to be adjusted from 150 per dollar established at
liberation to 5,000 per dollar fixed in January
1946. Even this rate has been consistently below
black-market rates, which are now in the neighbor-
hood of 8,000 to the dollar. The rate for gold is
even higher, amounting to approximately 16,000
drachmas per dollar.
In these circumstances the Greek Government
has made efforts to attain stability by the expe-
dient of selling gold sovereigns at premium rates.
While this practice may have had some effect in
stabilizing the value of the drachma, it has also
reduced the gold and foreign-exchange reserves
of the Government to a dangerously low point.
Greece finds herself today with virtually no gold
or dollar resources left, with relatively little re-
construction accomplished, and with an economy
which threatens to collapse at the onset of almost
any serious adverse development. The shock to
confidence from the inflationary experience of
recent years was itself enough seriously to dis-
rupt the normal functioning of the economy.
This, added to the destruction wrought by the war
the political uncertainties facing the nation, and
the guerrilla activities imperiling life and prop-
839
AID TO GREECE AND TURKEY
erty in the interior, has meant virtual paralysis of
the normal economic processes by which Greece
might otherwise have been able to work out her
own salvation.
The assistance heretofore provided by UNRKA
and the British has succeeded in preventing actual
starvation. It has been far from sufficient to
restore Greece to a position where she could be-
come self-supporting. With the imminent cessa-
tion of the help provided by UNRRA and the
British, Greece needs substantial outside assist-
ance if suffering and political turmoil are to be
avoided. Such assistance can only come from the
United States m tlie time and in the amount
required.
I shall endeavor to outline the program of as-
sistance which is proposed. The Congress has
already been advised that with the termination
of UNRRA shipments Greece will require mini-
mum relief aid of 50 million dollars if serious
malnutrition and further retrogression in the
minimum operation of the economy are to be pre-
vented. This sum will be provided under the jjost-
UNRRA bill if this is approved by the Congress.
Provision of relief aid in this amount will not,
however, be sufficient to restore domestic security
or provide the minimum reconstruction and sta-
bility which are necessary if Greece is again to
take her place among the self-supporting demo-
cratic nations of the world.
For this purpose it is believed that approxi-
mately 300 million dollars will be necessary. Of
this approximately half would be devoted to mak-
ing available to the Greek armed forces the arms,
ammunition, clothing, rations, and equipment
necessary to deal effectively with the guerrillas.
The political and military reasons for strength-
ening the Greek Army have been discussed by
others, but I should like to emphasize that the
establishment of military security is an essential
prerequisite to economic stability. The economic
difficulties of Greece have been seriously compli-
cated by a general lack of confidence in the future
of Greece as an independent state. Establisli-
ment of military secvxrity will enable the Greek
Government and people to concentrate their efforts
upon the solution of their economic problems, and
renewed hope and confidence will encourage Greek
private enterprise to undertake a larger share of
the tasks of reconstruction.
The civilian program envisaged will cost ap-
640
proximately 150 million dollars. I would like to
indicate very briefly the nature of this program,
in particular the import or foreign-exchange ele-
ments involved.
We have estimated that imported equipment
and materials for reconstruction until June 30,
1948 wiU cost approximately 50 million dollars.
The first priority in reconstruction must be given
to the restoration of transport and public utilities.
Internal transportation in Greece is a serious bot-
tleneck to further recovery. Until the railroad
network is fully restored and sufficient rolling
stock provided, the present excessive diversion of
traffic to trucks will have to be continued with
attendant high costs which hamper internal dis-
tribution and exports.
Greek roads have deteriorated very seriously
and are in such imbelievably bad condition that
the life of vehicles is only a fraction of normal,
and operating costs are excessively high. The two
principal Greek jDorts, Piraeus and Salonica, wei'e
very badly damaged and have been restored on
only a provisional basis.
In order to make progress toward the restora-
tion of the Greek transport system, it will be neces-
sary to import considerable quantities of rolling
stock, rails, structural steel and bridge-building
material, road machinery and earth-moving
equipment, some vehicles, and the services of the
United States contractors and technicians.
Restoration of damaged and destroyed electric
utilities and communications systems must also be
given a high priority. Substantial imports of
electrical machinery and communications equip-
ment will be required.
Agriculture, which is the basis of the Greek
economy, depends heavily upon the various flood-
control, irrigation, and water-control facilities.
During the war these facilities were neglected by
the invaders, and tlie equipment necessary to keep
them in good condition was either destroyed or
removed. The dams, dikes, canals, and ditches
have, as a result, deteriorated very seriously, and
unless they can be reclaimed very soon further
deterioration and loss of agricultural output is
inevitable. For example, the Thessalonica Plains
project, which drains and irrigates an area of
roughly 460 square miles along the Axios River in
north-central Greece, has been virtually without
maintenance since the beginning of the war. In
order to reclaim this vital project, such pieces of
Department of State Bulletin
AID TO GREECE AND TURKEY
equipment as hydraulic dredges, drag lines, bull-
dozers, and tractors are needed as well as main-
tenance equipment for these items. Such equip-
ment will have to be imported.
During the war much industrial plant in Greece
was idle and the Nazis removed and destroyed
considerable industrial equipment. Mines suf-
fered very seriously. Imports of industrial equip-
ment will be required to permit Greek production
to return to pre-war levels.
Any visitor to rural Greece is impressed by the
wanton destruction of rural dwellings, of which
over 100,000 were destroj'ed and 50,000 badly dam-
aged. The foreign-exchange costs of beginning
the restoration of this tremendous loss are a small
but vital element in the job.
Aside from the problem of basic reconstruction,
Greece urgently needs further assistance in the
rehabilitation of agriculture. UNRRA has made
a start by the importation of some livestock, farm
machinery, food-processing equipment, and the
like. This program includes 20 million dollars
for this important task.
This 20 million dollars and the 50 million dollars
for reconstruction are to cover the cost of foreign
goods and services entering directly into these
l^rograms. But in order to carry out the recon-
struction program it will also be necessary to
employ local labor and materials. Greek labor
and raw-material producers will be paid in
drachmas. However, the Greek laborer or raw-
material producer cannot be expected to make
available his services or products unless he can
convert the drachma he receives into the goods and
services required by himself and his family.
Even with the additional supplies of food and
clothing to be provided for abroad under the direct
relief progi-am, the total supply of goods and serv-
ices available for purchase will be barely sufficient
to permit holders of drachmas to convert them into
the necessities of life. Large drachma payments
must be made in cormection with the proposed re-
construction program, and such increased drachma
purchasing power will exert a tremendous pressure
upon the limited supply of goods. In such cir-
cumstances, each new drachma recipient would bid
against his neighbor for available supplies, and the
result would be a rapid rise in prices. Wage earn-
ers and raw-material producers would soon find
that their drachma receipts were inadequate to
produce the necessities of life, and they would de-
mand increased payment for their labor and prod-
ucts. If the basic shortage of goods were not
remedied, increased wages and prices to producers
would not enable them to procure the goods they
require, but would only lead to more frantic com-
petitive bidding and further price rises. Price
controls and rationing are only temporary pallia-
tives under such circumstances, and experience has
shown that the effective operation of controls of
this nature cannot be expected in Greece under such
circumstances.
It is our firm opinion that the reconstruction pro-
gram in Greece cannot be carried out successfully
unless consumers' goods are made available from
abroad, roughly equivalent in value to the drachma
expenditures in connection therewith. The best
available estimate of these expenditures is 80 mil-
lion dollars. Greece itself is the cheapest source of
the labor and of much of the raw materials re-
quired for the reconstruction program, and of
course such labor and materials should be utilized
to the utmost. The precise method of carrying out
an integrated program of reconstruction, includ-
ing the procurement and distribution of the neces-
sary consumers' goods, should, I believe, be left
for determination by the American mission which
it is proposed to send to Greece.
To summarize: The 150-million-dollar civilian
program for Greece consists of the 20-million-dol-
lar agricultural rehabilitation program and a re-
construction program which includes 50 million
dollars for foreign-exchange costs and 80 million
dollars for internal costs.
I should like to emphasize that all the estimates
I have given you are necessarily rough approxima-
tions and that it is essential that flexibility be
maintained, so that adjustments between various
portions of the program can be made in the light
of experience and developments which cannot now
be anticipated in detail.
The funds made available under this program
must, of course, be utilized to best advantage so
that our objectives may be achieved efficiently and
economically. It will be necessary to send a civil-
ian mission to Greece to administer this Govern-
ment's interest in the program. We cannot
now say what the size of such a mission would be,
or how it would be organized ; these questions are
still under study.
It is clear that we should not make any ex-
penditures for the Greek program until specific
Supplement, May 4, 1947
841
AID TO GREECE AND TURKEY
plans have been developed and have been approved
by us. The mission in Greece would be in a posi-
tion to carry a large part of the responsibility for
this activity. It is also clear that the expenditure
in Greece of funds that may be made available to
the Greek Government must be subject to control
by our mission there.
Furthermore, it is my considered opinion that in
the United States any purchases with these funds
should be made through the procurement agencies
of this Government, or, if made otherwise, should
be subject to careful supervision and strict control.
Finally, we must see to it that competent per-
sons are sent to Greece to insure the development
of controls at key points and to supervise their ap-
plication. Time is so short, and the expenditures
involved so great, that we must be assured that
sound policies will be adopted and effectively ad-
ministered in matters such as the following: fiscal
metliods; a modern tax structure; strict husband-
ing and control of the foreign-exchange earnings
of the Greek people; conservation of remaining
gold resources; a restriction on unessential im-
ports; and the expansion of Greece's exports.
These measures, no less than the financial ad-
vances we are proposing, are necessary to put
Greece back on her feet.
I have stressed the economic situation in Greece
because it is one of crisis. General economic con-
ditions in Turkey are more favorable than those
in Greece. In fact the latest information avail-
able indicates that Turkey has sufficient resources
to finance the essential requirements of her civilian
economy. It also appears that Turkey should in
due time be able to procure through existing credit
channels part of the additional resources required
for a program of general economic development.
However, Turkey urgently needs military and
other capital equipment which she herself can-
not at present procure without seriously impairing
her general economic position. The necessity for
assisting Turkey in bearing the burdens of her
military defense is very real, and an immediate be-
ginning should be made. The 100 million dollars
recommended for Turkey will be devoted to equip-
ment for the Turkish armed forces and for projects
such as the rehabilitation of the Turkish railroad
system, which will contribute most directly to the
maintenance of security in Turkey.
The bill now before you provides that the Presi-
dent shall determine the terms upon which assist-
ance will be furnished to Greece and Turkey from
the appropriations authorized. These terms may
be loans, credits, grants, or otherwise. In view of
the unusual conditions confronting us in this situa-
tion, I do not believe that it would be wise or prac-
tical to specify now what these terms might be.
Any set of financial relationships, to be sound,
must be related to the realities and objectives of the
case. I believe that assistance for military pur-
poses, being essential to our own security, and not
in itself creating the wherewithal to repay, should
be made as a clear grant.
Financial assistance for civilian purposes would
appear to fall in a somewhat different category.
Repayment could be sought when the direct effect
of the financial aid was to create the ability on the
part of the receiving country to meet such obliga-
tions in foreign exchange. However, I do not be-
lieve that we should create financial obligations for
which there is no reasonable prospect of repayment.
STATEMENT BY AMBASSADOR PORTER'
The majority of the people of Greece are, in my
opinion, eager to perfect their democratic institu-
tions if given the opportunity. They need mate-
rial assistance and technical guidance if they are
to function as a free, self-sustaining democracy.
Greece has the resources for development and the
capacity to exploit those resources, once the coun-
try has gotten on its feet and is started on the road
'Made before the House Committee on Foreign Affairs
on Mar. 28, 1947, and released to the press on the same
date. Paul A. Porter is Chief of the American Economic
Mission to Greece, with personal rank of Ambassador.
to recovery. In a two months' intensive survey
into Greek economic problems, I developed ad-
miration for the democratic spirit of the average
Greek citizen. Tliese people are industrious,
frugal, and devoted to the basic ideals of freedom.
The problem is to create conditions in which this
spirit can find its fullest democratic expression.
It is not easy, but it can be done. Greece can, with
our help, become a peaceful, democratic society
with the living standards of her people above the
present precarious level of mere survival. If this
country assumes obligations in this regard, I have
842
Departmenf of State Bulletin
AID TO GREECE AND TURKEY
confidence that Greece will not forfeit what I be-
lieve to be hei' last clear chance for independence.
The American Economic Mission to Gi'eece ar-
rived in Athens on January 18. With a small staff
we immediately began our inquiries into Greek
economic problems. I would like to submit to this
Committee some of our findings and conclusions as
well as a description of the immediate economic
crisis which now confronts Greece.
Mr. Acheson and Mr. Clayton have told you
of the immediacy of Greece's present internal
crisis. I would lilie to describe its economic aspects
with greater particularity: 1946 was a year of
theoretical stability for Greece; the inflationary
sweep of 1945 was slowed down and from time to
time halted. The two main factors operating to
produce this condition were the quantity of
UNRRA supplies fed into the economy and the
free sale of gold by the Bank of Greece. These
factors are no longer present. UNRRA supplies
are diminishing and gold reserves are exhausted.
As a result there now exists a new and immediate
threat of inflation of disastrous proportions within
Greece unless measures are taken at once to stop
it. In a sense Greece is now living on borrowed
time — on the hope of prompt American assistance.
In my opinion economic conditions now serious
would deteriorate with great rapidity if it should
become apparent that there was serious doubt that
the United States was coming to her rescue.
Here are the principal elements of the imme-
diate inflationary threat in Greece:
1. The tentative budget estimates of the Minis-
ter of Finance for the fiscal year beginning April
1 indicate a deficit, including the military, of
about 1,682 billion drachma ($287,000,000). This
is over three times the amount of currency now in
circulation. The debt of the Greek Government
to the Bank of Greece inci-eased by 77 billion
drachma during the month of February alone
(about $9,600,000, using the rate of 8,000 drachma
to $1.00).
2. With the cessation of the flow of UNRRA
goods into the market and a restricted import pro-
gram necessitated by lack of foreign exchange, the
I'eduction of available consumer supplies, entirely
apart from the threat of inflation arising from
the budget deficit, would cause an immediate and
substantial increase in the internal price level
which is already out of line with general world
prices.
Supplemenf, May 4, 1947
741728 — 47 3
3. The gold sovereign reserves of the Bank of
Greece totaled only 101,000 on March 1 and the
prospect of replenishment is remote. In the ab-
sence of immetliate corrective steps including out-
side assistance, there is no hope of curi-eucy sta-
bilization, and the printing presses would resume
without restraint.
4. Because of these and other circumstances, the
Government is now faced with a series of new
wage demands and increasing signs of labor un-
rest. Thus, in the absence of some immediate
steps, there is the imminent threat of wage in-
flation added to the prospect of budget inflation.
The American Economic Mission was con-
fronted with some of these conditions soon after
its arrival in Greece, and although our purpose
was primarily to analyze the current and longer-
range problems, we were requested by the present
Government of National Cooperation to suggest
measures to meet the immediate crisis. In co-
operation with the Currency Committee, the most
effective instrument of Greek economic policy, we
submitted certain emergency proposals. To meet
the situation Mr. Maximos, the Prime Minister, is-
sued a declaration of economic policy of the pres-
ent government, which in the official translation
reads as follows:
a. Avoidance of inflation and protection of
the national currency by every sacrifice in close
cooperation with the Currency Committee.
h. Regulation of imports and exports under
close observation by the central organization.
c. Enforcement of every restriction and con-
trol which can be considered necessary for the
Greek economy to retui'n to normal.
d. Taking of any measure which is necessary
for the compression of price levels and the ex-
tension of ration cards to all basic goods for the
maintenance of the population.
e. Reorganization of banking credits for
achieving decisive assistance towards produc-
tion.
/. Use of all-Greek labor for reconstruction.
g. Complete cooperation with the Porter Mis-
sion and the British Economic Mission and the
granting to them of all available data so as to
keep them well informed of the economic and
financial situation of the country.
h. Suspension of appointments to public posts
excluding those which, by Cabinet decision, are
843
AID TO GREECE AND TURKEY
considered unavoidable for the smooth running
of the state.
i. Dismissal of incompetent civil servants.
I cite Mr. Maximos' declaration of economic
policy (inly for the purpose of indicating that there
is a recog)iition by the present Goveinment that
firm measures will be necessary if inflation is to be
avoided and Greece is to make the maximum use of
her own resources. However, for any program of
this general character to be made specific and effec-
tive, the immediate assistance of American per-
sonnel is, in my judgment, absolutely indispensable.
This is recognized not only by the present Greek
Government but by the leaders of the opposition
parties as well. Constant attention and super-
vision must be exercised to make certain that these
general policies are given content and made to
woik.
If the Greek Government succeeds in staving off
the immediate crisis — and I think it can if assist-
ance from the United States is promptly forth-
coming— there remain the longer-term aspects of
financing essential imports and the problems of
reconstruction and recovery.
Greece's international financial position is des-
perate. UNRRA imports are rapidly terminat-
ing, and tlfe Greek nation simply does not iiave the
resources to obtain foreign exchange to meet the
essential import i-equirements. The Greek Gov-
ernment submitted to us their estimates that, on
an austerity basis, imports of at least $350,000,000
would be essential during 1947; our estimates are
somewhat lower. Against these demands the
Bank of Greece had, on February 5, foreign ex-
change in gold, dollars, and sterling of approxi-
mately $1(^,000,000, of which gold and dollars ac-
counted for only $12,500,000. Such sterling hold-
ings are not fully convertible into dollars.
Thus, it is obvious that outside assistance is re-
quired for the survival of a democratic Greek state.
But we must do more than that if we are to go
further than merely postponing collapse; we must
make available funds for reconstruction and re-
habilitation. Wliile Greece has done some restora-
tion of ports and railways since liberation, in gen-
eral the country has made little progress in re-
building.
The relief program will only supply bare sub-
sistence needs, and even then there is the danger
of starvation in some areas in Greece unless proper
844
distribution is assured. The additional funds
contemplated for rehabilitation and reconstruc-
tion should enable Greece to recover to the extent
that outside relief for minimum human needs,
year after year, will no longer be necessary. That
is what the program as explained by Mr. Clayton
is designed to achieve, and it checks completely
with the findings we have made on the spot.
It is apparent that the funds available to Greece
from the post-UNRRA relief measure will only
serve to keep the Greek people alive at a dietary
level of something less than 2,200 calories. Addi-
tional economic assistance in the amount of $150,-
000,000 is the minimum which we believe necessary
to have an effective program of reconstruction
and rehabilitation with the objective of achieving
a reasonably self-supporting economy in a reason-
able length of time. This, of course, is apart
from the financial aid for the military establish-
ment.
It should be borne in mind that the Greek pre-
war economy was not capable of sustaining a
military organization other than for police duties
without severe pressure on the extremely low
standard of living. With real income, possibly
around three fourths of pre-war during 1946, it is
obvious that almost the entire burden of the mili-
tary must be borne from abroad if the economy
is not to regress, much less progress.
It is also important to bear in mind that the
total amount of American assistance proposed, in-
cluding relief, military aid, and reconstruction
assistance is not substantially different from the
total of UNRRA assistance to Greece and the
British military subsidy during 1946. The pro-
gram proposed by the Department of State to
June 30, 1948 provides a cumulative total of
$350,000,000. The best e.stimate of UNRRA dis-
tribution of supplies, plus the British military
subsidy, is a])proximately $330,000,000 for the
calendar year 1946.
To emphasize further that this progi-am re-
quires Greece to exercise the maximum of self-
help in 1947, the estimates on which the amount
of assistance is based call for considerably more
than twice the volume of exports in 1947 over last
year. The best estimates of Greek exports for
1946, taken from UNRRA, the Bank of Greece,
and other sources, indicate a total volume of around
$40,000,000. The balance of payments upon which
the new program of American aid is based requires
Department of State Bulletin
AID TO GREECE AND TURKEY
export at the level of about $75,000,000 for the
calendar year 1947.
I think that the goals which have been set can
be reached with proper effort and a realistic man-
agement of export possibilities. For example, we
have estimated that Greece will export $37,000,000
worth of tobacco during the current year, or more
than the unadjusted dollar value of tobacco ex-
ports in 1935. With the northern European mar-
kets not yet available, this volume of tobacco ex-
ports may be high, but we think it can be done.
We have also estimated that Greece should export
$20,000,000 worth of olive oil on current account
during 1947. At present there is an embargo on
olive oil, but we do not feel that this target is too
high if the Greek Government will devote its ener-
gies to achieving this goal.
In addition we have included in extraordinary
receipts the sum of $14,000,000 from United States
surplus as a source of Greece's essential import re-
quirements ffH" 1947. I do not believe tliis figure
to be high but, taking into account problems of
transportation, availabilities, and the time lag, it
is certainly not conservative.
It is thus apparent that this program of Ameri-
can financial aid to Greece will do no more than
place Greece on an austerity basis and lay the
basis for reconstruction. Hence, it will still be
necessary for the Greek Government to use all ef-
fective measures to mobilize her own resources.
It will be necessary for Gieece to adopt a plan of
vigorous fiscal and taxation reforms; to develop a
tight system of control of imports, development of
exports, control of foreign exchange, and such
other measures as are necessary to assure that es-
sential commodities flow through distribution
channels to the farmers, workers, and producers
who need them. Here again I must emphasize the
necessity of American technical experts to provide
advice and guidance in the development and appli-
cation of such measures, and I repeat that the
Greek Government has accepted in principle the
necessity of such a program and requested such
American assistance.
The pi'ograni now proposed permits the use of
funds advanced for internal expenditures as well
as the foreign exchange costs of reconstruction.
In my judgment this is indispensable if the nec-
essary amount of reconstruction is even to begin.
Because of internal disruptions and the great
devastation wrought by the war and occupation,
Supplement, May 4, 1947
Greece has not been able to provide the local costs
of reconstruction. Even though some capital
equipment was available, the Greek Government
was frequently faced with the difficult choice of
increasing the note issue to finance internal costs
or letting reconstruction lag. I have seen road-
building equipment and machine tools on the docks
at Piraeus which could not be utilized because the
Government was unable to make provision for
credits or allot drachmae for their use. Because
of the inflationary potential of additional cur-
rency issue and the appalling shortages of essential
commodities, the decision usually was dictated by
budgetary considerations and thus reconstruction
was sacrificed.
Such a program would go a long way towards
dispelling the inflation phobia which has infected
the economic system of the country. In addition,
it would serve to encourage Greek liquid capital
held in private hands to seek investment outlets.
I was told on every hand by industrialists in the
Athens-Piraeus area, as well as by peasants in
northern Macedonia, that the incentive to rebuild
would be lacking until internal security was
achieved and the fear of inflation removed. There
is no way to measure the amount of private capital
available for investment purposes, but I have the
belief that once it is felt that stable economic and
political conditions are likely to be achieved, local
private initiative will make an important contribu-
tion to Greek recovery.
Mr. Clayton described to you some of the plans
by which United States personnel in Greece would
insure a proper expenditure of funds and under-
take to see that adequate measures are taken by
the Greek Government for the use of Greece's own
resources for recovery. It is my view that such
an American Recovery Mission should, within the
limits set forth by Congress and the President and
agreed to by the Government of Greece, have some
flexibility in developing the techniques appropri-
ate to achieve desired objectives.
The functions of such a Mission primarily
would be to help in the formulation and adminis-
tration of government fiscal policies, to advise the
Greek Government on carrying out measures for
the employment of the maximum amount of Greek
resources in the recovery program, and finally to
recommend to the U.S. Government revisions in
the amounts of U.S. assistance needed and in the
845
AID 70 GREECE AND TURKEY
conditions which should be attached to such
assistance.
The reforms needed in the public administration
of Greece are numei'ous. Technical expeiis as-
signed to this problem by the Mission should be
able to devise more effective procedures in gov-
ernment operations and to imjarove quality and
performance of the persomiel. Many reforms will
take a period of time to achieve, but I believe that
with the selection of a proper Mission its influences
can be decisive in developing and making effective
the measures essential to Greek recovery.
I would recommend that the Mission have power,
primarily advisory in character, in relation to the
Greek Government, but that this power should be
supported by two sanctions : first, the authority to
recommend to the U.S. Government that assistance
be withdrawn or reduced in the event of the failure
of substantial compliance with any of the condi-
tions; and second, the publication by the Mis-
sion of quarterly reports on the progress of Greek
recovery, such reports being made available to the
Government and the people of Greece, as well as to
the Government and people of the United States.
The Mission should advise on the formulation
of Greek fiscal policies. The Currency Committee,
with power over additional currency issues, should
be continued and strengthened. As an agency of
the Greek Government this Committee should
screen all expenditures before they are presented
to the American Recovery Mission for approval.
An Office of the Foreign Trade Administrator,
with an American as Administrator, should be
created within the Greek Government with final
power over all imports and exports. This Admin-
istrator as an employee of the Greek Government
should be charged with the responsibility of carry-
ing out the foreign trade programs decided uj^on
by the Greek Government with the advice and
consent of the American Recovery Mission which
would luidertake to assure that the most effective
use is made of available foreign exchange.
The American Economic Mission which has just
returned from Greece will have detailed recom-
mendations for the consideration of the new
American group which would play such a sig-
nificant part in Greek recovery. These recom-
mendations will include specific suggestions con-
cerning reconstruction projects, tax policies,
government expenditures, banking, foreign ex-
846
change controls, control of imports, development
of exports, agricultural activities including credit
policies, industrial development, the exploitation
of fishing resources, shipping, wages and prices,
public administration, and some preliminary steps
which we believe Greece should take to qualify for
assistance from the International Bank for Recon-
struction and Development, as well as the Inter-
national Monetary Fund.
Our general conclusions on the program of re-
construction of public works include the sugges-
tion that in the selection of projects there should be
two criteria: First, they should be those which
contribute most to the general economy of the
country; and, second, they should be distributed
geographically over the whole country. The
Greek Army should be used for reconstruction
work as much as possible. The specific projects to
be undertaken should be selected by the American
Recovery Mission after consultation with the Re-
construction Board of the Greek Government.
The American Economic Mission will direct con-
sideration to a number of specific projects.
The importance of an effective program for im-
ports and exports cannot, of course, be over-
emphasized. A program of essential imports
approved by the American Recovery Mission
should be the guide for all imports. It would in-
clude requirements for an austerity civilian
economy, for the Army, for approved reconstruc-
tion and development projects, and for the con-
tinuation of the UNRRA child-feeding and ma-
laria programs. It would be little short of
criminal if the child-feeding program were dis-
continued. This activity was begun in Greece by
the Swiss Mission of the International Red Cross
during the occupation. It has since been developed
and expanded by UNRRA, but in the absence of
outside assistance the program must be discon-
tinued at the end of the current school semester, or
about June 1. I will not burden the Committee
with the details of this program, as I am certain
you recognize its obvious benefits. This and other
essential welfare activities must go hand-in-hand
with reconstruction.
Finally, I wish to express the view that if the
United States is to assume this responsibility it
must be done in a manner that will demonstrate
to the world that the objectives and policies of
Department of State Bulletin
AID TO GREECE AND TURKEY
democracy are superior to those of any other
system. It is obvious to all that Greece cannot
work out her own destiny alone. She has the re-
sources, the labor supply, and the will to do it
with our assistance. The record of Greece in re-
sisting oppression entitles her to that chance.
STATEMENT BY ACTING SECRETARY ACHESONi
On February 24 the British Ambassador, in a
note dated February 21,^ informed the Department
of State that as of March 31 the British Govern-
ment would be obliged to discontinue the financial,
economic, and advisory assistance which it has
been giving to Greece and Turkey. Within a
week the President informed congressional leaders
of this situation and advised with them on the
course of action which the Government should
take. On March 12 the President informed Con-
gress and the nation of the situation and recom-
mended that this Government extend aid to Greece
and Turkey.
On March 3 we received from the Greek Gov-
ernment an urgent appeal for financial, economic,
and expert assistance.' Assistance is imperative,
the Greek Government says, if Greece is to survive
as a free nation.
The Turkish Government has on various occa-
sions applied to the United States for financial
aid, but this Government has not had the facilities
for responding to those requests. Since British
aid is not available, the needs of Turkey for
assistance are greatly increased.
This, then, is the situation with which we have
to deal. Greece and Turkey are in urgent need
of aid, and there is no other country to which
they may turn.
The problem with which we are faced has a
history and a background. Greece's difficulties
are not new. But they have become acute as a
result of special circumstances.
Long before the war Greece had a hard time
making ends meet. Her poverty of natural re-
sources is so great that she has always needed
more imports than she could pay for with exports.
Only by hand-to-mouth contriving has she been
able to maintain a precarious balance in her inter-
national economic position. In the past much of
her export trade naturally went to Central Euro-
pean markets, particularly to Germany ; during the
thirties she was forced into closer dependence on
Germany through clearing agreements and other
instruments of Nazi economic warfare.
And then came the Italian invasion, the Ger-
man invasion, four years of cruel enemy occupa-
tion, and the scorching of her earth by the retreat-
ing enemy. Perhaps no other country in the
world has suffered greater destruction of its physi-
cal resources than Greece.
I should like to focus your attention upon four
conditions which were found to exist at the time
of Greece's liberation :
1. Physical destruction had catastrophically
impaired Greece's ability to produce, either for
home consumption or for export;
2. Greece's entire fiscal system had been de-
stroyed ;
3. The Greek civil service and administrative
system had been gravely impaired through the
starvation and death of many of its personnel,
undermined by infiltration of undesirable ele-
ments, demoralized by inflation and the resultant
scramble for existence; and
4. The authority of the Greek state was threat-
ened by several thousand armed men who defied,
and continue to defy, it in certain areas of the
country. This situation in part grew out of the
arming of guerrilla forces during the war of lib-
eration. Many of these people have retained their
weapons and certain bands now use them fighting
to resolve the political differences that might
otherwise be peaceably settled. The Greek Gov-
ernment has charged before the Security Council
of the United Nations that the insurgent groups
operating in northern Greece are assisted from
outside Greece by supplies and training in neigh-
boring countries. A Commission appointed by
the Security Council of the United Nations is now
investigating these charges.
In the period of more than two years since its
liberation, Greece has received substantial relief
' Made before the Senate Foreign Relations Committee
on Mar. 24, 1947, and released to the press on the same
date.
'Not printed.
' BuixF.TiN of Mar. 16, 1947, p. 493.
Supplemenf, May 4, 1947
847
AID TO GREECE AND TURKEY
assistance from the United Nations Eelief and
Rehabilitation Administration. Great Britain
has also extended very substantial aid to Greece
in an effort to supplement the relief and recon-
struction efforts of UNRRA, and to oi'ganize and
equip the Greek Army.
However, at the end of this current month out-
side assistance to Greece is scheduled to stop.
UNRRA is going out of business in Greece, and
British asistance, for reasons of which you are
aware, is to be discontinued.
The cessation of outside aid to Greece means
immediate crisis. Unless help is forthcoming
from some other quarter, Greece's economy will
quickly collapse, very possibly carrying away with
it the authority of the Government and its power
to maintain order and the essential services.
The information reported to us by the Greek and
British Governments in regard to conditions in
Greece has been corroborated by reports we have
received from the American Ambassador in Greece
and from the American economic mission which
has been in Greece at the invitation of the Greek
Government, inquiring into economic conditions
there.
Essential imports for civilians and for the Army
under the circumstances can continue for only a
few weeks. Two weeks ago the dollar resources
available to Greece were only $14,000,000 — enough
for one month's imports of food and other essen-
tials from the United States and other countries.
If imports should cease, the price of such goods as
are available would very rapidly reach astronomi-
cal figures. This is inflation.' Its result in a
country so dependent upon imports would be
paralysis of the Government and of economic life.
It would also very probably mean the end of
Greek freedom and independence.
The armed bands in the north, under Communist
leadership, are already fighting. In the event of
economic collapse and Government paralysis,
these bands would undoubtedly increase in
strength until they took over Greece and instituted
a totalitarian government similar to those prevail-
ing in countries to the north of Greece. The rule
of an armed minority would fasten itself upon the
people of Greece.
In this critical situation Greece has urgently
asked the United States for help. She requests
financial assistance for the following purposes:
(1) to enable her to carry on essential imports of
food, clothing, and fuel necessary for the sub-
sistence of her people; (2) to enable her to or-
ganize and equip her army in such a way that it
will be able to restore order throughout her terri-
tory; and (3) to enable her to begin the process of
reconstruction hj putting her production facili-
ties in order. (4) Finally, Greece requests the aid
of experienced American administrative, eco-
nomic, and technical personnel to assure the effec-
tive utilization of whatever financial aid may be
extended her and to help her to begin the recon-
struction of her own economy and public
administration.
The situation in Turkey is substantially differ-
ent, but Turkey also needs our help. The Turkish
Army has been mobilized since the beginning of
World War II, and this has put a severe strain
upon the national economy. During the war Tur-
key received substantial assistance from Great
Britain and the United States, which helped her
to carry this load.
Today the Turkish economy is no longer able to
carry the full load required for its national de-
fense and at the same time proceed with that ec-
onomic development which is necessary to keep the
country in sound condition. With some help from
the United States, and further assistance which
Turkey may be able to negotiate with United Na-
tions financial organs, Turkey should be in a posi-
tion to continue the development of her own re-
sources and increase her productivity, while at
the same time maintaining her national defenses
at a level necessary to protect her freedom and
independence.
The present proposals do not include our send-
ing troops to Greece or Turkey. We have not
been asked to do so. We do not foresee any need
to do so. And we do not intend to do so. We have
no understandings with either Greece or Turkey,
oral or otherwise, in regard to the sending of troops
to those countries.
Our military missions to Greece and Turkey will
be small ones, whose task will probably be to find
out the local needs for military equipment and to
see to it that needed material is delivered and in
the hands of the proper authorities. Our missions
will consist only of observers and advisers.
In Greece some British troops remain who landed
there for liberation purposes. The British Gov-
848
Department of State Bulletin
AID TO GREECE AND TURKEY
ernment has recently announced its intention of
•withdrawing its troops in the near future. There
is also in Greece a British military mission whose
members act as advisers and instructors with the
Greek military forces.
Questions submitted to the Department of State
appear to assume that the presence of those forces
will mean that the British Government will direct
the policies of the Greek Government while the
United States supplies necessary economic aid.
This is not the case.
The United States has not made any agreement
with the British Government with reference to
the implementation of the proposed plan of as-
sistance to Greece and Turkey. If the proposed
program is authorized by the Congress, its imple-
mentation will be worked out through agreements
with Greece and Turkey and with the aid of United
States personnel.
I wish to reiterate that the United States, in
undertaking aid to Greece and Turkey, is not as-
suming British obligations or underwriting Brit-
ish policy there or elsewhere. We propose, rather,
a program designed by this Government to pro-
mote stability in Greece, Turkey, and the Middle
East generally and thereby to pave the way for
peaceful and democratic development.
In the present instance we are proposing to
respond to certain requests made to us by the
Greek and Turkish Governments, and our pro-
gram is designed to assist those countries in cer-
tain announced ways. We have been asked whether
this establishes a pattern for all future requests
for American assistance.
Any requests of foreign countries for aid will
have to be considered according to the circum-
stances in each individual case. In another case we
would have to study whether the country in ques-
tion really needs assistance, whether its request is
consistent with American foreign policy, whether
the request for assistance is sincere, and whether
assistance by the United States would be effective
in meeting the problems of that country. It can-
not be assiuned, therefore, that this Government
would necessarily undertake measures in any other
country identical or even closely similar to those
proposed for Greece and Turkey.
The situation of Greece and Turkey confronts
us with only two alternatives. We can either grant
aid to those countries or we can deny that aid.
There is no possibility of putting the responsibility
for extending the aid which Greece has asked from
the United States on some other nation or upon
the United Nations.
This becomes clear when we consider the specific
problems that confront Greece today and the spe-
cific kinds of assistance that Greece has requested
from the United Nations on the one hand, and
from the United States on the other.
Let us consider first the problem arising from
outside Greece's borders. Greece has charged be-
fore the Security Council that armed bands oper-
ating within her territory are partly supplied,
trained, and given refuge in Yugoslavia, Bulgaria,
and Albania, and that these bands are moving back
and forth across the border. Greece has asked the
United Nations for help in dealing with this situa-
tion, and the Security Council has appointed a
commission which is at the present moment in-
vestigating the Greek charges on the spot. It is
expected that this commission will begin writing
its report early in April, and that report should be
ready shortly thereafter.
We do not know what the report will contain or
the action that may be taken by the United Nations
upon it. We hope and believe that United Nations
action in this matter will result in the cessation of
disturbances along Greece's northern borders.
Such a result would be a most vital contribution
to the situation in Greece and make possible the
task of stabilization and rehabilitation. It would
not be a substitute for the assistance which Greece
has asked from the United States. More is needed
to deal with internal disorder and economic break-
down.
The second pi-oblem confronting the Greek Gov-
ernment is the need for supplies and funds to enable
it to cope with its internal difficulties, namely, the
restoration of order in the coimtry and the averting
of economic collapse. The United Nations Relief
and Rehabilitation Administration and the British
Government have been helping Greece with these
particular problems, and the present crisis has
arisen because those two supports must be with-
drawn.
To whom was Greece to turn? The Food and
Agriculture Organization of the United Nations,
which recently sent a mission to Greece, recom-
mended that the Greek Government request the
Supplement, May 4, 1947
849
AID TO GREECE AND TURKEY
Economic and Social Council of the United Na-
tions, and the United States and the United King-
dom to extend aid to it in securing funds for the
continuation of essential food and other imports to
cover the period after UNEEA's withdrawal until
expanding exports, international development
loans, and expanding production should enable
Greece to balance its international accounts.
If Greece had applied to the United Nations or
any of its related organizations, the essential ele-
ment of time would have been lost, and the end re-
sult would have been the same. The funds would
have to come primarily from the United States.
The United Nations does not of itself possess funds.
The Economic and Social Council is an advisory
body that recommends economic, financial, and
social action to member states. The International
Bank, which is just now completing its organiza-
tion, is set up primarily to make self-liquidating
loans for long-term reconstruction purposes. It
has not yet made any loans whatsoever. The Eco-
nomic Commission for Europe is still in its early
organization stage.
It may be that at some future time the United
Nations will be organized and equipped so as to
render emergency aid to member states, of the kind
now needed in Greece and Turkey. But, as the
President said, the United Nations and its related
organizations are not now in position to extend
help of the kind that is required. Even if some
organ of the United Nations should decide to rec-
ommend assistance to Greece and Turkey, it would
have eventually to turn primarily to tlie United
States for funds and supplies and technical assist-
ance. Even if the project were not blocked by the
objections of certain members of the United
Nations, much time would have been lost, and time
is of the essence.
One hundred twenty-three years ago Daniel
Webster spoke in the United States House of Eep-
resentatives in favor of a resolution looking toward
aid to Greece, which country was then striving for
her independence. Then, too, time was of the
essence. He said :
"Mr. Chairman, there are some things which, to
be well done, must be promptly done. If we even
determine to do the thing that is now proposed, we
may do it too late. Sir, I am not one of those who
are for withholding aid when it is most urgently
needed, and when the stress is past, and the aid no
longer necessary, overwhelming the sufferer with
caresses. I will not stand by and see my fellow
man drowning without stretching out a hand to
help him, till he has by his own efforts and presence
of mind reached the shore in safety, and then en-
cumber him with aid. With suffering Greece, now
is the crisis of her fate — her great, it may be, her
last struggle. Sir, while we sit here deliberating,
her destiny may be decided." *
The United Nations is an organization designed
to keep the peace and to promote friendly relations
among nations as well as orderly economic, social,
cultural, and humanitarian progress. However, it
would be a tragedy, and a travesty upon logic, if
an overestimate of the immediate powers of the
United Nations should succeed in preventing this
country from using its wealth and influence to help
create those very conditions of economic and politi-
cal stability which are necessary if the United
Nations is to develop into a stronger organization
over a period of years.
By membership in the United Nations neither
the United States nor any other country has ab-
solved itself of its responsibility for fostering
through its own action the same objectives as the
Charter sets for the United Nations.
The third problem confronting Greece is one of
expert personnel. Greece has linked this problem,
and we heartily concur, with the supply of funds.
Greece is in the most serious need of expert advice
and assistance. We believe, and we think Congress
believes, that the expenditure of American funds
in Greece and Turkey should be supervised by
American experts.
The proposals now before the Congress deal
with the emergency aspects of the problem.
In the longer range, the United Nations may be
able to take over various parts of the economic
and financial problem in Greece and Turkey. We
are giving serious study and consideration to
ways in which the United Nations may take hold
of this problem after the present emergency is
past.
I have said that the two alternatives that are
before us are to give the help requested or to deny
it. An essential step in considering the wisdom of
any policy is to look at the alternatives. What are
the probable consequences of not extending aid to
Greece and Turkey ?
* Annals of Congress (18th Cong., 1st sess.).
850
Department of State Bulletin
AID TO GREECE AND TURKEY
I have already indicated what would more than
likely happen in Greece. As the President said,
however, it is necessary only to glance at the map
to realize that the survival and integrity of Greece
is of gi-ave importance in a much wider situation.
The inexorable facts of geography link the future
of Greece and Turkey. Should the integrity and
independence of Greece be lost or compromised, the
effect upon Turkey is inevitable.
But the effect is even widei-. Consider for a
moment the situation of the countries to the east
and south of Turkey. All of them are confronted
with the accumulated problems of the past and of
the war. Some of them are just emerging into
statehood. These nations wish and should be able
to develop and maintain free institutions and
individual liberties, but untoward circumstances
may force them in the other direction. Will these
countries be able to solve the extremely difficult
problems that confront them in ways compatible
with free institutions and individual liberty ? It
is vital to our own interests to do all in our power
to help them solve their economic difficulties in
such a way that their choice will be in favor of
freedom.
I need not emphasize to you what would more
than likely be the effect on the nations in the
Middle East of a collapse in Greece and Turkey
and the installation of totalitarian regimes there.
Both from the point of view of economics and
morale, the effects upon countries to the east would
be enormous, especially if the failure in Greece and
Turkey should come about as the result of the
failure of this great democracy to come to their
aid. On the other hand, I ask you to consider the
effects on their morale and their internal develop-
ment should Greece and Turkey receive a helping
hand from the United States, the country with
which they closely associate the principles of free-
dom. It is not too much to say that the outcome
in Greece and Turkey will be watched with deep
concern throughout the vast area from the Darda-
nelles to the China Sea.
It is also being watched with deepest anxiety by
the peoples to the west, particularly the peoples of
Europe, who, as the President said, are struggling
against great difficulties to maintain their freedom
and independence while they repair the damages
of war.
As the President said, it would be an unspeak-
able tragedy if those countries which have strug-
gled so long against overwhelming odds should
lose that victory for which they sacrificed so much.
Collapse of free institutions and loss of inde-
pendence would be disastrous not only for them
but for the world. Discouragement and possible
failure would quickly be the lot of neighboring
peoples striving to maintain their freedom and
independence.
It is feared in some quarters that the proposed
United States program for Greece constitutes a
blanket endorsement of its present government.
Others have suggested that the United States make
its assistance conditicJnal on changes in the compo-
sition of the Greek Government.
As to the first point, I can do no better than to
emphasize the President's declaration that we do
not condone everything the present Greek Govern-
ment has done or will do. As to the second, I do
not think that such interference in Greek affairs
would be justified.
The present Parliament of Greece was demo-
cratically elected in an election which foreign ob-
servers agreed was fair. There can be no doubt
that it represents the majority of the Greek
people. The present Greek Cabinet contains rep-
resentatives of 85 percent of the members of the
Greek Parliament. The mere fact that Greece
has a king does not necessarily make Greece's
form of government less democratic than that of
other countries, as is shown for instance by the
Governments of Norway, Sweden, Denmark, the
Netherlands, and Great Britain.
It is not the object of our aid to Greece either
to help to maintain or to help to remove the present
Government or the King of Greece. It is our ob-
ject to help to maintain the present constitutional
system of Greece so long as the majority of Greeks
desire it, and to help Greece create conditions in
which its free institutions can develop in a more
normal fashion.
In Greece today we do not have a choice be-
tween a perfect democracy and an imperfect de-
mocracy. Tlie question is whether there shall be
any democracy at all. If the armed minorities
that now threaten Greece's political and economic
stability were to gain control, free institutions and
human freedoms would disappear and democratic
progress would come to an abrupt halt.
Supplement, May 4, 1947
741728^7 4
851
AID TO GREECE AND TURKEY
It is not claimed that all persons involved in
the present armed challenge to the Greek Govern-
ment are Communist. There are among them
many persons who honestly, but in our opinion
mistakenly, support the Communist-led forces be-
cause they do not like the present Greek Govern-
ment. The political amnesty offered by the Greek
Government offers to all the opportunity to co-
operate in making democratic Greek institutions
work.
We are planning aid to Greece with the hope and
intention that conditions will be created in which
the Greek Government can achieve more efficient
administration and perfect Its democratic proc-
esses. Moreover, we consider that the steps which
the Greek Government would take in carrying
through a program of reconstruction would nec-
essarily contribute to this result.
It is charged that the composition of the present
Greek Parliament and Government was effected by
the fears and crises of the period in which the
election was held. This may be true. It would be
strange if it were not. But it is also true that the
help which we now propose will create a greater
degree of economic stability and a greater measure
of fi-eedom from fear. Greek political processes
under Greece's constitutional system will thus op-
erate under greatly improved conditions, and in
those improved conditions the Greek people will
have ample opportunity to register any changes
that may occur in their will.
Since our primary purpose is to help people
who are struggling to maintain their independence
and their right to democratic development, we
would not of course want to continue this aid if
we should find that our efforts were being frus-
trated by anti-democratic practices.
I want to make it clear that the aid we propose
to extend to Greece and Turkey has been requested
by those countries and cannot by any fair inter-
pretation be considered as interference in the af-
fairs of other countries. Our aid will not be
continued any longer than it may be needed or
wanted by those countries.
One final word. In recent discussion of these
proposals the question has been put to me whether
they contain the possibility of friction which might
lead to war. I think that quite the opposite is true.
These proposals are designed to increase the sta-
bility of, and to further the opportunity for demo-
cratic development in, two countries most impor-
tant to the world community. These are not acts
which lead to war.
Thej' lead in the other direction. They help to
maintain the integrity and independence — what
the United Nations Charter calls the "sovereign
equality" — of states. That is one of the principles
upon which the whole effort to organize the world
for peace is founded.
STATEMENT BY UNDER SECRETARY CLAYTON >
The general political and military situation in
Greece and Turkey has already been outlined by
Secretaries Acheson, Patterson, and Forrestal.
I should like to discuss with you the economic
position of the two countries and the program
which we propose for dealing with the situation.
Greece today has virtually run out of money to
continue purchases of food and other essentials of
life. The gold and dollar exchange resources
available to her Government two weeks ago were
only $14,000,000. This amount — which even now
is insufficient for working purposes — -would
scarcely pay for one month's imports of food and
' Made before the Senate Foreign Relations Committee
on Mar. 25, 1947, and released to the press on the same
date.
other essentials from the United States and other
dollar areas. Greece has substantially larger ster-
ling balances, which, however, cannot be used in
the near future for the purchase of foods and most
other urgently needed supplies.
The bottom of the barrel is clearly in sight I
Greece is in serious danger of a financial and an
economic collapse of a widespread character.
Hunger would face her long-suffering people.
The organization of her domestic economy and
foreign trade would disintegrate. The Govern-
ment, lacking foreign resources to deal with the
situation, would be unable to continue present
efforts to maintain internal security — efforts which
have not yet been strong enough to eradicate per-
sistent guerrilla operations.
852
Deparfment of Stale Bulletin
AID TO GREECE AND TURKEY
The situation which faces us is the result of
deep-seated causes which I can only briefly indi-
cate.
Greece has always been a poor country, one of
the poorest of Europe. Much of her soil is rocky,
barren, and dry. The density of her population
with respect to arable land is very high. The war
left Greece one of the worst-devastated countries
in the world. Railroads and ports were thor-
oughly wrecked and roads degenerated into a
series of potholes. Three quarters of the merchant
fleet was sunk. The livestock population was
halved, and over 100,000 houses were burned or
destroyed. The damage to human capital from
malnutrition was no less appalling. These are
heavy blows, from which Greece will not fully
recover for many years.
The Nazi occupation had equally devastating
effects in disnipting economic life. The flow of
imports virtually ceased. The monetary system
was wrecked by the astronomical outpourings of
the printing presses. In fact the Greek Govern-
ment was compelled, upon its return, to abandon
the old currency and establish a new one. Con-
version was decreed in November 1944 at the rate
of 50 billion old to 1 new drachma. This wiped
out bank deposits and destroyed the value of
Greek Government bonds and other obligations.
On liberation the machinery of government was
disorganized and the fiscal position appalling.
The tax structure had collapsed. At the same
time the Government faced greatly increased
financial burdens. The Greeks' brave fight to
preserve their independence had greatly increased
the number of widows, orphans, and disabled per-
sons entitled to pensions. Moreover, unsettled
political conditions placed a further heavy burden
on the budget for military needs, even though the
British Government made a substantial contribu-
tion in this respect.
Since liberation the Greek Government has been
faced with an unmanageable budget deficit. Lack
of confidence in the currency and credit of the
Government has made it impossible to float any
internal bond issues since the drastic currency
conversion of November 1944. Further, there have
been virtually no savings in the form of bank de-
posits. Consequently, neither the banks nor the
Government have been able to supply essential
credits to finance rehabilitation and reconstruction
without vastly increasing inflationary pressures.
As a result, reconstruction has been greatly re-
tarded. The Government has covered the deficit
by currency issues. In these circumstances, how-
ever, it has not been in a position to make the large
outlays of local currency needed to pay for labor
and local materials essential to reconstruction.
In an effort to attain stability in the value of
the drachma the Government resorted to the ex-
pedient of selling gold sovereigns at premium
rates. While this practice may have had some
effect in stabilizing the drachma, it has also helped
to deplete the gold and foreign-exchange reserves
of the Government,
In the last three months the economic outlook in
Greece has deteriorated very seriously. Industrial
production has slowed down. Prices are threaten-
ing to go up still higher. UNRRA imports have
tapered off and will soon stop entirely. Beyond
this, the financial and military assistance hereto-
fore provided by the British Government is shortly
to be withdrawn.
The assistance heretofore provided by UNRRA
and the British has succeeded in preventing actual
starvation. It has been far from sufficient to re-
store Greece to a position where she could become
self-su2?porting. Greece now needs substantial
outside aid if suffering and political turmoil are to
be avoided. Such assistance can only come from
the United States in the time and in the amount
required.
I shall endeavor to outline the program of as-
sistance which is proposed. The Congress has
already been advised that with the termination of
UNRRA shipments Greece will require minimum
relief aid of $50,000,000 if serious malnutrition
and further retrogression in the minimum opera-
tion of the economy are to be prevented. This sum
will be provided under the post-UNRRA relief
bill if this is approved by the Congress.
This amount of relief aid alone would not, how-
ever, be enough to restore domestic security and
provide the minimum reconstruction and stability
which are essential if Greece is again to take her
place among the self-supporting democratic na-
tions of the world.
For this purpose it is believed that approxi-
mately $300,000,000 will be necessary. Of this,
about half would be devoted to making available
to the Greek armed forces the arms, ammunition,
Supplement, May 4, 7947
853
AID TO GREECE AND TURKEY
clothing, rations, and equipment necessary to deal
effectively -with the guerrillas. The political and
military reasons for strengthening the Greek
Army have been discussed by others, but I should
like to emphasize that the establishment of mili-
tary security is an essential prerequisite to eco-
nomic stability.
With peaceful conditions assured, the people of
Gx'eece can devote their efforts to their economic
problems. Renewed hope and confidence will en-
courage private enterprise to enlarge its share in
the work of reconstruction.
The economic program envisaged will cost about
$150,000,000. Of this amount we have estimated
that imported equipment and materials for recon-
struction until June 30, 1948, will cost about $50,-
000,000. The first priority in reconstruction must
be given to the restoration of transport facilities.
Internal transportation in Greece is a serious bot-
tleneck to further recovery.
The railroad network should be restored and
sufficient rolling stock i^rovided. Greek highways
have deteriorated so seriously that the life of
vehicles is only a fraction of normal and operating
costs are excessively high. The two principal
Greek ports, Piraeus and Salonika, were vei-y
badly damaged and have been restored on only a
provisional basis.
In order to make progress toward the restora-
tion of the Greek transport system, it will be neces-
sary to import considerable quantities of rolling
stock, rails, structural steel and bridge-building
material, road machinery and earth-moving equip-
ment, some vehicles, and the services of United
States contractors and technicians.
Restoration of damaged and destroyed electric
utilities and commimications systems must also
be given a high priority. Substantial imports of
electrical machinery and commmiications equip-
ment will be required.
The various flood-control, irrigation, and water-
control projects likewise require restoration.
These facilities were neglected by the Nazi in-
vaders, and the equipment necessary to keep them
in good condition was either destroyed or re-
moved. The dams, dikes, canals, and ditches have,
as a result, deteriorated seriously, and, unless they
can be reclaimed soon, further deterioration and
loss of agricultural output is inevitable. Hy-
draulic dredges, draglines, bulldozers, and trac-
tors are needed. Such equipment will have to be
imported.
Industrial facilities in Greece need extensive re-
pair, and equipment removed or destroyed by the
Nazis needs to be replaced. Substantial imports
of industrial and mining equipment will be re-
quired to permit Greek production to return to
pre-war levels.
In addition to industrial reconstruction, Greece
urgently needs further assistance in the rehabilita-
tion of agriculture. UNRRA has made a start by
the importation of some livestock, farm machinery,
food-processing equipment, and the like. Our pro-
gram includes $20,000,000 for this important task.
This $20,000,000 and the $50,000,000 for recon-
struction are to cover the cost of foreign goods and
services entering directly into these progi'ams.
But in order to carry out the reconstruction pro-
gram it will also be necessary to employ local labor
and materials. However, the Greek laborer or
raw-material producer camiot be exjDected to make
available his services or products imless he can
convert the drachma he receives into the goods and
services he requires. Large additional drachma
payments must be made in connection with the
proposed reconstruction program. Such increased
drachma purchasmg power would exert a tre-
mendous pressure upon the limited supply of
goods. In such circumstances each recipient of
additional drachma would bid against his neigh-
bor for available supplies, and the result would be
a rapid rise in prices. Wage earners and raw-
material producers would soon find that their
dracluna receipts are inadequate to procure the
necessities of life, and they would demand in-
creased payment for their labor and products. If
the basic shortage of goods were not remedied,
increased wages and prices to producers would
not enable them to procure the goods they require
but would only lead to more frantic competitive
bidding and further price rises. Price controls
and rationing are only temporary palliatives under
such circumstances, and exjierience has shown that
the effective operation of controls of this nature
cannot be expected in Greece mider such circum-
stances.
It is our firm opinion that the reconstruction
program in Greece cannot be carried out success-
fully unless consumers' goods are made available
from abroad, roughly equivalent in value to the
854
Department of Stale Bulletin
AID TO GREECE AND TURKEY
drachma expenditures in connection therewith.
The best available estimate of these expenditures is
$80,000,000. The precise method of carrying out
an integi'ated progi-am of reconstruction, includ-
ing the procurement and distribution of the neces-
sary consumers' goods, should, I believe, be left for
determination by the American mission which it
is proposed to send to Greece.
To summarize: The $150,000,000 civilian pro-
gram for Greece consists of the $20,000,000 agri-
cultural-rehabilitation program and a reconstruc-
tion program wliich includes $50,000,000 for for-
eign-exchange costs and $80,000,000 for internal
costs. Tliese estimates are necessarily rough ap-
proximations. I should like to emphasize that
flexibility should be maintained so that adjust-
ments between various portions of the program
can be made in the light of experience and further
developments.
The fimds made available under this program
must, of course, be utilized to best advantage so
that our objectives may be achieved efficiently
and economically. It will be necessary to send a
civilian mission to Greece to administer this Gov-
ernment's interest in the program. We cannot now
say how such a mission would be organized. I
believe that it will be desirable to send a small
group, say 25 to 50, headed by a chief of outstand-
ing ability, to initiate the program, and to develop
the plans in more detail.
It is clear that we should not make any expendi-
tures for the Greek program until specific plans
have been developed, and have been approved by
us. The mission in Greece would be in a position
to carry a large part of the responsibility for this
activity. It is also clear that the expenditure in
Greece of funds that may be made available to
the Greek Government must be subject to control
by our mission there.
Furthermore, it is my considered opinion that
in the United States any purchases with these
funds should be made through the procurement
agencies of this Government, or, if made other-
wise, should be subject to careful supervision and
strict control.
Finally, we must see to it that competent per-
sons are sent to Greece to insure the development
of controls at key points and to supervise their
application. We must be assui'ed that sound poli-
cies will be adopted and effectively administered
in matters such as the following: fiscal methods;
a modern tax structure; strict husbanding and
control of the foreign-exchange earnings of the
Greek people; conservation of remaining gold re-
sources; a restriction on unessential imports; and
the expansion of Greece's exports. These meas-
ures are necessary to enable Greece to achieve
stability.
I have stressed the economic situation in Greece
because it is one of crisis. General economic con-
ditions in Turkey are more favorable than those
in Greece.
Turkey has sufficient current foreign-exchange
earnings to finance the importation of the normal
requirements of the civilian economy. Turkey
also has about $245,000,000 in gold and foreign
exchange largely accumulated during the war un-
der circumstances which will no longer prevail.
The existence of this reserve has contributed in
large part to the maintenance of confidence in the
Turkish currency and avoidance of strong infla-
tionary tendencies. This reserve also helps to give
Turkey a credit standing which should enable her
to secure, through existing credit channels, a por-
tion of the funds she needs for general economic
development. It should not be assumed, however,
that Turkey will continue to add to her foreign-
exchange reserves indefinitely in view of the un-
usually favorable conditions which existed for her
during the war.
If Turkey has to spend large amomits of for-
eign exchange for strengthening her military de-
fenses, she can accomplish this, if at all, only at
the exponse of a serious reduction in her currency
reserves and curtailment of civilian imports which
would seriously react on her domestic economy.
This development would impair the credit stand-
ing upon which Turkey depends for obtaining
financial assistance for general economic de-
velopment.
I want to emphasize that none of the $100,-
000,000 recommended for Turkey is for normal
civilian supply purposes. All of it will be ex-
pended for purposes which will contribute to the
security of Turkey. This would include equip-
ment for the Turkish armed forces and, possibly,
related projects such as rehabilitation of the Turk-
ish railroad system.
The bill now before you provides that the Presi-
dent shall determine the terms upon which assist-
Supplement, May 4, 1947
855
AID TO GREECE AND TURKEY
ance will be furnished to Greece and Turkey from
the appropriations authorized. These terms may
be loans, credits, grants, or otherwise. In view
of the unusual conditions confronting us in this
situation, I do not believe that it would be wise
or practical to specify now what these terms might
be.
I believe that the assistance provided under this
bill for military purposes, being essential to our
own security, and not in itself creating the where-
withal to repay, should be made as a clear grant.
Financial assistance for civilian purposes would
appear to fall in a somewhat dififerent category.
Repayment could be sought when the direct effect
of the financial aid was to create the ability on the
part of the receiving country to meet such obliga-
tions in foreign exchange. However, I do not be-
lieve that we should create financial obligations
for which there is no reasonable prospect of
repayment.
856
Department of State Bulletin
Discussion in Security Council of Proposed United States Program of Assistance
STATEMENT ON MARCH 28, 1947, BY U.S. REPRESENTATIVE AT THE SEAT
OF THE UNITED NATIONS'
Mr. President, I greatly appreciate the kindness
of my colleagues in having permitted a short post-
ponement of our consideration of today's business
in order that I might have a few days in Washing-
ton.
Mr. President, the United States asked that
item no. 7 of the March 21st summary statement on
matters of which the Security Council is seized, the
Greek question, be placed on the agenda of this
meeting in order that I might make a statement on
behalf of the United States concerning this ques-
tion.
The United States believes that the Security
Council should assure itself that we are agreed as
to the manner in which the Commission now in-
vestigating disturbances along the northern Greek
border can most effectively assist the Council in
our further consideration of the complaint brought
by the Greek Government.
My principal concern is that the Commission
continue its work, including its investigation along
the northern Greek border, until the Security
Council itself has disposed of the Greek case.
It is also necessary that the Commission mem-
bers, following the preparation of its first report,
come to the Seat of the United Nations and be
available to the Security Council until the termina-
tion of our consideration of the Greek complaint.
The Commission should be available to prepare
such supplementary reports as we may need. It
should be ready to undertake additional investiga-
tions if those are required.
The Commission has already been directed, in
the resolution of the Security Council of 19 De-
cember 1946, to "submit to the Security Council
at the earliest possible date a report of the facts
disclosed by its investigation".
The United States hopes that the first report of
' Made by Warren R. Austin, tbe U.S. Representative,
before the Security Council on Mar. 28, 1947, and released
to the press by the U.S. Delegation to the United Nations
on the same date.
the Commission will be prepared and forwarded
with all possible speed following the completion of
its present schedule of investigations. Under the
Commission's present schedule it will start prep-
aration of this report in Geneva on April 7.
The snows in northern Greece are melting and
winter is giving way to spring. We may expect an
intensification of the activities of guerrilla bands
operating in this area. In this situation the danger
of border violations obviously is increased.
In these circumstances the United States be-
lieves that it is of the utmost importance that the
Commission leave representation in the border area
during the time both of the preparation of its re-
port in Geneva and the Security Council's con-
sideration of its report here in New York. Such
representatives would be able to report immedi-
ately any violations of the border and to furnish
the Commission and the Security Council with any
additional information which might come to light
or be needed in dealing with the case. The presence
of representatives of the United Nations on the
spot would also inevitably have the effect of stabi-
lizing the situation pending Security Council
action.
The United States understands the resolution
creating the Commission of Investigation as giv-
ing the Commission full authority to leave repre-
sentation in Greece during the next few weeks.
It is implicit in the resolution and its purpose
that the Commission would continue in existence
until tlie Security Council either disposes of the
Greek case or acts to terminate the Commission's
existence.
The Government of the United States has a
special and pressing interest in effective action
by the Security Council in the Greek case.
I do not need to recall to the Security Council
the desperate plight of Greece and of the Greek
people, or the great concern of the United States
in preventing her collapse. Three times the story
of her tragedy and her danger has been heard by
Supplement, May 4, 1947
857
AID TO GREECE AND TURKEY
this Council. One aspect of the tragedy that
threatens to destroy her freedom and independ-
ence is now under active investigation by the
Security Council's Commission of Investigation
in Northern Greece.
Another aspect of the tragedy of Greece — the
destruction wrought by the Germans to her econ-
omy and her society — has also received the atten-
tion of members and agencies of the United Na-
tions.
Without the assistance of UNKRA, Great
Britain, and the United States, the people of
Greece would not have been able to survive at all
since the day of her liberation more than two
years ago.
UNRRA has furnished Greece $362,000,000 of
food and other relief and rehabilitation assist-
ance. Of this amount the United States, upon
whose initiative UNRRA was in the first place
brought into existence in November, 1943, sup-
plied 72 percent or $260,640,000.
In addition, the United States has authorized
since liberation $181,500,000 in other economic
and financial assistance, including lend-lease, sur-
plus property, and Export-Import Bank loans,
and ships and shipping services by the U.S. Mari-
time Commission. Most of this amount has been
spent or committed.
UNRRA is going out of existence and will
make no more shipments after March 31. Last
month the British Govenmaent informed the
United States that it would be obliged to discon-
tinue on March 31 its financial, economic, and ad-
visory assistance to both Greece and Turkey.
The aid that Greece has received until now has
kept the Greek people alive and little more.
Greece is still prostrate because the damage to her
economy, her system of law and order, and her
whole society — wrought by the Nazi occupation —
was so great, and because of the operations of
guerrilla bands and other factors.
On March 3 the Government of Greece ad-
dressed to the Government of the United States
an urgent appeal for immediate additional econ-
omic, financial, and expert assistance. It de-
clared Greece could not survive without this aid.
It declared "the determination of the Greek
people to do all in their power to restore Greece
as a self-supporting, self-respecting democracy"
but that "the destruction in Greece has been so
complete as to rob the Greek people of the power
to meet the situation by themselves".
Turkey had asked the United States for finan-
cial assistance at various times during the months
preceding the notification by Great Britain that
she would be forced to discontinue her economic
and advisory assistance on March 31. The United
States provided Turkey with $95,000,000 in lend-
lease assistance during and immediately after the
war but had been unable to act upon her recent
requests.
On March 12, 1947, the President of the United
States proposed to the Congress a program of as-
sistance which he believed would result in meet-
ing the immediate requirements of Greece and
would materially contribute to that country's
economic and political recovery. It would also
permit the extension of financial and advisory as-
sistance to help meet the needs of Turkey.
On March 18, 1947, legislation was introduced
into the Congress of the United States which, if
approved, may give legislative sanction to specific
proposals based upon the recomjnendations of the
President.
The Congress of the United States now has the
proposed legislation under active consideration.
The Government of the United States, as the
President and Congress have fully demonstrated,
believes that the whole world should be fully in-
formed of the acts, the motives, and the purposes
of the United States.
The proposed program has been presented in
public. The committees of Congress are holding
hearings in public during which the proposals are
being submitted to the most close and careful
examination. The program will have been fully
and exhaustively debated by the Congress and the
whole American people before the Congress takes
final action. Congress must make the decision.
In accordance with article 102 of the Charter,
the United States will immediately register with
the United Nations, for publication by the Secre-
tary-General, copies of agreements connected with
the execution of this program which may be en-
tered into between Greece and the United States
or between Turkey and the United States.
The proposed program of assistance has a spe-
cific and direct bearing upon the central objectives
of United States foreign policy — to strengthen the
United Nations and to advance the building of
858
Department of State Bulletin
AID TO GREECE AND TURKEY
collective security under the United Nations. It
would, in fact, be a most essential act in support
of this policy of the United States in and toward
the United Nations. As the President said :
"In helping free and independent nations to
maintain their freedom, the United States will be
giving effect to the principles of the Charter of the
United Nations."
The proposed program of assistance by the
United States is directly related to the act of the
United Nations in creating a Commission of
Investigation.
Armed bands are defying authority in northern
Greece and threatening the integrity of the state.
On the one hand, the activities of these bands have
helped to make the threat of economic chaos and
political anarchy throughout Greece so grievous
and imminent that Greece has found it necessary
to call upon the United States for immediate
economic and advisory assistance in order to main-
tain the very existence of the Greek state. On the
other hand, the situation on the frontiers itself is
made far more dangerous by the economic paral-
ysis and weakness inside Greece.
The United States believes that it is of the
highest importance that the United Nations take
further action toward meeting the urgent problems
confronting Greece, as it should for any other
country that may be in similar circumstances.
I have already indicated certain methods of
operation which, in our opinion, would make the
work of the Commission of Investigation more
effective.
I do not anticipate in any way the substance of
the report of the Commission. Yet it is apparent
that the Security Council may wish to consider
after receipt of the report such further action as
recommending that Greece, Yugoslavia, Bulgaria,
and Albania agree on a system of border-control
regulations and that a continuing commission
made up of representatives of members of the Se-
curity Council be established. Under this com-
mission neutral observers could be employed to
keep constant watch against violations of the bor-
der regulations agreed upon. The commission
could be authorized to act under article 33 as an
agency for the peaceful settlement of those dis-
putes among the four countries arising from
border difficulties.
Action along these lines by the Security Council,
combined with the proposed emergency program of
assistance by the United States, would advance
the prospects of peace and security in that part of
the world. Neither action would be of as much
effect if taken without the other, for these are com-
plementary, not conflicting proposals — one to
watch areas where actual disturbances occur, the
other to strengthen Greece sufficiently to maintain
internal order, and to restore to her people hope
and confidence in their future as a free people.
Without such measures, each supplementing the
other, there is grave danger that the situation
which is now before the Security Council might
deteriorate.
It is partly to prevent such a development that
the United States took the initiative in proposing
establishment of the Commission of Investigation
in the first place and is now considering its re-
sponse to the Greek request for aid.
The United States regards it as an obligation
under the Charter, as well ;is a matter of elemen-
tary self-interest, for every member of the United
Nations to do its utmost to bring about the
peaceful adjustment of any international situation
before it becomes a threat to the peace.
It is my belief that the proposed United States
program of assistance to Greece and Turkey, to-
gether with effective action by the Security Coun-
cil in the case of the northern Greek frontiers,
would materially advance the cause of peace.
The United States desires to collaborate in peace
and equality with all nations. It does not desire
to dominate, intimidate, or threaten the security
of any nation, large or small. The United States
will support collective security for all nations —
large as well as small. The United States respects,
of course, the right of all members of the United
Nations to follow whatever way of life or system
of government they choose, so long as the choice is
freely made without intimidation and so long as
such nations do not interfere with the rights of
other countries or the liberties of other peoples.
The foregoing aspects of the situation of Greece
and its bearing on collective security are of es-
pecial interest to the Security Council. There are
other aspects of the situation of equal importance
to the maintenance of peace in this area which are
the special concern of other organs of tlie United
Nations and its related specialized agencies.
Supplement, May 4, 1947
741728 — 17 5
859
AID TO GREECE AND TURKEY
The program of economic assistance contem-
plated by the United States is of an emergency
and temporary character. The United States be-
lieves that the United Nations and its related
agencies should assume the principal responsi-
bility, within their capabilities, for the long-range
tasks of assistance required for the reconstruction
of Greece.
The United States gave its full support to the
emergency relief program conducted by UNRRA
to which I have already referred. United States
officials also participated fully in drawing up the
reconmiendations for long-range assistance to
Greece made by the Mission to Greece of the Food
and Agi'iculture Organization of the United
Nations.
Among the recommendations made by the FAO
was the following :
^^Recommendation 3
"Maintaining Essential Imports After UNRRA
Ends
"It is recommended that the Greek Govenunent
request the Economic and Social Council, and the
governments of the United States of America and
the United Kingdom, to aid it in securing funds
for the continuation of essential food and other im-
ports to cover the period after UNRRA 's with-
drawal, until expanding exports, international
development loans, and expanding production en-
able Greece to balance its international accounts
without special aid."
A fui-ther recommendation is that the Greek
Government apply to the International Bank for
Reconstruction and Development or to other pub-
lic financial agencies for a loan of at least $100,-
000,000 for reconstruction and development pur-
poses.
The International Bank is not yet ready to begin
its loan program, but it soon will be. Greece has
not yet appealed to the United Nations for finan-
cial assistance. There is a reason for this. Greece
may now be in such bad financial and economic
condition that she could not qualify as a good
credit risk for bank loans.
Emergency and temporary economic assistance
of the kind the United States is considering may
improve the economic and financial condition of
Greece sufficiently to qualify Greece for recon-
struction and development loans such as that rec-
ommended in the FAO report. These loans could
be for the financing of such projects as irrigation
and power development, the rehabilitation of
transport, and the modernization and development
of agriculture and the reconstruction and develop-
ment of industry.
The United States strongly supports the use of
United Nations machinery for such purposes.
The Food and Agriculture Organization report
also suggests that the Greek Government request
the Economic and Social Council to arrange for a
continuing United Nations advisory mission to
Greece in connection with such a long-range pro-
gram. Such a mission, if requested by the Greek
Government, would be a constructive step for the
United Nations to undertake.
The United States attaches particular impor-
tance to the establishment this week by the Eco-
nomic and Social Council of the Economic Com-
mission for Europe. The United States has given
the fullest support to the establishment of such a
commission from the time it was first considered
last summer by the Subcommission on Devastated
Areas. The United States is convinced that the
economy of Greece, as well as that of other Euro-
pean nations, will be benefited by this interna-
tional action to coordinate the efforts of all
European countries in their common struggle to
recover from the ravages of war. As the only
non-European member of this Commission, the
United States pledges the fullest possible partici-
pation in its activities.
These, however, are long-range programs. They
cannot meet the present emergency. It is by com-
bining national and international action of both
immediate and long-range character and aimed
both at the security and economic aspects of the
problem that the members of the United Nations
can advance the cause of collective security.
President Truman's message to Congress com-
prehended more than Greece and Turkey when he
spoke of conditions in the world affecting the se-
curity of the United States through the insecurity
of the world. He declared the situation in Greece
and Turkey to be one of the factors of insecurity
and pointed out the various requirements for
restoration of stability.
The United States is giving momentum to the
United Nations by its present policy and it desires
and welcomes corresponding interest and support
860
Deporfmenf of Slate Bulletin
AID TO GREECE AND TURKEY
from other members of the United Nations. We
look forward to the time when such burdens may
be carried through the United Nations. There-
fore, it is important that the United Nations take
an active interest in all that is required for the
re-establishment of stability, to discourage and
prevent threats of aggression of any kind, or
threats to the independence of a fellow member,
and to afford opportunity to her people to enhance
their welfare and dignity.
I have discussed the matter in the broadest
terms, Mr. President, because of the deep interest
which the American Government and the Ameri-
can people have shown in the Greek problem.
Since you live among us you are of course aware
of the intensity of our democratic debate and the
keen desire of our people to see the United Na-
tions grow in authority and confidence.
We now have directly before us in the Security
Council one aspect of the problem. I am certain
that my colleagues will agi'ee that it is of the
gi-eatest importance that we make proper use of
our Commission of Investigation and take the
steps most likely to result in a rapid and impartial
consideration of its findings and recommendations.
In conclusion, therefore, Mr. President, the
United States believes that special eflForts should
be made to expedite the report of the Commission,
that the Commission should come to the seat of
the United Nations as soon as its report is ready
and be available to the Security Council through-
out our consideration of this case, and that it
should leave representatives in Greece during the
preparation of the Commission's report and dur-
ing the Security Council's consideration of the
problem.
My colleagues may prefer to study the views I
have expi-essed before further discussion of the
Greek question. I am willing that we resume con-
sideration of the item on trusteeship at this time.
However, a meeting for discussion relating to the
work of the Council's Commission of Investigation
in northern Greece ought to be held at an early
date.
STATEMENT ON APRIL 10, 1947, BY U.S. REPRESENTATIVE AT THE SEAT OF THE UNITED NATIONS'
Mr. President, I desire to refer first to the draft
resolution submitted by the United States, as re-
vised by the distinguished Representative of
France, and then to comment upon certain of the
statements made by the distinguished Representa-
tive of the Soviet Union on Monday, concerning
the proposed program of aid by the United States
to Greece and Turkey.
The draft resolution, as revised by the Repre-
sentative of France, reads :
'■''Resolvecl, that pending a new decision of the
Security Council, the Commission shall maintain
in the area concerned a subsidiary group composed
of a representative of each of the Members of the
Commission."
The "area concerned" is described in the resolu-
tion of December 19, 1946, creating the Commission
as follows:
". . . Resolved:
"That the Security Council under article 34 of
the Charter establish a Commission of Investiga-
tion to ascertain the facts relating to the alleged
border violations along the frontier between Greece
on the one hand and Albania, Bulgaria and Yugo-
slavia on the other.
"That the Commission shall have authority to
conduct its investigation in Northern Greece and
in such plojces in other parts of Greece, in Albania,
Bulgaria and Yugoslavia as the Commission
co-nsiders should be included in its investigation
in order to elucidate the causes and nature
of the above-mentioned border violations and
disturbances."
Note that the area concerned is variable accord-
ing to the judgment of the Commission itself.
The purpose of the Security Council in creating
the Commission implies — indeed, requires — that
the Commission shall be in a position to discharge
tlie duties imposed upon it by the Security Council
until the Council itself shall have reached a de-
cision in the matter.
' Made by Warreu R. Austin, the U.S. Representative,
before the Security Council on Apr. 10, 1947, and released
to the press hy the U. S. Delegation to the United Nations
on the same date. The italics In the second resolution are
Mr. Austin's.
Supplement, May 4, 1947
861
AID TO GREECE AND TURKBY
The dominating purpose of the Resolution from
which I have quoted and the purpose of the pend-
ing resolution is to carry out the obligations of the
United Nations to maintain international peace
and security. It is not necessary to remind our-
selves, Mr. President, that we Members of the
United Nations are bound both jointly and sev-
erally to perform this obligation. Proposals for
action to discharge this obligation are not prop-
erly subject to criticism of deception, and of con-
cealment of ulterior motives.
The position of the United States is, as I tried to
make clear in my statement in the Security Council
on March 28, that there is imi^licit in the December
19 resolution all the authority necessary to enable
the Commission to function effectively. There is
in that resolution all that is necessary to enable it
to be the proficient agent of the Security Council
until the objective of the Security Council has
been fully attained.
Nevertheless, doubts were expressed at our last
meeting that the Commission itself would under-
stand that it does not have to wait upon instruc-
tions or directions from the Security Council in
order to leave a subsidiai-y group, composed of a
representative of each of the States Members of
the Commission in the area concerned, pending a
new decision of the Security Comicil.
Therefore), the pending draft resolution has
been submitted by the United States and perfected
by the Representative of France. This resolution,
as it now stands before the Council, should clarify
any remaining doubt in the matter, and should
dispose of any charge that the Government of the
United States wishes the Security Council to
anticipate or prejudge the report now being
drafted by its Commission.
The distinguished Representative of the Soviet
Union expressed objection to this resolution.
Taking the text of the verbatim record of the
126th meeting of the Security Council, 7th April,
1947, for accuracy, I quote Mr. Gromyko :
"In today's meeting I made a proposal that a
special Commission of the Council should be estab-
lished to participate in the giving of aid to Greece
and should ensure that this help given to Greece
from outside should be used only for the benefit
of the Greek people.
"I would ask you, Mr. President, and I would
ask the Council to consider this suggestion as a
formal proposal submitted for the consideration
of the Security Council."
Later, Mr. Gromyko referred to the pending
United States resolution and his own proposal in
the following manner :
"This (the United States) proposal may be in-
terpreted as an attempt to place a screen bearing
the initials 'U.N.' to conceal acts which are not
the acts of the United Nations at all, but acts of
an individual State.
"For all these reasons, Mr. President, I consider
the United States proposal is unacceptable, and I
cannot give it my support. I would repeat that
I have made my own proposal in the name of the
Soviet Delegation, a proposal that the Security
Council create a Commission of the United Na-
tions which shall ensure that the help supplied to
Greece be used exclusively in the interests of the
Greek people."
There is a seeming inconsistency in the position
of the Soviet Delegate as he so stated it. On the
one hand, he raised objections to a proposal to
carry out the obvious purposes of the Security
Council in creating its Conunission for Investiga-
tion by leaving a subsidiai-y group in Greece. On
the other hand, he proposed that the Security
Council establish a new Commission to supervise
the carrying out of aid to Greece.
There is an immediate purpose in the continued
presence of a United Nations group to keep watch
over the northern borders of Greece. The most
simple, obvious, and direct method of serving
this purpose is to leave behind representatives of
the States which are members of the Conunission
of Investigation in Greece, pending the writing
of the Commission's report, consideration of the
matter by the Security Council, and, in the terms
of the French Representative's amendment to the
United States resolution, pending a new decision
by the Security Council. The question involved
here would seem to be no more than a very simple
one of orderly and efficient procedure.
So far as Mr. Gromyko's proposal is concerned,
Mr. President, it is not entirely clear as to just
what he had in mind. If he was talking about a
commission to supervise economic aid, I would
refer him to my statement of March 28, 1947, in
which I said :
"The Food and Agriculture Organization report
862
Department of Slate Bulletin
AID TO GREECE AND TURKEY
also suggests that the Greek Government request
the Economic and Social Council to arrange for a
continuing United Nations advisory mission to
Greece in connection with such a long-range pro-
gram. Such a mission, if requested hy the Greek
Govern7nent, would be a constructive step for the
United Nations to undertake."
Note the initiative is with the Greek Govern-
ment.
The long-range program referred to related to
such projects as irrigation and power development,
the rehabilitiation of transport and the modern-
ization and development of industry.
Mr. President, this is a program that would be
for the long-range effort rather than for the im-
mediate emergency — rescue. This is a program
in which the United Nations would be the agent.
There would be not only some rational basis for
an advisory commission as recommended in the
FAO report but there would be the law which
holds us in its firm support — the law of the
Charter. The Economic and Social Council is the
organ of the United Nations which should establish
such a commission. If such a commission were
established, the Security Council, under article 65,
could call upon it for such information and assist-
ance as it might require. If the United Nations
should act in this constructive and benevolent
manner, and by unanimity, it would give the world
added hope for the abolition of war and the estab-
lishment of a peace that would prevail.
Perhaps the proposal of the Soviet Union can
be regarded as a hopeful sign of an intention to
further that objective through aid to Greece.
The United States welcomes the Soviet state-
ment that Greece is in real need of outside aid at the
present time. I gathered from his remarks that
he does not object to the provision by the United
States out of its own resources of aid to Greece.
His complaint seems to be that the United States
has not properly taken the interests of the United
Nations into consideration in its proposals.
I should like to remind the Council that, at the
moment, the United States program of aid to
Greece and Turkey is still only a proposal. The
executive branch of the United States Govern-
ment, in response to the request of the Greek and
Turkish Governments, has made certain specific
proposals to the Congress. A message of the Presi-
dent to Congress does not have the "factum" effect
attributed to it by the Soviet representative.
Nothing can be "post factum" until after the policy
is made by the Executive and Congress. The Con-
gress now has these proposals under study and
they will be fully and openly debated in accord-
ance with our democratic processes before any deci-
sion is reached. As soon as the Congress reaches
a decision and any legislation is enacted into
law, agreements will be entered into with the
Greek and Turkish Governments. At that time,
as I have already informed the Council, the United
States will register these agreements with the
Secretary-General. I shall also be glad to provide
full information on this program to any member
of the United Nations who desires it.
Until the Congress shall have acted in this mat-
ter it is quite impossible for anyone to predict
exactly what form any aid to Greece and Turkey
might take. I should assume that the Security
Council or any other United Nations organ would
not wish to take any action based upon mere
supposition as to the action of the United States
Government.
The fact that military aid to Greece and Turkey
is contemplated under the proposals now before
the Congress of the United States, and the fact
that my distinguished Soviet colleague made a
number of references to this in his remarks to the
Council at its last meeting, require me to discuss
two further aspects of the matter — first, the
question whether the proposed aid to Greece and
Turkey would constitute an unwarranted inter-
ference in the domestic affairs of those countries,
and second, whether the proposed action by the
United States would be inconsistent with the pur-
poses and principles of the United Nations Char-
ter.
The President's proposals to the Congress have
been made pursuant to requests from the estab-
lished Governments of Greece and Turkey. The
Executive did not propose intervention in the
domestic affairs of those countries. Moreover,
any such intention is specifically repudiated in the
Report from the Committee on Foreign Relations,
recommending favorable action by the Senate on
the bill (S. 938) which provides for assistance to
Greece and Turkey. On page 5 of this Report it
is stated :
"Section 3 provides that before assistance is
Supplement, May 4, 1947
863
AID rO GREECE AND TURKEY
furnished, the Governments of Greece and Turkey
shall agree to certain reasonable undertakings,
consistent with the sovereign independence of
these countries, which provide the United States
with proper safeguards against the improper
utilization of assistance furnished."
As I have already stated, any agreements en-
tered into with the Governments of Greece and
Turkey in this matter, pursuant to this legislation
if passed, will be registered with the United Na-
tions, and the Members of the United Nations
will therefore be fully provided with an oppor-
timity to determine if there is any unwarranted
interference in the internal affaire of Greece or
Turkey.
The Keport mentioned further states :
"Such conditions are not, of course, intended to
impair in any manner the sovereign independence
or internal security of the two countries."
Kather than dwell further upon this aspect of
the matter, I should prefer to rely upon any com-
ments which the Governments of Greece and Tur-
key might wish to make at an appropriate time.
The proposed military aid might take the form,
on the one hand, of providing small numbers of
advisory personnel and, on the other hand, of
providing military supplies and equipment. The
purpose of the proposed aid is consistent with the
purposes and principles of the United Nations
Charter in respect to the maintenance of domestic
tranquillity and the security of the state which are
necessary for economic welfare.
The emergency aid proposed in both military
and economic fields is in support of the United
Nations policy of creating conditions of stability
and well-being which are necessary for peaceful
and friendly relations among nations based on
respect for the principle of equal rights and self-
determination of peoples.
It is assumed that the need of all Members of the
United Nations to rely upon their own resoui-ces —
in the military sense, upon their armed forces — to
preserve their territorial integrity and political
independence will diminish as the United Nations
progresses affirmatively in the tasks set forth
under its Charter, and — pursuant to the Charter —
by resolution of its constituent organs.
The United States has faith in the United Na-
tions, a transcendent hope for its future accom-
plishment. The United States also has the un-
shakable determination to continue using all of its
vast resources and power to further the purposes
and principles of the United Nations, and to make
of it what it was intended to be — an effective instru-
ment for the abolition of war, the pacific settlement
of disputes, and the constructive and progressive
development of human welfare — all to the end
that we may someday have upon this war-torn
earth a peaceful society of man in which all peoples
can fully enjoy political, economic, social, and
religious freedom — above all, freedom from fear.
But in the situation in which we now find our-
selves, realistically, the United Nations does not
represent the infallibility of perfection. In this
situation, it is understandable that the established
Governments of Greece and Turkey, at this stage in
the development of the United Nations, should
have turned to the Goveriunent of the United
States for assistance.
Finally, it is understandable that the Govern-
ment of the United States, intent upon achieve-
ment of the high purposes and principles of the
United Nations, should not turn a "deaf ear" to
such requests for assistance.
I can, with complete confidence, assure the Secu-
rity Council and all the Members of the United
Nations, that any action that may be taken by the
United States will have behind it the firm deter-
mination of both the executive and legislative
branches of the Government, and of the people of
the United States, to uphold the United Nations.
The amendment to the pending bill introduced
by Senator Vandenberg with the support of the
executive branch and the Foreign Relations Com-
mittee is proof of that determination, should any
proof be needed. This amendment, as Senator
Vandenberg said on Tuesday in the Senate:
"stops the functions of this bill whenever the
Security Council, without counting vetoes, or the
General Assembly finds that 'action taken or assist-
ance furnished by the United Nations makes the
continuance of assistance — under the bill — un-
necessary or undesirable.' "
The immediate problem confronting us is the
disturbances along the northern border of Greece.
The draft resolution offered by the United States,
and perfected by France, relates to that matter
directly, and the position of the United States re-
864
Department of State Bulletin
mains as it did in the beginning, namely: the
United States believes :
(a) that special efforts should be made to ex-
pedite the report of the Commission;
(6) that the Commission should come to the
seat of the United Nations as soon as its report
is ready and be available to the Security Council
throughout our consideration of this case ; and
(c) that the Commission should leave repre-
sentatives in the area concerned pending a new
decision of the Security Council.
Therefore, I propose, Mr. President, that the
Security Council should now act upon this
amended resolution.
An orderly procedure would be as follows :
First, that the Council should proceed imme-
diately to consideration and action upon the reso-
lution which I introduced at our last session.
AID TO GREECE AND TURKFf
Second, that the Council thereafter proceed to
such further discussion of the United States pro-
gram for aid to Greece and Turkey as it desires.
Third, that action on the Soviet proposal or any
other proposal relating to the pending United
States program of aid be deferred pending defini-
tive action by the Congress of the United States
and the conclusion of agreements between the Gov-
ernments of Greece and Turkey on the one hand,
and the United States on the other.
We would then be in a position to judge calmly
and objectively and in the spirit of imanimity
which I hope will prevail in this Council, the
merits of the Soviet proposal. It might well be
appropriate to consider this proposal in conjunc-
tion with the Eeport of the Commission of Inves-
tigation of the Greek border disturbances.
Supplement, May 4, 1947
865
Questions and Answers Relating to the Greco-Turltish Aid BilP
Question No. 1 : Is not the Greco-Turkish ques-
tion one to be submitted entirely to the jurisdiction
of the United Nations? Have we by-passed the
United Nations ?
Answer: Mr. Acheson dealt at some length with
this aspect of the problem in his statement before
the Senate Foreign Relations Committee on March
24. He said in part :
"The situation of Greece and Turkey confronts
us with only two alternatives : We can either grant
aid to those countries or we can deny that aid.
There is no possibility of putting the responsibility
for extending the aid which Greece has asked from
the United States on some other nation or upon the
United Nations.
"This becomes clear when we consider the specific
problems that confront Greece today and the
specific kinds of assistance that Greece has re-
quested from the United Nations on the one hand,
and from the United States on the other.
"Let us consider first the problem arising from
outside Greece's borders. Greece has charged be-
fore the Security Council that armed bands oper-
ating within her territory are partly supplied,
trained, and given refuge in Yugoslavia, Bulgaria,
and Albania, and that these bands are moving back
and forth across the border. Greece has asked the
United Nations for help in dealing with this situa-
tion, and the Security Council has appointed a
commission which is at the present moment investi-
gating the Greek charges on the spot. It is ex-
pected that this commission will begin writing its
report early in April, and that report should be
ready shortly thereafter.
"We do not know what the report will contain or
the action that may be taken by the United Nations
upon it. We hope and believe that United Nations
action in this matter will result in the cessation
of disturbances along Greece's northern borders.
Such a result would be a most vital contribution to
the situation in Greece and make possible the task
of stabilization and rehabilitation. It would not
'Released Apr. 3, 1947, by the Senate Committee on
Foreign Relations.
be a substitute for the assistance which Greece has
asked from the United States. More is needed to
deal with internal disorder and economic break-
down.
"The second problem confronting the Greek
Government is the need for supplies and funds to
enable it to cope with its internal difficulties, name-
ly, the restoration of order in the country and the
averting of economic collapse. The United Na-
tions Relief and Rehabilitation Administration
and the British Government have been helping
Greece with these particular problems, and the
present crisis has arisen because those two supports
must be withdrawn.
"To whom was Greece to turn ? The Food and
Agi-iculture Organization of the United Nations,
which recently sent a mission to Greece, recom-
mended that the Greek Government request the
Economic and Social Council of the United Na-
tions and the United States and the United King-
dom to extend aid to it in securing funds for the
continuation of essential food and other imports
to cover the period after UNRRA's withdrawal,
until expanding exports, international develop-
ment loans, and expanding production should en-
able Greece to balance its international accounts.
"If Greece had applied to the United Nations
or any of its related organizations, the essential
element of time would have been lost and the end
result would have been the same. The fimds
would have to come primarily from the United
States. The United Nations does not of itself
possess funds. The Economic and Social Coun-
cil is an advisory body that recommends economic,
financial, and social action to member states. The
International Bank, which is just now completing
its organization, is set up primarily to make self-
liquidating loans for long-term reconstruction
purposes. It has not yet made any loans what-
soever. The Economic Commission for Europe is
still in its early organization stage.
"It may be that at some future time the United
Nations will be organized and equipped so as to
render emergency aid to member states of the
866
Department of State Bulletin
AID rO GREECE AND TUKKCf
kind now needed in Greece and Turkey. But, as
the President said, the United Nations and its
related organizations are not now in position to
extend help of the kind that is required. Even if
some organ of the United Nations should decide to
recommend assistance to Greece and Turkey, it
wouhl have eventually to turn primarily to the
United States for funds and supplies and technical
assistance. Even if the project were not blocked
by the objections of certain members of the United
Nations, much time would have been lost, and
time is of the essence.
"In the longer range, the United Nations may
be able to take over various parts of the economic
and financial problem in Greece and Turkey. We
are giving serious study and consideration to ways
in which the United Nations may take hold of
this problem after the present emergency is past."'
Question No. 2: Does not the United Nations
have a commission in Greece right now to in-
vestigate charges of external aggression by Yugo-
slavia and Bulgaria? Wliy not wait for this
report? When is it expected? What action will
the United Nations take if its commission reports
aggression? How will this tie in with our plans?
What will be our next step if neighboring coun-
tries continue to violate the Greek border ?
Answer: The United Nations does have a com-
mission presently in Greece to investigate charges
of foreign interference by Yugoslavia and Bul-
garia, and Albania.
As explained in the testimony given by Acting
Secretary Acheson before the committee, the emer-
gency will not permit us to wait for the commis-
sion's report. Also the commission is investi-
gating only one phase of the Greek problem which
is before us. Consequently, its report will cover
only that phase and will not give an answer to the
problem as a whole. Finally the work of the com-
mission will be fruitless if all authority in Greece
should collapse for failure to receive this emer-
gency assistance.
It is expected that the commission will begin
writing its report April 7 and that it may be ready
within two or three weeks thereafter.
In the event that the commission's report sub-
stantiates the charges made, there are a nmnber of
measures which the Security Council could take
under the provisions of the Charter. The Depart-
Supplementr May 4, 1947
741728 — 47 0
ment of State cannot forecast at this time the ac-
tion which may be taken, since such action will de-
pend on the nature of the report and agi-eement
being reached by at least seven members of the
Security Council.
Our plans and the proposed course of action are
entirely consistent with any foreseeable action
which the United Nations might take. Cessation
of disturbances along the northern Greek frontiers
would be helpful in relieving the general situation
in Greece, and thereby make the task of stabiliza-
tion and rehabilitation that much easier.
As to possible steps which might be taken in the
case of continued violation of the Greek frontier,
this has been answered comjjrehensively in the
answer to the second part of question 95.
Question No. 3: Wliy was not the United Na-
tions notified and consulted ?
Ansioer: It was, of course, essential that a mat-
ter affecting the national security of the United
States and requiring Congressional action should
be referred to the Congress prior to notification to
the United Nations. The decision as to what the
United States should do to assist Greece and Tur-
key is now before Congress. A formal notification
to the United Nations would either anticipate the
decision of Congress or would lack substance. Sen-
ator Austin will make a statement on the Greek
situation before the Security Council on Friday,
March 28. The Department, of course, will keep
the United Nations currently informed on the im-
plementation of the United States program per-
taining to Greece wherever the responsibilities and
function of the United Nations and its related
agencies are concerned. Any agreements readied
between the United States and Greece or Turkey
will be registered with the United Nations under
article 102 of the Charter.
The problem of consultation with the United
Nations is also dealt with in the answers to ques-
tions 1, 67, and 68.
Question No. ^: Is the United Nations likely to
lose interest in its cooperative efforts if America
agrees to accept world-wide responsibilities and
commitments? If we act outside of the United
Nations in this instance, will other countries do
likewise when it serves their purpose?
Answer: In signing the Charter of the United
Nations the United States accepted the most far-
reaching and fundamental world-wide responsi-
867
AID rO GREECE AND TURKEY
bilities and commitments for the maintenance of
the world's peace and security and hence our own.
United Nations' effectiveness depends upon the
willingness of the United States to carry out these
responsibilities. Wliat the United States proposes
to do in assisting Greece and Turkey is an imple-
mentation, by the use of our own resources, of our
responsibilities and commitments under the Char-
ter. The proposed action of the United States thus
would afford no justification for a loss of interest
among the United Nations in cooperative efforts.
On the contrary, our action would give the
greatest encouragement to other members of the
United Nations in that we would, by this action,
foster economic, social, and political conditions,
which the majority of the members of the United
Nations would recognize are essential for the
maintenance of the independence of Greece and
Turkey.
The United States is supporting the United
Nations, not acting outside of the United Nations.
The United Nations Security Council Commission
is now completing an on-the-spot investigation of
frontier violations along the northern Greek
border. The United States pressed for such action
by the Security Council as long ago as September
1946, and, again successfully, in December 1946.
The United States hopes that the commission's
report will be prepared and forwarded with all
possible speed following completion of its present
schedule of investigation. The United States will
press for effective action by the Security Council
to solve security problems disclosed by the report.
However, Greece has a second problem, that of
need for supplies and funds to enable it to cope
with its internal difficulties and avoid economic
collapse. As set forth by Mr. Acheson, in answer
to question 1, Greece could turn only to the United
States for emergency assistance since the United
Nations and its related organizations are not now
in a position to extend help of the kind required.
The United States is considering ways and means
by which the United Nations, following this emer-
gency, may be able to grant assistance to Greece
and hopes that the United Nations will be able to
assume an increasing burden in this respect.
Question No. 5: Why cannot the World Bank be
used to meet the situation in Greece and Turkey ?
If not available now, will it be likely to be avail-
able later to relieve us from this continuing
burden ?
Answer: It is the Department's view that the
bank cannot be used to meet the immediate situa-
tion in Greece because a substantial degree of
economic recovery and political stability must be
accomplished there before Greece will be a good
credit risk for the bank.
As pointed out by Mr. Clayton before the House
and Senate committees, it is hoped that with effec-
tive utilization of the funds provided imder the
present program and with efforts by Greece to
place the economy on a more stable basis she will
be in a position to present requests to which the
International Bank can give serious consideration.
The Greek Government has already informed the
bank of its intention to submit a formal loan appli-
cation at some later date when its plans for re-
construction projects have been completed. As
Mr. Clayton has already indicated in his state-
ment of March 24 to the House Foreign Affairs
Committee, it is anticipated that Turkey will in
due time be able to procure through existing credit
channels a substantial part of the resources re-
quired for general economic development.
The bank is not, of course, an agency designed
to advance such funds for military purposes as
may be required to accomplish the stated objectives
of the proi^osed United States program.
Question No. 6: Why cannot some of these loans
be made from the Export-Import Bank ?
Answer: The same considerations outlined in
the answer to question 5 regarding the World
Bank apply to the Export-Import Bank. Under
present circumstances, and until a substantial pro-
gram of reconstruction has been carried out,
Greece cannot be considered a satisfactory credit
risk for further Export-Import Bank loans.
Question No. 7 : When was the first information
obtained by any persons in the White House, State
Department, or other department of Government
that Great Britain intended to withdraw its sup-
port to the Greek Government not later than
March 31, 1947 ? Why was there such a long delay
in developing our policy and presenting it to
Congress ?
An,swer: The British aide-memoire handed by
the British Ambassador to the Secretary of State
on February 24, 1947, was the first formal informa-
668
Department of State Bulletin
AID TO GREECE AND TUKKEY
tion received to the effect that Great Britain in-
tended to withdraw its support to the Greek Gov-
ernment not later than March 31, 1947. On Febru-
ary 21, when requesting an appointment with the
Secretary for the British Ambassador, the British
Embassy informally indicated to the Department
of State what the purpose of his visit would be.
The officers of the executive branch of the Gov-
ernment immediately formulated their recom-
mendations to the President. On February 27 the
President, having considered these recommenda-
tions, consulted with leaders of the Congress. The
program was then further elaborated. Another
conference was held with congressional leaders on
March 10. The President's message was delivered
to the Congress on March 12.
Question No. 8: Are there $220,000,000 of Greek
credits blocked in London banks, which the Greeks
cannot use outside of the British sterling zone, and
which Greek Embassy officials here say they could
spend if released for the same kind of relief we
shall be asked to provide? If so, is there no way
to use these credits in this situation?
Answer: On February 27, 1947, the Bank of
Greece had available unpledged freely expendable
sterling exchange in the amount of 21,500,000
pounds, equivalent to $86,000,000 at the rate of $4
to one pound. Of this amount roughly half con-
stituted a loan from the Bank of England origi-
nally granted for the purpose of currency stabili-
zation.
In addition the British Government recognizes
an obligation to the Greek Government in the
amount of 12,300,000 pounds ($49,200,000) for
British military authority notes issued in Greece
and drachma advances by the Bank of Greece to
British military forces. This amovint is almost
completely offset by obligations of the Greek
Government to the British Government for ex-
penses incurred by the British on Greek account.
The settlement of these obligations would net
Greece only about 500,000 pounds sterling (equiva-
lent to $2,000,000), available for expenditures by
Greece in the sterling area. It should be pointed
out that although 21,500,000 pounds is designated
as "freely expendable", it is expendable only in the
sterling area which can supply only limited quan-
tities of the types of goods required by Greece. It
is estimated that of the total non-military import
requirements of Greece during the next two years
only one fifth can be procured in the sterling area,
the other four fifths being available only in the
dollar area. Such imports as will be available
from the sterling area can probably be financed in
large part out of earnings from Greek exports
to the sterling area.
Greek sterling balances may remain near the
present level, but cannot make a significant con-
tribution to the solution of the current difficulties
of Greece because of the basic shortage of goods
in the sterling area.
The same limitation applies to the sterling
balances of Greek individuals abroad, even if
they could be brought completely vmder the con-
trol of the Greek Government. The amount of
these individual balances is not known.
Question No. 9: What other current requests for
financial or military aid have been made of the
United States Government for any foreign
country?
Anmver: The United States Government has re-
ceived requests from the following countries of
Latin America, Asia, and Africa for loans through
the regular machinery of the Export- Import Bank,
the Foreign Liquidation Commission, and, in a
few instances, the Maritime Commission : Bolivia,
Brazil, Colombia, Costa Rica, Ecuador, El Salva-
dor, Honduras, Mexico, Nicaragua, Peru, Vene-
zuela, Japan, Egypt, Ethiopia, and Siam.
In addition, responsive to the President's state-
ment of December 15, 1945, outlining the policy
of the United States toward China, the bank in
April 1946 earmarked $500,000,000 for possible
additional credits on a project-by-project basis to
Chinese Government agencies and private enter-
prises. Up to the present date no implementing
agreements had been consummated between the
bank and representatives of the Chinese Govern-
ment.
Additional information concerning loans to
European and Near Eastern countries are given
in the answers to questions 83 and 84.
Current requests for assistance, in the form of
military equipment, from the United States Gov-
ernment have been made by the following foi'eign
countries other than Greece and Turkey :
The Philippine Republic. — This assistance
stems from Public Law 454 of the Seventy-ninth
Supplement, May 4, 1947
869
AID rO GREECE AND TURKEY
Congress. Negotiations are now under way to
determine the extent of this aid.
Italy. — Tlie request involves various items of
militaiy equipment required by the armed forces
permitted to Italy under the treaty of peace.
Iran. — It is anticipated the total amount of
the request will be relatively small.
Requests of foreign governments for the purchase
of United States surplus arms, ammunition, and
implements of war without the aid of United
States credits are excluded from the above answer.
It is to be noted that none of the above requests
would involve any special legislation by Cong-
gress and that all of the requests are in the nature
of repayable loans.
Question No. 10: Wliat other countries, in the
opinions or plans of the State Department, may
require similar aid ? Do we have a general policy
of aid or support for other countries?
Answer: At the present time the Department of
State has no plans for the extension of similar aid
to other countries. It is believed that the prompt
extension of the aid proposed to Greece and Tur-
key would have the effect of encouraging construc-
tive, democratic forces in other areas and thereby
of reducing the possibility of similar situations
arising elsewhere.
In case other countries should find themselves in
situations similar to that of Greece and Turkey, and
should call upon the United States for aid, it is the
intention of the Government of the United States
to examine each request in the light of all the cir-
cumstances and to extend such aid as might seem
most effective within the limits of its capabilities.
As Mr. Acheson pointed out in his statement of
March 24 :
"It cannot be assumed . . . that this Govern-
ment would necessarily midertake measures in any
other country identical or even closely similar to
those proposed for Greece and Turkey."
The President's message to Congress sets forth
the general policy with respect to aid or support to
other countries. In the event that situations
similar to that which exists with respect to Greece
and Turkey should arise with respect to other
countries, the administration would, of course,
present the matter to Congress before undertaking
to extend aid of the character now proposed for
Gieece and Turkey.
Question No. 11 : Does the United States Gov-
ernment have any undisclosed conunitments to for-
eign nations as a result of promises made at previ-
ous conferences by the late President Roosevelt or
by President Truman or by former Secretaries of
State Hull, Stettinius, and Byrnes?
ATiswer: All tripartite agreements among the
United States, the Union of Soviet Socialist Re-
publics, and the United Kingdom, have now been
made public with the publication on March 24 of
the texts of the Tehran, Yalta, and Potsdam
agreements.
Question No. 12: Are there any commitments
concerning {a) control of the Dardanelles ; (6) the
status of Greece; (c) the status of Turkey; (d)
control generally in the Mediterranean; (e)
control of the Suez Canal ; and (/) access to the oil
fields of Iraq and Iran ?
Ansioer: The United States Govei'nment has no
commitments concerning the matters mentioned
other than those contained in the Charter of the
United Nations.
Question No. 13: Has the State Department any
information which would indicate that the United
States would be requested or required to send any
armed force to Greece in the foreseeable future if
this loan is made ?
Ansioer: The State Department does not possess
any information to indicate that the United States
would be requested or required to send an armed
force to Greece in the foreseeable future.
In his statement before the Senate Foreign
Relations Committee on March 24, Secretary Ache-
son said:
"The present proposals do not include our send-
ing troops to Greece or Turkey. . . . We do not
foresee any need to do so. And we do not intend
to do so. We have no understandings with either
Greece or Turkey, oral or otherwise, in regard to
the sending of troops to those countries."
Question No. llf.: In the opinion of the State
Department, would Russia be entitled to interpret
the proposed assistance as an unfriendly and overt
act on our part justifying retaliatory measures on
the part of the Soviet Union?
Answer; In the opinion of the Department of
State the Soviet Union would not be entitled to
interpret the proposed assistance as an unfriendly
and overt act on our j^art, justifying retaliatory
870
Department of State Bulletin
AID TO GREECE AND TURKEY
measures on the part of the Soviet Union. The
assistance proposed is not directed against any
legitimate interests of the Soviet Union. The
establishment of stable political conditions and
a sound economy in Greece will, in our opinion,
greatly diminish the possibility of friction arising
out of the Greek question.
Question No. 15: Would the United States pro-
vide relief for the Greek people if within the next
few weeks there should be an upheaval resulting
in the establishment of a government under the
domination of Greek Commimists? If the Com-
munists should gain control, would we follow the
same policy as it is proposed to do at a time when
Greece is under the control of the constitutional
monarchy ?
Answer: A government under the domination
of Communists could come into power in Greece
in the next few weeks only through subversive
action by a minority against the will of the major-
ity. That being the case, the United States would
not propose to follow the policy which we are sub-
mitting to the Congress at the present time.
Mr. Acheson pointed out in his statement in this
connection on March 24 that —
"Since our primary purpose is to help people
■who are struggling to maintain their independence
and their right to democratic development, we
would not of course want to continue this aid if
we should find that our efforts were being frus-
trated by anti-democratic practices."
Question No. 16: In case the respective Govern-
ments of Greece and Turkey fall in spite of our
efforts, then what do we do about it ?
Answer: We believe that if this proposed pro-
gram is carried out the democratic constitutional
systems of Greece and Turkey will be preserved.
If, in spite of our assistance, that should not be
the case, our course of action would have to be
determined in the light of the new conditions
thereby created.
Question No. 17: Is it true that thousands of
tons of UNRRA supplies lie rotting on the docks
in Greece, and that a great deal of machinery is
going to waste because nobody knows how to use
it or maintain it? What steps are being taken
to prevent the occurrence of instances like this?
Answer: No; it is not true. It has, however,
been reported by reliable sources that small quan-
tities of equipment supplied by UNRRA (particu-
larly items of construction machinery) have re-
mained for considerable periods of time at the port
of Piraeus. The Greek Government has not been
in a position to pay promptly for the costs of mov-
ing and distributing some of this equipment and
there has been some inefficiency on the part of local
authorities in handling arrivals.
The proposed assistance to Greece would enable
her to improve this performance, pai'ticularly with
the advice of American technical experts.
Question No. 18: Is the expenditure of money
proposed to be granted by the Congress to be han-
dled exclusively by the American Mission {a) as
to amount within the appropriations; (i) as to
method and purpose; (c) as to location?
Answer: Under the recommended legislation,
the President of the United States will determine
the allocation of expenditures and the methods,
purposes, and location of such expenditures. In
making such determination he will be guided by
the recommendations of the American Mission.
Question No. 19: Wliat form of organization
will direct American policy in Greece? Will it be
a number of separate commissions, or one com-
mission or one man ? Would there be any objection
to a commission consisting of Democratic and Re-
publican representatives from the House and
Senate as well as others approved by the
President?
Ansicer: Mr. Clayton on March 24, 1947, in his
statement before the House Foreign Affairs Com-
mittee said :
"It will be necessary to send a civilian mission to
Greece to administer this Government's interest in
the program. We cannot now say what the size of
such a mission would be, or how it would be or-
ganized; these questions are still under study."
The Department will keep the Congress in-
formed of its recommendations as soon as they are
prepared. Mr. Clayton also stated in his testimony
that the appointment of the Chief of Mission could
appropriately be subject to senatorial confinnation.
Question No. 20: Is it proposed that our commis-
sion remain after Greece is restored to a normal
economic condition?
Answer: The primary task of the mission would
be to assist in assuring the effective utilization of
Supplement, May 4, 1947
871
AID TO GREECE AND TURKEY
whatever financial aid may be extended to Greece
and to help Greece to begin the reconstruction of
her own economy and public administration. It is
planned to withdraw the mission as soon as that
task has been accomplished.
Question No. 21: If American missions super-
vise expenditures of funds, will they have power to
veto expenditures of which they do not approve?
Will they have control over the use of commodities
purchased once they have been delivered ? In other
words, will the control be more effective than it was
in UNRRA, when we controlled expenditure of
funds we contributed but neither we nor UNRRA
could effectively control the use to which the sup-
plies were put once they were delivered?
Answer: It is proposed that American missions
will supervise expenditures of funds and that they
will have the power to veto expenditures of which
they do not approve. They will also have adequate
control over the use of commodities procured
under the program.
Question No. 22: Is there any break-down to
show how the proposed $400,000,000 will be spent,
or is it to be a blank che«k handed to the President
or State Department to spend at their own discre-
tion?
Answer: This question was ansv?ered by Mr.
Clayton's statement before the House Foreign
Affairs Committee, March 24, 1947. In summa-
rizing the Greek program, Mr. Clayton said that
approximately half of the $300,000,000 Greek
program would be devoted to military purposes
and that —
"the $150,000,000 civilian program for Greece con-
sists of the $20,000,000 agricultural rehabilitation
program and a reconstruction program which in-
cludes $50,000,000 for foreign-exchange costs and
$80,000,000 for internal costs."
Mr. Clayton further stated :
"I should like to emphasize that all the estimates
I have given you are necessarily rough approxima-
tions and that it is essential that flexibility be
maintained, so that adjustments between various
portions of the program can be made in the light
of experience and developments which cannot now
be anticipated in detail."
It has also been pointed out by Mr. Clayton in
his testimony before the Senate Foreign Relations
Committee on March 25, 1947, that Congress will
be kept informed by regular reports.
Question No. 23: What is the nature of this
transaction? Does it involve loans, grants, or
gifts? Does it commit us to additional loans,
grants, or gifts to Greece and Turkey?
Ansioer: This question was asked Mr. Acheson
in the hearings before the House Foreign Affairs
Committee. In response thereto Mr. Acheson ex-
pressed the opinion that it should be left to the dis-
cretion of the President as to whether the assist-
ance should be in the form of loans or grants. He
continued :
"My strong recommendation to the President
would be that all of these funds which are used for
non-wealth-producing purposes, such as current
consumption, and use for the importation of mili-
tary items, should not be in the form of loans.
"If you burden the economies of these two coun-
tries with loans for those purposes, you will make
it much more difficult for them to be effective bor-
rowers from the International Bank.
"If any part of these loans can be used, and we
hope some of it can be used for reconstruction,
that is actually putting up some new wealth-
producing asset, that could well be in the form of
a loan."
Question No. 24: Is there any possibility that
any or all of the $400,000,000 will be repaid? If
so, to what extent and how ?
Answer: As indicated in the answer to the pre-
ceding question, it is not believed wise or prac-
tical to attempt to determine at this time whether
and to what extent repayment may be feasible.
Question No. 25: Is it our national intention to
follow temporary relief contributions of food,
money, and technicians with enduring post-war
credits of all kinds?
Ansioer: This Government's policy does not re-
quire that temporary relief contributions of food,
money, and technicians necessarily be followed by
"enduring post-war credits of all kinds". It is the
policy of the United States Government to foster
world economic rehabilitation, development, and
trade. Where credits are necessary to achieve
these objectives, it has been the policy of this Gov-
ernment to consider such applications sympatheti-
cally, to the extent possible within existing finan-
cial channels, taking into account the credit stand-
872
Department of State Bulletin
AID TO GREECE AND TURKEY
ing of the applicant and resources available for
such assistance.
Question No. 26: What will be the extent of the
military aid proposed for Greece or Turkey as to
personnel and costs?
Answer: With respect to military personnel, it is
contemplated that only limited, technical personnel
would be required, having as its function to deter-
mine the details of the military requirements of
Greece and Turkey and to assist in assuring that
the financial assistance granted to enable Greece or
Turkey to organize and equip their armed forces
will be effectively utilized. Secretary Forrestal
suggested before the committee that perhaps at the
outset three or four naval officers and possibly 20
or 25 men would be sufficient for the limited pur-
pose of advising the Greek authorities. Secretary
Patterson indicated a rough estimate of approxi-
mately between 10 and 40 Army officers might be
adequate ior similar purposes. Under the terms
of the proposed legislation any personnel sent
would serve only in an advisory capacity. No
combat armed forces would be supplied.
As to costs of naval equipment, it was indicated
that information currently available as to the ex-
tent of requirements is not complete, that any de-
tails as to costs will have to be determined when a
report is available from personnel who may be sent
to Greece, and that in any event the amount to be
allocated for the supply of naval materiel will be
relatively small. Approximately $150,000,000 is
estimated as necessary for military and civilian
type equipment for the Greek armed forces.
It is contemplated that about $100,000,000 will
be allocated to the Turkish program, all of which
would be used for the armed forces or to a lesser
extent for economic projects directly related to
Turkish security.
Question No. £7: What advances in the way of
property, goods, and money have been made to
Turkey and Greece by the United States Govern-
ment since the war began ? What advances have
been made to these states by international organi-
zations to which the United States belongs?
Answer: Greece. — The United States Govern-
ment has authorized the use of $196,500,000 of
which $56,000,000 are left from authorizations and
will be available for use in the future. As its
share of UNKRA, the United States has contrib-
uted $255,000,000 (excluding freight) to Greece.
Total aid to Greece authorized amounts to $451,-
000,000. A summary of United States aid from
October 15, 1944, to December 31, 1946, is as
follows :
United States economic assistance to Greece other than
UNRRA, Oct. 15, 1944, to Dec. 31, 1946
[Millions of dollars]
Agency
Amount
authorized
Amount
disbursed
or commit-
ted
Available
balance
Jan. 1, 1947
81.6
45.0
25.0
46.0
81.6
23.8
6.6
30.0
(6) OFLC Surplus credits
(c) Export-Import Bank
{d) Maritime Commission
21.2
19.4
16.0
Turkey. — The United States Government has
disbursed or advanced $101,000,000 to Turkey as
aid of one sort or another since the war began.
Turkey has remaining $30,000,000 more from the
authorizations available for use in the future.
UNRRA, to which the United States contributed,
has made no advances to Turkey. A summary of
United States aid from the beginning of the war
to January 31, 1947, follows :
Agency
Authorized
Disbursed
Available
balance
Jan. 1, 1947
Export-Import Bank:
Westlnghouse
$3,060,000
25,000,000
10,000,000
'90,000,000
2,919,811
$3,060,000
Exporter credit
OFLC credits
$4, 905, 440
3, 226, 618
90.000,000
2,919,811
20,094,560
6, 773, 482
Maritime Commission
Total
130,979,811
101,051,769
29,928,042
' In addition, the Turkish Oovemment received $8,000,000 in lend-lease
articles for which It paid cash.
It should be noted that the undisbursed balances
of credits available to Greece and Turkey have
already been taken into consideration in calcu-
lating the amounts of financial assistance re-
quested of the Congress in the pending bill. For
the most part these remaining credits could not
be used for the purposes to which funds authorized
by the bill would be devoted.
Question No. 28: What oil holdings, in the way
of concessions, lease holdings, and other interests,
do United States companies have in the Near and
Middle East ? In what states are these holdings
located, and what is the value of the holdings of
the different companies?
Supplement, May 4, 1947
873
AID TO GREECE AND TURKEY
Answer: The Standard of California and the
Texas Co. own jointly and equally a concession
covering about two thirds of Saudi Arabia. The
Standard of New Jersey and Socony- Vacuum are
concurrently carrying on negotiations to purchase
30 and 10 percent interests, respectively, in this
concession. The value of the holdings is indicated
by the reserves estimate of 5,000,000,000 barrels.
The Standard of California and the Texas Co.
own jointly and equally a concession covering all
Bahrein Island. The value of the holdings is in-
dicated by the reserves estimate of 300,000,000
barrels.
The Gulf Oil Corp. owns a 50-percent interest in
the concession covering the Sheikhdom of Kuwait.
The other 50-percent interest is owned by Anglo-
Iranian Oil Co., Ltd. The value of the holdings is
indicated by the reserves estimate of 9,000,000,000
barrels, of which 4,500,000,000 barrels is American-
owned.
The Iraq Petroleum Co. owns concessions cover-
ing all Iraq, most of Syria, Qatar, and all the
Sheikhdoms on the periphery of the Arabian Pen-
insula from Qatar to Yemen. Of all these holdings
only Iraq and Qatar have been proved productive.
The American interest is 23.75 percent of the cor-
poration, which interest is owned equally by the
Standard of New Jersey and Socony-Vacuum.
The value of the holdings of the Iraq Petroleum
Co. is indicated by the estunated reserves in Iraq
and Qatar which total 6,000,000,000 barrels, of
which nearly one fourth is American-owned.
The reserve figures shown herein are those which
have been published in American Petroleum In-
terest in Foreign Countries (S. Res. 36, 79th
Cong.). Since very little is known about the area
these reserves estimates are regarded as indicating
little more than their order of magnitude. Ob-
viously it would be impossible to convert these
estimates into dollar values at this time.
As for company investment it is believed that the
ARAMCO has spent to date about $180,000,000
in Saudi Arabia. Comparable figures on other
areas in the Middle East are not presently avail-
able.
There are no American oil interests in Iran.
Question No. 29: Is it our purpose to support the
present Greek Government ; that is, the monarchy ?
Is it our proposal to support the present Turkish
Government? In other words, what will be our
attitude toward the domestic control of internal
affairs in these countries?
Answer: It is our primary purpose to assist the
Greek people, so that they may retain the oppor-
tunity to choose the form and composition of their
Government in accordance with the wish of the
majority. This also applies to Turkey. We do not
conceive it to be our function to influence the judg-
ment of these two peoples with regard to their Gov-
ernments. If the Greek people wish to have a king,
just as the British wish to have one, and the
Swedes, the Norwegians, and the Dutch, that is a
matter for them to decide.
Whatever we may do to assist Greece and Tur-
key, we propose scrupulously to respect the sov-
ereignty of those countries with respect to the
conduct of their internal as well as their external
affairs.
Question No. 30: What are the exact forms of
government now in existence in Greece jind Tur-
key? Wlien were these Governments established
as they now operate, and to what extent do the
people of the respective countries have a voice in
their Governments? Have there been recent elec-
tions in either or both of the countries, and under
whose auspices were such elections held ? Is it the
view of our Government that the Goverimaents of
either or both countries are democratic ? Is it con-
templated to suggest changes? What efforts are
being made by the Governments of Greece and
Turkey to stamp out Communism ?
Answer: The Government of Greece is a con-
stitutional monarchy similar in its general charac-
ter to those of the Scandinavian countries, the
Netherlands, Belgium, and Great Britain. The
King's powers are very limited and he can act
only through his ministers, who are members of
and responsible to the popularly elected Parlia-
ment. A government of this character, though
varying as to details at different periods, has been
the rule in Greece almost ever since that country
obtained its independence. The present constitu-
tion was adopted in 1911. There is universal man-
hood suffrage in Greece and the present Parliament
is regarded as being representative of at least 85
percent of the population. The last parliamentary
elections were held on March 31, 1946, and were
observed by an American, British, French, and
South African mission, sent at the requast of the
Greek Government. The elections were conducted
874
Department of State Bulletin
A/0 TO GREECE AND TURKEY
by the Greek authorities in accordance with the
constitution. The foreign observers reported that
they were generally fair and gave a true picture
of the will of the Greek people at that time.
The Turkish Government is a republic under
a constitution adopted in 1923, which provides for
a representative parliament elected by univereal
suffrage. The executive is headed by a president
who is chosen by the members of the parliament.
Under him there is a cabinet which is selected from
and is responsible to the members of the parlia-
ment. The last parliamentary elections in Turkey
were held in July 1946 after a free political cam-
paign.
It is the view of the Department of State that
both the Greek and Turkish Governments are es-
sentially democratic and that both are progressing
along the road of democracy. The essential de-
mocracy of these two Governments is, it is be-
lieved, demonstrated by the fact that in both
countries substantial opposition parties are not
only legal but are carrying on an energetic cam-
paign of criticism of the Governments in power
without hindrance by the governmental authori-
ties. Both countries enjoy freedom of the press
to a degi-ee which exists in few other countries.
The United States Government does not pro-
pose to dictate to either Greece or Turkey the form
or composition of its Government. We believe
that in both cases if there is freedom from fear
and from economic want, the peoples of the two
countries will be able to elect the type of govern-
ment they desire, and it is our desire to assist them
to this end.
The Communist Party is legal in Greece and
carries on its activities freely within the limits of
the law which regulates all political groups. The
Greek Government has taken certain measures
against individuals whose disloyalty to the state
is considered established and is carrying out mili-
tary campaigns against Communist-led bands
which are openly defying the authority of the
state.
The existence of a Communist Party is not per-
mitted in Turkey, and it is believed that there are
very few Communists in that country.
Question No. 31: What evidence has been sub-
mitted which would lead one to believe Russia is
attempting to take over the governments or to
establish governments which would be dominated
by Russia in either or both countries? Is there
positive evidence of Russian uifiltration ? If so,
to what extent have either or both Governments
made attempts to prevent such infiltration or to
force the return to their own country of any
Russians or their representatives? Wliat is the
number of Communists in each country and what
positive evidence is there, if any, that Russia is
directing the policies and activities of these Com-
munist groups ?
Answer: An examination of the President's
message and of the proposed legislation will indi-
cate that the President has not charged that any
specific country is attempting to take over the
Greek or Turkish Governments or to establish
governments dominated by it in either or both
countries.
With regard to Greece, it would appear to the
Department, from the information available to it,
that the principal threat to Greek independence
comes from armed groups in Greece led by Com-
munists. The purpose of these armed groups ap-
pears to be to prevent the reconstruction of an in-
dependent, democratic Greece. They would seem
to be determined to promote economic chaos imtil
such time as they might be able by force to seize
the power. There is no doubt that these armed
groups are receiving encouragement from abroad.
A United Nations commission is now in Greece
which has among its objectives the investigation of
alleged border violations. It would be unwise to
make further comment regarding the nature of
the support which the armed groups are receiving
from abroad until the report of this commission
has been received.
So far as is known, there are at present no or-
ganized armed groups in Turkey intent upon un-
dermining the independence of that country. The
pressures of various kinds which have been exerted
upon Turkey from without during the last 18
months are so well known that it would appear to
be unnecessary for them to be set forth in detail
by the Department of State at this time. It is
hoped that aid to Turkey would prevent the
development of conditions within that country
which would render it difficult for it to withstand
pressures from without which might threaten its
independence.
No precise figures are available regarding the
number of members which the Communist Party
Supplement, May 4, 1947
875
AID TO GREECE AND TURKEY
has at this time in Greece and Turkey. It is be-
lieved, however, that that party has relatively few
members in each country. The threat to Greek
independence comes not so much from the number
of Communists in Greece as from the groups which
the Communists have been successful in domi-
nating as a result of the economic misery of the
Greek people. The Communist Party in Turkey
is outlawed and, therefore, such Communist activ-
ities as are carried on in that country must be of
a secret character.
Question No. 32: When did Turkey enter the
war, and what efforts were made and by whom
to have her do so? Were any promises made to
her by way of credits, supplies, and the like ? Did
she receive aid before and since she entered the
war? To what extent did Turkey cooperate with
Germany before her entry into the war? Did she
trade with Gei-many before she entered the war,
and to what extent? Wliat did Turkey do to help
the Allies after she entered the war? Did she
furnish ti'oops? Did she furnish materials or
supplies ?
Ariswer: Turkey declared war on Germany and
Japan on February 23, 1945, having previously
broken off diplomatic relations with Germany on
August 2, 1944, and with Japan in February 1945.
Following the Tehran conference in late 1943,
the suggestion was made to the Turkish Govern-
ment by the Soviet, British, and American Govern-
ments that Turkey should enter the war on the
side of the United Nations. The Turkish Govern-
ment agreed in principle, but pointed out that its
force would require substantial quantities of equip-
ment if they were to play an effective role in the
war. Negotiations in tliis regard were opened and
continued over a considerable period, but, in view
of their other commitments, the Allies were unable
to meet the Turkish needs. The decision not to
undertake a Balkan campaign, of course, greatly
reduced the part Turkey could have played in
the conduct of the war. In the opinion of the
United States Government, Turkish neutrality was
useful to the United Nations, and it is doubtful
whether any greater benefits would have been de-
rived from active Turkish belligerence.
At the time of her declaration of war, the only
inducement offered to Turkey was the opportunity
to become a charter member of the United Nations
organization through participation in the San
Francisco conference. The same inducement was
offered several other nations which had remained
neutral up to that time.
Following the declaration by President Roose-
velt on November 7, 1941, that the defense of Tur-
key was vital to the defense of the United States,
Turkey received lend-lease material amounting
to approximately $90,000,000 in value. Great
Britain also provided substantial quantities of
supplies to Turkey during the war.
In the opinion of the Department of State,
Turkish contact with Germany prior to her decla-
ration of war was limited to the minimum neces-
sary to preserve her neutrality. In general,
throughout the war, Turkey maintained an atti-
tude of benevolent neutrality toward the United
Nations and lived up to the obligations of her
treaty with Great Britain and France. In many
ways Turkey actively assisted the Allies by admit-
ting Allied technicians to Turkish territory, allow-
ing the establishment of Allied supply dumps, and
facilitating the passage of Allied wounded, es-
caped prisoners, and so forth, through Turkey, all
of which was in technical violation of the require-
ments of neutrality.
Before the outbreak of the war, Turkey, like
many other European nations, especially those of
Southeastern Europe, necessarily depended upon
Germany as an important market for her exports.
Under the Nazi trading system, the Turks could
realize upon their sales in Germany only by im-
porting German goods in return. Consequently, a
large shaie of Turkey's foreign trade fell into
German hands before the war. During the war
the situation was further complicated by Turkey's
isolated position and the inability of the Western
Allies to send sliips to the principal Turkish ports,
Istanbul and Smyrna. Nevertheless, both before
and during the war, Turkey did her best to reduce
her trade dependence upon Germany and to open
trade channels with other countries. All trade
with Germany, of course, ceased at the time of the
severance of diplomatic relations in 1944.
Following her entry into the war, Turkey was
not called upon to provide troops or materials or
take an active part in the fighting, because the
Balkans, the only theater in which her contribu-
tion would have been effective, had already been
occupied by the Soviet and British forces.
Question No. 33: How does our Government
876
Department of State Bulletin
AID TO GREECE AND TURKEY
reconcile its position of desiring to assist Turkey
and Greece as well as other countries to fight Com-
munism through loans and gifts, when it is fur-
nishing food and supplies to countries which are
alleged and known to be dominated by Russia ?
Ainswer: The difference between the policies ex-
pressed in the requested appropriation of $350,000,-
000 for general relief and $400,000,000 for Turkey
and Greece lies in the nature of the two programs.
The relief appropriation is designed to do exactly
what is implied in its designation — provide food
and related goods to countries in need of assistance
and without the means to pay in foreign exchange
for these goods. It is a measure designed to do our
part in the prevention of starvation, regardless of
the political aspects of the governments in control,
based on the principle that relief of this kind is for
people in need, and that these unfortunate people
cannot be allowed to suffer from hunger because
of the nature of their governments. Relief ex-
tended under the $350,000,000 program would be
closely supervised and used only where needed to
prevent actual suffering. The government of any
people receiving such assistance would have to
agree to full publicity concerning the source of the
relief and rigid conditions as to equitable distri-
bution of the supplies. It is believed that our
struggle to maintain our ideals in the world will
not be impaired by the prevention of suffering on
such a basis.
The special assistance to Greece and Turkey, on
the other hand, is designed specifically to
strengthen the Governments involved and rehabil-
itate their economic systems in order to provide
the economic basis for their defense and independ-
ence. This program involves expenditures for
capital as well as current items and implements the
announced foreign policy of the United States to
assist in maintaining the liberty and independence
of free peoples. Its purpose, therefore, is not relief
as such.
It is in these fundamentally different purposes
that the two proposals differ and are at the same
time consistent with each other and with over-all
United States foreign policy.
Question No. 3i: Is it the plan to remove all
British soldiers from Greece as well as in Turkey,
if any, before assistance is actually made available ?
What authority, if any, will remain in the British
Government in these areas where we are furnish-
ing funds and supplies under the proposed plan of
assistance ?
Answer: It is not the plan to remove all British
soldiers from Greece before the proposed assistance
is made available. There is no connection between
the presence of British troops in Greece and the
proposed assistance. The British have indicated
that it is their intention to withdraw their troops
from Greece in the near future. There are no
British trooj^s in Turkey.
The British Government will have no authority
in those areas to which our proposed assistance
would be extended.
Question No. 35: What jjeriod of time is this
amount expected to cover? Does the State Depart-
ment have any idea, based on the present conditions
in Greece, as to how long American economic aids
will be necessary, and to what maximum extent ?
Answer: The present request for financial as-
sistance is expected to cover the period through
June 1948.
Based on present conditions in Greece it is not
possible to state definitely how long American
economic aid will be necessary and to what maxi-
mum extent. It is expected, however, that if the
aid requested can be provided and is used effec-
tively, Greece should be able to make such real
progress toward economic recovery that she could
look to the International Bank for assistance in
financing her further reconstruction and develop-
ment needs.
Question No. 36: Do our military authorities
feel that Soviet Russia's military strength is such
that they are likely to take action against the
United States either in connection with our en-
trance into Greece or as the result of some other
dispute arising during the next two years? (The
Senator asking this question says he expects no
analysis of tlie Russian character, but only some
light on their military strength and their own
confidence in it.)
Answer: In the opinion of the Department of
State, there is no reason to believe that any coun-
try would find provocation for action against the
United States as a consequence of our proposed
course in the Greek crisis. Beyond this it is be-
lieved that public expressions of opinion by the
executive branch of the Government on the mili-
tary strength and effectiveness of a foreign power
Supplement, May 4, 1947
877
AID TO GREECE AND TURKEY
as against the United States would not be in the
public interest.
Question No. 37: What evidence has our Gov-
ernment that a government dominated by Greek
Communists could spread Connnuuism in other
parts of the Mediterranean, or spread "confusion
and disorder throughout the entire Middle East" ?
How is the "national security of the country"
involved ?
Answer: It is not believed that it would be in
the interests of the United States to enter into a
public discussion regarding the evidence which
this Government has that a govermnent dominated
by Greek Communists would spread "confusion
and disorder throughout the entire Middle East".
An examination of the map, however, should make
it clear that the geogi'a]ohical position of Greece is
of such a character that the conquest by Greece of
Communist groups would have a great impact
upon the whole Near East.
Furthermore the unhajipy fate which would
befall those democratic elements in Greece which
have had the courage to oppose Communism at
the hands of the victorious Greek Communists
would have an oppressive effect upon the demo-
cratic constructive forces of the other countries of
the Near East.
The chain of events which would be likely to
follow the conquest of Greece by Commimism
would unquestionably result in a degree of in-
stability in the whole Near and Middle East which
might well result in the outbreak of armed con-
flicts of a character dangerous to the mamtenance
of peace.
Question No. 38: After our missions have moved
into Greece and rehabilitated the Greek Army and
spent millions on reconstruction, could Greece,
with our assistance, resist an invasion?
Answer: The purpose of our proposed assist-
ance to Greece is not to put Greece in a position
to resist overt aggression by foreign countries.
Our objective is to so strengthen the internal
economic structure and the internal security of
Greece that she will be relieved of the danger of
the overthrow of constitutional government by
an armed minority.
The Department considers that an invasion of
Greece would be clearly a matter for the United
Nations to handle, and the United States Govern-
ment would, of course, cooperate fully with the
United Nations in dealing with such a situation.
Question No. 39: Wliile we are in Greece, will
we permit elections to be held? Will we retire
from Greece in case a duly elected majority of the
Greek people in fair election request our retire-
ment ?
Answer: The answer to both questions is in the
aiBrmative. We do not propose to assume such
authority in Greece as would permit us to say
whether or not elections should be held. Neither
would we propose to operate in Greece if a major-
ity of the Greek people cleaily did not want our
assistance. Mr. Acheson pointed out in his state-
ment on March 24, regarding our proposals for
aid to Greece and Turkey, that "our aid will not
be continued any longer than it may be needed or
wanted by those countries".
Question No. 40: If British troops remain in
Greece, will the United States merely feed and
clothe the populace while Great Britain continues
to supply the dii'ecting policies of the Greek Gov-
ernment? Would the continued presence of
Britain's armed forces interfere in any way with
the development of the American programs of
economic help to Greece ?
A7iswer: The answer to both questions is in the
negative. Such information as this Govermnent
has indicates that it is not in accord with the facts
to suggest that Britain at present supplies the
"directing policies of the Greek Government".
The British have indicated that British forces
will probably be entirely withdrawn in the next
few months. In any case, British forces have not
interfered with past efforts to furnish relief and
economic aid to Greece and there is no reason to
suppose they will do so in the future.
Question No. ^1 : Is it true that the Greek Army
includes among its commissioned oiEcers a num-
ber of members of the security battalions which
were set up under Nazi influences ? Is it true that
these alleged collaborators participated in Jewish
deportations for liquidation purposes?
Answer: It is of course possible that there are
still some officers in both the Greek gendarmerie
and Army who were members of the security bat-
talions which functioned during German occupa-
tion. According to information considered reli-
878
Department of State Bulletin
AID TO GREECE AND TURKEY
able, the Greek Government has been making a de-
termined and successful effort to screen out of the
Army anyone whose record during the period of
occupation indicated sympathy with, or coopera-
tion with, the enemy.
It is possible that some security battalions par-
ticipated in rounding up Jews for deportation.
However, such information as is available in-
dicates that it was for the most part German troops
who collected Jews and shipped them out of Greece.
Most of the Jews in Greece lived in Salonika and
were deported fi'om there by German troops. The
Greek people as a whole have an excellent record
in their attitude during the war toward Jewish
people. As an offset to the few who collaborated
with the enemy in Jewish deportations, there were
many who risked their lives to protect Jews. Arch-
bishop Damaskinos himself intervened with the
Germans on several instances and instructed his
colleagues to aid the Jews. The Greek people
have never been anti-Semitic.
Question No. 1^2: How many British troops are
still in Greece, and how long are they expected to
remain ?
Answer : It is believed that there are at present
less than 10,000 British troops in Greece. No
exact date has been set for their departure, but the
British Government has announced its intention of
withdrawing all its forces in the near future.
Question No. Ij3: Wliat is the size of the Greek
Army ? the Turkish Army ?
Answer: According to such information as is
available, the Greek Army numbers approximately
100,000 men, and the Turkish Ai-my between 500,-
000 and 600,000.
Question No. 44-' Does the administration con-
template action to "assist" the Central Govern-
ment in China against its armed Communist
minority similar to that now being proposed in
Greece ?
Answer: As was explained by Secretary Ache-
son in testifying before the House Committee on
Foreign Affairs, March 20 and 21, the situation in
Greece is quite different from that in China. This
Government, therefore, does not propose to fol-
low identical courses of action in the two countries.
However, as Mr. Acheson also pointed out, the
United States has already extended very large
financial credits to the Chinese Government and
has armed and equipped some 36 divisions of the
Chinese Army.
Question No. ^5: Should not provision be made
that all purchases of goods in this country be made
through the United States Treasury Procurement
Service, thereby avoiding fixers and graft ?
Answer: As Mr. Clayton has stated before the
House Foreign Affairs Committee on March 24
and the Senate Foreign Relations Committee on
March 25 :
"It is my considered opinion that in the United
States any purchases with these fmids should be
made through the procurement agencies of this
Government, or, if made otherwise, should be
subject to careful supervision and strict control."
Question No. J^G: Why is legislation necessary to
authorize the sending of a military mission? Is
this not a constitutional privilege of Presidents?
If legislation were proposed to prohibit the Presi-
dent from sending a military mission, would not
the State Department hold that the legislation was
unconstitutional on the ground that it interferes
with the right of the Executive (a) to conduct
foreign relations, and (Z») to command the armed
forces ?
Answer: The proposed legislation provides
for —
"detailing a limited number of membei-s of the
military services of the United States to assist
those countries, in an advisory capacity only — "
and makes applicable to personnel detailed the
provisions of the act of May 19, 1926, as amended,
which are applicable to personnel detailed pur-
suant to that act.
It is believed that even though the President
may, under the Constitution, detail in time of
peace military personnel to render services to a
foreign government, it is appropriate for him to
ask Congress to participate in the decision to
follow such a course of action. The act of May 19,
1926, which dealt with the detail of military per-
sonnel to certain foreign governments, is an in-
stance where Congress has previously participated
in such a decision.
However, there are additional reasons which
make congressional action in this instance indis-
pensable. An examination of the personnel provi-
sions of the act of May 19, 1926, which the proposed
%yipp\emQn\, May 4, 1947
879
AID TO GREECE AND TURKEY
legislation makes applicable to personnel detailed
to assist Greece and Turkey, shows that they
authorize :
(a) Acceptance by detailed military person-
nel, from the government to which they are
detailed, of offices and such compensation and
emoluments thereunto appertaining as may be
first approved by the Secretary of War or the
Secretary of the Navy.
(h) The receipt by such personnel, in addition
to the compensation and emoluments allowed
them by such governments, of the pay and al-
lowances thereto entitled in the United States
military services.
(c) The allowance of the same credit for
longevity, retirement, and for all other purposes
that they would receive if they were sei^ving with
the forces of the United States.
These are matters concerning the maintenance,
support, and the government and regulation of the
military forces of the United States and the Con-
stitution vests the power with respect to such mat-
ters in the Congress (art. I, sec. 8) .
Question No. If! : Wlio made the recommenda-
tions to the State Department on the Greek and
Turkish situations? Was it Paul Porter, Mark
Ethridge, or the regular Ambassador, or someone
else?
Answer: Kecommendations to the Department
regarding the Greek and Turkish situations were
made by all the responsible American representa-
tives in those two countries.
Question No. JfS: Is there more need for protect-
ing the present form of government in Greece than
in any of the other Balkan countries, or particu-
larly Northern China?
Answer: Greece is the only Balkan country
which has thus far been successful in maintaining
a democratic form of goverrmient, and the Depart-
ment of State is of the opinion that it is in the in-
terests of the United States that Greece should be
permitted to exist as an independent, democratic,
economically sound state.
This Government considers Northern China to
be an integral part of the Chinese Republic. It
also takes the position that it is in the interest of
the United States and of world peace that China
should also exist as an independent, democratic,
economically sound state.
Question No. Jfi: Are we laying down a gen-
eral principle which will govern our policy every-
where in the world, and particularly in China,
Poland, Finland, Iran, Iraq, Afghanistan, and
India?
Answer: In his statement on March 24, Mr.
Acheson said:
"Any requests of foreign countries for aid will
have to be considered according to the circum-
stances in each individual case. In another case
we would have to study whether the country in
question really needs assistance, whether its request
is consistent with American foreign policy,
whether the request for assistance is sincere, and
whether assistance by the United States would be
effective in meeting the problems of that country.
It cannot be assumed, therefore, that this Govern-
ment would necessarily undertake measures in any
other country identical or even closely similar to
those proposed for Greece and Turkey."
Question No. 50: If the cost of maintaining the
Turkish Army can only be met by reducing the
Turkish standard of living, does America intend
to subsidize the Turkish civilian population for so
long a tune as Turkey maintains an oversized mili-
tary establishment?
A7iswer: Assistance to Turkey would not be
provided in any case to enable her to maintain a
military establishment larger than necessary, nor
would such aid be designed to "subsidize" the ci-
vilian population. With improved conditions, it
is hoped that the need for maintaining the Turkish
military establishment would diminish in time.
Question No. 51: If British troops are with-
drawn from Greece, will American troops replace
them in approximately comparable numbers?
Answer: Mr. Acheson answered this question as
follows in his statement on March 24 :
"The present proposals do not include our
sending troops to Greece or Turkey. We have not
been asked to do so. We do not foresee any need
to do so. And we do not intend to do so. We have
no understandings with either Greece or Turkey,
oral or otherwise, in regard to the sending of
troops to those countries."
Question No. 52: If British troops are with-
drawn from Greece and American troops do not
880
Department of State Bulletin
AID TO GREECE AND TURKEY
replace them, what plan will be followed to main-
tain law and order?
Answer: It is our expectation that with the as-
sistance to be provided by the United States in the
form of supplies and equipment, together with
the improved conditions which should result from
the provision of American financial and technical
assistance, the Greek Army, gendarmerie, and
police forces will be adequate to maintain law and
order in Greece. In this connection it should be
remembered that the British troops have taken no
part in the maintenance of internal order since
their brief participation in the armed clashes of
December 1944.
Question No. 63: Does our entry into Greece and
Turkey under the circumstances proposed by
President Truman entail the abandonment of the
Monroe Doctrine with its corollary that if Euro-
pean countries keep out of North and South
America, we likewise shall keep out of Europe?
Answer: President Truman's proposal does not
entail in any respect an abandonment of the Mon-
roe Doctrine.
We do not understand the alleged corollary con-
tained in the above question to the effect that if
European countries "keep out" of North and
South America, we shall "keep out" of Europe.
Twice in the last 25 years the United States has
gone to the assistance of democratic countries in
Europe by sending 3,000,000 men at one time and
4,000,000 men at the other time. After World
War I, the United States contributed approxi-
mately $2,000,000,000 to the relief of suffering in
Europe. Since World War II, we have contrib-
uted about $4,000,000,000 for the same purpose.
President Truman's present proposal is to respond
to the requests of two nations which have asked
for assistance from the United States.
Question No. 5^: Is there any essential differ-
ence between America operating in Turkey and
Greece and Russia operating in the nations of
Eastern Europe? How can America ask Russia
to retire within its national boundaries if America
has no intention of remaining within her own?
Answer: In answering this question, the Depart-
ment of State does not believe it appropriate to
accept the invitation offered by the question to
comment on the activities of the U.S.S.R. in East-
em European countries. It restricts its answer
to dealing with the implication that the United
States "has no intention of remaining within her
own" boundaries.
The United States is not following a policy of
isolation. Neither is the United States by Presi-
dent Truman's proposals or otherwise contemplat-
ing any action in Greece or Turkey other than
responding to requests for economic, financial, and
expert assistance.
Question No. 55: Is it the intention of the ad-
ministration that no pressure will be exerted on
the Greek Government to take Communists into
the Government, as apparently has been our policy
in China?
Answer: Mr. Acheson in his statement of March
24 addressed himself to this aspect of the problem.
He stated that —
"It is feared in some quarters that the proposed
United States program for Greece constitutes a
blanket endorsement of its present government.
Others have suggested that the United States make
its assistance conditional on changes in the com-
position of the Greek Government.
"As to the first point, I can do no better than
to emphasize the President's declaration that we
do not condone everything the present Greek Gov-
ernment has done or will do. As to the second, I
do not think that such interference in Greek affairs
would be justified.
"The present Parliament of Greece was demo-
cratically elected in an election which foreign
observers agreed was fair. There can be no doubt
that it represents the majority of the Greek people.
The present Greek Cabinet contains representa-
tives of 85 percent of the members of the Greek
Parliament . . .
"It is not the object of our aid to Greece either
to help to maintain or to help to remove the present
government or the King of Greece. It is our object
to help to maintain the present constitutional sys-
tem of Greece so long as the majority of Greeks
desire it, and to help Greece create conditions in
which its free institutions can develop in a more
normal fashion.
"It is not claimed that all persons involved in the
present armed challenge to the Greek Government
are Communist. There are among them many
persons who honestly, but in our opinion mis-
%upplement, May 4, 1947
881
AID TO GREECE AND TURKEY
takenly, support the Communist-led forces because
they do not like the present Greek Government.
The political amnesty offered by the Greek Govern-
ment offers to all the opportunity to cooperate in
making democratic Greek institutions work."
Question No. 56: Wliat agency will supervise the
execution of these various plans? What indi-
viduals will head up the proposed organization so
far as present information goes? Would the ad-
ministration object to a provision requiring Senate
confirmation of the principal American representa-
tives entrusted with this responsibility?
Answer: It is plamied that the State, War, and
Navj;^ Departments will supervise the execution of
the various programs relating to their respective
fields. As Mr. Clayton has said before the House
Foreign Affairs Committee and the Senate For-
eign Relations Committee, it is planned to send to
Greece an American mission to supervise the exe-
cution of the economic program. He further
stated that it was planned to send an initial mis-
sion consisting of 25 to 50 persons, headed by a
person of outstanding ability. Mr. Clayton also
stated before the Senate committee that the State
Department has no objection to the Senate con-
firmation of the mission chief.
Question No. 67: Will the administration take
the Congi'ess, or at least its Foreign Relations Com-
mittee, into its confidence as new special situations
begin to appear?
Atiswer: It is the intention of the administra-
tion to inform Congress, if and when such special
situations as those existing in Greece and Turkey
should develop. As the President has said, the
executive and legislative branches must work
closely together on major problems of this sort.
Question No. 58: Is not the President taking
on too big a load in putting this matter on a univer-
sal or global basis rather than strictly limiting
it in the case of this action to Greece and Turkey?
Answer: The President in his message to Con-
gress recommended that the United States respond
to the requests for assistance made to it by Greece
and Turkey. In the course of his message, he
said:
"I believe that it must be the policy of the United
States to support free peoples who are resisting
attempted subjugation by armed minorities or by
outside pressures."
We believe that this statement is in entire ac-
cord with the principles of the United Nations
Chaiter and the duties of the members of the
United Nations. As pointed out in answer to
question 49, the President did not assert that the
measures which he was recommending in the case
of Greece and Turkey would be the measures
appropriate to support the statement of principle
in other situations.
Question No. 59: Would a gift of money to
Great Britain for Greece achieve the same pur-
pose? Have any attempts been made financially
or otherwise to assist Britain to remain in Greece?
Answer: No consideration has been given to the
possibility of making a gift of money to Great
Britain to be spent for Greece. It is not believed
that such a coui-se would be an appropriate or
desirable way to respond to the request.
No attempts have been made financially or other-
wise to assist Britain to remain in Greece.
Question No. 60: Should the proposed action
increase or justify Russia's fear that we are en-
gaged in an encirclement of Russia? Would
Russia be justified in viewing our action as a threat
now or in the future against Russia's own terri-
torial integrity?
Answer: The United States Government does
not consider that its proposed action to assist in
bringing about stable conditions in Greece and
Turkey could in any way be considered as a step
in the encirclement of any country. In our view,
the establishment of such stable conditions, far
from constituting any threat to the territorial
integi-ity of any other country, should on the con-
trary contribute to the establishment of European
peace and tranquillity, which is in the best interests
of all countries.
Question No. 61: What are the conditions in
Turkey that necessitate our proposed assistance to
Turkey?
Answer: For some years Turkey, in order to
provide for its national security in accordance
with its own judgment of the necessities of the
situation, has maintained a considerable portion of
its military manpower under arms. This has
placed an economic strain upon the country both
in obtaining from abroad the necessary equipment
and supplies for the Army and maintaining the
productive power of the country. In the past
882
Department of State Bulletin
AID TO GREECE AND TURKBY
Turkey has had help from both the United States
and the United Kingdom. United States lend-
lease help ended in 1945. The United Kingdom
cannot provide further assistance. In order to
prevent deterioration of the Turkish economic
situation, which might weaken the country and
compromise its position, Turkey has requested
American financial assistance which the President
proposes that we grant.
Question No. 62: If the United States supplies
aid to Turkey do we become a co-guardian of the
Dardanelles?
Answer: The status of the Dardanelles is regu-
lated by the Montreux convention of 1936. By
the terms of this convention, Turkey is solely re-
sponsible for the defense of the Straits. Action
by the United States to assist Turkey with money
or supplies would not place any special responsi-
bilities on the United States with regard to the
Straits.
Qiiestwn No. 63: Is it not a fact that Great
Britain is maintaining in Palestine a military
force which is ten times as great as that in Greece,
and which involves expenditures running into hun-
dreds of millions of dollars, despite the alleged in-
ability of Great Britain to take care of the situ-
ation in Greece? Was any attempt made to study
if available British military persomiel concen-
trated in Palestine could have been utilized in
Greece? Should not the Palestine question now
be settled with Britain in this same connection ?
Answer: This Government is not in a position
to state precisely how large the British military
forces in Palestine are. It is possible, however,
that they are ten times as numerous as those in
Greece. This Government also is not in a position
to estimate the expenses incurred by Great Britain
in maintaining British forces in Palestine. No
attempt has been made to ascertain if available
British military personnel concentrated in Pales-
tine could be utilized in Greece, since neither the
British Government nor the American Government
has proposed that the military persomiel in Greece
be increased. The assistance contemplated for
Greece is not in the form of increased foreign
armed forces.
It is believed that it would bo unfortunate to
link the question of extension of aid to Greece with
the Palestine problem. It will be recalled that
Great Britain has indicated its intention to sub-
mit the Palestine problem to the United Nations.
It will undoubtedly be many months before the
United Nations will be able to find a solution to
the Palestine problem, and the question of aid to
Greece, as pointed out by the President, is ex-
tremely urgent.
Question No. 6Jf: Does not the present Greek
crisis indicate the need for a frank discussion of
Russian- American relations at the highest level?
What does the Government of the United States
intend to do about it ?
Answer: Secretary Marshall is now in Moscow
negotiating upon several of the important prob-
lems in Soviet-American relations, and this Gov-
ernment will continue to make every proper effort
to resolve outstanding problems on a basis con-
sistent with the principles to which the United
States adheres.
Question No. 66: Can the action contemplated
by the President be considered intervention in the
internal affairs of other sovereign states?
Answer: The proposed action cannot properly
be considered as intervention in the internal affairs
of other states, because it will be undertaken only
at the request of the states concerned and in ac-
cordance with the wishes of the peoples of those
states. It is further our intention to establish the
bases of our activities in both countries through
free and open negotiation with their governments.
There wiU be no attemj^t to force our aid upon
either coimtry nor will there be any attempt to
derogate their sovereignty.
Question No. 66: What safeguards will the
United States take with respect to the administra-
tion of the assistance to Greece and Turkey in
order to avoid the charge that we are attempting
to dominate these countries?
Answer: The manner in which our proposed as-
sistance to Greece and Turkey will be administered
will be determined in the end by agreement with
the Governments of the countries concerned. We
shall be careful at one and the same time to make
sure that American funds are properly utilized
for the greatest benefit of Greece and Turkey and
that this is done in full accord with their Govern-
ments and with full respect for their constitutional
systems. It is not possible at this stage to outline
the exact procedures that will be followed.
Supp/emenf, Aloy 4, 1947
883
AID TO GREECE AND TURKEY
Question No. 67: Before the Congress accepts
the responsibility of passing on tliis question,
should it not be put up to all the members of the
United Nations for their approval or disapproval ?
Regardless of the veto power which the Great
Powers have, is it not true that approval by prac-
tically all of the members of the United Nations
would give great substance to the justice of the
act we propose ?
Answer: The Department is doubtful of the de-
sirability of trying to obtain public expressions of
view from 55 governments on a matter on which
the United States Government has not itself
reached a decision. In any event it is impossible,
even had such action been initiated on the date of
the President's message to Congress, that the views
of the United Nations' members could be obtained
either through a special session of the General As-
sembly or by an individual poll prior to March 31,
the date at which emergency assistance should
begin.
Question No. 68: If this help to Greece and Tur-
key must be immediate, could we not arrange with
the United Nations that we act now, with the fur-
ther understanding that money we now spend for
this purpose will be considered as an obligation of
the United Nations to be reimbursed later ?
Answer: There is no organ of the United Na-
tions now in session which could enter into such an
understanding with the United States Govern-
ment. It would be necessary to convene a special
session of the General Assembly to consider the
question.
Since the present crisis arises in part because the
British Government finds itself unable to continue
aid to Greece and Turkey, it is plain that that Gov-
ernment would not be in a position to agree to re-
imburse the United States. The Department of
State knows of no other nations which could or
would be willing to assume this burden. The
United Nations organization has no resources
apart from those of the nations which are members
thereof.
Question No. 69: Does the assumption of the
British obligations in Greece by the United States
mean that the United States is underwriting the
status quo in the Middle East?
Answer: In extending assistance to Greece of
the character proposed, the United States is not
assuming the obligations of Great Britain nor of
any other power. Such assistance would be given
in the interest of the peoples of Greece, in the pro-
motion of world peace, and of the security of the
United States.
It is not the intention of the United States to
underwrite the status quo in the Middle East. It
will be recalled that in his message to Congress, on
March 12, the President said :
"The world is not static and the status quo is
not sacred. But we cannot allow changes in the
status quo in violation of the Charter of the United
Nations by such methods as coercion, or by such
subterfuges as political infiltration."
Question No. 70: Did President Truman know
of this imi:)ending emergency when he advised Con-
gress on March 3 to allow Selective Service to
lapse?
Ansv}er: The President did know of the im-
pending emergency at that time. The note had
been received from the British Ambassador on
February 24 and communicated to him, and it will
be recalled that prior to March 3 discussions had
been initiated with congressional leaders on the
problem. However, the request for aid from the
Greek Government was not received until March 3.
Question No. 71: How much money has the
American Government contributed through vari-
ous soui'ces to the Government of Yugoslavia in
the past three years ?
A'Hswer: Yugoslavia has received $32,000,000 of
lend-lease aid since July 1942, of which $39,000
has been received since September 1945. Data
for the period of the last three years are not readily
available. The United States share of UNRRA's
contribution to the Yugoslavia relief program was
$312,000,000, exclusive of freight (based on 72
percent of the total contribution), all of which
was furnished in the past three years.
Question No. 72: How much money has the
American Government contributed through vari-
ous sources to the people of Greece in the past three
years ?
Answer: The United States contributed $255,-
000,000 as its share of UNRRA shipments to
Greece through January 1, 1947. As regards other
types of assistance, the figures given in the answer
to question 27 (on United States aid to Greece since
884
Department of Slate Bulletin
AID TO GREECE AND TURKEY
the beginning.of the war) also constitute an answer
to this question, since all of such aid has been given
to Greece in the past three years. It should be
pointed out, however, that the credits listed in the
answer to question 27 as extended by the OFLC
and Maritime Commission, do not involve any
monetary outlays.
Question No. 73: Does the United States Gov-
ernment intend to tell the Greek Govenmient how
it shall set up its Government budget, its tax sys-
tem, its civil-service system, and how to conduct its
foreign trade, or other Governmental activities,
including development and training of the Greek
Array with American weapons?
Answer: We do not intend to dictate to the
Greek Government regarding the conduct of its
internal affairs. However, it will be necessary that
controls acceptable to the United States Govern-
ment be established at key points so that the funds
and supplies made available are used to best ad-
vantage. This may require active participation
by members of the American mission in coopera-
tion with the Greek administrative authorities.
The Greek Government has already made several
requests for expert advice in several fields, and it
is believed that the Greek Government would
welcome such expert advice as the United States
might be able to provide in matters such as fiscal
and tax policies and administration, import and
exchange controls, and the like. There is reason
for believing that advice on military matters would
also be welcome, but present plans do not envisage
any training program for the Greek armed forces
under American auspices, except possibly for
limited technical instruction in the use of Ameri-
can equipment.
Question No. 74: How many military missions
will we furnish for service in Greece? Of what
will each mission consist?
Answer: Final plans in this regard have not
been made. It is anticipated that only one mission
will be sent and that its primary function will be
to determine Greek needs for equipment and to
make sure that the supplies furnished by the
United States reach their proper destination in
time and in good condition. As Secretary Patter-
son explained to the committee on March 24, the
members of the mission may also show the Greeks
how to use technical items of American equipment
which may be furnished.
Question No. 75: Are the salaries and expenses
of military missions and other American experts
in addition to the $400,000,000 mvolved in the pro-
posed loan ?
Answer: It is expected that the pay and allow-
ances of military personnel will not be paid out
of the $400,000,000 request, as provided in section
1, paragraph 3, of the bill, although some expenses
incidental to their activities will probably be so
paid. In the case of civilian employees, salaries
and expenses will be paid out of the $400,000,000
request.
Question No. 76: Will the military supplies be
provided from existing war surpluses, or will war
surpluses be provided in addition to those pur-
chased by the new loan?
Ansioer: Existing stocks of United States mili-
tai-y supplies and equipment will be used under
these programs wherever desirable. Such de-
liveries would be counted as part of the assistance
to be rendered under the proposed bill, although
this would not apply to purchases of war surplus
made by the Greek or Turkish Governments under
surplus credits made in accordance with existing
legislation.
Question No. 77: Will the United States furnish
planes to Greece and Turkey, and all the modern
weapons of war?
Ansvjer: Exact determination of the needs of
the Greek and Turkish armed forces has not yet
been made. This will be one of the functions of
the small military missions which it is proposed
to send to those countries. Since one of the pur-
poses of the American assistance is to improve the
effectiveness of the security forces of the two
countries in meeting their respective problems, it
is expected that the United States will furnish
such modem weapons as may be found necessary
and appropriate in each case.
Question No. 78: Will the United States fleet
be constantly maintained in the Mediterranean?
Do acts of this nature constitute belligerence, in-
viting retaliation?
Answer: In a public statement on September
30, 1946, Secretary of the Navy Forrestal said
that it was planned to maintain a squadron of
%upp\emeni, May 4, 1947
885
AID TO GREECE AND TURKEY
American naval vessels in the Mediterranean to
support the Allied occupation forces in Europe
and to protect United States interests in that area.
He pointed out the benefits to the Navy, from the
point of view of training and morale, obtained
from such operations in foreign waters and the
opportunities they offer to promote good-will and
better understanding with the peoples of the
Mediterranean. In his testimony before the com-
mittee, on March 24, Secretary Forrestal stated
that the squadron now in the Mediterranean nor-
mally consists of four cruisers and eight or nine
destroyers, to which other vessels are occasionally
added for training purposes.
The presence of naval vessels in foreign waters
is not regarded in international practice as having
any belligerent or unfriendly character. On the
contrary, visits of naval vessels to foreign ports
are generally regarded as being in the nature of
good-will calls. It is customary to obtain the
advance agreement of the country to be visited,
and this practice is followed by the United States.
Maritime nations have for centuries been in the
habit of sending their naval ships on training and
service cruises in all parts of the world. In the
past, as at present, the United States has had
squadrons stationed in Asiatic and Mediterranean
waters. Cruises to Northern Europe, South
America, Africa, and other areas have been com-
monplace in the peacetime life of the Navy.
Question No. 79: How many experts will be sent
to Greece and for what specific purpose ? Are any
names available?
Answer: The question appears to overlap with
question 19. In reply to question 19 reference was
made to Mr. Clayton's statement, on March 24,
1947, before the House Foreign Affairs Committee,
in which he said :
"It will be necessary to send a civilian mission to
Greece to administer this Govermnent's interest
in tlie program. We cannot now say what the size
of such a mission would be, or how it would be
organized; these questions are still under study."
According to present estimates an initial mis-
sion of 25 to 50 persons would be required, to be
increased when, as, and if more people are neces-
sary to do the job. The Department will keep the
Congress informed of its recommendations as soon
as they are prepared.
Question No. 80: Will the British Government
relinquish any of her claims to oil interests or con-
trolled trade in the Middle East in return for our
substitution for her role m Greece ?
Answer: The proposed aid to Greece is not for
the benefit of the Government of Great Britain.
Its objectives would be to enable Greece to exist as
an independent, self-supporting, and economically
sound state, to promote world peace, and to safe-
guard the security of the United States. There is,
therefore, no reason for the Goverimient of the
United States to bargain with the Government of
Great Britain or any other third government, be-
fore extending aid to Greece of the kind proposed.
Question No. 81: Are the guerrillas we now op-
pose in Greece armed with American war weapons
previously provided by us? Did these guerrillas
fight the Germans during the recent war with these
same weapons?
Answer: Few of the weapons now in the hands
of the guerrillas are of United States origin.
They are a mixture from many sources. During
the war, arms were smuggled into Greece and
other areas in the Balkan Peninsula for use by
resistance movements against the Germans. It is
quite evident that many of these still remain in
the hands of Greek guerrillas. According to the
terms of the Varkiza agi-eement of February 1945,
all arms in the possession of Greek resistance
groups were to be turned in to the Government.
However, many were evidently hidden away and
are now being used by the guerrillas in addition to
othei'S subsequently smuggled into the country.
Question No. 82: Why not send relief to the
starving people in Greece through the Inter-
national Red Cross ?
Answer: The International Red Cross is com-
posed entirely of Swiss citizens and its function is
to safeguard the provisions of the Treaty of Ver-
sailles having to do with the care of prisoners of
war and the sick and wounded in time of war.
Question No. 83: What financial commitments
have already been made to European nations?
Wliat expenditures have been made in fulfillment
of these commitments, and what additional com-
mitments are contemplated?
Ansicer: Aside from the British loan, the United
States Government had made commitments of $2,-
999,000,000 to European countries through Ex-
886
Department of State Bulletin
AID TO GREECE AND TURKEY
port-Import Bank loans, Maritime Commission
credits, and credits granted in connection with
sales of war surplus by OFLC and the War As-
sets Administration. Of this amount, $1,962,000,-
000 has been expended. Additional credits aggre-
gating $152,000,000 are under consideration.
United States financial assistance to European countries
[000 omitted]
Agency
Credits
committed
Amounts
spent
Additional
credits
under con-
sideration
Export -Import Bank
$1,966,750
193,000
829,000
10,000
$1, 150, 769
118,000
693,700
$73,000
Marltiine Commission '
Wur Surplus Sftle-s (OFLC)i
4,000
76,000
Total
2,998,750
1,962,469
152,000
> This financial assistance docs not require monetary outlay by the U.S.
Government.
' The amount shown is for Finland.
Detailed break-down by countries is given in attached tables A to O.
Table A (Question 83). — Export-Import Bank {as of
Feb. S8, Ism
[000 omitted)
Austria . . . .
Belgium ....
Czechoslovakia
Denmark . . .
Finland . . . .
France ....
Germany . . .
Greece
Hungary . , .
Italy
Netherlands . .
Norway . . . .
Poland . . . .
Total
Credits
committed
$750
ino, 000
21, 500
20,000
79, 600
1,200,000
25,000
130, 000
300, 000
60,000
40,000
Amounts
spent
$100, 000
19,618
16,000
47,838
754, 000
3,400
19.605
186,000
6,408
1, 966, 760 1, 160, 769
Credits
under con-
sideration
$28, 000
' 20, 000
19, 000
6,000
73, 000
Table B (Question 83). — Maritime Commission credits to
European countries
[Millions of dollars]
Italy . . .
France . .
Norway . .
Greece . . .
Total
Credits
committed
193
Amounts
spent
Credits
under con-
sideration
Table C (Question 83). — War surplus sales by OFLC on
credit to European countries ' (as of Mar. 21, 1947)
[In millions of dollars]
Austria
Belgium
Czechoslovakia .
Denmark . . . .
Finland
France
Greece
Hungary . . . .
Iceland
Italy
Netherlands . . .
Norway
Poland
United Kingdom
Total
Credits
committed
10
49
>60
10
26
300
45
30
Amounts
spent
'Mi
Credits 11
under con-
sideration
1.9
49.0
9.3
14.9
300.0
23.8
29.7
160.0
12.8
1.9
30.4
60.0
693.7
60
10
2
10
78
' Surplus sales on credit do not require monetary outlay by the U.S
Government. ■ New sales suspended Sept. 13, 1946.
Question No. 8^: What financial commitments
have already been made to Middle Eastern na-
tions ? What expenditures have been made in ful-
fillment of these commitments, and what additional
commitments are contemplated ?
Answer: The United States has granted credits
of $75,000,000 to countries in the Middle East
through February 1947, of which $21,000,000 has
been spent. Additional credits under considera-
tion amount to $21,400,000.
United States financial assistance to Middle East nations
[In millions]
Agency
Credits
com-
mitted
Amount
spent
Additional]
credits
under con-
sideration]
Export-Import Bank '
Maritirae Commission «
War Surplus sales (OFLO)'
$50.0
".lO
20.0
$0.0
15.0
10.0
■s$ro.4
'11.0
75.0
21.0
21.4
1 Of the credits committed, $25,000,000 is for Turkey and $23,000,000 for
Saudi Arabia, of which Saudi Arabia has spent $0,000,000.
1 Amounts shown are for Turkey.
» The $10,400,000 represents $1 ,400.000 for Tiu-key and $9,000,000 for Iran. ■
< The $11,000,000 represents $1,000,000 for Yemen and $10,000,000 for Iran.
' This flnanclal assistance does not Involve monetary outlays by the U.S.
Goveriunent. For break -down of credits committed and amounts spent by
countries see following table:
War surplus sales by OFLC on credit to Middle East
countries '
(In millions of dollars)
Iran
Lebanon . . .
Saudi Arabia .
Turkey. . . .
Total .
Credits
committed
(as of Feb.
28, 1947)
20.0
Amounts
spent (as
of Deo.
31, 1946)
3.0
3.0
6.0
2.6
2.0
1.6
10.0
3.2
10.2
1 Surplus sales on credit do not Involve monetary outlays by the U.S.
Government.
Note.— The foregoing tables do not include credits to Greece, which is'not
classed as a Middle Eastern country.
Supplement, May 4, 1947
887
AID TO GREECE AND TURKEY
Quention No. 85: WW-Ai steps are being taken to
convince the Soviet Union tliat our policy is not
aimed at construction of an encirclement of
Kussia ?
Answer: There is nothing secret about our pro-
posed policy. It has been fully set forth in the
President's message and published throughout the
world. We do not consider that there is any
ground for construing our policy as being aimed at
the encirclement of any country and we believe that
the speedy carrying out of the proposed action
along the lines set forth by the President will be
the best evidence that our objectives are solely
those stated by the President.
Question No. 86: Is the figure of $250,000,000
suggested for Greek aid an estimate for a fiscal
year, or merely an initial estimate based on the
intention of seeking additional funds at periodic
intervals?
Answer: The figure proposed for Greek aid is
$300,000,000 which is an estimate for the period
March 31, 1947, through June 30, 1948, that is for
the last quarter of fiscal 1947 and for the entire
1948 fiscal year.
Question No. 87: What guaranties are being
sought from the Greek Government concerning
political freedoms in Greece?
Aiiswer: This Government is not proposing
any special guaranties from the Greek Govern-
ment concerning political freedoms in Greece.
The existing constitution and laws of Greece
contain provisions guaranteeing those freedoms.
Greece's problems do not arise from hick of con-
stitutional guaranties but from disturbed condi-
tions which impede the operation of constitutional
government. It is anticipated our assistance will
be instrumental in stabilizing the political as well
as the economic situation and thus will assure the
Greek people the full freedom to conduct their
own affairs which they have traditionally enjoyed.
It is to be noted that the Greek Government has
already announced its intention to hold new elec-
tions in the near future.
Question No. 88: Does the United States Gov-
ernment or any corporation within the United
States, with the approval of the State Department,
have any agreement with any foreign government
or corporation with that foreign government, with
respect to the control or division of oil in the Near
and Middle East, with special reference to the so-
called "red line" agreement? If so, what are those
agreements ?
Answer: Neither the United States Govern-
ment nor any corporation within the United
States, with the approval of the Department of
State, has any agreement with any foreign gov-
ernment or corporation within that foreign
government, with respect to the control or division
of oil in the Near and Middle East.
Following World War I diplomatic negotia-
tions involving Middle East concessions were
primarily concerned with the application of the
open-door principle to the disposition of conces-
sions in the mandated territories of what was
formerly the Ottoman Empire. Following these
negotiations certain concessions in these man-
dated territories were offered to American com-
panies. Certain American companies took advan-
tage of the offer made to them. The terms under
which they participated in these concessions were
considered by the Government of the United
States to be matters of a commercial character.
The United States Government did not partici-
pate in any way in the drafting of the group agree-
ment which resulted, nor in any negotiations
among the private parties by means of which the
group agreement was consummated.
The companies participating in the Iraq Peti'O-
leum Co. (which include, as a 23.75 percent in-
terest, a joint subsidiary of New Jersey and
Socony) are signatories of the gi'oup agreement
or inter-company agreement of 1928. This agree-
ment is a complicated document setting forth the
various rights, interests, and obligations of the
constituent companies of the Iraq Petroleum Co.
It includes, among other things, the so-called
"restrictive clauses" or self-denying ordinances
which are commonly referred to as the "red line"
agreement. These clauses stijjulate that the con-
stituent companies shall not separately seek oil
rights or concessions or purchase oil in a defined
area, the extent of which was indicated by a I'ed
line drawn on a map attached to the original con-
tract. The area so defined was substantially
identical with the Ottoman Empire of the pre-
World War I period. It included Turkey, Iraq,
the Levant States, and all of the Arabian penin-
sula including the adjacent islands of the Bahrein
archipelago ; it excluded Kuwait and Iran.
888
Department of State Bulletin
AID TO GREECE AND TURKEY
Recently the American element in the Iraq
Petroleum Co. was advised by counsel that the
group agreement is no longer valid. The Amer-
ican companies thereupon informed their partners
in the Iraq Petroleum Co. that they were willing
to negotiate a new group agreement without the
restrictive clauses. The French company in the
Iraq Petroleum Co. (Compagnie Frangaise des
Petroles) refused to accept opinion of counsel as
to the validity of the old group agreement and
brought the issue to litigation in the British courts.
Simultaneously, discussions are proceeding in
London among the Iraq Petroleum Co. partners in
an effort to arrive at a negotiated settlement and
at a satisfactory new group agreement.
The Anglo-Iranian Oil Co. and the Gulf Oil
Corp., which jointly and equally own the Kuwait
Oil Co. (which in turn holds a concession over
the entire territory of Kuwait), agreed between
themselves, in what is known as the Kuwait inter-
company agreement, that neither party would
market its share of Kuwait oil in an area in which
the other party had an established market posi-
tion. Wliile this agreement, with the above-
mentioned article, is still in force it is not believed
that this so-called "marketing clause" is in fact
operative at the present time or will be hereafter.
Question No. 89: Was any agreement or under-
standing reached at Yalta or Potsdam, or at any
other meeting between the United States, Great
Britain, and Russia, under which Greece and Tur-
key were recognized as being within the British
"sphere of influence" ? Were any other "spheres of
influence" established by the Big Three?
Answer: The United States is not and has not
been a party to any sphere-of-influence agreement.
During the war the British and American Govern-
ments agreed that the Eastern Mediterranean
would be an area in which the British would carry
the primary military responsibility for operations
against the common enemy, although the United
States did furnish a considerable quantity of sup-
plies for these operations. This was a purely mili-
tary arrangement and in no sense an agreement
upon spheres of influence.
Question No. 90: Wliat are the British commit-
ments in Greece? Which of these do they give up
on March 31 ? If a British military force remains
in Greece, what, if any, obligations have we to
support it?
Answer: So far as this Government knows, the
British Government has no binding commitments
in Greece other than an obligation to furnish cer-
tain financial assistance up to March 31, 1947.
The United States would have no obligation
to support any British force which might remain
in Greece.
Question No. 91 : The President has asked $350,-
000,000 for relief. Mr. Hoover has also reported
on suggested relief items. Will any of this be
used in Greece and Turkey ? How much more, if
any, is asked in the present budget for food or
relief to any foreign people?
Answer: The joint resolution on relief in 1947,
recently reported out by the House Foreign Affairs
Committee, includes a program of relief assistance
to Greece within its proposed figure of $350,000,-
000. The specific amount for Greece is not de-
tailed as yet and will vary according to the need
and available supplies and funds during the calen-
dar year 1947. It is estimated that the bare relief
needs of Greece in 1947 are in the neighborhood
of $50,000,000 to $00,000,000. Such amount of
this as cannot be supplied from sources other than
the United States would be furnished from the
$350,000,000 appropriation. No amount for
Turkey is included.
In addition to the $350,000,000, the War Depart-
ment has requested appropriations of $1,025,000,-
000 for relief in occupied countries, and $73,000,-
000 has been requested as our contribution to the
International Refugee Organization.
Question No. 92: Specifically, how far does the
Government expect to go in the matter of the pro-
posed military missions to Greece and Turkey?
Will they be purely advisory staffs, or will the
plan involve a substantial force for policing the
program ?
Answer: It is anticipated that any military mis-
sions to Greece or Turkey will be purely advisory.
It is impossible to say at this time how many men
may be involved but it is expected that the number
will be small. Secretai-y Patterson, in his testi-
mony before the committee on March 24, estimated
that the military section of the mission to Greece
would probably number between 10 and 40 men.
Supplement, May 4, 7947
889
AID TO GREECE AND TURKEY
Question No. 93: Does any agi'eement exist with
the British Government with reference to the im-
plementation of the proposed plan of assistance
to Greece and Turkey, or will the United States
be free to act in the interest of the Greek and
Turkish people and in protection of its own inter-
ests and obligations without being in a position of
submitting its plans to another government?
Answer: There is no agreement with the British
Government with reference to the implementation
of the proposed plan of assistance to Greece and
Turkey. The United States is free to act in agi'ee-
ment with the Greek and Turkish Governments,
respectively.
Question No. 9^: In the opinion of the State
Department, what is the basic justification for
the steps that are contemplated under the Greek
agreement? Are they, in the opinion of the
State Department, basically preventive steps
against war, and, if so, how ?
Answer: It is the considered view of the De-
partment of State that the measures of assistance
to Greece proposed in the pending bill are designed
to arrest and reverse a steady economic and politi-
cal deterioration which, if unchecked, would prob-
ably lead to the overthrow of the Greek consti-
tutional regime against the wishes of the great ma-
jority of the Greek people and the eventual loss
of Greek independence. Such a development, as
was pointed out by Secretary Acheson in his testi-
mony before the conunittee, would have most seri-
ous effects upon the situation in Turkey and other
countries in the Meditei-ranean and Near East.
The result would be a situation of fear, uncer-
tainty, and general disturbance which habitually
produce international friction. On the other
hand, the successful execution of the proposed
American program would not only preserve the
freedom and restore the well-being of the Greek
people but would also reassure and encourage all
other peoples who are striving to achieve or main-
tain their own freedom and stability. Thus, the
bases of international peace and the foundations
of the United Nations would be strengthened.
Question No. 95: In view of the critical situation
in the Near East, cannot pressure be brought to
bear on the representatives of the various govern-
ments in the United Nations to bring about the
more immediate creation of an international police
force under the United Nations jurisdiction, and
the handling by the Council of situations like that
presented in Greece ?
Answer: Every effort has been and is being
exerted by the United States Government to bring
about the earliest possible conclusion of the agree-
ments contemplated in article 43 of the Charter
by which members of the United Nations would
make available to the Security Council on its call
armed forces, assistance, and facilities necessary
for the purpose of maintaining international peace
and security. Other members have joined with
the United States in this effort, as evidenced by the
inclusion in a resolution unanimously adopted by
the General Assembly on December 14, 1946, of a
recommendation that the Security Council "ac-
celerate as much as possible" the conclusion of these
agreements. Subsequently, the Security Council
adopted on February 13, 1947, a resolution request-
ing the Military Staff Committee to submit to it
"as soon as possible and as a matter of urgency"
the recommendations previously requested in re-
lation to this matter and to submit by April 30,
1947, recommendations on the basic principles
which should govern the organization of the
United Nations forces.
The disappointingly slow progi-ess which took
place during 1946 in this dilEcult and hitherto
unexplored field of international cooperation and
the obstacles encountered are described in the sec-
tion dealing with the Military Staff Committee of
the President's report to the Congi'ess on the ac-
tivities of the United Nations and the United
States participation therein for the year 1946.
Since the end of the year the pace has, however,
accelerated considerably.
The United States will not relax its efforts to
bring about the earliest possible conclusion of these
agreements and the earliest possible adoption of
general plans and procedures for the use of the
foi'ces. It is not yet possible to predict the date at
which any of these agreements will be concluded.
Any decision under the Charter for the use of
armed forces, even when article 43 agreements
have been concluded, will require unanimity among
the five permanent members — the United States,
China, France, United Kingdom, and the Union
of Soviet Socialist Kepublics.
The second part of this question raises the prob-
lem whether pressure can be brought to bear on the
890
Department of State Bulletin
A/0 TO GREECE AND TURKEY
representatives of the various govermnents in the
United Nations "to bring about the handling by the
Council of a situation like that presented in
Greece". A most acute aspect of the Greek situa-
tion has been for some time the disturbed condition
prevailing on the northern border of Greece. It
was due to the initiative of the United States that
the Security Council appointed an mvestigation
cominission, which at the present time is complet-
ing its on-the-spot inquii-y and is scheduled to
report to the Security Council in April.
After the commission has made its findings and
recommendations, a number of courses of action
will be opened to the Security Council. The
United States will favor a comprehensive program
to be recommended by the Security Council for the
purpose of averting repetition of the present dis-
turbances and for eliminating the causes of fric-
tion between the four states concerned. Prior to
receipt of the commission's report it is, of course,
impossible to determine the detailed form that rec-
ommendations by the Security Council should take.
Generally, in situations like that presented in
Greece, the Security Council has ample authority,
if it finds that the condition endangers interna-
tional peace and security, to recommend to the
parties a variety of methods or terms of peaceful
settlement appropriate to the particular contro-
versy. In case the Security Council should find
that the condition constitutes a threat to the peace,
a breach of the peace, or that an act of aggression
has occurred, it may decide upon a variety of meas-
ures against the aggressor, such as the complete or
partial interruption of economic relations and of
rail, sea, air, postal, telegraphic, radio, and other
means of communication, and the severance of
diplomatic relations with such country. However,
where emergency economic assistance is needed,
such as in the present Greek crisis, the United
Nations does not have at this stage of its develop-
ment either funds or materials at its disposal with
which to alleviate the situation.
As Mr. Acheson has pointed out in reply to ques-
tion 1, even if some organ of the United Nations
should decide to recommend assistance to Greece
and Turkey, it would have eventually to turn pri-
marily to the United States for funds and supplies
and technical assistance. Furthermore, even if the
project were not blocked by the objections of cer-
tain members of the United Nations, much time
would have been lost, and time is of the essence.
Question No. 96: Has there been any under-
standing, oral or otherwise, with the Greeks that
we would furnish other than advisory aid in mili-
tary mattere if it became necessary, that is, that
we would actually use troops if circumstances
seemed to require it ?
Answer: There has been no undei-standing of
any nature to this effect.
Question No. 97 : Have we made any under-
standing, oral or otherwise, that we would lend
economic, military, or other assistance to any Near
Eastern country other than Greece or Turkey,
such as Palestine, Iraq, Trans-Jordan, or nearby
lands ?
Answer: The United States has no intention to
lend economic, military, or other assistance to any
Near Eastern country other than Greece or Tur-
key, except such assistance as might be extended
through the Export-Import Bank, or other Ameri-
can goverimaental agencies, under existing legisla-
tion. In this comiection it should be mentioned
that the Government of the United States is plan-
ning to sell to Iran, at the request of the Govern-
ment of Iran, a limited quantity of military sup-
plies out of American Army surplus equipment
for the use of Ii'an in preserving internal order.
In making the above statement it should be
borne in mind, of course, that the United States
has certaiai obligations to all members of tlie
United Nations under the Charter of the United
Nations.
Question No. 98: In view of the fact that Britain
has stated that she could no longer maintain a
military force in Greece, has she made similar
statements in relation to any other Near Eastern
territory ?
Answer: Great Britain has not stated that she
could no longer maintain military forces in Greece.
She has stated that she feels it necessary to dis-
continue assistance to Greece in the form of fi-
nancial aid and military supplies.
The British Government has made it clear ever
since the landing of British forces in Greece that
these forces would remain in Greece for only a
limited period of time. The British Government
has also indicated that it intends to withdraw such
Supplement, May 4, 1947
891
AID TO GREECE AND TURKEY
British forces as remain in Greece from that coun-
try in the near future. The British Government
has not, however, stated that the primary reason
for the withdrawal of these troops is of a financial
nature.
This Government knows of no British statements
to the effect that she can no longer maintain mili-
tary forces in other Near Eastern territory. Since
the termination of the war, however, Great Britain
has been steadily reducing the number of her
armed forces stationed in the Near East.
Question No. 99: What are the costs of British
maintenance of military establishments in the
Near Eastern countries such as Iraq, Trans-
Jordan, and Palestine?
Answer: The Department of State has no infor-
mation regarding the costs of maintenance of
British military establishments in the Near East.
Question No. 100: In our loan to Turkey, are
there not some vital materials that she could pay
us with ?
Answer: This question appears to overlap with
questions 23 and 24, because repayment in ma-
terials, which can be sold in world markets, would
be the equivalent to monetary repayment and
would therefore reduce the amount of foreign
exchange available to meet Turkey's future re-
quirements in tlie same way that a monetary pay-
ment would reduce the amount of such exchange.
As stated in the reply to question 24, it is not
believed wise or practical to attempt to determine
at this time whether and to what extent repayment
may be feasible.
Question No. 101: To what extent does the De-
partment of State contemplate informing the
United Nations of step-by-step developments in
Greece should Congress authorize the President to
take the steps he has proposed ?
Ansv)er: If the Congress approves the legis-
lation requested by the President to provide aid to
Greece and Turkey, it is expected that agreements
will follow between the Government of the United
States and the Governments of Greece and Turkey
as to the manner in which such aid should be fur-
nished. The Department of State expects to trans-
mit copies of such agreements to the United
Nations as required by paragraph 1 of article 102
of the Charter. The Department would desire.
of course, to keep the United Nations currently in-
formed on the implementation of the United
States program pertaining to Greece wherever the
responsibilities and functions of the United Na-
tions and its related agencies are concerned.
If at any point in the proceedings of the Secu-
rity Council which is now dealing with border dis-
turbances in Greece, or in the proceedings of any
other United Nations organ or agency it appears
desirable or necessary for specific information to
be furnished on the proposed aid to Greece and
Turkey, the United States representative in such
organ or agency will make available the relevant
facts. Senator Austin made a full statement on
the United States program relating to Greece and
Turkey at the meeting of the Security Council
on March 28.
It also sliould be noted that the consideration
which the United States is now giving to the pro-
vision of aid to Greece and Turkey is a public
consideration, with the same information thereby
made available alike to the American public and
to the world. The proposed legislation requires a
report every 90 days which will likewise be a mat-
ter of public knowledge.
Question No. 102: What bearing upon the situa-
tion does the recent report of the FAO have?
Answer: The FAO report deals for the most
part with longer term aspects of Greek economic
reconstruction and recovery. It also contains
many helpful recommendations to the Greek Gov-
ernment, particularly in the field of agriculture,
which could be put into immediate effect.
Before international financial institutions can
make available to Greece the reconstruction funds
recommended by the report, there will be a period
during which Greece must receive emergency aid.
The report recommends that the Greek Govern-
ment apply to the United States Government as
well as to the United Nations and the United
Kingdom for assistance for the continuation of
essential imports. The Goveriunent of the United
Kingdom has stated that it cannot furnisli mate-
rial help after March 31, li)47. The Economic
and Social Council of the United Nations is an
advisory body without funds. Greece's action,
therefore, in applying for aid to the United States
is in accordance with the advice of the report.
Undoubtedly, the Greek Government will en-
deavor to put into effect as soon as possible those
892
Deparfmenf of State Bulletin
AID rO GREECE AND TURKEY
portions of the report which are susceptible of im-
mediate application. The report, therefore, will
be most helpful to that Government and to any
American advisers who may be in Greece in the
immediate future.
For the long-term reconstruction in Greece the
report recommends that Greece apply to the In-
ternational Bank for Reconstruction and Develop-
ment for loans of at least $100,000,000. As has
been previously pointed out, the Greek Govern-
ment has already notified the bank of its inten-
tion to apply for financial assistance on longer
term projects. The FAO report will be of help
to the Greek Government in preparing its applica-
tion. The report does not state, nor is it a fact,
that such a loan by the International Bank is de-
signed to meet or will meet the present emergency.
The FAO reports also suggest that the Greek
Government should request the Economic and So-
cial Council of the United Nations to sponsor a
United Nations advisory mission to Greece. Once
the present emergency situation has been dealt
with, such a mission might be of great value in as-
sisting the Greek Government in a long-term pro-
gram of reconstruction and development.
Question No. 103: In the opinion of the State
Department, did the result of the Greek election
represent the opinion of the majority of the Greek
people? If that is true, is it possible to form a
coalition government in Greece composed of both
leftists and rightists? If such a government is
formed at the instigation of the United States,
could it have the support of the Greek people in
view of the election ?
Answer: In the report of the Allied Mission to
Observe the Greek Elections of March 31, 1946,
it is stated that —
"The Mission found that the proceedings of elec-
tion day were orderly and satisfactory. The
registration lists in large areas contained irregu-
larities but there was no significant amount of
illegal voting. Intimidation existed, in some de-
gree, from both extremes and was even on occasion
given countenance by members of the gendarmerie
but it was not extensive enough to affect seriously
the election. The practice of deliberate abstention
did not reach large proportions.
"The Mission therefore concluded that notwith-
standing the present intensity of political emo-
tions in Greece, conditions were such as to warrant
the holding of elections, that the election proceed-
ings were on the whole free and fair, and that the
general outcome i-epresented a true and valid ver-
dict of the Greek people."
The Department of State concurs in this
judgment.
With respect to the second and third questions
concerning the possibility of forming a coalition
government in Greece, the Mission observing the
elections found that —
"Practically all of the parties of the Left and
three of the minor parties of the Center instructed
their followei's not to vote in the election. . . .
The Mission estimates that the total abstention for
party reasons was 280,000, that is 15 percent of the
valid registrants."
From the foi-egoing it will be seen that in terms
of Greek politics, parties of the Left, which the
Mission found to represent about 15 percent of the
valid registrants, are not represented in the Parlia-
ment. They tiierefore cannot form part of the
coalition government within the terms of the con-
stitution. However, the present Greek Govern-
ment is a coalition government, representing 85
percent of the electorate. It is noted that the Gov-
ernment has announced its intention to hold new
elections in the near future.
Question No. lOy. Did Secretary Byrnes state
our Government position and policy in Germany
when he was at Stuttgart last September?
Answer: In his speech at Stuttgart last Sep-
tember Secretary Byrnes set forth the position and
policy of this Government with respect to
Germany.
Question No. 105: President Truman stated at
the joint session of Congress :
"I believe that it must be the policy of the United
States to support free peoples who are resisting at-
tempted subjugation by armed minorities or by
outside pressui'es."
Was there any agi'eemont at Tehran or Yalta
which placed Turkey and (iieece, or- eitlier of them,
in the sphere of influence of the United States or
Great Britain? Is there anything in either of tiiose
agreements which placed Ciiina, Korea, Poland,
Hungary, or the Balkan States, or any of them, in
the Russian sphere of influence, and would the
Supplement, May 4, 1947
893
AID TO GREECE AND TURKEY
statement by the President apply to those
countries ?
Answer: The complete texts of the agreements
made at Tehran and at Yalta were published in
"Washington on March 24, 1947. Neither in these
documents nor in any others has the United States
been a party to the creation of spheres of influence
in any part of the world. The answer to the first
question and to the. first part of the second ques-
tion is therefore in the negative.
In respect of all countries mentioned the United
States has repeatedly naade clear its support of the
right of these peoples to select their own govern-
ments in free elections, free from coercion and
pressure.
Question No. 106: What is contemplated as to
policy in the Middle East in relation to petroleum
reserves? In Iran? In Iraq? In Saudi Arabia ?
Answer: It should be clearly understood that
oiu' program for assisting Greece and Turkey is not
connected with any oil concessions which American
companies may have in the Near or Middle East.
Our interest is in the preservation of Greece and
Turkey as independent, democratic, economically
sound states.
The objectives of the foreign policy of the
United States, so far as oil is concerned, are of
a miiversal nature. These objectives, as stated in
the Anglo-American petroleum agreement now
pending before the Senate, may be briefly sum-
marized as follows : That the interests of produc-
ing countries be safeguarded with a view to their
economic advancement; that valid concession con-
tracts and lawfully acquired rights be respected;
that the acquisition of exploration and develop-
ment rights be governed by the principle of equal
opportunity; and that supplies of petroleum be
accessible to the nationals of all countries on a
competitive and non-discriminatory basis.
Question No. 107: What has been the nature
and strength of guerrilla opposition in Greece?
Where is its center of support and direction?
Have any Eussians been captured in the fighting?
Ansiver: Our information indicates that guer-
rillas in Greece at the present time number about
13,000. Probably the larger portion of their mem-
bers are not members of the Communist Party.
However, virtually all of their leaders are Com-
munists, and instruction in Communist political
doctrines is regularly given to all units of the
bands. Each imit, down to that of the company,
has a political commissar attached to it.
Our information also indicates that there are
two classes of guerrillas in Greece. One is com-
posed of Greek Commmiist Party members and
those who have affiliated themselves with them.
This group appears to be controlled by the central
authority of the Greek Commmiist Party (KKE)
whose headquarters are in Athens. KKE receives
instructions and suppox't from outside Greece.
The second class is composed of members of NOF
(the "National Liberation Front" of Slav-speak-
ing Greeks living in Gi"eek Macedonia). NOF is
in turn an affiliate or subsidiary of SNOF, which
is the Yugoslav-Macedonian "front" organization.
The headquarters of SNOF are in Skoplje in
Southern Yugoslavia, and the NOF bands in
Greece are clearly directed and to some extent
supplied from that point.
Our information further indicates that NOF
and KJvE bands are mider a single direction so far
as their over-all plans of operation are concerned.
However, their ultimate objectives are not the
same, since NOF aims at separating Greek Mace-
donia from the rest of Greece and incorporating it
into the Yugoslav Federated Macedonian Repub-
lic ; whereas KKE wishes to maintain the unity of
Greece and establish a Communist regime through-
out the country. For the present the two factions
have submerged their differences and are working
closely together.
Little or no evidence has been obtained that the
guerrilla bands are composed of any but Greek
nationals, although many of these have received
training and supplies in neighboring countries.
So far as the Department is aware, no Russians
have ever been identified as members of the guer-
rilla bands.
Question No. 108: Wliat is the extent of Brit-
ain's commitments to Turkey ?
Answer: Other than certain credits previously
extended but not yet used up, Great Britain has
no present financial commitments to Turkey.
Britain had, however, contemplated the supply to
Turkey of substantial quantities of military equip-
ment, and the Turkish Government is understood
to have been counting upon this assistance. The
894
Department of State Bulletin
AID rO GREECE AND TURKEY
British have now stated that they will be unable
to go ahead with this tentative program.
In the political field, Great Britain is a party
to the Anglo-French-Turkish treaty of mutual
assistance of October 19, 1939. Britain is there-
fore committed to assist Turkey under certain
conditions in case of aggressive war in the Medi-
terranean region.
Question No. 109: How do the Greek and Turk-
ish Governments expect to effect a transformation
of their deficit economy to a balanced or surplus
economy in any foreseeable future?
Answer: One of the main purposes of the Greek
program is to provide economic rehabilitation and
reconstruction in an amount that will be adequate
to serve as a basis on which further economic re-
covery could take place to correct her present defi-
cit position. The Turkish economy has not been
and is not now a deficit economy. It is believed,
however, that if Turkey were required to finance
the modernization of her military forces out of
her own resources that her economy would be-
come a deficit economy.
Question No. 110: What percentage of the $240,-
000,000 Britain spent in Greece last year found its
way into permanent economic rehabilitation?
What percentage went into military activities?
What percentage went into relief?
Answer: It is our understanding that British
assistance to Greece last year for purposes such as
currency stabilization and purchase of essential
goods and equipment which may be deemed to con-
tribute to the permanent economic rehabilitation
of Greece, constitute approximately 42 percent of
total British aid in 1946. Relief extended in-
directly through the British contribution to
UNRRA accounted for about 13 percent of total
British aid. Assistance to the Greek armed forces
represented roughly 45 percent of the total.
Question No. Ill: Why is the proposed program
of assistance to Greece and Turkey in the self-
interest of the United States?
Answer: Should Greece or Turkey, as a result
of our failure to act, find itself in a position where
its independence is compromised or should its gov-
ernment be overthrown against the will of the
majority of the people, the resulting situation
would have profoundly disturbing psychological
and political effects on all countries in that region
and many nations outside the region. Confusion
and disorder might well spread throughout the
entire Middle East.
Thus, stability would be disrupted in vital areas
of the world; the foundations of the United Na-
tions would be shaken; and the faith of nations
in the ability of democracy to maintain itself in
the world would be seriously weakened.
It is obviously in the self-interest of the United
States to prevent the development of such a situa-
tion.
Suppfemenf, May 4, 1947
895
Total Assistance Program to Foreign Countries
LETTER FROM ASSISTANT SECRETARY THORP TO REPRESENTATIVE EATON
Department of State,
Washington, April 11, lOJfl.
The Honorable Charles A. Eaton,
Chairman, House Foreign Affairs Co<m-
mittee.
My Dear Mr. Eaton : Before he left for Geneva,
Mr. Clayton asked me to make available to the
House Foreign Affairs Committee the information
requested by Mr. Vorys at the hearings on aid to
Greece and Turkey, held on March 24, 1947. Mr.
Vorys asked for the best estimate of "what the
total assistance program to other nations in addi-
tion to Greece and Turkey" would be for the next
year. This information I have outlined below as
follows :
Table I : Requests for new funds for the balance
of the fiscal year 1947 and for the fiscal year 1948
for the relief of foreign countries.
Table II : Estimated expenditures on behalf of
foreign countries in the fiscal year 1948 out of
funds previously appropriated and presently re-
quested.
I hope that this information will answer Mr.
Vorys' inquiry.
Sincerely yours,
WnJARD L. Thorp,
Assistant Secretary.
Table I. — Appropriations requested for assistance to for-
eign countries
[Millions of dollars]
Category of aid
Anticipat-
ed supple-
mental,
fiscal year,
1947
Recom-
mended,
fiscal year,
1948
Total
Post-UNRRA aid (Austria, China,
Greece, Hungary, Italy, Poland,
Trieste) . ...
350
400
300
725
144
'76
350
Special aid to Greece and Turkey . .
Relief to occupied areas (Germany,
40O
1,025
144
Philippine-aid program
' 76
Total
1,050
945
1,995
' Includes a small amount for health, trade, and civil aviation organizations.
Table II. — Estimated expenditures on behalf of foreign
countries
[Millions of dollars]
Category of aid
Post-UNRRA aid
Special aid to Greece and Turkey .
Relief of occupied areas
Wind-up of UNRRA program. . .
United Kingdom Treasury loan . .
Export-Import Bank loans
Philippine-aid program
International Refugee Organization
Total
Estimated
expendi-
tiu'es, fiscal
1948
260
300
645
305
1,200
730
137
76
3,643
896
Department of State Bulletin
Urgency of Action on Proposed Legislation
MESSAGE FROM THE SECRETARY OF STATE TO THE PRESIDENT
PRO TEMPORE OF THE SENATE >
Dear Senator Vandenberg :
I understand some question has arisen as to my
participation in the Greek-Turkish aid program.
As you know, prior to my departure for Moscow,
I participated in the formulation of this program
and in tlie decision to go forward with it. When
I reached Paris on March 6, the President tele-
graphed the proposed text of his message of March
12 and I informed the Department that I fully
concurred.
I personally, and for the State Department,
attach the highest order of urgency to immediate
passage of the Greek-Turkish aid legislation. In
my opinion the program proposed is indispensable
and I am in complete accord with the actions taken
by Mr. Acheson for the Department and by the
Foreign Kelations Committee of the Senate, in
urging the Congress to pass this legislation.
Faithfully yours.
George C. Marshall
' Contained in telegram from the Secretary of State to
Acting Secretary Acheson dated at Moscow, Apr. 19, 1947.
Supplement, May 4, 1947
897
Report of the American Economic Mission to Greece^
PREFACE
The American Economic Mission was formed
and sent to Greece by the Department of State at
the request of the Greek Government. Its func-
tion was to examine the economic conditions in
Greece and determine what outside assistance the
country would need in attaining recovery and re-
construction and how the Greek Government could
make the most effective use of the country's own
resources for these purposes.
The Mission was in Greece from January 18 to
March 22, 1947, and during that time visited al-
most every section of the country. Farmers, Gov-
ernment officials, factory workers, businessmen,
economists, engineers, and hundreds of other peo-
ple and organizations were consulted by the Mis-
sion in its travels and investigations. While time
did not permit an exhaustive study of any one
phase of the economy, almost every phase was ex-
amined at least to some extent.
The Mission consisted of the following people :
Ambassador Paul A. Porter, Chief
Leslie L. Rood, Executive Secretary
Stephen Ailes, Counsel
Dillon Glendinning, Finance
William M. Rountree, Economics
Francis F. Lincoln, "
John D. Fitch, Engineering
Print Hudson, Agriculture
Dorothy I. Page, Secretary
Ellen F. Broom,
Mary Nicholson, "
^ The Department of State released to the press on
Apr. 30, 1947, the summary and recommendations of the
American Economic Mission to Greece.
The complete report consists of a summary and recom-
mendations; chapters on public finance, currency, banking
and credit, international commercial and financial rela-
tions, Government administration, price, rent and wage
controls, reconstruction and development, industry and
mines, agriculture, food and fishing, shipping, and foreign
aid since liberation ; and appendices.
SUMMARY
The people of Greece have an opportunity tO'
move forward to an era of reconstruction and in-
ternal peace. Alternatively if the present policies,
of drift and expediency are continued, they will
result in economic disaster to all her people and
perhaps forfeit for a generation Greece's chance ta
rebuild and to establish a stable economy. The
American Economic Mission to Greece has at-
tempted to discover what foreign aid is needed
and what internal economic and administrative
measures must be employed if Greece is to move
forward.
We have examined problems of governmental
organization, budget expenditures and revenues,
export potentialities and import requirements,
monetary and credit policies, reconstruction and
development, and many other related matters.
Our anal3'sis of the economic aspects has not been
easy; they are closely related to and substantially
affected by political, military, and psychological
considerations. From an intensive study of
Greece's current problems and a survey of her fu-
ture potentialities, we have reached conclusions as
to how the economy can be placed on a reasonably
self-sustaining basis.
First, however, it seems appropriate to consider
certain broad factors which have operated as pre-
ventatives to economic progress since liberation.
There is the inescapable conclusion that in spite
of $700 million in foreign assistance, Greece dur-
ing the past two years has merely managed to sur-
vive. There are exceptions, of course, but, in
general, economic conditions have improved but
little over those prevailing at the time when the
Nazi forces were expelled from the country.
Bitter internal strife and the rapid rate of turn-
over of the Governments have created a climate of
insecurity and instability that has prevented any
rational planning. Since the war, there have been
898
Department of State Bulletin
AID TO GREECE AND TURKEY
seven changes in the Greek Government. No gov-
ernment has been able to develop an effective eco-
nomic policy and to inaugurate necessary controls.
Those controls which have been attempted have
failed as a result of various causes, among which
is the lack of effective Government machinery for
impartial administration. Partly because of these
factors, private capital, instead of devoting itself
to reconstruction and development, has been pre-
occupied with schemes to hedge its risks outside
the Greek economy.
The security situation has had a direct effect
upon the economy. Not only has this discouraged
the desirable repatriation from abroad of sizable
amounts of private Greek capital, but the civil
strife of December 1944 stimulated social and
political tensions of such bitterness and intensity
that the masses of the Greek people have fi'om that
time lived in a perpetual state of fear. The suc-
ceeding Governments have not been successful in
ameliorating this situation and hence there is lack-
ing the national unity which is so clearly a pre-
requisite to a program of economic reform and
recovery. Operations of organized bands of
guerrillas and fear of invasion from the North
have resulted in the maintenance of military and
police forces numbering in the neighborhood of
150,000. This has been a tremendous drain upon
the resources of the country and the primary cause
of the budget deficit, even though the foreign ex-
change requirements for military expenditures
have thus far been met by the British. Greece has
such limited resources that she cannot maintain
alone armed forces of their present size.
The psychology of certain elements in Greece
has operated as a serious impediment to recovery.
There has been a sense of helplessness, and in some
quarters a feeling that because Greece suffered so
much during the war, it is now entitled to the care
of its richer Allies. There is the widely held view
that external factors in Greek problems are so
large that individual efforts are futile. The lack
of confidence among Government officials and the
people in the ability of Greece to save itself finan-
cially and the belief that it must depend on aid
from abroad have contributed to an appalling in-
ertia. In this unhealthy psychological state,
Greece simply has not been able to apply to its
own problems the determination and resolute ac-
tion essential if she is to meet the critical issues
she now faces.
There exists a wide disparity in the living stand-
ards and income throughout all Greece. Profit-
eers— that is traders, speculators, and black mar-
keteers— thrive in wealth and luxury, a problem
with which no government has effectively dealt.
At the same time, the masses of people live on a
bare subsistence. The profiteers are relatively few
in number and their aggregate wealth, if divided
up among the population, would effect little im-
provement of general living conditions ; neverthe-
less, their luxurious manner of living in the midst
of poverty serves to embitter the masses and to
underline the hardships of the poor. There is a
vast amount of concealed unemployment with some
20 percent of the population employed by or par-
tially dependent upon the state. The substandard
levels of existence of the civil servants, indigents,
pensioners, and other dependents is an important
contributory factor to the political and social ten-
sion which characterizes Greece today. Since lib-
eration no effective measures have been taken to
provide useful work for the employables among
this large group of the population.
Foreign observers in Greece generally agree that
the past two years have failed to register a prog-
ress toward stable recovery commensurate with
the foreign aid given. The time bought by
UNRRA relief, by the free sale of gold, and by
other devices of expediency has not been utilized.
The various Greek Governments, lacking in
strength, have been able to accomplish little.
UNRRA, zealous of its mandate to avoid intrusion
in internal affairs, was not always successful in
prevailing upon uncertain and hesitating officials
to program more effectively the distribution of re-
lief and reconstruction supplies. The British
Economic Mission, operating under the terms of
the London agi'eement of January 1946, was simi-
larly unsuccessful. The Currency Committee,
operating under the authority of Greek law, has
performed a useful function during the past year,
but there is a basis for the conclusion that its
earlier policies were of such a conservative and
rigid character that reconstruction and develop-
ment were actually inhibited.
Thus, two and one half years after the libera-
tion, Greece finds herself on dead center in spite
of substantial foreign aid and competent foreign
Supplement, May 4, 7947
899
AID TO GREECE AND TURKEY
advice. The Mission has sought to analyze the
causes of the failure of recovery processes to get
under way so that the mistakes of the past can, if
possible, be avoided, and so that the assistance
forthcoming from the United States will not
simply be used to compound previous errors.
Internal pacification and resolution of the
border disputes are the two most important needs
in Greek recovery. It is obvious that the existing
state of wide-spread violence affords an unsuitable
climate for economic development.
It is hoped that the United Nations Commission
which was investigating the troubles on Greece's
northern borders while this Mission was studying
the Greek economy will be able to recommend
means of eliminating at least a part of this prob-
lem. With this settlement should also come an
effort on the part of those opposing political ele-
ments in Greece interested in the maintenance of
Greek independence to compose their differences
and work for the common benefit of the country.
Until the internal political tensions are relieved,
Greece's economy cannot revive.
The Mission has considered means of meeting
the principal economic difficulties of the country.
This involves placing on a self-sustaining basis an
economy which has always been weak. Greece
has a total area of approximately 50.000 square
miles. Of this, less than 20 percent is arable. The
standard of living for the vast majority of its
7,500,000 population has always been dangerously
low even though there has been foreign borrowing.
National income, measured by Western standards,
has always been low — one of the lowest in all
Europe. Industrial development was only begin-
ning to become a significant factor in the late
1930's, and at its peak bore to the economy only a
fraction of the importance of the country's primi-
tive agriculture.
Greece today faces a desperate economic crisis —
one that she cannot meet alone. Even considering
UNKRA goods undistributed or left in the pipe
line and goods to be provided under the post-
UNRRA relief program, there will be wide-spread
suffering unless substantial foreign assistance is
forthcoming. The dimensions of this current
crisis can best be shown by the following facts :
(1) The tentative estimated Greek budget, in-
cluding the expanded military establishment, in-
dicates a deficit of $290 million for 1947, or about
three times the amount of currency now in cir-
culation ;
(2) reserves of unrestricted foreign exchange
by the end of 1946 were too meager to insure im-
port of Greece's minimum needs, necessitating a
severe restriction of basic imports in the absence
of immediate outside assistance;
(3) pressures on the retail price level are severe
and further marked increases are indicated unless
there are immediate corrective measures;
(4) wage demands are accumulating as a result
of the foregoing factors, adding the threat of wage
inflation to the prospect of budget inflation.
In short, it appears that in the absence of sub-
stantial foreign assistance and the adoption by the
Greek Government of strong control measures,
another round of extreme inflation with all of its
disastrous economic and political consequences is
a certainty.
It is, therefore, apparent that there exists a need
for unmediate steps if inflation is to be prevented.
Recovery and reconstruction in Greece cannot be
based upon the present imstable economic founda-
tions. ^Vhile the Mission's earlier inquiries were
directed towards the ascertainment of minimum
relief requirements during the post-UNRRA pe-
riod and in addition the development of measures
whereby the Greek economy could make the maxi-
mum use of her own resources, the Mission has
more recently considered the problem on the as-
sumption that the United States Government
would contribute very substantial amounts for the
restoration of the economy of Greece, and that
American technicians would advise the Greek Gov-
ernment on economic affairs. In this way it is
hoped that the first steps can be taken whereby the
economy of Greece could be restored to a sound
level in order that the Greek state might survive
as a free and independent entity devoted to demo-
cratic principles.
For the period from April 1, 1947, to July 1,
1948, it is estimated that a minimum of $300 mil-
lion outside assistance in addition to UNRRA,
post-UNRRA relief, and surplus-property imports
will be required. This estimate represents in the
judgment of the Mission the minimum aid which
should be provided. When it is considered that
during 1946 the total of UNRRA and British mili-
tary subsidies was over $300 million, the total
amount estimated may be too conservative. How-
900
Department of State Bulletin
AID rO GREECE AND TURKEY
ever, the Mission lias operated on the assumption
that the Greek Government with the assurance of
this amount of support will adopt and enfoi'ce
economic policies which heretofore either have not
been put into effect or having been proclaimed were
evaded. In making wise use of this outside aid
and in the development and implementation of
sound economic policies, American personnel will
be needed. An American recovery mission should
go to Greece.
The uncertain political and economic conditions
have caused producing groups in Greece to lack
faith in the strength and stability of their Govern-
ment and of their economy. The devastation
wrought by the war, the civil strife of December
1944, and three successive devaluations of the
drachma have obviously further destroyed confi-
dence. Therefore, if the Government of the
United States is going to assure the future of
Greece, a continuing program is required. This
program should not be limited in concept to a
single year. It is emphasized that this program
of recovery and restoration should envisage a pe-
riod of about five years. It is hoped that direct
American financial assistance will not be neces-
sary after June 30, 1948, but the program should
be continued in any case whether under American
auspices or under the United Nations. It is im-
possible to forecast whether at that time the finan-
cial burden can be turned over to an international
agency. The mere declaration of such intentions
would do much to revive confidence and make
easier the adoption of stringent measures that will
be necessary to achieve the immediate stability
needed for reconstruction and development.
RECOMMENDATIONS
I
Amount of Aid
Greece will need foreign -financial aid during the the pre-war military expenditure of $40 million
next five years because of the destruction of war exerted pressure on the relatively low standard of
and her current circumstances. It is recommended living. With a 1946 national income considerably
that the United States extend immediate financial less than pre-war in real terms, the cost of the
aid to Greece sufficient to meet her requirements military as currently estimated by the Greek Gov-
for relief, reconstruction, and military pttr poses eminent is far beyond the capacity of the Greek
wntil June 30, 1948 economy.
The second item of importance is reconstruction.
The Greek economy will require foreign finan- -pj^^ estimated cost of a five-year program of se-
cial assistance until the burden of the military and lected reconstruction and development projects is
public security can be substantially reduced and about $335 million. This program was determined
probably until essential reconstruction has been ^j^ ^^^ jjasis of minimum requirements and does
carried out ; the latter may take five years. The ^ot purport to indicate the costs of completed re-
amount of aid required after the Greek fiscal year construction of public and private property in
1947-48 depends, one, on the extent to which for- Greece.
eign financial aid may be devoted to reconstruction ^^^^ .^ ^.^^.^^^ ^^ ^^^^^^^
at an early date as opposed to military expendi- ^^^
tures and, two, on the extent to which the Greek ^.^^^ ^^^^ ^'"^'^ -^2 ' ™6
Government marshals its own resources and makes gpcond year . . . . . . . . . 35 40 75
effective use of outside aid. Third year 33 39 72
For 1947-48 the largest single item of expense is Fourth year 23 32 55
the military. The current burden of the military. Fifth year J3 ^ ^
estimated at about $180 million for the Greek fiscal ^^^^^ . . . . 14S 187 335
year 1947-48, would have been far beyond the
capacity of the pre-war Greek economy. With a The sum stated in the table for the first year will
pre-war national income estimated liberally at have to be supplemented by very Large amounts
about $600 million, or about $80 per person, even for commitments to be made during this year.
Supp/emenf, May 4, 1947 '°'
AID TO GREECE i4N0 TURKEY
After the early months of engineering planning
have been completed these additional moneys -will
have to be commited for reconstruction equipment
and material and in setting up funds for the com-
pletion of projects already begun.
The pre-war economy of Greece could probably
have financed internally the local costs of this pro-
gram, but would undoubtedly have required for-
eign credits to cover the importation of equipment.
At present, it is clear that for the first year (and
possibly to a great extent for the second year) both
the internal and external costs of reconstruction
will have to be borne from abroad.
If United States aid, sufficient to meet internal
and external costs of the military and of the re-
construction program through June 30, 1948, is
forthcoming, two additional objectives of major
and immediate importance can be achieved.
First, since revenues of the Greek Government
together with other assistance already forthcom-
ing are adequate to meet non-military and non-
reconstruction expenses, the budget will be in
balance. With no increase in the note issue in
prospect from a budget deficit, faith in the drachma
should be substantially restored, which in turn
should promote an increase in business activity, a
decrease in hoarding, a tendency for prices to de-
cline, and a reduction in wage demands. The
balancing of the budget will go far to meet Greece's
current economic crisis.
Second, under this program, Greece will be pro-
vided with civilian goods sufficient in quantity not
only to meet minimum civilian requirements but
also to meet the needs of a Greek people engaged
in a military and reconstruction effort. In fact,
if further serious inflation is to be avoided, it will
be necessary to offset internal expenditures for the
military and reconstruction with an adequate
volume of consumer goods. This will be made pos-
sible because all of the American aid remaining
after the outlay for military supplies and capital
equipment for reconstruction will be used either
for the foreign purchase of consumer goods or
for the purchase of industrial and agricultural
supplies which will in turn augment Greek pro-
duction of consumer goods.
Under the program here described the Greek
budget and balance of payments for the Greek fis-
cal year beginning April 1, 1947, would be roughly
as follows :
902
BUDGET'
(MilUona of
Expenditures dollars)
1. Military and Public Security 181
2. Reconstruction 76
3. Purchase of Government Distributed Supplies . . SO
4. Other 217
Total 554
Receipts
1. Ordinary Taxes 150
2. Miscellaneous Receipts 7
3. Sale of UxN'RRA and State Distributed Supplies . 115
4. Sale of Allied Surplus Property 30
5. Export-Import Bank Credit for Reconstruction . 12
6. Direct U.S. Aid '
a. Post-UXRRA Relief Bill 50
b. Greek-Turkey Aid Bill 190
Total 554
BALANCE OF PAYMENTS
Receipts
1. Exports 120
2. Net Invisibles 35
3. Allied Surplus Property Credits 35
4. Export-Imijort Bank Credit 12
5. UNRRA 12
6. Direct U.S. Aid
a. Post-UXRRA Relief Bill 50
b. Greek-Turkey Aid Bill 190
Total 454
Payments
1. Imports for Civilian Economy 320
2. Reconstruction Equipment 34
3. Supplies for Military 100
Total 454
Due to the uncertainties regarding the future of
Greek military expenditures, it is impracticable to
predict beyond the coming year the extent of for-
' The dollar equivalents for budget categories shown
here are only approximate, using a conversion rate of
8,000 drachma per dollar for internal expenditures.
' The proposed total aid to Greece is tentatively $350
million ($300 million for reconstruction and military aid
under the Greek-Turkish Aid Bill and $00 million for re-
lief under the Post-UXRRA Bill). The above figure of
$240 million is for the twelve months' period Apr. 1, 1947,
to Apr. 1, 1048. At this rate another $00 million would be
expended from Apr. 1, 1948. to July 1, 1048. After the
early months of engineering planning and construction
organization the remainder of the funds will be used in
making commitments for reconstruction equipment and
material and in completing projects already begun.
Department of State Bulletin
AID rO GREECE AND TURKEY
eign aid which Greece will require. It is clear,
however, that the amount of reconstruction and
military aid required can be substantially reduced
if the Greek Government is prepared to mobilize
the country's own resources by taking measures
such as those set forth in part II of these recom-
mendations. It is also clear that if these measures
are to be taken, advice and aid from an American
mission along the lines stated in part III will be
necessary.
II
Measures To Be Taken by Greece
The extending of United States aid to Greece
should be accompanied by effective measures by
the Greek Government for the utilization of Greek
resources for recovery of the country
A. Measures To Increase Ee\'enues and Kedtjce
EXPENDITUKES
1. Revenues. Ordinary revenues for the Greek
fiscal year 1947^8 are estimated in real terms at
65 percent of pre-war. The Greek Government
must take affirmative steps to increase its own rev-
enues, including the following :
(a) A study should be instituted as a long-term
basis for: (1) eliminating unproductive taxes and
simplifying the tax structure; (2) reallocating the
sources of revenue between the national and local
governments.
(b) Income tax enforcement should be improved
by (1) compulsory registration of all commercial
enterprises and maintenance by them of prescribed
accounts for income tax purposes; (2) substantial
increase in penalties now imposed for tax viola-
tions, including imprisonment for falsification of
income tax returns.
(c) There should be a revision upwards on an
average of at least 50 percent of present schedules
of income tax assessments on professional occupa-
tions and commercial enterprises which are based
on estimated ability to pay.
(d) In considering customs and excise tax poli-
cies, measures should be taken to prevent importers
from making or retaining excessive profits arising
from the present discrepancy between internal and
external prices.
(e) The present restrictive community taxes on
the transportation of goods should be abolished
as soon as alternative sources of revenue are found.
2. Expenditures. The Greek Government ex-
penditures for 1947-48, called for in the tentative
budget estimates, are estimated in real terms at
200 percent of pre-war. While there is unques-
tionably some exaggeration in the estimates and
considerable wastage of Government funds
through inefficient administration, sizable reduc-
tions in expenditures can only be achieved by (1)
a reduction of military expenditures and (2) a
sufficient recovery of the economy to permit the
Government to terminate distribution of supplies
to the general public at a loss and to terminate
subsidization of public utilities. As immediate
measures designed to reduce expenditures can con-
serve the use of funds, however, the following steps
would achieve results of some significance :
(a) The Government audit and accounting sys-
tem should be revised, particularly in the Ministry
of Supply which is handling state-distributed
foodstuffs and other essentials, including UNERA
goods.
(b) The budget should be prepared and an-
nounced before the start of each fiscal year and
should constitute a real control of Government ex-
penditures. The control of the Minister of
Finance over the use of funds appropriated to
other ministries must be strengthened.
(c) All "special funds" should be abolished and
brought within the regular budget.
(d) The pension and indigent lists should be re-
viewed, and reduced, and no new names should be
added without the approval of the local welfare
board.
(e) Demands for wage increases of civil servants
and other persons whose salaries are directly or in-
directly paid by the Government should be re-
viewed by a wage board which should be estab-
lished, and commitments for increased wages
should not be made without the approval of the
wage board.
B. Measures To Augment and Conserve Foreign
Exchange
Greece's exports have been small since libera-
tion. Loss of Central European markets, unset-
Svpplement, May 4, 1947
903
AID TO GREECE AND TURKEY
tied internal political and economic conditions,
overvaluation of the drachma, and other factors
have tended to restrict exports. On the other hand
considerable amounts of foreign exchange have
been wasted during the past year through importa-
tion of luxury goods, through Government sale
of gold, and through black-market currency opera-
tions. A long-range solution of Greece's foreign-
exchange problem will only be achieved by ex-
pansion of Greece's export trade and development
of a domestic supply for some of her present im-
port needs. The situation faced now, however,
can be ameliorated by some immediate measures.
1. The exchange rate and the policy on the Gov-
ernment sale and purchase of gold should be re-
considered after consultation with the Interna-
tional Monetary Fund.
2. Efforts should be made to build new markets
and to restore the pre-war European market for
Greek exports; as to some commodities, notably
European grades of tobacco, temporary barter ar-
rangements should be worked out with countries
whose trade does not flow through ordinary chan-
nels.
3. The embargo on export of olive oil should be
lifted ; exports should be licensed under a program
which provides adequate protection on the local
price, which brings the foreign exchange received
from the sale of oil under the control of the Gov-
ernment, and which returns to the Government
through an export tax a substantial share of the
difference between the local and foreign prices.
4. The national economy's benefits from Greek
shipping should be increased by requiring that a
considerable percentage of the profits of each ship
be brought into the country in foreign exchange.
5. The tourist trade should be developed by the
Government.
6. Incoming and outgoing mail should be sub-
jected to financial censorship so that existing pro-
hibitions against import and export of foreign
exchange can be enforced.
7. Imports should be strictly controlled. Im-
portation of luxury goods should be prohibited
and permits and foreign exchange granted only for
goods which will be of maximum benefit to the
economy. Import needs on an annual basis should
be determined and detailed plans for periods of at
least six months should be prepared. The issuance
of licenses should be scheduled accordingly.
C Measures Designed To Achieve Government
Administrative Eeform
The effectiveness of the Greek Government is
considerably reduced by an overexpanded, under-
paid, and demoralized civil service, and by a lack
of organization among and within the various
ministries. These are faults which can only be
remedied by long continued efforts. Such efforts
should be started now.
1. The present civil service should be reduced
in numbers, its pay scale should be increased, and
improvement of the caliber of its personnel should
be accomplished through training and selection.
The United States Government should immedi-
ately accept the recent invitation of the Greek
Government to send a group of specialists to study
this problem and make recommendations.
2. The reduction in the number of ministries
and the rearrangement of functions recently rec-
ommended by the Committee on Reorganization of
Ministries of the Greek Govermnent should be
immediately put into effect. Within the Minis-
tries there should be a substantial increase in the
amount of delegation of authority ; detailed duties
of ministers such as conferences with individual
members of the public should be greatly reduced.
D. Measures Designed To Benefit the Economy
AS A Whole
1. Direct controls over the economy. American
aid, which will mean a balanced budget, an in-
crease in the supply of goods, and some alleviation
of the current inflation psychosis, is the only
method of combating inflation in Greece which
has any chance of success. Positive controls
alone could not begin to meet the problem, given
the current condition of Greece's civil service, the
public attitude toward "police" controls engen-
dered by four years of occupation, and moi'e im-
portant still, the very size of the inflation problem
in Greece. Nevertheless, for psychological rea-
sons, and because some benefit will undoubtedly
result, measures already undertaken in Greece to
control price, rent, and wage increases should be
continued and some form of anti-hoarding meas-
ure should be added.
(a) The Government should attempt to develop
a wage policy and some machinery for settling
management-labor disputes. It is realized that
904
Deparfmenf of State Bulletin
AID TO GREECE AND TURKEY
previous eiforts of the Greek Government to reg-
ulate wages have been completely unsuccessful,
that present legal wage rates are dwarfed by
wages actually paid, and that under current con-
ditions efforts to institute direct wage controls
would probably be unavailing.
(b) The present "price controls" should be con-
tinued and improved in spite of their somewhat
limited scope and value. The "cotton control"
has apparently had a beneficial effect on textile
prices, and retail margin limitations and fixed re-
tail food prices have kept retailers from gouging
the public. However, an elaborate system of price
control with wide coverage has never been at-
tempted in Greece and probably could not be put
into effect successfully.
(c) Rent control should be continued and ex-
tended to protect new tenants. Some investiga-
tion is required, however, to determine the desir-
ability of relaxations where inflationary develop-
ments and devaluation of the drachma have caused
controls to become overly burdensome on property
owners.
(d) An anti-hoarding campaign should be
undertaken by the Government. Accompanied
by the proper publicity, such a progi-am should
take the form of an inventory control program
under which the Government confiscates inven-
tories which are clearly in excess of business needs
after reasonable opportunities to unload have been
given.
2. Reconstruction and development of puhlio
works. Greece faces a reconstruction problem of
immense proportions. Road and railroad bridges,
railroad equipment, water systems, ports, and
power stations were destroyed during the war.
The Corinth Canal, of major importance in
Greece's economic life, was blocked by huge land-
slides set off by German dynamite. Lack of
maintenance has seriously reduced the usefulness
of remaining roads and of agriculture drainage
projects. Reconstruction of many of these facili-
ties is a prerequisite to the restoration of the Greek
economy. This reconstruction, however, must be
accomplished pursuant to a master plan which
makes due allowance for funds available and the
absorptive capacity of the Greek economy.
(a) A planning board composed of economists
and engineers and charged with the responsibility
of working out a program for reconstruction of
public works and public utilities should be estab-
lished immediately by the Government. A recon-
struction program should be prepared which se-
lects for immediate attention the reconstruction of
those facilities which will contribute most to the
rapid restoration of the general economy. Where
development projects will contribute more, they
should be given preference. To illustrate the kind
of projects which should receive top priority, the
following list is offered :
(1) Permanent reconstruction of important
sections of roads in all parts of the country se-
lected on the basis of traffic, population, and
availability of other transportation.
(2) Restoration of bridges and tunnels on
the Athens-Salonika, Salonika-Chevgheli, and
Plati-Edhessa railroad lines.
(3) Supply of motive power and rolling stock
for the present needs of the railroads.
(4) Necessary replacement of rails and ties on
restored railroad lines.
(5) Restoration of essential facilities at the
ports of Piraeus, Salonika, and Volos in the
order named.
(6) Restoration of the Corinth Canal, includ-
ing high-level bridge or bridges for road and
railroad service.
(7) Restoration of flood control, drainage,
and irrigation works in the Salonika, SeiTes,
and Drama plains.
(b) Efforts should be made to induce foreign
capital to undertake on a concession basis or other-
wise projects which are self-liquidating in char-
acter.
3. Indtistry. Greek industry, always a rela-
tively small factor in the economy of the country,
was substantially damaged by war and subsequent
internal strife. Progress toward recovery has
been slow due to insecurity, lack of credit, short-
age of motive power, inability to obtain spare parts
for foreign machinery, inadequacy of transporta-
tion, and high costs of production. Several of
these deterrents would be corrected if the recom-
mendations of the Mission were carried out. But
recovery only to the pre-war level of industrial ac-
tivity would be inadequate if Greece is to become
reasonably self-sufficient; limitations upon agri-
%upplement, May 4, 1947
905
AID TO GREECE AND TURKEY
cultural development make industrial expansion
essential.
(a) The present high costs of production should
be reduced by (1) correction of the abuses of Gov-
ernment-granted monopolies and subsidies; (2)
abandonment of Government policies necessitating
retention of unnecessary employees, and (3) imple-
mentation of other recommendations contained
herein affecting the cost of production.
(6) Preference in granting import licenses
should be given (1) to raw materials over finished
goods which economically can be produced in the
country, and (2) to raw materials for the produc-
tion of goods to be sold at low prices.
(c) Credit to industries for current operations
and approved new industries should be granted
where the need is clearly demonstrated; all indus-
tries granted credit should be closely observed to
insure proper use of the credit.
(d) An industrial development program utiliz-
ing local resources and making Greece viable should
be formulated. Mining, lignite extraction, metal-
lurgical and agricultural processing industries par-
ticularly should be explored. Plants and equip-
ment which may be acquired as war reparations
from Germany or Italy should be used to the
maximum.
4. Agriculture and fishing. Agriculture in
Greece is nearer to the pre-war level of production
than any other segment of the Greek economy.
Much of the destroyed draft power has already
been restored, and the small scale and even primi-
tive nature of Greek agriculture have enabled re-
habilitation by the exertion of individual effort.
Fishing has been handicapped by lack of replace-
ments for war-destroyed boats as well as by its
traditional methods.
A distinguished group in 1946 studied the agri-
cultural problems of Greece for the Food and Agri-
culture Organization of the United Nations. Their
report advocates as ways of raising the contribu-
tion of agriculture to the economy of the country
(1) the greater utilization of water through irri-
gation and drainage, (2) the shift of land from ex-
tensive to intensive crops, and (3) the educating
of the farmers in modern methods of production.
Apart from those long-range measures, which
can be initiated, there are immediate steps which
can be taken for increased pi'oduction and im-
proved use of the resulting products.
{a) A Government program for the collection
of the 1947 grain crop should be initiated to insure
proper use of bread grains ; imported grains should
not be distributed in areas of surplus production
until after the exhaustion of the indigenous
supplies.
{b) Facilities should be developed for produc-
tion within Greece of all the country's seed re-
quirements.
(c) Credit at low interest rates and in adequate
amounts should be made available to farmers and
agricultural processors; this should be done
through cooperatives where feasible.
{d) Export of agricultural commodities should
be developed through standardization of quality
and grading of products, improvement in proces-
sing and packing, and encoui-agement of the grow-
ing of citrus fruits, table grapes, early vegetables,
and other products which can be shipped to Euro-
pean ports in refrigerator ships.
{e) The fishing fleet should be increased to per-
mit a full exploitation of the resources available.
Ill
Administration
The Greek Government will need the assistance of
experienced American administrators, economists,
and technicians to insure that American aid and
Greece''s own resources are used effectively in
creating a stable, self-sustaining econoiny. An
American recovery mission should be sent to
Greece
The major problem is the establishment of a
mission is the extent of its powers. The Mission
of tile Program
must be able to assure efficient use of American aid,
but it must also conform to over-all purposes of
United States policy by operating in connection
with Greek problems in a manner acceptable to the
Greek Government.
One means of meeting this problem would be to
have in addition to an advisory mission represent-
ing the United States a number of American and
other foreign technicians employed as individuals
906
Department of Sfafe Bulletin
AID TO GREECE AND TUKKBY
by the Greek Government in key Government
posts. The advisory mission would aid in the
formulation of policy and advise on the admin-
istration of these policies, while the individuals
employed by the Greek Government, such as the
foreign members of the Currency Committee and
the Foreign Trade Administrator, would partici-
pate in day-to-day operations.
A. Foreign Executives in the Greek Govern-
ment
Under this plan the Greek Government would
employ a number of expert foreigners as individ-
uals in key executive positions. These men would
be selected with the advice of the Mission on the
basis of ability and character. They should as-
sist in assuring the effective execution of the eco-
nomic policies in the day-to-day operations of the
Government. Conditions in Greece are such that
it would be difficult for the Greek personnel, unless
backed by foreign personnel in the Greek Govern-
ment, to carry out many of the measures adopted,
since they would at times be placed under almost
intolerable local pressures. The Greek Govern-
ment's employment of foreign technicians on
the Currency Committee provides a successful
precedent.
1. The Currency Committee. The Currency
Committee should be continued with its present
composition of the Ministers of Coordination and
Finance, the Governor of the Bank of Greece, one
American expert, and one British expert. Its
functions should be modified to fit in with those of
the American Recovery Mission and its staff en-
larged as necessary. In addition to its present
power to control the expansion of the note issue,
the Committee should be authorized to scrutinize
all expenditures and to disapprove those not in
conformity with the budget. It should also be em-
powered to prescribe such regulations for all banks
and lending institutions as it may deem necessary
to control speculation and to direct investment.
2. The Foreign Trade Administration. A For-
eign Trade Administration headed by a foreign
technician in the employ of the Greek Govern-
ment should be established. The planning and ad-
ministration of the program of imports and ex-
ports, including licensing, should be centralized
under the administrator. In addition, he would
also head the state organization responsible for
distribution within the country of all Government
supplies.
B. The American Recovery Mission
The Americans to whom this task is entrusted
must be men of character, ability, and tact, since
to an extent the success of their efforts will depend
upon the kind of relationship they have with one
another, with Greek officials, and with the Greek
public.
Initially the Mission should be of modest size
consisting of no more than 50 people headed by a
single chief. Additions should be made only as the
need is demonstrated. A top staff of specialists
experienced in practical economics, finance, gov-
ernment administration, engineering, industry,
and agriculture would be required. They should
be assisted by accountants, research assistants, and
Greek-speaking observers ; this is particularly nec-
essary in Greece because of the absence of statistics
and information upon which policies can be for-
mulated. Clerical and translating personnel will
also be required.
It is important that the Mission not be large.
The caliber of the personnel is an all-important
factor and the number of highly qualified persons
available for prolonged service in Greece is limited.
The Greek public, whatever its initial reaction,
would probably not take kindly to an overly large
group of Americans, and particularly so if com-
petence had been sacrificed to numbers.
It is recognized that a small Mission cannot it-
self accomplish all the planning, advising, and
observation called for in this program. The Mis-
sion should be assisted by groups of experts sent to
Greece for limited periods for specific jobs as tem-
porary members of the Mission. For example,
studies must be made of the civil service and tax
stiucture in preparation for the reorganization of
each. Results from augmenting the staff for spe-
cial detailed studies will be much more satisfactory
than would be results from an equivalent number
of men on the permanent staff of the Mission.
Such groups of experts will be able to confine their
investigations to narrow fields, leaving the imple-
mentation of their plans to the Mission's perma-
nent staff. The Mission will have other impartial
foreign assistance. As previously noted, foreign
technicians will be employed by the Greek Govern-
ment in key posts. Foreign engineering and con-
Suppfemenf, May 4, 7947
907
AID rO GREECE AND TURKEY
tracting firms will be brought to Greece to under-
take the extensive reconstruction which is planned.
Assistance of specialists will also be required to
instruct the Greek civil service in modern admin-
istrative techniques.
The American Recovery Mission should be able
through various ways to make sure that the most
effective use is being made of American aid. It
should have the power as a last resort to stop or
curtail financial aid, not only in general, but in the
case of any particular project or activity, should
it become apparent that the conditions on which
the aid was granted were not being lived up to.
In addition, it should be required to publish quar-
terly reports on the progress of Greek recovery for
the benefit of the people and the Government of
the United States, of the people and Government
of Greece, and of the United Nations and its spe-
cialized agencies, and interim reports should be
made whenever the Mission deems a problem's
urgency to necessitate immediate explanation of
the facts.
Supervision of the use of the funds extended by
the United States to Greece should be delegated to
the Mission, and disbursements should be made by
it in accordance with legislation by Congress, with
policy established by the President or the Secre-
tary of State and with the agreement on tliis mat-
ter between the United States Government and the
Greek Government.
The obvious need of the Greek Government for
American assistance in making the most effective
use of funds furnished by the United States Gov-
ernment logically leads to the necessity of Amer-
ican assistance in all matters relating to Greek
Government finance since even if funds from the
United States and Greece were not commingled, as
they inevitably will be in certain instances, the re-
sults of ineffective use of Greek funds per se would
be as detrimental to the American program as if
United States funds were themselves not properly
used. The Mission should participate in the de-
velopment of revenue and expenditure policies ; its
approval of the budget should be required before it
became effective ; and it should aid in assuring con-
formance to the budget. It should aid in policy
matters but should not be expected to scrutinize
every proposed expenditure by the Greek Govern-
ment. This latter responsibility should be as-
sumed by the Currency Committee.
In addition to assuring the most effective use of
American financial aid the Mission should assist
the Greeks in the planning and execution of recon-
struction projects, improvement of public admin-
istration, control of imports and the development
of exports, control of foreign exchange, promo-
tion of industrial and agricultural recovery, con-
trol of wages and prices, and programming the
sale or other disposition of Government-pur-
chased supplies. Members of the Mission should
sit with the Reconstruction Board and the pro-
posed industrial development agency, and their
consent should be obtained before projects are
initiated.
In order to be effective the Mission should con-
cern itself with all expenditures made outside of
Greece with American funds and, necessarily, with
Greek funds. Purchases abroad should be made
in four ways; by the United States Government,
by the Greek Government, by Anierican contract-
ing firms, and by private Greek importers. Civil-
ian purchases by the Greek Government in the
United States should in general be made through
the procurement facilities of the United States
Treasury Department, or in case of foodstuffs, of
the Department of Agriculture, and purchases in
the United States by importing and engineering;
firms should all be reviewed by the office in the
Department of State supervising this program.
The Mission should assist in the planning and
progi-amming of imports. The import program
prepared under the direction of the Foreign Trade
Administrator would become effective only after
approval by the Mission ; individual applications
for import licenses will be scrutinized by an import
licensing committee including representatives of
the Foreign Ti'ade Administrator, and on which
a representative of the Mission will sit.
The Mission should be the sole United States
agency in Greece supervising the various pro-
grams of American aid. Civilian supplies, recon-
struction and military aid under the Greek
program, relief aid under the post-UNRRA pro-
gram, surplus-property, and Export-Import Bank
credits should all be subject to the Mission's guid-
ance. The Mission should also give advice with
regard to the control of other imports by the
Greek Government and private individuals.
908
Department of State Bulletin
C. Relations of the Mission
The relations of the Mission with the United
States Government in Washington sliould be
through a single official in the Department of
State. This official with a suitable staff should
transmit policy to the Mission, review all expendi-
tures made in the United States, coordinate all
United States Government authorities extending
aid to Greece, and give general assistance to the
Mission in the United States. Wliile basic Mis-
sion policy would, of course, be made in Washing-
ton, the Mission should be an autonomous operat-
ing unit with as broad powers as are consistent
with Congressional legislation. It should not be a
mere field agent for a main office in Washington.
It should have complete authority to advise the
Greek Government, disburse funds, program sup-
plies, and make contracts for reconstruction.
Coordination between the Mission and the
American, Greek, and British military authorities
presents a problem, because such a large part of
the foreign aid and internal revenue being super-
vised by the Mission would go to the military.
Relations with the British and Greek armed forces
should be through the military section of the Mis-
AID TO GREECE AND TURKEY
sion. The head of the section sliould be one of
the principal advisers of the Chief of the Mission,
so that military and civilian activities can be fully
coordinated. Similarly in the United States the
military and civilian programs should be coordi-
nated through the officer of the Department of
State in charge of the program with the assistance
of representatives of the War and Navy Depart-
ments.
The Mission should operate as an entity sepa-
rate from the American Embassy. The two will
naturally have to work in close cooperation; the
Mission should keep the Embassy fully informed
of the general nature of its work, and on all mat-
ters of importance the Embassy should be con-
sulted before action is taken. It would not be de-
sirable to give the Embassy any responsibility for
the Mission's work since the Ambassador should
be in a position to counsel the Mission and to report
objectively concerning it to the United States
Government.
Appropriate means should be devised for keep-
ing the United Nations and specialized and asso-
ciated agencies informed of the operation of the
Mission.
Supplement, May 4, 1947
909
^onte7i(6^
Fag*
Greek Grovemment Seeks U.S. Financial Aid:
Message to the President and the Secretary of State From the Greek
Prime Minister and the Minister for Foreign Affairs 827
Statement by the Secretary of State 828
Recommendations on Greece and Turkey. Message of the President to
the Congress 829
Messages From the Greek Prime Minister and the Leader of the Parlia-
mentary Opposition:
Statement by President Truman 833
Texts of Messages 833
Statement by U.S. Representative at the Seat of the United Nations . , 834
Senate and House Committee Hearings:
Statements by Acting Secretary Acheson 835, 847
Statements by Under Secretary Clayton 838, 852
Statement by Ambassador Porter 842
Discussion in Security Council of Proposed United States Program of
Assistance:
Statements by U.S. Representative at the Seat of the United
Nations 857, 861
Questions and Answers Relating to the Greco-Turkish Aid Bill 866
Total Assistance Program to Foreign Coimtries. Letter From Assistant
Secretary Thorp to Representative Eaton 896
Urgency of Action on Proposed Legislation. Message From the Secre-
tary of State to the President fro tempore of the Senate 897
Report of the American Economic Mission to Greece:
Preface 898
Summary 898
Recommendations 901
V. S. SOVERNMENT PRtHTINfi OFFICE: l»47
^rie/ ^eha^twieni/ /(w tnate^
rJsT
MOSCOW MEETING OF THE COUNCIL OF FOR-
EIGN MINISTERS, MARCH 10-APRIL 24, 1947 •
Address by the Secretary of State 919
PROPOSALS FOR AMENDMENT OF THE FAO CON-
STITUTION • Proposals. by U.S., U.K., Australia, and
the Executive Committee 925
AMERICAN POLICY CONCERNING GERMAN
MONOPOLIES • Article by Isaiah Frank 913
For complete contents see back cover
Vol. XVI, No. 410
May 11, 1947
^ i«- ajpajwTtNDENT or B^y|jtf(«jy
*i^-.y*. bulletin
Vol. XVI, No. 410 • Publication 2824
May 11, 1947
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AMERICAN POLICY CONCERNING GERMAN MONOPOLIES
hy Isaiah Frank
A key element in American policy toward Germany is the
elimination of excessive concentrations of economic power.
The manner in which we are attempting to achieve this
objective is presented against the background of the role
played by German combines and cartels in the past.
On February 12, 1947, laws entitled "Prohibi-
tion of Excessive Concentration of German Eco-
nomic Power" were simultaneously promulgated
by the military governments in the United States
and British zones of Germany.^ Although it is
premature to attempt an appraisal of the actual
effect of these "decartelization" laws on the struc-
ture of German industry, their enactment signifies
the culmination of about a year and a half of effort
at statutory implementation of the Potsdam pro-
vision that —
"At the earliest practicable date, the German economy
shall be decentralized for the purpose of eliminating the
present excessive concentration of economic power as exem-
plified in particular by cartels, syndicates, trusts and other
monopolistic arrangements."
An analysis of the economic and political basis
for American policy concerning German cartels
and combines would lie beyond the scope of the
present article. Three considerations, however,
may be mentioned as of paramount importance.
(1) It is recognized that the emergence in Ger-
many of a liberal democratic government would
be prejudiced if the economic power concentrated
in the hands of German monopolists could be used
in the political sphere to pursue their traditional
anti-democratic aims.
(2) Our conception of a post-war world free
from restrictions on production and trade imposed
by international cartels and combines could
scarcely be realized if steps were not taken now to
prevent the future resumption of German in-
dustry's role as organizer and leader of restrictive
organizations. Internal combination and carteli-
May 11, 1947
zation of German industry served as the essential
basis for her sponsorship of such organizations in
the international field.
(3) Allied security interests require the elimi-
nation of German monopoly. In combination
with other important elements in German society
such as "Junkerdom" and a militaristic tradition,
the monopolistic organization of German industry
has served indirectly as a cause of aggression.
Monopoly leads to high prices, reduced output, and
excess capacity with resultant pressures to engage
in dumping or to enlarge the protected market
through territorial conquest. In addition a mo-
nopolistic industrial stixicture tends to increase the
rate of profit and therefore of savings while at the
same time reducing opportunities for independent
investment. Under normal conditions of private
capitalism this situation typically aggravates the
problem of unemployment and maldistribution of
income and makes for political instability and
extremism.
This article presents briefly a statement of the
position which monopolies occupied in Germany
both before and during the Nazi regime and an ac-
count of attempts by the United States to deal with
the problem since the end of the war.
Position of Monopolies in Germany
Concentration of German industry had pro-
gressed rapidly before the Nazis came to power.
In terms of organization it was achieved princi-
pally through the establishment of combines and
" Bmj-BriN of Mar. 9, 1947, p. 443. An article will follow
in an early issue of the Buixetin on United States policy
toward monopoly in Japan.
913
cartels. Though both forms of organization have
assumed numerous variations, the combine may be
described essentially as an enterprise uniting un-
der common ownership or management competi-
tors (horizontal combine) or producers at several
stages in the production process (vertical com-
bine). Cartels, on the other hand, are contractual
arrangements among legally independent enter-
prises for the purpose of avoiding or reducing
competition. Though the controls bearing on any
particular market situation were likely to consist
of elements of both types of arrangements, the
cartel was in a sense a secondary manifestation of
the condition in which a relatively few firms con-
trolled a large part of German capital and pro-
duction. In fields where powerful combines ex-
isted the pressure was strong upon all firms in an
industry to conform to their policies through par-
ticipating in a cartel.
The prototypes of the combines were those with-
in so-called "heavy industry." Single Komerne
controlled extensive mining properties, coking
plants, iron and steel works, heavy engineering
works, and in a number of cases inland navigation
companies. They dominated the Khine-Ruhr re-
gion, the middle German industrial region, and
Upper Silesia. The merger and growth of large
firms both vertically and horizontally spread from
iron and steel and its closely allied industries to
chemicals, the electro-technical field, light metals,
and later the great synthetic industries, including
textiles.
Many reasons have been advanced for this
growth of monopoly in Germany on a scale which
has few parallels in industrially developed coun-
tries. Considerable emphasis is placed by some
economic historians on the relatively late but rapid
industrialization of Germany, accounted for in
part by the lack of political unification during
most of the nineteenth century. In other western
countries technical knowledge and organizational
forms developed slowly and were accompanied by
the establishment of a strong and independent
middle class with a tradition of economic liberal-
ism and political democracy appropriate to such
a social structure. In Germany, however, the com-
pression of industrial development within a rela-
tively short space of time meant the superiraposi-
tion of large-scale industry upon a framework of
institutions essentially pre-industrial or "feudal"
in character.
Concentration was further encouraged before
and during World War I by the allocation of Gov-
ernment armament orders which constituted the
largest single outlet for the productive capacity
of heavy industry. After the war the inflation
wiped out substantial elements of small and me-
dium-sized business and left the combines in a
position to acquire additional properties at bar-
gain rates. The merger process was abetted by
the use for such purposes of indemnities received by
heavy industry for the loss of properties in Lor-
raine and Silesia. In this connection it should be
noted that, although the process of trustification
relied for its political support upon the conserva-
tive elements in the community, it was never vig-
orously opposed by the Left, which regarded indus-
trial concentration as a process that would facili-
tate the tasks of socialization.
The effectiveness of cartel controls in Germany
was in good measure a consequence of the domi-
nant role played by the big combines. Though '
small and inefficient enterprises were sometimes
kept alive under the protection of cartel agi-ee-
ments, basic policies were set by the larger firms.
Voting power within the cartel was commonly
based on a member's production quota, a circum-
stance which encouraged the merger process since
the quota went along with the rest of the firm's
assets. Cartelizatiou also stimulated vertical com-
bination as a device to avoid the necessity of pur-
chasing materials in high-price, cartelized markets.
Membei-ship in the pre-Nazi cartels was, at least
nominally, voluntary except for a few cases such
as coal and jDotash in which compulsory organiza-
tions were set up by special parliamentary enact-
ment. The freedom not to join and also to with-
draw from cartels made possible in certain fields
periodic outbursts of competition often induced by
struggles surrounding the bargaining for higher
quotas.
Private market regulation of the cartel variety
was a socially sanctioned and legally accepted way
of doing business in Germany. Many court de-
cisions reflected the view that price and quota
agreements were a more civilized method of order-
ing the market than the "anarchy" of free com- t
petition. At times of national economic crisis, '
however, public sentiment became aroused against
monopolies to the point where the Government
was forced to take formal steps. The most sweep-
ing of the Weimar decrees for the regulation of
914
Department of State Bulletin
cartels in the public interest came in 1923 when
the inflation had brought about the impoverish-
ment of substantial sectors of the middle class
•while at the same time strengthening the position
of big business. The 1923 decree vested broad
powers in the Government to void existing agree-
ments and to enjoin cartels from engaging in
practices which were prejudicial to the economic
welfare of the community. These powere were
strengthened in another decree issued in 1930 in
response to pressures that arose during the busi-
ness collapse.
Despite the considerable grants of statutory
power to prevent and remedy the worst abuses of
cartels, the Weimar Government seldom took ac-
tion. The laws remained on the statute books
practically as dead letters while the cartels con-
solidated their position domestically and extended
their power beyond Germany's borders to become
the dominant factors in the network of interna-
tional cartels that blanketed European industry.
Though the concentration of German industry
progressed rapidly under the Weimar Govern-
ment, the process was greatly accelerated after
the Nazis came to power. One indication of the
point reached in this process is furnislied by the
advance of integration in Germany's coal mines,
which, along with potash, represent her only sig-
nificant indigenous resource of raw materials and
the basis for her vast iron and steel, chemical, and
synthetic industries. In 1913 the independent
coal mines controlled over 50 percent of the coal
fields, whereas in 1940 all but 10 percent of the
coal fields passed into captive hands. This figure
was further reduced during the war by the incor-
poration of some of the remaining mines into the
Ruhr steel combines.
The Nazi Government pursued a positive policy
of encouraging the amalgamation of small and
especially medium-sized firms into the larger com-
bines. Joint concerns were compulsorily estab-
lished in certain fields, such as synthetics, where
rapid expansion was desired. Rationalization of
industry with a view to increasing the efficiency
of the industrial machine for military purposes
became, in effect, a device for eliminating or
combing out the inefficient, i.e. smaller, concerns.
Aryanization of Jewish property provided an
opportunity to acquire the property of former
competitors, a factor which was especially impor-
tant in the consumer-goods industries. The Ger-
manization of property in occupied Europe meant
the accretion to existing combines of substantial
blocks of foreign industrial assets, in many cases
at nominal prices. Perhaps of paramount impor-
tance in shaping the attitude of the Nazi Govern-
ment toward the extension of the dominion of
existing combines was the conviction that such
concentration, by reducing the number of units
with which government would have to deal, would
simplify the task of mobilizing the economy for
war and would facilitate administration during
active hostilities.
Whereas the Weimar Government merely re-
frained from interfering with cartels, the Nazis
adopted a conscious policy of strengthening cartels
with a view to using them to further national
objectives.
The movement to consolidate individual busi-
ness enterprises had its analogue in the "rationali-
zation" of associations of business. By the latter
stages of the war the 2,500 cartels, which it is esti-
mated had formerly existed, were merged into ap-
proximately 500 cartels, mostly of a national char-
acter. Much of this consolidation was accom-
plished at the direction of the Government which,
shortly after coming into power, issued a com-
pulsory cartelization decree vesting in the Minister
of Economics the power to create new cartels with
compulsory membership and to order any firm to
join an existing cartel.
As industrial capacity in Germany became fully
utilized in response to military demands, the tradi-
tional functions of the cartels as market-regulating
bodies disappeared. Price-fixing was adopted by
the Government as an anti-inflationary measure,
restrictionism in production gave way to efforts to
maximize output, orders and raw materials became
centrally allocated, and research and technology
were compulsorily pooled. In this economic en-
vironment the cartels and super-cartels established
by the authorities {Gru^ppen, Binge, Eeichsverei-
nigxmgen) became the self-governing organiza-
tions of business, carrying out under general direc-
tives the various regulatory functions involved in
state-planned production and distribution. Need-
less to say, the power which the cartels and cartel-
like organizations exercised over their members be-
came vastly enhanced by the fact that they became
the officially established points of contact between
the central German Government and the indi-
vidual firms in an industry.
Aloy n, 1947
915
U.S. Action To Weaken German Monopoly
As the Allied military occupation of Germany
progressed, official recognition was given to the
necessity for uprooting monopolistic organiza-
tions from the entrenched positions which they
had established in German economic and political
life. In April 1945 the directive to the Com-
mander in Chief of United States Forces of Occu-
pation (JCS 1067) included the following :
"You will prohibit all cartels or other private business
arrangements and cartel-like organizations, including those
of a public or quasi-public character such as the Wirt-
schaftsffruppe7i providing for the regulation of marketing
conditions, including production, prices, exclusive exchange
of technical information and processes, and allocation of
sales territories. Such necessary public functions as have
been discharged by these organizations shall be absorbed
as rapidly as possible by approved public agencies.
". . . It is the policy of your government to eflrect
a dispersion of tlie ovyuership and control of German
industry. . . ." "
This was followed shortly after the formal sur-
render of Germany by a directive from USFET to
the commanding generals of the military districts
outlawing cartels. Then in August of the same
year was signed the Potsdam declaration, reiter-
ating our commitment to eliminate excessive con-
centrations of economic power in the form of both
combines and cartels.
Implementation of official United States policy
in this field has not been as rapid or vigorous as
many had hoped. As with all occupation policies,
the necessity for dealing with certain pressing
short-run problems of economic revival, such as
coal, food, and the foreign-trade deficit, tended to
push into the background long-inin objectives hav-
ing to do with the basic shape of the German econ-
omy. Perhaps even overshadowing such conflicts
of priority, the program has also suffered from
varying interpretations on the part of the occupy-
ing powers as to the ultimate objectives of the de-
concentration program and as to the manner in
which it ought to be carried out. Tliese differ-
ences— though highly revealing in themselves as
reflecting some of the basic divergencies in over-all
policy with respect to Germany — lie beyond the
scope of this article and are mentioned merely in
explanation of the difficulties faced by those re-
sponsible for implementing the program.
Much of the energies of the Decartelization
' Bulletin of Oct. 21, 1945, p. 604.
Branch of the Office of Military Government,
United States (OMGUS) has in the past year
and a half been taken up with negotiations with
the other occupying powers on a law to serve as
the basis for a comprehensive program for elimi-
nating German combines and cartels. Simultane-
ously, extensive investigations and research have
been carried forward in preparation for the com-
plex task of corporate reorganization which is to
constitute the princi^Dal phase of the anti-monop-
oly progi'am. In addition, a number of ad hoc
measures have been taken in limited spheres, the
general lines of which can be indicated by a few
examples.
I. G. Farben's spectacular role in organizing and
dominating international chemical cartels and in
supporting the German war effort caused it at an
early date to be singled out for special attention.
I. G. was established in 1925 out of a merger of six
of the leading chemical firms in Germany. By 1937
it had a net worth of nearly six billion Reichsmarks
and held participations in hundreds of industrial
organizations both within and outside Germany.
Together with its subsidiaries it had more than
200,000 employees before the war and increased
this number to 400,000 during the war.
The Allied Control Authority in November 1945
issued Law No. 9 "providing for the seizure of
property owned by I. G. Farbenindustrie and the
control thereof". To carry out the law there was
created a control committee consisting of one officer
appointed by each of the zone commanders.
Policies agreed upon by the committee were to be
implemented in each zone by the zone commander
acting through his control officer. Among the
objectives to be accomplished by the committee
were the termination of cartel relationships and
the dispersion of the ownership of those plants
and assets remaining after the destruction of
specialized war facilities and the removal of other
assets on reparations account. To date, substan-
tial progress has been made in decentralizing the
management of the plants and enterprises of I. G.
Farben, liquidating central selling agencies, and
prohibiting the carrying out of obligations under
cartel agreements. The dispersion of ownership
of I. G. plants has thus far, however, not pro-
gressed beyond the plamiing stage, and action
along these lines awaits quadripartite agreement.
Little coal is mined in the U.S. zone of Germany
916
Department of State Bulletin
and coal distribution in the past was carried on
almost exclusively by two cartels — the bituminous
coal organization known as Kohlenkontor Wey-
henmeyer and Company of Mannheim and the
brown coal group, the Rheinische Braunkohle
Syndikat. Besides controlling the terms of sale
and delivery for practically all coal coming into
southern Germany, these two cartels limited
wholesalers to particular marketing regions and
engaged in a wide variety of other restrictive
practices. Trustees have now been appointed
over these organizations by OMGUS and their
most undesirable activities have been eliminated.
In administering Germany's foreign-trade pro-
gram, OMGUS has adopted the policy of screen-
ing contracts with a view to discouraging business
relationships which would tend ultimately to lead
to restraints of trade. Sales contracts with for-
eign buyers are in general not approved if they
fix prices or terms of resale, allocate markets or
fields, or otherwise restrict the sales or production
of a consignee. Contracts are also rejected which
create exclusive outlets in any country for Ger-
man products where the consignee owns or controls
facilities for the manufacture of the same or
closely similar products.
Law for Deconcentration of German Industry
Quadripartite agreement on the terms of a law
which would lay down standards and procedures
for dissolving German combines and for elimi-
nating cartels and other practices in restraint of
trade had not yet been reached at the time the
economic merger of the British and American
zones was announced. On February 12, 1947,
therefore, parallel laws were simultaneously
promulgated in the U.S. and U.K. zones to remain
in effect until such time as a quadripartite formula
can be worked out. The U.S. and U.K. laws are
identical except for two provisions as will be indi-
cated in the following description.
Article 1 constitutes the basic provision and may
be regarded as consisting substantively of two
parts, one relating to restrictive practices includ-
ing cartels, and the other to combines. The sec-
tion on restrictive practices outlaws "cartels, com-
bines, syndicates, trusts, associations or any other
form of understanding or concerted undertaking
between persons, which have the purpose or effect
of restraining, or of fostering monopolistic control
of, domestic or international trade or other eco-
nomic activity, or of restricting access to domestic
or international markets". Among the practices
which this expression is defined to include are
agreements which fix prices, terms, or conditions
in the purchase or sale of any product ; exclude any
person (natural or juristic) from any territorial
market or field of business activity, allocate cus-
tomers, or fix sales or purchase quotas; allocate
distributors or products among customers; boy-
cott or discriminate against enterprises for the
purpose of reducing competition ; limit production
or fix production quotas; suppress technology,
whether patented or unpatented; extend the use
of rights under patents, trade-marks, or copyrights
to matters not contained in the authorized grant.
It will be noted that this recital of practices par-
allels almost exactly the restrictive practices listed
in chapter VI of the present draft charter of the
International Trade Organization.
The section of article 1 dealing with combines
provides that all economic enterprises having their
headquarters in the U.S. zone (the British zone in
the U.K. law) and employing in Germany on the
effective date of the law or thereafter "more than
10,000 persons shall be examined as prima facie
constituting excessive concentrations of economic
power". A principal object of the investigation
would presumably be to determine whether the
existing degree of integration is justified on
grounds of technological efficiency. If military
government or its designated agency makes a find-
ing that the enterprise does in fact constitute an
excessive concentration of economic power, the
enterprise is to be dissolved in accordance with the
relevant provisions of the act. On this point the
U.S. zonal law has a proviso, not paralleled in the
U.K. version, providing that when an enterprise
with more than 10,000 employees is located entirely
within the U.S. zone it shall be dissolved unless
military government takes affinnative action in the
case in question to exempt the enterprise. Though
the inclusion of this clause only in the U.S. zonal
ordinance reflects a divergence of view from the
British position that the size of a firm is not in
itself crucial in determining excessive concentra-
tion, it is doubtful whether the clause will in fact
be applicable to more than a few enterprises since
most firms which exceed the 10,000-employee
standard probably have at least a sales agency
outside the U.S. zone.
Article 1 also provides that firms may be dealt
May ?7, 1947
9ir
with as excessive concentrations of economic
power even when they do not exceed the 10,000-
employee standard. In making a determination
as to whether such a firm is an excessive concentra-
tion, military government is required to consider
the following factors : the percentage of total pro-
duction in the industry controlled by the enter-
prise; the asset value of the enterprise and its
annual volume of business ; the number of persons
emploj'ed; the character of the product or other
activity of the enterprise ; and the nature and ex-
tent of participation by the enterprise in any
restrictive agreement or practice.
Article 2 prohibits German participation in in-
ternational cartels directly or indirectly. Arti-
cle 3 provides for exemptions from the terms of
the law when in the opinion of military govern-
ment the activities of the enterpi-ise under review
are not repugnant to the purposes of the decon-
centration law or are required to further the de-
clared objectives of military government.
Article 4 confers broad powers upon the agency
designated by military government to enforce the
law, including the power to eliminate corporate
entities ; redistribute and remove property, invest-
ments, and other assets; and cancel cartel obliga-
tions. The enforcing agency may also delegate
any of its powers to appropriate German govern-
mental agencies.
The statute lays down penalties up to 10 years'
imprisonment or fines of not more than 200,000
Reichsmarks or both and leaves it to the discre-
tion of military government to decide whether ju-
dicial proceedings shall be taken before German
courts or military-government courts. Although
the law became effective on date of promulgation,
violators of the anti-combine provisions are not to
be subject to criminal prosecution for a period of
six months thereafter.
Appended to the ordinance as outlined is an
annex entitled "Regulation Number 1". This an-
nex defines the procedure to be adopted by enter-
prises affected by the law, the procedure governing
applications for exemptions, and the rights of sub-
ject enterprises to appeal.
The section on exemptions under Regulation No.
1 includes the most important difference between
the U.S. and U.K. versions. Both exempt the
Reichsbahn, the Reichspost, public utilities, and
enterprises taken into control by military govern-
ment. In the latter connection, however, the an-
918
nex to the U.S. law specifies only I. G. Farben as
included among enterprises exempt, whereas the
British version also includes the Krupp works, the
coal industry, and the iron and steel industry.
Detailed provisions are laid down for the sub-
mission of reports and other information on the
basis of which enterprises will be notified whether
they come within the scope of the law. Subject
enterprises receiving orders to decentralize or oth-
erwise comply with the law are required within
three months of the issuance of such orders to
prepare and submit a plan for complying with the
law. After approval or amendment of the plan by
military government they are to pi'oceed to carry it
out within a designated time limit. Enterprises
subject to the anti-combine provisions of the
law are forbidden to dispose of any of their
assets without the written ajDproval of military
government.
Conclusion
Elimination of excessive concentrations of eco-
nomic power is a key element in American policy
for the democratization of Germany's economic
and political structure. The success of the pro-
gram will depend in good measure on the machin-
ery set up to enforce the relevant statutes and on
the perception and vigor displayed by the enforce-
ment personnel. In particidar, it will be necessary
to integi'ate closely the administration of the pro-
gram in the U.S. and British zones even though a
substantial portion of Germany's industrial assets
in the U.K. zone is not subject to the decarteliza-
tion law. German agencies or personnel to whom
responsibilities are delegated will have to be care-
fully screened and supervised in view of their in-
experience and historical indifference to anti-
trust objectives. Even in the United States, where
the anti-monopoly tradition is strong and deeply
rooted, the legal and administrative problems con-
nected with enforcement have been vexing and
arduous. Although noteworthy results have been
achieved in eliminating and preventing restrictive
business practices, experience under the anti-trust
laws and the Public Utility Holding Company Act
attests to the difBculties surrounding the accom-
plishment of effective corporate dissolutions.
Since corporate divestitures will constitute the
central feature of the German deconcentration
program, the task that lies ahead will tax the best
efforts of the occupation authorities.
Deparfment of State Bulletin
THE COUNCIL OF FOREIGN MINISTERS
Moscow Meeting of the Council of Foreign Ministers
Marcli 10-April 24, 1947
ADDRESS BY THE SECRETARY OF STATE '
Tonight I hope to make clearly understandable
the f imdamental nature of the issues discussed at
the Moscow Conference of Foreign Ministers.
This Conference dealt with the very heart of
the peace for which we are struggling. It dealt
with the vital center of Europe — Germany and
Austria — an area of large and skilled population,
of great resources and industrial plants, an area
which has twice in recent times brought the world
to the brink of disaster. In the Moscow negotia-
tions all the disagi'eements which were so evi-
dent during the conferences regarding the Italian
and Balkan treaties came into sharp focus and
I'emained in effect unsolved.
Problems which bear directly on the future of
our civilization cannot be disposed of by general
talk or vague formulae — ^by what Lincoln called
"pernicious abstractions". They require concrete
solutions for definite and extremely complicated
questions— questions which have to do with bound-
aries, with power to prevent military aggression,
with people who have bitter memories, with the
production and control of things which are es-
sential to the lives of millions of people. You
have been kept well informed by the press and
radio of the daily activities of the Council, and
much of what I have to say may seem repetitious.
But the extremely complicated nature of the three
major issues we considered makes it appear
desirable for me to report in some detail the
problems as I saw them in my meetings at the
Conference table.
There was a reasonable possibility, we had hoped
a probability, of completing in Moscow a peace
treaty for Austria and a four-power pact to bind
together our four governments to guarantee the
demilitarization of Germany. As for the German
peace treaty and related but more current Ger-
man problems, we had hoped to reach agreement
on a directive for the guidance of our deputies in
their work preparatory to the next copference.
In a statement such as this, it is not practicable
to discuss the numerous issues which continued in
May J J, 1947
742012 — 47 2
disagreement at the Conference. It will suffice, I
think, to call attention to the fimdamental prob-
lems whose solution would probably lead to the
quick adjustment of many other differences.
Coal
It is important to an understanding of the Con-
ference that the complex character of the prob-
lems should be understood, together with their
immediate effect on the people of Europe in the
coming months. To cite a single example, more
coal is most urgently needed throughout Europe
for factories, for utilities, for railroads, and for
the people in their homes. More coal for Allied
countries cannot be mined and delivered until
the damaged mines, mine machinery, railroad
communications and like facilities are rehabili-
tated. This rehabilitation, however, depends on
more steel, and more steel depends in turn on more
coal for steel making. Therefore, and this is the
point to be kept in mind, while the necessary re-
habilitation is in progress, less coal would be
available in the immediate future for the neigh-
boring Allied states.
But less coal means less employment for labor
and a consequent delay in the production of goods
for export to bring money for the purchase of food
and necessities. Therefore, the delay necessary to
permit rehabilitation of the mines so vitally
affects France that the settlement of this matter
has become for her a critical issue. All neigh-
boring states and Great Britain and the Soviet
Union are directly affected in various ways since
coal is required for German production of goods
for export sufficient to enable her to buy the nece»-
' Broadcast over the national networks of the American
Bi'oa(lcasti?ig Company, Mutual Broadcasting System, and
National Broadcasting Company on Apr. 28, 1947, upon the
occasion of the Secretary's return from the meeting of the
Council of Foreign Ministers and released to the press on
the same date. The full text of the Secretary's address was
broadcast to the Soviet Union in the Russian language on
Apr. 29 from the New Yorli studios of the Voice of the
United States of America, operated by the International
Broadcasting Division of the Department of State.
919
THE COUNCIL Of FOREIGN MINISTERS
sary imports of foods, et cetera, for much of which
the United States is now providing the funds.
Moreover, in the background of this coal issue,
which is directly related to steel production, is
the important consideration of the build-up of
heavy industry in Germany, which could later
again become a threat to the peace of the world.
I cite this single example to illustrate the compli-
cations which are involved in these negotiations.
Germany
The Allied Control Council in Berlin presented
a detailed report of the many problems con-
cerned with the political, military, economic, and
financial situation under the present military
government of Germany. In connection with
these matters, the Ministers considered the form
and scope of the provisional political organiza-
tion for Germany and the procedure to be followed
in the preparation of the German peace treaty.
The German negotiations involved not only the
security of Europe and the world but the pros-
perity of all of Europe. While our mission was
to consider the terms of a treaty to operate over
a long term of years, we were faced with immedi-
ate issues which vitally concerned the impover-
ished and suffering people of Europe who are
crying for help, for coal, for food, and for most
of the necessities of life, and the majority of
whom are bitterly disposed towards the Germany
that brought about this disastrous situation. The
issues also vitally concern the people of Britain
and the United States who cannot continue to pour
out hundreds of millions of dollars for Germany
because current measures were not being taken to
terminate expeditiously the necessity for such
appropriations.
The critical and fundamental German problems
to which I shall confine myself are: (a) the limits
to the powers of the central government; (b) the
character of the economic system and its relation
to all of Europe; (c) the character and extent of
reparations; {d) the boundaries for the German
state; and (e) the manner in which all Allied
states at war with Germany are represented in the
drafting and confirmation of the treaty.
All the members of the Council of Foreign
Ministers are in apparent agreement as to the
establishment of a German state on a self-support-
ing, democratic basis, with limitations imposed
to prevent the reestablisliment of military power.
920
Central Government
This issue of the degree of centralization of
the future German state is of greatest impor-
tance. Excessive concentration of power is pecu-
liarly dangerous in a country like Germany which
has no strong traditions regarding the rights
of the individual and the rights of the com-
munity to control the exercise of governmental
power. The Soviet Union appears to favor a
strong central government. The United States
and United Kingdom are opposed to such a gov-
ernment, because they think it could be too readily
converted to the domination of a regime similar
to the Nazis. They favor a central government
of carefully limited powers, all other powers
being reserved to the states, or Lander as they
are called in Germany. The French are willing
to agree only to very limited responsibilities for
the central government. They fear a repetition of
the seizure of power over the whole of Germany
carried out by the Hitler regime in 1933.
Under ordinary circumstances there are always
strong and differing points of view regarding the
character of a governmental reorganization. In
this case there are great and justifiable fears
regarding the resurrection of German military
power, and concern over expressed or concealed
desires for quite other reasons.
German Economy
Regarding the character of the German eco-
nomic system and its relation to all of Europe,
the disagreements are even more serious and
difficult of adjustment. German economy at the
present time is crippled by the fact that there
is no unity of action, and the rehabilitation of
Germany to the point where she is self-supporting
demands immediate decision.
There is a declared agi-eement in the desire for
economic unity in Germany, but when it comes
to the actual terms to regulate such unity there are
wide and critical differences. One of the most
serious difficulties encountered in the effort to
secure economic unity has been the fact that the
Soviet-occupied zone has operated practically
without regard to the other zones and has made
few if any reports of what has been occurring in
that zone. There has been little or no disposi-
tion to proceed on a basis of reciprocity, and there
has been a refusal to disclose the availability of
foodstuffs and the degree or character of repara-
tions taken out of this zone.
Department of State Bulletin
This unwillingness of the Soviet authorities to
cooperate in establishing a balanced economy for
Germany as agreed upon at Potsdam has been the
most serious check on the development of a self-
supporting Germany and a Germany capable of
providing coal and other necessities for the neigh-
boring states who have always been dependent
on Germany for these items. After long and
futile efforts to secure a working accord in this
matter, the British and American zones were
combined for the improvement of the economic
situation, meaning the free movement of excess
supplies or produce available in one zone to
another where there is a shortage. Our continu-
ing invitation to the French and Soviets to join
in the arrangement still exists. This merger is
bitterly attacked by the Soviet authorities as a
breach of the Potsdam Agreement and as a first
step toward the dismemberment of Germany,
ignoring the plain fact that their refusal to carry
out that agreement was the sole cause of the mer-
ger. It is difficult to regard their attacks as
anything but propaganda designed to divert
attention from the Soviet failure to implement the
economic unity agreed at Potsdam. Certainly
some progress towards economic unity in Germany
is better than none.
The character of the control over the Ruhr in-
dustrial center, the greatest concentration of coal
and of heavy industries in Europe, continues a
matter of debate. It cannot be decided merely
for the purpose of reaching an agreement.
Vitally important considerations and future con-
sequences are involved.
Reparations
The question of reparations is of critical im-
portance as it affects almost every other question
under discussion. This issue naturally makes a
tremendous appeal to the people of the Allied
states who suffered the terrors of German military
occupation and the destruction of their cities and
villages.
The results of the Versailles Treaty of 1919
regarding payment of reparations on a basis of
dollars, and the difficulties encountered by the
Reparations Commission appointed after Yalta
in agreeing upon the dollar evaluation of repara-
tions in kind convinced President Truman and his
advisers considering the question at Potsdam that
some other basis for determining reparations
should be adopted if endless friction and bitter-
THE COUNCIL OF FOREIGN MINISTERS
ness were to be avoided in future years. They
succeeded in getting agreement to the principle
of reparations to be rendered out of capital assets —
that is, the transfer of German plants, ma-
chinery, et cetera, to the Allied powers concerned.
It developed at the Moscow Conference that the
Soviet officials flatly disagreed with President
Truman's and Mr. Byrnes' understanding of the
written terms of this agreement. The British
have much the same view of this matter as the
United States.
We believe that no reparations from current
production were contemplated by the Potsdam
Agreement. The Soviets strongly oppose this
view. They hold that the previous discussions
and agreements at Yalta authorize the taking of
billions of dollars in reparations out of current
production. This would mean that a substantial
portion of the daily production of German fac-
tories would be levied on for reparation payments,
which in turn would mean that the recovery of
Germany sufficiently to be self-supporting would
be long delayed. It would also mean that the
plan and the hope of our Government, that Ger-
many's economic recovery by the end of three
years would permit the termination of American
appropriations for the support of the German
inhabitants of our zone, could not be realized.
The issue is one of great complications, for
which agreement must be found in order to ad-
minister Germany as an economic whole as the
four powers claim that they wish to do.
There is, however, general agreement among
the Allies that the matter of the factories and
equipment to be removed from Germany as repa-
rations should be reexamined. They recognize
the fact that a too drastic reduction in Germany's
industrial set-up will not only make it difficult for
Germany to become self-supporting but will
retard the economic recovery of Europe. The
United States has indicated that it would be will-
ing to study the possibility of a limited amount
of reparations from current production to com-
pensate for plants, previously scheduled to be
removed as reparations to various Allied coun-
tries, which it now appears should be left in
Germany ; it being understood that deliveries from
current production are not to increase the financial
burden of the occupying powers or to retard the
repayment to them of the advances they have
made to keep the German economy from coUaps-
May 11, 1947
921
THE COUNCIL OF fOREICN MINISTERS
ing. The Soviet Government has made no
response to this suggestion.
Boundaries
The issue regarding boundaries to be estab-
lished for Germany presents a serious disagree-
ment and another example of complete disagree-
ment as to the meaning of the pronouncement
on this subject by the heads of the three powers.
In the rapid advance of the Soviet armies in
the final phase of the war, millions of Germans
in eastern Germany fled to the west of the Oder
River. The Soviet armies, prior to Potsdam, had
placed Poles in charge of this area largely evacu-
ated by the German population. That was the
situation that confronted President Truman at
Potsdam. Under the existing circumstances, the
President accepted the situation for the time being
with the agi'eed three-power statement, "The three
heads of government reaffirm their opinion that
the final delimitation of the western frontier of
Poland should await the peace settlement."
The Soviet Foreign Minister now states that a
final agreement on the frontier between Germany
and Poland was reached at Potsdam, and the ex-
pression I have just quoted merely referred to the
formal confirmation of the already agreed upon
frontier at the peace settlement, thus leaving only
technical delimitation to be considered.
The United States Government recognized the
commitment made at Yalta to give fair compensa-
tion to Poland in the west for the territory east of
the Curzon Line incorporated into the Soviet
Union. But the perpetuation of the present tem-
porary line between Germany and Poland would
deprive Germany of territory which before the
war provided more than a fifth of the foodstuffs
on which the German population depended. It
is clear that in any event Germany will be obliged
to support, within much restricted boundaries,
not only her pre-war population but a consider-
able number of Germans from eastern Europe.
To a certain extent this situation is unavoidable,
but we must not agree to its aggravation. We do
not want Poland to be left with less resources than
she had before the war. She is entitled to more,
but it will not help Poland to give her frontiers
which will probably create difficulties for her in
the future. Wherever the frontiers are drawn,
they should not constitute barriers to trade and
commerce upon which the well-being of Europe is
922
dependent. We must look toward a future where
a democratic Poland and a democratic Germany
will be good neighbors.
Peace Treaty Procedure
There is disagreement regarding the manner in
which the Allied powers at war with Germany
are to participate in the drafting and con-
firmation of the German peace treaty. There are
51 states involved. Of these, in addition to the
four principal Allied powers, 18 were directly
engaged in the fighting, some of course to a much
greater extent than others. It is the position of
the United States that all Allied states at war
with Germany should be given an opportunity to
participate to some degi-ee in the drafting and
in the making of the peace treaty, but we recog-
nize that there would be very practical difficulties
if not impossibilities in attempting to draft a
treaty with 51 nations participating equally at all
stages. Therefore, the United States Government
has endeavored to secure agreement on a method
which involves two different procedures, depend-
ing on whether or not the state concerned actually
participated in the fighting. But all would have
an opportunity to present their views, and rebut
other views, and all would sit in the peace confer-
ence to adopt a treaty.
It is difficult to get the agreement of the coun-
tries that have suffered the horrors of German
occupation and were involved in heavy losses in
hard fighting to accept participation in the deter-
mination of the treaty terms by countries who
suffered no losses in men or material and were
remote from the fighting. The United States,
however, regards it as imperative that all the states
who were at war with Germany should have some
voice in the settlement imposed on Germany.
Four Power Pact
The proposal for the Four Power Pact was
advanced by the United States Government a year
ago. It was our hope that the prompt accept-
ance of this simple pact ensuring in advance
of the detailed German peace settlement that the
United States would actively cooperate to prevent
the rearmament of Germany would eliminate fears
as to the future and would facilitate the making
of a peace suitable to Europe's present and future
needs. It was our hope that such a commitment
by the United States would relieve the fear of the
Department of State Bulletin
other European powers that the United States
would repeat its actions following the first World
War, insisting on various terms for the peace
settlement and then withdrawing from a position
of any responsibility for their enforcement. It
was thought that the compact of the four powers
to guarantee the continued demilitarization of
Germany would reassure the world that we were
in complete accord in our intention to secure the
peace of Europe.
However, the Soviet Government met our propo-
sition with a series of amendments which would
have completely changed the character of the pact,
making it in effect a complicated peace treaty, and
including in the amendments most of the points
regarding the German problem concerning which
there was, as I have pointed out, serious disagree-
ment. I was forced to the conclusion by this
procedure that the Soviet Government either did
not desire such a pact or was following a course
calculated to delay any immediate prospect of its
adoption. Whether or not an agreement can
finally be reached remains to be seen, but the
United States, I think, should adhere to its present
position and insist that the pact be kept simple and
confined to its one basic purpose — to keep Germany
incapable of waging war.
Austrian Treaty
The negotiations regarding the Austrian treaty
resulted in agreement on all but a few points,
but these were basic and of fundamental impor-
tance. The Soviet Union favors and the other
governments oppose the payment of reparations
and the cession of Carinthia to Yugoslavia.
But the Soviet Government attached much more
importance to its demand that the German assets
in Austria which are to be hers by the terms of the
Potsdam Agi-eement should include those assets
which the other three powers consider to have been
taken from Austria and the citizens of the United
Nations by force or duress by Hitler and his Nazi
government following the taking over of Austria
by military force in March 1938. The Soviet Gov-
ernment refused to consider the word duress^ which
in the opinion of the other three powers would be
the critical basis for determining what property,
that is, business, factories, land, forests, et cetera,
was truly German property and not the result of
seizures by terroristic procedure, intimidation,
fake business acquisition, and so forth. The
May 7 7, 7947
THE COUNCIL OF FOREIGN MINISTERS
Soviet Union also refused to consider any process
of mediation to settle the disputes that are bound
to arise in such circumstances, nor would they
clearly agree to have such property as they receive
as German assets subject to Austrian law in the
same manner as other foreign investments are
subject to Austrian law.
The acceptance of the Soviet position would
mean that such a large portion of Austrian
economy would be removed from her legal control
that Austrian chances of surviving as an inde-
pendent self-supporting state would be dubious.
She would in effect be but a puppet state.
All efforts to find a compromise solution were
unavailing. The United States, in my opinion,
could not conmiit itself to a treaty which involved
such manifest injustices and, what is equally im-
portant, would create an Austria so weak and
helpless as to be the source of great danger in the
future. In the final session of the Conference,
it was agreed to appoint a Commission to meet in
Vienna May 12th to reconsider our disagreements
and to have a Committee of Experts examine into
the question of the Gennan assets in Austria.
Certainly prompt action on the Austrian treaty is
necessary to fulfil our commitment to recognize
Austria as a free and independent state and to
relieve her from the burdens of occupation.
Summary
Complicated as these issues are, there runs
through them a pattern as to the character and
control of central Europe to be established. The
Foreign Ministers agreed that their task was
to lay the foundations of a central government for
Germany, to bring about the economic unity of
Germany essential for its own existence as well as
for European recovery, to establish workable
boundaries, and to set up a guaranteed control
through a four-power treaty. Austria was to be
promptly relieved of occupation burdens and
treated as a liberated and independent country.
Agreement was made impossible at Moscow
because, in our view, the Soviet Union insisted
upon proposals which would have established in
Germany a centralized government, adapted to
the seizure of absolute control of a country which
would be doomed economically through inadequate
area and excessive population, and would be mort-
gaged to turn over a large part of its production
923
THE COUNCIL OF FOREIGN MINISTERS
as reparations, principally to the Soviet Union.
In another form the same mortgage upon Austria
was claimed by the Soviet Delegation.
Such a plan, in the opinion of the United States
Delegation, not only involved indefinite American
subsidy, but could result only in a deteriorating
economic life in Germany and Europe and the
inevitable emergence of dictatorship and strife.
Freedom of information for which our Govern-
ment stands inevitably involves appeals to public
opinion. But at Moscow propaganda appeals to
passion and prejudice appeared to take the place
of appeals to reason and understanding. Charges
were made by the Soviet Delegation and interpre-
tation given the Potsdam and other agreements,
which varied completely from the facts as under-
stood or as factually known by the American
Delegation.
There was naturally much uncertainty regard-
ing the real intention or motives of the various
proposals submitted or of the objections taken to
the proposals. This is inevitable in any inter-
national negotiation.
However, despite the disagreements referred to
and the difficulties encountered, possibly greater
progress towards final settlement was made than
is realized.
The critical differences were for the first time
brought into the light and now stand clearly de-
fined so that future negotiations can start with a
knowledge of exactly what the issues are that
must be settled. The Deputies now understand
the precise views of each government on the vari-
ous issues discussed. With that they can possibly
resolve some differences and surely can further
clarify the problems by a studied presentation of
the state of agreement and disagreement. That
is the best that can be hoped for in the next few
months. It marks some progress, however pain-
fully slow. These issues are matters of vast
importance to the lives of the people of Europe
and to the future course of world history. We
must not compromise on great principles in order
to achieve agreement for agreement's sake. Also,
we must sincerely try to understand the point of
view of those with whom we differ.
In this connection, I think it proj^er to refer to
a portion of a statement made to me by General-
issimo Stalin. He said with reference to the
Conference, that these were only the firet skir-
924
mishes and brushes of reconnaissance forces on this
question. Differences had occurred in the past on
other questions, and as a rule, after people had
exhausted themselves in dispute, they then recog-
nized the necessity of compromise. It was pos-
sible that no great success would be achieved at
this session, but he thought that compromises were
possible on all the main questions, including
demilitarization, political structure of Germany,
reparations and economic unity. It was necessary
to have patience and not become pessimistic.
I sincerely hope that the Generalissimo is cor-
rect in the view he expressed and that it implies
a greater spirit of cooperation by the Soviet
Delegation in future conferences. But we cannot
ignore the factor of time involved here. The
recovery of Europe has been far slower than had
been expected. Disintegrating forces are becom-
ing evident. The patient is sinking while the
doctors deliberate. So I believe that action can-
not await compromise through exhaustion. New
issues arise daily. Wliatever action is possible to
meet these pressing problems must be taken with-
out delay.
Finally, I should comment on one aspect of the
matter which is of transcendent importance to
all our people. While I did not have the benefit,
as did Mr. Byrnes, of the presence of the two
leading members of the Senate Foreign Eelations
Committee, I did have the invaluable assistance of
Mr. Dulles, a distinguished representative of the
Republican party as well as a recognized specialist
in foreign relations and in the processes of inter-
national negotiations and treaty-making. As a
matter of fact, the bipartisan character of the
American attitude in the present conduct of
foreign affairs was clearly indicated by the strong
and successful leadership displayed in the Senate
during the period of this Conference by Senators
Vandenberg and Connally in the debate over a
development of our foreign policy of momentous
importance to the American people. The fact that
there was such evident unity of purpose in Wash-
ington was of incalculable assistance to me in
Moscow. The state of the world today and the
position of the United States make mandatory, in
my opinion, a unity of action on the part of the
American people. It is for that reason that I have
gone into such lengthy detail in reporting my views
on the conference.
Department of Stale Bulletin
THE UNITED NATIONS
Proposals for Amendment of FAO Constitution
PROPOSAL BY THE GOVERNMENT OF THE UNITED STATES
Acting Secretary Acheson to the Director General,
FAO
Washington, D. C.
April 23, 1946
Sir : I have the honor to enclose the text of a
proposed amendment to Articles V and VII of
the Constitution of the Food and Agriculture Or-
ganization, together with an explanatory memo-
randum.
I should like to request that this proposal be
placed upon the Agenda of the forthcoming ses-
sion of the Conference of the Food and Agricul-
ture Organization, in accordance with Rule
XXIII, paragraph 2, of the Rules of Procedure
of the Organization.
Very truly yours,
Dean Acheson
Acting Secretary
The Director General of the
Food and Agriculttjke Organization
OF THE United Nations
Text of Amendment
1. It is proposed that Article V be amended to
read as follows :
Article V — {The Coimcil)
1. The Conference shall elect a Council of the
Food and Agriculture Organization consisting of
representatives of eighteen Member nations of the
Organization. The tenure and other conditions
of office of the members of the Council shall be
subject to rules to be made by the Conference.
2. The Conference may delegate to the Council
such powers as it may determine, with the excep-
tion of powers set forth in paragraph 2 of Article
II, Article IV, paragraph 1 of Article VII, Article
XIII and Article XX of this Constitution.
3. The Council shall appoint its Chairman and
other officei-s and, subject to any decisions of the
Conference, shall adopt its own rules of procedure.
2. It is proposed that Article VII, paragraphs
2 and 3, be amended to read as follows :
Article VII — {The Director-General)
2. Subject to the general supervision of the Con-
ference and the Council, the Director-General shall
have full power and authority to direct the work of
the Organization.
3. The Director-General or a representative des-
ignated by him shall participate, without the right
to vote, in all meetings of the Conference and of
the Coimcil and shall formulate for consideration
by the Conference and the Council proposals for
appropriate action in regard to matters coming
before them.
The United States Government proposal to
amend Article V of the FAQ Constitution and to
make the necessary consequential amendment in
Article VII would result in transforming the
Executive Committee of FAO from a body com-
posed of persons selected in an individual capacity
to a body known as the Council of the Food amd
Agriculture Organization — {FAO), comijosed of
representatives of Member governments. The
proposal is in general accord with the recommen-
dations of the FAO Preparatory Commission on
World Food Proposals, particularly as set out in
Chapter 7 of that Report. It is made because of
the sincere conviction of this Government that
such a step would greatly strengthen the FAO and
would enable it to discharge more effectively its
obligations.
I. Organization and Functions of the Council of
FAO
It is proposed that the Council of FAO be com-
posed of representatives of eighteen Member na-
tions of FAO. Details concerning the Council's
organization, meetings, tenns of office, provision
for the attendance of observers, and similar mat-
ters should be governed by rules to be made by the
Conference, along lines indicated in Paragraphs
251-256 of the Preparatory Commission Report.
The Director-General should be entitled to attend
all sessions of the Council, without vote. He
would also be requested to supply the necessary
secretarial assistance to the Council, both during
May 11, 1947
925
THE UNITED NATIONS
and between sessions, from the Organization's
staff. It is the view of this Government that the
Council should be an integral part of the Organi-
zation, and should not be permitted to become a
separate entity within the FAO. This was the
clear intention of the Commission as this Govern-
ment understood it at the time. This Government
pointed out informally to the Secretariat that
Paragraph 256.2 of the Report appears to be in-
accurately drafted on this point.
It is proposed that the Council exercise such
powers and perform such functions as the Confer-
ence may delegate to it. These would include the
present functions of tlie Executive Committee
which are concerned with the entire program of
FAO in the field of food and agricultural policy.
This Government is studying the various alterna-
tives for continuing the functions of Financial
Control now exercised by the Executive Commit-
tee, and will include recommendations on this
matter in proposed draft amendments to the
Financial Regulations.
This Government considers that the recommen-
dation of the FAO Preparatory Commission for
an annual intergovernmental review and consulta-
tion on national agi'icultural and nutrition pro-
grams is an important one and should be adopted
by the Conference. One of the major tasks of the
Council would then be to assist the Director-Gen-
eral to prepare the report and agenda for the an-
nual consultations. To do this, the Council would
need to review and where appropriate make rec-
ommendations concerning technical developments
in agriculture, nutrition, forestry, and fisheries;
national and international programs and policies
in food and agriculture ; international trade prob-
lems affecting food and agriculture, including ag-
ricultural commodity problems; general economic
development especially in relation to agricultural
and nutrition policies ; and methods by which the
Organization may carry out its obligations in these
fields.
It is proposed that the functions of the Director-
General remain as they now are except that his
responsibilities will undoubtedly increase because
of the enlarged activities whicli the Council may
develop.
The United States Government wiU submit to
the Conference draft amendments to the Rules
of Procedure and Financial Regulations, which
will embody the above suggestions.
II. The Name
The United States Government attaches consid-
erable imjjortance to the name Council of the Food
and Agriculture Organization — {FAO) for two
major reasons:
1. It is desired to emphasize by the name, as well
as by any rules adopted, that the Comicil is an in-
tegral part of FAO. It is the view of this Govern-
ment that the Council should be regarded as an
extension of the Conference and responsible to it.
Any name which indicates or implies an inde-
pendent status from FAO would not be favorably
viewed by this Government.
2. Use of this name will emphasize that the
Council will be concerned with consideration of all
problems and questions within the scope of FAO — •
i.e. non-food agricultural products, forests and for-
est products, and fisheries, as well as food products.
III. Reasons for Proposed Reconvmerulations
Tlie United States Government recommends
that the Executive Committee be reconstituted as
a Council of 18 Member governments for the fol-
lowing reasons:
1. As recommendations of international organi-
zations depend on Member governments for their
implementation, such recommendations should ex-
press not only desirable goals but goals practically
attainable. Experience in many fields has dem-
onstrated that governments are most likely to im-
plement by national action those international rec-
ommendations which they themselves, or a repre-
sentative body composed of governments, have had
a hand in shaping. This is a major reason why the
United States Government favors the establish-
ment of a Council of government representatives.
2. While all Member governments participate
annually in the formulation of recommendations
which constitute FAO policy, events and condi-
tions change and require constant survey, review
and possible further recommendation. A body ex-
ercising powers delegated by the Conference, and
acting on its behalf, should reflect as closely as pos-
sible the Conference itself. Rules to be made by
the Conference can provide for the selection of
members of the Council in such a way that they
will reflect in balanced fashion the interests of all
the Members of the Conference.
3. The proposed Council of FAO should be at-
tended regularly by representatives of all Member
926
Department of State Bulletin
governments elected to serve upon it. It has been
demonstrated that, for unavoidable and often un-
expected reasons, individuals selected to serve in
their personal capacity on the Executive Commit-
tee have been unable to attend meetings regularly.
Under a system of personal selection, there cannot
consistently be a provision for selection of a suc-
cessor in case of sudden vacancy. On the other
hand, a Member nation elected to the Council could
always insure the attendance of a representative at
meetings of the Council.
4. It is felt that experts serving in an individual
capacity on a body such as the Executive Com-
mittee, which has policy functions of a non-tech-
THE UNITED NATIONS
nical cliaracter, are placed in an anomalous situa-
tion. They often must consider their govern-
ment's official views on important policy matters,
yet they have neither official responsibility to their
governments, nor the benefit of official instructions
from their governments. It is felt that the pro-
posed change will help to remedy this situation.
Tliis Government considers that there remains a
large and important role to be played in the FAO
by experts, selected in their individual capacity
to advise the Organization on teclmical questions,
including finance and administration, and it will
welcome the continued cooperation by such experts
in the work of FAO.
PROPOSAL BY THE GOVERNMENT OF THE UNITED KINGDOM
British Embassy
Washington, 24- ^pnl, 19p.
Sir: I have the honour to give notice that his
Majesty's Government in the United Kingdom
intend to propose the following amendments to the
Constitution of the Food and Agriculture Organ-
ization at the Conference at Geneva in August,
1947:
Article V
Delete existing paragraphs 1 and 2.
Substitute the following new paragraphs 1
and 2 :
1. There shall be an Executive Committee con-
sisting of one representative each of not less than
nine or more than fifteen member nations of the
Organization. The member nations to be repre-
sented in Executive Committee shall be elected by
the Conference. In making elections, the Confer-
ence shall have regard to the desirability that
membership should reflect as varied as possible a
range of economies in relation to food and
agriculture.
2. The tenure and other conditions of office of
members of the Executive Committee shall be sub-
ject to the rules to be made by the Conference.
Delete paragi-aph 4.
Renumber existing paragraph 5 as paragraph 4.
I have the honour [etc.]
J. H. Magowan
(For the Ambassador)
Sir John Boyd Orr, D.S.O., M.C., F.R.S.
Director-General
Food and Agriculture Organisation
of the United Nations
Washington, D.C.
PROPOSAL BY THE GOVERNMENT OF AUSTRALIA
Australian Embassy
Washington, 18th April, WJ^'t.
Dear Director-General,
Third Session of FAO Conference
I refer to your telegram to the Department of
External Affairs, Canberra advising that the
Third Session of the Conference is to be held
at Geneva, commencing 25th August, 1947 and
requesting that any proposed amendments of the
Constitution be submitted no later than 26th
April, 1947.
I am directed to advise in accordance with Rule
May n, 1947
742012 — 47 3
of Procedure No. 23 the Commonwealth Govern-
ment wishes to have placed on the agenda for the
Third Session of the conference a proposal for
the amendment of Aiticle V of the Constitution.
The following will be suggested by tlie Com-
monwealth Government to replace Article V as it
now stands:
( 1 ) The Conference shall appoint an Executive
Committee consisting of not less than 9 nor more
than 15 member nations who may each appoint a
person to represent it on the Committee. Each
such representative shall be a person who is in
the opinion of the member nation so appointing
927
THE UNITED NATIONS
him qualified by administrative experience or
other special qualifications to contribute to the
attainment of the purposes of the Organization.
Each nation member of the Executive Committee
may if it considere necessary appoint an alternate
to its representative on the Executive Committee.
(2) The representative or alternate appointed
by the nation member of the Executive Committee
may be selected from persons other than those who
are representing that nation at a meeting of the
Conference.
Yours sincerely,
D. J. MUNRO
Second Secretary
DiRECTOR-GENERAIi
Food and AGRicrrLXURE Organization
2000 Massachusetts Avenue NW.
Washington, D.C
PROPOSAL BY THE EXECUTIVE COMMITTEE OF THE ORGANIZATION
We have examined the question whether any
constitutional amendments are necessary to give
effect to these proposals. In our opinion they are
not. The functions which are to be allotted to the
Commodity Commission of tlie World Food Coun-
cil are advisory and are comprehended in Article
1.2. f. of the Constitution. The power to establish
it seems to be vested in the Conference by Article
VI. However, in case any doubt should exist in
the minds of others on the point and some changes
in the Constitution should be considered necessary,
we would suggest the following :
A. New Paragraph to be inserted in Article IV :
"Function of the Conference" to provide for the
World Food Council, as follows :
The Conference shall sit as the World Food
Council to consider reports submitted by Members
including analyses thereof prepared by the Di-
rector-General in conformity with Article XI.
B. New Article to be inserted between Articles
V and VI :
THE COMMODITY COMMISSION OF THE WORLD
FOOD COUNCIL
1. The Conference shall appoint a Commodity
Conunission of the World Food Council consisting
of representatives of eighteen Member nations.
The mode of election, tenure and other conditions
of office of the Members of this Committee shall
be subject to rules to be made by the Conference.
2. The functions of the Commodity Commission
of the World Food Council shall be :
to examine current developments in proposed
and existing intergovernmental agricultural
commodity arrangements, particularly those
developments affecting adequacy of food supply,
utilization of food reserves and famine relief.
928
changes in production on pricing policies, and
special food programs for undernourished
groups;
to promote consistency and coordination of agri-
cultural commodity policies, national and inter-
national, with regard to (a) over-all FAO ob-
jectives, (b) the interrelationship of production,
distribution, and consumption, and (c) inter-
relationships of agricultural commodities ;
in consultation with the Director-General, to
initiate and authorize groups to study and in-
vestigate agricultural commodity situations
which are becoming critical, and to propose ap-
propriate action, if necessary, in accordance with
Article I.2.f . ;
to draw the attention of the Director-General
and the Executive Committee to the appropriate
assistance which FAO might render to indi-
vidual goverimients in relation to the above
terms of reference ;
and to consider any other matters within its
terms of reference which may be submitted to
it by the Executive Committee or the Director-
General.
3. The Commodity Commission shall meet as
provided for in rules to be made by the Confer-
ence. The Dii-ector-General shall transmit its re-
ports to Member nations and to the Executive
Committee.
4. The Chairman of the Commodity Commis-
sion shall be appointed in accordance with rules to
be made by the Conference.
C. Revision of other articles (new insertions are
italicized) :
Article VII, para. 3 to read as follows:
3. The Director-General or a representative des-
Departmenf of State Bulletin
ignated by him shall participate, without the right
to vote, in all meetings of the Conference, of its
Executive Committee, and of the CoTmnodity Com-
mission of the World Food Council and shall for-
mulate for consideration by the Conference, the
Executive Committee, and the Coimnodity Corny
mission of the World Food Council proposals for
appropriate action in regard to matters coming
before them.
Current United Nations Documents:
A Selected Bibliography
There will be listed periodically in the BuUiETiN
a selection of United Nations documents which
may be of interest to readers.
Printed materials may be secured in the United
States from the International Documents Service,
Columbia University Press, 2960 Broadway, New
York City. Other materials (mimeographed or
processed documents) may be consulted at certain
designated libraries in the United States.
Economic and Social Council
Terms of Reference for the Economic Commission for
Europe. Resolution Adopted by Economic and So-
cial CouncU on 28 March 1947. B/402, Apr. 9, 1947.
4 pp. mimeo.
Terms of Reference for the Economic Commission for
Europe. E/CN.10/1, Apr. 3, 1947. 4 pp. mimeo.
Also, E/CN.lO/1/Corr. 1, Apr. 15, 1947. 1 p. mimeo.
Committee on the Economic Commission for Eurojje.
Draft Terms of Reference for the Economic Com-
mission for Europe. E/363/Rev. 1, Mar. 20, 1947.
5 pp. mimeo.
Annex A. Draft Terms of Reference for the Economic
Commission for Europe. (Resulting From Informal
Discussions Among Representatives of France, the
United States, the United Kingdom, and the Union of
Soviet Socialist Republics.) E/AC.17/3/Add. 1, Mar.
25, 1947. 4 pp. mimeo.
Economic Commission for Europe. Note by the Secretary-
General on the Provisional Agenda of the First Ses-
sion. E/CN.10/6, Apr. 9, 1947. 3 pp. mimeo.
Economic Commission for Asia and the Far East. Reso-
lutions Adopted by the Economic and Social Council
on 28 March 1947. E/405, Apr. 5, 1947. 4 pp. mimeo.
Report of the Working Group for Asia and the Far East.
Temporary Sub-commission on Economic Reconstruc-
tion of Devastated Areas. E/307/Rev. 1, Mar. 4,
1947. 42 pp. printed.
Resolution on Relief Needs After the Termination of
UNRRA Adopted by the General Assembly, Paragraph
8 (a) and (b). Report by the Secretary-General.
E/300, Mar. 3, 1947. 12 pp. mimeo.
THE UNITED NATIONS
Remarks Concerning the Tasks of the Fiscal Commission
( Items No. 6 and No. 9 of the Draft Provisional Agenda
of the First Session.) Note by the Secretariat
E/CN.8/6, Apr. 10, 1947. 15 pp. mimeo.
List of Members of Commissions of the Economic and
Social Council. E/427, Apr. 17, 1947. 7 pp. mimeo.
Fourth Session : Draft Resolutions. E/382, Mar. 26, 1947.
5 pp. mimeo.
Calendar of Economic and Social Meetings in 1947. Note
by the Secretary-General. E/280/Rev. 1, Apr. 22,
1947. 3 pp. mimeo.
Foreign Exchange Problems of the Devastated Countries
of the United Nations. Resolution adopted by Eco-
nomic and Social Council on 28 March 1947. E/434,
Apr. 29, 1947. 2 pp. mimeo.
Temporary Sub-commission on Economic Reconstruction
of Devastated Areas. Working Group for Asia and
the Far East. Check List and Index of Documents.
Prepared by the Documents Index Unit.
E/CN.l/Sub.l/C.2/4, Apr. 25, 1947. 16 pp. mimeo.
General Assembly
Question of Palestine. Text of Mandate (Note by the
Secretary-General). A/292, Apr. 18, 1947. 13 pp.
mimeo.
Question of Palestine. Working Documentation Prepared
by the Secretariat. Volume I. Reference Library on
Palestine. A/296, Apr. 28, 1947. 58 pp. mimeo.
League of Nations Committee. Check List of Documents
of the League of Nations Committee, the Committee on
League of Nations Assets, and the Negotiating Com-
mittee on League of Nations Assets, First Session of
the General Assembly, 1946. Prepared by the Docu-
ments Index Unit. A/LN/4, Apr. 26, 1947. 6 pp.
mimeo.
The Journal of the First Special Session of the General
Assembly of the United Nations, No. 1, was dated
April 25, 1947. The Journal will be published in the
working languages, English and French, each morning
from Monday to Saturday inclusive. It will consist of
the program of meetings, agendas of General Assembly
Meetings, a list of General Assembly documents dis-
tributed and notices of interest to Delegates and the
Secretariat. Verbatim reports of the plenary meet-
ings and of any committee meetings will be issued
separately in mimeographed form, to be printed later
as part of the Official Records of the General
Assembly.
Security Council
Letter from the Permanent Representative of Greece to
the United Nations Addressed to the Secretary-Gen-
eral Dated 24 April 1947. S/334, Apr. 25, 1947. 2 pp.
mimeo.
{Continued on page 947)
May 11, 1947
929
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of May 4, 1947
Far Eastern Commission . .
United Nations:
Security Council
Military Staff Committee . . .
Commission on Atomic Energy .
Commission on Conventional Armaments
Meeting of Experts on Passport and Frontier Formalities
General Assembly: Special Session
Economic Commission for Europe: First Session ....
German External Property Negotiations (Safehaven) :
With Portugal
With Spain
Inter-Allied Trade Board for Japan
International Conference on Trade and Employment: Second Meeting
of Preparatory Committee.
ICAO (International Civil Aviation Organization) :
European-Mediterranean Special Air Traffic Control Meeting . . . .
Air Transport Committee
Interim Council
Fifth International Hydrographic Conference
FAO (Food and Agriculture Organization) : International Timber Con-
ference.
International Meeting of Marine Radio Aids to Navigation
IRO (International Refugee Organization) : Second Part of First Ses-
sion of Preparatory Commission.
Scheduled for May-July 1947
ICAO (International Civil Aviation Organization):
First Meeting of General Assembly
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
ILO (International Labor Organization) :
Industrial Committee on Inland Transport
102d Session of Governing Body
30th Session of International Labor Conference
Permanent Agriculture Committee
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success . . .
Geneva
Flushing Meadows
Geneva
Lisbon . .
Madrid . .
Washington
Geneva . .
Paris . .
Montreal
Montreal
Monaco .
Marianske-Lazne, Czecho-
slovakia.
New York and New Lon-
don.
Lausanne
Montreal . .
Lima ....
Rio de Janeiro
Geneva
Geneva
Geneva
Geneva
Prepared in the Division of International Conferences, Department of State.
1946
Feb. 26
Mar. 25
Mar. 25
June 14
1947
Mar. 24
Apr. 14
Apr. 28
May 2
1946
Sept. 3
Nov. 12
Oct. 24
1947
Apr. 10
Apr. 15
Apr. 28
Apr. 29
Apr. 22
Apr. 28-May 10
Apr. 28-May 10
May 1
May 6
June 17
July 15
May 7
June 13-17
June 19
July
930
Department of State Bulletin
Calendar of meetings — Continued
Congress of the Universal Postal Union
Central Rhine Commission
International Technical Committee of Aerial Legal Experts: 16th Ses-
sion.
Council of Foreign Ministers: Special Committee of Experts . . .
German External Property Negotiations with Turkey (Safehaven) . .
United Nations:
Committee on Progressive Development and Codification of Inter-
national Law.
Economic Commission for Europe:
Transport Session
Second Session
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Preparatory Conference of Experts on Telecommunications ...
ECOSOC (Economic and Social Council) :
Fiscal Commission
Subcommission on Freedom of Information and of the Press . .
Subcommission on Statistical Sampling
Economic and Employment Commission
Human Rights Drafting Committee
Fifth Session
FAO (Food and Agriculture Organization) :
Rice Study Group
Executive Committee
Panel on Soil Erosion Control
International Radio Conference ,
PMCC (Provisional Maritime Consultative Council)
lEFC (International Emergency Food Council) : Fourth Meeting . . ,
Eleventh International Congress of Military Medicine and Pharmacy
ECITO (European Central Inland Transport Organization) : Seventh
Session of the Council (Second Part).
International Cotton Advisory Committee
Caribbean Commission: Fourth Meeting
lARA (Inter- Allied Reparation Agency) : Meeting on Conflicting Cus-
todial Claims.
UNRRA Council : Seventh Session
International Telecommunications Plenipotentiary Conference . . . .
International Council of Scientific Unions: Executive Committee . . .
International Rubber Study Group
Fourth International Congress of Administrative Sciences
UNESCO Executive Board
' Tentative.
May 7 7, 7947
Paris
Strasbourg
Montreal
Vienna
Ankara
Lake Success
Geneva
Geneva
Shanghai
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Trivandrum, Travancore,
India.
Washington
Washington
Atlantic City
Paris
Washington
Basel
Paris
Washington
Jamaica
Brussels
Washington
Atlantic City
Paris
Paris
Bern
Paris
1947
May 7
May 7-8
May 10
May 12
May 12 '
May 12 '
May 15 '
June 23 ^
June 6 '
June 23 ^
June 16 2
May 19 »
May 19 ^
June 2 »
June 2 2
June 9 '
July 19
May 15
June 2
June or July
May 15
May 16
May 26-27
June 2-7
June 3
June 9
June 23-30
June
June
July 1
July 1-2
July 1
July 20-27
July
931
Geneva Meeting of the U.N. Preparatory Committee for the International
Conference on Trade and Employment
REPORT FROM GENEVA TO THE OFFICE OF PUBLIC AFFAIRS,
DEPARTMENT OF STATE
Gejteva, April 2S, 19p. — During the second
week of the Second Session of the Preparatory
Committee for the U. N. Conference on Trade and
Employment, delegates from the 17 countries rep-
resented ^ were hard at work preparing for the
opening of trade negotiations on April 23. The
Conference is proceeding in an atmosphere of quiet
seriousness; everyone present recognizes both the
difficulties to be faced and the necessity for re-
solving them.
Significance of Geneva Meeting
The arrival from Washington of William L.
Clayton, Under Secretary of State for Economic
Affairs and Chairman of the United States Dele-
gation, highlighted the beginning of the second
week. Speaking to the press, Mr. Clayton em-
phasized the dual aims of the Conference — to
eliminate discriminations and reduce barriers to
international trade, and to work out the charter
for an International Trade Organization. This
charter, after submission to countries of the world
and their peoples, will be considered at a world
conference on trade and employment to be called
later by the United Nations.
"Obviously", Mr. Clayton said in speaking of
the Conference aims, "this is a herculean task full
of difficulties. In fact, so far as we are concerned
in the United States, the road up to this point
hasn't been too easy a one, but we are very happy
to have come along that road and finally got here
with, I think, the support of the American people.
"The reciprocal trade agreements program has
been in effect now since 1934. It has proven its
value and its worth, and I think the American
people are firmly behind it and will support what
we are able to do here to achieve the objectives of
which I have spoken."
' The countries represented at the meeting include Aus-
tralia, Belgium-Luxembourg, Brazil, Canada, Chile, China,
Cuba, Czechoslovakia, France, India, Lebanon, the Nether-
lands, New Zealand, Norway, the Union of South Africa,
the United Kingdom, and the United States.
Problem of Free Trade
At this session, Mr. Clayton was asked his views
on free trade. He pointed out that at this time
neither the United States nor other countries are
prepared for free trade.
"What I favor is freer trade than we now have",
he said. "I favor it because it will enable a greater
expansion in the interchange of goods and services
between peoples of the world which, I think, and
I think all economists agree, would inevitably re-
sult in a rising standard of living in the world."
This "is extremely important, so that people every-
where will have a little more to eat and a little
more to wear and better homes in which to live.
And we believe that also has a great deal to do
with the peace of the world."
Mr. Clayton pointed out that under the United
States constitution the imposition of tariff barriers
between the 48 States is prohibited so that there
is fi-ee interchangeability of goods and services be-
tween those 48 States. "I believe that you would
all agree that if we had started out on a different
system and the constitution had permitted the im-
position of barriers to interstate trade, we should
never have reached the high degree of development
and the high standard of living that we now enjoy.
We would have instead a lopsided, inefficient, un-
economic development and a relatively low stand-
ard of living."
U.S. Balance of Trade
One question troubling various people at the
Conference has been the fact that many countries
do not have an adequate supply of American
dollars to purchase American goods. In 1946, it
is pointed out, the United States exported a little
over 10 billion dollars' worth of goods and im-
ported only about one half that amount. It is
through American purchase of foreign goods — im-
ports— that other countries earn dollars to buy
from us and maintain our exports. Mr. Clayton
pointed out the American hope that achieving a
balance in our trade would come about through an
932
Department of State Bulletin
increase in our imports. "We would certainly not
like to see it come about by a reduction in exports."
He believes that the United States is now in a
position to absorb considerably more imports than
we are receiving today, not only with no harm to
our economy but also with actual benefit.
Trade Restrictions
One legacy of war in the forefront of this Con-
ference is the practice of most countries in the
world to use not only tariffs to limit imports but
also such other devices as quotas, exchange con-
trols, and embargoes. Some countries used these
protective methods even before the war. Others
during the war period found such devices necessary
to protect their limited supply of foreign exchange
by stringently restricting both the volume and
character of imports. The United States controls
imports cliiefly through the tariff.
What we are seeking to do here, said Mr. Clay-
ton, is to recognize that use of these protective de-
vices for guarding foreign-exchange balances was
a war and immediate post-war problem and to dis-
continue that method of controlling imports and
controlling international trade as quickly as pos-
sible.
Opening of Trade Negotiations
Reporting on the gratifying progress made in
scheduling trade negotiations, Mr. Wyndlaam-
White, who is executive secretary of the Prepara-
tory Committee of the Conference on Trade and
Employment, pointed out that out of 120 different
trade negotiations possible between countries pres-
ent, four fifths or 96 had already been scheduled.
Twenty-four of these negotiations are scheduled
to open in April, 48 during the first and 24 during
the second half of May. "Opening of negotiations"
means that offers are exchanged between negoti-
ating teams of the two countries involved. Fol-
lowing the study of these offers, the teams proceed
with actual negotiations.
U.S. Schedule for Negotiations
The schedule for the 15 negotiations in which the
United States is involved includes opening of nego-
tiations on April 23 with Australia, Canada,
Czechoslovakia, and the United Kingdom ; on April
24 with France ; on April 28 with Chile, India, and
South Africa; on April 30 with Brazil and New
Zealand; on May 2 with Norway and Lebanon-
Syria ; on May 9 with China and Belgium-Nether-
lands-Luxembourg; and on May 12 with Cuba.
>»CT/V;n£S AND DBVBLOPMENTS
■TO Charter Discussions
Because of the involved and extensive character
of the trade negotiations, the Preparatory Com-
mittee wished to get them under way before de-
tailed discussion of the ITO charter was begun.
Charter discussions are now scheduled to begin
formally on May 15.
Election of Vice Chairmen of
Preparatory Committee
Because of the heavy volume of conference work,
the Preparatory Committee has elected five vice
chairmen to assist Max Suetens of Belgium, who
was elected at the opening meeting. Erik Colban
of Norway is first vice chairman, and Sir Rag-
havan Pillai of India is second vice chairman.
The othei-s are Zdenek Augenthaler of Czechoslo-
vakia, Sergio Clark of Cuba, and L. D. Wilgress
of Canada.
Negotiations Proceeding
The trade discussions must naturally be carried
on in secrecy between the governments concerned.
Revealing offers requested or made of the United
States would of course destroy our negotiating
position and prejudice the success of the negotia-
tions. However, the air is full of rumoi's and com-
ments, most of them bearing little relation to fact.
And meanwhile negotiations are proceeding.
U. S. INVITES SIXTY-TWO NATIONS TO INTER-
NATIONAL STATISTICAL INSTITUTE
[Released to the press April 28]
Tlie Department of State has extended invita-
tions to 62 governments to send official delega-
tions to the 25th session of the International Sta-
tistical Institute. The Department has also in-
vited the governments of 21 American nations to
send delegates to the first session of the Inter-
American Statistical Institute. These organiza-
tions will meet in Washington from September 6
to 18, 1947. The World Statistical Congress,
which is being convened by the Economic and So-
cial Council of the United Nations, is to be held
during the same period in Washington.
For more than 60 years the International Statis-
tical Institute has held biennial sessions at the in-
vitation of various governments. Conforming to
tradition. President Truman has accepted the hon-
orary chairmanship of its twenty-fifth session.
In the past the Institute has been a vital force
in the development of international statistics.
However, with the establishment of a Statistical
May n, 1947
933
ACTIVITIBS AND DEVELOPM£NTS
Commission by the Economic and Social Council
of the United Nations, desigiied to effect a world
statistical system, integi'ating related agencies and
organizations, the International Statistical Insti-
tute is considering assuming the role of an inter-
national professional statistical society.
The first session of the Inter- American Statisti-
cal Institute, an organization which grew out of
discussions at the Eightli American Scientific Con-
gress in 1940, will also be held under the official
sponsorship of the United States Government.
This organization originally comprised members
of the International Statistical Institute in the
Western Hemisphere, but, as an instrument for
the development of statistical science and admin-
istration throughout the Americas, it has gained
the official membership of nearly all of the Ameri-
can governments.
The nations invited to this meeting are as fol-
lows: Argentina, Bolivia, Brazil, Canada, Chile,
Colombia, Costa Rica, Cuba, Dominican Republic,
El Salvador, Ecuador, Guatemala, Haiti, Hon-
duras, Mexico, Nicaragua, Panama, Paraguay.
Peru, Uruguay, and Venezuela.
The countries invited to send delegates to the
International Statistical Institute's twenty-fifth
session include, besides the American nations
listed above, the following: Afghanistan, Aus-
tralia, Austria, Belgium, Burma, China, Czecho-
slovakia, Denmark, Egypt, Eire, Ethiopia, Fin-
land, France, Greece, Hungary, Iceland, India,
Iran, Iraq, Italy, Lebanon, Liberia, Luxembourg,
the Netherlands, New Zealand, Norway, Republic
of the Philippines, Poland, Portugal, Rumania,
Siam, Saudi Arabia, Sweden, Switzerland, Syria
Turkey, Union of South Africa, U.S.S.R., the
United Kingdom, Yemen, and Yugoslavia.
The World Statistical Congress is being held by
the United Nations to discuss the statistical prob-
lems which a representative assembly of statis-
ticians consider to be most worth while for study
by the Statistical Commission and the Statistical
Office of the United Nations. The interrelation-
ships among the statistical activities of the United
Nations, its specialized agencies — such as the
International Labor Organization, the Food and
Agriculture Organization, and the International
Civil Aviation Organization — and the non-gov-
ernmental organizations will also be discussed at
the Congress.
The American Statistical Association will be the
host society. Willard L. Thorp, Assistant Secre-
tary of State for economic affairs and president of
the Association for 1947, is chairman of the com-
mittee which is plamiing the Association's par-
ticipation in the Washington sessions.
Other organizations meeting at the time of the
Congress will be the Econometric Society, an inter-
national organization concerned with the measure-
ment of economic phenomena, and a group which
is organizing an international income conference.
U.S. DELEGATION TO TWELFTH CONGRESS
OF UNIVERSAL POSTAL UNION
[Released to the presB May 21
The Secretary of State announced on May 2
that the President has approved the composition
of the United States Delegation to the Twelfth
Congress of the Universal Postal Union which is
scheduled to be held at Paris, beginning on May
7, 1947. The nominations were submitted by the
Secretary of State, George C. Marshall, upon the
recommendation of the Post Office Depai'tment.
The United States Delegation is listed as follows :
Chairman
Prank Pace, Jr., Executive Assistant to the Postmaster
General, Post Office Department
Vice Chairman
John J. Gillen, Acting Second Assistant Postmaster Gen-
eral, Post Office Department
Delegates
Frederick E. Batrus, Attorney, Office of the Solicitor,
Post Office Department
Mary Ellen Crosby, Administrative Assistant to the
Second Assistant Postmaster General, Post Office
Department
Frank J. Delany, Solicitor, Post Office Department
Bernard P. Dickmann, Postmaster, St. Louis, Missouri
James J. Doran, Chief Post Office Inspector, Post Office
Department
Franziska M. Jonas, Secretary, Post Office Department
Everett W. Leonard, Assistant Chief of Section, Interna-
tional Postal Transport, Post Office Department
Edward J. Mahoney, Director, Foreign Air Postal Trans-
port, Post Office Department
Advisers
William O. Hall, Adviser, Division of International Or-
ganization Affairs, Department of State
Frances H. Lafferty, Divisional Assistant, Telecommuni-
cations Division, Department of State
Interpreter-Transla tor
Michael E. Robles, Translator, New York Post Office
The United States Government has been a mem-
ber of the Universal Postal Union and has partici-
934
Department of Stale Bulletin
pated in its activities since the establishment of
the Union in 1874.
The Universal Postal Union, which was estab-
lished to assure the organization and perfection of
various international postal services, held its
Eleventh Congi-ess at Buenos Aires in 1939. The
Twelfth Congress was originally scheduled to be
held in 1944 but was postponed because of the war.
At its forthcoming meeting the Congress will
consider propositions and proposed changes in
the convention of the Union which have been sub-
mitted to the Bureau of the Union at Bern and
have been circularized to countries which are
members of the Union. It is expected that ques-
tions relating to membership in the Union, in-
volving new members or adherences, will be dis-
cussed. A proposed agreement between the Uni-
versal Postal Union and the United Nations to
regulate the relationship between these two bodies
will also be considered.
INTERIM ASSEMBLY TO ORGANIZE RADIO
TECHNICAL COMMITTEE FOR MARINE
SERVICES
[Released to the press April 28]
The Department of State has invited certain
Government agencies and shipping and other ma-
rine groups to serve on an interim "assembly"
which will organize a Radio Technical Commis-
sion for Marine Services (RTCM) at a meeting to
be held in Washington on May 12, 1947.
The RTCM will have the same relation to the
maritime field that the present Radio Technical
Conmiission for Aeronautics (RTCA) has to avia-
tion. As a Government-industry group, it will
study marine problems and make coordinated
recommendations respecting radio devices and
procedures to aid navigation and safety at sea.
Because of the immediate need for a functioning
organization to meet demands imposed by the In-
ternational Meeting on Marine Radio Aids to
Navigation, opening at New York City on April
28, 1947, and the World Telecommunications
Conference, convening at Atlantic City on May
15, 1947, a fro tern. RTCM Executive Committee
has been serving preparatory to tlie formulative
meeting which will elect officers, adopt a constitu-
ton and by-laws, and outline immediate problems.
The organizational assembly will be held on the
eleventh floor of the War Manpower Building,
1778 Pennsylvania Avenue NW., starting at 10
a. m. Organizations which have not received in-
ACTIVITIBS AND DEVELOPMENTS
vitations to participate and are interested in ma-
rine telecommunications are welcome to attend.
Developments have introduced problems in ma-
rine as well as other forms of radiocommunication.
There is not sufficient radio-frequency space to
accommodate the host of new marine radio navi-
gation aids which perform the same function. In
the interests of standardization, some choice must
be made before ship o^jerators can put them to
use. This choice has international as well as na-
tional implications.
The United States undertook to study this situ-
ation when in May 1946 the United Kingdom in-
vited the leading maritime nations to a
preliminary discussion of the application of new
radio aids to marine navigation. This meeting
emphasized the need of a United States organiza-
tion to coordinate and crystallize the thinking of
the Government and private groups concerned.
Immediately upon the return of the United
States Delegation from London, there was foi'med
an ad hoc committee on which Rear Admiral TSIer-
lin O'Neill, United States Coast Guard, served as
chairman. Meanwhile, the Department of State
stimulated the formation of a representative or-
ganization which could give the subject wide tech-
nical study in order that the United States would
have satisfactory data and make consolidated rec-
ommendations on which to base proposals for
sound solution. Several open meetings, attended
by representatives of both Government and indus-
try, were held to lay the groundwork and draft
a constitution and by-laws patterned to those of
the RTCA.
The proposed RTCM constitution provides for
a general membership known as the Assembly,
composed of United States organizations which
are active in phases of marine telecommunications,
including shipping operations. It provides fur-
ther for an executive committee, or administrative
body, comprising delegates named by the partici-
pating Federal agencies and industiy organiza-
tions.
The RTCM organizational agenda calls for three
officers only — a chairman, a vice chairman, and a
secretary. J. H. Dellinger of the National Bureau
of Standards has been serving as temporary chair-
man, Commissioner Edward M. AVebster of the
Federal Communications Commission as vice
chairman -pro tein., and Lt. Comdr. L. E. Brunner
of the United States Coast Guard as secretary.
May 11, 1947
935
THE RECORD OF THE WEEK
President of Mexico Welcomed Upon Arrival in U.S.
GREETING BY PRESIDENT TRUMAN'
Mr. President, Distinguished Guests, and
Friends :
It is an especial pleasure for me to greet you here
in Washington, Mr. President, as the guest of the
Government and peoi^le of the United States. It
gives me the deepest personal satisfaction to do
this, and in extending a welcome to Your Excel-
lency I greet you not only as the President of the
United Mexican States but as a man whom I have
come to know and value as a personal friend.
The i^eople of this country followed closely each
of the many acts of genuine hospitality that were
extended to me as their Chief of State during my
visit to Mexico a few weeks ago. They interpret
your many kindnesses to me, not only as an exam-
ple of the whole-hearted Mexican hospitality that
thousands of our visitors to your country have ex-
perienced but also as a symbol of the relationship
'Address of greeting delivered on Apr. 29, 1JM7, at the
National Airport in Washington, upon the occasion of the
arrival of Miguel Alem^n, the President of Mexico.
A full report of the visit was broadcast throughout
the world in 25 languages over the short-wave facilities of
the Voice of the United States of America.
The International Broadcasting Division cooperated
with the Columbia Broadcasting System and the National
Broadcasting Company in elaborate arrangements for im-
mediate broadcasts to Mexico of the President's visit and
in the recordings of documentary programs on the high
lights of his tour. These recordings were short-waved by
the Voice of the United States of America throughout Latin
America during the evening listening hours. News sum-
maries of the President's visit were broadcast by short
wave to other parts of the world at various times during
his stay.
President Aleman's speech to a joint meeting of Congress
on May 1 was broadcast immediately to Mexico and re-
broadcast by short wave that evening to the other Ameri-
can republics. Ceremonies at the dinner of the Pan Ameri-
can Society of New York on the evening of May 2 were
broadcast direct by short wave throughout Latin America.
between the friendly people of two neighboring
countries.
The nations of this hemisphere are confronted
today with problems of many kinds, some affecting
the two American continents and serious in their
import to the well-being and happiness of our
Western World, and others that influence our ac-
tions as individual republics. We can all do much
to raise the living standard of the hemisphere and
of the world by increasing our production of food-
stuffs and of raw materials needed by industry, and
by improving the distribution of these products, in
the spirit of our inter-American association.
We have, as a group of free nations, the moral
strength, and moreover have the proved good-will
of our several countries, to find equitable and
peaceful solutions to differences of any nature
that arise among us who live in the New World.
One can find no better testimony of this than the
manner in which the peoples of Mexico and the
United States are living side by side today.
The people of evei-y State of the Union have
asked, by means of letters and telegrams to me, to
their Congressmen, to civic organizations, and to
the press, that this Government endeavor to the
best of its ability to reciprocate the most hospitable
welcome that you and the Mexican people ex-
tended six weeks ago to me and through me to
the people of the United States. My small part
in carrying out this mandate will be one of the
happiest events of my tour of office. We want
to show you the full extent of our appreciation
of your visit to our country and of our deter-
mination to perpetuate friendship with the great
Mexican nation.
In welcoming you today to Washington, I ex-
press to Your Excellency and to the distinguished
members of your party the sincere hospitality of
the people of the United States.
936
Department of State Bulletin
Planned Stabilization of Rate of Ex-
change Between U.S. and Mexico
JOINT STATEMENT BY THE PRESIDENT
OF THE U.S. AND THE PRESIDENT
OF MEXICO 1
During the conversations that have taken place
in Washington as a continuation of those begun
in Mexico in March of this year, the Presidents of
the United Mexican States and of the United
States of America have had an opportunity to
ratify in the friendliest spirit their common pur-
pose to further develop, for the reciprocal benefit
of their peoples, the cordial relations existing be-
tween the two Republics.
Recognizing that one of the most important and
practical methods of strengthening the policy of
solidarity of the two Nations is imdoubtedly a
program of cooperation to solve the complex
economic problems of the present post-war period,
both Chiefs of State have agreed that their re-
spective administrations must exert all efforts to
raise the standards of living in their countries by
increasing productivity and, consequently, the
purchasing power of their peoples.
To this end the Presidents of the United Mexi-
can States and of the United States of America
are pleased to announce that they concur in the
desirability of signing a new agreement to stabi-
lize the rate of exchange between the peso and the
dollar.
In addition, the Export-Import Bank of Wash-
ington is prepared to approve additional credits
to Mexico to assist in financing a number of proj-
ects laid before it by the Mexican Government —
projects which are designed to make the greatest
and earliest contribution to the economy of
Mexico.
Other important aspects of the program of
economic cooperation between the two Republics
are under study.
In issuing this statement both Chiefs of State
express their satisfaction with the great cordiality
attained in the relations of the peoples they repre-
sent, and both, inspired by the ideals of good
neighborliness and by mutual and full under-
THE RECORD OF TH£ WBBK
standing of their problems, reaffirm their decision
to strengthen the bonds of the inter-American
community.
President of IVIexico Awarded
Legion of Merit
The following citation accompanied the award of
the Legion of Merit degree of Chief Gowmander
to Miguel Alenidn, President of Mexico, during a
White House dinner in his honor on May 1, 19Ji.7
His Excellency Miguel Aleman, President and
Commander-in-Chief of the Armed Forces of
Mexico, has displayed unswerving friendship to
the United States and to the ideals of the Good
Neighbor Policy, the success of which he has done
so much to assure. His eagerness to enhance the
bonds of friendship between Mexico and the
United States and his strong backing of the
progressive and liberal foreign policy of his
goverimient have established a shining pattern of
the spirit which is making Pan Americanism the
true brotherhood of the nations of America.
Tax Treaty Negotiations With Mexico
[Released to the press May 2]
Arrangements have been made for an American
Delegation to visit Mexico in the latter part of
June of this year to conduct ad referendum nego-
tiations looking to the conclusion of treaties be-
tween the United States and Mexico for the avoid-
ance of double taxation and for administrative
cooperation in prevention of tax evasion with re-
spect to income taxes and to taxes on estates of
deceased persons.
The discussions are expected to result in the
preparation of draft treaties which will be sub-
mitted by the negotiators to their respective gov-
ernments for consideration with a view to signing.
In preparation for the negotiations, the Ameri-
can Delegation will welcome conferences with
interested parties or statements and suggestions
from them concerning problems in tax relations
with Mexico. Communications in this connection
should be addressed to Eldon P. King, Special
Deputy Commissioner of Internal Revenue, Bu-
reau of Internal Revenue, Washington 25, D.C.
' Released to the press simultaneously by the White
House in Washington and in Mexico City on May 1, 1947.
May 11, 1947
937
THE RECORD OF THE WBEK
Signing of Aviation Agreement
With Argentina
[Keleased to the press May 1)
The Department of State announced on May 1
the signing of a bilateral aviation agreement with
Argentina incorporating the Bermuda principles.
Final determination of the routes to be flown by
the air lines of the two countries will be worked
out by subsequent agreement.
James M. Landis, Chairman of the Civil Aero-
nautics Board, as the pei-sonal representative of
the President, with temporary rank of Minister,
negotiated this agreement in Buenos Aires in col-
laboration with Ambassador Messersmith. They
were assisted by John O. Bell and Thomas T.
Carter of the Aviation Division of the Department
of State. The full text of the agreement will be
released after Mr. Landis' return to Washington.
MercFiant Marine Academy To Train
Students From Otiier American
Republics
The President on May 1 named 11 young men
from other American republics to receive the four-
year course of instruction at the United States
Merchant Marine Academy, Kings Point, New
York, beginning July 1, 1947.
The successful candidates are expected to arrive
in Washington during May. Before reporting to
the Academy they will attend the orientation
school maintained under Department of State aus-
pices at Wilson Teachers College, Washington,
D.C. The Department of State, through its Di-
vision of International Exchange of Persons, has
cooperated in the arrangements for awarding the
scholarships and facilitating the arrival in this
country of the 11 cadet-midshipmen.
A limited number of cadet-midshipmen from
the other American republics are authorized to
serve in the United States Merchant Marine Cadet
Corps following their nomination by the President
to the chairman of the United States Maritime
Commission.
During the training period the midshipmen
selected will be subject to all the requirements and
regulations applying to cadet-midshipmen from
the United States; however, such graduates shall
not be entitled to appointment to any office or posi-
tion in the United States Merchant Marine by
reason of their graduation from the Academy.
938
The course of training consists of 12 months as
a fourth-classman and approximately 1 year
aboard a merchant or training vessel which gives
the cadet-midshipman an opportunity to learn at
first hand about the ships upon which he will serve
as an officer, correlated with a prescribed course of
study designed to prepare the cadet-midshipman
for his last 2 years at the Academy.
Argentina, Brazil, Chile, Colombia, Cuba, Ecua-
dor, Panama, Paraguay, Peru, Uruguay, and
Venezuela will be represented at the Academy by
the cadet-midshipmen designated by the President.
Appointment of a Mexican cadet-midshipman will
be announced at a later date.
Sweden Releases Statement on
Import Restrictions
[Released to the press May 3]
With reference to the current trade discussions
in Washington on the Swedish import restrictions
placed in effect on March 15, 1947, the Swedish
Legation has informed the Department of State
that the Swedish Government is making public in
Stockholm a statement concerning the treatment
to be accorded goods on order or en route at the
time of the imposition of the restrictions.
The statement of the Swedish Government, after
pointing out that certain commodities were already
covered by import restrictions prior to March 15,
1947, repeats the substance of a previous announce-
ment that no import licenses will be required for
goods on the so-called free list, nor for goods
loaded on board ship or other means of transport
by March 20, 1947, nor for goods for which full
payment had been made on or before March 15,
1947.
The Swedish Government then states that li-
censes will be granted for the import of all com-
modities which were placed under import restric-
tions on March 15, 1947, provided that the Swedish
importer when applying for an import license es-
tablishes the following facts :
(1) that a bo7m fide contract contemplating de-
livery prior to October 1, 1947, had been entered
into on or before March 15, 1947, and
(2) that the delivery in Sweden of the goods
mentioned in the contract will be effected before
October 1, 1947.
The announcement of the Swedish Government
further provides that in the special case of con-
Deparfment of Slate Bullefin
tracts placed on or before March 15, 1947, pro-
viding for periodic deliveries, favorable considera-
tion will be given only to that part calling for de-
liveries prior to October 1, 1947.
The Swedish Government also gives assurances
that license applications for goods ordered on or
before March 15, 1947, for delivery after October
1, 1947, will be given favorable consideration if the
exporter had, by March 15, 1947, already com-
menced production in accordance with specifica-
tions wliich render the product not easily dispos-
able elsewhere.
It is suggested by the Swedish Government that
American exporters make sure that a Swedish im-
port license, when required, has been granted, be-
fore shipping their goods to Sweden. With this
end in view the American exporter should obtain
the number of the Swedish import license from the
Swedish importer.
In case an American exporter has difficulty in
furnishing his Swedish correspondent with the in-
formation required for the procuring of an import
license, as set forth above, the field offices of the
Department of Commerce are being instructed to
render such assistance as is appropriate in the
assembling of the required information, and in its
transmission to the American Legation at Stock-
holm, which will be prepared to present the case
of the American exporter to the appropriate au-
thorities of the Swedish Government.
Progress of Swedish Trade Talks
[Released to the press May 1]
The Legation of Sweden has informed the De-
partment of State that Envoye (Minister) Dag
Hammarskjold, who has been taking part in the
discussions between the Governments of Sweden
and the United States concerning the problems
arising from the imposition of import restrictions
on March 15, 1947, by the Swedish Government
was to return to Sweden on May 3 for the start of
financial talks with representatives of the United
Kingdom.
Mr. Hammarskjold is able to return to Sweden
at this time because of the satisfactory progress
which has been made in the discussions in Wash-
ington. It is expected that he will be back in
Washington in approximately 10 days for the con-
clusion of talks with the United States Govern-
ment. In the meantime the trade discussions with
THE RECORD OF THE WEEK
the other Swedish representatives in Washington
will continue.
A satisfactory understanding has been reached
with the Swedish representatives concerning the
treatment to be accorded American goods on order
in the United States or en route to Sweden as of
March 15, 1947. A statement on the understanding
is now being drafted and will be released as soon
as possible.
Claims for American Property Confis-
cated in the Netherlands
[Released to the press April 28]
At the time of the liberation the Netherlands
Government assumed control of a number of
organizations which had been established by the
Germans to confiscate property in the Netherlands.
The procedure to be followed by American na-
tionals in attempting to recover property which
had been confiscated by one of those organizations,
Deutsche Revisions- und Treuhand A.G., was de-
scribed in the Bulletin of April 6, 1947, p. 632.
The custodians of Lippmann, Rosenthal & Co.,
Sarphatistraat, Amsterdam, have also issued
notices advising persons whose property was con-
fiscated by that agency to present claims. That
agency was used by the Germans to confiscate
Jewish property. A small part of the confiscated
property is still held by the custodians, and will
be restored upon proper identification. Owners of
property which was sold, or which cannot be
identified, may file claims with the custodians to
share in the fund which will be realized from the
liquidation of the assets of the agency. The cus-
todians by notice dated January 2, 1947, announced
that the heirs of a person who had an account with
the organization and whose death has been of-
ficially proved are also authorized to file claims.
William L. Clayton to Economic
Commission for Europe
The Senate on April 25, 1947, confirmed the
nomination of William L. Clayton, Under Secre-
tary of State for Economic Affairs, to be the repre-
sentative of the United States of America in the
Economic Commission for Europe established by
the Economic and Social Council of the United
Nations on March 28, 1947.
May 17, 7947
939
U.S. Reiterates Objection to Treatment of American Correspondent in Spain
EXCHANGE OF NOTES BETWEEN AMERICAN CHARGE' D'AFFAIRES
AT MADRID AND SPANISH FOREIGN MINISTER
[Released to the press May 2]
Texts of notes exchanged hy the Foreign Minister
of Spain and the American Charge d'' Affairs at
Madrid, dated April U, 1947, and April 28, 1H7,
respectively, concerning the action of the Spanish
Government in withdrawing press credentials
from Francis E. McMahon, correspondent in Spain
from the New York Post
[Translation]
Ministry of Foreign Affairs
Madrid, April 1^, IBlfl.
Mr. Charge d'affaires : In reply to your ami-
able Note of April 7, I am pleased to confirm to
you in writing what I told you orally on the 11th
of the same month, after having informed myself
carefully from the Press Services concerning the
background of the matter.
It was only through a special consideration, be-
cause there was involved an American citizen and
because the Embassy of the United States in Ma-
drid had intervened in his favor, that the news-
paperman Mr. McMahon was given permission last
August to enter Spain, in spite of the reports which
were given of him in certain Catholic circles in
the United States, which reports showed him as a
person very apasionada in politics with prejudices
against Spain and, as a result, having very little
objectivity in his newspaper work.
During six months Mr. McMahon has enjoyed
full and complete liberty to circulate throughout
Spanish territory and to send in his articles with-
out any hindrance to the paper by which he was
sent. Tolerance has also been demonstrated be-
cause, in spite of the fact that Mr. McMahon was
only accredited as correspondent of the New York
Post, of New York, his work has appeared in the
press of other countries, especially in the French
press and in that of some Spanish-American
countries.
Styling himself a reporter on Spanish life, Mr.
McMahon, who is a Catholic, has, however, not
940
been interested in saying anything to his readers
regarding any of the numerous aspects of the
Spanish Catholic resurgence which has been noted
in the past few years, nor concerning the intense
cultural activity of the new Institutions, nor con-
cerning the great legislative reforms of a Christian
character which have been introduced in the world
of labor and the progress which has been attained
in social directions, nor with regard to Spanish
literature, Spanish art and the customs and feasts
of Spain.
During these six months in which he has sent to
his paper as many articles as he wished to write,
Mr. McMahon, systematically and repeatedly, has
devoted himself in almost all of them, in a pref-
erential maimer, to speculations regarding the
poverty of the humble classes which is not supe-
rior, in fact much less, than that which in a period
of world crisis may be undergone by the poor of
any other nation; he has preferred to refer in a
systematic maimer to the population of the jails, in
spite of the fact that in both numbers and quality
it is comparable to that of the period 1920-1931
and it is treated with a greater human considera-
tion than it may be in many other countries ; he has
imaginatively exaggerated alleged separatist in-
clinations of Basques and Catalans; he has de-
duced the most offensive comparisons from the
limitations prevailing in certain public liberties,
although the said legal dispositions have not pre-
vented him from moving at his will throughout
the country and from writing freely in a manner
which would not have been permitted in other
countries.
Mr. McMahon has given a poor return to the
very ample freedom which the Spanish Govern-
ment grants to all foreign correspondents in order
that they may report to their readers. There are
many of his articles in which there are gathered
up in lightness of spirit street fabrications, rumors,
fantasies or simple expressions of opinion de-
rived from any ignorant person, almost always
unnamed. In almost no case, as it is the essential
Department of Sfafe Bulletin
duty of the newspaperman, has Mr. McMahon
taken care to investigate the veracity of his reports
or to indicate the quality of his sources of inform-
ation.
The tendentious manner in which certain true
facts are reported; the obstinacy with which he
has fled from trustworthy sources of information
in order in reiterated fashion to seai'ch after the
most discredited sources; and finally, the lack of
objectivity which has even induced him to trans-
mit an incitement to foreign countries to inter-
vene in Spain (article published in the New York
Post of March 16, 1946) remain very evident as
one reads the articles sent in by Mr. McMahon.
II
With these antecedents, there having been proved
the bad use which Mr. McMahon had made of the
freedom granted him for the exercise of his pro-
fession and his lack of informative objectivity,
and although through a bureaucratic error (due to
the accumulation of work on the eve of Holy Week
and the customary vacations) three days before
his permit had been automatically extended when
it expired, as the Embassy recognizes, on March 24,
the General Direction of Press, on the 27th of
that month, cancelled the aforesaid extension, in-
forming ]\Ir. McMahon that his camet would not
be renewed.
I take pleasure, therefore, in repeating that the
deduction which the Embassy under your worthy
direction makes to the effect that the measure
adopted by the General Direction of Press was
specifically due to the transmission of an article
by Mr. McMahon on the 26th of the aforesaid
month of March is not exact; that article was held
up because the carnet had expired as of the 24th.
Ill
Neither the examination of the documents in
this file nor the oral explanations given by Mr.
McMahon in your presence in our interview of
April 11 produced any reasons which might
justify on the part of this Ministry an approach
to that of National Education in order to review
the measure taken by it of not extending Mr. Mc-
Mahon's correspondent's carnet. That measure,
far from being of a singular character, is only the
legitimate exercise of a legal right of the Govern-
ment when one considers that an entrance visa for
a foreigner, the granting of a carnet and its
eventual extension are in Spain, as in other coun-
IHE RECORD OF THE WEEK
tries, completely within the free will of the ad-
mmistration.
IV
There is no foundation for deducing that the
fact of not extending the carnet of Mr. McMahon
can imply any rectification in the firm and proven
criterion which the Spanish Government main-
tains to assure without any censorship or control
complete liberty of behaviour for foreign corre-
spondents duly accredited in Spain. On the con-
trary, a proof of the said criterion is the fact that
during six months that freedom has been fully
respected until the expiration of the permit in
the case of a newspaperman who had used it in
order to be ignorant of and to belittle the country
and its Government.
At the present time there are in Spain the fol-
lowing American newspapermen, none of whom
have had the least obstacle in the carrying out of
their mission: Arnot Dosch-Fleurot, of the
Christian Science Monitor; Frank Breese, director
of the United Press ; Tom Allen, subdirector of the
United Press ; Alburn West, director of the Asso-
ciated Press; Karl Hartman, subdirector of the
Associated Press ; Sam Pope Brewer, of the New
York Times; Homer E. Knoblaugh, of Interna-
tional News Service ; Amie Allen, of Lady's Home.
Also there have been recently in Spain : Arthur
E. Vesey and his wife, of the Chicago Tribune;
Miss Rita Hume, of the North American News-
paper Alliance ; and Mrs. Marie Hansen and her
husband David N. Nussbaum, of Holiday.
In addition to these, and in the last two years,
the following gentlemen have exercised their pro-
fession in Spain without any difficulty: Ralph
Forte, of the United Press ; Paul Kennedy, of the
New York Times; Peter Carroll, photographer
of the Associated Press; Anne Stadler, of the
I.N.S.; Henry Wales, of the Chicago Tribune;
C. L. Sulzberger, of the New York Times; Charles
Foltz, of the Associated Press; Kingsbury Smith,
of the I.N.S.; Sheila Baker, of the News Week;
L. A. Brown, London director of the New York
Times; Herbert M. Clark, of American Broad-
casting Company ; Alan Herman, of the Columbia
Broadcasting; Carl Howard, of the Associated
Press; Larry Rue, of the Chicago Tribune;
Georgia Long, of the Spanish Evidence Guild;
L. Mackenzie, of the Associated Press ; Kathcrine
Margaret Maher, of the New York Times; Marion
J. Fri ; John Nevin, of the Associated Press ; Don-
May 11, 1947
941
THE RECORD Of THE WEEK
aid B. Robinson ; lone Rovingon, of the Saturday
Review; Edward Paddock Morgan, Calles Week-
ly; Paul Palmer, of the Reader'' s Digest; Sam
Boales, of the New York Post; Peter Whitney, of
the Chicago Swi; Carl Wiegand, of the Hearst
Press ; John A. Thale, of the Chicago Daily Neios;
Constantine Brown, of the Evening Star; and
possibly a few more.
The evidence in this case being so clear, I hope
with foundation that the Government of the
United States which, as you tell me, has been
interested in the matter, will find justified the cor-
rect and serene attitude of the Spanish Govern-
ment, not attributing gi-eater importance to the
matter involved.
I take [etc.] Alberto Martin Aetajo
The Ainerican Charge d'Aif aires at Madrid to the
Spanish Foreign Minister
April 28, 19^7.
Excellency : I have received Your Excellency's
note of April 14 in reply to mine of April 7 re-
garding the withdrawal of press privileges in
Spain of the American correspondent, Dr. Francis
E. McMahon. "While I appreciate the attention
which you personally have given to this matter,
I cannot but reiterate my regret at both the man-
ner in which Dr. McMahon was treated and at the
decision which was finally reached. Your note
suggests certain additional considerations.
The question, as I see it, is not one of whether
the Spanish Government or any organism thereof
insists that Dr. McMahon has not reported ob-
jectively with regard to conditions in Spain. It
would obviously be impossible to maintain the
policy which the Spanish Government announced
two yeai-s ago of gi-anting to foreign correspond-
ents freedom from control and censorship and at
the same time to demand of these correspondents a
type of reporting which would be considered ob-
jective to those organisms of the Spanish Govern-
ment wliich control and censor the Spanish press.
Moi'e than one of the correspondents whom you
list in your note have been publicly attacked in the
official newspaper of the Spanish Government
Arriha, for lack of objectivity and yet the policy
of freedom from control or censorship for foreign
correspondents was maintained in their cases.
You will, therefore, I am sure, understand the
justice of the conclusion which the Department
942
of State has reached to the effect that the afore-
said policy no longer prevails.
I also note that Your Excellency considers mis-
taken the deduction of this Embassy to the effect
that the action taken in Dr. McMahon's case was
specifically due to the contents of his telegram of
March 26. That deduction was based upon the
following :
(a) The fact that Dr. McMahon's press card
was renewed on March 24 at his request, that the
renewal was signed by the Director General of
Press and that the carnet was specially sent to
Dr. McMahon in Seville, all of which facts indicate
that the renewal was duly considered by the highest
authorities and not handled on any sort of routine
basis.
" (Z») If the detention of Dr. McMahon's telegram
of March 26 had been due to the fact that his press
card was considered to have expired, it would be
logical to suppose that he would immediately have
been advised thereof. However he received no
such advice until April 2. This indicates to me
that it was the consideration of this particular
telegram by the authorities which resulted in the
decision taken against him.
(c) On the afternoon of April 3 Sefior Cerro
made a statement on the matter to a representative
of the AP in which, according to the published re-
port of the AP, he referred to one of the matters
dealt with in the aforementioned telegram of
March 26.
This reference would have been definitely out
of place if the reason for holding up the telegram
had been merely that Dr. McMahon's press card
was considered invalid as of the date when the
aforesaid telegram was filed.
(d) On April 3 I asked Seiior Erice, Director
General of Foreign Policy in the Ministry of
Foreign Affairs, to ascertain the facts in the case.
Wlien I called upon him on April 5 he said that
it was a very serious matter because there was
involved an attack on Your Excellency. I had
with me a copy of Dr. McMahon's telegram of
March 26 which I showed to Seiior Erice and at
his request I left with him a translation of the
particular item which he and I at that time be-
lieved was the one which had caused the action
taken against Dr. McMahon. That item, quoted
in full in my note of April 7, far from being an
attack by Dr. McMahon was merely the report of
Department of State Bulletin
an attack by the periodical of an official organism
of the Spanish Government.
I wish also to reiterate that, regardless of the
decision reached by the Spanish Government in
this matter and without in any way questioning the
complete jurisdiction of that government in the
field, the Department of State and this Embassy
deeply regret the manner in which Dr. McMahon
was treated by the press authorities of the Spanish
Government. His telegram of March 26 was
held up without notification to him and it was not
until April 2 when he iiad already filed a second
telegram that he was informed of a measure which,
according to Your Excellency's note, had been
decided on March 27, the day after the filing of
the first of the aforementioned telegrams. This
proceeding of the press authorities, besides being
arbitrary and highly discourteous, caused Dr.
McMahon 's employer in the United States, the New
York Post, sei-ious concern because of their failure
to receive any exjilanation for the non-arrival of
their correspondent's regular weekly telegram.
It contrasts most unfavorably with the treatment
accorded Spanish correspondents in tlie United
States.
Philip W. Bonsal
Facts on U.S. Shipments of
Bread Grain to France
[Released to the press May 1]
The Department of State is concerned about re-
ports in the French press which represent the
recently announced reduction in the French bread
ration as in part resulting from a failure on the
part of the United States to meet commitments re-
garding bread-grain shipments to France. In or-
der to clarify the situation, the International
Emergency Food Council, whose recommendations
serve as a guide for programming of United States
grain exports, was asked to advise on the facts.
The Secretary General of I.E.F.C. reported to the
Department as follows:
"The initial grain import program from all
sources recommended by the International Emer-
gency Food Council for metropolitan France and
French North Africa taken together for the year
July 1, 1946-June 30, 1947, amounted to 641,000
tons. This program was increased to 1,084,000
tons in revisions made during and subsequent to
negotiations of the French Minister of Agricul-
May n, 7947
THB RECORD OF THE WBEK
ture, M. Tanguy-Prigent, in February 1947, with
the International Emergency Food Council. In
recommending the increase, the I.E.F.C. took into
account the reported widespread winter killing of
the French wheat crop and approved as feed for
livestock 100,000 tons of the secondary grain which
had previously been imported by France and used
for this purpose. Known shipments from all
sources up to February 1 as now recorded by
I.E.F.C. total 573,000 tons, leaving 511,000 tons
of the 1,084,000 to be obtained from all sources in
the period February-June 1947.
"Toward meeting this balance of 511,000 tons
from all sources, the United States has announced
that it hopes to ship at least 459,000 tons of bread
grains to metropolitan France and French North
Africa between February and June of this year.
This program, together with shipments now re-
ported from other sources, would bring known
shipments and declared programs to metropolitan
France and North Africa to 1,087,000 tons for the
crop year ending July 1, 1947, or a quantity
slightly in excess of the International Emergency
Food Council recommendation of 1,084,000 tons
for that period. This total does not include any
shipments from sources other than the United
States which have not yet been reported or any
others which may be made from these sources in
May and June."
Release of Summary and Recommen-
dations of the American Economic
Mission to Greece
The Department of State released on April 30
the Summary and Eecommendations of the Amer-
ican Economic Mission to Greece.
The report consists of : a summary and recom-
mendations ; chapters on public finance, currency,
banking and credit, international commercial and
financial relations, Government administration,
price, rent, and wage controls, reconstruction and
development, industry and mines, agriculture,
food and fishing, shipping, and foreign aid since
liberation; and appendices.
The text of the summaiy and recommendations
of the Mission will be printed in a supplement of
the Bttlletin, entitled Aid to Greece aiid Tur-
key, dated May 4, 1947, which will be released at
an early date (Department of State publication
2802).
943
THE SUPREME ECONOMIC COUNCIL OF THE
ALLIED AND ASSOCIATED POWERS, 1919
ty Matilda F. Axton
On May 4, 19Jt7, the Department of State released Papers
Relating to the Foreign Relations of the United States, The
Paris Peace Conference, 1919, vol. X, containing the minutes
of the meetings of the Supreme Economic Council from Feb.
17., 1919, to Feb. 7, 1920. This volume was compiled by
Matilda F. Axton, under the direction of E. R. Perkins,
Editor of Foreign Relations. Copies may be purchased from
the Superintendent of Documents, Governme7it Printing
Office, Washington 25, D.C., for $2.76 each.
Prior to the signature of the German peace
treaty, June 28, 1919, the Supreme Economic Coun-
cil, which performed a large part of the detailed
executive work of the Supreme Council, was mainly
concerned with relief problems of the famine-
stricken countries of eastern Europe and with the
revictualing of Germany in accordance with the
terms of the Armistice.
The economic control machinery of World War
I was exercised by the Allied Maritime Transport
Council, because in the circumstances of 1917 and
1918 transport was the controlling factor and the
Supreme War Council was not in permanent ses-
sion and therefore could not exercise continuity of
supervision. That Council, created after the in-
ter-Allied meetings of November-December 1917,
held its first meeting in March 1918 and thereafter
met three times before the Armistice. The Allied
Maritime Transport Executive, established in Lon-
don, exercised day-to-day control with the assist-
ance of a tonnage committee, a ship-purchasing
committee, and an imports committee. Various
program committees and executives were engaged
in more immediate control of production and pur-
chase of such items as leather, hides, and wool;
others operated under the Allied Munitions Coun-
cil, the Allied Food Council, the Wheat Executive,
Oil-Seeds Executive, Meats and Fats Executive,
and Sugar Programme Committee. Because the
United States was the main source of supply, a
vitally important body was the Allied Council on
War Purchases.
With the termination of hostilities, various plans
were presented regarding the control of the eco-
nomic position during the Armistice period. The
members of the Allied Maritime Transport Council
brought before their respective governments the
recommendation that their Council be converted
into a General Economic Council with certain ex-
tensions and changes of personnel. The British
Government took the initiative and on November
13, 1918, transmitted an official communication to
the Governments of the United States, France, and
Italy suggesting the revision of the representation
and functions of the Allied Maritime Transport
Council. The United States Government, how-
ever, took the view that war organizations should
be discontinued and the problems of the Armistice
should be handled by appropriate new machinery.
As a result of prolonged discussions during Decem-
ber 1918, an Allied Supreme Council of Supply
and Relief was created. The new Council, re-
stricted to one not clearly separable part of many
economic problems facing the Allies, proved in-
eifective.
The Supreme Council on February 8, 1919,
adopted a proposal, presented by President Wilson,
for the establishment at Paris of a Supreme Eco-
nomic Council to meet the need for more satisfac-
tory machinery to coordinate economic affairs.
This Council was given the power to absorb or
replace such other existing inter-Allied bodies and
their powers as it might be necessary. It was to
be composed of not more than five representatives
of each interested Government.
944
Department of State Bulletin
The Supreme Economic Council at its first meet-
ing February 17, 1919, decided that the Allied
Maritime Transport Council, the Inter-Allied
Food Coxmcil, the Allied Supreme Comicil of
Supply and Eelief, the Programme Committees,
and the Superior Blockade Council should retain
their powers but should report their decisions reg-
ularly to the Supreme Economic Council. A Food
Section, under the chairmanship of Hei'bert
Hoover as Director General of Relief, assumed the
functions of the Allied Supreme Council of Supply
and Relief and the Inter-Allied Food Council.
The Allied Maritime Transport Council continued
as the Maritime Transport Section, with J. A.
Salter (British), as chairman, succeeded later by
Kemball Cooke (British). The Supreme Block-
ade Council became the Blockade Section, adopt-
ing the title of Superior Blockade Council ; Vance
McCormick was chairman. The new sections for
finance, communications, and raw materials were
under the chairmanship of Norman H. Davis, Gen.
H. O. Vance (British), and Bernard M. Baruch,
respectively.
The most difficult work of the Supreme Eco-
nomic Council arose out of the handling of eco-
nomic relations with Germany during the Armis-
tice period. The Supreme Economic Council on
April 14, 1919, provided for a subcommittee on
Germany in Paris to coordinate the decisions of its
commissions and sections with regard to Germany
and to act as a channel of communication on eco-
nomic matters to and from the Germans. The only
direct communication was through the Armistice
Commission at Spa. On April 21, 1919, the
Supreme Council agreed to the proposal of the
Supreme Economic Council that a German com-
mission be established at or near Paris to facilitate
economic negotiations. Although some German
communications continued with the Armistice
Commission at Spa, the greater part of the eco-
nomic negotiations thereafter took place at Ver-
sailles, the headquarters of the German Economic
Commission.
Article XXVI of the Armistice agreement of
November 11, 1918,^ provided in effect that,
although the blockade of Germany would be main-
tained in principle, the Allies and the United
States would permit the provisioning of Germany
during the Armistice to the extent that would be
considered necessary. The agreement, however.
THE RECORD OF THE WEEK
contained no provision for the surrender to the
Allies of the German merchant fleet. The strin-
gent tonnage situation which developed in the early
months of 1919 necessitated the inamediate putting
into use of these German vessels for the transport
of relief supplies. Negotiations for their surrender
were conducted; a clause in the agreement of
January 16, 1919, renewing the Armistice,^ and the
Treves agreement of January 17, 1919,^ provided
that Germany should be enabled to import food
subject to the provision of the requisite finance.
Pi'otracted negotiations then took place at Spa
and Treves regarding the conditions of supply of
food to Germany, the terms of transfer of the ships,
and the method of payment for the food. Delays
arose over the German refusal to hand over the
ships witliout first receiving a guaranty from the
Allies of a definite quantity of food before the
harvest. These difficulties were finally settled by
the Brussels agreement, March 13-14, 1919,* under
which deliveries of food were made to Germany
to the end of August 1919. The transfer of the
ships began on March 22, 1919, and proceeded
expeditiously.
Control of economic affairs in the occupied ter-
ritory of the Rhineland became one of the most
important functions of the Supreme Economic
Council. The four zones in the Rhineland occu-
pied by the American, British, French, and Bel-
gian Armies had been arbitrarily defined with no
relation to the social and economic structure of
the country. The four Army Commands dealt
not only with problems primarily of a military
character but also with problems directly economic
or affecting only the German civil administra-
tions. In addition to the Inter-Allied High Com-
mand, a large number of inter- Allied commissions
were also dealing with specific economic questions
on the left bank of the Rhine. Recognizing the
fact that economic questions affecting the occu-
pied zones could not be handled efficiently by so
' Foreifin Relations, The Paris Peace Conference, 1919,
vol. II, pp. 1, 6. (Department of State publication 1823.)
' Ibid., pp. 11, 15.
' Der Waffenstillstand 1918-1919, das Dokumenten-
Material der Waffcnstillstands-Verhandlung von Com-
piigne. Spa, Trier und Briissel, herausgegeben im Auftrage
der Deutschen Waffenstillstands-Kommission mit Ge-
nehmigung des AuswUrtigen Amtes (Berlin, 1928), band
2, p. 37.
* See David Hunter Miller, My Diary at the Conference
of Paris, vol. XVII, pp. 197-214.
May 11, 1947
945
THE RECORD OF THE WEEK
many competing authorities, the Supreme Coun-
cil, on April 21, 1919, approved recommendations
of the Supreme Economic Council to the effect :
"1. That an Inter-Allied Commission, consist-
ing of four Commissioners, one from each Ally-
concerned with the administration of the occupied
territories, should, together with an Italiaii liaison
officer, be set up with full authority to coordinate
the administration of the four Army Commands
on all economic, industrial, and food questions, in
accordance with the policy laid down from time to
time by the Supreme Economic Council.
"2. That orders should be issued under authority
of the Supreme War Council to the Army Com-
mands in the various areas, that directions given
by the Commission shall be uniformly executed
throughout the whole area."
In accordance with this decision of the Supreme
Council, the Inter-Allied Khineland Commission
was set up at Luxembourg and later at Coblenz,
with Paul Tirard, the French Commissioner, as
President. Pierrepont B. Noyes was appointed
to act as the American Commissioner.
The Supreme Economic Council established, or
brought under its authority, relief missions in
Austria, Czechoslovakia, Hungary, Rumania,
Serbia, Poland, the Baltic States, south Russia,
and Turkey. It also set up a special mission at
Trieste to supervise and expedite deliveries to
Austria and other states.
In his final report to the Supreme Council, Sep-
tember 3, 1919, Mr. Hoover stated that a total of
3,955,110 tons of foodstuffs and clothing of the
value of $968,338,222 from the various Allied and
Associated Governments had been distributed by
his organization between December 1, 1918, and
August 31, 1919; and that, in addition, a large
number of exchanges in potatoes, meat, grain, et
cetera, had been arranged between interior coun-
tries in central and eastern Europe, amounting
to somewhat over 500,000 tons of foodstuffs. Mr.
Hoover also stated, in conclusion, that "the result
of these operations has been to carry Europe (ex-
cept Russia) through the greatest famine since the
Thirty Years War without appreciable loss of life,
although necessarily with some privation."
The Commimications Section of the Supreme
Economic Council organized and coordinated as-
sistance for the maintenance and improvement of
the existing port, railway, inland-waterway, and
946
telegraphic facilities of eastern Europe. Through
a large staff and the supply of large quantities
of materials, the railways, which had been dis-
integrated by war use and by political changes,
were sufficiently restored to maintain the move-
ment of the basic necessities of life throughout
the area; the rivers Elbe, Danube, and Vistula
were reopened for traffic; and, in order to cope
with the movement of supplies and control of
railways, and to rehabilitate economic life gen-
erally, telegraphic communication was organized
throughout central and eastern Europe.
The organization and work of the Supreme Eco-
nomic Council was fundamentally different in a
number of respects after the German ratification of
the peace treaty, and the ending of the Armistice
period. By that time the general lines of admin-
istration of relief in eastern Europe had been laid
down and the supply of food to Germany was in
full operation, and with the approaching harvest
the supply of food to relief countries was also
rapidly ceasing. On June 28, 1919, at the last
meeting of the Supreme Council attended by Presi-
dent Wilson, it was agreed that the Supreme Eco-
nomic Council should suggest for the consideration
of the several governments the methods of consul-
tation which would be most serviceable for this
purpose. The Supreme Economic Council recom-
mended that an International Economic Council
be constituted to replace the Supreme Economic
Council and that it hold its meetings in the chief
Allied capitals in turn, the first meeting to be held
in Washington after the ratification of the peace
treaty. When it was not found possible to pro-
ceed with this plan because of the failure of the
United States to ratify the treaty, the Supreme
Economic Council continued to function under its
old title, holding its meetings in various Allied
capitals at irregular intervals until February 1920.
Although the American delegates continued to
participate in the meetings of the Supreme Eco-
nomic Council through the 29th meeting at Lon-
don, August 1-2, 1919, they were principally con-
cerned with completing the food-relief commit-
ments of the United States and making arrange-
ments for closing down their organization through-
out Europe. Mr. Hoover and all the American
delegates who had been primarily concerned with
the Supreme Economic Council had returned to the
United States by September 1919 and were not
replaced.
Department of State Bulletin
U.S. Interpretation of Terms of EVIoscow Agreement on Korea
NOTE FROM SECRETARY OF STATE TO SOVIET MINISTER FOR FOREIGN AFFAIRS
[ Released to the press May 2 ]
Dear Mr. MoiiOTov : I have considered youi" let-
ter of April 19, 1947 ^ in which you accept our pro-
posal to reconvene the U.S.-U.S.S.R. Joint Com-
mission and suggest that the Commission resume
its work on May 20 of this year. I have also noted
your statement that resumption of the Commis-
sion's work shall be "on the basis of an exact execu-
tion of the Moscow Agreement on Korea".
In order to avoid any future misunderstanding
with respect to the phrase "exact execution" I wish
to make clear my interpretation of the phrase. In
my letter to you of April 8^1 stated that the Joint
Commission should be charged with expediting
"its work under the terms of the Moscow Agree-
ment on a basis of respect for the democratic right
of freedom of opinion". In making this state-
ment I had and have in mind the well-known posi-
tion of the Government of the United States that
Korean representatives of democratic parties and
social organizations shall not be excluded from
consultation with the Commission on the forma-
tion of a provisional Korean government because
of opinions they might hold or may have expressed
in the past concerning the future government of
their country, provided they are prepared to co-
operate with the Commission.
You mention three points which the Soviet Gov-
ernment believes to be of primary importance in
its policy towards Korea. Your statement con-
cerning the importance of establishing a provi-
sional democratic Koi-ean government on the basis
of wide-scale participation of Korean democratic
parties and social organizations has from the be-
ginning been accepted by the United States Gov-
ernment as basic to its policy of assisting in the
establishment of a self-governing sovereign Ko-
rea, independent of foreign control and eligible
for membership in the United Nations.
I interpret your second point with respect to
the establishment of "democratic authority agen-
cies" throughout Korea as referring to local,
provincial and national government agencies
chosen, as you state, by means of free elections on
the basis of a general and equal electoral right.
May n, 1947
1 welcome the assurance contained in your
third point with regard to the importance you
attach to aiding in the restoration of Korea as
an independent democratic state and in the de-
velopment of its national economy and national
culture. The United States Government has un-
der consideration a constructive program for the
rehabilitation of the economy of Korea and for
its educational and political development.
In order that I may direct the United States
Commander in Korea to make preparations for
opening the sessions of the Joint Commission in
Seoul on May 20, 1947, may I receive an early
confirmation that we are mutually agreed as to
the basis on which the Commission shall resume
its important work?
I am furnishing copies of this letter to the Gov-
ernments of China and the United Kingdom.
Please accept [etc.] George C. Marshall
U.N. Documents — Continued from page 939
Letter from the Minister of Hungary to the United States
Addressed to the Secretary-General Dated 22 April
1947. S/333, Apr. 25, 1947. 1 p. niimeo.
Trusteeship Council
List of Trusteeship Council Documents Issued as of 10
April 1947 in Connection With the First Session of the
Trusteeship Council. ( Memorandum Prepared by the
Secretariat.) T/INF/3, Apr. 14, 1947. 7 pp. mimeo.
Trusteeship Agreements. Texts of the Eight Trusteeship
Agreements Approved by the General Assembly at the
Sixty-second Meeting of Its First Session, 13 Decem-
ber 1946. T/8, Mar. 25, 1947. 62 pp. mimeo.
Report by the Committee on Questionnaires to the Trustee-
ship Council. T/AC.2/1, Apr. 22, 1947. 43 pp. mimeo.
Compilation of Questions in the Formulation of Question-
naires : Item 8 of the Provisional Agenda for the First
Session of the Trusteeship Council. (Memorandum
preparedby the Secretariat.) T/9, Mar. 25, 1947. 63
pp. mimeo.
Draft Report by the Trusteeship Council to the General
Assembly Covering the First Session of the Council, 26
March to 28 April 1947. T/39, Apr. 28, 1947. 16 pp.
mimeo.
' Bulletin of May 4, 1947, p. 812.
' Bulletin of Apr. 20, 1947, p. 716.
947
THE RECORD Of THE WEEK
Negotiations Planned for Settlement
of China's War Accounts
[Released to the press May 2]
The Government of China has responded
affirmatively to a recent United States proposal
that negotiations looking to settlement of out-
standing war accounts begin soon in Washington,
the Secretary of State announced on May 2.
The discussions will extend to settlement of
lend-lease, other wartime financial obligations of
the two Governments, vmad justed aspects of sur-
plus war property transactions, and other finan-
cial claims arising out of the conduct of the war.
United States war aid to China included ap-
proximately 1.5 billion dollars' worth of lend-
lease assistance under the mutual-aid agi'eement of
June 2, 1942, and a 1942 loan of 500 million dol-
lars, or a total of roughly 2 billion dollars.
Nearly half of the total lend-lease assistance was
extended after V-J Day.
Surplus property sales to China (including the
bulk sale of August 30, 1946) have amounted to
about 900 million dollars at procurement cost.
The agreed sales price is approximately 210 mil-
lion dollars. Of the 210 million dollars, the sum
of 120 million dollars was offset against United
States obligations to China on account of yuan
and Taiwan yen advances ( for support of United
States military forces) and 55 million dollars rep-
resents local currency which the Chinese agreed
to make available to be used in payment of United
States Government expenses in Chma. This
latter sum comprises 35 million dollars for the
acquisition and improvement of property for em-
bassies, consulates, and chancelleries, and 20 mil-
lion dollars designated for the fulfilment of
cultural and educational programs.
Two special agreements on lend-lease matters
were signed in June 1946, one specifying the pay-
ment and other terms governing civilian lend-
lease "pipe-line" deliveries after V-J Day, and
the other the terms governing the limited pro-
vision, for payment, of military lend-lease aid for
a limited period after June 30, 1946. Neither of
these agreements covered the general questions of
lend-lease settlement, or other economic matters
usually associated with the general settlement of
'Proclamation 2729 (12 Federal Register 2643).
' For texts of notes and enclosures, see Department of
State press release 350 of Apr. 24.
948
war accounts, all of which will be comprehended
by the approaching discussions.
The terms of the lend-lease settlement agree-
ment to be reached with China are expected to
reflect the same liberal settlement principles that
have found expression in the major lend-lease
settlements heretofore concluded with other gov-
ernments, notably that with the United Kingdom
agreed in December 1945.
Extension of Copyright Agreement
With New Zealand '
An agreement between the Government of tliQ
United States and the Government of New Zealand
for an extension of time for fulfilment of the con-
ditions and formalities for securing copyright was
eifected on April 24, 1947,- by an exchange of notes
between the New Zealand Minister and the Acting
Secretary of State.
The note from the New Zealand Minister is
accompanied by a copy of an Order in Council
published in the New Zealand Gazette of April 24,
1947, according copyright-extension privileges to
authors and copyright proprietors of the United
States. The note from the Acting Secretary of
State to the New Zealand Minister is accompanied
by a co^Dy of a proclamation issued on April 24,
1947, by the President of the United States pur-
suant to Public Law 258, 77th Congress (55 Stat.
732) , extending to New Zealand authors and copy-
right proprietors the time for compliance with and
for the fulfilment of the conditions and formalities
established by the laws of the United States of
America relating to copyright.
Air-Transport Agreement With Syria
[Released to the press April 28]
A bilateral air-transport agieement between the
United States and Syria was signed on April 28
in Damascus. James S. Moose, Jr., Charge
d'Affaires, signed on behalf of the United States
Government, and Prime Minister Jamil Mardam
Bey signed for Syria.
The agreement is substantially the same as the
agreement between the United States and Lebanon
and is similar to the United States-Egyptian air-
transport agreement as well. Under its terms,
Pan American Airways will be authorized to make
traffic stops at Damascus with fifth-freedom rights
on the certificated route between the United States
and India and the Far East.
Deparfmenf of State Bulletin
Agreement of Friendship and Commerce Witii Nepal
SIGNING OF AGREEMENT
[Released to the press April 29]
The first formal agreement between the King-
dom of Nepal and the United States Government
was concluded on April 25, 1947, with the signing
of an agreement of friendship and commerce at
Katmandu, the capital of Nepal. Joseph C. Sat-
terthwaite, Personal Representative of the Presi-
dent, and His Highness Maharaja Padma Shum
Shere Jung Bahadur Rana, Prime Minister of
Nepal, signed the agreement on behalf of the
United States Government and the Kingdom of
Nepal, respectively.
This is an Executive agreement which is in-
tended to remain in force vmtil superseded by a
more comprehensive commercial agreement and is
terminable on 30 days' written notice by either
party. The agreement provides for the exchange
of diplomatic and consular representation, estab-
lishes a minimum standard for treatment of
American nationals who may go to Nepal, and es-
tablishes the rule of non-discrimination in the
future commercial relations between the two
countries. The new document is similar to agree-
ments concluded in 1946 with the Yemen and in
1933 with Saudi Arabia.
UNITED STATES NOTE TO PRI
[Released to the press April 30]
Text of United States note addressed to the Prime
Minister of Nepal, which contains the terms of the
friendship and com.merce agreement between the
United States of America and the Kingdom of
Nepal, signed at Kathmandu, April 25, 1947,
effective April 25, 1947. The Nepalese Prime
Minister's reply of the same date repeats verbatim
the terms contained in the United States note
April 25, 1947.
ExcEULENCY : I have the honor to make the fol-
lowing statement of my Government's under-
standing of the agi-eement reached through recent
conversations held at Kathmandu by representa-
tives of the Government of the United States of
America and the Government of the Kingdom of
Nepal with reference to diplomatic and consular
representation, juridical protection, commerce and
navigation. These two Governments, desiring to
strengthen the friendly relations happily existing
The recognition of the independence of Nepal
by the Government of the United States was ex-
pressed in a personal letter from President Tru-
man, presented personally by Mr. Satterthwaite
on April 21 to His Majesty, The Maharajadhiraja,
Tribhubana Bir Bikram Jung Bahadur Shah
Bahadur Shum Shere Jung Deva, King of Nepal.^
Mr. Satterthwaite, who with his advisers arrived
in Katmandu on April 13, reports that his mission
has been received by the Nepalese with the utmost
cordiality and that his negotiations with Nepalese
Government officials have been characterized
throughout by a spirit of frankness and good-will.
The agreement with the Himalayan Kingdom
will provide a basis for better understanding be-
tween the United States and Nepal as well as be-
tween the United States and the southern Asia
area in general. It will also provide a provisional
basis for economic and cultural relations between
two countries hitherto little known to each other.
The United States note addressed to the Prime
Minister of Nepal, dated April 25, 1947, contains
the terms of agreement. The Nepalese Prime
Minister's reply of the same date repeats verbatim
the terms contained in the United States note.
ME MINISTER OF NEPAL
between the two countries, to further mutually
advantageous commercial relations between their
peoples, and to maintain the most-favored-nation
principle in its unconditional and milimited form
as the basis of their commercial i-elations, agree to
the following provisions :
1. The United States of America and the King-
dom of Nepal will establish diplomatic and con-
sular relations at a date which shall be fixed by
mutual agreement between the two Governments.
2. The diplomatic representatives of each Party
accredited to the Government of the other Party
shall enjoy in the territories of such other Party
the rights, privileges, exemptions and immunities
accorded under generally recognized principles
of international law. The consular officers of each
Party who are assigned to the Government of the
other Party, and are duly provided with ex-
' Not printed.
May M, 1947
949
THS RECORD OF THE WBEK
equal urs, shall be permitted to reside in the terri-
tories of such other Party at the places where
consular officers are permitted by the applicable
laws to reside; they shall enjoy the honorary priv-
ileges and immunities accorded to officers of their
rank by general international usage: and they
shall not, in any event, be treated in a manner
less favorable than similar officers of any third
country.
3. All furniture, equipment and supplies in-
tended for official use in a consular or diplomatic
office of the sending state shall be permitted entry
into the territory of the receiving state free of all
customs duties and internal revenue or other taxes
whether imposed upon or by reason of importation.
4. The baggage and eflFects and other articles im-
ported exclusively for the personal use of consular
and diplomatic officers and employees and the
members of their respective families and suites,
■who are nationals of the sending state and are not
nationals of the receiving state and are not en-
gaged in any private occupation for gain in
territory of the receiving state, shall be exempt
from all customs duties and internal revenue or
other taxes whether imposed upon or by reason of
importation. Such exemption shall be granted
with respect to property accompanying any per-
son entitled to claim an exemption under this para-
graph on first arrival or on any subsequent arrival
and with respect to property consigned to any such
person during the period the consular or diploma-
tic officer or employee, for or through whom the
exemption is claimed, is assigned to or is employed
in the receiving state by the sending state.
5. It is understood, however, (a) that the exemp-
tions provided by paragraph 4 of this Agi-eement
shall be accordwl in respect of employees in a con-
sular office only when the names of such employees
have been duly communicated to the appropriate
authorities of the receiving state; (b) that in the
ca.se of the consignments to which paragraph 4 of
this Agreement refers, either state may, as a con-
dition to the granting of the exemption provided,
require that a notification of any such consign-
ment be given in such manner as it may prescribe ;
and (c) that nothing herein shall be construed to
permit the entry into the territory of either state
of any article the importation of which is specifi-
cally prohibited by law.
6. Nationals of the Kingdom of Nepal in the
United States of America and nationals of the
United States of America in the Kingdom of Nepal
shall be received and treated in accordance with
the requirements and practices of generally recog-
nized international law. In respect of their per-
sons, possessions and rights, such nationals shall
enjoy the fullest protection of the laws and au-
thorities of the country, and shall not be treated
in any manner less favorable than the nationals of
any third country.
7. In all matters relating to customs duties and
charges of any kind imposed on or in connection
with importation or exportation or otherwise af-
fecting commerce and navigation, to the method
of levying such duties and charges, to all rules and
formalities in connection with importation or ex-
portation, and to transit, warehousing and other
facilities, each Party shall accord unconditional
and unrestricted most-favored-nation treatment to
articles the growth, produce or manufacture of tlie
other Party, from whatever place arriving, or to
articles destined for exportation to the territories
of such other Party, by whatever route. Any ad-
vantage, favor, privilege or immunity with respect
to any duty, charge or regulation affecting com-
merce or navigation now or hereafter accorded by
the United States of America or by the Kingdom
of Nepal to any third country shall be accorded
immediately and unconditionally to the commerce
and navigation of the Kingdom of Nepal and of
the United States of America, respectively.
8. There shall be excepted from the provisions
of paragraph 7 of this Agreement advantages now
or hereafter accorded : (a) by virtue of a customs
union of which either Party may become a mem-
ber; (b) to adjacent countries in order to facilitate
frontier traffic; (c) to third countries which are
parties to a multilateral economic agreement of
general applicability, including a trade area of
substantial size, having as its objective the liberal-
ization and promotion of international trade or
other international economic intercourse and open
to adoption by all the United Nations; and (d) by
the United States of America or its territories or
possessions to one another, to the Republic of Cuba,
to the Republic of the Philippines, or to the
Panama Canal Zone. Clause (d) shall continue
to apply in respect of any advantages now or here-
after accorded by the United States of America or
its territories or possessions to one another ir-
respective of any change in the political status of
any such territories or possessions.
950
Department of State Bulletin
9. Nothing in this Agreement shall prevent the
adoption or enforcement by either Party : (a) of
measures relating to fissionable materials, to the
importation or exportation of gold and silver, to
the traflSc in arms, ammunition and implements of
war, or to such traffic in other goods and materials
as is carried on for the purpose of supplying
a militai-y establishment; (b) of measures neces-
sary in pursuance of obligations for the main-
tenance of international peace and security or
necessary for the protection of the essential inter-
ests of such Party in time of national emergency ;
or (c) of statutes in relation to immigration.
10. Subject to the requirement that, under like
circumstances and conditions, there shall be no
arbitrary discrimination by either Party against
the nationals, commerce or navigation of the other
Party in favor of the nationals, commerce or navi-
gation of any third country, the provisions of this
Agreement shall not extend to prohibitions or re-
strictions: (a) imposed on moral or humani-
tarian grounds; (b) designed to protect human,
animal, or plant life or health; (c) relating to
prison-made goods ; or (d) relating to the enforce-
ment of police or revenue laws.
11. The provisions of this Agreement shall ap-
ply to all territory under the sovereignty or au-
thority of either of the parties, except the Panama
Canal Zone.
12. This Agi'eement shall continue in force until
superseded by a more comprehensive commercial
agreement, or until thirty days from the date t)f
a written notice of termination given by either
Party to the other Party, whichever is the earlier.
Moreovei-, either Party may terminate paragraphs
7 and 8 on thirty days written notice.
If the above provisions are acceptable to the
Government of the Kingdom of Nepal this note
and the reply signifying assent (hereto shall, if
agreeable to that Government, be regarded as con-
stituting an agreement between the two Govern-
ments which shall become effective on the date of
such acceptance.
Please accept [etc.]
Joseph C. Sattekthwaite
Chief, Special U. S. Diplomatic Mission
to the Kingdom of Nepal
Padma Shum Siiere Juno Bahadur Rana,
Prime Minister, Kingdom of Nepal
THE RECORD OF THB WEEK
Government Calls Conference With
Radio industries To Discuss inter-
national Broadcasting
[Released to the press May 4]
The Secretary of State will attend a conference
on May 5 with the heads of seven private companies
which own and operate short-wave radio facilities
under contract with the Government, to discuss the
future of international broadcasting.
The representatives of the seven companies plan
to discuss pending legislation and appropria-
tions for international broadcasting. They have
been in general agreement that industry cannot
finance international broadcasting on the scale
needed, that Government financing is essential,
and that continued appropriations to the Depart-
ment of State for international broadcasting are
necessary until Congress agrees upon long-term
plans.
The industry representatives who will attend
the meetings are : William Paley, chairman of the
Columbia Broadcasting System; Niles Tranunel,
president of the National Broadcasting Company ;
Philip Eeed, chairman of the General Electric
Company ; James Shouse, President of the Crosley
Radio Corporation; Walter Evans, president of
the Westinghouse Electric Corporation; Wesley
Dumm, president of the Associated Broadcasting
System: and Walter Lemmon, president of the
World Wide Broadcasting Foundation.
Others who will attend the meeting are Dean
Acheson, Under Secretary of State ; William Ben-
ton, Assistant Secretary for public affairs; David
Sarnoff, president of the Radio Corporation of
America; and James Lawrence Fly, former chair-
man of the Federal Connnunications Conunission
and now counsel for the Associated Broadcasting
System.
Among the congressional loaders who have been
invited to attend the meeting are the following:
From the Senate — Arthur H. Vandenborg,
president pro tempore; Alben W. Biirkley, minor-
ity iloor leader; Tom Connally, Carl A. Hatch, and
Walter F'. George of the Foreign Relations Com-
mittee; Stylos Bridges, Patrick McCarran, Joseph
H. Ball, and Wallace H. AVhite, Jr., of (he Ap-
propriations Committee; Charles W. Tobey, Ed-
win C. Johnson, and Brien McMahon of the Inter-
state and Foreign Commerce Committee.
May 7 J, 1947
951
THE RECORD Of THE WEEK
From the ZTow^e— Joseph W. Martin, Jr.,
Speaker; Sam Rayburn, minority leader; Charles
A. Eaton and Sol Bloom of the Foreign Affairs
Committee; John Taber, Clarence Cannon, and
Karl Stefan of the Appropriations Committee;
Charles A. Wolverton and Clarence F. Lea of the
Interstate and Foreign Commerce Committee.
Program Schedules Distributed for
Voice of U.S.A.
[Released to the press April 23]
Program schedules of the "Voice of the United
States of America", printed in six foreign lan-
guages, -will be mailed to 324,850 overseas listeners
who have written to the Department of State
requesting them. The program schedules, now
being issued for the month of June, are printed in
French, German, Italian, Chinese, Spanish, and
Portuguese, in addition to English.
The schedules are mailed from the New York
studios of the Voice of the United States of Amer-
ica each month about six weeks in advance. Re-
quests from overseas listeners are in response to
annoimcements in the six languages that the pro-
gram schedules are available. In view of the
foreign custom of community listening to short-
wave broadcasts, these requests are believed to
represent only a fraction of the actual number of
listeners.
Requests for the programs have nearly doubled
since they were offered in French last November,
in Italian in January, and in German and Chinese
in February. The programs previously had been
printed in Spanish and Portuguese for Latin
American listeners.
Requests from Germany have been received at
the rate of about 18,000 a month and from France
and Italy at the rate of about 8,000 a month. Re-
cent reports from China stated that thousands of
program requests had been received at the 11
consular offices in China for forwarding to the
United States.
The June programs will go to 52,500 listeners in
Germany, 50,000 in France, 35,800 in Italy, 17,600
in China, 130,750 in Spanish to Latin America, and
38,200 in Portuguese to Brazil.
' Printed from Department of State publication 2799.
952
Fifth Report to Congress on Foreign
Surplus Disposal
LETTER OF TRANSMITTAL OF THE
SECRETARY OF STATE'
To The Honorable the President of the Senate
The Honorable the Speaker of the House of
Representattves
Sirs : In accordance with section 24 of the Sur-
plus Property Act of 1944 there is transmitted
herewith the fifth report of the Department of
State on the disposal of United States surplus
property in foreign areas. Incorporated therein is
the report required from the Foreign Liquidation
Commissioner by Section 202 of the Philippine
Rehabilitation Act of 1946 concerning the admin-
istration of Title II of that Act.
In addition to continued sales, major progress
was made during the January-March quarter in
the delivery of property previously sold in major
bulk sales. All deliveries under the largest bulk
sale, that to France, were completed during the
quarter, as were deliveries to Belgium. The bulk
of the property currently available has also been
transferred to Italy under the Italian bulk sale
and plans have been made for the expeditious turn-
over of the remainder when our troops are with-
drawn from Italy.
Substantial progress was also made in connec-
tion with the large bulk sales in the Pacific area.
The Philippine Government has assumed custody
of approximately one-third of the total volume to
be turned over and further transfers are progress-
ing rapidly. Transfers of the property located in
China to the Chinese Government are practically
complete and arrangements for the packaging and
shipment of the property sold to the Chinese from
islands in the Pacific are well under way and a
portion of the property has already begun to
move.
"While a considerable amount of detailed record-
keeping remains, the United States Government
has been relieved of the burden of care and cus-
tody with respect to $800,000,000 of property dur-
ing the quarter. Sales have continued from the
property currently in inventory and as of March
31, $7,174,000,000 of property at original cost had
been sold for a realization of $1,671,000,000.
As is explained in some detail in this report,
we have approximately $3,000,000,000 worth of
l>&pat\men\ of State Bulletin
property, at original cost, still to be sold. The
major concentration is in Germany where an in-
tensive site-sales program has been planned and
is now coming into operation.
George C. Marshai^l
Secretary of State
Washington, D.C.
Apnl 30, lOJtl
Philip C. Jessup Appointed Represent-
ative on Committee on International
Law
The President has appointed Philip C. Jessup,
professor of international law at Columbia Uni-
versity, as the Representative of the United States
on the Committee on the Progressive Development
of International Law and Its Codification which
is to hold its first meeting at Lake Success on May
12, 1947.
This Committee was established by a resolution
of the General Assembly of the United Nations at
its last session in New York. It is to study methods
by which the General Assembly should encourage
the progressive development of international law
and its eventual codification, methods of securing
the cooperation of the several organs of the United
Nations to this end, and methods of enlisting the
assistance of such national or international bodies
as might aid in the attainment of this objective.
The Committee is to report to the General Assem-
bly at its next regular session in September.
Inter-American Copyright Convention
Enters Into Force
[Released to the press by the
Pan American Union April 14]
With the deposit of the Dominican Republic's
ratification at the Pan American Union on April
14, the inter-American convention on the rights
of the author in literary, scientific, and artistic
works becomes an effective instrument in inter-
national law.
Article XX of the convention provides that
it goes into force on the date the second coun-
try deposits its ratification. The first state — •
Ecuador — deposited its ratification on March 4,
1947.
This convention was agreed upon last June at a
conference of experts on copyright specially called
THE RECORD OF Wt WEEK
to meet at the Pan American Union for the pur-
pose.^ The delegates after three weeks of debate
achieved a text fairly representing the different
viewpoints, and all twenty-one republics signed
the instrument on June 22. It will be binding
upon the remaining signatory states on the date
of the deposit of their instruments of ratification.
Other deposits may be expected as the legisla-
tive process of approval can be completed in the
various countries. In the case of Mexico, the proc-
ess was completed by the ratification of the Presi-
dent on December 31, 1946, and deposit is expected
in a few days.
Civic Leaders To Discuss Foreign Policy
With U.S. Officials
[Released to the press April 30]
The Department of State announced on April
30 that representatives of civic organizations from
all sections of the United States will convene in
Washington on June 4 for a three-day meeting to
discuss American foreign policy. The program
will include statements by officials of the Depart-
ment of State, United States representatives to the
United Nations, and Congressional leaders.
Attendance at the sessions of the meeting will
include organizations and associations which have
over a period of time indicated a continuing inter-
est in international affairs and which carry on edu-
cational programs in this field. Among the groups
which have designated representatives for the
meeting are farm, labor, business, women's, veter-
ans', educational, and professional organizations.
The program scheduled for the first two days of
the meeting will include consideration of the politi-
cal, economic, and cultural foundations of peace.
On the third day, June 6, sessions will be held
both in Washington and at the United Nations
headquarters in New York.
The meeting will provide an opportunity for
carrying out in part this Government's responsi-
bilities in connection with article 71 of the United
Nations Charter which establishes a method of
consultation with non-governmental organizations.
According to the interpretation of this article by
the Economic and Social Council, national organ-
izations will normally present their views through
their respective governments. Other meetings will
be held from time to time.
' Bulletin of July 7, 1946, p. 29.
May n, 1947
953
wyyvCervCi'
■'^:ry;;.^-
WM,
Economic Affairs Fag«
Geneva Meeting of the U.N. Preparatory
Committee for the International Confer-
ence on Trade and Employment. Report
From Geneva 932
U.S. Invites Sixty-two Nations to Interna-
tional Statistical Institute 933
U.S. Delegation to Twelfth Congress of
Universal Postal Union 934
Interim Assembly To Organize Radio Tech-
nical Committee for Marine Services . . 935
Sweden Releases Statement on Import Re-
strictions 938
Progress of Swedish Trade Talks 939
Claims for American Property Confiscated
in the Netherlands 939
Facts on Shipments of Grain to France . . . 943
Release of Summary and Recommendations
of the American Economic Mission to
Greece 943
Negotiations Planned for Settlement of
China's War Accounts 948
Fifth Report to Congress on Foreign Surplus
Disposal. Letter of Transmittal of the
Secretary of State 952
United Nations
Proposals for Amendment of the FAO Con-
stitution :
Proposal by the United States :
Acting Secretary Acheson to the Director
General, FAO 925
Text of Amendment 925
Proposal by the United Kingdom .... 927
Proposal by Australia 927
Proposal by FAO Executive Committee. . 928
Current U.N. Documents: Bibliography . . 929
Philip C. Jessup Appointed Representative on
Committee on International Law . . . 953
General Policy
President of Mexico Welcomed Upon Arrival
in U.S. Greeting by President Truman. . 936
Planned Stabilization of Rate of Exchange
Between U.S. and Mexico. Joint State-,
ment by the President of the United
States and the President of Mexico . . . 937
President of Mexico Awarded Legion of
Merit 937
William L. Clayton to Economic Commission
for Europe 939
General Policy — Continued i-ase
U.S. Reiterates Objection to Treatment of
American Correspondent in Spain. Ex-
change of Notes Between American
Chargd d' Affaires at Madrid and Spanish
Foreign Minister 940
Civic Leaders To Discuss Foreign Policy With
U.S. Officials 953
The Council of Foreign Ministers
Moscow Meeting of the Council of Foreign
Ministers, March 10-April 24, 1947.
Address by the Secretary of State . . . 919
Occupation Matters
American Policy Concerning German Monop-
olies. Article by Isaiah Frank .... 913
U.S. Interpretation of Terms of Moscow
Agreement on Korea. Note From Secre-
tary of State to Soviet Minister for
Foreign Affairs 947
Treaty Information
Tax Treaty Negotiations With Mexico . . . 937
Signing of Aviation Agreement With
Argentina 938
Extension of Copyright Agreement With
New Zealand 948
Air-Transport Agreement With Syria. . . . 948
Agreement of Friendship and Commerce
With Nepal:
Signing of Agreement 949
U.S. Note to Prime Minister of Nepal . . 949
Inter-American Copyright Convention Enters
Into Force 953
International Information and Cultural
Affairs
Government and Radio Industries To Dis-
cuss International Broadcasting .... 951
Merchant Marine Academy To Train
Students From Other American Re-
publics 938
Program Schedules for Voice of U.S.A . . . 952
Calendar of International Meetings . . 930
Publications
The Supreme Economic Council of the Allied
and Associated Powers, 1919. Article
by Matilda F. Axton 944
Isaiah Frank, autlior of the article on American policy concerning German
monopolies, is Chief of the Special Areas Section, Indu.'itry Branch, Interna-
tional Resources Division, Office of International Trade Policy, Department of
State.
Matilda F. Axton, author of the article on the Supreme Economic Council
of the Allied and Associated Powers, is Research Associate in the Foreign
Relations Branch of the Division of Historical PoUcy Research, Office of
Public Affairs, Department of State.
U. S. GOVERNMENT PRINTING OFFICE: 1947
iJAe/ ^e^a^ihneni/ /(w t/tai&
Vol, XVI, No. 411
May 18, 1947
REQUIREMENTS OF RECONSTRUCTION • Address
Under Secretary Acheson 991
AMERICAN ECONOMIC AND TECHNICAL AID TO
FOREIGN COUNTRIES SINCE MID-1945 .... 957
THIRD SESSION OF THE INTERIM COMMISSION
OF WHO • Article by H. van Zile Hyde 971
INTERNATIONAL COOPERATION DURING WORLD
SHORTAGE OF LUMBER • ^rt.cte hy FrankWhitehoxuie 974
DEVELOPMENT OF THE ARAB LEAGUE, INCLUDING
TEXTS OF THE ALEXANDRIA PROTOCOL AND
THE PACT OF THE LEAGUE OF ARAB STATES . . 963
For complete contents see back cover
TENOENT OF DOOJlittt^S
JUN 4 1947
^jAe zi^efici/ytment z:^ t/uiCe
bulletin
Vol. XVI, No. 411 • Publication 2828
May 18, 1947
For sale by the Superintendent of Documents
U. S. Government Printing Office
Wasliington 25, D. C.
Subscription;
52 Issues, $5; single copy, 15 cents
Published with the approval ot the
Director of the Bureau ot the Budget
Note: Contents of this publication are not
copyrighted and items contamed herein may
be reprinted. Citation of the Department
OF State Bulletin as the source will be
appreciated.
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 phrases of inter-
national affairs and the functions of
the Department. Information is in-
cluded concerning^ treaties and Jn-
te'rnational agreements to which the
United Slates is or may become a
party and treaties of general inter-
national interest.
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 -
natioruilrelations,arelistedcurrently.
ASPECTS OF AMERICAN ECONOMIC AND TECHNICAL AID
TO FOREIGN COUNTRIES SINCE MID-1945
In peace as well as in war, the United States has lived up
to its responsihility for providing much-needed assistance to
foreign cowntries. Since V-E Day and Y-J Day, American
loans, technical aid, "hard goods''^ distributed through
UNRRA, and the transfer of fixed war installations have ma-
terially contributed to the welfare of the populations of sixty
countries.
American economic and technical aid to foreign
countries since mid-1945 adds up to an impressive
record of concrete achievement. As a result of
American loans, technical services, transfers, set-
tlements, allocations, and surplus-property sales,
many countries on every continent have a greater
share of roads, hospitals, airfields, libraries, ma-
chinery, sanitation, cargo ships, and other tools
of a civilized economy.
Lend-lease aid since V-J Day, having the char-
acter of "pipe line" shipments, i.e. continued ship-
ment of materials for which contracts hacl been
previously signed, amounted to almost two billion
dollars, of which China received 673 million
dollars, France 344 million dollars, the British
Commonwealth 428 million dollars, and the Soviet
Union 198 million dollars.
Loans and credits granted during the fiscal
year which ended June 30, 1946, including Export-
Import Bank loans, credits for the purchase of
surplus property, et cetera, amounted to 2,163
million dollars, of which 119 million dollars was
allotted to the American republics, 100 million
dollars to Belgium, 67 million dollars to China,
1,200 million dollars to France, and 310 million
dollars to the Netherlands.
The value of fixed war installations transferred
to foreign countries and the amounts of "hard
goods" made available through UNRRA have con-
tributed materially to the welfare of the recipient
countries. It is not feasible to present over-all
figures for these types of aid, as the fixed installa-
NoTE : Digest of a study prepared by the Division of
Historical Policy Research, Department of State, at the
suggestion of a member of Congress and in accordance
with his specifications. The study was designed to fur-
nish a general survey, under designated categories, of
certain significant items of American assistance to foreign
countries, rather than a definitive tabulation of such aid.
The study does not include any of the benefits which tlie
United States may have received fi'om foreign countries
in conjunction with such aid as the United States has
extended. Sources used in the preparation of the study
show no direct U. S. aid of significant proportions to the
following countries : Afghanistan, Bulgaria, Eire, Liech-
tenstein, Luxembourg, Jlonaco, Morocco, Muscat, Pales-
tine and Trans-Jordan, Siam, Sweden, Switzerland, the
Union of South Africa, and Yemen.
May 18, 1947
957
tions were in some cases sold at prices nearly re-
flecting actual value and in other cases transferred
either for a small consideration or for no mone-
tary return, and the bases of estimating the value
of "hard goods" vary in different situations.
American Republics
From July 1945 to December 1946, Export-
Import Bank credits totaling over 125 million dol-
lars were made available to governments and enter-
prises in other American republics. Surplus
property costing $14,267,811 was sold to those
republics for $3,796,120. The United States
furnished lend-lease aid totaling 5 million dollars
to the American republics between V-J Day and
June 30, 1946.
Some 16 million dollars has been expended in
cooperative health and sanitation projects benefit-
ing many millions of our southern neighbors.
Cultural and technical cooperation with the other
American republics, including aid to United
States cultural centers, exchange of agricultural
and scientific skills, et cetera, will amount to over
$2,500,000 in tlie fiscal year 1947.
Expenditures for the Inter- American Highway
were approved by the act of December 26, 1941,
which authorized the appropriation of 20 million
dollars for the construction of a road from the
Mexican-Guatemalan border to the Canal Zone,
provided that one third of the cost in each coun-
try would be met by the respective countries. The
total work contemplated on the Inter-American
Highway is said to be slightly more than one half
finished and to require about four years and 65
million dollars for completion.
For cultural and technical cooperation in Ar-
gentina, the United States expended some $42,-
000 in the fiscal year 1946 and will have spent ap-
proximately $62,000 in fiscal 1947. The Export-
Import Bank extended a credit of $193,000 to an
Argentine firm for the purchase of harbor barges
in the United States.
Half a million persons out of a total Bolivian
population of 3,500,000 are estimated to have bene-
fited directly from the United States-Bolivian
cooperative health program. In addition, the
United States expended some $74,000 in fiscal 1946
and will have spent $171,000 in fiscal 1947 on cul-
tural and technical projects in Bolivia.
The Export-Import Bank granted credits total-
ing some 46 million dollars to Brazilian govem-
958
mental and private agencies from July 1945
through December 1946. Brazil also benefited
from cultural and health projects, the transfer of
numerous fixed war installations (including air-
fields and hospitals) , and the sale of surplus prop-
erty at reduced prices.
Expenditures of $125,000 in Chile by the Inter-
departmental Committee on Scientific and Cul-
tural Cooperation in fiscal 1947 (compared with
$70,000 for fiscal 1946) will provide aid to United
States cultural centers and to several new projects.
From July 1945 through December 1946, the Ex-
port-Import Bank granted credits of 42 million
dollars to Chilean agencies.
The United States had contributed $1,805,000
and Colombia $3,436,170 as of September 30, 1946,
to a cooperative health and sanitation program.
Sixty-four health and sanitation centers and proj-
ects were in operation on September 30, 1946. The
program of technical cooperation includes the de-
velopment of rubber production and grants to
various specialists.
Between June 1945 and January 1947, a total
of $1,286,900 was expended for equipment, ma-
terials, and construction on parts of the Inter-
American Highway in Costa Rica. By September
1946, 19 health centers and projects were in oper-
ation and 26 were approaching activation under the
cooperative health and sanitation program.
On May 20, 1946, the United States transferred
to Cuba an air base at San Antonio de los Banos,
one at San Julian, and 13 buildings. On techni-
cal and cultural projects in Cuba, the United
States expended $79,607 in fiscal 1946 and will
have spent about $110,243 in fiscal 1947.
Under the agreements for a cooperative health
program, the United States had contributed
$400,000 and the Dominican Republic $175,000 as
of September 30, 1946. Between July 1, 1944, and
February 21, 1947, 22 Dominicans completed or
continued specialized training in the United
States under grants from the Institute of Inter-
American Affairs.
One third of Eeaador''s population benefited
directly from the cooperative health and sanita-
tion program, according to reliable estimates. The
Export-Import Bank made one million dollars
available to Ecuador to pay for American engi-
neering services. An air base at Salinas and a
military base in the Galapagos were turned over
to Ecuador in 1946.
Deparfmenf of Sfafe Bulletin
Between June 1945 and January 1947, the sum
of $167,500 was expended by the United States for
construction of parts of the Inter- American High-
way in El Salvador. The cooperative health pro-
gram covered 29 health centers and projects com-
pleted and 44 in process of organization as of
September 30, 1946.
The United States expended $232,700 for con-
struction of parts of the Inter- American Highway
in Guatemala between June 1945 and January
1947. Guatemala's contribution to the health and
sanitation program exceeded, as of September 30,
1946, that of the United States : $3,905,444 from
Guatemala and $1,050,000 from the United States.
Development of rubber production and support
of cultural centers are major projects in Haiti of
the Interdepartmental Committee. The United
States contributed $808,000 and Haiti $192,850
toward the cooperative health and sanitation pro-
gram, which covers 33 health projects in opera-
tion on September 30, 1946, and 35 nearing com-
pletion.
Puerto Castilla, a naval base, was returned to
Uondiiras in 1946, and surplus property left there
was sold to Honduras for $56,000. For the health
program, the United States- contributed $800,000
and Honduras $605,400 through September 1946.
For the Inter-American Highway, the United
States has expended $354,500 since mid- 1945.
The Export-Import Bank granted credits total-
ing 37 million dollars to the Government of Mex-
ico and Mexican enterprises from July 1945
through 1946. To the health program the United
States contributed 4 million dollars and Mexico
$2,550,000 through September 1946. Cultural and
technical cooperation will come to over $300,000
in fiscal 1947.
The naval base at Corinto and the Army air
base at Puerto Cabezas were transferred to Nic-
aragua in 1946. Other aid of the United States
includes $405,800 for the Inter-American High-
way, $845,700 for a road across Nicaragua, $800,-
000 for the health program, and (for fiscal 1947)
$101,000 for cultural cooperation.
According to information available in the De-
partment of State, 98 defense sites out of 134 have
been returned to the Republic of Panama. Be-
tween June 1945 and January 1947, the sum of
$13,000 was expended in Panama by the United
States for construction of parts of the Inter-
American Highway.
As of September 30, 1946, the United States had
contributed $1,500,000 and Paraguay $500,000 to
the cooperative health and sanitation program.
Improvements in crops, dairies, et cetera, have
been sponsored by the Institute of Inter- American
Affairs with contributions of $600,000 from the
United States and $275,000 from Paraguay.
It is estimated that at least one million of Peru's
2 million inhabitants benefited directly from the
44 health centers and projects in operation on
September 30, 1946, under the cooperative health
and sanitation program. The United States air
base at Talara was transferred to Peru.
A credit of $666,666 was extended to TJi-uguay
for the purchase of surplus United States prop-
erty. The cooperative health and sanitation pro-
gram benefited one third of Uruguay's population,
according to reliable estimates ; the program cost
the United States $575,000 and Uruguay $252,298.
Expenditures in Venezuela by the Interdepart-
mental Committee on Scientific and Cultural Co-
operation will have doubled in fiscal 1947 as com-
pared with last year, $96,663 as against $48,353.
The chief projects are aid to United States cul-
tural centers and training grants in civil aviation.
A cooperative health program is also in operation.
Europe and the British Commonwealth
Export-Import Bank credits totaling almost 2
billion dollars were made available to European
countries from July 1945 to December 1946. Cer-
tain details respecting these loans, and a state-
ment regarding the British loan agreement of
December 1945, will be found in the appropriate
country paragraphs below.
Some continental European countries received
substantial amoimts of "hard goods" through
UNRRA, while the British Commonwealth was
a source rather than a beneficiary of this type of
aid. Many valuable fixed installations, however,
were transferred to British Commonwealth coun-
tries as well as to Continental countries, in some
cases for a financial consideration far lower than
the original cost.
Credits for the purchase of surplus American
property amounting to approximately three quar-
ters of a billion dollars were made available during
the fiscal year 1946 to countries in this category.
Planned programs of technical and cultural co-
operation, including the exchange of persons and
of cultural resources, will total an estimated $736,-
321 in fiscal 1947.
lAay/ 18, J947
959
The United States share of supplies furnished
to Albania by UNRRA in fiscal 1946 was $13,-
052,284, of which about $500,000 was for (a) in-
dustrial and agricultural equipment and (b) facili-
ties for communication and transportation. Of
the $27,450,000 allotted to Albania by UNRRA in
July 1946, almost 14 million dollars was for agri-
cultural and industrial rehabilitation.
As of June 30, 1946, the United States had trans-
ferred to Australia 178 fixed war installations, in-
cluding 30 airports and 11 seaports. Lend-lease
shipments since V-J Day are estimated at $17,-
500,000 in value. Of the funds received under the
lend-lease settlement, the United States will spend
5 million dollars in Australia for educational pur-
poses.
The Export-Import Bank made 100 million dol-
lars available to Belgium. Lend-lease aid from
V-J Day through September 1946 totaled 68 mil-
lion dollars. Two airports and 39 other installa-
tions were transferred to Belgium through Sep-
tember 24, 1946. Surplus property costing ap-
proximately 380 million dollars was transferred
for a return estimated at 54 million dollars.
The Alaska Highway was turned over to Canada
on April 1, 1946, and is open to American citizens
on equal terms with Canadians.
Of the credit of 50 million dollars extended to
Czechoslovakia for war-surplus property on May
29, 1946, $9,304,694 had been committed up to
September 13, when the remainder was suspended.
A 20-million-dollar credit was extended by the
Export-Import Bank. The UNRRA program for
Czechoslovakia as of January 31, 1947, totaled
$104,622,000 for industrial and agricultural re-
habilitation.
Credits extended to Denmark include 20 million
dollars by the Export-Import Bank and 50 mil-
lion dollars for surplus war property. An unused
portion of the latter credit was suspended. The
United States has contributed to the maintenance
of commercial airfields in Denmark which ai"e
available to American air lines.
Finland received credits of 40 million dollars
from the Export-Import Bank and 15 million dol-
lars for the purchase of surplus property. Civil-
ian relief supplies shipped from fiscal 1942
through fiscal 1946 cost $2,566,180, of which the
American Red Cross furnished three fifths and
UNRRA the remainder ; some $50,625 of the total
went for agricultural supplies and equipment.
960
The United States has extended credits of over
1,750 million dollars to France for reconstruction
purposes, purchase of Liberty ships, and other uses.
Some 468 fixed war installations were transferred
to France for 196 million dollars, and other such
installations have been transferred as they became
surplus.
The loan of 3,750 million dollars to Great Brit-
ain is giving that country a "breathing spell".
The sum of 20 million dollars has been set aside,
from surjDlus-property proceeds, for educational
exchange with Great Britain, under the Fulbright
act. As of June 30, 1946, approximately 800 fixed
installations had been transferred to Great Brit-
ain, in some cases for a small fraction of the orig-
inal cost.
The United States has advanced to UNRRA
about 350 million dollars or about 72 percent of
the total UNRRA program for Greece; approxi-
mately 91 million dollars of this sum is for agri-
cultural machinery and industrial equipment.
Other American aid includes a 25-million-dollar
Export-Import Bank credit; lend-lease aid of
$75,475,720 as of June 30, 1946 ; 90 million dollars
in credits for purchase of 100 ships and of surplus
property ; and the services of an economic mission.
As of June 30, 1946, twenty-seven fixed war in-
stallations costing 65 million dollars had been
transferred to Iceland. Of these, three were air-
fields.
Prior to the beginning of UNRRA aid, the
United States appropriated 140 million dollars
for civilian aid in Italy., which permitted the ship-
ment of 1,800,000 tons of coal and 750,000 tons of
foodstuffs, plus substantial quantities of industrial
materials. Other aid included UNRRA shipments
(begun with an appropriation of 500 million dol-
lars, the United States being the major supplier) ;
Export-Import Bank credits of 125 million dol-
lars; transfer of 117 installations; sale of Liberty
ships ; and crediting of Italy with the dollar equiv-
alent of the Am-lire used to pay American troops.
The Export- Import Bank extended 260 million
dollars in credits to the Netherlands. Lend-lease
shipments to that country from V-J Day through
June 1946 totaled 50 million dollars. A 20-
million-dollar credit was extended for purchase
of surplus property, and the United States dis-
posed of 84 installations in the Netherlands and
possessions.
On July 10, 1946, a credit of $5,500,000 was ex-
Department of State Bulletin
tended to New Zealand for the purchase of surplus
war property. Of the amount to be paid by New
Zealand for this property, a part will be used for
educational exchanges. As of June 30, 1946, the
United States had disposed of 22 installations.
The United States has furnished over $6,500,000
in lend-lease supplies to Norway since V-J Day.
A 50-million-dollar Export-Import Bank credit
was extended in March 1947. The Coast and
Geodetic Survey has aided Norway in special tide
predictions for nine ports.
Credits of 40 million dollars from the Export-
Import Bank and 50 million dollars for the pur-
chase of surplus war property were made avail-
able to Poland. Equipment and materials for
agricultural and industrial rehabilitation were
shipped by UNKRA to the value of almost 140
million dollars thi'ough January 1947.
Portuguese personnel have been trained in
weather-observation techniques and in the oper-
ation of communication equipment by the War
Department and the Civil Aeronautics Adminis-
tration. Fixed installations in the Azores were
transferred to Portugal.
The United States has transferred to Spain., for
half the original cost, certain airstrips, housing,
and weather-reporting facilities constructed in the
Spanish West African colony of Rio de Oro and
used for maintaining air communication with the
European theater of operations.
The "lend-lease pipe line" agreement of October
15, 1945, with the Soviet Union called for the de-
livery of some 250 million dollars in goods, for
which the Soviet Union will pay in 22 annual in-
stalments beginning in 1954. The program of
UNRRA shipments included some 69 million dol-
lars for rehabilitation supplies for the Ukraine
and $23,205,000 for similar goods for Byelorussia.
Supplies for industrial rehabilitation amount-
ing to $109,249,000 and for agricultural rehabili-
tation amounting to $37,188,000 were included in
the United States share of the UNRRA program
for Yugoslavia. Of these amounts 79 percent and
78 percent, respectively, had been delivered as of
January 31, 1947.
Near East and Africa
Export-Import Bank credits of over 30 million
dollars, cultural-cooperation programs costing ap-
proximately $500,000, bulk sales of surplus prop-
erty on terms highly advantageous to the countries
concerned, and other types of aid were rendered
by the United States in the recent period to the
countries of Africa and the Near and Middle East.
More than 18 million dollars in credits was made
available to countries in these regions, during the
fiscal year ending June 30, 1946, for the purchase
of surplus United States war property.
Approximately 10 million dollars' worth of lend-
lease goods was moved into Burma by the United
Kingdom armed forces. The United States cul-
tural program for Burma includes maintenance
of information services at Rangoon.
The bulk-sale agreement of June 15, 1946, with
Egypt provided that a considerable part of the
proceeds received by the United States would be
used for acquisition of official real estate in Egypt
and for cultural exchange. An airport near Cairo
was transferred to Egypt under the agreement.
An Export-Import Bank credit of 3 million dol-
lars and a credit of one million dollars for the
purchase of surplus property were made available
to Ethiopia. Vehicles ($350,000), agricultural
machinery ($400,000), and hospital supplies
($400,000) are included in the UNRRA program
for Ethiopia.
Under the mutual-aid settlement of May 16, 1946,
with India, that country is to retain the first 50
million dollars of the proceeds of the sale of sur-
plus American war property in India plus one half
of the remainder. The United States had trans-
ferred to India 174 fixed installations, including
62 airports, by March 31, 1946.
Lend-lease aid furnished to Iran in fiscal 1946
amounted to $4,803,538. By April 1946, surplus
property costing $72,293,000 had been sold to Iran
for $24,867,000. Sixty-one fixed war installations
in Iran were disposed of by March 31, 1946.
Approximately $41,000 has been spent by the
United States since mid-1945 for educational aid
to Iraq.
The United States has granted $80,000 to the
American University at Beirut, Lebanon, and the
International College at that city, and has made
grants totaling over $10,000 for other educational
projects in Lebanon.
Approximately $19,200,000 in lend-lease funds
has been allotted for construction of a port at
Monrovia, Liberia. The cost is to be repaid from
port revenue. An American economic mission and
a public-health service mission have been operat-
ing in Liberia in the recent period.
Niay 18, 1947
961
Educational aid to Syria included $10,000 for
Damascus College and several thousand dollars
for travel grants and presentation of books.
Credits to Savdi Arabia were granted in the
amounts of 10 million dollars by the Export-Im-
port Bank and 2 million dollars for the purchase
of surplus war property. The United States also
transferred the air base at Dhahran to Saudi
Arabia on March 15, 1946.
Assistance to Turkey since V-E Day has in-
cluded credits of 40 million dollars for general
economic improvement, purchase of surplus prop-
erty, and purchase of ships from the Maritime
Commission ; cultural grants of $60,000 to Robert
College, $15,000 to Women's College at Istanbul,
and others ; and sale to Turkey for $862,000 of air-
fields and other installations costing $1,474,000.
Far East
Outstanding examples of recent American aid
are the extensive assistance rendered to China in
the form of credits, lend-lease materials, and
"hard goods" distributed through UNRRA, and
the special cooperation with the Philippine Re-
public under the Philippine Rehabilitation Act.
Export-Import Bank credits totaling 82.8 mil-
lion dollars have been made available to China
since March 1945. Certain surplus United States
war property was sold to China for a fraction of
its cost. The sum of 620 million dollars is au-
thorized to be appropriated, in various categories,
by the Philippine Rehabilitation Act.
Lend-lease aid supplied to Chhia from Septem-
ber 2, 1945, to the end of 1946 amounted to ap-
proximately 700 million dollars. Surplus military
materials costing about 62 million dollars have
been sold to China for 20 million dollars. The
United States transferred to China fixed installa-
tions valued at 84 million dollars. UNRRA ship-
ments to that country of machinery for industrial
and agi'icultural rehabilitation totaled some $97,-
900,000 through January 1947.
Titles I to III of the Philippine Rehabilitation
Act of April 30, 1946, authorized the appropria-
tion or expenditure of 400 million dollars for pri-
vate war-damage claims ; surplus property costing
originally 100 million dollars; and 120 million dol-
lars for public roads, port facilities, et cetera.
Actual appropriations have been passed for 10
million dollars under title I and $43,918,000 under
title III.
962
Occupied Countries
Loans for the purchase of surplus property
amounting to 45 million dollars have been made
available to Austria, Hungary, and Korea. Sub-
stantial amounts of "hard goods" have been dis-
tributed through UNRRA to Austria and Hun-
gary. Germany, Japan, and Rumania have also
received American economic aid, but no significant
American aid in the categories under considera-
tion appears to have been extended to Bulgaria.
During 1945-47 the War Department spent $51,-
500,000 for civilian supply in Atistria. Credits
were granted of one million dollars by the Export-
Import Bank and 10 million dollars for purchase
of surplus property (but only 2 million dollars'
worth of the articles was found to be suitable for
purchase). UNRRA shipments of agricultural
supplies and equipment amounted to $2,022,801 in
fiscal 1946 and (projected) 20 million dollars for
fiscal 1947.
From August 1945 through December 1946, the
United States imported into Germany some 352
million dollars' worth of food, fuels, medical sup-
plies, and raw cotton. It was announced on Feb-
ruary 11, 1947, that the largest sale of American
surplus property in Europe was under way in the
United States zone of Germany.
Credits of 30 million dollars were extended to
Hungary for the purchase of American surplus
war property. The United States has returned to
Hungary a sizable quantity of gold which had been
removed from Hungary by the Germans. As of
January 31, 1947, industrial-rehabilitation mate-
rial amounting to $250,000 had been shipped to
Hungary.
An appropriation of 186 million dollars for
Japan for the fiscal year 1947 has been spent
primarily for foodstuffs, agricultural supplies,
medical supplies, civilian pay, and commercial
ocean-transportation costs.
The 1947 War Department appropriation for
South Korea was a little over 70 million dollars.
A credit of 25 million dollars was granted to the
military government for the purchase of Army
surplus property. UNRRA allocations for South
Korea have been limited to 500 million dollars.
As requested by President Truman on February
17, 1947, the American Red Cross appropriated
$3,500,000 to finance and supervise distribution
of relief supplies in Rumania.
Department of Slate Bulletin
DEVELOPMENT OF THE ARAB LEAGUE
The o.ctive role icing taken by metnber states of the Arab
League in the United Nations lerids increased importance to
an understanding of the ^mderlying forces which led to th^
creation of the Arab League and of the actual functions of
the League as envisaged by its founders.
Following the Arab conquests of the seventh
century, the Arab lands of the Near East achieved
a notable degi-ee of cultural uniformity whose
roots lay in the common language, Arabic, and
religion, Islam, of the region. On this basis was
established a strong feeling of solidarity among
the Arab and Arabized peoples, but at that time, as
in the Western World, primary allegiance was
accorded the head of the religious state.
A movement toward lay nationalism in the west-
ern sense began to develop in the nineteenth cen-
tury. It first manifested itself in secret societies
which worked to revive Arab culture and to spread
knowledge of the Arab heritage among the people
of the Arab lands. Under the continued oppres-
sion of the Ottoman Empire, this newly awakened
Arab nationalism turned to political activity de-
signed to free the Arabs from Turkish domination ;
in the Arab revolt during World War I many
leaders were drawn from the ranks of these secret
societies.
The political division of the area after the first
World War only stimulated the ideal of Arab co-
operation. Although each of the newly created
states was faced with the primai-y concern of win-
ning its own independence, many nationalists and
political parties at the same time desired to see an
increase in the degree of unity and close coopera-
tion between the Arab countries. During World
War II the unification of the Arab lands under
Allied command gave further impetus to the advo-
cates of Arab unity. From political parties and
individual nationalists the movement spread into
official and government circles.
The favorable attitude of Great Britain was
illustrated on May 29, 1941, when the British Sec-
retai-y of State for Foreign Affairs, Anthony Eden,
said:
"It seems to me both natural and right that the
cultural and economic ties between the Arab coun-
tries and the political ties, too, should be strength-
ened. His Majesty's Government for their part
will give their full support to any scheme that
commands general approval."
In 1942, Nuri Pasha al-Sa'id, the Prime Minister
of Iraq, submitted to Arab leaders and to British
authorities a plan for "Arab independence and
unity" in the form of a "Blue Book". His plan
entailed the reuniting of fragmented pre-war
Syria to be joined in a union with Iraq to which
the other Arab states might voluntarily adhere and
which would deal with the common problems of
the Arab countries. However, Nuri Pasha's plan
did not represent a solution acceptable to all the
Arab states, and discussions to discover a better
means continued in Arab circles.
In the meantime, on February 24, 1943, Mr.
Eden, speaking in Parliament, again expressed the
views of the Churchill government :
"As they have already made plain, His Maj-
esty's Government would view with sympathy any
movement among Arabs to promote their economic,
cultural, or political unity. But clearly the initia-
tive in any scheme would have to come from the
Arabs themselves, and so far as I am aware no such
scheme, which would command general approval,
has yet been worked out."
On March 30, 1943, the Egyptian Senate was in-
formed that Prime Minister Mustafa al-Nahhas
Pasha, long interested in tiie Arab unity move-
ment, had decided, following Mr. Eden's state-
ment, to contact the various Arab governments
separately in order to ascertain their views on
Arab union. If these views proved to be suf-
ficiently compatible to permit further discussion,
May 78, 1947
74283T— 47—
963
THE ARAB LEAGUE
' ^^^..j^ I \ |u.S.S.R.
r4 TURKEY ^ U'^ '^^^
^r- EGYPT
I S U D
Scale 1:30,000,000
Department of State, Map Division
10709 May 1947
G. P.O. -Department of State Service Office
a preliminary meeting of representatives of all
Arab states would be called in Cairo. Should that
be successful, a general congress would be con-
vened to decide the extent and form of Arab co-
operation.
From July 31 to August 6, 1943, therefore,
Nahhas and Nuri conferred in Alexandria, Egypt,
and despite the differences in the plans of the two
leaders, agreement on general principles was
reached.
Further discussions were then launched with
964
t)ther Arab leaders in order to resolve any existing
difficulties. From August 28 to September 1, 1943,
conferences in Alexandria between Nahhas and the
Prime Minister of Trans-Jordan. Tawfiq Abu
al-Huda, resulted in agreement by Amir "Ab-
dallah" of Trans-Jordan to an over-all Arab union
instead of a monarchical Greater Syria under his
rule.
The initial hesitation of King Ibn Saud to
commit his country to a plan whose aims were not
yet clarified was partly overcome by the efforts of
Deparfmen^ of Sfafe ^vWeWn
an Egyptian envoy to Riyadh in mid-September
194;5, and by discussions between Nahhas and
Saudi Arabian representative Yusuf Yasin in
Alexandria and Cairo from October 11 to Novem-
ber 2, 1943.
Talks were held between Egyptian officials and
Syrian Prime Minister Sa'dallah al-Jabri and
Foreign Minister Jamil Mardam in Alexandria
and Cairo between October 26 and November 3,
1943. The Syrian response was enthusiastic and,
because of the friendly relations between Syria
and Saudi Arabia, served to increase the interest of
Ibn Saud in Arab union affairs.
Discussions witli Lebanon were postponed un-
til January 9 to 13, 1944, because of the November
1943 crisis between the Lebanese Government and
the French mandatory authorities. However,
since the incident resulted in a greater degi-ee
of independence for Lebanon, that country ac-
quired thereby a more decisive voice in the Arab
union discussions.
Following an exchange of Saudi- Yemen views,
discussions between Egyptian and Yemeni officials
were held in Egypt from February 6 to 9, 1944.
Additional visits were also exchanged between
leaders of the various Arab states during the first
quarter of 1944.
On July 4, 1944, the Egyptian Government is-
sued invitations to the Governments of Iraq,
Trans-Jordan, Lebanon, Syria, Saudi Arabia, and
the Yemen to meet in Alexandria in the beginning
of August. A postponement became necessary,
however, and the meeting was therefore called
for September 25.
Meanwhile from August 12 to 19, 1944, a congress
of Arab lawyers was held in Damascus at which
all the Arab states with the exception of Saudi
Arabia and the Yemen were represented. The
congress drew up a seven-point program for a
unification of the legal systems of the Arab coun-
tries. Thus, prominent members of the legal pro-
fession, holding key positions in the political sys-
tems of their respective countries, indicated their
readiness for an Arab union.
On the scheduled date in September, the Arab
delegates met in Alexandria, the customary seat of
the Egyptian Government during the summer
months. Egypt's official delegation was headed by
Prime Minister Mustafa al-Nahhas; Iraq's, by
Prime Minister Hamdi al-Pachachi (Nuri al-Sa'id,
who at that time held no ministerial position, was
May 78, 1947
a member of the delegation) ; Trans- Jordan's, by
Prime Minister Tawfiq Abu al-Huda ; Syria's, by
Prime Minister Sa'dallah al-Jabri ; and Lebanon's,
by Prime Minister Riyad al-Sulh. Ibn Saud had
reserved his decision, and it was not before the
third session, held on October 1, 1944, that Yusuf
Yasin took his place at the conference table as the
Saudi delegate. The Yemen's representative,
Husayn al-Kibsi, was admitted as an "observer"
until the last meeting, when the Imam's confirma-
tion of Kibsi's status as a delegate was received.
Palestine was represented by an unofficial delegate,
Musa al-'Alami, a well-known Palestinian nation-
alist, who had been chosen by the various Arab
parties in Palestine.
The meeting lasted for two weeks and was pre-
sented with a wide range of problems for discus-
sion. The last session, on October 7, 1944, was de-
voted to the preparation of a communique, pub-
lishing the so-called Alexandria protocol, which
summarized the achievements of the conference.
The document, indicating a considerable measure
of agreement among the delegates of the Arab
countries, was at once signed by all of the latter,
except the representatives of Saudi Arabia and the
Yemen who did not have the authority to do so.
Those countries later signed the protocol — Saudi
Arabia on January 7, 1945, and the Yemen on Feb-
ruary 4, 1945. The most promising features of the
protocol were its moderation and flexibility.
A meeting of the Foreign Ministers of the Arab
states had been scheduled to convene in Cairo in
January 1945 for the purpose of drafting the
constitution of the Arab League. Again a post-
ponement proved necessary, and the meeting took
place in Cairo from February 15 to March 3, 1945.
Palestine was represented, but no delegate from
the Yemen appeared. Changes had occurred in
nearly all of the governments represented, and it
was an indication of the strength of the feeling
of Arab solidarity that the newly appointed offi-
cials could continue the work of their predecessoi-s
without any perceptible interruption. The meet-
ing was successful in disposing of several of the
problems before it, and a full meeting of the dele-
gates of all Arab countries was convoked in Cairo
on March 17, 1945. At its close, on March 22,
1945, the pact of the League of Arab States was
promulgated; this date marks the birth of the
Ai"ab League.
British approval of the new organization was
965
indicated by the Minister of State, Richard Law,
who said in Parliament on May 9, 1945 :
"His Majesty's Government have welcomed the
successful fonnation of the League of the Arab
States. They will await with sympathy and in-
terest the results of the detailed conversations
which are now to be begun for reducing the var-
ious barriers which divide the Arab peoples and
for promoting cooperation between them. They
hope that these discussions will yield useful and
practical results."
Under article 20, the pact was to come into
force 15 days after the Secretariat-General of the
Council of the League had received the instru-
ment of ratification from four member states. By
April 25, 1945, Saudi Arabia, Egypt, Trans-
Jordan, and Iraq had deposited their ratifications,
and the League came legally into existence on May
10, 1945.
TEXT OF THE ALEXANDRIA PROTOCOL'
The undersigned, chiefs and members of Arab delega-
tions at the Preliminary Committee of the General Arab
Conference, viz ;
The President of the Preliminary Committee
H.B. Mustafa al-Nahhas Pasha, Egyptian Prime Minister
and Minister of Foreign Affairs ; head of the Egyptian
delegation ;
Syrian Delegation
H.E. Sa'dallah al-Jabiri, Syrian Prime Minister and head
of the Syrian delegation ;
H.E. Jamil Mardam Bey, Minister of Foreign Affairs;
H.E. Dr. Nagib al-Armanazi, Secretary General of the
Presidency of the Syrian Republic ;
H.E. M. Sabri al-'Asali, deputy of Damascus;
Trans-Jordanian Delegation
H.E. Tawfiq Abu al-Huda Pasha, Tran.s-Jordanian Prime
Minister and Minister of Foreign Affairs, head of the
Trans-Jordanian delegation ;
H.B. Sulaynian al-Sukkar Bey, Financial Secretary of the
Ministry of Foreign Affairs ;
Iraqi Delegation
H.B. Hamdl al-Bahjaji, Iraqi Prime Minister and head
of the Iraqi delegation ;
H.E. Arshad al-'Umari, Minister of Foreign Affairs;
H.E, Nuri al-Sa'id, former Iraqi Prime Minister ;
H.E. Tahsin al-'Asliari, Iraqi Minister Plenipotentiary in
Egypt ;
Lebanese Delegation
H.E. Riyad al-Sulh Bey, Lebanese Prime Minister and
head of the Lebanese delegation ;
H.E. Salim Taqla Bey, Minister of Foreign Affairs;
H.E. Musa Mubarak, Chief of the Presidential Cabinet;
Egyptian Delegation
H.E. Nagib al-Hilall Pasha, Minister of Education ;
H.E. Muhammad Sabri Aub-'Alam Pasha, Minister of
Justice ;
H.E. Muhammad Salah-al-din Bey, Under Secretary of
State of the Ministry of Foreign Affairs,
• Translation of the official communique of the Pan-Arab
Preliminary Conference made by the American Legation,
Cairo ; and collated with the Arabic text publi.shed in
aUAhram (Cairo), Oct. 8, 1944, p. 3.
966
Anxious to strengthen and consolidate tlie ties which
bind all Arab countries and to direct them toward the wel-
fare of the Arab world, to improve its conditions, insure
its future, and realize its hopes and aspirations.
And in response to Arab public opinion in all Arab
countries.
Have met at Alexandria from Shawwal 8, 1363 (Septem-
ber 2.5, 1944) to Shawwal 20, 1863 (October 7, 1944) in the
form of a Preliminary Committee of the General Arab
Conference, and have agreed as follows:
1. League of Arab States
A League will be formed of the independent Arab States
which consent to join the League. It will have a council
which will be known as the "Council of the League of
Arab States" in which all participating states will be repre-
sented on an equal footing.
The object of the League will be to control the execution
of the agreements which the above states will conclude ;
to hold periodic meetings which will strengthen the rela-
tions betvFeen those states ; to coordinate their political
plans so as to insure their cooperation, and protect their
independence and sovereignty against every aggression by
suitable means ; and to supervise in a general way the
affairs and interests of the Arab countries.
The decisions of the Council will be binding on those who
have accepted them except in cases where a disagreement
arises between two member states of the League in which
the two parties shall refer their dispute to the Council for
solution. In this case the decision of the Council of the
League will be binding.
In no case will resort to force to settle a dispute between
any two member states of the League be allowed. But
every state shall be free to conclude with any other
member state of the League, or other powers, special
agreements which do not contradict the text or spirit of
the present dispositions.
In no case will the adoption of a foreign policy which
may be prejudicial to the policy of the League or an in-
dividual member state be allowed.
The Council will intervene in every dispute which may
lead to war between a member state of the League and
any other member state or power, so as to reconcile them.
A subcommittee will be formed of the members of the
Preliminary Committee to prepare a draft of the statutes
of the Council of the League and to examine the political
Department of State Bulletin
questions which may be the object of agreement among
Arab States.
2. Cooperation in Economic, Cultural, Social, and
Other Matters
A. The Arab States represented on the Preliminary
Committee shall closely cooperate In the following mat-
ters:
(1) Economic aud financial matters, i.e., commercial
exchanse, customs, currency, agriculture, and industry.
(2) Communications, i.e., railways, roads, aviation,
navigation, posts and telegraphs.
(3) Cultural matters.
(4) Questions of nationality, passports, visas, execu-
tion of judgments, extradition of criminals, etc.
(.5) Social questions.
(6) Questions of public health.
B. A subcommittee of experts for each of the above
subjects will be formed in which the states which have
participated in the Preliminary Committee will be repre-
sented. This subcommittee will prepare draft regulations
for cooperation in the above matters, describing the ex-
tent and means of that collaboration.
C. A committee for coordination and editing will be
formed whose object will be to control the work of the
other subcommittees, to coordinate that part of the work
which is accomplished, and to prepare drafts of agree-
ments which will be submitted to the various govern-
ments.
D. When all the subcommittees have accomplished their
work the Preliminary Committee will meet to examine
the work of the subcommittees as a preliminary step to-
ward the holding of the General Arab Conference.
3. Consolidation of These Ties in the Future
While expressing its satisfaction at such a happy step,
the Committee hopes that Arab States will be able in the
future to consolidate that step by other steps, especially
if post-war world events should result in institutions
which will bind various Powers more closely together.
4. A Special Resolution Concerning Lebanon
The Arab States represented on the Preliminary Com-
mittee emphasize their respect of the independence and
sovereignty of Lebanon in its present frontiers, which
the governments of the above Sitates have already recog-
nized in consequence of Lebanon's adoption of an inde-
pendent policy, which the Government of that country
announced in its program of October 7, 1943, unanimously
approved by the Lebanese Chamber of Deputies.
5. A Special Resolution Concerning Palestine
A. The Committee is of the opinion that Palestine con-
stitutes an important part of the Arab World and that
the rights of the Arabs in Palestine cannot be touched
without prejudice to peace and stability in the Arab
World.
The Committee also is of the opinion that the pledges
binding tlie British Government and providing for the
cessation of Jewish immigration, the preservation of Arab
lands, and the achievement of independence for Palestine
are permanent Arab rights whose prompt implementation
would constitute a step toward the desired goal and to-
ward the stabilization of peace and security.
The Committee declares its support of the cause of the
Arabs of Palestine and its willingness to work for the
achievement of their legitimate aims and the safeguarding
of their just rights.
The Committee also declares that it is second to none
in regretting the woes which have been inflicted upon the
Jews of Europe by European dictatorial states. But the
question of these Jews should not be confused with Zion-
ism, for there can be no greater injustice and aggression
than solving the problem of the Jews of Europe by
another injustice, i.e., by inflicting injustice on the
Arabs of Palestine of various religions and denominations.
B. The special proposal concerning the participation
of the Arab Governments and peoples in the "Arab Na-
tional Fund" to safeguard the lands of the Arabs of
Palestine shall be referred to the committee of financial
and economic affairs to examine it from all its angles
and to submit the result of that examination to the Pre-
liminary Committee in its next meeting.
In faith of which this protocol has been signed at
Faruq I University at Alexandria on Saturday, Shawwtil
20, 1363 (October?, 1944).
TEXT OF THE PACT OF THE LEAGUE OF ARAB STATES ^
His Excellency the President of the Syrian Republic ; '
His Royal Highness the Amir of Trans-Jordan ;
His Majesty the King of Iraq ;
His Majesty the King of Saudi Arabia ;
His Excellency the President of the Lebanese Republic;
His Majesty the King of Egypt ;
His Majesty the King of the 'Semen ;
Desirous of strengthening the close relations and nu-
merous ties which link the Arab States;
And anxious to support and stabilize these ties upon a
basis of respect for the independence and sovereignty of
May 18, 1947
these states, and to direct their efforts toward the com-
mon good of all the Arab countries, the improvement of
their status, the security of their future, the realization
of their aspirations and hopes ;
And responding to the wishes of Arab public opinion in
all Arab lands ;
Have agreed to conclude a Pact to that end and have
'Translation of the Arabic text which appeared in
al-Ahram (Cairo), Mar. 23, 1945.
' The listing follows the order of the Arabic alphabet.
967
appoiuted as their represeutatives the persons whose
names are listed hereinafter:
The President of the Syrian Republic; who has ap-
pointed as representatives for Syria : His Excellency Faris
al-Khuri, Prime Minister ; His Excellency Jamil Mardam
Bey, Minister of Foreign Aitairs ;
His Royal Highness the Amir of Trans-Jordan ; who
has appointed as representatives for Trans-Jordan: His
Excellency Samir al-Rafa'i Pasha, Prime Minister; His
Excellency Sa'id al-Mufti Pasha, Minister of the Interior ;
Sulayman al-Nabulusi Bey, Secretary of the Cabinet;
His Majesty the King of Iraq ; who has appointed as
representatives for Iraq : His Excellency Arshad
al-'Umari, Minister of Foreign Affairs ; His Excellency 'Ali
Jawdat al-Ayyubi, Minister Plenipotentiary of Iraq in
Washington ; His Excellency Tahsin al-'Askari, Minister
Plenipotentiai-y of Iraq in Cairo ;
His Majesty the King of Saudi Arabia ; who has ap-
pointed as representatives for Saudi Arabia : His Excel-
lency the Sheikh Yusuf Yasin, Assistant Minister of For-
eign Affairs ; His Excellency Khayr-al-din al-Zirikli,
Councillor of the Saudi Arabian Legation in Cairo ;
His Excellency the President of the Lebanese Republic ;
who has appointed as representatives for Lebanon : His
Excellency 'Abd-al-Hamid Karami, Prime Minister; His
Excellency Yusuf Salim, Minister Plenipotentiary of
Lebanon in Cairo ;
His Majesty the King of Egypt ; who has appointed as
representatives for Egypt: His Excellency Mahmud Fahnii
al-Nuqrashi Pasha, Prime Minister ; His Excellency Mu-
hammad Husayn Haykal Pasha, President of the Senate;
His Excellency 'Abd-al-Hamid Badawi Pasha, Minister of
Foreign Affairs ; His Excellency Makram 'Ubayd Pasha,
Minister of Finance; His Excellency Muhammad Hafiz
Ramadan Pasha, Minister of Justice ; His Excellency
'Abd-al-Razzaq Ahmad al-Sanhuri Bey, Minister of Edu-
cation ; Abd-al-Rahman 'Azzam Bey, Minister Plenipoten-
tiary in the Ministry of Foreign Affairs;
His Majesty the King of the Yemen ; [who] has appointed
as representatives for the Yemen: *;
who, after having exchanged their plenary powers which
were found to be in good and due form, have agreed upon
the following provisions :
Article 1
The League of Arab States ° is composed of the inde-
pendent Arab States which have signed this Pact.
Any independent Arab State has the right to become a
member of the League. If it desires to do .so, it shall sub-
mit a reiiuest which will be deposited with tlie Permanent
Secretariat General and submitted to the Council at the
first meeting held after submission of the request.
* Left blank, evidently to be flUed in when the Yemeni
delegation has been made official. His Excellency al-
Sayyid Husayn al-Kibsi was .subsequently appointed repre-
sentative of the Yemen.
'Arabic: Jami'at al-dinval al-'AraMyi/ah.
' Arabic : Majlis.
'Arabic : Lajniih.
966
Article 2
The League has as its purpose the strengthening of the
relations between the member states; the coordination of
their policies in order to achieve cooperation between
them and to safeguard their independence and sovereignty ;
and a general concern with the affairs and interests of the
Arab countries. It has also as its purpose the close co-
operation of the member states, with due regard to the
organization and circumstances of each state, on the fol-
lowing matters :
A. Economic and financial affairs, including commer-
cial relations, customs, currency, and questions of agri-
culture and industry.
B. Communications ; this includes railroads, roads,
aviation, navigation, telegraphs, and posts.
C. Cultural affairs.
D. Nationality, passports, visas, execution of judgments,
and extradition of criminals.
E. Social affairs.
F. Health problems.
Article 3
The League shall possess a Council * composed of the
representatives of the member states of the League ; each
state shall have a single vote, irrespective of the num-
ber of its representatives.
It shall be the task of the Council to achieve the realiza-
tion of the objectives of the League and to supervise the
execution of agreements which the member states have
concluded on the questions enumerated in the preceding
article, or on any other questions.
It likewise shall be the Council's task to decide upon
the means by which the League is to cooperate with the
international bodies to be created in the future in order
to guarantee security and peace and regulate economic
and social relations.
Article 4
For each of the questions listed in Article 2 there shall
be set up a special committee ' in which the member states
of the League shall be represented. These committees
shall be charged with the task of laying down the prin-
ciples and extent of cooperation. Such principles shall
be formulated as draft agreements, to be presented to the
Council for examination preparatory to their submission
to the aforesaid states.
Representatives of the other Arab countries may take
part in the work of the aforesaid committees. The
Council shall determine the conditions under which these
representatives may be permitted to participate and the
rules governing such representation.
Article 5
Any resort to force in order to resolve disputes arising
between two or more member states of the League is pro-
hibited. If there should arise among them a difference
which does not concern a state's independence, sover-
eignty, or territorial integrity, and if tlie parties to the
dispute have recourse to the Council for the settlement
of this difference, the decision of the Council shall then be
enforceable and obligatory.
Deparfment of State Bulletin
In sucli a case, the states between wliom tlie difference
has arisen shall not participate in the deliberations and
decisions of the Council.
The Council shall mediate in all differences which
threaten to lead to war between two member states, or
a member state and a third state, with a view to bringing
about their reconciliation.
Decisions of arbitration and mediation shall be taken
by majority vote.
Article 6
In case of aggression or threat of aggression by one state
against a member state, the state which has been attacked
or threatened with aggression may demand the immediate
convocation of the Council. *■
The Council shall by unanimous decision determine the
measures necessary to repulse the aggression. If the ag-
gressor is a member state, his vote shall not be counted
in determining unanimity.
If, as a result of the attack, the government of the state
attacked finds itself unable to couimimicate with the Coun-
cil, that state's representative in the Council shall have
the right to request the convocation of the Council for
the purpose indicated in the foregoing paragraph. In the
event that this representative is unable to communicate
with the Council, any member state of the League shall
have the right to request the convocation of the Council.
Article 7
Unanimous decisions of the Council shall be binding
uiwn all member states of the League ; majority decisions
shall be binding only upon those states which have ac-
cepted them.
In either case the decisions of the Council shall be en-
forced in each member state according to its respective
basic laws.*
Article 8
Each member state shall respect the systems of govern-
ment established in the otlier member states and regard
them as exclusive concerns of those states. Each shall
pledge to abstain from any action calculated to change
established systems of government.
Article 9
States of the League which desire to establish closer
cooperation and stronger bonds than are provided by this
Pact may conclude agreements to that end.
Treaties and agreements already concluded or to be
concluded in the future between a member state and an-
other State shall not be binding or restrictive upon other
members.
Article 10
The permanent seat of the League of Arab States is
established in Cairo. The Council may, however, assemble
at any other place it may designate.
Article 11
The Council of the League shall convene in ordinary
session twice a year, in March and in October. It shall
convene in extraordinary session upon the request of two
member states of the League whenever the need arises.
Article 12
The League shall have a permanent Secretariat Gen-
eral " which shall consist of a Secretary General,'" As-
sistant Secretaries, and an appropriate number of officials.
The Council of the League shall appoint the Secretary
General by a majority of two-thirds of the states of the
League. The Secretary General, with the approval of the
Council shall appoint the Assistant Secretaries and the
principal officials of the League.
The Council of the League shall establish an adminis-
trative regulation " for the functions of the Secretariat
General and matters relating to the Stalf.
The Secretary General shall have the rank of Am-
bassador and the Assistant Secretaries that of Ministers
Plenipotentiary.
The first Secretary General of the League is named in
an Annex to this Pact.
Article 13
The Secretary General shall prepare the draft of the
budget of the League and shall submit it to the Council
for approval before tlie beginning of each fiscal year.
The Council shall fix the share of the expenses to be
borne by each state of the League. This share may be
reconsidered if necessary.
Article l.'f
The members of the Council of the League as well as
the members of the committees and the officials who are
to be designated in the administrative regulation shall
enjoy diplomatic privileges and immunity when engaged
in the exercise of their functions.
The buildings occupied by the organs of the League
shall be inviolable.
Article 15
The first meeting of the Council shall be convened at
the invitation of the head of the Egyptian Government.
Thereafter it shall be convened at the invitation of the
Secretary General.
The representatives of the member states of the League
shall alternately assume the presidency of the Council
at each of its ordinary sessions.
Article 16
Except in cases specifically indicated in this Pact, a
majority vote of the Council shall be suflieient to make
enforceable decisions on the following matters :
A. Matters relating to personnel.
B. Adoption of the budget of the League.
C. Establishment of the administrative regulations for
tlie Council, the committees, and the Secretariat General.
D. Decisions to adjourn the sessions.
"Arabic: al-nuzum al-asasiyyah.
"Arabic: Amanah 'ammah.
'"Arabic: al-amin al-'amm.
"Arabic: nizam ddkhi'i.
May 18, 1947
969
Article n
Each member state of the League shall deposit with the
Secretariat General one copy of every treaty or agree-
ment concluded or to be concluded in the future between
Itself and another member state of the League or a third
state.
Article 18
If a member state contemplates withdrawal from the
League, it shall inform the Council of its intention one
year before sucli withdrawal is to go into effect.
The Council of the League may consider any state which
fails to fulfill its obligations under this Pact as having
become separated from the League, this to go into effect
upon a unanimous decision of the states, not counting the
state concerned.
Article 19
This Pact may be amended with the consent of two-
thirds of the states belonging to the League, especially
in order to make firmer and stronger the ties between
the member states, to create an Arab Tribunal of Arbitra-
tion, and to regulate the relations of the League with any
international bodies to be created in the future to guaran-
tee security and peace.
Final action on an amendment cannot be taken prior
to the session following the session in which the motion
was initiated.
If a state does not accept such an amendment it may
withdraw at such time as the amendment goes into effect,
without being bound by the provisions of the preceding
article.
Article 20
Tliis Pact and its Annexes shall be ratified according to
the basic laws in force among the High Contracting Par-
ties.
The instruments of ratification shall be deposited with
the Secretariat General of the Council and the Pact shall
become operative as regards each ratifying state fifteen
days after the Secretary General has received tlie in-
struments of ratification from four states.
This Pact has been drawn up in Cairo in the Arabic
language on this 8th day of Rabi' II, thirteen hundred
and sixty-four (March 22, 1945), in one copy which shall
be deposited in the safe keeping of the Secretariat
General.
An Identical copy shall be delivered to each state of the
League.
[Here follow the signatures.]
" Referring to Palestine. The phraseology of the Arabic
text is ambiguous, perhaps intentionally ; but the con-
text would seem to bear out this interpretation.
" Arabic : mustaqillah l)inafsih<i, which could also be ren-
dered "independent in itself".
CI) Annex Regarding Palestine
Since the termination of the last great war the rule of
the Ottoman Empire over the Arab countries, among
them Palestine, which had become detached from that
Empire, has come to an end. She " has come to be autono-
mous," not subordinate to any otlier state.
The Treaty of Lausanne proclaimed that her future
was to be settled by the parties concerned.
However, even though she was as yet unable to control
her own affairs, the Covenant of the League [of Nations]
in 1919 made provision for a regime based upon recogni-
tion of her Independence.
Her international existence and independence in the
legal sense cannot, therefore, be questioned, any more
than could be the independence of the other Arab coun-
tries.
Although the outward manifestations of this independ-
ence have remained obscured for reasons beyond her con-
trol, this should not be allowed to interfere with her par-
ticipation in the work of the Council of the League.
The nations signatory to the Pact of the Arab League
are therefore of the opinion that, considering the special
circumstances of Palestine, and until that country can
effectively exercise its independence, the Council of the
League should take charge of the selection of an Arab
representative from Palestine to take part in its work.
(2) Annex Regarding Cooperation With Countries
Which Are Not Members of the Council of the
League
Whereas the member states of the League will have
to deal in the Council as well as in the committees with
matters which will benefit and affect the Arab world at
large ;
And whereas the Council has to take into account the
aspirations of the Arab countries which are not members
of the Council and has to work toward their realization;
Now therefore, it particularly behooves the states sig-
natory to the Pact of the Arab League to enjoin the
Council of the League, when considering the admission
of those countries to participation in the committees
referred to in the Pact, that it should do its utmost to
cooperate with them ; and furthermore, that it should
spare no effort to learn their needs and understand their
aspirations and hopes ; and that it should work thence-
forth for their best interests and the safeguarding of
their future with all the political means at its disposal.
(3) Annex Regarding the Appointment of a Secre-
tary General of the League
The states signatory to this Pact have agreed to ap-
point His Excellency Abd-al-Rahman 'Azzam Bey to be
Secretary General of the League of Arab States.
This appointment is made for two years. The Council
of the League shall hereafter determine the new regula-
tions for the Secretariat General.
970
Deparfment of State Bulletin
THIRD SESSION OF THE INTERIM COMMISSION OF THE
WORLD HEALTH ORGANIZATION
by H. van Zile Hyde
The Interim Commission of the World Health Organiza-
tion has focused attention upon malaria, tuberculosis, and
venereal disease as the world health problems demanding first
attention. It is giving particular consideration, as well, to
planning a WHO attach upon the excessive death rate among
infants in large sections of the worWs population and to
preparation for appropriate WHO action in the event of an
influenza pandemic.
The third session of the Interim Commission of
the World Health Organization (WHO) was held
at Geneva, March SO-April 12, 1947.
At this session the Commission, for purposes of
planning the work of WHO, assigned priority to
various world health problems. In considering
the relationship of WHO to the United Nations, as
well as to specialized agencies and nongovern-
mental health agencies, it established subcom-
mittees of its Committee on Relations to under-
take negotiations with certain of these organiza-
tions. The 1947 budget was revised in the light of
the Commission's experience since the Interna-
tional Health Conference. Further, a tentative
budget estimate amounting to $4,800,000 for the
year 1948 was approved for submission to the Gen-
eral Assembly of the United Nations as the best
available guide to the probable cost of the World
Health Organization during that year.
Representatives of 16 of the 18 member states
attended the session, Liberia and the Ukraine
being absent. Dr. S. A. Kolesnikov represented
the Union of Soviet Socialist Republics in place
May 18, 1947
of Dr. Fedor G. Krotkov, who was prevented by
illness from attending. The United States was
represented by Dr. H. van Zile Hyde, Alternate
Representative on the Commission, and L. Wen-
dell Hayes and Samuel T. Parelman of the De-
partment of State, as advisers.
In view of the many health problems existing
throughout the world, the Commission recognized
that it must focus attention upon those of first
importance, in the solution of which tangible re-
sults might be expected. Consequently it was de-
termined that top priority should be given to
malaria, tuberculosis, and venereal disease; each
of these presents a problem of first magnitude on
a wide geogi-aphic basis. The war has had serious
detrimental effects in regard to each and has con-
tributed new knowledge and techniques to their
control. The priority assigned to these problems
permits the employment, by the executive secre-
tary, of a specialist in each field and the appoint-
ment of expert committees to develop specific pro-
gram proposals for consideration by the First
World Health Assembly.
971
A similar priority was assigned to the problems
of influenza and of infant mortality. In the case
of influenza it was considered to be an urgent mat-
ter for WHO or its Interim Commission, in the
event of a pandemic, to be prepared to make imme-
diate recommendations concerning the value of
widespread immunization and concerning action to
be taken by national health services. The execu-
tive secretai-y was requested to consult with the
Congress of Microbiologists meeting at Copen-
hagen on July 20 concerning the eifectiveness of
new influenza vaccines. With regard to infant
mortality the Commission recognized that great
progress in the reduction of infant death rates had
been made in certain countries, whereas infant mor-
tality continued at a distressingly high rate in
many others. It was hoped that some practical
means could be found of assisting these latter coun-
tries in applying the principles and practices effec-
tive elsewhere. The Representative of the Union
of Soviet Socialist Republics stressed the effective
manner in which has country had reduced its
infant mortality and expressed the wish of his
country to make available to others the knowledge
and experience that it had gained in this matter.
The Commission expected that, by concentrating
its energy in these specific fields, a practical pro-
gram could be presented to the First World Health
Assembly for its consideration as the basis for the
first year's work of WHO. Certain other matters
were referred for further examination to the sec-
retariat or to governments. After such examina-
tion these matters will come before the Commis-
sion for reconsideration, including methods where-
by AVHO can most effectively strengthen national
health services ; facilities for the training of pub-
lic-health personnel; study of the world insulin
supply in relation to increasing demand ; inter-
national registration of cancer cases; control of
schistosomiasis; methods for the control of alco-
holism ; and special problems relating to the small-
pox immunity reaction and post-vaccinal enceph-
alitis.
Current Activities
The third session of the Interim Commission
took action to support or advance certain activities
already under way or to be undertaken in the near
future.
Revision of Sanitary Conventions. The Interim
Commission is taking preliminary steps toward
972
the revision of existing international sanitary con-
ventions. It is requesting governments to present
recommendations concerning the modification of
these conventions for consideration by an Expert
Committee on Quarantine. Further, an Expert
Committee on Pilgrimages met at Alexandria,
Egypt, April l(>-24, 1947, to develop recommenda-
tions, in the light of present-day knowledge, on
the convention clauses designed to control epidemic
disease in, and resulting from, the Moslem pil-
grimages. Upon the invitation of the Egyptian
Govermnent the committee visited Red Sea ports
and quarantine stations. The Commission also
sent representatives to the Meeting of Experts on
Passport and Frontier Formalities at Geneva on
April 14, and to the General Conference of ICAO
at Montreal on May 6 to consult with these gi'oups
on health and quarantine requirements affecting
international travel. Dr. Fred L. Soper, Director
of the Pan American Sanitary Bureau, is repre-
senting the Interim Commission of WHO at the
ICAO Conference.
Biological standardization. An Expert Com-
mittee on Biological Standardization will meet at
Geneva, June 9-14, to consider the steps to be
taken in regard to the development of international
standards for certain vitamins, vaccines, penicil-
lins, streptomycin, and blood-grouping sera. This
committee will also consider, with a view to ap-
proval, international standards established on an
emergency basis during the war. Dr. Milton
Veldee, of the National Institute of Health of the
Public Health Service, is a member of this com-
mittee.
International li^t of causes of death and mor-
bidity. An Expert Conunittee of the Interim Com-
mission met at Ottawa, March 10-21, and approved
a fundamental revision of the International Lists
of Causes of Death and Morbidity. The committee
has submitted the proposed revisions to govern-
ments for their comment and recommendations
which will be considered at the second meeting, in
September, after which final lists will be submitted
to the Interim Commission. It is expected that
these revised lists will be adopted on a world-wide
basis for the classification of causes of death and
that they will be available and internationally ap-
proved in time for use in connection with the 1950
census. Dr. W. Thurber Fales, Director of the
Statistical Section of the Baltimore Health De-
partment, is a member of this committee. Dr. S.
Deparfmenf of %iate Bulletin
D. Collins, Chief Statistician of the U.S. Public
Health Service, and Dr. Halbert L. Dunn, Director
of the Office of Vital Statistics of the Public Health
Service, are ex officio members of this committee, as
rapporteurs of the United States Committee on
Joint Causes of Death.
Expert Cojmnittee on Malaria. An Expert
Committee on Malaria met at Geneva, April 21-26,
to draw up recommendations concerning the pro-
gi-am of 'WHO in this field. Dr. Paul Russell, of
the Rockefeller Foundation, serves on this com-
mittee.
Epidermological information. The Interim
Conmiission is operating, from Geneva, the inter-
national exchange of epidemiological information,
combining similar services previously performed
by the Office International d''nygiene puhliqiie,
the League of Nations Health Section, and the
Health Division of UNRRA. In this connection
it maintains an Epidemiological Information
Station in Singapore.
International Pharmacopoeia. The Interim
Commission authorized the continuation of work
previously under way in the Health Section of the
League of Nations in the preparation of standards
for inclusion in an International Pharmacopoeia.
The surviving members of the League committee
conducting this work will serve as the nucleus for
a new similar committee. The Representative of
Egypt stressed the importance, to the Arab world,
of the early completion of the International Phar-
macopoeia to supplant the several national phar-
macopoeias in use and to avert the necessity of
developing an official regional pharmacopoeia.
Field services. The third session of the Interim
Commission approved a field-service program in
countries which received UNRRA aid. The funds,
$1,500,000, under which this progi-am is operating
were obtained by transfer from UNRRA. The
objective of the program is to maintain UNRRA
assistance at a level essential to protect world
health and to replenish the dwindling supply of
trained health personnel in countries devastated by
the war. The approved budget provides for pro-
grams in Austria ($32,680), China ($564,021),
Czechoslovakia ($67,500), Ethiopia ($58,191),
Finland ($15,590), Greece ($95,450), Hungary
($44,977), Italy ($51,267), Poland ($94,483),
Ukraine ($59,633), and Yugoslavia ($96,250). It
includes px'ovision for extending aid, as well, to
Albania and Byelorussia if requests are received
from those countries by June 1. Of the total pro-
gram, over $400,000 will be devoted to fellowships,
including a limited number available to Korea and
the Philippines.
Publications. The Interim Coimnission has un-
dertaken the publication of the following:
(a) The official records of the International
Health Conference and of the Interim Com-
mission.
(b) The Weekly Epidemiological Record, a sta-
tistical record of the incidence of important
communicable diseases, with commentaries
and graphs.
(c) The Chronicle of the World Health Organi-
zation (Interim Commission), an informa-
tional publication to be printed monthly in
the five official languages.
{d) The Bulletin of the World Health Organizor
tion (Interim Conmiission) , a quarterly scien-
tific journal replacing the bulletins of the
Office International d^Hygiine puhlique and
of the League of Nations.
(e) The Quarterly Digest of Health Legislation,
Relations WitK Other Organizations
The third session authorized the appointment
of subcommittees of its Committee on Relations
to negotiate with the United Nations, FAO, and
UNESCO, with a view to developing draft agree-
ments for submission to the First World Health
Assembly and the appropriate body of the other
organizations. These subcommittees are com-
posed as follows :
Subcommittee on Negotiations With the United
Nations: China, the Netherlands, the Union
of Soviet Socialist Republics, and the United
States.
Subcommittee on Negotiations AVith FAO': Aus-
tralia, Mexico, and Norway.
Subconmiittce on Negotiations With UNESCO:
Brazil, France, the United Kingdom, and the
United States.
The Subcommittee on Negotiations With FAO
was authorized to act on behalf of the Interim
Commission on a Joint Advisory Committee on
Nutrition. The Subcommittee on Negotiations
With UNESCO was authorized to establish, on
{Contimted on page 983)
May 18, 1947
973
INTERNATIONAL COOPERATION DURING THE
WORLD SHORTAGE OF LUMBER
hy Frank WhiteJiottse
Lumber is needed for twenty to thirty million family
dwelling units in Europe. One third of all dwellings in
Great Britain were damaged or destroyed hy enemy action.
Vigorous international efforts are being made to send lumber
to Europe for use in reconstruction.
World War II generated a serious shortage of
lumber throughout tlie world. Army canton-
ments, ships, military equipment, war plants, tem-
porary housing, and boxing and crating all drained
off lumber supplies from peacetime uses both
among the Allies and in enemy countries. The
use of lumber in private dwellings and commercial
construction was restricted rigidly. The end of
hostilities left the world with devastated areas, a
shortage of housing and non-residential buildings,
disturbed production and consumption patterns,
and a shortage of lumber-producing equipment
such as sawmills, trucks, and tractors.
From 20 to 30 million family dwelling units are
needed in Europe alone. Poland reports that in
addition to bombed-out city dwellings, 2 million
rural families are living in holes in the ground.
The housing crisis is not confined to bombed or
other war-devastated areas ; home construction in
many countries has been at a standstill since 1939.
Lumber is needed not only for new constniction
but for maintenance, without which many damaged
buildings now in use soon will be beyond repair.
The extent of the shortage is evidenced by the
world's lumber import requirements for 1946 of
15,400 million board feet, compared with approxi-
mate exports of only 8,800 million feet, a deficit of
6,600 million feet.^
Lumber Situation in EECE Countries
The Emergency Economic Committee for
'■ Forestry and Forest Products, World Situation, 1931
194s (Food and Agriculture Organization), p. .52.
974
Europe, with headquarters in London, was estab-
lished in 1945 to assist in the economic reconstruc-
tion of Europe. Belgium, Denmark, France,
Greece, Luxembourg, the Netherlands, Norway,
the United Kingdom, and the United States par-
ticipate in this work. A subsidiai-y organization,
the Timber Subcommittee, estimates tliat the soft-
wood lumber requirements of the United King-
dom, Belgium, the Netherlands, France, Demnark,
and Switzerland for 1947 total 7,342 million feet.
These countries will have a supply of only about
5.002 million feet, of which 1,802 million feet will
come from indigenous production and the balance
from imports. The seriousness of the European
lumber shortage is demonstrated by the fact that
the 1947 supply will be only about 70 percent of
stated requirements, which in turn are less than
one half of normal pre-war consumption.
United States Production and Exports
United States lumber production will probably
total 36,000 million feet in 1947, compared with an
average of 23,000 million feet during the years
1935-1939, inclusive.
Exports of lumber from the United States
ranged from 974 to 1,439 million feet a year during
the pre-war years 1935 to 1939, inclusive, or from
4.3 to 6.6 percent of domestic production. During
and since the war exports have been restricted, but
these controls are being relaxed gradually. In
1946 the United States restricted exports to 616
million feet, which was about 2 percent of domestic
Deparfmenf of State Bulletin
production. Exports in 1947 are expected to be at
least 1,200 million feet or about 3.3 percent of pro-
duction. In pre-war years about one fourth of our
exports went to Europe, but at present the Govern-
ment is channeling about one half to that area.
United States Imports
In the period 1935-1939, inclusive, imports of
lumber averaged 607 million feet a year. During
and since the war imports have been larger than
during pre-war years.
Early in 1946 the President directed all Gov-
ernment agencies and departments to assist in all
ways feasible the making available of additional
materials for use in the veterans' emergency hous-
ing program.^ Pursuant to this directive, the De-
partment of State instructed the American em-
bassies and consulates in certain countries to fa-
cilitate the shipment of lumber to the United
States. The Department received a large nmnber
of requests for supply assistance from American
companies in foreign countries producing lumber
for shipment to the United States. These firms
sought assistance in obtaining sawmill equipment,
tractors, trucks, tires, and similar items. The
Department made arrangements with the Depart-
ment of Commerce by which most of the requests
were granted, often on an ex-quota basis.
Import duties on the principal kinds of lumber
were removed by presidential proclamation late in
1946. This emergency action was taken as a tem-
porary measure at the suggestion of the National
Housing Agency and with the concurrence of the
Department.
Partly as a result of the foregoing measures,
United States imports totaled 1,227 million feet
in 1946 — about twice the pre-war volume.
Canada has supplied more than 80 percent of the
United States imports during the past 25 years.
Other sources have been Europe (especially the
U.S.S.R. and the Scandinavian countries), the
Philippines, Mexico, South America, the West In-
dies, and Africa. The Department of State has
requested procurement agencies of the United
States Government not to purchase lumber in Eu-
rope for the present in order to maximize the
quantities tliat remain there for use in recon-
struction.
Lumber Controls
Since the end of the war, most of the former
May 18, 1947
belligerents have channeled lumber principally to
housing and to essential commercial construction.
It is thought that the controls imposed by the
United States and Great Britain are fairly typical.
United States. During the war the War Pro-
duction Board controlled the production and dis-
tribution of lumber by the use of general produc-
tion orders, directives, set-asides, and priorities.
Most of these controls have gradually been re-
moved by the Civilian Production Administra-
tion (which replaced the War Production Board)
and the OiEce of the Housing Expediter as the
lumber situation in the United States improved.
The Office of the Housing Expediter still requires
sawmills to send to millwork or cut-stock manu-
facturers 85 percent of all Douglas fir and western
pine shop lumber measuring 81^4 inches and
thinner, including number three clears.
Permits must now be obtained from the Federal
Housing Admmistration for all new construction.
The permit system replaces the former priority
system. Houses are limited to a total floor area
of 1,500 square feet and one complete bathroom,
and they must be suitable for year-round oc-
cupancy. There are no sales-price limitations on
homes built for sale under the permit system.
Veterans' preference is still in effect for both
sales and rental housing. However, non-veterans
are now permitted to build for their own oc-
cupancy. Also, upon application to the Federal
Housing Administration, waivers may now be
granted allowing sales to non-veterans immedi-
ately after completion, provided a unit in the
same project was held for 30 days after comple-
tion without a veteran purchaser and provided
that preferential holding periods are working a
hardship on the builder.
Non-residential construction, also subject to
permit, is generally limited to a cost of $15,000
a job.
United States lumber exports are controlled by
the Office of International Trade of the Depart-
ment of Commerce. The authority of the Com-
merce Department to control exports will expire
on June 30, 1947, unless extended.
Great Britain. Great Britain ^ was obliged to
' This program called for starting construction on a total
of 2,700,000 dwelling units in 1940^7.
' The term Qreat Britain as used here includes England,
Scotland, and Wales, but not Northern Ireland.
975
overcut its forests during the war with the result
that it is now more dependent on imports than
previously. The re^iuirements of Great Britain
for softwood lumber in 1947 are approximately
3,142 million feet, of which all but 100 million feet
must be imported.
Approximately one third of the total dwelling
units in Great Britain were affected by enemy ac-
tion during the war. Of a 1939 total of approxi-
mately 13,000,000 dwellings, it is officially
estimated that approximately 200,000 were entirely
destroyed, an additional 250,000 made completely
uninhabitable, and about 4,000,000 damaged.''
Following the war, the British Government em-
barked on a program to construct 1,250,000 new
dwellings to meet immediate housing needs. Es-
timates of long-term housing requirements range
up to 5,000,000 dwelling units over the course of
the next 10 years.
The British Government has followed a policy
of licensing all construction, controlling prices,
and allocating lumber by size and use. The maxi-
mum quantity of lumber that may be used in an
individual dwelling has just been reduced from
4,000 to 3,200 feet, with the result that most houses
will have concrete floors. The Government even
limits the width and thickness of boards that can
be used in the various parts of the house.
International Timber Conference
The Food and Agriculture Organization of the
United Nations called an International Timber
Conference at Marianske-Lazne, Czechoslovakia,
beginning April 28, 1947. Invitations were sent
by tlie Food and Agriculture Organization and the
Czechoslovak Government to 34 nations, as well as
to the Economic and Social Council of the United
' Construction and Construction Materials Industry Re-
port (Department of Commerce, April 1947), p. 10.
Nations, the International Bank for Reconstruc-
tion and Development, the International Labor
Office, the Emergency Economic Committee for
Europe, and the Pan American Union.
Sir John Boyd Orr, Dire<'tor General of FAO,
said in his letter of invitation that the Conference
had been called with three main ends in view :
1. To investigate and report on urgent measures
for making available as much lumber as possible to
cover European construction requirements, espe-
cially in countries devastated by war.
2. To investigate European lumber requirements
beyond the reconstruction period and devise
longer-range programs for conservation and re-
habilitation of the region's forest resources, the
need and possibilities of obtaining additional lum-
ber supplies from forest resources that as yet are
undeveloped, and safeguards against possible
future unsalable surpluses of lumber.
3. To consider suitable international action for
helping to solve the emergency and long-term
problems.
The President approved the following delega-
tion to represent the United States at Marianske-
Lazne: Donald Kennedy, Chief of the Inter-
national Resources Division, Department of State,
Chairman; E. Theodore Geiger, Administrative
Officer of the Mission for Economic Affairs,
American Embassy, London; Edward I. Kotok,
Assistant Chief of the Forest Service, Department
of Agriculture; and Joseph I. Muller, Acting
Chief of the Forest Products Division, Office of
International Trade, Department of Commerce.
The Food and Agriculture Organization plans to
call regional conferences for the Americas and the
Far East during the year to lay the groundwork
for a world conference later.
976
Department of State Bulletin
THE UNITED NATIONS
The Economic Commission for Europe: Toward Beneficial Employment of
Human and Material Resources
BY UNDER SECRETARY CLAYTON >
This first meeting of the Economic Commission
for Europe has for its purpose the creation of an
organization designed to promote the most effec-
tive employment of the human and material re-
sources of Europe to the benefit of all. If this
objective can be measurably achieved an impor-
tant step will have been taken on that road to
world peace and world prosperity which we all
seek. All states represented here bear in A^arying
degrees the scars of war, some visible and some
not. All have a common interest in hastening the
restoration of economic health in Europe. All
can make a contribution to that end; as separate
countries are a part of Europe, so Europe is a
pai't of the larger world. It is appropriate there-
fore that this Commission, within the framework
of which its members may join their common ef-
forts, should be an integral part of the United
Nations.
In creating this Commission the Economic and
Social Council recognized that the problems with
wliich it is expected to deal can be most effectively
handled on an European basis. It is the responsi-
bility of the Council to fit securely into the world
picture the European phase of economic revival;
the organizational relationship between the Com-
mission and the Council insures that this will be
done. The United States is vitally concerned in
the economic revival of Europe. This is true be-
cause we are an occupying power and because we
know full well that world peace and prosperity
are impossible without European economic revival.
The success of this Commission will be meas-
ured by its ability to find prompt solutions to
certain vital and urgent problems which stand in
the way of European recovery. Fortunately we
are not without experience in dealing with some
May 18, J947
of these problems. The Eniergency Economic
Committee for Europe, the European Central In-
land Transport Organization, and the European
Coal Organization have dealt for some time now
with the urgent problems in their respective fields
which faced post-war Europe. The terms of ref-
erence of the Economic Commission for Europe
provide that the highly important functions of
these organizations shall be taken over by the Com-
mission. The experience of these three organiza-
tions goes far to prove that nations can indeed
work effectively together for their common good.
The European Coal Organization is an out-
standing example. Through common agreement
it has brought about an equitable sharing of an
inadequate supply of coal among countries, each
of which desperately needed more coal than it got.
The successful operation of the European Coal
Organization has been an added spur to us in the
United States to expand to the utmost our ship-
ments of coal to Europe. Wliat the existing bodies
have accomplished in their limited fields can be
done in the larger field of this Commission.
The problems of each country seem to it the most
pressing, but if experience teaches anything it is
that no country can solve its economic problems in
isolated economic actions which appear to relieve
pressures at home while creating pressure abroad
and by opening up a whole Pandora's box of trou-
bles for all of us. It is just as if the whole world
had an economic nerve center receiving and giv-
ing out for good or bad the. economic impulses set
' Opening address before the initial meeting of the new
Economic Commission for Europe on May 2, 1947, released
to the press in Geneva on that date and in Washington
on May 5. Mr. Clayton is American Delegate to the
Commission.
977
THE UN/TED NATIONS
in motion by individual action. Anywhere an
understanding of the delicate adjustment of the
economy of the modern world shows that unilat-
eral action which may harm one's neighbors must
in the end result in harm to all. There are no
panaceas or easy remedies for the problems with
which this Commission will deal. The last war
dealt the world a staggering blow, the force of
which is only just now beginning to be fully un-
derstood. Eeconstruction can only be achieved
through hard teamwork pulling together, not sepa-
rately.
The Preparatory Commission on Trade and Em-
ployment now meeting here in Geneva is working
out a broad pattern of international trade rela-
tions designed to bring about an expansion in
world economy to the end that all people, every-
where, may enjoy higher living standards. The
Economic Commission for Europe is a complemen-
tary body to deal with urgent problems arising
from the dislocations of war. As Secretary Mar-
shall recently said, "European recovery has pro-
ceeded at a slower pace than anticipated"'. This
fact gives a special urgency to the task before us
here. Let us get on with the job in hand as quickly
as possible.
First Regional Conference of National
Commission for UNESCO
One thousand delegates representing more than
300 organizations will meet in Denver, Colo., May
15-17, in the first regional conference on the United
Nations Educational, Scientific and Cultural Or-
ganization (UNESCO).
Citizens of Colorado, Nebraska, Kansas. Idaho,
Utah, Wyoming, Oklahoma, and New Mexico will
participate. They were called together by the
U.S. National Commission for UNESCO to con-
struct a program by which the organizations they
represent will take part in the UNESCO effort to
develop peaceful interchange between nations.
Assistant Secretary of State William Benton
said on May 9 :
"This working conference meeting in the heart
of America should help place the program of
UNESCO where it belongs, close to our daily lives.
If UNESCO is to succeed, our communities must
begin to come to grips with the job of building
the defenses of peace in the minds of men. The
entire focus of this Denver meeting will be on the
development of specific programs for specific ac-
tion. In a world that still must be educated away
from war, such 'action conferences' are what we
need and need now."
Outstanding educational, scientific, and cultural
leaders of the Rocky Mountains-Plains region
will take part. They represent businesses, profes-
sions, and civic and women's organizations, as well
as their professional fields.
The conference is directed by a convening com-
mittee composed of Milton Eisenhower, president
of Kansas State College and chairman of the U.S.
National Commission for UNESCO ; Reuben Gus-
tavson, chancellor of the University of Nebraska ;
and Ben M. Cherrington, director. Social Science
Foundation, University of Denver.
National Commission for UNESCO
Invites Additional Organizations
[Released to the press May 9]
Seven organizations will be invited to name rep-
resentatives to the United States National Com-
mission for UNESCO, it*vas announced on May 9
by Milton S. Eisenhower, chairman of the Com-
mission. The organizations selected are:
American Association of School Administrators
American Association of Teacliers' Colleges
American Chemical Society
Engineers Joint Council
Modern Language Association
National Council for the Social Studies
National Institute of Arts and Letters
Selection of the seven organizations was made
by the executive committee of the Commission,
meeting in Washington on May 9. The selection
raises to 57 the number of organizations requested
to name members to the National Commission.
The selection of three youth organizations will be
considered at the September meeting of the full
Commission to complete the roster of 60 author-
ized by Congress. In order to insure future rota-
tion of membership, the Commission may annually
review and revise the roster of member organiza-
tions. The duties of the Commission are to advise
the Government on UNESCO matters and
bring about widespread national cooperation in
UNESCO programs.
978
Department of State Bulletin
First Assembly of International Civil Aviation Organization
STATEMENT BY ASSISTANT SECRETARY NORTON '
Mr. President and Delegates: This first ses-
sion of the Assembly of the International Civil
Aviation Organization is an occasion which we
from the United States view with special gratifica-
tion. The fact that the international convention
on civil aviation has come into full force and ef-
fect in considerably less than the three years orig-
inally contemplated is a demonstration that the
52 delegations at Chicago built well and success-
fully.
We can now proceed with certainty to establish
the organization on a permanent basis. I do not
minimize the important achievements of the in-
terim period. I am sure that there has never been
another provisional international organization
which sought as fully as this one to measure up to
all phases of the job to be done. The record is one
of great accomplishment.
The United States Government, perhaps not
alone, has at times been left breathless by the pace
of council meetings, committee meetings, division
meetings, regional meetings, and special meetings.
Aviation is not a business on which matters can be
left to wait forever, nor one in which the problems
disappear if simply left unattended.
First and foremost, the organization is devoted
to the formulation of international standards on
all matters affecting the safety, regularity, and ef-
ficiency of air navigation. By ratifying the con-
vention, every member state has accepted a solemn
treaty obligation to collaborate not only in pre-
paring but also in carrying out the international
standards. This obligation must be fulfilled !
It is fortunate that the productive work initiated
at Chicago on these standards has been carried for-
ward through two successive revisions. It will be
possible for the new Council, when it is elected a
few days hence, to act immediately upon the whole
code of standards already developed. I believe
Moy 18, 1947
742837 — 17 i
that one of the first actions of the new Council
should be to adopt the standards which are ready.
We can all then leave this assembly with the
knowledge that the standards have been officially
submitted to the member states and may be ex-
pected to come into effect three months later un-
der the procedure established by the convention.
The coming into effect of these standards
throughout a large part of the world can be a ma-
jor contribution to safety of life in the air, and
will be if we all take seriously our obligations.
The agenda for Commission II contains few
items which will excite vigorous debate in the ple-
nary sessions of the assembly. We should regard
this as a tribute to the organizational pattern and
procedure which has been developed for handling
technical matters in the divisions, the Air Navi-
gation Committee, and the Council.
A second field of fruitful work envisaged at
Chicago lies in the general area of Commission
III of this assembly. Here we shall be concerned
with the economic, commercial, and political prob-
lems of international air transport.
These problems are no less demanding than those
in the technical field, but our progi-ess has under-
standably been slower and more difficult. It is the
view of the United States that there are at least
five types of activity in the economic field among
which we should distinguish in planning the work
of the organization.
One is the collection, compilation, and publica-
tion of factual information. We cannot emphasize
too much the fundamental importance of these ac-
tivities, in which every nation should assist by
carrying its share of the load.
' Made at the opening plenary meeting of the first as-
sembly of lOAO at Montreal, on May 6, and released to
the press in Montreal on that date and in Washington on
May 7. Mr. Norton is chairman of the U.S. Delegation.
979
THE UNITED NATIONS
The second is the activity of the secretariat in
analytical study. It takes the form not only of
dissecting the issues for detailed examination but
also of arranging all of the known facts in relation
to the issues. The United States supports fully
the ideal of thoroughgoing staff work by a compe-
tent international staff which will assist committee
deliberation on proposals as to policy.
Still another type of activity of the organization
in the economic field consists of the formulation of
recommendations for national action. The princi-
pal examples so far are the proposals for a stand-
ard form of bilateral agreement formulated at
Chicago and the recommended practices for facili-
tation of international air transport. In general,
and particularly in Commission III, the United
States believes it well worth while to work through
recommendations to the member states. We regard
this as a means of initiating progressive action and
of exploring the ground before more decisive forms
of international action are attempted.
The fourth type of activity, when it is possible,
is undoubtedly the most satisfying form of inter-
national collaboration. It consists of decisive in-
ternational action through the adoption of stand-
ards or the acceptance of agreements or treaties.
This form of action is always the most difficult.
Every government is reluctant to support or enter
into binding commitments without full study of
the prospective consequences. Nevertheless, we
can look forward hopefully to a constant enlarge-
ment of the area of such action. The United States
will continue to support such endeavors.
The final type of activity in the economic field
relates to the administration of international
agreements once they have been concluded. The
implementation of every important new agree-
ment will be the subject of discussions in this as-
sembly and in the Council and its committees as
we search for a common understanding of our
mutual obligations. In some cases it will be neces-
sary to provide specifically for the arbitration of
disagreements and disputes. In such cases the
United States believes the organization can be
helpful in establishing and maintaining the ma-
chinery of arbitration. However, the organization
itself should not be vested with arbitral duties.
In dealing with all of the items on the agenda for
Commission III, the United States will seek to
apply the general principles which I have just out-
980
lined. In this statement I wish to comment fur-
ther on only one item of the Commission III
agenda, namely, the proposed multilateral agree-
ment on commercial rights in international air
transport.
It is the view of the United States that our efforts
to produce a multilateral agreement on air com-
merce at Chicago and since have suffered from the
lack of experience and of tested information. We
still do not have adequate primary statistical data
bearing on some of the major problems involved
in the draft. Such data are greatly needed.
Nevertheless, the present draft represents consid-
erable progress beyond anything we have had
before.
The United States intends to work hard in the
hope that a treaty agreement can be reached at this
assembly on many of the principles applicable to
international air commerce.
Our specific proposals for revision of the draft
proposed by the Air Transport Committee will be
presented in Commission III. We hope that
agreement will prove possible with respect to prin-
ciples on capacity, rates, unfair practices, the fa-
cilitation of international air services, and the arbi-
tration of disagreements. We further believe that
the first Two Freedoms, those of transit and of
non-traffic stop, have already received such general
acceptance that they should now be put forward
in permanent form as part of the proposed treaty.
We do not believe that it is practicable to include
a general exchange of commercial rights in the
proposed treaty at this time. We do believe that
the treaty should include suitable provisions to out-
law discriminatory practices in operations under
such treaties.
In our negotiations let us not neglect the "for-
gotten man" — the individual traveler of any state
who wants to go somewhere at a time and in an air-
craft of his own choosing.
In commenting on the work of the organization
in the technical and economic fields, I have dealt
with the two main substantive fields we had under
consideration at Chicago.
Another field, the breadth of which was not
fully foreseen at Chicago, and in our opinion is not
yet fully foreseeable, is that which is entrusted at
this assembly to the Commission on Legal
Questions.
In this field, two draft conventions are before the
assembly. The first is known as the draft con-
Department of State Bulletin
vention concerning the recording of rights in rem
in aircraft.
This convention provides for the recording and
recognition of property rights in aircraft. It will
facilitate the necessary financing as aircraft fleets
are rebuilt and expanded. Such a convention is
greatly needed. The present draft is tlie best we
have ever had. It provides a basis on which we
can hope to complete action this year.
The draft convention on the legal status of the
aircraft commander is also before the assembly.
Here too it is possible that a final text will be pre-
pared and opened for signature.
The CITEJA,= which originated the study of
these conventions, has had a long and useful back-
ground of study and accomplishment. We look
forward at this assembly to participating in mak-
ing appropriate arrangements to continue the work
of CITEJA within the aviation organization.
In the other main substantive field of the organ-
ization, that of establishing policies for financial
and technical aid through the organization under
chapter XV of the convention, there has been little
precedent. The United States hopes that Com-
mission VI, as well as all others, will realize that
our organization, for all its accomplishments, is
still young. There has been little time to collect
and analyze the basic data that will lead to in-
telligent decisions. We are all anxious to make
decisions to improve the safety, efficiency, and
economy of international air transport. Yet we
must recognize that decisions made without facts
may hamper more than help our objectives. In all
fields the United States urges the accumulation
of facts. It appears that the documentation pre-
pared for this field of "joint support" allows for
I he establisluuent of flexible policies and full ex-
ploration of the facts.
The United States, under its national policy of
support of the United Nations, views with great
satisfaction the completion of negotiations on the
draft agreement of relationship between the avia-
tion organization and the United Nations. Final
approval by the United Nations is, however, sub-
ject to compliance by ICAO with the resolution
adopted by the United Nations General Assembly
on December 12, 1946, recommending that Franco
Spain be debarred from membership in inter-
national agencies brought into relationship with
the United Nations.
In accordance with this fundamental policy of
THE UNITED NATIONS
support of the United Nations, the United States
believes it is essential that the relationship agree-
ment between the United Nations and ICAO be
brought into force. The retention of Franco
Spain as a member of ICAO would mean that the
agreement of relationship could not come into
operation. The United States Delegation accord-
ingly will propose that the assembly of ICAO
adopt an amendment to the convention which will
comply with the United Nations resolution.
Support of the recommendations of the United
Nations General Assembly is more important to
the United States Government than is the tech-
nical advantage of having one country continue as
a member of this organization. We hope that all
members share our views on this subject.
There are several other decisions of a general
nature to be made by this assembly. It is to be
hoped that the Council will be elected as soon as
practicable in order that it may organize before
Commission V completes its work. The new
Council will then be able to obtain any necessary
clarification of the organizational policies estab-
lished by that Commission.
During this assembly it appears desirable that
a decision be reached on the location of our next
convening. The United States favors a suitable
location outside of North America.
It is to be hoped that the next assembly agenda
can be more limited than the one upon which we
are now to embark. Perhaps two out of every
three assemblies could be confined to administra-
tive matters and urgent items, a thorough review
being held only eveiy third year.
The United States believes that the strength of
this organization lies in a competent continuing
Council, its committees, and the secretariat. We
should build upon our experience to make them
even more effective in the future.
In closing we recall with pleasure the cordial re-
ception afforded us last year. The United States
extends to the Canadian Government and people of
Canada its sincere appreciation for their hospital-
ity to the oi'ganization during this, its first assem-
bly. Although this year's agenda is heavier than
that of last year, the documentation has been so
carefully and well prepared that it should be possi-
ble to complete our work in a considerably shorter
time than was the case last year.
• Comlt6 International Technique d'Experts Juridiques
A^riens.
May 18, 1947
981
THB UNITED NATIONS
Current United Nations Documents:
A Bibliograpliy
There will be listed periodically in the Bulletin
a selection of United Nations documents which
may be of interest to readers.
Printed materials may be secured in the United
States from the International Documents Service,
Columbia University Press, 2960 Broadway, New
York City. Other materials (mimeographed or
processed documents) may be consulted at certain
designated libraries in the United States.
General Assembly
Committee on the Progressive Development of Interna-
tional Law and Its Codification, Tlie. Bibliography
on the Codification of International Law.
A/AC. 10/6, May 2, 1947. 14 pp. mimeo.
Historical Survey of Development of International Law
and Its Codification by International Conferences.
Memorandum Prepared by the Secretariat.
A/ AC. 10/5, Apr. 29, 1947. 119 pp. mimeo.
Index to the Resolutions Adopted by the General Assembly
During Its First Session (London and New York,
1946). A/64/Add. 2, Feb. 28, 1947. 22 pp. printed
[25«i].
Methods for Encouraging the Progressive Development of
International Law and Its Eventual Codification.
Memorandum by the Secretariat. A/AC.10/7, May
6, 1947. 8 pp. mimeo.
Question of Palestine. Worliing Documentation Prepared
by the Secretariat. Vol. I. Reference Library on
Palestine. A/296/ Add. 1, May 1, 1947. 5 pp. mimeo.
Also, A/296/Add. 2, May 5, 1947. 18 pp. mimeo.
Security Council
Cablegram From the Chairman of the Commission of
Investigation Concerning Greek Frontier Incidents to
the President of the Security Council Dated 30 April
1947. S/337, May 1, 1947. 2 pp. mimeo.
Cablegram From the Chairman of the Commission of In-
vestigation Concerning Greek Frontier Incidents to
the President of the Security Council Dated 5 May
1947. S/343, May 6, 1947. 3 pp. mimeo.
Letter From the Chairman of the Military Staff Committee
to the Secretary-General Dated 30 April 1947 and En-
closed Report on General Principles Governing the
Organization of the Armed Forces Made Available to
the Security Council by Member Nations of the United
Nations. 8/336, Apr. 30, 1947. 80 pp. mimeo.
Letter From the Deputy United States Representative on
the Security Council to the Secretary-General Dated
30 April 1947. S/338, May 1, 1947. 1 p. mimeo.
982
Letter From the Minister of Hungary to the United States
Addressed to the Secretary-General Dated 22 April
1947. S/333, Apr. 25, 1947. 1 p. mimeo.
Letter From the Permanent Representative of Greece to
the United Nations Addressed to the Secretary-General
Dated 24 April 1947. S/334, Apr. 25, 1947. 2 pp.
mimeo.
Resolution on the Greek Question, Adopted at the Eighty-
seventh Meeting of the Security Council, Establishing
a Commission of Investigation. S/339, May 2, 1947.
2 pp. mimeo.
United States Mission to the United Nations
Statements of the United States Representative and Alter-
nate United States Representative to the Special Ses-
sion of the General Assembly Delivered at Plenary
and Committee Meetings of the General Assembly.
US/Bibl/33, May 3, 1947. iii, 17 pp. mimeo.
U.S. Delegation to ILO Industrial
Committee on Inland Transport
[Released to the press May 5]
The President has approved the composition of
the United States Delegation to the second meeting
of the Industrial Committee on Inland Transport
of the International Labor Organization, as sub-
mitted by the Secretary of State upon the recom-
mendation of the Secretary of Labor, it was an-
nounced on May 5. The meeting will commence
on May 7 at Geneva.
The United States Delegation is a tripartite
group of six delegates representing equally, in ac-
cordance with ILO constitutional provisions. Gov-
ernment, management, and labor. In addition,
three Government advisers will participate. The
Delegation is listed as follows :
Representing the Oovernment of the United States
Dexegates
WUliam J. Patterson, Member, Interstate Commerce
Commission
Harry Weiss, Director, Economics Branch, Wage and
Hour and Public Contracts Divisions, Department of
Labor
Advisees
Nelson M. Bortz, Chief, Labor-Management Disputes Di-
vision, Bureau of Labor Statistics, Department of
Labor
Russell S. McClure, Attach^, United States Embassy,
Paris
Merrill Murray, Chief, Social Insurance Branch, Oflice
of Military Government for Germany
Department of State Bulletin
Representing the Employers of the United States
Baruett D. Davidson, Vice President, Davidson Transfer
and Storage Company, Baltimore, Md.
Daniel P. Loomis, Executive Director, Association of
Western Railways, Chicago, 111.
Representing the Workers of the United States
H. W. Fraser, Vice Chairman, Railway Labor Execu-
tives Association, Cedar Rapids, Iowa
O. J. Mischo, International Secretary-Treasurer, Amal-
gamated Association of Street and Electric Railway
Employees of America, Detroit, Mich.
The ILO Committee will review steps taken to
carry out decisions of the first meeting which was
THE UNireO NATIONS
held in London in December 1945 and in which Mr.
Patterson also participated on behalf of this Gov-
erimient. Other subjects which the Committee
will consider include manpower problems in inland
transport, a survey of industrial relations in the
industry, and methods of collecting and standard-
izing labor statistics in inland transport.
While the ILO Committee session is in progress,
there will also be held at Geneva the first meeting
of the Economic Commission for Europe which
will consider other phases of inland transport so
far as Europe is concerned.
Third Session of Interim Commission of WHO — Continued from page 973
behalf of the Interim Commission, effective rela-
tions with UNESCO on an interim basis. This
committee met with the Negotiating Committee
of the UNESCO Executive Board in Paris on
April 13 and 16. The action taken at this joint
meeting will be recorded in the next issue of the
Department of State BuiiLETiN.
The Interim Commission expressed itself as
fully sympathetic with the objectives of the In-
ternational Children's Emergency Fund, and in
order to give technical assistance to the Fund it;
authorized the employment by the executive sec-
retary of experts on nutrition and on child health.
The Commission has also requested states receiv-
ing fellowship assistance from the Commission to
devote a minimum of 10 percent of the funds made
available to the training of specialists in child,
health. It was the opinion of the Commission
that the ICEF should look to WHO and FAO for
advice on matters related to nutrition.
In developing relations with existing regional
health organizations, the Commission authorized
the continuation of negotiations with the Pan
American Sanitary Bureau by the existing sub-i
committee (Brazil, Mexico, the United States, and
Venezuela), and instructed the executive secretary
to investigate the status of the Pan- Arab Health
Bureau.
A subcommittee on Relations With Nongovern-
mental Organizations (China, the United King-
dom, and Venezuela) was appointed by the Com-
mission. It will undertake a thorough study of
nongovernmental organizations with interests in
the field of health and make recommendations
concerning the pattern of relations between these
organizations and WHO. A request from the
American Federation of Labor for consultative
status with WHO was referred to this subcom-
mittee for study.
The fourth session of the Interim Commission
will meet in Geneva, August 30, 1947. It will be
preceded by the second joint meeting of the Nego-
tiating Committees of the UNESCO Executive
Board and the Interim Commission, August 26-
27, and the Interim Commission's Committee on
Finance and Administration, August 28-29. Since
there is a possibility that acceptance of the con-
stitution of WHO by 26 United Nations as re-
quired to bring it into force may have been ob-
tained by August, the fourth session may be called
upon to make definitive plans for the First World
Health Assembly which must meet witliin six
months of the twenty-sixth acceptance. Thus far,
the constitution has been accepted by nine mem-
bers of the United Nations (Canada, China, Ethi-
opia, Iran, Liberia, the Netherlands, New Zea-
land, Syria, and the United Kingdom), and by
three states not members of the United Nations
(Italy, Switzerland, and Trans- Jordan).
May 18, 1947
983
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings'^
In Session as of May 11, 1947
Far Eastern Commission
United Nations:
Security Council
Military Staff Committee
Commission on Atomic Energy
Commission on Conventional Armaments
Meeting of Experts on Passport and Frontier Formalities
General Assembly: Special Session
Economic Commission for Europe: First Session
German External Property Negotiations (Safehaven) :
With Portugal
With Spain
Inter- Allied Trade Board for Japan
International Conference on Trade and Employment: Second Meeting of
Preparatory Committee.
IRO (International Refugee Organization): Second Part of First Session
of Preparatory Commission.
ICAO (International Civil Aviation Organization):
European-Mediterranean Special Air Traffic Control Meeting . . . .
Air Transport Committee
Interim Council
First Meeting of General Assembly
Congress of the Universal Postal Union
ILO (International Labor Organi'iation) : Industrial Committee on Inland
Transport.
International Technical Committee of Aerial Legal Experts: 16th Session .
Scheduled for May-July 1947
Council of Foreign Ministers: Commission To Examine Disagreed Ques-
tions of the Austrian Treaty.
German External Property Negotiations with Turkey (Safehaven) . . .
United Nations:
Committee on Progressive Development and Codification of Interna-
tional Law.
Economic Commission for Europe:
Transport Session ,
Second Session
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole •
Preparatory Conference of Experts on Telecommunications
ECOSOC (Economic and Social Council):
Fifth Session
' Prepared in the Division of International Conferences, Department of
^ Tentative.
984
Washington .
Lake Success .
Lake Success.
Lake Success .
Lake Success . . .
Geneva
Flushing Meadows
Geneva
Lisbon.
Madrid
Washington
Geneva .
Lausanne
Paris . .
Montreal
Montreal
Montreal
Paris . .
Geneva .
Montreal
Vienna . . .
Ankara . . .
Lake Success .
Geneva
Geneva
Shangliai . .
Lake Success .
Lake Success .
Lake Success .
State.
1946
Feb. 26
Mar. 25
Mar. 25
June 14
1947
Mar. 24
Apr. 14-25
Apr.28-Mayl6
May 2-10
1946
Sept. 3
Nov. 12
Oct. 24
1947
Apr. 10
May 1-17
Apr. 15-26
Apr. 28-30
Apr. 29-May 7
May 6
May 7
May 7
May 10
May 12
May 2
May 12
May 15
June 23
June 16
June 23 '
June 16
July 19
Department of Sfafe Bulletin
Calendar oj Meetings — Continued
U.N.: ECOSOC— Continwed
Fiscal Commission
Subcommission on Freedom of Information and of the Press . . . .
Subcommission on Statistical Sampling
Economic and Employment Commission
Human Rights Drafting Committee
FAO (Food and Agriculture Organization) :
Rice Study Group
Executive Committee
Panel on Soil Erosion Control
International Radio Conference
PMCC (Provisional Maritime Consultative Council)
lEFC (International Emergency Food Council) : Fourth Meeting , . . .
Eleventh International Congress of Military Medicine and Pharmacy , .
ECITO (European Central Inland Transport Organization): Seventh
Session of the Council (Second Part).
International Cotton Advisory Committee: Sixth Meeting
ILO (International Labor Organization) :
102d Session of Governing Body
30th Session of International Labor Conference
Permanent Agricultural Committee
ICAO (International Civil Aviation Organization) :
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
Caribbean Commission: Fourth Meeting
lARA (Inter- Allied Reparation Agency) : Meeting on Conflicting Custodial
Claims.
UNRRA Council: Seventh Session
International Telecommunications Plenipotentiary Conference , . . . .
International Council of Scientific Unions: Executive Committee . . . .
International Rubber Study Group
Fourth International Congress of Administrative Sciences ,
UNESCO Executive Board
Lake Success
Lake Success
Lake Success
Lake Success
Lake Success
Trivandrum, Travancore,
India.
Washington
Washington
Atlantic City ,
Paris
Washington
Basel
Paris
Washington
Geneva
Geneva
Geneva
Lima
Rio de Janeiro
Jamaica
Brussels
Washington
Atlantic City
Paris
Paris
Bern
Paris
1947
May 19
May 19
June 2
June 2
June 9
May 15
June 2
June or July
May 15
May 16
May 26-27
June 2-7
June 3
June 9
June 13-17
June 19
July
June 17
July 15
June 23-30
June
June
July 1
July 1-2
July 1
July 20-27
July
Activities and Developments »
JOSEPH M. DODGE TO HEAD U. S. DELEGATION
TO FOUR POWER COMMISSION
The Secretary of State announced on May 6 the
appointment of Joseph M. Dodge of Detroit as
head of the United States Delegation to the Four
Power Commission which will meet in Vienna May
12 to examine unresolved articles of the proposed
Austrian treaty. Mr. Dodge, widely known in
banking and Government circles and former finan-
Alay 18, 1947
985
ACTIVITIES AND DEVEtOPMENTS
cial adviser to Gen. Lucius D. Clay, United States
Military Governor in Germany, will have the rank
of Minister. He -will depart for Vienna on May 7.
The Four Power Conunission, comprised of rep-
resentatives from France, Great Britain, the
Union of Soviet Socialist Republics, and the
United States, was authorized at the final session
of the Council of Foreign Ministers at Moscow
and will report to the Council without delay.
Working as a part of the Commission will be a
committee of experts which will concentrate on the
examination of the specific question of German as-
sets in Austria. David Ginsburg, former Govern-
ment counsel and former alternate director of the
Economics Division in the Office of United States
Military Government at Berlin, will be the United
States member of the committee of experts.
Other members of the Delegation will be:
Francis T. Williamson, Central European Divi-
sion, Department of State ; Covey T. Oliver, Divi-
sion of German-Austrian Economic Affairs, De-
partment of State ; and Raymond W. Goldsmith,
Washington, D. C, economist.
Secretary Marshall said in his radio report to
the Nation upon his return from Moscow that the
negotiations regarding the Austrian treaty re-
sulted in agreement on all but a few points, but
those were basic and of fundamental importance.
The Soviet Union favors, and the other govern-
ments oppose, the payment of reparations and the
cession of Carinthia to Yugoslavia.
Secretary Marshall also said that the Soviet
Government attached much more importance to
its demand that the German assets in Austria,
which are to be the Soviet Union's by the terms
of the Potsdam agreement, should include those
assets which the other three powers consider to
have been taken from Austria and the citizens of
the United Nations by force or duress by Hitler
and his Nazi government following the taking over
of Austria by military force in March 1938.
The Soviet Government has refused to consider
the word duress, which in the opinion of the other
three powers would be the critical basis for deter-
mining what property, i.e. business, factories, land,
forests, and the like, was truly German property
' Policy decision approved by the Far Eastern Commis-
sion on Apr. 24, 1947, and released to tlie press on May 8.
A directive based upon tliis decision has been forwarded to
the Supreme Commander for the Allied Powers for im-
plementation.
986
and not the result of seizures by terroristic pro-
cedure, intimidation, fake business acquisition,
et cetera.
The Soviet Union also has refused to consider
any process of mediation to settle disputes that are
bound to arise in such circumstances, nor do they
clearly agree to have such property as they receive
as German assets subject to Austrian law in the
same manner as other foreign investments are sub-
ject to Austrian law.
Secretary Marshall stated that the acceptance
of the Soviet position would mean that such a large
portion of Austrian economy would be removed
from her legal control that Austrian chances of sur-
viving as an independent self-supporting state
would be dubious. He said she would, in effect,
be but a puppet state.
Wlaile the Council of Foreign Ministers did not
find a compromise solution to these problems at
Moscow, Secretary Marshall has indicated that the
govermnents now know where they stand and he
is hopeful that the Commission will adjust these
differences.
DESTRUCTION OR REMOVAL OF UNITED
NATIONS PROPERTY IN JAPAN'
1. This policy decision deals with the treatment
of the property in Japan of nationals of Members
of the United Nations when such property forms
part of an industry, the capacity of which is sub-
ject to reduction either by the destruction or by
the removal of plants under the terms of relevant
policies of the Far Eastern Commission.
2. Such property shall be regarded as United
Nations property for the purpose of this policy
decision and shall hereafter be so termed :
a. if owned by nationals of Members of the
United Nations, or
i. if it has been treated as enemy property by
the Japanese Government, or
c. if owned by a corporation, the stock of which
is substantially owned directly or indirectly by
nationals of Members of the United Nations, or
d. if owned by a corporation in which a minority
of the stock is owned by nationals of Members of
the United Nations but nationals of Members of
the United Nations nevertheless have controlling
rights.
3. United Nations property which is subject to
destruction, in accordance with policies of the Far
Deparfment of State Bulletin
I
Eastern Commission on the disarmament of Japan
and the reduction of Japanese industrial war
potential, should be destroyed irrespective of the
nationality of the owner.
4. When such United Nations property is de-
stroyed, the United Nations owners should be en-
titled to full compensation for the value of their
interest in the plant at the time of destruction.
5. United Nations property within the cate-
gories of industrial plants and facilities which are
subject to removal in accordance with policies of
the Far Eastern Commission should not be selected
for removal so long as Japanese-owned industrial
facilities within the same categories are available
for removal.
6. When such United Nations property is selec-
ted for removal, the owner's government should
be given a reasonable opportunity to remove the
property or any part of it from Japan, expenses
being borne by the Japanese Government to the
same extent as in the removal and delivery of other
reparations goods. If such industrial facilities
are removed by the owner's government the value
of such property which is removed should be ap-
ACTIVITIES AND DEVELOPMENTS
plied against the reparations account of that gov-
ernment. Any such property which the owner's
government fails to remove within a reasonable
time should be made available to other govern-
ments from the reparations pool.
7. Wlien such United Nations property is made
available for reparations, the United Nations own-
ers should be entitled to full compensation for
the value of their interest in the plant at the time
of removal.
8. Wlien a United Nations owner is entitled to
compensation under paragraphs 4 or 7 above, such
compensation should be jiaid to the owner by the
Japanese Government in yen, and should not be
charged to the reparations share of the govern-
ment of which the United Nations owner is a na-
tional. Such compensation should be distinct
from and additional to any other claims for com-
pensation which the owner may have with respect
to this property.
9. The Japanese Government should remain re-
sponsible for safe-guarding and maintaining
United Nations property until it is disposed of in
accordance with the foregoing paragraphs.
First International Wool Study Group Meeting
ARTICLE BY J. RUSSELL IVES
At the wool talks held at London during No-
vember 1946, the representatives of 13 countries
agreed upon the desirability of keeping the world-
apparel wool situation under intergovernmental re-
view. For this purpose it was further agreed that
an International Wool Study Group should
be established.^ Accordingly, the first of the study
group meetings on wool was held recently (March
31-April 3, 1947) at London. That wool is the
subject of considerable international interest is
indicated by the large list of countries represented
at this first meeting.
Official delegates were sent to the conference by
the following 14 countries: Argentina, Australia,
Belgium, Canada, Czechoslovakia, France, Italy,
Netherlands, New Zealand, Poland, South Africa,
United Kingdom, United States, and Uruguay.
Eleven other countries were represented by ob-
servers; these included Cuba, Dominican Repub-
lic, Finland, Iceland, Ireland, Mexico, Paraguay,
May J8, 7947
Peru, Switzerland, Turkey, and Yugoslavia.^ Ob-
server representatives also were present from the
Food and Agriculture Organization, from the De-
partment of Economic Affairs-United Nations,
and from United Kingdom-Dominion Wool Dis-
posals, Ltd.
Organization of the conference followed the
usual lines with the head of the host delegation
(the United Kingdom) being selected as chair-
man. Two subcommittees were formed, consisting
of a steering committee consisting of the heads
of delegations which was responsible for the work
of the conference on questions of policy, and of
a statistical subcommittee which reviewed and
brought up to date the figures on world-wool
stocks, production, and consumption.
'For "Report on the International Wool Talks" by
Clarence W. Nichols, see Buixetin of Dec. 29, 1946, p. 1163.
' Portugal accepted an invitation to the conference but
did not send a representative.
987
ACTIVITIES AND DEVELOPMENTS
Considerable attention was given by the confer-
ence to the question of whether an international
commodity agreement should be developed for
wool. The following points were brought out in
the discussion of this subject :
(1) The chief international problem facing the
Study Group was one of liquidating, in an orderly
mamier, wool stocks owned by the Commodity
Credit Corporation and the United Kingdom-
Dominion Wool Disposals, Ltd.
(2) Although there is no immediate thi-eat of a
collapse in wool prices, the mventory problem
alone might appropriately be handled through the
study group approach.
(3) Several of the delegates implied that the
two governmental agencies should coordinate their
activities in disposing of their holdings.
(4) This suggestion was rejected, however, as
being tantamouait to a wool producers' cartel,
which would be highly inconsistent with the
proposed charter for the International Trade
Organization.
(5) Eventual action by the United States Con-
gress regarding the Commodity Credit Corpora-
tion wool program could not be predicted.
(6) But in the absence of some definite recom-
mendation from the Wool Study Group, the con-
clusion might very well be drawn that the rest of
the world has no interest in the action of the Com-
modity Credit Corporation regarding stocks dis-
posal and the related question of wool imports
by the United States.
In the light of this discussion, and on the basis
of the statistics concurrently developed by the sta-
tistical subcommittee, the desirability of coordi-
nating national wool policies was recognized, and
the Study Group invited the participating govern-
ments to consider further the question of special
studies regarding such coordination.
At the wool talks held at London last November,
the terms of reference for the proposed Wool Study
Group were drafted. This draft was considered
by the conference and was adopted with only
slight modifications as follows:
1. The Wool Study Group shall comprise repre-
tatives of the countries which are substantially in-
terested in the production, consumption, or trade
in wool.
2. The Group shall meet at times and places
mutually convenient to the members for the pur-
988
pose of discussing common problems in connection
with the production, consumption, and trade in
wool.
3. The Group shall be free to make such studies
of the world-wool position as it sees fit, having re-
gard especially to the desirability of providing
continuous accurate information regarding the
supply-and-demand position and its probable de-
velopment, making use of existing sources as far
as practicable.
4. The Group shall take into account, in its in-
vestigations regarding the development of the
world-wool situation, the desirability of measures
designed to stimulate the world consumption of
wool.
5. It shall be the responsibility of the Group to
consider possible solutions to any problems or
difficidties which are unlikely to be resolved by
the ordinary development of world trade in wool.
6. The Group may formulate and transmit rec-
ommendations to the participating governments.
7. The Group shall arrange for the collation or
collection of necessaiy statistics, using for this
purpose existing sources as far as practicable, and
may establish such permanent secretarial assist-
ance as it deems necessary for the proper conduct
of its work. Countries who are members of the
Group shall contribute, on a basis to be mutually
agreed to, the necessary expenses.
8. The Group will continue to function during
such perio'ds as in the opinion of the participating
governments it continues to serve the purpose for -
which it is designed. \
9. Arrangements will be made for other inter-
ested governments to be kept informed of the
studies made and of the result of the discussions
as far as practicable.
The question of whether or not a permanent
wool secretariat should be set up for the Study
Group also was considered. Several organizations
are already engaged in the collection of world-
wool statistics and therefore it was felt that con-
siderable duplication would result from the estab-
lishment of another agency. Since the work of
the existing agencies would be largely available
to the United Kingdom Delegation, it offered to
handle such functions as might otherwise be per-
formed by a permanent secretariat in the period
between the first and second meetings of the Study
Department of State Bulletin
Group. This offer was accepted by the conference.
The statistical subcommittee of the Study Group
reviewed the world statistics on stocks, production,
and consumption of apparel wool for the 194G-i7
season. The figures which were developed indi-
cated that production for the year would total
about 2.9 billion pounds. Because of continued
large consumption on the part of the United States
and considerable improvement in the output of
woolen goods by mills in several European coun-
tries, total disappearance of apparel wool for
1946-47 was estimated at about 3.4 billion pounds.
(This figiu-e was 300 million pounds greater than
M-as indicated in November for total world con-
ACTtVITIES AND D£VELOPMENTS
sumption during 1946-47.) Because of the large
volume of consumption in 1946-47, as compared
with production, world stocks of apparel wool on
June 30, 1947, were estimated at approximately 4.5
billion pounds, a decrease of 500 million pounds
from those of a year earlier. The United King-
dom-Dominion Wool Disposals, Ltd. has succeeded
in liquidating its stocks more rapidly than was
originally anticipated. Whereas the June 30,
1946, stocks of 5 billion ix>unds were about equally
divided between government and commercial hold-
ings, only about 45 jjercent of the 4.5 billion pounds
estimated for June 30, 1947, is expected to be held
by government agencies.
Second Meeting of the U.N. Preparatory Committee for the
International Conference on Trade and Employment
REPORT TO THE OFFICE OF PUBLIC
Geneva, Mat/ «', 19Jf7. — The trade negotiations
presently proceeding in Geneva represent the
greatest attempt to conduct international trade dis-
cussions in the world's history.
Before the end of May, thei-e will be 100 different
negotiations proceeding between pairs of countries
represented at the Geneva meetings.
Negotiations Under Way With Ten Countries
The United States by the end of April had al-
ready opened negotiations with 10 of the 15 coun-
tries with which trade talks were originally sched-
uled. On April 23, negotiations began with
Australia, Canada, Czechoslovakia, France, and
the United Kingdom; on April 28 with Chile,
India, and South Africa ; on April 30 with Brazil
and New Zealand. In addition to the negotiations
previously scheduled, the United States is carrying
on negotiations individually with Burma, Ceylon,
Newfoundland, and Southern Rhodesia, and with
the remaining British territories as a group.'
Each delegation has a number of negotiating
teams so that negotiations can be carried on simul-
taneously with several different countries.
United States Preparation Praised
Members of other national delegations have
praised highly the very thorough preparation of
the United States Delegation for the trade talks.
AFFAIRS, DEPARTMENT OF STATE
They have also expressed admiration for the
United States procedure of announcing to the
American people items on which it may or may
not make concessions in negotiations and inviting
the fullest expression of American opinion on
items on this list, or on concessions which the
United States should request of other countries.
The celerity with which the trade discussions
are proceeding indicates the desire of the countries
pi-esent to successfully conclude the negotiations
within several months. The magnitude of the job
is clear when it is realized that the negotiation of
a trade agreement between the United States and
a single country has taken as long as a year.
Commercial Policy Talks Begin
Meanwhile the Preparatory Connnittee has pro-
posed to the countries present that talks on articles
15 to 23 and article 37 in chapter V of the draft
chai'ter for an International Trade Organization
begin on May 7. This articles are concerned with
commercial policy problems and are closely related
to the trade negotiations.
' Inolufles : the Bahamas, Barbaiios, Bermuda, British
Guiana, British Honduras, Caicos Islands, Cayman Islands,
Cyprus, Fiji, Gambia, Gold Coast, Hong Kong, Jamaica,
Leeward Islands, Malaga, Malta, Mauritius, Nigeria,
Northern Rhodesia, Sierra Leone, the Solomons, Somali-
land, Trinidad and Tobago, Turks Island, and the Wind-
ward Islands.
May 18, 1947
989
ACTIVITIES AND DEVELOPMENTS
National treatment of imports from ITO mem,-
hers. Article 15 deals with national treatment on
internal taxation and regulation. As presently
drafted the article declares that goods imported
from countries who are members of the ITO will
not be subject to higher taxes or other less favor-
able treatment than domestic products of the same
sort, and that internal taxes, laws, regulations, and
requirements should not be used by a country to
afford protection directly or indirectly for any
domestic product as against a foreign item of the
same sort. Mixing or processing requirements
(which for example would require that flour milled
in a country's territory contain 85 percent domestic
wheat and only 15 percent imported wheat) are
prohibited.
Duty-free passage in transit. As presently
drafted, article 16 provides that goods, persons,
and baggage which are in transit across a country,
in process of direct shipment from another nation
to a third country, shall be assured by member
countries of free transit without customs or duties
or unnecessary delays or restrictions, unless cus-
toms regulations are violated. It further provides
that importing countries will not put special taxes
or other restrictions on imports simply because
they have passed through the territory of another
country instead of arriving by a different route.
Regulation of countervailing duties. Anti-
dumping and countervailing duties dealt with in
article 17 are special charges an importing coun-
try adds to the existing tariff rate when that coun-
try wishes to counteract the effect of dumping of
foreign goods and of foreign subsidies. This arti-
cle outlines the conditions under which these duties
may be used, in order to avoid their unfair or in-
discriminate use.
Standardization of tariff valuations. Article 18,
dealing with tariff valuation, seeks to set up the
definitions by which the value of goods for assess-
ing ad valorem duties, which are established as a
percent of the value of imjDorted goods, may be de-
termined fairly.
Simplification of cu-^toms rules. Customs for-
malities are dealt with in article 19. Frequently
fees charged for services connected with customs
administration can be used as hidden protective
devices. If customs rules are too complicated and
numerous they can also hinder trade. This article
is designed to achieve simpler customs laws and
regulations and keep fees down so that they cover
only the costs of the services involved. In article
20, on marks of origin, the purpose is to prevent
undue burdens on international commerce through
badly drafted or administered laws regarding
marking of imported goods to show their place of
origin.
Puilication of national trade regulations. As
an aid to all persons engaged in international com-
merce, article 21 as now drafted requires coun-
tries to publish and send to the ITO all their laws,
regulations, judicial decisions, and rulings affect-
ing trade. This excepts those administrative rul-
ings of a country the publication of which would
disclose confidential information, impede law en-
forcement, be contrary to the public interest, or
prejudice the legitimate business interests of par-
ticular enterprises whether public or private.
Maintenance and utilization of trade statistics
by ITO. In article 22 a framework is set up in
which the ITO will receive trade statistics and
other essential information. This article also
enables the ITO, in collaboration with the
ECOSOC and any other interested international
governmental organization, to study both improve-
ments in assembling and utilizing economic sta-
tistics and terms, forms, and language used in
international trade.
The question of boycotts. Article 23 on boy- ■
cotts requires that no member shall encourage, sup-
port, or participate in boycotts against the con-
sumption of products of a specific member country
or countries. Under article 37 economic sanctions,
even in the form of boycotts, are permissible if
applied in accordance with a decision of the United
Nations Security Council.
Protection of morals., health, and national treas-
ures. Members are free to provide protection of
morals, health, national treasures of artistic or
historical interest, exhaustible natural resources,
and the like, so long as their action is not an arbi-
trary discrimination or a disguised restriction on
international trade. Gold and silver, fissionable
materials, and armaments are not to be treated as
ordinary commodities, and special regulations are
permitted regarding them.
No conflict with obligations under V. N. Charter.
This article also makes clear that nothing in chap-
ter V of the ITO charter should interfere with
obligations assumed under the United Nations
Charter for the maintenance or restoration of in-
ternational peace and security.
990
Depatiment of State Bulletin
THE RECORD OF THE WEEK
The Requirements of Reconstruction
BY UNDER SECRETARY ACHESON
You who live and work in this rich agricultural
region, whose daily lives are concerned with the
growth and marketing of cotton and corn and
other agricultural products, must derive a certain
satisfaction from the fact that the greatest affairs
of state never get very far from the soil.
When Secretary of State Mai-shall returned
from the recent meeting of the Council of For-
eign Ministers in Moscow he did not talk to us
about ideologies or armies. He talked about food
and fuel and their relation to industrial produc-
tion, and the relation of industrial production to
the organization of Europe, and the relation of
the organization of Europe to the peace of the
world.
The devastation of war has brought us back to
elementals, to the point where we see clearly how
short is the distance from food and fuel either to
peace or to anarchy.
Here are some of the basic facts of life with
which we are primarily concerned today in the
conduct of foreign relations :
The first is that most of the countries of Europe
and Asia are today in a state of physical destruc-
tion or economic dislocation, or both. Planned,
scientific destruction of the enemy's resources car-
ried out by both sides during the war has left fac-
tories destroyed, fields impoverished and without
fertilizer or machinery to get them back in shape,
transportation systems wrecked, populations scat-
tered and on the borderline of starvation, and
long-established business and trading connections
disrupted.
Another grim fact of international life is that
two of the greatest workshops of Europe and
Asia — Germany and Japan^— upon whose produc-
tion Europe and Asia were to an important degree
dependent before the war, have hardly been able
even to begin the process of reconstruction be-
cause of the lack of a peace settlement. As we
have seen, recent efforts at Moscow to make
progress towards a settlement for Germany and
Austria have ended with little accomplishment.
Meanwhile, political instability in some degree re-
tards revival in nearly every country of Europe
and Asia.
A third factor is that unforeseen disasters —
what the lawyers call "acts of God" — have oc-
curred to the ciops of Europe. For two successive
years unusually severe droughts have cut down
food production. And during the past winter
storms and floods and excessive cold unprecedented
in recent years have swept northern Europe and
England with enormous damage to agricultural
and fuel production. These disasters have slowed
down the already slow pace of reconstruction,
have impeded recovery of exports, and have
obliged many countries to draw down irreplace-
able I'eserves of gold and foreign exchange, which
had been earmarked for the importation of re-
construction materials, for the purchase of food
and fuel for subsistence.
The accumulation of these grim developments
has produced a disparity between production in
the United States and production in the rest of
the world that is staggering in its proportions.
The United States has been spared physical de-
struction during the war. Moreover, we have been
favored with unusually bountiful agricultural
crops in recent years. Production in this country
is today running at the annual rate of 210 billion
dollars.
Kesponding to this highly abnormal relation-
ship between production in the United States and
production in the rest of the world, the United
States Government has already authorized and is
carrying out an extensive program of relief and
reconstruction. We have contributed nearly 3 bil-
lion dollars to foreign relief. We have taken the
lead in the organization of the International Bank
for Reconstruction and Development and the In-
ternational Monetary Fund, and have subscribed
to these two institutions to the extent of almost 6
billion dollars. We have increased the capacity of
the Export-Import Bank to make loans abroad by
almost 3 billion dollars. We have made a direct
loan of 3% billion dollars to Great Britain. We
' Address made before the Delta Council at Cleveland,
Miss., on May 8, 1947, and released to the press on the
same date.
May 18, 1947
991
THB RECORD OF THE WE£K
are proposing this j'ear to contribute a half billion
dollars for relief and reconstruction in the Pliilip-
pines, and a billion dollars to relief in occupied
areas. The President's recommendations for aid
to Greece and Turkey to the extent of 400 million
dollars and for post-UNKRA relief to the extent
of 350 million dollars are still under consideration
by Congress. And there are a few other smaller
items.
These measures of relief and reconstruction
have been only in part suggested by humanitarian-
ism. Your Congress has authorized and your
Government is carrying out a policy of relief and
reconstruction today chiefly as a matter of national
self-interest. For it is generally agreed that until
the various countries of the world get on their
feet and become self-suiiporting there can be no
political or economic stability in the world and no
lasting peace or prosperity for any of us. With-
out outside aid, the process of recovery in many
countries would take so long as to give rise to hoi^e-
lessness and despair. In these conditions freedom
and democracy and the independence of nations
could not long survive, for hopeless and hungry
people often resort to desperate measures. The
war will not be over until the people of the world
can again feed and clothe themselves and face
the future with some degree of confidence.
The contribution of the United States towards
world livelihood and reconstruction is best meas-
ured today not in terms of money but in terms of
the commodities which we ship abroad. It is com-
modities— food, clothing, coal, steel, machinery —
that the world needs, and it is commodities that we
must concentrate our attention upon.
Our exports of goods and services to the rest of
the world during the current year, 1947, are esti-
mated to total 16 billion dollars, an all-time peace-
time high. Before the war our exports of goods
and services fluctuated around 4 billion dollars
annually.
It is difficult to imagine 16 billion dollars' worth
of commodities. This represents one month's
work for each man and woman in the United
States, one month's output from every farm, fac-
tory, and mine.
Let me give you another indication of the extent
of our exports. The volume of commodities now
moving out of east coast and Gulf ports of the
United States is twice as great as the peak volume
which moved out of those ports during the war
when we were transporting and .-upplying not only
992
our own huge armies abroad but a tremendous
volume of lend-lease suj^plies.
Our exports this year are perhaps the maximum,
in quantity, that is likely to be exported abroad in
the next few years. At the same time these ex-
ports are probably the minimum that we should
make available to the world.
It is extremely difficult under present circum-
stances to increase the volume of our exports fur-
ther. For in this countrj', too, there is a great de-
mand for commodities, and foreign customers must
comiDete with American customers. The charac-
ter and composition of our exports will probably
change, with lesser quantities of food, fuel, and
raw materials being exported and increased
amounts of steel, machinery, and other manufac-
tured products going abroad. But the total vol-
ume of exports is not likely to inci-ease substan-
tially until the world gets soundly on its feet and
a genuine world prosperity may carrj' a healthy
multilateral trade to higher levels.
In return for the commodities and services which
we expect to furnish the world this year, we esti-
mate that we will receive commodities and serv-
ices from abroad to the value of about 8 billion
dollars. This is just about half as much as we are
exporting. This volume of imports is equal to
about two weeks' work of all the factories, farms,
mines, and laborers of the United States, and con-
sists largely of things which are not produced in
this country in sufficient quantity. We wish that
the imports were larger, but the war-devastated
world is just not able to supply more.
The difference between the value of the goods
and services which foreign countries must buy
from the United States this year and the value
of the goods and services they are able to supply
to us this year will therefore amount to the huge
sum of about 8 billion dollars.
How are foreigners going to get the U.S. dollars
necessary to cover this huge difference? And how
are they going to get the U.S. dollars to cover a
likely difference of nearly the same amount next
year? These are some of the most important ques-
tions in international relations today.
Of this year's difference between imports and
exports, more than .5 billion dollars is beinjr fi-
nanced by loans and gi'ants-in-aid from the United
States Government, through such instruments as
direct relief, the Export-Import Bank, the Inter-
national Bank, the International Fund, and the
loan to Great Britain. Funds for this purpose
Department of State Bvllet'm
have already been authorized by Congress. The
remainder of this year's deficit will be covered by
private investments, remittances of American citi-
zens abroad, and by drawing down the extremely
limited foreign resei'ves of gold and foreign ex-
change.
But what of next year, and the year after that?
Continued political instability and "acts of God''
are retarding recovery to a greater degree than had
been anticipated. The extreme need of foreign
countries for American products is likely, there-
fore, to continue undiminished in 1948, while the
capacity of foreign countries to pay in commodities
will probably be only slightly increased. Under
existing authorizations, considerable sums will be
available to offset next year's deficit. But these
funds will taper off rapidly during the latter part
of 1948. The need, however, will decline very little
if at all.
This is not a bright picture. But we must face
up to the facts on the rate of world recovery. It
has been widely overlooked that after the first
World War it was only in 1925 that the world ar-
rived at the 1914 level of economic activity. And
World War II was many times more destructive
than World War I. In the late war nations
planned on a vast scale and executed with new and
tremendously improved weapons the destruction
of the enemjf's economic resources, with enormous
success. Recovery will therefore be correspond-
ingly slow.
One more thing to be considered is that as great
as is our supply of commodities and services to
the world during the current year, it is still far
short of what the people of the woi'ld need if they
are to eat enough to maintain their physical
strength and at the same time carry on essential
measures of reconstruction and become self-sup-
porting. This will be true until the other work-
shops and granaries of the world are back in full
production.
What do these facts of international life mean
for the United States and for United States foreign
policy ?
They mean first that we in the United States
must take as large a volume of imports as possible
from abroad in order that the financial gap be-
tween what the world needs and what it can pay
for can be narrowed. There is no charity involved
in this. It is simply common sense and good busi-
ness. We are today obliged from considerations
May 18, 1947
THE RECORD Of THB WBBK
of self-interest and humanitarianism to finance a
huge deficit in the world's budget. The only sound
way to end this deficit financing is by accepting in-
creased quantities of goods from abroad. There
can never be any stability or security in the world
for any of us until foreign countries are able to
pay in commodities and services for what they
need to import and to finance their equipment needs
from more normal sources of investment.
Today in Geneva our negotiators are meeting
with representatives of 17 other countries in an
effort to negotiate a mutual reduction in trade
barriei-s and an agreement upon fair rules to gov-
ern international trade. This is one of the ways
in which we are attempting to face up to the real-
ities of international life. The Geneva confer-
ence must succeed. The International Trade Or-
ganization must be established.
The Geneva conference must succeed not only
because of the emergency supply and financial sit-
uation that exists today, but also because our posi-
tion as the world's greatest producer and creditor
nation demands that for a long period to come we
accept an ever larger volume of imports. ^Vlien
the process of reconversion at home is completed,
we are going to find ourselves far more dependent
upon exports than before the war to maintain
levels of business activity to which our economy
has become accustomed.
The facts of international life also mean that
the United States is going to have to undertake
further emergency financing of foreign purchases
if foreign countries are to continue to buy in 1948
and 1949 the commodities which they need to sus-
tain life and at the same time rebuild their econ-
omies. Requests for further United States aid
may reach us through the International Bank, or
through the Export-Import Bank, or they may be
of a type which existing national and interna-
tional institutions arc not equipped to handle and
therefore may be made directly through diplo-
matic channels. But we know now that further
financing, beyond existing authorizations, is going
to be needed. No other country is able to bridge
the gap in commodities or dollars.
This leads directly to a third imperative for
our foreign policy. Since world demand exceeds
our ability to supply, we are going to have to con-
centrate our emergency assistance in areas where it
will be most effective in building world political
and economic stability, in promoting human free-
dom and democratic institutions, in fostering lib-
993
THE RECORD OF THE WBCK
eral trading policies, and in strengthening the au-
thority of the United Nations.
This is merely common sense and sound prac-
tice. It is in keeping with the policy announced
by President Truman in his special message to
Congress on March 12 on aid to Greece and Tur-
key. Free peoples who are seeking to preserve
their independence and democratic institutions
and human freedoms against totalitarian pres-
sures, either internal or external, will receive top
priority for American reconstruction aid. This is
no more than frank recognition, as President Tru-
man said, "that totalitarian regimes imposed on
free peoples, by direct or indirect aggression, un-
dermine the foundations of international peace
and hence the security of the United States."
The fourth thing we must do in the present sit-
uation is to push ahead with the reconstruction of
those two great workshops of Europe and Asia —
Germany and Japan — upon whicli the ultimate re-
covery of the two continents so largely depends.
This is what Secretary Marshall meant when he
reported to the nation on April 28 that action on
behalf of European recovery cannot await "com-
promise through exhaustion", and that we must
take whatever action is possible immediately, even
without full Four Power agreement, to effect a
larger measure of European, including German,
recovery. European recovery cannot be complete
until the various parts of Europe's economy are
working together in a harmonious whole. And
the achievement of a coordinated European econ-
omy remains a fundamental objective of our for-
eign policy.
Finally, in order to carry out an economical and
effective policy of relief and reconstruction along
the foregoing lines, your Government is going to
need the extension by Congress of certain execu-
tive powers over the domestic sale, transportation,
and exportation of a limited list of commodities.
Such controls have been in effect during the war
and are still in effect under the President's war
powers, but are due to expire June 30th of this
year. It is vitally imjjortant that these controls
be renewed. It is commodities that are needed in
critical areas abroad, not just money. It is wheat
and coal and steel that are urgently required to
stave off economic collapse, not just dollar credits.
Your Government must therefore be able to in-
sure equitable distribution of supplies as between
the domestic economy and the export demand.
This requires the extension of allocation powers
994
with respect to a limited list of commodities certi-
fied by the Secretary of State and the Secretary of
Commerce as critical to the foreign economic
policy of the United States. Powers to assign
priorities directly to producing firms will be nec-
essary for a still more restricted list of it^ms. At
the same time, a continuation of export controls is
required in order to direct exports where we want
them to go and to cut down unnecessary and im-
desirable foreign buying in the domestic market.
Power to assign priorities on transportation is
also needed. This power is needed in order to in-
sure the efficient use of transportation facilities,
jjarticularly freight cars. Without such authority
it will be difficult to move bulky export commodi-
ties such as coal and grain in the required quan-
tities.
Finally, certain legislation which would enable
the Maritime Commission to insure maximum
availability and efficient use of shipping is re-
quired in order to insure the success of our export
programs with respect to bulky items such as coal
and grain.
Legislative proposals of this nature have been
presented to Congress, or will be presented in the
near future. It is of the greatest importance to
the foreign economic policy of this country, and
thus to the security and well-being of the nation,
that these powers be granted.
There is a story going the rounds about a man
who, after listening to an extended lecture on the
grave financial and economic difficulties of north-
ern Europe and Great Britain, remarked, "And,
just think, all the trouble was caused by a blizzard".
I think we will all agree that something more
than a blizzard has caused Europe's current diffi-
culties. But last winter's blizzard did show up the
extremely narrow margins of human and national
subsistence which prevail in the world today, mar-
gins so narrow that a blizzard can threaten popu-
lations with starvation and nations with bank-
ruptcy and loss of independence.
Not only do human beings and nations exist in
narrow economic margins, but also human dignity,
human freedom, and democratic institutions.
It is one of the principal aims of our foreign
policy today to use our economic and financial re-
sources to widen these margins. It is necessary if
we are to preserve our own freedoms and our own
democratic institutions. It is necessary for our
national security. And it is our duty and our
privilege as human beings.
Department of State Bulletin
Soviet Position on Resumption of Joint Commission on Korea
LETTER RECEIVED MAY 9, 1947, BY THE SECRETARY OF STATE
FROM THE SOVIET FOREIGN MINISTER
May 7, 19^7
Dear Mr. Marshall : 1 acknowledge receipt of
your letter of May 2 ^ concerning the resumption
of the work of the Joint Soviet-American Com-
mission on Korea.
Your proposal, as I understand it, is to the effect
that before the resumption of the work of the
Joint Commission an agreement should be reached
concerning the conditions for consultation with
Korean democratic parties and social organiza-
tions.
This question was the subject of an exchange
of correspondence between the Soviet and Amer-
ican Commanders in Korea as a result of which,
as I already answered in my previous letter, the
points of view of the two sides were brought con-
siderably closer.
The Soviet Commander in his letter of Novem-
ber 26, 1946 advanced the following proposals as
a basis for the resumption of the work of the Joint
Commission :
"1. The Joint Commission must consult those
democratic parties and organizations which up-
hold fully the Moscow decision on Korea.
"2. Parties or social organizations invited for
consultation with the Joint Commission must not
nominate for consultation those representatives
who have compromised themselves by actively
voicing opposition to the Moscow decision.
"3. Parties and social organizations invited for
consultation with Joint Commission must not and
will not voice opposition nor will they incite others
to voice opposition to Moscow decision and the
work of the Joint Commission. If such be the
case such parties and social organizations by mu-
tual agreement of both delegations will be ex-
cluded from further consultation with the Joint
Commission."
The American Commander in his letter of De-
cember 24, 1946 agreed to accept these proposals
of the Soviet Commander with the following
changes as the basis for the resumption of the
work of the Joint Commission :
May 78, J947
"Proposal number 1 to be interpreted as fol-
lows: signing the declaration in communique
number 5 will be accepted as declaration of good
faith with respect to upholding fully the Moscow
decision and will make the signatory party or
organization eligible for initial consultation.
"Proposal number 2, I consider it the right of
a declarant party or organization to appoint the
representative which it believes will best present
to the Joint Commission its views on the imple-
mentation of the Moscow decision.
"However, should such representative for good
reason be believed to be antagonistic to the imple-
mentation of the Moscow decision or to either of
the Allied powers, the Joint Commission may,
after mutual agreement, require the declarant
party to name a substitute spokesman.
"Proposal number 3, it is suggested that it be
reworded as follows : individuals, parties and so-
cial organizations invited for consultation with
the Joint Conimission should not after signing
the declaration contained in communique num-
ber 5 foment or instigate active opposition to the
work of the Joint Commission or to either of the
Allied powers or to the fulfillment of the Moscow
decision.
"Those individuals, parties and social organiza-
tions which after signing the declaration con-
tained in communique number 5 do foment or in-
stigate active opposition to the work of the Joint
Commission or to either of the Allied powers or to
the fulfillment of the Moscow decision shall be ex-
cluded from further consultation with the Joint
Commission.
"The decision excluding such individuals, par-
ties, and social organizations shall be by agree-
ment of the Joint Commission."
With a view to expediting the resumption of the
work of the Joint Commission and the creation
of a temporary Korean democratic government,
I am prepared to accept the amendments set forth
above proposed by the American Commander. I
hope that there will thus exist no further reasons
' BuiXETiN of May 11, 1947, p. 947.
995
THE RECORD Of THB WEEK
for postponing the convocation of the Joint Com-
mission.
In your letter you state that the Government of
the United States is at the present time considering
a constructive program for the reconstruction of
Korean economy and its cultural and political de-
velopment. I presume that the Joint Commission,
in accordance with the Moscow Agi'eement on
Korea, after the completion of the work connected
with the formation of a provisional Korean demo-
cratic government should consider with the par-
ticipation of this government proposals from the
American and Soviet sides concerning measures
of aid and assistance for the political, economic,
and social progress of the Korean people, the de-
velopment of democratic autonomy, and the estab-
lishment of the state independence of Korea and
present agreed recommendations on these ques-
tions.
I am sending a copy of this letter to the Govern-
ments of the United Kingdom and China.
Please accept [etc.] V. Molotov.
Economic Stability as Basis for
Politicai Harmony
MESSAGE FROM SECRETARY OF STATE TO
TKE UNITED STATES ASSOCIATES
[Released to the press May 9]
Text of a message from the Secretary of State
to Philip D. Reed, of the United States Associates,
expressing regret at being unable to atteiid their
dinner on May 6, 19^7, at New York City
I regret that I cannot be with you at your meet-
ing this evening because of the great importance
of the subjects with which you are dealing.
Since becoming Secretary of State I have spent
most of my time in international political nego-
tiations. This experience has reenforced my con-
viction that enduring political harmony rests
heavily upon economic stability. A lasting peace
demands international economic arrangements,
whereby natural resources, plant and equipment,
and manpower are fully and productively em-
' For text of agreement see Department of State press
release .S84, M.ay .5, 1947.
996
ployed. The goods and services produced must
flow through domestic and international trade
channels. In no other way can we create an eco-
nomic and social environment free from the unrest
in which political instability is bred.
Mr. Clayton, head of a United States Delegation,
is now working in Geneva with the representatives
of 17 other nations to remove excessive barriers to
trade and to write into the charter for an Inter-
national Trade Organization a code of good con-
duct for international trade relationships. Tliis is
a basic part of our general foreign policy. The
success of these meetings will have a direct relation
to the success of our peace efforts.
The roots of this policy reach far down into the
basic interests of all of our people. Its benefits
will redound to all. Our immediate job is to assure
its effectuation. That is the challenge and the re-
sponsibility of all of us who earnestly seek an
enduring peace.
Air Agreement With Syria
An air-transport agreement between the United
States and Syria was signed at Damascus on April
28, 19-47, with Charge d'Affaires James S. Moose,
Jr., signing on behalf of this Government, and
Prime Minister Jamil Mardam Bey signing for
Syria.^
The following routes are designated in the aimex
to the agreement :
A. Airlines of the United States of America
authorized under the present agi-eement are ac-
corded rights of transit and non-traffic stop in
Syrian territory, as well as the right to pick up
and discharge international traffic in passengers,
cargo, and mail, at Damascus on the following
route :
The United States of America through
Europe and Turkey to Syria and beyond to
India ; via intermediate points, in both direc-
tions.
B. Airlines of Syria authorized under the pres-
ent agreement are accorded rights of transit and
non-traffic stop in United States territory as well
as right to pick up and discharge international
traffic in passengers, cargo, and mail in the United
States on a route or routes as may be determined
at a later date fi-om Syria via intermediate points
to the United States, in both directions.
Department of State Bulletin
Some Aspects of Our Policy in Greece and Turkey
BY HENRY S. VILLARD >
Your kind invitation for me to speak here I feel
sure is a direct consequence of your interest in for-
eign affairs. The title of your organization itself,
Eotary International, indicates that the sco^se of
your thinking extends beyond your own personal
affairs and home communities and even transcends
national boundaries.
Indeed, it is obvious that American citizens gen-
erally are showing more interest than ever before
in the world about them — and with good reason.
We in the Department of State are daily impressed
with the increased awareness of our people in re-
gard to the importance of international affairs in
the lives of all the individuals who go to make up
the United States.
The American people seem to have grasped the
salient fact that our country emerged from the
recent war with vastly greater powers and respon-
sibilities, which in turn magnify the duties and
obligations of its officials and citizens alike. This
sobering truth has on the whole been accepted with
courage and resolution. Nevertheless, I am con-
vinced that there is need for more detailed infor-
mation on the problems and policies of the United
States in the field of foreign affairs. I believe that
the people wish to have current developments ex-
plained to them in plain and unvarnished terms,
so that they may understand fully what is likely to
be required of the Nation and of them. In the
vernacular, the American people want to know
what the score is.
Tonight, I propose to discuss some aspects of our
current policy in Greece and Turkey.
The President's speech of March 12 I'equesting
aid for Greece and Turkey produced an immediate
and favorable response not only in this country
but abroad. At the same time, many independent
and liberal thinkers gave expression to certain
feai's and doubts concerning the wisdom of this
policy — a policy which has received the approval
of the United States Senate by a most decisive
vote. For example, the question has been asked,
"Will it make war more likely?" Some people
seem to be afraid that we are turning to ruthless
imperialism, intervening directly in the internal
affairs of otlier nations. Others appear to be
afraid that we are not — that we are merely sup-
porting so-called reactionary regimes without
bringing pressure to bear to introduce our own
concept of democracy. Still others are unable to
comprehend why the whole business of aid to
Greece and Turkey, involving an appropriation
of $400,000,000 for economic and military pur-
poses, cannot conveniently be handed over to the
organization of the United Nations — born just two
years ago at San Francisco.
I think it is interesting to note that these argu-
ments are precisely what has been heard on the
Moscow radio and publicized in the Russian press.
Sharp condemnation of President Truman's policy
has been the Russian reaction : it is imperialistic,
it is reactionary, it endangers peace, it aims at
world domination. To understand this a little
better, it may be useful to examine the situation
more closely from the American viewpoint.
You are all sufficiently well informed, I am
sure, of the state of affairs in Greece which led to
the desperate appeal of the Greek Government and
its people to the Government of the United States
and the American people on March 3, 1947. This
ajjpeal recited the systematic devastation of
Greece, the decimation and debilitation of her peo-
ple, and the destruction of her economy through
invasion and protracted enemy occupation, as well
as through the internal disturbances which fol-
lowed in the wake of war. It set forth the urgent
need for financial, economic, and expert assistance
to attack the problems of reconstruction and to
enable Greece to survive as a self-respecting, inde-
pendent nation. It said candidly that the destruc-
tion in Greece had been so complete as to rob the
Greek people of the power to meet the situation
by themselves.
We should remember that in addition to its
economic plight, the Greek Government was and
still is waging a difficult and inconclusive battle
with armed bands on her northern boundaries, all
'Address made before the annual district conference of
tlie 194th Rotary district at Charlotte, N.C., on May 5,
1947, and released to the press on the same date. Mr.
Villard is Deputy Director of the Office of Near Eastern
and African Affairs, Department of State.
May 78, 1947
997
THE RECORD Of THE WEEK
of which keeps the country in a state of turmoil,
promotes the conditions on which despair and
misery breed, and effectively prevents normal post-
war recovery. There is ample evidence in our pos-
session that these armed bands are being led by
Communists and supplied in part from sources
across the Greek frontier.
Wliat were we to do in this emergency?
Reports which have been received by our Gov-
ernment from its representatives in Greece clearly
indicate that unless substantial economic support
can be given, conditions in that country will de-
teriorate to a point where the democratic repre-
sentative government will be forced to succumb to
the onslaught of minority groups seeking the
establishment of a totalitarian dictatorship.
Many people ask why the United States is now
concerned with this situation. You know, of
course, that the British Government because of its
historic interest and connections in the area had
been supplying the Greek civilian and military
needs until, a couple of months ago, it found itself
unable to do so any longer. The economic situa-
tion of Great Britain is so serious and so well
known that it does not have to be explained here.
Suffice it to say that on February 24, 1947, the
British Government informed us that it was no
longer in a position to bear the financial responsi-
bilities it had hitherto been carrying with regard
to Greece, and that, in its opinion, unless this aid
were continued Greece could not hope to survive
as an independent country. Since our own inter-
ests are involved in this matter, we have found it
necessai-y to face up squarely to the unavoidable
issue — will we or will we not help Greece?
It should be obvious that no reconstruction can
take place in Greece while organized armed groups
defy the authority of the state and foster economic
chaos, with the ultimate objective of seizing con-
trol of the government by force. The problem con-
fronting us, in view of the inability of Great
Britain to carry on, is to so strengthen the eco-
nomic structure and the internal security of Greece
that it can be relieved of the danger presented by
an armed subversive minority and proceed peace-
fully to the building up of an independent, demo-
cratic nation.
We offer no apologies for the present government
of Greece. It obviously does not in certain respects
conform to our particular standards of perfection,
but we are satisfied as to two things. The first is
998
that the members of its Parliament were elected
fairly and freely a year ago by the people of Greece
under the eyes of more than a thousand observers —
American, British, French, and South African —
and that the present Cabinet i-epresents at least
85 percent of the Parliament. It will be recalled
that the Soviet Government was invited to join
in the sujiervision of these elections but declined
to do so. The second point is that by long-stand-
ing tradition and by their heroic resistance to Axis
aggression the Greek people have earned the right
to be classed among those who prefer our way of
life to any other.
I should like to emphasize also that with the
encouragement of the United States and British
Governments, the Government of Greece during
the past year has attempted on more than one
occasion to broaden the base of its representation.
These attempts have borne visible fruit under
Prime Minister Maximos, and it would be our
policy to encourage further steps to increase the
representative character of the Greek Government.
On the other hand it is obvious wherever we look
that the result of totalitarian regimes is to narrow
and restrict the base of representation in the
government.
In his speech on March 12, the President said :
"At the present moment in world history nearly
every nation must choose between alternative ways
of life. The choice is too often not a free one.
"One way of life is based upon the will of the
majority and is distinguished by free institutions,
representative government, free elections, guar-
antees of individual liberty, freedom of speech and
religion, and freedom from political oppression.
"The second way of life is based upon the will
of a minority forcibly imposed upon the majority.
It relies upon terror and oppression, a controlled
press and radio, fixed elections, and the suppression
of personal freedoms."
The President also expressed the belief that "it
must be the policy of the United States to support
free peoples who are resisting attempted subjuga-
tion by armed minorities or by outside pressures"
and that "our help should be primarily through
economic and financial aid which is essential to
economic stability and orderly political processes".
Our decision to aid the Greek people to main-
tain their way of life has, of course, a humanitarian
motive. We dislike to see a small country threat-
Department of State Bulletin
ened by the loss of its independence through exter-
nal pressure and internal disintegration. Our
hearts are full of pity for helpless men, women,
and children who lack the means to put their own
house in order and to gain their daily bread. But
let's be a bit selfish about this too — we are support-
ing Greece because it is in our own self-interest to
do so.
I say this because Greece occupies a vital strate-
gic position in the eastern Mediterranean. If
democratic institutions in Greece should go under,
a glance at the map will show that Turkey would
be threatened and, in turn, the whole area of the
Near East. Surely we have learned enough from
our unwilling involvement in two terrible wars to
know that the spread over a large part of Europe
and the Near East of regimes based on the uncon-
trolled power of minorities would constitute an
ultimate threat to the foundations of international
peace and, therefore, to the security of the United
States. As the President put it: "The free peo-
ples of the world look to us for support in main-
taining their freedoms. If we falter in our leader-
ship, we may endanger the peace of the world —
and we shall surely endanger the welfare of our
own Nation."
As I see it, this challenge presents us with only
one course of action ; namely, to stand on our prin-
ciples and, sure of the rightness of our cause and
the strength of our economic and political struc-
ture, firmly and patiently seek to convince the rest
of the world that its salvation, as well as ours, lies
in genuine cooperation.
The willingness of the United States to cooper-
ate to the limit — short of surrender of our cher-
ished principles — is written in the record of our
Government and the words of its statesmen. Wlien
he was Secretary of State, Mr. Byrnes said, in one
of his many declarations on the subject : "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 Nvell as ourselves, to opinions
and ways of life which we do not and cannot
share."
The United States still desires to cooperate, but
the experience of recent months convinces us that
one-sided offers of cooperation are not enough.
Our readiness to cooperate, to achieve results, must
be accompanied by positive actions in behalf of the
principles for which we stand. This course must
be suppoi'ted by continued strengthening of the
American economy at home, as the impregnable
THE RECORD OF THE WEEK
base of democracy throughout the world. This is
essential to the national security of the United
States itself.
Now what about Turkey ? The geographic loca-
tion of Tinkey is even more important than that
of Greece. Strategically, it bears a direct relation
to the structure of international peace and secu-
rity, including the peace and security of the United
States. So long as Turkey is able to maintain its
integrity and independence, it forms a bastion pro-
tecting the Near and Middle East and gives the
countries of this area hope of following independ-
ent policies and of maintaining their own integrity
and indejjendence. Any crack in that edifice
would invite the most serious consequences.
Wliile pressure on Greece has been exerted both
externally and internally, the strong internal posi-
tion of Turkey has restricted the campaign against
her to external pressure alone. The Soviet Gov-
ernment officially has concentrated its effort on
attempts to obtain a favored position in supervi-
sion and control of the famous Straits of the Dar-
danelles. At the same time, the Russians have
advanced both direct and indirect demands for
the incorporation into the Soviet Union of terri-
tory in Turkey's eastern provinces — areas which
form an integral part of the Turkish state.
Historically, control of the Dardanelles, con-
necting the Mediterranean and the Black Sea, has
always been a bone of contention. In the last two
centuries, Russia fought eleven ware with Turkey
in unsuccessful efforts to gain control of that
strategic prize. In recent years, the status of the
Straits has been governed by the Montreux con-
vention of 1936, which the United States, Great
Britain, and the Soviet Union agreed at the Pots-
danr conference in 1945 should be revised to meet
changed conditions. The United States, which
was not a signatory to the Montreux convention,
expressed a willingness to become a party to the
new pact, and the Turks welcomed the calling of
a revisionary conference on that basis.
The Soviet Union, however, has proposed modi-
fications which would require Turkey to share
with Russia the defense of the Straits — which run
entirely through Turkish territory. This would,
in effect, give Russia military bases in the Straits
area. Not unnaturally, the Turks have I'ejected
the proposal as a threat to the territorial integrity
of their country.
Meanwhile, the Soviet press and radio, which
of course express the government's views, have
May 78, 1947
999
THE RECORD OF THE WEEK
conducted a persistent war of nerves against Tur-
key. Territorial demands that would dismember
the eastern provinces of Turkey have figured
prominently in the Soviet propaganda. The
plucky Turks have served notice that they will de-
fend themselves, alone if necessary, against any
aggi'ession and have kept a large force under arms
to back up their stand.
While we are on the subject of Turkey, let me
refer for a moment to the charges in certain quar-
ters that Turkey is not worthy of our help because
of her neutrality during most of the war and the
alleged assistance thus rendered to the Axis. To
set the record straight, it was decided at the
Tehran conference in December 1943- to invite
Turkey to declare war against Germany. Turkey
agreed to do so, provided adequate military sup-
plies were forthcoming from the Allies. It was
not possible for us to furnish such supplies because
preparations were even then under way for the
invasion on the western front in June of 1944, and
we were in no position at that time to undertake the
additional commitment. At best, a belligerent
Turkey could have served the Allied cause only by
keeping Axis troops from occupying her terri-
tory— a result achieved anyway by her continued
neutrality. Moreover, the record is replete with
instances in which Tiu-key provided aid and com-
fort to elements of the Allied forces. In the
opinion of the United States Government, Turkish
neutrality was, in fact, of definite assistance to the
Allies.
The heavy cost to Turkey today of keeping her
army mobilized and ready, and the consequent
drain on the nation's economic resources, have
made it necessary for the Turks to seek support
from the United States for the purpose of main-
taining their independence. As in the case of
Greece, Great Britain has in the past afforded
economic and financial support to Turkey and now
finds it impossible to do so. Again, the problem
has been put up to us as to whether we shall assist
a free and independent country to remain such.
Since it is in our own interest to do so, we now pro-
pose to implement with our resources a policy
which has been previously sustained primarily
with British resources. The policy itself is not
new.
Judging by the past, who can doubt that if an
anti-democratic regime once became entrenched
in Greece and astride the Straits, this area would
become a new base for still further expansion in
1000
the Middle East, through the familiar tactics of
intimidation, infiltration, and propaganda?
One further question remains : Wliy the problem
of aid to Greece and Turkey was not handled by
the United Nations. In the first place, the appeal
of the Greek Government in its moment of crisis
was made directly to the United States, while eco-
nomic and military assistance for Turkey had for
some time been a matter for discussion between
our Government and the Turkish Government.
But it might be objected that this is a technical-
ity and does not consider the broader aspects of
the subject. In this respect also, I feel that our
Government acted wisely. For, because of the
critical and threatening situation confronting
Greece and Turkey, time was of the essence. Let
me ask you what might have happened if the mat-
ter had been formally referred to the United Na-
tions— disregarding, for the moment, the fact that
the United Nations has no fmids for such pur-
poses anyway.
In the light of the record so far, can anyone
doubt that a long, drawn-out debate would have
ensued, accompanied by the numerous objections
and exasperating delays which we have become ac-
customed to exj^ect from the Soviet Delegates and
their associates? Is it logical to expect that the
Soviet members of the United Nations would have
moved swiftly and sympathetically to consider a
policy which the Soviet press and radio have
charged was "directed against democratic elements
in Greece" ? Is it not possible that if the issue had
been brought for decision to the Security Council,
we should have found ourselves at long last
trapped on a dead-end street, with a veto blocking
the way ? What would have happened meanwhile
in Greece and Turkey ?
I personally believe that we can best serve the
cause of the United Nations itself by assessing
both the strength and the weakness of the United
Nations and frankly recognizing its present lim-
itations as well as its potentialities. I sometimes
wonder if the American people have not made the
mistake of regardiilg the United Nations as a sort
of mechanical marvel, assuming it will operate au-
tomatically to produce solutions to difficult ques-
tions. The truth is, of course, that the United
Nations is not a mechanism into which we can drop
problems and, by turning the crank, have satisfac-
tory answers come out the other end, untouched by
human hand.
I have said that the United Nations has no funds
Deparfmenf of State Bulletin
for assisting Greece and Turkey. While it is true
that the International Bank, an affiliated organiza-
tion, has financial resources, it is not designed to
furnish money for the purpose of strengthening
the security of a member country or to provide
consumption goods, which are the two greatest im-
mediate needs of Greece and Turkey. As their
needs change, it is our expectation that both coim-
tries will be able to draw on the Bank to rehabili-
tate and develop their economy.
The United Nations, as I see it, is a human insti-
tution, and its members are subject to human falli-
bility; certainly the United Nations is capable of
developing through experience to maturity and
wisdom. I believe it can rise to heights of great
moral grandeur, such as man himself on occasion
can attain. But we would do the United Nations,
now in the formative stage, a grave injustice to
expect it to undertake tasks which it is not yet
prepared to perform.
Our objective is to build the United Nations into
a body of healthy member states, each secure in the
knowledge that it may act freely and independ-
ently without fear of outside domination or con-
trol. That is tlie fundamental question in the case
of Greece and Turkey. The successful evolution
of the United Nations into an organ of true inter-
national cooperation requires that the integrity
and independence of Gi'eece and Turkey be pre-
served— and the only effective way to insure that is
by prompt American action.
I do not have to tell you that thS cornerstone of
American foreign policy is the maintenance of
world peace. If there is anything on which the
people of this country are united, it is the desire to
eliminate war from the course of human existence.
I am likewise convinced that this is the basic hope
and aim of the peoples of all countries. Certainly
it would be inconceivable for a government repre-
senting the people of the United States to take
any action which in its opinion was not designed
to promote the attainment of that great ideal.
It is our sincere desire to collaborate with all
peoples of the world, and in that I naturally in-
clude the Russian people. Those who really know
us, I am persuaded, understand full well that it is
not our wish to dominate, intimidate, or threaten
the security of any nation, large or small. As
Senator Austin, the United States Delegate, told
the United Nations Security Council on March 28,
in discussing the Greek-Turkish case, we "will sup-
port collective security for all nations — large as
lAay 18, 1947
ine RECORD OF 7HE WEBK
well as small." The United States, Senator
Austin added, respects "the right of all members of
the United Nations to follow whatever way of life
or system of government they choose, so long as
the choice is fi'eely made without intimidation and
so long as such nations do not interfere with the
rights of other countries or the liberties of other
peoples."
Senator Austin also told the Security Council :
"The United States regards it as an obligation
under the Charter, as well as a matter of ele-
mentary self-interest, for every member of the
United Nations to do its utmost to bring about the
peaceful adjustment of any international situation
iefore it becomes a threat to the peace."
That, it seems to me, is the primary lesson we
should have learned from two world wars. I be-
lieve that a firm and steadfast policy on our part,
far from being likely to draw us into a war, is the
best way to assure peace, by convincing the leaders
of other countries that our brand of democracy is
here to stay. Those leaders, after all, are realists ;
they know that "facts are stubborn things, and will
not down". While we confront them with the
facts of democratic strength and the force of pub-
lic oi^inion in the free world, let us inform all peo-
ples— in ways that penetrate even the Iron Cur-
tain— that we desire only cooperation and friend-
ship with them.
Peace is the great goal, but, as we see, it is not
easily won. This country and its Government
recognize the difficulties, but these only strengthen
our determination. In the cause of peace we in-
tend to aid Greece and Turkey. We extend the
hand of friendship to all peoples who will join
with us in honest labor for that same great cause.
Aid to Greece and Turkey
A supplement to the Department of .State
BuiiETiN entitled "Aid to Greece and Turkey",
publication number 2802, dated May 4, 1947, will
appear at an early date. The supplement will
include the President's recommendations to Con-
gress for aid to Greece and Turkey ; testimonies
by State Department officials at congressional
hearings ; statement by Ambassador Austin be-
fore the Security Council ; and a summary of the
report and recommendations of the American
Economic Mission to Greece.
1001
Request to Poland Concerning Gold From Portugal
Text of American note delivered to the Polish
Goverrwnent on May 6, 1947. {The British a/nd
French Governments delivered shnilar notes at
the same time)
The Embassy of the United States of America
presents its compliments to the Minister of For-
eign Affairs and has the honor, under instructions
from its Government, to inform the Ministiy that
the Government of the United States has received
information that gold is being considered as the
manner of payment for coal purchased from Po-
land by Portugal through the intermediary of the
Nehaba Corporation, Zurich, Switzerland.
The Government of the United States well un-
derstands and is sympathetic with the desire of
the Government of Poland to develop trade with
Portugal. It would seem appropriate, however,
to recall that the Polish Government subscribed
to the resolutions which were adopted at the Bret-
ton Woods Conference and also to the Allied gold
declaration of February 22, 1944,^ and as there is
reason to believe that the Portugal Government
has in its possession an amount of gold which was
looted from Allied coimtries by the German au-
' Former Secretary of the Treasury Morgeuthau issued
the following declaration on Feb. 22, 1944 :
On January 5, 1943 the United States and certain
others of the United Nations issued a warning to all con-
cerned, and in particular to persons in neutral countries,
that they intend to do their utmost to defeat the methods
of dispossession practiced l)y the governments with which
they are at war against the countries and peoples who
have been so wantonly assaulted and despoiled. Fur-
thermore, it has been announced many times that one
of the purposes of the financial and property controls
of the United States Government is to prevent the liqui-
dation in the United States of assets looted by the Axis
through duress and conquest.
One of the particular methods of dispossession prac-
ticed by the Axis powers has been the illegal seizure
of large amounts of gold belonging to the nations they
have occupied and plundered. The Axis powers have pur-
ported to sell such looted gold to various countries which
continue to maintain diplomatic and commercial rela-
tions with the Axis, such gold thereby providing an im-
portant source of foreign exchange to the Axis and en-
abling the Axis to obtain much-needed imports from these
countries.
The United States Treasury has already taken meas-
ures designed to protect the assets of the invaded coun-
tries and to prevent the Axis from disposing of looted
1002
thorities, the United States Government is con-
fident that unless informed that the Portugal gold
settlement has been reached, the Government of
Poland would not wish to be a party to a trans-
action by which Allied countries, including Po-
land, might be deprived of receiving gold looted
from them. The United States Government wishes
to point out that even though Poland would re-
ceive Swiss francs, the 1944 gold declaration would
be violated if, arising out of or related to such a
transaction, Portuguese gold were to be made
available to the Nehaba Corporation.
The Government of the United States in agree-
ment with his Majesty's Government in the United
Kingdom and the Government of France therefore
expects that the Government of Poland will, on
the basis of Resolution VI ^ of the Bretton Woods
Conference and of the Allied gold declaration of
February 22, 1944, request the Portuguese Govern-
ment to furnish satisfactory evidence that the
Portuguese gold holdings do not comprise gold
which has been looted. In doing so, it would
greatly assist the task in which the Government of
the United States shares of obtaining the return
of looted gold to its owners.
currencies, securities, and other looted assets on the world
market. Similarly, the United States Government cannot
in any way condone the policy of systematic plundering
adopted by the Axis or participate in any way directly or
indirectly in the unlawful disposition of looted gold.
In view of the foregoing facts and considerations, the
United States Government formally declares that it does
not and will not recognize the transference of title to the
looted gold which the Axis at any time holds or has dis-
posed of in world markets. It furtlier declares that it
will be the policy of the United States Treasury not to
buy any gold presently located outside of the territorial
limits of the United State.s from any country which has
not broken relations with the Axis, or from any country
which after the date of this announcement acquires gold
from any country which has not broken relations with the
Axis, unless and until the United States Treasury is fully
satisfied that such gold is not gold which was acquired
directly or indirectly from the Axis powers or is not gold
which any such country has been or is enabled to release
as a result of the acquisition of gold directly or indirectly
from the Axis powers.
It is understood that a similar declaration is being
issued simultaneou.sly by the United Kingdom Treasury,
and by the Union of Soviet Socialist Republics.
= Bulletin of Oct. 8, 1944, p. 384.
Department of State Bulletin
Procedure for Filing Claims With Office
of Alien Property
[ Released to the press May 8]
The Department of State on May 8 reminded
persons in the United States that June 1, 1947, has
been set as the dead line for filing debt claims
against persons, corporations, and foreign govern-
ments whose property was vested by the Office of
Alien Property, Department of Justice, during
the war prior to January 1, 1947.
The Department of Justice has recently stated
that claims of American creditors against enemy
property seized before January 1, 1947, cannot be
considered unless filed by June 1, 1947.
To protect their interests, American holders of
securities issued by foreign countries and firms, as
well as other kinds of American creditors, should
seek information as to whether assets of their
debtors have been vested, by communicating with
the Office of Alien Property, Department of
Justice, Washington 25, D.C., or with any United
States Attorney's office in the United States.
Forms necessary for filing claims may also be
procured from the Office of Alien Property or
from any United States Attorney's office.
Air-Transport Agreement With
Argentina
The Department of State announced on May 6
the terms of the bilateral air-transport agreement
signed between the United States of America and
Argentina on May 1, 1947."
This agi-eement substantially follows the prin-
ciples incorporated in the other bilateral air-
transport agreements entered into by the United
States with various countries, being modeled on
the Chicago standard-form agreement and the
Bermuda agreement between the United States
and the United Kingdom.
No routes or traffic points were agreed upon at
the time of the signing of the agreement, but these
will be negotiated and agreed upon at future dates.
Argentine Architect Visits U.S.
Martin Noel, eminent Argentine architect and
president of the Argentine Academy of Fine Arts
of Buenos Aires, is visiting the United States at
the invitation of the Department of State. Wliile
in the United States he plans to visit educational
centers, art museums, galleries, and libraries and
May 18, 7947
THE RECORD OF THE WCCK
observe the systems under which these institutions
operate. Wlierever possible he hopes to study de-
velopments in city planning, housing, and public
woi'ks such as power plants, canals, and dams.
Mr. Noel will spend approximately four months
in the United States, and plans to visit Washing-
ton, Philadelphia, New York, New Haven, Boston,
Cleveland, Chicago, and Pittsburgh. He will be
accompanied by his wife.
Proposed U.S.-Panama Agreement on
Use of Defense Sites in Panama
[Released to the press May 5 J
The United States Ambassador to Panama,
Frank T. Hines, handed a formal communication
to the Foreign Minister of the Republic of Panama,
Eicardo J. Alfaro, on May 5, proposing a new
agreement between the two Governments for the
use of defense sites in Panama.
This agreement, when signed by representa-
tives of both Governments, will replace the accord
of May 18, 1942. Under the former agreement the
Republic of Panama made available 134 areas in
its national territory for use by United States
armed forces in defense of the Panama Canal. Of
that total 98 sites have now been turned back to
Panama. Only 36, a majority of which comprise
technical installations essential to safe aerial
navigation, are still in use by United States
authorities.
For some time the two Governments have been
studying together the lessons learned during the
recent war as they affect Canal defense and have
been considering current and future requirements
for its protection. The agreement now proposed
is designed to insure continuous operation and ef-
fective protection of the Canal as provided in the
treaty of friendship and cooperation signed by the
two countries in 1936. It gives recognition to the
fact that requirements of modern defense make
necessary the use of certain areas outside the
10-mile-wide Canal Zone for the protection of the
international waterway which is so vital to the
interests of the United States, Panama, and the
entire hemisphere.
The proposal of the United States provides for
the appointment by the two Governments of rep-
resentatives who will jointly administer the
agreement.
' For text of agreement, see Department of State press
release 387 of May 6, 1947.
1003
I
Educational, Scientific, and Cultural Cooperation With Mexico
During the visit of President Aleman of Mexico
to the United States, a full report was presented
throughout Mexico by the Office of International
Information and Cultural Affairs of the Depart-
ment of State through the American Embassy at
Mexico City. Supplementing coverage of the
President's visit by American news agencies which
are largely concentrated in the Mexican capital,
the OIC staff in Mexico City distributed back-
ground material and photographs to about 50
newspapers and publications outside of Mexico
City.
In addition to supplying material in Spanish on
the points of interest visited by the President,
the OIC staff arranged for the showing of docu-
mentary movies on Washington, New York, West
Point, TVA, and the Midwest in schools and exhi-
bition halls in Mexico, through 44 motion-picture
projectors loaned by the Embassy. Before Presi-
dent Aleman left Mexico, the OIC staff supplied
background material in Spanish on the United
States to the 50 Mexican news and radiomen ac-
companying him on his trip.
The visit of President Truman to Mexico last
March and the present return visit of President
Aleman highlight a program begun during the war
years in which the people of Mexico have been bet-
ter informed about the United States than ever
before through the media of motion pictures, radio,
press and publications, and scientific and technical
cooperation. It is an example of American for-
eign-information policy in the nearest foreign-
language country to the United States.
The OIC staff in Mexico functions under the
direction of Ambassador Walter Thurston. Five
Americans in the staff include two Foreign Serv-
ice career men, and three former news and maga-
zine writers who have lived and worked in various
parts of the United States. They supervise the
work of 17 Mexican employees, including trans-
lators, news and feature writers, and clerks.
Facts and figures on the informational and cul-
tural program in Mexico show that millions of men
and women are learning more about the United
States each month, and are receiving elemental
instruction on all phases of life in the United
States.
1004
Through the cooperation of Mexican Govern-
ment agencies with the American Embassy, docu-
mentary films are shown in 179 towns throughout
Mexico more than 2,000 times a month and are
seen by an audience averaging about one and a
half million persons a month. These films tell the
story of American agriculture and industry, the
fundamentals of health and sanitation, and some-
times, in a mixture of entertainment with instruc-
tion, the human side of life in a small American
town.
The secretaries of the Mexican Departments of
Public Education, Public Health, Agriculture, and
Labor all have asked the American Embassy for
an expansion of the present motion-picture pro-
gram in a national campaign to combat illiteracy
and raise the standard of living in Mexico. The
Mexican Government hopes eventually to install
motion-picture projectors in schools throughout
Mexico.
In the field of intellectual cooperation, the Ben-
jamin Franklin Library, established in Mexico
City in 1942, circulates nearly 20,000 books to over
10,000 registered borrowers and many others who
come to the library for research and reading. The
library sponsors two local radio programs in which
instruction in the English language is given for
15-minute periods three times a week. In addi-
tion, the Institiito Mexicano-Norteamericano de
Relaciones Culturales, sponsored by OIC, now is
conducting classes in English for about 2,800 Mexi-
can nationals, many of whom pay for their lessons.
News and feature material is distributed through
the Embassy to 50 newspapers and other publica-
tions throughout Mexico, and an average of more
than 500 items is published each month. This
material includes features based on news items of
particular interest to Mexico, background articles
on educational and industrial developments in the
United States, and official texts from the daily
State Department Wireless Bulletin, sent to
Mexico City from Washington by air mail.
Scientific and technical aid for the development
of Mexican agriculture and industry and the
eventual development of markets for American
enterprise is provided through the Interdepart-
Department of Sfa/e Bulletin
mental Committee on Scientific and Cultural Co-
operation. This committee includes experts of the
Departments of Agriculture, Commerce, Interior,
and the United States Public Health Service, and
has aided in the development in Mexico of civil
aviation, weather observations, and mineral and
fishery surveys.
A long-range program of knitting closer ties
between the two coimtries is carried out through
the international exchange of persons. Students
THE RECORD OF THE WEEK
and professors from each of the two nations visit
the schools and universities of the other nation to
pursue or teach their technical specialties.
Years from now, American students and profes-
sors who have visited Mexico will have a closer
understanding of Mexican problems. Similarly,
Mexican students and professors who have studied
and taught in the United States will have, and
spread, a greater appreciation of the United States
throughout Mexico.
Supplementary Protocol Relating to Whaling
THE PRESIDENT'S LETTER OF TRANSMITTAL
The White House, April 30, 1H7.
To the Senate of the United States:
With a view to receiving the advice and con-
sent of the Senate to ratification, I transmit here-
with a certified copy of a supplementary protocol
for the regulation of whaling, which was signed at
London under date of March 3, 1947. This sup-
plementary protocol modifies the protocol signed
at London November 26, 1945, amending in certain
particulars the international agreement for the
regulation of whaling, signed at London June 8,
1937, as amended by the protocols signed at London
June 24, 1938, and Febraary 7, 1944. The supple-
mentary protocol was signed for the United States
of America "subject to ratification," and for Aus-
tralia "subject to approval," Canada, Denmark,
France, New Zealand, Norway, the Union of South
Africa, the Union of Soviet Socialist Republics,
and the United Kingdom of Great Britain and
Northern Ireland.
I transmit also, for the infoimation of the Sen-
ate, a report made to me by the Acting Secretary
of State explanatory of the purpose of the sup-
plementary protocol.
Haret S. Truman
(Enclosures: (1) Report of the Acting Secretary of
State; (2) certified copy of supplementary protocol, opened
for signature at London, March 3, 1947, for the regulation
of whaling.')
REPORT OF THE ACTING SECRETARY OF STATE
Washington, April 26, 19J^7.
The President,
The White House:
The undersigned, the Acting Secretary of State,
has the honor to lay before the President for trans-
mission to the Senate, to receive the advice and con-
sent of that body to ratification, if his judgment
approve thereof, a certified copy of a supple-
mentary protocol for the regulation of whaling,
which was signed at London under date of March
3, 1947. This supplementary protocol modifies the
protocol signed at London, November 26, 1945,
amending in certain particulars the international
agreement for the regulation of whaling, signed at
London June 8, 1937, as amended by the protocols
signed at London June 24, 1938, and February 7,
May 18, 1947
1944. The supplementary protocol was signed at
London for the United States of America "subject
to ratification," and for Australia "subject to ap-
proval," Canada, Denmark, France, New Zealand,
Norway, the Union of South Africa, the Union of
Soviet Socialist Republics, and the United King-
dom of Great Britain and Northern Ireland.
The purpose of the supplementary protocol is
to bring into force in their entirety the provisions
of the protocol of November 26, 1945.
Article 8 ( 1 ) of the protocol of 1945 stipulates
that that protocol shall enter into force in its en-
tirety when the Governments mentioned in the
preamble thereto, namely, the United States of
' S. Exec. P, 80th Cong., 1st sess.
' Protocol not printed.
1005
I
THE RECORD OF THE WEEK
America, Australia, Canada, Denmark, France,
Mexico, the Netherlands, New Zealand, Norway,
the Union of South Africa, and the United King-
dom of Great Britain and Northern Ireland, shall
have deposited their instruments of ratification or
given notifications of accession. All of those Gov-
ernments except the Governments of Mexico and
the Netherlands have deposited instruments of
ratification of the protocol of 1945. Certain of
its provisions (arts. 2, 3, 4, 6 (1) and (2), 7, and
8) became effective, in accordance with the pro-
cedure established by article 8 (2), when instru-
ments of ratification had been deposited by at least
three of the signatory Governments. Since in-
struments of ratification have not been deposited
by the Governments of Mexico and the Nether-
lands, the provisions of articles 1, 5, and 6(3) had
not be^n brought into operation between any coun-
tries until the supplementary protocol of March 3,
1947, was signed.
The articles of the protocol of 1945, which are
brought into force by the supplementary protocol,
contain provisions relating to a temporary exten-
sion in the period allotted for certain whaling ac-
tivities. Article I provides that the season during
which factory ships and whale catchers operating
with them may be used in taking and treating
baleen whales shall be extended for an additional
month so as to cover the period from December 8,
1946, to April 7, 1947. If the protocol had not been
brought into force in its entirety, the 1946-47
whaling season would have been governed by the
stipulations of article 7 of the agreement of 1937,
which provides that each season shall extend from
December 8 of one year to March 7 of the following
year.
Article 5 of the protocol of 1945 waives for the
period from May 1 to October 31, 1947, the re-
quirement, contained in article 3 (2) of the proto-
col of 1938, concerning the use of factoi-y ships as
land stations when operating within territorial
waters.
Paragraph (3) of article 6 of the protocol of
1945 defines certain expressions used in that
protocol.
The Senate, on July 30, 1946, gave its advice and
consent to ratification of the protocol of 1945, and
that protocol was ratified by the President on
August 12, 1946. The instrmnent of ratification
was deposited with the Government of the United
Kingdom on August 30, 1946, on which date the
1006
provisions specified in article 8 (2) became effec-
tive with respect to the United States of America.
The supplementary protocol of March 3, 1947,
has two articles. Article 1 provides that, notwith-
standing the provisions of article 8 (1) of the
protocol of 1945, that protocol shall come into
force with respect to the governments on behalf of
which the supplementary protocol is signed, im-
mediately on its signature. This article removes
the necessity for the deposit of ratifications of the
protocol of 1945 by the Governments of Mexico
and the Netherlands before all the provisions of
the protocol of 1945 come into force. The Govern-
ments of Mexico and the Netherlands, according to
information received officially by the Department,
have given assurances that the procedure provided
for by the supplementary protocol for the purpose
of bringing the protocol of 1945 into foi-ce in its
entirety meets with their approval. Article II re-
lates to the duration of the period during which
the supplementary protocol remained open for
signature. In view of the constitutional processes
of this Government with respect to treaties, the
signature of this supplementary protocol was made
"subject to ratification" in order that the advice
and consent of the Senate might be obtained with
respect to this change in the procedure for fixing
the effective date of the protocol of 1945 in its
entirety.
Respectfully submitted.
Dean Acheson
(Enclosure: Certified copy of supplementary protocol,
opened for signature at London, March 3, 1947, for the
regulation of whaling.)
Haitian Educator Visits U. S.
Arsene Pompee, Superintendent of Secondary
Education, Port-au-Prince, Haiti, is visiting the
United States at the invitation of the Depart-
ment of State. He has been awarded a travel
grant under a program administered by the Divi-
sion of International Exchange of Persons of the
Department, to enable him to confer with col-
leagues in the field of education and to study the
educational systems of the secondary schools of
the United States in the urban and rural areas.
Mr. Pompee arrived in Washington on April 30,
1947, and will spend approximately three months
in the United States.
Department of State Bulletin
I
Policy Planning Staff
[Released to the press May 7]
Announcement is made of the establishment in
the OiEce of the Under Secretary of State, effective
May 5, 1947, of the Policy Planning Staff for the
purpose of assuring the development of long-range
policy.
George F. Kennan, Career Minister, now serving
as Deputy for Foreign Affairs at the National War
College, has been designated Director of this staff,
and Carlton Savage, formerly Assistant to the Sec-
retary of State, will serve as Executive Secretary.
The text of the Departmental regulation ^ set-
ting up the Policy Planning Staff follows :
(a) Purpose. Under the direction of the Under
Secretary of State, to assure the development,
within the Department, of long-range policy which
will serve as a framework for program-planning
and a guide for current policy decisions and opera-
tions.
(b) Major functions. The Policy Planning
Staff shall advise and assist the Under Secretary
by performing the following functions :
(1) Formulating and developing, for the con-
sideration and approval of appropriate offi-
cials of the Department, long-term program
for the achievement of American foreign-
policy objectives.
(2) Anticipating problems which the Depart-
ment may encounter in the discharge of its
mission.
(3) Undertaking studies and 'preparing reports
on broad politico-military problems which
the Department may submit for considera-
tion by SWNCC, the Committee of Three,
or other similar bodies.
(4) Examining, independently or upon refer-
ence by the Secretary or the Under Secre-
tary, problems and developments affecting
United States foreign policy in order to
evaluate the adequacy of current policy and
making advisory recommendations pertain-
ing thereto.
(5) Coordinating planning activities within the
Department of State.
In the discharge of the above functions, the Policy
Planning Staff has no operational responsibility
and will not issue directives, instructions, etc., to
the operational organizations of the Department or
to missions in the field. However, in order to
May 18, 7947
THE RECORD OF JHB WEEK
insure a realistic basis for planning, close contact
shall be maintained between the Staff and opera-
tional organizations; and the latter shall be re-
sponsible for keeping the Staff informed of their
planning activities.
(c) Organisation. The Policy Planning Staff
shall be :
( 1 ) Headed by a Director to report and be re-
sponsible to the Under Secretary.
(2) Assisted by panels of special advisers from
the operating branches of the Department,
from other departments or agencies, and
from outside the Government.
(3) Serviced administratively by the Execu-
tive Secretariat.
Legal Groups invited to Discussion of
Codification of International Law
[Released to the press May 6]
The Department of State on May 6 invited
American legal groups and former judges of the
Permanent Court of International Justice to a
meeting on May 9 to discuss problems in the codifi-
cation of international law.
The groups and individuals will meet with
Philip C. Jessup, professor of international law
at Columbia University and recently appointed
United States representative to the Committee on
the Progressive Development of International Law
and Its Codification, and Charles Fahy, Legal
Adviser, Department of State.
The following were invited to the meeting :
American Bar Association
American Branch of International Law Association
American Law Institute
American Society of International Law
Carnegie Endowment for International Peace
Federal Bar Association
Former Judges of Permanent Court of International
Justice: Charles Evans Hughes, Manley O. Hudson,
and John Bassett Moore
National Lawyers Guild
Disposal of Certain Foreign
Merchant Vessels
The President, by Executive Order 9848 of May
8, 1947,2 authorizes the United States Maritime
Commission to dispose of certain foreign mer-
' CFR, title 22, § 1.111.
'12 Federal Register 3059.
1007
THE RECORD OF THE WEEK
chant vessels in its possession which are lying idle
in waters within the jurisdiction of the United
States, provided that the proposed disposition of
any such vessel shall be found by the Secretary
of State to be consistent with the foreign policies
of the United States and shall be found by the
Attorney General to be without prejudice to the
interests of the United States in any litigation
in which any such vessel may be involved; and
provided further that the moneys received on ac-
count of the sale or return of any such vessel, after
deduction therefrom of any expenses incurred by
the Commission in connection with such sale or
return, shall be deposited in the Treasury of the
United States to the credit of miscellaneous
receipts.
''Nazi Conspiracy and Aggression",
Volume Vii I
Publication of the eighth and last in a series of
volumes prepared by the American Prosecution
Staff and entitled Nazi Conspiracy and Aggression
was announced on May 10.
Available to the public at the Government Print-
ing Office, the work contains a wealth of important
documents hitherto unpublished, including tran-
scripts of the first interviews held by Lord Simon,
disguised because of wartime secrecy as "Dr.
Guthrie", with Rudolf Hess after the latter's flight
to England in May 1941. These reports disclose
that the purpose of the Deputy Fiihrer's mission,
undertaken shortly before the German invasion of
Soviet Russia, was to bribe Great Britain to with-
draw from the war by guaranteeing her Empire
possessions in return for uncontested German
hegemony in conquered Europe.
In addition, the eighth volume of the series in-
cludes a collection of affidavits by high-ranking
German generals describing the plan to assassinate
the French General Giraud, as well as the nature of
the anti-Hitler movement within the Army, the
basic German plan to eliminate the Jews, and the
performance of medical experiments on human
beings.
THE FOREIGN SERVICE
Consular Offices
The American Consulate at Las Palmas de Gran Ca-
naria, Canary Islands, was closed on September 30, 1946.
The American Mission at Baghdad, Iraq, was raised to
the rank of Embassy on December 28, 1946.
1008
The American Consular Agency at Djibouti, French
Somali Coast, was closed December 18, 1946.
The American Legation at Bangkoli was raised to the
rank of Embassy March 18, 1&47.
The American Consulate at Hanoi, French Indochina,
was established on January 9, 1947.
The American Legation at Copenhagen was raised to
the rank of Embassy on March 18, 1947.
The American Consulate at Krakow, Poland, was closed
on April 17, 1947.
THE DEPARTMENT
Appointment of Officers
Arthur G. Stevens as Special Assistant and Kingsley W.
Hamilton as Assistant, Office of the Under Secretary for
Economic Affairs, effective March 23, and March 15, 1947,
respectively.
BoUing R. Powell, Jr., as Deputy Director and Henry L.
Deimel, Jr., as Adviser, Office of Transport and Communi-
cations, effective April 20, 1947.
John W. Bays as Chief, Division of Foreign Service
AdminLstration, effective April 21, 1947.
THE CONGRESS
Amending Section 327 (H) of the Nationality Act of
1940 : Report to accompany H.R. 2238. H. Rept. 273, 80th
Cong., 1st sess. 2 pp.
Create a Select Committee on Foreign Aid: Report
from the Committee on Rules, to accompany H. Res. 173.
H. Rept. 299, 80th Cong., 1st sess. 1 p.
Authorizing the Reappointment of Herschel V. Johnson
to the Foreign Service of the United States : Report from
the Committee on Foreign Affairs, to accompany S.J. Res.
86, a bill to authorize Herschel V. Johnson, Deputy Rep-
resentative of the United States to the Security Council
of the United Nations, to be reappointed to the Foreign
Service. H. Rept. 286, 80th Cong., 1st sess. 2 pp.
Authorizing Appointment of Lt. Comdr. Paul A. Smith :
Report from the Committee on Merchant Marine and
Fisheries, to accompany S. 874, a bill to authorize the
President to appoint Lt. Comdr. Paul A. Smith as alternate
representative of the United States to the Interim Council
of the Provisional International Civil Aviation Organiza-
tion or its successor, and as representative of the United
States to the Air Navigation Committee of the Provisional
International Civil Aviation Organization, without affect-
ing his status and perquisites as an officer of the Coast and
Geodetic Survey. H. Rept. 297, 80th Cong., 1st sess. 4 pp.
Assistance to Greece and Turkey : Hearings before the
Committee on Foreign Affairs of the House of Representa-
tives on H. R. 2616, a bill to provide for assistance to
Greece and Turkey. H. R. 2616, 80th Cong., 1st sess.
388 pp.
Convention With Union of South Africa Relating to
Taxation : Message from the President of the United States
transmitting the convention between the United States of
America and the Union of South Africa, signed at Pretoria
on December 13, 1946, in the English and Afrikaans
languages, for the avoidance of double taxation and for
Department of State Bulletin
THE RECORD OF THE WEBK
establishing rules of reciprocal administrative assistance
with respect to taxes of Income. S. Exec. O, 80th Cong.,
1st sess. 12 pp.
Assistance to Greece and Turkey : Report from the Com-
mittee on Foreign Affairs, to accompany H. R. 2616, a bill
to provide for assistance to Greece and Turkey. H. Rept.
314, 80th Cong., 1st sess. 24 pp.
Permit United States Common Communications Car-
riers To Render Free Commtinications Services to Official
Participants in the World Telecommunications Confer-
ences in the United States in 1947 : Report from the Com-
mittee on Interstate and Foreign Commerce, to accompany
S. J. Res. 102, a resolution which provides that notwith-
standing the provisions of section 210 of the Communi-
cations Act of 1934, as amended. United States communi-
cation carriers may extend free communication privileges
to official participants in the forthcoming world telecom-
munications conferences. S. Rept. 138, 80th Cong., 1st
sess. 2 pp.
Filipinos in the Naval Reserve: Report from the Com-
mittee on Armed Services, to accompany H. J. Res. 90, a
resolution to correct an error in the act approved August
10, 1946 (Public Law 720, 79th Cong., 2d sess.), relating to
the composition of the Naval Reserve. S. Rept. 136, 80th
Cong., 1st sess. 2 pp.
Second Deficiency Appropriation Bill for 1947: Hear-
ings before the Subcommittee of the Committee on Ap-
propriations of the House of Representatives. 80th Cong.,
1st sess. 369 pp. (Department of State, pp. 139-158.)
First Report of the Air Coordinating Committee : Mes-
sage from the President of the United States transmitting
the first report of the Air Coordinating Committee, for the
calendar year 1946. H. Doc. 148, 80th Cong., 1st sess.
48 pp.
Amendment of Philippine Rehabilitation Act of 1946:
Hearings before the Committee on Foreign Affairs of the
House of Representatives on H. R. 2641 and H. R. 2675,
bills to amend the Philippine Rehabilitation Act of 1946,
as amended. 80th Cong., 1st sess. 27 pp.
Reorganization Plan No. 1 of 1947 : Message from the
President of the United States transmitting Reorganiza-
tion Plan No. 1 of 1947, designed to maintain organiza-
tional arrangements worked out under authority of title
I of the First War Powers Act. H. Doc. 230, 80th Cong.,
1st sess. 8 pp.
Reorganization Plan No. 2 of 1947: Message from the
President of the United States transmitting Reorganiza-
tion Plan No. 2 of 1947, prepared in accordance with the
provisions of the Reorganization Act of 194.5, and pro-
viding for permanent transfer to the Department of La-
bor of the United States Employment Service, which is
now in the Department by temporary transfer under
authority of title I of the First War Powers Act, and for two
other changes in organization to improve the administration
of labor functions. H. Doc. 231, 80th Cong., 1st sess. 4 pp.
Department of State Appropriation Bill for 1948 : Hear-
ings before the Subcommittee of the Committee on Ap-
propriations of the House of Representatives. 80th Cong.,
1st sess. 1076 pp.
State, Justice, Commerce, and the Judiciary Appropria-
tion Bill, Fiscal Year 1948 : Report from the Committee on
Appropriations, to accompany H.R. 3311. H. Rept. 336,
80th Cong., 1st sess. 48 pp. [Department of State, pp.
4-13, 36-38.]
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SUPERINTENDENT OF DOCUMENTS
May 18, 1947
1009
Economic Affairs Paea
American Economic and Technical Aid to
Foreign Countries Since Mid- 1945 . . . 957
International Cooperation During World
Shortage of Lumber. Article by Frank
Whitehouse 974
First International Wool Study Group Meet-
ing. Article by J. Russell Ives .... 987
The Requirements of Reconstruction. By
Under Secretary Acheson 991
Economic Stability as Basis for Political Har-
mony. Message From the Secretary of
State to United States Associates . . . 996
Request to Poland on Gold From Portugal . . 1002
Procedure for Filing Claims With Office of
Alien Property 1003
Disposal of Foreign Merchant Vessels .... 1007
The United Nations
Third Session of the Interim Commission of
WHO. Article by H. van Zile Hyde . . 971
The Economic Commission for Europe. By
Under Secretary Clayton 977
First Regional Conference of National Com-
mission for UNESCO 978
National Commission for UNESCO Invites
Additional Organizations 978
First Assembly of ICAO. Statement by
Assistant Secretary Norton 979
U.S. Delegation to ILO Industrial Committee
on Inland Transport 982
Current U.N. Documents: A Bibliography . 982
Second Meeting of U.N. Preparatory Com-
mittee for the International Conference
on Trade and Emplovment. Report to
the Office of Public Affairs 989
General Policy
Some Aspects of Our Policy in Greece and
Turkey. By Henry S. Villard .... 997
Legal Groups Invited to Discussion of Codifi-
cation of International Law 1007
Council of Foreign Ministers Fag*
Joseph M. Dodge to Head U. S. Delegation to
Four Power Commission 985
Treaty Information
Development of the Arab League 963
Alexandria Protocol 966
Pact of the League of Arab States .... 967
Air Agreement With Syria 996
Air-Transport Agreement With Argentina . 1003
Proposed U. S.-Panama Agreement on Use of
Defense Sites in Panama 1003
Supplementary Protocol Relating to Whaling:
The President's Letter of Transmittal . . 1005
Report of the Acting Secretary of State . . 1005
Occupation Matters
Destruction of U.N. Property in Japan . . . 986
Soviet Position on Resumption of Joint Com-
mission on Korea 995
International Information and
Cultural Affairs
Argentine Architect Visits U.S 1003
Educational, Scientific, and Cultural Coopera-
tion With Mexico 1004
Haitian Educator Visits U.S 1006
Calendar of International Meetings . . 984
The Foreign Service
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The Congress 1008
The Department
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Appointment of Officers 1008
Publications
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"Nazi Conspiracy and Aggression", Vol. VIII . 1008
New Salesroom Opened 1009
{D<y)vtrwut€/yA
Doris Wrigley, author of the introductory remarks on the develop-
ment of the Arab League, is a Research Analyst in the Near Eastern
Branch of the Division of Research for Near East and Africa, Office of
Intelligence Research, Department of State.
H. van Zile Hyde, author of the article on the Interim Commission
of WHO, Is Alternate U.S. Representative on this Commission ; Assist-
ant Chief of the Health Branch, Division of International Labor, Social
and Health Affairs, Department of State.
Frank Whitehouse, author of the article on international cooperation
during the world shortage of lumber, is Chief of the Forest Products
Section in the International Resources Division, Office of International
Trade Policy, Department of State.
J. Russell Ives, author of the article on the first international Wool
Study Group meeting, was Secretary and Adviser to the U.S. Delega-
tion. Mr. Ives is Agricultural Economist in the Livestock Branch,
Production and Marketing Administration, Department of Agriculture.
U. S. GOVERNMENT PRINTING OFFICE: 1947
^Ae/ ^eha^^^t^^teni/ xw t/tate/
RADIO ADVISORY COMMITTEE URGES STRENGTH-
ENING OF VOICE OF AMERICA . Report to the
Assistant Secretary for Public Affairs
1038
THE FIRST SPECIAL SESSION OF THE GENERAL
ASSEMBLY OF THE tFNITED NATIONS: PRO-
CEDURAL QUESTIONS WITH RELATION TO
AGENDA • Article by Sheldon Z. Kaplan and Betty C.
Cough : 1013
THE GENERAL CONFERENCE OF UNESCO,
PARIS: THE PROGRAM IN RELATION TO THE
UNITED NATIONS • Article by Esther C. Brunauer . .
1019
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May 25, 1947
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THE FIRST SPECIAL SESSION OF THE GENERAL ASSEMBLY
OF THE UNITED NATIONS
Procedural Questions With Relation to Agenda ^
hy Sheldon Z. Kaplan
and
Betty C. Gough
The first special session of the General Assembly of the
United Nations was convened April 28, 19Jt7, to consider one
Tnatter: the constituting and instructing of a Special Com-
mittee to prepare for the consideration of the question of
Palestine at the second regular session.
British Request
On April 2, 1947, Sir Alexander Cadogan,
United Kingdom Representative to the United
Nations, notified Victor Hoo, Assistant Secretary-
General, serving as Acting Secretary-General in
the absence of Trygve Lie, that he had received the
following message from his Government :
"His Majesty's Government in the United King-
dom request the Secretary-General of the United
Nations to place the question of Palestine on the
Agenda of the General Assembly at its next reg-
ular Annual Session. They will submit to the
Assembly an account of their administration of
the League of Nations Mandate and will ask the
Assembly to make recommendations, under Arti-
cle 10 of the Charter, concerning the future gov-
ernment of Palestine.
"In making this request, His Majesty's Govern-
ment draw the attention of the Secretary-General
to the desirability of an early settlement in Pales-
tine and to the risk that the General Assembly
might not be able to decide upon its recommenda-
tions at its next regular Annual Session unless
some preliminary study of the question had pre-
viously been made under the auspices of the
United Nations. They therefore request the
Secretary-General to summon, as soon as possible,
a special Session of the General Assembly for the
purpose of constituting and instructing a Special
Committee to prepare for the consideration, at the
regular Session of the Assembly, of the question
referred to in the preceding paragraph." ^
On the same day, the Acting Secretary-Gen-
eral, in accordance with I'ule 4 of the provisional
rules of procedure of the General Assembly,^ in-
formed the other 54 member governments of the
United Kingdom request and inquired whether
they concurred in the summoning of a special
session for this purpose.*
^ The analysis which follows is based on action which
took place through May 1, 1947.
^ General Assembly doc. A/286, Apr. 3, 1947 ; Buixetin
of May 4, 1947, p. 795.
''The provisional rules of procedure for the General As-
sembly are found in General Assembly doc. A/71/Rev. 1,
Apr. 28, 1947.
' United Nations press release GA/89, Apr. 2, 1947.
May 25, 1947
1013
Majority Concurrence
With the receipt of the reply from the Govern-
ment of Turkey on April 13, 1947, the necessary
majority of 28 members had concurred in the re-
quest of the United Kingdom. In order of receipt
of their replies the following 27 members had pre-
viously indicated their concurrence : Cuba, France,
United States of America, China, Haiti, Hon-
duras, Greece, Liberia, New Zealand, Czechoslo-
vakia, Brazil, Panama, Mexico, Paraguay, Swe-
den, Union of Soviet Socialist Republics, Den-
mark, Dominican Republic, Ecuador, Luxem-
bourg, Peru, Ukrainian Soviet Socialist Republic,
Australia, India, Norway, Union of South Africa,
and Canada.*
Summoning of First Special Session of the
General Assembly
In accordance with rules 3 and 8 of the provi-
sional rules of procedure, the Secretary-General
on April 13, 1947, summoned the first special
session of the General Assembly to convene at
Flushing Meadow in New York on April 28,
1947 — exactly 15 days after the concurrence of a
majority of the members.^
Provisional Agenda and Arab States' Proposal
The provisional agenda as communicated by the
Secretary-General to member governments on
April 13, 1947, contained only the one substantive
item for which the Assembly had been sunxmoned :
the constituting and instructing of a special com-
mittee to prepare for the consideration of the ques-
tion of Palestine at the second regular session.'
In a telegram to the Secretary-General on April
21, 1947, Mahmoud Hassan, the Egyptian Ambas-
sador to the United States, requested on behalf of
his Government the inclusion of the following item
on the agenda of the Assembly: the termination
of the mandate over Palestine and the declaration
of its independence.^ The Government of Iraq,
on April 21, and the Governments of Syria, Leb-
anon, and Saudi Arabia, on April 22, also re-
quested the inclusion of this item on the agenda, in
virtually identical language."
" General Assembly doe. A/295, Apr. 25, 1947, p. 2.
• lUd.
' Geoeral Assembly doc. A/293, Apr. 24, 1947.
'General Assembly doc. A/287, Apr. 21, 1947.
"General Assembly docs. A/288, Apr. 23, 1947; A/289,
Apr. 23, 1947; A/290, Apr. 23, 1947; A/291, Apr. 23, 1947.
Agenda Consideration by the General Assembly
In accordance with rule 33 of the provisional
rules of procedure, the General Committee of the
Assembly, which consists of the president, seven
vice presidents, and the chairmen of the six main
committees, considered the provisional agenda and
the additional item which was proposed by the
Arab States.
United States Position
At the meeting of the General Committee on
April 29, 1947, Herschel V. Johnson, Alternate
United States Representative to the first special
session of the Assembly, set forth the position of
the United States with regard to the agenda as
follows :
"It was the undei-standing of the United States,
that this special session of the Assembly had been
called to appoint a committee for the purpose of
reporting to the next general session of the As-
sembly, on the subject of the question of Palestine.
It will be recalled that the United Kingdom Gov-
ernment, in requesting that this item should be
placed on the agenda of the General Assembly at
its next regular annual session, engaged itself to
submit to the Assembly an account of their admin-
istration of the League of Nations Mandate,
and to ask the next regular session of the Assembly
to make recommendations, under Article 10 of the
Charter, concerning the future government of
Palestine.
"The United States has, from the beginning,
made known its view that no item other than the
item originally proposed by the United Kingdom
Government should be considered at this session.
The reasons for this view are, in the opinion of
our delegation, clear and important. The proper
approach to the Palestine problem, by the Assem-
bly, requires a preliminary assembly and an analy-
sis of data and formulation of alternative rec-
ommendations by a committee, so that the As-
sembly will have clear-cut proposals before it at
the next September session. It seems undesirable
to us for Members to embark on the consideration
of a variety of topics not relevant to the purpose
for which this Assembly was convened.
"My Government, in preparing for this special
session, did so with the full realization of the im-
portance of the Palestine problem, not only to
the parties most immediately concerned, but to
1014
Department of State Bulletin
the whole world. We believe that this may be the
last chance for the solving of this problem in a
peaceful and fair manner. If this chance is
missed, chaos and disorders might well result in
Palestine of so serious a nature that that country
would be ruined physically and morally.
"We are, furthermore, convinced that if the
United Nations is to meet with success in its efforts
to solve the Palestine problem, the decision which
it makes must be not only fair, but one which has
the support of world opinion, and which is thought
to be fair.
"It will be extremely difficult, if not impossible,
to enforce any decision which does not rally the
support of most of the peoples of the world.
"It is also the opinion of my Government that if
a decision is to have the support of world opinion,
it must clearly have been reached after careful
study and consideration in an atmosphere free
from pressures on the part of the Great Poweis
and from intrigues behind the scenes. It is our
belief that we can best contribute to the reaching
of a fair and enforceable decision by doing our
part to maintain proceedings on the highest possi-
ble level and to limit the activities of the special
Assembly to the setting up of machinery for giv-
ing the problem the careful and impartial study
which it deserves.
"In making these remarks, I should be unhappy
if they were interpreted by anyone seated at this
table as a desire to prevent the Members of the
Arab States or any other interested people from
expressing their full views regarding the solution
of this problem at the proper time.
"The proposal made by the representative of
Egypt, and likewise by the other Arab States rep-
resented here, is one which, in our view, attempts
to prejudge this issue. They are asking categori-
cally for an action by this Assembly which may not
be the best immediate solution of this question. It
may be one of the alternatives recommended by
the committee which we hope to set up.
"The United States cannot support the inclusion
of this item on the agenda. The United States
likewise feels that an untrammeled discussion of
the substance of the Palestine problem at this ses-
sion would not serve the fair solution which we
all hope to get in the regular session, when we have
full and complete data of our own investigating
committee to take into consideration. That com-
mittee will, we hope, be so constituted and with
such terms of reference as to give the widest possi-
ble scope to the expression of all views of inter-
ested parties in this question.
"The next regular session of the General Assem-
bly, moreover, would be in a position, on receiving
the report of the committee, to recommend any
deficiencies in the pi'ocedure of that committee, to
give opportunity for any who had not been heard,
if they saw fit, or who had been rejected through
any error of the committee. No rights are im-
paired, either legal or moral, in our view, in con-
fining our discussion at this Assembly to the purely
procedural object for which we were convoked.""
Applicable Rules of Procedure
The above position was based on broad aspects
of policy outlined by Mr. Johnson. The underly-
mg procedural aspects of this position concerned
rules 3, 4, 8, 11, 17, and 18 of the provisional rules
of procedure, which relate to the summoning of
special sessions of the General Assembly :
''Rule 3
"Special sessions of the General Assembly shall
also be held within fifteen days of the receipt by
the Secretary-General of a request for such a ses-
sion either from the Security Council or from a
majority of the Members of the United Nations.
'■'Rule 4
"Any Member of the United Nations may request
the Secretary -General to summon a special session.
The Secretary-General shall thereupon inform the
other Members of the United Nations of the re-
quest and inquire whether they concur in it. If
within thirty days of the date of the communica-
tion a majority of the Members concur in the re-
quest, a special session of the General Assembly
shall be summoned in accordance with the provi-
sions of Rule 3."
"Rule 8
"The Secretary-General shall notify the Mem-
bers of the United Nations at least fourteen days
in advance of the opening of a special session con-
voked at the request of the Security Council, and
" Provisional verbatim minutes of the General Commit-
tee of the General Asseml)ly, General Committee doc.
A/BUR/P.V. 29, Apr. 29, 1947, pp. 21-30. Only the rele-
vant portions of the statement are quoted.
May 25, 1947
1015
1
at least ten days in the case of a request by a
majority of the Members."
''Rule 11
". . . The provisional agenda of a special ses-
sion, summoned at the request of a majority of the
Members, shall be communicated at least ten days
before the opening of the session."
''Rvle 17
"When a special session is called, the agenda for
the session shall be confined to the items com-
municated by the Secretary-General to the Mem-
bers of the United Nations, unless the General
Assembly, by a two-thirds majority of the Mem-
bers present and voting, decides to include addi-
tional items.
''Rule 18
"Any Member of the United Nations may, at
least four days before the date fixed for the open-
ing of a special session, request the inclusion of
additional items in the agenda. Such items shall
be placed on a supplementary list which shall be
commimicated to the Members of the United Na-
tions as soon as possible."
Action by the General Assembly
The General Committee on April 29, 1947, voted
to recommend that the item proposed by the
United Kingdom be placed on the agenda of the
General Assembly and referred for consideration
to the First Committee." This recommendation ^^
was adopted by the plenary Assembly on May 1,
1947.
On April 30, 1947, the General Committee de-
cided not to recommend the inclusion of the Arab
item on the agenda.^' Egypt voted to include the
item; Canada, China, Ecuador, France, Hon-
duras, Sweden, the United Kingdom, and the
United States voted against its inclusion; Brazil,
Czechoslovakia, India, Poland, and the Union of
Soviet Socialist Republics abstained.
" General Ctommittee tloc. A/BUR/P.V. 28, Apr. 29, 1947,
p. 5a
" General Assembly doc. A/298, May 1, 1947.
'^ General Committee doc. A/BUR/P.V. 31, May 1, 1947,
pp. 127-30.
" Provisional verbatim minutes of the General Assembly,
•doc. A/P.V./71, May 1, 1947, pp. 131-132.
1016
The plenary assembly on May 1, 1947, upheld
the recommendation of the General Committee.
Afghanistan, Argentina, the Byelorussian Soviet
Socialist Republic, Cuba, Egypt, India, Iran,
Iraq, Lebanon, Saudi Arabia, Syria, Turkey, the
Ukrainian Soviet Socialist Republic, the Union
of Soviet Socialist Republics, and Yugoslavia
voted for the inclusion of the item; Australia,
Belgium, Brazil, Canada, Chile, China, Denmark,
Ecuador, France, Greece, Honduras, Liberia, the
Netherlands, New Zealand, Norway, Panama,
Peru, the Philippine Republic, Sweden, the Union
of South Africa, the United Kingdom, the United
States, Uruguay, and Venezuela voted against in-
clusion of the Arab item; Bolivia, Colombia,
Czechoslovakia, the Dominican Republic, El Sal-
vador, Ethiopia, Guatemala, Haiti, Mexico, and
Poland abstained.^*
"Items Communicated"
Upon an examination of the applicable rules of
procedure which served as the procedural basis of
the United States position, it will be noted that
rule 17 provides, in part, that the agenda for a
special session is to be "confined to the items com-
mwiicated by the Secretary-General to the Mem-
bers of the United Nations" (italics supplied).
It becomes necessary, therefore, to fall back on
the preceding rules governing special sessions for
a determination of when and what "items" are
communicated by the Secretary-General :
1. The first communication emerges through the
operation of rule 4, whereby the question of
whether a special session shall be summoned is
answered. It is the member's request (and the
rules set forth no particular form in which the
request must be transmitted) which is communi-
cated, and nothing more, and if a majority of the
Members concur this request loses its identity and
becomes the request of the majority. This is
necessarily so, or else the second clause of the last
sentence of rule 4 ("a special session of the Gen-
eral Assembly shall be summoned in accordance
with the provisions of Rule 3", which refers to a
request for such a session by a majority of the
members) is meaningless.
2. The second communication emerges through
the operation of the last sentence of rule 11 ("the
provisional agenda of a special session, summoned
at the request of a majority of the Members, shall
be communicated") .
Department of State Bulletin
The first instance of "items" communicated oc-
curs not under number 1 above but when the pro-
visional agenda has been communicated. The pur-
pose of the provisional agenda is to itemize or list
in orderly sequence the matter (s) contained in the
majority request for a special session.
The phrase items communicated, referring to the
provisional agenda communicated (rule 11), is not
believed to imply that the Secretary-General may,
in his discretion, place on the provisional agenda
itemization of other substantive questions in addi-
tion to the question contained in the request of the
majority. Nor was the Secretary-General obliged
to itemize additional topics requested by one or
more members, such as "the termination of the
mandate over Palestine and the declaration of its
independence", the substantive item requested by
the Arab States. A contrary interpretation either
would result in placing the request of one member
or of a minority of members on an equal footing
with a majority request, or would require the Sec-
retary-General to communicate, under rule 4, a
series of requests and counterrequests. It is be-
lieved that if the draftsmen of the rules of pro-
cedure had intended "additional items" to be in-
cluded on the provisional agenda they would have
so stated in rule 11. Additional items are first men-
tioned in rules 17 and 18, under which they may
be placed on a supplementary list and, if a two-
thirds majority of the members present and voting
so decide, on the agenda.
Background of Rules of Procedure
With Regard to Agenda
This interpretation of the rules is fully sup-
ported not only by the deliberations which took
place at the first special session but also by the de-
liberations and report of discussion which took
place in the Executive Committee of the Prepara-
tory Commission of the United Nations on this
matter in September and October 1945. In the
original draft of the General Assembly rules of
procedure, section 7 of rule 5 (agenda) stated:
"As a general rule, the agenda of a special ses-
sion shall be limited to the items occasioning its
call." 1=
When this draft was considered in this Commit-
tee, various changes were agreed upon. The re-
port of the discussion in the Committee with
respect to section 7 (as quoted above) states:
May 25, J 947
"It was in principle desirable that the Agenda
of a special session should be limited to the spe-
cial question or questions which had been specially
submitted by the member of the United Nations
requesting the convoking of such special session.
It was, however, very probable that in responding
to the summons for a special session, other mem-
bers would in turn request the inclusion of addi-
tional items. The paragraph was therefore
redrafted to allow the addition of other items by a
two-thirds majority decision of the General As-
sembly, whilst retaining the principle of restric-
tion." ^«
This decision found its way into the next draft
of the rules of the Assembly as follows :
"8. When a special session is called the agenda
for the session shall be confined to the items com-
municated by the Secretary-General to the Mem-
bers of the United Nations, unless the General
Assembly, by a two-thirds majority, decides to in-
clude additional items.
"9. Any Member of the United Nations may, at
least four days before the date fixed for the open-
ing of a special session, request the inclusion of
additional items on the agenda. Such items shall
be placed on a supplementary list, which shall be
circulated to the Members of the United Nations on
arrival for the ojjening of the session."
Conclusions
From the above analysis, the following conclu-
sions emerge:
1. The request of a single member that a special
session be summoned by the Secretary-General, if
concurred in by the majority of the members, be-
comes the request of the majority for a special
session.
2. A provisional agenda is an itemization drawn
up by the Secretary-General, based upon the mat-
ter(s) contained in the majority request, ^o addi-
tional itemization can be made by the Secretary-
General based upon matters either contained in
other requests or which he may feel should be in-
cluded, with the exception of routine, organiza-
tional matters, such as the formal admission of
Siam as a member. The factor of "additional
'° Executive Committee of the Preparatory Commission
of the United Nations, doc. PC/EX/A/26, Sept. 25, 1945,
p. 4.
'° md., doc. PC/EX/A/39, Oct. 4, 1945, p. 3.
1017
items" was in the minds of the draftsmen and first
appears in rule 17, requiring a two-thirds majority
vote.
3. The phrase items cormnunicated hy the Secre-
tary-General in rule 17 with regard to the agenda
refers to the provisional agenda in rule 11 and is
limited to the items therein contained and hence
the matter contained in the request of the majority.
4. "Additional items" can be placed on the
agenda only by meeting the two-thirds-majority
vote qualification of rule 17.
5. These additional items may be taken either
from the supplementary list referred to in rule 18
or from any other source and placed on the agenda,
provided "a two-thirds majority of the Members
present and voting, decides to include additional
items".
The purpose of the rules relating to a special
session of the Assembly is to insure that the session
will be limited to the matter for which it was
called upon request of any member, concurred in
by a majority, but that additional substantive
items can be considered only upon a two-thirds
majority vote.
In evaluating the position which the United
States took on the Arab States' request to include
an additional substantive item on the agenda ("the
termination of the mandate over Palestine and the
declaration of its independence"), it is important
to consider not only the questions of policy which
motivated the stand of the United States but also
the applicable rules of procedure of the General
Assembly of the United Nations governing special
sessions. For it is only within the framework of
the machinery of procedural rules that policy can
be made effective.
Officers of the First Special Session of tlie General
Assembly and Its Main Committees
President
OswALDO Aranha (Brazil)
Vice Presidents
Chief Representatives (or alternates) of —
China (Quo Tai-chi)
Ecuador (Neftali Ponce)
France (Alexandre Paeodi)
India (M. Asaf Alt)
Union of Soviet Socialist Republics (Andeei A.
Geomtko)
United Kingdom (Sir Alesandee Cadooan)
United States of America (Waeren R. Austin)
Chairmeti of the Six Main Committees
1. Political and Security — Lestee B. Pbiakson (Canada)
2. Eiconomic and Financial — Jan Papanek (Czechoslo-
vakia )
3. Social, Humanitarian and Cultural — Mahmoud Hassan
(Egypt)
4. Trusteeship — Gustap Herman Eriksson (Sweden)
5. Administrative and Budgetary — Jozef Winiewicz (Po-
land)
6. Legal— TiBUBcio Cabias, Jr. (Honduras)
Current United Nations Documents:
A SeSected Bibliography
There will be listed periodically in the BrrLi^ETiN a selec-
tion of United Nations documents which may be of interest
to readers.
Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New Yorli City. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
Economic and Social Council
Commission on Human Rights. Sub-Commission on Free-
dom of Information and of the Press. Consolidated
Terms of Reference . . . E/CN.4/Sub.l/2, May 8, 1947.
4 pp. mimeo.
Non-Governmental Organizations, Decisions of the Eco-
nomic and Social Council of 28 March 1947. E/435,
May 7, 1947. 6 pp. mimeo.
General Assembly
Committee on the Progressive Development of Interna-
tional Law and Its Codification. Memorandum Sub-
mitted by the Representative of Argentina. A/AC. 10/
10, May 13, 1947. 3 pp. mimeo.
Committee on the Progressive Development of Interna-
tional Law and Its Codification. Suggestions by the
Netherlands Representative With Regard to the Pro-
gressive Develoijmeut of International Law and Its
Eventual Codification. A/AC.10/18, May 14, 1947.
4 pp. mimeo.
Outline. The Codification of International Law in the
Inter-American System, With Special Reference to the
Methods of Codification. A/AC.10/8, May 6, 1947. 31
pp. mimeo.
Statement by the Delegate for the United Kingdom at the
Second Meeting of the Committee on Progressive De-
velopment and Codification of International Law, 13
May 19i7. A/AC.10/17, May 13, 1947. 3 pp. mimeo.
Statement by the Representative of Poland Before the
Fourth Meeting of the Committee on Progressive De-
velopment and Codification of International Law, 15
May 1947. A/AC.10/19, May 15, 1947. 7 pp. mimeo.
1018
Deparfment of Sfafe Bulletin
THE GENERAL CONFERENCE OF UNESCO, PARIS
The Program in Relation to the United Nations
hy Esther C. Brwnauer
The role of the United Nations Educational, Scientific and
Cultural Organization as a specialized agency of the United
Natiom influences its program and activities^ and some of its
basic prohleins ore shared xoith the United Nations and with
other specialized agencies. The article below is the third in
a series desigiied to revieiv the accomplishments of the first
meeting of the General Conference of UNESCO and discusses
the place of UNESCO in the present pattern of intergovern-
mental organization.
The development of UNESCO moved along
on the heels of the development of the United
Nations, and many of the same people who helped
to draft the Charter worked on the text of the
UNESCO Constitution. The early draft of a
United Nations agency for educational reconstruc-
tion, prepared in London in April 1944, was trans-
formed after Dumbarton Oaks into the draft of
a constitution of a United Nations organization
for education and cultural cooperation. The
American proposals for this basic instrument, for-
mulated by an interdivisional working group in
the Department of State with the aid of informal
consultations outside the Government, were sent
to London about the time the United Nations con-
ference convened at San Francisco. The propos-
als of some 20 governments wei-e studied by the
Conference of Allied Ministers of Education in
London, and the text which became the basis of
the constituent meeting was written shortly after
the United Nations Charter was adopted. The
London Conference for the Establishment of an
Educational, Scientific and Cultural Organization
was held in November 1945, during a lull in the
meetings of the United Nations Preparatory Com-
mission; the Preparatory Commission of
UNESCO got under way at the time of the first
fAay 25, 1947
743638 — 47 2
meeting of the General Assembly of the United
Nations. The basic agreement contemplated by
article 63 of the Charter and article X of the
UNESCO Constitution was negotiated in June
1946, and was approved six months later by the
General Conference of UNESCO and the Gen-
eral Assembly of the United Nations, almost
simultaneously.
The bonds between the United Nations and its
Educational, Scientific and Cultural Organiza-
tion originated in something more than an acci-
dent of history. The whole concept of the spe-
cialized agencies is based on the conviction that
peace cannot be maintained indefinitely by noth-
ing more than procedures for settling international
disputes and stopping aggression, essential as they
are ; the nations of the world must work together
for the betterment of human life and must develop
such strong ties among their peoples that war
will eventually become unthinkable. The role of
scholarship, teaching, and art in helping to build
a stable international community is now well rec-
ognized by the peoples of the United Nations. The
attempt of the Axis dictatorships to consolidate
their conquests through the perversion of science
and the debasement of the power of ideas led to
a deeper appreciation of the importance of knowl-
1019
edge and skill based on truth and intellectual and
artistic freedom in constructing the defenses of
peace.
The creation of UNESCO was accomplished
with marked enthusiasm and harmony, and with
the conviction on the part of many of its founders
that the United Nations system would be seriously
incomplete without an agency to link the resources
of mind and spirit with the instruments of inter-
national power. Or perhaps it would be more
accurate to say that they discovered that the re-
sources of the mind and spirit of man constitute
one of the greatest instruments of international
power. During the San Francisco conference the
recognition of the close connection was expressed
through a demand, which was readily satisfied,
for a specific reference in the Charter to educa-
tional and cultural cooperation. The Chinese and
French Delegations were conspicuous among the
active supporters of this proposal, and American
voluntary organizations, reinforced by the pas-
sage of the Mundt-Fulbright-Taft resolution in
Congress, also played an important part.
After the Charter was adopted and plans for a
conference to establish an educational and cul-
tural organization were developed, some govern-
ments proposed that the dependence of this
specialized agency on the United Nations should
be made more obvious by having the Economic
and Social Council take the initiative — as was
done later in the case of the health and the refugee
organizations. However, when it became appar-
ent that this procedure would postpone the
establislmient of UNESCO by at least a year, the
plan of a conference to be held, on the invitation
of the British and French Governments and as
soon as feasible, was accepted.
The relationship of UNESCO to the United
Nations was made manifest throughout the Con-
stitution, and the Preparatory Commission took
steps to consolidate the relationship even in the
preliminary stages of the organization. A mem-
ber of the staff was sent to New York to maintain
contacts with the Secretariat of the United Na-
tions and from time to time members of the
Preparatory Commission were invited to attend
meetings of the Economic and Social Council and
its commissions as observers. Even before the
draft agreement between the United Nations and
the United Nations Educational, Scientific and
Cultural Organizations was negotiated it was ap-
pai'ent that the points of most frequent contact —
and potential friction as well as potential coop-
eration— were to be in the fields of human rights,
social affairs, and public information.
The need for clarification of function and estab-
lishment of sound working arrangements, espe-
cially in these three areas, arose partly from the
fact that the United Nations organs and offices on
the one hand and UNESCO on the other were go-
ing through the early stages of development. A
certain amount of overlapping is also inherent in
the nature and purposes of the two organizations.
A striking instance is the subject of freedom of
information, which neither UNESCO nor the
U.N. Human Rights Commission can ignore, al-
though it will require considerable experience to
determine the most effective division of labor.
With respect to the general area of social affairs,
clarification of substance and operation is neces-
sary. For example, the vagueness of the boundary
between child welfare and education complicates
both the UNESCO progi-am of educational relief
and the United Nations plans for the Children's
Emergency Fund. The question of how far the
United Nations Secretariat should engage directly
in international enterprises affects the ultimate de-
cision as to what UNESCO, along with other
specialized agencies, should undertake. This was
underlined when the Economic and Social Council
considered, at its third session, a resolution for the
establishment of international scientific research
institutions on the initiative of the United
Nations. It was decided to refer the proposal to
UNESCO, wliich was already considering the pro-
posals for coordination and development of re-
search activities in the Hylean Amazon under
international auspices. This undertaking, now
going forward, diffei'S in detail from the plan put
before the Economic and Social Council, but the
principle is the same. Moreover, by referring the
matter to UNESCO the Council indicated that in
general it expects the appro jiriate specialized agen-
cies to carry on any direct large-scale operations
within the scope of their programs and resources.
The negotiating committee on the agreement be-
tween the United Nations and UNESCO gave spe-
cial attention to the necessity of coordinating the
activities of the two organizations in the field of
public information. Article VII takes note of the
function of UNESCO "to collaborate in the work
of advancing the mutual knowledge and under-
1020
Department of State Bulletin
standing of peoples through all means of mass
communication," and provided for a subsidiary
agreement to define the method of coordination.
This subsidiary agreement has not yet been con-
cluded. However, UNESCO has a liaison officer
stationed in the Department of Public Informa-
tion of the United Nations, and the organization
takes part in the Coordmating Committee on In-
formation and the Film Board through which the
United Nations and the specialized agencies clear
activities.
UNESCO has a more extensive and acute prob-
lem in its relations with the U.N. Department of
Public Information than do other specialized
agencies. Like them, it seeks to inform the pub-
lic about its own work, but in a broader and deeper
sense UNESCO is itself an agency for public in-
formation. If this organization is to succeed it
must inform the people of all countries about one
another; inform all people everywhere about the
fundamentals of international peace and security ;
inform everyone, specialists and laymen, about
intellectual and artistic contributions to human
welfare; and constantly develop and improve all
the means of disseminating information, includ-
ing formal and informal education, libraries and
museums, books, newspapers and periodicals,
films, and the radio. Obviously, this is a situation
in which misunderstanding, professional jealousy,
or inadequate cooperating machinery could seri-
ously hamper both UNESCO and the United Na-
tions. As UNESCO gets to work the pi'oblem be-
comes less theoretical. Detailed decisions require
day-by-day adjustments, but looking back over a
period of several months one can see that the trend
of the decisions is toward clearer definition of
UNESCO's paramount tasks in this field. The
more energy, wisdom, and efficiency UNESCO can
demonstrate through a positive program, the more
widely will its position be acknowledged and the
less serious will be the danger of jurisdictional dis-
putes and wasteful duplication.
The statement of this proposition, namely, that
many difficulties will be solved for UNESCO by a
demonstration of energy, wisdom, and efficiency in
carrying out a positive program, throws into relief
the major problems of obtaining competent per-
sonnel and of developing good administrative
practices. The organization shares these problems
with the rest of the United Nations system, but
in some respects they are more acute for UNESCO
than for other agencies. On the one hand, the
program of UNESCO is less tangible and by its
nature more experimental than the work of most
other agencies; on the other, the people whose
talents have to be drawn ujion are often individ-
ualists, unaccustomed to any discipline except that
of their own consciences and their sense of pro-
fessional ethics, and impatient of the details of
official responsibility. Yet the people who know
how to work in groups, and are methodical and
painstaking in administration, frequently lack the
creative vision and drive that UNESCO needs.
Also, in a new agency, which has to compete
strenuously for public attention, there is a demand
for men and women whose names and achieve-
ments are well known and recognized, and they
must come from all parts of the world if the or-
ganization is to be truly intei'national. The war,
together with the years of struggle before and
after, made great inroads into the world's supply
of well-trained, able people, especially those
trained in the advancement and spread of knowl-
edge, ideas, and the arts. Another factor to be
considered is the reluctance of men and women
already successful in their chosen fields to give up
the relative security of the positions they hold
to move into a new international agency which is,
and has to be, a pioneering venture.
UNESCO is gradually making progress in
building up a good professional team, and conse-
quently in solving its administrative problems.
One of the most important elements in this is the
devotion and the enthusiasm with which the pres-
ent staff — most of whom are still on temporary ap-
pointments— are working to put into the form of
concrete projects the far-reacliing progi-am
mapped out by the General Conference. In a dy-
namic peace, no less than in war, the pressure and
challenge of great tasks to be accomplished often
bring out hidden abilities. In war, however, the
pattern of action and standards of accomplish-
ment are well established, whereas large-scale ef-
forts to organize peace and security and promote
the well-being of the people are relatively new.
In UNESCO, as in the United Nations, it is
difficult to strike a balance between impatience for
results and acquiescence in inadequacy and im-
perfection. The history of governmental institu-
tions in general is instructive, though not entirely
(Continued on page 1047)
May 25, J 947
1031
THE UNITED NATIONS
Relations Between UNESCO and World Health Organization
A significant step in reconciling the broad char-
ter of the United Nations Educational, Scientific
and Cultural Organization (UNESCO) and the
narrower charter of the World Health Organiza-
tion (WHO) was taken by a joint meeting of Ne-
gotiating Committees of the UNESCO Executive
Board and of the Interim Commission of WHO
at UNESCO House, Paris, April 15-16.^
The joint meeting was characterized by a
friendly and serious attempt to develop a mode
of operation which would further the objectives
of both organizations through mutual supportive
action, yet with avoidance of duplication. Cer-
tain basic principles governing the relation be-
tween UNESCO and WHO were accepted by the
committees and, on the basis of these principles,
agreement was reached concerning the coopera-
tive aspects of the immediate UNESCO projects
touching on the field of health. A second joint
meeting of the two committees was set for August
26-27 at Geneva to develop a formal draft agree-
ment for submission to the two organizations.
The report of the joint meeting of the Negotiat-
ing Committees is reproduced below since it repre-
sents the first agreed statement between UNESCO
and WHO.
REPORT OF THE FIRST JOINT MEETING OF THE NEGOTIATING COMMITTEES OF UNESCO EXECU-
TIVE BOARD AND THE INTERIM COMMISSION OF THE WORLD HEALTH ORGANISATION ^
Unesco House, Paris, April 15th-16th, 1947
For the purposes of the present discussions the
Negotiating Committees were guided by the pro-
visions of their respective Constitutions and by the
following considerations.
1. The Negotiating Committees recognise that
certain Specialised Agencies, including the World
Health Organisation, must rely upon scientific
' The organizations were represented by the following
negotiating committees :
UNESCO Executive Board: Edward Ronald Walker
(Australia), Chairman; H. R. Kruyt (Netherlands) ;
Manuel Martinez-Baez (Mexico) ; Paulo Carneiro
(Brazil).
WHO Interim Commission: H. van Zile Hyde (United
States), Chairman; A. Cavaillon (France) ; H. Geraldo de
Paula Souza (Brazil); Melville MacKenzie (United
Kingdom).
= UNESCO/O.M.S./3/1947. Paris, Apr. 16, 1947.
1022
research, education and organisation as a basis for
much of their work, and that it is appropriate for
such Agencies to be primarily responsible for the
encouragement of research, education and the
organisation of science in the fields most relevant
to their constitutional responsibilities. It was
accepted that Unesco's principal initiative would
therefore be in fields not covered by the Constitu-
tions of other Specialised Agencies.
2. It was also agreed that the lines of demarca-
tion that are convenient for administrative pur-
poses should not be allowed to check the growth
of free enquiry or to cause the neglect of border-
line problems, and Unesco is concerned in gen-
eral with the relation between the pure and ap-
plied sciences in all fields. There w'ilh always be
areas of common interest in which Unesco and
Department of State Bulletin
the World Health Organisation will wish to co-
operate and to coordinate their action, including
the sciences basic to health.
Arrangements for Cooperation
The Negotiating Committees are in agreement
that every effort should be made for full coopera-
tion at all levels, namely the organisational, the
expert ajid the secretariat levels, in regard to
fields of common interest.
Until permanent machinery is established for
this purpose, the two Negotiating Committees will
meet as often as may be necessary to consider
specific i:)roblenis as they arise and to develop a
draft formal agreement for submission to the two
Organisations.
Meanwhile the respective secretariats will keep
each other fully informed concerning progi-ammes
and projected activities in which there is mutual
interest and will submit to the Negotiating Com-
mittees, for joint consideration, any matters re-
garding which there may be doubt as to the ap-
propriate action and division of responsibility.
The Negotiating Committees agree that it should
be the regular practice of each organisation to in-
vite the other to be represented, at the appropriate
level, on any of its Committees or panels of experts
dealing with matters of common interest as deter-
mined by the Negotiating Committees.
It was agreed that the Secretariats of the two
organisations should proceed with the preparation
of a draft formal agreement (having regard to the
considerations set out in this paper) for the con-
sideration of the Negotiating Committees at their
next joint meeting.
The Negotiating Committees considered jointly
cei'tain projects of Unesco in which early action
is j^lanned and reached the following decisions:
(i) With regard to coordination of non-govern-
mental organisations, in the field of health, it was
agi'eed that Unesco should refrain from any fur-
ther action and that in implementation of the Gen-
eral Conference's resolution to "endeavour to
stimulate the setting up of international advisory
councils in the fields of engineering, medical and
agricultural sciences", Unesco would convey to
'the Interim Commission the terms of that resolu-
tion, and would consider that its mandate has
thereby been fulfilled so far as it applies to medical
science:
THE UNITED NATIONS
(ii) With regard to the proposal that interna-
tional scientific laboratories be established under
the aegis of the United Nations, the Unesco
Committee informed the Committee of the Interim
Commission that Document Unesco/Nat.Sci/
24/1947 (copies of which had already been for-
warded to the Executive Secretary of the Interim
Commission) had been prepared at the request of
the Economic and Social Council and was now
before the Council for its consideration. The
W.H.O. Negotiating Committee felt that further
consideration of the document by the Interim
Commission would be necessary before it could be
usefully discussed in joint session.
(iii) In connection with Unesco's plans to
improve scientific documentation and abstracting
it was agreed that the Interim Commission should
be invited to arrange for appropriate representa-
tion on any committee or at other discussions on
this matter. The Interim Commission's Negoti-
ating Committee called attention to the statutory
responsibilities of the Interim Commission and
W.H.O. in regard to publications (including ab-
stracts) in the field of health;
(iv) In relation to fellowships, both Commit-
tees recognised the need for coordination of pro-
grammes and received a verbal report of prelimi-
nary discussions already held under the auspices
of the United Nations. It was agreed that the
Secretariats would exchange information regard-
ing the programmes and proposed programmes of
the two organisations, and consult with a view to
their coordination ; and any problems and differ-
ences of opinion resulting therefrom will be re-
ferred to the Negotiating Committees.
(v) It was agreed that the Interim Commission
will place at the disposal of Unesco any infor-
mation it may have available which will assist
Unesco in carrying out its programme of re-
construction of devastated laboratories and that
Unesco will keep the Interim Commission in-
formed of the progress of this programme.
(vi) With regard to Unesco Field Science
Cooperation Offices, it was agreed that any matters
regarding health which come to the attention of
such offices will be referred to the Interim Com-
mission, directly or at such levels as may be de-
termined by the Interim Commission. It was con-
sidered that it might become desirable at a later
date for W.H.O. liaison officers to be attached to
Unesco Field Science Offices. It was agreed
May 25, 1947
1023
THE UNITBD NATIONS
that Unesco will consult with the Interim Com-
mission in developing its plans for Field Science
Offices and that the Interim Commission will keep
Unesco informed concerning the field organisa-
tion of the Interim Commission and the planning
in regard to the regional structure of the W.H.O.
(vii) It was agreed that the Unesco Secre-
tariat would discuss with the Secretariat of the
Interim Commission the question of health educa-
tion as part of fundamental and academic educa-
tion with a view to subsequent consideration by the
Negotiating Committees of further collaboration
m this field.
(viii) Hylean Amazon Basin project. It was
recognised that in view of the urgent problems with
which the Interim Commission is faced and the
limits of its authority, it would probably not be
able at this time to take an active role in this proj-
ect. The Unesco Committee explained that a
small mission is proceeding to Brazil to assist in
preparing an inter-governmental Conference
which will consider plans for this project; and the
Unesco mission has already been instructed to
consult with the Director of the Pan-American
Sanitary Bureau. It was agreed that Unesco
would invite the Interim Commission of the
W.H.O. to be represented at the contemplated
Conference, and that Unesco would meanwhile
keep the Interim Commission informed of the
progress of this project.
(ix) Nutritional Science Proposals. The
Unesco Conunittee explained that the General
Conference, at the instance of certain delegations,
had approved the establishment of Nutritional Sci-
ence and Food Technology Field Teams in various
countries. The Executive Board recognised that
any action in this field would be the primary re-
sponsibility of the W.H.O. and F.A.O. It was
agreed that Unesco should refer the General Con-
ference proposal to the Interim Commission and
the F.A.O. for consideration by their joint Com-
mittee, with the suggestion that Unesco be invited
to be represented at the committee when this
matter is under consideration.
' Adopted by a vote of 45 In favor, 7 against, and 1
abstention at the 79th meeting of the General Assembly,
first special session, on May 15, 1947. The resolution was
submitted by Committee I, Political and Security Com-
mittee, on May 13. The text of the resolution is contained
In General Assembly doe. A/307 of May 13, 1947, pp. 8-9.
1024
In regard to other matters of common interest
in which Unesco does not contemplate early ac-
tion (including "Mass media and Medical Science"
and Sociological Aspect of Medicine), it was
agreed that the Unesco Committee would fur-
nish the Interim Commission Committee with ex-
planatory memoranda as a basis for future dis-
cussion.
On the invitation of the Interim Commission
Committee it was agreed to hold the next joint ses-
sion of the Negotiating Committees in Geneva, on
the 26th and 27th August.
Resolution Establishing Special
Committee on Palestine^
Whereas the General Assembly of the United
Nations has been called into special session for the
purpose of constituting and instructing a Special
Committee to prepare for the consideration at the
next regular session of the Assembly a report on
the question of Palestine,
The General Assembly
Resolves that:
1. A Special Conunittee be created for the above-
mentioned purpose consisting of the representa-
tives of Australia, Canada, Czechoslovakia, Guate-
mala, India, Iran, Netherlands, Peru, Sweden,
Uruguay and Yugoslavia ;
2. The Special Committee shall have the widest
powers to ascertain and I'ecord facts, and to in-
vestigate all questions and issues relevant to the
problem of Palestine ;
3. The Special Committee shall determine its
own procedure;
4. The Special Committee shall conduct in-
vestigations in Palestine and wherever it may
deem useful, receive and examine written or oral
testimony, whichever it may consider appropriate
in each case, from the mandatory Power, from
representatives of the population of Palestine,
from Governments and from such organizations
and individuals as it may deem necessary;
5. The Special Committee shall give most care-
ful consideration to the religious interests in
Palestine of Islam, Judaism and Christianity ;
6. The Special Committee shall prepare a re-
Deparfmenf of Sfofe Bulletin
port to the General Assembly and shall submit
such proposals as it may consider appropriate for
the solution of the problem of Palestine;
7. The Special Committee's report shall be com-
municated to the Secretary-General not later than
1 September 1947, in order that it may be circu-
lated to the Members of the United Nations in
time for consideration by the Second Kegular
Session of the General Assembly ;
The General Assembly
8. Requests the Secretary-General to enter
THE UNITED NATIONS
into suitable arrangements with the proper au-
thorities of any state in whose territory the Com-
mission may wish to sit or to travel, to provide
necessary facilities, and to assign appropriate
staff to the Commission ;
9. Authorizes the Secretary-General to reim-
burse travel and subsistence expenses of a repre-
sentative and an alternate representative from
each government represented on the Commission
on such basis and in such form as he may deter-
mine most appropriate in the circumstances.
Meeting of International Civil Aviation Organization
ACTIONS TAKEN BY COMMISSION ON DRAFT AGREEMENT WITH U.N.
AND ON DEBARMENT OF SPAIN >
Action looking toward debarment of Franco
Spain from the International Civil Aviation Or-
ganization was initiated on the morning of May 8
at a Commission session of the first ICAO assem-
bly meeting in Montreal.
The United States introduced and the United
Kingdom seconded a motion to ratify the draft
agreement with the United Nations, accept the con-
dition of that agreement requiring debarment of
Spain, and to amend the convention governing
ICAO so as to make possible debarment of Spain.
Pending coming into force of that amendment
through ratification by member states, the resolu-
tion also would declare the wish of the assembly
that the present Government of Spain should not
participate in the assembly or other ICAO
activities.
The debate in the Commission found Portugal,
Argentina, the Union of South Africa, and Ire-
land joining Spain in opposition to expulsion.
The U.S.-U.K. motion was supported by China,
France, Czechoslovakia, and Canada.
Additional discussion was scheduled for the
afternoon, with an early vote expected since the
Commission is under instructions to report a pro-
posal promptly to a plenary session of the
assembly.
Opposition to the motion stressed the belief that
ICAO was a technical organization which would
May 25, 1947
lose its effectiveness if subjected to political con-
siderations.
Backers of the resolution declared that affilia-
tion with the United Nations was more important
to the organization than the loss of Spain and that
the same nations which voted against Spain at the
United Nations could not logically take a different
position at ICAO.
The Commission of the International Civil Avi-
ation Organization's first assembly meeting in the
afternoon of May 8 voted to accept the draft agree-
ment with the United Nations, along with the
United Nation's Assembly resolution stipulating
debarment of Franco Spain as a condition of the
relationsliip. The Commission action will be pre-
sented to a plenary session of the assembly for
final action, together with a proposed amendment
to the convention of the organization setting up
machinery for debarment and re-admission.^"
The Commission, on May 8, was considering the
amendment to the convention on debarment. It
had before it a Canadian proposal to permit re-
admission to the organization by a majority in-
stead of a two-thirds vote.
' In session in Montreal since May 6, 1947.
' U.N. press releases ICAO/7 and ICAO/8 of May 8, 1947.
*On May 13 ICAO voted 27 to 3 for debarment of Spain
from participation in the organization.
1025
Meeting of Committee on Progressive Development of
International Law and its Codification
STATEMENT BY PHILIP C. JESSUP >
The United States attaches the greatest impor-
tance to the progressive development of interna-
tional law and its codification. One hundi-ed and
sixty years ago the framers of the Constitution of
the United States recognized the importance of
providing for the clarification of rules of interna-
tional law and for their enforcement. They ac-
cordingly included in the Constitution a provision
which gives to the Congress the power "to define
and punish offenses against the law of nations". In
numerous decisions rendered throughout the his-
tory of this country, the Supreme Court of the
United States and other courts have frequently re-
iterated the view that "international law is part
of our law". The Executive branch of our Govern-
ment has similarly on innumerable occasions indi-
cated its undeviating respect for international law
and its belief in the need for its continuous appli-
cation and development. In 1937 Secretary of
State Cordell Hull, in outlining the fundamental
bases of American foreign policy, declared, "We
stand for revitalizing and strengthening of inter-
national law." In 1943 the late President Koose-
velt, in a letter addressed to the American Society
of International Law, remarked :
"Men on the battlefields are dying that civiliza-
tion may be saved and that law by which we have
learned to govern our conduct toward our neigh-
bor, and not force, shall prevail. The body of law
under which our civilization must advance must
be a steadily growing one, tempered by past experi-
ence but capable of fulfilling the needs of a rapidly
changing world. The world must have such law
for its dependence. It cannot permit a recurrence
of the present reign of lawlessness."
' Made on May 13, 1947, at Lake Success at the second
meeting of the Committee on the Progressive Development
of International Law and Its Codification and released
to the press by the U.S. Mission on that date. Mr. Jessup
is the U.S. Representative on that Committee. Also con-
tained in General Assembly doc. A/AC.lO/ll, May 13, 1947.
On October 23, 1946, President Truman, in re-
ferring to the development of the work of the
United Nations, pointed out that "we cannot suc-
ceed without setting fundamental precedents in the
law of nations." In an address two weeks ago,
Ambassador Austin outlined an eight-point pro-
gram which the United States must pursue to
achieve collective security through the United Na-
tions. One of those points reads as follows :
"We must lend our full support to the develop-
ment and application of international law, particu-
larly the laws against war which for the first time
have been enforced against individuals by the
Niirnberg and Far Eastern Tribunals."
The United States joined with China in putting
upon the agenda of the second part of the first
session of the General Assembly the item which
led to the adoption of the resolution creating this
Committee which is now beginning its work. The
United States called attention to the fact that ar-
ticle 13, paragraph 1, subparagraph (a), of the
Charter places upon the General Assembly the
duty of "encouraging the progressive develop-
ment of international law and its codification".
The General Assembly has taken the first step by
creating this Committee and by entrusting to it the
task of studying and reporting on the methods
and procedures by which this vital duty may be
discharged. The United States also had the privi-
lege of placing upon the agenda of the General
Assembly the item which led to the adoption of a
further resolution which entrusts to this Commit-
tee the task of making plans "for the formulation,
in the context of a general codification of offenses
against the peace and security of mankind, or of an
international criminal code, of the principles rec-
ognized in the charter of the Niirnberg Tribunal
and in the judgment of the Tribunal". We are in-
structed to treat this "as a matter of primary im-
portance." The United States also had the honor
of joining with the Delegations of Panama, El
1026
Department of State Bulletin
Salvador, and Poland in proposing that the draft
declaration on the rights and duties of states
should be referred to this Committee.
It is thus clear that the United States not only
attaches the highest importance to the work upon
which this Committee is engaged, but also that it is
prepared to move forward as rapidly and as effec-
tively as possible to the end that all relations
among states shall be subjected to the rule of law.
The task is by no means an easy one. The gov-
ernments of the world have had abundant experi-
ence with the problem of developing and codifying
international law. It is unnecessary for me to
review the steps in that experience ; they have been
admirably summarized for our convenience in the
documents which the Secretariat has prepared un-
der the able direction of our Secretary, Dr. Yuen-li
Liang. Perhaps the chief lesson to be learned
from a study of this experience, which extends
over the course of a century, is that the develop-
ment of law is necessarily a slow and deliberate
process. We cannot overlook the fact that the
peoples of the world look anxiously upon our de-
liberations in the hope that law and the processes
of law will be fully substituted for the use of force
in international relations. We must not disap-
point their expectations, but it must be recognized
that no complete code of international law can
spring full-panoplied from the brows of any
group established by the United Nations, or by any
organization of any character. One has only to
reflect upon the slow and deliberate steps which
have marked the development and codification of
law within the various states of the world. While
we must therefore avoid raising exaggerated hopes,
we must at the same time make recommendations
which will demonstrate that this task is no side
issue but one of central importance in the whole
program of the United Nations.
The difficulties and necessities of the situation
are fuUy recognized in the resolution of the Gen-
eral Assembly establishing this Committee when
it refers to the "eventual codification" of interna-
tional law and when it stresses first the progressive
development of that law. The United States
shares the view that it is to the progressive devel-
opment of the law of nations that we must look for
the greatest contribution. At the same time it is
impossible to ignore the fact that the practice of
states over a very long period of years has created
May 25, 7947
743638 — 17 3
IHB UNITED NATIONS
a body of customary international law which has
frequently been applied by both national and in-
ternational tribunals and which has governed the
conduct of states in their mutual relations. Like
all customary law, this body of legal principles
cannot always be easily stated with precision. The
record of the precedents and practices which are
the stuff of which it is made are scattered in nu-
merous state papers and government documents
and in the works of jurists who have devoted their
lives to their examination and analysis. It is a
painstaking and exacting task requiring the ef-
forts of the most skilful and impartial scholars to
reflect accurately this customary practice of states.
The United Nations can here be of assistance in
stimulating the publication, by governments and
by private initiative, of digests or other compila-
tions revealing such practice.
International law, however, is not static. Since
it is a reflection of international relations which
are constantly changing and developing with the
l^assage of the years, no customary law can develop
with the rapidity of the march of human events.
It is for this reason that, within states, legislation
is constantly necessary to meet the problems of the
day. We do not have in our international society
a legislature with power to pass laws with the same
facility which characterizes the operations of na-
tional legislatures. States in the international
society move through a more cumbersome process
of adopting treaties in which they lay down agreed
rules for future conduct.
The task of this Committee thus embraces the
dual function of planning for the ascertainment
and reflection of the existing customary law, and
of devising the most appropriate procedures for
the development of new law to meet the world's
needs. These two aspects of the task must always
be kept distinct in our discussions because it is our
mandate to study and to report on methods and
procedures, and such methods and procedures vary
according to whether one or the other aspect of our
work is involved.
The United States has ventured to lay before the
Committee a paper embodying in brief outline
certain suggestions relative to that part of our task
which is envisaged by item 3(a) of the provisional
agenda. These suggestions are not advanced in
any dogmatic spirit but solely as a possible aid in
our discussions. The United States does wish,
1027
THE on;ted nations
however, to emphasize the points stated in para-
graphs 2 and 3 of the paper to which I have re-
ferred. These paragraphs read as follows :
"2. The basic consideration in the choice of these
methods should be the recognition of the prime
importance of the task of encouraging the progres-
sive development of international law and its
codification.
"3. The first step which should be taken to
achieve this end is the creation of an effective in-
strument for the continuation of the work."
We are also convinced that in the development
of these two basic considerations, it will be neces-
sary to secure the full-time services of the most
highly skilled and competent individuals, as in-
dicated in the fourth paragraph of our suggestions.
There are no doubt aspects of the work of progres-
sively developing and codifying international law
which require direct consideration and treatment
by representatives of governments acting in re-
sponsible official capacities. Nevertheless, there
are other aspects of the work in regard to which
highly technical, scientific, legal assistance is abso-
lutely essential if the task is to be satisfactorily
carried on. In suggesting a term of three years
for which the members of a United Nations Com-
mission of Experts on International Law might be
chosen, the United States is far from suggesting
that this term is sufficient for the completion of the
task or of any substantial part of it. The em-
l^hasis is rather laid upon flexibility and upon the
constant need for reconsideration of plans in the
light of experience.
The suggestions of the United States in para-
graphs 5 and 6 are directed toward the solution of
the problem of the most appropriate method for
insuring the selection of these experts.
Paragraph 8 of the suggestions which we have
laid before you is designed to stress the point that
in all stages of the work it is most desirable to
provide for the fullest cooperation of all persons
and groups competent to render aid. The pro-
cedures adopted must at each step provide suffi-
cient time to allow for the most careful study and
formulation of views. Under other items of the
agenda it will be appropriate to consider the ways
in which the fullest cooperation of other groups,
and particularly of all organs of the United
Nations, may be assured.
Paragraph 8 and paragraph 9 of the sugges-
tions also recognize the important consideration
that all of this Tvork must head up in the Gen-
eral Assembly, although it is recognized that the
action of the General Assembly may take a variety
of forms. In some instances it may prove desir-
able that a scientific statement by experts should
merely be published in order that it may com-
mand that attention and respect which is inher-
ent in the quality of the product and in the au-
thority of the individuals who have been engaged
in its formulation. In other instances the Gen-
eral Assembly may desire to place its stamp of
approval upon such work by the adoption of a
resolution. In still other cases the nature of the
subject matter and of the report may indicate
the advantage of drafting a convention which
would be submitted to governments for rati-
fication.
The concluding paragraphs of the suggestions
recognize the need for continuing utilization of
the expert services of the Secretariat and of other
experts. It suggests that experience indicates the
utility of preliminary work by a small group of
specialists which can advise a rapporteur on the
formulation of a preliminary draft. It takes into
account also the lesson of experience which points
to the utility of the conference method in connec-
tion with the development of rules, especially on
certain types of subjects.
It has not seemed necessary in formulating
these suggestions in bare outline, to dwell upon
the important role which has been and will be
played by international and by national tribunals
in the progressive development of international
law. The lawyer trained in the system of the
common law takes for granted such jurispruden-
tial development. The Permanent Court of In-
ternational Justice developed a model system of
documentation, and the International Court of
Justice will no doubt continue this high stand-
ard. Other judicial decisions are less conveniently
accessible, and this Committee may well consider
methods for the improvement of this situation.
It is not unreasonable to hope that in the future
the jurisprudence of international law may be
consulted as readily as one can now consult the
great accumulation of modern multipartite treaty
materials which will continue to be registered and
published by the United Nations.
1028
Department of State Bulletin
It seems unnecessary at this time to expound in
greater detail the proposals wliicli are thus briefly
laid before you. No doubt there will be oppor-
tunity as our work progresses for the discussion
of such details, and the United States will be pre-
pared to offer additional suggestions from time
to time.
It would be a grave error, in my opinion, for
the Committee to approach its task with any nar-
row definition of the problem with which it is
called upon to deal. The proposals relative to
the rights and duties of states which were laid
before the General Assembly by the distinguished
Representative of Panama and which have in turn
been referred to this Committee for consideration
of appropriate procedures and methods, suggest
an approach to the statement of certain funda-
mental principles. Our work includes also plans
for the humble and humdrum elaboration of law
which will govern many of the highly practical but
unspectacular aspects of international relations.
The history of the development of international
law shows the practical utility of the formulation
and adoption of uniform rules governing such
practical matters as uniform bills of lading, the
unification of rules relating to maritime liens and
mortgages, and a great variety of technical ques-
tions. This part of the international development
of law happily has become almost routine, but it
THE UNITED NATIONS
cannot for that reason be ignored, and the recom-
mendations which we make to the General Assem-
bly should be directed to the improvement of the
international procedures by which this develop-
ment will continue to take place. At the other
extreme, there lies the vastly important and diffi-
cult problem of substituting legal rules and legal
processes for the lawless use of force in settling
controversies between nations.
No human society is free from conflict; the tri-
umph of human civilization is the gradual sub-
stitution of law and order for the savage violence
of primitive man in the resolution of those in-
evitable conflicts. It is to the United Nations that
the peoples of the world now look for release from
the scourge of war through the establishment of
the rule of law. It is our privilege and our heavy
responsibility as members of this Committee on
the Progressive Development of International
Law and Its Codification to suggest the way in
which these aspirations of the peoples of the world
may be satisfied. To many of those who long anx-
iously for peace and security, progress will seem
to move with discouraging delay. We cannot hold
out false hopes by suggesting that the process is
not slow, but we may suggest in the words of a
great American statesman, Elihu Root, that it is
"slow as measured by our lives, perhaps, but not
slow as measured by the lives of nations".
SUGGESTIONS BY THE UNITED STATES >
1. Item 3 (a) of the provisional agenda is as fol-
lows:
"Study of the methods by which the General
Assembly should encourage the progressive de-
velopment of international law and its eventual
codification."
2. The basic consideration in the choice of these
methods should be the recognition of the prime
importance of the task of encouraging the pro-
gressive development of international law and its
codification.
3. The first step which should be taken to
achieve this end is the creation of an effective in-
strument for the continuation of the work.
May 25, 1947
4. The continuation of the work should be en-
trusted primarily to a United Nations commission
of experts on international law. Such a commis-
sion should be established by the General Assem-
bly for a period of three years at the end of which
time the situation should be re-examined with a
view to determining whether the Commission
should be continued on a permanent basis or
whether some new form of organization should be
provided by the General Assembly in the light of
experience. Consideration may also be given to
' Released to the press by the U.S. Mission on May 13,
1947. Also contained in General Assembly doe. A/AC.IO/
14, May 12, 194T.
1029
THB UNITED NATIONS
the continuation by the General Assembly of the
present Committee on the Progressive Develop-
ment of International Law and its Codification or
of a similar committee of government representa-
tives which could serve as a general programming
and policy group to assist the commission of
experts.
5. The commission of experts should be com-
posed of persons of outstanding competence in the
field of international law. The commission should
be so established and so constituted as to create a
body of great prestige consonant with the impor-
tance of the task which is to be entrusted to it.
With this end in view, the term of office of mem-
bers of the commission and their compensation
should be such as to attract persons of the highest
prominence and attainments. A term of tlu'ee
years would seem to be appropriate.
6. In order to insure the selection of the most
competent experts, they should be elected by the
General Assembly and the Security Council
through a procedure comparable to that now pro-
vided for the election of judges of the Interna-
tional Court of Justice. Consideration may be
given to the question whether the nominations
should be made by a procedure comparable to that
prescribed in articles 5 and 6 of the Statute of the
Court or directly by governments.
7. The task of the commission should be envis-
aged as falling into two distinct parts: first, the
progressive development of international law and
second, its codification. These two parts should be
understood as contemplating, first, the prepara-
tion of drafts upon such subjects as may be re-
ferred to the commission by the General Assembly,
or upon such other subjects as the commission
might detei'mine to be in need of this type of
treatment; and second, the scientific restatement
of existing rules and principles of international
law.
B. The procedures to be utilized by the commis-
sion should envisage a series of stages :
(a) The determination by the commission of the
project upon which work is to be imdertaken.
(b) Cooperation with such other expert groups,
whether governmental or non-governmental, as
might be found appropriate in each instance with
a view to enlisting universal support and assistance
in the development of each project.
(c) The elaboration of a draft text prepared by
the commission in the light of such suggestions as
might be received through the cooperation indi-
cated in the preceding paragraph.
{d) The submission of the draft through the
Secretary-General to the governments of all mem-
bers of the United Nations with a view to the
transmission of comments and suggestions for the
elaboration of which adequate time should be
provided.
(e) Reconsideration of the draft text by the
commission in the light of the observations of the
governments.
(/) Transmission of the revised text to the Gen-
eral Assembly with recommendations for action
thereon either by I'esolution of the General Assem-
bly ; by the adoption of a convention to be submit-
ted to governments for ratification; or by simple
authorization of the publication of the report.
9. The General Assembly might, at its discre-
tion, refer a report of the commission to its Sixth
Committee for recommendations. It might also,
in the interest of facilitating more deliberate study
than would be possible during its session, provide
for previous examination of a report of the com-
mission by a small group, composed of representa-
tives of governments, which might be considered
as in the nature of a special subcommittee of the
Sixth Committee.
10. In all stages of its work, the commission
should be able to draw upon the expert services of
the Secretariat. It should moreover be authorized
to enlist the assistance of individual experts of
special competence in particular topics under con-
sideration. It should be envisaged that in most
cases the commission would provide for prelim-
inary investigation and drafting by rapporteurs
assisted by a small committee composed of mem-
bers of the commission or of other persons selected
by the commission or of both. There may also be
many instances in which it will be found advan-
tageous to prepare conventions, especially on sub-
jects of a technical nature, through international
conferences convoked for that purpose by an organ
of the United Nations, by a specialized agency, or
by a government. The commission should be pre-
pared to render expert assistance in the prepara-
tion and work of such conferences.
1030
Department of State Bulletin
Meeting of the Economic Commission for Europe ^
DISCUSSION ON EUROPEAN CENTRAL INLAND TRANSPORT ORGANIZATION, THE EMERGENCY
ECONOMIC COMMITTEE FOR EUROPE, AND THE EMERGENCY COAL ORGANIZATION'
After the conclusion of geneial statements by the
delegations, the Economic Commission for Europe
(ECE) on May 7 entered into the second stage of
its session. Winding up the first stage, the chair-
man announced that the secretariat had been in-
structed to prepare an analysis of all statements
after requesting further clarifications from the
delegations so that the next session of the Eco-
nomic Commission for Europe, after determining
whether all suggestions from the delegations are
within the terms of reference, may easier map out
the future work according to the desires of the
delegations.
Since May 6 the Economic Commission for
Europe has been considering the question of the
termination, absorption, or reorganization of the
European Central Inland Transport Organization
(ECITO), the Emergency Economic Committee
for Europe, and the Emergency Coal Organization
(ECO).
On the European Central Inland Transport
Organization, the Commission heard ECITO
Representative Zielinski stress the need to continue
the ECITO activities for a transition period until
the conclusion of a new arrangement with the
Economic Commission for Europe, and to express
concern of the non-payment of contributions in ar-
rears by Czechoslovakia, Netherlands, Poland,
Union of Soviet Socialist Republics, and Yugo-
slavia, which was the subject of a cable by ECITO
to the Secretary-General. The Secretary-Gen-
eral's reply is that until the United Nations,
through ECE, concludes an agreement with
ECITO, the United Nations cannot take action,
and it is up to the members of ECITO to meet the
situation. The Commission then considered a
tentative draft resolution prepared by the secre-
tariat convening a meeting of transport experts
to recommend to ECE functions and organiza-
tional arrangements for the absorption or termina-
tion of ECITO. France and the Soviet Union
submitted amendments, and a protracted discus-
sion followed.
On the ECE and the Emergency Economic Com-
mittee for Europe (EECE), the Commission set
up two subcommittees, each composed of one rep-
resentative of each delegation ; first, to consult with
participating representatives of member govern-
ments of ECO or EECE with a view to prompt
termination of the latter organization; secondly,
to consider which of the present activities of ECO
or EECE it is essential to continue after the ter-
mination of EECE and the manner in which those
continuing activities should be performed ; thirdly,
to submit a report for consideration by the Com-
mission at the present session on the result of the
above consultations and deliberations.
ECE decided that the transport experts are to
meet in Geneva on May 27.
In a private morning meeting on May 10 the
heads of the delegations heard a statement from
the executive secretary on the organization of
the secretariat of the Economic Commission for
Europe. There was general agreement that the
Commission should endeavor to reach a positive
decision before the close of this session on the
major points which the Emergency Coal Organi-
zation (ECO) had referred to it for urgent
consideration.
An afternoon public meeting of the Committee
on the ECO unanimously adopted a draft resolu-
tion prepared on May 9 by the drafting subcom-
mittee, recommending, first, that the ECO con-
tinue until the transfer of its function to the
Economic Commission for Europe ( ECE ) , which
is to be not later than the end of 1947 ; secondly,
that the executive secretary of the ECE take
the views of member governments, the chairman
of the ECO, and such experts deemed necessary,
to prepare for the second session concrete pro-
posals regarding the structure of the future coal
body of the ECE.
■ In session in Geneva since May 2, 1947.
' U.N. press releases EC/146 of May 8 and EC/147 of
May 10.
Moy 25, J 947
1031
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings
In Session as of May 18, 1947
Far Eastern Commission . . .
United Nations:
Security Council
Military Staff Committee . . .
Commission on Atomic Energy ,
Commission on Conventional Armaments ,
Committee on Progressive Development and Codification of Inter-
national Law.
German External Property Negotiations (Safehaven):
With Portugal
With Spain
Inter- Allied Trade Board for Japan
International Conference on Trade and Employment: Second Meet-
ing of Preparatory Committee.
ICAO (International Civil Aviation Organization): First Meeting of
General Assembly.
ILO (International Labor Organization): Industrial Committee on
Inland Transport.
Congress of the Universal Postal Union
CITEJA (International Technical Committee of Aerial Legal Ex-
perts): 16th Session.
Council of Foreign Ministers: Commission To Examine Disagreed
Questions of the Austrian Treaty.
FAO (Food and Agriculture Organization) : Rice Study Group . . .
International Radio Conference
PMCC (Provisional Maritime Consultative Council)
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lisbon
Madrid
Washington
Geneva . .
Montreal .
Geneva . .
Paris . .
Montreal
Vienna .
Trivandrum, Travancore, In-
dia.
Atlantic City.
Paris . . . .
1946
Feb. 26
Mar. 25
Mar. 25
June 14
1947
Mar. 24
May 12
1946
Sept. 3
Nov. 12
Oct. 24
1947
Apr. 10
May 6
May 7-17
May 7
May 10
May 12
May 15
May 15
May 16
' Prepared in the Division of International Conferences, Department of State.
1032
Deparlmenf of State Bulletin
Calendar oj Meetings— Continued
Scheduled for May-July 1947
United Nations:
ECOSOC (Economic and Social Council) :
Fiscal Commission
Subcommission on Freedom of Information and of the Press . .
Subcommission on Statistical Sampling
Economic and Employment Commission
Human Rights Drafting Committee
Fifth Session
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Preparatory Conference of Experts on Telecommunications . . .
Economic Commission for Europe:
Second Session
Transport Session
German External Property Negotiations With Turkey (Safehaven) .
FAO (Food and Agriculture Organization):
Subcommittee on Plant and Animal Stocks
Executive Committee
Panel on Soil Erosion Control
lEFC (International Emergency Food Council) : Fourth Meeting . .
Eleventh International Congress of Military Medicine and Phar-
macy.
ECITO (European Central Inland Transport Organization): Seventh
Session of the Council (Second Part).
International Cotton Advisory Committee: Sixth Meeting
ILO (International Labor Organization):
102d Session of Governing Body
30th Session of International Labor Conference
Permanent Agricultural Committee
ICAO (International Civil Aviation Organization):
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
Caribbean Commission: Fourth Meeting
lARA (Inter- Allied Reparation Agency): Meeting on Conflicting
Custodial Claims.
UNRRA Council: Seventh Session
International Sugar Council
International Telecommunications Plenipotentiary Conference . . .
International Council of Scientific Unions: Executive Committee . .
International Rubber Study Group
Fourth International Congress of Administrative Sciences
UNESCO Executive Board
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Shanghai . .
Lake Success .
Lake Success .
Geneva . . .
Geneva . . .
Ankara . . .
Washington .
Washington .
Washington .
Washington .
Basel ....
Paris ....
Washington .
Geneva . . .
Geneva . . .
Geneva . . .
Lima ....
Rio de Janeiro
Jamaica . . .
Brussels . . .
Washington .
London . . .
Atlantic City .
Paris ....
Paris ....
Bern ....
Paris ....
1947
May 19
May 19
June 2
June 2
June 9
July 19
June 16
June 23 '
June 16
June 23
May 27
May
May 26-30
June 2
June or July
May 26-27
June 2-7
June 3
June 9
June 13-17
June 19
July
June 17
July 15
June 23-30
June
June
June or July
July 1
July 1-2
July 1
July 20-27
July
' Tentative.
May 25, 1947
1033
ACTIVITIES AND DEVEiOPMENTS
U.S. DELEGATION TO INTERNATIONAL
RADIO CONFERENCE
[Released to the press May 14]
The Secretary of State announced on May 14
that the President has approved the composition
of the United States Delegation to the Interna-
tional Radio Conference, which is scheduled to be
held at Atlantic City, N. J., beginning on May 15.
The nominations were submitted by the Secretary
of State upon the recommendation of interested
departments and agencies of this Government.
The International Radio Conference is the first
of a series of three international telecommunica-
tions conferences sponsored by the International
Telecommunication Union, with headquarters at
Bern, of which the United States Government is
a member. The International Telecommunica-
tions Plenipotentiary Conference will convene at
Atlantic City on July 1, and the International
High-Frequency Broadcasting Conference will
meet immediately after the close of the Interna-
tional Radio Conference.
The convention of the International Telecom-
munication Union, adopted at Madrid in 1932,'
and its appended regulations, adopted at Cairo
in 1938,^ govern the world-wide operation of tele-
communications. At the Five Power Preliminary
Telecommunications Conference, held at Moscow
in September 1946, the representatives of China,
France, the United Kingdom, the Union of Soviet
Socialist Republics, and the United States agi-eed
that the existing telecommunications convention
and regulations required urgent revision, and to
this end these conferences are being convened.
The objective of the International Radio Confer-
ence will be a complete revision of the existing
International General Radio Regulations adopted
at Cairo in 1938.
The United States Delegation is listed as fol-
lows :
Chairman
Charles R. Denny, Chairman, Federal Communications
Commission
Vice chairman
Francis Colt de Wolf, Chief, Telecommunications Division,
Department of State
' Treaty Series 867.
= Treaty Series 948.
Delegates
Gordon L. Caswell. Capt., U.S.N., Fleet Operations, Com-
munication Officer, Navy Department
J. Howard Dellinger, Ph.D., Sc.D., Chief, Central Radio
Propagation Laboratory, Division 14, National
Bureau of Standards, Department of Commerce
Ewell K. Jett, Commissioner, Federal Communications
Commission
Donald E. JIcKay, Capt., U.S.C.G., Chief, Communications
Division, United States Coast Guard, Treasury
Department
Paul D. Miles, Chief, Frequency Service-Allocation Divi-
sion, Federal Communications Commission
Harvey B. Otterman, Assistant Chief, Telecommunications
Division, Department of State
A. 6. Simson, Consultant, Communications Liaison
Branch, Office of the Chief Signal Officer, War
Department
Edward M. Webster, Commissioner, Federal Communica-
tions Commission
Consultants
Spencer B. Akin, Maj. Gen., U.S.A., Chief Signal Officer,
United States Army, War Department
Harold M. McClelland, Maj. Gen., U.S.A., Commanding
General, Airways and Air Communications Service,
War Department
Earl E. Stone, Rear Admiral, U.S.N., Director of Naval
Communications, Navy Department
Adxnsers
David C. Adams, Assistant to General Counsel, Federal
Communications Commission
Martin D. Berg, Lt. Cmdr., U.S.C.G., Liaison Officer, Divi-
sion of Naval Communications, Navy Department
Robert R. Burton, International Broadcasting Division,
Department of State
John S. Cross, Assistant Chief, Telecommunications Divi-
sion, Department of State
Wilfrid Dean, Jr., Radio Engineer-Technical Adviser for
Navy Frequency Division, Navy Department
John M. Grider, Cmdr., U.S.N., Assistant Head of Navy
Frequency Division of Navy Communications, Navy
Department
C. W. Janes, Lt. Col., Chief, Communications, Liaison
Branch, Office of the Chief Signal Officer, War
Department
Helen G. Kelly, Special Assistant to Chief, Telecommuni-
cations Division, Department of State
Arthur L. Lebel, Telecommunications Division, Department
of State
Roger C. Legge, Jr., Radio Propagation Specialist, Inter-
national Broadcasting Division, Department of State
Walter E. Linaweaver, Capt., U.S.N., Assistant Chief of
Naval Communications, Navy Department
Carl W. Loeber, Assistant Chief, International Communi-
cations Division, Federal Communications Commis-
sion
Donald R. MacQuivey, Divisional Assistant, Telecommuni-
cations Division, Department of State
1034
Department of State Bulletin
Albert L. Mcintosh, Assistant Chief, Frequency Service-
Allocation Division, Federal Communications Com-
mission
LavFton S. F. Sleaker, Radio Engineer, Air Communica-
tions Office, Army Air Forces, War Dei)artment
William F. Minuers, Chief, General Mobile Service Sec-
tion, Federal Communications Commission
John N. Plakias, Communications Attach^, American Em-
bassy, Paris
Lloyd H. Simpson, Radio Liaison Officer, Civil Aeronautics
Administration, Department of Commerce
Florence A. Trail, Telecommunications Division, Depart-
ment of State
Nathaniel White, Chief, Frequency and Call Sign Section,
Communications and Liaison Branch, Office of the
Chief Signal Officer, War Department
Marion H. Woodward, Assistant Chief Engineer, Federal
Communications Commission
Alternates for Mr. Woodward
William N. Krebs, Chief, Safety and Service Branch, Fed-
eral Communications Commission
E. L. White, Chief, Aviation Division, Federal Communi-
cations Commission
Administrative Staff
Seceetaky and Ijaison Officeb to Secbetaby Gekebai,
Ben F. Dixon, Division of International Conferences, De-
partment of State
Assistant Secbetaby
Frances Pringle, Division of International Conferences,
Department of State
Protocol Ofticeb
Robert Breckinridge, Division of Protocol, Department of
State
Press OFFicEat
Joseph Reap, Office of the Special Assistant for Press Re-
lations, Department of State
In addition to the United States Delegation,
representatives of private telecommunications
operating companies are to be certified as a part
of their respective government's delegation in an
advisory capacity.
U.S. DELEGATION TO PROVISIONAL MARITIME
CONSULTATIVE COUNCIL
[Released to the press May 12]
The Secretary of State announced on May 12
that the President has approved the composition
of the United States Delegation to the first session
of the Provisional Maritime Consultative Council
(PMCC) which is scheduled to be held at Paris
ACTIVITIES AND DEVELOPMENTS
beginning on May 16. The nominations were sub-
mitted by the Secretary of State upon the recom-
mendation of interested departments and agencies
of this Government,
tion is listed as follows:
The United States Delega-
Chairman
Huntington T. Morse, United States Maritime Commis-
sion
Delegates
Myron L. Black, Shipping Attache, American Embassy,
Rome
John W. Mann, Shipping Division, Department of State
Robert T. Merrill, Captain, United States Coast Guard
Thomas B. Monroe, National Federation of American
Shipping, Washington, D.C.
The United Maritime Consultative Council at
its final session, held at Washington, October 24-
30, 1946, recommended that a permanent inter-
governmental maritime organization should be
established through the machinery of the United
Nations. It also recommended the establishment
of the Provisional Maritime Consultative Council
to serve as an interim measure pending the con-
sideration of a draft constitution for a permanent
intergovernmental maritime organization by a
conference of interested goverimients to be con-
vened for that purpose by the Economic and So-
cial Council of the United Nations. The United
States Government accepted membership in the
Provisional Maritime Consultative Council in the
latter part of 1946.
The Provisional Maritime Consultative Council
is intended to provide an interim forum for the
consideration of shipping problems of a technical
and regulatory nature referred to it by govern-
ments and for the consideration of shipping prob-
lems of broader scope when referred to it by the
United Nations.
Though the agenda for the first session of the
Provisional Maritime Consultative Council has
not as yet been determined, it is expected that the
Council will consider items suggested by partici-
pating governments dealing with international
maritime problems. Included among these items
may be the coordination of international activities
in the fields of aviation, shipping, telecommunica-
tions, and meteorology with regard to safety at
sea and in the air over the sea, and the uniformity
of merchant-vessel statistics and data.
May 25, 7947
1035
THE RECORD OF THE WEEK
Inauguration of Greek-Language Broadcasts by
Voice of America
RECORDED STATEMENT BY THE SECRETARY OF STATE >
To the people of Greece the American people
send greetings and expressions of warm friendship.
I take the opportunity to speak to you directly over
this new daily program from the United States.
Our Congress has just passed — after full and
detailed debate — the Greek Aid Act. Through
this program we hope to help you recover from
the heavy blows of the war years to the end that
a stable Greece may take the place to which she is
so entitled in the conununity of nations.
There has been much of misunderstanding re-
garding our program of aid to Greece. There has
been much of distortion and misrepresentation of
I
our purpose. We are answering the call of a val-
iant ally who has suffered much, of a country to
which this American democracy owes much. We
are coming to the aid of all the Greek people, in the
hope that we may enable you to meet a trying pe-
riod and to help you to establish a unified, stable,
and peaceful Greece. It is as simple as that.
Today I speak directly to you over four thou-
sand miles of ocean. What more proof could one
ask that the community of nations already exists?
Let us all, then, join in the new task. The job
will not be easy. But with patience and hard work
and, above all, good-will, it can be done.
RECORDED STATEMENT BY ASSISTANT SECRETARY BENTON
These broadcasts from America will come to
you henceforth each evening at this time by radio,
bringing you news and opinions from the United
States — seeking to give you a fair cross section
of American developments and of American life.
Tonight's broadcast is the latest extension of
our effort to help build understanding among the
peoples. It brings to 26 the number of languages
in which we broadcast to the nations of the world.
Our broadcasts will supplement the activities of
' These recorded statements inaugurated on May 13 the
Greek-language broadcasts over the Voice of the United
States of America, which will be heard daily in a 15-
Diinute news program, to be relayed under contractual
arrangements with the Columbia Broadcasting System
from New York over international short wave through
transmitters of the British Broadcasting Corporation In
London and through the U.S. short-wave transmitters at
Munich, Germany.
1036,
our United States Information Service in Athens.
The inauguration of these broadcasts from
America to Greece and our program of financial
and economic aid to Greece are in a sense part of
the historical "evening-up" process.
The Voice of Greece today speaks to America
across 2,500 years. Greek art, sculpture, archi-
tecture, drama — the.se speak to us steadily, mak-
ing our daily lives richer. The great Gi'eek phi-
losophers, historians, statesmen, all these speak
to us eloquently, daily, as we try to make our own
great democracy function more perfectly.
Modern Greece speaks to us, too, of heroism and
sacrifice in resistance to invasion.
Our civilization and our country are by com-
parison very new. But I believe that we have
something important to contribute to Greece and
to the world today. For our passion for freedom
Department of State Bulletin
and democracy and tolerance is no less intense
than was that of the philosophers and statesmen
of ancient Greece. We firmly believe that through
preserving the dignity of the individual, and
tlirough the free association and self-government
of free men, the world has its great chance to live
happily, prosperously, and at peace.
Our broadcasts will attempt to give you daily
a view of our democracy in action. It is not a
perfect democracy. But we are ever trying to
improve it. Meanwhile, we shall make no effort
to conceal our faults and our shortcomings. All
of these will appear in the news and views you
receive, in the cross section of our life which we
shall transmit. Our broadcasts will thus endeavor
THE RECORD OF THE IVEEK
to bring you a balanced picture of American life,
those things in which we feel we can take some
pride, as well as the faults which we freely con-
fess and which we seek steadily to overcome. The
people of Greece have been getting all too many
intei'pretations, I'm afraid, of American life and
American policy from outside sources which mis-
represent and distort our actions and thus seek to
blacken our purjioses. We hope that the pattern
of our American ideals, and of the principles by
which we live, and of the success of those prin-
ciples and ideals in action, will stand out clearly
from these — our broadcasts. We invite you to
listen and decide. And it is for you to decide
and for you only.
RECORDED STATEMENT BY SENATOR VANDENBERG
To the People of Greece:
Three weeks ago today the Senate of the United
States overwhelmingly approved President Ti-u-
man's program of assistance to Greece and Turkey.
Last Friday the House of Representatives gave its
assent. Thus it becomes totally clear that the
President and the Congress stand united in our
determination to help Greece survive as a free
nation.
We in the United States have always had great
admiration for your country and your people.
Who can forget that Greece was the cradle of
democracy in the ancient world ? Who can forget
that Greece was the mother of one of the finest
civilizations the world has ever known ? And who
can forget the magnificent contribution your
people made to the cause of the United Nations
during the darkest hour of the war against
barbarism ?
The program of financial assistance which our
Congress has approved will pour into the economic
blood stream of the Greek community the vital
nourishment of which it was deprived by the sav-
agery of the Nazi occupation.
But I want to be completely frank about one
point. Our program to sustain the vigor and inde-
pendence of Greece is not mere charity to a friendly
and needy neighbor. It is a progi-am in the gen-
uine self-interest of the United States. In a sense
it is even a selfish program, when you consider
fAa^/ 25, 7947
that our common anxiety for world peace and
security has at its foundation every individual's
selfish desire to be allowed to pursue his life's busi-
ness in peace. If the freedom of the Greek people
to go about their private affairs in calm security
is suddenly removed, we Americans feel that our
freedom is threatened too. This is the measure of
how close-knit the world has become.
It should be obvious that the United States Gov-
ernment in undertaking this program makes no
distinction between Greek and Greek. Our pur-
pose is to help all those Greeks who put the inter-
ests of their own country first. Indeed we plead
for unity and harmony among all the people of
Greece. We plead for moderation and for a re-
turn to normal and oi'derly political processes.
In the words of President Truman, delivered to
the Congress of the United States on March 12th :
"We have condemned in the past, and we con-
demn now, extremist measures of the right or the
left. We have in the past advised tolerance, and
we advise tolerance now."
It is only by forgetting the animosities wliich
have risen to divide it that any nation can pull
itself back from the brink of a tragedy such as now
threatens the Hellenic people. Americans hope
sincerely that our aid will help to bring about a
speedy healing of Greece's internal wounds. That,
too, is in our interest as well as in the interest of
Greece itself and of the whole world.
1037
Radio Advisory Committee Urges Strengthening of
Voice of America
Expansion of the Department of State's inter-
national short-wave Voice of America as well as its
entire cultural relations program as a measure to
avoid a "serious setback" in this counti'y's rela-
tions with the rest of the world, was recommended
in a report submitted to the Department on May 17
by its Radio Advisory Committee.
The Committee, made up of eight eminent pub-
lishers, educators, and radio network officials, held
that the funds now available for the Department's
international broadcasting are "inadequate to do
the job required by the national interest", and as-
serted that "now, more than at almost any time in
our history, a clear and fair picture of America
and American policy should be heard abroad".
Coincident with making public the Advisory
Committee's report. Assistant Secretary of State
for public aflFaii"s William Benton announced that
he will soon appoint a continuing committee to act
as an advisory group pending Congressional ac-
tion on the State Dejiartment's proposal now pend-
ing to turn its short-wave broadcasting activities
over to a public foundation. Mr. Benton said :
"The Committee's report is extremely helpful
and I am grateful to the Committee for the public
service it has rendered.
"I aj^pointed the Committee to comply with the
spirit of jjoint three, section 502, in the bill now
under consideration by the Foreign Affairs Com-
mittee of the House called 'United States Infor-
mation and Educational Act of 1947'. This sec-
tion reads: 'that the Department shall invite
outstanding private leaders of the United States
in cultural and informational fields to review and
extend advice on the Government's international
information activities'. A similar provision was
included in the bill on this subject which passed the
House last year but failed to come to a vote in the
Senate on the closing day of the last Congress.
"Similarly, the Department pro2:)oses to appoint
a continuing committee of independent experts to
make periodic reports of our broadcasts so that the
public may be kept advised of our activities. Such
a committee can function pending Congressional
action on the long-range radio setup for handling
the international broadcasting.
1038
"The committee's advice will also be of assist-
ance to us in further assuring that the Voice of
America progi-ams truly project a full and fair
picture of our country.
"I hope at least some of the members of the
Committee which has just reported will consent to
serve on the standing committee."
Mr. Benton called attention to another recent
report, that of the Committee of the American
Society of Newspaper Editors. In its recent re-
port, in April of this year, this Committee stated
that the Russian language broadcasts are "being
conscientiously done and that the gentlemen in
charge are using skill and resourcefulness in the
endeavor to dissipate as far as their medium al-
lows, the many misconceptions about the United
States which are prevalent in Russia."
The State Department's Radio Advisory Com-
mittee was appointed a year ago by Mr. Benton to
make a study of the Department's international
broadcasting. The Committee also interested
itself in the need for American international in-
formation and cultural relations activities and in
the effectiveness of the State Department's efforts
in this field.
The Committee is made up of the following
members :
Mark Ethridge, publisher of the Louisville Courier Journal
and past president of the National Association of
Broadcasters
Gardner Cowles, Jr., publisher, Des Moines Regwter and
Tribune; president, Cowles Broadcasting Company
Roy E. Larsen, president of Time, Inc.
Prof. Harold Lasswell, School of Law, Yale University
Don Francisco, vice iiresident and director of the J. Walter
Thompson Advertising Agency
Sterling Fisher, assistant public service counselor. Na-
tional Broadcasting Company
The Hev. Robert I. Gannon, president, Fordham Univer-
sity
Edward R. Murrow, vice president, Columbia Broadcast-
ing System
Serving as its consultants were Philip Cohen
of Sullivan, Stauffer, Colwell, and Bayles, Inc.,
Advertising Agency, and Victor Hunt of the State
Department's Office of International Information
and Cultural Affairs.
Department of State Bulletin
REPORT OF RADIO ADVISORY COMMITTEE TO THE ASSISTANT SECRETARY OF STATE FOR
PUBLIC AFFAIRS
On May 10, 1946, at the first of our five meet-
ings, you asked us to examine certain aspects of
the international broadcasting activities of the
State Department and to make recommendations
concerning the role of the United States Govern-
ment in this important field.
At this and subsequent meetings you placed at
our disposal transcripts giving a representative
cross section of the State Department broadcasts,
reports from State Department officials abroad on
the need for and the effectiveness of American
broadcasts beamed to other countries, and other
materials that enabled us to get a picture of tlie
international broadcasting activities of the State
Department.
We have also had discussions with Gen. David
Sarnoff, president of the Radio Corporation of
America ; William Paley, chairman of the Board
of the Columbia Broadcasting System; Lawrence
Fly, formerly chairman of the Federal Communi-
cations Commission, and now a legal representa-
tive for one of the short-wave licensees ; and mem-
bers of your staff who have supplied information
requested by your Committee.
Although the examination of America's part in
international radio was the chief concern of the
Committee, it was also necessary that we examine
the general problems of international information
of which broadcasting is merely one part.
Your Committee is in agi'eement that the free
flow of information throughout the world is one
of the essentials to a lasting peace. Unless we
make it possible for others to tell their story to us,
and unless we have that same privilege throughout
the world, it will be difficult, if not impossible, to
insure a lasting peace based on mutual under-
standing.
Your Committee believes that the Voice of
America sliould be heard throughout the world
through the press, motion pictures, and libraries,
as well as through radio which is our immediate
concern in this report. A great part of this total
job is being done and, in our opinion should con-
tinue to be done, through private agencies since
this is in the American tradition; but, where
private agencies are unable to disseminate infor-
mation about the United States, either because of
financial problems or barriers erected by various
govermnents, it is tlie duty of the United States
Government to see that the Voice of America is
heard.
This brings us to the problem of radio. Seventy-
five percent of the earth's population lives under
some degree of censorship. Radio broadcasting
offers the surest way to reach these people, as well
as those living in censor- free countries, with infor-
mation about the United States. By broadcasting
we mean not only the broadcasting through short-
wave facilities, for even though it is estimated that
there are 29 million short-wave sets outside the
United States, still this is a limited field. We also
mean the arranging of exchange broadcasts with
networks and individual stations in other countries
and the furnishing of transcriptions which give a
true and unbiased picture of this country.
In discussing the role of America in the inter-
national broadcasting field, it should be pointed out
that 56 countries and dependencies are in the short-
wave broadcasting field today. As a measure of
comparison it is interesting to note that whereas
Great Britain spends 16 million dollars annually
in this field, the United States is spending some
8 million; because of lower costs in Britain, and
other factors, the volume of British output exceeds
that of the United States by about three to one.
It is impossible to estimate the amount that is be-
ing spent by the Union of Soviet Socialist Repub-
lics, but it must be large. It is significant, for ex-
ample, that among the smaller powers, Colombia's
output is almost one third that of the United
States.
It should also be pointed out that because of our
location it is far more difficult for the United
States to reach Europe and many areas in Asia
than it is for all of the other major powei's. This
means that for the United States there are added
costs in terms of transmitters and relay facilities.
It also means that the frequencies allotted to the
May 25, 1947
1039
THE RECORD OF THE WEEK
United States must be used in the most efficient
manner possible.^
The reports from State Department representa-
tives abroad which we have examined clearly show
that news of the United States is eagerly awaited
by millions around the world who look to us as a
stabilizing influence in the aftermath of the most
destructive war in history. In answer to the ques-
tion, does anyone abroad listen to the present Voice
of America broadcasts, the evidence submitted in-
dicates that the answer is an emphatic "Yes." The
listening audience seems to be substantial. The
25,000 letters a month now being received from
abroad have greater significance than a comparable
number received from listeners to domestic broad-
casts. Those on the Committee experienced in
broadcasting agree that technological develop-
ments and improvements in broadcasting, and the
prospect of new, cheaper, and better receiving sets,
give promise of an ever-enlarging audience.
Wliether we disseminate news ourselves or not,
news about tha United States will be disseminated.
The question is thus whether we shall leave the
presentation of news and information about the
United States to others, or whether we shall insure
that such news and information is available di-
rectly from an American source.
It is our imderstanding that the private owners
of existing short-wave broadcasting facilities in
this country have, while recognizing the impor-
tance of international broadcasting, stated that
they are unable financially to make the expendi-
tures necessary for the United States to play its
full part in this vital field, although one licensee in-
dicated a willingness to participate in a joint
financing of a short-wave operation.
With these basic facts in mind, we are prepared
to recommend that a public corporation, or Foun-
' It should al.so here be stressed that the number of in-
ternational broadcasting frequencies is severely limited,
that there is great international demand for these fre-
quencies, and that those which are allocated for use by
the United States will quickly be lost unless tliey are util-
ized for our material interest.
' On Jan. 9, 1943, David Sarnoff, president of RCA, pro-
posed to Secretary of State Hull that "a new corporation be
organized that might be jointly owned by private indus-
try and Government and that would be charged with re-
sponsibility for carrying on international broadcasting in
behalf of the United States".
dation, be created to conduct international broad-
casting in behalf of the United States. Such an
International Broadcasting Foundation would de-
rive its autliority from Congress and would receive
support from Congressional appropi'iations, but
would oi^erate under the policy sujoervision of a
Board of Trustees consisting predominantly of dis-
tinguished private American citizens.^
It is impossible to say at this time what such a
venture would cost. General Sarnoff has esti-
mated that an operating budget of 20 million dol-
lars a year — more than twice the present level —
would be required to meet the need and the oppor-
tunity. Surely such a sum would be small, in this
time of international tension, compared to the im-
portance of making America's voice heard before
misunderstanding developed rather than after
misunderstanding had deepened into conflict.
Three elements are involved in successful broad-
casting— an adequate signal, good programming,
and sufficient promotional work to insure that the
potential audience knows about the programs.
Adequate financial support for facilities should
guarantee the adequacy of the signals, which are
today inadequate to the need. We would wish
here also to stress the value of appropriate adver-
tising of these Voice of America programs abroad.
In terms of the programs themselves we can
only suggest that whatever broadcasts are made
should fairly and comjoletely represent life in this
democracy. We should broadcast our triumphs
in the industi'ial and social fields but we should
show where we have failed and what we are doing
to correct those failures ; for surely this is the way
of democracy.
Should the Congress approve of the Interna-
tional Broadcasting Foundation, a chief job of its
Board of Trustees would thus be to guarantee an
unbiased presentation of America.
In summary your Committee :
a. Believes in the full exchange of information
among all nations.
h. Believes that in the broadcasting field, finan-
cial limitations make it impossible for the private
broadcasters to carry on international broadcast-
ing on an adequate scale.
c. Believes that an international broadcasting
foundation supported by government funds but
under the policy control of a group of distin-
1040
Department of State Bulletin
guished citizens offers the best way to make the
voice of America heard abroad.
d. Believes that now more than at almost any
time in our history a clear and fair picture of
America and American policy should be heard
abroad. No one will do this job for us. We must
do it ourselves. The job involves the use of many
media — radio, books, motion pictures, the press —
but among them radio seems today the most criti-
cally important for the projection of a full and
fair picture of the United States.
e. Believes that the funds now available for in-
ternational broadcasting are inadequate to do the
job required by the national interest, and that they
must be expanded if our Nation is to avoid a seri-
ous set-back in the development of its proper rela-
tions with the rest of the world.
A-pHl 19, 1H7
MaEK ETHEmOE
Don Francisco
Gardner Cowles,
Jr.
Roy E. Larsen
Philip Cohen
Signatures
Prof. Harold Lasswell
Sterling Fisher
The Rev. Robert I. Gannon
Edward R. Murrow
Consultants
Victor Hunt
Negotiations for Mutual Restoration
of Civil Property
JOINT STATEMENT BY THE UNITED STATES
AND YUGOSLAV GOVERNMENTS
[Released to the press May 16]
The Governments of the United States and Yu-
goslavia have agi'eed to undertake negotiations
beginning May 19 concerning American property
in Yugoslavia, and Yugoslav property in the
United States which is now administered by the
United States Treasury or by the Office of Alien
Property. The negotiations will have as their ob-
jective the early settlement of questions related to
this property as well as other financial claims of
either one of these Governments or its citizens
against the other. In the course of the negotia-
tions it is proposed that outstanding lend-lease
matters be settled as provided in the master lend-
lease agreement concluded between Yugoslavia
and the United States on July 24, 1942.
May 25, 1947
THE RECORD OF THE WEEK
"Washington has been chosen as the place for the
negotiations. The Yugoslav Delegation will be
headed by the Assistant Foreign Minister, Vladi-
mir Velebit, who is also the deputy chief of the
Yugoslav Delegation for the United Nations meet-
ing on Palestine. Willard Thorp, As.sistant Sec-
retary of State for economic affairs, will be chief
of the United States negotiating group.
Erratum
The Bulletin of March 30, 1947, p. 574, errone-
ously reported that the Far Eastern Commission
approved on March 14, 1947, its policy decision on
controls for Japan to relieve world food shortages.
The decision was approved on February 27, 1947,
and released to the press on March 14.
Agreement on I TO Charter Urged
for Economic Stability
STATEMENT BY THE SECRETARY OF STATE >
The keynote of World Trade Week in 1947 is
"World Trade Unites Nations", a theme particu-
larly appropriate for a time when the need for
unity among peoples is more vital than ever before
in histoi-y. National leaders are urgently seeking
unity in all the fields of international relations —
political, security, and economic. Economic con-
flict and trade wars invariably set the stage for
political disunity.
Representatives of 18 trading nations are meet-
ing now in Geneva in a concerted effort to achieve
unity through expansion of world trade and the
resulting increases in production, employment,
and improvement of living standards in all coun-
tries.
Although the United States Government has
taken a leading part in bringing about this meet-
ing, a successful conclusion can only be realized
through the cooperation of all participating na-
tions. At Geneva these countries are seeking to
lower excessive trade barriers and are engaged in
drafting a charter for an International Trade
* Made on May 18 on the occasion of the observance of
World Trade Week, May lS-24, 1947, and released to the
press on the same date.
1041
THE RECORD OF THB WEEK
Organization, to insure international cooperation
in commerce. Agreement on this charter will
mark a gieat step toward economic stability and
the common security.
France Receives First Loan Made
by International Bank
[Released to the press by the International Bank
tor Reconstruction and Development May 9]
The International Bank for Reconstruction and
Development announced on May 9 the granting of
its first loan, totaling $250,000,000, to Credit Na-
tional, a semi-public French corporation created
to assist in financing the reconstruction and de-
velopment of the French economy. The loan is
guaranteed by the Republic of France. The execu-
tive directors of the International Bank, at a
special meeting on May 9, voted their approval of
the loan, which originated in a request for a $500,-
000,000 loan by the French Minister of Finance in
an application dated October 8, 1946. The loan
agreement was signed for the Bank by Jolm J.
McCloy, president, and on behalf of the Credit
National by Wilfrid Baumgartner, president.
The guaranty agreement was signed by Henri
Bonnet, Ambassador of France.
The loan is being made to assist France in the
reconstruction of its war-torn economy and to
finance the import of specific goods and equipment
necessary to its economic rehabilitation. A por-
tion of the proceeds will be devoted to the moderni-
zation of the steel industry, including a modern
strip mill. The transportation system is to be im-
proved by the purchase of locomotives and freight
cars, cargo ships and canal barges, and commercial
airplanes. Coal and oil, essential to industry and
transport, figure largely among the prospective
purchases, as do industrial raw materials, includ-
ing semi-finished steel products and non-ferrous
metals. Under the loan agreement, the Bank will
obtain full information concerning the goods to be
purchased with the proceeds of the loan and their
utilization. France will be free to purchase in
whatever markets are most advantageous.
Because of its size and productive capacity,
France is pivotal in western Europe. The eco-
nomic rehabilitation of France will speed the re-
covei7 of surrounding countries and, through an
1042
expansion of trade, be beneficial to the rest of the
world.
The loan is for a period of 30 years and will
carry interest at the rate of 3I/4 percent. In ac-
cordance with its articles of agreement, the Bank
will also charge a commission of 1 percent per an-
num on the outstanding portion of the loan to
build up a special reserve.
The French national recovery program calls for
heavy imports during the next five years. There-
fore, no repayment of principal is scheduled for
this period. Thereafter amortization begins at a
modest rate and increases gradually so that the
loan will be completely amortized by its due date.
Mr. McCloy states that, although the Bank is not
now prepared to make any commitments with re-
gard to a further loan, it will be willing to consider
an additional application from France later this
year. Any new application will be considered in
the light of the funds which the Bank will then
have available for lending and of the progress
made in carrying out the French economic and
recovery jirogram.
Additional Grain Shipments to France
[Released to the press May 15]
The Department of Agriculture has agreed to
make available an additional 150,000 long tons of
corn to France from Production and Marketing
Administration stocks on hand, with the expecta-
tion that the French will secure the necessary ship-
ping. This action has been taken in order to ex-
pedite the movement of additional grain to France
because of the critical shortage which now exists
there. This additional quantity will be taken into
account in future formal allocations.
This corn, together with recent emergency allo-
cations of 69,000 long tons of wheat and flour,
makes a total of 219,000 long tons of bread grains
which in the past 30 days have been made available
to the French over and above all previous commit-
ments from this counti"y.
It is felt that these additional shipments, to-
gether with the quantities of grain already shipped I
or scheduled for shipment (343,000 long tons) to '
France and French North Africa from the United
States, will alleviate the critical nature of the
shortage in France until new crop grains from her
own production begin to move.
Department of State Bulletin
U.S.-Soviet Joint Commission for
Korea To Be Reconvened
LETTER FROM THE SECRETARY OF STATE TO
rHE SOVIET MINISTER FOR FOREIGN AFFAIRS
[Released to the press May 13]
May 13, 191,;il.
Mt Dear Mr. Molotov :
I have received your letter of May 7, 1947 ' and
im pleased to note the agreement of your Govern-
ment to the reconvening of a Joint Commission on
the basis of the proposals made in the American
Commander's letter of December 24, 1946 to the
Soviet Commander in Korea. Those proposals
svere authorized by this Government and are iden-
tical in purpose to the statement contained in the
second paragraph of my letter of May 2, 1947.^
I am instructing the American Commander in
Korea to make immediate preparations for recon-
s^ening the Commission in Seoul. A copy of this
letter has been sent to the Governments of the
[Jnited Kingdom and China.
I convey [etc.] George C. Marshall
J.S.-Mexican Friendship Reiterated
[Released to the press by the White House May 13]
Text of the Presidenfs message to His Excellency
Miguel Alemdn, President of the United Mexican
States
I thank you for your courteous message sent me
ipon your departure from the United States.
The visit which you and your distinguished
companions have graciously paid to me and to the
people of the United States has strengthened the
ilready firm ties of friendship and understanding
Detween our two countries. I share your confi-
ience that our relations will grow ever stronger in
the same cordial spirit that governed my recent
dsit to your great country and your visit to the
Qnited States.
]\Iay I express to you, Mr. President, my best
(vishes for your personal well-being and happiness.
Text of President Alemdn^s message, to which the
foregoing is a reply
Upon leaving the territory of the United States,
[ desire to express to you once again my deep
y^ay 25, 1947
THE RECORD OF 1H£ WEEK
gratitude for all the courtesies which you were
so good as to extend to me during my stay in your
great country, for whose happiness I express sin-
cere wishes as President of a people which believes
deeply in the democratic solidarity of liberty-
loving men, governed by justice and associated in
progress.
The spirit of complete and reciprocal under-
standing which guided all our conversations in
Washington as well as in Mexico is an excellent
guarantee of the cordiality of our Republics.
In view of your high qualities as a statesman
and as a man which give value to your noble
sincerity, that spirit of understanding has found
in you a strong champion of inter-American
cohesion.
Confident that the cordiality to which I refer
will continue to be the best basis for strengthen-
ing and promoting the relations of our govern-
ments and our peoples, I repeat to you, Mr. Presi-
dent, the sentiments of my constant and steadfast
friendship.
Stabilization Agreement With IViexico^
The Secretary of the Treasury of the United
States of America, John W. Snyder ; the Ambas-
sador of Mexico, Antonio Espinosa de los Mon-
teros ; and Rodrigo Gomez, rejo resenting the Banco
de Mexico, on May 13 executed a new 50-million-
dollar stabilization agreement between the two
countries.
Under the terms of this agreement, which was
the subject of discussion during the recent visit
to the United States of President Aleman and
Minister of Finance Beteta, the United States
Stabilization Fund undertakes for a period of four
years commencing July 1, 1947, to purchase Mexi-
can pesos to an amount equivalent to 50 million
dollars for the purpose of stabilizing the United
States dollar-Mexican peso rate of exchange.
This agreement extends and enlarges the stabi-
lization agreement of 1941 which was twice ex-
tended for two-year periods and which expires on
June 30, 1947.
Secretary Snyder and Minister Beteta during
• Bulletin of May 18, 1947, p. 995.
' Bulletin of May 11, 1947, p. 947.
'Released to ttie press by the Treasury Department
simultaneously in Wastiington and in Mexico City on
May 13, 1947.
1043
THE RECORD OF THE WUK
their discussions reviewed the satisfactory for-
eign-exchange relations between Mexico and the
United States and the stability which has charac-
terized the peso-dollar exchange rate during the
six years that the stabilization agreement has been
in effect. They also viewed with satisfaction the
complete freedom of exchange operations between
the two countries — operations which have involved
the financing of aggregate foreign trade exceeding
700 million dollars in 1946, as well as large travel
expenditures and other international receipts and
payments.
The Secretary and the Finance Minister pointed
out that the stabilization agreement is consistent
with the aims and purposes of the International
Monetary Fund, of which both countries are mem-
bers, and will in fact serve to supplement the
efforts of the international organization to stabi-
lize the rates of exchange between all the member
countries.
American Consular Service in India
To Be Augmented
[Keleased to the press May 16]
American consular establishments in India are
being augmented, under agreement with the Gov-
ernment of India, by a consular section at the
American Embassy, New Delhi, which was inaug-
urated on May 12, 1947, and a Consulate General
at Lahore, Punjab, which is scheduled to open in
the near future.
The historic city of Lahore, with its 700,000 in-
habitants, is the capital as well as the educational
and commercial center of Punjab Province and lies
at the junction of railway routes from Peshawar
on the northwest frontier, the port of Karachi to
the south, and Delhi and Calcutta to the east. Sub-
stantial American imports originate in the area,
including carpets and carpet wool, hides and skins,
and goat hair.
It is anticipated that the presence of permanent
consular establishments at New Delhi and Lahore
will serve to increase mutual understanding be-
tween the United States and India and aid the
growth of commercial and cultural relations. The
purpose of the new offices will be to improve facil-
ities available to American businessmen interested
in the products of the north and northwest regions
and to make available more convenient services to
several hundred American citizens in the area, the
majority of whom are associated with American
missionary and educational organizations. The
increasing number of Indian citizens in the region
who wish to study, trade, or travel in the United
States has, moreover, emphasized the need to pro-
vide not only more convenient visa facilities but
also a more accessible source of information re-
garding the United States and the opportunities
existing here for Indian students and businessmen,
Air-Transport Agreement
With Chile
The Department of State announced on May 14
the signature in Santiago, Chile, of an air-trans-
port agreement, on May 10, 1947, between the
Government of the United States of America and
the Government of the Kepublic of Chile. The
agreement was signed in behalf of the Government
of the United States by the United States Ambas-
sador, Claude G. Bowers, who was assisted in the
negotiation thereof by Tliomas T. Carter of the
Department of State.
The agreement is in substance along the general
pattern covering air-transport agreements which
the United States of America has entered into
with many other countries. It incorporates the
terms of the so-called Chicago standard-form
agreement and the substance of the Bermuda
agreement between the United States of America
and the United Kmgdom. It is the thirty-second
bilateral air-transport agreepient entered into by
the Government of the United States of America.
The following routes have been designated in
Annex B of the agreement :
a The airlines of the United States of America
authorized under the present agreement are ac-
corded rights of transit and non-traffic stop within
the territory of the Republic of Chile, as well as
the right to pick up and discharge inte.rnational
traffic in passengers, cargo, and mails on the fol-
lowing routes via intermediate points, in both
dii-ections :
5 The United States and/or the Canal Zone to
Arica, Antofagasta, and to Santiago and beyond
Chile; (a) from Arica to points, in Bolivia and
beyond ; (&) from Antofagasta to points in Argen-
tina and beyond ; and (c) from Santiago to points
in Argentina and beyond.
1044
Deparimeni of State Bulletin'
c The airlines of the Republic of Chile author-
ized under the present agreement are granted, in
the territory of the United States of America, the
rights of transit and stop for non-commercial pur-
poses, and the right to take on and discharge inter-
THB RECORD OF THE WEEK
national traffic in passengers, cargo, and mails on
the following routes via intermediate points, in
both directions :
d From the Republic of Chile via Panama
Canal Zone to Miami and/or New York and be-
yond the United States.
UNRRA Operations: Tenth Quarterly Report
THE PRESIDENT'S LETTER OF TRANSMITTAL
[Released to the press by the White House May 15]
To the Congress of the United States of America:
I am transmitting herewith the tenth quarterly
report covering the operations of UNRRA and the
expenditure of funds appropriated by the Con-
gress for this purpose.
During the quarter under review (October 1,
1946, to December 31, 1946) estimated shipments
of supplies from the United States to UNRRA
receiving countries amounted to approximately
1,813,192 tons, valued at approximately $182,732,-
000. Cumulative world shipments by UNRRA as
of December 31, 1946, were approximately 19,885,-
870 tons, valued at approximately $2,311,225,000.
Of these totals, shipments from the United States
were approximately 14,890,685 tons, valued at ap-
proximately $1,664,082,000 or, respectively, 75
percent and 72 percent of the total.
The approximate value of supplies remaining to
be shipped on January 1, 1947, was a world total of
$660,000,000.
Two developments at the turn of the year im-
pelled the Central Committee of UNRRA to make
adjustments in the categories of supplies still to be
shipped from the United States. The first was a
critical shortage of food affecting particularly
Austria, Poland, and Greece. The second was the
fact that certain items being procured in the United
States could not be delivered in time for shipment
to Europe by March 31, 1947, or to the Far East by
June 30, 1947. As a result, the proposal of
UNRRA was adopted by the Central Committee
on February 3, 1947, for the establishment of an
emergency food program in the amount of $35,-
000,000. This amount was to be obtained from
contracts which could not be shipped before the
deadlines to the value of $25,000,000, an amount of
$4,000,000 from the Director General's reserve, and
an amount of $6,000,000 from the Czechoslovakian
May 25, 1947
program on the basis of information that Czecho-
slovakia's relative recovery far exceeded that of
other recipient countries. The food program was
distributed so that Austria would receive $20,000,-
000, Poland $11,000,000, and Greece $4,000,000.
Thus UNRRA, by shifting its remaining re-
sources, was able to meet a serious food deficit in
the first quarter of 1947. I mention this particu-
lar fact to illustrate that the specter of hunger is
still close to the peoples of many liberated areas.
It is this condition which it is intended that the
United States will help to relieve through a 1947
U.S. relief program. We cannot allow our vast
efforts through UNRRA and through other means
to remain incomplete. It will take a relatively
small amount in 1947 to help assure that most
liberated countries finally will be able to meet their
own needs without free assistance from outside
sources.
In addition to its task of providing supplies to
devastated countries, UNRRA has carried out a
second major responsibility, that of caring for dis-
placed persons. Several hundred thousand dis-
placed persons will be unrepatriated on June 30,
1947, when the resources available to UNRRA will
be exhausted. The United Nations has voted to
assume the responsibility for these displaced per-
sons through an International Refugee Organiza-
tion to be. composed of member nations. I have
recommended to the Congress that the United
States join the IRO and that we appropriate the
sum of $75,000,000 as the United States share of
the operating fund which is required for the care
of these unfortunate people.
The Congress now is considering a joint resolu-
tion which provides the sum of $350,000,000 for
relief assistance by the United States to the people
of countries devastated by war. This sum is com-
paratively small in relation to amounts already
1045
THE RECORD OF THE WBBK
made available by this Government through vari-
ous means. It is an amount, however, which is of
tremendous importance in completing the vast ef-
forts we already have made. Other countries
which can make contributions for relief assistance
in 1947 have been consulted through the Secre-
tariat of the United Nations and through other
channels.
The United States has the resources needed by
war-devastated countries to carry them through
this year into a new year in which most of them
may hope that they will achieve economic recovery.
The peace of the world can be realized only when
people are free from the fear of hunger.
The goal is close. The United States can help
many countries reach that goal in a few more
months through the supplies which the joint reso-
lution on relief assistance will provide. I have no
doubt that the American people desire that we
finish what UNRKA has so well begun.
Haeey S. Truman
The White House, 3Iay 16, 19Ji7
Tax Treaty Negotiations With
New Zealand
[Released to the press May 14]
Preliminary discussions have been opened at
Washington with technical representatives of the
New Zealand Government looking to the conclu-
sion of a treaty between the United States and
the New Zealand Govermnents for the avoidance
of double taxation and for administrative coop-
eration in prevention of tax evasion with respect
to taxes on income.
It is understood that Walter Nash, the New
Zealand Minister of Finance, will complete the dis-
cussions in Washington while he is en route to New
Zealand from the World Trade Conference in
Geneva.
In connection with the discussions, the Ameri-
can Delegation will welcome conferences with
interested parties or statements and suggestions
from them concerning problems in tax relations
with New Zealand. Communications in this con-
nection should be addressed to Eldon P. King,
Special Deputy Commissioner of Internal Reve-
nue, Bureau of Internal Revenue, Washington
25, D.C.
1046
Resignation of Dean Aclieson as
Under Secretary of State
LETTER FROM THE PRESIDENT TO
MR. ACHESON
I
[Released to the press by the White House May 12]
Dear Dean: It is with great regret that I re-
alize that I caimot again ask you to put aside your
desire to return to private life. For the past two
years my appeals to your high sense of public
duty have kept you on the job despite the per-
sonal sacrifice it has meant to you.
I can easily appreciate the reasons which im-
pelled your desire to return to private life as
embodied in your letter written as long ago as
April 17, 1946, and in another letter the year
before.
In response to my urging in both instances you
held in abeyance your plans to retire. Again,
when you renewed last December your wish to
relinquish your post we agreed tentatively that
you should leave office on January 10, 1947. Real-
izing that all these deferrals have meant great
financial sacrifice, I appreciate all the more your
magnanimous action in standing at your post for
another six months.
In justice to you, therefore, the time has come
when I must yield to your wishes. With great
regret I accept your resignation as the Under
Secretary of State, effective at the close of busi-
ness on June 30, 1947.
You have been the type of efficient public ser-
vant whose withdrawal from public life at any
time would be a loss to the Nation.
You brought to your duties in the Department
of State, legal training and experience; famil-
iarity with finance, particularly in its bearing
upon international relations; clear-cut judgment
and incisive powers of reasoning. These, with
your prodigious industry, have been assets upon
which we could always rely and we shall miss them
in time to come. I shall like to think that I can,
as need arises, call upon you for advice.
With deep regret that the time is now approach-
ing when we must lose your services and with best
wishes for your ha^jpiness and continued success
in private pursuits.
Very sincerely yours,
Harry S. Truman
Department of State Bulletin*
Appointment to Military Tribunal
On May 15, 1947, by Executive Order 9852 (12
Federal Register 3183), the President appointed
Charles F. Wennerstrum, Chief Justice of the
Supreme Court of the State of Iowa, to serve as a
Tiember of one of the several military tribunals
jstablished by the military governor for the United
States zone of occupation within Germany.
JNESCO Conference — Continued from page 1021
;omforting, and a generation which is used to the
icceleration of mechanical processes finds it hard
;o accept the slowness with which human habits
md relations are developed. From the point of
riew of the great effort represented in the found-
jttg of the United Nations system, the greatest
ask of statesmanship today is to maintain a situ-
ition in which the constructive forces can work.
1H£ RECORD OF THE WEiK
lating thereto. Part 38, proceedings of Hewitt Inquiry.
70th Cong., Ist se.ss. 302 items.
Investigation of Un-American Propaganda Activities in
the United States : Hearings before the Committee on
Un-American Activities of the House of Representatives,
on H.R. 1884 and H.R. 2122, bills to curb or outlaw the
Communist party of the United States. 80th Cong., 1st
sess. 340 pp.
Statehood for Hawaii : Hearings before the Committee
on Public Lands of the House of Representatives on H.R.
49, H.R. 50, H.R. 51, H.R. 52, H.R. 53, H.R. 54, H.R. 55,
H.R. 56, H.R. 579, H.R. 1125, and H.R. 1758. Committee
Hearing no. 2. 80th Cong., 1st sess. 310 pp.
Participation by Small Business in Foreign Exports:
Hearings before a Subcommittee of the Committee on
Banliing and Currency of the United States Senate, on
S. 414, a bill to encourage fuller participation by small
business concerns in soundly expanded foreign trade
through Government insurance for United States exports.
80th Cong., 1st sess. 149 pp.
Treaties of Peace With Italy, Rumania, Bulgaria, and
Hungary: Hearings before the Committee on Foreign
Relations of the United States Senate on Executives F,
G, H, and I. 80th Oong., 1st sess. 196 pp.
THE CONGRESS
Reciprocal Trade Agreements Program : Hearings be-
fore the Committee on Ways and Means of the House
)f Representatives on the Operation of the Trade Agree-
nents Act and the Proposed International Trade Or-
ganization. Part 1. 80th Cong., 1st sess. 292 pp.
Investigation of Un-American Propaganda Activities
n the United States : Hearings before the Committee
m Un-American Activities of the House of Representa-
ives on H.R. 1884 and H.R. 2122, bills to curb or outlaw
;he Communist Party of the United States. Part 1,
;estimony of Hon. William C. Bullitt. 80th Cong., 1st
iess. 31 pp.
Commission on Organization of the Executive Branch
)f the Government : Hearing before the Committee on
Expenditures in the Executive Departments of the United
States Senate on S. 164, a bill for the establishment of
he Commission on Organization of the Executive Branch
)f the Government. 80th Cong., 1st sess. 59 pp.
National Aviation Council : Hearings before the Com-
nittee on Interstate and Foreign Commerce of the House
)f Representatives on H.R. 2220, a bill to establish a
^Jatlonal Aviation Council for the purpose of unifying and
ilarifyinj; national policies relating to aviation, and for
Jtlier purixises. 80th Cong., 1st sess. 43 pp.
National Science Foundation: Hearings before the
ZIommittee on Interstate and Foreign Commerce of the
House of Representatives on H.R. 942, H.R. 1815, H.R.
1830, H.R. 1834, and H.R. 2027, bills relating to the Na-
;ional Science Foundation. 80th Cong., 1st se.ss. 279 pp.
Pearl Harbor Attack : Hearings before the Joint Com-
nittee on the Investigation of the Pearl Harbor Attack,
pursuant to S. Con. Res. 27, a concurrent resolution au-
:horizing an investigation of the attack on Pearl Harbor
)n December 7, 1941, and events and circumstances re-
Vloy 25, J 947
THE DEPARTMENT
Appointment of Officers
A. Sidney Buford, III, as Deputy Director, Office of
Intelligence Research, effective April 20, 1947.
Herbert T. Edwards as Chief, Division of International
Motion Pictures, effective May 4, 1947.
Garret G. Ackerson, Jr., as Chief, Division of Foreign
Service Personnel, effective May 22, 1947.
Departmental Regulations
420.1 Use of Original Records of the Department of
State: ( Effective 5-5-47 )
I Use of Recobds by Officials of the United States
Government. The use of the records of the Department
by Government officials will be subject to such conditions
as the chiefs of the appropriate policy divisions of the
Dei^artment of State, in consultation with the Chief of the
Division of Historical Policy Research (RE), may deem
it advisable to prescribe.
II Use of Records by Persons Who Abe Not Officials
OF the United States Government.
A Unpublished Files and Records of the Department
Prior to January 1, 1922. The unpublished files and rec-
ords of the Department prior to January 1, 1922 are, with
certain esception-s, such as records relating to the citizen-
ship of individuals, foreign service inspection and person-
nel records, and War Trade Board records, available for
inspection to the general public at the National Archives.
On January 1, 1948, and each year thereafter until January
1, 1955, this date will be automatically advanced one year.
1047
THE RECORD OF THE WEEK
The unpublished files and records of the Department in
the period between the open date and January 1, 1933, or
such subsequent date as may be fixed by the Department,
may be made available for consultation to persons who are
not officials of the United States Government, subject to
the following conditions :
1 Files which are in current use in the Department
or which cannot be made public without the disclosure
of confidences reposed in the Department, or without ad-
versely affecting the public interest, will not be made
available to inquirers.
2 Papers received by the Department from a for-
eign government which have not been released for pub-
lication by that government will not be made available
to inquirers without the consent of the government con-
cerned. If there is reason to believe that a foreign gov-
ernment may be willing to permit the use of the papers
in question under certain conditions, the permission may,
at the discretion of the appropriate ofiicials of the De-
partment, be requested. (If such permission is re-
quested, the expenses of communicating with the foreign
government will be met by the person desiring to consult
the papers.)
3 Permission to consult the records of the Depart-
ment between the open date and January 1, 1933, or such
subsequent date as may be fixed by the Department, may
be granted, subject to the limitations set forth in this
regulation, to such persons as lawyers, publicists, and
qualified scholars provided that :
a The applicants satisfy the Department that
they have an important and definite use for the infor-
mation desired.
b The applicants confine their requests for mate-
rial to specific subjects or particular papers. The De-
partment is not in a position to assemble large quanti-
ties of papers for persons not ofiicials of the United
States Government.
c The applicants agree to utilize records made
available to them subject to such conditions as the
Department may find it necessary to prescribe.
4 An application from an alien to consult the
records of the Department under this regulation will be
considered only if such an application is accompanied
by a letter from the head of the embassy or legation at
Washington of the country of which tlie alien is a citi-
zen, subject, or national. Such a letter will show that
the applicant is favorably known to the appropriate
embassy or legation, and that the mission is familiar
with the applicant's work. The Department, however,
reserves the right, without prejudice, to refuse permis-
sion to consult its original records to any alien applicant.
5 All applications to consult the records of the
Department between the open date and January 1, 1933,
or such subsequent date as may be fixed by the Depart-
ment, will be referred to the Chief of RE. If the Chief
of RE is of the opinion that the applicant possesses the
requisite qualifications as set forth in this regulation,
such application will be handled as follows :
a Documents or papers previously released or
published, and unpublished papers clearly involving
no question of policy, intelligence, or security may be
1048
made available to qualified applicants by the Chief of
RE without reference to other officials.
b Material or Information bearing a security
classification originating with another Government
agency will not be made available unless specific ap-
proval is obtained from the agency of origin.
c In the case of requests for all other material,
information, or documents, the Chief of RE will in-
form the chief of the policy division charged with the
consideration of questions in the field which is the
object of research or inquiry of the nature and precise
limits of the proposed research and the papers
involved.
d If the chief of policy division concerned deter-
mines that the applicant will be permitted to use all
or part of the papers desired, he will inform the Chief
of RE of the conditions under which the papers may be
examined — that is, whether copies may be made of
the relevant documents or whether only notes may be
taken and whether the copies or notes may be pub-
lished in whole or in part, or used only for background
information ; or any other conditions which the chief
of policy division may deem it advisable to prescribe.
This decision will be final except in cases of unusual
importance where the question may be referred to the
Under Secretary.
e Upon receiving the decision of the chief of the
policy division setting forth the conditions deemed
advisable and necessary to preStribe, the Chief of RE
will arrange for the applicant to consult the files sub-
ject to the conditions decided upon.
f After the applicant has consulted the papers,
he will submit to the Chief of RE all notes, copies of
documents, and the like, which he has made. These
materials will be examined by the Chief of RE or sub-
mitted to the chief of the policy division, if he so
desires.
g After such examination the papers may be
transmitted to the applicant by the Chief of RE or re-
tained at the discretion of the chief of the division
concerned.
B VnpuMished Files or Records of the Department
of a Date Later Than January 1, 193S, etc. The unpub-
lished files or records of the Department of a date later
than January 1, 1933, or such subsequent date as may be
fixed by the Department, may not be made available to
persons who are not ofiicials of the United States Govern-
ment except in circumstances which have been determined
to be exceptional in accordance with the principles and
procedures set forth below:
1 A determination to permit access to persons
other than ofiicials of the United States Government to
the unpublished files and records of the Department dur-
ing the closed period as defined above may be made only
on the grounds that the interests of national policy are
served thereby.
2 Such a determination will be made by a Com-
mittee on the Use of Departmental Files, con.si.sting of
the Security Oflicer of the Department, the Chief of RE,
who shall be Chairman, and a representative of the
offices responsible for the political and/or economic
Department of State Bulletin
THE RECORD OF THE WEEK
policy involved. The Chief of RE shall designate an 4 Should the Committee fail to arrive at a unani-
Executive Secretary to serve the Committee. mous agreement as to the policy or its application to
3 All requests by persons outside the United States particular eases, the matter will be referred, fully docu-
Government for permission to use Departmental files in mented, to the Under Secretary for decision,
the closed period must be made in writing, with full ju lkebal Interpretation of Regulation. It is the
justification, to the Chief of RE who will refer the re- policy of the Department that its records be made avail-
quest to the Committee for decision and transmit the able to persons not officials of the United States Govern-
Department's decision to the applicant. ment as liberally as circumstances permit.
ay 25, 7947 1049
^om/^en/^
The United Nations Page
First Special Session of the General Assembly
of the U.N.: Procedural Questions With
Relation to Agenda. Article by Sheldon
Z. Kaplan and Betty C. Gough .... 1013
Current U.N. Documents: A Bibhography . 1018
General Conference of UNESCO, Paris: The
Program in Relation to the U.N. Article
by Esther C. Brunauer 1019
Relations Between UNESCO and WHO . . 1022
Report of First Joint Meeting of Negotiat-
ing Committees 1022
Special Committee on Palestine 1024
Meeting of ICAO: Actions on Draft Agree-
ment With U.N. and on Debarment of
Spain 1025
Committee on Progressive Development of
International Law and Its Codification:
Statement by Philip C. Jessup 1026
Suggestions by the United States .... 1029
Meeting of the Economic Commission for
Europe: Discussion on ECITO, EECE,
and ECO 1031
Economic Affairs
U.S. Delegation to Radio Conference . . . 1034
U.S. Delegation to PMCC 1035
Negotiations for Mutual Restoration of Civil
Property. Joint Statement by U.S. and
Yugoslav Governments 1041
Agreement on ITO Charter Urged for Eco-
nomic Stability. Statement by the Sec-
retary of State 1041
France Receives First Loan Made by Inter-
national Bank 1042
Additional Grain Shipments to France . . . 1042
Economic Affairs — Continued Pag«
UNRRA Operations: Tenth Quarterly Re-
port. The President's Letter of Trans-
mittal 1045
General Policy
U.S.-Mexican Friendship Reiterated .... 1043
Resignation of Dean Acheson as Under Secre-
tary of State 1046
Occupation Matters
U.S.-Soviet Joint Commission for Korea To
Be Reconvened. Letter From thelSecre-
tary of State to the Soviet Foreign Minis-
ter 1043
Appointment to Military Tribunal 1047
Treaty Information
Stabihzation Agreement With Mexico . . . 1043
Air-Transport Agreement With Chile . . . 1044
Tax Treaty Negotiations With New Zealand . 1046
International Information and Cultural
Affairs
Inauguration of Greek-Language Broad-
casts by Voice of America:
Statement by the Secretary of State . . . 1036
Statement by Assistant Secretary Benton . 1036
Statement by Senator Vandenberg . . . 1037
Radio Advisory Committee Urges Strength-
ening of Voice of America 1038
Calendar of International Meetings . . 1032
The Foreign Service
American Consular Service in India .... 1044
The Congress 1047
The Department
Appointment of Officers 1047
Departmental Regulations 1047
Sheldon Z. Kaplan and Betty C. Gough, authors of the article on the
Special Session of the General Assembly, are, respectively, Assistant to
the Legal Adviser, Department of State, and Assistant in International
Organization Affairs, Division of International Organization Affairs,
Office of Special Political Affairs, Department of State.
Esther 0. Brunauer, author of the article on the relation of the
program of UNESCO to the United Nations, is Consultant for the
UNESCO Relations Staff of the Department of State. Doctor
Brunauer served as U.S. Representative with the personal rank of
Minister on the Preparatory Commission of UNESCO and to the First
General Conference.
H. van Zile Eyde, author of the introductory remarks on UNESCO-
WHO relations, is Alternate U.S. Representative on the Interim Com-
mission of WHO ; Assistant Chief of the Health Branch, Division of
International Labor, Social and Health Affairs, Office of International
Trade Policy, Department of State.
U. S. 60VERHMEKT PRINTINC OFFICE; 1947
I
^fie/ ^ehco^i'me'Ti^/ xw t/taie^
PASSAGE OF BILL ON ASSISTANCE TO GREECE
AND TURKEY:
Statement by the President 1070
Executive Order 1070
Public.Law75 1071
SUMMARIES OF TEXTS OF PEACE TREATIES WITH
ITALY, BULGARIA, ROUMANU, AND HUNGARY . 1076
INTERNATIONAL WHEAT CONFERENCE • AnicU
hy Edtmrd G. Cale 1053
FoT complete contents see back cover
•^tes
^W»0,
%e Qe/iwrl^e^t ^/ y^ai^ iDlUlGllil
Vol. XVI, No. 413 • Pubijcation 2834
June 1, 1947
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Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
or State Bulletin as the source will be
appreciated.
The Department of State BULLETIN,
a weekly publication compiled and
edited in the Division of Publications,
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public and interested agencies of
the Government with information on
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Publications of the Department, cu-
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at the end of each quarter, as well as
legislative material in the field of
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currently.
1-^ 'i^li
INTERNATIONAL WHEAT CONFERENCE
by Edward G. Cole
The recent meeting in London of the International Wheat
Conference was one of a series of efforts extending over a
period of more than a dozen years looking toward the nego-
tiation and the putting into operation of an effecti/ve inter-
national agreement on wheat.
The International Wheat Conference was con-
vened in London on March 18, 1947, to attempt
to negotiate au international wheat agreement.
The Conference ended on April 23 with an agree-
ment drafted but not agreed upon. In its final
session the Conference passed on to the Inter-
national Wheat Council, established under the
1942 memorandum of agreement on wheat, the
task of consummating the negotiations.
The Council was initially composed of repre-
sentatives of Argentina, Australia, Canada, the
United Kingdom, and the United States. It issued
invitations in March 1946 to ten additional coun-
tries having a major interest in international trade
in wheat to become membei'S of the Council. The
following eight countries accepted: Belgium,
Brazil, China, Denmark, France, India, Italy, and
the Netherlands. The Union of Soviet Socialist
Eepublics and Yugoslavia, the other two countries
to which invitations were issued, did not accept.
The International Wlieat Conference, in decid-
ing to ask the Wlieat Council to continue the ne-
gotiations looking toward an international wheat
agreement, also accepted a proposal made by the
chairman of the United States Delegation to the
Conference, Leslie A. Wheeler, who is also Chair-
man of the Council, that membership in the Coun-
cil be expanded to include all countries represented
at the Conference which were not members of the
Council.
Invitations to attend the Conference were sent
by the Government of the United Kingdom to
all countries that are members of the United
iune 1, 7947
Nations or of the Food and Agriculture Organi-
zation. Forty-one countries accepted the invita-
tion and were represented either by delegates or
observers. These included all thirteen of the
countries that were members of the Council prior
to the Conference. Twenty-eight additional coun-
tries are therefore being invited to become mem-
bers of the Council. These are : Austria, Bulgaria,
Colombia, Cuba, Czechoslovakia, the Dominican
Republic, Egypt, Ethiopia, Greece, Guatemala,
Hungary, Iran, Ireland, Lebanon, Luxembourg,
Mexico, New Zealand, Norway, Peru, Poland,
Portugal, Rumania, Sweden, Switzerland, Syria,
Turkey, Uruguay, and Yugoslavia.
As an outgrowth of the Intei-national Monetary
and Economic Conference of 1933, the first multi-
lateral wheat agreement was signed in London in
1933. The central feature of this agreement was
a set of export quotas, but the agreement was in-
effective in halting a serious decline in wheat prices
that was already in progress. This agreement ran
for its initial two-year period and was then al-
lowed to expire. The Wheat Advisory Commit-
tee created under it was nevertheless continued into
the 1940's. In 1939 the task of drafting a com-
prehensive wheat agreement was assigned by the
Wlieat Advisory Committee to a preparatory
committee consisting of representatives of Argen-
tina, Australia, Canada, France, Germany, Hun-
gary, Rumania, the Union of Soviet Socialist Ee-
publics, the United Kingdom, and the United
States, but the work of this committee was inter-
rupted by the war.
1053
In July 1941, however, the i-epresentatives of
Argentina, Australia, Canada, the United King-
dom, and the United States met in Washington in
a further attempt to negotiate a wheat agreement.
It was as a result of these discussions that the
memorandum of agreement referred to earlier was
initialed on April 22, 1942, and went into effect on
June 27, 1942. The Washington Wlieat Meeting
was unable to negotiate a full-fledged wheat agree-
ment. The memorandum of agreement contained
those points on which agreement was reached. To
this memorandum there was attached a draft con-
vention which was to be the agenda for a postwar
conference on wheat, and certain provisions of
which were to be placed in effect in the meantime
in accordance with the provisions of the mem-
orandum of agreement. Under this arrangement
an International Wheat Council was established to
administer those provisions of the draft conven-
tion which were placed provisionally in effect
among the five countries in accordance with the
terms of the memorandum of agreement.
The United States Delegation to the Conference
was comprised of five delegates and a delegation
secretary.! The Conference had two main com-
mittees: Committee 1, dealing with those pro-
visions of the proposed agreement involving major
matters of policy, such as quotas, prices, et cetera ;
and Committee 2, dealing with those provisions
of the agreement involving organizational and
administrative questions. Sir Gerard Clauson of
the United Kingdom Delegation was elected chair-
man of the Conference and of Committee 1. Mr.
Wheeler and Mr. Cale of the United States Dele-
gation were elected, respectively, vice chairman
of the Conference and chairman of Committee 2.
The Conference adjourned on April 3 for the
Easter holidays and reassembled on April 14.
Prior to the recess the two committees had pre-
pared drafts of those portions of the agreement
with which they were concerned and had submitted
them to the full Conference with an indication of
those provisions on which agreement had been
reached in the committees and those on which
agreement remained to be reached. In executive
sessions of the full Conference just prior to the
' For members of the U. S. Delegation, see BtrLun-iN of
Mar. 23, 1947, p. 532. An additional delegate, not listed,
was Leroy K. Smith, Department of Agriculture.
' For an article on the draft memorandum, see Buixetin
of Mar. 16, 1947, p. 471.
1054
recess, agreement was reached on a number of the
provisions which had been left undecided by the
committees, and attention was focused on the
major points which remained unresolved. The
Easter holiday recess afforded the various delega-
tions an opportunity to discuss these with their
governments. The two committees mentioned
above did not function after the recess.
The annotated agenda of the Conference in Lon-
don was a memorandum on a proposed interna-
tional wheat agreement prepared by the Council.
This memorandum was based on the 1942 draft
convention but differed from it in a number of re-
spects, having been prepared in the light of more
recent developments in the field of international
commodity policy .^ For example, the memoran-
dum contained a provision which follows a prin-
ciple laid down in the ITO draft charter to the
effect that exporting countries as a group and im-
porting countries as a group shall have an equal
voice in the body administering an international
commodity agi-eement. The memorandum also
contained a provision which was not in the draft
convention, under which exporting countries
might, under certain conditions, sell wheat at spe-
cial prices to importing countries which agreed
to use it in connection with special nutritional
programs. This provision was recommended by
the FAO Preparatory Commission To Study
World Food Board Proposals, which met in Wash-
ington for approximately three months beginning
on October 28, 1946.
The memorandum was published by the Coun-
cil on February 19, 1947, in order that the gov-
ernments which planned to send delegations to the
Conference might have a fuller opportunity of
obtaining the reactions of individuals and groups
that would be affected by the agreement before
instructions were prepared for their delegations.
The memorandum envisioned a wheat agreement
which would have established minimum and maxi-
mum prices at which wheat would have been per-
mitted to move in international trade. Wlien ac-
tual prices fell to within a certain distance of the
minimum price, export quotas might have been
placed in effect by the exporting countries. When
actual prices approached the maximum price, sup-
plies might have been allocated among importing
countries. Export quotas and import allocations
would accordingly have been devices which would
have kept actual prices, respectively, from falling
Department of State Bulletin
below the minimum price or rising above the max-
imum i^rice. Importing countries would have been
expected to give assurance that they would con-
tinue to import substantial quantities of wheat by
luidertaking either to purchase a certain quantity
of wheat during the life of the agreement, or to
resti'ict domestic wheat production, or to limit gov-
ernment incentives to the j^roduction of wheat.
The draft agreement prepared by the Confer-
ence in London differed considerably from the
agreement envisioned in the Wlieat Council's
memorandum. The draft agreement is essentially
a multilateral bulk-purchase contract. Under it
signatory exporting countries would guarantee to
supply signatory importing countries, as a group,
with specified annual quantities of wheat during
the life of the agreement at a maximum price,
and importing countries would guarantee to
purchase specified annual quantities of wheat dur-
ing the life of the agreement from the exporting
countries, as a group, at a minimum price. The
total quantity of wheat which the exporting coun-
tries would have guaranteed to supply to the
importing countries during any year and the total
quantity of wheat which the importing countries
would have guaranteed to purchase from the
exporting countries would have had to be the
same. The exporting countries could have been
called upon by the importing countries to deliver
wheat only at the maximum price. The import-
ing countries could have been called upon by the
exporting countries to purchase wheat only at the
minimum price. Transactions in wheat over and
above the guaranteed quantities would not have
been subject to the terms of the agreement.
Early in the Conference the Argentine repre-
sentative indicated that his Government was not
prepai-ed to accept the provision under which a
maximum price would have been established for
Argentine wheat. It was only after this develop-
ment that consideration was given by the Confer-
ence to an agreement which would not regulate
all the transactions in wheat between the signa-
tory countries. In the course of the subsequent
discussions at the Conference the remaining prin-
cipal exporting countries — the United States,
Canada, and Australia — indicated that they were
prepared together to guarantee the export of 500
million bushels of wheat to the importing coun-
tries which would sign the agreement. The pro-
posed guaranteed export of the United States, as
indicated by the United States Delegation, was
185 million bushels. The importing countries
put in guaranteed quantities which would have
substantially exceeded 500 million bushels, espe-
cially during the early years of the agreement.
If the agreement had been consummated with the
guaranteed import quantities exceeding the guar-
anteed export quantities, it would have been left
to the new International Wheat Council, which
would have been established by the agreement,
to devise a way of equating the two quantities in
accordance with provisions that would have been
contained in the agreement.
With respect to prices, the draft provided a max-
imum price of $1.80 for the first year, $1.70 for the
second year, and $1.80 for the last three years of
a five-year agreement ; and it provided for a mini-
mum price of $1.40 for the first year, $1.30 for
the second year, $1.20 for the third year, $1.10
for the fourth year, and $1.00 for the last year.
These would have been the prices applicable to
the basic grade of wheat, no. 1 Manitoba North-
ern wheat at Fort William, Canada. The prices of
other grades of wheat at other locations would
have been established by adding or subtracting
differentials based on cost elements such as trans-
portation and quality differences.
The draft agreement was given to the press at
the time of the final plenary session of the Con-
ference. That session, which was open to the pub-
lic, indicated why it was not possible to consum-
mate the agreement during the Conference. Sub-
stantial agreement was reached on all of the provi-
sions of the draft except those relating to prices.
During the final plenary session the United King-
dom Delegation stated that it was not prepared to
accept the price provisions of the agreement. The
Canadian member then objected to having the
agreement prepared for signature in view of the
fact that not all the countries which he regarded
essential to the successful operation of the agree-
ment were willing to participate on the basis of the
prices contained in the draft.
It was indicated, however, in the final plenary
session that some of the delegations had reserva-
tions on points other than price. For example,
the Indian Delegation stated that it did not feel
that the draft made adequate provision to assure
it supplies of wheat that are needed to replace
rice until India's rice exports could be brought up
to a prewar normal level or to establish a satisf ac-
June 7, 1947
1055
tory form of allocation of wheat according to
need in time of shortage and during the continu-
ance of the world supply emergency. The French
Delegation expressed the opinion that the Con-
ference had not succeeded in achieving the objec-
tives at which it aimed. It felt that the draft in-
stead of being "an agreement among producers"
was a "commercial agreement, which is quite dif-
ferent".
It is therefore possible that the Wheat Council,
in its eflforts to bring the work of the Conference
in London to fruition, will have to give considera-
tion not only to the question of price but also to
such other matters as the extent to which need,
rather than commercial considerations, should in-
fluence the pattern of wheat distribution during
periods of scarcity and the possibility of expand-
ing the agreement to make it something more than
a contract to buy or sell wheat.
In addition to asking the existing International
Wheat Council to continue the negotiations look-
ing toward an international wheat agreement, the
Conference transmitted to the Council two reso-
lutions which it had prepared but on which it took
no formal action. One of these would have in-
vited the Council to assemble a Teclmical Com-
mission to determine in the currencies of the ex-
porting countries concerned the equivalent maxi-
mum and minimum prices for no. 1 Manitoba
Northern wheat in store Vancouver, for f.a.q.
bulk wheat, f.o.b. Australia, and for no. 1 Dark
Northern Spring wheat (ordinary protein) in
store Duluth in respect of the following prices for
no. 1 Manitoba Northern wheat in store Fort
William-Port Arthur— $1.80, $1.70, $1.40, and
$1.30 a bushel. The setting up of the Technical
Commission was made necessary because the Con-
ference had not worked out these equivalent prices.
The other draft resolution would have provided
that so long as wheat is in short supply importing
countries should agree not to buy from any source
quantities of wheat or substitute grains suitable
for direct himaan consumption in excess of their
guaranteed quantities in the proposed agreement,
except to the extent that the International Emer-
gency Food Council or any successor organization
has recommended that they should receive larger
quantities, it would also have provided that the
exporting countries should agree not to sell to any
country a quantity of wheat or substitute grains
which would cause it to receive more than its guar-
anteed quantity, unless that country is free to do
so for the reasons stated in the first part of the
resolution. The purpose of this resolution was to
prevent importing countries from supplementing
the amount of wheat which they would be assured
mader the agi'eement by purchases outside the
agreement if the effect of such purchases would
increase their total consumption of wheat or sub-
stitute grains above the allocations recommended
by the International Emergency Food Council. In
the absence of such a provision it would have been
possible for an importing country with an assured
source of supply under the agreement to buy addi-
tional wheat outside the agreement during the
present period of shortage to such an extent as to
render ineffective the cereals allocations recom-
mended by the Cereals Committee of the Inter-
national Emergency Food Council.
The International Wheat Council has recently
issued invitations through the Department of
State to the 28 countries which the Conference
recommended should be invited to become members
of the Council. The first step toward carrying out
the decisions of the Conference has therefore been
taken. In transmitting the invitation, the De-
partment of State said that it had been requested
to advise the invited governments that the chair-
man of the Council would convene its next session
as soon as he had been informed that substantial
progress had been made in the discussions between
certain of the governments concerned on those pro-
visions of article VI (prices) upon which they had
not been able to agree at the Conference.
1056
Deparfment of State Bulletin
Text of Proposed International Wheat Agreement
Preamble
The Govermnents on whose behalf this Agreement
has been signed,
Recognizing that there is now a serious shortage
of wheat, and that there may later be a serious
surplus ;
Believing that both the excessively high prices
resulting from the present shortage and the ex-
cessively low prices which would result from a
future surplus are harmful to their long-term in-
terests, whether they are producers or consumers of
wheat ; and
Concluding therefore that their own immediate
mterests, and the general interest of all countries
of the world in economic expansion, both require
that they should cooperate with one another to
bring some order into the international wheat
market.
Have agreed as follows :
Chapter I (Objectives)
Article I {Objectives)
The objectives of this Agreement are to assure
supplies of wheat to importing countries and to as-
sure markets to exporting countries at equitable
and stable prices.
Chapter II (Provisions Relating to the Trade in
Wheat)
Article II {Import and Export Rights and
Obligations)
1. The quantity of wheat set down in Annex I
to tliis Article against the name of each importing
country shall be called that country's "guaranteed
import quantity" and shall represent the quantity
of wheat which the International Wheat Council
provided for in Article XIV :
{a) may, in accordance with the provisions of
paragraph 2 of Article IV, require that country to
purchase at the minimum prices specified in or de-
termined under the provisions of Article VI for
shipment during each wheat year from the export-
ing countries ; or
{b) may, in accordance with the provisions of
June J, J 947
paragraph 1 of Article TV, require the exporting
countries to sell to that country at the maximum
prices specified in or determined under the pro-
visions of Article VI for shipment during each
wheat year.
2. The quantity of wheat set down in Annex II
to this Article against the name of each exporting
country shall be called that country's "guaranteed
export quantity" and shall represent the quantity
of wheat which the Council :
(a) may, in accordance with the provisions of
paragraph 1 of Article IV, require that country
to sell at the maximum prices specified in or de-
termined under the provisions of Article VT for
shipment during each wheat year to the importing
country ; or
{b) may, in accordance with the provisions of
paragraph 2 of Article IV, require the importing
countries to purchase from that country at the
minimum prices specified in or determined under
the provisions of Article VI for shipment during
each wheat year.
3. The Council shall at its first meeting compare
Annexes I and II and make such adjustments as
will make the totals of the two Annexes equal to
one another. Such adjustments shall, if possible,
be made by agreement with the countries con-
cerned. If all adjustments which can be made
by agreement have been made and the total of
Annex I is still in excess of the total of Annex
II, the Council shall adjust one or more individual
guaranteed quantities in Annex I so as to make the
totals of the two Annexes equal to one another.
In adjusting individual guaranteed quantities for
this purpose the Council shall take into account
the obligations which the individual importing
countries are prepared to accept in respect of
their guaranteed quantities in the subsequent
years of tlie Agreement. If all adjustments which
can be made by agreement have been made and
the total of Annex II is still in excess of the total
of Annex I, the Covmcil shall reduce each figure in
Annex II by the same proportion, unless the ex-
porting countries concerned agree otherwise.
1057
4. The Council may at any meeting approve an
increase in any figure or figures in either Annex
if an equal increase is simultaneously made in a
figure or figures in the other Annex.
ANNEX I TO ARTICLE II (IMPORT AND EXPORT
RIGHTS AND OBLIGATIONS)
Provisional Guaranteed Import Quantities
[Thousands of bushels*)
August-July 1347/48
Austria
Belgium
Brazil
China
Colombia
Cuba
Czechoslovakia . . . .
Dominican Republic .
Egypt
French Union
Greece
India
Ireland
Italy
Lebanon
Mexico
Netherlands
New Zealand
Norway
Peru
Portugal
Switzerland
United Kingdom . . .
Total
23,883
31,232
36, 743
20, 000
2,572
9,186
4,409
839
9,186
44, 091
16, 535
56, 015
14, 881
40,417
6,144
16,535
29, 394
6,000
7,632
4,409
9,186
14, 697
190, 000
692, 886
1948/49 1949/50 1950/51 1951/52
23.883
31,232
36, 743
18, 000
9,186
4,409
839
9,186
22, 045
16, 635
28, 007
14,881
40, 417
5,144
16, 535
29,394
6,000
7,632
4,409
9,186
14, 697
190, 000
538, 260
20,209
31,232
36, 743
15, 000
9,186
4,409
992
9,186
18, 372
16,535
28.007
14,881
40, 417
6,144
16,635
29,394
6,000
7,632
4,409
9,186
14, 697
190, 000
628, 066
16,634
31,232
36, 743
11,000
9,186
4,409
992
9,186
18, 372
16, 635
28. 007
14, 881
40, 417
5,144
16,535
29,394
6,000
7,632
4,409
9,186
14, 697
190, 000
620, 391
9,186
992
4,409
14, 697
46, 819
[Hundreds of metric tons*;
August-July
Austria
Belgium
Brazil
China
Colombia
Cuba
Czechoslovakia . . . .
Dominican Republic .
Egypt
French Union. . . . .
Greece
India
Ireland
Italy
Lebanon
Mexico
Netherlands
New Zealand
Norway
Peru
Portugal
Switzerland
United Kingdom . . .
Total
1947/48
1948/49
1949/60
1960/61
1951/52
6,600
6,600
6,500
4,600
8,600
8,500
8,600
8,500
10, 000
10, 000
10,000
10, 000
6,443
4,899
4,082
2,991
700
2,600
2,600
2,600
2,600
2,500
1,200
1,200
1,200
1,200
228
228
270
270
270
2,600
2,600
2,600
2,500
12,000
6,000
6,000
6,000
4,600
4,600
4,600
4,600
16,245
7,623
7,623
7,623
4,050
4,050
4,050
4,050
11,000
11,000
11, 000
11,000
1,400
1,400
1,400
1,400
4,600
4,500
4,600
4,500
4,600
8,000
8,000
8.000
8,000
1,633
1,633
1,633
1,633
2.060
2,050
2,050
2.050
1,200
1,200
1,200
1,200
1,200
2,500
2,600
2.600
2,500
4,000
4,000
4,000
4,000
4,000
61,710
61, 710
61,710
51,710
161, 359
146, 493
143, 718
141, 627
12,470
•Including wheat-flour in terms of wheat computed at 72 pounds of flour to
100 pounds of wheat.
1058
ANNEX II TO ARTICLE II (IMPORT AND EXPORT
RIGHTS AND OBLIGATIONS)
Provisional Guaranteed Export Quantities
[Thousands of bushels*)
August-July.
Australia
Canada
United States of America .
Total
1947/48
85, 000
230. 000
185, 000
600, 000
1948/49
8,5, 000
230, 000
185. 000
600, 000
1949/50
86, 000
230. 000
185, 000
600, 000
1960/61
85, 000
230. 000
185, 000
500, 000
1961/52
85,000
230, 000
186,000
600,000
[Hundreds of metric tons*)
1947'48
1948/49
1949/60
1950/51
1961/62
Australia
23,133
62, 597
50, 350
23,133
62. 597
60.350
23,133
62. 697
60,350
23.133
62. 697
60. 350
23 133
62 697
United States of America . .
60,360
Total
136, 080
136, 080
136, 080
136. 080
136, 080
*Including wheat-flour in terms of wheat computed at 72 pounds of flour
to 100 pounds of wheat.
Article III {Reports to the Council)
1. The importing and exporting countries un-
dertake to report to the Council all imports and
purchases for import of wheat into their terri-
tories and all exports and sales for export from
their territories giving in respect of each transac-
tion such information as the Council may request.
2. The Council shall keep a record of all such
transactions in wheat. It shall also keep a separate
record of those transactions in wheat which are
to count towards the guaranteed quantities set
down in Annexes I and II to Article II. The dif-
ference between the guaranteed quantity of each
country and the quantity recorded by the Council
as counting towards it shall be called the unfilled
guaranteed quantity of that country.
3. The Council shall record as counting towards
the guaranteed quantity of both the importing and
the exporting country for the cui-rent wheat year
any transaction or part of a transaction in wheat
between an exporting and an importing country if :
(a) the transaction is at a price not higher than
the maximum nor lower than the minimum speci-
fied in or determined under the provisions of Arti-
cle VI; and
(&) the transaction or part of the transaction so
recorded has resulted, or in the opinion of the
Council will result, in the shipment during the cur-
Department of Sfate Bulletin
i-ent wheat year from the exporting country of the
wheat contracted for; and
(e) the unfilled guaranteed quantities of both
the exporting and the importing countries are not
less than the transaction or part of the txansaction
so recorded.
4. The Council shall also record as counting
towards the guaranteed quantities of both export-
ing and importing countries those transactions
which are carried out in accordance with Article
IV.
5. If both the importing and the exporting
country concerned in a particular transaction in
wheat-flour inform the Council that they are
agreed that the price fixed for the transaction is
not higher than the equivalent maximum price
for wheat nor lower than the equivalent minimum
price for wheat specified in or determined under
the provisions of Article VI, the transaction shall
be counted by the Council towards the guaranteed
quantities of both the countries if the other condi-
tions laid down in this Article are fulfilled.
6. The Council shall circulate to each Delegate,
and may publish, a monthly statement of the
unfilled guaranteed quantity of each exporting
and importing country.
7. Each contracting Government shall supply
such other information as the Council may from
time to time request in connection with the ad-
ministration of this Agreement.
Article IV {Enforcement of Rights)
1. Any importing country which at any time
finds difficulty in purchasing its guaranteed
quantity at a price within the pi'ice ranges speci-
fied in or determined under the provisions of
Article VI may request the Council's help in
securing the desired supplies. Within three days
of the receipt of such a request the Secretary of
the Council shall notify all exporting countries
which have unfilled guaranteed quantities of the
request and of the size of the importing country's
unfilled guaranteed quantity, and invite them to
offer the necessary quantity of wheat at or below
the maximum price. If within fourteen days of
this notification by the Council the necessary
quantity of wheat has not been offered, the Coun-
cil, having regard to all the circumstances of the
case, shall as soon as possible and in any event
within seven days indicate the quantities of wheat
and wheat-flour respectively which it is appro-
June J, 1947
744612—47 2
priate for each or any of the exporting countries
to sell, and the country or countries so indicated
shall within one calendar month of the Council's
decision make the quantities so indicated avail-
able at the appropriate maximum price.
2. Any exporting country which at any time
finds difficulty in selling its guaranteed quantity
within the price ranges specified in or determined
under the provisions of Article VI may request
the Council's help in effecting the desired sales.
Within three days of the receipt of such a request
the Secretary of the Council shall notify all im-
porting countries which have unfilled guaranteed
quantities of the request and of the size of the
exporting country's unfilled guaranteed quantity,
and invite them to purchase the necessary quantity
of wheat at or above the minimum price. If
within fourteen days of this notification by the
Council the necessary quantity of wheat has not
been purchased, the Council, having regard to all
the circumstances of the case, shall as soon as
possible and in any event within seven days indi-
cate the quantities of wheat and wheat-flour re-
spectively which it is appropriate for each or any
of the importing countries to purchase and the
country or countries so indicated shall, within
one calendar month of the Council's decision, pur-
chase for shipment the quantities so indicated at
the appropriate minimum price.
3. Importing and exporting countries shall
carry out their obligations under this Article on
the same conditions regarding the currency or
manner in which payment is to be made or received
as apply to their imports or exports of other com-
modities.
Article V (Adjustment of Obligations)
1. Any contracting Government which fears
that it may be prevented by circumstances, such as
a short crop or the necessity to safeguard its bal-
ance of payments or monetary reserves, from
carrying out its obligations shall report the matter
to the Council.
2. Where difficulties with respect to the balance
of payments and monetary reserves are invoked
the Council shall seek and take into account, to-
gether with all other relevant facts, the opinion of
the International Monetary Fund as to the exist-
ence and the extent of such difficulties.
3. The Council shall discuss the matter with
the country concerned and if the Council finds that
1059
the country's representations are well-founded it
shall so rule, and if no other mutually acceptable
remedy can be found the Council shall, in the first
instance, if the reporting country is an importing
country, invite the other importing countries, and,
if it is an expoi'ting country, invite the other ex-
porting countries, to assume the obligations which
cannot be fulfilled. If the difficulty cannot be
solved in this way, the Council shall invite the ex-
porting countries, if the reporting country is an
importing country, or the importing countries,
if the reporting country is an exporting country,
to consider whether any one or more of them can
assist the reporting country to fulfil its obligations
or, failing that, accept a reduction in its or their
guaranteed quantities for the current wheat year
corresponding to the obligations which cannot be
fulfilled.
4. A country which is relieved of its obligations
by the procedure set out in the preceding para-
graph shall not be deemed to have committed a
breach of this Agreement.
5. If the reporting country cannot be assisted
by the procedure set out in paragraph 3 of this
Article and it is apparent to the Council that it
will not carry out its obligations, the following
procedure shall be adopted. If the reporting
country is an exporting country, the Council shall
forthwith reduce the total of the guaranteed quan-
tities in Annex I for the current wheat year to an
amount equal to the total of the guaranteed quanti-
ties which will remain in Annex II for the current
wheat year after account has been taken of the
prospective failure of one of the countries to carry
out its obligations. In adjusting individual quan-
tities in Amiex I for this purpose the Council shall
take into account the obligations which the indi-
vidual importing countries are prepared to accept
in respect of their guaranteed quantities in the
subsequent years of this Agreement. If the re-
porting country is an importing country, the Coun-
cil shall reduce the total of the guaranteed quanti-
ties in Annex II for the current wheat year to an
amount equal to the total of the guaranteed quan-
tities which will remain in Annex I for the current
wheat year after account has been taken of the
prospective failure of one of the countries to carry
out its obligations. In adjusting individual
quantities in Annex II for this purpose each
figure in the Annex shall be reduced by the
1060
same proportion, unless the exporting countries
concerned agree otherwise.
Article VI {Prices)
1. The basic minimum and maximum prices for
the duration of this Agreement shall be $1.00 and
$1.80 Canadian currency per bushel at the parity
for the Canadian dollar ruling on 1st April 1947
for No. 1 Manitoba Northern Wheat in store Fort
William-Port Arthur. These basic prices shall be
effective at all times when no other minimum and
maximum prices have been prescribed as provided
in this Article.
2. The minimum and maximum prices for the
1947/48 and 1948/49 wheat years respectively shall
be $1.40 and $1.80 and $1.30 and $1.70 Canadian
currency per bushel at the parity for the Canadian
dollar ruling on 1st April 1947 for No. 1 Manitoba
Northern wheat in store Fort William-Port
Arthur.
3. The minimmn prices for the 1949/50 and
1950/51 wheat years respectively shall be not less
than $1.20 and $1.10 Canadian currency per bushel
at the parity for the Canadian dollar ruling on
1st April 1947 for No. 1 Manitoba Northern
wheat in store Fort William-Port Arthur.
4. The equivalent minimmn and maximum
prices for the 1947/48 and 1948/49 wheat years
for:
(a) No. 1 Manitoba Northern wheat in store
Vancouver ;
(b) faq bulk wheat fob Australia; and
(c) No. 1 Dark Northern Spring wheat (or-
dinary protein) in store Duluth; shall be those
minimum and maximum prices agreed between
the Governments concerned.
5. The Council shall hold a special meeting in
July 1949 and in July of each subsequent year
for the purpose of examining all the facts and
circiunstances which it may consider relevant, in-
cluding in particular the recent trend of wheat
prices in transactions between importing and ex-
porting countries, the present and prospective
wheat supply and requirements situation, and the
general level of prices, and may, if it so decides
by a two-thirds majority of the votes of both i
importing and exporting countries voting sepa- (
rately, determine minimum and maximum prices
for the ensuing wheat year;
Provided that the minunum prices so det«r-
Department of State Bulletin
mined shall be not less than the minimum prices
otherwise provided for in this Article nor the
maximum prices greater than the basic maximum
price.
6. The Executive Committee, elected in accord-
ance with the provisions of Article XVII, may
at any date subsequent to 1st August 1947 desig-
nate any other description of wheat and deter-
mine the minimum and maximum prices for it in
consultation with the Governments concerned;
such prices shall be fair equivalents of the mini-
mum and maximum prices of the description of
wheat named in this Article which is most closely
comparable to the description of wheat so
designated.
7. In the case of any other description of wheat,
the minimum and maximiun prices for the time
being shall be derived from the minimum and
maximum prices of the description of wheat
named in this Article or subsequently designated
by the Executive Committee which is most closely
comparable to such other descriptions by the addi-
tion of an appropriate premium or by the deduc-
tion of an approjiriate discount.
8. The Executive Committee if at any time it
considers, or if it receives representations, that the
prices agreed under the procedure set out in para-
graph 4 of this Article or any prices determined
under the procedure set out in paragraphs 6 and 7
of this Article are no longer, in the light of current
freight or exchange rates or market premiums or
discounts, fair equivalents of the prices specified
in paragraph 2 or determined under the provi-
sions of paragraph 5 of this Article, may adjust
them accordingly.
9. The Executive Committee shall determine
the appropriate premium or discount in the event
of a dispute arising regarding a description of
wheat falling under the provisions of pai'agraph
7 of this Article.
10. All decisions of the Executive Committee
shall be binding on all contracting Governments;
Provided that any contracting Government
which considers that any such decision is disadvan-
tageous to it may ask that a meeting of the Coun-
cil be convened to review the matter.
11. Contracting Governments hereby undertake
to accept as final the decisions of the Council un-
der the provisions of this Article.
12. Subject to the provisions of paragraph 3 of
Article IV, nothing in this Article shall prejudice
June I, 1947
any Foreign Exchange Control regulation or re-
quirement m force in an exporting country as to
the currency in which payment shall be received
for wheat.
Article VII (Additional Supplies of Wheat)
If any contracting Governments desire to ob-
tain supplies of wheat other than guaranteed
quantities, the Council shall assist such countries
to obtain the quantities which they desire from
the exporting countries on equitable terms and
conditions.
Article VIII (Sales for Nutritional Programs)
Any exporting country may export wheat at
special prices in such quantities and for such pe-
riods and under such conditions as may be ap-
proved by the Council, but the Council shall not
give its approval unless it is satisfied that the full
commercial demand of the importing countries
will be met throughout the period in question at
not more than the minimum price. Such exports
of wheat shall be utilized in nutritional programs
approved by the Food and Agriculture Organiza-
tion. The rights and obligations of the contract-
ing Governments under the other provisions of this
Agi-eement shall not be modified by virtue of such
exports at special prices.
Article IX (Stocks)
1. The exporting countries shall ensure that
stocks of old wheat held at the end of their re-
spective crop-years (excluding price stabilization
reserves) are not less than the quantities specified
in the Annex to this Article ;
Provided that stocks of old wheat in any coun-
try may be permitted to fall below the minimum
so specified if the Council decides that this is nec-
essary in order to provide the quantity of wheat
needed to meet either the domestic requirements
of the exporting countries or the import require-
ments of the importing countries.
2. The exporting and importing countries shall
operate price stabilization reserves up to ten per-
cent of their respective guaranteed quantities for
each wheat year specified in the Annexes to Article
II, subject to the following conditions;
(a) the total of the price stabilization reserves
operated by the exporting countries shall so far as
possible be equal to the total of the price stabiliza-
tion reserves operated by the importing countries,
1061
unless the Council, in order to meet special circum-
stances of any particular exporting or importing
country, should otherwise decide;
(Z>) such reserve shall be accumulated as soon
and so long as free-market prices are below the
basic minimum price and shall be sold or utilized
as soon and so long as free-market prices are
above the maximum price for the time being in
force ;
(c) such reserves shall be accumulated first by
the exporting countries, and importing countries
shall be required to fill their own reserves only
uijon request by an exporting country that has
already filled its reserves; and when free-market
prices are above the maximum for the time being
in force, such importing countries may draw on
their price stabilization reserves for their own
requirements ;
(d) importing countries, when called upon to
fill their price stabilization reserves, shall pur-
chase a quantity of wheat equal to the additional
wheat required for this purpose from the export-
ing countries whether or not they use supplies of
domestically produced wheat to fill these reserves ;
and
(e) contracting Governments shall have the
right to claim a waiver of their obligations under
this Article in so far as it is necessary to safeguard
their balance of payments or monetary reserves.
ANNEX TO ARTICLE IX (STOCKS)
Country Millions of Bushels
Australia
Canada
United States of America
25*
70*
170**
*Excluding farm stocks
**Including farm stocks
Chapter Hi (General Provisions)
Article X {Signature, Acceptance, and Entry into
Force)
1. This Agreement shall be open for signature
in London forthwith, and shall remain open until
1st June 1947. It shall be subject to formal ac-
ceptance by the signatory Governments.
2. Governments at the time of signature shall
indicate whether they become parties to this Agree-
ment as importing or exporting countries by at-
taching their names to the appropriate Annex to
Article II, together with a statement of the annual
guaranteed quantity of wheat in respect of which
they admit an obligation under that Article. At
the time of signature each signatory Government
shall also set forth in the appropriate category in
Article XII the territories to which this Agree-
ment shall apply.
3. Acceptance shall be intimated by the deposit
of an instrument of acceptance with the Govern-
ment of the United Kingdom of Great Britain and
Northern Ireland, which will notify the fact of
each deposit of acceptance and the date thereof to
the Governments on whose behalf the Agreement
has been signed.
4. This Agreement shall come into force on 1st
August 1947 as between the Governments which
have deposited their instruments of acceptance be-
fore that date ;
Provided that any such Government may on or
before that date request the Government of the
United Kingdom of Great Britain and Northei'n
Ireland to summon forthwith a conference of all
the Governments which have accepted the Agree-
ment; and when such a conference is held any
Government may notify its immediate withdrawal
from the Agi-eement, if in its opinion the number
of countries which have accepted the Agreement,
or the guaranteed quantities stated in the Annexes
to Article II, will not ensure its successful opera-
tion.
Article XI {Accession)
Any Government may accede to this Agreement
with the unanimous approval of the Council and
upon such conditions as the Council may lay down.
Article XII {Territorial Application)
The territories to which this Agreement applies
are:
Exporting countries
Importing countries
Article XIII {Duration, Amendment, With-
drawal, Termination)
1. This Agreement shall remain in force for a
period of five years from the date of its entry
into force.
2. The Council shall, not less than six months
before the expiry of such period, communicate to
the contracting Governments its recommendations
regarding the renewal of this Agreement.
3. If at any time circumstances arise which, in
the opinion of the Council, affect or threaten to
aflfect adversely the operation of this Agreement,
the Council may by two-thirds of the total votes
1062
Department of State Bulletin
held by the Governments of importing countries
and by two-thirds of the total votes held by the
Governments of exporting countries recommend
an amendment of this Agreement to the contract-
ing Governments.
4. The Council may fix a time limit within
which each contracting Government shall notify
the Council whether or not it accepts the amend-
ment. Tlie amendment shall become effective
upon its acceptance by importing countries which
hold two-thirds of the votes of the importing
countries, including the Government of the United
Kingdom of Great Britain and Northern Ireland,
and by the Governments of Australia, Canada,
and the United States of America.
5. Any contracting Government which has not
notified the Council of its acceptance of the
amendment by the date on which it becomes effec-
tive may, after giving such notice as the Council
may require in each case, withdraw from this
Agreement at the end of the current wheat year,
but shall not thereby be released from any obliga-
tions under this Agreement not discharged by the
end of that wheat year.
6. Any contracting Government which con-
siders its national security endangered by the out-
break of hostilities may withdraw from this
Agreement upon the expiry of thirty days' written
notice to the Council. In the event of such a with-
drawal, the Council may recommend an amend-
ment of this Agreement in accordance with the
provisions of paragraph 3 of this Article.
Chapter IV (Administration)
Article XIV {The Council)
1. An International Wheat Council is hereby
established. Each contracting Government, and
any non-contracting Government for which a sep-
arate guaranteed quantity is specified in an Annex
to Article II, shall be a member of the Council
and may appoint one Delegate and one Alternate,
who may be accompanied by such advisers as their
Government deems necessary. The Food and Ag-
riculture Organization and the International
Trade Organization may each nominate to the
Council one non-voting representative. Pending
the establishment of the International Trade Or-
ganization, the Interim Co-ordinating Committee
for International Commodity Arrangements es-
tablished by the Economic and Social Council of
the United Nations may nominate to the Council
one non-voting representative.
2. The Council shall meet at least once during
each half of each wheat year and at such other
times as the Chairman may determine.
3. The Chairman shall convene a meeting of
the Council if so requested by {a) the Executive
Committee; or (6) the Delegates of five contract-
ing Goverimients ; or (c) the Delegate or Dele-
gates of any Govei'nment or Governments hold-
ing ten percent of the total votes; or {d) the Dele-
gate of any country presenting a request in accord-
ance with the provisions of paragraph 10 of Ar-
ticle VI.
4. The presence of Delegates holding at least 60
percent of the total votes shall be necessary to con-
stitute a quorum at any meeting.
5. The Council shall appoint for such periods,
and upon such terms and conditions as it may de-
termine, a Chairman and a Vice-Chairman. The
Cliairman shall have no vote.
6. The Council shall appoint a Secretary and
such staff as it considers necessary and shall de-
termine their remuneration, powers, and duties.
In selecting them and in fixing their terms and
conditions of employment, the Council shall have
regard to the practice of the specialized agencies
of the United Nations.
7. The Council shall have legal capacity in the
territory of each contracting Government to con-
tract, to acquire, and to dispose of property, and
otherwise to perform its functions under this
Agreement.
8. The temporary seat of the Council shall be
in London. The Council, in consultation with the
appropriate organs and agencies of the United
Nations, shall determine its permanent seat.
9. The Council shall establish rules of proce-
dure.
Article XV {Voting in the Counx^il)
1. The Delegates of the importing countries
shall hold 1,000 votes, which shall be distributed
between them for each wheat year in the propor-
tions which the guaranteed import quantities of the
countries have to the total of the guaranteed im-
port quantities for that wheat year. The Dele-
gates of the exporting countries shall also hold 1,000
votes, the distribution of which for each wheat year
shall be agreed between them. Each Delegate
shall have at least one vote and there shall be no
fractional votes.
iune I, 7947
1063
2. When an importing country accedes to this
Agreement under the provisions of Article XI, or
a guaranteed import quantity is increased in ac-
cordance with the provisions of paragraph 4 of
Article II, the Council shall re-distribute the votes
held by importing countries in accordance with
the provisions of the preceding paragraph of this
Article. An exporting country acceding to this
Agreement under the provisions of Article XI
shall agree with the other exporting countries the
number of votes which it shall hold.
3. In the event of the withdrawal of an import-
ing country under the provisions of Article XIII,
or the suspension under tlie provisions of para-
graph 5 of Article XVIII of the voting rights of
an importing country, the Council shall re-dis-
tribute the votes held by importing countries in
accordance with the provisions of paragraph 1 of
this Article. In the event of the withdrawal of an
exporting country under the provisions of Article
XIII, or the suspension under the provisions of
paragraph 5 of Article XVIII of the voting rights
of an exporting country, the exporting countries
shall agree the re-distribution of the votes held by
them.
4. Except where otherwise specified in this
Agreement, decisions of the Council shall be by
a simple majority of the votes cast.
Article XVI (The Poivers and Functions of the
Council)
1. The Council shall perform the duties assigned
to it under this Agreement and shall have such
powers in addition to those expressly conferred on
it thereunder as may be necessary to achieve its
effective operation and to realize its objectives.
2. The Council shall not, except by unanimity
of the votes cast, delegate the exercise of any of its
powers or functions. The Council may at any
time revoke such delegation by a simple majority
vote.
3. Any dispute arising out of the interpretation
of this Agreement, or regarding an alleged breach
of its provisions, shall be referred to the Council.
The Council may appoint a committee to ascertain
and report on the facts of such dispute. The Coun-
cil shall on the evidence before it, including the
findings of any committee so appointed, give a
ruling on the dispute but no contracting Govern-
ment shall be found to have committed a breach of
this Agreement except by a majority of two-thirds
of the votes held by the exporting countries and
of two-thirds of the votes held by the importing
countries.
4. The Council, after consultation with the
Wheat Advisory Committee established under the
Final Act of the Conference of Wlieat Exporting
and Importing Countries held in August 1933 and
with the International Wheat Council established
under the Memorandum of Agreement approved
in June 1942 and amended in June 1946, may take
over all assets and liabilities of those bodies.
5. The Council shall publish an annual report.
Article XVII {Executive Committee)
The Council shall elect annually an Executive
Committee which shall work under its general di-
rection and be responsible to it.
Article XVIII {Finance)
1. The expenses of Delegations to the Council
and of the members of the Executive Committee
shall be met by their respective Governments. All
other expenses necessary for the administration
of this Agreement, including those of the Secre-
tariat, shall be met by annual contributions from
the contracting Governments. The annual contri-
bution of each Government shall be proportionate
to the number of votes held by its Delegate for that
wheat year.
2. At its first Session, the Council shall approve
its budget for the period prior to 1st August 1948
and assess the contribution to be paid by each
contracting Government for that period.
3. The Council shall at its first Session during
the second half of each wheat year approve its
budget for the following wheat year and assess
the contribution to be paid by each contracting
Government for that wheat year.
4. The initial contribution of any Government
acceding to this Agreement after the first Session
of the Council shall be assessed proportionately
to the number of votes held by its Delegate and
to the number of full months between its accession
and the beginning of the first wheat year for
wliich it is assessed under the provisions of para-
graph 3 of this Article, but the assessments already
made upon other Governments shall not be altered
for the current wheat year.
5. Each contracting Government shall pay to
the Secretary of the Council its full contribution
1064
Department of State Bulletin
within six months of its assessment. Any con-
tracting Government failing to pay its contribu-
tion within one year of its assessment shall forfeit
its voting rights until its contribution is paid, but
shall not be deprived of its other rights nor re-
lieved of its obligations under this Agreement.
6. The Council shall publish an audited state-
ment of all its receipts and expenditures during
the period referred to in paragraph 2 of this
Article and during each wheat year thereafter.
7. Each contracting Government shall give con-
sideration to granting to the funds of the Council
and to the salaries paid by the Council to its staff,
treatment in its territory no less favourable than
that granted by it to the funds of, and salaries
paid by, other intergovernmental bodies of com-
parable status.
8. In the event of the termination of this Agree-
ment, the Council shall provide for the settlement
of its liabilities and the disposal of its assets.
Article XIX (Relation to Other Agreements)
1. So long as this Agreement remains in force,
it shall prevail over any provisions inconsistent
therewith which may be contained in any other
agreement previously concluded between any of
the contracting Governments;
Provided that if two contracting Governments
both desire to maintain an agreement or part of an
agreement concluded between them prior to 1st
January 1947, the Council shall be notified accord-
ingly and, if the Council finds that the interests
of third parties are unaffected, the agreement may
continue.
2. Should any contracting Government be party
to an agreement with a non-contracting Govern-
ment containing any provisions inconsistent with
this Agreement that contracting Government shall
at the earliest practicable date take all reasonable
steps to achieve the necessary amendment.
Article XX {Co-operation with Intergovern-
mental Organizations)
1. The Council shall make whatever arrange-
ments are required to ensure cooperation with the
appropriate organs of the United Nations and its
specialized agencies.
2. If the Council finds that any terms of this
Agreement are materially inconsistent with such
requirements as the United Nations through its
appropriate organs and specialized agencies may
June I, 1947
establish regarding inter-governmental commodity
agreements, such inconsistency shall be deemed to
be a circumstance affecting adversely the operation
of the Agreement and tlie procedure prescribed in
paragraphs 3, 4 and 5 of Article XIII shall be
adopted.
Article XXI {Languages)
The English and French texts of this Agreement
are equally authentic.
Article XXII {Defnitions)
For the purposes of this Agi-eement :
"Bushel" means sixty pounds avoirdupois.
"Crop-year" means in respect of Australia, the
period from 1st December to 30th November;
in respect of Canada, the period from 1st
August to 31st July ; in respect of the United
States of America, the period from 1st July
to 30th June; and in respect of any other
country such jseriod as may be agreed between
that country and the Council.
"Exporting country" means, as the context may
require, either a Government which has ac-
cepted this Agi-eement as the Government of
an exporting country or that country itself.
"Free-market prices" means the prices at which
transactions other than those relating to
guaranteed quantities take place between ex-
porting and importing countries.
"Importing country" means, as the context may
require, either a Government which has ac-
cepted this Agreement as the Government of
an importing country or that country itself.
"International Trade Organization" means the
specialized agency contemplated and so desig-
nated in the Report of the First Session of
the Preparatory Committee of the United
Nations Conference on Trade and Employ-
ment.
"Old wheat" means wheat harvested more than
two months prior to the beginning of the cur-
rent crop-year.
"Stocks" means the aggregate of the stocks of old
wlieat at the end of the crop-year held (a)
in all elevators, warehouses, and mills; (&)
in transit or at railroad sidings; (c) in the
case of the United States of America, on
farms; and {d) in the case of Canada, stocks
of wlieat of Canadian origin held in bond in
the United States of America.
(Continued on page 10S5)
1065
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of May 25, 1947
Far Eastern Commission . . .
United Nations:
Security Council
Military Staff Committee . .
Commission on Atomic Energy
Commission on Conventional Armaments
Committee on Progressive Development and Codification of Inter-
national Law.
ECOSOC (Economic and Social Council):
Fiscal Commission
Subcommission on Freedom of Information and of the Press .
German External Property Negotiations (Safehaven) :
Witli Portugal
With Spain
Inter-Allied Trade Board for Japan
International Conference on Trade and Employment: Second Meet-
ing of Preparatory Committee.
ICAO (International Civil Aviation Organization) : First Meeting of
General Assembly.
Congress of the Universal Postal Union
CITEJA (International Technical Committee of Aerial Legal Ex-
perts): 16th Session.
Council of Foreign Ministers: Commission To Examine Disagreed
Questions of the Austrian Treaty.
FAO (Food and Agriculture Organization) : Rice Study Group . . .
International Radio Conference
PMCC (Provisional Maritime Consultative Council)
Scheduled for May-July 1947
FAO (Food and Agriculture Organization) :
Subcommittee on Plant and Animal Stocks . . .
Executive Committee
Panel on Soil Erosion Control
lEFC (International Emergency Food Council) : Fourth Meeting .
United Nations:
Economic Commission for Europe:
Transport Session
Second Session
Special Committee on Palestine
ECOSOC (Economic and Social Council) :
Economic and Employment Commission
Human Rights Drafting Committee
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lisbon
Madrid
Washington
Geneva . .
Montreal
Paris . .
Montreal
Vienna .
Trivandrum,
India.
Atlantic City
Paris . . . .
Washington
Washington
Washington
Washington
Geneva . . .
Geneva . . .
Lake Success .
I^ake Success .
Lake Success .
Travancore,
1946
Feb. 26
Mar. 25
Mar. 25
June 14
1947
Mar. 24
May 12
May 19
May 19
1946
Sept. 3
Nov. 12
Oct. 24
1947
Apr. 10
May 6-27
May 7
May 10
May 12
May 15
May 15
May 16-19
May 26-30
June 2
June or July
May 26-27
May 27
July 5
May 26
June 2
June 9
' Prepared by the Division of International Conferences, Department of State.
1066
Departmenf of State Bulletin
Calendar oj Meetings — Continued
United Nations: ECOSOC— Continued
Fifth Session
Narcotic Drugs Commission
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Preparatory Conference of Experts on Telecommunications . . .
German External Property Negotiations With Turkey (Safehaven) .
Eleventh International Congress of Military Medicine and Pharmacy .
Royal Sanitary Institute: 61st Congress
ECITO (European Central Inland Transport Organization) : Seventh
Session of the Council (Second Part).
International Cotton Advisory Committee: Sixth Meeting
ILO (International Labor Organization) :
102d Session of Governing Body
30th Session of International Labor Conference
Permanent Agricultural Committee
IRO (International Refugee Organization) : Second Session of Pre-
jjaratory Commission.
ICAO (International Civil Aviation Organization):
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
Caribbean Commission: Fourth Meeting
International Congress of River Transportation
lARA (Inter-Allied Reparation Agency) : Meeting on Conflicting
Custodial Claims.
TJNRRA Council: Seventh Session
International Sugar Council
International Telecommunications Plenipotentiary Conference . . .
International Council of Scientific Unions: Executive Committee . .
International Rubber Study Group
Fourth International Congress of Administrative Sciences
UNESCO Executive Board
Lake Success . . .
Lake Success . . .
Shanghai ....
Lake Success . . .
Lake Success . . .
Ankara
Basel
Torquay, England
Paris
Washington . . .
Geneva
Geneva
Geneva
Geneva 2
Lima ....
Rio de Janeiro
Jamaica . . .
Paris ....
Brussels . . .
Washington .
London . . .
Atlantic City
Paris ....
Paris ....
Bern ....
Paris ....
1947
July 19
July 24 2
June 16
July 7
June 16
May 28 2
June 2-7
June 2-6
June 3
June 9
June 13-17
June 19
July
June 16
June 17
July 15
June 23-28
June 26-28
June
June
June or July
July 1
July 1-2
July 1
July 20-27
July
' Tentative.
Activities and Developments »
THE SOURCES OF JAPANESE IMPORTS'
1. The primary objective in selectinjjj the sources
of imports into Japan should be to minimize the
cost and difficulty of procurement. Factors to be
' Policy decision approved by the Far Eastern Com-
mission on May 8, 1947, and released to the press on May
20. A directive based upon this decision has been for-
warded to the Supreme Commander for the Allied Powers
for implementation.
June I, 7947
1067
ACTIVITIES AND DBVBLOPMENTS
taken into account are price, terms of purchase
other than price, and assurance of meeting sched-
uled requirements.
2. In determining the sources of imports into
Japan of commodities in world short supply, due
consideration should be given to the needs of couji-
tries other than Japan in addition to the factors
mentioned in paragraph 1.
3. In procurement of commodities in world sur-
plus or in procurement of any commodity whose
export to Japan is of substantial commercial im-
portance to a member of the United Nations, while
primary consideration should be given to the ob-
jectives outlined in paragraph 1 above, considera-
tion should also be given to such other relevant
factors as the interests of all members of the United
Nations, including any new trade situations or de-
mands arising in postwar circiunstances and pre-
war patterns of trade, so long as the prewar pat-
terns of trade reflect current economic interests of
the comitries concerned. Taking into account the
foregoing principles the Inter-Allied Trade Board
may recommend individual treatment for different
types of imports.
4. This statement of policy will in no way be
permitted to jeopardize the fulfilment of United
States responsibilities for the prevention of such
widespread disease or civil unrest as would en-
danger tlie occupying forces oi* interfere with
military operations.
THE DESTINATION OF JAPANESE EXPORTS ■
1. The primary objective in selecting the des-
tinations of exports from Japan, subject to para-
graphs 3 and 4, is to maximize the proceeds. Fac-
tors to be taken into account are price, the purchas-
ing power of the currency for which the commodity
is sold, and the availability of necessary imports
which can be procured with the proceeds of the
export.
2. Commercial exports as distinct from com-
modity movements on reparations account or
restitutions shall be made only to those recipients
' Policy decision approved by the Far Eastern Commis-
sion on May 8, 1947, and released to the press on May 20.
A directive based upon this decision has been forwarded
to the Supreme Commander for the Allied Powers for
implementation.
1068
who agree to provide imports necessary for Japan
in exchange or agree to pay for Japanese exports
in foreign exchange usable for procuring necessary
imports. Foreign exchange is considered usable
under any of the following circumstances :
(a) Freely convertible into currencies which can
be used for the i^urpose of procuring necessary
imports.
( b ) Inconvertible, but usable to pay for imports
already or concurrently purchased, but not paid
for.
(c) Inconvertible, but stable in value and sub-
ject to a specific agreement with the area within
which the currency is valid — subject to the condi-
tion that excess balances of the currency in ques-
tion arising from sale of Japanese exports, not
usable for purchase of imports within a reason-
able time period, will be made convertible into
dollars.
3. In determining the destination of exports
from Japan of commodities in world short supply
or commodities, whose import is of substantial
commercial importance to a member of the United
Nations, consideration should be given to the in-
terests of all members of the United Nations.
Proper consideration should be given to the factors
mentioned in paragraph 1 and also to other factors,
including the requirements of countries for the
commodities concerned, and new situations or de-
mands arising in postwar circumstances and the
prewar patterns of trade, so long as the prewar pat-
terns of trade reflect current economic needs of the
countries concerned. Taking into account the fore-
going principles, the Inter-Allied Trade Board
may recommend individual treatment for different
types of exports.
4. For allocated commodities the price should be
the same to all recipients and should in general be
fixed according to the following principles :
(a) The price should be the established world
price wliere such a price exists.
(l) Wiere there is no established world price
the price should be fixed in equitable relation to
export prices of equivalent goods from other
sources and to the domestic prices in the recipient
countries which have substantial markets for the
commodity.
Department of State Bulletin
'
J
DIVISION OF REPARATION SHARES'
For acts of aggression committed by Japan and
for the purpose of equitable reparation of the
damage caused by her to the Allied Powers and
in the interests of destruction of the Japanese war
potential in those industries which could lead to
Japan's rearmament for waging war, reparations
shall be exacted from Japan through the transfer
of such existing Japanese capital equipment and
facilities or such Japanese goods as exist or may
in future be produced and which under policies
set forth by the Far Eastern Commission or pur-
suant to the terms of reference of the Far Eastern
Commission should be made available for this pur-
pose. The reparations shall be in such a form
as would not endanger the fulfilment of the pro-
gram of demilitarization of Japan and which
would not prejudice the defraying of the cost of
occupation and the maintenance of a minimum
civilian standard of living. The shares of par-
ticular countries in the total sum of the reparations
from Japan shall be determined on a broad politi-
cal basis, taking into due account the scope of
material and human destruction and damage suf-
fered by each claimant country as a result of the
preparations and execution of Japanese aggres-
sion, and taking also into due account each coun-
try's contribution to the cause of the defeat of
Japan, including the extent and duration of its
resistance to Japanese aggression.
The clauses herein on reparations and references
to this subject are without prejudice to the views
of governments on the overseas assets issue.
U.S. DELEGATION TO HEALTH CONGRESS OF
ROYAL SANITARY INSTITUTE
[Released to Uie press May 22]
The Secretary of State announced on May 22
that the President has approved the composition
of the United States Delegation to the Health
Congress of the Royal Sanitary Institute which
is scheduled to be held at Torquay, England,
from June 2 to 6, 1947. The nominations of the
delegates were based upon the recommendations
of the War Department, the Navy Department,
the Federal Security Agency, and the American
ACTIVITIBS AND DEVELOPMENTS
Public Health Association. The members of the
United States Delegation are as follows :
Chairman
Dr. Martha M. Eliot, Associate Chief, U.S. Children's
Bureau, Social Security Administration, Federal
Security Agency
Vice chairman
Surgeon Burnet M. Davis, Public Health Methods Activi-
ties, U.S. Public Health Service, Federal Security
Agency ; Liaison Officer, British Ministry of Health,
London
Delegates
Dr. Thomas D. Dublin, Professor of Preventive Medicine
and Community Health, Long Island College of
Medicine, Brooklyn
Col. Martin F. DuFrenne, M.C., U.S.A., Liaison Officer,
Office of the Director General, British Army Medical
Service, London
Capt. Ai-thur W. Loy, M.C., U.S.N., Assistant Naval
Attach^, American Embassy, London
Dr. Harry S. Mustard, Director, Columbia University
School of Public Health, New York
The invitation to the United States to partici-
pate in the Health Congress was transmitted by
the United Kingdom on behalf of the Koyal Sani-
tary Institute. This Congress resumes the amiual
series held before the war at which the Govern-
ment of the United States was represented for a
number of years. The last Royal Sanitary Insti-
tute Congress was held in 1939 at Scarborough,
England. The purpose of the forthcoming meet-
ing is to provide an opportunity for public health
workers from all parts of the world to discuss
subjects of mutual interest and to renew profes-
sional relationships.
The Congress will be divided into sections where
papers will be discussed on the following topics :
preventive medicine; engineering and architec-
ture; maternal and child health; veterinary hy-
giene; food and nutrition; housing and town
planning; hygiene in industry; and tropical hy-
giene. The meetings of the sections will be fol-
lowed by conferences of medical officers of health,
engineers and surveyors, sanitary inspectors, and
health visitors.
' Policy decision approved by the Far Plastern Commis-
sion on May 8, 1947, and released to the press on May 20.
This decision has been communicated to the Supreme
Commander for the Allied Powers.
June 1, 7947
1069
THE RECORD OF THE WEEK
Passage of Bill Authorizing Assistance to Greece and Turkey
STATEMENT BY THE PRESIDENT i
[Released to the press by the White House May 22]
The act authorizing United States assistance to
Greece and Turkey, which I have just signed, is
an important step in the building of the peace.
Its passage by overwhehning majorities in both
Houses of the Congress is proof that the United
States earnestly desires peace and is willing to
make a vigorous effort to help create conditions of
peace.
The conditions of peace include, among other
things, the ability of nations to maintain order
and independence, and to support themselves
economically. In extending the aid requested by
two members of the United Nations for the pur-
pose of maintaining these conditions, the United
States is helping to further aims and purposes
identical with those of the United Nations. Our
aid in this instance is evidence not only that we
pledge our support to the United Nations but that
we act to support it.
With the passage and signature of this Act, our
Ambassadors to Greece and Turkey are being in-
structed to enter into immediate negotiations for
agreements which, in accordance with the terms
of the Act, will govern the application of our aid.
We intend to make sure that the aid we extend will
benefit all the peoples of Greece and Turkey, not
any particular group or faction.
I wish to express my appreciation to the leaders
and members of both parties in the Congress for
their splendid support in obtaining the passage of
this vital legislation.
REGULATIONS FOR CARRYING OUT THE PROVISIONS OF THE ACT ENTITLED "AN ACT
TO PROVIDE FOR ASSISTANCE TO GREECE AND TURKEY" '
By virtue of the authority vested in me by the
act of May 22, 1947, entitled "An Act to provide
for assistance to Greece and Turkey", hereinafter
referred to as the act, and as President of the
United States, I hereby prescribe the following
regulations for carrying out the provisions of the
act:
1. Subject to such policies as the President may
from time to time prescribe, the Secretary of State
is hereby authorized, through such departments,
agencies, and independent establishments of the
Government as he may designate, to exercise any
power or authority conferred upon the President
by the act, including expenditure of funds made
available for the purposes of the act.
2. The Chief of Mission to Greece or Turkey
appointed by the President pursuant to section 8 of
the act shall, under the guidance and instructions
' Issued upon signature May 22 of S. 938, 80th Cong.,
1st sess.
•Ex. Or. 9857, 12 Federal Reijister 3331.
1070
of the Secretary of State, direct United States
activities within Greece or Turkey, as the case may
be, in furnishing assistance under the act. The
Secretai-y of State may delegate to the Chief of
Mission such powers or authority conferred by this
order as he may deem necessary and proper to
the effective carrying out of the provisions of the
act and of the basic agreement with the Govern-
ment of Greece or Turkey, as the case may be,
setting forth the general terms and conditions un-
der which assistance is to be furnished.
3. The Secretary of State shall provide, and at
his request other departments, agencies, inde-
pendent establishments, and officers of the Govern-
ment shall cooperate in providing to the extent
considered feasible in keeping with their other
established governmental responsibilities and to
the extent that funds may be available therefor,
such personnel, together with their compensation,
allowances, and expenses, and such administrative
sui^plies, facilities, and services as may be necessary
and proper to the effective carrying out of the
provisions of the act.
Department of State Bulletin
4. Subject to the provisions of jjaragi-aph 2
hereof, the powers and authority conferred upon
the Secretary of State by this order shall be exer-
cised by the Secretary or, subject to his direction
and control, by such officers and agencies of the
Department of State as he may designate, in the
interest of effective administration and proper
coordination of f imctions under the act.
5. The Secretary of State shall make appropri-
THE RECORD Of THB WBEK
ate arrangements with the Secretaries of AVar and
the Navy, and the heads of other Government
departments, agencies, and independent establish-
ments concerned, in order to enable them to fulfill
their responsibilities under the act.
Haeey S. Truman
The White House
May 22, 1H7
AN ACT TO PROVIDE FOR ASSISTANCE TO GREECE AND TURKEY'
Whereas the Governments of Greece and Tur-
key have souglit from the Government of the
United States immediate financial and other as-
sistance which is necessary for the maintenance
of their national integrity and their survival as
free nations; and
Whereas the national integrity and survival of
these nations are of importance to the security of
the United States and of all freedom-loving peoples
and depend upon the receipt at this time of assist-
ance; and
Whereas the Security Council of the United
Nations has recognized the seriousness of the un-
settled conditions prevailing on the border be-
tween Greece on the one hand and Albania, Bul-
garia, and Yugoslavia on the other, and, if the
present emergency is met, may subsequently as-
sume full responsibility for this phase of the prob-
lem as a result of the investigation which its com-
mission is currently conducting; and
Whereas the Food and Agriculture Organiza-
tion mission for Greece recognized the necessity
that Greece receive financial and economic assist-
ance and recommended that Greece request such
assistance from the appropriate agencies of the
United Nations and from the Governments of the
United States and the United Kingdom; and
Whereas the United Nations is not now in a
position to furnish to Greece and Turkey the finan-
cial and economic assistance which is immediately
required; and
Whereas the furnishing of such assistance to
Greece and Turkey by the United States will con-
tribute to the freedom and independence of all
members of the United Nations in conformity with
the principles and purposes of the Charter: Now,
therefore,
Be it enacted hy the Senate and House of Repre-
sentatives of the United, States of America in
Congress assembled, That, notwithstanding the
provisions of any other law, the President may
from time to time when he deems it in the interest
of the United States furnish assistance to Greece
and Turkey, upon request of their governments,
and upon terms and conditions determined by
him —
(1) by rendering financial aid in the form of
loans, credits, grants, or otherwise, to those
countries ;
(2) by detailing to assist those countries any
persons in the employ of the Government of the
United States; and the provisions of the Act of
May 25, 1938 (52 Stat. 442), as amended, appli-
cable to personnel detailed pursuant to such Act,
as amended, shall be applicable to personnel de-
tailed pursuant to this paragraph: Provided,
however. That no civilian personnel shall be as-
signed to Greece or Turkey to administer the
purposes of this Act until such personnel have
been investigated by the Federal Bureau of In-
vestigation ;
(3) by detailing a limited number of members
of the military services of the United States to
assist those countries, in an advisory capacity only ;
and the provisions of the Act of May 19, 1926 (44
Stat. 565), as amended, applicable to personnel
detailed pursuant to such Act, as amended, shall
be applicable to personnel detailed pursuant to
this paragraph ;
(4) by providing for (A) the transfer to, and
the procurement for by manufacture or otherwise
and the transfer to, those countries of any articles,
• Public Law 75, 80th Cong., 1st sess.
June I, 1947
1071
THE RECORD Of THE WEEK
services, and information, and (B) the instruction
and training of personnel of those countries ; and
(5) by incurring and defraying necessary ex-
penses, including administrative expenses and
expenses for compensation of personnel, in con-
nection with the carrying out of the provisions of
this Act.
Sec. 2. (a) Sums from advances by the Re-
construction Finance Corporation under section 4
(a) and from the appropriations made under
authority of section 4 (b) may be allocated for any
of the purposes of this Act to any department,
agency, or independent establishment of the Gov-
ernment. Any amount so allocated shall be avail-
able as advancement or reimbursement, and shall
be credited, at the option of the department,
agency, or independent establishment concerned,
to appropriate appropriations, funds or accounts
existing or established for the purpose.
(b) Whenever the President requires payment
in advance by the Government of Greece or of
Turkey for assistance to be furnished to such
countries in accordance with this Act, such pay-
ments when made shall be credited to such coun-
tries in accounts established for the purpose. Sums
from such accounts shall be allocated to the de-
partments, agencies, or independent establish-
ments of the Government which furnish the as-
sistance for which payment is received, in the
same manner, and shall be available and credited
in the same manner, as allocations made under
subsection (a) of this section. Any portion of
such allocation not used as reimbursement shall
remain available until expended.
(c) Whenever any portion of an allocation
under subsection (a) or subsection (b) is used
as reimbursement, the amount of reimbursement
shall be available for entering into contracts and
other uses during the fiscal year in which the re-
imbursement is received and the ensuing fiscal
year. Where the head of any department, agency,
or independent establishment of the Government
determines that replacement of any article trans-
ferred pursuant to paragraph (4) (A) of section
1 is not necessary, any funds received in payment
therefor shall be covered into the Treasury as
miscellaneous receipts.
(d) (1) Payment in advance by the Govern-
ment of Greece or of Turkey shall be required by
the President for any articles or services furnished
to such country under paragraph (4) (A) of
1072 •
section 1 if they are not paid for from funds ad-
vanced by the Reconstruction Finance Corpora-
tion under section 4 (a) or from funds appropri-
ated under authority of section 4 (b).
(2) No department, agency, or independent
establishment of the Government shall furnish any
articles or services under paragraph (4) (A) of
section 1 to either Greece or Turkey, unless it re-
ceives advancements or reimbursements therefor
out of allocations under subsection (a) or (b) of
this section.
Sec. 3. As a condition precedent to the receipt
of any assistance pursuant to this Act, the govern-
ment requesting such assistance shall agree (a) to
permit free access of United States Government
officials for the purpose of observing whether
such assistance is utilized effectively and in ac-
cordance with the undertakings of the recipient
government; (b) to permit representatives of the
press and radio of the United States to observe
freely and to report fully regarding the utiliza-
tion of such assistance; (c) not to transfer, with-
out the consent of the President of the United
States, title to or possession of any article or
information transferred pursuant to this Act nor
to permit, without such consent, the use of any
such article or the use or disclosure of any such
information by or to anyone not an officer, em-
ployee, or agent of the recipient government; (d)
to make such provisions as may be required by the
President of the United States for the security of
any article, service, or information received pur-
suant to this Act; (e) not to use any part of the
proceeds of any loan, credit, grant, or other form
of aid rendered pursuant to this Act for the mak-
ing of any payment on account of the principal
or interest on any loan made to such government
by any other foreign government; and (f) to give
full and continuous publicity within such country
as to the purpose, source, character, scope,
amounts, and progress of United States economic
assistance carried on therein pursuant to this Act.
Sec. 4. (a) Notwithstanding the provisions of
any other law, the Reconstruction Finance Corpo-
ration is authorized and directed, until such time
as an appropriation shall be made pursuant to
subsection (b) of this section, to make advances,
not to exceed in the aggregate $100,000,000, to
carry out the provisions of this Act, in such man-
ner and in such amounts as the President shall
determine. I
Deparfmenf of Sfafe Bulletin
(b) There is hereby authorized to be appropri-
ated to the President not to exceed $400,000,000
to carry out the provisions of this Act. P^rom
appropriations made under this authority there
shall be repaid to the Reconstruction Finance
Corporation the advances made by it under sub-
section (a) of this section.
Sec. 5. The President may from time to time
prescribe such rules and regulations as may be
necessary and proper to carry out any of the pro-
visions of this Act; and he may exercise any
power or authority conferred upon him pursuant
to this Act through such department, agency,
independent establishment, or officer of the Gov-
ernment as he shall direct.
The President is directed to withdraw any or
all aid authorized herein under anj' of the follow-
ing circumstances:
(1) If requested by the Government of Greece
or Turkey, respectively, representing a majority
of the people of either such nation;
(2) If the Security Council finds (with respect
to which finding the United States waives the
exercise of any veto) or the General Assembly
finds that action taken or assistance furnished by
the United Nations makes the continuance of such
THE RECORD OF THE WEEK
assistance unnecessary or undesirable;
(3) If the President finds that any purposes of
the Act have been substantially accomplished by
the action of any other intergovernmental organ-
izations or finds that the purposes of the Act are
incapable of satisfactory accomplisliment ; and
(4) If the President finds that any of the assur-
ances given pursuant to section 3 are not being
carried out.
Sec. 6. Assistance to any country under this
Act may, unless sooner terminated by the Presi-
dent, be terminated by concurrent resolution by
the two Houses of the Congress.
Sec. 7. The President shall submit to the Con-
gress quarterly reports of expenditures and activi-
ties, which shall include uses of funds by the
recipient governments, under authority of this
Act.
Sec. 8. The chief of any mission to any country
receiving assistance under this Act shall be
appointed by the President, by and with the ad-
vice and consent of the Senate, and shall perform
such functions relating to the administration of
this Act as the President shall prescribe.
Approved May 22, 1947.
Correspondence Relating to the Greco-Turkish Aid Bill
LETTER FROM THE SECRETARY OF
My Dear Mr. Eaton : *
I regret that I was not in Washington during the
consideration by your Committee of the Greek-
Turkish aid bill. As the bill comes before the
House of Representatives for consideration I
would like you to have expression of my views
on it.
Prior to my departure for Moscow, I partici-
jjated in the formulation of the program which the
President later laid before Congress. The Presi-
dent telegraphed to me in Paris the proposed text
of his message of March 12, and I informed the
Department that I fully concurred. The bill
which was later introduced in both Houses of the
Congress, together with the amendments agreed
on in the Senate, has my full approval.
My strong conviction that the immediate passage
of this bill is a matter of the greatest urgency was
made even more positive by the recent meeting in
Moscow.
STATE TO REPRESENTATIVE EATON'
I am in complete accord .yith the actions taken
by Mr. Acheson on tliis aubjffct in my absence. We
were in constant touch with each otltbr and all
moves were fully coordinated. Your Committee is
deserving of the highest praise for its thorough
exploration of the question and for its able and
comprehensive Report. I fully endorse the Com-
mittee's conclusion that the bill pending before the
House would enable the United States, in this
crisis, to support the United Nations by pursuing a
positive policy in behalf of Greece and Turkey. I
am convinced that it will be in our own interest and
in the interest of world peace.
I hope that the bill will be enacted as expedi-
tiously as possible.
Sincerely yours,
George C. Marshall
Secretary of State
' Read on the floor of the House of Representatives on
May 6.
June I, 1947
1073
LETTER FROM AMBASSADOR AUSTIN TO
REPRESENTATIVE EATON
New York, May 8, 1947.
Hon. Charles A. Eaton,
Chairman, CommUiee on Foreign Affairs,
House of Representatives.
In answer to your telegram :
In my opinion the United States program for
aid to Greece and Turkey does not bypass the
United Nations. On the contrary it would be a
most essential act in support of the United Nations
Charter and would advance the building of col-
lective security under the United Nations.
The United States took the initiative in explain-
ing the proposed United States program to the
United Nations Security Council; my statements
of March 28, 1947, and April 10, 1947, set forth in
full the reasons necessitating the American-aid
program and the relationship of this program to
the purposes and principles of the United Nations.
I informed the Security Council on behalf of the
United States that the United States will immedi-
ately register with the United Nations for publica-
tion by the Secretary General copies of agreements
connected with the execution of this program
which may be entered into between Greece and the
United States or between Turkey and the United
States.
The Security Council, on the initiative of the
United States, is already acting on that aspect of
the Greek question with which it is now prepared
to deal — the conditions on the northern Greek
frontiers.
No organ of the United Nations can at this time
provide financial and military assistance to the
Greek Government of the emergency character
required.
The proposed American program will assist in
restoring stability and security in Greece and
maintaining them in Turkey. When stable con-
ditions are restored in Greece it should be possible
to, provide such further financial and economic
assistance as might then be required through the
Economic and Social Council of the United Na-
tions and related specialized agencies.
Warren R. Austin
Current United Nations Documents: A Selected Bibliography
There will be listed periodically in the Bulletin a se-
lection of United Nations documents which may be of
interest to readers.
Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New York City. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
Economic and Social Council
Commission on Human Rights. Sub-commission on
Freedom of Information and of the Press. Consti-
tutional Provisions, International Declarations and
Other Statements Concerning Freedom of Informa-
tion. (Submitted by the Secretariat.) E/CN.4/Sub.
1/10, May 16, 1947. 14 pp. mimeo.
Memorandum on Historical Background of Sub-
commission. (Submitted by the Secretariat.) E/
CN.4/Sub.l/ll, May 16, 1947. 4 pp. mimeo.
Memorandum on Possible International Action in the
Field of Freedom of Information. (Prepared by the
1074
Secretariat.) E/CN.4/Sub.l/6, May 15, 1947. 15 pp.
mimeo.
Plan of Organization of the Conference on Freedom
of Information. (Submitted by the Secretariat.) E/
CN.4/Sub.l/8, May 19, 1947. 11 pp. mimeo.
Seport of Committee on Substitutes for Absent Mem-
bers to Sub-commission on Freedom of Information.
E/CN.4/Sub.l/13, May 19, 1947. 3 pp. mimeo.
^Text of Statement Made at Second Meeting of First
Session of Sub-commission on Freedom of Informa-
tion and of the Press by Mr. Zechariah Chafee (United
States). E/CN.4/Sub.lA4, May 19, 1947. 2 pp.
mimeo.
Fiscal Commission. Additional Memorandum on Pro-
gramme of Work. Note by tlie Secretariat.
E/CN.8/13, May 18, 1947. 11 pp. mimeo.
Additional Remarks on Periodic Publications.
E/CN.8/11, May 17, 1947. 15 pp. mimeo.
Proposal Submitted by the Delegate for the United
States. E/CN.8/22, May 20, 1947. 2 pp. mimeo.
Department of State Bulletin
Approval Urged for Peace Treaties With Italy,
Roumania, Bulgaria, and Hungary
LETTER FROM THE PRESIDENT TO THE SECRETARY OF STATE
May 5, 1^7.
My dear Mr. Secretary : Since your return you
and I have cai'efully canvassed the existing situa-
tion regarding the ratification of the Italian and
the three satellite treaties now pending before the
Senate. I understand that you will appear soon
with Mr. Byrnes before the Senate Committee on
Foreign Relations to conclude the hearings on
these treaties. You are authorized to say that I
concur wholeheartedly in the views which you and
Mr. Byrnes will express to the effect that it is in
our opinion vital to our foreign policy that these
treaties be promptly ratified.
I understand that it has been urged that the in-
ability to agree on an Austrian treaty at Moscow
has made the ratification of these treaties inad-
visable at this time and that their provisions con-
flict with the views wliich I stated to the Joint
Session of Congress on March twelfth. I do not
share this view. These treaties are the result of
months of effort by outstanding leaders of both
parties in this Government and of other govern-
ments to work out a common peace in this impor-
tant area of the world. Nothing has occurred to
render their efforts unsound or unwise. It is more
than ever important that the Government of the
United States should appear to the world as a
strong and consistent force in international rela-
tions. Treaties which have been worked out with
the approval of so large a proportion of all the
nations convened at the Paris Conference repre-
sent the considered judgment of the international
community. Moreover, many of the most difficult
problems were resolved as the result of American
initiative. It would be a great misfortune and a
heavy blow to our country's leadership in world
affairs, should we now unilaterally withhold
approval of these treaties.
Sincerely yours,
Harry S. Truman
Honorable George C. MarshaIiL
Seeretaryi of State
Washington, D.C.
LETTER FROM UNDER SECRETARY ACHESON TO SENATOR VANDENBERG
April 15, mr.
My Dear Senator Vandenberg :
The Treaty of Peace with Italy is now pending
before the Senate Foreign Relations Committee
and, I am informed, hearings will begin shortly.
In view of recent discussions which have been
had with representatives of the Italian Govern-
ment on this subject, and the possibility of further
discussions shortly, I should like to present, for
the information of the Committee, and for the
record, a statement of the policy of the Depart-
ment of State with respect to those provisions of
the pending Treaty which affect Italian property
in the United States.
You will recall that a major point of United
States policy during the negotiations which led to
the final draft of the pending Treaty was the
elimination of clauses which might have gravely
jeopardized the financial and economic stability of
Italy. The claims advanced for reparations wei-e
tremendous, although the United States waived
the very large claim which it might have presented.
Other specific claims for replacement also promised
to increase the potential burden on the Italian
economy. The Delegation of the United States
strenuously argued that rejiarations from W&lj
should be eliminated or kept within narrow limits
because of the obvious lack of capacity of Italy tp
pay. Since the United States was concerned with
getting the Italian economy on its feet, it was
June 7, J 947
1075
THE RECORD OF THE WCBK
feared that reparations payments might become
in fact a burden upon countries which provided
assistance to Italy. The ultimate reparation
formula is designed to minimize this risk.
In the course of these discussions, it was alleged
that the United States was in fact demanding a
type of concealed reparations through the opera-
tion of the provisions in the Treaty which dealt
with Italian assets in foreign countries. In reply,
the United States Delegation stated as a point of
United States policy that, far from benefiting
from the fact that there were substantial Italian
assets in the United States, the United States
would, despite the provisions of what became
Article 79, substantially return such Italian prop-
erty to Italy. This declaration made it possible
for the American position against heavy repara-
tions and other burdensome clauses to be effective,
and resulted in keeping the reparations allowed
within fairly reasonable limits.
As you know, the United States has already
taken substantial measures beneficial to the econ-
omy of Italy, and has a deep interest in preserva-
tion of the stability of that economy. Substantial
sums, for example, have been made available to
Italy as advances against the troop pay and non-
troop pay account. These steps, and others like
them, have been taken with a view toward pre-
serving sufficient stability in Italy so that the
economic as well as political rehabilitation of that
country might be facilitated.
Under these circumstances, the Department feels
that United States policy is firmly directed toward
the release by this Government of Italian property
controlled by it, whether blocked or vested. It is,
therefore, comtemplated that arrangements will
be made for the unblocking and return of such
property. Adequate safeguards will, of course,
be obtained in any agreement on this subject for
the protection of any interests of United States
nationals which may have arisen during the period
of United States custody of this property. More-
over, it is proposed to ask the Italian Government,
as a condition of such return, to establish a fund
which can be used for certain American claims,
particularly those arising out of personal injuries
to civilians and to military personnel who may
have suffered maltreatment in prisoner-of-war
camps, etc.
This program as outlined above was adopted in
the United States Delegation during the negotia-
tions on the Italian Peace Treaty and was con-
templated as the policy to be adopted by the United
States in connection with Article 79 of the pending
Treaty of Peace with Italy.
I feel that the Committee may wish to have this
statement in the record in connection with its con-
sideration of the pending Treaty.
Sincerely yours,
Dean Acheson
Acting Seoretai'y
Summaries of Texts of Peace Treaties With Italy,
Bulgaria, Roumania, and Hungary'
SUMMARY'OF TREATY OF PEACE WITH ITALY
The Preamble gives a brief historical review of
Italy's entry into the war, its surrender, and its
co-belligerency against Germany as well as ex-
pressing the willingness of the Allied and Associ-
ated Powers to support its application to become
a member of the United Nations and to conclude
the'i)resent Treaty.
' S. Exec. F, G, H, and I, SOth Cong., 1st sess. For the
President's Letter of Transmittal and for the Report of the
Secretary of State, see Bulletin of Mar. 23, 1947, p. 541.
1076
Part i — Territorial Clauses
Section I — Frontiers — Articles 1-5 establish
Italy's frontiers, describing the four minor recti-
fications in the Franco-Italian line and the new
lines of the Yugoslav-Italian and Free Territory
of Trieste-Italian fi-ontiers as shown on the maps
in Annex I, and create boundary commissions for
the delimitation of the latter.
Section II — France — Special Clauses — ^Articles
6-9 provide for the return of archives to France,
Department of State Bulletin
the establishment of a special railway link and the
guarantee to insure Italy electric and water supply
from the ceded area of Tenda and Briga, further
details of which are given in Annex III.
Section III — Austria — Special Clauses — Article
10 takes note of the Austro-Italian agreement
regulating autonomy of South Tyrol, the text of
which is given in Annex IV.
Section IV — Yugoslavia — Special Clauses — Ar-
ticles 11-13 provide for cession to Yugoslavia of
Zara and the Dalmatian Islands, delivery of cul-
tural property and guarantee of water supply for
Gorizia in accordance with detailed provisions of
Annex V.
Section V — Greece — Special Glauses — Article
14 provides for cession of the Dodecanese Islands
to Greece, their demilitarization and the with-
drawal of troops.
Part II — Political Clauses
Section I — General Clauses — Articles 15-18 con-
tain {a) the assurance of human rights and funda-
mental freedoms, (b) the guarantees of non-
persecution of Allied supporters and abolition of
Fascist organizations, and (c) the recognition of
the Peace settlements.
Section II — Nationality, Civil and Political
Rights — Articles 19-20 grant right of option to
persons in territories ceded by Italy and to Yugo-
slav residents in Italy and assure their human
rights and freedoms.
Section III — Trieste — ^Articles 21-22 set up the
Free Territory of Trieste with its integrity and
independence to be assured by the Security Coun-
cil and describe its frontiers with Yugoslavia.
Annexes VI, VII, VIII, IX, and X refer to this
Section. Annex VI contains the statute or charter
of the Free Territoi-y to be incorporated in its
constitution. The Statute provides for the terri-
tory's demilitarization, citizenship of its in-
habitants, the democratic organization of its
government with legislative authority vested in
a popular Assembly and executive power in a
Council of Government with special powers
conferred upon the Governor appointed by the
Security Council, enabling him to protect the
integrity and independence of the Territory and
human rights of the inhabitants. The statute
likewise insures the economic independence of
the Territory, makes provision for the operations
of its railways and establishes a customs free
THE RCCORO OF THB WEEK
port with fi-eedom of railway transport to and
from the Territory.
Anfiex VII sets up the rules for the provi-
sional regime until elections can be held in the
Free Territory and until the appi-oval of the
Security Council can bring the statute into
force. During this period the Governor, assisted
by a provisional Council of Government ap-
pointed by him, has greater powers, and the
responsibility for holding free elections. Allied
forces now in occupation are to be limited to
5,000 each for the United Kingdom, the United
States and Yugoslavia and are placed at the
disposal of the Governor who shall determine
after 90 days whether conditions of internal
order require their services for a fui'ther period.
Annex VIII sets forth the rules for the opera-
tion, under a Director appointed by the Gover-
nor, of the Free Port available for use on equal
tenns by all international commei'ce, provides
for freedom of transit of goods transported by
railway and precludes the establishment of any
special zones within the Port but guarantees
berthing facilities to Italy and Yugoslavia. A
special international commission of an advisory
character composed of representatives of
France, the United Kingdom, the United States,
the Union of Soviet Socialist Kepublics, Yugo-
slavia, Italy, Czechoslovakia, Poland, Switzer-
land, Austria and Hungary is created to
investigate all matters relating to the operation
and administration of the Free Port and to
make recommendations thereon.
Annex IX gives technical guarantees for the
Free Territory to insure water and electric
supply from Italy and Yugoslavia and grants
facilities for local frontier trade.
Annsx X — Economic and Fi/tiancial Provi-
sions— provides for an orderly transfer of Ital-
ian property to the free Territory, an adjust-
ment with respect to the Italian public debt, the
continuance and reassignment of insurance obli-
gations, and the return of United Nations prop-
erty, and contains provisions for such matters
as projDerty rights including right of removal,
restitution and the disposition of local govern-
ment property and records.
Section IV — Italian Colonies — Article 23 pro-
vides for renunciation of Italian sovereignty over
its Colonial possessions and their final disposal
June 7, 1947
1077
THE RECORD OF THE Wt£K
under the terms of Annex XI by the United States,
the United Kingdom, the Union of Soviet Socialist
Republics and France in the light of the wishes
and welfare of the inhabitants and the interests of
peace and security. Failing agreement within one
year, matter is to be referred to the UN Assembly
for final solution.
Section V — Special Interests of China — ^Articles
24r-26 liquidate former Italian leases and special
rights in China.
Section VI — Albania — Articles 27-32 provide
for the final liquidation of the special position,
rights and claims of Italy in Albania and for the
restoration of property.
Section VII — Ethiopia — Articles 33-38 likewise
provide for final liquidation of the special position,
rights and claims of Italy in Ethiopia and for the
restoration of property.
Section VIII — International Agreements — ^Ar-
ticles 39-43 eliminate any special position for
Italy as regards mandate system, Congo Basin
treaties, Eed Sea Islands and the Statute of
Tangier and provide for the recognition by Italy
of the liquidation of the League of Nations and
other similar bodies.
Section IX — Bi-Lateral Treaties — Article 44
provides for the revival of pre-war treaties notified
to Italy by the Allied and Associated Power
concerned.
Part III — War Criminals
Article 45 insures that Italy will take necessary
steps looking to the surrender of war criminals and
persons accused of treason but gives the Ambas-
sadors at Rome of the great Powers control of the
interpretation of this clause.
Part IV— Naval, Military and Air Clauses
Section I — Duration of Application — Article 46
provides that the limitations imposed upon the
Italian armed forces remain in effect until modified
by agreement either with the Allied and Asso-
ciated Powers or with the Security Council.
Section II — General Limitations — Articles 47-
55 provide for demilitarization of the Franco-
Italian frontier, the Italian-Yugoslav frontier,
Sardinia, Sicily, and the Mediterranean Islands, as
well as for prohibition upon atomic weapons,
guided missiles, long-range guns and the limita-
tion on the number of tanks and war material in
excess of the amount required for forces limited
1078
by the treaty, as well as a prohibition upon service
in the armed forces of a former Fascist militia and
Republican Army member.
Section III — Limitation of tlie Italian Navy —
Articles 56-60 establish limitations upon the
Italian Navy in accordance with the schedule con-
tained in Annex 12-A providing for a small but
balanced fleet. The remaining vessels of the Ital-
ian Navy are to be placed at the disposal of the
four Powers in good condition and provision is
made for disposal of submarines, non-operational
naval vessels, as well as for prohibition upon the
construction of battleships, air-craft carriers, sub-
marines, motor torpedo boats and assault craft and
upon replacement construction in excess of the ton-
nage limit of 67,500 tons. Personnel of the Italian
Navy is established at 25,000 officers and men.
Naval training is restricted to the above personnel.
Section IV — Limitation of the Army — Articles
61-63 set the limits for the Italian Army at 185,000
and for the Carabinieri at 65,000 and prohibit
military training for other persons.
Section V — Limitation of the Air Force — Arti-
cles 64-66 limit the Italian Air Force to 200 fighter
and 150 transport and other aircraft and to a per-
sonnel strength of 25,000 and further prohibit
bomber aircraft. Military air training is re-
stricted to the above personnel.
Section VI — Disposal of War Material — Article
67 lays down the rules for disposal of surplus war
material.
Section VII — Prevention of German and Jap-
anese Rearmament — Articles 68-70 provide for
Italian cooperation in prevention of Axis rearma-
ment.
Section VIII — Prisoners of War — Ai'ticle 71 re-
quires prompt repatriation of Italian prisoners
of war.
Section IX — Mine Clearance — Under Article 72,
Italy is invited to join the Mine Clearance Or-
ganization and will place its minesweeper forces at
the disposal of this body.
Annex XIII contains definitions of terms used
in this Part.
Part V— Withdrawal of Allied Forces
Article 73 calls for withdrawal from Italy of
all armed forces of the Allied and Associated
Powers within 90 days and the return of goods
in tlieir possession.
Department of State Bulletin
Part VI — Claims Arising Out of tlie War
Section I — Reparations — Article 74 sets the fig-
ures for Italian reparation at $100,000,000 for the
Soviet Union, $5,000,000 for Albania, $25,000,000
for Ethiopia, $105,000,000 for Greece and $125,-
000.000 to Yugoslavia (total $260,000,000) to be
paid over a period of 7 years, which does not, how-
ever, start for 2 years except by mutual agreement.
Reparation will be made not in cash but from sur-
plus war factory equipment, from Italian assets
in Roumania, Bulgaria and Hungary, from capital
goods and assets, and from current production.
Deliveries are to be scheduled in such a way as to
avoid interference with Italy's economic recon-
struction and placing a burden on other Allied or
Associated Powers. States receiving reparation
from current production must provide raw ma-
terials required. Specific deliveries are to be
determined by mutual agreement, and machinery
is established for supervision of reparation. Per-
sons whose property is taken for reparation pur-
poses will be compensated by Italy.
Section II — Restitution by Italy — Article 75
provides for the return in good order of identi-
fiable property removed from territory of any of
the United Nations, including monetary gold, and
for method of presenting claims.
Section III — Renunciation of Claims hy Italy —
Articles 76-77 make provision for (a) renmici-
ation by Italy of any claims upon the Allied and
Associated Powers for loss or damage from war
operations including Prize Court decrees and
exercise of belligerent rights, (b) assumption of
responsibility for Allied Military currency, (c)
eligibility for restitution of Italian property in
Germany, and (d) waiver of all Italian claims
against Germany.
Part VII — Property, Rights and Interests
Section I — United Nations Property in Italy. —
Article 78 provides for restoration of all legal
rights and interests in Italy of the United Nations
and their nationals and for restoration of their
property in good order. In cases where the prop-
erty cannot be restored or is damaged, the owner
shall receive compensation in Italian lire to the
equivalent to % of the loss. This same respon-
sibility extends to United Nations property in the
ceded territories and the Free Territory of Trieste.
Section II — Italian Property in the Territory of
the Allied and Associated Powers. — Article 79
THE RECORD OF THE WEEK
authorizes the Allied and Associated Powers to
take over property of Italy and its nationals in
their territories and to apply the property or its
proceeds to settlement of claims against Italy not
settled by other clauses. The following are ex-
empted from this provision : (a) consular and dip-
lomatic property, (b) property used for religious
or charitable purposes, (c) property of persons
permitted to reside in the country, where the prop-
erty is located, or elsewhere in United Nations
territory, (d) property rights arising since re-
sumption of trade or from transactions after the
Armistice, (e) literary and artistic property rights,
and (/) property in ceded territories not taken as
reparation.
Section III — Declaration in Respect of Claims. —
By Article 80 the Allied and Associated Powers
declare that their claims against Italy have been
settled by other clauses of the Treaty.
Section IV — Debts. — Article 81 makes provision
for continuance of pre-war obligations.
Part Vill — General Economic Relations
Article 82 requires that for a period of 18 months
Italy shall, on a reciprocal basis, (a) grant most
favored nation treatment to United Nations and
their nationals, (b) make no arbitrary discrimi-
nation against their goods, (c) grant no exclusive
or discriminatory rights in respect to commercial
aviation and (d) afford equality of opportunity
in obtaining international commercial aviation
rights and extend the right to fly over Italian
territory.
Part IX — Settlement of Disputes
Article 83 establishes provision for Conciliation
Commissions to settle disputes in connection with
restitution and restoration of United Nations
property.
Part X — Miscellaneous Economic Provisions
Articles 84 and 85 relate to the scope of appli-
cation of the economic articles and the legal form
of the economic annexes.
Part XI — Final Clauses
Articles 86 and 87 authorize the Ambassadors
in Rome of France, the United Kingdom, the
United States and the Soviet Union acting in con-
cert to represent all the Allied Powers in mattere
relating to the interpretation of the Treaty for a
period of 18 months, and, with no time limit, to
June 1, 1947
107»
THE RECORD OF THE WESK
settle disputes concerning interpretation or exe-
cution of the Treaty. If this method fails, provi-
sion is made for special commissions for this
purpose.
Articles 88-90 provide for accession by other
powers, restrict the rights and benefits under the
Treaty to those Powers which ratify, and lay down
the procedure for signature and the coming into
force of the Treaty upon ratification by the Soviet
Union, the United Kingdom, the United States
and France.
Economic Annexes — Not Specifically Referred to in
Any Article of the Treaty
Annex XIV — Economic and Financial Provi-
sions relating to Ceded Territories
These clauses provide for the orderly transfer of
Italian property in these areas, and adjustment
with respect to the Italian public debt, the con-
tinuance and reassignment of insurance obliga-
tions and the return of United Nations property
and contains provisions for such matters as prop-
erty rights including right of removal, restitution
and the disposition of local government property
and records.
Annex XV — Special Provisions relating to Cer-
tain Kinds of Property
A. — Industrial, Literary and Artistic Property
clauses establish Allied rights and interests in this
form of property.
B. — Insurance clauses relate to resumption of
insurance business.
Annex XVI — Contracts, Periods of Prescrip-
tion and Negotiable Instruments
The special clauses relating to the foregoing do
not apply as between the United States and Italy.
Annex XVIII — Prise Courts and Judgments
A. — Prize Courts — This Section provides for a
review of all Italian Prize Court decisions in cases
involving ownership rights.
B. — Judgments — This section likewise provides
for a review of court judgments after the outbreak
of the war when a United Nations national in-
volved was unable to make adequate presentation
of his case.
SUMMARY OF TREATY OF PEACE WITH BULGARIA
The Treaty of Peace with Bulgaria in general
contains the same provisions as the Treaty with
Roumania. The differences are noted as follows :
Article 1 establishes the frontiers as of January
1, 1941, which include Southern Dobruja trans-
ferred from Roumania in August 1940.
No specific clauses relating to non-discrimination
against the racial minorities or return of property
were deemed necessary in the light of Bulgaria's
record of non-persecution.
Article 9 sets the limits for Bulgarian Armed
Forces at 55,000 for the Army, 1,800 for anti-air-
craft artillery, 3,500 for the Navy, and 5,200 for
the Air Force with a 7,250 tons limit for the Navy
and 90 aircraft for the Air Force.
Article 12 prohibits the construction on the north
side of the Greco-Bulgarian frontier of permanent
fortifications and military installations capable
of being employed for firing into Greek territory.
Article 20 calls for complete withdrawal of all
Allied forces and return of goods in their posses-
sion, no exceptions being necessary in this case.
Article 21 — Reparation in the amount of $45,-
000,000 to Greece and $25,000,000 to Yugoslavia is
provided, payable in kind from products of manu-
facturing and extractive industries and agricul-
ture over a period of eight years, deliveries to be
regulated by agreement with Greece and Yugo-
slavia. Valuation is to be made on basis of 1938
international market prices with a percentage
increase.
Article 30 provides that Bulgaria should facili-
tate I'ailway transit traffic through its territory
and negotiate the necessary agreement for this
purpose.
Annex VI omits the clauses relating to Prize
Courts as inapplicable in this instance.
1080
Department of State Bulletin
SUMMARY OF TREATY OF PEACE WITH ROUMANIA
The Preamhle is similar to the preamble of the
Italian Treaty, recites the events leading up to
the Armistice of September 12, 1944, and expresses
the willingness of the Allied and Associated Pow-
ers to conclude the present Treaty and to support
Roumania's application to become a member of
the United Nations.
Part I — Frontiers
Articles 1-2 establish Eoumania's frontiers as
those existing on January 1, 1941, shown on the
map contained in Annex I, which confinn the trans-
fer of Southern Dobruja to Bulgaria, recognize
Soviet sovereignty over Bessarabia and Northern
Bucovina, and restore Transylvania to Roumania.
Part II — Political Clauses
Section I — Articles 3-6 provide (a) the assur-
ances of human rights and fundamental freedoms,
{h) guarantees of non-discrimination on account
of race, sex, language or religion, (c) non-persecu-
tion of racial minorities and United Nations sym-
pathizers, {d) abolition of Fascist organizations,
and (e) surrender of war criminals and traitors.
Section II — Article 7-10 contain clauses similar
to those in the Italian treaty which provide for
the recognition of the peace settlements and of
the liquidation of the League of Nations and for
the renewal of pre-war Treaties. Provision is
also made for the termination of the state of war
with Hungary,
Part ill— Military, Naval and Air Clauses
Section I — Articles 11-19 {a) establish person-
nel limitations of 120,000 for the Army, 5,000 for
anti-aircraft artillery, 5,000 for the Navy, and
8,000 for the Air Force with a 15,000 tons limit
for the Navy and 150 aircraft for the Air Force
and limit training to the above personnel, (b)
prohibit atomic weapons, guided missiles, sea
mines, submarines, M.T.B.s and assault craft, (c)
provide for disposal of surplus war material, {d)
assure Roumanian cooperation for prevention of
German re-armament, and (e) provide that the
treaty restrictions remain in force until modified
by agreement. Annexes II and III contain the
standard definitions of the terms used in this Part.
Section II — Article 20 requires prompt repatri-
ation of Roumanian prisoners of war.
Part IV— Withdrawal of Allied Forces
Article 21 calls for the withdrawal within 90
days of all Allied forces and the return of goods
in their possession, subject to the right of the
Soviet Union to maintain troops on the line of
communication with its occupation forces in
Austria.
Part V — Reparation and Restitution
Article 22 provides for reparation to the Soviet
Union in the amount of $300,000,000 payable in
commodities over a period of eight years.
Article 23 provides for the restitution by Rou-
mania of identifiable property removed from
United Nations territory and for the method of
presenting claims.
Part VI — Economic Clauses
Articles 2Ji.-35 contain the standard provisions in
respect of {a) United Nations property in Rou-
mania with compensation in local currency for loss
or damage equivalent to % of the value of the prop-
erty, including a special provision for ships, not
needed in the other treaties, (h) Roumanian prop-
erty in the territory of the Allied and Associated
Powers with the same exceptions from sequestra-
tion excluding, however, the inapplicable clause
relating to ceded territories, (c) Renunciations of
Claims including restitution of property in Ger-
many, {d) Debts, (e) General Economic Relations
including commercial aviation clauses, (/) Settle-
ment of Economic Disputes, and {g) Miscellaneous
Economic Clauses. In addition, the Roumanian
Treaty calls for restoration of property and rights
of minorities discriminated against in Roumania
with fair compensation if restoration impossible
and for transfer to appropriate organizations if
property unclaimed or heirless. The right of the
Soviet Union to German assets in Roumania is
specifically recognized. Article 33 relates to settle-
ment by conciliation and arbitration of disputes
arising in connection with prices paid by the Rou-
manian Government for goods delivered for repa-
rations and acquired from an Allied national.
iune 1, 1947
1081
THE RECORD OF THE WEEK
Part VII— Danube
Article 36 provides for freedom of navigation on
the Danube (the declaration relating to the Con-
ference to be held on this subject having been ap-
proved by the Council of Foreign Ministers and
published on December 6, 1946) .
Part VIII— Final Clauses
Articles 37-kO contain the provisions relating to
the interpretation of the Treaty, settlement of
disputes, accession by other States, and the coming
into force upon ratification by the United States,
the United Kingdom, and the Soviet Union.
Annexes IV, V and VI contain the standard
clauses relating to (a) Industrial, Literary and
Artistic Pi'operty, (&) Insurance, (c) Contracts,
Periods of Prescription and Negotiable Instru-
ments, (d) Prize Courts, and (e) Judgments.
SUMMARY OF TREATY OF PEACE WITH HUNGARY
Like the Bulgarian Treaty, the Treaty of Peace
with Hungary in general contains the same pro-
visions as the Treaty with Eoumania. The differ-
ences between the Roumanian and Hungarian
Treaties are, however, noted as follows :
Article 1 re-establishes the frontiers of Hungary
with Austria and with Yugoslavia as those which
existed on January 1, 1938. It liquidates the
Vienna Award of 1940 and restores Transylvania
to Roumania. It establishes a frontier with the
Soviet Union in recognition of the transfer of the
sub-Carpathian Ukraine from Czechoslovakia to
the Soviet Union. It liquidates the Vienna Award
of 1938 whereby Hungary received certain terri-
tory from Czechoslovakia and restores this terri-
tory, together with an increased area across the
Danube from Bratislava, providing guarantees of
human and civic rights for the population of the
ceded area.
Article 5 provides that negotiations shall take
place between Czechoslovakia and Hungary to
settle the problem of the Magyars residing in
Czechoslovakia, and that, if no agreement is
reached in 6 months, Czechoslovakia shall be en-
titled to ask the Council of Foreign Ministers to
effect a final solution.
Article 11 requires Hungary to deliver certain
categories of cultural property and records to
Yugoslavia and Czechoslovakia.
Article 12 sets the limits for personnel of the
Hungarian Army, including frontier troops, anti-
aircraft and river flotilla personnel at 65,000 and
the personnel of the air force at 5,000 with 90
aircraft.
Article 22 which calls for the withdrawal of all
Allied forces within 90 days also contains the
1082
reservation in respect of the right of the Soviet
Union to maintain troops on line of communication
with its occupation forces in Austria.
Article 23 provides for reparation to the Soviet
Union in the amount of $200,000,000 and $100,-
000,000 to Czechoslovakia and Yugoslavia payable
in commodities over a period of 8 years.
Article 25 calls for the annulment of the legal
consequences of the Vienna Award entailed in the
return of territory to Czechoslovakia.
Article 26 contains the standard clauses relating
to return of property to the United Nations and
their nationals and to compensation in the event
of loss or damage and extends these provisions to
cover such property in Northern Transylvania
during period when it was subject to Hungarian
authority.
Article 3^ provides that Hungary should facili-
tate railway transit traffic through its territory and
negotiate the necessary agreements for this
purpose.
Annex VI omits the clauses relating to Prize
Courts as inapplicable.
!
New Salesroom Opened
Publications of the Department of State and
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are now being sold in Room 120 at 1778 Pennsylvania
Avenue NW., one of the buildings occupied by the
Department of State. The salesroom was opened as
a convenience to visitors to the Department and to
persons In Washington. It is operated by an agent
of the Superintendent of Documents. Mail orders for
the Department's publications should be addressed as
in the past to the Superintendent of Documents, Gov-
ernment Printing Office, \^'asliington 25, D.C.
Department of State Bulletin
Work of Four Power Commission Delayed
STATEMENT BY JOSEPH M. DODGE >
More than a week after our first meeting and
nearly four weeks after the end of the Moscow
Conference, the Committee of Experts established
by the Council of Foreign Ministers "to give spe-
cial consideration to Article 35 and the appro-
priate parts of Article 42 and to the establishment
of concrete facts" is still not at work. At the first
meeting of this Commission the United States
Delegate proposed general instructions to the Com-
mittee of Experts under the terms of which it was
directed to meet the following day and begin its
work. Today the Austrian Treaty Commission
begins its seventh meeting by continuing to debate
the meaning of the term concrete facts and the
use to be made of them.
I believe this delay is due to the insistence of
the Soviet Delegate, Mr. K. V. Novikov, that the
Austrian Treaty Commission limit the work of its
Fact -Finding Committee by restricting the opera-
tion of the Committee to the finding of certain
facts regarding oil in which the Soviet Delegation
is interested. The Soviet Delegation has also told
the Commission that it is still studying what ad-
ditional restrictions should be imposed on the
Committee with respect to other kinds of German
assets. Meanwhile, it insists on renewing a dis-
cussion of definitions and formulae which has
already continued for nearly two years.
The United States Delegation believes that the
purpose of the Foreign Ministers in creating the
Committee of Experts was to begin a new ap-
proach to a hard problem based on a factual ex-
amination of the claims that particular assets were
German. The United States Delegate is willing to
discuss oil in the Committee of Experts only when
there is Four Power agreement to discuss other
equally important problems. To do otherwise
would set the Committee to work on a problem in
which one delegation is particularly interested
and on terms selected by it, thus giving that dele-
gation a veto over the other work of the Com-
mittee. Unquestionably, oil is an important
problem and the United States Delegation is will-
ing to have the Committee discuss oil without de-
lay provided it is agreed that similar work on
other problems may also go forward concurrently.
The United States Delegation has made every
effort to meet the Soviet viewpoint and in doing so
has even specified the nature of the facts to be ex-
amined by the Committee with respect to German
assets. Nevertheless, Mr. Novikov is still unpre-
pared to have the Committee of Experts discuss
any problem but oil and insists that a discussion of
articles 35 and 42 is required before he can for-
mulate his position on other questions in the same
manner as he has already formulated his position
on oil. The American Delegate regrets this unpre-
paredness and in a further effort to assist Mr. Nov-
ikov will discuss articles 35 and 42 in so far as
they bear on the work of the Committee of Experts.
In doing so, the United States Delegate recalls
fruitless and prolonged earlier discussion of the
same subject without the concrete facts the Com-
mittee of Experts was established to obtain. Nev-
ertheless, the United States Delegate sincerely
hopes that such a discussion will not cause further
delays or give rise to new complications but will
be speedily ended so that the Committee of Ex-
perts can be set to work to establish the concrete
facts which the Council of Foreign Ministers
called for "without delay".
' Made on May 21 at the seventh meeting of the Council
of Foreign Ministers Commission To Examine Disagreed
Questions of the Austrian Treaty, and released to the
press in Vienna on the same date and in Washington on
May 22. Mr. Dodge is U.S. Representative on the Com-
mission.
June ?, 7947
1083
Executive Position on Wool Import Duties Proposed by Congress
LETTER FROM UNDER SECRETARY CLAYTON TO REPRESENTATIVE COOLEY
[Released to the press May 22]
Text of letter from William L. Clayton, Under
Secretary of State for Economic Affairs, to Harold
D. Cooley, which was released on May 22 on the
floor of the House of Representatives
May 22, 1H7.
Mt Dear Mr. Coolet : I take pleasure in this
opportunity to answer your inquiry of May 19 con-
cerning the views of the Department of State with
respect to proposed wool legislation. I refer to S.
814, a bill to provide support for wool and for
other purposes, as passed by the Senate and re-
ported favorably with amendments by the Com-
mittee on Agriculture of the House of Kepresent-
atives.
The bill in the form in which it was reported was
not under consideration by the Committee on Ag-
riculture when representatives of the Department
testified before that body. We have not had a
formal opportunity to present our views on the
legislation, as it has been reported.
S. 814, as reported with amendments, is intended
to achieve three main objectives. First, it directs
the Commodity Credit Corporation to support a
price to wool producers at the 1946 level until De-
cember 31, 1948. This provision is consistent with
the proposed long-run program for wool submit-
ted by the President in his memorandum to Sen-
ator O'Mahoney March 11, 1946. The Depart-
ment of State believes this section of the bill accom-
plishes the essentials of the Administration's plan
which recognizes that wool should receive support
comparable to that granted to other agricultural
commodities.
Secondly, S. 814 authorizes the Commodity
Credit Corporation to sell its stocks of wool with-
out regard to restrictions imposed upon it by law.
This is necessary because Commodity Credit Cor-
poration must be able to sell wool at the market if
it is to dispose of its stocks. This is also consistent
with the President's program in the opinion of
the Department of State.
1084
Thirdly, an amendment to Section 22 of the Ag-
ricultural Adjustment Act has been added to pro-
vide for the imposition of fees on any imported
article by the Secretary of Agriculture if he finds
that imports of said article interfere materially,
with the wool-support program. The accompany-
ing report shows that the purpose of the fee is to
increase the price of imported wool to equal the
support level for domestic wool. The Department
of State advises against the adoption of this
amendment. I understand from the Congressional
Record that it is proposed to modify this import-
fee amendment by directing the President, rather
than the Secretary of Agriculture, to impose the
fees after investigation by the Tariff Commission.
This does not remove the fundamental objections
to the provision.
If import fees, which are actually increases in
the tariff, are levied, they would be harmful to the
interests of the United States in the following
ways:
First, the cost to the public in increased prices
for woolen manufactures would far exceed the
increased returns to the wool growers. The Presi-
dent's memorandum, previously referred to,
pointed out that "it will be more desirable f I'om a
national point of view and more dependable for
growers to have the Government absorb losses on
sales of domestic wool rather than to raise addi-
tional trade barriers against imports." The cost
of supporting returns to wool growers must be
borne by the public of the United States regardless
of the form that support takes. The tariff itself
is a subsidy which is collected, like a sales tax,
from consumers through raised prices and con-
veyed to producers by the same means. To talk
about avoiding cost to the Treasury is to evade the
issue, for the public, and not the Treasury, pays
the bill.
The fee will raise the cost of the raw material.
This in turn cumulatively increases the cost of
doing business at every stage of the production
Department of State Bulletin
process. Therefore, the final cost to the public
as a consumer is far greater under the fee than it
would be if raw-material prices were not increased
by fees and the public, as a taxpayer, paid the
subsidy.
In the second place, new import fees on wool
would injure the interests of the United States
through their effect on our foreign relations. We
all recognize the responsibility of this country for
leadership, both political and economic, in the
postwar world. The United States has taken the
initiative in promoting the adoption of principles
of economic conduct among nations which would
require each country to consider the impact of
the economic measures it undertakes on world
economic pi'Ogress. If the proposed amendment
providing new import barriers is adopted, the
moral leadership of the United States in world
affairs will suffer a serious blow.
If at this time, when we are actually negotiating
with other countries at Geneva for the lowering of
trade barriers, we raise new barriers as this bill
proposed, we stand convicted of insincerity.
Wool is a critical item in our current negotia-
tions for an International Trade Organization for
the expansion of world trade and employment.
Although wool raising accounts for less than one-
half of one percent of our agricultural income, it
is very important in world trade. It is the most
important import into the United States from
Australia, New Zealand and South Africa. It is
by far their most important source of the dollars
they need so badly to buy our exports. If we
impose new barriers to this trade, we cannot ex-
pect them to cooperate wholeheartedly in creating
the type of postwar world we want to have. With-
out such cooperation, the other British Common-
wealth nations would have difficulty joining with
us in a mutually advantageous program. Other
nations would question the sincerity of our pro-
testations that we do not intend to retreat to
economic isolationism.
Let me summarize by saying the Department
approves support to wool growers and authority
for Commodity Credit Corporation to sell its wool
below parity. The Department therefore hopes
that the Congress will adopt the proposed bill
as passed by the Senate without amendment.
Sincerely yours,
W. L. Clayton
THB RECORD Of THE WEEK
Policy on Repatriation of
Displaced Persons
STATEMENT BY THE SECRETARY OF STATE'
[Released to the press May 20]
It is the fixed policy of the United States Gov-
ernment to oppose any forced repatriation of
displaced persons. It is also the policy of our
Govermnent to facilitate the repatriation of those
displaced persons who desire of themselves to
return to their homelands. This is in conformity
with the principles approved by the General As-
sembly of the United Nations.
The current repatriation program sponsored
jointly by UNREA and the armies of occupation
was approved by the United States Government
prior to its initiation, based on the voluntary de-
sire of the individual to return to his homeland.
Any coercion of displaced persons under our juris-
diction would not be tolerated. No instances of
coercion have been brought to our attention al-
though one half of the program has already been
completed.
It is my opinion that the solution for tliis
tragic situation demands that the democratic coun-
tries of the world join in offering sanctuary to
these displaced individuals. Further, it is my
opinion that the United States should take the
lead in this matter.
Wheat Agreement — Continued from page 1065
"Wheat", except in Article VI, includes wheat-
flour. Seventy-two tons of wheat-flour shall
be deemed to be equivalent to one hundred
tons of wheat in all calculations relating to
guaranteed quantities.
"Wheat year" means any period of twelve calen-
dar months beginning 1st August.
' Made on May 20 to a delegation of representatives of
tlie Federal Council of Clmrclies of Christ in America, the
National Catholic Welfare Conference, the American
Friends Service Committee, the Hebrew Immigrant Aid
Society, the American Federation of Labor, the Congress
of Industrial Organizations, the Refugees Defense Com-
mittee, and the International Rescue and Relief Com-
mittee.
June 7, 7947
1085
^(yrvCen^
!;£j;:i:irS&:i^:^s^l./fl
Economic Affairs Pase
International Wheat Conference. Article by
Edward G. Cale 1053
Text of Proposed International Wheat Agree-
ment 1057
Executive Position on Wool Import Duties
Proposed by Congress. Letter From
Under Secretary Clayton to Represen-
tative Cooley 1084
General Policy
Passage of Bill Authorizing Assistance to
Greece and Turkey:
Statement by the President 1070
Regulations for Carrying Out the Provi-
sions of the Act Entitled "An Act To
Provide for Assistance to Greece and
Turkey" 1070
Public Law 75 1071
Correspondence Relating to the Greco-
Turkish Aid Bill:
Letter From the Secretary of State to
Representative Eaton 1073
Letter From Ambassador Austin to Repre-
sentative Eaton 1074
Pohcy on Repatriation of Displaced Persons.
Statement by the Secretary of State . . 1085
The Council of Foreign Ministers
Work of Four Power Commission Delayed.
Statement by Joseph M. Dodge .... 1083
Treaty Information
Approval Urged for Peace Treaties With
Italy, Roumania, Bulgaria, and Hun-
gary:
Treaty Information — Continuea Page
Letter From the President to the Secre-
tary of State 1075
Letter From Under Secretary Acheson to
Senator Vandenberg 1075
Summaries of Texts of Peace Treaties With
Italy, Bulgaria, Roumania, and Hun-
gary:
Summary of Treaty of Peace With Italy . 1076
Summary of Treaty of Peace With Bul-
garia 1080
Summary of Treaty of Peace With Rou-
mania 1081
Summary of Treaty of Peace With Hun-
gary 1082
Occupation Matters
The Sources of Japanese Imports 1067
The Destination of Japanese Exports . . . 1068
Division of Reparation Shares 1069
Tile United Nations
Current U.N. Documents: A Bibliography . 1074
International Information and
Cultural Affairs
U.S. Delegation to Health Congress of Royal
Sanitary Institute 1069
Calendar of International Meetings . . 1066
The Congress
An Act To Provide for Assistance to Greece
and Turkey 1071
The Department
New Salesroom Opened 1082
mm/trmtdo^
Edward G. Cale, author of the article on the International Wheat
Conference, is Associate Chief of the International Resources Division,
Office of International Trade Policy, Department of State.
V. S. GOVERNMENT PR1NTIN6 OFFICE: 1947
^Ae/ U)e^a>^{^teni/ ^ tnaie^
PROPOSED INTER-AMERICAN MILITARY CO-
OPERATION:
The President's Message to the Congress 1121
Draft of a Bill 1122
PROPOSED CONTINUATION OF INSTITUTE OF
INTER-AMERICAN AFFAIRS 1099
THE FIRST SESSION OF THE TRUSTEESHIP
COUNCIL • Article fey AlSred E. Wellona and William
L. Yeomans 1089
For complete contents see bach cover
Vol. XVI, No. 414
June 8, 1947
•"■♦TM 0» '
•1. S. aWiHn.U,,^^.., o, y
JUL 19 ia47
^yAe
uuL ly iy47 1 "11
Qleficvy^e^ ^/ ^lale 1311116X111
Vol. XVI, No. 414 • Publication 2837
June 8, 1947
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a iceekly publication compiled and
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THE FIRST SESSION OF THE TRUSTEESHIP COUNCIL
hy Alfred E. Wellons
and
WUliajm L. Teomans
The last of the major organs of the United Nations to come
into being was the Trusteeship Council. This body, provided
for in the Charter of the United Nations to supervise the
administration of territoi^s placed under trusteeship, held
its first session from March £6 to April 28, 19^7. The prob-
lems with which it dealt and the decisions with respect to them
are set forth in this article.
Organization of the Trusteeship Council
The convening of the first session of the Trustee-
ship Council on March 26, 1947, at Lake Success,
was a milestone in the life of the United Nations.
The Council was the last principal organ of the
United Nations to come into operation and thereby
the basic structui'e of the United Nations as en-
visaged in the Charter was completed. This per-
manent international body, whose membership is
composed exclusively of official representatives of
governments, assembled to deal with the problems
of supervising the administration of the non-self-
governing peoples inhabiting trust territories.
The close of the session on April 28, 1947, found
the basic oi-ganizational work of the Council
achieved with an unusual degi'ee of cooperative
good-will and without the occurrence of political
cleavages. Only once was a vote divided between
administering and non-administering members of
the Council, and that was on a small point in the
rules of procedure.
Tlie organization of the Trusteeship Council
became possible when the General Assembly ap-
proved eight trusteeship agreements for territories
in Central Africa and the Southwest Pacific in
December, 1946.^ Article 86 of the Charter pro-
vides that, in addition to the states administering
trust territories, the Tiusteeship Council should
be composed of the permanent members of the
Security Council not administering trust terri-
tories and as many other members elected for three-
year terms by the General Assembly as may be
required to make the niunber of non-adminstering
states equal to the number which administer trust
territories. Accordingly, on December 14, 1946,
the General Assembly elected IVIexico and Iraq to
the Trusteeship Council in order to balance the
number of non-administering with the number of
administering members. Thus the members of
the first session of the Council were :
Administering states
Australia
Belgium
France
New Zealand
United Kingdom
Non-iidiniuistering st/iirs
China
Iraq
Mexico
United States
Union of Soviet Socialist
Republics
Representatives
Norman J. O. Makin
Pierre Rycknians
Roger Garrejiu
Sir Carl Berendsen
Ivor Thomas
Rrprrsrntatlves
Liu Chieh
Sayid Ali Jawdat
Luis Padilla Nervo
Frauds B. Sayre ^
' See "The Inauguration of the Trusteeship System of
the United Nations", Elizabeth H. Armstrong and Wil-
liam I. Cargo, Bulletin of Mar. 23, 1947, p. 511.
' Mr. Sayre was assisted by Benjamin Gerig, deputy
representative of the United States in the Trusteeship
Council and Chief of the Division of Dependent Area Af-
fairs, Department of State. His advisers were Alfred
E. Wellons and William L. Yeonians, Division of Depend-
ent Area Affairs, Department of State.
June 8, 1947
1089
The eight trust territories which have been
placed under the supervision of the Council, and
the respective administering authorities, are as
follows :
Trust territory
Cameroons (British)
Cameroons (French)
New Guinea
Euanda-TJrundl
Tanganyika
Togoland (British)
Togoland (French)
Western Samoa
Adm inistering authority
United Kingdom
France
Australia
Belgium
United Kingdom
United Kingdom
France
New Zealand
It will be noted immediately that all of these
trust territories were fonnerly administered under
League of Nations mandate and that, in this sense,
the Trusteeship Council is the successor to the
Permanent Mandates Commission and the Coun-
cil of the League of Nations. It will likewise be
noted that certain other territories administered
under League of Nations mandate — Nauru, South-
West Africa, Palestine, and the Pacific islands
formerly administered under mandate by Japan —
have not yet been placed under the trusteeship sys-
tem. The Security Council, however, has approved
the trusteeship agreement submitted to it by tlie
United States with respect to the Pacific islands
formerly mandated to Japan.^ Only approval
by the United States in accordance with its con-
stitutional process is now required to bring this
trusteeship agreement into force. When that is
accomplished, it will be necessary for the General
Assembly to elect to the Trusteeship Council two
additional members of the United Nations which
do not administer trust territories in order to re-
tain the balance between administering and non-
administering members of the Council.
The first meeting of the first session of the Coun-
cil was opened by the Secretary-General of the
United Nations, Trygve Lie. The Soviet Union,
although a permanent member of the Trusteeship
Council by virtue of being one of the permanent
members of the Security Council, was not repre-
' See "United States Trusteeship for the Territory of
the Pacific Islands", Robert R. Robbins, Buiietin of
May 4, 1947, p. 783.
* The Provisional Rules of Procedure were formulated
by the Preparatory Commission of the United Nations in
London and approved by the General Assembly on Feb.
9, 1946, for transmission to the Trusteeship Council.
1090
sented at any of the meetings of this session of the
Council. This absence was commented upon at the
first meeting by the representative of the United
States, Mr. Sayre, who expressed the hope that "a
representative of that great country will be here
shortly" to participate in Council meetings. The
continued absence of the Soviet Union, however,
did not affect the legality of the proceedings of the
Council in as much as article 89 of the Charter pro-
vides that decisions of the Trusteeship Council
"shall be made by a majority of the members pres-
ent and voting", and both the provisional and
final rules of procedure * provide that "at any
meeting of the Council two-thirds of the members
shall constitute a quorum."
Representatives from the three specialized
agencies already brought into relation with the
United Nations — the International Labor Organ-
ization, the Food and Agriculture Organization,
and the United Nations Educational, Scientific
and Cultural Organization — were present at meet-
ings of the Council and of several of its commit-
tees. The agreements entered into between the
United Nations and these agencies pi'ovide for the
attendance of their representatives at meetings of
the Trusteeshij) Council, and the rules of procedure
allow them to participate, without vote, in the de-
liberations of the Council as indicated in their
agreements with the United Nations.
At its first and second meetings the Council
elected, by separate and secret ballots, Francis B.
Sayre as president and Sir Carl Berendsen of New
Zealand as vice president. They will continue in
office until their successors are elected at the June
1948 session of the Council. In accepting this re-
sponsible post, Mr. Sayi'e expressed his desire to
be an impartial chainnan and, in accordance with
the provisional rules, requested Mr. Gerig, deputy
representative of the United States, to present the
views of the United States in the Council during
the remainder of the session. It is possible that
this precedent, which was practiced in the Eco-
nomic and Social Council, may be followed in the
future when representatives of other members are
elected to the presidency of the Trusteeship
Council.
Rules of Procedure
The Council devoted much of its time to organ-
izational problems, in particular to the adoption
Deparfmenf of State Bulletin
of its rules of procedure.^ In addition to drawing
up rules on ordinaiy procedural matters such as
sessions, agenda, and the conduct of business, the
Council debated the concepts and principles basic
to the international trusteeship system and agreed
on rules for carrying out the functions assigned
to the Council in articles 87 and 88 of the Charter,
which are as follows :
Article 87
The General Assembly and, under its authority, the
Trusteeship Council, iu carrying out their functions, may :
a. consider reports submitted by the administering
authority ;
b. accept petitions and examine them in consultation
with the administering authority;
c. lUdvide for jjeriodic visits to the respective trust
territories at times agreed upon with the administering
authority ; and
d. tal£e these and other actions in conformity with
the terms of the trusteeship agreements.
Artwle 88
The Trusteeship Council shall formulate a question-
naire on the political, economic, social, and educational
advancement of the inhabitants of each trust territory,
anil the administering authority for each trust territory
within the competence of the General Assembly shall malie
an annual report to the General Assembly nixm the basis
of such questionnaire.
In its discussion of the rules, the Council had the
benefit of two documents: first, the Provisional
Rules of Procedure, " which had been drawn up by
the Preparatory Commission in London for
transmission to the Trusteeship Council by the
Secretary-General; and secondly, suggestions for
the revision of the Provisional Rules prepared by
the Secretariat for consideration by the Council. '
To assist it in its work, the Council appointed a
drafting committee composed of representatives of
the nine members present, to which rules were re-
ferred for drafting after the principles had been
discussed by the Coimcil.
At the suggestion of the United States, special
provisions were included regarding the applicabil-
ity to strategic areas of the rules referring to rec-
ords, petitions, and visits. These special provi-
sions were inserted in view of the fact that the
draft trusteeship agreement for the former Japa-
nese Mandated Islands provides in article 13 that
the provisions of articles 87 and 88 of the Cliaiter,
relating to petitions, visits, and reports, shall be
applicable to the trust territory, provided that the
administering authority may determine the extent
of their applicability to any area which may from
time to time be specified by it as closed for security
reasons.
The action taken with respect to implementing
the functions of the Trusteeship Council is dis-
cussed in detail in the following sections.
Visit to Western Samoa
The first visiting mission of the Trtisteeship
Council will proceed to Western Samoa in the lat-
ter part of June to investigate a petition from the
leaders and representatives of Western Samoa re-
questing that Samoa be granted self-government
under the protection of New Zealand and that the
alleged unnatural division of the islands of the
Samoan group be left in abeyance until a meeting
can be arranged between Eastern and Western
Samoa.
The visiting mission has been given specific in-
structions from the Council :
"1. to investigate the petition dated 18 Novem-
ber 1946 of the Fautua, Members of the Legisla-
tive Council, Associate Judges, Faipule and Dis-
trict Representatives of Western Samoa that
Western Samoa be granted self-govermnent.
"2. to visit Western Samoa for this purpose, to
remain in the territory for a sufficient period to
ascertain all the relevant facts and to report back
to the Trusteeship Council."
In view of the fact that this petition raises a
fundamental question and is of a very special
character, the Council discussed at considerable
length the type of mission which should be sent
to Western Samoa. Sir Carl Berendsen, the New
Zealand representative, in conunenting to the
Council upon the petition, stated tliat the New
Zealand Government would gladly welcome a
visit to the territory, and suggested that the visit
should be of sufficient duration to enable a thor-
ough study to be made of the issues involved.
He suggested that the mission should be composed
' The rules of procedure as reported to the Council by
the Drafting Committee are contained in U.N. doe.
T/AC.1/8, Apr. 22, 1947. This document was discussed
and the rules adopted with minor changes in the 22d meet-
ing of the Council.
' U.N. doc. T/1, Feb. 24, 1947.
' U. N. doc. T/4, Mar. 18, 1947.
June 8, 1947
1091
of experts in the tield of colonial administration.
With respect to the latter point, the Council,
after considerable discussion in open session and
also in closed session as a committee of the whole,
agreed that Francis B. Sayre, as former High
Commissioner to the Philippines, and Pierre
Ryckmans, who for more than 10 years was Gov-
ernor General of the Belgian Congo, were aptly
qualified as experts, and that in addition to them
the mission should be composed of one member
from a non-administering, non-colonial state. It
was thought that this would provide the mission
with a suitable balance. In addition to Mr. Sayre,
the president of the Trusteeship Council, and Mr.
Ryckmans, the Belgian representative to the Tmis-
teeship Council, the third member of the mission
will be the eminent scientist. Dr. Eduardo Cruz-
Coke of Chile.
Periodic Visits
Apait from the visit to Western Samoa which
was authorized by the Council for a specific pur-
pose, the Council also considered the problem set
forth in article 87(c) of the Charter of providing
for periodic visits to respective trust territories
at times agreed upon with the administering au-
thority. Some members of the Council felt that
visits to each trust territory should be made fre-
quently in order to increase the familiarity of the
representatives with the problems of the trust
territories. Other members, however, felt that
the physical difficulties in scheduling frequent
visits, such as obtaining a sufficient number of
persons to undertake the visits, providing mem-
bers of the Secretariat, and meeting the expenses,
would be too great and that therefore visits on
a triennial basis would be more desirable. All
agreed that thoroughness of visits was more im-
portant than frequency. Therefore in a resolu-
tion to the General Assembly the Council recom-
mended that the General Assembly make regular
provision in the budget of the United Nations for
periodic visits to trust territories as a recurring
item in the annual budget on the basis of one
visiting mission each year.
It was generally assumed in the Council dis-
cussions that, for purposes of visits, the trust ter-
ritories would be divided into three areas: East
Africa, West Africa, and the Pacific. It therefore
seems probable that under tlie resolution adopted
1092
by the Council, each territory will be visited pe-
riodically once every three years.
In determining the nature and composition of
the visiting missions the Council discussed sug-
gestions that visiting missions should consist of
designated representatives on the Coimcil, or of
member states of the Council without designating
the individuals. It was also proposed that the
Council should adopt only a very general rule re-
garding the composition of these missions, thereby
deferring the question of composition until it could
be determined what would be best in each particu-
lar circumstance.
It was objected that to limit the members of a
mission to only the representatives on the Council
might in some cases not permit the Council suffi-
cient latitude for finding the proper men for the
job. The suggestion that member states should be
designated and that these states in turn could then
appoint the individuals to undertake the mission
was generallj' rejected because the visiting missions
will be responsible to the Trusteeship Council,
and only to the Council; therefore the Council
should designate specific persons. With respect to
the proposal that the Council should adopt only a
very general rule as to the composition of the mis-
sions, a majority felt that it would be preferable
to set down in the rules of procedure a guide by
which the Council could, in the future, determine
its action. For these reasons the Council adopted
a compromise proposal that the members of visit-
ing missions should preferably be composed of one
or more of the representatives on the Council, and
that each mission could be assisted by experts and
by representatives of the local administration.
It was decided that all expenses of these periodic
visits and also of special investigations and in-
quiries, including the travel expenses of the visit-
ing missions, should be borne by the United Na-
tions. It was strongly urged that nothing should
be done to impair the international character of
the visiting missions and that the Council should
always have the right to determine the character
and composition of each mission.
It was further provided in the rules of pro-
cedure that each visiting mission should submit
to tlie Trusteeship Council a report on its visit,
a copy of which should be transmitted promptly to
the administering authority concerned by the Sec-
retary-General. The report may be published by
the Comicil in such form as it deems appropriate.
Department of Slate Bulletin
Observations on each report by the Council and by
the administering authority concerned may also
be published.
Aside from periodic visits it was agi-eed that the
Trusteeship Council may, in agreement with the
administering authority, conduct special inves-
tigations or inquiries when it considers that con-
ditions in the trust territory make such action
desirable. The qualifying phrase m agreement
vnth the adinhmtering authority was considered
to be necessary in as much as none of the trustee-
ship agreements make provision for such special
investigations or inquiries.
Petitions
Article 87 (b) provides that the General As-
sembly, and under its authority the Trusteeship
Council, in carrying out their functions may ac-
cept jjetitions and examine them in consultation
with the administering authority. In formulating
its rules for implementing this provision, the Coun-
cil and its Drafting Committee devoted a number
of meetings to a discussion of the principles and
procedures which should be applied to the accept-
ance and examination of petitions. The complex-
ity of the problem csin be illustrated by the fact
that by far the longest section of the Kules relates
to petitions.'
In general it may be stated that the Council may
accept and examine petitions if they concern the
affairs of one or more trust territories or the opera-
tion of the international trusteeship system. Peti-
tions may come from within a trust territory, or
from outside, and may be presented in writing
or orally. The petitions may be submitted to the
Secretary-General either directly or through the
administering authority, which, at its discretion,
may or may not attach comments. Representa-
tives of the Trusteeship Council engaged in pe-
riodic visits to trust territories, or on other official
missions authorized by the Council, may accept
written petitions, subject to such instructions as
they may have received from the Trusteeship Coun-
cil, and shall transmit them to the Secretary-Gen-
eral for prompt circulation to the members. These
visiting representatives may submit to the Trus-
teeship Council any observations which they might
wish to make regarding the petitions after con-
sultation with the local representatives of the ad-
ministering authority.
After long discussion, it was decided that peti-
tions would normally be placed on the agenda of
a regular session provided that they have been
received by the administering authority concerned,
either directly or tlirough the Secretary-General,
at least two months before the date of the next
following regular session. Any observations with
respect to these petitions which the administering
authority might desire to have circulated to mem-
bers of the Council should, whenever possible, be
transmitted to the Secretary-General not less than
14 days before the opening of the session at which
such petitions will be considered.
It was suggested that all petitions should nor-
mally be submitted tlrrough the administering
authority and, in order that both sides might pre-
sent their observations at the same time, should
be circulated by the Secretary-General only when
the comments of the administering authority are
available. The majority rejected this proposal as
unduly restricting the procedure.
The Council also recognized that in certain
cases petitions required more urgent attention.
Accordingly a sunnnary procedure was provided
whereby, if the administering authority is pre-
pared to consider a written petition on shorter
notice or where in exceptional cases as a matter
of urgency it might be so decided by the Trustee-
ship Council in consultation with the administer-
ing authority concerned, such written petitions
might be placed on the agenda of a regular ses-
sion notwithstanding that they had been pre-
sented after the due date, or might be placed on
the agenda of a special session.
It was further provided that the Council might
hear oral presentations in support or elaboration
of a previously submitted written petition, and
that in exceptional cases it might also hear orally
petitions which had not been previously sub-
mitted in writing, provided that the Council and
the administering authority concerned had been
previously informed of their subject matter.
It was agreed that normally petitions should be
considered inadmissible if they are directed
against judgments of competent courts of the ad-
ministering authorities or if they lay before the
Council a dispute with which the courts have com-
petence to deal. This ruling, however, is not to
be interpreted as preventing consideration by tlie
Trusteeship Council of petitions against legisla-
' Rules 76-93, in U.N. doe. T/AC.1/8, Apr. 22, 1047.
Jwne 8, J 947
1093
tion on the grounds of its incompatibility with the
pi'ovisions of the Charter, or of the trusteeship
agreement, irrespective of whether decisions on
cases arising under such legislation have previous-
ly been given by the courts of the administering
authority.
In order to facilitate its handling of petitions,
the Council provided for the appointment, at the
beginning of each session, of an ad hoc committee
on petitions to undertake a preliminary examina-
tion of the petitions on the agenda without, how-
ever, giving an appraisal of their substance. The
membership of this committee is to be evenly di-
vided between representatives of members admin-
istering trust territories and representatives of the
other members.
As a means of assisting the Council in its exam-
ination of petitions, provision was made that the
administering authority concerned in a petition
should be entitled to designate and to have present
a special representative well informed on the ter-
ritory involved. The presence of such a represen-
tative will enable the Council to obtain more
readily the answei-s to many questions which will
probably arise during the examination of petitions.
Tanganyika Petitions
One of the substantive questions considered by
the Council was the examination of 23 petitions
directed to the Trusteeship Council by residents
or former residents of Tanganyika. AH but two
of the petitioners were of German nationality, in-
cluding a few naturalized Germans of South Afri-
can-Dutch descent, while the remaining two were
of Italian nationality. During the war the peti-
tioners had either been interned in Southern Kho-
desia or concentrated in the Oldeani area of Tan-
ganyika under defense regulations, and the basic
plea of all was that they be allowed to return to
or remain in Tanganyika and not be sent back to
Germany or Italy as they feared was about to
happen.
In its consideration of these petitions the Coun-
cil took into consideration information supplied by
the United Kingdom both in a memorandum cir-
culated to members of the Council ^ and in state-
ments by Arthur H. Poynton, Assistant Under
Secretai-y of State in the Colonial Office, who was
designated as the special representative of the
'U.N. docs. T/23, Apr. 8, 1947; T/23/A(Jd.l, Apr. 27,
1947 ; and T/33, Apr. 21, 1947.
1094
United Kingdom during the consideration of these
petitions. At the close of this examination in the
Council, the problem was referred to a subcom-
mittee for further consideration and recommen-
dation to the Council.
During the discussion of these petitions, it was
pointed out by the representative of the United
Kingdom that the policy of the authorities in Tan-
ganyika with respect to the German nationals was
of a selective nature, with the purpose of securing
the exclusion of all Germans who had at any time
held Nazi or hostile sympathies or who would be
in other respects imdesirable residents of the
territory. The United Kingdom gave assurances
( 1 ) that no German would be repatriated solely on
account of his nationality; (2) that exceptions
would be made in the case of persons who could be
shown to be genuine political and religious ref-
ugees from Nazi domination; and (3) that ex-
ception might also be made on compassionate
grounds in certain cases involving extreme hard-
ship or where the interests of the territory con-
cerned so required, provided always that the in-
dividual was free from security objection and
had displayed no sympathy with totalitarian ideas.
In excluding Gernian nationals who were not re-
garded personally as desirable residents in Tan-
ganyika, the statement of the United Kingdom
set forth very definite criteria which would be
used. The United Kingdom representative in-
formed the Council that those persons of South
African-Dutch origin who became nationalized
Gei-mans during the war of 1914-18 would not be
deported to Germanj'.
The United Kingdom representative also stated
that, as a result of the petitions presented to the
Council, the claims made were thoroughly rein-
vestigated so that 16 additional persons were al-
lowed to return to Tanganyika. In consequence,
he announced, out of 1,250 Germans 254 are to be
allowed to remain in or return to Tanganyika and
953 are to be repatriated to Germany unless they
can find some other country willing to receive
them. The balance of 43 are naturalized German
families of South African-Dutch origin, none of
whom are to be repatriated.
The Council received assurances from the
United Kingdom that no person referred to in
the petitions would be compulsorily repatriated
to Germany if he could find some other country
Department of Stale Bulletin
willing to accept him, provided that there would
be no objections on the grounds of security ; that
necessary steps would be taken in order to keep
family units together; that preparation would be
iuade toward the reception in Germany of those
persons wlio are deported ; and that those persons
who are repatriated would be authorized to take
with them a reasonable amount of personal be-
longings and that the remainder of their property
would be treated in conformity with the rules
which have been or shall be determined by inter-
lational agreement.
In view of the information supplied by the
United Kingdom, the Trusteeship Council ex-
pressed its general approval of the policy being
followed in Tanganyika and decided that under
the circumstances no action was called for on the
part of the Council.
With respect to the two petitions from persons
of Italian nationality, the Council was informed
by the representative of the United Kingdom that,
after a careful review of each case by the authori-
ties in Tanganyika, out of 84 former residents of
Italian nationality 70 would he I'.llowed to remain
in or return to Tanganyika and that 8 of them
would be repatriated either on account of their rec-
ord as active Fascists or because they were liable
to deportation as undesirables. As in the case of
the petitions from the German nationals, the Coun-
cil expressed its general approval of the United
Kingdom policy and decided that no other action
was called for.
Other Petitions
Two other petitions which originated with the
International Alliance of Women, Middlesex, Eng-
land, and with Saint Joan's Social and Political
Alliance, London, were brought to the attention of
the Council. The complaint in each of the peti-
tions was that in the draft convention on social
policy in non-metropolitan territories, prepared
by the International Labor Office, the section re-
lating to the prohibition of discrimination in mat-
ters of employment contains no reference to dis-
crimination on grounds of sex.
The Trusteeship Council decided, without
prejudice to its right to examine such petitions, to
transmit them to the International La})or Organ-
ization for its information and to request that the
Council be informed of whatever action the In-
Jone 8, 1947
745696 — 47 2
temational Liibor Conference may take on the
questions raised in the petitions.
Questionnaires and Reports
One of the chief tasks confronting this session
of the Council was the formulation of a ques-
tionnaire on the political, economic, social, and
educational advancement of the inhabitants of
each trust territory in accordance with article 88 of
the Charter. These questionnaires are of funda-
mental importance to the functioning of the trus-
teeship system since the administering authority
for each trust territory within the competence of
the Genei-al Assembly is obliged to make an annual
report to the General Assembly on the basis of
such questionnaire, and the annual reports are
subject to detailed scrutiny by the Council.
The framing and use of the questionnaire were
fii-st discussed in terms of the rules of procedure
which provide that when the Council considers it
appropriate it will avail itself of the assistance of
the Economic and Social Council or of any spe-
cialized agency in the preparation of those sec-
tions of the questionnaires with regard to which
their advice may be desired. The Council may
modify the questionnaires at its discretion. The
questionnaire is to be communicated to each ad-
ministering authority at least six months prior to
the end of the year covered by the first annual
report and remains in force, witliout specific re-
newal, from year to year. Whenever a new
trusteeship agreement comes into effect, such ques-
tionnaire as has been formulated will be trans-
mitted, through the Secretary-General, to the ad-
ministering authox'ity concerned.
The Council decided for this first year to for-
nmlate a model questionnaire which would be
used on a provisional basis for all the trust ter-
ritories and revised, if necessary, at the next ses-
sion of the Council. A committee comprised of
Australia. Mexico, the United Kingdom, and the
United States was appointed to examine the several
draft questionnaires which had been laid before
the Trusteeship Council and to formulate one
model questionnaire for the Council's considera-
tion. Mr. Chinnery of Australia was elected
chairman of the committee.
The committee studied the four documents^"
'°U.N. (iocs. T/6 (U.K.K M:ir. IS. mi7 ; T/11 (France),
Mar. 27, 1947; T/24 (U.S.), Apr. 8. 1947; T/9 (Secre-
tariat), Mar. 25, 1947.
1095
submitted by France, the United Kingdom, the
United States, and the Secretariat, as well as the
questionnaire used by the Permanent Mandates
Commission, and decided to use the United States
draft as the chief working paper. " Specific sub-
jects and questions from the other papei-s were then
worked into the framework of the United States
draft. In regard to specific sections of the ques-
tionnaire with which they were concerned, the com-
mittee also had the benefit of the collaboration of
representatives of the International Labor Or-
ganization and of the United Nations Educational,
Scientific and Cultural Organization.
The draft model questionnaire^- drawn up by
the committee consisted of some 240 questions and
a statistical appendix covering practically every
phase of the life and administration of the trust
territories, except for the matter of maintaining
armed forces and defense bases in the territories
for security purposes. The main sections of the
draft questionnaire cover the following subjects:
status of the territory and its inhabitants, inter-
national and regional relations, political advance-
ment, economic advancement, social advancement,
and educational advancement. Under these gen-
eral chapter headings, specific questions deal with
such matters as judicial organization, public
finance, taxation, commerce and trade, land and
natural resources, monopolies, agriculture, in-
dustry, transport and communications, social con-
ditions, the status of women, human rights and
fundamental freedoms, labor conditions and regu-
lations, public health, social security and welfare,
schools and curricula, and research.
The Council accepted the committee draft of
the model questionnaire, with minor modifica-
tions, on a provisional basis and with the under-
standing that it will be revised and adapted, if
necessary, to specific trust territories at the No-
vember session of the Council. Meanwhile, it is
being transmitted to the administering authori-
ties to be used as the basis of the first annual
reports on trust territories. It is also being trans-
mitted to the Economic and Social Council and
" The U.S. draft model questionnaire had been pre-
pared by the Committee on Dependent Areas of the De-
partment of State and b.v the Subcommittee on Non-
Self-Governlng Territories of the Interdepartmental Com-
mittee on International Social Policy.
" The questionnaire reported to the Council by the com-
mittee is contained in U.N. doc. T/AC.2/1, Apr. 22, 1947.
1096
to the specialized agencies for their advice on th(
sections with which they are respectively con
cerned. The committee and the Council regardec
this first draft as being largely experimental anc
felt that the practical experience gained in tlu
preparation of the first annual reports would en-
able improvements to be made in future years
The local authorities in each of the territories
concerned have been invited to make suggestion?
regarding the most satisfactory means of present-
ing the desired information and to suggest alter-
native questions which may prove to be of greater
value in relation to local conditions.
The suggestions to be submitted by the admin-
istering authorities for the modification of the
model questionnaire, as well as the suggestions
which will be made by the Economic and Social
Council and the specialized agencies, will necessi-
tate long and careful consideration in preparing
the permanent questionnaires at the next session
of the Council.
The trust territories were all previously admin-
istered under League of Nations mandate and an-
nual reports were regularly submitted to the Coun-
cil of the League, but for obvious reasons it was
not possible to submit and publish such reports
during the war years. In order to provide con-
tinuity in the official reports on these territories,
where this has not already been done, the Council
suggested that the administering authorities for-
ward with their first reports a brief summary out-
lining the main features of the administration of
each territory during the period for which no re-
ports were submitted to the League of Nations.
It was also suggested that the administering au-
thorities send in, for the same period, copies of
any publications, laws, regulations, et cetera, is-
sued by the local authorities or the metropolitan
power, which are relevant to the continued admin-
istration of the territory.
Future sessions of the Council will probably be
devoted, to a considerable extent, to the examina-
tion of the reports submitted by the administering
authorities. Each report is to be sent to the Sec
retary-General within four months from the ter-
mination of the year to which it refers. The ad-
ministering authorities are requested to furnish
400 copies of each report to the Secretary -General
and at the same time send copies directly to the
other members of the Trusteeship Council as a
means of expediting its work. The Council will
Dapartnfnt of Slate Bulletin
■J
then consider and examine each report at the first
regular session after six weeks from the receipt of
the report by the Secretary-Generah The admin-
istering authority is entitled to designate and have
present during the examination of each report a
special rejjresentative who should be well informed
on the territory involved. The special representa-
tive may participate without vote in the examina-
tion and discussion of a report, except in a discus-
sion directed to specific conclusions concerning it.
Relationship With Other Bodies
As previously mentioned, the Trusteeship Coun-
cil provided lor the assistance of the Economic
and Social Council and of any specialized agencies
in the preparation of its questionnaires. In addi-
tion to this the Council, in pursuance of article 91
of the Charter, adopted a broad rule which states :
''1. The Trusteeship Council shall, when appro-
priate, avail itself of the assistance of the Eco-
nomic and Social Council, of the specialized
agencies and of appropriate intergovernmental re-
gional bodies which may be separately established,
relating to matters with which they may be
concerned.
"2. The Secretary-General shall promptly com-
municate to these bodies the annual reports of the
administering authorities and such reports and
other documents of the Trusteeship Council as
may be of special concern to them."
Specific action in establishing relations with the
Economic and Social Council was provided in the
adoption of two resolutions by the Council. The
first of these resolutions was a response to an invi-
tation from the Economic and Social Council to
api)oint a committee of the Trusteeship Council to
join with the representatives of the liconomic and
Social Council in any future negotiations with
intergovernmental oi'ganizations to be brought
into relationship with the United Nations in ac-
cordance with articles 57 and ti;} of the Charter.
Under a resolution authorizing him to appoint,
for a i)eriod of one year, a committee of one to
three representatives for this purpose, the presi-
dent of the Trusteeship Council designated repre-
sentatives from Australia and Mexico.
The second of these two resolutions authorized
the president "to appoint a committee of three rep-
resentatives of the Trusteeship Council, to confer
with a similar committee of the Economic and
Social Council to discuss arrangements for coop-
eration in dealing with matters of common con-
cern". This resolution was passed in response to
an action of the Economic and Social Council,
which at its fourth session appointed a committee,
cijnsisting of the president and two members, for
the iDurpose of consulting with representatives of
the Trusteeship Council regarding arrangements
for cooperation in dealing with matters of common
concern.
The necessity of appointing this committee was
questioned by some members of the Trusteeship
Council, not because they doubted the advisability
of cooperation, but because it was felt that ade-
quate provision had already been made in the
Trusteeship Council's rules of procedure, and that
some conflict might ultiniately result among the
Economic and Social Council, the administering
authorities, and the Trusteeship Council. These
objections were overcome, however, when it was
pointed out that the committee was being set up,
not to deal with the substance of matters of com-
mon concern but on an ad hoc basis to explore and
discuss arrangements for cooperation between the
two Councils. The three representatives of the
Trusteeship Council as named by the president
for these discussions will be France, Iraq, and the
United States.
Reports of the Trusteeship Council to the General
Assembly
In as much as the Trusteeship Council carries out
its functions under the authority of the General
Assembly, it is incumbent upon the Council to
render an annual report to the General Assembly
on its activities and on the discharge of its respon-
sibilities under the international trusteeship sys-
tem. The report is to include an annual review of
the conditions in each trust territory. ^^
The questions of the scope of this general report
and of the methods for assembling the relevant
material and transmitting it were discussed during
the consideration of the rules of pi-ocedure in the
Trusteeship Council. These rules provide that the
general report shall include, as appropriate, the
" The draft report by the Trusteeship Council to tlie
General Assembly covering the first session of the Council.
Alar. i:t)-Aijr. 28, 1947, is contained in U.N. doc. T/39 dated
Apr. 28, ltl47. This draft report was approved with minor
niddifiiations by the Trusteeship Council at its last meeting
on Apr. 28, 1947.
June 8, 1947
1097
conclusions of the Council regarding the execution
and intei-pretation of the trusteeship chapters of
the Charter and the trusteeship agreements, and
such suggestions and recommendations concerning
each trust territory as the Council may decide.
The appropriate sections of the general report
shall take into account the annual reports on each
trust territory, and such other sources of informa-
tion as may be available, including petitions, re-
ports of visiting missions, and any special investi-
gations or inquiries.
The reports are to be transmitted to the General
Assembly through the Secretary-General at least
30 days before the opening of the regular session
of the Assembly. The president, the vice presi-
dent, or another member of the Trusteeship Coun-
cil may represent it during the consideration of its
report by the General Assembly.
Next Session of the Council
Several of the subjects with which the first ses-
sion of the Trusteeship Council was concerned
will also be on the agenda of the next session sched-
uled to convene in New York in the latter part of
November 1947. Included among these items will
be a number relating to the basic objectives of the
trusteeship system set forth in article 76 (b) of
tlie Charter which calls for the promotion of the
political, economic, social, and educational ad-
vancement of the inhabitants of trust territories
toward self-government or independence as may
be appropriate to the particular circumstances of
each territory. Self-government will be the issue
when the visiting mission to Western Samoa re-
ports to the Council. Political, economic, social,
and educational advancement will be involved in
the revision of the model questionnaire and also
in the consideration of any annual reports on trust
territories which may be submitted by the adminis-
tering authorities. Other issues will doubtless be
raised in petitions, several of which have already
been received by the Secretary-General of the
United Nations.
Current United Nations Documents: A Selected Bibliography
There will be listed periodically iu the Bulletin a selec-
tion of United Nations documents which may be of inter-
est to readers.
Printed materials may be secured in the United States
from the International Documents Service, Columbia
University Press, 291)0 Broadway, New York City. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
Trusteeship Council
Disposition of Agenda Items and Clieck List of Documents,
First Session. 26 March-28 April 1947. Prepared by
the Documents Index Unit. T/INF/3/Rev. 1, May 16,
1947. 14 pp. mimeo.
General Assembly
Second Committee. Check list of Documents of the Sec-
ond Committee (Economic and Financial Commit-
tee) and Its Sub-committees, First Session of the
General Assembly, 1946. Prepared by the Documents
Index Unit. A/C.2/101, May 15, 1947. 14 pp. mimeo.
Committee on the Progressive Development of Interna-
tional Law and Its Codification. Draft Proposal To
Define the Principles Recognized in the Charter of
the Nuremberg Tribunal and in the .Judgment of the
Tribunal. Memorandum Submitted by the Delegate
for France. Draft Proposal for the Establishment
of an International Court of Criminal Jurisdiction.
A/AC.10/21, May 15, 1947. 3 pp. mimeo.
1098
Proposals by the Representative of I'oland . . .
A/AC.10/20, May 15, 1947. 2 pp. mimeo.
Statement by the Rapporteur la Amplification of Para-
graphs 10 and 11 of His Memorandum A/AC.10/26.
A/AC.10/30, May 20, 1947. 3 pp. mimeo.
Statement by the Representative of China Before the Third
Meeting of the Committee on Progressive Develoi)-
ment and Codification of International Law, 14 May
1947. A/AC.10/31, May 20, 1947. 3 pp. mimeo.
Committee for the Progressive Development of Interna-
tional Law and Its Codification. Statement by the
Representative of the Union of Soviet Socialist Re-
publics before the Ninth Meeting of the Committee,
22 May 1947. A/AC.10/32, May 23, 1947. 6 pp.
mimeo.
Statement by the Representative of Brazil Before the
Fourth Meeting of the Committee on Progressive De-
velopment and Codification of International Law. 15
May 1947. A/AC.10/2S, May 19, 1947. 3 pp. mimeo.
First Committee. Check List of Documents of the First
Committee (Political and Security Committee) and Its
Sub-Committees, First Session of the General Assem-
bly, 194(!. I'repared by the Documents Index Unit.
A/C.1/135, May 21, 1947. 22 pp. mimeo.
OflScial Records. Second Year : Fifth Session. Report of
the Meeting of Exiierts To Prepare for a World Con-
ference on Passports and Frontier Formalities.
Geneva, 14-25 April 1947. Supplement No. 1. Lake
Success, New York, 1947. 22 pp. printed. [150.]
Deparfmenf of Sfafe Bulletin
PROPOSED CONTINUATION OF INSTITUTE OF
INTER-AMERICAN AFFAIRS
Secretary of State Marshall has urged the passage of l-egis-
lation at this session of Congress to extend the life of The
Institute of Inter-Ameriran Affairs. This agency has heen
giving tangible expression to the good-neighbor policy by
cooperating with other Ameincan governments in their efforts
to improve basic living standards. A copy of the Secretary's
letter and a draft of the proposed legislation precede an arti-
cle describing the Institute's work.
LETTER FROM THE SECRETARY OF STATE TO THE PRESIDENT OF THE SENATE
May 21, 19^7
My Dear Senator Vandenp.erg: I wish to rec-
ommend to the favorable consideration of the
Senate the enclosed bill which will provide for the
continuation of certain cooperative action pro-
grams by the United States and other American
republics through reincorporation of The Insti-
tute of Inter-American Affairs.
In these programs the United States, through
The Institute of Inter- American Affairs, has since
1943 been carrying out in cooperation with eight-
een other American republics projects in the fields
of public health and sanitation, development of
local food supplies, and improvement of basic
education. Under agi-eenients made by authoriza-
tion of Congress with the other American repub-
lics, the present programs will continue until June
1948. The value which the other governments
attach to these programs has been evidenced by
the increasingly large contributions made by them
to these cooperative undertakings.
Shortly after The Institute of Inter- American
Affairs was placed under the supervision of the
Department of State, a thorougli investigation of
the effectiveness and utility of the programs under
reference was made. It was concluded that these
programs have made a highly important contri-
bution to our relations with the other American
republics. They have directly served thousands of
Latin American communities and millions of indi-
viduals in improving their standards of health,
food supply and education.
In my opinion these programs are tangible and
effective demonstrations of the objectives of Amer-
ican democracy. As such they constitute a strong
support for our Hemisphere and world-wide for-
eign policy, and should he continued. Since rein-
corporation of The Institute of Inter- American
Affairs is an indispensable medium for continuing
these programs, I trust the Congi'ess will enact the
necessary legislation during ita present session.
June 8, 1947
1099
The Department has been informed by the Bureau
of the Budget that there is no objection to our pre-
senting this draft legislation.
A similar letter is being addressed to the Speaker
of the House of Representatives.
Sincerely yours,
G. C. Marshall
The Honorable
Arthur H. Vandenberg
President pro tempo tt
United States Senate
(Enclosures: (1) A Bill, To provide for the reincorpo-
ration of The Institute of Inter-American Affairs and for
other purposes; (2) Statement of Justification.)
DRAFT OF A BILL
To provide for the reincorporation of The Institute of Inter- American Affairs and for other purposes
Be it etiacted ii/ the Senate and House of Repre-
sentatives of the United States of America in Con-
gress assembled. That there be, and hereby is,
created as an agency of the United States of Amer-
ica a body corporate with the name of "The Insti-
tute of Inter- American Affairs" (in this Act called
the "Institute").
Sec. 2. The objects and purposes for which tliis
corporation is formed are to further the general
welfare of and to strengthen the relations of
friendship and understanding between the peoples
of the American republics : by collaborating with
other governments or governmental agencies of
the American republics or other organizations in
determining the need for, planning, initiating,
assisting, financing, administering and executing
technical programs and projects, especially in the
fields of public health, sanitation, agriculture, edu-
cation; and by other programs and projects of a
technical nature as may be desirable for the effec-
tive realization of the objects and purposes
mentioned.
Sec. 3. On the date of enactment of this Act the
Institute shall become a body corporate and, as a
corporation —
(a) Shall have succession for a period of five (5)
years unless sooner dissolved by an Act of Con-
gress and upon termination of the life of the cor-
poration all functions shall be liquidated and,
thereafter, unless otherwise provided by Congress,
the assets shall be transferred to the U.S. Treasury
as the property of the United States.
(b) May adopt, alter and use a corporate seal,
which shall be judicially noticed.
(c) May make and perform contracts with any
individual, corporation or other body of persons
however designated, whether within or without
the United States of America, and with any gov-
ernment or governmental agency, domestic or
foreign.
(d) Shall determine and prescribe the manner
in which its obligations shall be incurred and its
expenses allowed and paid.
(e) May employ such officers, employees, agents,
and attorneys as shall be deemed necessary for the
transaction of the business of the Institute in ac-
cordance with the provisions of the civil service
and classification laws, except that the Institute
may employ and fix the compensation of officers,
employees, agents and attorneys of the Institute
employed for service outside the continental limits
of the United States without regard to the civil
service and classification laws, provided that the
salary of any such employee shall not exceed the
maximum salary established by the classification
laws, and may require bonds of any employee and
pay the premiums of such bonds.
(f) May acquire by purchase, devise, bequest,
gift, or otherwise, lease, hold and improve such
real and personal property as it deems necessary
in the carrying out of its objects and purposes
whether within or without the United States, and
dispose of in any manner all such real and personal
property held by it and use, as general funds, all
receipts arising from the disposition of such
property.
(g) Shall be entitled to the use of the United
States mails in the same manner and on the same
conditions as the Exexiutive departments of the
Government.
(h) May, with the consent of any board, cor-
poration, commission, independent establishment,
or Executive department of the Government, in-
cluding any field service thereof, avail itself of the
use of information, services, facilities, officers and
employees thereof in carrying out the provisions
of this Act.
1100
Department of State Bulletin
(i) May accept money, funds, property and
services of every kind by gift, devise or bequest,
^rant, or otherwise, make advances and grants to
my individual, corporation, or other body of per-
sons, whether within or without the United States
if America, or to any government or governmental
dgency, domestic or foreign, when deemed advis-
ible by the Institute in furtherance of the objects
md purposes of the Institute.
(j) May sue and be sued, complain and defend,
in its corporate name in any court of competent
jurisdiction.
( k) Shall have such other powers as may be nec-
essary and incident to carrying out its powers and
iuties under this Act.
Sec. 4. (a) The management of the Institute
shall be vested in a Board of Directors (herein-
after referred to as the "Board") of not less than
five (5) in number, each of whom shall be ap-
pointed by the Secretary of State from among the
officials and employees of the Department of State
and, in the discretion of the Secretary of State,
from among the officials and employees of other
United States Government departments and agen-
cies. The Secretary of State shall designate a
chairman of the Board.
(b) The Directors shall hold office at the pleas-
ure of the Secretary of State and may be removed
by him at any time.
(c) Tlie Directors shall receive no additional
compensation for their services as Directors but
may be allowed actual necessary traveling and
subsistence expenses incurred by them when en-
gaged in the performance of the duties vested in
them as Directors.
(d) The Board shall direct the exercise of all
the powers of the Institute.
(e) The Board may prescribe, amend and
repeal by-laws, rules and regulations governing the
manner in which its business may be conducted and
the powers granted to it by law may be exercised
and enjoyed.
(f ) The Board, in furtherance and not in limi-
tation of the powers conferred upon it, may ap-
point such committees for the carrying out of the
work of the Institute as they deem for the best
interests of the corporation, each committee to
consist of two or more of the Directors, which
committees, together with officers and agents duly
authorized by the Board and to the extent pro-
June 8, 1947
vided by the Board, shall have and may exercise
the powers of the Board in the management of the
business and affairs of the Institute.
Sec. 5. The Institute shall be a non-profit cor-
poration and shall have no capital stock. No part
of its revenue, earnings or other income or prop-
erty shall inure to the benefit of its Directors, offi-
cers and employees and such revenue, earnings or
other income, or property shall be used for the
carrying out of the corporate objects and purposes
herein set forth. No director, officer, or employee
of the corporation shall in any manner directly or
indirectly participate in the deliberation upon or
the determination of any question affecting his
personal interests or the interests of any corpora-
tion, partnei-ship. or organization in which he is
directly or indirectly interested.
Sec. 6. When approved by the Institute, in fur-
therance of its objects and purposes, the officers
and employees of the Institute may accept and hold
offices or positions to which no compensation is
attached with governments or governmental agen-
cies of the other American republics.
Sec. 7. Tlie Secretary of State shall have au-
thority to detail employees of the Department of
State to the Institute under such circumstances
and upon such conditions as he may determine,
provided any such employee so detailed shall not
lose any privileges, rights, or seniority as an em-
ployee of the Government by virtue of such detail.
Sec. 8. The principal office of the Institute shall
be located in the District of Colimibia, but there
may be established agencies, branch offices, or other
offices in any place or places within the United
States or the other American republics in any of
which locations the Institute may carry on all or
any of its operations and business under by-laws
or rules and regulations.
Sec. 9. The Institute, including its franchise and
income, shall be exempt from taxation now or here-
after imposed by the United States, or any terri-
tory, dependency, or possession thereof, or by any
State, county, municipality, or local taxing
authority.
Sec. 10. The right to alter, amend, or repeal this
Act is hereby expressly reserved. If any clause,
sentence, paragraph or part of this Act shall for
any reason be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not
affect, impair, or invalidate the remainder of this
1101
Act, but shall be confined in its operations to the
clause, sentence, paragraph, or part thereof di-
rectly involved in the controversy in which such
judgment shall have been rendered.
Sec. 11. The Institute of Inter-American Af-
faire and the Inter-American Educational Foun-
dation, Inc., two Government corporations caused
to be created under the laws of the State of Dela-
ware on March 31, 1942, and September 25, 1943,
respectively, by the Coordinator of Inter- Ameri-
can Affairs shall, within ten (10) days following
the enactment of this Act, transfer to the corpo-
ration created by this Act all necessary pereonnel,
the assets, funds and property, real, personal and
mixed, and all debts, liabilities, obligations, and
duties, and all rights, privileges, and powers sub-
ject to all restrictions, disabilities, and duties of the
two said corporations, and the corporation created
by this Act, shall accept full title to and ownership
of all the assets, funds, and property, real, personal
and mixed, and all debts, liabilities, obligations,
and duties, and all rights, privileges, and powers
subject to the said restrictions, disabilities, and
duties of the two said corporations and all such
debts, liabilities, obligations and duties of the
two said corporations shall henceforth attach to
the corporation created by this Act and may be
enforced against it to the same extent as if said
debts, liabilities, obligations, and duties had been
incurred or contracted by the corporation created
by this Act.
Sec. 12. The Institute shall be subject to the pro-
visions of the "Government Corporation Control
Act" (Public Law 248, 79th Congress).
Sec. 13. There are authorized to be approjjri-
ated such sums as may be necessary to carry out
this Act.
This Act may be cited as "The Institute of In-
ter-American Affairs Act".
April 11. 191^7
ACCOMPLISHMENTS AND PLANS OF IIAA
The Institute of Inter- American Affairs and the
Inter- American Educational Foundation, Inc., its
companion government corporation, have been
cari-ying out 43 cooperative action programs par-
ticipated in by the United States and each of 18
other American republics since 1942. The motive
was to bring about a solution of emergency prob-
lems in the fields of public health and sanitation,
food supply, and education, which were hamper-
ing the war effort of the United Nations, and to
lay the foundations indispensable for an enduring
peace by aiding the general improvement in the
economic and social status of the peoples of the
Americas. Because it was realized that programs
of the character contemplated could not be ini-
tiated and administered by any of the existing
agencies, governmental or private, the two govern-
ment corporations mentioned were established for
these purposes under authority of Congress by the
former Office of Inter- American Affairs. Control
of the two corporations was transferred by Execu-
tive Order 9710 of April 10' effective May 20,
1946, to the Secretary of State.
A total of about $71,000,000 will have been spent
by the United States for the whole activity, from
' Bulletin of Apr. 21, 1946, p. 686.
1102
its beginning in 1942 until mid-1948 when it is to
be liquidated under current authorization. This
sum includes the United States contribution of
approximately $41,000,000 to "program funds"
(i.e. funds utilized in capital equipment and
other expenses of operations excepting salaries,
travel and living allowances, and other expendi-
tures related to the American personnel employed
on them). The governments of other participat-
ing republics will have spent about $33,400,000,
all for "program funds", by the time the joint
activities are to cease under the present terms.
Starting, as a rule, with substantially greater con-
tributions by the United States, the successive
agreements have brought about increasingly larger
contributions to "program funds" by the other
governments and proportionately diminishing
contributions thereto by the United States.
Wlien control was transferred to the Depart-
ment of State, an exhaustive study was begun of the
35 programs still in operation at that time, to
determine the results attained and to appraise the
benefits thereof. The findings were generally sat-
isfactory. Latin American technicians testify to
the value they have been experiencing by working
side by side in the programs with technicians from
Department of State Bulletin
the United States, becoming familiar with North
American equipment, acquiring respect for North
American professional standards and techniques,
and enjoying a well-justified sense of useful accom-
plishment on behalf of their countries and them-
selves. The North American technicians con-
cerned with the joint activities learned to under-
stand and appreciate the talents and capacities
of their Latin American associates. By pooling
and adapting knowledge they have jointly made
good progress toward the goals set in the pi'ograms.
Incidentally, the sound methods and practices of
management displayed in developing and super-
vising the activities have been assimilated, in a
significant number of instances, by the other gov-
ernments when reorganizing the technical services
of their own ministries. The outstanding pro-
grams have proved themselves a notable means
toward community and individual advances de-
sired by the masses of the people as well as by the
officials of their governments.
The political effects observed resulting from the
programs are the following :
(a) rnipJcmenfation of good-iieighbor ■policy.
The records indicate that to date upwards of 25
million people in Latin America have received
tangible, prized benefits through these cooperative
efforts, which they regard as telling evidence of
the good-will of the people of the United States.
Latin Americans consider them a conspicuously
successful, desirable implementation of the good-
neighbor policy, in furtherance of the Inter-
American political system. Each of the other par-
ticipating governments has requested continuance
of the programs and progi'essively increases the
proportion of its contribution.
{h) Strengthening of democratic institutions.
Through the benefits realized in thousands of com-
munities by millions of the Latin Americans
served by the programs, an appreciable impetus
has been given toward raising consumer standards
and in other ways as well bringing home to the
masses what democracy stands for and can do.
The programs are recognized by Latin American
statesmen and American diplomats as an effective
instrument for strenglliening democratic ideas
and institutions. They do this by demonstrating
the practical capacity of democratic governments,
aided by this form of cooperation, to improve basic
conditions of human life and successfully meet the
challenge of totalitarian propaganda.
June 8, 7947
745696—47 3
How have these accomplishments been effected ?
The Department of State, with the assistance of
the Institute or the Foundation, makes the initial
policy determinations as to what types of cooper-
ative action programs are to be undertaken in each
of the several countries inviting assistance. Once
the policy decision has been made, a basic agree-
ment is negotiated fixing the broad technical pur-
pose of the cooperative action program, the length
of time to be taken to fulfil it, and the other con-
ditions for the work, including the contributions
each of the parties is to make. Then the Institute
or the Foundation sends out its field party quali-
fied for the work contemplated and acceptable to
the country to which it is being sent, to imijlement
the basic agreement. Specific activities within
the program defined in general terms in the basic
agreement are then provided for in subsidiary
project agreements by the two representatives of
the two governments — the minister of the appro-
priate department, and the chief of the Institute's
(or the Foundation's) field party. Often, though
not always, a special vehicle called a "Servicio Co-
operativo" set up within an appropriate ministry
by the host government carries out the program,
all as provided for in the basic agreement. Con-
trol of its activities is placed in the hands of the
director of the Servicio, who as a rule is the chief
of the Institute's field party. The chief reaches
accord with the minister on each of the several
projects constituting the program : the consent of
both representatives is required. This is to assure
the technical integrity of the program and thereby
the requisite opportunity for the securing of long-
range as well as short-range legitimate interests
of both participating governments and peoples.
The activities embraced in the projects de-
signedly involve the American personnel in func-
tions that significantly pass beyond "advisory"
duties. They typically entail joint planning,
financing, manning, and execution of such varied
enterprises as the construction and operation of
health centers, hospitals, water-supply systems,
sewerage systems, food warehouses, cattle quaran-
tine stations, and the like. They include the estab-
lishment and operation of agricultural extension
services, teacher-training courses, assistance to
rural and vocational education, and various other
activities carefully selected and systematically
pursued in the "action" fields of public health and
sanitation, local agricultural development for food
1103
supply, and basic education, towards the attain-
ment of important mutually desired objectives.
Often the activities of the cooperative action pro-
grams necessitate, for their efficient and successful
completion, operations which require longer than
one year to complete and involve in their perform-
ance administrative, fiscal, and other transactions
ha\dng a quasi-commercial aspect. They generate
administrative relationships demanding much
flexibility and adaptability, which could not be un-
dertaken at all within the autliority of existing
bureaus or other regular divisions of the Depart-
ment of State. Nor should they be, for the De-
partment in Wasliington and its Embassies in the
field insist on the intrinsic advantage of keeping
separate and distinct the organization for transact-
ing diialomatic affairs and this organization des-
tined to serve the United States by carrying out
cooperative action programs directly with the gov-
ernments of other American republics. Opera-
tions of the character described, in the setting and
circumstances named, call for the use of the cor-
porative device. Government corporations with
the powers necessary for the purposes in view had
therefore to be establislied.
The Government Corporations Control Act,
Public Law 248, of December 6, 1945, 79th Con-
gress, orders the dissolution of such cori>orations
by June .30, 1948, but provides that any corporation
so dissolved may be reincorporated by act of Con-
gress. A careful and detailed consideration of the
nature of the projects constituting the programs
and the factors accountable for their effectiveness
led to tlie recognition that the use of the corpora-
tive device is essential if they are to be continued.
Although some degree of curtailment can be ef-
fected without dangerously -weakening tlie use-
fulness or jeopardizing the success of this auxiliary
of American policy in the inter- American system,
abandonment or too heavy a reduction of the work,
qualitat ively or quantitatively, on the expiry of the
present authorization for it in 1948 would be
prejudicial to the interests of the United States
as well as the other participating republics.
Tlierefoi'e, tlie Department is recommending the
reincorporation of the Institute of Inter- American
Affairs by Congress for an additional five years to
implement the good-neighbor policy and to
strengthen the fi'amework of democratic institu-
tions in the other republics.
In reaching its conclusion, the Department did
not fail to take into thoughtful account, during a
close and prolonged study of all the facts, the
intention of the Government to pare the cost to
the taxpayers of the United States. A partial cur-
tailment of the scale of activities, stopping short
of the sacrifice of essentials on which their effec-
tiveness can be predicated, was decided upon. It
need cost the United States no more than about
5 million dollars a year for the period of further
operation now requested to reap maturing and
continuing advantages from the prior investment
of 71 million dollars. Conti-ibutions from the
other republics to the several programs to be con-
tinued, tlie actual sites of which will be decided
when the pertinent political as well as technical
factors can be freshly evaluated after favorable
action has been taken by Congress, would probably
amount (it is estimated) to between 4 million and
8 million dollars a year. No appropriation for
activities of the reincorporated Institute of Inter-
American Affairs will be required before the fiscal
year 1949. The appropriations will then be re-
quested by the Department of State and if ap-
proved by Congress will be made available by the
Department to the Institute.
The f unci ions at jiresent can-ied on by the Inter-
American Educational Foundation, Inc., would be
transferred to the Institute. Reincorporated, with
provisions as shown in the draft of legislation
accompanying the letters of the Secretary of State
to the President fro tempore of the Senate and
the Speaker of the House embodying the request
of the Department for favorable action, the Insti-
tute of Inter-American Affairs under control of
the Secretary of State as at present would continue
cooperative action programs in the other American
republics in the fields in which its personnel have
already had valuable experience and achieved com-
mendable success.
I
1104
Oepat\mQn\ of Sfafe Bullefin
INTER-AMERICAN COOPERATIVE
PROGRAM • LOCATION of activities •
Conducted by
THE INSTITUTE OF INTER-AMERICAN AFFAIRS ond th«
THE INTER -AMERICAN EDUCATIONAL FOUNDATION
"*l
rpH>
*it"oi.e»iiiA
v. ••
Y • * *. . .
tit" • i*> " i 1-' •
'j . ».'• BRAZIL
^<' A-- V*.. *
MIAOtMr^
• Health and Sanitation
▲ Food Supply
■ Educotion
Jfi AUGENTIN*
IIAA> AI>ol'«*r
June 8, 7 947
1105
COOPERATIVE ACTION PROGRAMS
Division of Food Supply
Successful agricultural programs, joiutly
financed and operated by the Institute and the
various Ministries of Agriculture, are now func-
tioning in Peru, Paraguay, and Haiti. These pro-
grams have survived frequent changes in the struc-
ture and oificial personnel of the local govern-
ments, and their flexibility of operation has been
demonstrated by the wide variety of activities un-
dertaken.
An example is the program in Peru known as
SCIPA. Peru is the size of California, Oregon,
and "Washington ; it has 7,000,000 people ; because
of the extremes in elevation and climate, agricul-
ture presents a great variety of problems. Op-
erations, conducted within the structure of the
Ministry of Agriculture, are under the direction
of the Chief of Field Party ; financial and opera-
tional control is maintained through that person.
Operations in Peru are of two general types :
(1) Action programs initiated by the U.S. tech-
nical group for direct operations through the
Servicio, or joint program ;
(2) Organizational assistance to already estab-
lished governmental functions.
In the first category are the following projects:
(a) An agricultural extension service, expanded
step by step as trained technicians become avail-
able, is now operating in each Department of
Peru, with 29 offices in all. Besides enjoying the
advantages of the county-agent type of advisory
service, farmers are able to buy and have demon-
strated to them the use of improved seeds, insecti-
cides, tools, equipment, and fertilizer. Moneys
are received and disbursed through revolving
funds.
(6) Farm equipment pools are organized to co-
operate with the extension agents. In these, scarce
and expensive agricultural equipment is pooled to
make it available on a modest fee basis to small
farmers. Because of the demonstrated success of
tliis project, all of the agricultural equipment of
the Peruvian Government is now being placed in
tlicse pools.
(/■) Animal disease-quarantine stations have
been constructed near certain port cities to permit
importation of livestock under controlled methods.
Disease-control demonstrations are carried on with
the aid of a U.S. technician in connection with live-
stock importations and tlu-ough the established
extension offices.
(d) Livestock importation for breed improve-
ment is carried on. About 250 head of high-grade
cattle have been imported, and 20,000 baby chicks
have been shipped to Peru by air to build up
breeder flocks. The Servicio structure permits di-
rect purchase from suppliers and direct dealings
with transporters, with immediate payment to each
possible.
(e) Other .projects in Peru, briefly listed, in-
clude :
construction and operation of storage facilities
for grain and potatoes;
construction of irrigation structures and demon-
strations of their use ;
construction of bait boats and icing facilities to
improve fishery operations ;
home-garden seed distribution to 84,000 fam-
ilies; and
surveys of f ood-i^roduction possibilities in poten-
tial oil-drilling areas.
In the second category of operations in Peru are
the following short-term advisory -type projects:
(a) Meat packing-plant organizational and op-
erational techniques are examined by a U.S. tech-
nician and advice is given for improvement. The
plant is already a going concern and aid in actual
ojDerations is not essential.
( b ) An agricultural statistics and reporting sys-
tem is organized within the Ministry. U.S. tech-
nicians work within tlie Ministry to studj' the
existing structure and place new improved systems
in operation.
(c) Flour milling techniques are examined by
a U.S. exjjert and advice is given as to how to
effect improvements.
In Paraguay there is operated under the coop-
erative agricultural program a model dairy and
pasteurization plant, a seed-production and dem-
onstration farm, and a demonstration livestock
ranch. In addition, the first agricultural census
1106
Department of State Bulletin
of the country lias been taken. A supervised
credit program has been organized in the prin-
cipal farm areas : The Paraguayan Government
makes the loans to farmers, and tlie agricultural
Servicio, through extension worli and demonstra-
tion of improved practices, insures loan repayment.
In Haiti agriculture dislocated because of a war
rubber-growing program has been placed back into
production through this same type of Servicio.
In all of these programs a group of U.S. agri-
cultural technicians at first supervise operations;
later, as local technicians are trained, supervision
is allowed to pass to them, with U.S. technicians
remaining in an advisory capacity as long as nec-
essary.
Division of Health and Sanitation
The Health and Sanitation Division has at the
present time 17 Servicio organizations established
in 17 of the Latin American countries. The gen-
eral plan of the cooperative health and sanitation
program is to set up the types of projects which
will supplement and strengthen the program of the
National Ministry of Health. Before projects
are set up, a general survey of the services being
carried out by the national organization is made,
and the weak points of this over-all program are
selected as fields in which the Servicio, through
which the programs are conducted, can work to-
ward supplementing and strengthening the na-
tional organization.
For instance, if the national health organization
is found to be weak in its sanitary engineering
aspects, projects are established to strengthen this
branch of public health, which upon termination
by the Servicio will become the continuing respon-
sibility of the Division of Sanitary Engineering of
the National Ministry of Health; where the Na-
tional Ministry of Healtli is weak in the field of
malaria control in a country where malaria is prev-
alent, both medical type and engineering type of
malaria-control projects are set up, which upon
their termination become the continuing responsi-
bility of the Division of Malariology ; in the event
that it is decided the Servicio will operate in an
area of the country where little or no health fa-
cilities are established (areas sucli as the Amazon
Valley of Brazil or the Montana region of Peru),
the projects of the Servicio are set up to cover all
phases of health work. Therefore, it can be seen
that while the Servicio acts as an oiScial supple-
ment to the national health agency it also acts as
June 8, 1947
does a voluntary health agency in the United
States ; that is, it makes pi-ovision for liealtli prob-
lems which are not at the time covered by the work
of an official health agency, and when the work is
sufficiently well established so that it can be taken
over and carried on by the official health agency it
then turns over the responsibility for continuing
the activity to the official health agency and enters
a new field of activity.
The projects are mutually agreed upon by the
Chief of Field Party and the representative of the
National Ministry of Health. Third parties may
also join in project agreements if it is decided that
these third parties are to make a contribution
toward tlie project, or have responsibility in carry-
ing out a phase of the project, or have responsi-
bility for the continuation of the worlv at the
termination of the project. The project write-up
sets forth the objective of the project, the contribu-
tions to be made, and the responsibility of the
participants.
The Chief of Field Party in his capacity as
director of the Servicio and the other United
States Institute personnel work shoulder to shoul-
der with the corresponding national personnel of
the Servicio in the work of the project. In each
of the fields mentioned the responsibility for the
work is a joint one between the Institute and the
national personnel, a responsibility which is as-
sumed and discharged through daily contact and
consultation in regard to the progress of the work.
Work progress in each case is finally reported to
the director of the Servicio who in turn is re-
sponsible through the Servicio to the National
Minister or Director of Health, and through the
Division of Health and Sanitation to the Insti-
tute. The reports and contacts of the director of
the Servicio with the National Minister or Direc-
tor of Health are daily, or as frequent as need be
for the information of tlie Minister or for con-
sultation with him toward the obtaining of most
efficient progress in the work.
The United States personnel of the Institute
have the added responsibility of day-to-day super-
vision and training of the national personnel of
the Servicio in their fields of competence. The
following types of Servicio projects have been car-
ried out : hospital and health-center construction
and operation, installation of water and sewerage
systems, malaria control (temporary and perma-
nent), health education, nurse training, in-service
1107
training for public-health technicians, leprosy
control, tuberculosis control, special disease-con-
trol programs, establishment of special clinics,
laboratories, and other miscellaneous projects.
The over-all objective of the programs is to im-
prove the general level of health of peoples, thus
improving their well-being and productive capac-
ity. In certain instances, depending upon the
presence or lack of health facilities established
directly by the National Ministry of Health, sev-
eral or all of the types of projects noted above may
be undertaken as an area program.
As an example, work of the Servicio in an area
is summarized below.
Rio Doce Valley — Brazil
It has been pointed out that the solution of the
Brazilian heavy-industry problem lies in the Rio
Doce Valley, a valley which is said to contain 23
percent of the total undeveloped iron sources of
the world, plus other miiieral deposits including
uranium, platinum, molybdenum, manganese,
beryllium, mica, quartz, and several other deposits.
Prior to the develojiment of the cooperative
health and sanitation activities of the Servicio,
there was little or no health work performed in the
valley. Surveys conducted by the Servicio showed
an extremeljr high incidence of malaria, intestinal
parasitosis, dysentery, schistosomiasis, tubercu-
losis, and tropical ulcers; an extremely high in-
fant-mortality rate; and general malnutrition.
As a result of this there existed considerable debili-
tation and low productivity among the working
people of the valley.
In order to improve these conditions, a series of
Servicio projects were set up in the valley, where-
upon Institute pei'sonnel, consisting of doctors,
sanitary engineers, lunses, and other technicians,
working conjointly with national personnel of the
Servicio, set n\> a series of health centers and sani-
tary posts throughout the valley, particularly in
the larger towns of Aimores, Colatina, and Gov-
ernador Valladares. These centers offered the
following health services: prenatal and postnatal
clinics, infant and preschool clinics, immunization
for the control of comnumicable diseases, venereal-
disease and tuberculosis clinics, general labora-
tory services, and visiting nurse services. Addi-
tionally, in as much as malaria was found to atl'ect
in many locations as high as 77 percent of the pop-
ulation, malaria-control campaigns were started,
1108
which included treatment campaigns, survey for
and control of mosquito-breeding areas, drainage
engineering, and DDT house spraying.
Other projects included the establishment of
water-supply systems and proper sewerage-dis-
l^osal facilities, and a valle_y-wide treatment pro-
gram for intestinal parasites. A public -health
education project to teach methods of disease pre-
vention was established, and training projects
were established for the training of visiting nurses
and for sanitary inspectors.
The population of the valley is estimated at
300,000. As a result of this work there has been
a marked decrease in the incidence of disease and
a general increase in healthful living conditions.
This has been especially noted in. the areas near
the larger towns, where work has been concenti'ated
because of the population concentrations in those
areas. One employer of a large number of peo-
ple in one of the areas affected stated that he has
noted at least a 50 percent increase in the produc-
tivity of his employees.
In several of the areas where health conditions
have been improved there has been a notable in-
crease in population.
Without going into further detail with regard
to projects in this area, it should be noted that this
type of work is vital in any program directed
toward the economic development of an area or a
country. These people have been given oppor-
tunity, by fi'eedom from debilitating and effi-
ciency-destroying diseases, to increase their pro-
ductive capacity and thus their standards of
living.
Inter- American Educational Foundation
The cooperative-action programs of the Inter-
American Educational Foundation aie designed
(1) to i^rovide advisory and consultative services;
(2) to carry out the advice given by positive action
undei- ITnited States direction as long as such di-
rection is necessary; (3) to insure accejitance of
the action through its development by completely
coopei-ative effort on the part of officials or tech-
nicians of the United States and of the host gov-
ernment, working side by side ; and (4) to provide
for orderly assumption of full responsibility by
the host government whenever withdrawal of
United States participation becomes possible. The
Foundation assumes that all programs must be
developed on the basis of resources and methods
Department of State Bulletin
readily available in the host country and adaptable
to its needs and not on the basis of theoretical
programs, appropriate to United States condi-
tions but not readily adaptable to local needs.
In Bolivia, for example, United States tech-
nicians familiarized themselves thoroughly with
Bolivian educational conditions and methods.
(1) Accepting a new technique of school adminis-
tration (the nuclear school s,ystem), already more
or less worked out in Bolivia but not yet adopted
in the United States, the technicians built on the
basis of that system and recommended how, within
it, curiicula, metliods of instruction, and admin-
istration, and standards of teacher training, could
be improved and how the improved schools could
be used to serve the best interests of the community.
(2) They then, with the backing of the Ministry
of Education, initiated new curricula in the
teacher-training institutions and in the demon-
stration schools, with strong emphasis on agricul-
tural education (adapted to local needs), health
education, community life, nutrition, home eco-
nomics, and crafts education, with the United
States technicians actually dii-ecting the courses
and training nationals to direct them. Teacher-
training institutes and workshops, institutes for
administrators, and extension and follow-up work
in communities throughout the Republic consti-
tuted important dii'ect-action phases of United
States technicians' work. (3) Throughout the
program, an essential factor has been the develop-
ment of the action program by mutual agreement
on ijrojects to be undertaken, and by joint partici-
pation in carrying out the projects by United
States and Bolivian technicians, dividing the work
among them. (4) As the Bolivian technicians
acquire experience and as Bolivian teachers finish
their training courses, more and more of the actual
responsibility is transferred" to them, so that when
the time comes for withdrawal of direct United
States participation, the program can be carried
on smoothly by the Bolivians themselves.
The Foundation, in other countries, conducts
131'ograms in vocational education, school adminis-
tration, and secondai-y education as well as such
rural education and agricultural education pro-
grams as the Bolivian one described above.
The results aimed at are, fundamentally: (1)
broadening the base of the educational system ; (2)
giving "basic education" a thoroughly practical
slant, intended to increase the individual and the
community capacity for economic improvement
and economic independence ; (3) stressing the inti-
mate relationship which must exist between the
curriculum and methods of the school on the one
hand, and the social, jDolitical, and economic needs
of the community on the other.
The cooperative-action technique has won ac-
ceptance in Latin America as an effective and wel-
come means of attaining those aims.
June 8, 1947
1109
THE UNITED NATIONS
Question of Palestine
RESOLUTIONS ADOPTED BY THE GENERAL
ASSEMBLY ON THE REPORT OF THE FIRST
COMMITTEE'
The General Assembly calls upon all Govern-
ments and peoples and iiarticnlarly on the in-
habitants of Palestine to refrain, pending action
by the General Assembly on the report of the Spe-
cial Committee on Palestine, from the threat or use
of force or any other action which might create an
atmosphere prejudicial to an early settlement of
the cjuestion of Palestine.
First Meeting of Assembly of ICAO
STATEMENT BY THE SECRETARY OF STATE
[Released to the press May 29]
The first assembly of the Organization has just
closed its sessions. The Delegation of the United
States was headed by Assistant Secretary Garrison
Norton. This Organization completed its transi-
tion from a provisional to a permanent basis. The
necessary steps were also taken to bring it into
relationship with the United Nations. Among
these steps was the passage of an amendment to
the Chicago convention debarring Spain from
membership in the Organization, a requirement
laid down by the General Assembly last December.
In the technical field the Assembly approved the
substantial progress achieved by the Organization
during the past year and a half in establishing
international standards and regulations for the
promotion of safety and regularity in interna-
tional air traffic.
In the field of commercial air rights the Assem-
bly, to the disappointment of this Government,
failed to agree upon the draft of a multilateral
treaty exchanging certain privileges and establish-
ing certain principles for the member states. I
' Resolution II, adopted by the General Assembly on
May 15, 1947. U.N. doc. A/309, May 23, 1947. For the
resolution establishing the Special Connnittee on Palestine,
see Ri-i,LETiN of May 2."i, ]!i47. p. 1024.
1110
am glad to see, however, that the Organization in-
tends to continue its efforts in this direction at a
conference to be held next fall.
U. S. Delegation to 30th Session of
international Labor Conference
[Released to the press May 29]
The President has approved the composition of
the United States Delegation to the Thirtieth Ses-
sion of the International Labor Conference, which
is scheduled to be held at Geneva from June 19
through July 11, 1947. The names of the delegates
were submitted to the President by the Secretary
of State upon the recommendation of the Sec-
retary of Labor. The United States Delegation
will be tripartite, representing the Government,
employers, and workers of the United States as
follows :
Representing the Government of the United States
DELEGATES
David A. Morse, Assistant Secretary of Labor
Elbert D. Thomas, United States Senate
SUBSTITUTE DEI.EO.\TE AND ADVISEE
Augustine B. Kelley, House of Representatives
ADVISERS
Elizabeth H. Armstrong, Specialist in Dependent Area
Affairs, Department of State
Clara M. Beyer, Associate Director, Division of Labor
Standards, Department of Labor
Roy Bornn, Director of Social Welfare, tlie Government
of the Virgin Islands
Edith G. Boyer, Administrative Assistant to the Assist-
ant Secretary of Labor, Department of Labor
Millard Cass, Special Assistant to the Assistant Secretary
of Labor, Department of Labor
Capt. John C. Hammock, Office of the Chief of Naval
Operations, Navy Dei)artment
L. Wendell Hayes, Specialist in International Organiza-
tion Affairs, Division of International Organization
Affairs, Department of State
Leslie A. Hill, Regional Director, Region X, Wage and
Hour Division, Department of Labor, Minneapolis,
Minn.
Brig. Gen. Frank J. McSherry, U.S.A. (Ret.), Special
Assistant to the Governor, the Panama Ganal, Canal
Zone
Department of Slate Bulletin
THE UN/TED NATIONS
Forrest H. Sbuford, Commissioner, North Carolina State
Department foi' Labor, Raleigh, N.C.
Collis Stocking, Assistant Director for Program, United
States Employment Service, Department of Labor
Aryuess Joy Wickens, Assistant Commissioner for Pro-
gram Operations, Bureau of Labor Statistics, Depart-
ment of Labor
Bernard Wiesman, Chief, International Labor Oi'ganiza-
tions Branch, Division of International Labor, Social
and Health Affairs, Department of State
Faith M. Williams, Director of the Staff on Foreign Labor
Conditions, Bureau of Labor Statistics, Department
of Labor
Representing the Employers of the United States
DEXEGATE
J. David Zellerbach, President, Crown Zellerbacb Corpo-
ration, San Francisco, Calif.
ADVISEES
William Barton, Assistant Manager, Department of Manu-
facture, in Charge of Labor Relations, United States
Chamber of Commerce
M. M. Olander, Director of Industrial Relations, Owens-
Illinois Glass Company, Toledo, Ohio
Thomas R. Reid, Director of Personnel and Public Rela-
tions, McCormiek and Company, Incorporated, Balti-
more, Md.
Charles E. Shaw, Manager, Industrial Relations, Standard
Oil Company of New Jersey, New York, N.Y.
Leo Teplow, Assistant Director, Research Industrial Rela-
tions Department, National Association of Manufac-
turers, New York, N.Y.
Representing the Workers of the United States
DELEGATE
Robert J. Watt, International Representative, AFL, Wash-
ington, D.C.
ADVISEES
James M. Duffy, President, National Brotherhood of Oper-
ative Potters, AFL, East Liverpool, Ohio
H. W. Fraser, Vice Chairman, Railway Labor Executives
Association, and President, Order of Railway Conduc-
tors, Cedar Rapids, Iowa
John T. Kmetz, Executive Board Member, District 1,
United Mine Workers of America, AFL, Washington,
D.C.
Peter T. Sclioemann, Vice President, United Association
of Journeymen and Apprentices of the Plumbing and
Pipe Fitting Industry, AFL, Washington, D.C.
P. L. Siemiller, Grand Lodge Representative, Interna-
tional Association of Machinists, Chicago, 111.
John R. Stevenson, Vice President, United Brotherhood of
Carpenters and Joiners of America, AFL, Indianapolis,
Ind.
J. H. Sylvester, Vice - Grand President, Brotherhood of
Railway and Steamship Clerks, AFL, Chicago, 111.
June 8, 1947
745696 — 47 1
SECRETAEY OF THE UNITED STATES DELEGATION
Bruce Grainger, Division of International Conferences,
Department of State
ASSISTANT SECRETARY OF THE UNITED STATES DELEGATION
Dorothy H. King, Division of International Conferences,
Department of State
The agenda for the Thirtieth Session includes
the following: (a) the Director's report; (J)
financial and budgetary questions; (c) minimum
standards of social policy in dependent territories
(provisions suitable for a convention) ; (d) or-
ganization of labor inspection in industrial and
commercial undertakings; (e) employment service
organization; (/) reports on the application of
conventions; and (ff) memoranda on trade union
rights submitted to the United Nations by the
World Federation of Trade Unions and the Ameri-
can Federation of Labor and referred by the
United Nations Economic and Social Council to
the ILO for consideration.
The International Labor Conference, which
meets at least once a year, is the legislative body
of the International Labor Organization, consist-
ing of representatives of 52 nations. The First
Meeting of the Conference was held in 1919, and
the most recent session was held in September and
October, 19J:6, at Montreal, Canada. The func-
tions of the Conference are to formulate conven-
tions and recommendations wliich are then submit-
ted to the competent authorities of each member
for ratification or implemeiatation.
David A. Morse, Assistant Secretary of Labor,
United States Government Representative on the
Governing Body of the ILO, will attend the 102d
Session of the Governing Body of the Interna-
tional Labor Office and preliminary committee
meetings which will be held starting June 5, 1947,
at Geneva. Also participating from the United
States will be : J. David Zellerbach, an employers'
member of the Governing Body, and Robert J.
Watt, a workers' member of the Governing Body.
Mr. Zellerbach and Mr. Watt serve on the Govern-
ing Body by virtue of election by the employers'
and workers' groups, respectively, at the Twenty-
seventh Session of the International Labor Con-
ference which met at Paris, France, in November
1945.
At the 102d Session the Governing Body will be
concerned primarily with: (a) standing orders;
(Continued on page 1137)
1111
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings *
In Session as of June 1, 1947
Far Eastern Commission . . .
United Nations:
Security Council
Military Staff Committee . .
Commission on Atomic Energy
Commission on Conventional Armaments
Committee on Progressive Development and Codification of Interna-
tional Law.
ECOSOC (Economic and Social Council) :
Fiscal Commission
Subcommission on Freedom of Information and of the Press . . .
Economic Commission for Europe: Transport Session
German External Property Negotiations (Safehaven) :
With Portugal
With Spain ,
Inter-Allied Trade Board for Japan
International Conference on Trade and Employment: Second Meeting
of the Preparatory Committee.
Congress of the Universal Postal Union
Council of Foreign Ministers: Commission To Examine Disagreed Ques-
tions of the Austrian Treaty.
FAO (Food and Agriculture Organization) : Rice Study Group . . . .
International Radio Conference
Scheduled for June-August 1947
FAO (Food and Agriculture Organization) :
Executive Committee
Panel on Soil Erosion Control
Meeting of Specialists on the Control of Infestation of Stored Food
Products.
Annual Conference
United Nations:
ECOSOC:
Economic and Employment Commission
Human Rights Drafting Committee
Fifth Session
Narcotic Drugs Commission: Second Session
Subcommission on Economic Development
Population Commission: Second Session
Human Rights Commission: Second Session
Washington .
Lake Success .
Lake Success .
, Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Geneva . . .
Lisbon . .
Madrid . .
Washington
Geneva
Paris .
Vienna
Trivandrum, Travancore,
India.
Atlantic City.
Washington
Washington
London . .
Geneva
Lake Success.
Lake Success.
Lake Success .
Lake Success .
Lake Success
Lake Success .
Geneva . . .
' Prepared in the Division of International Conferences, Department of State.
' Tentative.
1946
Feb.
26
Mar.
25
Mar.
25
June 14
1947
Mar.
24
May
12
May 19
May
19
May 27
1946
Sept.
3
Nov.
12
Oct.
24
1947
Apr.
10
May 7
May
12
May
15
May
15
June 2-5
June or July
Aug. 4
Aug. 25
June 2
June 9
July 19
July 24 2
Aug. 18 2
Aug. 18 2
Aug. 25 2
1112
Department of Stale Bulletin
Calendar of Meetings — Continued
United Nations: ECOSOC— Continued
Statistical Commission: Second Session
Social Commission: Second Session
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Preparatory Conference of Experts on Telecommunications
Economic Commission for Europe: Second Session
Eleventh International Congress of Military Medicine and Pharmacy . .
Royal Sanitary Institute: 51st Congress
ECITO (European Central Inland Transport Organization) :_Seventh
Session of the Council (Second Part).
German External Property Negotiations With Turkey (Safehaven) . .
International Cotton Advisory Committee: Sixth Meeting
ILO (International Labor Organization) :
102d Session of the Governing Body
30th Session of the International Labor Conference
Permanent Agricultural Committee
Sixth International Conference of Labor Statisticians
Industrial Committee on Iron and Steel Production
[RO (International Refugee Organization) : Second Session of the
Preparatory Commission.
ICAO (International Civil Aviation Organization):
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
Aerodromes, Air Routes and Ground Aids Division
" Journdes Medicales de Bruxelles" : 21st Session
Caribbean Commission: Fourth Meeting
International Sugar Council
International Congress of River Transportation
lARA (Inter-Allied Reparation Agency) : Meeting on Conflicting Cus-
todial Claims.
UNRRA Council: Seventh Session
International Telecommunications Plenipotentiary Conference . . . .
International Council of Scientific Unions: Executive Committee . . .
International Rubber Study Group
Seventh International Congress of Administrative Sciences
UNESCO Executive Board
International Meteorological Organization: Meeting of Technical
Commissions.
WHO (World Health Organization) : Fourth Session of Interim Com-
mission.
International High Frequency Broadcasting Conference
^ Tentative.
June 8, ?947
Lake Success .
Lake Success .
Shanghai. . .
Lake Success .
Lake Success .
Geneva . . .
Basel . . . .
Torquay . .
Paris . . . .
Ankara . . .
Washington .
Geneva . . .
Geneva . . .
Geneva . . .
Montreal . .
Stockholm . .
Lausanne '^ . .
Lima ....
Rio de Janeiro
Montreal . .
Brussels . . .
Jamaica . . .
London . . .
Paris ....
Brussels . . .
Washington .
Atlantic City
Paris ....
Paris ....
Bern ....
Paris ....
Toronto . . .
Geneva . . .
Atlantic Citv
1947
Aug. 28 '
Aug. 28 2
June 16
July 7
June 16
July 5
June 2-7
June 2-6
June 3
June (first week)
June 9
June 13-17
June 19
July
Aug. 4
Aug. 19
June 16 2
June 17
July 15
Aug. 19
June 21-25
June 23-28
June 24
June 26-28
June
June
July 1
July 1-2
July 1-10
July 23-30
July
Aug. 4-Sept. 13
Aug. 30-Sept. 14
August or Sep-
tember
1113
>»cnv;r/£s and developments
U.S. DELEGATION TO IITH INTERNATIONAL
CONGRESS ON MILITARY MEDICINE
[Released to the press May 27]
The Secretary of State announced on May 27
that the President has approved the composition
of the United States Delegation to the Eleventh
International Congress on INIilitary Medicine and
Pharmacy which is scheduled to be held at Basel,
Switzerland, from June 2 to June 7, 1947. The
Delegation is as follows :
Chairman
Col. Edgar Erskine Hume, G.S.C., U.S.A., Civil Affaire
Division, War Department
Delegates
Dr. Henry A. Brodkin, member, Association of Military
Surgeons
Dr. Robert C. Cook, Deputy Medical Director, Veterans'
Administration
Dr. Margaret Janeway, New York
Capt. William F. E. Loftin, M.C., U.S.N., Bureau of
Medicine and Surgery, Navy Department
Dr. Ralph C. Williams, Assistant Surgeon General, United
States Public Health Service
The First Congress on Military Medicine and
Pharmacy was sponsored by Belgium in 1921 to
bring together military medical services of par-
ticipating states for the purpose of promoting the
protection of human life in the armed forces.
The Tenth Congress was held at Washington,
D.C., and New York City from May 9 to May 19,
1939. The forthcoming Congress, which is being
held under the auspices of the International Com-
mittee for Military Medicine and Pharmacy,
Liege, Belgium, has for its objective a full ex-
change of views on the discoveries, experiences,
and practices of military medicine resulting from
World War II. The provisional agenda includes
the presentation of formal reports by the various
delegations on the following topics: (1) methods
of rehabilitation of the wounded; (2) modern
prophylaxis of epidemic diseases in the army;
(3) modern methods of evacuating the wounded
and sick; (4) the role of the military surgeon in
the moral and physical training of the soldier; and
(5) the comparative study of methods and ap-
paratus available in determining the concentra-
tion of hydrogen "ions" with regard tb their use
in army pharmaceutical laboratories.
Delegates of the United States will contribute to
the report on modern prophylaxis of epidemic
diseases in the army. In addition to the rejjorts,
the program will contain a demonstration by army
medical units.
INVITATIONS EXTENDED FOR FIFTH INTER-
NATIONAL CONGRESS OF PEDIATRICS
[Released to the press May 28]
The Department of State announced on May 28
that invitations on behalf of the sponsoring com-
mittee for the Fifth International Congress of
Pediatrics have been extended to governments
abroad to be represented at the Fifth International
Congress of Pediatrics. The meeting, which is to
be held at New York City, July 11^17, 1947, will
be the first meeting of the Congress since 1937
(Rome, Italy), and the first meeting to be held in
the United States. Dr. Thomas Parran, Surgeon
General of the United States Public Health Serv-
ice, has accepted an invitation to address the
Congress.
At the same time, states which are members of
the Pan American Union have been invited on be-
half of the American Academy of Pediatrics to be
represented at the First Pan American Congress
of Pediatrics. This meeting is scheduled to be
held at Washington from July 9 through July 13,
1947. I
The following countries have been invited to
attend the Fifth International Congress of Pedi-
atrics: Afghanistan, Argentina, Australia, Aus-
tria, Belgium, Bolivia, Brazil, Bulgaria, Burma,
Canada, Chile, China, Colombia, Costa Rica, Cuba,
Czechoslovakia, Denmark, the Dominican Repub-
lic. Ecuador, Egypt, El Salvador, Ethiopia, Fin-
land, France, Greece, Guatemala, Haiti, Honduras,
Hungaiy, Iceland, India, Iran, Iraq, Ireland, Italy,
Lebanon, Liberia, Luxembourg, Mexico, the Neth-
erlands, New Zealand, Nicaragua, Norway, Pan-
ama, Paraguay, Peru, Poland, Portugal, Republic
of the Philippines, Saudi Arabia, Siam, Sweden,
Switzerland, Syria, Turkey, the Union of South
Africa, the Union of Soviet Socialist Republics, the
United Kingdom, Uruguaj', Venezuela, Yemen,
and Yugoslavia.
The following countries, members of the Pan
American Union, have been invited to attend the
First Pan American Congress of Pediatrics: Ar-
gentina, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Culia, the Dominican Republic, Ecuador, E!
Salvador, Guatemala, Haiti, Honduras, Mexico,
Nicaragua, Panama, Paraguay, Peru, Uruguay,
and Venezuela.
The purpose of these congresses is to provide out-
1114
Department of Slate Bulletin
standing professional leaders in the field of pedi-
atrics witii an opportunity for the mutual exchange
of ideas and to facilitate the dissemination of im-
portant teclinieal information in tlie study of child
health and child disease. These meetings are not
officially sponsored by the United States Govern-
ACTIVITtBS AND DBVEiOPMENTS
ment. However, particular significance is attached
to the convocation of congresses of this nature at
a time when there is increasing awareness through-
out the world of the close dependence of the social
welfare of people everywhere on the existence of
sound medical practice within each country.
The Cairo Conference of the Interparliamentary Union
ARTICLE BY FRANKLIN DUNHAM
Under the leadership of Count Carton de Wiart,
the representatives of the parliaments of 24 coun-
tries gathered in Cairo, Egypt, on April 7, 1947.
Count de Wiart, who served the Interparliamen-
tary Union as President of the Council during the
long years of World War II, presented, as presid-
ing officer and newly elected President of the 36th
Interparliamentary Conference, Dr. Mohammad
Hussein Haekal Pasha. Dr. Haekal, President of
the Egyptian Senate and President of the Egyp-
tian Interparliamentary Group, acted as official
host to the Conference in the name of King
Farouk.
The countries represented at the Conference
were : the United States of America, Austria, Bel-
gium, Bulgaria, Czechoslovakia, Denmark, Egypt,
Finland, France, Great Britain, Greece, Hungary,
Italy, Luxembourg, The Netherlands, Norway,
Poland, Rumania, Sweden, Switzerland, Iraq,
Syria, Turkey, and Yugoslavia. During the first
morning session the group was officially organized
into component parts for action on resolutions and
in subcommittees for the work of the week.
The American Delegation consisted of Senator
Alben W. Barkley, Minority Leader of the Senate,
Chairman; Senator Owen Brewster of Maine;
Senator Carl A. Hatch of New Mexico; Senator
Homer Ferguson, Michigan; Congressman John
M. Vorys, Ohio, Chairman of the House Delega-
tion; Congressman Estes Kefauver, Tennessee;
Congressman Harold D. Cooley, North Carolina ;
Congressman Bob Poage, Texas; Congressman
Henry O. Talle, Iowa; and Congressman Dewey
Short, Missouri. Congressman Anton Johnson of
Illinois, one of the Vice Presidents of the Inter-
parliamentary Bureau, had unfortunately been
taken ill en route to Cairo and had returned by
another plane from the Island of Bermuda. The
delegation was accompanied by Dr. Franklin Dun-
ham, Permanent Executive Secretary of the Amer-
ican group, who also acted as secretary to the
delegation during the entire period of the Confer-
ence. The American Delegation was one of the
largest delegations present at the Conference, ex-
cept the host delegation from Egypt.
During the afternoon the Conference assembled
for the purposes of general debate on questions
minor to the general resolutions.
The previous meeting in Oslo in 1939, which
ironically enough had had for its general discus-
sion the subject titled "The Peaceful Settlement of
Intel-national Disputes", had been held in Norway
(later to be one of the occupied countries) just as
Hitler was planning to send his Panzer divisions
across Poland and almost immediately after the
famous Ribbentrop-Molotov agreement had been
made to respect one another's territories in the
event of war. At the 35th Interparliamentary
Conference it was stated "that general peace can
find no guarantee other than collaboration between
States with a view to satisfying the economic and
social needs of the nations by peaceful methods".
One of the subjects for debate during that meeting
had been the grass-roots problem of the mainte-
nance and development of small and medium-sized
family farms. In light of the break-up of great
ancestral estates which has been accelerated during
the period following World War II, it is interest-
ing to note that the Conference voted in favor of
facilitating the acquisition and farming of me-
dium-sized properties intended to be kept in the
family. Likewise, collective farming was ad-
vanced to the extent that "consolidation should be
encouraged wherever parcelling is excessive". The
June 8, 1947
1115
ACTIVITIBS AND DEVELOPMBNTS
35th Conference devoted itself also to the subject
of vocational training, and voted that: (1) the
school-leaving age should be raised and the addi-
tional time spent at school spent in vocational
preparation and training of pupils; (2) compul-
sory supplementary teaching should be provided
for all young people during apprenticeship; and
(3) legal regulations relating to apprenticeship in
each country should be extended and a statute of
apprenticeship drawn up. The Conference also
voted prophetically on the refugee problem which
was already evident in Europe due to the pressures
of Hitler and his satellite governments. It urged
"upon all governments to take immediate concerted
action to settle the refugee problem by intergovern-
mental measures on a basis of equality between all
classes of refugees, without infringing upon na-
tional sovereignty or prejudice to the indigenous
population". Strangely enough this is the exact
problem which was posed for the International
Refugee meeting recently held in Lausanne
under the same recommended intergovernmental
auspices.
The 35th Interparliamentary Conference
"viewed with concern the persistent tension which
characterizes the international political situation
and the risks and economic strain resulting from
the armaments race ; it is convinced that its action
is in conformity with public opinion the whole
world over when it ventures respectfully to remind
all the Powers of the obligations which they have
assumed with a view to the settlement, by means
of conciliation and arbitration, of disputes which
may arise between them". The countries repre-
sented at this meeting were the United States, Bel-
gium, Bulgaria, Denmark, Egypt, Estonia, Fin-
land, France, Great Britain, Hungary, Dutch East
Indies, Eire, Japan, Luxembourg, Norway, the
Netherlands, Poland, Rumania, Sweden, Switzer-
land, Turkey, and Yugoslavia. Evidently the
presence of the delegates of the parliaments of
these great and small powers stood helpless in the
advance of the armed legions of those countries
that had already decided that war was inevitable.
On the other hand, it is interesting to comment
at this time on the professed sincerity of the coun-
tries that were taking part in that conference at
such a momentous period of the world's history
and to look upon these countries once more eight
years later as they gathered together again after
a great world catastrophe to bind up the wounds
1116
of those who had suffered so frightfully in the
conflict which had devastated a greater part of
Europe and had delivered so serious a blow to
Western civilization.
During the period between these conferences the
official Bureau of the Interparliamentary Union
had quietly and zealously carried on its work from
its headquarters in Geneva under the able leader-
ship of Leopold Boissier, Secretary General of the
Bureau. The official bulletin had never ceased
publication; numerous meetings were held, many
of them in England, either between or during the
consistent bombing of that country by Germany;
and the superstructui'e of the United Nations was
being planned.
It was significant that Senator Alben W. Bark-
ley, President of the American Group of the In-
terparliamentary Union, announced previous to
the 3Cth meeting that the Interparliamentary
Union had been granted top place among those
organizations which would act in a consultative
capacity to the Social and Economic Council of
the United Nations, with full rights to originate
resolutions and to suggest agenda for that impor-
tant body of the new world organization in which
the hope and aspiration of the people of the world
now turn for a guaranty of a prolonged and sat-
isfactory peace.
The Cairo conference had been preceded by a
meeting of the Council of the Interparliamentary
Union held in St. Moritz in the last days of August
1946, which had been attended by Senator Barkley
and by representatives of 22 nations assembled
to meet with the United States.
At a meeting of the American Group of the In-
terparliamentary Union held in the United States
Senate on March 22, 1947, .precedent to the assem-
bling of the delegates to the Cairo conference.
Senator Barkley outlined the work of the Union
between the conferences and reported on the
agenda which was set up in a preliminary fashion
at St. Moritz and was to be the subject of discus-
sion at the Cairo meeting. These questions were :
(1) migration and transfers of populations; (2)
reparation of war damage and international recon-
structions; (3) codification of international law.
It was necessary in addition to make certain struc-
(iiral changes in the organization of the Inter-
parliamentary Union itself which would no doubt
Department of State Bulletin
result in certain amendments to the statutes of the
Union, making it possible for tlie organization to
function more efficiently in the future.
On April 8, the 36th Conference of the Inter-
parliamentary Union got to work on the matters
which had been laid before it by action of the
Council at St. Moritz, and a time was provided
for each chairman of the delegations present to
take the rostrum and in an address of greeting
present the views in general of his country on the
important matters in hand. Senator Barkley in
an address calling for a newly risen faith in people
everywhere, gave an exposition of the position of
the United States in its relation to the world;
stressed the bipartisan suj^port of the foreign
policy of this country ; and in a glowing i:)eroration
pled for the complete and unqualified support of
the United Nations, to which we had dedicated our
hearts, our lives, and our sacred honor.
Tlie business of the Conference actually began
on the morning of April 9, in the long and explora-
tory debate on the subject of migration and trans-
fers of population. The American Delegation,
which by virtue of a time-honored and equitable
system of voting according to strength of iwpula-
tion, had been accorded a total of 28 votes in the
Conference. At no time during the Conference did
the American Delegation split its vote on any
issue, and on all occasions of such voting the entire
delegation was in its place expressing a solid front
of unified action which did not fail to be noted by
the entire Conference. Although the American
vote, as in fact all voting under the very nature
of the Interparliamentary Union and its work, did
not bind the United States to any official position
on matters listed in the agenda, the views expressed
by the United States Delegation, and those to a
very great degree bj' other countries as well, were
indicative of great study and well-thought-out con-
clusions on important subjects which continue to
vex the world at this time. Such a subject was
undoubtedly indicated in the migration and trans-
fers of population, which had received much pre-
liminary study by the Council of the Interparlia-
mentary Union and was offered for final framing
into an official resolution of the Conference. The
resolution as adopted was as follows :
Migration and Transfers of Population
A. The XXXVIth Inter-Parliamentary Conference, hav-
ing studied both the work of the Special Committee on
ACTIVITIES AND DEVELOPMENTS
Refugees and Displaced Pereons which met in London
friiiij April 8 to June 1, l!M(i, uiiilei- the auspices of llie
United Nations Organisation, and the reports and notes
presented to it,
1) approves, after a thorough debate, the conclusions
reached by the said Committee;
2) emphasises that migration and transfers of popula-
tion constitute an international problem which must be
S(jlved by international means ;
3) urges that as regards migration there shall be no
discrimination on racial or religious grounds ;
4) insists on the need for securing the agreement of
all concerned in such transfers;
the object of the above recommendations being the in-
corporation of the immigrants in the community of the
receiving country and their assimilation in its national
life.
B. The Conference considers it undesirable that na-
tionals of any country be compelled to leave that country
against their will, with the exception of any transfers of
population organised under international agreements.
C. The Conference
1) considers that it is desirable that the United Na-
tions Organisation should recommend to member states
that they should facilitate the entry of refugees onto their
territory within the reasonable limits of their capacity ;
2) suggests that Parliaments of member states be in-
vited to consider favourably all means for the technical
training of refugees, particularly Jews, in various forms
of industry and in agriculture, in order that they may
make a more valuable contribution to the economic life
of receiving countries ;
3) recognises the difficulties confronting receiving
countries and urges that the new International Refugee
Organisation create machinery to relate the needs of coun-
tries lacking labour with the surplus of refugee labour
existing in other countries ;
4) hopes that all countries will make use of the most
humane methods of transport in connection with move-
ments of refugees and also that they will facilitate the
reunion of dispersed families;
5) regards it as desirable that wherever possible refu-
gees should return to their country of origin, and considers
that favourable conditions should be created such as will
encourage their return ;
6) deems it desirable that priority be given to the con-
sideration of the removal of groups of refugees from
frontier regions where their presence may constitute a
specially serious problem ;
7) trusts that international conditions facilitating the
distribution of labour in the various countries will be
created by conventions on settlement to be concluded
between those countries, with a view to averting the
danger of unemployment and of an economic crisis which
will threaten the world after the final establishment of
peace.
The next question on the agenda was the dis-
cussion and debate on reparation of war damage
and international reconstruction. Once again the
Conference acted upon a resolution which had been
June 8, 1947
1117
ACTIVtTIBS AND DEVELOPMENTS
given preliminary consideration by the Council
and which reiDi'esents one of the most important
issues in present-day world consideration. The
resolution as finally adopted was as follows :
Reparation of War Damage and International
Reconstruction
The XXXVIth Inter-Parliamentary Conference
1. considers that the basis for national and interna-
tional measures in respect of the problem of war damage
and reconstruction should include the recognition of tlie
principle of reparation for war damage inflicted ;
2. considers that reparation should preferably be given
in kind ; in any case a state victim of an aggression will
be entitled to appropriate all the possessions situated in
its territory belonging to the aggressor state or to its
nationals;
3. recommends that the equipment made available for
reparation should be distributed to the injured nations as
far as possible in accordance with their needs ;
4. expresses the hope that the re-adjustment of the
Level of Industry Plan will enable the German people
both to subsist without imposing financial burdens upon
any of the United Nations and to make good to the limit
of their economic ability the damage their aggression has
inflicted upon other nations.
On April 10, the principal debate and discussion
revolved around the subject of codification of in-
ternational law. Here the various countries pre-
sented their leading delegates in the presentation
of views. Senator Homer Ferguson, of the United
States, in a clear-cut analysis of the necessity for
such codification, received an overwhelming dem-
onstration of confidence on the part of the assem-
bled delegates when he advocated addition of such
measures as were possible to enact into interna-
tional law as to bring about its enforcement "be-
yond the powers of moral suasion". The resolu-
tion itself, however, was referred to the Permanent
Committee on Juridical Questions for further
examination.
The following draft resolution, therefore, was
submitted by Haekal Pasha to the Permanent
Committee :
Codification of International Law
The XXXVIth Inter-Parliameutary Conference, seeing
that the work of codification of International Law, which
has repeatedly figured on the agenda of Inter-Parliamen-
tary Conferences since 1899, has now again taken on in-
creased importance under present international circum-
stances ;
seeing that Members of Parliament in all democratic
countries play a foremost part in the direction and con-
trol of their country's international policy, and that, in the
interests of the peoples who elected them, as in the col-
1118
lective interests of humanity, whose representatives they
likewise are, it is their duty to bring their contribution to,
and to keep watch over, tlie application of the same prin-
ciples of law and morality in relations between the na-
tions as in relations between individuals ;
seeing that, during the second world war, declarations
of paramount importance for the evolution of international
law were made by the spokesmen of the victorious democ-
racies ;
seeing that those declarations deserve to be preserved
from oblivion ;
seeing that they should, to this effect, be recorded in
the shape of a code to be definitely adopted by a forth-
coming Inter-I'arliamentary Conference;
seeing that, moreover, such a vote would imply that
the members of the various Parliaments affiliated to the
Union endorsed those declarations — which, in most cases,
were made by Governments, regarding themselves as di-
rectly bound by their terms and declaring themselves ready
to direct the foreign policy of their respective countries
on the lines thus indicated ;
seeing that the Nuremberg Charter for the prosecution
and punishment of the main war criminals has endowed
international penal law with principles that are also worth
codifying;
Now therefore, the XXXVIth Conference, decides to
set up a special Inter-Parliamentary Committee which,
taking as its starting-point the resolution adopted by
the Inter-Parliamentary Union in 1928, shall be instructed
to draw up in the form of a code the leading principles
of international morality, as contained in the Declaration
of the Four Freedoms, the Atlantic Charter, the Moscow
and Teheran Declarations, the Act of Chapultepec, the
Nuremberg Charter, and similar international documents,
as also in the main international statements made during
hostilities by the spokesmen of the great democracies and
to which great prominence was given at the time in the
world press.
That Code of the great moral principles of International
Law of to-day and to-morrow shall be submitted to a forth-
coming Inter-Parliamentary Conference, to be adopted in
the -shape of a resolution and then transmitted to the
United Nations Organisation as a contribution from the
Inter-Parliamentary Union to the work of codification pro-
vided for under Article 13 of the Charter.
The Conference also referred two amendments
back to the Committee :
Amendment presented hy Mr. T. Wold (Norway)
The XXXVIth Inter-Parliamentary Conference takes
into account that the General Assembly of the United
Nations at its meeting in New York October-December
1940 have decided to take up the work of Codification of
International Law in accordance with article 13 of the
Charter of the United Nations.
The promotion of Codification of International Law has
tliriiugh years been one of the most important tasks of the
Inter-Parliamentary Union. It first figured on its agenda
in 1899 and since then considerable work has been done
Department of Stale Bulletin
by the Union to solve this very important question in tlie
field of international collaboration and peace.
The Inter-Parliamentary tinlon still holds the view that
Codification of International Law is one of the most im-
portant tasks of international collaboration between the
Nations of the World.
The political situation in the World today — the develop-
ment of Public International Law — which has taken place
during and after the war — and especially tlie remarkable
step forward, which is signified by the treaty of 8th of
August 1945 — the basis of the Nuremberg trials — have laid
a sound foundation upon which the work now can be
performed.
All this makes it of paramount importance that the
codification of International Law should be undertaken
and brought to a final solution as soon as possible.
The Inter-Parlianientary Union wishes to express its
deep satisfaction with the decision taken by the United
Nations to take up the Codification of International Law.
The Inter-Parliamentary Union urges that this work
should be carried out with as much speed as possible — and
not stop till the aim is reached.
The XXXVIth Conference in Cairo — where members of
twenty-four parliaments are represented — speaking for
the Inter-Parliamentary Union, asks that all Parliaments
of the World should support the idea of Codification of
International Law and through their governments make
every effort and endeavour — which can lead to a success-
ful result of this task.
Amendment presented by M. Henri Rolin {Belgium)
Lines 5 and 6 of paragraph 2 of the draft resolution pre-
sented by Haekal Pasha to read as follows:
"the principles of law In relations between the nations
as in relations between individuals".
The words "of international morality" in lines 5 to 6
of the next to the last paragraph and the word "moral" in
the first line of the last paragraph to be omitted.
In tlie matter of the reorganization of the Inter-
parliamentary Union for the necessary work in
planning the immediate future, the following
amendments were made to the statutes of the
Union :
Article 1
The aim of the Inter-Parliamentary Union is to promote
personal contacts between members of all Parliaments,
constituted into National Groups, and to unite them in
common action to secure and maintain the full participa-
tion of their respective States in the firm establisliment
and development of democratic institutions and in the
advancement of the work of international peace and co-
operation, particularly by means of a universal organisa-
tion of Nations. With this object in view, the Interparlia-
mentary Union will also study and seek solutions for all
act;v/7/£s and devblopments
questions of an international character suitable for settle-
ment by parliamentary action and shall make suggestions
for the development of parliamentary institutions, with
a view to improving tlie working of those institutions and
increasing their prestige.
Article 3
The Inter-Parliamentary Union shall be composed of Na-
tional Groups.
A Parliament may constitute itself a National Group of
the Union.
Groups constituted within Parliaments of States not
represented in any other Parliament have the right to
join the Inter-Parliamentary Union.
Due National Group only may be formed in each Parlia-
ment. Each Group shall elect a Bureau, with power to
direct its operations and to correspond with the Inter-
Parliamentary Bureau. It shall draw up its own rules
of organisation and administration and fix the amount of
the annual contribution, if any, of its members. It shall
.send to the Inter-Parliamentary Bureau, before the end of
Marcli of each year, a report of its activities and a list of
its members.
Article 5
It is the duty of a National Group to keep its Parlia-
ment informed, through its Committee or through one of
its members, of resolutions adopted at the Conferences
which call for parliamentary or governmental action, and,
not later than one month before the next following annual
Conference, to report to the Bureau of the Inter-Parlia-
mentary Union as to the action taken thereon.
Article 10
This Article has been referred to the Committee on
Political and Organisation Questions for further study.
The following arrangements for traveling fa-
cilities were agreed upon :
The XXXVIth Interparliamentary Conference, con-
vinced of the value of the free movement of all persons,
Including tourists, between countries, both to interna-
tional goodwill and to national economy, resolves to urge
upon tlie respective Governments the importance of sup-
porting all recommendations promoting such free move-
ment, on the lines agreed by all the representatives of the
national tourist organisations of the 39 countries at their
Conference in London from October 1st to 4th 1946.
On April 12, day of adjournment, the business of
organizing the Interparliamentary Council, which
will act between the 36th and 37th Conferences,
was accomplished. Viscount Stansgate, Member
of the House of Lords (Great Britain) was elected
President of the Interparliamentary Council, and
the following members were nominated by their
groups to serve on the Council during the ensuing
period :
June 8, 1947
1119
ACTIVITIES AND DEVELOPMENTS
America, United . . . Senator Alben W. Barklej' and
States of Karl Stefan
Austria Eduard Ludwig and Paul Speiser
Belgium Count Carton de Wiart and
Robert Gillon
Bulgaria Dr. Neytcheff and Gheorghi
Slavtcheff
Czechoslovakia .... Dr. VI. ProcMzka and Alois
Petr
Denmark Hartvig Frisch and Ole Bj0rn
Kraft
Egypt Dr. Mohammad Hussein Haekal
Pasha and M" Mohammad
Hamed Gouda
Finland Fagerholm and Max Sergelius
France Marius Moutet and Paul Bastid
Great Britain Viscount Stansgate and Major J.
Milner
Greece Georges Cassimatis and Con-
stantin Tsatsos
Hungary Michel Karolyi and Dr. Emeric
Oltvduyi
Iraq Baha Uddin Nuri Pasha and
Dr. Abdul-Majid Abbas
Italy Cianca and Facchinetti
Luxembourg Emile Renter and Hubert Clem-
ent
Netherlands P. J. S. Serrarens and M. A.
Reinalda
Norway Natvig Pedersen and T. Utheim
Poland Stefan Z61kiewski and I. Lech-
czicki
Pioumania Mihail Sadoveano and Vasile
Louca
Sweden G. Andr^n and A. Vougt
Switzerland ..... Aymon de Senarclens and Ernst
Boerlin-Widmer
Syria Adnan p]l Atassi Bey and Ahmed
El Charabati Bey
Turkey Fazil Ahmet Aykaj and Nazim
Percy
Yugoslavia Vladimir Simitch and Dervish
Tafro
Honorary President . . Count Carton de Wiart (Bel-
gium)
The Executive Committee of the Interparlia-
mentary Council was thereuf)on organized.
Since the Interparliamentary Council had
elected as its President Viscount Stansgate, he thus
becomes ex ofjicio President of the Executive Com-
mittee.
The Conference elected Dr. Mohammad Hus.sein
Haekal Pasha, President of the Senate (Egypt),
' IL' Federal JictiiKtcr 3-'')!l.
1120
and M. Vladimir Simitch, President of the Fed-
eral Council (Yugoslavia), to the two vacant seats
on tJie Executive Committee.
The Committee will accordingly be composed of
the following members during the coming year :
Lord Stansgate (Great Britain), President;
Senator Alben W. Barkley (United States) ; Prof.
Hartvig Frisch (Denmark) ; Dr. Mohammad Hus-
sein Haekal Pasha (Egypt) ; M. Vladimir Simitcli
(Yugoslavia).
Executive Order 9863
DESIGNATING PUBLIC INTERNATIONAL OR-
GANIZATIONS ENTITLED TO ENJOY CERTAIN
PRIVILEGES, EXEMPTIONS, AND IMMUNI-
TIES'
By virtue of the authority vested in me by sec-
tion 1 of the International Organizations Immu-
nities Act, approved December 29, 1945 (59 Stat.
669) , and having found that the United States par-
ticipates in the following-named international or-
ganizations pursuant to a treaty or under the au-
thority of an act of Congress authorizing such par-
ticipation or making an appropriation therefor, I
hereby designate such organizations as public in-
ternational organizations entitled to enjoy the
privileges, exemptions, and immunities conferred
by the said Act :
1. United Nations Educational, Scientific, and
Cultural Organization
2. International Civil Aviation Organization
3. International Telecommunication Union
The designation of the above-named organiza-
tions as public international organizations within
the meaning of the said Internatioiuil Organiza-
tions Immunities Act is not intended to abridge in
any respect privileges and innnimities which such
organizations may have acquired or may acquire
by treaty or Congressional actiori.
This order supplements Executive Orders No.
9698 of February 19, 1946, No. 9751 of July 11,
1946, and No. 9823 of January 24, 1947.
Harry S. Truman
The White House
3Iat/ 31, 10^7
Deparfmenf of Stafe Bulletin
THE RECORD OF THE WEEK
Proposed Inter-American Military Cooperation
THE PRESIDENT'S MESSAGE TO THE CONGRESS
[Released to the press by the White House May 26]
Ti> the Congress of the United States:
I submit herewith for the consideration of the
Congress a bill to be entitled "The Inter- American
Military Cooperation Act" authorizing a program
of military collaboration with other American
States including the training, organization, and
equipment of the armed forces of those countries.
I submitted a similar bill to the 7yth Congress
and recommended at that time that the Congress
give the bill favorable consideration and enact it.
The Committee on Foreign Affairs of the House
of Representatives reported the bill with amend-
ments to the Committee of Whole House as H.R.
6326. This present draft agrees with H.R. 6326.
World developments during the year that has
passed give still greater importance to this legis-
lation, and I again ask the Congress to give this
bill favorable consideration and enact it.
As stated in my message to the 79th Congress
our Armj' and Navy have maintained cordial re-
lations of collaljoration with the armed forces of
otlier American republics within the framework
of the good-neighbor policy. Under authori-
zation of the Congress, military and naval train-
ing missions have been sent to various American
republics. During the recent war, even prior to
Pearl Harbor, this collaboration was intensively
developed on the basis of inter-American under-
takings for liemisphere defense. Training activi-
ties were expanded, and under the Lend-Lease Act
liniitcd amounts of military and naval equipment
were made available to the other American re-
piil)lics as i)art of the hemisphere defense pro-
gram. Forces from two of the American republics
])ai1iripMled in combat overseas, and others joined
in the defense of tlie shores and seas of the Ameri-
cas at a time wlien the danger of invasion of our
continents was all too great.
The American I'epublics have assumed new re-
sponsiljilities, for their mutual defense and for the
maintenance of peace, in the Act of Chapultepec
and the Charter of the United Nations. The
close collaboration of the American republics pro-
vided for in tlie Act of Chapultepec, the proposed
treaty to be based upon that act, and other basic
inter-American documents, make it highly de-
sirable to standardize military organization,
training methods, and equipment as has been
recommended by the Inter-American Defense
Board.
I can find no better way to describe the intent
and purpose of this bill than to repeat my message
to the Congress of May 6, 19J:6.^
Under the bill transmitted herewith, the Army
and Navy, acting in conjunction with the Depart-
ment of State, would be permitted to continue in
the future a general program of collaboration with
the armed forces of our sister republics with a view
to facilitating the adoption of similar technical
standards. Certain atlditional training activities,
not covered by existing legislation, would be per-
mitted. The President would also be authorized
to transfer military and naval equipment to the
governments of other American states by sale or
other method.
The collaboration authorized by the bill could
be extended also to Canada, whose cooperation
with the United States in matters affecting their
common defense is of particular importance.
A special responsibility for leadership rests
upon the United States in this matter because of
the preponderant technical, economic, and mili-
tary resources of this country. There is a reason-
able and limited purpose for which arms and
military equipment can rightfully be made avail-
able to the other American states. This Govei'n-
ment will not, I am sure, in any way approve of,
nor will it participate in, the indiscriminate or
unrestricted distribution of armaments, which
would only contribute to a useless and burdensome
I
' Bulletin of May 19, 1040, p. S."i9.
June 8, 7947
1121
THE RECORD Of THE WEEK
armaments race. It does not desire that operations
under this bill shall raise unnecessarily the quan-
titative level of armament in the American re-
publics. To this end the bill specifies that amounts
of nonstandard material shall be sought in ex-
change for United States equipment.
It is my intention that any operations under this
bill, which the Congress may authorize, shall be in
every way consistent with the wording and spirit
of the United Nations Charter. The bill has been
drawn up primarily to enable the American na-
tions to carry out their obligations to cooperate in
the maintenance of inter-American peace and se-
curity under the Charter and the Aet of Cha-
pultepec which is intended to be supplanted by a
permanent inter-American treaty.
It is incumbent upon this Government to see that
military developments in which we have a part are
guided toward the maintenance of peace and secu-
rity and that military and naval establislmients are
not encouraged beyond what security considera-
tions require. In this connection the bill provides
that operations thereunder are subject to any inter-
national agreement for the regulation of arma-
ments to which the United States may become a
party. In addition, provision will be made for
continuing coordination of the actual operations
under the legislation with developing plans and
policy in the field of armaments regulation.
In executing this program it will be borne in
mind, moreover, that it is the policy of this Gov-
ernment to encourage the establishment of sound
economic conditions in the other American re-
publics which will contribute to the imjjrovement
of living standards and the advancement of social
and cultural welfare. Such conditions are a pre-
requisite to international peace and security. Op-
erations under the proposed legislation will be con-
ducted with full and constant awareness that no
encouragement should be given to the imposition
upon other people of any useless burden of arma-
ments which would handicap the economic im-
provement which all countries so strongl_y desire.
The execution of the program authorized by the
bill will also be guided by a determination to
guard against jjlacing weapons of war in the hands
of any groups who may use them to oppose the
peaceful and democratic principles to which the
United States and other American nations iiave so
often subscribed.
In entering into agreements with other Ameri-
can states for the provision of ti-aining and equij]-
ment, as authorized by the bill, the purposes of this
program will be made clear to each of the other
governments.
Harry S. Truman
The White House,
May 23, 19^7
DRAFT OFABILL
To contribute to the effective maintenance of international peace and security pursuant to tlie objectives
and principles of tiie United Nations, to provide for military cooperation of the American states in the
light of their international undertakings, and for other purposes.
Be it enacted hy the Senate and House of Rep-
resentatives of the United States of America in
Congress assembled. That this Act may be cited
as '"'The Inter-American Military Cooperation
Act'\
Sec. 2. The President is authorized to enter
into agreements with the governments of other
American states to provide: (a) for the instruc-
tion and training of military or naval personnel
of such countries, (b) for the maintenance, repair,
and rehabilitation of militai-y or naval equipment
in possession of such countries, and (c) for the
1122
transfer to such countries of any arms, ammuni-
tion, and implements of war as defined in the
President's Proclamation Numbered 2717, of Feb.
14, 1947, or any superseding proclamation; any
other aircraft or vessels; stores, supplies, services,
technical information, material, and equipment:
Provided, That such transfer shall be consistent
with the military and naval requirements of the
United States and with the national interest.
Sec. 3. Notwithstanding the provisions of
any other law, the President is authorized in order
to carry out agreements made under section 2 (a)
Department of State Bulletin
J
to provide instruction and training to military
or naval personnel of any other American state,
including but not restricted to instruction and
training at service schools maintained and admin-
istered by the United States Army or Navy, or
which may be established for this purpose, within
territory under the jurisdiction of the United
States, (b) to furnish to such students instruction
and training, material, and supplies required for
instruction and training, clothing for use while
under instruction and training, medical treatment
in military and naval establishments, and such
subsistence, quarters, and Government transporta-
tion to and from their home countries and within
the United States as it may be practicable to fur-
nish in kind, (c) to furnish or transfer such serv-
ices, technical information, and materials as may
be necessary to test, inspect, pi'ove, repair, recon-
dition, or otherwise to place in good working or-
der, military or naval equipment in the possession
of such countries, and (d) to transfer, provide for
the use of, dispose of, or to facilitate the sale of, to
such countries any arms, ammunition, or imple-
ments of war as defined in the President's Proc-
lamation Numbered 2717, of Feb. 14, 1947, or any
superseding proclamation; any other aircraft or
vessels; stores, supplies, services, technical infor-
mation, material, and equipment.
Sec. 4. (a) Any agreement made pursuant to
this Act shall contain an undertaking by the for-
eign government (1) that it will not, without the
consent of the President of the United States,
transfer title to or possession of any property
transferred to it pursuant to this Act ; (2) that it
will not permit use of any property so received
or disclosure of any plan, specification, or other
information pertaining thereto, or any technical
information furnished, by or to anyone not an
ofiicer, employee, or agent of such goverinnent or
for any purpose other than those set forth in this
Act; and (3) that such foreign government will
make provisions comparable to those customarily
made by the United States, for the security of any
article or information received pursuant to this
Act.
(b) Any agreement for the disposition of any
article or information under this Act, shall fully
protect the rights of all citizens of the United
States who have patent rights in and to any such
item which is hereby authorized to be disposed of
June 8, 1947
THE RECORD OF THE WEEK
and the payment collected for royalties on such
patents shall be paid to the owners and holders of
such patents.
Sec. 5. The terms and conditions upon which
the cooperation authorized under section 3 is ex-
tended to any country shall be such as the Presi-
dent shall find satisfactory, and the benefit to the
United States may be payment or repayment in
kind or property, or any other direct or indirect
benefit which the President may determine to be
adequate and satisfactory : Provided, That the
terms for material or equipment transferred under
section 3 of this Act, which is procured by the
Government of the United States for the purpose
of transferring it to a foreigiT government, shall
be payment of not less than the cost to the United
States ; and, that the terms for material or equip-
ment transferred under section 3 of this Act which
is procured for the armed forces of the United
States and is not declared by the Secretary of War
or Navy, as the case may be, to be excess to the
needs of the armed forces of the United States,
shall be payment of a fair value, giving considera-
tion to age, condition, and cost to the United States
of replacement of such material or equipment:
Provided further, That such transfer shall be con-
sistent with the military and naval requirements
of the United States and with the national in-
terest: And provided further, That in arranging
the terms and conditions for the transfer of any
aims, ammunition, and implements of war, as de-
fined by the President's Proclamation Numbei'ed
2717 of Feb. 14, 1947, or any superseding procla-
mation, first consideration shall be given to re-
quiring the transfer by the foreign government to
the United States of any similar articles, weapons,
aircraft or vessels not adapted to tables of organi-
zation and equipment of the armed forces of the
United States. The value of such equipment re-
ceived from the foreign government shall be com-
puted on the same basis as the value of similar
equipment disposed of, under existing laws and
regulations, by the armed forces of the United
States as surplus to their needs, and may be in-
cluded as part of any compensation required.
Sec. 6. Any agi-eement, transaction, or under-
taking made by the United States pursuant to
this Act shall be subject to any general system for
the regulation of armaments which may be
adopted by the United Nations, and to any other
international treaty or convention for the regu-
1123
THE RECORD OF THE WEEK
latioii or limitation of armaments or arms traffic
to wliicli tlie United States may become a party.
Sec. T. (a) There is hereby authorized to be
appropriated from time to time, out of any money
in the Treasury not otherwise appropriated, sncli
amounts as may be necessary' to carry out the
provisions and accomi:)lisli the purposes of this
Act.
(b) All moneys which may be received from the
government of any American state in payment for
any projierty procured by the War or Navy De-
partment or furnished by such Department from
stocks on hand and transferred pui-suant to this
Act shall, except as hereinafter provided, revert to
the respective appropriation or appropriations out
of which funds were expended in carrying out the
transaction for which money is received. Such
moneys shall be available during the fiscal year in
which sucli funds are received and the ensuing
fiscal year to replace the funds utilized for such
jjrocurement or to replace tlie property so fur-
nished from stocks on hand : Provided, That
where the Secretaiy of War or the Navy de-
termines that such replacement of funds or prop-
erty' is not necessary, the amounts received shall
be covered into the Treasury as miscellaneous
receijits.
(c) The President is authorized, wlien he finds
it to be in the jDublic interest, to accept advances
of funds from the governments of other American
states for all or part of the expenses of any portion
of the program authorized in this Act, and the
amount so received shall be credited to appropriate
ajipropriations or funds so as to be available to
carry out the piu'poses for which the advance pay-
ment was made: Provided, That where the Secre-
tary of War or tbe Navy determines that such re-
placement of funds or property is not necessary,
the amounts received shall be covered into the
Treasury as miscellaneous receipts.
Sec. 8. Tlie President may, from time to time,
promulgate sucli rules and regulations as may be
necessary and proper to carry out any of the pro-
visions of this Act, and he may delegate any power
or authority conferred on him by this Act to such
deijartment, agency or officer as he shall direct.
Sec. 9. The President shall provide that the
Congress be informed annually of all oj^erations
under this Act unless in any particular case he
shall find the disclosure of information incom-
patible with the public interest.
Sec. 10. If any pi-ovision of this Act, or the
application of such provision to any person or
circumstance, is held invalid, the remainder oi
this Act or the application of such provision to
persons or circumstances otlier than those as to
which it is held invalid, shall not be affected
thereby.
Sec. 11. The Act of June 15, 1940. entitled
"An Act to authorize the Secretaries of War and
of the Navy to assist the governments of American
Republics to increase their military and naval es-
tablishments, and for other purposes" (22 U.S.C.
521 and the following) , is liereb}' repealed.
Sec. 12. The authority conferred by this Act is
in addition to any autliority conferred by the Sur-
plus Property Act of Idii or any other provision
of law authorizing transfers or disposals of prop-
erty of the United States, and shall not be subject
to regulations issued under any such laws or to
the provisions of any law inconsistent herewith.
Negotiations Planned for Implementation of Foreign Relief Bili^
STATEMENT BY THE SECRETARY OF STATE
[Released to the press May 29]
With reference to the 350-million-dollar relief
fund, that authorization bill has been sent to the
President for approval together with a proposed
Executive Order delegating authority under the
act. It is exi^ected that the President in accord-
ance with the act will request tlie Reconstruction
' I'liblic Law 84, 80th Conj;., 1st spss.
1124
Finance Corporation to make available immedi-
ately 75 million dollars to start operations. It is
not planned to earmark definite over-all amounts
for particular countries at this time. Tentative
programs of shipments for the period June 1-
September 30 have been developed. It is hoped
to start shiijments within a week or 10 clays.
Draft agreements to be negotiated with the vari-
ous governments covering the assurances specified
Department of State Bulletin
in the act and with regard to other mutters con-
cerning the program have been prepai'ed. We ex-
pect to enter into negotiations within tlie next few
days with several countries.
Tlie key personnel to be used in tlie relief distri-
bution missions is being recruited. I thinlv it is
THE RECORD Of THE WEEK
probable that the President within the next day or
two will send to the Senate for confirmation the
nomination of a field administrator. Plans are
being worked out in the Department of Agricul-
ture, the Treasury and War Departments to handle
l^rocurement and shipment of supplies.
REGULATIONS FOR CARRYING OUT THE PROVISIONS OF THE JOINT RESOLUTION ENTITLED "JOINT
RESOLUTION PROVIDING FOR RELIEF ASSISTANCE TO THE PEOPLE OF COUNTRIES DEVASTATED
BY WAR" '
By virtue oi the authority vested in me by the
joint resolution of May 31, 1947. entitled "Joint
Kesolution Providing for Relief Assistance to the
People of Countries Devastated by War," herein-
after referred to as the joint resolution, and section
202 of the Revised Statutes, and as President of the
United States, I hereby prescribe the following
regulations for carrying out the provisions of the
joint resolution :
1. The Secretary of State is hereby autliorized:
(a) To exercise the authority vested in the
President by sections 2, 3, and 4 of the joint resolu-
tion, except with respect to the appointment of the
field administi'ator pursuant to section 4.
(b) To take such other action, not inconsistent
with the authority I'eserved to the President, as
may be necessary for providing relief assistance in
accordance witli the terms of the joint resolution,
including the making of such ai'rangements with
the heads of other Executive departments, agen-
cies, and independent establishments of the Gov-
ernment as may be necessary and proper for carry-
ing out the provisions of the joint resolution.
(c) To exercise the authority vested in him by
this order directly or through the field administra-
tor appointed pursuant to section 4 of the joint
resolution or through such officers and employees
of the Department of State, including those of the
Foreign Service, as he may designate to act on his
behalf.
2. The field administrator shall act under the
guidance and in accordance with the instructions
of the Secretary of State.
Harry S. Truman
The White House
May 31, 1047
PROVIDING FOR THE TRANSFER OF PERSONNEL TO THE AMERICAN MISSION FOR AID TO GREECE
AND THE AMERICAN MISSION FOR AID TO TURKEY^
By virtue of the authority vested in me by tlie
act of May 22, 1947, entitled "An Act to Provide
for Assistance to Greece and Turkey,"' tlie Civil
Service Act (22 Stat. 403), and section 1753 of the
Revised Statutes, and as President of the United
States, it is hereby ordered as follows :
1. Upon tlie request of the Secretary of State or
his duly authorized representative, and with the
consent of the employee and of the head of the
department or agency concerned, any civilian em-
])loyee of a department or agency in the Executive
branch of the Federal Government wlio is serving
under an aiipointment not limited to one year or
less may be transferred to the American Mission
for Aid to Greece or to tlie American Mission for
Aid to Turkey.
2. The provisions of Executive Order Xo. 9721
of May 10, 1046, and regulations prescribed by the
Civil Service Commission pursuant thereto, with
respect to the transfer of personnel from the Exec-
utive branch of the Federal Government to public
international organizations in which the United
States Government participates, shall be appli-
cable to the transfer of personnel under this order
to the American Mission for Aid to Greece and the
American Mission for Aid to Turkey.
Harry S. Truman
The White House
Mrn/ 31. 1947
' Kx. Or. 0S04 (12 Fcdciiil Rrf/ister SS-'JO).
= Ex. Or. 9862 (12 Federal Register S.'j.jS).
June 8, 1947
1125
Relation of St. Lawrence Seaway and Power Project to National Security
STATEMENT BY THE SECRETARY OF STATE'
As a former Chief of Staff I have been aware of
the benefits which the St. Lawrence seaway and
power project would bring to our country and es-
pecially as it relates to the security of the United
States. More recently, since assuming my duties
as Secretary of State, I have reappraised the
project with regard to the strengthening of our
economy.
I understand that since the subcommittee hear-
ings were held a year ago under the chairmanship
of Senator Hatch, you wish to confine the present
hearings to two aspects of the project: first, self-
liquidation of the seaway by tolls on traffic, and
second, the national defense aspect of the project
in the atomic age.
The Department of State supports the principle
of self-liquidation by means of tolls levied on
traffic using the new deep-water works. Section 3
of the Senate Joint Kesolution 111, which your
committee has under consideration, authorizes the
President to negotiate an agreement with Canada,
under the provisions of the boundary waters treaty
of 1909, for the establishment of a tolls system.
I am able to report that this matter has been dis-
cussed with Canadian Government officials and
we have been informed that "the Canadian Gov-
ernment is prepared to agree to the principle of
making the St. Lawrence seaway self-liquidating
by means of toll charges subject however to the
conclusion of arrangements satisfactory to both
governments for the implementation of this
principle".
Section 3 of the Senate Joint Resolution 111
^Made on May 28, 1947, at ht-arings before the Sub-
committee of tbe Senate Committee on Foreign Relations,
and released to tbe press on the same date.
1126
lays down certain principles concerning the tolls
system to be established. You will hear later the
testimony of witnesses who are better qualified
than I am to describe the detailed application of
the tolls system. There are, of course, technical
problems of complexity and magnitude. Section 3
provides that after investigation the two govern-
ments will negotiate during the construction of
the project a new agreement defining the details
of tolls and will submit it for the ai:)proval of the
le-,gislative bodies of both countries. In the case
of the Panama Canal, the matter of tolls was con-
sidered during the latter part of construction in .
1912, and a satisfactory system was developed just
before the opening of the Canal in 1914. There
does not appear to be any reason why an analogous
time table cannot be successfully followed in the
present case.
I should like, however, to point out that tolls
will not be levied on traffic using the existing 14-
foot canals on the Canadian side nor on naviga-
tion within the Great Lakes system nor on vessels
traversing the "Soo" lock and connecting channels.
The St. Lawrence seaway project is an interna-
tional enterprise. The support of the Department
of State for the principle of self-liquidation is
based in part upon the fact that comparable inter-
national projects such as the Panama Canal em-
body the tolls system.
This is a time of necessary financial retrench-
ment for the Govermnent of the United States, and
the St. Lawrence seaway project will cost a great
deal of money. It therefore seems to us in the
State Department that there is good reason for
having the cost of the seaway construction paid
Department of State Bulletin
over the years by the traffic using the new facili-
ties.
This brings me, Mr. Chairman, to the question
of the national defense aspect of the project. The
advantages are fourfold. First, the project would
make it possible for us to build and repair ocean-
going vessels in the relatively secure area of the
Great Lakes. Vessels of up to 25 feet draft and
10,000 tons or more would be able to use the seaway.
Vessels comparable to our Liberty ships of the last
war could be constructed at shipyards on the Great
Lakes.
The second advantage in the seaway project from
the point of view of national defense is that it will
provide a vital new line of communication in the
heart of the industrial area of the United States
and Canada, complementing the existing rail
transportation and port facilities of the East and
Gulf Coasts and serving incidentally as a reserve
route in case other routes should be crippled. This
route has the added advantage of protection from
underwater craft at least a third of the way into
the North Atlantic sea lanes.
Third, the project would create a tremendous
source of electric power in an area which has no
power development comparable to the TVA, the
Columbia and the Colorado Kiver projects. Apart
from the benefits which this would confer upon
industry in general throughout the northeastern
area of the United States, we have, as an exam-
ple, the part which the TVA and these Columbia
Valley projects played in the atomic-energy re-
search and development at Oak Ridge and
Hanford.
The Joint Chiefs of Staff in 1946 stated that it
was in the interest of national security to com-
plete the St. Lawrence project. Under Secretary
Acheson submitted at the hearings last year a let-
ter addressed on February 16, 1946, to the Secre-
tary of State by the Secretary of War communicat-
ing the opinion of the Joint Chiefs of Staff. I
should like to request your permission to include
a copy of tlie letter in the record. ( Copy attached. )
I have mentioned three of the four major advan-
tages which the seaway and power project would
bring to our national defense. The fourth advan-
tage flows from the other three and is implicit
tliroughout my statement to you today. I mean
the over-all economic and industrial advantajre to
the United States and to this continent which
would follow upon the development of one of the
June 8, 1947
THE RECORD Of THE WEEK
world's greatest waterways and one of the world's
greatest sources of cheap and dependable power.
The strength of the United States lies in its natural
resources as we have developed them. It is the
development of this power which has enabled us to
defend ourselves successfully.
I come finally to our joint plans with Canada
for the security of North America. You gentle-
men are aware of the effective cooperation which
existed between the two countries in the prosecu-
tion of the common war effort. The relationship
was best symbolized on the economic side by the
Hyde Park agreement, concluded by President
Roosevelt and Prime Minister King in 1941, to
mobilize the resources of the continent for the de-
fense of the hemisphere. You are aware also of
the establishment in 1940 of the Permanent Joint
Board on Defense, United States-Canada, to "con-
sider in the broad sense the defense of the north
half of the Western Hemisphere". On February
12, 1947, the two governments announced that each
had decided "that its national defense establish-
ment shall, to the extent authorized by law, con-
tinue to collaborate for peacetime joint security
purposes". These are the two outstanding sym-
bols of our relationship with Canada and of our
common concern for the security of the continent
In this connection I want to read the following
statement approved by the Permanent Joint Board
on Defense, United States-Canada, at a recent
meeting :
"7'Ae Sf. Lawrence Seaway. The Board con-
sidered the significance of the St. Lawrence sea-
way project from the point of view of the joint
defense of the United States and Canada. It was
recognized that the completion of a deep-water
navigation route from the sea to the heart of the
continent would provide additional facilities for
the movement of ships and essential supplies in
wartime and would also make possible the con-
struction of oceangoing vessels in inland areas.
Furthermore, the new source of power made avail-
able by the St. Lawrence project would greatly
increase the defense potential of the two countries.
It is therefore the view of the Board that the early
completion of this long-delayed enterprise on a
cooperative basis satisfactory to both governments
would directly contribute to the security of the
North American continent."
1127
LETTER TO THE SECRETARY OF STATE FROM THE SECRETARY OF WAR
February 16, IBJfi.
The Honorable
The Secretary of State.
Dear Mr. Secretary : In conformity with your
request »f November 5, 1945, the Joint Chiefs of
Staff have examined the matter of the Great
Lakes-St. Lawrence seaway and power projects
and their effect on the national security.
Tlie principal factors which influence the con-
sideration of these projects in the interest of the
national securitj' are that, in the event of a national
emergency, the}' would provide :
(a) Shipbuilding and ship-repair facilities, lo-
cated in a relatively secure area, capable of expan-
sion and of conversion for handling deep-sea ves-
sels, which could be used to supplement coastal
shipyards.
(6) An additional line of communication, nav-
igable by ocean shipping, which could, by diver-
sion of some cargo for overseas destinations, ease
the strain during wartime on rail transportation
and port facilities of the East and Gulf coasts.
This seaway could also serve as a reserve route
to be used in the event of interruption of other
routes by enemy action.
(c) A large source of cheap, dependable power,
which can be generated without the use of coal or
other critical combustibles and without use of
crowded rail or highway transportation facilities;
this power would be available in an area which,
during World War II, was a power-deficit area.
The foregoing factors prompted the Secretaries
of War and the Navy to support the jarojects in
1941 in the interests of national defense. In the
light of the experiences of World War II, in which
total mobilization became a near actuality, it is evi-
dent that the prosjiective increase in our war poten-
tial that would have been contributed by these
projects, had they been completed, would have been
of material assistance in prosecuting the war. It
is probable that attainment of success in any future
world conflict would require utilization of the ulti-
1128
mate production and transportation facilities of
the United States and possibly Canada. The Joint
Chiefs of Staff consider that it would be in the
interests of national security to complete projects,
such as these, which would have distinct military
advantages and would materially increase the in-
dustrial and transportation potential of the United
States.
Although the St. Lawrence Valley is a possible
route for invasion of eastern North America, the
Joint Chiefs of Staff consider that construction of
the proposed works would not facilitate invasion
by that route since the power plants, locks and
canals could readily be rendered unusable in the
event such action became necessary.
Sincerely yours,
Robert P. Patterson
Secretary of War
American Lecturers To Visit Other
American Republics
[Released to the preSB May 26]
Five outstanding United States professors and
one of America's most distinguished composers
have been named as the first visiting lecturers on
the staffs of cultural centers in the other American
republics under the Department of State's pro-
gram of cultural cooperation.
As well-known experts in various fields of the
humanities, the visiting lecturers will augment ex-
change professors who are sent regularly to lecture
posts in universities. During the period of their
assignment, they will act as members of the centers'
staffs, conducting classes, giving weekly lectures,
and participating in numerous outside activities
sponsored by the centers.
The first group of visiting lecturers includes:
Aaron Copland, composer and conductor, to be
sent to Rio de Janeiro and Buenos Aires, August
15-December 15; Arthur S. Alton, pi'ofessor of
Hispanic-American history at the University of
Michigan, now in Bogota and remaining until
August 1 ; Robert G. Caldwell, Dean of Humani-
Department of Stafe Bulletin
ties, Massachusetts Institute of Technology, to
Lima, June 1-October 1; Kenneth J. Conant,
professor of architecture, Harvard University, to
Rio de Janeiro and Buenos Aires, June 3-Septem-
ber 22; William D. Hesseltine, professor of his-
tory, University of Wisconsin, to San Jose and
Guatemala, June l-December 1; and Philip W.
Powell, associate professor of history, Northwest-
ern University, now in Quito and to be sent to
Santiago from August 1 to October 1.
The project, part of the Department of State's
cultural-relations program, is conducted jointly
by the Division of International Exchange of Per-
sons and the Division of Libraries and Institutes.
The cultural centers, which are over 50 percent
self-supporting, are managed by local boards of di-
rectors consisting of United States citizens living
in the respective countries and nationals of those
countries. The present program represents one of
the many ways in which the centers are contribut-
ing toward friendly relations with the peoples of
the other American republics.
Ecuadoran Engineer Visits U.S.
Luis A. Eguez, chief engineer of the construc-
tion department of the Caja de Pensiones of Ecua-
dor, a social welfare agency for employees of the
Government and banking houses of Ecuador, is
visiting the United States at the invitation of the
Department of State. He has been awarded a
grant-in-aid by the Division of International Ex-
change of Persons to enable him to confer with
colleagues and to observe Government and other
housing projects in the United States.
Mr. Eguez arrived in W^ashington May li) and
will remain in the Capital until June 9, after which
time he will spend approximately nine weeks visit-
ing cities in tlie East, the Middle West, the South-
west, and the Pacific Coast.
Special Deputies To Consider Disposi-
tion of Italian Colonies
[Released to the press May 29]
The Department of State has been informed that
the Soviet Government has agreed to the British
Government's suggestion that a meeting of Special
Deputies to the Foreign Ministers take place in
London to implement the provisions of article 23
and annex XI of the peace treaty with Italy con-
June 8, 1947
THE RECORD Of TH£ WEEK
cerning the disposition of the Italian colonies.
The Governments of the United States and France
have previously agreed to such a meeting and the
British Government has now proposed June 6,
1947, as the date for the first session.
It is the view of this Government that the actual
disposition of the colonies should not be discussed
at this preliminary meeting. It is felt that the
Dejjuties should, until such time as the peace treaty
comes into force, confine their deliberations to such
procedural matters as the formation of the Com-
mission of Investigation which is to be sent to the
Italian colonies. This Commission will ascertain
the views of the local populations, and supply the
Deputies with such other data as may be necessary
to their consideration of this problem. It is antici-
pated that the Deputies will also decide on their
future program, including the procedure for hear-
ing the views of other interested governments.
Lewis W. Douglas, the American Ambassador
in London, will be the United States Deputy.
John E. Utter, who was assigned to North Africa
during the war and who is intimately acquainted
with problems in that area, will be the United
States member on the Commission of Inves-
tigation.
Italian Blocked Accounts in U. S.
Partially Released
[Released to the press bj' the Treasury Department May 20]
The Treasury Department announced on May 20
that it is prepared, in appropriate cases, to grant
licenses for payments to creditors of business or-
ganizations and individuals in Italy from blocked
accounts in this country in which the debtors have
an interest.
In announcing this step, Treasury Department
officials pointed out that this announcement is a
necessary preliminary to the establishment of any
procedure for the release of Italian blocked assets
in tlie United States. In this connection, Treas-
ury Department officials referred to the letter of
April 15, 1947, from Acting Secretary of State
Acheson to Senator Vandenberg, which was sub-
sequently made public, wherein it was stated that
the policy of the United States is directed toward
the release or return of Italian property in the
United States wLidi is blocked or has been vested.
1129
THB RECORD OF THE WEEK
It was stated that, in general, an application for
such a license should be supported by a payment in-
struction or other acknowledgment by the debtor
executed after September 3, 1943, the date of the
armistice with Italy. If an application is based
on a court judgment, evidence should be submit-
ted that the debtor has received actual notice of
the proceedings and has had a reasonable oppor-
tunity to appear.
U.S.-ltalian Talks on Settlement of
War Claims
[Released to the press May 21)
As was agreed at the time of the visit to the
United States of Alcide de Gasperi, then Italian
Prime Minister, in January 1947, the Governments
of the United States and Italy have initiated dis-
cussions in Washington looking toward a general
settlement of financial and related problems aris-
ing out of the war. The Italian Government is
represented in these discussions by Ivan Matteo
Lombard©, Chief of the Italian Delegation, and
the United States Government by Willard L.
Thorp, Assistant Secretary of State for economic
affairs. Seymour Rubin, Assistant Legal Adviser
for economic affairs, has been appointed as Chief
Assistant to Mr. Thorp in these negotiations.
The discussions will include references to out-
standing governmental claims arising out of the
war, the question of disposition of Italian prop-
erty blocked and vested in the United States, the
satisfaction of claims of United States nationals
not specifically provided for in the treaty of peace
with Italy signed at Paris February 10, 1947, and
problems connected with prewar debts owing to
United States nationals.
Position on Possible Revision Agreement
on Defense of Greenland
STATEMENT BY THE SECRETARY OF STATE
[Released to the press May 29]
I am informed that the Danish Government will
probably publish either today or tomorrow the text
of a note requesting the United States to enter into
consultations in connection with the agreement
regarding the defense of Greenland concluded
with the Danish Minister in Washington on April
1130
9, 1941. This agreement, at a time when Denmark
was powerless because of the Nazi occupation to
act in its own behalf, made it possible to preserve
Danish sovereignty over Greenland and prevent
the Nazis from gaining a foothold in the Western
Hemisphere. German detachments which had
already landed in Greenland were expelled, and
adequate defense installations were constructed by
the United States on the hitherto defenseless
island. In taking this step, the United States
acted with scrupulous respect for Danish sov-
ereignty and in the interest of Denmark as well
as of this country. The 1941 agreement was unani-
mously ratified by the Danish Parliament follow-
ing the liberation of Denmark in 1945. Greenland
remains of the greatest importance as a link in
the defensive system of the United States and of
the Western Hemisphere.
We have informed the Danish Government that,
as stated by Secretary Byrnes to the Danish For-
eign Minister in December 1946, we are ready
actively to explore with his government at any
time the basis of some new agreement in keeping
with the letter and spirit of the Charter of the
United Nations which would take fully into ac-
count Danish sovereignty over Greenland and
legitimate United States and hemispheric defense
requirements.
France Welcomes Additional Grain
Allocation From U.S.
[Released to the press May 22]
The Department of State received on May 22 a
communication from the French Embassy refer-
ring to the additional allocation of 150,000 tons of
corn which was made to France on May 15, 1947,
to assist the latter in meeting its critical grain
shortage. The note states that this supplementary
allocation, added to the more than 500,000 tons
of grain already allocated to France within the
last several months, has been received by the
French people with the greatest possible satisfac-
tion. The French Government is most grateful
for the sjTupathetic understanding demonstrated
by the United States with respect to the situation |
in France and for the constant effort of American
services to permit the delivery of the grains thus
allocated.
Department of State Bulletin
Netherlands-United States War Accounts Settlements
A complete and final settlement of war accounts
between the Netherlands and the United States was
si<rned in Washington on May 28 by Secretary of
State Marshall and Dr. A. Loudon, the Nether-
lands Ambassador. The settlement, which pro-
vides for payment by the Netherlands of $G7,500,-
(W) over a period of years, covers lend-lease and
reverse lend-lease, the United States share of civil-
ian supplies furnished by the Allied armies to the
Netherlands as military relief, and claims of each
Government against the other which arose out of
the war. It also includes new terms of payment
of existing credits of $i;5(),()00,(H)() for tlie purchase
of United States surplus property abroad.
The following statement by the Secretary of
State was released to the press after the signing
of the settlement documents :
"The Dutch Merchant Marine and the Dutch
Navy carried on valiantly from the moment of Ger-
many's attack. Inside Holland, although the
country was quickly overcome, the underground
remained in contact with Great Britain, contribut-
ing highly important intelligence to the Allied
cause and leading a steady civilian resistance to the
German occupier. Toward the end of the lighting
in Europe, when General Eisenhower appealed to
tlie peojile of Holland to obstruct the Geiman
Army by acts of sabotage, they responded magnifi-
cently by paralyzing the railways through a gen-
eral strike at great personal risk. In these and
other ways the Dutch people helped significantly
to hasten the Allied victory."
On the occasion of the signing of the Nether-
lands-United States War Accounts Settlements.
Dr. A. Loudon recalled on how grand a scale the
lend-lease program was conceived and carried out,
iiow mighty a contribution it was to the common
war effort, yet without causing any disturbance
to the financial equilibrium between the Allies.
He praised the excellently organized and un-
stinted importation into the Netherlands of relief
goods, shortly before and after the liberation by
the Allied armies, as an example of Allied coop-
June 8, 7947
eration and solidarity, by which the Netherlands
was saved from a dire calamity. Also in this pro-
gram, he stated, the United States was the greatest
supplier.
The Ambassador further declared that, in con-
sequence of the liberal terms of the agreement just
entered into by the two countries, the people of the
Netherlands will not remember it as an arrange-
ment for oppressive payments during a great num-
ber of years but will cherish its memory with last-
ing and unmixed feelings of gratitude.
Following the pattern of most previous settle-
ments, the United States asks no payment for pre-
V-J Day lend-lease supplied to the Netherlands
armed forces or for the relatively small amount
of supplies and services for civilian use consumed
before V-J Day. These together amounted to
approximately $118,000,000. Also, in view of the
other terms of the settlement, the United States
is asking no payment for approximately $190,000,-
000 worth of civilian supplies furnished as military
relief in the Netherlands and the Netherlands
Indies. These supplies were provided as a matter
of military necessity, mostly as part of a joint
Allied program, in order to prevent disease and
unrest behind the lines. On its side, the Nether-
lands is asking for no payment for reverse lend-
lease before V-J Day valued by it at approxi-
mately $37,000,000.
The net amount of $67,500,000 to be paid to the
United States includes payment in full for lend-
lease supplies held by the civilian branches of the
Netherlands Government on V-J Day and sup-
plies and services furnished subsequently in the
lend-lease "pipeline". The agreement does not af-
fect the obligation of the Netherlands Government
to return 56,737,341 ounces of lend-leased silver
bullion valued at approximately $40,000,000 at the
time of transfer.
The United States will make payments totaling
about $25,000,000 on certain claims and other
amounts agreed to be due as listed in the settle-
ment agreement. About $21,800,000 of this total
1131
THE RECORD OF THE WEEK
will be paid within the next few days, and simul-
taneously the Netherlands will make a down pay-
ment of $19,500,000 on the $67,500,000 due under
the settlement. It is contemplated that a further
payment on the $67,500,000, amounting to approx-
imately $13,700,000, will be made in Netherlands
currency for educational programs agreed with
the Netherlands or in grounds and buildings for
our diplomatic mission and consulates in Nether-
lands territory.
The remaining $34,300,000, plus any amount of
the $13,700,000 not taken up in Netherlands cur-
rency or real property for the educational and
buildings programs, is payable in dollars in 30 an-
nual instalments. The first instalment of princi-
pal is payable July 1, 1951. Interest under the
settlement is at 2 percent, and the first payment of
interest will fall due July 1, 1947. These same
credit terms are made applicable to the existing
$130,000,000 surplus-property credits.
The two Governments have agreed upon pro-
cedures for payment and settlement of financial
obligations of the United States armed forces in-
curred while in Netherlands territory. As jjart of
the settlement Netherlands currency holdings of
the United States armed forces are being turned
over to the Netherlands Government.
Each Government reserves the right of recap-
ture of certain arms furnished to the other on lend-
lease or reverse lend-lease.
In connection with the settlement and in view
of the undertakings of the Netherlands, includ-
ing payment of the amounts specified in the agree-
ment, a separate arrangement was concluded on
May 28 by the United States, the United Kingdom,
and the Netherlands under which the United
States waives a claim against the United King-
dom for approximately $1,400,000 arising from
shipping matters, and the United Kingdom waives
a corresponding claim in the same amount against
the Netherlands.
In view of the settlement the Netherlands has
withdrawn certain claims against the United
States, totaling more than $3,000,000, for addi-
tional compensation for property of the Nether-
lands Government requisitioned for war purposes
in the United States in 1917 and 1918.
For texts of the settlement agreement and re-
lated papers, see Department of State press re-
lease 435 of May 28.
1132
Proclamation of the 1946
Sugar Protocol
[Released to the press May 28)
The President on May 27, 1947, proclaimed the
protocol of August 30, 1946, prolonging for one
year after August 31, 1046, the international agree-
ment regarding the regulation of production and
marketing of sugar signed at London May 6, 1937.^
The protocol was signed on behalf of the Govern-
ments of the United States of America (with a
reservation ".subject to ratification"), the Union
of South Africa, the Commonwealth of Australia.
Belgium, Brazil, Cuba, Czechoslovakia, the Do-
minican Republic, the French Republic, the United
Kingdom of Great Britain and Northern Ireland,
Haiti, the Xetheilands, Peru, the Republic of the
Philippines (with a reservation ''subject to ratifi-
cation for and in the name of the Republic of the
Philippines"), Poland, Portugal, the Union of
Soviet Socialist Republics, and the Fedei-al Peo-
ple's Republic of Yugoslavia. The protocol was
approved by the Senate on April 24, 1947, and
was ratified by the President on May 7. The in-
strument of ratification by the United States was
deposited in the archives of the British Govern- _
ment on May 20, 1947. |
Under the provisions of articles 1 and 2 of the
protocol, the international agreement of May 6,
1937, regarding the regulation of production and
marketing of sugar is continued in force for one
year from August 31, 1946, with the exception of
chapters III, IV, and V of the agreement, which
are inoperative during that period. Article 3 pro-
vides that the signatory governments recognize
that revision of the agreement is necessary and
should be undertaken as soon as the time appears
opportune, with the existing agreement constitut-
ing a basis for discussion of any such revision. It
is provided also in article 3 that, for the purpose
of such a revision of the agreement, due account
shall be taken of any general principles of com-
modity policy embodied in any agreements con-
cluded under the auspices of the United Natioiis.
Article 4 provides that before the conclusion of
the period of the one year specified in article 1 the
contracting governments will, if the steps contem-
plated in article 3 have not been taken, discuss the
question of a further renewal of the agreement.
' S. Exec. K. SOtli Cons., 1st st'ss. .See also Biitj.etin of
Mar. 23. ItHT. p .552.
Department of Stale Bulletin
Czechoslovakia Ready To Discuss
Nationalization Compensation Claims
[Released to the press May 22]
On February 19, 1947, the Department of State
outlined the various procedural steps it had been
advised were necessary to obtain compensation
with respect to enterprises nationalized in Czecho-
slovakia.' The Department has been further ad-
vised that representatives of the Czechoslovak
Government are now prepared to discuss settle-
ments in Praha directly with the representatives
of the American claimants, even if the above-men-
tioned procedural steps have not as yet been taken.
THE RECORD OF THE WEEK
Appointment of Members to
IVSilitary Tribunal
On May 31, 1947, by Executive Order 9858 (12
Federal Register 3555), the following persons
were appointed to serve on military tribunals
established by the military governor for the United
States zone of occupation within Germany :
Chai-les B. Sears, formerly Associate Judge of
the Court of Appeals of New York ; William C.
Christianson, formerly Associate Justice of the
Supreme Court of Minnesota ; and Frank N. Rich-
man, formerly Judge of the Supreme Court of
Indiana, as the members; and Richard Dillard
Dixon, formerly Judge of the Superior Court,
North Carolina, as the alternate member.
Exchange of Students and Teachers Resumed
The first large-scale exchange of students and
teachers between the United States and Europe
since the war will begin on June 6 with the sailing
of the first of two ships especially allocated for this
purpose.
The exchange was arranged by the Division of
International Exchange of Persons (lEP) of the
Office of International Information and Cultural
Affairs of the Department of State. It is the first
time in histoi-y that such a large-scale educational
interchange has been undertaken. lEP is cooper-
ating with the Institute of International Educa-
tion, a private organization in New York, in
arranging for the educational interchange. Since
the individuals traveling to and fi-om Europe will
pay their own expenses and the Institute is bearing
the administrative cost of the project, this vast
undertaking will be carried out at no cost to the
American taxf^ayer. Inciuiries concerning this
project should be directed to the Institute head-
quarters at y West 45th Street, New York City.
The two vessels, the Marine Jumper and the
Maritie Tiger, each capable of carrying 925 pas-
sengers, will make four round trips to Europe
during the summer. They will carry about 7,000
students and teachers from more than 35 organiza-
tions who plan to study abroad and will bring
many other European students and teachers for
studies in the United States.
Exchanges of students between the United
States and Europe, which were completely dis-
rupted during the war, were resumed on a small
scale last year. The two ships were allocated this
year by the United States Maritime Commission
after a White House conference arranged by lEP
with John R. Steelman, assistant to the President.
Groups sailing on these ships will include stu-
dents and teachers sponsored by the American
Friends Service Committee, the World Conference
of Christian Youth, the Girl Scouts, the World
Federation of Education Associations, the Uni-
versity of Minnesota Summer Project, the Harvard
Student Council, the Fontainebleau School, and the
Yale Department of Education. A number of in-
ternational scientific conferences will be made pos-
sible as a result of this project; among them are
tlie International Congress of Microbiologists and
the Fifth International Congress of Pediatrics.
A total of about 450 teachers of the World Fed-
eration of Education Associations will attend
seminars in England, France, Denmark, and
Switzerland this summer. About 250 members of
the Youth Hostels organization will visit Belgium,
the Netherlands, France, and the United Kingdom
to rebuild hostels destroyed during the war.
Later sailings of the two vessels will include
' Bulletin of Mar. 2, 1947, p. 397.
June 8, 1947
1133
THE RECORD OF THE WEEK
delegations to the World Conference of Christian
Youth to be held at Oslo, students of the University
of Minnesota for field studies in four countries of
Europe, and a delegation from the Student Council
of Hai-vard University to attend the first postwar
summer seminars at Salzburg, Austria. Most of
the groups include foi-mer members of the armed
services who are studying under the so-called "GI
bill of rights".
The Division of International Exchange of Per-
sons, one of the five operating divisions of OIC,
is responsible for stimulating and facilitating stu-
dent and teacher exchanges to promote interna-
tional understanding. In addition to aiding
private organizations in the exchange of students
in all parts of the world, lEP arranged for the
governmental exchange of specialists and techni-
cians between the United States and the other
American republics. On May 6, 1947, Repre-
sentative Karl E. Mundt, Republican, of South
Dakota, introduced a bill, H. R. 3342, the "United
States Information and Educational Exchange
Act of 1947", to extend the exchange of persons
to other parts of the world.
Voice of America Closes Relay Station in Algiers
BROADCAST OF FINAL PROGRAM
[Released to the press May 31]
Final programs of the Voice of the United
States of America over United States Government
transmitters in Algiers were broadcast May 30,
bringing to an end a wartime agreement made be-
tween the two countries after the Allied landings
in North Africa in 1942.
The final program included statements by Henri
Bonnet, French Ambassador to the United States ;
William Benton, Assistant Secretary of State for
public affairs; and William R. Tyler, Assistant
Director of the Department's Office of Interna-
tional Information and Cultural Affairs, in charge
of areas. Ambassador Bonnet was Commissioner
of Information for the French Government at the
time the Algiers relay was opened in June 1943,
and Mr. Tyler was in charge of the relay station
for the United States Government. Ambassador
Bonnet and Mr. Tyler spoke in French.
Ml-. Benton, in commenting on discontinuance
of the Algiers relay, pointed out that it had been
established as a military station in time of war
with a tacit agreement with the French Govern-
ment to withdraw after the end of the war. Mr.
Benton said that the relay had been operated since
the war through the courtesy of the French Gov-
ernment, while the United States was making sur-
veys for the establishment of other peacetime relay
points. He expressed deep appreciation for the
cooperation of the French Government in permit-
ting relays of the Voice of America through Al-
giers and also over the French national radio
network.
The 1948 budget of the Office of International
Information and Cultural Affairs included a re-
quest for $6,168,000 for the erection of two new
radio relay centers replacing those at Algiers and
to step up the power of Voice of America broad-
casts to the Balkans and Middle East. Engineer-
ing surveys are considering other points for the
establishment of new relay stations but negotia-
tions have not yet been undertaken.
The Algiers station went on the air on June 14,
1943, as the United Nations Radio in Algiers and
played an important role in the psychological
warfare preceding the surrender of Italy and the
Allied landings in Normandy and southern
France. The three transmitters at Algiers formed
an important link between the Allied forces and
the resistance forces in France. General instruc-
tions, directives, and secret messages to the French
forces of the interior were relayed through Algiers.
Since the end of the war programs of the Voice
of America have been relayed in 10 languages over
two short-wave transmitters at Algiers for 4%
hours daily. The third transmitter, which was for
medium wave, was recently discontinued.
The 10 languages relayed through Algiere were
Austrian, Bulgarian, Czechoslovak, English,
French, German, Italian, Polish, Rumanian, and I
Serbo-Croatian. Programs in these languages
will now be relayed through transmitters at
Munich in addition to the existing relays over
facilities of the British Broadcasting Corporation.
113^
Deparfmenf of State Bulletin
STATEMENT BY AMBASSADOR BONNET
"The Amei'ican and French radio stations at
Algiers bring back moving recollections to me.
I'hey recall the time when, from a liberated North
Africa, not far distant from a France occupied by
the enemj', not far distant from the Frenchmen
anxiously awaiting the arrival of their brothers
and Allies, we worked eagerly to establish contact
with them. We were then hastily organizing the
radio services which were to enable us to speak to
them. To the insufficient equipment we found on
the spot was soon added equipment from the
United States. For 15 months, months which we
knew represented for France a period of patient
waiting, of suffering, of alternate hopes and dis-
appointments, the American and French radio
stations, inspired by the same faith, were to work
together in comradeship and confidence, doing
their best to answer the call which, at the peril
of their lives, members of the French Underground
were sending them from France. Algiers, capital
of Free France, exemplified what cooperation
should be between allied peoples.
"This great lesson will not be lost. It is with
regret that I see this daily work, accomplished side
by side, come to an end. However, we shall doubt-
less find occasions to renew it in another form but
with the same determination to bring about an
understanding between the peoples of France and
America, so that they may know each other better
and may appreciate each other more fully every
day. I know that we can rely on Mr. Benton, the
American Assistant Secretary of State, and on the
powerful American radio companies to strengthen
the bonds uniting our two nations. May our two
countries set an example for the whole world, and
may they contribute to make radio what it can and
should be — a powerful instrument of friendship
and peace."
STATEMENT BY ASSISTANT SECRETARY BENTON
"Nearly four years ago the first radio program
was transmitted over the American broadcasting
facilities in Algiers.
"We started building this new station shortly
after the North Afi-ican landings, and it was just a
few months later — in June 1943 — that the first of
the three transmitters was ready.
"The day when the station first went on the air
was June 14 — United Nations Day — and the sta-
tion was called United Nations Radio.
"This date and this name are significant, for it
is in the spirit of the United Nations in wartime —
and, after victory, in peacetime — that its broad-
casts have been conceived and carried out.
"United Nations Radio in Algiers played an im-
portant part in the war years:
"It told the enemy of the growing and inexorable
power of the Allies, foretelling the victory which
swept away Hitler's dreams of conquest.
"It told our friends awaiting liberation on the
soil of Europe of the progress of our arms.
"In the weeks before and after the successive
Allied landings it conveyed militai-y instructions
and advice to the gallant soldiers of the resistance,
striking at the enemy from within.
"Since the war, the Algiers Radio has continued
to relay broadcasts from the United States in sev-
eral languages to the continent of Europe.
"Thus I believe that it has played an important
role in bringing to a numerous and varied audi-
ence news and information about the United States
and its position in world affairs.
"I am sorry that it has not proved possible to
come to an agreement so that these relays from
Algiers would continue after May 31, but you will
continue to hear many of these programs directly
from the United States and over other relay facili-
ties, and I am confident that ways will be found
to bring to the radio audiences of Europe an in-
creasing volume of news about the United States;
the age of mass communication between the peoples
of the earth has only just begun.
"In conclusion I wish to pay tribute to Monsieur
Bonnet, Ambassador of the French Republic in
Washington, who was Commissioner of Informa-
tion in Algiers in 1943. His cooperation and ac-
tive assistance contributed greatly to the estab-
lishment and success of the United Nations Radio
in Algiers and laid the foundation for the very
friendly relations which we enjoy with the French
Government's radio in France today."
J«ne 8, 1947
1135
THE RECORD Of THE WEEK
German War Documents Project: Par-
ticipation of Frencli Government
[Released to the press simultaneously in
London and Washington May 19]
French scholars will participate in the task of
selecting for publication captured documents on
German foreign policy, the Department of State
and the British Foreign Office announced on May
19. The French Government, like the British and
American Governments, has agreed that the record
of Gennan foreign policy preceding and during
World War II should be established by publication
of German Foreign Office documents and other
related papers and that the evidence should be
collected for publication by outstanding historians
of high reputation. The three governments are
agreed that the historians should be guided in
their task exclusively by the highest standards of
scholarly objectivity. The governments are put-
ting all German records in their possession at the
disposal of the editors, and will allow the editors
complete freedom to choose those documents
needed to understand German foreign policy.
The Anglo-American editors decided last De-
cember to publish first the volumes covering the
years 1937-^1. Since the German Foraign Office
records for these years are vast in bulk, covering
hundreds of thousands of pages, the selection of
material for publication is not yet completed.
The Anglo-American editors have gone far
enough, however, to be certain that the captured
German archives are substantially complete. In
the closing days of the war, the Nazi leaders tried
to destroy the evidence, and some files were burned.
However, some of the Germans who were ordered
to burn dangerous files of papers disobeyed their
instructions. In this way Ribbentrop's private file
and the records of Hitler's talks with foreign
statesmen were preserved. Moreover, because of
the complex filing system of the German Foreign
Office, it was almost impossible to destroy all copies
of a document.
The high traditions of French scholarship will
be of great assistance in this task of establishing
the history of German foreign policy from records
written by the Germans themselves. The French
Government has agreed to accept the work already
accomplished and the publication policies already
established by the Anglo-American editors. The
1136
participation of French scholars will therefore
entail no loss of time in the completion of the
publication. In June there will be a meeting of
the American, British, and French historians in
Berlin to complete the editorial plans.
First American Airplane
Lands in Yemen
[Released to the press May 29]
Early in the morning of May 26, the first Ameri-
can airplane landed at Sana'a, the capital of Ye-
men. Although a small number of British,
French, and Italian airplanes visited Yemen dur-
ing the 1930's, this was the first time an American
plane has landed anywhere in the Kingdom.
Furthermore, it is the first plane of any nation-
ality to land at Sana'a in the last eight years, for
the airstrip which formerly existed on the plain to
the soutliwest of the city was plowed up before the
last war. More than 2,000 Yemeni laborers have
been working for the past three months with
handscrapers, baskets, and primitive horse-
drawn equipment to make this airstrip serviceable.
Sana'a is a city of about 70,000 inhabitants and is
situated in the mountains at an altitude of 7,600
feet, 200 miles east of the Red Sea.
The plane which landed on May 26 was a C-47
assigned to Col. William K. McNown, the Ameri-
can military attache at Cairo. Harlan B. Clark,
second secretary of the United States Legation at
Jidda, who has been to Yemen more than any other
United States Government official, was in the
plane at the time. As soon as it was established
that the airstrip was operational, the plane flew
back to Aden and returned with Harold Glidden,
a cultural-relations officer with the Department of
State, and Seif El Islam Abdulla. Prince Abdulla
went to Sana'a to discuss with his father, the Imam
Yahya, the details of the $1,000,000 surplus-prop-
erty agreement which the Prince signed last week
witli United States Government officials in Cairo.
The plane trip from Aden to Sana'a took two
hours, in contrast to the 11 days required for the
trucks accompanying the special United States
diplomatic mission to Yemen, under Colonel Eddy,
which went up to the Yemeni capital last year.
Department of State Bulletin
Air-Transport Agreement With
Union of Soutli Africa
The United States and the Union of South Af-
rica signed a bilateral air-transport agreement on
May 23, 1947. The agreement was signed by Min-
ister Thomas Holconib on behalf of the United
States Government and by Field Marshal Jan
Christiaan Smuts on behalf of the Government of
the Union of South Africa.
The agreement^ is generally of the standard
form concluded by the United States with other
governments and is patterned after the air-trans-
port agreement between the United States and
France. Under its terms Pan American Airways
will be authorized to serve Johannesburg on its
route from the United States via the Azores and
the west coast of Africa, and to serve Capetown
on the route from the United States via Natal,
Brazil, and Ascension Island.
In addition to the text of the agreement, the two
Governments concluded an exchange of notes
which amplifies the terms of article IX providing
for the method of handling disputes which may
arise under the agreement. By the terms of the
THE RECORD Of THE WEEK
notes, both Governments agree that "in the event
either contracting party should find itself unable
to carry out the terms of an advisory report which
recommends rectifying action on the part of both
contracting parties, the contracting party which
finds itself unable to carry out the terms of such
an advisory report shall so notify the other con-
tracting party which, upon receipt of such notifica-
tion, will not necessarily be bomid to carry out the
terms of such an advisory report."
ILO Delegation — Continued from page 1111
(b) financial regulations; (c) the ILO Industrial
Committee program; and {d) plans for regional
meetings. The Governing Body consists of rep-
resentatives of 16 governments, 8 employers' rep-
resentatives, and 8 workers' representatives.
As the executive body of the International La-
bor Organization, the Governing Body meets four
times a year to receive reports on the activities of
the Office, to outline the future work of the Office,
and to prepare the agenda for the annual confer-
ence sessions. The 101st Session of the Governing
Body was held at Geneva in March 1947.
Position of Department of State on Proposed
Wool Import Duty
STATEMENT BY THE SECRETARY OF STATE
[Released to the press May 29]
The State Department is opposed to the House
amendment to the wool legislation now imder con-
sideration. Wool is the key conniiudity in the
Geneva negotiations to expand trade through the
reduction of trade barriers. It is by far the most
important export and source of dollars of Aus-
tralia, New Zealand, and the Union of South
Africa. We cannot, expect them to cooperate with
us in reducing trade barriers if we increase duties
on their wool. Without their participation, the
remainder of the British Commonwealth cannot, as
a practical matter, join with us in a mutually
advantageous program.
Wool is also a symbol of our intentions in foreign
trade. If we adopt higher tariffs in the present
bill, other nations will conclude we cannot or will
June 8, 7947
not live up to our professed policy of international
cooperation. They will turn to trade restrictions
and bilateralism to protect themselves. On the
other hand, expanding trade between the United
States and other nations will not only help us sell
our surplus products but also will allow them to
earn the dollars th&y need to reconstruct their econ-
omies and to protect their democratic institutions.
The wool bill as passed by the Senate would pro-
tect the wool industry in the United States by
direct payments from the Commodity Credit Cor-
poration. The indirect cost of these payments to
the public as taxpayers would be far less than the
cost of the increased tariff provided by the House
amendment to the public as consumers.
' For text of agreement and notes, see Department of
State pre.ss release 430 of May 23, 1947.
1137
Need for Extension of Certain War Powers
THE PRESIDENT'S MESSAGE TO THE CONGRESS
[Released to the press by the White House May 23]
To the Congress of the United States:
In March of this year the Congress passed and
I approved a bill known as the First Decontrol
Act of 1947, extending for three months a few
of the powers originally granted in the Second
War Powers Act.' This extension was authorized
to enable the Congress to make a further review of
the specific controls needed during the coming
year.
Since the enactment of this law, the interested
departments have reexamined the need for con-
tinuation of these powers. Their review shows
that it is still essential to maintain certain limited
materials conti'ols, in order to prevent harm to
our own economy and give concrete support to
our foreign policy.
Since V-J Day, American industry, agriculture
and labor have established notable production rec-
ords. If production abroad had reached similar
heights, no materials controls at all would be
needed today. But the progress of world recon-
struction has been necessarily difficult and slow.
In a few respects the United States has been ad-
vei-sely affected by this delay, and therefore, in
a few instances, controls over certain impoiled
commodities are still needed. However, any
adverse effects suffered by us are slight in com-
parison with the tragic conditions of life faced
by most countries of the world today. It is pri-
marily because of these conditions, with their
enormously important political and social reper-
cussions, that we must still retain a very limited
portion of our wartime powei's over materials.
The remaining powers which it is necessary to
retain fall into two groups :
(1) Allocation and priority powers to maintain
the stability of our economy.
{a) While our economy is still hampered by the
lack of a number of imported materials, there ai*e
only a few in which the lack is so serious and the
'See Bulletin of Feb. 23, 1947, p. 362, and Apr. 13,
1947, p. 676.
1138
importance so great that continued controls are
required. The need in these cases is well known.
Specifically, it is necessary to continue the
power to allocate the following imported mate-
rials: tin and tin products, manila and agave
fibres and cordage, antimony, cinchona bark,
quinine and quinidine. Except in the case of tin
products, where the allocation of tin plate is also
essential to the solution of world food problems,
the continuation of these controls is solely for the
purpose of assisting our own industry and
agriculture.
(6) As a corollary to the above, it is also neces-
sary to continue the power to issue export prior-
ities for materials needed to inciease the produc-
tion abroad of products that we urgently need in
this country. This is a matter of direct and
immediate self-interest.
(2) Allocation and priority powers needed to
carry out our foreign policy and to assist in world
reconstruction.
{a) Foods. Our own food production has
leached great heights, and our ov,n food supplies
are excellent. In contrast the food situation
abroad continues to be desperate. For that reason
we are actively participating in the International
Emergency Food Comacil, which is a noteworthy
example of practical international economic co-
operation. Our participation in this activity con-
forms with our national ideals and interests. But
participation is not merely a matter of words.
We must be able to take the steps necessary to
make certain that we do not add to the hunger of
other peoples by importing more than our agreed
share of scarce foods. I recommend, therefore,
continued authority to maintain import controls
on fats and oils, and rice and rice products.
(b) Fertilizer. The world fertilizer situation
is similar to, and is directly related to, the world
food situation. While our own fertilizer produc-
tion and consumption have risen spectacularly
since the pre-war period, supplies available to
foreign countries have fallen sliarply. This has
resulted in retarded agricultural recovery, loss of
Department of State Bulletin
food production and consequent mabiutrition over
widespread areas. The lack of fertilizer is par-
ticularly acute in the case of nitrates. It is there-
fore essential that there be continued authority to
restrict imports and to issue priorities for export
of nitrogenous fertilizer materials.
(c) Industrial matenah. In general our sup-
ply of industrial products and materials has
reached the point where delays in production and
delivery are no longer crucial. The pipelines are
full, or are filling up, and no general use of alloca-
tion powers is needed. But economic and political
conditions in many other coimtries are so critical
that it is necessary to continue the power to issue
export priorities in special cases for key industrial
items that are vitally required for reconstruction
and rehabilitation. In most countries, supplies of
industrial materials and products are still far
.short of minimum essential levels. Entirely apart
from the use of priorities, the United States is
furnishing substantial quantities of industrial
equipment and supplies so urgently needed to
reactivate the economies of these countries. How-
ever, gi-eat damage can be done by inability to
obtain an occasional machine, or machine parts
needed to complete a progi-am or project. It is
in such cases that priority assistance is needed.
The Congi-ess has already recognized the im-
portance of supporting our foreign policy with
financial assistance. Financial assistance alone,
without occasional priority backing, may be useless
in instances where speedy aid in concrete form is
essential. The use of the priority powers that I
am recommending would be limited to cases certi-
fied by the Secretary of State to be of high public
importance and essential to the successful carrying
out of the foreign policy of the United States.
In this message I have not considered it nec-
essary to discuss certain powers originally derived
from the Second War Powers Act but now cov-
ered by separate legislation, i.e., the Sugar Act,
the Rubber Act and the Patman Act. I have also
omitted reference to the great importance of con-
tinued authority to allocate the use of transporta-
tion equipment and facilities by rail carriers.
This matter is covered by separate bills, H.R. 3152
and S. 1297, now pending before the Congress.
Prompt action on these bills is urgently needed.
Similarly, the Congress now has under considera-
tion an extension of the Export Control Act. It,
June 8, 1947
JHB RECORD OF THE WEEK
too, is essential in implementing our foreign
policy. I also urge prompt action on this bill.
The further extension of the Second War Pow-
ers Act in the limited form described above is of
direct interest to our own economy and is in-
dispensable in supporting our international
policy. The powers that I have outlined are the
minimum needed to accomplish these ends. I
therefoi-e recommend that the Congress enact
legislation to extend these powers for a period
of one year.
Harrt S. Truman
The Wkfte House,
May 32, 19^7
''Protection of Foreign interests"
The Department of State released on May 24
a 331-page publication entitled Protection of
Foreign Interests: A Study in Diflomatic and
Consular Practice (publication 2693) by William
McHenry Franklin, now Assistant Chief in the
Division of Historical Policy Research. The book
represents a comprehensive analysis of the time-
honored but little understood international custom
through which, in times of peace as well as war, the
diplomatic or consular officers of one power may
be called upon to extend their protection to the
interests of a foreign state within the territoi-y of a
third jiower.
Wliile some consideration is given to each of the
three parties to this trilateral relationship — the
protecting power, the protected power, and the
local power — the problem is presented primarily
from the point of view of the protecting power.
And, although reference is frequently made to
the practices of other countries as they have influ-
enced the development of the custom, most of the
material is drawn from the experience of the
United States.
There are 11 appendices containing ready-refer-
ence lists of countries whose interests have been
protected by the United States at various periods,
of powers which have protected enemy interests
within the United States, and of foreign interests
protected by Switzerland, Sweden, and Spain
during the recent war.
The book will be sold by the Superintendent
of Documents, Government Printing Office, Wash-
ington 25, D.C., for $1.50 a copy with a 25 percent
discount to purchasers of 100 copies or more.
1139
Sales and Transfer off Non-Demilitarized Combat Materiel '
PART I
Sales of Surplus Non-Demilitarized Combat Materiel January 1, 1947, and Reported Through May 9, 1947
Country
Belgium
Brazil
Chile
Colombia
France. . . .
Guatemala . .
Netherlands .
Peru ....
Philippines
Description of matfiriel
Remaining ammunition in Belgium, approximately
5.5,000 tons. Belgium to demilitarize ammunition.
Spare parts for 30 P-47D planes
Spare parts for 70 B-25J planes
10,665 bayonets; 13 cars, armored; 5 cars, half-track;
5,148 carbines, cal. .30; 55 aiming circles; 13 range
finders; 57 57 mm guns; 452 maeh. guns (Brg) ; 300
submach. guns; 54 105 mm how.; 12 155 mm how.;
2,659 launcher grenades & rockets; 81 60 mm
mortars; 57 81 mm mortars; 685 mounts, mach.
gun; 1,231 pistols cal. .45; 209 pyro projectors;
405 auto, rifles cal. .30; 6,361 rifles U. S. cal. .30.
6 LCI (L) (Infantry) ; 8 LCVP's (vehicles & person-
nel); 8 LCPR's (personnel).
LSM-113; LSM-295; LSM-400; LSM-417 (medium)
1,720 bayonets; 612 carbines, cal. .30; 6 aiming circles,
Ml ; 2 range finders; 6 57 mm guns; 60 mach. guns;
42 submach. guns; 8 how.; 382 launcher grenades
& rockets; 30 mortars; 100 mount mach. guns; 180
pistols; 38 pyro projectors; 90 auto, rifles; 1,066
rifles cal. .30; 1,002,100 rds. cal. .30 ammo;
39,600 rds. cal. .45 ammo; 131,190 rds. cal. .50
ammo; 1,102 rds. 57 mm ammo; 1,008 rds. 60 mm
ammo; 663 rds. 81 mm ammo; 3,418 rds. 105 mm
ammo; 2,670 grenade rifles; 8,588 2.36" rockets.
Combat aircraft: 3 ea. B-25J planes; 8 ea. P-47D
planes; 2 ea. OA-lOB planes, plus spare engines &
spare parts for above planes.
One patrol frigate
LST-177, -223, -508 (three LST's) demilitarized . .
275 rds. 75 mm ammo for weapons furnished under
lend-lease.
6 minesweepers
Pianos, 25 ea. P-47D, 3 ea. OA-10.\, 8 ea. B-25J
plus spare engines and spare parts for above
planes.
199,000 rds. cal. .30, 56,840 rds. cal. .50, 991 rds.
37 mm, 1,718 rds. 105 mm ammo for weapons fur-
nished luider lend-lease.
240 pistols .45 cal.; 10 carbines .30 cal.; 2 submach.
guns .45 cal.
Procurement cost
$38, 500, 000
418, 320
1, 183, 435
1, 787, 741
1, 813, 590
2, 854, 804
377, 496
2,013,448
2, 352, 600
4, 438, 764
2,519
3, 900, 000
(approx.)
5, 057, 846
42, 372
9,519
price
$200,000 plus one
half of profits
on resale as
scrap.
33, 160
102, 406
183, 240
102, 661
142, 740
36, 470
182, 248
164, 675
221, 938
126
360, 000
418, 935
2, 990
9,519
1 The above
effected by the
press on May 9
Congress dated
1140
tables of completed sales and approved retransfer authorizations of non-demilitarized combat materiel
Department of State in its capacity as foreign-surplus and lend-lease disposal agent were released to the
For sales or retransfers made prior to Jan. 1, 1947, as listed in a report of the Secretary of State to the
Feb. 11, 1947, see Bulletin of Feb. 23, 1947, p. 322.
0»partm»nl of Slata BuHetin
Part I — Continued
Country
Description of materiel
Procurement cost
Sales price
Date of
transfer
1947
Portugal. ....
5 B-17's (converted for air-sea rescue operations)
and 3 G-54's (included because C-54's in excess of
35,000 pounds require an export license).
3, 185, 191
561, 551. 76
About
July 1
Ukugcat
1,720 bayonets; 612 carbines; 6 aiming circles; 2
range finders; 6 57 mm guns; 60 mach. guns; 42
submach. guns; 8 105 mm how.; 382 launchers
grenades & rockets; 30 mortars; 100 mount mach.
guns; 180 auto, pistols; 38 pyro projectors; 90
auto, rifles; 1,066 rifles cal. .30; 123,200 rds. cal. .30
carbines; 330,000 rds. cal. .30; 24,600 rds. cal. .45;
3,000 rds. cal. .50; 54 rds. 57 mm; 77 rds. 60 mm;
180 rds. 81 mm; 483 rds. 105 mm ammo for above
weapons.
$228, 283
$24, 035
Jan. 30
Acces. for 37 mm guns furn. under lend-lease . . .
6,608
331
Feb. 17
Sweden . . . .
Aircraft soares
23, 500
14, 000
Mar. 11
(approx.)
2,000 spring cover extractors for .50 cal. mach. guns.
520
520
Mar. 31
P A RT II
Approved Retransfer Authorizations^January 1, 1947 Through March 31, 1947
Retransferee
Item
Quantity or
Retransferee
Item
Quantity or
government
dollar value
government
dollar value
.\tTSTRALIA. . .
Magnetic airborne detector .
U
Italy
Browning guns
'100
Belgium . . .
Aircraft propellers, Hamilton
Standard.
'64
Pistols, Smith and Wesson
.45 inch.
'3
Browning guns
•48
Netherlands .
Guns, Oerlikon, 20 mm.^ . .
170
Spare barrels
■144
Spares for LST engine . . .
0)
Maintenance spares (18
(')
Ship propulsion and mainte-
' 1, 550
months).
nance spares.^
Canada. . . .
Spares for lend-lease compo-
nent parts.^
' $108, 000
Norway . . .
Aircraft propellers, Hamilton
Standard.
'46
France ....
Ship propulsion and mainte-
' 1, 570
Gyro gun sight, Mark XIV .
'1
nance Bpares.2
Motor alternators and asso-
(>)
Greece ....
Browning guns
35
ciated gear fitted with one
Spare barrels
108
20 mm. gun.
Maintenance spares (18
Ammunition, .5 inch ....
' 846, 730
months).
Syria
Submach. guns, Thompson,
'150
Aircraft engines, Pratt and
14
cal. .45.
Whitney.
Pistols, automatic, cal. .45. .
' 1, 000
Aircraft propellers, Hamilton
14
Union op South
Dial (computer) course con-
'12
Standard.
Africa.
trol.
Generators, Onan 3 KVA
2
Knob course control ....
' 12
W35.
Flexible shaft
'12
Power units, PE-95 ....
6
(All the above are aircraft
Ammunition for Browning
436, 000
course control equip-
guns.
ment.)
Iraq*
Submach. guns, Thompson,
cal. .45.*
* 1, 000
Aircraft engine spares . . .
' 1, 600
' Retransfer approved as outright sale; other retransfers approved subject to continuing United States right of recapture.
' Transaction effected under blanket authorization reported in letter of Feb. 11, 1947.
' These guns replaced 170 of the same type originally lend-leased to the Netherlands which were removed from Netherlands ships in British ports.
' The consent to retransfer, reported in the Secretary of State's report to Congress of Feb. 11, 1947, Is no longer effective since the proposed transaction has
been canceled.
June 8, 1947
1141
'm'^yvCerUi^
Economic Affairs Faga
U.S. Delegation to llth International
Congress on Military Medicine .... 1114
Relation of St. Lawrence Seaway and Power
Project to National Security:
Statement by the Secretary of State ... 1126
Letter From the Secretary of War ... 1128
Italian Blocked Accounts in U.S. Partially
Released 1129
U.S.-Italian Talks on War Claims . . . . 1130
France Welcomes Additional Grain From
U.S 1130
Czechoslovakia Ready To Discuss Nationali-
zation Compensation Claims 1133
Position of Department of State on Proposed
Wool Import Duty. Statement by the
Secretary of State 1137
Need for Extension of Certain War Powers . . 1 138
Tlie United Nations
The First Session of the Trusteeship Council.
Article by Alfred E. WeUons and
William L. Yeomans 1089
Current U.N. Documents: A Bibliography. . 1098
Question of Palestine 1110
First Meeting of Assembly of ICAO. State-
ment by the Secretary of State .... 1110
U.S. Delegation to 30th Session of Interna-
tional Labor Conference 1110
General Policy
Cairo Conference of the Interparliamentary
Union. Article by Franklin Dunham . 1115
Proposed Inter-American Military Cooper-
ation :
The President's Mes.sage to the Congress . 1121
Draft of a Bill 1122
Negotiations Planned for Implementation of
Foreign Relief Bill:
Statement by the Secretary of State . . 1124
Regulations Relative to "Joint Resolution
Providing for Relief Assistance to the
People of Countries Devastated by
War" 1125
Providing for the Transfer of Personnel to
the American Mission for Aid to
Greece and the American Mission for
Aid to Turkey 1125
General Policy — Continued PaB«
First American Airplane Lands in Yemen . . 1136
Sales and Transfer of Non-Demilitarized
Combat Materiel 1140
Treaty Information
Executive Order 9863 1120
Position on Possible Revision Agreement on
Defense of Greenland. Statement by
the Secretary of State 1130
Netherlands-U.S. War Accounts Settle-
ments 1131
Proclamation of the 1946 Sugar Protocol . . 1132
Air-Transport Agreement With Union of
South Africa 1137
Council of Foreign Ministers
Special Deputies To Consider Disposition of
Italian Colonies 1129
Occupation Matters
Appointment of Members to Military Tri-
bunal 1133
international Information and Cultural
Affairs
Proposed Continuation of Institute of Inter-
American Affairs:
Letter From the Secretary of State to the
President of the Senate 1099
Draft of a Bill 1100
Accomplishments and Plans of IIAA ... 1 102
Cooperative Action Programs 1106
Invitations Extended for Fifth International
Congress of Pediatrics 1114
American Lecturers To Visit Other American
Republics 1128
Ecuadoran Engineer Visits U.S 1129
Exchange of Students and Teachers Re-
sumed 1133
Voice of America Closes Relay Station in
Algiers :
Broadcast of Final Program 1134
Statement by Ambassador Bonnet . . . 1135
Statement by Assistant Secretary Benton . 1135
Calendar of International Meetings . . 1112
Publications
German War Documents Project 1136
"Protection of Foreign Interests" 1139
mvtvtnmdc/y^
Alfred E. WeUons and William L. Yeomans, authors of the article on
the first session of the Trusteeship Council, are Assistants in the Division
of Dependent Area Affairs, Office of Special Political Affairs, Department
of State.
Franklin Dunham, author of the article on the 36th Interparliamentary
Union Conference, is Permanent Executive Secretary of the American
group and acted as Secretary to tlie American Delegation to the Cairo
conference.
U. S. GOVERNMENT PHlNTtNG OFFtCE; 1947
fJne/ zl^eh€(/^t7}^enfi ^^ t/tate/
EUROPEAN INITIATIVE ESSENTIAL TO ECONOMIC
RECOVERY • iiemorfcs by the Secretary of State . . 1159
MEETING OF THE COUNCIL OF THE AMERICAN
INTERNATIONAL INSTITUTE FOR THE PRO-
TECTION OF CHILDHOOD • Article by Elisabeth
Shirley Enochs 1157
THE FIRST ASSEMBLY OF THE INTERNATIONAL
CIVIL AVIATION ORGANIZATION • Article by
Edicard S. Prentice 1145
For complete contents see hack cover
fToL XVI, No.
June 15, 1947
»'^SL°*»,
Me Qje/ia^^ent ^ ^Caie OUllGtlll
Vol. XVI, No. 415 • Publication 2843
June 15,1947
For sale by the Superintendent of Documents
U.S. Qovemment Printing Office
Washington 25, D.C.
Subscription:
62 Issues, $5; single copy, 15 cents
Published with the approval of the
Director of the Bureau of the Budget
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
OF State Bulletin as the source will be
appreciated.
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-
natiorml affairs and the functions of
the Department. Information is in-
cluded concerning treaties and in-
ternational agreements to which the
United States is or may become a
party and treaties of general inter-
national interest.
Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as well as
legislative material in thefieldofin ter-
nationalrelations,urelisledcurrently.
l|. t>. SUfERINTENDENT Of UOUUMENIS
UUL 19 1947
THE FIRST ASSEMBLY OF THE INTERNATIONAL
CIVIL AVIATION ORGANIZATION
hy Edward S. Prentice
The assernbly of the International Civil Aviation Organi-
zation held its first meeting in Montreal, May 6-27, 194.7. A
provisional organisation had earned on the work initiated
at the Chicago Aviation Conference in 1944 until the perma-
nent organisation was established. The activities of the First
Assetnbly in establishing the permanent aviation organiza-
tion augur well for continued international cooperation in
civil air transport.
With the coming into force of the Chicago con-
vention on international civil aviation, April 4,
1947, it was obvious that the primary task of the
First Assembly of the International Civil Avia-
tion Organization (ICAO) would be to insure
the smooth transition from the interim to the per-
manent organization established by the conven-
tion. Thus a large part of the work of the as-
sembly and its commissions was devoted to placing
ICAO on a sound operating basis.
Pre-Assembly Preparation
The Interim Council of the Provisional Inter-
national Civil Aviation Organization had worked
almost continuously since early in 1947 preparing
the detailed agenda for the first ICAO assembly.
The agenda as sent to member states over a month
before the convening date of the assembly listed
more than 50 items for consideration. Each item
called for action of some kind by the assembly,
either in the form of reviewing and approving
or disapproving the many-sided activities of the
Provisional Organization or in the form of guid-
ing recommendations for the new Council to take
into account during the coming fiscal year. The
PICAO secretariat, working under the guidance
of the Interim Council, had prepared 1,000 pages
of detailed documentation covering each agenda
item or sub-item. The documentation was trans-
mitted after Council consideration (and approval
in a majority of instances) to the member states
for information and with a view to assisting each
state in preparation for the assembly.
In this pre-assembly period the extremely close
liaison maintained between the office of the United
States representative and Washington through
the Air Coordinating Committee ^ and the Avia-
tion Division of the Department of State, proved
its effectiveness. Through personal consultation
with Maj. Gen. Laurence S. Kuter, the United
States Representative on the ICAO Council, and
his two alternates. Rear Adm. Paul A. Smith on
air navigation (technical) matters and Dr. Paul
T. David on air transport (economic) matters, by
constant utilization of the teletype connection be-
tween our Montreal office and Washington, with
outlets to both the Aviation Division of the
Department of State and the Air Coordinating
Committee Secretariat, and through official cor-
" The Air Coordinating Committee is made up of Assist-
ant Secretaries of State, War, Navy, Commerce, the Chair-
man of the Civil Aeronautics Board, and the Second
Assistant Postmaster General. An Assistant Director of
the Bureau of tlie Budget is a non-voting member. The
Committee functions under the authority of Executive
Order 9781. For text of the First Report of the Air Co-
ordinating Committee, 1946, see Department of State pub-
lication 2782.
\un& 15, 7947
1145
respondence, the responsible aviation officials in
Washington were kept completely informed on
last-minute details resulting from Council action.
The detailed positions which the U.S. Delega-
tion utilized at the First Assembly were prepared
within the framework of the Air Coordinating
Conmiittee. Industry participation through the
Air Transport Association, the Aircraft Indus-
tries Association, and the Airline Pilots Associa-
tion was actively encouraged.
The ACC-ICAO Panel reviewed, modified,
cross-checked, and approved the positions initially
arrived at by other subordinate bodies of the Air
Coordinating Committee and transmitted them
for final approval to the United States Delegation
proper. . Since the overlap between the member-
ship on the Committee and the membership on the
Delegation was so complete, the ACC turned over
the responsibility for final approval of the detailed
instructions to the Delegation. An exception to
this procedure was the handling of the United
States draft of a multilateral air-transport treaty
which had been the subject of extensive discussion
in earlier ACC meetings and at a joint meeting
between the ACC and its Aviation Industry Panel.
The Air Coordinating Committee unanimously
recommended that its draft multilateral be used
by the Delegation as an initial basis of discussion
at the assembly.
During the two weeks prior to the departure of
the United States Delegation for Montreal the
ICAO panel met almost daily in order to obtain
completely coordinated and fully considered posi-
tions on all the items which were to be discussed
at the assembly. Similarly the United States Dele-
gation met three times before leaving for Montreal
to consider outstanding policy questions facing
ICAO. At the final pre-assembly United States
Delegation meeting on Friday, May 2, the Delega-
tion approved the detailed positions. These posi-
tions were then attached to the formal instructions
from the Secretary of State to the Chairman of
the Delegation.
The United States Delegation was led by seven
Delegates as follows : Assistant Secretary of State
Garrison Norton, Chairman ; Assistant Secretary
of Commerce William A. M. Burden, Alternate
Chairman; Chairman of the Civil Aeronautics
Board James M. Landis; Board Member Harllee
Branch ; L. Welch Pogue, former Chairman of the
1146
Board and currently F'resident of the National
Aeronautic Association; Maj. Gen. L. S. Kuter,
U.S. Kepresentative to the ICAO Council; and
his alternate, Kear Adm. Paul A. Smith.
Assistant Secretary of War for Air Stuart Sym-
ington and Assistant Secretary of the Navy for
Air John Brown acted as Consultants to the Dele-
gation. Industry participation in the work of the
assembly was carried through to completion by
reason of iniii.~try advisers on the official Delega-
tion. In addii-ion to representatives of the Air
Transport Association, the Aircraft Industries As-
sociation, and the Airline Pilots Association, rep-
resentatives from the following agencies acted as
Alternate Delegates, or Consultants or Advisers
on the Delegation : State, Commerce, Post Office,
War, Navy, CAB, and Budget. The Delegation
was thus composed of individuals outstanding in
the field of aviation.
The Assembly
The total nimiber of nations participating in
the activities of the assembly was 47. Seven in-
ternational organizations also had representa-
tives at the assembly. The participating states
and organizations were as follows :
Contracting States
Argentina
Dominican Republic
Australia
Egypt
Belgium
France
Bolivia
Greece
Brazil
Guatemala
Canada
Iceland
Clille
India
Cliina
Ireland
Czechoslovakia
Liberia
Denmark
Mexico
Netherlands
Spain
New Zealand
Sweden
Norway
Switzerland
Peru
Turkey
Philippines
Union of South Africa
Poland
United Kingdom
Portugal
United States
Siam
Venezuela
Non-Contracting States
Colombia
Iraq
Costa Rica
Italy
Cuba
Luxembourg
Ecuador
Uruguay
El Salvador
Yugoslavia
Iran
Department of State Bulletin
International Organizations
CITEJA (Comity International Technique d'Experts
Juridiques Adrians)
International Air Transport Association
International Cliamber of Commerce
International Labour Office
International Union of Aviation Insurers
United Nations
World Health Organization
The assembly divided its work into six fields,
each covered by a separate commission : constitu-
tional and general policy questions; technical
questions ; economic questions ; legal questions ; ad-
ministrative and financial questions ; and financial
and technical aid through ICAO. United States
spokesmen on the six commissions in the above
listed order were : Livingston L. Merchant, Chief,
Aviation Division, State Department; Charles I.
Stanton, Deputy Administrator, Civil Aeronautics
Administration; James L. Landis, Chairman,
Civil Aeronautics Board; Emory T. Nunneley,
General Coimsel, Civil Aeronautics Board; Carl
Schwartz, Assistant Chief, Estimates Division,
Bureau of the Budget; and J. Paul Barringer,
Assistant Chief, Aviation Division, State Depart-
ment. All the foregoing, with the exception
of Delegate Landis, were designated as Alternate
Delegates.
The following summary presents the major
accomplishments of the First Assembly in these
fields.
Constitutional and General Policy Questions
1. The most urgent item considered by the First
Assembly of ICAO was the agreement between
the Aviation Organization and the United Nations
providing for affiliation between the two interna-
tional organizations. The agreement had been
adopted by the General Assembly of the United
Nations with a reservation to the effect that it
would not come into force until Franco Spain had
been debarred from all activities of ICAO. In
line with the over-all policy of the United States
to support strongly the United Nations, the United
States took the lead in pressing for action by the
Assembly which would permit the affiliation agree-
ment to come into force. This meant that the
United States also took the lead in pressing for
the expulsion of Franco Spain.
June 15, 1947
The only manner in which such expulsion could
be effected through constitutional means was by
amending the Chicago convention on international
civil aviation. After extensive debate over legal
and constitutional issues, the amendment was
adopted by the assembly by a vote of 27 to 3 with
several abstentions. The debarment of Spain will
not legally be completed before two thirds (28) of
the ICAO member states have ratified the amend-
ment to the Chicago convention. But for all prac-
tical purposes as announced by a United Nations
representative at the ICAO assembly, speaking for
the United Nations Secretary-General, TrygveLie,
the affiliation agreement between ICAO and the
United Nations has come into force and Franco
Spain has been debarred from ICAO.
2. A second urgent item for assembly action
was the election of the new Council. The Council
of ICAO acts as the executive body of the Organi-
zation. It sits in almost continuous session and
directs the work of its committees, the ICAO sec-
retariat, and the Divisions (international con-
ferences of specialized experts). The following
states were elected to the Council for a three-year
period :
Argentina
Australia
Belgium
Brazil
Canada
Chile
China
Czechoslovakia
Egypt
France
Iraq
India
Ireland
Mexico
Netherlands
Peru
Portugal
Sweden
Turkey
United Kingdom
United States
3. Early in the assembly the United States pro-
posed that Italy should be admitted to ICAO.
This proposal was unanimously adopted by the
assembly with the result that Italy will become a
member of ICAO unless objection is made by the
General Assembly of the United Nations. No
such objection is anticipated. Under the terms of
the Chicago convention the formal assent of
Ethiopia is also required. It is expected to be
forthcoming.
4. The First Assembly decided that the next
assembly should convene in the latter part of May
or early June 1948 in western Europe. The Coim-
cil is to decide the exact time and place. The
1147
long-term policy of holding a full assembly only
every three years with intervening assemblies kept
to more restricted agendas was adopted, but will
not be placed into effect at this time. It was be-
lieved that an ojsportunity should be given to re-
view all phases of the Organization's activities at
the Second Assembly.
5. The question of official languages of ICAO
was discussed at great length. A resolution was
finally adopted directing the Council to implement
the following principles of language policy which
were agreeable to the United States :
"(a) Two of the three languages, English, French and
Spanish, shall normally be selected b.v the Council for
conducting each meeting, for the systematic interpreta-
tion of speeches and statements and for the drafting of
final reports. The Council shall decide in each case if
there Is need for systematic interpretation in a third
language. The use of any of the languages thus estab-
lished may be waived when there is unanimous agreement
to do so ;
"(b) The Council shall decide, on practical grounds and
In the light of experience, which publications and docu-
ments of the Organization shall be issued in more than one
language."
6. No amendments to the convention other than
the one debarring F'ranco Spain from ICAO were
adopted by the assembly. Member states shared
a feeling that as a general policy the convention
should not be amended before the ICAO had some
experience operating under its present terms.
7. The assembly authorized the Council to act
as an arbitral body on any differences arising
among contracting states relating to international
civil aviation matters which are submitted to it,
when expressly requested to do so by all parties
to such differences. This authorization will ob-
tain pending further discussions and ultimate de-
cision by ICAO as to the methods of dealing with
international disputes in the field of civil avia-
tion. The assembly's authorization on this matter
was necessary since the Chicago convention limits
the Council to decisions on disagreements relating
to the interpretation or application of the conven-
tion and its annexes. The authorization means
that the ICAO Council will have the same powers
in the arbitral field as did the Interim Council.
This fact is of particular importance because of
the provisions in many of the bilateral air-trans-
port agreements negotiated by the United States
and other countries designating the ICAO Coun-
1148
cil as the means by which differences arising out
of the operation of the bilaterals would be settled.
Technical Questions
ICAO activities in the technical field are so
numerous and intricate that their detailed consid-
eration must be undertaken by groups of special-
ists in each of the various categories of aeronaut-
ical teclmical problems. In addition to divisional
meetings in Montreal on 11 specialized subjects,
there have been regional meetings to discuss prob-
lems and develop plans for regularizing air navi-
gation and promoting safety in flight.
Obviously the assembly could review the tech-
nical work in its broad aspects only, judge the
quantity and <5(uality of the work produced, and
recommend changes in orientation of effort or in
the procedures followed in carrying out this im-
portant function.
1. The assembly concluded that an excellent job
was performed by the Provisional International
Civil Aviation Organization (PICAO) in estab-
lishing standards, recommended practices, and
procedures but that the emphasis should now be
shifted to a full-scale effort toward rapid im-
jjlementation of the standards, practices, and pro-
cedures.
Questions which called for considerable debate
arose almost entirely as a result of the transition
from the interim PICAO to the permanent ICAO.
Under the interim agreement, the PICAO stand-
ards had the force of recommendations only. Un-
der the convention it is obligatory for states to
apply them unless they notify ICAO that they are
unable or unwilling so to do and state the reasons
therefor.
All the states agreed that PICAO actions to date
should remain in effect (that is, as recommenda-
tions) until the new Council has had an oppor-
tunity to adopt or reject them as standards having
the binding status accorded them by the conven-
tion.
2. An interesting point was the subject of cor-
rective actions with respect to non-compliance,
i.e. violations of ICAO standards and national
aviation rules and regulations. In the absence of
a uniform international code for enforcement of
ICAO and national aviation rules and regula-
tions, it was felt highly desirable to reach a gen-
eral understanding that corrective action should
be taken by the state of registration, certification
Department of State Bulletin
or jurisdiction of the aircraft, airmen, or operat-
ing agencies respectively which had not complied
■with the rules. The assembly adopted this view.
3. How soon after adoption of a standard by
ICAO must a state apply that standard or be
considered in noncompliance was a question which
concerned many of the member states. The United
States Delegation pointed out that there was a
great variation in the nature of the standards
which ICAO would adopt, some being susceptible
of immediate application, others necessitating a
considerable period of time to obtain the funds
and carry out construction work necessary for
compliance. On that account the suggestion was
made that when adopting a standard ICAO con-
sider the length of time required for compliance
in the light of the cost and time involved and set
a date for application of the standard. In some
instances states may find it necessary to notify
ICAO of their inability to comply with the stand-
ard on the date established by the organization.
The assembly accepted this position. This ac-
tion has opened the way for early and large-scale
adoption and prompt implementation of inter-
national standards and recommended practices.
4. Of importance to the United States was the
effort of some of the smaller nations to specify
limitations on the length and strength of runways
at airports used by international air services. As
a large manufacturer as well as a large oi:>erator
of transport aircraft, the United States took the
position that no restrictions should be placed on
the length or strength of runways. After much
debate, during which the United States recognized
the problem of costs facing many states who pro-
vide international airports, the assembly resolved :
"That the Council in consultation with the International
Air Transport Association and the aircraft manufacturers,
study and report upon the trend of aircraft design and
the relationship between airline operation and aerodrome
design with the object of curbing the increasing cost of
runway construction."
5. The assembly recommended that the Council
adopt a numbering and dimensional system pro-
posed by the International Air Transport Asso-
ciation which was based largely on the metric
system. In addition the action of the assembly
provides that the foot-pound or statute mile may
be used by states which find it impracticable to use
the proposed standard units. Although the action
June J 5, J 947
was intended to establish a single standard sys-
tem, it actually sets up a double standard which
(1) leaves the United States free to use any num-
bering system desired; (2) possibly makes un-
necessary further work on dimensional standard-
ization; and (3) effectively prevents or at least
greatly delays the world-wide adoption of any one
numljering system.
Economic Questions
1. The principal item of business for the assem-
bly in the economic field was a discussion of the
proposed multilateral agreement on commercial
rights in international civil air transport. The
United States Delegation came to the assembly
with its own draft, which reserved for separate
bilateral negotiation the exchange of routes in
commercial air transport.
After considerable discussion on this subject it
became apparent that the delegations of important
countries were not sufficiently in accord to permit
completion at this assembly of a multilateral agree-
ment. The discussions did indicate, however, that
there was considerable agreement as to the need
for general principles on which a multilateral
treaty on commercial rights could be based. The
assembly therefore resolved that a special confer-
ence be convened at Kio de Janeiro in October
1947 for the express purpose of developing and
submitting for the consideration of the various
states a multilateral agreement on commercial
rights in international civil air transport. There
is considerable evidence that the United States
position on the matter of the separate bilateral
exchange of routes has gained more widespread
acceptance than was the case before the First As-
sembly convened. Similarly, there is some evi-
dence that the so-called Bermuda capacity clauses,
first conceived at the United States-United King-
dom Bermuda Conference and thereafter included
with only minor modifications in other U.S. and
U.K. bilateral air-transport agreements, may
prove to be the basis for the formula eventually
adopted on capacity in a multilateral treaty.
2. The subject of international ownership and
operation of the international trunk routes was
debated at length. The nations of the British
Connnonwealth made a vigorous attempt to com-
mit ICAO to studying the question and develop-
ing an international chosen instrument plan for
1149
presentation to the next assembly. The United
States opposed this procedure with equal vigor.
The assembly finally decided that the Council
should continue its studies of possible plans for
the internationalization of trunk air routes but
only on the basis of material which may be sub-
mitted by member states. The Council will also
give consideration to arguments against the feasi-
bility of such operations.
3. Brief discussions were held on the subject of
satisfactory definitions of scheduled and non-
scheduled operation of international air trans-
port for the purpose of interpreting the Chicago
convention. Tlie United States position was that
it was impossible at this time to prepare a defini-
tion that would completely distinguish between
scheduled and nonscheduled operations. This
view was adopted by the assembly and the Council
was instructed to study the matter further.
4. With respect to the facilitation of interna-
tional air travel the assembly endorsed the steps
already taken by the Interim Council in the di-
rection of eliminating unnecessary barriers to in-
ternational air commerce, and recommended steps
designed to push this program vigorously. The
assembly decided that no further recoimnenda-
tions would be made pending consideration by the
Facilitation Division of those already made by
the Provisional Organization.
5. The Council was also instructed to study
further the problems concerned with the report-
ing of statistics; the filing of agreements; inter-
national air mail; and the economic burdens of
double taxation, certain insurance requirements,
airport charges, and charges for the use of air-
navigation facilities.
Legal Questions
1. The most important item before the assembly
in the field of international air law was considera-
tion of the draft convention on rights in rem in
aircraft. This proj^osed convention provides for
the recordation and recognition of property and
security interests in aircraft engaged in interna-
tional air transportation. Such a convention
would be an important contribution to the ability
of air-transport operators and aircraft manufac-
turers to finance purchases and sales of aircraft,
respectively. The United States had emphasized
the importance of progress in the final formula-
tion and approval of such a convention by the
1150
assembly and opening it for signature and ratifi-
cation by the states.
Substantial effort was devoted at the assembly
in obtaining sufficient agreement on certain basic
issues to make possible final approval of the con-
vention. However, such an agreement was not
accomplished. The difficulty lay in the inability to
reconcile sufficiently fundamental differences in
the basic concepts of several different legal systems.
The assembly did, however, direct the new Legal
Committee of ICAO to meet at a time to be deter-
mined by the Council for the purpose of finalizing
the draft of a Convention concerning the recogni-
tion of rights in aircraft.
2. On the procedural side, the assembly estab-
lished for the fii-st time a Legal Committee of
ICAO. A resolution approving the establish-
ment of such a committee and providing for its
terms of reference, including primarily the study
and formulation of draft conventions on interna-
tional air law, was adopted.
3. As the result of the establishment of the
Legal Committee of ICAO, CITEJA (Comite
International Technique d'Experts Juridiques
Aeriens), an independent body of legal experts
having responsibility for the drafting of conven-
tions on international air law, held its final meet-
ing in Montreal and adopted resolutions for its
liquidation. This action was in line with the
general policy that all official international organi-
zations in the aviation field should be brought
within the framework of ICAO as the specialized
international aviation agency.
Administrative and Financial Questions
1. The Chicago convention directs the assembly
to fix an annual budget for ICAO. The assembly
adopted a total budget of $2,600,000 for the fiscal
year 1947-48. Although this estimate compares
with a total budget slightly under $2,000,000 for
the fiscal year 1946-47, the budget as finally
adopted was considerably less than the $3,190,335
submitted to the First Assembly by the Interim
Council of PICAO. The increase over last year's
budget was made necessary principally by provi-
sion for establishment of five regional offices in
various parts of the world. The provision for
regional offices is imperative for the purpose of
giving assistance to various member states in im-
plementing the standards, practices, and proce-
Department of State Bulletin
dures which have been adopted by ICAO and its
predecessor PICAO during the past year. The
United States took the position that the budget of
ICAO should be adequate, but no more than ade-
quate, to insure the carrying out of the work pro-
gram proposed for the next fiscal year. The avia-
tion specialists of the United States engaged in
ICAO work are satisfied that the new budget figure
provides sufficient funds for this purpose.
2. The assembly gave particular consideration
to the organizational structure of ICAO and sub-
mitted various suggestions to the Council which
are designed to strengthen the new Organization
in attaining maximum effectiveness.
3. On the scale of contributions to be made by
member states to ICAO, the United States and
the United Kingdom took the position that no
radical adjustment to the principles underlying
the previous scale of contributions should be made.
This position was upheld by the assembly. There
were slight adjustments in the number of units
assigned to various member states, with the United
States agreeing to increase its number of units
from 45 to 57. This number of units represents
approximately 20 percent of the administrative
expenses of the organization.
Financial and Technical Aid Through ICAO
1. The assembly agreed upon basic principles
and general policy relating to financial and tech-
nical aid through ICAO for furthering the pro-
vision of air-navigation facilities and services.
Summarized, these basic principles are as follows :
(a) The provision of financial and technical
aid through ICAO will be based on voluntary ac-
tion on the part of contracting states.
(b) The International Civil Aviation Organi-
zation through its Council is the international
body responsible for the initiation of expeditious
action to meet requirements to supply additional
air-navigiition facilities and services where neces-
sary for the operation of international air services.
(c) Aid provided through ICAO will aim to
provide air-navigation facilities and services ade-
quate, but no more than adequate, to meet the re-
quirements of international air services in accord-
ance with the standards established and practices
recommended.
(d) Contracting states will do all possible to
arrange for the provision of adequate facilities
June 15, 7947
and services within their own territories before
applying to ICAO for assistance.
(e) ICAO will satisfy itself in every case that
circumstances actually require the assistance of
the organization.
(/) The rendering of financial and technical aid
through ICAO will depend upon willingness of
the applicant state to participate and cooperate
in the economical provision of required facilities
and services.
(g) ICAO will assure contributing states that
their funds will be expended under its supervision
to insure the utmost economy.
(h) Keasonable user charges in line with gen-
eral practice may be provided for in any agree-
ment relating to aid through ICAO. Free use of
facilities where in line with normal practice may
be provisionally adopted by agreement.
The Air Coordinating Committee of the United
States Government in consultation with the U.S.
Representatives to the ICAO Council early recog-
nized the importance of developing principles for
the carrying out of joint support projects. Our
own airlines, through the Air Transport Associ-
ation and ARINC (Aeronautical Radio Incorpo-
rated), participated in the development of a
general policy on the matter of financial and
technical aid through ICAO in order to further
the safety of our own international air services.
The assembly action on joint support is very
similar to the general principles developed by the
Air Coordinating Committee with the assistance
of the air-transport industry.
Conclusion
The First Assembly of the ICAO did not accom-
plish all that had been hoped. Notable failures
were the inability to conclude a satisfactory multi-
lateral treaty on commercial air rights and the
absence of final agreement on a multilateral con-
vention on rights in aircraft. But the First As-
sembly did succeed in laying the groundwork for
a healthy and progressive permanent aviation
organization. By establishing a firm foundation
on which the ICAO can build, the assembly has
contributed to the goal of effective collaboration
in the complex and dynamic field of international
civil aviation to the end that the unique advantages
of air transport can be effectively utilized in the
search for lasting world peace.
1151
740512
THE UNITED NATIONS
Meeting of Committee on Progressive Development of
International Law and Its Codification
SUGGESTIONS BY THE UNITED STATES OF ITEM 4 OF THE PROVISIONAL AGENDA'
1. Item 4 of the Provisional Agenda of 5 May
1947 reads as follows :
"Plans for the formulation, in the context of a
general codification of offences against the peace
and security of mankind, or of an International
Criminal Code, of the principles recognized in the
Cliarter of the Nuremberg Tribunal and in the
judgment of the Tribunal."
2. The language just quoted is identical with
General Assembly Resolution 95 (1) of 11 Decem-
ber 1946 which also provides that our Committee
should treat the plans for the formulation of the
Nuremberg principles "as a matter of primary
importance."
3. The function of our Committee is to study
methods or "plans" for the formulation of the
principles in question rather than to undertake
consideration of substantive provisions. This is
shown by an examination of the proceedings which
culminated in the adoption of the above-mentioned
resolution of 11 December 1946.
The resolution originated in a proposal by the
Delegation of the United States, dated 15 Novem-
ber 1946 (document A/C.6/69).
The proposal provided that the General As-
sembly :
"1. reaffirms the principles of international law
recognized by the Charter of the Nuremberg Tri-
bunal and the judgment of the Tribunal.
"2. directs the Assembly Committee on the Codi-
fication of International Law created by the As-
sembly's resolution of to treat as a
matter of primary importance the formulation of
the principles of the Charter of the Nuremberg
1 U.N. doc. A/AC. 10/36, May 29, 1947.
Tribunal and of the Tribunal's judgment in the
context of a general codification of offenses
against the peace and security of mankind or in
an International Criminal Code."
It will be noted that the proposal just quoted
provided for the "formulation of the principles"
rather than for "plans for the formulation". The
addition of the word "plans" was made as a result
of discussion in Sub-Committee 1 of the Sixth Com-
mittee to the effect that our Committee was to deal
with methods and not with codification of substan-
tive provisions. The representative of the Union
of Soviet Socialist Eepublics, Mr. Durdenevski,
suggested the elimination of paragraph 2 of the
United States proposal quoted above because, by
provision for "formulation of the principles" it
dealt with codification itself rather than with
methods. The representative of the United States,
Mr. Fahy, then asked M'hether the addition of the
words "plans for" in front of "the formulation of
the principles" might not induce the representative
of the Soviet Union to approve the paragraph
in question (document A/C.6/Sub.l/W.35).
The provision that the Committee should treat
the plans for the formulation of the Nuremberg
principles "as a matter of primary importance"
does not show that this Committee should deal
with substantive provisions rather than methods.
It should be noted that the words in the resolution
"to treat as a matter of primary importance" are
identical with those appearing in the above-men-
tioned proposal of the United States Delegation.
The presence of these words in the proposal did
not prevent the United States representative, Mr.
Fahy, from suggesting the addition of the word
"plans" in order to meet the point raised by the
Union of Soviet Socialist Republics, that our Com-
1152
Department of Slate Bulletin
mittee was not to deal with substantive provisions.
In tliis connection, attention may also be called to
the following statement in the summary record of
the fourteenth meeting of the above-mentioned
Sub-Committee (document A/C.6/Sub.l/^V.36) :
'"Mr. Fahy (United States) asked that para-
graph 3 be completed by adding the words 'The
Committee should give priority of plans for the
formulation . . .'. in order to emphasize that here
again they were only dealing with preparatory
work."
The above-mentioned resolution regarding the
Nuremberg principles was adopted subsequent to
the General Assembly Resolution of 11 December
1946, establishing our Committee. The latter res-
olution provided that the Committee was to deal
with methodology and not with the formulation
of substantive rules or principles of law. The de-
cision to limit the discussion regarding the Nurem-
berg principles to methodology was in accord with
the General Assembly's resolution prescribing our
Committee's function.
It follows from the above, that our Committee
is not to undertake discussion of substantive pro-
visions. Furthermore, the formulation of the
Nuremberg principles deserves careful and thor-
ough study. Even if the Committee were em-
powered to undertake such study, its time schedule
would not permit it to give to this subject the atten-
tion which it deserves. In this connection, the
following statement in the memorandum submitted
by the representative of France (A/AC.10/29) is
pertinent.
"If it is true that the progressive development
of public international law should be undertaken
with caution, caution has never been more desirable
than in the present case." For the reasons men-
tioned above, it is suggested that the discussion of
substantive provisions should be undertaken by
the Connnission of Experts.
4. As to plans for the formulation of the Nurem-
berg principles, it may be noted that according to
the above-mentioned resolution, the principles are
to be formulated "in the context of a general codi-
fication of offenses against the peace and security
of mankind, or of an International Criminal
Code."
A "general codification of offenses against the
THE UNITED NATIONS
peace and security of mankind" is a project which
will consume considerable time. The prepara-
tion of a complete "International Criminal Code"
will also requii'e time. To postpone the formula-
tion of the Nuremberg principles until the prepa-
ration of a general codification of the offenses en-
visaged by those principles as well as of other
offenses against the peace of mankind is completed
would result in considerable delay. The same re-
sult would follow if this formulation is postponed
until the preparation of a complete International
Criminal Code. In order to give effect to the pro-
vision that plans for the formulation of the Nurem-
berg principles should be considered as a matter
of primary importance, the United States Delega-
tion proposes the following :
(a) The Commission of Experts should be in-
sti'ucted to prepare a draft convention containing
the Nui'emberg principles. This draft conven-
tion need not be deferred until the preparation of
a complete general code of offenses against the
peace and security of mankind or of a complete
International Criminal Code is finished. In view
of the fact that the General Assembly Resolution
of 11 December 1946, provides that the formulation
of the Nuremberg principles should be considered
as a matter of primary importance, this draft con-
vention should be the first one to be prepared by
the Commission.
(b) The 2D reparation of the above-mentioned
codes may be begun by the Commission of Ex-
perts at the same time as the formulation of the
Nuremberg principles.
(c) In undertaking the formulation of the
Nuremberg principles, the Commission of Experts
should bear in mind that those principles may
eventually be incorporated in the codes I'eferred
to in paragraph (a).
(d) Upon the completion of the said two codes
or of either of them, the Commission of Experts
ma}' consider the question of including therein
the provisions contained in the convention regard-
ing the Nuremberg principles.
5. With respect to implementing the Nuremberg
principles by the establishment of an International
Criminal Court or of a Criminal Chamber in the
Internntional Court of Justice, it may be pointed
out that, if our Committee is not to undertake dis-
cussion of substantive provisions regarding the
Nuremberg principles, a fortiori it should not un-
June J5, 1947
1153
THE UNITED NATIONS
dertake discussion as to what means should be
adopted with a view to enforcing substantive pro-
visions not yet agreed upon. The question of j uris-
diction and appropriate means of enforcement can
obviously be considered more appropriately after
the substantive provisions are settled. For these
reasons, it is believed that the question of enforce-
ment of the Nuremberg principles by the estab-
lishment of an International Criminal Court or
otherwise should be deferred for consideration and
study by the Commission of Experts. However,
in view of the importance of the proposals of the
French Delegation, the report' of our Committee
should contain special mention of this subject and
should recommend that the attention of the Com-
mission of Experts be called thereto.
Citizens Asited To Refrain From Activities Hazardous to
Settlement of Palestine Problem
STATEMENT BY THE PRESIDENT
[Released to the press by the White House June 5]
The General Assembly of the United Nations
in special session on May 15, 1947, unanimously
adopted the following resolution:
"The General Assembly calls upon all Govern-
ments and peoples and particularly on the inhabi-
tants of Palestine to refrain, pending action by
the General Assembly on the report of the Special
Committee on Palestine, from the threat or use of
force or any other action which might create an
atmosphere prejudicial to an early settlement of
the question of Palestine." ^
The search for a fair and workable solution of
the Palestine problem is one of the most difficult
and important tasks confronting the United Na-
tions. It is in the interest of the United States
as well as of the United Nations that the efforts
of the United Nations to solve this problem meet
with success. Activities calculated further to in-
flame the passions of the inhabitants of Palestine,
to undermine law and order in Palestine, or to
promote violence in that country are certain to
create an atmosphere prejudicial to an early settle-
ment of the Palestine problem and to render still
more difficult the tasks which the United Nations
has before it.
I therefore urge every citizen and resident of
the United States, in the interests of this country,
of world peace, and of humanity, meticulously to
' Bulletin of June 8, 1947, p. 1110.
1154
refrain, while the United Nations is considering
the problem of Palestine, from engaging in, or
facilitating, any activities which tend further to
inflame the passions of the inhabitants of Palestine,
to undermine law and order in Palestine, or to
promote violence in that country.
Current United Nations Documents:
A Selected Bibliography
There will be listed periodically in the Bulletin a
selection of United Nations documents which may be of
interest to readers.
Printed materials may be secured in the United States
from the International Documents Service, Columbia Uni-
versity Press, 2960 Broadway, New York City. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
General Assembly
Joint Second and Third Committee. Checli List of Docu-
ments of the Joint Second and Third Committee, First
Session of the General Assembly, 194G. Prepared by
the Documents Index Unit. A/C.2&3/46, May 22,
1947. 8 pp. mimeo.
Disposition of Agenda Items and Check List of Documents
and Publications of the First Special Session of the
General Assembly, 28 April-lS May 1947. I'repared
by the Documents Index Unit. .\/INF/7, May 21,
1947. 17 pp. mimeo. Also, A/INF/7/Ada.l, May 27,
1947. 1 p. mimeo.
Department of Sfafe Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of June 8, 1947
Far Eastern Commission . . :
United Nations:
Seciirity Council
Military Staff Committee . . .
Commission on Atomic Energy .
Commission on Conventional Armaments ■
Committee on Progressive Development and Codification of Inter-
national Law.
Economic Commission for Europe: Transport Session
ECOSOC (Economic and Social Council) :
Economic and Employment Commission
Fiscal Commission _
Subcommission on Freedom of Information and of^the Press . .
German External Property Negotiations (Safehaven) :
With Portugal
With Spain
Inter-Allied Trade Board for Japan •
International Conference on Trade and Employment: Second Meeting
of the Preparatory Committee.
Congress of the Universal Postal Union
Council of Foreign Ministers: Commission To Examine Disagreed
Questions of the Austrian Treaty.
FAO (Food and Agriculture Organization) :
Rice Study Group
Executive Committee
International Radio Conference
Scheduled for June-August 1947
International Cotton Advisory Committee: Sixth Meeting,
United Nations:
ECOSOC:
Human Rights Drafting Committee
Fifth Session
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Geneva
Lake Success .
Lake Success .
Lake Success .
Lisbon . .
Madrid . .
Washington
Geneva
Paris .
Vienna
Trivandrum, Travancore,
India.
Washington
Atlantic City
Washington
Lake Success .
Lake Success .
' Prepared in the Division of International Conferences, Department of State.
June 15, 1947
1946
Feb. 26
Mar. 25
Mar. 25
June 14
1947
Mar. 24
May 12
May 27-June 6
June 2
May 19-29
May 19-June 4
1946
Sept. 3
Nov. 12
Oct. 24
1947
Apr. 10
May 7
May 12
May 15
June 2-5
May 15
June 9-11
June 9
July 19
1155
Calendar oj Meetings — Continued
United Nations: ECOSOC— Continued
Narcotic Drugs Commission: Second Session
Subcommission on Economic Development
' Population Commission: Second Session
Human Rights Commission: Second Session
Statistical Commission: Second Session
Social Commission: Second Session
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Economic Commission for Europe: Second Session
ECITO (European Central Inland Transport Organization): Seventh
Session of the Council (Second Part).
ILO (International Labor Organization) :
102d Session of the Governing Body
30th Session of the International Labor Conference
Permanent Agricultural Committee
Sixth International Conference of Labor Statisticians
Industrial Committee on Iron and Steel Production
ICAO (International Civil Aviation Organization) :
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
Aerodromes, Air Routes and Ground Aids Division
"Journ^es Medicales de Bruxelles", 21st Session
Caribbean Commission: Fourth Meeting
International Sugar Council
IRO (International Refugee Organization) : Third Part of First Session
of the Preparatory Commission.
German External Property Negotiations With Turkey (Safehaven) . .
International Telecommunications Plenipotentiary Conference . . . .
International Council of Scientific Unions: Executive Committee . . .
International Rubber Study Group
Seventh International Congress of Administrative Sciences
UNESCO Executive Board
FAO (Food and Agriculture Organization) :
Panel on Soil Erosion Control
Meeting of Specialists on the Control of Infestation of Stored Food
Products.
Annual Conference
International Meteorological Organization: Meeting of Technical
Commissions.
WHO (World Health Organization):
Committee on Administration and Finance
Fourth Session of the Interim Commission
International High Frequency BroadcastingConference
Lake Success .
Lake Success .
Lake Success .
Geneva . . .
Lake Success .
Lake Success .
Shanghai . .
Lake Success .
Geneva . . ,
Paris
Geneva . .
Geneva . .
Geneva . ,
Montreal ,
Stockholm ,
Lima ....
Rio de Janeiro
Montreal . .
Brussels .
Jamaica .
London .
Lausanne
Ankara . . .
Atlantic City
Paris . . . .
Paris . . . .
Bern . . . .
Paris . . . .
W^ashington
London . .
Geneva
Toronto
Geneva . . .
Geneva . . ,
Atlantic City
1947
July 24 2
Aug. 18 2
Aug. 18 2
Aug. 25 2
Aug. 28 2
Aug. 28 2
June 16
July 7
July 5
June 17
June 13-17
June 19
July
Aug. 4
Aug. 19
June 17
Julv 15
Aug. 19
June 21-25
June 23-28
June 24
June 25 ^
June
July 1
July 1-2
July 1-10
July 23-30
July 24
July
Aug. 4
Aug. 25
Aug. 4-Sept. 13
Aug. 28
Aug. 30-Sept.^l4
August or Sep-
tember.
» Tentative.
1156
Department of State Bulletin
Meeting of the Council of the American International
Institute for the Protection of Childhood
ARTICLE BY ELISABETH SHIRLEY ENOCHS
Among the various international organizations
of which the United States is a member, few are
more interesting, ahhough many are better known,
than the American International Institute for the
Protection of Childhood.
The regular annual meeting of the Council, the
governing body of the Institute, held at its head-
quarters at Montevideo on April 25, 1947, called
attention to the fact that this is the only specialized
intergovernmental agency of its kind in the
world ; that on June 9, 1947, it will celebrate the
twentieth anniversary of its founding; and that
through the Institute the republics of the Western
Hemisphere have been able to share with each
other their experience and progress in providing
for the health, welfare, and education of their
children and youth.
United States participation in the American
International Institute for the Protection of
Childhood was authorized by a joint resolution
of Congress in May 1928. That same year the
Secretary of State designated Katharine F. Len-
root, then assistant to the Chief and since 1934
Chief of the United States Children's Bureau, as
this Government's official representative on the
Council of the Institute, and she has since served
continuously in this capacity. The recent meeting
elected Miss Lenroot vice president of the
organization.
During the 20 years of its existence, the Institute
has been growing slowly but steadily in influence,
activity, and usefulness. It has become the official
organ of the Pan American Child Congresses, aid-
ing in the preparation of these meetings and in
the implementation of their resolutions. Like-
wise, it has developed increasingly close relation-
ships with other inter-American organizations,
particularly the Pan American Union, the Pan
American Sanitary Bureau, and the Inter- Ameri-
can Commission of Women. The Institute has
been called upon by inter- American conferences
to cooperate in various ways with the Interna-
tional Labor Organization and with the Inter-
American Committee on Social Security.
The 1947 meeting of the Council of the Institute
assumed special importance in view of the plans
for the forthcoming Ninth International Confer-
ence of American States, scheduled to be held at
Bogota in January 1948, and the announcement
that the Ninth Pan American Child Congress will
be held at Caracas in January 1948. Tliese events
have focused the attention of the Institute on its
relationship to the whole inter- American system
and to its functions as a specialized international
organization within that system. In addition, the
action of the General Assembly of the United Na-
tions in establishing the International Children's
Emergency Fund has aroused interest as to rela-
tionships which might be developed between the
Institute and world organizations.^
Kepresentatives from the following countries at-
tended this meeting on April 2.5 : Argentina,
Bolivia, Brazil, Chile, Costa Rica, tlie Dominican
Republic, Ecuador, Mexico, Paraguay, the United
States, Uruguay, and Venezuela. An observer
from tlie Pan American Sanitary Bureau was also
in attendance. Representing the United States
were Edward J. Sparks, resident delegate. Coun-
selor of the American Embassy, Montevideo, and
Mrs. Elisabeth Shirley Enochs, Director of the
International Cooperation Service, United States
Children's Bureau, who served as alternate tech-
nical delegate in place of Miss Lenroot.
Recalling the unfailing intei'est of the late Dr.
Leo S. Rowe in the work of the Institute, Dr.
Gregorio Araoz, president of the Comicil, asked
the delegates to rise in silent tribute to his memory
and in recognition of his great services to the cause
of pan-Americanism. The chairman then spoke
briefly of the importance of close relationships
with various inter-American organizations and
requested approval of a suggestion that congratu-
latory messages be sent to the new directors of
the Pan American Union and the Pan American
Sanitary Bureau.
' For article on the Children's Emergency Fund, see
Bulletin of Mar. 16, 1947, p. 46G.
June 15, 1947
1157
ACTIVITIBS AND DEVELOPMENTS
Presentation of the annual report of the Direc-
tor, Dr. Roberto BeiTo, brought information that
Guatemala had adhered to the Institute and to-
gether with Uruguay and Venezuela had volun-
teered to pay a higher quota than that established
in the revised quota schedule adopted at the 1946
Council meeting as a part of the new statute of
the Institute. A special provision in the statute
authorizes any member government to increase
voluntarily its quota in order to help the Institute
develop its work. It was also reported that in-
formation received subsequent to the printing of
the report indicated that Argentina and Mexico,
whose quotas have been increased under the re-
vised system established last year, have agreed to
contribute at the new rate. Despite these develop-
ments, however, the Director reported that the
expenses of the Institute were slightly in excess
of its income, largely because of the necessity of
complying with a recent national law of Uruguay
increasing the general level of pay in that country.
This financial status indicated the urgency of reg-
ular contributions by member governments and of
securing the adherence of the three remaining
nonmember nations: Haiti, Nicaragua, and
Panama.
The Health Department of the Institute re-
ported success in its efforts to secure compulsory
notification of rheumatic disease in the Ameri-
can republics. A resolution to this effect had been
approved by the Pan American Sanitary Confer-
ence at Caracas on the recommendation of the
Institute, which had made a study of this disease
and its effect on children, the results of which
proved the need for more accurate statistics on
the subject. The Health Department is now con-
cerned with a study of epidemics of infantile
paralysis.
Completion of a project of special interest to
the United States was described at the meeting.
This was the translation into Spanish together
with a glossary of the following bulletins recently
revised by the United States Children's Bureau:
Prenatal Care, Infant Care, and Tour Child From
One to Six.
The earlier edition of these bulletins had pre-
viously been translated into Spanish and had been
widely distributed throughout the American re-
publics. When translations of the revised edition
were projected, the Institute's technical delegate
in Chile, Dr. Guillermo Morales Beltrami, sug-
1158
gested that the Institute might be of assistance by
correlating local and regional popular terms used
in any future editions in order that they might be
easily intelligible throughout Central and South
America. Accordingly, the Director and the Sec-
retary of the Institute personally supervised three
translators who were contracted by the Depart-
ment of State to do the work at Montevideo. The
revised texts were then circulated to the technical
delegates in the various countries, who were re-
quested to supply appropriate colloquial terms
where necessary. The result was the compilation
of a glossary, first of its kind, which will be in-
cluded in the Spanish text of each of the three
bulletins. The United States alternate technical
delegate presented the fii"st of the three bulletins
to come from the United States Government Print-
ing Office to the Council meeting and expressed the
thanks of the Department of State and of the Chil-
dren's Bureau for the part of the Institute in this
example of inter- American cooperation.
The Council devoted special attention to plans
for the Ninth Pan American Child Congress to be
held at Caracas and formulated suggestions for
the agenda which will be forwarded by the Insti-
tute to the Venezuelan organizing committee.
Following the election of officers, the Director
General called attention to the creation by the
United Nations of the International Children's
Emergency Fund and to the fact that Miss Len-
root had been appointed to represent the United
States on the Executive Board of this fund.
After considerable discussion of relationships be-
tween the Institute and the United Nations and
its specialized agencies, it was agreed that the
Institute might consult the Secretariat of the
United Nations as to the possibility of designating
an observer to follow developments affecting child
welfare. It was also agreed that the Director
General should be present at the Ninth Inter-
national Conference of American States, and that
the Institute should, if possible, be represented at
the Ninth Pan American Child Congress by the
President, Secretary, and Director General, the
hope being expressed that they might be designated
as members of the delegations of their respective
countries. It was also agreed that, in accordance
with the recommendation of the Eighth Pan
American Child Congress, the next meeting of the
(Continued on page 1177)
Department of State Bulletin
THE RECORD OF THE WEEK
European Initiative Essential to Economic Recovery
REMARKS BY THE SECRETARY OF STATE'
I need not tell you gentlemen that the world
situation is very serious. That must be apparent
to all intelligent people. I think one difficulty
is that the problem is one of such enormous com-
plexity that the very mass of facts presented to the
public by press and radio make it exceedingly
difficult for the man in the street to reach a clear
appraisement of the situation. Furthermore, the
people of this country are distant from the
troubled areas of the earth and it is hard for them
to comprehend the plight and consequent reactions
of the long-suffering peoples, and the effect of those
reactions on their governments in connection with
our efforts to promote peace in the world.
In considering the requirements for the rehabili-
tation of Europe, the physical loss of life, the
visible destruction of cities, factories, mines, and
railroads was correctly estimated, but it has be-
come obvious during recent months that this visible
destruction was probably less serious than the
dislocation of the entire fabric of European econ-
omy. For the past 10 years conditions have been
highly abnormal. Tlie feverish preparation for
war and the more feverish maintenance of the war
effort engulfed all aspects of national economies.
Machinery has fallen into disrepair or is entirely
obsolete. Under the arbitrary and destructive
Nazi rule, virtually every possible enterprise was
geared into the German war machine. Long-
standing commercial ties, private institutions,
banks, insurance companies, and shipping com-
panies disappeared, through loss of capital, ab-
sorption through nationalization, or by simple de-
struction. In many countries, confidence in the
local currency has been severely shaken. The
breakdown of the business structure of Europe
during the war was complete. Recovery has been
seriously retarded by the fact that two years after
the close of hostilities a peace settlement with Ger-
many and Austria has not been agreed upon. But
even given a more prompt solution of these diffi-
cult problems, the rehabilitation of the economic
structure of Europe quite evidently will require
a much longer time and greater effort than had
been foreseen.
June 15, J 947
746512—47 3
There is a phase of this matter which is both
interesting and serious. The farmer has always
produced the foodstuffs to exchange with the city
dweller for the other necessities of life. This
division of labor is the basis of modern civiliza-
tion. At the present time it is threatened with
breakdown. The town and city industries are not
producing adequate goods to exchange with the
food-producing farmer. Raw materials and fuel
are in short supply. Machinery is lacking or worn
out. The farmer or the peasant cannot find the
goods for sale which he desires to purchase. So
the sale of his farm produce for money which he
cannot use seems to him an unprofitable, transac-
tion. He, therefore, has withdrawn many fields
from crop cultivation and is using them for graz-
ing. He feeds more grain to stock and finds for
himself and his family an ample supply of food,
however short he may be on clothing and the other
ordinary gadgets of civilization. Meanwhile
people in the cities are short of food and fuel. So
the govermnents are forced to use their foreign
money and credits to procure these necessities
abroad. This process exhausts funds which are
ui'gently needed for reconstruction. Thus a very
serious situation is rapidly developing which bodes
no good for the world. The modern system of the
division of labor upon which the exchange of prod-
ucts is based is in danger of bi'eaking down.
The truth of the matter is that Europe's re-
quirements for the next three or four years of for-
eign food and other essential products — princi-
pally from America — are so much greater than
her present ability to pay that she must have sub-
stantial additional help or face economic, social,
and political deterioration of a very grave
character.
The remedy lies in breaking the vicious circle
and restoring the confidence of the European
people in the economic future of their own coun-
tries and of Europe as a whole. The manufac-
' Made on the occasion of commencement exercises at
Harvard University on June 5, 1947, and released to the
press on the same date.
1159
THB RECORD OF THE WEEK
turer and the farmer throughout wide areas must
be able and willing to exchange their products for
currencies the continuing value of which is not
open to question.
Aside from the demoralizing effect on the world
at large and the possibilities of disturbances aris-
ing as a result of the desperation of the people
concerned, the consequences to the economy of the
United States should be apparent to all. It is logi-
cal that the United States should do whatever it
is able to do to assist in the return of normal eco-
nomic health in the world, without which there
can be no political stability and no assured peace.
Our policy is directed not against any country or
doctrine but against hunger, poverty, desperation,
and chaos. Its purpose should be the revival of
a working economy in the world so as to permit the
emei'gence of political \nci social conditions in
which free institutions can exist. Such assistance,
T am convinced, must not be on a piecemeal basis
as various crises develop. Any assistance that this
Government may render in the future should pro-
vide a cure rather than a mere palliative. Any
government that is willing to assist in the task of
recovery will find full cooperation, I am sure, on
the part of the United States Government. Any
government which maneuvers to block the recovery
of other countries cannot expect help from us.
Furthermore, governments, political parties, or
groups which seek to perpetuate human misery in
order to profit therefrom politically or otherwise
\yill encounter the opposition of the United States.
It is already evident tliat, before the United
States Goveinment can proceed much further in
its efforts to alleviate the situation and help start
the European world on its way to recovery, there
must be some agreement among the countries of
Europe as to the requirements of the situation and
the part those countries themselves will take in
order to give proper effect to whatever action
might be undertaken by this Goverimaent. It
would be neitlier fitting nor efficacious for this
Government to undertake to draw up unilaterally
a program designed to place Europe on its feet eco-
nomically. This is the business of the Europeans.
The initiative, I think, must come from Europe.
The role of this country should consist of friendly
aid in the drafting of a European program and of
later sujDport of such a program so far as it may
be practical for us to do so. The program should
be a joint one, agreed to by a number, if not all,
European nations.
An essential part of any successful action on the
part of the United States is an understanding on
the jDart of the people of America of the character
of the problem and the remedies to be applied.
Political passion and prejudice should have no
part. With foresight, and a willingness on the
part of our people to face up to the vast responsi-
bility which history has clearly placed upon our
country, the difficulties I have outlined can and
will be overcome.
Economic Aid to Italy ,
STATEMENT BY THE SECRETARY OF STATE'
[Released to the press Juue 2]
The American Government naturally wishes
every success for Prime Minister de Gasperi and
the new Italian Government in the difficult tasks
which they must face. There are many bonds be-
tween Italy and the United States, and the Ameri-
can people have a deep and friendly interest in
the Italian welfare. We are happy to have been
of assistance in rebuilding the Italian economy,
and we shall continue to give aid to the Italian
people who have demonstrated their sincere and
abiding faith in democratic processes for the pres-
ervation of their individual liberties and basic
human rights.
^ Made on the occasion of the establishment by Premier
de Gasperi of a new Italian Government.
1160
There is no desire in the United States to mini-
mize Italy's problems. But the Italians have al-
ready overcome many of their most immediate
postwar difficulties, and I feel that they may re-
cently have been underestimating their own ca-
pacity for reconstruction. Everyone who comes
back from Italy remarks upon the vitality of the
people, their will to work, and their very real at-
tachment for democracy. The world has watched
with admiration, and even surprise, the progress
which the Italians have made thus far in taking
up their lives again as a free people. I have every
confidence that they will continue that progress
and, with the help we shall give them, rebuild Italy
as a peaceful and pi'osperous nation.
Department of State Bulletin
Italian War Claims Negotiations
Nearing Conclusion
[Released to the press June 4]
The financial negotiations now taking place in
Washington between the Government of Italy and
this Government, which negotiations were insti-
tuted on May 21, 1947, are steadily approaching
a conclusion. These negotiations, headed by Ivan
Matteo Lombardo, on the Italian side, and Wil-
lard L. Thorp, Assistant Secretai-y of State, for
the United States, are designed to resolve the out-
standing financial questions between the two Gov-
ernments arising out of the war and which were
not definitively settled by the treaty of peace.
Consistent with this Government's position dur-
ing the discussions at Paris and New York, which
led to the final draft of the Italian treaty, Mr.
Thorp has, in his talks with Mr. Lombardo, pro-
posed settlements on the various financial ques-
tions which take into account the objective of
assisting tlie Italian economy, as well as arriving
at a fair disposition of both American and Italian
claims. In this connection, Mr. Lombardo has
been examining with Mr. Thorp procedures look-
ing to the return to the Italians of Italian prop-
erty in this country which has either been vested
or blocked by American authorities.
Recovery of Identifiable Property Re-
moved From Allied Countries
[Released to the press June 5]
The Department of State announced on June 5
that American owners of identifiable propertj'
which was removed, or is presumed to have been
removed, from an Allied country by enemy forces
during tlie war should not submit requests for the
recovery of the looted property directly to the au-
thorities in control of the ex-enemy country in
which it is thought the loot may be found. Such
requests should be submitted to the government of
the Allied country in which the property was lo-
cated at the outbreak of the war. If the appropri-
ate agency of the Allied government is not known,
the I'equest may be directed for forwarding to the
Embassy, Legation, or Consulate of the United
States in the Allied country. It is the responsi-
bility of the government of the country in which
the property was located at the outbreak of the
war to report the removal to the proper authori-
ties in the countries to which the property may
THE RECORD OF THE WBBK
have been taken. It is tlie responsibility of the
latter authorities in turn to conduct the necessary
search.
The principle that looted property which is dis-
covered in ex-enemy territory will be delivered to
the government of the country from which it was
removed has been established for Germany by the
Allied Control Authority, for Japan by the Far
Eastern Commission, for tlie American zone in
Austria by the United States Government, and
for Bulgaria, Hungary, Italy, and Kumania by
armistice and peace-treaty provisions. Until in-
formed to the contrary, Americans should assume
that each Allied government will deliver looted
property discovered on territory under its juris-
diction to the government of the Allied country
from which it was taken.
The larger, more valuable, and more distinctive
an article is, the greater the possibility that it may
be located. Little hope can be held for the return
of articles of small size or value or of articles not
easily identifiable.
Request for Information Relating
to Hungarian Situation ^
In as much as all reports agree that Prime Min-
ister Ferenc Nagy submitted his resignation as a
result of information transmitted by the chairman
of the Allied Control Council at Budapest to the
Hungarian Government, the Department has in-
structed the American Legation at Budapest to
have the American representative on the Allied
Control Commission, Brig. Gen. George H.
Weems, request that he be furnished with copies
of all information handed by the Soviet Chairman
on behalf of the Soviet authorities to the Hun-
garian Government as provided in paragraph 6 (c)
of the revised Allied Control Commission statutes.
Paragraph 6 (c) of the revised Allied Control
Commission statutes reads as follows :
"United States and Britisli representatives on
the Allied Control Commission shall have the
right:
"(c) To receive copies of all communications,
reports and other documents which may interest
the Govermnents of the United States and the
United Kingdom."
' statement read to press and radio correspondents by
Michael J. McDermott, Special Assistant to the Secretary
for Press Relations, at his press conference on June 4.
June 15, 1947
1161
Position on Resettlement of Displaced Persons
STATEMENT BY ASSISTANT SECRETARY HILLDRING i
I am appearing before this Subcommittee today
in support of H.E. 2910. The Department of
State has already formally expressed its whole-
hearted endorsement of the aims of this bill in re-
sponse to an official inquiry from the chairman of
this Subcommittee. We also suggested certain
technical amendments which we think will improve
the bill. Since they are of minor importance as
compared to the broad purposes of the bill, I will
not repeat our observations here.
My support of this bill is the logical conclusion
of my long experience with displaced persons and
their problems. I believe that it would be useful
to the Subcommittee to have a statement of that
experience and of the conclusions I have reached
as to the nature of the DP problem.
My contact with this problem began in 1943
when I was Director of the Civil Affairs Division
of the Office of Chief of Staff in the War Depart-
ment. At that time Secretary Marshall, who will
testify at a later hearing, was Chief of Staff. We
were actively planning for the invasion of western
Europe. Plans for the disposition of displaced
persons were included in the over-all program for
the conquest of Germany. In addition to being
actively engaged in the formulation of those plans,
I recommended to General Eisenhower, then Su-
preme Commander, top-notch militai'y personnel
who would specialize in handling displaced
persons.
I remained Director of the Civil Affairs Division
until March 1946. During this three-year period,
which included two personal trips to Europe, I
was in constant touch with all aspects of the dis-
placed-persons jjroblem. ^Alien I left the War
Department to become Assistant Secretary of
State, Mr. Byrnes asked me to take charge of all
aspects of the displaced-persons problem in the
State Department, in addition to my basic respon-
' Made before the House of Representatives Subcom-
mittee on Immigration and Naturalization on June 4,
1947, and released to the press on the same date. Mr. Hill-
dring is Assistant Secretary of State for occupied areas.
1162
sibility for the occupied areas of Germany, Japan,
Austria, and Korea.
In order to qualify further as an expert witness
on this subject, I would like to tell you briefly what
this continuing interest in displaced persons has
involved during the past four years. Daily, I
have seen cables from across the seas on all phases
of the displaced-persons problem — statistics, re-
quests for advice and instructions, recommenda-
tions, investigations, reports, and so forth, in a
never-ending stream. I have seen and been re-
sponsible for literally hundreds of cables to the
other side requesting information, conveying com-
plaints, making suggestions, issuing instructions,
and so forth. I have met frequently with delega-
tions from American organizations interested in
different types of displaced persons. They have
come with queries, information, advice, and some-
times with complaints. The investigations which
have resulted from those complaints have taught
us a great deal. Wlien the complaints were ill-
founded, we have so advised the complainant.
Wlien they were justified, corrective action was
taken as promptly as possible. During this period
I have had more than written reports on the dis-
placed-persons problem. I have been privileged
to have first-hand accounts of all angles of the
situation from all types of persons fresh from the
field — military commanders, newspapermen. Con-
gressmen, special observers, and outstanding pub-
lic citizens. I have had frequent occasions to talk
to many top-ranking diplomats and military repre-
sentatives of other countries. In addition, I have
visited many DP camps and talked to many DP's.
So I think I can say with assurance to the Sub-
committee that I have had a many-sided education
in the displaced-persons field. I think I have
developed an objective, composite picture of the
DP situation.
Until now this has been a problem which has
taxed the imagination, patience, and resourceful-
ness of soldiers, diplomats, and administrators.
We have now reached the stage where future policy
must be determined by the legislators. The oppor-
Deparfment of State Bulletin
tunity is afforded by H.R. 2910. The future policy
will be determined by the Congress whether its
action on such a bill is affirmative or negative or
inconclusive. The lives and futures of a million
men, women, and children hang upon the decision
to be made by the Congress. I am appearing be-
fore you in the hope that I may be able to present,
as briefly and factually as I can, the background
information essential to an informed decision.
Certain basic questions are probably uppermost
in your minds :
Who are these displaced persons and how do we
happen to be responsible for them?
How many are there ?
What are their nationalities, ages, occupations,
and religion ?
Wliat are their attitudes toward work and
politics ?
Wliat are they costing the United States tax-
payer ?
Wliat possible alternatives confront the Con-
gress for their future ?
The story of how the displaced persons came
into our hands is by now a familiar one. I will
summarize it very briefly. The Nazis built up
their war machine by ruthless exploitation of non-
German labor. They brought into Germany
many millions from all Nazi-dominated areas of
Europe. They also carried out a ruthless policy
of extermination or exploitation of political, re-
ligious, and forced-labor victims. Millions were
annihilated in this process. When our Allied
armies liberated Europe, they liberated 8 million
of the survivors of these so-called displaced per-
sons. With phenomenal precision our armies suc-
ceeded in returning 7 million to their homes, after
providing temporarily the necessary food, cloth-
ing, medical attention, and shelter. I am submit-
ting to the Subcommittee some charts and graphs
showing the statistics of this achievement. But
in one important respect our initial plans were
awry. We had assumed that once the fighting was
over and transportation became available, practi-
cally all of the displaced pei'sons would be eager
to return to their former homes to participate in
the painful reconstruction of their countries. We
had not reckoned sufficiently with the political and
social upheavals and the remaking of national
maps which had taken place in Europe during the
war. Hundreds of thousands felt that they no
THB RECORD OF THE W£BK
longer had a country. They were in fundamental
disagreement with the type of new government in
power and the new economic pattern. They felt
there was no opportunity for them to exist in those
areas, much less rebuild their lives there. Others,
particularly the Jewish survivors, were stvmned by
the cataclysmic extermination of 6 million Jews
and by the insidious results of some of Hitler's in-
doctrination in the countries where they formerly
lived. As a result, there is an aggregation of one
million persons in Germany, Austria, and Italy,
preponderantly in the zones we govern. Their
fate lies in our hands.
I would like to summarize a few basic statistics
about the displaced persons in Germany, Austria,
and Italy. There are a little more than one million
in the three countries — 850,000 in Germany, 148,-
000 in Austria, and the rest in Italy. About 8 out
of every 10 displaced persons live in camps or or-
ganized communities. About 65 percent are Cath-
olic, 20 percent Jewish, and 15 percent Protestant.
Twenty-one percent of the displaced persons are
children up to the age of 18; 66 percent are be-
tween the ages of 18 and 44. Only 13 percent are
above the age of 44. We have ahnost 60 percent
of the displaced persons in the United States zones
and under United States care.
About 17 percent of the displaced persons are
Baits, 30 percent Poles, 7 percent Yugoslavs, 20
percent Jewish, and the remainder primarily
Ukrainians, Russians, and stateless. These statis-
tics may vary slightly from time to time depending
upon the source. Because of the dislocation in Eu-
rope and the intricate political situation in eastern
Europe and central Europe and the loss of many
identity documents, it is not possible to get statis-
tics which everyone will agree upon. Wliat I have
given you is the consensus based upon our best
estimates from various sources. With your per-
mission, I am inserting in the record some graphs
and charts giving these statistics in detail.
Wliat is the attitude of displaced persons toward
work? I would like to spend some time on this
question because it is crucial and basic to the entire
question of whether displaced persons would make
good citizens of the United States. I must say
frankly that there has been a good deal of misin-
formation about this aspect of the question. Some
of it results from fleeting, unfavorable impres-
sions based on cursory visits to a few camps. It is
June 15, 1947
1163
THE RECORD OF THE W£BK
most important to view this aspect of the problem
in true perspective and not to jump at any con-
clusions or form any hasty judgments. Since tlie
displaced persons had been brought to Germany
for hard labor, it was only natural that upon their
liberation they should have had a revulsion against
working. It was also only natural that they should
have felt that their oppressors, who were respon-
sible for their condition, should perform for them
much of the menial work which they had been
doing on behalf of their oppressors. It was also
natural that while the displaced persons lived in
daily expectation that they would be leaving Ger-
many, they should not adapt themselves immedi-
ately to employment. In spite of all these factors,
I think that the displaced persons have established
a remarkable record for themselves in their atti-
tude toward work. This has become particularly
evident after stabilization of conditions during the
past year.
About 40 percent of the displaced persons are
employable. Of this number about 80 percent in
Germany are working in regular jobs, either in
camps or otherwise. Many professional, admin-
istrative, technical, and manual jobs necessary to
the formation of the assembly centers have been
filled almost exclusively by displaced-persons
workers. The collective perfoi'mance and the sense
of responsibility of tliese workers have been of
such a high order that the actual management of
the centers has now been delegated to them to a
degree far beyond wliat was initially planned.
Many displaced persons are also undergoing
supervised vocational training within the camps
and many others hold jobs outside of the camps
with the occupation authorities, other Allied
agencies or, in limited numbers, in the German
economy. However, shortages of supplies have
limited the number of camp jobs. Also, a number
of workers live in camps located so far from em-
ployment centers that it is not practicable for
them to take outside jobs. Further difficulty arises
from the fact that the M'ork incentives we are able
to offer are not very substantial, as workers paid
in reichsmarks find that such currency will buy
little in Germany and has no foreign-exchange
value. During the past year, an increasingly large
number of displaced persons have shown a willing-
ness to take jobs in connection with German iDublic
works. However, practically no displaced persons
want to remain permanently in Germany so they
have very little interest in its future stability.
Because the Jews were singled out by the Nazis for
particularly brutal treatment, it is understandable
that they have no wish to work for or under the
Germans. However, just as with other displaced
persons, some Jews are now less averse to taking
temporary jobs in the German economy.
All responsible reports agree that the average
displaced person, far from being lazy, inefficient,
and irresponsible, is eager to rebuild his life
through hard, constructive work, and is ready and
able to accept resi^onsibility.
The caliber of displaced persons as workers
should be judged not by their initial attitudes
after liberation, nor even by their record of per-
formance, excellent though it has been. In my
o^Dinion their caliber should be judged by their
potential ability to work as free men in a free
country. Adversity has taught these people to
be adaptable. They have many basic skills
which could be put to good use, and they are
eager to learn others. During the course of
these hearings we will give you further detailed
information about these skills. I am particu-
larly interested now in sti'essing to you these
qualities and attitudes which cannot be reflected
in statistics. I state unequivocally, on the basis
of my long experience with displaced persons,
that they are made of the stuff of which good
American citizens are made.
I know the thought that perhaps comes to
some of your minds. You say, we agree that
they will be productive economically, but will
they be able to fit into our way of life? Let us
be frank about it: the question is often asked,
"Are they Communistic?" I want to meet this
issue squarely. Any statement or innuendo or
intimation that the dis^Dlaced persons in Ger-
many, Austria, or Italy are Communistic flies in
the face of the basic fact of the situation. That
basic fact is that the displaced persons come from
areas which have now come to be dominated by
the Soviets. They are imwilling and fear to
return to those areas precisely because they are
now dominated by Communist governments.
They are opposed to that type of economy and
government. The Union of Soviet Socialist Re-
publics has repeatedly and insistently demanded
that we solve the displaced-persons problem by
1164
Department of State Bulletin
forcibly returning all displaced persons to the gov-
ernments which now control the areas of origin.
We are not keeping any displaced persons from
returning, but we steadfastly refuse to force them
back.
I come now to the question of the cost of these
displaced persons to the American taxpayer. In
testifying before the Senate Foreign Eelations
Committee and the House Foreign Affairs Com-
mittee on a resolution to authorize the United
States to participate in the International Refugee
Organization, I made the following estimate :
During the fiscal year 1947 the total dollar cost
to the United States of caring for displaced per-
sons will amount to approximately $130,000,000.
This figure includes an estimated $115,000,000
spent by the United States Army, the United
States share of UNRRA expenses for displaced
persons, and the United States contribution to the
Intergovernmental Committee on Refugees. If
the United States joins the International Refugee
Organization, the total expense for the fiscal year
1948 will amount to about $73,500,000. It is evi-
dent, therefore, that even with the tremendous
savings to be effected by the IRO, there will be a
continuing expense to the American taxpayer un-
til the problem is solved.
I would like to digress for a moment at this
point to make absolutely clear the relationship of
immigration and the IRO. The IRO participa-
tion bill, which unanimously passed the Senate
and is awaiting consideration on the floor of the
House after unanimous approval by the House
Foreign Affairs Committee, specifically provided
that the authority to join the IRO does not commit
Congress to any particular policy on immigration.
The Department of State has made it clear
throughout the discussion on this resolution that
it believed that there was nothing in the IRO con-
stitution to compel any country to absorb immi-
grants and that it is up to Congress to decide what
our immigration policy shall be. In other words,
the IRO participation bill takes an absolutely
neutral position on immigration. We are now in
the appropriate forum for such a decision.
I have tried to give the Committee a dispas-
sionate analysis of the factual background of the
displaced-persons problem. I would now like to
present to the Committee our considered view as to
the four possible solutions to the problem. The
June 15, 1947
THE RECORD OF TH£ WEBK
responsibility for choosing one of these possibili-
ties now rests squarely with the Congress, but I
hope that I may take this opportunity to recom-
mend the one course which seems to us the most
preferable.
1. We could forcibly repatriate all of the dis-
placed persons remaining in our zones. We could
use the German police and our own soldiers to
round up all of the displaced persons at point of
bayonets, load them into trucks and box cars, and
transport them to eastern Europe. Or, as a varia-
tion, we could herd them by force into a few col-
lecting points and invite the military and govern-
mental authorities of the eastern European coun-
tries to come and haul them off. We have not
attempted such a policy to date. We would not
attempt such a policy of our own accord.
2. We could close the displaced-persons camps
and turn out the victims of German aggression to
fend for themselves amidst their oppressors. The
displaced persons do not want to become Germans.
The Germans do not want the displaced persons to
live among them. Economic conditions in Ger-
many are so bad that displaced persons could not
be supported. If Congress approves our member-
ship in the IRO, it will mean that this course has
been ruled out by Congress for the coming year at
least. But as long as displaced persons retain
that status in Germany, the Congress will be faced
with a similar decision every year. Unless some
other provision is made by Congress, this solution
would ultimately have to be adopted by military
government.
3. We could continue indefinitely to maintain
displaced persons in camps, segregated from the
economy and government of Germany. Wliile this
might afford an interim solution, it would not
advance the problem any closer to an ultimate
solution. On the contrary, such a course would
condemn the DP's to a continued life of uncer-
tainty and would dissipate their energies and
skills. Moreover, the United States taxpayer
would have to continue to pay for tlieir upkeep
either through the IRO or on a unilateral basis.
Will Congress decide upon this course of action?
4. It is possible to resettle displaced persons in
various countries of the world able and willing
to receive them. This is the only alternative
which, in my opinion, will settle the problem once
and for all in a manner consistent with American
principles. I do not suggest for a moment that
1165
THE RECORD OF THB WEEK
we take all of the displaced persons into our own
country. I do say that we who have a majority
of displaced persons now in our hands and sub-
ject to our ultimate governmental authority
should take the lead in giving some of them a
chance to recreate their lives in America. We
have done all we can to bring in a maximum num-
ber under the existing quota laws, but as other
witnesses have pointed out, the present laws do not
permit this as a solution.
We will not lessen our efforts to resettle as many
of these displaced persons as possible in Europe
and Latin America, and to obtain a just solution
of the Palestine problem which may enable a
large number of displaced Jews to enter the Holy
Land. But we cannot pursue these efforts with
any degree of success if we ourselves are not will-
ing to help relieve ourselves of our own problem.
During the course of the next few weeks you
will hear many witnesses on this subject. They
will represent many points of view and many
walks of life. They will discuss all aspects of
this problem. But when all the testimony is
ready to be weighed carefully. Congress will still
have to choose among these alternatives: forcible
repatriation, abandonment to the German econ-
omy, indefinite maintenance in camps, or resettle-
ment in various countries, including the United
States. In my opinion H.R. 2910, which accepts
the fourth alternative, points toward the right
solution. The decision is for Congress.
Surplus Property Credit to Hungary
Suspended
[Released to the press June 2]
The United States Government is considering
the situation which has arisen in Hungary. Pend-
ing clarification of developments there, it has been
decided to suspend the further execution of the
surplus-property credit agreement concluded with
Hungary.' It is understood that, of tlie total
credits authorized for Hungary by the Surplus
Property Administration, amounting to 30 million
dollars, over 15 million dollars has not yet been
utilized.
' Bulletin of Feb. 23, 1947, p. 341.
' For texts of notes exchanged between the two Govern-
ments, see Department of State press release 457 of June
5, 1947. For text of the agreement see Bulletin of Feb. 4,
1945, p. 172.
1166
Greek Air-Transport Agreement
By a note dated May 2, 1947, the Greek Em-
bassy in Washington gave notification of the ap-
proval by the Greek Parliament of the air-trans-
port agreement between the United States and
Greece signed at Athens on March 27, 1946. Ac-
cordingly, the agreement, pursuant to article 12
thereof, definitively entered into force on May 22,
1947.
Routes Designated in Air-Transport
Agreement With Ireland
The Department of State announced on June 5
that the determination of traffic points in the
United States to be granted to an airline or air-
lines to be designated by the Goverimient of Ire-
land, as provided for in paragraph B of the annex
of the air-transport agreement concluded between
the United States of America and Ireland in Feb-
ruary 1945, has been accomplished through an
exchange of notes between the Department of
State and the Irish Legation.^
Airlines of Ireland authorized under the agi'ee-
ment are accorded, in the territory of the United
States, rights of transit, non-traffic stop, and com-
mercial entry for international traffic at Boston,
New York, and Chicago on the following route:
Ireland via intermediate points to New York
(via Boston) and Chicago, in both directions ;
provided that Chicago shall not be served on
any flight serving New York and/or Boston.
President Truman Visits Canada
The President left Washington for Ottawa on
June 9 to return the visit of the Governor General
of Canada to Washington last February. The
President and Mrs. Truman were guests of the
Governor General and Lady Alexander at Govern-
ment House and later moved to the American
Embassy.
On June 11 the President addressed the Sena-
tors and lilembers of the House of Commons in the
House of Commons Chamber.
The President left Canada for Washington on
June 12.
Deparfment of State Bulletin
Support Urged for Approval of Anglo-American Oil Agreement
MEMORANDUM OF CHARLES FAHY, LEGAL ADVISER >
Concern has been voiced in connection with the
consideration of the Anglo-American petroleum
agreement that the treaty will confer upon the
Congress "new or added p)ower to regulate or
control the domestic petroleum industry of the
United States in excess of such powers that may
now be lawfully vested in the Congress . . ."
(see resolution adopted January 22, 1947, by the
directors of the American Petroleum Institute).
This apprehension is apparently based on the as-
sumption that the agreement is analogous to the
treaty involved in Missouri v. Holland, 252 U.S.
416 (1920) , and that the reasoning of that decision
may be urged as supporting the validity of future
Federal legislation dealing with matters normally
within the sphere of the States.
The provision of the agreement brought into
issue by this contention is article II, for by para-
graph (a) of article VII "no provision in this
Agreement, with the exception of Article II, is
to be construed as applying to the operation of
the domestic petroleum industry within the coun-
try of either Government." Article II provides:
"In furtherance of the purposes of this Agreement, the
signatory Governments will so direct their efforts :
"(a) That all valid concession contracts and lawfully
acquired rights shall be respected, and that there shall
be no interference directly or indirectly with such con-
tracts or rights;
"(b) that with regard to the acquisition of exploration
and development rights the principle of equal opportunity
shall be respected ;
"(c) that the exploration for and development of petro-
leum resources, the construction and operation of refiner-
ies and other facilities, and the distribution of petroleum,
shall not be hampered by restrictions inconsistent with
the purposes of this Agreement."
This provision contemplates that the United
States will, in furtherance of the purposes of the
agreement, direct its efforts in accordance with cer-
tain principles which are stated therein. Article
II is by its very nature not self-executing.
"A treaty is in its nature a contract between two na-
tions, not a legislative act. It does not generally effect,
of itself, the object to be accomplished, especially so far
as its operation is infra-territorial; but is carried into
execution by the sovereign power of the respective parties
to the instrument.
"In the United States a different principle is established.
Our constitution declares a treaty to be the law of the
land. It is, consequently, to be regarded in courts of jus-
tice as equivalent to an act of the legislature, whenever it
operates of itself without the aid of any legislative provi-
sion. But when the terms of the stipulation import a
contract, when either of the parties engages to perform
a particular act, the treaty addresses itself to the political,
not the judicial department ; and the legislature must
execute the contract before it can become a rule for the
Court." [Chief Justice Marshall in Foster v. Neilson,
2 Pet. 253, 314 (1829).]
As such, article II cannot be given effect as mu-
nicipal law ex proprio vigore the day the treaty
comes into effect. In that sense, no Federal or
State law can be deemed inconsistent with the
treaty at the time it becomes effective and be held,
for that reason, invalid.
The migratory bird treaty involved in Missowd
V. Holland, although also not self-executing,
differs fundamentally from the Anglo-American
petroleum agreement. There the parties agreed
not only to certain objectives but to the specific
means by which those objectives were to be
reached. The specific regulatory measures each
government agreed to put into force were stated.
Thus, that treaty provided (39 Stat. 1702) that
the parties agreed that close seasons "shall be
established" and defined what the close seasons
were to be (articles II, III, and IV) ; that the
taking of certain nests or eggs "shall be pro-
hibited . . . under such laws or regulations as
the High Contracting Powers may severally deem
appropriate" (article V) ; that certain shipments
"shall be prohibited"; and that certain packages
transported or offered for transportation shall be
marked in a specified manner (article VI).
Finally, the treaty provided that the parties "agree
themselves to take, or propose to their respec-
' Testimony presented to the Senate Committee on For-
eign Relations on June 3, 1947, and released to the press
by that committee on the same date.
June 75, 7947
1167
THE RECORD OF THE WEEK
tive approjjriate law-making bodies, the necessary
measures for insuring the execution of the present
Convention" (article VIII).
Such is neither the portent nor the language of
article II of the Anglo-American petroleum agree-
ment. It states general principles to govern the
conduct of the parties. It does not purport to
indicate any specific measures by which those
principles are to be observed. It only binds the
parties to direct their efforts in conformity with
those principles.
In faithfully performing this obligation a
variety of measures might be initiated by this
Government. A request to Congress for certain
legislation might be one such measure. But, un-
like the situation resulting from the migratory
bird treaty, this Government is under no obliga-
tion to seek the enactment of any specific legisla-
tion the content of which is defined by the treaty.
The meaning of the phrase "so direct their
efforts" appearing in article II is determinative
of the answer to the question raised and the in-
tendment of that phrase has not been left to
speculation.
Individuals who represented this Government
in negotiating this agreement, members of their
staff, and industry advisers to the negotiators
either have stated or will state to this Committee
that by use of this phrase in the agreement it was
not intended to give any new power to the Con-
gress with respect to the subject matter of the
agreement. They have also testified or will testify
that the agreement was not intended to be in
derogation of whatever jurisdiction and power
the States may possess over the subject matter.
Their testimony is part of the "preparatory work"
to which a court will refer in interpreting a treaty.
"It [the preparatory work] may refer to the expression
of opinion of Governments or authoritative members or
committees of legislative bodies during the process of ob-
taining parliamentary approval of the treaty." [Lauter-
pacht, Some Observations on Preparatory Work in the
Interpretation of Treaties (1935), 48 Harv. L. Rev. 549,
552, f.n. 3.]
Such clear expressions of what the intent was on
this matter, voiced by qualified individuals, includ-
ing representatives of the Executive branch of the
Government, before this Committee, made part of
the official record in the agreement-making process
of this treaty, and, approved by the Senate, will be
1168
of persuasive influence should the contrary posi-
tion be urged at a later date before the courts of
this country. See II Hyde, International Law
Chiefty as Interpreted and Applied hy the United
States (2d rev. ed., 1945) § 533 D; V Hackworth,
Digest of International Laio (1943), § 497; I Wil-
loughby, The Constitution of the United States
(2d ed"., 1929), §319, to the effect that the con-
struction of treaties by the political departments
of the Government is held by the courts to be
entitled to much weight. And should a different
interpretation be urged before the Congi'ess in the
future, the testimony at this hearing will be in the
record to refute it.
Measures initiated by this Government to fulfil
its obligations under article II will have to rest
on the powers which the Federal Government pos-
sesses under the Constitution and the statutes of
the United States. In reliance upon such powers
certain Federal legislation may be sought and en-
acted. The consequences that will attach in the
field of Federal and State powers will be those
which would follow in any event as tlie residt of
the exercise of such powers by the Congress.
II
Concern has also been expressed that the Anglo-
American petroleum agreement confers power or
authority upon the International Petroleum Com-
mission provided for in the agreement "to regu-
late or control the foreign operations of nationals
of the United States" or "the domestic petroleum
industry of the United States". (See resolution
adopted January 22, 1947, by the directors of the
American Petroleum Institute.) Such concern
is not well founded.
Paragraph three of article IV defines the duties
and responsibilities of the Commission. It pro-
vides that the Commission shall "consider" prob-
lems of mutual interest ; that it shall "study" cer-
tain stated problems and matters; that it shall
"prepare" certain estimates; that it shall "report"
or "make" reports on certain matters. These are
the extent of the Commission's duties and responsi-
bilities.
"To study" and "to report" does not connote
control or regulation. All that is entailed is the ■
collection and consideration of information on g
problems of a given nature and the reporting of
the results of such study. If any doubt can exist
in this respect it is completely removed by para-
Department of Slafe Bulletin
graph (b) of article VI which provides that the
signatory po\Yei's agree :
"That no provision in this Agreement shall be construed
to require either Government to act upon any report or
THE RECORD OF THE WEEK
proposal made by the Commission, or to require the
nationals of either Government to comply VFith any report
or proposal made by the Commission, v^hether or not the
report or proposal is approved by that Government."
STATEMENT BY CHARLES B. RAYNER
It is my purpose, with your permission, first,
briefly to review the history of the negotiations
that have resulted in the present Anglo-American
petroleum agreement which is now before your
Committee for consideration, and second, to dis-
cuss the intent and significance of the principles
upon which agi'eement has been reached with the
Government of the United Kingdom.
In November 1943, the Department of State,
realizing the expanding international importance
of petroleum growing out of events resulting from
war conditions, invited the British Government to
send delegates to Washington to discuss problems
of mutual interest in the field of international
petroleum. The discussions were to be of a pre-
liminary and exploratory nature and, if agree-
ment could be reached, were to be embodied in a
bilateral agreement. This agi'eement was to be
followed in due course by an international con-
ference to develop a multilateral agreement in
which all nations interested in the international
trade in petroleum would be invited to participate.
The invitation was accepted by the British Gov-
ernment.
President Roosevelt, early in 1944, appointed
the following petroleum committee to handle the
negotiations with the British :
Cordell Hull, Secretary of State, Chairman
Harold L. Iclvos, Secretary of the Interior and Petroleum
Administrator for War, Vice Chairman
James Forrestal, Under Secretary of the Navy
Robert P. Patterson, Under Secretary of War
Leo T. Crowley, Foreign Economic Administrator
Charles E. AVilson, Vice Chairman, War Production Board
Ralph K. Davies, Deputy Petroleum Administrator for
War
Charles Rayner, Petroleum Adviser, Department of State
Preliminary and exploratory conversations by
technical committees took place between the two
Governments in March 1944, the British Delega-
tion being headed by Sir William Brown and the
American Delegation by Charles Rayner. A ten-
tative agreement was developed and recontunended
for approval to their respective committees, who
met in Washington during August 1944. The
British Government's Delegation was under the
chairmanshiiD of Lord Beaverbrook. It met with
the President's Committee on Petroleum, headed
by Secretary Ickes as vice chairman. The result
was an agreement on petroleum which was signed
on August 8, 1944, and submitted by the Presi-
dent to the Senate on August 26, 1944, for its ad-
vice and consent to ratification.
A great deal of adverse comment followed the
publication of the agreement. The American pe-
troleum industry took the position that the agree-
ment was so worded that it could be construed to
cover operations of the domestic petroleum indus-
try, that it gave mandatory powers to the Inter-
national Petroleum Commission to be set up under
the agreement, and that the confirmation of the
agreement as a treaty gave to the Federal Gov-
ernment powers to control the industry not con-
tained in present existing law. As none of these
objectives was contemplated by the negotiators of
the agreement and in view of the wide misunder-
standing that was current as to the purpose and
scope of the agreement, the President, at the re-
quest of the Secretary of State, on January 10,
1945, requested the Senate to return the agree-
ment "in order that consideration may be given,
in consultation with the Government of the United
Kingdom, to whatever revision appears to be nec-
essary to achieve its objectives and to remove
grounds for misunderstanding."
Following the return of the agreement by the
Senate, the objections raised by the American pe-
troleum industry received careful and detailed
study over a period of months by the interested
governmental agencies. Consultation was had by
^Made before the Senate Committee on Foreign Re-
lations on June 2, 1947, and released to the press on the
same date. Mr. Rayner is Adviser on Petroleum Policy,
Department of State.
June 15, 1947
1169
THE RECORD OF THE WBBK
the Petroleum Administration for War with rep-
resentative members of the American petroleum
industry and their advice and assistance given full
consideration. Additional provisions were added
to the agreement in order definitely to clarify its
purpose and clearly to limit its scope to the inter-
national and not the domestic trade in petroleum
and further to define the functions of the Interna-
tional Petroleum Commission as advisory and rec-
ommendatory only, with no executive powers. An
informal meeting was then held before your Com-
mittee during which the terms of the revised agree-
ment which were to be used as a basis for re-nego-
tiation with the British were discussed in detail by
representative members of the Government and of
the American petroleum industry.
In September 1945 the American Delegation,
under the leadership of Secretary Ickes, met in
London with the British Delegation, headed by
Emanuel Shinwell, the Minister for Fuel and
Power. A revised agreement was successfully ne-
gotiated and was signed on September 24, 1945.
At the request of the Secretary of State, President
Truman submitted the agreement to the Senate on
November 1, 1945, with a view of receiving its
advice and consent to ratitication. It is now before
your Committee.
So much for the events leading up to the present
status of the agreement. Now as to the intent and
significance of the principles as they are stated in
the agreement.
In the preamble to the agreement which is be-
fore you for consideration, the statement is made
that it is essential to the security and well-being
of nations that ample supplies of petroleum be
available in international trade to meet increasing
market demands and that furthermore the oil re-
sources of the world are sufficient in volume amply
to satisfy that demand. I think that statement is
important and fully substantiated by the facts.
The events of the war have conclusively demon-
strated the essentiality of petroleum to the security
and economic well-being of all nations. We are
moving definitely into an age in which petroleum
will play an ever-increasing part. The prospec-
tive growth of commercial aviation brought about
by technological improvements resulting from war
experience, the development of faster oil-burning
transportation, and the increase in the mechaniza-
tion of industry world-wide are all factors point-
1170
ing to a universal and increasing demand for petro-
leum products. According to a study made by
Dr. S. P. Coleman, director of the Standard Oil
Company (New Jersey), filed with the Special
Senate Committee Investigating Petroleum Re-
sources, steadily rising world-wide petroleum de-
mand will top 9,000,000 barrels daily by 1951-55
and 11,000,000 barrels by 1961-65 as compared
with a prewar 1938 figure of 5,631,000 barrels and
a 1946 demand of over 7,000,000 barrels a day.
Against this prospective demand there are at pres-
ent the following known major reserves :
billion barrels
Western Hemispbere 28
Middle East 26
U.S.S.R 6
Total 60
equivalent on the basis of present demand to some
24 years' available supply. However, the geolog-
ical probabilities of many areas not yet thoroughly
investigated are such as to warrant a conservative
estimate that world reserves over-all are very much
in excess of that figure. This includes, it should
be noted, only the reserves of natural crude oil.
It does not take into consideration potentially huge
reserves from the conversion of natural gas, shale
oil, or synthetic oil produced from coal. Conse-
quently, it would appear that for the foreseeable
future ample supplies of petroleum are available
to meet the expected expanding demand in inter-
national trade in oil. It is important, therefore,
to note that we are dealing with a commodity of
which there is ample supply available to meet the
economic requirements of all nations and not one
in which there is an expected scarcity.
It is recognized that this agreement is prelim-
inary to the calling of an international conference
to consider the negotiation of a multilateral petro-
leum agreement and the two Governments agree
that as soon as practicable they will propose to
the governments of all interested producing and
consuming countries the negotiation of an inter-
national petroleum agreement. However, since
the vast majority of the world oil resources and
of the international trade in petroleum is under
the control of British and American nationals and^
since numerous problems of joint immediate in-
terest were involved, it appeared desirable to con-
clude a British- American agreement as a prelim-
Department of Stale Bulletin
inary measure to the formulation of a multilateral
igreement.
In articles I and II of the agreement certain
principles are set forth in respect to the conduct of
international petroleum trade. These principles
include :
1. The availability of ample supplies of petro-
leum in international trade to the nationals of
ill countries on a competitive and non-discrimina-
tory basis. The fact that petroleum reserves are
not distributed uniformly throughout the world
but occur only in certain limited geographic areas
which, with the exception of the United States,
are not major consumers of petroleum and the
further fact that many large consumers have very
limited indigenous production have given rise to
many troublesome questions in the acquisition of
petroleum supplies. This situation takes on in-
creased significance in consideration of the future
importance of petroleum to the economic progress
of nations and makes it all the more important
that ample supplies should be made available on a
competitive and nondiscriminatory basis in
international trade.
2. A recognition of the economic interests of
the producing countries in the development of
their petroleum resources. Petroleum resources
to a considerable extent have been found in coun-
tries whose economic and political advancement
has not as yet reached full development. Con-
cessions for the development of these resources
have been granted in many instances to British
and American nationals. This principle does not
assume any paternalistic attitude toward those
countries or imply that their resources have been
exploited unfairly, but it does recognize that the
royalty and other benefits accruing to the country
of origin should be fair and reasonable and con-
ducive to its economic advancement. It does not
imply any interference with or jurisdiction over
the manner in which such revenues are utilized by
the country where the petroleum is produced; it
is, however, a clear recognition that those revenues
should encourage sound economic progress.
3. Respect for valid concession contracts and
lawfully acquired rights. This principle means
that all valid concession contracts and rights
should be respected by both Governments and that
no efforts should be made by either Government
to molest such concessions and rights. This should
June 75, 1947
THE RECORD OF tHE WEEK
put an end to the suspicion and mistrust that,
particularly in the important Middle Eastern
area, have beclouded Anglo-American relations in
the past decades. The reference to valid conces-
sion contracts does not imply that any agency or
mechanism will be established to pass upon the
validity of existing concession contracts.
4. The principle of equal opportunity in ac-
quiring exploration and development rights. Uni-
lateral political intervention and undue political
pressure should not be brought to the support of
oil companies seeking concessions. The principle
of equal opportunity should prevail. This means
that neither Government should take advantage
of any special political position to influence the
granting of concessions to its nationals but should
confine its activities to the normal processes of
diplomatic support. It means that in third coun-
tries where either Government might have special
political influence no effort should be made to
impose nationality clauses or other restrictive
requirements which discriminate against the
nationals of other countries.
5. That the operations of the petroleum industry
shall not he hampered by restrictions inconsistent
with the purpose of this agreement. This prin-
ciple restates the basic purpose and intent of the
agreement : that the international petroleum trade
should be conducted in an orderly manner on a
world-wide basis to the end that ample supplies
of petroleum become available in international
trade to meet the economic needs of all countries,
subject always to considerations of military secu-
rity and to the provisions of such arrangements
for the preservation of peace and the prevention
of aggression as may be in force. Neither Gov-
ernment should impose restrictions that are incon-
sistent with this general purpose.
It would appear evident, therefore, that the
acceptance and open recognition of each of these
principles not only is in accord with our general
foreign policy, particularly with reference to its
advocacy of free enterprise, but would also result
in tangible, concrete benefits to this Government
and to its nationals engaged in international trade
in petroleum.
It is impoi-tant to note that the agreement has
reference to the international and not the domestic
petroleum trade. This reference is clarified by
article VII which states that no provision in tliis
H7i
THE RECORD OF THE WBiK
agreement, with the exception of article II (see
3, 4, and 5 above referring to valid concession
contracts, equal opportunity, and inconsistent re-
strictions), is to be construed as applying to the
operation of the domestic petroleum industry
within the country of either Government. Again,
in this connection, the statement is made (article
VII (b) ) that nothing in this agi'eement shall be
construed as impairing or modifying any law or
regulation, or the right to enact any law or regu-
lation, relating to the importation of petroleum
into the country of either Government. This lat-
ter clarification of the agreement was inserted at
the expressed request of representatives of the
American petroleum industry who wished it made
perfectly clear that this agreement did not have
any effect upon the import policy of the United
States.
Pending the formulation of a multilateral pe-
troleum agreement, the two Governments agree
to establish an international petroleum commis-
sion composed of six members, three of whom are
to be appointed by each Government. A great
deal of study was given to the functions of this
commission. Furthermore, it was felt that it was
essential to their work that they should maintain
close contact and have full and adequate consulta-
tion with their nationals engaged in the petroleum
industry. It seems to me important that on such
a highly technical problem as the international
petroleum trade there should be continued on an
appropriate scale the industry-Government col-
laboration which was so successfully conducted
during the war by the Petroleum Administration
for War.
The functions of the commission are stated in
the agreement as comprising a study of (1) the
problems of the international petroleum trade
caused by the necessity for postwar adjustments ;
(2) past and current trends; and (3) the effects
of changing technology upon the international pe-
troleum trade. In addition, the commission is to
prepare periodic estimates of world demands for
petroleum and the supplies available for meeting
such demands. The commission is to make such
additional reports as it may consider appropriate.
The functions of the commission are limited to
studying and reporting on problems affecting in-
ternational trade in petroleum. It is thus limited
to a purely advisory and recommendatory body.
This limitation is still further emphasized by arti-
1172
cle VI which states that no provision in this agree-
ment shall be construed to require either Govern-
ment to act upon any report or proposal made by
the commission or to require their nationals to
comply thereto, whether or not the report or pro-
posal is approved by that Goverimient.
The effectiveness of the studies and reports of
the commission will depend, therefore, upon their
merit, for neither the commission nor the Govern-
ment is given any power of enforcement. The
merit of such studies and reports will depend in
turn upon the caliber of the men appointed to the
commission by the two Governments. Certainly
they should be men of high standing and of un-
questioned ability with an intimate knowledge of
the problems affecting international trade in pe-
troleum. It is my opinion that they should be, or
should become upon their appointment. Govern-
ment employees, and that the commission should
consist of one or more men whose understanding
of petroleum problems is based upon actual experi-
ence with the industry itself, and that as Govern-
ment representatives they should not be affiliated
with any group within the industry. Only, in my
judgment, can representatives possessing those
characteristics command the full confidence and
respect of both Governments and the petroleum
industry.
The agreement comprises no elements of com-
pulsion and is voluntary and consultative in na-
ture. Hence it might well be asked — Wliat does
the agreement accomplish and why do we need an
agreement ? I think that the following summary
of what the agreement actually does accomplish
will fully answer those questions :
1. The agreement provides for a cooperative
approach to common problems and specifically for
the establishment of a forum where technical and
economic relations in the field of international
petroleum are to be discussed by expert representa-
tives of both Governments.
2. It provides for full and adequate Govern-
ment-industry collaboration and consultation in
the activities and deliberations of the Government
experts who form the commission.
3. It lays the foundation for the negotiations of
a multilateral petroleum agreement based upon the
general acceptance by all interested producing and
consuming countries of the principles embodied
Department of State Bulletin
in this agreement as a means of promoting their
national and economic well-being.
4. It embodies an explicit condemnation of prac-
tices and arrangements restrictive to the satisfac-
tion of an expanding international trade in petro-
leum whether such practices and arrangements
reflect governmental or private policy.
5. It asserts a respect for legally acquired con-
cessions and rights; it provides an assurance
against the molestation of such rights by either
country; and thus it should do away with the
atmosphere of suspicion and mistrust which to a
certain extent clouded international relations in
the past.
G. It embodies a formal recognition by both Gov-
ernments of the principle of equal commercial
opportunity in the acquisition of exploration and
development rights.
7. It embodies a recognition that when rights
are acquired to explore for oil and to develop the
THE RECORD OF THB WEEK
jDetroleum resources of any third country, the in-
terests of such producing country should be safe-
guarded with a view to its economic advancement.
8. Finally, it pi'ovides a method of attempting
to resolve at their inception the difficulties which
may arise in our international petroleum relations,
thus preventing them front developing into issues
of major proportions which might possibly lead
to drastic unilateral action.
In closing, may I state that I consider this
Anglo-American petroleum agreement an ex-
tremely important step forward in the proper
conduct of our foreign relations. It will serve to
bring about international good-will and under-
standing in the field of a vital commodity that is
becoming increasingly important to both our na-
tional security and our economic well-being. I
recommend it most strongly to your favorable
consideration.
Extension of Second War Powers Act Requested
STATEMENT BY UNDER SECRETARY ACHESON >
The Unitetl States is in a position of world
leadership unparalleled in its history. Our for-
eign policy, therefore, vitally concenis not only
our own peojDle but all other peoples of the world.
The success of our foreign policy rests on our
ability to carry out the things that we say we
are going to do. Failure to carry out our pro-
grams and policies is a disaster to us and to those
who rely upon us. To embark upon programs
without the capacity to carry tliem out effectively
and on time is to court disaster. Certain of the
essential tools i-equired if our foreign policy is
to accomplish its purposes are contained in the
bill (H.E. 3647) now before this committee.
It is unnecessary to dwell on the state of eco-
nomic dislocation, physical destiniction, and hu-
man misery of the countries of Europe and Asia
today. The Congress has been fully informed of
these conditions and has responded by enacting
many essential laws. However, the pi'ovision of
monetary aid to hard-pressed countries and des-
perate peoples is only a part of the task. Those
funds must be translated into coal, food, fertilizer,
tools, equipment, and supplies. Reconstruction of
June IS, 1947
railroads, roads, waterways, ports, and bridges
must be undertaken, and this requires the procure-
ment of the necessary materials. Most of these
materials are obtainable without the use of pri-
orities, but in a few cases there may be long delay
in procuring certain vital items without which a
whole program may be held up indefinitely. We
must be able to have the right materials available
at the right time.
The Greek-aid program furnishes a concrete
illustration of what I am driving at. Three size-
able bridges and a tunnel are needed to restore
the Athens-Salonika railway. The lack of per-
haps a single item, delaying the restoration of any
one of these, would be a major setback to the en-
tire rehabilitation task which depends so largely
on effective means of transportation. We would
use the priorities powers requested in this bill
only to get that particular item, since most of the
items needed for this project can be obtained with-
out priorities. Let me give you another example.
'Made before Subcommittee 4 of the Judiciary Com-
mittee of the House of Representatives on June 6, 1947,
and released to the press on tlie same date.
1173
THE RECORD OF THE WEBK
Sixty-five locomotives for Greece have been ob-
tained from army surplus supplies in Germany.
These locomotives, however, are useless until har-
bor cranes are operable at the ports to unload
heavy freight. If motors to activate those cranes
-were unobtainable in time through normal chan-
nels, we might have to resort to priorities to as-
sist in their procurement.
In the vast majority of cases export needs can
be met, without priorities support, through the
cooperation of American agriculture and industry.
It is the exceptional case— "the gear without which
the machine is useless"— that requires priorities
assistance.
This power would be exercised only in the most
exceptional circumstances. Only those cases
where it is found vitally necessary to insure the
prompt export of a particular bottleneck item
would receive certification by the Secretary of
State. He would make this certification only on
the basis that the need for the article is so com-
pelling that its prompt export is of high public
importance and essential to successful carrying out
of the foreign policy of the United States.
The dual safeguards of certification for urgency
and certification on each item rather than on a
general program would effectively limit the use of
these powers. Furthermore, the Department of
Commerce would, before issuing a priority rating,
determine that the export of the item in question
would not have an unreasonable impact on our
domestic economy. In other words, the Secretary
of State would certify as to eligibility for priori-
ties assistance, and the Department of Commerce
would decide whether assistance could be granted
without unreasonable disruption in the United
States.
The bill before this committee enumerates the
allocation powers which are required for a limited
number of named commodities. This is feasible
for important basic commodities which we know
are in serious short supply at this time and will be
for some time to come. However, in the general
area of manufactured products, which includes
many essential items, it is impossible to be so
precise. The constantly shifting patterns of
supply and demand make it impossible to predict
the items which may cause serious delays in the
future. It is therefore necessary that the certifi-
cation of items which at a particular time may
1174
require priorities assistance be left for determina-
tion by the Secretary of State.
In addition to the provisions for the exercise of
priorities powers on bottleneck items, the bill also
provides for export priorities assistance for two
specified commodities which clearly will continue
in such short supply that these measures are re-
quired for dealing with them. Those commodities
are tin products and nitrogen fertilizers.
Tin-plate exports from the United States are
used for canning perishable foods abroad which
might otherwise be lost through spoilage. By
assisting in the preservation of these foodstuffs,
the United States is, in part, relieved of the neces-
sity of exporting even larger supplies of food to
the needy countries of the world.
The assurance to other countries of equitable
supplies of nitrogen fertilizers, through the use
of export priorities assistance, has much the same
effect on United States exports of food. It has
been estimated that in Europe the lack of one ton
of nitrogen for soils requiring this plant food
results in the loss of from 10 to 15 tons of grain.
Clearly it is a net gain to ship fertilizer across an
ocean rather than many times that amount of food.
The importance of nitrogen fertilizers is fur-
ther indicated by the careful international alloca-
tion of this material which is being carried on to
prevent maldistribution. Without the full coop-
eration of the United States— the world's largest
producer and consumer of nitrogen fertilizer —
continued international allocation would be im-
possible. Our failure to participate in world al-
locations would put us in the unfortunate position
of preventing other nations, whose consumption
levels are already far below ours, from obtaining
desperately needed supplies of fertilizer.
The controlled international distribution of
some of the major foods will be necessary for some
time to come despite the progress which has been
made in expanding food production at home and
abroad. Thus another important aspect of the
bill is its provision for the continuation of import
controls of fats and oils and rice. These are the
only commodities for which continuation of im-
port controls is considered necessary. By exercis-
ing import controls we can prevent an influx of
these commodities into the United States at the
direct expense of other nations whose needs are
far greater than ours. This can be done while still
Department of State Bulletin
assuring our own consumers ample supplies, far
2;reater than those available to others.
I have concentrated my attention on those as-
pects of the bill which have the most direct effect
in the international field. The other provisions of
the bill are likewise important. Allocation powers
Dver tin, antimony, fibers, and quinine and export
priorities for the materials needed to expand the
production abroad of things needed in the United
States are matters of more immediate concern to
those agencies whose functions lie in the domestic
field. We have discussed these matters with them
md are convinced that there is a real justification
THE RECORD OF THE WEEK
for the extension of the allocation authority over
these commodities.
We make this request for extension of emer-
gency powers reluctantly. We are fully aware
that the continuance of such interfei-ence with the
normal and unfettered operations of our economic
system, even though it may occur in relatively
few cases, is not consistent with our traditional
system of free enterprise and our customary way
of doing business. Nevertheless, in these few cases
the consequences of our being unable to act effec-
tively are likely to be so serious, in my opinion,
as to outweigh this objection.
Request for Presidential Authority To Detail
Military and Naval Missions
STATEMENT BY THE SECRETARY OF STATE '
Mr. Chaiuman and Members of the CoMMrrTEE :
The bill under consideration this morning, H. K.
2313, is identical with one which was introduced
into both Houses of the previous Congress, was
passed by the House of Representatives and fa-
vorably reported to the Senate, but not acted
jpon by that body before the Congress adjourned.
Ihe bill takes the form of amendments to the Act
)f May 19, 1926, which authorized the President
m his discretion to detail United States military
md naval missions to assist in military and naval
natters the Governments of the American repub-
lics which might request him to do so. An amend-
ment approved on May 14, 1935, extended the Act
;o the Commonwealth of the Philippine Islands.
A. further amendment, effective October 1, 1942,
luthorized the President "during war or a declared
lational emergency" to detail military and naval
nissions to the governments of such other coun-
tries as he deemed it in the interests of national
iefense to assist.
The essential purpose of the bill which the State,
War, and Navy Departments jointly request the
[Congress to approve is to give the President the
iame discretionary authority to detail military and
laval missions in time of peace that he now has
mder his war powers, when requested to do so by
governments other than those of the American
republics or the Philippine Islands.
There are a number of sound reasons why the
State, War, and Navy Departments believe it im-
lune 15, 1947
portant to the national interest that Congi-ess
should approve this bill. Before discussing them,
however, I wish to mention some misconceptions as
to the nature of military and naval missions which
the recent hearings on the bill to furnish assistance
to Greece and Turkey indicated may exist in the
public mind. Such missions are usually small in
number of individuals. They could not in any
sense be described as military units, nor could they
conceivably be thought of as expeditionary forces.
The members of these missions, both officers and
enlisted men, are usually specialists and are drawn
from the various branches of the service to which
they belong.
It is no doubt true, as was suggested in the hear-
ings on the Greek-Turkish bill, that the President
could send these officers and enlisted men abroad
under his constitutional powers. He does, how-
ever, need the authorization of Congress to detail
them to assist foreign governments. The very fact
that they are so detailed, however, means that their
functions are essentially of an advisoi-y rather than
an operational nature.
I should now like to summarize briefly some of
the reasons that have led our three Departments to
request the Congress to give the President the
discretionary authority provided for in the biU
' Made before the Committee on Armed Services of the
House of Representatives on June 3, 1947, and released to
the press on the same date.
1175
THE RECORD OF THE WEEJf
under consideration. As stated in the memoran-
dum ~ which accompanied the draft of this bill,
developments during the course of World "War II
liave emphasized the strategic importance of the
Near and Middle and Far East regions, the com-
ponent countries of which are in a state of intense
political, social, and economic readjustment.
Some have just emerged from the condition of con-
quered territories, others have been only recently
released from the condition of semi-subject peoples
under the mandate system. Many of them need
educational and technical assistance to increase
their stability and security. "We feel that it would
be in the national interest to comply with the re-
quests we have received from some of these coun-
tries for assistance in the form of military and
naval missions to enable them to maintain internal
security. It was decided, however, that it would
be unwise to comply with these requests in the
absence of permanent authority to do so. As you
know, such authority has now been given the
President in the case of Greece and Turkey, and the
previous Congress authorized the detail of a naval
mission to assist the Chinese Government.
It is the traditional policy of the United States
to aid the nations of the "Western Hemisphere to
maintain their independence. In view of the
added world responsibilities imposed on this Gov-
ernment as a result of the recent war, we feel that
we should be able in appropriate circumstances to
extend this policy to friendly nations in other parts
of the world.
Article 78 of the Charter of the United Nations
states that relations between members "shall be
based on respect for the principle of sovereign
equality". This objective could hardly be achieved
in the case of any nation in which there is serious
danger of internal disorder. Lack of authority to
send military and naval missions to assist friendly
foreign governments, when requested by them to
do so, deprives the President of the use of one of
the tools which should be at his disposal, we think,
if this Government is to implement its avowed
policies of interest in the conditions of peace
througliout the world and of full participation in
world affairs commensurate with its new respon-
sibility as a world power.
To be specific, in addition to the missions in the
American republics and the Philippines under the
J
^ Not printed.
1176
Act of 1926, the United States now has under the
President's war powers two small military mis-
sions detailed to assist the Government of Iran,
one working with the Iranian Army and the other
with the Iranian Gendarmerie. The total number
of officers and enlisted men involved is less than 40.
"We think that these two missions are doing an
outstanding job, first, by aiding in the maintenance
of the independence of a member of the United
Nations ; second, by instilling in the Iranian Army
and Gendai-merie the American principle that the
proper function of security forces is to maintain
internal law and order rather than that of en-
gaging in politics or oppressing the population;;
and, third, by maintaining peace in one of the ke;
points where it might be disturbed.
There is also operating under the President's
war powers an Army Advisory Group at Nan-
king, China. Tliis Group advises the Cliinese
Government in establishing the facilities, schools
and such, for the basic training of the Chinese
Army. Its activities are strictly divorced from
any association with the conduct of hostilities ir
that country. It has long been our policy with re-
spect to China to assist that country in the develop-
ment of an effective Army and Navy, so limited ir
size as not to become an undue burden on the Chi-
nese financial structure.
In view of the importance of these missions, th(
desirability of enabling us to formalize our ar-
rangements with China and Iran is obvious. The
failure to obtain such authority would require the
withdrawal of these missions upon the terminatior
of the President's war powers, and I believe therti
is no doubt but that such action would be detri
mental to the interests of the United States.
In addition to the amendment which would au
thorize the President to detail military and nava^
missions to governments other than the Americarj
republics and the Philippine Republic, in the ab-
sence of war powers, the three Departments art
also suggesting two or three additional amend
ments in the interest of perfe-eting the presem
permanent legislation. The bill now under con
sideration would, for example, authorize th<
United States Government to accept, in the discre
tion of the Secretary of War or the Secretary c:
the Navy, the compensation which the officers anc
enlisted men detailed to such missions are author
ized to accept from the governments to whicl
Department of State Bullelh
detailed, for direct remittance to them. The offi-
cers and enlisted men so detailed would also be
authorized to receive, in the absence of com-
pensation from foreign governments, such addi-
tional compensation as might be determined by
the Secretary of War or the Secretary of the
'Na.Yj and approved by the President. These
two amendments ai'e considered desirable as a
result of past experience, and I can confirm this
from my own experience as Chief of Staff of the
Army. Representatives of the Army and Navy
are prepared to explain these amendments in
gi-eater detail if desired.
I think that the passage of the bill is in the
national interest. I hope that it may receive
the approval of the Congress.
Argentina Urges Mutual Assistance
[Released to the press by the White House June 3]
The Argentine Ambassador,^ who has just re-
turned from Argentina, reviewed with the Presi-
dent and the Secretary of State the steps which his
Government has taken and is continuing to take in
fulfilment of its commitments undertaken in the
final act of the Inter-American Conference on
Problems of War and Peace. He expressed the
view of his Govei'nment that no obstacle remained
to discussions looking toward the treaty of mutual
assistance contemplated by the Act of Chapulte-
pec. The President indicated his willingness to
renew the consultations with the governments of
the other American republics initiated by the
United States memorandum of April 1, 1946, on
this subject.^
Nonrecognition of Present
Nicaraguan Regime
[Released to the press June 5]
Dr Guillermo Sevilla Sacasa ^ called at the State
Department on his own initiative on June 5.
He was received in his private capacity. He out-
lined to Ellis O. Briggs, Director of the Office of
American Republics Affairs, his views concerning
recent happenings in Nicaragua.
Dr. Sevilla Sacasa was informed of the concern
of this Government over the seizure of power which
took place on May 25-26.'' He was informed fur-
ther that the United States Government is now
discussing this situation with the other American
republics and that pending further developments
THE RECORD OF THE WBEK
the Government of the United States would not
be disposed to enter into official relations with the
regime now in power in Nicaragua.
Erratum
In the article, "Aspects of American Economic
and Technical Aid to Foreign Countries Since
Mid-1945", Avhich appeared in the Bttlletin of
May 18, 1947, p. 962, second column, sixth para-
graph, sixth line, ^'■oOO million dollar^''' should be
changed to read '■'•500 thousand dollars'\
Childhood Protection — Continued from page 1158
Council of the Institute should be held at Caracas
at the time of the Ninth Pan American Congress.
Two sessions of the Council were tentatively
scheduled, the first in advance of the formal open-
ing of the Congress and the second following the
close of the Congress, in order that appropriate
action might be taken on its recommendations.
The hope was expressed that all of the American
governments will designate as delegates to the
Ninth Pan American Child Congress persons
technically qualified to discuss problems of child
health, welfare, and education with which the
Congress will deal.
The program of work for the Institute in the
forthcoming year includes further preparation for
the Child Congress and the Bogota Conference;
continuation of the current studies of the Depart-
ment of Health and possible initiation of a study
of parasitosis ; compilation of laws enacted by the
American governments on matters affecting the
health, education, and welfare of children ; formu-
lation of a model "children's code" for discussion
in the appropriate section of the next Child Con-
gress; development of closer relationships with
Pan American and world organizations; and co-
operation with each of the American governments
in all plans for promoting the health and well-
beine of American children.
^ Oscar Ivanissevicli.
' Bulletin of Apr. 21, 1946, p. 666.
'Nicarasuan Ambas.sador to the United States
■* Ex-President Anastasio Sonioza on May 25 seized key
points in Managua, surrounded the Presidential Palace,
and took control of the country from President Arguello.
President Arguello sought asylum at the Mexican Embassy
in Managua.
June ?5, 1947
1177
THE RECORD OF THE WEEK
Marines Evacuate 74 From Area of
Chinese Communist Operations
[Released to the press May 20]
The Department of State has been informed by
the American Consulate General in Tientsin of
the arrival there May 24 of a Marine Corps LCI
bearing 7-i jDersons of various nationalities, includ-
ing two American citizens, evacuated from the
port of Peitaiho because of Chinese Communist
military operations.
The two Americans are Clinton Sharp and
George Simme, both of whom are associated with
the American Methodist Mission at the town of
Changli, located a short distance from Peitaiho
and about 75 miles northeast of Tientsin on the
Tientsin-Mukden railroad.
The 74: persons evacuated also mcluded Mrs.
Sharp and Mrs. Simme, non- Americans ; 9 Brit-
ish; 8 French; 1 Greek; 2 Belgians; 4 Chinese;
26 Russians, of whom about half are Soviet citi-
zens; 3 Italians; 9 Germans, and the remainder
imidentified servants. Two American men did
not avail themselves of the opportunity to be
evacuated and remained at Peitaiho. In addition,
Edward Dixon, an American also associated with
the American Methodist Mission at Changli,
arrived safely at Tientsin overland from Changli.
The Americans arriving at Tientsin reported
that the Chinese Communist troops attacked
Changli on May 18, overwhehned the small num-
ber of Chinese Government troops stationed there,
engaged in widespread destruction and looting,
and killed "quite a few" Chinese civilians. They
burned various buildings, including Chinese
Government structures. Within the compound
enclosing the American Mission the Chinese Com-
munists burned a residence housing persomiel
attached to the Chinese organization of UNRRA,
and took as loot 95 percent of the belongings from
the mission residences, 90 percent of the belong-
ings from the mission school, and 100 percent of
the belongings from the mission 80-bed hospital,
including beds, X-ray equipment, surgical instru-
ments, medicines, et cetera. They brought numer-
ous carts and commandeered other vehicles to haul
away the loot, which included quantities of flour
and cloth from the city.
Evacuees reported that the Communists did
1178
not injure them but that they expressed bitter
anti-American sentiments. The Communists
promptly rounded up 200 to 250 Chinese boys
from the mission middle school and 50 Chinese
girls from the mission girls' school, and marched
the group seven miles into the hills "to educate
them, as they were too American". They also
took with them three elderly American women
teachers, who after two days of captivity finally
persuaded the Communist leaders to return the en-
tire group safely to Changli. These three women,
Dr. Clara Nutting, Lois Battin, and Pansy Griffin,
apparently have remained in Changli.
Information on American Evacuees
From North China
[Released to the press June 2]
The Department of State has received additional
information from the American Consulate General
in Tientsin concerning the identity and where-
abouts of American citizens located in the area of
North China involved in military operations.
The two American citizens among the 74 persons
evacuated by a Marine Corps LCI from the port of
Peitaiho, all of whom arrived at Tientsin May 24
as aimounced by the Department on May 27, are
Clinton Sharp and Mrs. George Simme. Both
were erroneously identified as being associated
with the American Methodist Mission at Changli,
near Peitaiho. Information subsequently received
discloses that Mr. Sharp, a retired non-commis-
sioned officer of the loth Infantry, United States
Army, and his wife, reside at Peitaiho. Mrs. Sim-
me was residing at Peitaiho with her son, Louis
Ladow, an American, manager of a hotel there,
who declined evacuation.
Joseph E. Jacobs Appointed Political
Adviser to USAF in Korea
[Released to the press May 29]
Josei)h E. Jacobs, Foreign Service officer, has
been appointed as political adviser to the Com-
manding General, United States Army Forces in
Korea, and was to depart for his post on May 31.
Mr. Jacobs, who is a specialist on the Far East and
has recently served in Albania, has experience and
qualifications which will be of particular value to
the work of the Joint Commission now in session
in Seoul.
Department of State Bulletin
Consular Convention With the Republic of the Philippines '
THE PRESIDENT'S LETTER OF TRANSMITTAL
The White House,
June 4, 19^7.
To the Senate of the United States:
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith
the consular convention between the United States
of America and the Republic of the Philippines,
signed at Manila on March 14, 1947.
I also transmit for the information of the Sen-
ate the report by the Secretary of State with
respect to the convention.
Harry S. Trxtman
(Enclosures: (1) Report of the Secretary of State;
(2) Consular Convention between the United States and
the Republic of the Philippines, signed March 14, 1&47.2)
REPORT OF THE SECRETARY OF STATE
Departihent of State,
Washington, June 2, 194^7.
The President,
The White House:
The imdersigned, the Secretary of State, has
the honor to lay before the President, with a view
to its transmission to the Senate to receive the
advice and consent of that body to ratification, if
his judgment approve thereof, a consular conven-
tion between the United States of America and the
Republic of the Philippines, signed at Manila on
March 14, 1947.
The convention establishes the rights, privi-
leges, immunities, and exemptions of consular
officers of the United States in the Philippines and
of consular officers of the Philippines in the
United States.
Article II of the treaty of general relations be-
tween the United States of America and the
Republic of the Philippines, signed at Manila on
July 4, 1946, contains provisions relating to con-
Isular representation, as follows:
. . . The consular representatives of each country,
duly provided with exequatur, will be i)ermitted to reside
in the territories of the other in the places wherein con-
sular representatives are by local laws permitted to
reside ; they shall enjoy the honorary privileges and the
immunities accorded to such officers by general inter-
national usage ; and they shall not be treated in a manner
less favorable than similar officers of any other foreign
country.
By an exchange of notes dated July 10 and 12,
1946, between the Philippine Secretary of Foreign
Affairs and the American Ambassador in Manila,
the two Governments confirmed that they would
observe the provisions of article II of the treaty
of general relations "pending final ratification
thereof." The treaty of general relations entered
into force on October 22, 1946, upon the exchange
of instruments of ratification thereof.
The consular convention signed on March 14,
1947, contains provisions, comprehensive in scope,
similar in substance to provisions in consular con-
ventions or to consular provisions in treaties of
friendship, commerce, and consular rights in force
between the United States and many foreign coun-
tries. For example, the provisions in articles I,
II, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII,
XIV, and XVI of this convention corresjxjnd, re-
spectively, to the provisions in articles I, II, III
(par. 1), IV, V, VI, VII, VIII, IX, X, XI, XII,
XIII, and XIV of the most recently concluded
consular convention between the United States
and a foreign country; namely, the consular con-
vention with Mexico, signed on August 12, 1942,
which entered into force on June 1, 1943 (57 Stat.,
pt. 2, 800). Article III of the convention with
the Republic of the Philippines corresponds to
provisions in numei'ous existing treaties or con-
ventions of the United States; for example, the
' S. I';xec. Q, 80th Cong., 1st sess.
' Not printed.
June 75, 1947
1179
THE RECORD OF THE WEEK
second paragraph of article VI of the consular
convention of April 22, 1926, with Cuba (44 Stat.
2471), the second and third paragraphs of article
XXI of the treaty of friendship, commerce, and
consular rights of February 13, 1934, with Fin-
land (49 Stat. 2659), and the third and fourth
paragraphs of article III of the consular conven-
tion of October 7, 1938, with Liberia (54 Stat.
1751). Article XV has no exact counterpart in
existing treaties or conventions of the United
States, but is consistent with the principles and
purposes of standard consular provisions and its
effect is simply to express an understanding which,
for all practical purposes, would be given effect
in any event.
Among the principal exemptions to be accorded
under the convention to consular officers of each
country in the other country, and to certain other
persons, are the exemptions provided in article
IV with respect to taxes levied on their persons
or property and on salaries, allowances, fees, or
wages received for consular services, and the ex-
emptions provided in article V with respect to
duties on the importation of baggage and other
personal property.
It is provided in article XVI that the conven-
tion shall take effect upon the exchange of rati-
fications, shall continue in force for the terms of
10 years, and shall continue in effect after that
period subject to the right of either party to give
6 months' notice to the other party of an intention
to terminate the convention.
Respectfully submitted.
G. C. Marshall
( Enclosure : Consular convention between the United
States of America and the Republic of the Philippines,
signed March 14, 1947.)
Spruille Braden Resigns as Assistant Secretary of State
LETTER FROM THE PRESIDENT TO MR. BRADEN
I
June i, 1947.
Dear Spruille: In accordance with the desire
expressed in your letter of May twenty-ninth, I
am reluctantly accepting your resignation as As-
sistant Secretary of State, effective at the close of
business on June thirtieth next. I am guided by
your wishes in this matter, recognizing both the
personal sacrifices which you have made in order
to serve our Government and your important con-
tributions over the past fourteen years to the cause
of inter- American understanding, democracy and
peace.
Your record of public service has been outstand-
ing whether as delegate to international confer-
ences or as Ambassador in such important posts as
Colombia, Cuba, and Argentina. The country has
been the beneficiary of your patient and skillful
negotiations in the various fields in which you
have served.
I feel that yours has been a record of fine
achievement and I accept your resignation with
sincere regret, at the same time realizing not only
that you have earned a vacation from public office
but also that your obligations to your family and
yourself now make imperative your return to pri-
vate business.
I take this occasion to express to you my thanks
and to send you my warmest personal good wishes
for your success in the years to come.
Very sincerely yours,
Harry S. Truman
LETTER OF RESIGNATION FROM MR. BRADEN
May 29, 1947.
My Dear Mr. President : It is with regret that
I tender my resignation as Assistant Secretary of
State, which I should like to take effect on July 1.
It has been a very great privilege to serve our
'Released to the press by the White House on June 4,
1947.
1180
Government and I am withdrawing from official
life with many happy associations and experi-
ences. When I acceded to Secretary Byrnes' re
quest almost two years ago that I come to Wash-
ington from Buenos Aires where I was then serv-
ing as Ambassador, I had already given more than
ten consecutive years to Government service. I
explained to him that I had long neglected my
Department of State Bulletin
personal aflFairs and for this reason I could accept
only on a provisional basis, for a year or so.
My responsibilities to my family now make im-
perative my return to private business at an early
date, and it is accordingly my hope that you will
see fit to relieve me of the duties that I have had
the honor to perform in the Department of State.
In closing, Mr. President, please accept my ex-
pressions of profound appreciation for the per-
sonal friendship and confidence you have shown
me.
I am, my dear Mr. President,
Respectfully and cordially yours,
Spruille Braden
Program for National Security
A Program, for National Security, May 29, 191^11,
Report of the Presidenfs Advisory Cormms-
sion on Universal Training was released to the
press by the White House on May 29. The report
discusses the following topics : the world situation
and the preservation of peace, the nature of pos-
sible future warfare, the essentials of an integrated
national security program, the role of universal
training in supporting the requirements for na-
tional security, a progi'am for universal training,
and a summary of findings and recommendations.
The publication is for sale by the Superin-
tendent of Documents, Government Printing
Office, Washington 25, D.C., at 750.
THE FOREIGN SERVICE
Consular Offices
A consular section was opened in the American Embassy
at New Delhi on May ]2, 1947.
The Consulate General at Chaugcliun, China, was estab-
lished April ir>, 1947, and opened to the public May 5.
The American Consulate at Poznau, Poland, was
changed to the status of Vice Consulate on May 1, 1947.
The American Legation to the Union of South Africa
has been moved from Capetown to Pretoria.
Office of Political Adviser Moved
Tlie Office of the United States Political Adviser at
Cascrta, Italy, was moved to Leghorn, Italy, on April G,
1947.
TH£ RECORD OF THE WEEK
THE DEPARTMENT
Appointment of Officers
Margaret R. T. Carter as Chief, Division of Public
Liaison, effective May 4, 1947.
Charles C. Stelle as Chief, Division of Research for
Far East, effective January 12, 1947.
W. Pierce MacCoy as Special Assistant to the Director,
Office of Departmental Administration, effective May 23,
1947.
Arch K. Jean as Chief, Division of Departmental Per-
sonnel, Office of Departmental Administration, effective
May 23, 1947.
Confirmation
The Senate on May 28, 1947, confirmed the nomination
of Robert A. Lovett to be Under Secretary of State.
THE CONGRESS
Supplemental Estimate of Appropriation for Surplus
Property, Care and Handling Overseas : Communication
from the President of the United States, transmitting
the supplemental estimate of appropriation for the fiscal
year 1947 in the amount of $75,000,(XtO for surplus property,
care and handling overseas. H. Doc. 251, 80th Cong., 1st
sess. 3 pp.
Amending the Philippine Rehabilitation Act, as
Amended. S. Kept. 166, 80th Cong, 1st sess., to accom-
pany S. 1020. 6 pp. [Favorable report]
Authorizing the Administrator of Veterans' Affairs To
Continue and Establish Offices in the Territory of the
Republic of the Philippines : Report from the Committee
on Finance, to accompany S. J. Res. 115. S. Rept. 177,
80th Cong., 1st sess. 4 pp.
Federal Reincorporation of Export-Import Bank of
Washington: Report from the Committee on Banking
and Currency, to accompany S. 993. H. Rept. 393, SOth
Cong., 1st sess. 6 pp.
United States Information and Educational Exchange
Act of 1947. H. Rept. 416, SOth Cong., 1st sess., To accom-
pany H. R. 3442. 8 pp. [Favorable report.]
Draw-Back Upon Exiwrtation of Distilled Spirits and
Wines. H. Rept. 422, SOth Cong., 1st sess.. To accompany
H.R. 959. 2 pp. [Favorable report.]
Extension of the Second War Powers Act: Message
from the President of the United States transmitting his
recommendation for extension of the Second War Powers
Act. H. Doc. 266, SOth Cong., 1st sess. 3 pp.
Assistance to Greece and Turkey. H. Rept. 377, SOth
Cong., 1st sess., To accompany S. 938. 5 pp. [Favorable
report.]
The Inter-American Military Cooperation Act: Message
fi'om the President of the United States transmitting a
draft of a proposed bill to be entitled "The Inter-American
Military Cooperation Act". H. Doc. 271, SOth Cong., 1st
sess. 6 pp.
June 75, 1947
1181
^^yyvCe^i
General Policy Page
European Initiative Essential to Economic
Recovery. Remarks by the Secretary
of State 1159
Economic Aid to Italy. Statement by the
Secretary of State 1160
Position on Resettlement of Displaced Per-
sons. Statement by Assistant Secretary
Hilldring 1162
President Truman Visits Canada 1166
Support Urged for Approval of Anglo-Ameri-
can Oil Agreement:
Memorandum of Charles Fahy, Legal
Adviser 1167
Statement by Charles B. Rayner .... 1169
Request for Presidential Authority To Detail
Military and Naval Missions. State-
ment by the Secretary of State .... 1175
Argentina Urges Mutual Assistance .... 1177
Nonrecognition of Present Nicaraguan Re-
gime 1177
Marines Evacuate 74 From Area of Cliinese
Communist Operations 1178
Information on American Evacuees From
North China 1178
The United Nations
The First Assembly of the International Civil
Aviation Organization. Article by Ed-
ward S. Prentice 1145
Meeting of Committee on Progressive De-
velopment of International Law and Its
Codification. Suggestions by the United
States of Item 4 of the Provisional
Agenda 1152
Citizens Asked To Refrain From Activities
Hazardous to Settlement of Palestine
Problem. Statement by the President . 1154
Current U.N. Documents: Selected Bibli-
ography 1154
Economic Affairs
ItaUan War Claims Negotiations Nearing
Conclusion 1161
Extension of Second War Powers Act Re-
quested. Statement by Under Secre-
tary Acheson 1173
Occupation Matters page
Recovery of Identifiable Property Removed
From Allied Countries 1161
Request for Information Relating to Hun-
garian Situation 1161
Joseph E. Jacobs Appointed Political Adviser
to USAF in Korea 1178
Office of Pohtical Adviser Moved 1181
Treaty Information
Greek Air-Transport Agreement 1166
Surplus Property Credit to Hungary Sus-
pended 1166
Routes Designated in Air-Transport Agree-
ment With Ireland 1166
Consular Convention With the Republic of
the Philippines:
The President's Letter of Transmittal . . 1179
Report of the Secretary of State .... 1179
International Information and
Cultural Affairs
Meeting of the Council of the American Inter-
national Institute for the Protection of
Childhood. Article by Elisabeth Shirley
Enochs 1157
The Foreign Service
Consular Offices 1181
Calendar of International Meetings . . 1155
The Congress 1181
The Department
SpruUle Braden Resigns as Assistant Secretary
of State:
Letter From the President to Mr. Braden . 1180
Letter of Resignation From Mr. Braden . . 1180
Appointment of OiBcers 1181
Confirmation 1181
Publications
Program for National Security 1181
Edicard S. Prentice, author of the article on the first assembly of
ICAO, was Technical Secretary to the United States Delegation.
Mr. Prentice is Special Assistant in the Aviation Division, Office of
Transport and Communications, and .serves on the Air Coordinating
Committee.
Elisabeth Shirley Enochs, author of the article on the International
Institute for the Protection of Childhood, is Director of the Interna-
tional Cooperation Service, U.S. Children's Rureau, Social Security
Administration, Federal Security Agency. Mrs. Enochs served as
alternate technical delegate to the Montevideo meeting of the Council
of the Institute.
U. S. GOVERNMENT PRINTING OFFICE: T947
tJAe^ ^e/ia/)(^CmervC /(w CficUer
COMMON OBJECTIVES AND IDEALS MANIFESTED
IN U.S.-CANADIAN RELATIONS • Address by the
President 1210
ECONOMIC COOPERATION WITH CANADA • Article
by Richardson Dougall 1185
AMERICAN TRADITIONS IN TODAY'S FOREIGN
POLICY • Address by Under Secretary Acheson . . . 1221
For complete contents see back cover
Vol. XVI, No. 416
June 22, 1947
IJ. S. SUPtKll'HtiicLtf'il Uf W;«feMfe«rt
JUL 19 IWZ
^/A& zllefut/ylme/nt a:^ KTuiie JL/ LI 1 1 Vl/ L i 11
Vol. XVI, No. 416 • Publication 2853
June 22, 1947
For sale by the Superintendent of Documents
U. 8. Qoverament Printing Office
Washington 26, D.C.
Sobsceiption:
62 Issues, $5; single copy, 15 cents
Published with the approval of the
Director of the Bureau of the Budget
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
OF State Bulletin as the source will be
appreciated.
The Department of State BVLLETIN,
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 Slate and other officers
of the Department, as well as special
articles on various phases of inter-
natioTuil affairs and the functions of
the Department. Information is in-
cluded concerning treaties and inter-
natiorutl agreements to which the
United States is or may become a
party and treaties of general inter-
national interest.
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
international relations, are listed
currently.
ECONOIVIIC COOPERATION WITH CANADA, 1941-1947
by Richardson Dougall
A hrief survey of the major economic fields in which coop-
erative action has been taken hy the United States and Canada
si^ice the Hyde Park agreement of 191^1.
The Hyde Park Agreement
The charter of Canadian-American economic
cooperation during World War II was the an-
nouncement made at Hyde Park by President
Eoosevelt and Prime Minister Mackenzie King of
Canada on April 20, 1941. This statement, usu-
ally referred to as the Hyde Park agreement or the
Hyde Park declaration, announced agreement on
the general principle that the United States and
Canada, in mobilizing the resources of the North
American continent for hemispheric defense and
for aid to Great Britain and other democracies,
should provide each other with the defense articles
which each was "best able to produce, and, above
all, produce quickly, and that production programs
should be coordinated to this end." ^ The agree-
ment provided specifically for the production in
Canada of certain defense items urgently required
by the United States, including certain kinds of
munitions, strategic materials such as aluminum,
and ships.
The Hyde Park agreement also recognized the
importance to the economies of both countries of
protecting the Canadian foreign-exchange posi-
tion vis-a-vis the United States. Had Canada con-
tinued to buy in the United States raw materials
to be processed and sent on to Great Britain for
use in' the war, the Canadian dollar-exchange po-
sition would have deteriorated very rapidly. The
agi'eement therefore stated that, so far as Cana-
dian defense purchases in the United States con-
sisted of component parts to be used in equipment
i»ne 22, J 947
and munitions to be shipped to Great Britain, such
purchases should be made by the British Govern-
ment under the lend-lease program and shipped to
Canada for processing. At the same time the use
of Canada's existing and potential capacity for
filling American orders for ships, aluminum, other
materials, and certain munitions, was expected to
give Canada dollar exchange of 200 million dollars
or 300 million dollars during the following year
with which to finance its own defense purchases
in the United States.
The implementation of the Hyde Park agree-
ment during the war resulted in an unprecedented
coordination of the economies of the United States
and Canada — in the pooling of supplies, in the
development of complementary industrial plants
and agricultural programs, and in the almost com-
plete erasure of national boundaries for certain'
purposes. This extraordinary cooperative effort
in the economic field contributed materially to the
successful conclusion of the war.
The economic agreement announced at Hyde
Park has never been specifically terminated by the
Governments of Canada and the United States,
and certain cooperative economic measures con-
tinue. With the gradual abolition of wartime eco-
nomic controls in both countries, however, the gov-
ernmental machinery for fully coordinated action
has been largely dissolved and Canadian-Ameri-
can economic relations have been returning gradu-
ally to a peacetime basis.
' BuLiJirnN of Apr. 26, 1941, p. 494.
1185
The Joint Committees and Combined Boards
The Hyde Park agreement provided for the
subsequent working out of technical details by
officials of the two Governments concerned, and
the success of the agreement depended upon the
methods devised for implementing it. As Cana-
dian-American economic cooperation at the oper-
ating level became closer, there grew up a complex
of joint committees and combined boards which
put the principles of the agreement into practice.
The most important of the joint committees, on
which the United States and Canada alone had
representation, were the Material Coordinating
Committee, the Joint Economic Committees, and
the Joint War Production Committee. The two
Governments also established, however, a Joint
Agricultural Committee in March 1943 and a Joint
War Aid Committee later the same year. In addi-
tion, Canada was invited to participate in the
Combined Production and Resources Board (No-
vember 1942) and the Combined Food Board
(October 1943) , both of which had originally been
established as Anglo-American bodies.
The Material Coordinating Committee
The first of the joint committees to be estab-
lished was the Material Coordinating Committee,
the creation of which was announced in the
United States on May 14, 1941, by the Office of
Production Management. Its primary purpose
was to facilitate the exchange of information
relating to supplies of strategic raw materials
between Canadian and American officials in order
to assist them in planning defense programs. The
Committee also served as a liaison agency through
which the Canadian Government was indirectly
linked to the Combined Raw Materials Board, on
which the American member of the Material Co-
ordinating Committee spoke for Canada although
only the United States and Great Britain were
directly rejiresented.
The Joint Economic Committees
The creation of the Joint Economic Committees
was announced on June 17, 1941. The function of
these Committees, which were strictly advisory,
was to study the possibilities of "effecting a more
economic, more efficient, and more coordinated
' BLiiBTiN of June 21, 1941, p. 747.
' BtJij,ETiN of Mar. 18, 1M4, p. 264.
11B6
utilization of the combined resources of the two
countries in the production of defense require-
ments" ^ in fields where this was not already being
done. The Committees were also to study and
report on the possibilities of reducing probable
postwar economic dislocations.
The advisory resolutions of the Committees,
many of which were the basis of cooperative action
by operating agencies of the two Governments,
dealt with such diverse subjects as export control,
shipping, production, freedom of travel, the neces-
sity for supporting Canadian gold mining in order
to assist the Canadian exchange position, postwar
international economic collaboration, border
movement of labor and machines, expanded agri-
cultural production, and the potato trade. The
Committees also discussed, without making formal
recommendations, many other outstanding eco-
nomic problems in the field of Canadian-American
relations, such as Great Lakes shipping, tariffs,
price control, production priorities and allocations,
power and paper shortages, the Atlantic fisheries,
and a North Pacific planning project. A number
of these subjects will be discussed at greater length
below.
On March 14, 1944, it was announced that the
United States and Canada had agreed that the
Joint Economic Committees should be dissolved,
since their continued operation was rendered im-
necessary by "the development of other agencies
for coordination and exchange of views and the
establishment ... of methods of cooperation
in production and the use of resources".'
The Joint War Production Committee
One of the other agencies whose development
was referred to was the Joint Defense Production
Committee (subsequently renamed the Joint War
Production Committee). This body was estab-
lished on November 5, 1941, upon the recommenda-
tion of the Joint Economic Committees to coordi-
nate the capacities of the United States and Canada
for the production of defense materiel. The
names of the 10 joint subcommittees of this Com-
mittee reflect the scope of the Committee's work :
tank-automotive, artillery, artillery ammunition,
small arms and small arms ammunition, chemicals
and explosives, signal corps equipment, conserva-
tion, aircraft, naval shipbuilding, and merchant
shipbuilding.
Department of State Bulletin
Four paragraphs of a statement of war-produc-
tion policy adopted by the Committee shortly after
the United States entered the war merit quotation
in full:
"3. Achievement of maximum volume and speed
of war output requires that the production and
resoui'ces of both countries should be eflPectively
integrated and directed toward a common progi-am
of requirements for the total war effort.
"4. Each country should produce those articles
in an integrated program of requirements which
will result in maximum joint output of war goods
in the minimum time.
"5. Scarce raw materials and goods which one
country requires from the other in order to carry
out the joint program of war production should be
so allocated between the two countries that such
materials and goods will make the maximum con-
tribution toward the output of the most necessary
articles in the shortest period of time.
"6. Legislative and administrative barriers,
including tariffs, import duties, customs, and other
regulations or restrictions of any character which
prohibit, prevent, delay, or otherwise impede the
free flow of necessary munitions and war supplies
between the two countries should be suspended or
otherwise eliminated for the duration of the
war." *
The War Production Board in the United States
and the Department of Munitions and Supply in
Canada conducted their operations under this pol-
icy with very little friction, considering the mag-
nitude of the tasks involved, and each Government,
through its own particular type of control machin-
ery— whether through export control, priorities,
allocations, or other types of controls — strove to
give effect to the aims of the basic policy laid down
by the Committee.
The Combined Production and Resources Board
The charter of the Anglo-American Combined
Production and Resources Board was altered on
November 7, 1942, to include Canada as a third
member. This tripartite Board, which was in
existence until the end of 1945, dealt with a great
many spot problems on various phases of Cana-
dian-American economic integration, including
adequacy of productive facilities, division of mar-
kets, prevention of industrial waste, and stand-
ardization of specifications and equipment. Illus-
trative of the Board's work are a recommendation
against the construction of a proposed war plant
in Canada on the grounds that American facilities
for the production of the particular product in-
volved were sufficient for joint needs; the recom-
mendation of quotas to the United States and Can-
ada for the shipment of textiles to liberated areas ;
and the recommendation of similar quotas for the
sujiply of agricultural machinery for the UNRRA
program. Trucks, tires, and tubes were other com-
modities of particular interest to the United States
and Canada with which the Board dealt, not as an
operating agency, but through recommendations
which it made to the War Production Board in the
United States and to the Department of Munitions
and Supply and the Wartime Prices and Trade
Board in Canada.
The Combined Food Board
On October 25, 1943, President Roosevelt and
the British Prime Minister invited Canada to be-
come a member of the Combined Food Board, and
that Board was likewise expanded from an Anglo-
American cooperative agency to an Anglo-Ameri-
can-Canadian organization.^ The Combined Food
Board, generally considered to have been one of
the most effective agencies of wartime economic
cooperation, sought — among other things — to re-
duce competitive bidding on foodstuffs in short
supply by recommending allocations of markets
and sources of supply to the War Food Adminis-
tration in the United States and to its Canadian
and British equivalents.
As far as Canadian-American cooperation is
concerned, the principal products dealt with by
the Combined Food Board were grain and flour,
fish, meat, seeds, dairy products, dried beans and
peas, and dried fruits. Canada was an exporter of
most of these foodstuffs, but it imported dried
fruits and certain kinds of seeds under allocations
recommended by the Board.
This Board was replaced in June 1946 by a mul-
tilateral International Emergency Food Council,
now consisting of representatives of some 30 gov-
ernments, which has continued the Board's work
of trying to accomplish an equitable distribution
of foodstuffs in short supply. Both the United
* UuixETiN of Dec. 27, 1941, p. 579.
^Provision was also made for the participation of other
countries on the Board's commodity committees.
June 22, 7947
1187
States and Canada participate in the work of the
Council and both have tried to follow the Coun-
cil's recommendations, although there has not been
altogether complete coordination of measures
taken pursuant to those recommendations. The
United States recently has again shown its readi-
ness to cooperate with Canada in this field by di-
recting part of American grain exports during the
past crop year so as to compensate for Canadian
inability, because of transportation difficulties, to
maintain the schedule of grain exports called for
by an Anglo-Canadian bulk-purchase agreement
and by short-term agreements made by Canada
with Belgium and the Netherlands.
Migration of Labor
One of the important recommendations of the
Joint Economic Committees in the agricultural
field had to do with the movement of seasonal
labor across the border between the United States
and Canada. There had always been a certain
amount of labor mobility, but immigration and
customs regulations and the income-tax provisions
of fiscal legislation had had a deterring effect.
With the general shortage of manpower which de-
veloped before and during the war, however, it be-
came desirable to encourage the seasonal move-
ment of labor across the boundary.
The Joint Economic Committees therefore rec-
ommended on February 27, 1942, that the United
States and Canada take appropriate action to fa-
cilitate the movement across the boundary, par-
ticularly of used agricultural machinery, together
with the necessary operators or crews. In this
specific case, it was felt that both the shortage of
metals for manufacturing new machines and the
shortage of agricultural labor skilled in the use
of farm machinery called for measures which
would facilitate the movement of both men and
machines, particularly at harvesting time. The
two Governments took steps to put this recommen-
dation into effect in the spring of 1942. The ar-
rangements which were formally made, in which
the State, Agriculture, Treasury, and Justice De-
partments cooperated on behalf of the United
States Government, were renewed for the years
1943, 1944, 1945, and 1946. A further renewal for
the crop year 1947 is now under negotiation.
The movement of other types of greatly needed
• Bulletin of Apr. 11, 1942, p. 313.
1188
seasonal labor across the common border was also
encouraged by the Canadian and United States
Governments, although no formal agreements were
entered into regarding any categories of such labor
other than the exchange of grain-harvest machin-
ery and crews. Informal agreements were worked
out, however, for the importation into the United
States from Canada of both agricultural and in-
dustrial labor. Indeed the United States Congress
made appropriations in 1943 and annually there-
after to assist Executive agencies of the United
States Government (the War Food Administra-
tion and the War Manpower Commission during
most of the period) in implementing a program of
migratory labor from Canada and elsewhere. On
June 30, 1946, the aj^propriations provided for
importing industrial labor were discontinued.
There are still available until the end of 1947, how-
ever, appropriations for bringing to the United
States various types of agricultural labor, includ-
ing workers from Canada. The principal cate-
gories of Canadian labor brought into the United
States have been grain workers, potato and tomato
pickers, tobacco workers, dairy-farm workers,
lumbermen, maple-sugar (sugar-bush) workers,
and food-processing workers. Such appropria-
tions have been used for recruitment, trans-
portation, medical care, and the maintenance of
labor-supply centers. Their discontinuance, how-
ever, will not mean a complete cessation of
migration of labor across the Canadian border; it
merely reflects the i)assing of the pressing war-
time need for such large numbers of migratory
workers.
Complementary Agricultural Products
On the same date that they recommended
measures for greater mobility of farm-machinery
crews the Joint Economic Committees recom-
mended to the Governments of the United States
and Canada arrangements "for more effective
utilization of the joint agricultural resources of
the two countries for the production of certain
farm products needed in the war effort." " This
recommendation was approved by both Govern-
ments, and on April 10, 1942, the Wliite House
announced a program for increasing the produc-
tion of oats, barley, and flaxseed in Canada and of
oil-bearing crops, including soybeans, in the
United States.
Department of Slate Bulletin
Fish and Fur Seals
Fishing and sealing have always been a source
of potential conflict between Americans and
Canadians. With time, however, the two coun-
tries have developed machinery for dealing with
controversial issues in these fields, largely through
the operation of joint commissions. The Inter-
national Fisheries Commission, for example, has
long been dealing with questions of joint interest
with respect to halibut in the North Pacific Ocean
and Bering Sea. Since 1937 the International
Pacific Salmon Fisheries Commission has been
dealing with Canadian-American problems with
a view to restoring the sockeye salmon industry in
the Fraser Kiver system. During the war both of
these Commissions carried on their work, which
was very important from the point of view of
wartime food supply, and both are stiU in exist-
ence. Illustrative of their wartime work are the
regulations issued annually by the International
Fisheries Commission and the agreement reached '
upon the recommendation of the International
Pacific Salmon Fisheries Commission for the con-
struction of fish ways and other works at joint
expense at Hell's Gate Canyon.
With respect to the fishing industry on the Great
Lakes, the United States and Canada established
an International Board of Inquiry for the Great
Lakes Fisheries in 1940.^ The report of this
Board, submitted in 1942, was studied by the two
Governments throughout the rest of the war, and
on April 2, 1946, their representatives signed a
convention under which an international commis-
sion having certain regulatory powers will be
established to benefit both American and Canadian
participants in the Great Lakes fishing industry.
This convention is now before the United States
Senate for its advice and consent to ratification.
With respect to fur seals, the two Governments
entered into a provisional agreement for the dura-
tion of tlie emergency and 12 months thereafter *
to prohibit pelagic sealing in defined waters of the
Bering Sea and the Pacific Ocean, subject to pos-
sible exceptions made necessary by wartime emer-
gencies. The agreement also increased the Cana-
dian share of the sealskins taken upon the Pribi-
lof Islands by adding to it a part of the share
formerly received by Japan under the fur-seal
convention of 1911.
June 22, 1947
Tariffs
No general change in the tariff structure be-
tween the United States and Canada has taken
place since the 1938 trade agreement between the
two countries became effective on January 1, 1939.
Since the Hyde Park agreement, however, the two
Governments have agreed to a number of modifica-
tions relating to individual products. They are
currently participating in negotiations at Geneva,
on a multilateral basis with other nations, and it is
expected that further reductions in trade barriers
will be agreed upon.
With respect to tariffs it should also be noted
that as an emergency measure, and in line with the
policy statement of the Joint War Production
Committee, already quoted, the President issued
Executive Order 9177 on May 30, 1942, extending
to the Secretaries of War, the Treasury, and Agri-
culture and to the Reconstruction Finance Corpo-
ration legal authority already vested in the Secre-
tary of the Navy to import, free of duty, emer-
gency purchases of war materials, including mate-
rials from Canada.
Taxation
Three Canadian-American taxation agreements
have been made since 1941. One of these '" dealt
solely with Provincial and municipal taxation of
projects being constructed by the United States in
Canada for the joint defense of the two coimtries.
The Canadian Government agreed to intervene in
any legal proceedings brought in Canada to collect
Provincial or municipal taxes from the United
States Government on real property owned or
leased, or in respect to license fees on motor vehicles
owned by the United States, and to reimburse the
United States for such taxes if the courts should
hold the United States liable to pay them. The
Canadian Government also agreed to refund, as
part of its contribution to the cost of the defense
projects, the amount of municipal taxes levied on
American contractors employed by the United
States Government on its military projects in
' By an exchange of notes dated July 21 and Aug. 5,
1944.
' For an article by Durand Smith on the Great Lalies
fisheries convention and its bacliground, see BTOicnN of
Apr. 13, 1947, p. 643.
' By an exchange of notes dated Dec. 8 and 19, 1942.
" Effected by an exchange of notes dated Aug. 6 and 9,
1943.
1189
Canada, and to request the Provincial govern-
ments not to impose certain taxes upon American
personnel engaged on such projects.
The other two taxation agreements mentioned
dealt with the avoidance of double taxation and
the prevention of fiscal evasion. The convention
and protocol of March 4, 1942,^^ lays down provi-
sions under which individuals and corporations are
relieved from double taxation with respect to in-
come taxes in one of two ways, either by the out-
right exemption of certain categories of income
and profits from taxation in one or the other of
the two countries or by the allowance of credit
against the tax imposed in one of the countries for
the tax paid the other country. The convention of
June 8, 1944," lays down similar provisions relat-
ing to Federal estate taxes in the United States and
to taxes under the Dominion Succession Duty Act
in Canada. Both these conventions were negotiated
as part of a much broader program to reduce by
international agreement with as many countries
as possible double taxation to which American
nationals have been subject.
Civil Aviation
When the United States entered World War II,
its relations with Canada in the field of civil avia-
tion were governed by an air-navigation agreement
of July 28, 1938, and by an agi'eement of August
18, 1939, supplemented by an exchange of notes
dated November 29 and December 2, 1940. The
exchange of notes had provided that in the middle
of 1942 the two Governments would meet to con-
sider revisions of the allocation of air-transport
routes to American and Canadian carriers. War
conditions, however, made it impracticable to hold
this meeting and on March 4, 1943, the two Govern-
ments agreed to continue until the end of the war
the allocations made in 1940.
Following the International Civil Aviation
Conference held in Chicago late in 1944 the United
States and Canada decided to supersede these civil-
aviation arrangements (except the 1938 agree-
ment) with a new agreement for civil air trans-
port. On February 17, 1945, therefore, they ex-
changed notes concluding such an agreement. Its
provisions included clauses permitting non-stop
transit flights and granting the right to land for
" Now in effect as from Jan. 1, 1941.
" Now in effect from June 14, 1941.
1190
non-traffic purposes, as well as granting the traffic
points listed below. They also included measures
designed to prevent discriminatory practices and
to insure equality of treatment, and specified the
routes which could be serviced by American and
Canadian carriers respectively.
Under the 1945 allocation. United States car-
riers could service the following routes : Boston to
Moncton, Boston to Montreal, New York or Boston
to Quebec, New York to Montreal and Ottawa (but
not both on the same flight) , Washington to Mont-
real and Ottawa (but not both on the same
flight), Buffalo to Toronto, Fargo to Winnipeg,
Great Falls to Lethbridge, Seattle to Vancouver,
Seattle to Wliitehorse, Fairbanks to Whitehorse,
and a stop at Windsor permitted for any American
airline serving Detroit. Canadian airlines were
allocated the following routes : Halifax to Boston,
Toronto to New York, Toronto to Cleveland,
Toronto to Chicago (with a stop at Windsor pro-
hibited). Port Arthur to Duluth, Victoria to
Seattle, Whitehorse to Fairbanks, and a stop at
Detroit permitted for any Canadian carriers serv-
ing Windsor.
These routes were recently revised by an ex-
change of notes dated April 10 and 12, 1947, which
liberalized the provisions previously in force. As
far as United States carriers are concerned, the
routes allocated remain the same, but Montreal and
Ottawa can now be serviced on the same flights
from New York or Washington, so long as no
Canadian cabotage rights are exercised. The
restriction on stops at Windsor on the Toronto-
Chicago run of Canadian carriers was likewise
removed, and the Canadian carrier operating the
service between Winnipeg and Toronto was given
permission to stop at Sault Ste. Marie, Michigan,
and to pick up and set down traffic there.
In addition to the cooperative allocation of air-
transport routes, the Canadian and United States
Governments are currently cooperating on two
other matters afi'ecting civil aviation. On March
4 of this year it was announced in the Canadian
House of Commons that the United States was
assisting the Canadian Government in the estab-
lishment of nine Arctic weather stations, two of
which are expected to be in operation this summer.
The value to aviation of accurate meteorological
information to be made available by these stations
was specifically mentioned. It was further
Department of State Bulletin
announced on March 25 that the Canadian Gov-
ernment contemplates, with the assistance of
American technical personnel and equipment, the
;onstruction of two low-frequency loran " stations
in northern Canada. This type of aviation aid
[las shown promise in joint tests already under-
taken by the United States and Canada and the
Provisional International Civil Aviation Organi-
zation has recommended it as the standard aid to
long-range navigation.
Waterways and Power
The United States and Canada made a number
of special wartime arrangements for the purpose
of increasing the waterpower supply needed for
wartime industrial plants. Even before the
United States entered the war, two agreements "
had been reached for additional diversion for
power purposes, from the Niagara River above
Niagara Falls, of a total of 12,500 cubic feet of
water a second on the American side of the falls
and of 9,000 cubic feet a second on the Canadian
side. An agreement had also been reached " for
the temporary raising of the level of Lake St.
Francis during low-water periods so that the
Canadian power company utilizing water diverted
from that lake could continue to export power
needed by an American aluminum plant in the
State of New York. Early in 1944 ^^ the two Gov-
ernments agreed upon the terms of a reference to
the Canadian-American International Joint Com-
mission requesting an investigation and report as
to the practicability and desirability of a further
development of the water resources of the Colum-
bia River basin for a number of purposes, includ-
ing the efficient development of water power."
By far the most important question relating to
power and waterways now of concern to the Gov-
ernments of the United States and Canada, how-
ever, is the proposed development of the Great
Lakes-St. Lawrence basin. Proposals for such
development have been under consideration for
many years, but no complete agreement has yet
been effected. In 193G negotiations had been re-
opened, and in 1940, when the need for additional
power became urgent and the desirability of inland
shipbuilding became apparent. President Roose-
velt appointed a St. Lawrence Advisory Commit-
tee. This Committee and its Canadian counter-
June 22, 1947
747553 — 47 2
part, the Temporary Great Lakes-St. Lawrence
Basin Committee, submitted a joint report on Jan-
uary 3, 1941. Using this report, the Executive
branches of the two Governments negotiated an
agreement for the utilization of the water in the
Great Lakes-St. Lawrence basin, which was signed
on March 19, 1941. Implementation of this docu-
ment still awaits legislative approval.
Recently the two Governments have considered
the possibility of imposing tolls to make the con-
struction project proposed in this agreement self-
liquidating. No objection has been made by the
Executive branch of either Government to this
method of decreasing the cost of the project to the
two Governments, and legislation, supported by
the Department of State, was introduced in both
houses of the United States Congress on May 9 of
this year to authorize the construction, on a self-
liquidating basis, of the combined hydroelectric
and navigation project contemplated by the agree-
ment. If this legislation is passed, and if similar
authorization is given by the Canadian Govern-
ment, large power-generating units will be built in
the International Rapids Section of the St. Law-
rence River, and the contemplated 27-foot channel
between the mouth of the St. Lawrence and the
head of the Great Lakes will give a large amount
of ocean shipping access to inland ports of both
Canada and the United States.
Economic Aspects of Military Projects
No consideration of Canadian-American cooper-
ation during World War II and since should omit
brief mention of the future peacetime implications
to the United States and Canada of their coopera-
" Long-range radar aid to navigation.
" Dated May 20 and Oct. 27, 1941, respectively.
'^ On Nov. 10, 1941 ; renewed by exclianges of notes dated
Oct. 5 and 9, 1942, Oct. 5 and 9, 1943, and Aug. 31 and
Sept. 7, 1944.
" By an exchange of notes dated Feb. 2.^ and Mar. 3, 1944.
"In considering the practicability and desirability of
further developing the upper Columbia River basin the
International Joint Commission was to have In mind not
only water power but also domestic water- supply and
sanitation, navigation, flood control, irrigation needs, rec-
lamation of wet lands, and conservation of fish and wild-
life. This reference is illustrative of the scope of the
problems dealt with by the Commi.ssion, which, since its
establishment under the terms of tlie treaty of Jan. 11,
1909, with Great Britain, has in many ways served as a
model in the field of international cooperation.
1191
tion on two important wartime military projects.
The Canadian part of the Alaska Highway, con-
structed as a wartime measure, has now become an
integral part of the Canadian highway system.
It is understood, however," that the part of the
highway lying in Canada, and the Canadian high-
ways leading from the United States border to
the southern terminus of the Alaska Highway,
will always be open to American traffic on the same
terms as to Canadian traffic, and that the Canadian
Government will "waive import duties, transit or
similar charges on shipments originating in the
United States and to be transported over the high-
way to Alaska, or originating in Alaska and to be
transported over the highway to the United
States." i» How much normal traffic will even-
tually travel over this highway is not yet known,
but the Canadian authorities at Edmonton, Al-
berta, now issue an average of 600 permits a month
for northbound travel on the highway,^" and, as
the Alaska Highway is the only land link comiect-
ing the continental United States with Alaska,
it is potentially very important.
Far more important for its implications for the
future economy of the United States and Canada
was the cooperative development of atomic energy
during the war. So far the application of this
wartime development to peacetime industry and
commerce is a thing of the future, but since Canada
has some of the supplies of raw materials needed
for atomic development and since the United
States has great productive capacity, which was
developed for war needs, Canadian-American
cooperation is a logical path for future develop-
ments to pursue.
"Under the terms of an exchange of notes dated Mar.
17 and 18, 1942, supplemented by an exchange of notes
dated Apr. 10, 1&43.
" Bdlletin of Mar. 21, 1942, p. 238.
"The Canadian authorities require permits for travel
on the Alaska Highway to insure that vehicles are "road-
worthy" and that travelers are able to meet emergencies
themselves, since little assistance in matters of food, shel-
ter, or automotive repairs can be found along long stretches
of the highway.
" This agreement, effected by an exchange of notes dated
Nov. 30, 1942, contains language almost identical with that
included in article VII of the mutual-aid agreements. Can-
ada, although it did not receive lend-lease from the United
States, made In this agreement the same commitments con-
cerning postwar economic relations which other nations
made in connection with receiving lend-lease.
1192
Canadian and American Participation in
International Economic Agencies
Canadian-American economic cooperation dur-
ing the war and since has been by no means limited
to the bilateral measures discussed above. Both
the Canadian and United States Governments took
very active parts during the war in planning the
organizational framework of postwar interna-
tional cooperation. Both Governments likewise
participated in emergency international organi-
zations established during the war, including in
the economic field the United Nations Relief and
Rehabilitation Administration, the United Na-
tions Interim Commission on Food and Agricul-
ture, and the Provisional International Civil
Aviation Organization, the seat of which was
located in Canada. Permanent international eco-
nomic agencies in which both Canada and the
United States participate include the Interna-
tional Bank for Reconstruction and Development,
the International Monetary Fund, the Food and
Agriculture Organization of the United Nations,
the International Civil Aviation Organization,
and the International Labor Organization, in
addition to the Economic and Social Council of
the United Nations. Still in the process of evolu-
tion, with Canadian and American support, is an
International Trade Organization.
The Canadian and United States Delegations
to all these international organizations do not al-
ways agree, of course, on the manifold and com-
plex problems with which the organizations deal.
There have been frequent differences of opinion.
The two Governments, however, have a similar
basic approach to many of the problems of inter-
national economics and, having worked so closely
together on matters of bilateral interest, they find
it comparatively easy to cooperate in the multi-
lateral sphere.
Indeed, as early as November 30, 1942, the
United States and Canada reached an agreement "
that looked forward to expanding their bilateral
cooperation into world cooperation. Officers of
the two Governments recorded this agreement in
the following terms :
"They are in agreement that post-war settle-
ments must be such as to promote mutually advan-
(Continued on page 1246)
Department of Stale Bulletin
THE ECONOMICS OF PEACE IN THE "INTERIM PERIOD
»>
hy George C. McGhee
Aside from the appalling human and social
wreckage which it created, the war left much of
the world in a desperate economic situation. The
United States now faces the necessity of taking a
role of leadership in restoring the world to some
semblance of normalcy. "We have inherited grave
responsibilities both in political and in economic
matters, which are in themselves so tightly bound
together that we cannot separate them.
Most Americans would undoubtedly like to
withdraw from the rest of the world, enjoy the
fruits of their own favored economic system, and
live out their own lives. But it simply can't be
done. We cannot escape our responsibilities in the
one world of today.
Why are we, for example, being unified into ef-
fective action by distant happenings in Greece?
Few of us know much about modern Greece. Her
people, customs, and government are different
from ours. Yet Greece is in trouble and the Amer-
ican people have decided to go to her aid with
American goods and skilled American technicians.
We Americans have honest humanitarian im-
pulses; we are capable of great generosity. But
these are not the only motives which impel us to
spend so many millions of dollars for Greece.
Greece's troubles are typical of those that exist
in many countries of the world today. Greece has
been invaded by brutal and destructive enemies.
Her industrial plant has been largely destroyed.
Her agriculture has been retarded by loss of man-
power and horsepower, deterioration of soil, and
loss of seed crops, eaten by starving people in-
stead of being planted. Even before the war
Greece was not a prosperous country. Her living
standards and the economic opportunities for her
people were low. The postwar period has brought
her poverty, starvation, and — as a natural accom-
paniment— jDolitical disorders which have led to
the present efforts of an armed minority, inspired
from abroad, to take over the government.
June 22, 7947
But why are our own national interests affected
by the troubles of Greece ? The answer is that the
economic and political evils which attack any na-
tion in the world are today as infectious as disease
germs and take as little account of political bor-
ders. If left unchecked, trouble in other countries
will surely spread to the United States.
Back in the early 1930's our own economic dif-
ficulties deeply affected most other countries. We
have been involved in two world wars, both of
which started thousands of miles away from us.
In both wars we were able to keep the actual shoot-
ing away from our country. We now face a simi-
lar problem in keeping the economic and political
ills of the postwar world away from our own land.
We are shareholders in a corporation — the
world — and we can't sell out. This world corpora-
tion has a long history showing capacity to produce
and make profits, but just now it has lost much of
that capacity — in operating capital, manpower,
and plant. The United States, as a shareholder, is
in a position to advance working capital and help
reconstruct plants so the corporation may get back
on its feet. We are doing that very thing in
Greece and elsewhere throughout the world.
Why are we doing it? Because if the world
does not recover, it will eventually be drawn into
economic and i^olitical bankruptcy, and we into
quarrels with our fellow stockholders. Between
nations as between individuals, bad trade relations
give rise to retaliations which result in decreased
world production and lower living standards.
This in turn breeds political unrest and the desire
for aggression against other moi-e prosperous
peoples.
While it cannot be said that a healthy world
economy will in itself prevent war, it is certainly
true that friendly and profitable trade relations
tend to prevent friction that often leads to war.
It is toward the achievement of such relations that
the economic foreign policy of the United States
1193
is directed. Our policy is framed with the over-all
economic well-being of the United States as its
first objective. It is not a give-away policy, and it
is not aimed at achieving domination over other
countries. But it recognizes that Americans can-
not continue their high living standards unless
the rest of the world is reasonably prosperous.
General expansion of world trade and produc-
tion is one of the immediate goals of our economic
foreign policy. This expansion will result in more
goods available, more employment, and higher liv-
ing standards both here and abroad. World trade
enables each individual to produce those things
which he is best able to produce. This is different
for different persons and different countries, just
as some farms — and some farmers — are better
fitted to produce fruit than cotton or tobacco.
Maximum production is possible only when people
can produce what they can produce best and can
trade their products freely and fairly — either
across the county line or across a national
boundary.
The United States must have foreign markets
for many of its principal farm and factory prod-
ucts. It is true that of our total national produc-
tion, less than 10 percent is usually sold directly in
foreign markets. But the percentage is much
greater for many important agricultural and in-
dustrial enterprises.
It is not just the American producer of some-
thing actually sold in a foreign market who bene-
fits from American export business. The people
who have jobs either producing or handling these
goods become paying customers in the home mar-
ket for all American goods. The man who has a
job in an automobile factory in Detroit, for exam-
ple, buys overalls and shirts made of Southern
cotton, and smokes cigarettes made of Southern
tobacco. If exports of American automobiles were
shut off — as they were in the early 1930's — cotton
and tobacco would pile up again in unsaleable
surpluses.
That is the export side. The import side is
equally or more impoi'tant to Americans. Our in-
dustries must have essential raw materials from
abroad, including certain vital ores. There is a
long list of critical and strategic minerals and
metals not found in this country, or available in
inadequate quantities, which are necessary in our
manufacture of steel alloys and other products.
Such needs have been intensified during the war by
1194
the great expansion of our industrial production.
If our industries are to maintain the present pro-
duction levels, we shall continue to need far greater
imports than before the war.
Furthermore, under the necessity to speed up
our war production, we are using up certain vital
natural resources which we used to take for
granted. Our own supplies of lead, zinc, copper,
and petroleum are already short of our needs.
From being a "have" nation we are rapidly be-
coming, in certain commodities, a "have-not"
nation. Wliereas we once exported copper we
must now import 200 million dollars' worth a year
from Chile and other sources.
There are many things which come only from
abroad which we use every day in our homes :
coffee, bananas, tea, silk, and so forth. In addi-
tion there are many other goods, including many
luxuries such as fine fabrics, perfumes, high-qual-
ity leather and textile goods, which we can obtain
to better advantage from abroad.
American consumers need and want these things
from abroad, and they also need jobs in order to
pay for them. Millions of Americans have jobs
producing crops and manufactured goods for ex-
port. It is almost wholly through our imports of
foreign goods that other countries can pay for
the things we want to sell them, or repay the loans
which we have made them.
Another major objective of our economic for-
eign policy is to get rid of discriminations in in-
ternational commerce. These discriminations —
preferential tariff rates, bilateral and exclusive
deals between nations, import licensing and ex-
change-control devices, and others — hold down
total world trade and cause resentment and re-
taliation between nations.
Still a third important purpose of our economic
foreign policy is to preserve, in this country at
least, the principles of private enterprise and free
competition upon which the American economy
was developed. Since World War I, many foreign
governments have followed an increasing tend-
ency toward governmental regulation of their
commerce, especially their trade with other coun-
tries. Some governments are not only strictly con-
trolling their foreign trade but are actually con-
ducting it.
Americans believe, however, from their own ex-
perience, that commerce will reach maximum
Department of State Bulletin
levels and be carried on more efficiently in the
hands of experienced private traders. Successful
private traders have a wealth of detailed knowl-
edge gained by actual trading over many years.
They know the intricacies of consumer demand,
seasonal fluctuations, and the vagaries of the mar-
kets in which they buy. They can make prompt
decisions. They can take risks when risks are
justified. Foreign trade, especially, demands the
freedom of action which it can have only in the
hands of private citizens, not governments.
The United States Government has already or-
ganized and launched a number of measures, both
independently and in cooperation with other coun-
tries, for accomplishing its international economic
objectives. It has taken the lead in this effort be-
cause, as the strongest economic power in the
world, it is the only country able to undertake the
job, and because it has a very great deal at stake.
The United States was the leading participant
in setting up the International Bank for Recon-
struction and Development and the International
Monetary Fund under the Bi'etton Woods agree-
ments. The Bank was created as the agency
through which ijational governments would
cooperate in providing private or government
capital to help war-devastated countries restore
their economies. It was also created to assist un-
developed countries build up their industries so
as to use their manpower and natural resources
efficiently. It will provide some of the working
capital needed to get a bankrupt world off dead
center.
During the period since the war, the United
States Government has, furthermore, taken ex-
tensive action of its own to accomplish purposes
similar to those of the international bodies which
I have mentioned. Very large direct loans and
credits have been extended, such as the three and
three-quarter billion dollar loan to the United
Kingdom, and loans to France, Italy, Czecho-
slovakia, and others. Total relief given during
this period — for which repayment is not asked —
amounts to three billion dollars.
The world cannot, however, live forever on
artificial injections of loans and relief grants. A
rebuilt world plant will be able to stand once more
on its own feet only if a large and steady flow of
international trade is resumed. Trade is the life
blood of a healthy world economy.
June 22, 1947
Representatives of this Government, led by
Under Secretary Clayton, who himself was once
one of this country's greatest traders, are meeting
now in Geneva, Switzerland, with representatives
of 17 other trading countries. These countries
ordinarily carry on, among them, some two thirds
of the world's international commerce. This is
the first attempt, on such a large scale, to seek the
solution of common trade problems through inter-
national consultation and cooperation.
The Geneva meeting has two purposes. One
is to negotiate reciprocally for reductions in
governmental barriers to international trade and
the elimination of discriminations in trade. The
other is to write a code of fair conduct in interna-
tional trade — a charter for a proposed permanent
International Trade Organization.
Governmental trade restrictions and discrim-
inations are a major factor in holding down world
trade. They are important sources of interna-
tional irritation and ill will. No one nation,
however, is willing or even able to abandon its use
of such measures unless the nations with which
it trades will do the same thing. At Geneva the
countries are bargaining, each offering reductions
in its tariff quotas or other barriers, in. return for
reductions by other countries.
The chain of events leading up to the Geneva
meeting goes back to 1934 when the Congress
passed the Trade Agi-eements Act and the United
States Government launched the Hull reciprocal
trade-agreements program, so called because of
Secretary of State Cordell Hull's sponsorship and
initial administration of the program. The act
authorizes the President to negotiate trade agree-
ments with foreign countries and to modify United
States tariffs and other import restrictions, in or-
der to make the agreements effective. This author-
ity was granted for a period of three years and has
been renewed four times. The most recent re-
newal was in 1945, when Congress not only
extended but increased the authority of the Presi-
dent to reduce tariffs in trade agreements.
Because the United States relies chiefly on its
tariff system for control of imports, the chief bar-
gaining stock of the American Delegation is the
lowering of American tariffs. In return, we are
asking the other countries to relax their restric-
tions and trade discriminations, most of which
operate to the disadvantage of our traders.
1195
If we obtain in Geneva some of the objectives
for which we are bargaining, private traders in
the United States will be able to carry on their
business with people in other countries with a
minimum of assistance from this Government. If
not, this Government may ultimately be forced to
assist American traders by bargaining with other
governments for entry of things which we want
to sell abroad and for the right to purchase things
which we want to buy. Inevitably, this means in-
creased governmental control of American foreign
commerce.
The second and closely related part of the job
at Geneva is to draft a charter for an Inter-
national Trade Organization. The draft now
being considered there requires that each nation
becoming a member of the organization shall
negotiate with the other member for reduction of
trade barriers and abolition of discriminations, as
the nations now at Geneva are doing.
The charter will cover other matters as well.
One is an undertaking by each member to take all
practicable steps to maintain full employment and
buying power in its own economy, by methods
which will not injure other members. Another is
agreement to consult with and assist other mem-
bei-s in their industrial and economic advance-
ment. Still another is agreement to limit and
regulate the use of subsidies, quotas, cartels, and
other obstacles and discriminations in trade.
A major purpose of the charter is to provide for
consultation among members on trade matters and
the cooperative settlement of trade problems. The
trade organization will not be a policing organiza-
tion. It will not undertake to regulate or dictate
to members on trade matters. Its etfectiveness
will rest primarily on the good faith of the mem-
ber nations in carrying out their agreement and
on the mutual trade advantages which they will
obtain through their membership in the organiza-
tion.
The meeting at Geneva opened on April 10, and
it is not yet possible to report in detail what has
so far been accomplished on a project of such scope
and technical complexity. Work on the reciprocal
trade agreements and on the drafting of the char-
ter is proceeding simultaneously. There is no
denying the fact, however, that there remain
difficult problems to be solved in Geneva. Possibly
the greatest of these is the plain fact that foreign
1196
countries do not have enough United States dol-
lars to buy all the American products they need
and that we could sell them. This limits those
countries in the immediate concessions which they
can offer us. Our 1947 exports, it is estimated,
will total 16 billion dollars and our imports only
8 billion. The rest of the world just can't dig up
the additional 8 billion dollars.
The ultimate solution of this problem, pointed
out by Mr. Clayton early in the Geneva conference,
is for the United States to increase its imports of
goods and services which we want and need from
the rest of the world, which will permit their pro*
duction to increase. "Certainly," Mr. Clayton
said, "we don't want to try to solve the problem
by cutting down our exports — which would mean
cutting down our own production and employ-
ment."
Our own delegation, furthermore, faces diffi-
culties in offering tariff concessions on some im-
portant conunodities — such as wool, sugar, or
winter vegetables — because American producers
fear the effects of increased imports. These prod-
ucts constitute key exports of other countries
represented at Geneva.
When the work of the Preparatory Committee
at Geneva is completed, the draft charter will be
presented for consideration by an International
Conference on Trade and Employment, which the
Economic and Social Council of the United Na-
tions expects to call in late 1947. It is hoped that
50 or more of the United Nations, and others, will
attend that conference and adopt the charter,
which will thereafter be presented to the different
governments represented and to the Congress of
the United States for approval. If everything
goes smoothly the International Trade Organiza-
tion should be set up and at work by the end of
1948.
The completion of the galaxy of international
economic institutions will not, however, in itself
assure an early solution to all of the world's eco-
nomic problems. These institutions can succeed
only to the extent that the principles upon which
they are based are sound, and are accepted in good
faith by the nations of the world. Until a more
healthy world economy is attained, moreover, it
will be difficult for the best-intentioned nations to
abandon national solutions to their economic prob-
lems, even for principles which they sincerely
Department of State Bulletin
MriiKDi 1 Ki> i(> BK iiKi I) A I HEADQUMTOtS
Security Council
Atomic Energy Coomission
Cofflnissloo on Conventional Armarnents
Miscellaneous not ot^erwi9e included
General Assembly
Comnittee on Procedure
Joint Comittee on Rules of Procsdure-Admission of New Members
Prelininary Session of the Special Comnittee on Palestine
ECOSOC and Standing Comlttees
Economic and Efflployment Comission
Sut>-Cannis9ion on Economic Development
Sub-Ccmission on Econonic Stability and Employment
CoBinittee of the l*hole-Economic Cormission for Asia I Far East
r East tttrfcing Group on Economic Reconstruction of Devastated Areas
Transport and Conriunications Commission
Statistical Commission *'{Comoittee on Industrial Classification)
Sub^Connisslon on Statistical Sampling
Fiscal Commiasion
Social Connission
Temporary Social Welfare Comnittee
Population Connission
Cormission on Human Rights
Sob-Conn isa ion on Freedom of Information
-Commisiion on Prevention of Discrimination I Protection of Hlnoritiea
Drafting Comnittee on 6i II of Rights
Conmissien of the Status of Women
Technical CoTOittee on Relief Meeds After Termination of UNRAA
Narcotics Drugs Cornniision
Trusteesnlp Council (3)
Comittee on Information Transmitted under Article 73e (3)
Conference of International Organizations
Comittee on the Development of International Uw j Codification
Advisory Committee on Administrative i BudgeUry Questions
Comnittee on Contributions
Coimi ttee-Preparatory Coffrnission-UN Conf, on Trade i Employment
united nations Conference on Trade and Employment (2) (3)
UNITED NATIONS CONFERENCES
1947
^ HEMNHIMTaS
CONKEKENCKiiHKI.U IODATIl CZl GENEV/I
SCHEDULED TO BE HtLD IN GEXVI ^H
EUEWNOK ^
Economic Connission for Europe
Committee of Transport Experts of the ECE
Economic Comission for Asia and Far East (Shanghai)
Transport and Comunlcationa Comnission
»torld Conference on Passport and Frontier Formal ities-Experts
world Statistical Congress (Washington)
Commission on Human Rights
Narcotics Drug Supervisory Body
Permanent Central Opiun Board
Preparatory Comnission - United Nations Conference on Trade * Empl
United Nations Conference on Trade t Ewloyment (2) (3)
Preparatory Comnissior of the IRQ '(Uusanne)
Interim Commission of the WHO (' i Comnittee on Administration A F
WHO Comnittee on Biological Standardization
WHO Expert Comittee on Causes of Death
Food and Agriculture Organization - General Assembly
nance)
111 MA> NOT RE HELD UNIIL l»4M
(31 LOCATION NOT VET FINAIIZEH
|Jj UATES NOT VET FrNAI IZED
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the greatest of these is the plain fact that foreign lems, even for principles which they' sincere
1196
Department of State Bullet
accept as offering the only ultimate solution to
these problems.
This is why experts working in the international
economic field have recognized that there would be
what they have called an "interim period", between
the end of the emergency measures taken immedi-
ately following the war and the time when the in-
ternational institutions would be functioning fully
and effectively. During this period it was expected
that many nations would be forced to adopt short-
range expedients, sometimes at variance with
ultimate objectives.
The discussions at Geneva assume that there
will be such an "interim period", how long no one
quite knows, before all nations can abandon their
wartime restrictions and rely on multilateral world
trade and the free exchange of currencies. We are
not, ourselves, beyond reproach in such matters.
At this time our own State Department is asking
the Congress to extend certain of our own wartime
economic controls which we need a little longer.
Actually the "interim period" is lasting longer than
we thought, and while this period lasts we must be
patient with those nations whose recovery has
lagged behind our own, and must help them where
we can along their difficult path to recovery.
Dean Acheson, Under Secretary of State, recog-
nized clearly our continued responsibility during
the "interim period" in his speech before the Delta
Council on May 8, when he said, "The facts of
international life also mean that the United States
is going to have to undertake further emergency
financing of foreign purchases if foreign countries
are to continue to buy in 1948 and 1949 the com-
modities which they need to sustain life and at
the same time rebuild their economies." ' He rec-
ognized that existing national and international
institutions were not in a position to handle these
needs, which will require further financing on our
part beyond existing authorizations.
Our programs of aid to Greece and Turkey illus-
trate well the realities of the "interim period." It
is clear that the problems of neither country can
be taken care of by existing United Nations ma-
chinery. The problem is urgent. If we want to
preserve the independence of Greece and restore
her economy we must act now. Only we are in
a position to act.
This is why our Government plans to make
available under the Greek program 50 millions of
dollars for dollar reconstruction costs, even though
we hope that funds for such purposes ultimately
can be provided by the International Bank. This
is why we plan to spend 20 millions of dollars on
agricultural rehabilitation in Greece. The Food
and Agriculture Organization was not set up to
do this sort of job. This is why we must resume
United States Government procurement of many
of the requirements for the Greek and Turkish
programs at the same time we are seeking to ter-
minate the activities of other Government pur-
chasing commissions in our country. This is why
we are asking the Greeks to establish import con-
trols and exchange restrictions at the same time
we are negotiating for general removal of restric-
tions at Geneva.
The recognition of an "interim period" does not
represent any lack of faith in the United Nations
or its institutions. It does not mean that we do
not have full confidence that these institutions will
ultimately succeed. It means that until they do
we must continue to meet from day to day our na-
tional responsibilities.
We must not be doctrinaire. We must be effec-
tive. We must not rely on tomorrow's solutions
for today's problems. To do so would really mean
embracing a new form of isolationism. We must
keep our eyes on the stars but our feet on the
ground.
' Bulletin of May 18, 1947, p. 991.
tune 22, 1947
1197
THE UNITED NATIONS
Current United Nations Documents: A Selected Bibliography
There will lie listed periodically in the Buixetin a
selection of United Nations documents which may be of
interest to readers.
Printed materials may be secured in the United States
from the International Documents Service, Columbia
University Press, 20C0 Broadway, New York City. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries in the United
States.
Economic and Social Council
Economic and Employment Commission. Activities of the
United Nations Secretariat Arising Out of Recom-
mendations of the Economic and Employment Com-
mission and Resolutions of the Economic and Social
Council. (A Note Prepared by the Secretariat . . .)
E/CN.1/33, May 26, 1947. 17 pp. mimeo.
Commission on Human Rights. Sub-Commission on Free-
dom of Information and of the Press. Textual Com-
parison of Draft Agenda for the Conference on Free-
dom of Information. (Prepared by the Secretariat).
E/CN.4/Sub.l/22, May 21, 1947. 9 pp. mimeo.
Cumulative List of Documents Issued for the Third Ses-
sion of the Economic and Social Council. E/244, Oct.
30, 1946. 25 pp. mimeo. Also, Addendum to Cumu-
lative List. . . . E/244/Add.l, May 27, 1947. 3 pp.
mimeo.
Fiscal Commission. Report to the Economic and Social
Council on the Work of the First Session of the Com-
mission by Dr. A. R. F. Mackay, Representative for
New Zealand, General Rapporteur. E/440, May 29,
1947. 9 pp. mimeo.
Commission on Human Rights. Drafting Committee.
Memorandum on Historical Background of the Com-
mittee. E/CN.4/AC.1/2, May 29, 1947. 7 pp. mimeo.
Report of the Sub-Commission on Freedom of Information
and of the Press to the Economic and Social Council
and to the Commission on Human Rights. E/441,
June 5, 1947. 18 pp. mimeo.
Draft Agreement Between the Food and Agriculture
Organization of the United Nations and the Inter-
national Labour Organization. E/442, June 6, 1947.
9 pp. mimeo.
Membership of the Sub-Commission on Prevention of Dis-
crimination and Protection of Minorities. E/443,
June 10, 1947. 4 pp. mimeo.
Economic and Employment Commission. Second Session.
Memorandum on International Action To Maintain
World Full Employment and Economic Stability Sub-
1198
mitted by the Representative of the United States.
E/CN.1/36, June 3, 1947. 5 pp. mimeo.
Memorandum on Reports on World Economic Con-
ditions and Trends Submitted by the Representative
of the United States. E/CN.1/37, June 5, 1947. 6 pp.
mimeo.
Commission on Human Rights. Drafting Committee.
Draft Outline of International Bill of Rights.
E/CN.4/AC.1/3, June 4, 1947. 17 pp. mimeo.
United States Suggestions for Redrafts of Certain Ar-
ticles in the Draft Outline. E/CN.4/AC.1/8, June 11,
1947. 7 pp. mimeo.
International Bill of Rights. Resolution Adopted by
the Economic and Social Council on 24 March 1947.
E/CN.4/AC.1/9, June 11, 1947. 13 pp. mimeo.
Sub-Commission on Freedom of Information and of
the Press. Texts of Statements made at 21st Meet-
ing . . . E/CN.4/Sub.l/32, June 9, 1947. 28 pp.
mimeo.
Economic and Social Council. Fourth Session, 28 Febru-
ary to 29 March 1947. Disposition of Agenda Items
and Check List of Documents of the Council, Its Com-
mittees and Sub-committees. Prepared by the Docu-
ments Index Unit. E/INF/13, May 26, 1947. 46 pp.
mimeo.
General Assembly
Statement by the Representative of Poland Before the
Fourth Meeting of the Committee on Progressive De-
velopment and Codification of International Law,
15 May 1947. A/AC.10/19, May 15, 1947. 7 pp. mimeo.
Methods for Enlisting the Co-operation of Other Bodies,
National and International, Concerned With Inter-
national Law. A/AC.10/22, May 16. 1947. 22 pp.
mimeo.
Committee for the Progressive Development of Interna-
tional Law and Its Codification. Statement by the
Representative of the Netherlands Before the Fourth
Meeting of the Committee, 15 May 1947. A/AC.10/23,
May 16, 1947. 5 pp. mimeo.
Confirmation to the United Nations
The Senate on June 10, 1947, confirmed the nom-
ination of Monnett B. Davis to be the Representa-
tive of the United States of America on the
Economic Commission for Asia and the Far East
established by the Economic and Social Council
of the United Nations on March 28, 1947. |
Department of State Bulletin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings '
n Session as of June 15, 1947
■"ar Eastern Commission . . .
Jnited Nations:
Security Council
Military Staff Committee . .
Commission on Atomic Energy
Commission on Conventional Armaments
Committee on Progressive Development and Codification of Inter-
national Law.
ECOSOC (Economic and Social Council) :
Economic and Employment Commission: Second Session . . .
Human Rights Drafting Committee
[nter-Allied Trade Board for Japan
Gierman External Property Negotiations (Safehaven) :
With Portugal
With Spain
With Turkey
International Conference on Trade and Employment: Second Meet-
ing of the Preparatory Committee.
Congress of the Universal Postal Union
Council of Foreign Ministers: Commission To Examine Disagreed
Questions of the Austrian Treaty.
FAO (Food and Agriculture Organization) : Rice Study Group . . .
International Radio Conference
ILO (International Labor Organization) : 102d Session of the Gov-
erning Body.
Scheduled for June-August 1947
United Nations:
Economic Commission for Asia and the Far East:
First Session
Committee of the Whole
Economic Commission for Europe: Second Session
ECOSOC (Economic and Social CouncU) :
Fifth Session
Narcotic Drugs Commission: Second Session
Subcommission on Economic Development
Population Commission : Second Session
Washington .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Washington .
Lisbon
Madrid
Ankara
Geneva
Paris .
Vienna
Trivandrum, Travancore,
India.
Atlantic City
Geneva
Shanghai . .
Lake Success .
Geneva . . .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
' Prepared in the Division of International Conferences, Department of State.
' Tentative.
June 22, 1947
747553 — 47 3
1946
Feb.
26
Mar.
25
Mar.
25
June
14
1947
Mar.
24
May
12-June 17
June 2-June 17
June 9
1946
Oct.
24
Sept
. 3
Nov
12
1947
May 29 '
Apr. 10
May 7
May 12
May 15- June 6
May 15
June 13-17
June 16
July 7
July 5
July 19
July 24
Aug. 18 2
Aug. 18 »
1199
Calendar oj Meetings — Continued
United Nations: ECOSOC — Continued
Human Rights Commission: Second Session
Statistical Commission: Second Session
Social Commission: Second Session
Permanent Central Opium Board
Committee on Information From Non-Self-Governing Territories .
ECITO (European Central Inland Transport Organization) : Seventh
Session of the Council (Second Part).
ICAO (International Civil Aviation Organization):
South American Regional Air Navigation Meeting
South Atlantic Regional Air Navigation Meeting
Aerodromes, Air Routes, and Ground Aids Division
ILO (International Labor Organization) :
30th Session of the International Labor Conference
Permanent Agricultural Committee
Sixth International Conference of Labor Statisticians
Industrial Committee on Iron and Steel Production
"Journdes M6dicales de Bruxelles", 21st Session
Caribbean Commission: Fourth Meeting
International Sugar Council
International Congress of River Transportation
lARA (Inter- Allied Reparation Agency): Meeting on Conflicting
Custodial Claims.
International Telecommunications Plenipotentiary Conference . . .
International Council of Scientific Unions: Executive Committee . .
International Rubber Study Group
Special Cereals Conference
IRO (International Refugee Organization): Third Part of First
Session of the Preparatory Commission.
Fourth International Congress on Microbiology
Seventh International Congress of Administrative Sciences
UNESCO (United Nations Educational, Scientific and Cultural
Organization) : Executive Board.
FAO (Food and Agriculture Organization) :
Panel on Soil Erosion Control
Meeting of Specialists on the Control of Infestation of Stored Food
Products.
Executive Committee
Annual Conference: Third Session
International Meteorological Organization: Meeting of Technical
Commissions.
WHO (World Health Organization):
Committee on Administration and Finance
Fourth Session of the Interim Commission
International High Frequency Broadcasting Conference
Geneva . . .
Lake Success .
Lake Success .
Geneva . . .
Lake Success .
Paris . . . .
Lima ....
Rio de Janeiro
Montreal . .
Geneva .
Geneva .
Montreal
Stockholm
Brussels .
Jamaica -
London
Paris .
Brussels
Atlantic City
Paris . . . .
Paris . . . .
Paris . . . .
Lausanne . .
Copenhagen
Bern . . .
Paris . . .
Washington
London . .
Geneva
Geneva
Toronto
Geneva
Geneva
Atlantic City
» Tentative.
1947
Aug. 25 '
Aug. 28 2
Aug. 28 2
Aug. 25 2
Aug. 28 2
June 17
June 17
July 15
Aug. 19
June 19
July
Aug. 4
Aug. 19
June 21-25
June 23-28
June 24
June 26-28
June 2
July 1
July 1-2
July 1-10
July 9
July 15
July 20-26
July 23-30
July 24
July
Aug. 6
Aug. 21
Aug. 25
Aug. 4-Sept.
Aug. 28
Aug. 30-Sept.
Aug. or Sept.
1200
Department of State Bulletin
FHE SELECTION OF PLANTS FOR REPARATIONS
tElVIOVALS, DESTRUCTION, OR RETENTION IN
lAPAN '
1. Within tliose amounts of industrial capacity
ietermined by the Far Eastern Commission for
■etention in Japan, for destruction, or for removal
IS reparations, the Supreme Commander for the
Allied Powers should, in selecting specific plants,
machinery, equipment, and other facilities, give
consideration to the following :
a. Security and industrial disarmament re-
:iuirements: facilities which have been employed
in primary and secondary war industries and f a-
lilities in war-supporting industries, the opera-
tion of which was directly and closely related to
war industries, should be removed in preference
to those not so employed.
&. The achievement of a fair balance between :
(1) The general preferences of reparations
claimants for plants, machinery, equipment and
ather facilities
(a) Of modem and efficient design and
manufacture
(b) In good working condition and ca-
pable of being removed from Japan with
minimum loss of value and efficiency
(c) In consolidated or integrated units
(d) Of special value or need to claimant
countries, and
(2) The legitimate needs, as determined by the
Far Eastern Commission, of Japan's peacetime
economy for similar equipment having due regard
for the geographical location of individual plants
in reference to markets, raw materials, manpower,
fuel supply, and complementary facilities; for
variations in specific products as among types,
sizes and other variable characteristics; and for
the feasibility of repair and rehabilitation in
Japan.
c. The occupation policies of dissolving large
industrial and banking corporations which have
exercised control over a great part of Japanese
trade and industry.
d. Consistent with the provisions of paragrapli
a, 6, and c, the following order of preference in
the selection of particular plants, machinery and
equipment for removal :
'1) P' "ts and equipment owned by the
AC7IV(T/ES AND DEVELOPMENTS
"Zaibatsu" concerns and other big industrial
and financial concerns and companies
(2) Plants and equipment owned by other
Japanese nationals, the Japanese Government,
and by nationals and Govermnents of the
countries which were allies of Japan
(3) Plants and equipment owned by na-
tionals and Governments of the neutral coun-
tries.
2. Property of nationals of Members of the
United Nations should be dealt with in accordance
with FEC-226/1 (Destruction or Removal of
United Nations' Property in Japan, Serial No. 76,
approved 24 April 1947).^
EXPERTS MEET AT GENEVA TO PREPARE FOR
A WORLD CONFERENCE ON PASSPORT AND
FRONTIER FORMALITIES
A meeting of experts on passport and frontier
formalities, called by tlie United Nations to pre-
pare for a world conference on passport and fron-
tier formalities, was held at Geneva, Switzerland,
from April 14 to April 25, 1947. Delegates from
31 nations and observers from 5 nations ^ attended
the meeting to discuss the recommendations made
by the International Chamber of Commerce, the
Provisional International Civil Aviation Organ-
ization, the International Conference of National
Tourist Organizations, the International Auto-
mobile Federation, the International Touring As-
sociation, the International Air Transport Asso-
ciation, and other international bodies for the
simplification of documentary requirements and
frontier formalities.
^ Policy decision approved by the Far Eastern Commis-
sion on May 22, 1947, and released to the press on June
10. A directive based upon this decision has been for-
warded to the Supreme Commander for the Allied Powers
for Implementation.
' Bulletin of May 18, 1947, p. 086.
' The 31 nations represented by official delegates were :
Argentina, Australia, Belgium, Bolivia, Canada, Chile,
China, Colombia, Czechoslovakia, Denmark, Dominican
Republic, Ecuador, El Salvador, Ethiopia, France, Greece,
Guatemala, India, Iraq, Lebanon, LuxembourK, Mexico,
Netherlands, Norway, Poland, Sweden, Turkey, Union
of South Africa, United Kingdom, United States, and
Venezuela. Tlie five countries represented by observers
were : Afghanistan, Brazil, Iran, New Zealand, and
Yugoslavia.
June 22, 1947
1201
ACTIVITIES AND DEVELOPMENTS
In May 1946 the Temporary Transport and
Communications Commission of the Economic and
Social Council of the United Nations recommended
to the Council that a world conference on passport
and frontier formalities meet as soon as possible
to simplify the nonimmigrant travel of peoples
between countries. At its second session the
Economic and Social Council adopted a resolution
stating that a meeting of experts should be con-
vened to prepare for a world conference on pass-
port and frontier formalities. At its third session
the Council requested the Secretary-General to
prepare an agenda for the meeting of experts
which would take into consideration the recom-
mendations of official and other competent inter-
national groups on the subject of passports, visas,
and frontier formalities. As a result, the Secre-
tary-General submitted a preparatory memoran-
dum containing a suggested agenda made by the
various international groups. Invitations were is-
sued to all the United Nations members to par-
ticipate in this meeting. At the same time the
suggested agenda was issued, which included a
consideration of all the recommendations pertain-
ing to passports, visas, and other frontier docu-
ments, in addition to such frontier formalities as
police, currency, customs, and public health con-
trol.
The meeting of experts was opened on April 14
by David Owen, Assistant Secretary-General in
charge of economic affairs of the United Nations.
A decision was made by the Conference to take up
all matters on the agenda in plenary session and
to create a drafting committee to resolve prob-
lems of consolidation, summary, and wording.
The drafting committee submitted its final report
on Friday, April 25.
The recommendations of the United States
Delegation were in general the most liberal pre-
sented. They were to a large extent adopted by the
meeting and recommended to the attending gov-
ernments. The recommendations finally adopted
by the Conference and written into the report to
the United Nations Economic and Social Council
proposed acceptance of the following general prin-
ciples :
(1) The maintenance of a single passport
system based on the international type of pass-
port; the encouragement on a reciprocal basis of
the elimination of passport requirements by bi-
lateral agreements; the widening of the useful-
ness of the passport in terms of time and area ; the
fixing of passport fees in such a manner as not to
bring in revenue exceeding the expenditure in-
volved in the preparation and issuing of passports ;
and the simplification of formalities for obtaining
passjDorts.
(2) The universal abolition of exit visas and
general simplification of exit formalities.
(3) Countries which have entered into agree-
ments to abolish visas should undertake negotia-
tions for further agreements of a similar nature,
with the general abolition of visas as the ultimate
objective; while the general abolition of transit
visas is not feasible as an immediate measure, it
would contribute to that end if they were abolished
as widely as possible, especially by agreement be-
tween governments; the usefulness of the visa
should be extended in terms of the number of
joui'neys permitted, period of validity, and poiis
of entry. I
(4) The adoption of universal abolition of visa
fees as an objective and the elimination of dis-
crimination on the basis of nationality, itinerary,
purpose of visit, means of transport, or flag of
vessel in such fees; the simplification of procedure
for obtaining a visa ; the elimination of discrimi-
nation against a visitor because his objective is
the conduct of commercial business ; and the elimi-
nation of all supplementary fees.
(5) The simplification and expedition of fron-
tier controls and the provision of adequate facili-
ties for their operation.
(6) The recommendation of a simplified cer-
tificate system for protecting currency of travelers
entering and leaving exchange-control countries;
an increase of exchange facilities at ports of en-
try ; and the publication or regulation of rates of
exchange.
(7) Advice to travelers on customs procedure;
nonexamination of registered baggage in transit ; '
combined and "en route" customs examination of
hand baggage; and the general simplification of:
customs formalities.
(8) The elimination of charges for medical ex- '•
aminations; the simplification of health examina-
tions ; and the recognition of the standard inocula-
tion and vaccination certificates.
As a final recommendation the meeting sug-
gested that the Economic and Social Council
1202
Deparfment of State Bulletim
should consider, after a suitable intei'val, the de-
sirability of convoking a further meetinr;; of ex-
perts to review the position which had then been
reached and if possible to make recommendations
which might lead to further progress. The meet-
ing expressed the hope that in the event that such
a further meeting be held, a larger number of gov-
ernments might find it possible to be represented.
Consistent with the purposes of the meeting of
experts at Geneva, the Department of State has
recently initiated the practice of giving nonimmi-
grant visas a validity of two years for nationals
of governments which give American citizens the
same or better treatment, and with which govern-
ments agreements have been concluded. (For ex-
ample, the agreement with Sweden came into
effect as of June 1, 1947.) This, it is believed, will
go far to facilitate the movement of nonimmigi-ant
ACTIVITIES AND DEVBLOPMENTS
passenger traffic, since such visas will be valid for
any number of entries into the United States
within the validity of the visa.
"With respect to the matter of reducing the num-
ber of papers and documents necessary for travel,
the Department of State has recently adopted a
new simplified and streamlined form, post-card
size, known as "nonimmigrant form 257." This
consolidates into one small document the alien-
registration certificate and the nonimmigration-
visa application.
The Visa Division of the Department of State
also has under active consideration the matter of
simplifying the procedure for renewing the
validity of nonimmigration visas, which, when put
into effect, should be of considerable assistance in
connection with efforts to expedite and facilitate
travel.
Fifth International Hydrographic Conference
ARTICLE BY REAR ADMIRAL ROBERT O. GLOVER AND REAR ADMIRAL LEO O. COLBERT
The Fifth International Hydrographic Con-
ference, which was held at Monte Carlo, Monaco,
from April 22 to May 5, 1947, was part of a con-
tinuing effort to coordinate the work of national
hydrographic offices and promote the facility and
safety of navigation in all the seas of the world.
Adequate hydrographic surveys, accurate and up-
to-date charts, comprehensive descriptions of
coasts and ports, the study of pliysical phenomena
affecting navigation, the improvement of hydro-
graphic survey methods, and the development of
navigational methods are all responsibilities of
the national hydrogi-aphic offices. These services
must be supplemented from day to day by a
prompt and reliable system of navigational warn-
ings issued as radio broadcasts or as printed
Notices to Manners. While each maritime country
may readily survey and publish descriptions of its
own coastal waters, it is dependent upon other
countries for the basic data used in compiling its
charts and publications for foreign coasts ; and all
countries have a comminiity interest in the high
seas and international waters.
The necessity for collaboration in the inter-
national phases of this work has long been recog-
nized, but it was not until 1919 that the basis for
a permanent organization was formulated by the
June 22, ?947
First International Hydrographic Conference,
meeting at London and attended by delegates from
24 nations including the United States. As a
result of this Conference, the International
Hydrographic Bureau was established in Monaco
in 1921, with a staff adequate to its prescribed
liaison and technical duties. At intervals of about
five years since its organization, the work of the
Bureau has been reviewed by international hydro-
graphic conferences and general directives cover-
ing future work have been agreed upon.
The Fifth Conference, which was tlie first since
1937, was attended by delegates from 16 of its
member states: Argentina, Brazil, China, Den-
mark, Egypt, France, Greece, Monaco, Norway,
Poland, Portugal, Siam, Spain, Sweden, the
United Kingdom, and the United States. Uru-
guay was the only member not represented. There
were also in attendance representatives of seven
nonmember states: Chile, Germany (Allied su-
pervisor of the German Hydrographic Institute) ,
Italy, Mexico, the Netherlands, Turkey, and
Yugoslavia. The first two plenary sessions were
devoted particularly to the interests of the non-
member states, and the representatives of these
states were present at many of the committee
meetings. Tlie Conference was also attended by
1203
AaiVlTIES AND DEVELOPMENTS
observers from several international organiza-
tions. The agenda for the Conference included
the disjiosition of a number of accumulated tech-
nical proposals submitted by the member states.
The participation of the United States in this
Conference was conducted, under the guidance of
the Department of State, by the tvro principal
hydrographic establislmients of this Government :
the Hydrographic Office of the Navy Department,
which prepares and publishes nautical charts and
navigational texts for international and foreign
waters; and the Coast and Geodetic Survey of the
Department of Commerce, which prepares and
issues similar publications for United States
waters. The United States Delegation to the Con-
ference was announced in the Bulixtix of March
30. p. 575.
Early in the meeting special committees were
formed to consider the following phases of work :
statutes, eligibility, finance, charts, nautical docu-
ments, tides, and work of the Bureau. On the
agenda of the Conference were a large number of
technical proposals accumulated during a 10-year
period. These proposals were discussed in com-
mittees, and specifications were adopted that will
promote the accuracy of nautical charts and their
utility to the navigators of all maritime countries.
New electronic surveying techniques have brought
national triangulation systems into direct contact
and necessitated measures to obtain increased ac-
curacy in the fixing of geodetic positions control-
ling hydrographic surveying and charting. Of
some general interest was a resolution designed to
promote uniformity in tlie liandling of geogi'aphic
names on the nautical charts of all countries.
The statutes of the International Hydrogi-apliic
Bureau were examined in detail but changed in
only minor respects. Future relations between the
Bureau and related maritime activities under the
United Nations organizations were covered by the
following resolution :
"The International Hydrographic Bureau is an
organization founded in 1921 for the benefit of
Hydrography and Navigation. Its objects and
powers are laid down in Articles 6 to 17 of the
Statutes which have been approved by the Govern-
ments of the States Members. "Within these ap-
proved objects and powere, the International Hy-
drographic Bureau looks forward to a coordina-
tion of its activities with such maritime activities
of the United Nations as may develop for the fur-
therance of international effort in the maritime
field."
The details of the work of the various commit-
tees and a verbatim report of the plenary sessions
will be duly published in the printed "Keport of
the Proceedings of the Fifth International Hydro-
graphic Conference" and distributed to member
states by the International Hydrographic Bureau.
The formal recommendations of the Conference
were in all cases consistent with the position of the
United States. Tlie technical recommendations,
which constituted the bulk of the agenda, are not
binding upon the member states, but experience
has shown that they will be put into practice in
nearly all instances and thereby preserve and ex-
tend a high degree of uniformity in the nautical
charts and books that must, in many instances,
serve the mariners of all nations.
The Fifth International Hydrographic Confer-
ence refreshed and strengthened the ties that exist
among the personnel of the hydrogi-aphic institu-
tions of all maritime nations. From contacts at
the committee sessions and from many intimate
discussions at other hours, they have become better
acquainted with the peculiar problems of indi-
vidual institutions and are in a better position to
make an intelligent exchange of technical data and
nautical charts and publications. This reacts to
the benefit of the United States, because the docu-
mentation furnished to foreign-going navigators
of naval and merchant vessels depends for its
validity upon the data received from the foreign
hydi'ographic offices.
The International Hydrographic Bureau has
now accumulated a comprehensive reservoir of
technical data that is peculiarly useful to newly
formed hydrographic institutions. Siam, for ex-
ample, credits the Bureau for continuous guidance
during the most difficult period when it was de-
veloping its national hydrographic surveying es-
tablishment. As a direct result new surveys of the
Siamese coast contribute to the safety of United
States shipping in Siamese watere. It is expected
that other minor maritime countries, including
those on this Hemisphere, such as Colombia, Ven-
ezuela, and Mexico, when they undertake their
own hydrographic work, may be similarly aided
by the excellent technical pattern provided by the
Bureau.
1204
Department of State Bulletin
International Red Cross Committee Meeting
ARTICLE BY ALBERT E. CLATTENBURG, JR.
On September 5, 1945, the International Red
Ci'oss Committee at Geneva invited tlie Govern-
ments of the United States, Great Britain, the So-
viet Union, China, and France to send to Geneva
technical experts who might informally discuss
with the Committee proposals for the revision of
international conventions relating to the treatment
of enemy prisoners of war and civilian internees.
The Committee suggested that the meeting be held
soon "so that the participating speakers may
neither have lost sight of their war-time activities
nor wholly be absorbed by other official duties." If
the meeting was accepted by the governments first
invited, the intention was stated to invite also the
British Dominions, Belgium, Brazil, Czechoslo-
vakia, the Netherlands, Norway, Poland, and
Yugoslavia.
On February 5, 1946, the Secretary of State ac-
cepted on behalf of the United States Government
the invitation of the International Red Cross. Ac-
ceptances were also received from the majority of
the other governments named above. The meet-
ing of expei'ts was originally set for October 1946.
Later developments, however, forced its succes-
sive postponement until the date finally agreed
upon, April 14-26, 1947.
In order to make proper pi'ovision for Ameri-
can participation in the meeting, the Interdepart-
mental Prisoners of War Committee was estab-
lished early in 1946, on which were placed repre-
sentatives of the State, War, Navy, and Justice De-
partments. A representative of the American Red
Cross was detailed as adviser to tlie Committee.
Representatives of the Post Office Department
participated in several of its meetings. The work
of the Committee resulted in agi'eed recommenda-
tions for the modification of tlie Geneva prisoners
of war convention and the Red Cross convention
and for the adaptation of the prisoners of war con-
vention to the treatment of civilian internees. It
also considered the revision of the tenth Hague
convention, dealing with hospital ships and var-
ious other technical problems which were likely to
be discussed at Geneva.
On March 26, 1947, the following persons, all
of whom had served on the Prisoners of War
Committee, were designated as the members of
the American Delegation to the meeting of govern-
ment experts called under the auspices of the Inter-
national Red Cross :
Chairman
Albert E. Clattenburg, Jr., Chief of the Special Projects
Division, Department of State
Delegates
Brig. Gen. B. M. Bryan, Provost Marshal General, U. S.
Army
Col. R. McDonald Gray, Personnel and Administration
Division, War Department General Staff
Ahvyn V. Freeman, Assistant Legal Adviser, Department
of State
Eldred D. Kuppinger, American Consul. London
Observers
Col. J. v. Dillon, Provost Marshal, U. S. Army Air
Forces
Harold W. Starr, Assistant General Counsel, American
Red Cross
"Wlien the meeting opened at Geneva on April 14,
1947, there were present representatives of 14
nations, namely: Australia, Belgium, Brazil,
Canada, China, Czechoslovakia, France, Great
Britain, India, the Netherlands, New Zealand,
Norway, the Union of Soutli Africa, and the
United States of America. It was announced that
the Greek Delegation would not arrive, on account
of an airplane accident which had destroyed its
means of transportation. The Polish Delegation
was expected that afternoon but did not arrive
until later in the week, owing to transportation
difficulties. Representatives of the Soviet Union
and Yugoslavia did not attend the meeting.
Judge Max Huber, the Honorary President of the
International Red Cross, welcomed the delegates
in a speech outlining the necessity for the meeting
and the hope of the International Red Cross that
the problems of regulating the conduct of bellig-
erents toward the individual victims of war might
be met promptly and definitely.
June 22, 1947
J 205
ACTIVITIES AND DEVELOPMENTS
The delegates accepted the plan of conducting
the conference and the agenda prepared by the
International Bed Cross Committee but insisted
that the Committee provide a chairman for the
plenary sessions of the meeting; with some reluc-
tance, because he had hoped to participate in the
discussions, the Committee selected Judge Huber
to be the chairman of the plenary sessions of the
meeting and thus the president of the conference.
Problems of organization having been met in
the morning session on the first day, the meeting
was divided in the afternoon into three technical
committees to consider respectively (1) the treat-
ment of sick and wounded and the establishments
devoted to their cai'e; (2) the treatment of pris-
oners of war ; and (3) the treatment of civilians.
The technical committees forthwith selected
their presiding officers and proceeded to work, well
aware that they faced a colossal task if they were
to cover the ground assigned to them during the
short space of time allotted to the meeting. The
scope of the effort of the technical committees is
indicated by the following:
Committee I considered piecemeal each of the
39 articles included in the Geneva Ked Cross con-
vention of July 13, 1929, all the articles of the tenth
Hague convention relating to hosj^ital ships, and
numerous draft conventions or amiexes bearing
on the treatment of sick and wounded, both mili-
tary and civilian, and on the treatment of person-
nel, equiimient, and installations devoted to their
care. It recommended numerous changes neces-
sary for the successful application of such pro-
visions to circumstances of modern warfare.
Committee II considered piecemeal each of
the 96 articles included in the Geneva prisoners
of war convention of July 13, 1929, as well as a
number of new suggested articles. It recom-
mended extensive changes and rewordings de-
signed to make the convention easier to apply
uniformly, less susceptible of different interpreta-
tions, and more effective in protection of the
prisoners.
Committee III wrote an entirely new draft
convention on the protection of civilians, both
enemy civilians in belligerent territory and civil-
ians in occupied territory, comprising 40 principal
articles, 4 annexes with a total of 92 articles, and
4 resolutions regarding additional provisions to
be developed.
1206
In arriving at the foregoing results, it was neces-
sary for some of the committees to carry on their
work late into the night. The amount of gromid
covered was, however, the occasion of a consider-
able sense of accomplishment on the part of the
delegates and of compliments from membere of
the International Red Cross Committee. The
relationships among the delegates were extremely
pleasant and the degree of agreement achieved on
most of the points discussed was remarkable.
Three principal documentary contributions to
tho success of the meeting were (1) the complete
documentation prepared by the International Red
Cross upon the basis of its wartime experience and
its exchange of views the previous summer with
delegations from national Red Cross societies of
the Allied nations; (2) the complete projects for
the revision of the prisoners of war and Red Cross
conventions and for the adaptation of the former
for the protection of civilian internees, brought to
the meeting by the American Delegation; (3) the
complete project for the protection of civilians in
occupied tei-ritory, brought to the meeting by the
French Delegation.
Aside from the contributions mentioned, numer-
ous delegates had attended the Red Cross meeting
of the preceding summer and were thoroughly
familiar with the arguments, pro and con, on
numerous contentious points. They were fre-
quently able to save the delegates from once again
covering well-trodden fields. In particular, the
Delegations from the Netherlands and Norway
brought specific recommendations with reference
to difficult points that were of special interest to
them.
The degree of agreement on numerous points,
including some that had been expected to be con-
tentious, was remarkable. In tabulating the
achievements of the meeting, the American Dele-
gation has compiled a list of 12 important points
which were accepted, nearly all of them without
any extensive disagreement. On the other hand,
there proved to be a few important points upon
which complete agreement was not possible.
These points were as follows: (1) the definition of
those partisans entitled to protection as prisoners
of war; (2) the adaptation of provisions affecting
maritime warfare adequately to meet modei'n con-
ditions ; (3) the character and identity of the inter- I
national agency responsible for supervision of
Department of State Bulletin
execution of the conventions, having in mind : (a)
the possibility that a protecting power may not
be avaihible, (b) the unlikeliliood that any United
Nations agency would be acceptable to the dis-
sident belligerent in a future conflict, and (c) the
reputed unacceptability of the International Ked
Cross Committee to certain governments.
Commencing with the afternoon of Thursday,
April 2-1, there were held the four closing plenary
sessions of the meeting. The first three of these
meetings were devoted to discussions of and ap-
proval of the reports prepared by the technical
committees. The fourth and final session was de-
voted to subjects of a more general nature. Dis-
cussion was held on the question of the possible
amalgamation of all the conventions relating to
the victims of warfare, on the possibility of calling
a diplomatic conference to consider formal adop-
tion of draft treaties before public interest abates
and ratification becomes difficult to achieve, and
the desirability of having the conventions adopted
in at least two languages as official versions to
facilitate translation. As a result of initiative by
the Polish and Brazilian Delegations, an expres-
sion of the personal hopes of the delegates that
further war could be avoided was unanimously
adopted in phraseology devised by the British
Delegation. The meeting then closed with warm
words of praise for the generous and efficient
hospitality of the International Ked Cross Com-
mittee and for the fine spirit of cooperation and
devotion to the interests of humanity displayed by
the delegates.
The United States Delegation returned to Wash-
ington on May 20 and since that time has been oc-
ACTIVITieS AND DSVELOPMENTS
cupied, so far as current duties permit, in putting
the finishing touches on its report. The delegates
expect to recommend the reconstitution of the In-
terdepartmental Prisoners of War Committee on
a broader basis to consider in detail the results of
the Geneva meeting so that this Government will
be adequately prepared to further the prompt
formulation of, and shortly thereafter to adopt,
new conventions which will adequately set forth
the rights and obligations of individuals, whether
civilian or military, if war again plagues man-
kind. As presently scheduled, the next interna-
tional meeting to consider such problems will be
the Red Cross meeting at Stockholm in August
1948, which would be followed somewhat later by
a formal diplomatic conference. In common with
a majority of their fellow delegates, the United
States Delegation felt that this schedule is too
leisurely and will recommend that steps be taken
to advance the dates of the meetings as much as
possible. It is recalled that the Geneva conven-
tions were not signed until 11 years after the
armistice of November 11, 1918; that by that time
many of the administrative experts familiar with
the operation of such conventions were unavail-
able for consultation; and that the question of
treatment of civilians was deferred even then as
not being too pressing and was to be considered
formally only in 1940, leaving civilians of all sorts
in belligerent and occupied territory without any
formal international legal protection during the
recent holocaust. Modern conditio ns have created
such wide gaps in international law on these sub-
jects that all the delegates to the Geneva meeting
were convinced of the urgency of inamediate
remedial action.
June 22, 1947
1207
Second Meeting of the U.N. Preparatory Committee for the
International Conference on Trade and Employment
REPORT TO THE OFFICE OF PUBLIC AFFAIRS, DEPARTMENT OF STATE
Geneva, June S, 1947. — Progress is being made
in Geneva both in the drafting of the ITO charter
and in the tariff negotiations.
Procedure on ITO Charter
To facilitate the> charter drafting, the Prepara-
tory Committee of 17 nations has worked out a
timetable for consideration of the charter and
has established two commissions which meet
simultaneously working on different chapters of
the charter. Commission A deals with chap-
ter IV, which covers problems of economic devel-
opment and investment, and chapter V on general
commercial policy. Commission B deals with
chapter VI on restrictive business practices and
chapter VII on intergovermnental commodity ar-
rangements.
The present schedule calls for completion of dis-
cussions on chapters IV through VII by mid-
July. Chapters I, II, and VIII on purposes, mem-
bership, and organization are scheduled for later
consideration.
After full discussion in the two commissions,
articles on which there is no controversy are ap-
proved. If any issues remain outstanding, a small
subcommittee or subcommittees may be appointed
by the chairman of Commission A or B, as the case
may be, to deal with the issues developed by the
discussion. Such committees ordinarily consist
of four or five delegates, who repi'esent the differ-
ing viewpoints expressed. The subcommittee's
job is to reconcile the differences of views which
have been presented in the Commission A or B
sessions and to prepare a draft text which they be-
lieve might be unanimously accepted by the Pre-
paratory Committee.
Inevitably the discussion reflects the various na-
tional problems that confront the countries repre-
sented. For example, those nations which are not
yet highly developed industrially are especially
concerned with the ways and means by which they
can develop more domestic industry. The United
States has been concerned that the charter provide
adequate opportunities for expanding interna-
tional trade and investment and safeguarding
1?08
both from hampering restrictions. The U.S. has
consistently pointed out, moreover, that the aims
of the underdeveloped and the highly developed
nations are complementary.
Draft General Agreement on Tariffs and Trade
In the first session of the Preparatory Com-
mittee in London during October and November
1946, a draft of a general agreement on tariffs
and trade was drawn up. This draft agreement
reproduces many provisions from the London
draft of the ITO charter. When a final draft
on these jirovisions is agreed on by the Prepara-
toiy Committee, they will become part of the
general agreement on tariffs and trade. The pur-
pose of the agreement, which would be signed by
the countries involved in the trade negotiations,
is to make effective among themselves such pro-
visions of the draft ITO charter as are applicable
at this stage. Further, the draft agreement states
that the signing of this agreement, prior to the
world trade conference, "will constitute concrete
achievement capable of generalization to all coun-
tries on equitable terms".
At present the draft general agreement includes
the following ITO charter articles : article 14 on
general most-favored-nation treatment, article 15
on national treatment of internal taxation and
regulation, article 16 on freedom of transit, article
17 on antidumping and countervailing duties,
article 18 on tariff valuation, article 19 on customs
formalities, article 21 on publications and admin-
istration of trade regulations, article 25 on general
elimination of quantitative restrictions, article 26
on restrictions to safeguard the balance of pay-
ments article 27 on nondiscriminatory administra-
tion of quantitative restrictions, article 28 on ex-
ceptions to the rule of nondiscrimination, article
29 on exchange arrangements, article 30 on general
undertaking regarding subsidies, article 31 on
nondiscriminatory administration of state-trading
enterprises, article 4 on maintenance of domestic
employment, article 13 on governmental assistance
to economic development, article 34 on emergency
action on imports of particular products, article 35
Department of State Bulletin
on consultation-nullification or impairment, article
37 on general exceptions, article 38 on territorial
ai^plication, frontier traffic, customs unions.
The draft general agreement on tariffs and
trade presently provides that the schedules of con-
cessions on particular products arrived at in the
trade negotiations at Geneva be annexed to this
agreement and become an integi'al part of it.
Each party to the agreement will accord to the
commerce of the other parties to the agreement
the treatment which is provided for in the trade
schedules. As a protection for these concessions,
each party to the agreement is required not to alter
the general principles applicable in its territory
for determining dutiable value of incoming goods
and for converting currencies so that the value of
the concessions arrived at would not be impaired.
The draft agreement on trade and tariffs also
provides for setting up an interim trade commit-
tee on which each party to the agreement will have
one representative and one vote, to be responsible
for implementing the agreement and for dealing
with any disputes arising out of the interpreta-
tion or operation of this agreement. When the
ITO has been established and is ready to function,
the committee would be dissolved and its functions
and assets turned over to the ITO.
Each government accepting the agreement, and
so informing the Secretary-General of the United
Nations, will be free to withdraw from the agree-
ment after three years by notifying the Secretary-
General, and the withdrawal would take effect six
months later.
The countries which accept this agreement
undertake to be guided in their international
economic relations by the purposes of the ITO,
which in essence are to promote national and
international action which will exjiand the pro-
duction, exchange, and consumption of goods,
achieve higher standards of living, reduce tariffs
and other trade barriers and eliminate discrimina-
tory treatment in international commerce, encour-
age and assist general economic development, and
facilitate solution of problems in the field of inter-
national trade, employment, and economic develop-
ments througli consultation and collaboration.
The American Delegation is giving constant and
careful attention to American views and comment
on the draft charter that emerged from the Lon-
don meeting. These views have been expressed
through the informal hearings on the charter held
ACTIVITIES AND DEVELOPMENTS
in the United States in February and March,
through statements made in the hearings on the
charter held by the Senate Finance Committee
and through statements and briefs presented by
organizations and individuals. The United States
Delegation has presented to the Preparatory
Committee amendments to the charter in the
light of these comments. Other nations, too, are
presenting amendments on many articles in the
charter. All of these amendments are being
thoroughly discussed in the commissions set up by
the Preparatory Committee. Where many points
of view are expressed, various of them in conflict
with each other, a certain degree of compromise is
required in developing a text of the charter which
can be signed by the countries who are members
of the Preparatory Committee for submission to
the world trade conference which the United Na-
tions will call later this year.
Trade Negotiations
By the end of May, 93 different trade negotia-
tions had been opened and 9 additional negotia-
tions were planned. The trade talks represent a
monumental task. Many meetings have been pro-
ceeding between delegations of various countries,
following the opening of negotiations.
When negotiations are opened, the two countries
involved, having previously exchanged their re-
quests on tariff and preference reductions and on
elimination of other trade restrictions, proceed to
exchange the offers they are prepared to make on
the requests they have received. The next step is
for each country to study the offers to determine
how closely these offers meet their requests. In
many cases where there is a wide gap between the
offers and the requests, the two countries meet to
discuss how they can proceed with negotiations.
In some instances where the offer list is totally
unsatisfactory in the light of the requests that are
made, the negotiators may say they cannot proceed
until a new offer list is presented.
In other instances, the requests and offers are
close enough together so that discussions can pro-
ceed on the items that are listed.
Negotiations between the United States and spe-
cific countries are presently in various stages. In
some instances the United States request list covers
a very large number of items so that negotiations
with some countries will take longer than in the
case of others.
June 22, 1947
1209
THE RECORD OF THE WEEK
Common Objectives and Ideals Manifested in U.S.-Canadian Relations
ADDRESS BY THE PRESIDENT '
Mr. Prime Minister, Honorable Members of the
Senate, and Members of the House of Com-
mons OF Canada :
This is my first visit to Canada as President of
the United States, and I am happy that it affords
me the opportunity to address this meeting of the
membei's of both houses of the Canadian Parlia-
ment. Here is a body wliich exemplifies the self-
government and freedom of the nations of the
great British Commonwealth. The histoi'y of the
Commonwealth proves that it is possible for many
nations to work and live in harmony for the com-
mon good.
I wish to acknowledge the many courtesies ex-
tended to me on this visit by the Governor General,
Viscount Alexander, who paid me the honor of a
visit in Washington a few months ago. His career
as a soldier and as a statesman eminently qualifies
him to follow his illustrious predecessors.
For the courtesy of appearing before you, as for
other courtesies, I am sure I am largely indebted
to my good friend. Prime Minister Mackenzie
King. I have come to value and cherish his friend-
ship and statesmanshii^. As our two nations have
worked together in solving the difficult problems
of the postwar period, I have developed greater
and greater respect for his wisdom.
Americans who come to know Canada infor-
mally, such as our tourists, as well as those whose
approach is more academic, learn that Canada is a
broad land — broad in mind and in spirit as well
as in physical expanse. They find that the com-
position of your population and the evolution of
'Delivered before the Canadian Parliament at Ottawa
on June 11, 1947, and released to the press by the White
House on the same date. The President was the guest of
the Canadian Government from June 9 to June 12.
your political institutions hold a lesson for the
other nations of the earth. Canada has achieved
internal unity and material strength, and has
grown in stature in the world community,; by
solving problems that might have liopelessly
divided and weakened a less gifted people.
Canada's eminent position today is a tribute
to the patience, tolerance, and strength of char-
acter of her people, of both French and British
strains. For Canada is enriched by the heritage
of France as well as of Britain, and Quebec has
imparted the vitality and spirit of France itself
to Canada. Canada's notable achievement of
national unity and progress through accommoda-
tion, moderation, and forbearance can be studied
with profit by her sister nations.
Much the same qualities have been employed,
with like success, in your relations with the United
States. Perhaps I should say "your foreign rela-
tions with the United States." But the word
foreign seems strangely out of place. Canada and
the United States have reached the point where
we no longer think of eacli other as "foreign"
countries. We think of each other as friends, as
peaceful and cooperative neighbors on a spacious
and fruitful continent.
We must go back a long way, nearly a century
and a half, to find a time when we were not on
good terms. In the War of 1812 there was fighting
across our frontier. But permanent good came of
that brief campaign. It shocked Canadians and
Americans into a realization that continued an-
tagonism would be costly and perilous. The first
result of that realization was the Rush-Bagot
agreement in 1817, which embodied a spirit and
an attitude that have permeated our relations to
this day. This agreement originally was intended
to limit and to regulate the naval vessels of both
1210
Department of State Bulletin
countries on the Great Lakes. It has become one
of the workl's most effective disarmament agree-
ments and is the basis for our much-hailed un-
fortified frontier.
I speak of that period of history to make the
point that the friendship that has characterized
Canadian-American relations for many years did
not develop spontaneously. The example of ac-
cord provided by our two countries did not come
about merely through the happy circumstance of
geography. It is compounded of one part prox-
imity and nine parts good will and common sense.
We have had a number of problems, but they
have all been settled by adjustment, by com-
promise, and by negotiations inspired by a spirit
of mutual respect and a desire for justice on both
sides. This is the peaceful way, the sensible way,
and the fair way to settle problems, whether be-
tween two nations that are close neighbors or
among many nations widely separated.
This way is open to all. We in Canada and the
United States are justifiably proud of our joint
record, but we claim no monopoly on the formula.
Canada and the United States will gladly share
the formula, which rejects distrust and suspicion
in favor of common sense, mutual respect, and
equal justice, with their fellow members of the
United Nations. One of the most effective contri-
butions which our two countries can make to the
cause of the United Nations is the patient and dili-
gent effort to apply on a global scale the principles
and practices which we have tested with success
on this continent.
Relations between Canada and the United States
have emphasized the spirit of cooperation rather
than the letter of protocol. The Rush-Bagot
agreement was stated in less than 150 words. From
time to time it has been revised by mutual agi-ee-
ment to meet changing conditions. It was
amended as recently as last December.
The last war brought our countries into even
closer collaboration. The Ogdensburg agreement
of 1940 provided for the creation of the F'ermanent
Joint Board on Defense. It was followed by the
Hyde Park agreement of 1941, which enabled us
to coordinate our economic resources with in-
creased efficiency. Common interests, particularly
after Pearl Harbor, required the creation of several
joint agencies to coordinate our efforts in special
fields. When victory ended the necessity for these
THB RECORD OF THE WEEK
agencies, they were quietly disbanded with a mini-
mum disturbance of the national economies of the
two countries.
The Permanent Joint Board on Defense will
continue to function. I wish to emphasize, in
addition to the word ipermanent, the other two
parts of the title. The Board is joint, being com-
posed of representatives of each country. Canada
and the United States participate on the basis of
equality, and the sovereignty of each is carefully
respected. This was true during the gravest days
of the war and it will continue to be true, in keep-
ing with the nature of all our joint undertakings.
The Board was created, and will continue to
exist, for the sole purpose of assuring the most
effective defense of North America. The Board,
as you know, has no executive powers and can
only make i-ecommendations for action. The
record of the Board provides another example of
the truly cooperative spirit that prevails between
the two countries.
The spirit of common purpose and the impres-
sive strength which we marshalled for action on
all fronts are the surest safeguard of continental
security in the future.
The people of the United States fully appreciate
the magnificent contribution in men and resources
that Canada made to the Allied war effort.
United States soldiers, sailors, and airmen in the
heat of battle knew their Canadian comrades as
valiant and daring warriors. We look back with
pride on our association as stanch allies in two
wars.
Today our two nations are called upon to make
great contributions to world rehabilitation. This
task requires broad vision and constant effort.
I am confident that we can overcome the dif-
ficulties involved, as we overcame the greater dif-
ficulties of the war. The national genius of our
peoples finds its most satisfying expression in the
creation of new values in peace.
The record proves that in peaceful commerce the
combined efforts of our countries can produce out-
standing results. Our trade with each other is far
greater than that of any other two nations on
earth.
Last year the flow of trade in both directions
across the border reached the record peacetime
total of two and a quarter billion dollars. We im-
ported from Canada more than twice the value of
goods we received from the United Kingdom,
June 22, 7947
1211
THB RECORD Of THE WEEK
France, China, and Kussia combined. United
States piu'chases from Canada were about six times
our purchases from Great Britain, nearly ten times
those from China, and eleven times those from
France. We sold to Canada nearly as much as
we sold to Britain and France together.
Gratifying as the volume of our trade now is,
it is capable of even further expansion to our
mutual benefit. Some of our greatest assets are
still to be developed to the maximum. I am think-
ing of one particularly that holds tremendous pos-
sibilities, the magnificent St. Lawrence-Great
Lakes System, which we share and which we must
develop together.
The St. Lawrence project stirs the imagination
of men long accustomed to majestic distances and
epic undertakings. The proposal for taking elec-
tric power from the river and bringing ocean
shipping 2,400 miles inland, to tap the fertile heart
of our continent, is economically sound and stra-
tegically important.
When this program is carried out, the water-
way that is part of our boundary will more than
ever unite our two countries. It will stimulate our
economies to new growth and will speed the flow
of trade.
There have been times when shortsighted tariff
policies on both sides threatened to raise almost
insurmountable barriers. But the need to ex-
change goods was so imperative that trade flour-
ished despite artificial obstacles. The reciprocal
trade agreements of 1936 and 1939 made possible
a sensible reduction of tariff rates and paved the
way for our present phenomenal trade.
Something more than commercial agreements,
however, is required to explain why Canada and
the United States exchange more than two billion
dollars' worth of goods a year. Ambassador
Atherton has aptly given the reason as not "free
trade," but "the trade of free men". That record
flow of goods and the high standard of living it
indicates, on both sides of the border, provide a
practical demonstration of the benefits of the
democratic way of life and a free economy.
The benefits of our democratic governments and
free economies operating side by side have spread
beyond our countries to the advantage of the whole
world. Both nations expanded their productivity
enormously during the war and both escaped the
physical damage that afflicted other countries. As
a result, Canada and the United States emerged
1212
from the war as the only major sources of the in-
dustrial products and the food upon which much
of the world depends for survival.
Canada has responded as nobly to the challenge
of peace as she did to that of the war. Your wheat
has fed millions who otherwise would have
starved. Your loan has strengthened Britain in
her valiant battle for recovery.
The United States is particularly gratified to
find Canada at our side in the effort to develop the
International Trade Organization. We attach
great importance to this undertaking, because we
believe it will provide the key to the welfare and
prosperity of the world in the years immediately
ahead.
In sponsoring the International Trade Organi-
zation, the United States, with the cooperation of
Canada and other countries, is making a deter-
mined effort to see that the inevitable adjustments
in woi-ld trade as a result of the war will result in
an expanding volume of business for all nations.
Our goal is a vast expansion of agriculture and
industry throughout the world, with freer access
to raw materials and markets for all nations, and
a wider distribution of the products of the earth's
fields and factories among all peoples. Our hope
is to multiply the fruitfulness of the earth and to
diffuse its benefits among all mankind.
At this critical point in history, we of the United
States are deeply conscious of our responsibilities
to the world. We know that in this trying period,
between a war that is over and a peace that is not
yet secure, the destitute and the oppressed of the
earth look chiefly to us for sustenance and support
until they can again face life with self-confidence
and self-reliance.
We are keenly aware that much depends upon
the internal strength, the economic stability, and
the moral stamina of the United States. We face
this challenge with determination and confidence.
Free men everywhere know that the purpose of
the United States is to restore the world to health
and to re-establish conditions in which the com-
mon people of the earth can work out their salva-
tion by their own efforts.
We seek a peaceful world, a prosperous world, a
free world, a world of good neighbors, living on
terms of equality and nnitual respect, as Canada
and the United States have lived for generations.
We intend to expend our energies and invest
our substance in promoting world recovery by
Department of State Bulletin
assisting those who are able and willing to make
their maximum contribution to the same cause.
We intend to support those who are determined
to govern themselves in their own way, and who
honor the right of others do likewise.
We intend to aid those who seek to live at peace
with their neighbors, without coercing or being
coerced, without intimidating or being intimi-
dated.
We intend to uphold those who respect the
dignity of the individual, who guarantee him
THE RECORD OF THE WEEK
equal treatment under law, and who allow him the
widest possible liberty to work out his own des-
tiny and achieve success to the limit of his
capacity.
We intend to cooperate actively and loyally with
all who honestly seek, as we do, to build a better
world in which mankind can live in peace and
prosperity.
We count Canada in the forefront of those who
share these objectives and ideals.
With such friends we face the future unafraid.
Position on a United States of Europe
LETTER FROM SECRETARY OF STATE TO CHAIRMAN OF SENATE COMMITTEE ON
FOREIGN RELATIONS
June 4, 1947.
Dear Senator Vandenberg : I refer to your let-
ter of March 24, 1947, acknowledged by the De-
partment on March 28 in regard to S. Con. Kes.
10 introduced by Senator Fulbright and Senator
Thomas of Utah. The Kesolution states that the
Congress favors the creation of a United States
of Europe within the framework of the United
Nations.
I assume that the Resolution has been deliberate-
ly phrased in general terms for the purpose of
endorsing a principle without raising numerous
important questions of detail.
I am deeply sympathetic towards the general
objective of the Resolution which is, as I under-
stand it, to encourage the peoples of Europe to
cooperate together more closely for their common
good and in particular to encourage them to co-
operate together to promote the economic recovery
of Europe as a whole.
Of course the United States wants a Europe
which is not divided against itself, a Europe which
is better than that it replaces. Only as we can in-
spire hope of that can we expect men to endure
what must be endured and make the great efforts
which must be made if wars are to be avoided and
civilization is to survive in Europe.
But we should make clear that it is not our pur-
pose to impose upon the peoples of Europe any
particular form of political or economic associ-
ation. The future organization of Europe must
be determined by the peoples of Europe.
While recognizing that it is for the peoples of
Europe to determine the kind of organized effort
which may be appropriate to facilitate the peace-
ful development of a free Europe, the United
States welcomes any initiative which may be taken
by the peoples of Europe within the framework of
the United Nations to ensure greater cooperation
among themselves to expedite the reconstruction
and restoration of the economy of Europe as a
whole, to improve living standards, to strengthen
the general security and to promote the general
welfare.
To avoid any misunderstanding as to our pur-
pose, I believe it desirable that some of the ideas
I have expressed here be embodied in the Resolu-
tion. PerhajJS the authors of the Resolution might
consider adding a preamble along these lines.
The Department has been informed by the Bu-
reau of the Budget that there is no objection to
the submission of this report.
Faithfully yours,
G. C Marshall
June 22, 1947
1213
Regret Expressed That Yalta Commitments Remain Unfulfilled in
Hungary, Rumania, and Bulgaria
STATEMENT BY THE PRESIDENT UPON RATIFICATION OF PEACE TREATIES
[Released to the press by the White House June 14]
At the time of ratification of the treaties estab-
lishing peace witli Hungary, Eumania, and Bul-
garia, I feel I must publicly express regret that the
goverimients of those countries not only have dis-
i-egarded the will of the majority of the people
but have resorted to measures of oppression against
them. Ever since the liberation of these countries
from the Nazi yoke and the commitments under-
taken by the three Allies at Yalta, I had hoped
that governments truly representative of the people
would be established there. Such governments do
not exist today in those three countries.
It is, however, in the interests of the Hungarian,
Rumanian, and Bulgarian jDeoples to terminate
the state of war which has existed betw^een their
governments and the United States for over five
years. The establishment of peace will mean that
all occupation forces (not including Soviet units
needed to maintain lines of communication to the
Soviet zone of occupation in Austria) will be with-
drawn from these countries and armistice Control
Commissions terminated.
New Era Anticipated for Italy
STATEMENT BY THE PRESIDENT UPON RATIFICATION OF PEACE TREATY
[Released to the press by the White House June 14]
With the ratification of the treaty of peace with
Italy we bring to a close an unhappy chapter in
Italian- American relations. At the same time we
mark the beginning of a new era for Italy to which
the Italian people can look with hope and con-
fidence. Certain of the terms of the treaty are
not in full accord with our desires. But the re-
establishment of peace does provide a foundation
for building anew a strong, free, and democratic
Italy. And within the framework of the United
Nations it should be possible to secure such changes
in the treaty clauses as may be required in the light
of future experience.
From the first days of the Allied liberation of
Italy we found the Italian people as eager as we
ourselves to destroy the tyrannies of Fascism and
Nazism which had despoiled their country and
destroyed their liberties. Marching by our side
against the common foe, the Italian armed forces
1214
and the Italian people contributed mightily to the
ultimate victory. This common sacrifice has
strengthened the deep and lasting friendship be-
tween our two peoples. More than this, Americans
have the satisfaction of standing at the side of
Italy while her people, through adversity, are re-
building with their own labors a new democracy
and restoring their lost freedoms. During these
most difficult years we have been able to do much
to help the Italians to help themselves.
In order that their victory, and ours, may be
preserved — in order that their freedoms and their
reborn democracy may live and grow as Italy
again takes her rightful place of honor and leader-
ship among the free nations of the world — Ameri-
cans will continue to stand by the side of their
Italian friends, to work with them in our com-
mon efforts to rebuild and to restore a free world
at peace.
Department of State Bulletin
Protest of Arrest of Hungarian Smallholders Party Leader
NOTE FROM U.S. REPRESENTATIVE ON ALLIED CONTROL COMMISSION FOR HUNGARY
TO SOVIET ACTING CHAIRMAN
[Beleased to the press June 11]
The United States Representative on the Allied
Control Commission for Hungary, Brig. Gen.
George H. Weems, was instructed to deliver the
following note to Lt. Gen. V. P. Sviridov, Soviet
Acting Chairman of the ACC. Copies of this note
were also furnished the Hungarian Government
through the Legation at Budapest and the British
and Soviet Governments through the Enibassies at
London and Moscow
On instructions from my Government, I ad-
dressed you two commmiications, on March 5 ^ and
March 17,^ regarding developments in Hungary,
including the arrest on February 25 by tlie Soviet
occupation forces of Bela Kovacs, a parliamentary
deputy of the majority Smallholders Party and a
former Secretary General of that party. On both
occasions I proposed the establishment of a com-
mission, composed of representatives of the three
powers on the Allied Control Commission, to in-
vestigate the situation ci'eated by that action and
by the large-scale apprehension, by the Hungarian
police, of other representatives of the majority
party on charges of complicity in a conspiracy
against the authority of the Hungarian state. My
Government considered and continues to consider
the effect of these actions as threatening the con-
tinuance of democratic processes in Hungary.
In reply you stated that the arrest of Kovacs
was the exclusive concern of the Soviet occupa-
tion forces because he was charged with crimes
against those forces. Hence, you contended, his
arrest could not be regarded "as an intervention
on the part of the Soviet occupation authorities in
the internal affairs of Hungary". You argued
further that a three-power investigation of the
arrests of other members of the Smallholders
Party by the Communist-controlled Ministry of
Interior would be an interference with the internal
June 22, 1947
74T563 — 17 5
affairs of Hungary and therefore was refused.
Thus, it appeared that to investigate the arrest of
alleged Smallholder Party members charged with
conspiracy against the state would interfere with
Hungarian affairs, while for the occupation forces
to arrest one of the most important alleged plot-
ters was not such interference by the simple proc-
ess of charging him with another offense.
It now develops, however, that his offense was
the same conspiracy which could not be investi-
gated by three powers but which has in fact been
investigated by one and which has led to a most
flagrant interference in Hungarian affairs. In-
formation relating to Hungarian political affairs,
alleged to have been elicited from Bela Kovacs
during his detention incommunicado by the So-
viet occupation forces, has been furnished by the
Soviet authorities to the Communist Deputy
Prime Minister of the Hungarian Government in
such circumstances as to force the resignation of
the Hungarian Prime Minister and other impor-
tant leaders of the majority Smallholders Party
and to bring about the reorganization of the Hun-
garian Goveriunent. The United States and
United Kingdom members of the Allied Control
Commission have been kept in ignorance of this
information in clear violation of paragraph 6(c)
of the statutes of the Allied Control Commission
which provides that the United States and United
Kingdom representatives on the Allied Control
Commission shall have the right "to receive cop-
ies of all communications, reports and other docu-
ments which may interest the governments of the
United States and United Kingdom". My Gov-
ernment has taken note that this action has re-
sulted in the realignment of political authority in
Hungary so that a minority which obtained 17 per-
cent of iDopular support in the last free election has
' Bulletin of Mar. 16, 1947, p. 495.
" Bulletin of Mar. 30, 1947, p. 583.
1215
THB RECORD OF THE WEEK
nullified the expressed will of the majority of the
Hungarian people, a situation which has appar-
ently been admitted by the leader of the Commu-
nist minority, Rakosi, who is reported to have
taken public satisfaction that his "iron-fisted"
party, "conscious of its aims", has thus been able
to take over control of Hungary.
My Government protests this unilateral action
in violation of the Yalta agreements and this So-
viet interference in Hungarian political affairs in
derogation of the continued exercise of democratic
rights in that country and of the freely expressed
will of the Hungarian people and again requests,
as a member of the Allied Control Commission,
the expeditious establishment of a three-power
commission to examine the situation as a matter
of urgency. Unless this or some equally effective
action to bring about adequate investigation is
agreed upon, my Government, conscious of its
obligations under the Yalta declaration, as a signa-
tory of the armistice with Hungary, and as a mem-
ber of the United Nations, will consider such
further action as may be appropriate in the
circumstances.
REPLY FROM SOVIET ACTINGICHAIRMAN TO U. S. NOTE ON HUNGARY
Translation of General Sviridov^s reply of June
H to General Weems' note of Jwne 11
Confirming receipt of your letter of 11 June this
year, I have honor to inform you that I cannot
agree with the evaluation of the political situation
in Hungary given in your letter. Your assertion
of some change in the political power in Hungary,
the nullification of the will of the majority of the
Hungarian people and also of establishment of
some kind of control over Hungary by the minority
appears to be unfounded fiction.
It is known to all that the govermnental crisis in
Hungary was caused by the refusal of former
Prime IMinister Ferenc Nagy to return to the
countrj' notwithstanding the suggestion of Hun-
garian Government and leadership of the inde-
pendent Smallholders Party, and his voluntary
resignation which followed later.
This crisis was solved through efforts of all
parties of coalition govermnent in strict conform-
ity with constitutional standards.
The new Hungarian Government headed by
Prime Minister Lajos Dinnyes retained the pre-
vious distribution of portfolios among the coali-
tion parties and remained basically the same as in
the previous body. Towards this government was
expressed the confidence of the overwhelming
majority of the Hungarian people, which fact is at-
tested by the declaration of national committee,
signed by President of the Republic and leaders
of all coalition parties, as well as unanimous de-
1216
cision of confidence and granting of authority to
the government by Hungarian Parliament.
All these facts have been widely publicized and
undoubtedly are known to you; therefore after
I had acquainted myself with your letter I could
not help but notice in it attempts, under the dis-
guise of defense of Hungarian democracy, to
render support to separate individuals who have
entangled themselves with conspirators, fled
abroad from their people.
As far as concerns your statement of violation
by me of paragraph 6 (c) of the statutes of the
Allied Control Commission, in connection with
turning over depositions in case of Bela Kovacs
to Hungarian Government, in conformity with
request of Ferenc Nagy, this statement is based
on a misunderstanding since these documents, as
I have already notified you in my letter of 9 June,
have no relation whatsoever to the activities of the
Allied Control Commission.
Based on the foregoing I decline j'our protest as
completely baseless since I camiot, from my point
of view, see any unilateral actions which violate
the Yalta Agreement ; and also consider as fiction
the statement of Soviet interference in Hungarian
political affairs.
Taking the above into consideration I cannot
agree with your proposal to establish a three-
power commission to investigate the situation in
Hungary, since I do not see any necessity for it
and consider that this would be a rude interference
in Hungarian internal affairs, which is not
permissible.
Oeparfmenf of %\aiQ Bulletin
Relations With Former Hungarian Prime Minister Nagy
EXCHANGE OF NOTES BETWEEN UNDER SECRETARY ACHESON AND THE PRIME MINISTER
[Released to the press June 10]
Under Secretary of State Dean Acheson on June
10 authorized the publication of his note, dated
March 3, 19Jt7, in reply to a message of greeting
sent to the Under Secretary hy Prime Minister
Nagy of Hungary under date of January 10, 19^7,
through his son, Fra7icis Nagy, Jr., who had ar-
rived in Washhigfon as attache of the Hungarian
Legation
March 3, lOlfl.
Mt Dear Mr. Prime Minister : I have re-
ceived your kind message of January 10, 1947,
which you sent to me through your son, Francis
Nagy, Jr., now a member of the staff of the Hun-
garian Legation in Washington. It is a sincere
pleasure to have tliis greeting from you.
In the months which have passed since your
visit to the United States in June 1946, 1 have con-
tinued to follow events in Hungary with interest.
I have noted with warm sympathy the will which
the Hungarian people have shown to develop free
and democratic institutions and their self-denying
efforts to rehabilitate their national economy on a
stable basis. These endeavors, I feel, have been
well-guided by your leadership and that of Presi-
dent Tildy, and I have no doubt that in this duty
you, in turn, have drawn strength and inspiration
from the perseverance of your people. I can as-
sure you that we here are giving close attention to
the imi^ortant problems affecting Hungary and, as
you know, we are currently exploring in coopera-
tion with the Hungarian Minister in Washington
various possible means of extending further ma-
terial asistance to your country.
In this period following upon the long and bitter
years of war, we have had to deal with many dif-
ficult problems — problems which bear vitally on
the welfare, happiness, and freedom of the peoples
of the world. It is unfortunately true that, in some
instances, the solutions which have been adopted
in connection with the peace settlements as the only
ones possible of agreement are not entirely satis-
factory. Nevertheless, a beginning, however im-
perfect, has been made, and I am sure you will
agree with me that we must now seek to consoli-
date the peace and to move ahead from this point
along the paths of cooperation and freedom. I
believe that progress and enduring peace for man-
kind will require not only our patience and under-
standing but also our steadfast support of the
ideals and practices of free men.
The good will which the American people feel
for the people of Hungary will not be diminished.
It will, I am confident, continue to flourish, not
alone because of the i^ast friendship of our peoples
but also because it will find new nurture in the
common undertakings of peace upon which we are
now engaged.
Sincerely yours.
Dean Acheson
Under Secretaiy of State
Budapest, January 10, 191^7.
Mr. Secretary: My son, Francis Nagy, jr., a
junior member of the foreign service, has been
assigned to the Hungarian Legation in Washing-
ton and is now departing to take up his duties and
at the same time to study at a University if that is
practicable. I am availing myself to this oppor-
tunity, Mr. Secretary, to send you a letter, mindful
of our unforgettable visit to Washington and of
your kind and understanding hospitality. Since
then the Hungarian people have had occasion to
enjoy the results of your understanding and sup-
port. The National Bank's gold reserve, with
which we created a solid basis for the stabilisation,
is at home and from time to time displaced Hungar-
ian property arrives to strengthen Hungarian eco-
nomic life which is still struggling with many
obstacles. Since then the Paris jDcace conference
has been concluded and determined the basic prin-
ciples of the peace treaty to be concluded with
Hungary. The peace treaty will be burdensome on
us but I place my trust in the Hungarian people's
desire to live and in their husbandry, and I believe
that they will be able to bear the burdens which
the peace treaties will impose on us. All our
June 22, 1947
1217
THE RECORD Of THE WEEK
efforts are devoted to the end that as soon as pos-
sible Hungary might become the home of a satis-
fied, free peoj^le and that it might contribute to
the progress of mankind.
I beg you Mr. Secretary not to permit the good
will you feel toward us and have given evidence
of to be diminished and to continue to honor with
your esteem these little peoples whose prime min-
ister, overburdened with many cares, greets you
with a grateful heart and with highest esteem.
Nagy Feeenc M. p.
Concern Over Violation of Civil
Liberties in Bulgaria
[Released to the press June 11]
The Yalta declaration on liberated Europe
clearly defined the responsibilities of the Union of
Soviet Socialist Republics, the United Kingdom,
and the United States to aid the peoples of the
former Axis satellite states to solve by democratic
means their pressing political and economic
problems. On various occasions the United States
Government has officially expressed its deep con-
cern with respect to political developments in Bul-
garia that have appeared to be in complete dis-
regard of both the spirit and the letter of the
Yalta accord.
On June 7 the Acting United States Political
Representative in Bulgaria sought in personal
conversation with the Bulgarian Prime Minister
a statement of the reasons for the lifting of the
parliamentary immunity from arrest of the Op-
position leader Nikola Petkov and his subsequent
apprehension by the Bulgarian security authori-
ties on the charge of conspiring with subversive
foreign and domestic elements to overthrow the
existing government.
As reported by the Acting Political Representa-
tive, the Prime Minister stated that intervention
by foreign countries in Nikola Petkov's behalf
would only arouse the suspicion that Petkov had
underground connections abroad and that Petkov
would be tried by the "sovereign coimtry of Bul-
garia and not in London or Washington".
This is not the first time the Bulgarian Prime
Minister, other spokesmen of the Bulgarian Gov-
ernment in the Bulgarian Parliament, the official
Bulgarian press, and even Bulgarian prosecutors,
in bringing charges of treason against other but
1218
lesser leaders in the struggle for the defense of
political rights in Bulgaria, have insinuated sub-
versive motives on the part of the United States
Government in the support that it has given to
the undertaking accepted by the Union of Soviet
Socialist Republics, the United Kingdom, and the
United States at Yalta to assure interim govern-
ments broadly representative of all democratic
elements in the ex-satellite states.
Mr. Petkov was a legally elected member of
the Bulgarian Parliament. He has been the head
of the Agrarian Party and a leader of the Oppo-
sition in the Bulgarian Parliament. His leader-
ship of the Bulgarian Opposition has evoked deep
sympathy in the United States because he has
openly fought for acceptance and perpetuation of
civil liberties in his own country — principles that
were agreed to at Yalta, that underlie the terms of
the armistice with Bulgaria, and that article II of
the peace treaty signed with Bulgaria was de-
signed to protect and assure. One of the founda-
tions upon which democratic parliamentary in-
stitutions rest is the recognition and acceptance
of a legal opposition. Mr. Petkov, who has fear-
lessly represented such an opposition, has now been
denied the privileges and immunities which attach
to that parliamentary position and has been ar-
bitrarily arrested by the organs of the govern-
mental authority which he has lawfully opposed.
Despite the Yalta agreement, the armistice
terms, and the provisions of the peace treaty as-
suring human freedoms in Bulgaria, the principal
Bulgarian Opposition leader is now charged with
treason. There can be no doubt that he will be
tried in Bulgaria, "not in Washington or London",
but it is just as certain that as he goes on trial in
his own country so will the present Bulgarian
regime be on trial in the minds of many Bul-
garians and certainly in the opinion of all free-
dom-supporting peoples outside Bulgaria.
Nationalization of industry
in Rumania
[Released to the press June 13}
The Rumanian Parliament has recently passed
two measures which provide the machinei-y for
stringent government supervision of the country's
industry for the next five years.
A bill (enacted April 5) granting sweeping
powers to a reorganized Ministry of Industry and
Department of State Bulletin
Commerce was followed by tlie enactment of a
so-called Industrial Offices Bill (May 24) author-
izing the establishment of governmental offices for
the close regulation of every phase of industry and
trade with the single exception (for the time
being) of petroleum.
The authorization for government control of
production, distribution, domestic and foreign
trade, prices, wages, profits, investments, and
credits is so far reaching that it may well result
in nationalization without compensation.
Consequently, the American Mission in Bu-
charest, prior to the passage of the Industrial
Offices Bill, made representations to the Rumanian
Government reserving all rights on behalf of
American interests in Rumania in enterprises
which might be adversely affected, stating that
prompt, adequate, and effective compensation will
be expected if American management is unable
to continue.
Dwight P. Griswold Assumes Duties as
Chief of American Mission for Aid to
Greece
[Released to the press June 13]
Dwight P. Griswold arrived in Washington late
on June 13 from Germany to assume his new post
as Chief of the American Mission for Aid to
Greece.
Mr. Griswold held conferences with Department
officials after being greeted at the airport by offi-
cials of the Department, including George
McGhee, Special Assistant to the Under Secretary
for Economic Affairs, and Loy Henderson, Di-
rector of the Office of Near Eastern and African
Affairs.
The new Greek Mission chief, nominated on
June 6 by President Truman and confirmed on
June 10 by the Senate, also began selection of the
members of his staff and reviewed preliminai-y
plans already made for the Mission.
In Germany, Mr. Griswold was Director of
Internal Affairs and Communications in the
American zone under General Clay. Governor
of Nebraska from 1940 to 194G, he is a Nebraska
banker and newspaper publisher and in World
War I was a captain in the 127th Field Artillery.
His home is Lincoln, Nebraska.
June 22, 1947
THE RECORD OF THE WBBK
Procedures for Filing Claims
in Yugoslavia
[Released to the press June 13]
The Yugoslav Embassy has informed the De-
partment of State of the enactment by the Federal
People's Republic of Yugoslavia of a statute which
provides as follows:
Holders of Yugoslav Government prewar in-
ternal-debt obligations payable in dinars and
originating prior to April 18, 1941, must submit
such securities to the Ministry of Finance of the
Federal People's Republic of Yugoslavia, Division
of Government Debts, at Belgrade, not later than
June 30, 1947, for conversion into new 30-year
three-percent govei-nment dinar bonds. (Cash
will be paid for amounts less than 500 dinars. ) In
accordance with a law of 1945, conversion is to be
made at the rate of one Federal People's Re-
public of Yugoslavia dinar to 10 prewar dinars.
Nonf unded claims of all kinds against the Yugo-
slav Government must also be registered by June
30, 1947, with the agencies where such claims
originated.
Securities not received by the Yugoslav Ministry
by June 30, 1947, will lose their value, and claims
not registered with the appropriate agencies on
or before that date will become void.
Each holder must deposit simultaneously all
of the securities held by him and must submit
with them a declaration enumerating, for each
loan issue, the number of securities deposited and
their present face value. The declaration must
also state (1) whether or not additional securities
will be deposited for the declarant's account by
some other named person or institution, and if
so, their class and present face value; (2) whether
the declarant is submitting a statement of non-
funded claims, and if so, against which agencies
and in what amounts such claims lie; and (3) in
the case of foreign holders of securities, the citizen-
ship of the declarant, and when and how he ac-
(juired possession of the securities involved. In
the case of declarations relative to nonfunded
debts, the declarant must give (1) his first and
last name and his address; (2) the basis of his
claim; (3) the proof supporting his claim; (4)
the day, month, and year on which the claim
originated; (5) the amount of the claim, in terms
of prewar dinars; and (6) a statement whether
he is submitting a declaration relative to any other
1219
THE RECORD OF THE WE£K
claim, and if so, the amount of such claim and
the name of the agency with which it is being filed.
Declarations relative to nonfunded claims must
be submitted separately from declarations per-
taining to government securities, and a special de-
cision with regard to the conversion (into current
dinars) of each nonfunded obligation will be
made.
Each declaration must be signed by the holder
or creditor, and in any case where the declarant
is not the owner he must state the owner's name
and address.
Holders of securities and creditors submitting
nonfunded claims must transmit their declara-
tions and securities or claims to the appropriate
office at Belgrade at their own expense and risk.
Yugoslav diplomatic representatives abroad have
not been authorized to act as transmitting agents.
The funded debts to which the law applies are
as follows :
1. Two-percent lottery loan — 1881
2. Lottery loan— 1888 (tobacco lots)
3. Four-percent bonds for settlement of the agrarian re-
form in Bosnia and Hercegovina — 1921
4. Seven-percent investment loan — 1921/1937
5. Two and one-half percent lottery bonds for war
damages— 1922/1934
6. Bonds for settlement of claims for Begluk estates —
1929/1930 and 1932/1939
7. Six-percent bonds for settlement of the agrarian re-
form in the Territory of former Dalmatia — 1930 and
1939
8. Four-percent government-guaranteed bonds for set-
tlement of the agrarian reform on large estates — 1934
9. Five-percent loan for public works — 1935
10. Six-percent bonds for settlement of the agrarian re-
form in Bosnia and Hercegovina — 1936
11. Tliree-percent bonds for settlement of farmers' debts —
1936
12. Six-percent loan for public works and national de-
fense, issues I and II — 1938
13. Four-percent bonds for compensation to war volun-
teers—1939
14. Three and nine-tenths percent bonds for settlement
of claims of Serbian Orthodox Church in Serbia and
Montenegro — 1939
15. Converted loan — 1895 (bonds payable in dinars)
16. Five-percent monopoly loan — 1902 (bonds payable in
dinars)
17. Four and one-half percent railroad loan — 190G (bonds
payable In dinars)
18. Lottery of the Serbian Society of the Red Cross— 1907.
However, bonds of this issue in the possession of
foreign nationals do not have to be converted.
19. Four and one-half percent rearmament loan — 1909
(bonds payable In dinars)
20. Five-percent loan — 1913 (bonds payable in dinars)
21. Eight-percent government foreign gold loan of the
Kingdom of the Serbs, Croats, and Slovenes, series
A-1922 (bonds payable in dinars)
22. Seven-percent government foreign gold loan of the
Kingdom of the Serbs, Croats, and Slovenes, series
B-1922 (bonds payable in dinars)
23. Seven-percent foreign loan of the Government Mort-
gage Bank — 1927 (bonds payable in dinars)
24. Seven-percent international stabilization loan — -1931
(bonds payable in dinars)
25. Bonds of the former Austro-Hungarian Monarchy in
crowns and other currencies, issued prior to 1914, and
stamped after 1918 by Yugoslav authorities. Also the
receipts for such debentures and bonds if they were
withdrawn by said authorities after stamping.
26. Bonds of regional loans of the former Austro-Hungar-
ian Monarchy in crowns and other currencies which
were issued by the former regional governments
before 1914.
27. Treasury notes and government treasury notes of the
Ministry of Finance.
28. Four-percent Crown Prince Rudolph loan of 1884 and
1893, and coupon 128 of the four and one-half percent
bonds of the Austrian railroad loan of 1913, to the
extent of the established participation of Yugoslavia
in these Austro-Hungarian obligations.
The law applies to all of the securities described,
irrespective of the citizenship and/or residence of
the holder, and regardless of the present location
of the securities.
Reciprocity Principle in Air-
Transport Agreements
STATEMENT BY THE SECRETARY OF STATE
[Released to the press June 12]
Certain testimony before Congi-ess in the past
few days leads me to believe that there is a gen-
eral lack of understanding concerning the recip-
rocal bilateral air-transport agreements entered
into by the United States. These are agreements
between sovereign nations. The other nations
have the right to grant or deny to our interna-
tional air carriers the right to fly into their coun-
tries. Likewise, the United States may deny or
grant to foreign carriers the right to fly into the
United States. As in all other fields of interna-
tional activity, these rights are exchanged on a
reciprocal basis, to the mutual benefit of the two
nations concerned. This principle of reciprocity
is as old as the concept of sovereignty. Reciproc-
ity has long been an accepted doctrine in fact, and
was jDroclamed by Congress in the Air Commerce
Act of 1926.
1220
Department of State Bulletin
American Traditions in Today's Foreign Policy
ADDRESS BY UNDER SECRETARY ACHESON >
One of the splinters of inquiry which might be
worth a footnote in a Ph.D. thesis is why people
almost everywhere in the world like to take pot
shots at the members of their foreign offices. Some
of the leasons are pretty obvious and perhaps too
embarrassing to delay me here. But in part they
have to do with the vital stake which everyone has
in the foreign relations of his country, and in part
with the belief that these problems are easier than
they are. At any rate one who has been on the
receiving end of this pursuit for some years con-
tinually comes back to an observation of Senator
Barkley on the floor of the Senate a year or so
ago.
The Senator, then the majority leader, was con-
fronted with criticism because he could not satisfy
at once all the demands which several of his col-
leagues were making. He said that his attitude to-
ward criticism was like that of the farmer's dog
who used to go to town with his master. While the
farmer was busy, small boys would catch the dog
and tie tin cans to its tail. The dog got so used to
this that whenever he saw a tin can he backed right
up to it.
One who is bringing to an end a considerable
period of service in the field of foreign affairs is
naturally in a mood of appraisal and review.
Have we conducted ourselves in the great world
in these past six or seven years true to the tradi-
tions of our republic and to the interests of the
American people? I am, of course, prejudiced,
but the answer seems to me not difficult. I think it
is : yes, we have.
To judge this answer, we have to ask, what are
these traditions and these interests ? They seem to
me simple, even platitudinous. The basic, under-
lying, never-varying tradition of this republic is
insistence upon the liberty of the individual, the
worth of the individual, the ultimate test of truth
by reference to the individual.
This has been our political, social, and moral
mainspring. It has also been the motive power
of our vast development. By unleashing the
enormous power of individual effort, imagina-
tion, energy, this country has attained its material
position. It seems true in society, as in nature,
that the greatest energy is created by releasing the
power of the smallest unit. In one case, the in-
dividual ; in the other case, the atom.
History and philosophy gave us this doctrine.
Geography and experience have confirmed it. One
of the great achievements of statesmanship in this
country has been to adapt government to the fur-
therance of this release of the individual and not
to its limitation and frustration. An outstanding
illustration has been the way in which, under Mr.
Lilienthal's guidance, a great governmental proj-
ect, the TVA, has made power available over a
vast area, not to be used by bureaucratic direction
but vastly to enlarge the individual productiveness
of millions of Americans.
This belief in the individual is in our blood. It
is our most fundamental characteristic. It gives a
certain typical disorderliness to our behavior
which baffles some foreign observers. But it can
no more be separated from us than our idea of
humor, our generosity toward anyone in trouble,
and our mobility — we are forever going some-
where. Even though this is so, we have no desire
to force our behavior and ideas on other people.
If, for reasons incomprehensible to us, they want
to act differently and, to us, quite misguidedly,
that is their affair. But we don't like them to push
other peoples around, particularly when those
other peoples are trying to live as we think all
decent people should live.
With these traditions and interests the Amer-
ican people approach their relations with other
countries. They have a sound and unshakable
belief that liberty cannot exist here or anywhere,
' Delivered at the commencement exercises of Wesleyan
University at MidcUetown, Conn., on June 15, 1947, and
released to the press on the same date.
June 22, 1947
1221
THE RECORD OF THB WEBK
unless there is peace founded on freedom from
aggression and unless there is ever-increasing
productivity throughout the world. They know
that while every people must attain and preserve
their own liberty and free government, they can
lose them from forces beyond their control when
faced with fear of the attack of a foreign enemy,
or with the loss of their means of livelihood.
This presents problems for those who work in
our State Department. Americans want to be
free and prosperous themselves. They want other
people who wish to be free and prosperous to
achieve those goals. But they sometimes believe
that tliese ends can be reached by machinery, or
gadgets, or through merely moral fervor, and
without the pain of hard thinking, hard work,
and some real risk and sacrifice.
Some, encouraged by eminent philosophers,
have thought that liberty was the natural state
of man and that its universal growth and accept-
ance was inevitable. I do not believe that for a
minute. It seems to me that liberty has come to
those whose stout hearts and hard heads have won
it. Here, again, we must conclude with Justice
Holmes that the mode by which the inevitable
comes to pass is effort.
Certainly during the decade of the 194:0's this
country has devoted its supreme efforts toward
the preservation of the liberty of nations and in-
dividuals. In the opening years of the decade we
bent our efforts toward assisting those whom the
Axis was attempting to subjugate, and toward im-
peding its bid to dominate the two most populous
continents on the globe. This may have acceler-
ated the attack upon us. But I think that few
now doubt the necessity and rightness of our
course, or the extreme danger in which any other
course would have placed us. The war has now
been won and the threats which caused it have
been eliminated. But serious threats to the con-
tinued existence of liberty have not been elimi-
nated. These come not only from the inevitable
consequences of the war itself but also from the
course pursued by certain governments.
During the war constructive foreign policy was
not in abeyance. It followed two objectives closely
related and mutually dependent — to establish the
unity, mutual confidence, and cooperation of the
great powers; and to create international organi-
zations, necessarily based on the assumption of
this unity and cooperation, in which all nations
could together guarantee both freedom from
aggression and the opportunity for both the devas-
tated and the undeveloped countries to regain and
expand their productivity under institutions of
their own free choice. These, as you have seen,
were historic American objectives. They were also
the stated purposes of the Allies throughout the
war, beginning with the Atlantic Charter.
We did not pursue these objectives merely by
exhortation or joint declaration and agreement.
No people has ever given more tangible or
extensive evidence of its good will and intention.
Particularly is this true in our attitude toward
the Soviet Union. One need mention only the
most outstanding examples.
During the war we contributed to the Soviet
Union lli/o billion dollars of the most vitally
needed supplies. After the war, through UNRRA
and goveriunental credits, we made available
another half billion dollars' worth of goods for
relief and reconstruction.
In our military operations we pursued purely
military objectives. The cross-Channel invasion
of Europe was directed solely toward the destruc-
tion of the German armies, not the occupation of
territory. And when we overran our estimated
and agreed objectives we withdrew to previously
agreed zonal boundaries. These were acts, not
words, based upon the premise of adherence to
an agreement and of mutual confidence and
loyalty.
Nor were these acts all. The whole series of
arrangements for settlement in eastern Europe,
Germany, and the Far East recognized to the full
Soviet fears and interests, and were based upon
confidence in their intention to carry out the
pledged purposes of cooperation in Germany, re-
spect for the rights of other nations to determine
freely their own course of recovery and govern-
ment, and the creation of a vigorous European and
world recovery.
At the same time that these steps were being
taken we pushed forward the establishment of
international organization. This consisted not
only of the United Nations Charter designed upon
the foundation of Allied unity to guarantee inter-
national security, national liberty, and individual
freedom, but of a whole series of special agencies
which were to make sure that a favorable environ-
1222
Department of State Bulletin
ment was created and maintained in which the
broader purposes could be accomplished.
These were designed to jsrovide relief in the
early postwar period; to assure funds for recon-
struction and development and to stabilize cur-
rencies over the longer run ; to raise the level of
agriculture both as the source of food and as
the activity of most of the world's population ; to
promote and safeguard trade between nations; to
protect the health of nations against epidemics; to
facilitate the exchange of ideas, knowledge, and
skills; to aid in the development of international
transportation by air and sea — practically every
activity which could encourage and make more
safe, simple, and beneficial relations between
nations.
Unliappily the whole course of recovery and the
international pursuit of happiness has suffered
deeply by the failure to attain or maintain great-
power unity. This has come about by the Soviet
Union's pursuit of policies diametrically opposed
to the very premises of international accord and
recovery. In eastern Europe the Soviet Union,
over American and British protests, has used its
dominant military position to carry on a unilateral
policy, contrary to the Yalta agreements, by which
free choice of their destiny has been denied those
peoples. Even more important, the minority Com-
munist regimes fastened upon those peoples have
acted to cut them off economically from the com-
munity of Europe, curtail their productivity, and
bind them to exclusive economic relations with
the Soviet Union.
In the Far East the Soviet Union has dismantled
the industries in Manchuria, has obstructed eco-
nomic and political unification of Korea, and has
not carried out its commitments for the return of
Dairen to Chinese administration as a free port.
These actions have seriously retarded economic
recovery and political stability and have con-
tributed vastly to a continuation of poverty and
demoralizing uncertainty throughout the Far
East.
In the Middle East Persia has been for some
years in turmoil, first through Soviet occupation
of its northern territories and then through Soviet-
sponsored local attempts to separate those areas
from Persia.
In Greece, torn and destroyed by the war beyond
any other area, the incalculably difficult task of
June 22, J 947
THE RECORD Of THE WEEK
rebuilding its plant, its production, its people's
health and morale, and its governmental services
has been threatened witli total defeat by civil
disturbances, aided, equipped, and protected
by Greece's northern, Communist-controlled
neighbors.
Similar disappointment has followed attempts
to establish a just and sound peace. It is unnec-
essary to recount the weary course of the Italian
and Balkan peace treaties from London to Moscow
to Paris to New York, or to describe the substance
of those negotiations. We can note without sur-
prise the cynical and barefaced coup d'etat in
Hungary on the very eve of the Hungarian treaty's
coming into effect. We note also, two years after
Potsdam, that by reason of Soviet unwillingness
we have not achieved German economic unification
or written an Austrian treaty. As a result the re-
covery of Europe has been long delayed— tragi-
cally long.
This by no means exhausts the catalog, but it is
enough to outline the difficulty and to indicate why
it is that the United Nations, founded as I have
said on the premise of great-power unity, has so
often been unable to apply the principles set forth
in its Charter and has instead had to furnish the
forum for bitter, unprofitable, and inconclusive
dialectics.
It would be quite wrong to leave the impression
that the factors I have mentioned have been the
sole cause of our present problems. It would have
been serious enough that the great area east of the
Stettin-Trieste line which contributed so much to
Hitler's European economy has been exploited,
disorganized, and cut off from western Europe.
Nature and man have added other problems. Dis-
asters do not come singly.
Two years of crop failures in Europe and one
in the Far East, the most severe winter in half a
century, which drained the meager coal supplies
of England and Europe, and the inefficiency of
the industrial plant, due to depreciation, failure
of fuel and raw materials, lack of labor and many
other causes — all of these have upset all calcula-
tions of recovery. Europe has had to use its re-
sources of foreign money and credits, carefully
husbanded to restore and improve equipment,
merely to keep alive.
Billions of precious dollars saved for machinei-y,
rails, locomotives, harbor equipment, and so forth,
1223
THE RECORD OF THE WEBK
have been spent for wheat and coal and the heavy
shipping charges to carry them. Financially Eu-
rope is bleeding to death, and the period of shock
and crisis will come next year. Nor will the crisis
be purely European. We are today selling twice
the value of goods which our customers can pay
for with their sales to us. This is not merely true
of stricken Europe, but of our nearest neighbors,
Mexico and Canada. The loss of these sales will
have, as it has had in the past, a profound reper-
cussion throughout this land.
This is a depressing but not overdrawn report.
The outlook, as Secretary Marshall has recently
said, is serious. But it has been blacker within the
past few years. The winter of 1941-42 was such
a period. The dangers of those years were over-
come by determination, by courage, and by end-
less effort. Today's problems can also be sur-
mounted. Tragic as it is that we cannot achieve
the whole promise which once seemed almost
within our grasp, that is no excuse for not doing
what we can. If our own power to help is limited,
so is the power of others to impede. And upon our
side are the great urges of individual spirits
throughout the world to rebuild in some way and
to push on to a better day.
We can do, and are doing, many things. We
can expose for all to see the shams and frauds be-
hind which peoples are deprived of their libertj'
by little groups supported by foreign power. The
methods have not changed basically since the days
of Maximilian in Mexico, merely improved in or-
ganization and brutality and propaganda tech-
niques. But they dislike exposure, and it remains
to be seen whether they can survive much longer
than Maximilian did the withdrawal of the foreign
bayonets.
We also can, and should, help within the limits
of our capacity those who wish to help themselves.
It was such an action that President Truman pro-
posed to the Congress on March 12 in connection
with Greece and Turkey and to which the Congi-ess
so overwhelmingly responded. This was not a
novel proposal or an invitation to a crusade. It
was typically and traditionally American.
This country has always responded to people
struggling to attain or maintain their freedom.
We have done so because it is important to us that
they shall succeed. Sometimes we can do much,
sometimes little, but the response is always there.
n24
It was there in the case of Greece over a century
ago and in the case of Hungary and Poland and
Italy. It was there throughout the nineteenth
century in the struggle of the Latin American
states to obtain and keep their freedom from the
encroachments of European powers. It underlay
our efforts for decades to help China in her strug-
gle against foreign subjugation.
So President Truman was acting and the Con-
gress was acting in the truest and soundest Ameri-
can tradition. The case was an extreme one
because Greece was near the abyss. But the prin-
ciple was as old as our country. It is a sensible
and hard-headed principle that where our help
can be effective to enable people who are sincei'ely
striving to remain free and to solve their own
problems, that help will be given.
We should, and I hope will, continue to act in
this way, not waiting for extreme crises to develop,
not attempting to carry all the burdens of the
world or to solve all its problems, but responding
in a thoroughly realistic way to the proposals of
those who are exhausting every possibility of their
own efforts and powers of cooperation with others
to maintain places where free men may remain
free.
This, as I see it, has been the course of our
foreign policy over these j^ast few years. And it
is our present course. It has not created the world
of our dreams. But that is not our fault. It is
the best course I know of, in the world as we find
it, to preserve the possibility that a better world
may some day eventuate. It is the best course to
preserve all that we hold most valuable in life.
It is a course that requires determination, intelli-
gence, courage, and effort. It requires that Ameri-
cans be made of good stuff.
"Citizens," said Milton, " it is of no small con-
cern what manner of men ye be whether to acquire
or to keep possession of your liberty."
THE CONGRESS
Tenth Eeport to Congress on Operations of
UNRRA: Message from the President of the
United States transmitting the tenth quarterly re-
port covering the operations of UNRRA. H. Doc.
254, 80th Cong., 1st sess. 41 pp.
Amending the Organic Act of Puerto Rico. H.
Rept. 455, 80th Cong., 1st sess., To accompany
H. R. 3309. 6 pp. [Favorable report.]
Department of State Bulletin
Extension of Government Operation of Shipping Facilities
STATEMENT BY THE SECRETARY OF STATE '
This Committee, I believe, is considering pro-
posals to extend the Maritime Commission's
authority to operate vessels after June 30 of this
year and to extend the charter and sales authority
of the Ship Sales Act.
I recognize the desirability of the Government's
getting out of the ship-operating business as soon
as possible, and that emphasis should be put on
the disposal of vessels to both domestic and foreign
operators in preference to either Government oper-
ation or the charter of Government vessels to pri-
vate operators. There are, however, today a num-
ber of special problems of a temporary nature,
arising out of the dislocations of the war, which
make it necessary, in my opinion, for the Govern-
ment to have the authority to operate and charter
vessels in order to make available for use, with
the maximum of flexibility, the tonnage absolutely
necessary to meet urgent world needs. It is in-
consistent for us to support programs for direct aid
and financial assistance to foreign countries and
then to tie our hands by lack of authority to use
available shipping resources. Wlien we make
ships available either for sale or for use in foreign
economic programs, we are saving the taxpayers'
money by making most effective use of funds ap-
propriated for such programs. Any limitations
placed upon the availability of tonnage for world
needs will only result in hampering the Govern-
ment's efforts, to say nothing of possible serious
consequences to shippers.
Under present circumstances it is not sound pub-
lic policy to force the sale of vessels by prohibiting
Government operation or charter to meet vari-
able and uncertain demands of temporary and
emergency programs. Such action would bring
a rigidity into the supply side of the picture at a
time wlien demand may be subject to wide fluctu-
ations which cannot now be predicted.
The most urgent phase of the matter is the
June 22, 1947
extension of Maritime Commission operating
authority in order to permit uninterrupted opera-
tion of tankers to avert a serious world-wide
petroleum crisis. This Govermnent's program
of foreign assistance based upon commitments
already approved by the Congress would be seri-
ously affected by any cut in petroleum supplies in
Europe in view of the existing fuel famine.
In addition to the tanker problem, it is equally
important that the Maritime Commission have au-
thority to either charter or operate dry-cargo
vessels for a considerable period to meet the re-
quirements of emergency programs, involving par-
ticularly the movement of-coal and grain to
Europe. Our ability to render help should not be
hampered, in my opinion, by restrictions which
prevent us from using surplus resources to assist
countries which are sorely in need of such as-
sistance.
It also appears urgently desirable for Congress
to continue the authorization of the Maritime
Commission to operate emergency passenger ships.
These vessels are used for national interest traffic
and the repatriation of American citizens, and
their continued operation is necessary until ade-
quate commercial facilities become available.
To sum up, what is needed at the pi-esent time is
adequate authority to permit the effective use of
th^ available shipping resources to assist in read-
justing the dislocations arising out of the war and
to facilitate the emergency movements which may
be subject to considerable fluctuation and uncer-
tainty during the next year or two. I hope Con-
gress will see fit to provide the Maritime Commis-
sion with the authority necessary to assist in carry-
ing out the programs which have been, approved
by Congress and our foreign economic policy.
' Made before the House of Representatives Committee
on Mercliant Marine and Fisheries on June 11, 1947, and
released to the press on the same date.
1225
STATEMENT BY UNDER SECRETARY CLAYTON
Before going into details I would like to em-
phasize one point made by Secretary Marshall. It
is one which I have advocated consistently in con-
nection with our whole postwar shipping prob-
lem : The objective of the Ship Sales Act is pi'i-
marily to dispose of our surplus vessels to both
domestic and foreign operators, and that objec-
tive should take precedence over the charter of
vessels and direct Government operation. The
problems which are before us today largely arise
either because of the degree to which the demand
for purchase of vessels has not been met or because
of certain temporary programs which can only
be met through charter or direct operations. It is
my hope that efforts for the disposal of vessels
will be intensified so as to minimize or even elim-
inate the problem of charter or Government opera-
tion in the shortest possible time.
With this general picture in mind, I would like
first to refer to the urgent necessity for Congres-
sional action to permit the continued operation of
Government-owned tankers.
At the present time, U.S. Government-owned
tankers constitute a quarter of the tanker tonnage
in operation throughout the woi-ld. In the ab-
sence of appropriate legislative action by our Gov-
ernment, it will be necessary to withdraw these
Government-owned tankers from operation on
June 30. Since the world tanker fleet even now
is no more than adequate to meet the demands
upon it, such a step would precipitate a disasti-ous
and wholly unnecessary shortage of petroleum
products.
In addition to the vessels owned by the Govern-
ment, another quarter of the world's operating
tanker tonnage is made up of privately owned
tankers operating under the United States flag.
These vessels are adequate to meet our coastwise
requirements but do not cover our import require-
ments. Nevertheless, tankere privately owned by
' Made before the House of Representatives Committee
on Merchant Marine and Fisheries on June 11, 1947, and
released to the press on the same date.
1226
United States citizens and operated under the
Panamanian flag could probably be counted upon
in an emergency. Including these two gi'oups, our
privately owned tanker fleet would theoretically
be adequate to meet our normal estimated domestic
requirements but would provide no margin for ex-
ceptional contingencies. However, since some of
the United States privately owned tankers are em-
ployed in foreign trade under long-term con-
tractual arrangements, they would not be in a po-
sition to serve United States trades without con-
siderable delay and possibly governmental requisi-
tion to force a cancellation of present commit-
ments.
The disastrous consequences of an induced world
shortage of tankers become fully apparent when
the effect upon foreign countries is considered.
The withdrawal from operation of a quarter of
the world's operating fleet coupled with the re-
striction to U.S. coastwise and import trade of all
U.S.-owned tankers would leave the rest of the
world with less than two thirds of the tonnage re-
quired to meet its needs.
It is difficult to exaggerate the seriousness of
the effect an interruption of petroleum shipments
would have upon European and world recovery.
Because of the critical shortage of coal, the Euro-
pean economy is more than ever dependent upon
petroleum as its basic fuel, and an inadequate fuel
supply is delaying European recovery more than
any other single factor. British industry is still
operating well below capacity as a result of last
winter's coal crisis and the fear of its recurrence
next winter. In the western zones of Germany, it
is the shortage of coal that prevents the production
of steel, chemicals, and consumers' goods from
reaching even the restricted levels agreed upon at
Potsdam. If a heavy cut in petroleum supplies is
superimposed upon this situation, the progress of
recovery throughout western Europe would be re-
versed and shortages of bunker fuel might well
impede the imports of coal, food, and reconstruc-
tion materials. The repercussions of such meas-
ures would extend throughout the world. In order
Department of State Bulletin
to implement foreign-assistance commitments al-
ready approved by the Congress, we must assure
the availability of ships to move fuel and fuel to
move ships.
In the long run, the present and prospective
shortage must be made good through the expansion
of foreign-flag tanker fleets. In part this expan-
sion is already taking place through new con-
struction. Over 150 tankers are now under con-
struction or on order abroad for foreign operators.
This Government can greatly accelerate the ex-
pansion, to its own profit, by the sale of our surplus
tankers. The Maritime Commission is just com-
pleting the transfer of 50 T-2 tankers to foreign
owners. Within the last month the Secretary of
the Navy has approved the transfer of 35 more,
and approval of additional transfers is expected
shortly. Completion of these arrangements woidd
add over 275 vessels to present foreign-flag tanker
fleets, or a carrying capacity roughly equal to that
of the United States Government vessels now in
operation.
However, the short-run problem still remains.
Even if all applications for sale to foreign owners
are apjiroved by the Maritime Commission,
foreign-flag fleets will be unable to meet foreign
requirements until tankers under construction
abroad come into service. The shortage of dollar
exchange is an important factor limiting the
ability of other countries to purchase all of the
tankers that they might ultimately require and
which will eventually be supplied through foreign
construction.
Expeditious action by the Maritime Commission
in the consummation of sales of tankers would
greatly decrease the number of Government-
owned tankers in operation during the next few
months. As the tankers under construction
abroad are delivered, the operatioia of Govern-
ment-owned vessels can be proportionately cur-
tailed.
A second problem to which I would like to refer
is the necessity for Congressional action to permit
the continued operation of Government-owned
dry cargo and passenger vessels in order to deal
with certain emergency situations, and also action
to permit the Maritime Commission to continue to
charter dry-cargo tonnage after December 31,
1947.
There is need to provide adequate authority to
THE RECORD OF THB WBBK
use available shipping resources to meet excep-
tional requirements arising out of postwar dis-
locations. For example, the extension of general
agency authority is necessary to permit continu-
ance of the present emergency passenger traffic.
Currently the Maritime Commission is operating
some 12 emergency passenger ships (C— 4 type
troop transports slightly converted for passenger
carrying) in the transport of urgent national-
interest traffic in accordance with priorities de-
termined by the Department of State, particularly
in the repatriation of American citizens for which
purpose substantial sums have been appropriated
to the Department by the Congress. These ships
also supply other urgent needs for passenger move-
ment for which commercial facilities are presently
inadequate. The need for continuing this opera-
tion of emergency passenger ships was thoroughly
explored in public hearings by the Merchant
Marine and Fisheries Committee of the House in
connection with proposals to extend authority to
the Coast Guard to waive normal regulations cov-
ering passenger ships, and that authority was
extended.
Extension of Maritime Commission authority to
operate ships under general agency agreements be-
yond June 30 is essential in order to avoid an
abrupt cessation of passenger services in the midst
of the heaviest traffic season, without any present
means of substituting other sei-vices.
The need for extension of Maritime Commis-
sion authority to operate dry-cargo vessels beyond
June 30 is not particularly urgent, so long as the
authority to charter or sell vessels is continued
beyond December 31, 1947. Most of the chartered
dry-cargo vessels are employed in the coal and
grain trade, principally to Europe. This is a
most vital and essential program, and under no
circumstances should it be interrupted. It is, fur-
thermore, an emergency program of limited dura-
tion and one which will diminish at a rapid rate
when European reconstruction becomes firmly es-
tablished. It is, however, unlikely that these
movements will disappear within the next two
years. It is the temporary nature of the demand
for ships for these programs which leads me to
believe it would not be sound to terminate the Com-
mission's authority to charter or sell these vessels
on December 31 on the assumption that operators
should buy rather than charter. The artificial
world-shipping shortage which would be the likely
June 22, 1947
1227
THE RECORD OF THE WEEK
result of the existing provisions of the Ship Sales
Act by preventing tlie sale or charter of ships
owned by the Maritime Commission after De-
cember 31 of this year would create a world
shijjping crisis and impede, if not actually prevent,
the carrying out of our efforts to improve world
economic conditions.
In view of these considerations I wish to en-
dorse Secretary Marshall's request that urgent ac-
tion be taken by this Committee to secure the adop-
tion of legislation permitting the maximum flexi-
bility in the use of our shipping resources by
extending the Maritime Commission's authority to
operate vessels and by amending the Ship Sales
Act of 1946 to authorize the Maritime Commis-
sion to sell and charter tonnage after December 31.
Position on House Version of Wool Bill
STATEMENT BY THE SECRETARY OF STATE
I am disappointed in the reported action of the
Senate and House Conferees with respect to the
Wool Bill. I am making public my letter to the
Conferees together with the telegram from Mr.
Stimson and the letter from Mr. Hull referred to
therein.
LETTER FROM THE SECRETARY OF STATE TO SENATOR AIKEN
June 4, 1947.
Mt Dear Senator Aiken : I wish to express
appreciation to the Senate and House Conferees in
hearing the Under Secretary of State for Economic
Affairs with respect to pending legislation on
wool. I am sure Sir. Clayton made clear the seri-
ous issues involved from the point of view of our
foreign policy. However, I wish to summarize the
position of the Department of State in this matter.
The Senate bill directs the Commodity Credit
Corporation to continue until December 31, 1948,
to support a price to domestic producers of wool
at the same price at which it purchased domestic
wool in 1946. It authorizes the Commodity Credit
Corporation to dispose of wool owned by it at
market prices.
The House added to this bill a provision intended
to result in an increase in the high tariff on wool,
and thus enable the Government to give this sup-
port to domestic wool producers without financial
loss to tliis Government. The cost of such sup-
port would thus be passed on to the consumers of
woolen goods.
The critical importance of this action, as it bears
on our foreign relations, arises from the fact that
there is in progress at this very time in Geneva, an
International Conference on Trade and Employ-
' Released to the press on June 12.
ment called by the United Nations on the initiative
of this country. The United States delegation, of
which Mr. Clayton is Chairman, is taking a lead-
ing part in this Conference.
The object of the Conference is to negotiate
reciprocal trade agreements for the reduction of
barriers and the elimination of discriminations in
international trade. A further object is to agree
upon a draft of a charter for an International
Trade Organization to be set up under the Eco-
nomic and Social Council of the United Nations.
Some 50 or 60 negotiations are actually taking
place between the different countries represented at
this Conference, and it is expected that eventually
some 70 or 80 agreements will be entered into. The
participation of the United States in this aspect
of the proceedings derives from the Reciprocal
Trade Agreements Act last extended by Congress
in 1945.
While wool constitutes a relatively small part
of our domestic economy, being only i/o of 1% of
agricultural income, it is a highly important com-
modity in otlier countries. For example, it forms
907o of the value of all of the exports of Australia
to the United States.
The question here is whether the best interests
of the United States will be served by the passage
of the Senate Wool Bill which affords protection
to the domestic wool producers at a relatively
1228
Deporfmenf of Sfofe Bullefin
small cost to the United States Treasury, or by
the adojition of the House version of the Bill which
would provide this protection by further raising
barriers to international trade. The Department
of State is strongly of the opinion that the Senate
Bill provides the only acceptable course of action
open to us not wholly inconsistent with our current
efforts to remove the cause of serious conflicts in
the world economic field.
I am taking the liberty of passing on to you
7HE RECORD OF THE V/EBK
herewith the views on this subject of our most
distingaiished elder statesmen — Mr. Stimson and
Mr. Hull.
Faithfully yours,
G. C. Marshall
Enclosures :
Letter to Secretary Marshall from Honorable Cordell
Hull dated June 4, 1947.
Coijy of telegram to Secretary Marshall from Honorable
H. L. Stlinson dated June 4, 1947.
LETTER TO THE SECRETARY OF STATE FROM CORDELL HULL'
Bethesda, Maryland, June 4, 19^7
Mt Dear Secretary Marshall: I have been
very disturbed to learn of Mr. Clayton's return
from Geneva in connection with the possibility
of action by the Congress intended to increase the
tariff on wool. I believe that such action would
seriously endanger the success of the negotiations
now going on in Geneva for the reduction of trade
barriers under the Reciprocal Trade Agreements
Act, and for the establislmient of an international
trade organization, embodying the basic principles
of mutually beneficial international economic
relations for which we have striven so long.
After more than a decade of successful operation
under the Reciprocal Trade Agreements Act, and
at a time when the principal trading nations of
the world are prepared to follow our lead in carry-
ing out a program of economic disarmament, it
would be tragic indeed if any action of ours should
endanger that program.
I do not wish to pass judgment on whether or
not the gi'owers of wool in this country are en-
titled to additional assistance. That is for the
Congress to decide. I do feel very strongly, how-
ever, that such assistance, if given, should not be
in a form which would preclude or nullify the com-
prehensive negotiations in which we are now en-
gaged with other countries for the reciprocal re-
duction of tariffs and other trade barriers. The
success of these negotiations is indispensable to
our own economic stability and prosperity, and
for the creation of a climate favorable to the
preservation of world peace.
The form in which domestic wool producers re-
ceive price support must not jeopardize our inter-
national relations. As the President said in his
address at "Waco, Texas, on March 6 : "The negotia-
tions at Geneva must not fail."
Faithfully yours,
CoRDEix Hull
TELEGRAM TO THE SECRETARY OF STATE FROM HENRY L. STIMSON'
June 4, 1047.
Dear Mr. Secretary : I am deeply concerned re-
garding the pending wool legislation in Congress.
In the form proposed by the House of Repre-
sentatives, this legislation would increase the
tariff on wool.
It is my considered opinion that to enact the
House measure at any time would be most unwise.
It would amount to a repudiation of the whole
structure of American economic policy developed
in the Congress and the State Department during
the fifteen years since Cordell Hull began his great
work for trade agi-eements. And such repudiation
now, when American leadership has been so largely
responsible for the Conference on World Trade at
present proceeding in Geneva, could not fail to
have serious and immediate international effect,
both economic and political. To other nations now
watching for proof of American sincerity and
unity it would be a shocking indication that the
■ Secretary of State from Mar. 4, 1933, to Nov. 29, 1944.
" Secretary of State from Mar. 5, 1929, to Mar. 4, 1933,
and Secretary of War from July 1940 to September 1945.
June 22, T947
1229
THB RECORD OF THE WEEK
policy of the United States can at any time be
shackled by the sort of economic shortsightedness
for which all the world has paid so dearly in
recent years.
After World War I, the American people and
others executed an economic and political retreat
from world affairs. These policies were in large
part responsible for the great economic break-
down which followed both here and in Europe.
Now we are engaged in an effort to reconstruct
a world shattered by the war which grew out of
that economic breakdown. In this effort of recon-
struction greater freedom of world trade is indis-
pensable. No such freedom can be achieved if
this country retreats behind tariff walls higher
than ever.
To enact any provision raising the wool tariff
would be a clear first step toward the disastrous
repetition of our former error. If the Congress
should determine that the price of wool must be
supported, a question on which I do not here offer
any judgment, it can accomplish this purpose at
relatively small cost by employing the method of
subsidies contained in the Senate bill. But to
support these prices by raising the tariff on wool
would be to give financial assistance to a few at the
cost of a large share of this nation's hope for world
prosperity and peace.
Very sincerely youra,
Henry L. Stimson
The People's Stake in Maintaining Peace
BY BENJAMIN V. COHEN
We are now engaged in a struggle for peace.
But we are only beginning to appreciate the efforts
and sacrifices that will be required. Peace in a
free world requires more than good intentions.
Peace, no less tlian war, requires courageous action.
We alone did not win the war. But the war
could not have been won if we had not organized
ourselves and our resources to win it — if we had
not used our brains, our talents, our skills, our
treasure, and all our strength to win it.
We alone cannot win the peace. But if we are
going to do our j^art to win it, we must devote
ourselves to the organization of peace as fully as we
devoted ourselves to winning the war. Winning
the peace may be in many ways more difficult than
winning the war. But it is the task of our genera-
tion to win it.
We cannot afford defeatism about the peace any
more than we could afford defeatism about the
war. It took the Allies nearly six years to win
the war after it had started in Europe in 1939.
During the first three years it looked very much as
' Address delivered before the National Gonvention of
the U.S. Junior Chamber of Commerce at Long Beach,
Calif., on June 12, 1947, and released to the press on the
same date. Mr. Cohen is Counselor, Department of State.
1230
if our side was losing. It took us in the United
States a long time to realize how real was the
danger that our side might lose the war, and how
great our efforts would have to be if our enemies
were to be defeated.
We are now only beginning to realize how diffi-
cult is the task of organizing peace under law and
how great and continuing our efforts must be to
achieve it. That is no reason for us to despair of
success and to abandon our efforts. That is reason
for us to quicken and redouble our efforts.
In his last message on the state of the Union,
President Roosevelt warned us :
"Perfectionism, no less than isolationism or im-
perialism or power politics, may obstruct the
paths to international peace. Let us not forget
that the retreat to isolationism a quarter of a cen-
tury ago was started not by a direct attack against
international cooperation, but against the alleged
imperfection of the peace.
"In our disillusionment after the last war, we
preferred international anarchy to international
cooperation with nations which did not see and
think exactly as we did. We gave up the hope of
gradually achieving a better peace because we had
Department of State Bulletin
iiot the courage to fulfil our responsibilities in an
admittedly imperfect world.
"We must not let that happen again, or we shall
follow the same tragic road again — the road to a
tliird world war.
"We can fulfil our responsibilities for main-
taining the security of our own country only by
exercising our power and our influence to achieve
the principles in which we believe and for which
we have fought."
We cannot fulfil those responsibilities by with-
drawing from the woi'ld in protest. Nor can we
fulfil those responsibilities by yielding up our
own freedom or expecting other people to yield
up their freedom for our peace. Peace without
freedom is not peace but tyranny.
How then can we most effectively exercise our
power and influence to fulfil our responsibilities
to ourselves and to the world and strengthen the
cause of peace in this imperfect world ?
There are no simple, easy answers to this ques-
tion. I will only suggest two avenues of approach
which should be helpful.
In the first place, we can and must make it clear
that we ourselves intend to live by the Charter of
the United Nations and that we will exercise all
our power and influence to see that other nations,
large and small, live by the Charter.
In the second place, we can and must exert our-
selves to help those countries whose economies
have been shattered by the war to become again
economically self-sujiporting. For only if the
war-wrecked countries of the world are restored
to health will their people feel that they have a
stake in a peaceful world of law that is worth de-
fending.
The Charter of the United Nations expresses
the common hope of the peoples of this world for
enduring peace based on law. Because the Char-
ter is cherished by the peoples of the world it can-
not be completely ignored by any government that
may find itself in power in any country. Tliat
is an impelling reason why we must hold to the
Charter, defend it, live by it, and build upon it.
The principles of the Charter are not, however,
self-enforcing. There is no self-operating mech-
anism which can be devised to give the world peace
under law. There is no voting machine which can
reflect with unerring accuracy world opinion or
June 22, 1947
THE RECORD OF THE WEEK
which can yield an incontestably right answer to
every perplexing world problem.
The Charter of the United Nations, like the
Constitution of the United States, was constructed,
as it had to be constructed, on the basis of com-
promise. Its future depends not upon its lettered
provisions, but upon the moral and material sup-
port which the nations of the world give to it and
the extent to which they live by it.
President Truman has pledged that "the United
States will support the United Nations with all
the resources we possess." If we keep that pledge
and if other law-abiding nations likewise support
the United Nations, the Charter will live and grow.
As our Constitution provides the basic law of
our land, so the Charter of the United Nations
provides the basic law of nations. The law the
Charter provides may be incomplete, but it does
strike without equivocation at the use of force in
any manner contrary to its purposes.
Unfortunately much of the discussion of the
unanimity rule and the veto has blurred and ob-
scured this basic and all-important fact.
Under the Charter, all members of the United
Nations, large states as well as small states, pledge
themselves to refrain in their international rela-
tions from the threat or use of force against the
territorial integrity or political independence of
any state or in any other manner inconsistent with
the purposes of the Charter.
Under the Charter, all members of the United
Nations, large states as well as small states, pledge
themselves to settle their international disputes
by peaceful means, in such manner that inter-
national peace and security and justice are not
endangered.
As our Representative to the United Nations,
Senator Austin, has said, "These sweeping and
binding commitments are not limited by the power
of veto in the Security Council. The veto does
not legalize any violations of these commitments.
They are the law." As President Truman has said,
"every member of the United Nations is legally
and morally bound by the Charter to keep the
peace."
The General Assembly has also affirmed the
principles of international law recognized by the
statute of the Nilrnberg Tribunal and the judg-
ment of that Tribunal which make the planning
or waging of a war of aggression a crime against
1231
THE RECORD OF THE WEEK
huiiianily lot- wliicli iiidiviiliials as woll as nations
aro responsible.
It is true (liat miless the permanent members of
the Seenrity Couneil are aji'ived that tiiei'e lias been
a viohition of tiie Charter, no state is bound to
act simply beeause a certain ninnber of slates be-
lieve that there lias been a violation. But in case
of clear aggression no state lias the moral rijilil
to stand mute. In case of cleai' ajij^ression, all
laAV-abiding stales have the right and are under a
moral duty to defend the Charter.
Magna Carta had no elaborate machineiy to
insnii' its enforcement. The Const itui ion of llie
United States had no clauses dealing with what
should happen in the event that stales attempted
to set'ede. The jirinciples of the Magna Carta
survived and the Constitution survived, because
the ]ieo]i1e \\er(> delermined that llicy should live.
We uuist make it clear th:d we aie determined that
the law of Ihe Unihnl Nations shall i>revail and
that we aie ])rei)ared to use oui- power and our
resources, veto or no veto, to defend the basic law
of the Cliarlei-.
T think i( is clear that respect for the purposes
and princi|)les of the (^barter includes respect for
present power relal iousliips. .\s former Secre-
tary of State Byi'nes has said:
"The pi'eseni ])ower relationships of the great
states preclude the domination of the world by
any one of them. Those power relationships can-
not be substantially altered hy the unilateral ac-
tion of any one gi-eat state without profoundly
disturbing the whole siruclure of Ihe llniled
Nations.
"The great states are given special responsibil-
ity under the Charter because they have the mili-
tary strength to maintain i^ace if they have the
will to maintain peace. Their strength in rela-
tion to one another is such (hat no one of (hem can
safely break the peace if the others stand united
in defense of the Charter."
If we want peace in the world, and we cannot
have peace in (he work! without .some law in the
world, we must realize and make others realize
that delicate and sensitive i)ower relationships
cannot bo undermined by unilateral action
through force, coercion, or more subtle forms of
pressure and penetration.
1732
That does not mean that we ojipose, and that
the Charter of the United Nations forbids, all
change in the external relations of states.
AVe believe in progress and in freedom. We are
not defenders of privilege or of the dead hand of
reaction.
The Charier of the United Nations permits and
cncouiages free and friendly negotiations be-
tween states and provides means, particularly in
aiticle 11, foi' the concrete expression of world
opinion on the need for peaceful change.
'Inhere will be no need for ]ieaceful change. The
world does not stand still. But no nat ion or group
of nations has the right to im])oso by force or
threat of force its political or economic system or
way of life \ipon other nations. No state has a
right to w-age a war of nerves against another state
or seek- through tlevious devices of infiltration
and ])enetraliou to control or undermine its gov-
crnmcnl and to destroy the freedom and dignity
and basic rights of its people.
AVar inevitably brings changes in power rela-
tionships among the great states. Doubt and mi-
certainty as to the consequences of these changes
generally create uneasiness and fear among the
victors as well as the vanquished. That is why it
is vitally important that there should be no fur-
ther unilatei'al action to disturb established power
relations by force or coercion.
Uneasiness and fear in the world can only be
increased if the world is divided among a few
great states, each dominating satellite states. A
contest for satellites is not a struggle for peace.
It is a struggle for power. And it can only lead
toward war. AVe do not want to force the smaller
states, or the less powerful of the great states, to
choose their guardian state or to have their guard-
ian states chosen for them. Friendship among
states, like friendship among individuals, should
not exchule fi'ieudships with others. AVe want to
live in a world where power is diiTused and free-
dom under (he law of nations is the right of every
stale.
Tho aim of (he policy of the Uui(ed States is
no( (() engage in a struggle for power over other
states and o(her peoples, but to help sta(es and
peoples to regain and rebuild their polidcal in-
dependence and economic health. It is for that
purpose, and not for the purpose of bringing thera i
within (he orbit of our i)tiwer, thai we are ex-,
tending help to Greece and Turkey. AA^'e could;
Deparfmenf of Stale Bulletin
iM)( loiivc them economically weak and defenseless
ajjaiiist a (.-ontinuinfi; war of nerves. Had we not
jjlaced oui'selvos in tha position to continne and
suppltMiient tlie assistance that the British Gov-
ernnu'nl had been furnishing tliese pountries, tlicro
would iiave been grave danger tliat the war of
nerves being conducted against these countries
would have been intensified in tlie false belief
that we would not act in defense of the rights of
these countries under the Charter of the United
Nations.
AVe are engaged, not in a struggk; for power, but
in a struggle for the supremacy of law. We must
not slaciien in our efforts to maintain the law of
tlie Cliurter. For only under law can peace en-
dui'e.
Wliile we must remain strong and ready to de-
fend tlie law of tlie Charter, we must not our-
selves fall victim to the belief in the inevitability
of condict. There is and litis been room in this
world for diil'erent ways of life. War is inevi-
table only if people fail to tolerate and respect
ways of life that they cannot share.
None of us is wise enough to predict the future,
but we should be slow to judge the future by the
conditions that now prevail in this terribly sick
world. In the immediate aftermath of war there
is a tendency to think too much in terms of mili-
tary power and too little in terms of economic
need.
That brings me to my second point. It is not
enough for us to take our stand for law and peace.
We must do our part to make the peoples whose
social and economic life has been shattered by the
war, feel that they too have a worth-while stake in
law and peace.
Peace is not merely a truce between wars. If
we want peace, we must deal with the causes of
unrest in the world and not merely their symptoms.
It is economic distress, hunger, sickness, antl hope-
lessness that breed political unrest and make men
the prey of warring ideologies and rival tyran-
nies. People want freedom and law, but they
must have food, shelter, and clothes. We have
often said glibly that the last war was the most
devastating war in all history. But we are only
beginning to realize how completely it has shat-
tered the economies of Europe and how difficult
it has made the resumption of normal living.
Europe is not the only part of the world that is
in need, but time compels me to confine my re-
THB RECORD OF THC WEEK
marks to Europe whose economic recovery is vital-
ly important to the economic health, peace, and
security of the whole world.
If we want a free Europe — and it is hard to see
how we can have a peaceful world without a free
Europe — we must urgently consider what can be
done to put Europe back on her feet economically,
what can bo done to help Europe to become again
self-su[)porting.
We must, I think, face the fact that our pro-
grams for economic aid to Europe, lai-ge as they
have been, are going to be cleai'ly insufficient to
enable Europe to get back on her feet.
Our [irevious programs underestimated the
ravages done to the European economy, the time
which would be taken to restore its effective func-
tioning, the substantial rise in the costs of Ameri-
can exports, and other factors.
In 1946 we exported to the rest of the world
about 15 billion dollars of goods and services.
This is more than twice as great in value as the
goods and services we are importing from the rest
of the world. In 1940, six billion dollars of these
exports were financed directly or indirectly by
loans and grants in aid by the United States Gov-
ernment. Existing authorizations cannot possibly
enable the flow of needed exports to continue at
the extraordinary rate of the first quarter of this
year, a level of more than 19 billion dollars a
year. Some leveling off of this extraordinary rate
of exports is inevitable. But unless substantial
additional financing is forthcoming the decline
could assume proportions which would aggravate
misery abroad and increase the possibility of re-
cession at home.
Those who have been studying Europe's rudi-
mentary rehabilitation needs tell us that Europe,
including Great Britain, may require as much as
five or six billion dollars a year for another three
or four years to meet those needs.
Unless Euroi^e can secure adequate assistance
it may be difficult for some European countries to
avoid political unrest and i)olitical instability,
and the danger of dictatoi-ships. People long
tired, cold, hungry, and impoverished are not
wont to examine critically the credentials of those
promising them food, shelter, and clothes. And
dictators, knowing that they intend to hold power
if they can get it, will play the right side or the
left side and sometimes both sides to get and
keep power.
June 22, 1947
1233
THE RECORD OF THE WEEK
Our interest is in a free Europe. The way to
keep Eurojie free is to restore the war-shattered
foundations of the closely interrelated and inter-
dependent European economies and to give the
European peoples renewed confidence in them-
selves, hope in their future, and a genuine stake
in peace and law.
At the close of the war many of the liberated
countries of Europe were not concei'ned with the
revival of the German economy. And while the
liberated countries do not now want German eco-
nomic revival to have priority over their own
revival, they have come to learn that the extremely
low level of productivity of the German economy
is hampering and not helping the revival of
Europe. Europe needs German products and
German markets. In fact, coal from the Ruhr is
one of the keys to European recovery.
As the liberated countries are learning that they
have an interest in the peaceful economic revival
of Germany, so Me must learn that we have a defi-
nite economic as well as political interest in the
economic revival of Europe as a whole. Europe's
economic recovery is as important to the economic
health of a peaceful world as Germany's economic
recovery is to the economic health of Europe.
To cut Europe adrift and to compel her in her
misery to shift for herself during the next few
years would be a body blow to security, political
stability, and economic progress the world over.
The loss of European markets would not only
cause serious and painful readjustments in our
own country, but would have repercussions all over
the world.
Economic help to revive war-shattered Europe
will be costly. But the withholding of economic
help would also be costly — not only in economic
consequences but in social and political conse-
quences.
The more important problem in many ways is
not whether Europe should be helped but how
Europe should be helped. After the First World
War we thought we were pursuing a policy of
fairly prompt retrenchment on European aid and
the gradual retirement of the war debts. It turned
out, however, that we aided Europe substantially
and not altogether wisely.
The problem of Europe's rehabilitation is much
more serious now and we should try to think it
through more clearly. After the First World
War we were more concerned with questions of
1234
money repayment and money interest than we were
with the question of the effectiveness of our aid
in producing sound and healthy economic condi-
tions throughout the world.
If we are to assist in intelligent programs of
economic aid for Europe, our first and primary
objective should be to assist programs that will
rebuild a self-supporting European economy.
Until the European economy does become self-sup-
porting it is difficult to see how Europe can make
substantial payment of capital or interest except as
she borrows from or puts off payment to Peter in
order to pay Paul. And we must not forget that
unless we wish to subsidize heavily our future
foreign trade, we can over the long term be repaid
only in goods and services which we are willing
to accept and in investments which we are willing
to hold in foreign countries. If we wish to pre-
serve over the long term our economic position
in the world, we must build up and replenish the
resource base upon which the continuance of our
productivity and prosperity depends.
In as much as the economies of the individual
European states are closely interrelated, priority
in economic aid should be given to programs which
will serve to revive the European economy as a
whole. Particular consideration should be given
to projects which will serve to remove economic
bottlenecks which obstruct the efforts of European
states to increase their trade and production. For
example, whatever we can do to help increase coal
production and facilitate its transport would have
a stimulating effect upon the economy of nearly
every European country.
Even with our large food exports to Europe
there is an acute shortage of food through Europe.
A project to increase over-all European food
production by the supply of fertilizer, seed, and
farm machinerj' could have its effects throughout
Europe.
Trade between European countries has been
hampered and has become largely a matter of
bailer because they have no confidence in one
another's currency. Possibly a project could be
devised to finance trade between European coun-
tries which would have a stimulating effect upon
trade and production throughout Europe.
We should consider our help to Europe and
other countries not merely in terms of dollars but
in terms of production and goods for which the
dollars are to be used. We must not permit our
Department of State Bulletin
economy to be inflated or distorted to the point
that our own economic health is impaired. We
cannot hope to be able eflfectively to help create
economic stability in a free world unless we can
keep our own economic house in order. Our pro-
ductivity and resourcefulness, which won the war,
will be equally necessary to win the peace.
The task of helping to rebuild a war-wi-ecked
THE RECORD OF THE WEEK
world is a heavy task. But it is a challenging
task. We were not daunted by the heavy tasks of
war. If we want peace, we must not flinch before
the tasks of peace. If we want a free, peaceful,
law-abiding world, we must see that the peoples
of this world have a stake in the peace and have
the vitality, strength, and will to maintain peace
and freedom under law.
The Future of Foreign Trade
BY ASSISTANT SECRETARY THORP >
I doubt if there ever was a time whe>n advance
planning for the world was done on as grand a
scale as that by the American Government for the
intei'national problems of the postwar period.
As is inevitable in any planning for the future,
some of the assumptions have not proved to be cor-
rect and certain unpredictable and fortuitous fac-
tors have appeared. It is still too early to know
how many of the hopes implied in the early pro-
spectus will be fully realized. But the fact re-
mains that a magnificent job was done, and as
Americans we should take great pride in the leader-
ship provided in that critical period.
The United Nations is now a going concern and
can give us all hope that a way has been found to
maintain peace on earth. The advance planning
in the political field has served its original pur-
pose and a f lesh approach to the problem of deal-
ing with international problems and controversies
has been initiated. We must now pass on to the
difficult stage of developing and strengthening the
new institution to accomplish its high jiurposes.
At least, the possibility is present at last of dealing
with problems of international importance in an
orderly and organized fashion.
In the economic field there was also a plan,
fashioned to meet the difficult postwar period.
Well before the end of the war, the concept of lend-
lease had been established, thus doing away with
one of the gi-eat obstacles to any postwar recovery.
Occasionally men do learn from experience, and
this was a clear lesson from the last war. Under
this approach the burdens of war costs on our al-
lies, excluding items of postwar civilian use, were
not to necessitate huge payment transfers from
them to the United States in the postwar period —
June 22, 7947
transfers which they clearly are not able to make
and we are not eager to receive. There were to be
no inter-Allied debts whereby other countries paid
the United States for the material aid provided
for war purposes. This lend-lease settlement
policy was a great step forward towards economic
recovery.
Under the postwar economic plan, four im-
portant international institutions were to be estab-
lished— two to bring about economic recovery and
two to provide a basis for a more abundant life
in the future. The first institution was UNEEA,
established to provide relief on a non-reimburs-
able basis to the citizens of countries which could
not themselves provide the basic necessities of life
and which did not have adequate resources with
which to purchase them abroad. Its purpose was
essentially to maintain life, although it did dis-
tribute some basic rehabilitation items like trac-
tors and sewing machines. It also assisted in the
repair of railroads, bridges, and the like, without
which even relief supplies could not be distributed
within the countries involved, and in the restora-
tion of other equally essential facilities. However,
it was primarily a relief organization with food
the chief element in its program.
The second new institution was to be the- Inter-
national Bank for Eeconstruction and Develop-
ment. One of its functions was to provide credits
to repair the extraordinai-y damage done by the
war. It was obvious that the destruction was
tremendous. In fact, destruction is the objective
' Delivered before the American Marketing Association
at New Yorl£ on June 12, 1947, and released to the press
on the same date. Jlr. Thorp is Assistant Secretary of
State for economic affairs.
1235
TH£ RECORD Of THE WEEK
of global war, where the effort is not directed ex-
clusively at the military forces of the enemy but
at the whole fabric of production and transporta-
tion by which the militaiy is supported. The
Bank would make long-term loans for rebuilding
factories, harbors, railroads, and the like. The
facilities of the Bank were to be available, of
course, not solely to the war-devastated countries
but also would be used for development purposes
in other countries. On the basis of resources and
guaranties of all member countries, it would, as
an international agency, tap various sources of
investment and give reconstruction and develop-
ment credits to governments and to government-
sponsored borrowers.
These two organizations, UNRRA and the
Bank, were thus to deal with the financial needs of
the war-devastated countries during the early
postwar period — the first meeting the relief needs
in insolvent situations and the second providing
credits which might be transformed into the
physical capital needed to recover from the
devastation of global war and to encourage
economic progress in underdeveloped areas. It
was, of course, the hope that private investment
would resume its historic role once the critical
period had been passed.
The two remaining institutions, the Inter-
national Monetary Fund and the International
Trade Organization, were to assure a living and
expanding pattern for the new postwar world. It
was clearly recognized that they could not func-
tion with full effectiveness at once, but would in-
crease in significance as recovery brought the
economic situation more nearly into balance. The
first was to offer some assurance that currencies
would be convertible and to provide a means of
stabilizing currencies and to do away with dis-
criminatory financial arrangements, thus reducing
the monetary hazard in the exchange of goods
across national boundaries. The second was to
deal with the problem of reducing public and
private barriers to trade and to abolish trade dis-
criminations. This was planning for the long
run rather than the immediate postwar period.
These institutions rested on the conviction that,
in a world with currencies and commodities readily
exchangeable, foreign trade would expand, the
goal of easy access to materials and markets would
be achieved, and we could all benefit from a more
1236
efficient use than ever before of the world's re-
sources— men, machines, and raw materials.
These four institutions provided the framework
for the postwar economic plan. It was a revolu-
tionary plan. It established international respon-
sibilities where they had never existed before, and
it still is the framework within which we must
hope that a better future can be achieved — ^but it
is now two years since the end of the war and
the hoped-for economic recovery of the world has
not yet been accomplished. It is not even just
around the corner. In too many countries people
are still at or below the subsistence level. Com-
modities of all types are still in short supply.
Prewar production figures still look like distant
goals. And the spirit of man in many ai'eas is not
one of excited and enthusiastic recovery with high
hopes ahead, but of weariness, hunger, and dismay.
This is evident not merely in the economic field
but in the political field as well. Men who go to
bed hungry are not too critical of those who make
glittering promises, and wide swings of political
emotion seem to be somehow related to economic
misery.
A first superficial explanation of the gloomy
economic picture might be that the failure lies in
the fact that the international institutions them-
selves were too slow in getting under way. That
certainly cannot be said of UNRRA. In fact, its
full and active life is nearly over. It was ready
to function as soon as the military operations
ceased, and for two years it has provided relief at
close to the limit of available supplies. Thou-
sands of people are alive today who would have
died without its help. On the other hand, the
International Bank, scheduled to carry the brunt
of the reconstruction, made its first loan early in
May of this year. Its organization problems wei'e
many, and consequently it has been a minor factor
in the picture up to the present. The Fund is
only beginning to function, and the Trade Organ-
ization is not yet organized, but neither of these
institutions was designed to be a major contribu-
tor to immediate recovery.
However, the delay in the operation of the Bank
cannot be the explanation of the delay in recovery
because various individual governments, particu-
larly that of the United States, stepped into the
breach. In addition to participation in the inter-
national institutions, the United States lias com-
mitted itself to foreign grants and loans totaling
Department of State Butletin
about 13 billion dollars. Of this amount, close to
9 billion dollai-s has already been spent. Other
countries, like Canada, also extended credits to
less fortunate countries to help them over the
critical period.
This total figure of 13 billion dollars is the sum
total of a number of different operations. It in-
cludes loans made by the Export-Import Bank
and the loan to the United Kingdom specifically
authorized by Congress. It includes the dollar
credits representing far greater amounts of goods
on a cost basis, transferred in the form of the post-
war lend-lease civilian goods pipeline, as surplus
property, and as sales of merchant ships. It in-
cludes civilian supplies distributed in the occupied
areas and special assistance to the Philippine
Republic and to China. Wliile these operations
are recorded in dollar terms, in actual fact they
represent almost entirely commodities and services
made available by the United States to the
economies of other countries.
Nevertheless, in spite of this volume of credits
and grants the critical period continues. It ap-
pears that the problem was more than one of pro-
viding bare subsistence and of replacing machines
and mortar. The economies were disrupted and
disorganized. Not merely fixed capital but work-
ing capital was absent. And the great shortage of
goods was itself a deterrent whose effects were felt
everywhere. Absence of goods in the market place
removed the incentive to produce for the market.
What could the farmer buy who brought his goods
to the city? Why should the coal miner work six
days if he could buy his allowed ration with three
days' work ? Better that he stay home and repair
his house or, even better, travel to his cousin on a
farm to get some additional food. The shortage of
food and the shortage of coal set the limit on the
possibility of recovery, and other bottlenecks at
various points keep emerging from the postwar
disorganization.
The situation is full of vicious circles. The
shortage of goods in foreign countries greatly
limits the iDossibility of their exporting goods — a
process so necessary for the obtaining of materials
and finished products by countries which cannot
possibly be fully self-sufficient. Their need is for
imports, but the normal processes for obtaining
imports are restricted by the absence of goods to
export.
THE RECORD OF THB WBEK
To be sure, the situation is better than that of
two years ago. People are alive who could not
have survived without outside aid. And bridges
have been rebuilt ; railroads are functioning ; traffic
is able to move on the rivers; more people have
roofs over their heads; and many factories are at
least in part able to produce when the necessary
ingredients for production are at hand. But it is
not the recovery which had been devoutly hoped.
It is still a grim picture with dark overtones.
We should feel thankful but not gratified to com-
pare this picture with that of the United States.
Our capacity to produce is greater than ever be-
fore, and we have been producing at record levels.
To be sure, a substantial part of that production
has gone to foreign markets. However, when
compared to total production the percentage is not
greater than our volume of exports of the past, for
both are at record high levels.
In substantial measure, therefore, American
production has been supporting the economies in
other countries. In 1946 our exports of commodi-
ties and services were steadily increasing and
totaled almost 15 billion dollars for the year. The
total for the first three months of 1917 was 4.9
billion dollars, or an annual rate of nearly 20 bil-
lion dollars.
This is a tremendous amount. In the month of
May, for example, we sent 427 ships to Europe
loaded with coal— about 3,800,000 tons. Without
this specific aid the European economy would vir-
tually collapse, for its own coal production is far
below prewar levels. Similarly, shipments of
wheat and flour have required a tremendous fleet
to keep the flow of food to the various countries
of the world at levels far above those of earlier
years.
To the American businessman and the farmer,
the foreign market has been booming. There is no
question about the need on the part of the purchas-
ers. But the significant part is that it has been
to a large degree a supported market — supported
by the American Government. As far as the indi-
vidual businessman is concerned, the situation, on a
much smaller scale, resembles the activity of the
war period when the Government provided him
with a market. The present foreign market is like-
wise in large part the creation of the United States
Government.
To be more specific, in 1946. according to the
June 22, 1947
1237
THE RECORD OF THE WEEK
estimates of the Department of Commerce, we
sent abi-oad about 15 billion dollars of goods and
services. During the same period we imported
about 7 billion dollars of goods and services. That
left 8 billion dollars still to be paid for. Of this
deficit, 2 billion dollars was paid for by gold or
other assets belonging to foreign countries. The
remaining 6 billion dollars is the measure of U.S.
aid — about half in the form of grants and half in
the form of loans. As far as the individual busi-
nessman or shipping man was concerned, he re-
ceived full payment. However, in the last analysis
about two fifths of the settlement was with funds
originating in the U.S. Treasury.
This 15 billion dollar record summarizes the
1946 picture of the exports of goods and services
from the United States to all the rest of the world.
As I have said, imports were much less, leaving
a substantial gap. Slightly more than two thirds
of the total gap between commodity exports and
imports arose from our trade with Europe. In the
prewar years, our shipments to Europe exceeded
our purchases by close to half a billion dollars per
j'ear but, as compared with prewar, our exports
to Europe today have increased far more than im-
ports from there. For the rest of the world,
where our exports and imports used to be approxi-
mately equal, today there is a substantial excess of
American exports over imports. Thus, while the
European economic situation is undoubtedly more
critical, the same general problem appears in the
balance of payments everywhere. And even the
Far East, which used to be a substantial net sup-
plier, has also shifted to a deficit position.
The situation in recent months is even more out
of balance. Using the rate recorded in the first
quarter of 1947, the annual rate of exports is about
20 billion dollars. Against that can be set 8 billion
dollars of imports. At the first quarter's rate, the
projected year's payment made by assets of foreign
countries would be 4 billion dollars and the balance,
which would have to be filled by grants or credits,
about 8 billion dollars. There were special factors
in the first quarter which make it doubtful as to
whether it will be typical of the entire year. Per-
haps the 1946 gap of 6 billion dollars is more real-
istic as a forecast for 1947. However, that rests
on the assumption that there will be no major
adjustments in other items in the trade balance.
Of course, the balance of exports and imports,
including the so-called invisible items, may be
1238
achieved by adjustments in any of the items, so I
the various elements should be reviewed. It is
highly improbable that commodity imports to the
United States can be greatly increased in the im-
mediate future. In a world of shortages in other
countries this is difficult to accomplish. To be sure,
as the raw material areas of the Far East resume
their activity, there can be further advances, and
as the more industrialized countries resume their
specialty production, shipments to the United
States may increase. However, this is a slow
process and probably will be timed along with
the general recovery rate of the rest of the world.
As to the gold or other liquid foreign assets
available for use as payment, these resources are
decidedly limited in amount and are held in large
part in countries where the pressure of an un-
favorable balance is not so great — countries like
Switzerland. Nor can they be used to any great
extent without jeopardizing the currencies against
which they act as a reserve. The possibility of
something like the figure of 4 billion dollars in
1947 from this source is therefore very doubtful
and certainly cannot be repeated for several years
in the future.
Consequently the situation narrows down to a
very specific alternative. Either the rate of Amer-
ican exports to other countries must be reduced or
the payments gap must be filled by credits or
grants. Of course these are not mutually exclu-
sive solutions. But they are interdependent — the
more of one, the less of the other, and vice versa.
There are various signs that the present situa-
tion will lead in jDart to increased restrictions
against American goods by foreign countries, in
an effort to husband their resources in hard cur-
rencies and to make sure that only essential im-
ports are permitted. Thus the tobacco tax in the
United Kingdom was inspired in large part by
the desire to save dollars. The import restrictions
imposed by Sweden in March were clearly in-
tended to halt the drain on her resources resulting
from the high level of imports from the United
States. The American motion picture industry has
come under particular pressure by various coun-
tries to make arrangements which would not lead
to a fiow of dollars fully corresponding to net
earnings.
Undoubtedly, some reductions can be made in
American exports without seriously jeopardizing
the processes of recovery. However, it must be
Department of State Bulletin
remembered that many of the apparently non-
essential items act as incentive goods in the other
countries, providing a kind of pump-priming for
the process of production and exchange.
Such restrictions as foreign countries may place
on purchases in the United States will probably
be operated to limit transactions to the supply of
available dollars and not to endeavor to accumu-
late dollars. Therefore, it seems clear that the
level of our foreign trade in the immediate future
will be largely determined by the volume of Amer-
ican aid and assistance. At the moment, there re-
main less than 5 billion dollars of unused govern-
mental commitments, plus the resources of the In-
ternational Bank and Fund. However, much of
these funds are restricted as to use or limited to
a particular area or both — the new grant of 350
million dollars is limited to relief purposes within
a rather elaborate set of conditions, and the 400
million dollars can be used only for Greece and
Turkey, and the 1.8 billion dollars not yet drawn
down by the British under the British loan agree-
ment is obviously only available in the first in-
stance to the United Kingdom.
One certainly should not disregard the Interna-
tional Bank as a factor in the situation. It has
begun to extend credits and can take much of the
responsibility for reconstiniction requirements in
the future. However, its resources cannot be used
for such immediate necessities as food and other
consumers' goods. It is essentially an institution
for aiding the purchase of capital goods. This is,
of course, a prime function. However, one of the
serious flaws in the original plans was the failure
to realize how extensive would be the requirements
for commodities of the general class of consumers'
goods and raw materials, both in terms of volume
and in terms of the higher price level. And this
in turn was the result of the failure to take into
account all the economic, political, and psycho-
logical factors which have delayed the recovery of
productivity.
Reviewing all the sources of payments now in
sight, it is obvious that they will not support the
present level of exports from the United States
for any considerable period of time. On the other
hand, failure to continue essential exports for the
critical period will undoubtedly result in a serious
setback to the process of recovery. Thus the
longer-range future of foreign trade is greatly de-
THE RECORD OF THE WEEK
pendent upon the nature of developments during
the next several years. And, in turn, absence of
improvement in other countries will be a persistent
drag upon our own economic system.
It would be completely erroneous to create the
impression that the problem of economic recovery
throughout the world is merely one of American
dollars or American commodities. To be sure,
that is the type of assistance which we have been
providing, but much more than dollars is needed.
For example, consider the food situation. Amer-
ican wheat cannot be, in a sense, more than a stop-
gap. The basic problem is the recovery of agi'i-
cultural production in France, Italy, Siam, Japan,
and all other countries themselves. To some ex-
tent, American dollars can help when expressed in
terms of fertilizer, seeds, and agricultural imple-
ments. But the problem is so much more than
that — a problem which the local authorities must
deal with — a problem of getting the farmer and
the land to maximum productivity. This does not
mean, of course, that each country should try to
be self-supporting in food — that would be most
uneconomic. But the present levels of output, ap-
preciably below the prewar levels in many areas,
represent a problem which must be tackled by the
various governments and the appropriate inter-
national organizations. This problem cannot be
solved for other countries by the United States
except as we can help others to help themselves.
It is so much more a matter of internal domestic
policies than of outside aid. It is not merely a
question of scientific agriculture, but one of eco-
nomic organization. Future planning in the food
field involves a reconsideration of compulsory col-
lection systems, rationing, open markets, and price
structures, all in relation to such incentives as may
be required to raise production sharply. It in-
volves questions of domestic priorities and support.
These are all matters in which the domestic policy
of each country is paramount and where vigorous
and carefully planned action is vitally needed. It
is to be hoped that the Conference of Food Min-
isters scheduled to begin in Paris on July 9 will
make substantial progress in dealing with these
problems.
To take another type of case where American
assistance can be effective only if internal policies
are propitious, an illustration can be found on the
other side of the globe in Indonesia. Here in the
June 22, 1947
1239
TH£ RECORD OF THE WBEK
East Indies are customary sources of raw materials
needed by the rest of the world and presently in
great demand — rubber, sugar, copra, and many
other tropical itejns. Nevertheless, there is no
flow — the volume is a mere trickle of what it could
be. A new set of political arrangements is being
painfully constructed, and during the process no
economic progress has been possible. There is rea-
son to hope that an interim modus vivendl can be
set up, although this is difficult because of the fear
that any temporary arrangement might prejudice
the final settlement. Under these conditions, pro-
duction elsewhere in the world is retarded and
the needed reconstruction in the area itself is not
moving forward. This case is merely an example
of a condition which is widespread, though in dif-
fering degrees. Political controversies all too
often are responsible for confusion and disorgani-
zation in the economic field. During the war,
political differences were subordinated to the basic
objective. Now the over-riding objective must
be economic recovery. Unless this is clearly recog-
nized by a nation and its people as their basic pur-
pose, it is hard to see how outside assistance can
be fully effective.
In five countries the United States has a special
responsibility with respect to the kind of internal
policy which I have been discussing — the cases
of the ex-enemy states of Germany and Japan, the
liberated states of Austria and Korea, and the
special instance where we have accepted a major
role for a limited period, Greece. These coun-
tries represent an important part of the world's
economy. There can be no question but that the
failure of Germany to make substantial progress
in productivity has held back the processes of
European recovery in general. Germany used to
be a major element in the pattern of European
trade, and her coal, steel, and machinery were
basic to other European countries. There have
been various factors holding back her progress, the
most important of which was the degree of destruc-
tion and disorganization resulting from the war.
The fundamental economic requirements in all the
cases are no different from those of the victorious
countries, except perhaps in degree. And the
interdependence of modern economic life makes
it necessary for recovery to be general in order to
be specific.
This is not a happy picture. The war was more
detructive of the economic machine than had
been realized. After the last war, it took seven
years for the world to get back to its prewar level
of operation. The United States gave its assist-
ance then through an unorganized process of pri-
vate so-called investment. It is obvious that the
destruction and disorganization created by World
War II was much more extensive, and recovery
and reconstruction correspondingly difficult.
This is the problem of the immediate future.
On its answer depend both the short-run and long-
run possibilities of foreign markets for American
goods. More broadly, on it depend the short-run
and long-run prospects for stability and security
in the war-torn world.
The answer cannot be given solely by the United
States. After all, the fundamental steps towards
recovery must be taken by other countries. How-
ever, it is important to us that they do recover, and
as quickly as possible. We aided them during the
war because we were clearly agreed on our great
objective and were following a common plan for
its accomplishment. If there can be a clear indi-
cation of a joint effort to achieve recovery, we
should continue to be generous with our support.
In the long run the cost will be relatively small,
and the enormous dollar and cents dividends will
be far exceeded by the intangible item of good will.
That is the entry which the accountants use to
represent the increased value of economic assets
when they take the form of a "going concern".
But good will is more than an accounting phrase.
Although it is frequently omitted from the finan-
cial balance sheet, it is perhaps the most important
item in the balance sheet of the world. Good will
cannot flourish in an atmosphere of economic dis-
order. Not only is it important for the world to
be a going concern, but in one of the greatest ex-
pressions of hope in the Bible, good will is
intimately related to "peace on earth".
Confirmation to the Diplomatic Service
The Senate on June 10, 1947, confirmed the nomi-
nation of Emmet O'Neal to be Ambassador Extra-
ordinary and Plenipotentiary of the United States
of America to the Republic of the Philippines.
Corrigendum
In the Bulletin of May 4, 1947, page 812, add
the date April 19, 1947, to the note from the Soviet
Minister for Foreign Affairs to the Secretary of
State.
1240
Deparfmenf of State Bulletin
Promotion of World Understanding Through
Transport and Communications
BY ASSISTANT SECRETARY NORTON'
Our most compelling desire in international re-
lations today is to lay the foundations for endur-
ing peace. Widespread understanding between
all peoples must be the bedrock upon which our
stnicture will rest. The fullest possible use of
world-wide systems of transport and communica-
tions is essential to the development of human un-
derstanding. My purpose today is to discuss our
international transport and communications pol-
icy in tlie light of these basic facts.
It is most appropriate for citizens of the United
States to emphasize the development of transport
and communications as a means to the achievement
of human understanding. Here in the United
States, transport and communications have given
us unity in our diversity. Our extensive national
domain is greatly varied in its topogi-aphy, cli-
mate, and resources. As citizens, we are a people
of many origins. Our local interests, economic,
political, and cultural, differ greatly. All the ele-
ments of sectional cleavage are with us. They are
manifested in our arenas of political and economic
contest. But above and beyond this, we are citi-
zens of an integi-ated and united nation, a fact
that has been made clear to the confusion of our
enemies.
Widespread and ready travel, vast and expe-
ditious movement of commerce, rapid and efficient
communication of information and ideas: these
are outstanding features of life in the United
States. You might almost call this development
of transport and communications an obsession of
ours, from the early days of coastwise shipping
and post roads to our present pattern of roads,
railroads, inland and coastal waterways, sea and
airways, and our network of telephone, telegraph,
and radio circuits. But it is this mobility, this
exploitation of every possibility for improvement
of transport and communications, under policies
fostering competition and equality of opportunity,
which have made possible the achievement of na-
tional unity in our great diversity.
June 22, 1947
Now we have come to a position of world leader-
ship and, with little choice on our part, we are
drawn into the turmoil of a world which has not
developed the degree of human understanding we
have achieved at home. After immersion in two
world wars, we find ourselves in a world of dis-
cord and confusion. We realize that for better or
worse our fate is interwoven with the fate of that
world. Finally, with leadership has come knowl-
edge of how small and dangerous a world it is,
how directly the acts of others affect us, and our
actions affect them. To preserve our nation we
led the world in the development of destructive
weapons ; to preserve the world we must now lead
in the ways of peace.
Having ourselves achieved unity in diversity,
we recognize no ultimate reason why the world
cannot do likewise. Against the background of
our own development, we approach the problem of
world unity and understanding with confidence.
We have achieved nation-wide understanding and
order under law; we are confident that this can
also be achieved globally. As we become more in-
timately acquainted with the world's problems, as
we discover the currents and cross-currents of pur-
poses, opinions, and compelling circumstances
which determine the behavior of this shrinking
world, we recognize the difficulties of the problem
we face. But we do not lose courage or faith ; we
do not seek to crawl back into a shell of isolation ;
we do not forsake our essential purpose of achiev-
ing a structure of world-wide understanding and
orderly settlement through the economic and
social well-being of all nations. We maintain our
faith in the principles of the United Nations and
we continue to act on the basis of that faith. We
know that the only ultimate answer to our world's
present turmoil, hunger, and fear is the develop-
' Delivered before the Twenty-Fifth Annual Convention
of the U.S. Junior Chamber of Commerce at Long Beach,
Calif., on June 12, 1947, and released to the press on the
same date. Mr. Norton Is Assistant Secretary of State
for transport and communications.
1241
THE RECORD OF THE WEEK
ment of understanding between the peoples of the
world. With such understanding, practical forms
of cooperation can be worked out. We can give
meat to the bones of the United Nations.
This is the background for the conduct of our
foreign policy, within the framework of which are
to be found our specific objectives in transport and
communications. These policy objectives con-
template that world-wide facilities for the move-
ment of goods, persons, and ideas should be de-
veloped and made available to all peoples. In
seeking the achievement of these objectives we
must be practical and adapt our actions to the cir-
cumstances of time and place, but in its entirety
and general direction we must never lose sight of
our basic policy.
This will explain why, from a more narrow
point of view, decisions of the Department of
State may in cei'tain instances appear unreason-
able or against some specific American interest.
For example, a refusal to support an exclusive for-
eign contract which would enable an American
airline to achieve a discriminatory or monopolistic
position on a foreign air route is not the result of
any intent to restrict the development of American
air transport abroad, nor does it indicate any lack
of desire on the part of our Government to en-
courage such development by all appropriate
means. It does, however, exemplify the State
Department's determination to avoid in the con-
duct of American foreign policy, as well as to dis-
courage in the conduct by other governments of
their foreign policies, the establishment of monop-
olistic arrangements for international air trans-
port which tend to restrain the development of
economical facilities.
Similarly, when the Department of State favors
the sale to a foreign nationality of merchant ships
surplus to the requirements of the United States,
even though the vessels may be operated in com-
petition with vessels of our own registry, this
does not mean that the Department is opposed to
the legitimate development of an American mer-
chant marine. It is evidence, rather, of the De-
partment's conviction that our aspirations for a
sound merchant marine are not in conflict with the
fundamental policies governing the conduct of our
foreign relations. We see no reason why the de-
velopment of a strong American merchant marine
should require us to impoverish our neighbors
1242
whose maritime interests are vital to their
existence.
Thus it becomes apparent that our basic princi-
ples and procedures in the field of international
transport and communications are the same as
those governing our international economic poli-
cies as a whole. These principles stem directly
from our commercial policy as expressed in the
clauses of our long-standing commercial treaties
providing for unconditional most-favored-nation
treatment. They are harmonious with the subse-
quent expansion of our commercial relations
through the agreements which provide for recipro-
cal reductions in trade restrictions. Our princi-
ples in the field of transport and communications
are in accord with the principles of the charter
for the International Trade Organization now un-
der negotiation at Geneva.
Our international economic policy as a whole
has been so frequently elaborated as to requii-e no
detailed exposition here. Its essential purpose is
to foster the application of the principle of free-
dom and equality of opportunity for economic in-
tercourse between the nations. To accomplish this
purpose we must reduce trade barriers and elimi-
nate discriminations. Where certain restraints on
trade are necessary to safeguard national security,
we must seek methods requiring the minimum of
arbitrary official decision in individual commercial
transactions. In short, our purpose is to go as
far as possible in keeping the conduct of inter-
national commercial affairs in the hands of busi-
nessmen. We know that our system of free enter-
prise cannot stand alone in a world of state mo-
nopolies, cartels, and economic blocs. We must
help a postwar world to recover freedom of en-
terprise, or in self-defense we may be forced to
abandon that system ourselves.
Of course, the complete application of these
principles under contemporary conditions is not
possible. Practical recognition must be given to
present circumstances of economic disorder and
disintegration. Dated in part from the economic
collapses of the years following 1929, and in part
from the effects of the war years following 1939,
these circumstances compel today the maintenance I
of various special measures of control while the
foundations for a more permanent organization of
world economic relations are rebuilt.
Likewise, in matters of international transport
Department of State Bulletin
and communications the essential theme of our
policy is the basic principle of equality of oppor-
tunity and nondiscrimination. We seek to en-
courage the development of transport facilities
through freedom for the energy and skill of com-
petitive private business enterprise. With this
principle in mind we seek to support the legitimate
expansion of transport and communication facili-
ties throughout the world by citizens of the United
States. We do this by methods consistent with the
major principles of nondiscrimination, equality
of opportunity, and encouragement of competitive
private business enterprise, in each case adapted to
the practical facts and circumstances.
International policies affecting ocean shipping
afford an example of the application of our major
principles. If only for reasons of national secu-
rity, the governments of most countries with mari-
time interests traditionally emphasize the develop-
ment of their national shipping activities. By and
large, however, shipping is conducted by private
business enterprise. Since the repeal of the navi-
gation acts in Great Britain just a century ago,
international shipping competition has generally
been conducted under conditions of equality and
freedom in the ports of the world open to foreign
commerce. Flag discrimination, or differential
treatment according to the flag or nationality of
the ship, has been the limited exception. The prin-
ciple of freedom of the seas has been applied to the
conduct of ocean commerce through equality of
treatment at the ports through which that com-
merce flows. In the foreign policy of the United
States this principle is specifically expressed in
he provisions for national and most-favored-na-
;ion treatment of shipping which characterize our
;reaties of commerce and navigation. Except foi
;argoes financed by Government loans, an Ameri-
;an merchant can arrange for the transport by
iea of his imports or exports by the service he finds
nost convenient, regardless of the nationality of
he carrier. Conversely, ships of United States
■egistry may trade in foreign ports open to foreign
;ommerce on equal terms with the ships of the
)ther country or of any third country.
This widespread and traditional application of
he principle of equality of treatment is most im-
portant. It shows that those elements of interna-
ional relations essential to the growth of world
mderstanding, comparable to the development of
lational understanding within the United States,
June 22, 7947
THE RECORD Of THE WEEK
can be developed and maintained. Its application
throughout the world has made it possible for
all nations to reap the benefits of flexible and low-
cost ocean shipping.
The importance of this principle of equality of
treatment warrants and explains our strong op-
position to policies which undermine it. For ex-
ample, the endeavor a quarter century ago to
substitute a policy of flag discrimination for the
policy established in our treaties of commerce and
navigation was resisted and defeated. Similarly,
we oppose now the claim that governmental policy
should compel the transport of our foreign trade,
or some specific percentage of it, in American
ships ; we object now to requiring that export car-
goes financed by Government loans be carried in
ships of national registry.
This does not mean that the legitimate promo-
tion of our national merchant-shipping activity is
in conflict with broader foreign policy. The im-
portance of an efficient merchant marine and an
active shipbuilding industry, both capable of
rapid expansion in time of emergency, is clear.
The experience of two world wars leaves no doubt
as to this. In order to maintain the merchant
marine contemplated by our national shipping
policy, some measures of Government assistance
beyond the exclusion of foreign shipping from
our coastwise and other domestic traffic is neces-
sary. Some aid to offset lower costs of foreign
shipping competing in our foreign trade is requir-
ed. There is no necessity, however, for rendering
this assistance by methods of discrimination or
restriction. It is most significant that the Mer-
chant Marine Act of 1936, the so-called Magna
Carta of the American Merchant Marine, does not
rely upon such methods but rather upon the forth-
right and open principle of direct subsidies cal-
culated to offset cost disadvantages in shipbuild-
ing and operation, to support American shipping
participation on trade routes essential to our for-
eign commerce.
The United States today is in a position of spe-
cial responsibility in international shipping pol-
icy. Wartime shipbuilding at taxpayers' expense
has made the Government of this nation the prin-
cipal shipowner of the world. It is likely that over
the long range a reasonable expansion of our na- *
tional shipping activity above the prewar level
will be maintained in foreign trade. But the
present distribution of shipping tonnage, the re-
1243
THE RECORD OF THE WBEK
suit of wartime shipbuilding and wartime losses,
is accidental. Its continuance imposes a heavy
burden upon the United States program of aid to
economic reconstruction abroad. This program
is designed to place dollars in the hands of foreign
governments to enable them to secure the food,
raw materials, and capital equipment which, be-
cause of the destruction and dislocation arising
out of the war, they are unable to supply them-
selves. Dependence upon United States vessels for
the movement of such exceptional bulk cargoes as
coal and wheat means the use of scarce dollars m
payment of high-cost services. If these foreign
governments had vessels, they could carry these
exceptional cargoes much more cheaply them-
selves. This temporary situation does not con-
tribute to reconstruction abroad, but seriously
burdens our efforts to assist that reconstruction.
Thus it becomes evident that the advantages to
our national shipping of restrictive ship-disposal
policies are limited and temporary. By under-
mining the prospects for the restoration of vigor-
ous and profitable commercial intercourse, we also
undermine the long-range prospects of the Ameri-
can Merchant Marine.
In matters of inland transport abroad, the
United States has definite policies which it seeks
to promote within the framework I have outlined
to you. The United States encourages the devel-
opment of inland transport facilities abroad. An
outstanding example is to be seen in our relations
with our neighbors of the Western Hemisphere,
in the support and assistance we extend toward
the completion of the Pan-American highway
system. In Europe we have actively participated
in the rehabilitation of the war-torn transport
systems of that continent. The restoration of
equality of opportunity and freedom of naviga-
tion on the international waterways of Europe,
notably the Khine and Danube, may seem some-
what remote from the national interests of the
United States. Our interests are more, however,
than simply that implied by our position as an
occupying power in Europe; the restoration of
conditions which permit the revival of commerce
along these waterways, with freedom of navigation
• guaranteed to all who use them, is necessary to the
reconstruction of a peaceful and prosperous
Europe.
In aviation, the youngest and perhaps the most
1244
vigorous giant of modern transportation, our
basic policies are also adapted to special circum-
stances. As between international surface and
air-transport policies, several differences are to
be noted. In the first place, while ocean shipping
terminates at seaports, international air services
penetrate far into national territories, and overfly
territories in between. Obviously, therefore, the
conditions making possible the freedom of ship-
ping through freedom of maritime ports do not
make possible a similar degree of freedom in the
air. In the second place the development of air
transport is occurring under conditions conducive
to scheduled operations along specific routes, in
contrast with the world-wide tramping operations
which are more important to the development of
modern ocean shipping. In the third place,
whereas the principles of freedom of navigation
and national and most-favored-nation treatment
of shipping in ports open to foreign commerce
developed concurrently with a period of freedom
for international business enterprise, the modern
development of international air commerce coin-
cides with a postwar period characterized by
tendencies toward governmental control. In the
fourth place the position of the American air-
transport industry in international competition is,
at present at least, reversed from that of our ship-
ping industry. From the springboard of inten-
sive development of air services by our competing
domestic operators over widespread national ter-
ritory, our international air carriers find them-
selves well ahead of their foreign competitors.
Our position in this respect is improved by our
experience during the war. I need not remind
this audience of the role we played, alone among
the nations of the world, in the transportation of
troops and equipment by air.
The policies of the United States in the conduct |
of international relations involving air services,
while taking these differences fully into account,
are entirely in line with our basic principles.
They seek the development of efficient air services
with full opportunity for competitive private
enterprise. Within this framework they include
vigorous support to the development of competi-
tive American airline services on all international
air routes of importance, comparable in purpose
to the support given to American flag participa-
tion in shipping services on our essential trade
routes.
Department of State Bulletin
Our preference was, and still is in principle, for
the adoption of multilateral procedures in inter-
national air transport. However, our efforts to
achieve multilateral agreement were not successful,
and we found it necessary to proceed by the method
of bilateral negotiations with individual govern-
ments. It became evident that the world was not
ready for a multilateral approach to air transport,
and that our rigid adherence to this ideal could
only hamper the practical development of our es-
sential objectives. Substantial progress has been
and is being made in the more restricted bilateral
approach. This explains why, despite our prefer-
ence and continuing desire for a satisfactory multi-
lateral agreement, we have negotiated 30 individual
agreements with foreign countries and are in the
process of negotiating more. We emerged from
the war as the only nation ready, able, and willing
to fly on a large scale internationally. We wanted
to get going, and we did it by the individual agree-
ment route as the only one available to us.
In policies relating to international telecom-
munications our broad aims are likewise adapted
to the practical circumstances. Our emphasis
upon development of our national communications
has given us a position of leadership and strong
competitive standing. One factor must be borne
in mind, however, recognition must be accorded to
a peculiar aspect of certain communication services
such as the telephone, where the best service at
lowest cost necessitates acceptance of a greater de-
gree of monopolistic operation than is ordinarily
acceptable from our American viewpoint. Like-
wise in the field of radio communication, the in-
escapable fact of limitations of frequencies or wave
bands must be recognized. Although these are in
a sense capable of enlargement through increasing
technical perfection, this trend is offset by the ex-
panding variety of uses clamoring for the alloca-
tion of frequencies.
These considerations necessarily condition our
approach to foreign policy in the field of inter-
national telecommunications. But our essential
aims remain in line with the general pattern.
When contracts are let for the installation or im-
provement of communications systems abroad, we
seek to assure that the conditions of bidding are
fair and open and allow equal opportunity for
American enterprise along with other competitive
foreign enterprise. In the exploitation of inter-
June 22, 1947
THE RECORD OF THB WBBK
national communication systems, we seek to assure
the development of American facilities to provide
direct services wherever the traffic is of sufficient
importance to our interests to warrant such serv-
ices. In general, we seek to promote the most effi-
cient use of the technical resources available. We
believe that the operation of international tele-
communications systems should be open and free.
No private or national interest should be allowed
to impair the contribution that such systems can
make to international contact and world under-
standing.
So much for the general principles underlying
our policies in international transport and com-
munications, and the practical considerations
wliich guide us in their application. I will close
with a word on the ^jrocedures we follow. Many
problems must of course be the subject of direct
discussion and negotiation with individual foreign
governments. Generally, however, pursuant to our
aim of developing a world-wide system of agree-
ment under law, we favor dealing with multilateral
questions by multilateral conference. By this
means all parties at interest may have opportunity
to make known their position, their needs, and their
aims. To understand the position of others and
to discover areas of agreed compromise among
many nations is not easy. Multilateral confer-
ences, to be successful, require minute preparation
to overcome difficulties that seem at first glance
insuperable, followed by diligence and patience
around the conference table. No single confer-
ence accomplishes everything desired ; it can only
be a step in the right direction. To be effective,
moreover, its scope must be defined and limited to
the practicalities of the occasion.
This is why there are so many international con-
ferences today, varied in their subject matter and
repeated in their endeavors. The list of recent,
current, and prospective conferences in the field
of international transport and communications
which I could read to you would be a long one. The
European Central Inland Transport Organization
meets in Paris this month; the Committee of
Transport Experts of the Economic Commission
for Europe was recently convened in Geneva ; the
Fifth Pan American Highway Congress will meet
in Lima next October. The Transport and Com-
munications Commission of the United Nations
meets for its second session at Geneva next Novem-
1245
THE RECORD OF THE WEEK
ber. The Joint Maritime Commission of the In-
ternational Labor Organization meets at Geneva
in late September. The First Assembly of the
International Civil Aviation Organization met in
Montreal last month. An International Telecom-
munications Conference is currently in session at
Atlantic City. These are just a few examples,
picked at random, to suggest the multitude and
variety of conferences, subjects, and places of
meeting in which the United States has interests
in the field of international transport and com-
munications.
Our participation and influence in these confer-
ences involves one element of outstanding impor-
tance which warrants concluding mention here. I
refer to our effort to promote and develop the
structure and application of the United Nations.
Some of these conferences are under the auspices
of the United Nations; others are not. This de-
notes no half-hearted support of the United Na-
tions; on the contrary it evidences only the prac-
tical character of our attempt to broaden the de-
velopment of world organization under the aus-
pices of the United Nations. Attempts to settle
international problems by international confer-
ences are of long standing and have resulted m
the establishment of a number of successful or-
ganizations. It would obviously be foolish to wipe
these all out, and abandon the progress heretofore
made for the sake of making a fresh start. Our
policy is to maintain the organizations already es-
tablished and to influence their affiliation with the
growing structure of the United Nations. Thus, at
the first conference of the International Civil Avi-
ation Organization recently held at Montreal, an
important endeavor of the United States and a
principal achievement of the conference was agree-
ment to bring that organization into prescribed
relations with the United Nations. Again, in the
part we have been playing in the formulation of
objectives for an over-all shipping organization,
our effort has been primarily directed to the de-
velopment of such an organization under United
Nations' auspices, while at the same time accepting
the progress that has been made in the field
through other channels.
I have tried to show you today how an essential
element of our foreign policy, that of transport
and communications, is directed to the promotion
of world understanding. Our hope for the future
lies in developing techniques for reconciling the
differences between peoples. We believe that
transport and communications, exploited on a
global scale in the interest of mankind, can do
for the world what they have done for our own
country. But let us remember that the achieve-
ment of world understanding is an objective of
our entire foreign policy. The wheel of human
affairs has turned, and today we are leaders,
whether we like it or not. We can do for the world
what we have done for ourselves. If we show the
way without fear or favor, the world will follow
us.
'^ Bulletin of Dec. 5, 1942, p. 978.
1246
U.S.-Canadian Cooperation — Continued fmm page 11 9S
tageous economic relations between them and the
betterment of world-wide economic relations.
"To that end the Governments of the United
States of America and of Canada are prepared to
cooperate in formulating a program of agreed ac-
tion, open to participation by all other countries of
like mind, directed to the expansion, by appropri-
ate international and domestic measures, of pro-
duction, employment, and the exchange and con-
sumption of goods, which are the material founda-
tions of the liberty and welfare of all peoples; to
the elimination of all forms of discriminatory
treatment in international commerce, and to the
reduction of tariffs and other trade barriers; and,
in general, to the attainment of all the economic
objectives set forth in the" Atlantic Charter.
They agreed further that they would "seek to
furnish to the world concrete evidence of the ways
in which two neighboring countries that have a
long experience of friendly relations and a high
degree of economic interdependence, and that
share the conviction that such reciprocally bene-
ficial relations must form part of a general system,
may promote by agreed action their mutual inter-
ests to the benefit of themselves and other coun-
tries." "
The United States and Canada in recent years
have succeeded in doing this to a remarkable
degree.
Department of State Bulletin
i
Procedure for Joint Commission Consultation With Koreans
[Released to the press June 12]
There follows the text of the decision reached by
the Joint (U.S.-U.S.S.R.) Commission in Korea
on June 7 and published in Korea on June 12, es-
tablishing the procedures for joint commission
consultation with Korean democratic parties and
social organizations to which the Secretary re-
ferred in his press conference on June 12 :
1. In consulting with Korean democratic par-
ties and social organizations, the Joint Commis-
sion shall be guided by the conditions stated in the
letter of Minister of Foreign Aifairs of the
U.S.S.R., V. M. Molotov, of May 7, 1947,^ and ac-
cepted by the Secretary of State of the U.S.A.,
George Marshall, in his letter of May 13, 1947.^
The appropriate quotation from the letter of For-
eign Minister Molotov is given below :
The Soviet Commander in his letter of November 26,
1946, advanced the following proposals as a basis for
the resumption of the work of the Joint Commission :
"1. The Joint Commission must consult those demo-
cratic parties and organizations which uphold fully the
Moscow decision on Korea.
"2. Parties or social organizations invited for consulta-
tion with the Joint Commission must not nominate for con-
sultation those representatives who have compromised
themselves by actively voicing opposition to the Moscow
decision.
"3. Parties and social organizations invited for con-
sultation with the Joint Commission must not and will
not voice opposition nor will they incite others to voice
opposition to Moscow decision and the work of the Joint
Commission. If such be the case, .such parties and social
organizations by mutual agreement of both delegations
will be excluded from further consultation with tlie Joint
Commission."
The American Commander in his letter of December
24, 1946, agreed to accept these proposals of the Soviet
Commander with the following changes as the basis for
the re.sumption of the work of the Joint Commission :
"Proposal number 1 to be interpreted as follows : sign-
ing the declaration in communique number 5 will be ac-
cepted as declaration of good faith with respect to
upbiilding fully tlie Moscow decision and will make the
signatory party or organization eligible for initial
consultation.
"Proposal number 2, I consider it the right of a de-
clarant party or organization to appoint the representative
June 22, 1947
which it believes will best present to the Joint Commission
its views on tlie implementation of the Moscow decision.
"However, should such representative for good reason
be believed to be antagonistic to the implementation of the
Moscow decision or to either of the Allied powers, the
Joint Commission may, after mutual agreement, require
the declarant party to name a substitute spokesman.
"Proposal number 3, it is suggested that it be reworded
as follows: individuals, parties and social organizations
invited for consultation with the Joint Commission should
not after signing the declaration contained in communique
number 5 foment or instigate active opposition to the work
of the Joint Commission or to either of the Allied powers
or to the fulfillment of the Moscow decision.
"Those individuals, parties and social organizations
which after signing the declaration contained in communi-
que number 5 do foment or instigate active opposition to
the work of the Joint Commission or to either of the Al-
lied Powers or to the fulfillment of the Moscow decision
shall be excluded from further consultation with the Joint
Commission.
"The decision excluding such individuals, parties and
social organizations shall be by agreement of the Joint
Commission."
With a view to expediting the rcisumption of the work
of the Joint Commission and the creation of a temporary
Korean democratic government, I am prepared to accept
the amendments set forth above proposed by the Ameri-
can Commander.
2. The Joint Commission will consult with
Korean democratic parties and social organiza-
tions which are truly democratic in their aims and
methods and which will subscribe to the following
declarations :
We declare that we will upliold the aims of the Moscow
decision on Korea as stated in paragraph 1 of this de-
cision, namely : the reestablishment of Korea as an inde-
pendent state, the creation of conditions for developing
the country on democratic principles, and the earliest pos-
sible liquidation of the disastrous results of the protracted
Japanese domination in Korea.
Further we will abide by the decision of tlie Joint Com-
mission in its fulfillment of paragraph 2 of the Moscow
decision in the formation of a provisional Korean demo-
cratic government.
Further we will cooperate with the Joint Commission
in working out by it with the participation of the pro-
visional Korean democratic government, of proposals con-
' Bulletin of May 18, 1947, p. 995.
' Bulletin of May 25, 1947, p. 1043.
1247
THE RECORD OF THE WBBK
cerning measures foreseen by paragraph 3 of the Moscow
decision. Signed by , representing the
party or organization.
3. Democratic parties and social organizations
of northern and southern Korea are hereby in-
vited to submit their applications for participa-
tion in consultation with the Joint Commission.
Every party and organization must submit only
one application through its central zonal organ.
The application should be accompanied by a
copy of the declaration given in paragraph 2
above duly signed and sealed with the seal of its
central organ and also signed by the designated
representative. The application shall contain the
following information :
(a) The full name of the party or organization,
the address of its central office, the date of estab-
lishment, the membership number and location of
branches, and total membership.
(h) The full name of a designated representa-
tive given in Chinese characters and, where pos-
sible, in English and Kussian translation, the place
and home address. Applications for participation
in consultation shall be submitted to the Joint
Commission at address in Seoul or address in
P'yengj'ang by June 23, 1947.
4. Democratic parties and social organizations
of northern and southern Korea which have signed
the declaration contained in paragraph 2 may sub-
mit to the Joint Commission in written form their
considerations regarding the structure and prin-
ciples of organization of the provisional Korean
democratic government and local organs of au-
thority (provisional charter) , and also the political
platform for this government may be in accordance
with a questiomiaire approved by the Commission.
This questionnaire shall be published in the press
and printed copies will be available at the Joint
Commission headquarters in Duksoo Palace, Seoul,
and (address) P'yengyang.
The applications for considerations shall be sub-
mitted to the Joint Commission by July 1, 1947.
5. Subcommission number 1, upon receiving the
applications for consultation, shall compile a list
of all democratic parties and social organizations
and their designated representatives of North and
South Korea which have signed the declaration in
paragraph 2.
6. Following the approval by the Joint Com-
mission of the list of democratic parties and social
1248
I
organizations and their representatives, mentioned
in paragraph 5, the Joint Commission shall con-
vene in Seoul on June 25, 1947, a joint meeting to
which it shall invite the above-mentioned repre-
sentatives of parties and social organizations in
South Korea. A similar meeting of representa-
tives of parties and social organizations in North
Korea shall take place in P'yengyang on June 30,
1947. The Chief Commissioner of the Soviet Dele-
gation shall preside over the meeting in Seoul, and
the Chief Commissioner of the American Delega-
tion shall preside at the meeting at P'yengyang.
In such meetings the chief of the delegation in
whose zone the assembly is being held will present
a statement elaborated by the Joint Commission
7. Kepresentatives of parties and social organi-
zations of both northern and southern Korea which
are included in the list referred to in paragraph 5
above will be invited to individual oral consulta-
tion regarding the structure and principles of
organization of the Korean provisional demo-
cratic government and local organs of authority
(provisional charter) and also regarding the po-
litical platform for this government. For this pur-
pose the Joint Commission will appoint the neces-
sary numbers of subcommittees and shall notify
each representative of the time and place he is
to appear for consultation.
Oral consultation shall commence on July 5,
1947, and take place in Seoul and P'yengyang.
8. The Joint Commission will present the con-
sideration and proposals received from the Korean
democratic parties and social organizations of
North as well as South Korea for study and elab-
oration of coordinated proposals to the corre-
sponding subcommissions which will create, for
this purpose, the necessary members of subcom-
mittees. Advisors, experts, and technical person-
nel for the work in the joint subcommissions and
subcommittees will be appointed by the heads of
the corresponding delegations.
9. For the purpose of consultation and aiding
the Joint Commission in elaboration by it of rec-
ommendations regarding the structure and prin-
ciples of organization of the Korean provisional
democratic government or the local organs of
authority (provisional charter) and also the polit-
ical platform for this government, representatives
of parties and social organizations shall be invited
from among parties and organizations included
in the list mentioned in paragraph 5.
Department of State Bulletin
The number of such representatives of various
larties and organizations shall be determined by
he Joint Commission in accordance with their
lembership and, as far as possible, taking into
ccount their influence. The Joint Commission
hall convene a joint meeting with such representa-
ives and may also call upon them to take part
1 the elaboration of recommendations by sub-
ommissions and subcommittees. The time and
lie agenda of the joint sessions of the Joint Com-
lission with such representatives will be ap-
ointed by the Chief commissioners.
10. Democratic parties and social organizations
f both northern and southern Korea shall have
qual rights and opportunities in consultation with
he Joint Commission.
11. The coordinated proposals elaborated by the
ubcommissions shall be submitted for considera-
ion to the Joint Commission which shall examine
uch proposals and shall grant its provisional
pproval. Following this, the Joint Commission
hall appoint a drafting commission to which it
hall give the necessary instructions regarding the
ompilation of the final text of the recommenda-
ions concerning the structure and principles for
rganization of the Korean provisional democratic
:overnment and local organs of authority (pro-
isional charter) and also the political platform
or this government. The texts of recommenda-
ions elaborated by the drafting commission shall
e approved by the Joint Commission.
12. Following the approval of the texts of rec-
immendations submitted by the drafting commis-
ion, the Joint Commission shall proceed with
laboration of recommendation regarding the
lersonnel of the Korean provisional democratic
overnment.
lope Expressed for Early Provisional
Sovernment for Korea
TATEMENT BY THE SECRETARY OF STATE
[Released to the press Jnne 12]
Reports from Korea are that the Joint (U.S.-
J.S.S.R.) Commission has agreed upon proce-
ures for consultation with Korean democratic
arties and social organizations in all of Korea in
rder to work out plans for the establishment of a
Tovisional Korean democratic government.
?hese procedures are rather elaborate and com-
THE RECORD OF THE WBBK
prehensive and should assure the Koreans that
their opinions and constructive ideas will be given
due consideration. This agreement in the Joint
Commission is especially gratifying as failure to
reach such an agreement last year caused adjourn-
ment of the Commission.
I understand that consultations will start at
Seoul in the American zone on June 25 and will
continue at P'yengyang in the Soviet zone in
northern Korea on June 30. I am hopeful that
these developments will result in the early forma-
tion of a Korean provisional government for all of
Korea as provided in the Moscow agreement of
December 1945.
Hope Expressed for Accord on Indian
Self-Government
[Released to the press June 10]
The United States has followed developments
toward full self-government in India with great
interest and sympathy. The British and Indian
Governments have been faced with unique diffi-
culties in working out a plan whereby power might
be transferred peacefully and for the general good
of the Indian people. The agreement of all the
major parties concerned with the British state-
ment of June 3,^ coming as it did in a period of
growing tension in India, is a source of much en-
couragement to India's friends. It is hoped that
'The plan, issued as a "White Paper" (Indian Policy
Statement of June 3rd, 1947, Cmd. 7136) leaves the decision
of partition of India entirely in the hands of the Indians
themselves and does not preclude negotiations for a unified
India. It lays down procedures whereby India may be
partitioned by decisions of the legislative assemblies of
Bengal, Punjab, and Sind, and by referenda in the North
W^est Frontier Province and the district of Sylhet in the
Province of Assam. A method whereby British Baluchis-
tan may determine its position is being examined. The
procedures of the plan are now in motion. Parliament is
exix'cted to enact legislation providing for the transfer
of power to the Constituent Assembly already in existence
and to the constituent assembly which is expected to be
set up for the creation of Pakistan, giving the two areas
full self-government with Dominion status. The Indian
Constituent Assemblies may decide in due course whether
or not the part of India in respect of which they have
authority will remain in the British Commonwealth. Since
the plan relates only to British India the position of the
Princely states remains unchanged.
une 22, 1947
1249
THE RECORD Of THE WEEK
this meeting of minds will bring an end to civil
disorders in India and avoid further bloodshed.
The spirit of cooperation among the Indian lead-
ers evident in the agreement augurs well for the
future of India and if continued may provide an
example of cooperation and fair play to all na-
tions of the world.
The future constitutional pattern is a matter
to be determined by the Indian people themselves
and whatever that pattern may be the United
States Government looks forward to the continu-
ance of the friendliest relations with Indians of all
communities and creeds.
Position on Educational Excliange
Program
STATEMENT BY THE SECRETARY OF STATE
[Released to the press June 12]
The Mundt bill authorizes the Secretary of State
to conduct an international information and edu-
cational exchange program. A number of mem-
bers of Congress have stated they would support
the Voice of America broadcasts because I had
urged the continuation of this broadcasting, but
they could not support the exchange of students
and professors, or assistance to American libraries
and schools abroad, or the assignment of American
technicians as advisers to other governments.
I have supported the continuation of broadcast-
ing because it is the most important single method
for correcting false ideas about the United States
in those areas where the people are isolated from
the rest of the world. I have spoken in support
of broadcasting on several occasions because I felt
this was the most controversial element in a pro-
gram for the exchange of information.
I am unreservedly in favor of the exchange of
students, professors, and books. These methods
in the long run may be far more important for the
interchange of information than broadcasting. I
believe that private institutions and organizations
must continue, as they have in the past, to bear
the principal responsibility for the exchange of
students and professors. Assistance from the
Government would supplement these private activ-
ities. I have seen some of the work of the
American-founded schools in China. They are
largely financed by private fund-raising. During
1250
the war the State Department provided these
schools with some books and laboratory equipment.
The Department also gave to the American col-
leges in the Near East some scholarship funds for
bringing students from the Arab states to study
under American teachere in Syria and Turkey.
I should like to see that authority continued, and
wherever it is necessary in our national interest to
supplement the work of private agencies, I believe
the Department should be in a position to do so.
The assignment of public oiEcials as advisers
to other governments will be increasingly impor-
tant to the United States in its foreign-relief pro-
gram and will enable those goverimients to achieve
maximum self-help. This bill contains provision
that the Secretary of State can require other gov-
ernments to pay for the services of these advisers.
I do not believe that a bill limited to broadcast-
ing would give tliis Government the opportunities
it must have to explain itself to the rest of the
world.
William H. Hastie Succeeds Ralph J..
Bunche on Caribbean Commission
The President on June 14, 1947, appointed Wil-
liam H. Hastie, Governor of the Virgin Islands,
as United States Commissioner on the Caribbean
Commission. Governor Hastie will replace Ralph
J. Bunche, who was recently appointed Director!
of the Trusteeship Division of the United Nations
Secretariat. For text of Dr. Bunche's letter of
resignation, dated May 15, 1947, and for the Presi-
dent's reply of June 9, see White House press re-
lease of June 14, 1947.
Confirmation to the International |
Monetary Fund
The Senate on June 11, 1947, confirmed the nomi
nation of Andrew N. Overby to be United State:
Executive Director of the International Monetary
Fund for a term of two years and until his succes
sor has been appointed.
Confirmation
The Senate on June 10, 1947, confirmed the nomi
nation of Richard F. Allen to be Field Administra
tor of the United States foreign relief program
pursuant to Public Law 84, approved May 31, 1947
Department of State Bulleth
>efense of American Information Program
LETTER FROM ASSISTANT SECRETARY BENTON TO KENT COOPER
[Released to the press Juue 14]
June 13, 1947.
Dear Mr. Cooper : I have just had a chance to
ead in Editor and Publisher the text of your
]Ihicago speech.
There is also on my desk a clipping from the
^ew York Sun of an Associated Press dispatch
rom Budapest, dated June 6. It reads in part:
"President Truman's views — that the coup was
n outrage — was not published by any Hungarian
lewspaper .... In scenes reminiscent of
he German occupation, many persons are hud-
ling every night in Budapest cellars to listen
a foreign news broadcasts. . . . Today's bul-
etin of the United States Information Service,
, State Department office, carried President
rruman's remarks .... Hungarians who
ailed for the Bulletin came in hurriedly and de-
)arted in even greater haste".
You stated in your speech that you were not
peaking officially as Executive Director of the
Associated Press. If this is an appropriate device
pr you perhaps it is not wholly inappropriate for
ae. Your tenure and connection with the AP
eems longer and more secure than is traditional
or an Assistant Secretary of State. Thus there
pay be those who will indulge me and try to as-
ume that I am commenting in my personal rather
[lan my official capacity. ^
The assumptions that underlie your Chicago
rgument, as I read it, are that somehow — some-
me — the nations will remove the barriers that
ow impede the free flow of information inter-
ationally and internally; that the task of dis-
iminating information may thus be given every-
here to private, competitive agencies as it is in
le United States; that the resulting flow of in-
irmation will then be adequate to the needs of
le people; and that, even in the face of today's
)nditions, any informational activity sponsored
y our own government represents a backward
;ep.
I share your millenial hope. I share it as a hope
nd as a goal. I have read with admiration some
f your numerous speeches on this subject, over the
line 22, 7947
years. I have made speeches on this subject my-
self in the last year. In fact, I have done more
than make speeches on it. Though this develop-
ment has received little public recognition or dis-
cussion, at no previous time has the United States
imdertaken so vigorous an effort in behalf of inter-
national freedom of information as it has begun
in recent months through UN, UNESCO and the
State Department's new concept of bilateral agree-
ments.
But we would be less than candid with ourselves
— indeed we would be living in a world of gossa-
mer dreams — if either of us felt we had progressed
very far toward our goal. The bitter fact is that
the world is in worse shape now with respect to
freedom of information than it was in 1919 when
you made your first appeal. It is estimated that
three-quarters of the earth's population is living
today under some degree of censorship. In some
important areas this censorship, and the deliber-
ately fostered distortions that accomj^any it, are
more virulent than ever before.
Certain it is that the United States is today
grossly, shockingly and dangerously misunder-
stood by the peoples of many important countries.
The question for the United States becomes,
what do we do about it? I think you and I can
agree on these two things the United States Gov-
ernment ought to do: 1) it ought to move as it
can to advance the cause of universal freedom of
information, and 2) it ought to encourage the
activities of private, comjjetitive agencies in the
commimications field.
Beyond these steps you seem to be arguing that
we do nothing — that we revert to status quo ante
helium. The opposing argument is that we should
never again be caught so helpless ; that the govern-
ment must act to fill the information gaps that are
now so glaring, in order that foreign peoples will
not again be so easily misled about us; and that
the govermnent's method must be to give facts,
and nothing but facts, openly and candidly and
steadily in those areas and via those media not
open to private channels or not profitable to them.
If and as private agencies develop in these areas
and media, the government should withdraw.
1251
THE RECORD Of THE WBEK
(You will recall that one of my first acts in
the Department of State was to kill the OWI
100,000 word-a-day newsfile which was scatter-
broadcast all over the world. Yet even today, I
am told, in a major country as important to us as
is China, the Associated Press only serves 27 of the
590 daily and 700 weekly and semi-weekly papers,
and all of these 27 are in Shanghai and Nanking.
UP serves only 19.)
The opposing argument to yours is not mine
alone. It is held by nearly everyone who has
studied the question — ^by a committee of outstand-
ing editors appointed by the American Society of
Newspaper Editors; by the key radio executives
who have had experience in international broad-
casting ; by the president of the Motion Picture
Association ; by General Marshall and our ambas-
sadors ; by General Eisenhower and other leaders
of our armed forces; by the very great majority
of American newspapers ; almost unanimously by
their foreign correspondents who have seen the
problem abroad and reported on how we are try-
ing to meet it ; by scores of private organizations
which have looked into the matter, such as the
American Legion, the General Federation of
Women's Clubs, the Institute for Education by
Radio, the Women's Action Committee for Last-
ing Peace, etc. ; and most recently, in the very face
of your argument, it was adhered to unanimously
by the Foreign Affairs Committee of the House
in its report on the Mundt Bill.
Your speech contains numerous specific miscon-
ceptions and misleading statements. It would re-
quire a letter almost as long as your paper ade-
quately to comment on them, so I shall limit my-
self to a few. Here are five examples :
1. As you use the word "propaganda" through-
out your speech to describe the informational ac-
tivities of the State Department, you are pre-
judging the question by raising associations of dis-
honesty, malice and evil intent. The St. Louis
Post Dispatch commented editorially, "Kent Coo-
per's personal attitude is strikingly different from
the standards of reporting which he has fostered
in his agency's own service." You have thus your-
self used a propagandist's device.
In your sense I deny— flatly and categorically—
that the Department of State is engaged in propa-
ganda. No responsible newspaperman who has
taken the trouble to study the Department's oper-
1252
ation has so described it. I call your attention es-
pecially to the report of the Committee of the
American Society of Newspaper Editors, which
did take the trouble to study it. In this report,
these distinguished editors stated, "So far as it
could go, the Committee did not detect distortion,
untruth or hidden purpose in the activity to date".
I do not deny, however, that propaganda is rife
throughout the world, or that it is "a maelstrom
of international self-seeking where wars are
brewed", as you have charged. Secretary
Marshall has referred to "this riot of propaganda".
The chief target and victim is the United States.
2. You have said in previous statements, and
implied in this one, that if the U. S. Government
abandoned its international information program,
other nations would abandon theirs. This state-
ment is incredibly unrealistic, as could be readily
determined merely by querying responsible offi-
cials in other governments. Other major powei-s
have been in this field for decades, long before the
war forced us in the United States to a realization
of its great importance to us. Can anyone even
imagine Russia abandoning its propaganda if you
are successful in your campaign to kill off the State
Department's information activities? Ignoring
the Russian attitude seems to me to be irrespon-
sible, when such hopes are expressed; though I
assure you there is no chance that the Bi-itish or
the French, for example, would follow the un-
sound policy you suggest for us.
3. You say that "all countries of any importance
actually avail themselves" of the news reports of
the U.S. wire services. The fact is that a num-
ber of countries either do not get these reports on
process them beyond all recognition. Hungary.
Poland, Roumania, Yugoslavia and Iran, among
others, get no reports. The Soviet Tass agency
gets the AP report, but I am sure you agree wit!
me that Russian newspapers cannot, even in tlw
most far-fetched sense, be said to have "AI
service".
Further, and of great importance— nowhere ir
the world can the wire services profitably send th«:
complete texts of official documents that are re-
quired for understanding abroad of United Statei
policy.
4. You refer to the government as being in tbj
"news agency business", yet you concede that th.
State Department's information program is no
Department of State BuUetii'
regarded by the wire services as being competi-
tive. Thus your use of the phrase "news agency
business" seems hardly accurate. The State De-
partment presents voice news reports as part of
its foreign radio broadcasting; it does so because
private broadcasters will not undertake the job
3n anything but a very minor scale, and because
;he private wire services did not accept my invita-
tion of last year, to take responsibility for that
part of the broadcasting. The Department also
provides foreign editors with the full texts and
Jther documentary material not provided by the
ivire services. This is hardly the "news agency
jusiness".
5. You say that the American people have no
vay of checking up on what the State Department
s saying abroad "that miglit lead us all to catas-
rophe". In saying this, you under-rate the rigid
policing provided by our listeners and readers,
fou under-rate Congress. You under-rate your
>wn staff both here and abroad. You under-rate
he thousands of American businessmen living
ibroad, and those serving in our missions. It is
ill on the record.
In general, your thesis is that the purpose of the
jtate Department's program is to create prejudice,
ir gain converts, or thwart communism, or pro-
luce revolution abroad. If yours were an accurate
)ortrayal of its purposes, I agree that the program
rould be unwise as well as ineffective. But Mach-
avellian designs are not envisaged. The pur-
(ose is simply to advance understanding of the
Jnited States by informing foreign people of the
acts about the United States. If such understand-
ig does not promote the interests of both the
Jnited States and the rest of the world, then we
re in a very bad way indeed and neither the Asso-
iated Press nor the State Department's informa-
ion program has much long-range reason for
sistence.
In view of the wide publicity given your speech
1 Chicago I shall make this letter available to any
lember of the press who shows any interest in it.
Very sincerely yours,
WiLUAM Benton
Mr. Kent Cooper, Executive Director
Associated Press
60 Rockefeller Plaza
New York City
me 22, 7947
THE RECORD OF THE IVEEK
THE DEPARTMENT
Provisions Authorizing Offices of Under
Secretaries and Assistant Secretaries
(Released to the press June 12]
Assistant Secretaries of State
Permanent legislation authorizes in the Depart-
ment of State four Assistant Secretaries of State.
By act of Congress dated December 8, 1944, there
was authorized in the Department of State two
additional Assistant Secretaries of State for the
period of the emergency and not to exceed two
years following the cessation of hostilities. As a
result of the issuance of the President's proclama-
tion 2714 of December 31, 1946, terminating the
period of hostilities, the Act of December 8, 1944,
will expire and, consequently, authority for the
additional two Assistant Secretaries of State will
terminate December 31, 1948.
Under Secretary of State
Likewise, permanent legislation authorizes in
the Department of State one Under Secretary of
State. On August G, 1946, Congress authorized
the establishment in the Department of State of
an Under Secretary of State for Economic Affairs
for a period of two years. Under this authority,
the Under Secretary of State for Economic
Affairs will serve until August 1, 1948.
Norman Armour To Assume Duties of
Two Assistant Secretarysliips
STATEMENT BY THE SECRETARY OF STATE
(Released to the press June 12]
Mr. Armour will assume the duties formerly
held by the Assistant Secretary for European af-
fairs and the Assistant Secretary for American
republic affairs. He will be responsible for the co-
ordination of the work of four geographic ofBces.
No organizational plan will be approved until
Mr. Armour arrives and the Under Secretary and
the Assistant Secretary for administration and I
have had an opportunity to discuss details with
him.
SENATE CONFIRMATION
The Senate on June 10, 1947, contirmed the nom-
ination of Norman Armour to be an Assistant Sec-
retary of State.
1253
^€m/^€/n/^
General Policy Page
International Red Cross Committee Meeting.
Article by Albert E. Clattenburg, Jr. . . 1205
Common Objectives and Ideals Manifested
in U.S.-Canadian Relations. By the
President 1210
Position on a United States of Europe . . . 1213
Relations With Former Hungarian Prime
Minister Nagy 1217
Violation of Civil Liberties in Bulgaria . . . 1218
American Traditions in Today's Foreign
Policy. By Under Secretary Acheson . 1221
The People's Stake in Maintaining Peace.
By Benjamin V. Cohen 1230
Hope for Accord on Indian Self-Government . 1249
Confirmation: Richard F. Allen 1250
William H. Hastie Succeeds Ralph J. Bunche
on Caribbean Commission 1250
Economic Affairs
Economic Cooperation With Canada, 1941-
1947. Article by Richardson Dougall . 1185
The Economics of Peace in the "Interim
Period". Article by George C. McGhee . 1193
Fifth International Hydrographic Con-
ference. Article bv Rear Admiral Robert
O. Glover and Rear Admiral Leo 0.
Colbert 1203
Nationalization of Industry in Rumania . . 1218
Procedures for Filing Claims in Yugoslavia . 1219
Government Operation of Shipping Facilities 1225
Position on House Version of Wool Bill . . . 1228
The Future of Foreign Trade. By Assistant
Secretary Thorp 1235
Promotion of World Understanding Through
Transport and Communications. By
Assistant Secretary Norton 1241
The United Nations
U.N. Documents: Selected Bibliography . . 1198
Confirmation to the United Nations .... 1198
United Nations Conferences 1947 1199
Preparation for World Conference on Pass-
port and Frontier Formalities 1201
The United Nations — Continued Pago
Second Meeting of the U.N. Preparatory
Committee for the International Confer-
ence on Trade and Employment. Re-
port to the Office of Public Affairs . . . 1208
Confirmation to International Monetary
Fund 1250
Occupation Matters
Selection of Plants for Reparations in Japan . 1201
Protest of Arrest of Hungarian Smallholders
Party Leader 1215
Procedure for Joint Commission Consultation
With Koreans 1247
Hope Expressed for Early Provisional Gov-
ernment for Korea 1249
Treaty Information
Regret Expressed That Yalta Commitments
Remain Unfulfilled in Hungary, Ru-
mania, and Bulgaria; and New Era
Anticipated for Italy. Statements by
the President Upon Ratification of Peace
Treaties 1214
Reciprocity Principle in Air- Transport Agree-
ments 1220
international Information and
Cultural Affairs
Position on Educational Exchange Program . 1250
Defense of American Information Program . 1251
Calendar of International Meetings . . 1199
The Foreign Service
Confirmation to the Diplomatic Service . . . 1240
The Congress 1224
The Department
Dwight P. Griswold as Chief of American
Mission for Aid to Greece 1219
Provisions Authorizing Offices of Under
Secretaries and Assistant Secretaries . . 1253
Norman Armour as Assistant Secretary . . 1253
Richardson Douffall, author of the article on economic cooperation with
Canada, is an officer in the Division of Historical Policy Research, Office of
Public Affairs, Department of State.
Oeorge C. McOhee, author of the article on the economics of peace in the
"interim period", is Special Assistant to the Under Secretary of State for
Economic Affairs.
Aliert E. Clattenhurg, Jr., author of the article on the International Red
Cross committee meeting, is Chief of the Special Projects Division, Office of
Controls, Department of State.
Rear Admiral Robert O. Olover, U.S.N., and Rear Admiral Leo 0. Colbert,
U.S.C. & G.S., co-authors of the article on the international hydrographic con-
ference, served as U.S. Delegates to the conference.
U. S. GOVERHUeKT PRINTINS OFFICEi 1947
UNIVERSAL TRAINING— A SUPPORT FOR FOR-
EIGN POLICY • Address by the President . . . 1294
ONE YEAR OF THE PHILIPPINE REPUBLIC
• Article by Edtcard W. Mill 1273
MILITARY CONTROL OF ZONE A IN VENEZIA
GIULIA • Article by Mary E. Bradshaio 12S7
Vol. XVI, No. 417
June 29, 1947
For complela coiOenl* see bach cover
^.«T o,
••^♦r.. <.♦ '
z/Jeha/y^mmvt jC^ t/tale JLJ tJL X JL vy L A A 1
Vol. XVI, No. 417 • Publication 2864
June 29, 1947
For sale by the Superintendent of Documents
U.S. Goverament Printing Office
Washington 25, D.C.
Subscription:
52 issues, $5; single copy, 15 cents
Pubiished with the approval oJ the
Director of the Bureau of the Budget
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the Department
or State Bulletin as the source will be
appreciated.
The Department of State BULLETIN,
a weehly publication compiled and
edited in the Division of Publications,
Office of Public Affairs, provides the
public and interested agencies of
the Government uiith 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 is in-
cluded concerning treaties and in-
ternational agreements to which the
United States is or may become a
party and treaties of general inter-
national interest.
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.
MILITARY CONTROL OF ZONE A IN VENEZIA GIULIA
hy Mary E. Bradshaw
. . . wnique in several ways — only ^^stakeholder" mili-
tary government in the world — and probably the only one in
history — carrying on the functions of government without
any idea as to who the future sovereign might be, and without
the 'program afforded by the example of parallel indigenous
govenvment which has solved so many problems in other
places.
— AMO Supplement, Blue Devil,
July 19, 1946.
The Dispute Over Venezia Giulia
When the Nazis surrendered in northern Italy
on May 2, 1945, the Allied Forces, in accordance
with established policy and procedure, set up con-
trol over the newly liberated territory. By that
time the Allied Military Government^ had been
merged with the Allied Control Commission (after
October 25, 1944, the Allied Commission), a mili-
tary unit "operating under the direct supervision of
Allied Force Headquarters and following the di-
rectives of the Combined Chiefs of Staff." '
Development of Control Machinery in Italy
Plans for control of Italy had been formulated
well in advance of the Sicilian invasion. Then and
thereafter in the initial stages of each subsequent
military operation, militai-y government func-
tioned under the basic principles of an earlier di-
rective "drawn up in concert by the American and
British Governments and Allied military staffs." °
The first objective of military government was
"the security of the occupying forces and their
lines of communications." Beyond that it was "to
relieve combat troops of the burden of civil admin-
istration," to "assist in making available to the oc-
cupying forces the economic resources of the occu-
pied territory and to govern in such a way as to
promote political and military objectives of the
Allied Forces in connection with future opera-
tions." The same directive set up the principle of
joint British and American responsibility.*
The Italian armed forces surrendered on Sep-
tember 3, 1943. Thereafter the Italian Govern-
ment agreed "to take such administrative or
other action as the Commander in Chief may
require" while the Allied Commander in Chief in
particular was given authority to "establish Allied
Military Government over such parts of Italian
territory as he may deem necessary in the military
interests of the Allied Nations." ° The so-called
"long terms" of surrender ° specified the appoint-
'The term AMGOT (Allied Military Government of Oc-
cupied Territory) was employed until Oct. 18, 1943; then
AMG (Allied Military Government) was officially adopted.
'A Review of Allied Military Government and of the
Allied Commission in Italy, July 10, 19/i.'i to May 2, 1945,
(published by the Public Relations Branch, Allied Com-
mission, APO 394, U.S. Army), p. 5.
' Ibid., p. 8.
* AMGOT operational order issued May 1, 1943, by Gen-
eral Eisenhower, as quoted, ibid., pp. 8-9. Both parties
were to share equally "political, legal and financial re-
sponsibility for planning and conduct of Military Govern-
ment, as well as participation by personnel on as near
equal basis as possible."
° Conilitifln 10 accepted by Marshal Badoglio at the
time of surrender. For conditions presented then, see
United States and Italy 193S-19Ji6, Dontmentary Record
(Department of State publication 26G9), pp. 51-52.
' An "instrument" consisting of 44 articles, signed Sept.
29, 1943. For text see ibid., pp. 55-C4.
June 29, J 947
1257
ment of a control commission to regulate and
execute the instrument of surrender under the
orders and general directions of the Allied Com-
mander in Chief.'
In January 1944 the Allied Control Commis-
sion and Allied Military Government were amal-
gamated, with identical general staffs and head-
quarters. The "single instrument" created by this
merger was both more flexible and effective in its
functions. By May 1945 the Allied Commission
had completed the major portion of its work. It
had organized military government operations
with the Fifth and Eighth Armies in direct sup-
port of combat troops, rendered whatever imme-
diate aid was practicable to the civilian popula-
tion in the rear of the armies, and assisted in the
process of preparing the governmental administra-
tion and economy for restoration to the Italians.*
Projected Role of Allied Military Government in
Northern Italy
Anticipating the task ahead, the Allied Com-
mission had emphasized the role of AMG in
northern Italy. Wlien the time came, it was to
work wholeheartedly with the Committees of
Liberation of the North, "using them in an ad-
visory capacity only and insisting that CLN turn
over to AMG any power and authority previously
assigned to them." '
Behind the scenes various Allied authorities
had been considering the problem of the "much
disputed northeastern frontiers of Italy." Offi-
cials of Allied Force Headquarters (AFHQ) con-
cluded that under article 37 the Allied Commis-
sion had sole authority within the territory of
Italy for administering and executing the Instru-
ment of Surrender, under orders of the Supreme
Allied Commander, Mediterranean Theater of
Operations (SACMED), and that future portions
of Italy liberated by Allied Forces would become
' Art. 37. General Eisenhower announced the estab-
lishment of the Allied Control Commission on Nov. 10,
1943. Later it became the Allied Commission, which was
abolished Jan. 31, 1947. For functions, see BuiXtmN of
Aug. 6, 1944, pp. 137-38.
'A Review of Allied Military Government . . . , p. 5.
* Ibid., pp. 123-124.
'° "Protocol of the Proceedings of the Crimea Conference"
(Department of State press release 239, Mar. 24, 1947,
p. 6).
subject to the Instrument of Surrender and there-
fore subject to control through the Allied Com-
mander.
Yugoslav Territorial Claims Against Italy
At the Crimea Conference (February 1945),
the question of the Italo-Yugoslav frontier and
the administration of Italian provinces along that
frontier came up for discussion. According to
statements released by the Department of State,
the British Delegation circulated notes on both '
the Italo-Yugoslav and Italo-Austrian frontiers.
The American and Soviet Delegations agreed to
consider them and to give their views later.'" The
views of various Yugoslav political elements were
well known prior to this meeting of the Big Three.
On more than one occasion the Yugoslav Govern-
ment-in-Exile had expressed its desire to acquire
the Italian territories inhabited by Slovene and
Croat groups. In general, the frontier which the
Government-in-Exile claimed differed little from
the more extreme Yugoslav line of 1919. This line
coincided in its northern and southern sections
with Italy's eastern frontier of 1914, while in its
central portion it ran somewhat to the west of the
old boundary between Italy and Austria-Hungary.
Marshal Tito forecast the liberation of Yugoslavs
in Istria and the Slovene Littoral. The Free Yugo-
slav Radio, operating in occupied Yugoslavia,
laid claim to Venezia Giulia in the name of the
National Liberation Movement in Slovenia.
Venezia Giulia, according to the Yugoslavs, in-
cluded the former provinces of Istria, Gorizia,
Trieste, and part of Carniola. As employed by the
Allied Powers the term Venezia Giulia denotes
the 1939 Italian provinces of Gorizia, Trieste,
Fiume (Carnaro) and Pol a (Istria). The Yugo- 1
slav equivalent for Venezia Giulia is Julijska ■
Krajina and the English term as employed by the
Yugoslav Government is Julian March. The Ger-
man term used by the Austrians prior to 1914 was
Kiistenland and referred to an administrative dis-
trict composing Trieste, Gorizia, Gi'adisca, and
Istria. The two terms — ^Venezia Giulia and
Kiistenland — are not quite identical.
United States Position on the Disputed Area of
Venezia Giulia |
The position of the United States with respect
to territorial disputes was well known. In May
1258
Department of State Bulletin
1945 Acting Secretary Joseph C. Grew declared
that "territorial changes should be made after
thorough study and after consultation and deliber-
ation between the various governments con-
cerned." " In line with that policy it was decided
that "the best way to avoid hasty and precarious
territorial solutions in the Anglo-American
theater of operations would be to establish and
maintain Allied Military Government in the dis-
puted areas" ^^ pending settlement by orderly
process.
Acting Secretary Grew went on to explain that :
"Apart from the fact that this is an Anglo-
American theater of operations and Anglo-Ameri-
can troops forced the surrender of the German
garrison at Trieste, the disputed areas are tempo-
rarily of prime importance from a military point
of view. Since the Allied occupation forces re-
quire a zone of administration to include adequate
port facilities and lines of communication and sup-
ply leading to Central Europe, it was deemed par-
ticularly essential to establish Allied military con-
trol in this part of Italy.
"Aware of Yugoslav interest in the Venezia
Giulia area, proposals along the above lines were
presented to, and accepted by. Marshal Tito la-^^t
February. Notwithstanding this agreement,
claims have now been advanced that by virtue of
conquest Yugoslav forces are entitled forthwith
to occupy and control the administration of this
region. These claims are put forward regardless
of the operations of Field Marshal Alexander's
forces in bringing about the defeat of the Germans
in that area. According to radio reports, Yugo-
slav elements are already setting up a 'National
Federal Government of Slovenia' in Trieste.
"Aside from the extent of the facilities required
by the Allied military forces in this area, this Gov-
ernment reiterates its view that a disinterested
military government is essential in Venezia Giulia
in order not to prejudice, thi-ough sudden unilat-
eral action taken in the flush of victory, a final solu-
tion corresponding to the problems and the prin-
ciples involved." "
Str'uggle for Jurisdiction Over Venezia Giulia
Notwithstanding these "agreements" and ar-
rangements, the jurisdiction over and administra-
tion of Venezia Giulia became a problem of con-
siderable magnitude once the Yugoslav and
Eighth Army troops made contact." The Allies
had acted on the assumption that jurisdiction over
the disputed areas was settled by the Alexander-
Tito conversations and that joint occupation would
take place as planned.
The original line of demarcation between the
Yugoslav troops and the Anglo-American forces
ran north from Fiume to the Austrian border.
Under this arrangement Yugoslav forces were to
control the port of Fiume and Anglo-American
forces the port of Trieste. All territory west of
the line, including Trieste, was to be subject to
Allied Military Government.
Yugoslav forces were west of the line by the time
of the German surrender. May 2, 1945. Marshal
Tito was asked to withdraw Yugoslav regular
forces from the disputed area in order to facilitate
the work of the military agreement.
Marshal Tito informed Lt. Gen. W. D. Morgan,
SACMED's Chief of Staff, who was sent to Bel-
grade to discuss implementation of the agreement,
that the problem was a political one and no under-
standing could be reached on the basis suggested
by SACMED. In Tito's opinion, Yugoslavia had
a right as one of the Allies to occupy those terri-
tories which it had conquered. He therefore did
not intend to withdraw his forces from the area
east of the Isonzo River. Furthermore, he in-
sisted that his civil administration should remain
in control of the occupied regions and that Trieste
must be left under Yugoslav control. He offered
Field Marshal Harold R. L. G. Alexander port
facilities in Trieste and access to railroad and
highway lines of communications leading out of
the city.
Realizing that further military conversations
would avail nothing, SACMED referred the
matter to Washington and London. The United
States Government then called upon the Yugo-
slav Government to agree to control by SACMED
and to issue appropriate instructions to the Yugo-
slav forces in the region in question to cooperate
" BuiXETiN of May 13, 1945, p. 902.
" Idem.
" Idem.
'* On May 1, 1945, Eighth Army troops advancing on
Trieste made contact with YuKOsIav partisans at Mon-
falcone. On May 2, 1945, Lt. Gen. Bernard C. Freyberg
entered Trieste with New Zealand troops of the Eighth
Army.
Jyne 29, 7947
1259
with Allied commanders in the establishment of
military government.
After discussion on high political levels the
Yugoslav Government accepted a military
agreement,
". . . in order to preserve the friendship
among the Allied Armies which was achieved dur-
ing the fierce fighting, and also in order to guar-
antee and strengthen the peace in Europe by
promoting and strengthening relations with its
Allies." "
The line of demarcation finally accepted, known
as the Morgan Line, ran north from the eastern
limits of Trieste to the Austrian frontier. The
Allies were given access to railroads and highways
from Trieste to Austria "via Gorizia, Caporetto,
and Tarvisio". The agreement also provided that
"Pola and anchorages on the west coast of Istria"
were to be "under the Command and control of the
Supreme Allied Conmiander". West of the line
Allied Military Government was to be established
as originally planned. The territory east of the
line was left in Yugoslav hands. In neither zone
was the military occupation and administration to
prejudice or affect the ultimate disposal of the
area."
Points two and three of the seven-point pro-
visional administration agreement (sometimes
called the Belgrade agreement) deserve special
attention because they include conditions which
the Yugoslav Government considered indispen-
sable. Yugoslav forces in the area west of the line
marked the Morgan Line were limited to "a de-
tachment of regular troops not exceeding 2,000
of all ranks". These troops were to be "main-
tained by the Supreme Allied Commander's ad-
ministrative services" and were to be confined to
"a district selected by the Supreme Allied Com-
"Tlie Yugosliiv Foreign Ministor to the American
Anil)assac]or, June 11, 1945, Bui-letin of June 17, 1945,
p. 10f)6.
" For text and map, see Provisional Administration of
Venezia Oiulia, Affreemcnt Between The Uvited states
of America. United Kingdom of Great Britain and
Northern Ireland and Yugoslavia, Belgrade, Juue 9, 1945
(Department of State publication 2562, Executive Agree-
ment Series 501, 1940).
'Tarasraph 3, which further stated that AMG would
be "empowered to use whatever civil authorities they
deem best In any particular place and to change ad-
ministrative personnel at their discretion." Ibid., p. 1.
" As provided in the Belgrade agreement, point 4.
mander". Use was to be made of "any Yugo-
slav civil administration which is already set up
and which in the view of the Supreme Allied
Commander is working satisfactorily".^'
In subsequent negotiations at Duino (June
1945) between the Allied and Yugoslav military
delegations, the recognition of existing civil
authorities, which had been previously agreed
upon, developed into a point of disagreement. The
Yugoslav military delegation specifically re-
quested that the Italian Government, as well as
organs subordinated to it, should have no in-
fluence on the civil administration of Venezia
Giulia. That delegation proposed that the new
organs of already existing civil administration
be accepted by AMG. In reply the Allied mili-
tary delegation called attention to the fact that
the Italian Government was definitely denied any
power in the administration of Venezia Giulia
under the first proclamation issued by the Su-
preme Allied Commander. This proclamation
provided that "all powers of government and ju-
risdiction . . . and final administrative responsi-
bility" were lodged in the Military Commander
and Military Governor of those parts of Venezia
Giulia occupied by Allied troops. For lack of con-
currence, point 3 of the Belgrade agreement was
dropped from the Duino agreement which dealt
with the demarcation line and other technical
and economic questions.
The Duino agreement, like that previously
signed at Belgrade, in no way prejudiced the ulti-
mate disposal of any part of Venezia Giulia.
Knowing full well that the line of demarcation
between the two zones of occupation cut across
existing areas of civil administration and eco-
nomic activity, the negotiating parties decided to
continue certain existing arrangements. It was
agreed to utilize all industrial facilities in the
area to the fullest extent to meet the needs of
Yugoslavs and other claimants. To that end, it
was specified that no plant or industrial facility
should be moved out of Venezia Giulia.
Allied Military Government in Zone A
of Venezia Giulia
Establishment of Allied Military Government
Allied forces occupied Venezia Giulia west of
the Morgan Line on June 12, 1945." By procla-
mation no. 1, Allied Military Government was im-
1260
Department of State Bulletin
mediately established in the area subsequently
known as either the Occupied Territory or Zone A
of Venezia Giulia.^' "All powers of government
and jurisdiction in those parts of the territory of
Venesia Giulia occupied by Allied troops and over
its inhabitants, and final administrative responsi-
bility" were vested in the Military Commander and
Military Governor. This official, in the same proc-
lamation, instructed "all administrative and judi-
cial officials and all other government and munic-
ipal functionaries and employees of state, munici-
pal or other services [except such as might be re-
moved by him] * * * to continue in the per-
formance of their duties * * *." ^° The order
establishing local goverimaent in Zone A was issued
on August 11, 1945.21
Meanwhile, a series of proclamations had been
published in Zone A :
Property control — no. 2
General police and security regulations — no. 3
Closing of financial institutions and establishment of
moratorium — no. 4
Establishment of special courts of assize — no. 5
Dissolution of Fascist organizations and repeal of laws--
no. 6
The Oazettc — no. 7 "
The past experience of the Allied Commission
in such matters was put to good use, especially in
the early period. With no parallel indigenous gov-
ernment in existence, the task of restoring law and
order was the responsibility of military govern-
ment officials. These officials functioned without
any idea as to who "the future sovereign" might be.
The Goverimient they served was "the only 'stake-
holder' military government in the world — and
probably the only one in history." ^^
Resistance to Allied Military Government
The plan evolved for the reorganization of local
government in Zone A, reproducing the Italian
model, went into effect on August 11, 1945, under
General Order no. 11. This system immediately
aroused opposition from organizations with Yugo-
slav sympathies, many of which adopted a policy
of noncooperatiori with AMG officials. Notwith-
standing the opposition, tlie plan became opera-
tive. Where individuals and groups refused to
cooperate, direct CAO (Civil Affairs Officer) rule
prevailed. By January 1946 the Allied Commis-
sion reported that all areas ^* had presidents and
councils and 20 of the communes had presidents
and councils, all functioning in accordance with
General Order no. 11. The other 20 communes
still refused to nominate officials and were operat-
ing under the direct rule of CAO.
Some officials offered cooperation on a condi-
tional basis. Among these were certain Slovene
judges who refused to serve unless Slovene was the
official language for their courts. After a period
the opposition judges showed a disposition to com-
promise on the subject. Some men appointed to
office offered to cooperate with AMG and to recog-
nize its orders provided they did not conflict with
those of the National Liberation .Front. Still
others decided to give assistance in matters such as
the control and distribution of food and clothing.
The repeal of General Order no. 19 making
Italian citizenship a prerequisite to the holding of
public office " removed a legal obstacle to the
participation in public affairs.
Local Government
General Order no. 11 created a uniform system
of local government for the Occupied Territory,
dividing it into the areas of Trieste and Gorizia
and the commune of Pola. Each area was gov-
erned by a president and a council ; the area council
for Trieste was composed of a chairman and 17
members, and that for Gorizia of a chairman and
14 members. Area presidents and members of the
area councils were appointed and subject to re-
moval by AMG. The area president possessed the
powers and duties of the prefect of a province as
of September 8, 1943. He was assisted by a vice
president, likewise appointed and subject to re-
"" Proclamation no. 1 establishing Allied Military Gov-
ernment bears no date. Since this proclamation was men-
tioned in the Duino agreement signed on June 20, 1945,
it would appear that it was issued between June 12 and
June 20. For text, see Allied Military Government, 13
Corps, Venezia Giulia, the AllieA Military Government
Gazette, no. 1, 15 Sept. 1046, pp. 3-6.
^'lUd., p. 3.
" Ibid., pp. 45-48, and BinxcnN of Sept. 1, 1946, pp. 412-
414.
" Ibid., pp. 7-21.
" From AMG Supplement, Blue Devil, Section II, Friday,
July 19, IS/fG, Allied Military Government in Zone A, p. 1.
" The Occupied Territory was divided into the areas of
Trieste and Gorizia and into the commune of Pola.
•" General Order no. 19 was dated Oct. 3, 1945, and was
repealed by General Order no. 29, dated Dec. 5, 1945 (the
Allied Military Government Gazette, no. 9, 1 Jan. 1946,
p. 9).
June 29, 7947
1261
moval by AMG. The area council was an advisory
and consultative body to the president and met
at least once a week, reaching decisions by majority
vote.
Within the commune the president possesses the
same powers and duties as did the mayor of a
commune on September 8, 1943. The communal
president is subject to the supervision and control
of the area president. The President of Pola
functions both as an area and a communal presi-
dent. Each commune has a council composed of
a chairman plus members determined on the fol-
lowing basis :
Population Members
250,000 or over 12
30,000 to 2.50,000 8
Others 4
The communal council acts as an advisory and
consultative body to the communal president and
meets at least once a week. The decisions of the
council on all matters laid before it for advice and
opinion are reached by a majority vote.
General Oi'der no. 11 also provided for an addi-
tional unit, the district, composed of two or more
communes, if such a grouping were "deemed de-
sirable and necessary". The Area Commissioner
of AMG was given the discretionary power to
form an advisory district committee, with "no ex-
ecutive or legislative control over the Communal
President or Communal Council of their respec-
tive Communes".
Membership on one of these local government
committees was limited to the leading citizens of
the area, commune, or district. In the case of the
area or communal committees, consideration was
to be given to the selection of leading citizens of
the highest moral and political probity who should
be, as far as possible, "representative of all racial,
political and economic groups and classes in the
Area according to their respective local strength".
" Statistics taken from monthly reports of the Allied
Commission.
"General Order no. G, Trieste, July 12, 1945 (the Al-
lied Military Government Oaeette, no. 1, 15 Sept. 1943,
p. 32).
"All judicial officials except those removed by AMG
were required to continue in the performance of their
duties, subject to the direction of AMG.
" Statistics taken from monthly reports of the Allied
Commission.
1262
Law and Order
Proclamation no. 1 gave to Allied Military
Government the power to try in its own courts and
to punish persons committing "offences against
any of the special laws and provisions promul-
gated by the Military Government or against the
laws and usages of war or the law of the terri-
tory". AMG courts established in the Territory
consisted of the following :
1. General Military Courts having power to
impose any lawful punislmaent, including death;
2. Superior Militai'y Courts having power to
impose any lawful punishment, other than death
or imprisonment for more than 10 years;
3. Summary Military Courts having power to
impose any lawful punislmient, other than death
or imprisonment for more than one year or a fine
of more than 50,000 lire or both such imprison-
ment and fine.
In the period between September 1945 and Octo-
ber 1946, the Superior Military Courts tried
around 500 persons on some 800 charges while the
Summary Military Courts handled over 2,500
cases on a nearly equal number of charges.^" In
November 1946 the Allied Commission reported
a considerable decrease in the work of both courts.
General Order no. 6 reestablislied the civil
courts "constituted under the laws of the Occupied
Territory in effect on the 8th September 1943","
in accordance with the provisions of article I of
proclamation no. 1.-* The Allied Commission re-
ported periodically that the civil courts continued
to function with "reasonable satisfaction".
It took a considerably longer period, however,
to train, equip, and clothe the civil police of Vene-
zia Giulia. Until the force was formed. Allied
provost units performed police functions. In
December 1945 the Allied Commission reported a
police force of 1,950 and in February 1946 one of
2,788. By March 1946 that number had grown to
3,771 and by November to 4,450.^ Despite some
strikes and disturbances the volume of crime re-
mained at approximately the prewar level.
Ediication
The educational problem was a critical one be-
cause the Army had requisitioned so many build-
ings and because the Slovene and Croat minorities
lacked established schools in a zone predominantly
Italian. After a month of intense planning and
Department of State Bulielin
preparation, the elementary and secondary schools,
Italian and Slavic, were opened in October 1945.
In December the following schools were open and
functioning : '"
Italian Schools
Number
Enrolment
Teachers
Kindergarten __
20
533
27
14
20
1,702
28, 027
5,530
4,530
6,351
75
Elementary . . _
1,740
Lower trade _ _
348
Lower secondarj'
313
Upper secondarj'
504
The University of Trieste opened November 25,
1945; on November 30 it had an enrolment of
1,427 students and a teaching staff of 19 professors.
Slovene or Croat Schools
Kindergarten
Elementary
Lower trade
Lower secondary.
Upper secondary.
Number Enrolment Teachers
2
105
80
11, 802
1,003
380
203
50
32
Official recognition was given only to those
schools which were regularly constituted in ac-
cordance with directives issued by AMG. Only
officially recognized schools were permitted to use
public-school property and in such schools only
were teachers entitled to receive salaries from pub-
lic funds.^^ At the time the schools opened there
was a shortage of Italian secondary i^rofessors
and of trained Slavic personnel. Many teachers
seeking posts in the Slovene schools had only an
elementary education plus one or two months of
special training. The need for a "substantial
number of qualified Slovene speaking teachers"
for the elementary schools of Zone A brought
about the establishment of a Slovene teacher-
training course. Effective April 10, 1940, candi-
dates enrolled for the six months' course at the
Slovene Normal School at Gorizca.^^ This was
followed by parallel action establishing the "Ele-
mentary School Teachers' Courses for the
Improvement in the Croatian Language." Candi-
dates were to present themselves at the Normal
Teachers School at Pola by October 1, 1946, the
opening date of the six months' course.^^
June 29, 1947
748791 — 47—2
In the meantime provision was made for Slavic
elementary schools in communes where one such
school or schools had existed on June 1, 1914, or
in communes where there were "25 children de-
sirous of attending a Slavic (Slovene or Croat)
elementary school within a radius of four (4)
kilometers." The organization of these Slavic
elementary schools was to be "the same as that of
similar elementaiy schools provided by Italian law
prior to 8 September 1943, except as regards re-
quired changes provided to meet the characteristics
of a Slovene or Croat language. Any modifications
that should prove necessary will be made on ap-
proval of the Chief Education Officer; however,
the character of said school and the language
adopted therein shall remain entirely Slovene or
Croat." ^* New parallel classes might be added
in case of necessity. The opening and functioning
of each school and the number of classes required
the approval of the Chief Education Officer of
AMG. At the end of one year administration of
elementary schools within the Territory was vested
in the following : (1) Education Division of AMG ;
(2) superintendents of schools; and (3) Councils
of Discipline and school councils.^ Area school
councils had been constituted at the Superin-
tendency of Schools of Trieste, Gorizia, and Pola.^
Secondary schools conducted in the Slovene lan-
guage, like the elementary schools employing the
same language, required approval for opening.
Approval of these new schools was based upon:
(a) number of students enrolled; (b) qualifica-
tions of teachers ; ^^ and (c) school buildings avail-
able.
" Statistics taken from monthly reports of tiie Allied
Commission.
" Administrative Instruction — Education, no. 9, Trieste,
Oct. 16, 1945 (The Allied Military Qovemment Gazette,
no. 6, 15 Nov. 1945, p. 5).
"Order no. 118, Trieste, Apr. 21, 194() (iUd., no. 18, 15
May 1946, p. 31).
== Order no. 245, Trieste, Oct. 17, 194G {ihid., vol. II, no.
3, 1 Nov. 1946, pp. 144-145).
"Administrative Instruction — Education, no. 8, Trieste,
Oct. 8, 1945 (ihid., no. 12, 15 Feb. 1946, p. 26).
"^ Order no. 268, Trieste, Nov. 12, 1946, defines the func-
tions of school officials (iUd.. vol. II, no. 5, 1 Dec. 1946,
pp. 250-251).
=' Order no. 219, Trieste, Sept. 27, 1946 {ibid., vol. II, no.
2, 15 Oct. 1946, pp. 82-84).
" Sec. VI of Administrative In.struction — Education no.
4, August 1945 {ibid., no. 12, 15 Feb. 1946, pp. 18-23).
1363
Department o) Slale. Map On-Sion
10719 June 1947
1264
Department of State Bulletin
Procedures to be followed for the opening of
all universities, academies, higher institutes, and
cultural institutions were set up in Administrative
Instruction — Education No. 6.^' Machinery for
purging the teaching and administrative staffs was
created. On completion of the initial epuration,
titular professors not suspended were to elect a
rector and a dean.
In the summer of 1945, all books containing
Fascist material were banned. Subsequently lists
were prepared of elementary and secondary books
suitable for use in the schools of the Occupied
Territory. Anj' teacher using unauthorized
material, "whether printed, typed, mimeographed
or otherwise duplicated", was subject to discipli-
nary action including dismissal.^" No textbook
was to be published, except as authorized in writ-
ing by the Education Division of AMG.*"
As conditions warranted, AMG added new
courses. For example, in the case of the Univer-
sity of Trieste it expanded the already existing
faculty of science into the faculty of mathemati-
cal, physical, and natural sciences and added a
two-year course of studies preliminary to the
degree course in chemistry.'*^ It likewise estab-
lished the Slovene Lower-Professional School at
Gorizia.*^
Termination of Control
By 1947 the Allied Commission had shifted
much of its authority to local officials under orders
and instructions establishing schools, courts, and
a special police force for the Occupied TeiTitory.
Its main task was completed. As elsewhere in
Italy it had assisted in preparing the govern-
mental administration and economy for restora-
tion to the rightful sovereign authority. It there-
fore ceased to exist as of February 1, 1947. The
Allied treaty of peace with Italy, dividing Venezia
Giulia between Italy and Yugoslavia, was signed
on February 10.^^ Pending ratification of the
treaty, forces of Allied Military Government re-
main in the Occupied Territory. These must be
withdrawn at the latest "90 days from the coming
into force" of the Italian treaty .^^
ANNEX
ALLIED MILITARY GOVERNMENT OF VENEZIA GIULIA
Proclamation No. 1
To the people of those parts of VENEZIA OIVLIA which
are occupied hy the Allied Forces:
In order to hasten the rehabilitation of areas which the
Allied Forces have freed from German occupation and
to ensure the proper administration thereof, to provide
for the safety and welfare of yourselves and of the Allied
Forces, and to preserve law and order, a Military Govern-
ment must be established in this temtory. This Military
Government will have full control over the administration
of this territory and will have power if necessary to try
in its own courts and punish any persons who commit
offences against any of the special laws and provisions
promulgated by the Military Government or against the
laws and usages of war or the law of the territory.
Now, therefore, I, Haeold R. L. G. Alexandeb, G.C.B.,
C.S.I., D.S.O., M.C., A.D.C., Field-Marshal, Supreme
Allied Commander, Mediterranean Theatre of Operations,
hereby proclaim as follows:
PART I: ESTABLISHMENT OF MILITARY
GOVERNMENT
Article I. — All powers of government and jurisdiction in
June 29, ?947
those parts of the territory of Venezia Giulia occupied by
Allied troops and over its inhabitants, and final adminis-
trative responsibility are vested in me as Military Com-
mander and Military Governor, and Allied Military Gov-
ernment of such territory is hereby declared and estab-
lished to exercise these powers under my direction. All
administrative and judicial officials and all other govern-
ment and municipal functionaries and employees and all
otEcers and employees of state, municipal or other servics
"August 194.'5 (iwa., no. 12, 15 Feb. 1946, pp. 24-25).
™ Order no. 89, Trieste, Mar. 20, 1946 (ibid., no. 16,
15 Apr. 1946, p. 29).
"Administrative Instruction — Education, no. 4, iUd.,
sec. VIII.
" Order no. 283, Trieste, Dec. 20, 1946 (iUd., vol. II, no.
7, IJan. 1947, p. 333).
"Administrative Instruction — Education, no. 10,
Trieste, July 9, 1946 (ihid., vol. II, no. 1, 10 Oct. 1946,
p. 49).
"Art. 3. For text of treaty, see Department of State
publication 2743, European Series 21.
" Ihid., art. 73.
1265
(except such as may be removed by me) are required to
continue in the performance of their duties, subject to my
direction of such of my officers of the Allied Forces as I
may depute for that purpose.
Article II. — All persons in the said territory will obey
promptly all orders given by me or under my authority and
must refrain from all acts hostile to the troops under my
command, from all acts of violence and from any act
calculated to disturb law and order or public safety in any
way. So long as you remain peaceable and comply with
my orders, you will be subjected to no greater interference
than may be inevitable in the course of the administrative
ta.sk of the Military Government.
Article III. — Your existing personal and property rights
will be fully respected and the laws of the territory, in
effect on the 8th September, 1943 will, remain in force and
effect except insofar as it may be necessary for me. In the
discharge of my duties as Supreme Allied Commander and
as Military Governor, to change or supersede them by
proclamation or other order by me or under my direction.
PART II: OFFENCES
Article IV. — Offences Against the Alued Forces
Which Mat Be Punished by Death.
Any person who :
1) Serves the enemy as a spy or harbors or aids an
enemy spy ;
2) Communicates with the enemy or with any person
within territory under their control in any manner or on
any subject whatever or enters any territory under enemy
control ;
3) Sends to any person any where any communication
giving any Information whatever concerning the Allied
Forces or receives any such commuication and fails
promptly to report the same to the Allied Military
Government ;
4) Bears arms against the Allied Forces;
5) Has in his possession any fire-arms, ammunition, ex-
plosive, or similar war supplies except in accordance with
a permit of the Allied Military Government ;
6) Has in his possession any wireless or other apparatus
for transmitting signals or other messages ;
7) Misleads any member of the Allied Forces in the
performance of his duties ;
8) Assists a prisoner of war to escape or assists or con-
ceals any prisoner of war after escape ;
9) Assists any of the enemy armed forces to evade cap-
ture;
10) Enters or Is found within any area designated as a
forbidden area either by the posting of a sign, or by the
presence of sentries, without a pass specifically authoriz-
ing him to be there ;
11) Destroys, damages, endangers, interferes with,
steals or wrongfully either receives or has in his posses-
sion any property of the Allied Forces or ft)r any member
thereof to the aggregate value of more than 10,000 Lire ;
12) Interferes with communication by mail, courier,
telegraph, telephone, cable, radio, or otherwise, or re-
moves or damages any telegraph, telephone or electric
power wire ;
1266
13) Interferes with transportation by land, water or
air;
14) Interferes with the operation of any public service
or utility, including water supply, electric light and power,
gas and sanitation or similar services;
15) Kills any member of the Allied Forces;
16) Assaults any member of the Allied Forces with in-
tent to kill or inflict serious bodily harm ;
17) Commits any act of looting;
18) Robs the dead or wounded ;
19) Rapes any nurse or other woman serving with the
Allied Forces or assaults any such nurse or other woman ;
20) Forges or alters any permit, pass, identity card or
other similar document or issues or has in his possession
any such document, the same having been forged or al-
tered ;
21) Incites any inhabitants of the occupied territory to
insurrection against military authority, or organizes or
leads any public demonstration or assembly for such pur-
pose;
22) Counterfeits any coin or note made legal tender by
the Allied Military Government, or has in his possession
any such coin or note knowing the same to ge false; or
23) Otherwise violates any of the laws of war, or does
any act in aid of the enemy or hostile to or endangering
the safety or security of the Allied Forces ;
shall upon conviction by an Allied Military Court, be lia-
ble to punishment by dejith, or by imprisonment or fine or
both, as the court may determine.
Article Y. — Offences Against the Allied Forces Pun-
ishable BY FINE OB IMPBISONMENT.
Any person who :
24) Is out of doors without a permit after curfew;
25) Leaves the shore in any vessel or in any other man-
ner except as authorised ;
26) Gives false evidence before a Military Tribunal ;
27) Destroys, damages, endangers, interferes with,
steals or wrongfully either receives or has in his posses-
sion any property of the Allied Forces or of any member
thereof to an aggregate value of not more than 10,000 Lire ;
28) Fails to declare within one month of the date of
the posting of this proclamation the possession of any
stores, equipment or military property abandoned by the
enemy or of enemy origin ;
29) Submits a false, fraudulent or exaggerated claim
against the Allied Forces or any member thereof;
30) Published or has in his possession any printed or
written matter detrimental or disrespectful to the Allied
Forces or any member thereof, to the Government of any
of the United Nations or to the Allied Military Govern-
ment;
31) Utters any speech or words hostile or disrespectful
to the Allied Forces or any member thereof, to the Gov-
ernment of any of the United Nations or to the Allied Mili-
tary Government;
32) Assaults any member of the Allied Forces ;
33) Takes part in any public demonstration or assembly
not authorised by the Allied Military Government ;
Department of Sfofe Bulletin
34) Falsely pretends to be acting under the authority
of the Allied Forces or the Allied Military Government ;
35) Offers or accepts a bribe in connection with any
official matter;
36) Obstructs any member of the Allied Forces in the
performance of his duty ;
37) Acquires by gift or purchase any military equip-
ment or war material belonging to the Allied Forces ;
38) Disseminates any rumour calculated to excite or
alarm the people ;
39) Makes any false statement in connection with any
official matter;
40) Removes or damages any notice, proclamation, or
order posted under the authority of the Allied Military
Government ;
41) Fails to have in his possession at all times a proper
means of identification as required by existing law ;
42) Disobeys any order given under the authority of
the Allied Forces or the Allied Military Government where
no specific punishment is prescribed ;
43) Promotes or attends any meeting of the fascist
party ; uses or permits premises to be used for any such
meeting ; prints or publishes or has in his possession any
printed or written matter issued by or on behalf of the
fascist party ; teaches or advocates any doctrine of fascism ;
wears or has in his possession any badge, Insignia or
attire of the fascist party ; makes or receives any subscrij)-
tion to the funds of the fascist party ; takes or receives
any oath or undertaking to the fascist party or does any
act intended or likely to promote or sustain the fascist
party, the term fascist party including any organisation
designed to replace it ;
44) Infringes any proclamation or order or the laws
regulating or controlling the sale purchase, distribution,
allotment, rationing or transporting of any commodity
or article ;
45) Does any act to the prejudice of good order of the^
occupied territory or of the safety or security or the Al-
lied Forces or any member thereof ;
46) Until further order of the Allied Military Govern-
ment travels more than 10 km beyond his own home with-
out a permit;
shall, upon conviction by an Allied Military Court, be liable
to puni-shnient by such fine or imprisonment, or botli, as
the court shall direct.
Article VI. — 0th ee Offences.
Section I : Conspiracy, advising or assisting violation. —
Any person who conspires to do any act constituting an
offence, or who advises, assists in, or procures the com-
mission of any .such act shall be puni.shable as a principal.
Section II : Attempts. — An attempt to do any act which
constitutes an offence shall likewise consitute an of-
fence which shall be punishable to the same extent as
though the act had been committed.
Article VII. — Violation of the Laws of the Tekkitory.
Any person who violates or has violated any provision of
the laws of the territory may be brought to trial before an
Allied Military Court and, on conviction, may be puni.shed
as provided by such law.
Article VIII. — Arkest and Detention.
Section I : Arrest and Search. — Any authorized mem-
ber of the Allied Forces may :
a) Arrest or search any persons suspected of having
committed or being about to commit offences ;
6) Enter and search any place and seize and take away
any property for the purpose of investigating or preventing
any offence or arresting a suspected offender.
Section II : Detention. — Any person suspected of com-
mitting or intending to commit any act hostile to the Allied
Forces or the Allied Military Government or engaging in
any political or other activity in the interest of the enemy
or its Armed Forces or hostile to the Allied Forces or the
Allied Military Government, may be detained pending fur-
ther investigation for a period not exceeding three months
unless the Regional Commissioner or Senior Civil Affairs
Officer orders that the detention may continue for a longer
period.
PART III: COURTS
Article IX. — Cebi^tion of Allied Military Courts.
Allied Military Courts are hereby established,
courts shall consist of :
Such
1) General Military Courts having jwwer to imjKJSe any
lawful punishment including death ;
2) Superior Military Courts having power to impose any
lawful punishment otlier than death or imprisonment for
more than 10 years ;
3) Summary Military Courts having power to impose
any lavFful punishment other than death t)r imprisonment
for more than one year or a fine of more than 50,000 Lire
or both such imprisonment and fine.
Where a Superior or Summary Military Court imposis
a term of imprisonment and a fine with a further term
of imprisonment in the event of default, the aggregate of
such terms shall not exceed 10 years and 1 year respec-
tively.
Article X. — Jurisdiction.
The jurisdiction of the Allied Military Courts extends
over:
1) All persons except :
o) Members of the Allied Forces, and
6) Prisoners of war.
2 ) All offences :
a) Against the laws and usages of war ;
6 ) Under any proclamation, order or regulation issued
under the authority of the Allied Military Government ;
c) Against the laws of the territory.
Article XI. — General Power of Courts.
1) An Allied Military Court may make such orders and
do all such acts and thinss as may be requisite for the due
administration of justice.
Jyne 29, 7947
1267
2) An Allied Military Court, in lieu of or in addition to
any other punishment, may
a) Where any jwrson is convicted of the wrongful use,
sale, purchase or possession of any property (including
money), order restitution or compensation to the owner
or confiscation or forfeiture of such property to the Al-
lied Military Government;
6 ) Where any person is convicted of an offence involv-
ing the improper use of any place of residence or busi-
ness, order that such place be vacated or closed for a
period of time to be fixed by the court ;
c) Order that a convicted person shall reside in or be
excluded from a particular area.
Article XII. — Review and Confirmation of Death Sen-
tences.
Section I : Right of Petition.— Any person convicted by
an Allied Military Court may, within thirty days after the
imposition of sentences, present to the trial court or the
Provincial Legal Officer a petition, submitting reasons why
the conviction should be set aside or the sentence should
be modified.
Section II : Sentence of Death. — No sentence of death
shall be executed unless and until confirmed in writing by
me, or by a specified officer not below the rank of Brigadier-
General or Brigadier to whom I may have delegated such
power in writing.
Article XIII. — ErFECnvE Date.
This proclamation will become operative in each prov-
ince or part thereof within the said territory of Venezia
GiuuA on the date of its publication therein.
Date of FmsT Publication.
The above Proclamation was first published in the
Province-Comune on the day of
1945, by
Habold R. L. G. Alexandeb
Field-Marshal,
Supreme Allied Commander
Mediterranean Theatre of Operations.
(State method of publication).
Signature of Publishing Officer.
Administrative Instruction — Education, No. 4
SPECIAL ORDERS AND AUTHORIZATION FOR OPENING AND FUNCTIONING OF SCHOOLS IN
VENEZIA GIULIA, ALLIED MILITARY GOVERNMENT
I. — Italian Law
1. — AH existing Italian Laws and regulations prior to
September 1943, relative to the educational system and
the functioning of the schools shall continue in full force
except where the present orders and authorizations negate,
replace or supplement them. In general it is the policy
of the Allied Military Government to avoid any change in
the legal situation, the administrative organization, or
the school program, except where changes are necessary
to eliminate Fascism or to make schools function effec-
tively.
2. — The Italian Minister of Public Instruction has no
jurisdiction over the territory of Venezia Giulia under
Allied Military Government. All public and private
schools are under the jurisdiction of Allied Military Gov-
ernment— 13 Corps, Education Division.
11. — Administration
1. — As Area Superintendent of Schools you will be
' Not printed.
1268
responsible for the organization and administration of
all elementary schools of the Area.
2. — You will first put in order the Office of the Super-
intendent and employ sufficient staff to operate the schools
efficiently. These appointments must have the approval
of the Area Commissioner.
3. — With the approval of the Chief Education Officer,
you will be responsible for the confirmation of all Heads
of secondary schools, and all Inspectors and Directors
of elementary schools in the Area, who are not suspended
(see IV below). To replace any such officials who may be
absent or any who may not be approved, you will appoint
(with the approval of the Chief Education Officer of the
Allied Military Government) other qualified persons "in-
caricati" for terms not to exceed one year.
III. — Opening of Scliools
1. — All schools will be opened on a date fixed and notified
to you by the Area Commissioner.
2. — Before any given school is opened you will give a
copy of Administrative Instruction No. 5 ' to the Head of
Department of State Bulletin
the secondary school, or the Inspector and Director of
the elementary school concerned.
3. — You will be personally responsible for seeing that
no Fascist doctrine is taught and no Fascist rites, ceri-
monies or symbols are used, and no anti-Allied propaganda
is promulgated in any school under your jurisdiction.
4. — Asili and Private Schools will also be opened at
the earliest time possible. These will first have the ap-
proval of the Area Commissioner. They will be under
the general supervision of the Superintendent of Schools,
expecially in regard to the use of approved programs and
textbooks and the avoidance of Fascist activities and
propaganda.
IV. — Defascism
1. — Within 10 days you will submit to the Area Commis-
sioner, for the Chief Education Officer, Schede Personal!
for all Heads of secondary schools and all Inspectors and
Directors of elementary schools in the Area along with
recommendations concerning their retention or suspen-
sion. For those who are unable, through absence or other
cause, to submit Schede you will submit a list of such
persons who should be suspended or confirmed and give
reasons for your recommandations in each case.
2. — It will be your responsibility to submit Schede Per-
sonal! for teachers of all grades and for all employees of
your administration to the Public Instruction Section of
the Area Commission for Epuration.
3. — You will be notified in writing by the Area Com-
missioner of those whom he has suspended. Following
such notice you will transmit this information to the
individual concerned notifying them of their right to
appeal before an Area Commission. Personnel suspended
or dismissed by the Area Commission for Epuration, will
be dealt with in accordance with General Order No. 7.
4. — Such persons as are suspended must be replaced
by "incaricati", by persons whom the Superintendent of
Schools considers to be trustworthy, non-fascist and com-
petent. The names and positions of such persons must
be submitted to the Area Commissioner for the Chief
Education Officer. Within 10 days, a completely filled
out Scheda Personale for each of these officials must be
submitted to the Area Commissioner for transmission to
tlie Chief Education OflJcer and approved by him. Until
such approval is obtained, all appointmenst shall be re-
garded as provisional.
5. — AH newly-appointed Heads of secondary schools and
all newly appointed Inspectors and Directors of element-
ary schools shall be "incaricati".
6. — In complying with the foregoing your attention is
called to General Order No. 7 of the Allied Military
Government on the basis of which the following persons
are suspended from service :
a) Any person, particularly one in high office, who has
partecipated notively in the political life of Fascism, or,
by showing himself as a consistent apologist of Fascism,
has shown that he is unworthy of serving the State.
6) Any person who has obtained an appointment or
promotion through favoritism of the party or of Fascist
officials of high rank.
c) Any person who has been guilty of active Fascist
partisanship or cormpt practice.
d) Any person who has held the position of "Squad-
rista," "Sansepolcrista", "Antemarcia" "Marcia su Ro-
ma", "Seiarpa Littorio" or who has been an officer in the
Fascist militia.
e) Any perison who, after 8 September 1043, followed
the Fascist Government to the North of Italy, or who has
pledged allegiance to or has in any way collaborated with
said Fascist Government.
V. — Transfers of Teachers
1. — Transfers of teachers and other school personnel
during the school year will be kept to a minimum and
only considered where really necessity exists. Trans-
fers from lower to higher position will be considered only
in exceptional cases.
2. — Request for transfer may be made by the teacher or
other person concerned to the Superintendent of Schools
in the Area in which the person in question is residing at
the time.
3. — Any Superintendent, convinced of the need for a
transfer, may, either on his own initiative or on request
of the person concerned, make appropriate application to
the Area Commissioner for transmission to the Chief
Education Officer.
4. — With the approval of the Senior Civil Affairs Offi-
cer, teachers in one Area may be given "comandi" for
service in another Area in Military Government territory
for periods not to exceed one school year.
VI. — Organisation of Schools
1. — You will submit to the Area Commissioner for trans-
mission to Headquarters 13 Corps Allied Military Gov-
ernment the following information at the earliest possible
date:
a) Names of all Presidi and other secondary schools-
Heads and the name and type of school which each wiU
direct.
6) Names of Inspectors of elementary schools and the
commune under the jurisdiction of each.
c) Names of Directors of elementary schools and the
"circle" each will direct.
d) A list, on the form provided, of all schools in the
Area which operatin normal times.
2. — The organisation of asili and elementary schools
will remain the same as that which existed during the
past year.
3. — The Scuola Media Unica will be known as the
Scuola Media Inferiore. It essential structure will re-
main unchanged but all Fascist elements will be removed
and replaced. The course of all Scuole Medie Inferiori
wiU be three years in length.
4. — Whether independent or attached to an Istituto
Magistrale, an Istituto Tecnlco, a Llceo Scientifico, or a
Ginnasio Superiore and Liceo Classico, certificate of grad-
uation from any Scuola Media Inferiore will admit any
student to any type of higher secondary school.
iune 29, 1947
1269
5. — Superior Secondary Schools will be as follows :
a) Istituto Magistrale — four years
6) Istituto Tecnico — five years
c) Liceo Seientiflco — five years
dl) Ginnasio Superiore — two years
e) Liceo Classico — three years
6. — When a Superintendent of schools finds that in a
commune there are a number of children desiring second-
ary education, that no appropriate secondary school exists
in that Commune, and that there is no adequate traspor-
tation available to enable children to attend an existing
secondary school in a neighboring Commune, the Superin-
tendent of schools is authorized, upon approval by the
Senior Civil Affairs Officer to arrange with a secondary
school in another commune to establish classes "distac-
cate" in the commune which needs them.
7. — Elementary schools conducted in the Slovene or
Croat language for Slovene or Croat students will be
opened wherever needed and will be alloted in proportion
to the Slavic population of each locality. The opening of
each such school will be approved by the Senior Civil Af-
fairs Officers. Locality number of students enrolled, num-
ber of personnel employed and their qualifications will be
listed in the request for approval of each new school.
8. — Secondary schools conducted in the Slovene Lan-
guage for Slovene students will be opened upon approval
of the Senior Civil Affairs Officer. Approval of new sec-
ondary schools will be based on :
a ) Number of students enrolled
6) Qualification of teachers
c) School buildings available.
VII. — Programs of Study
1. — Programs for all elementary and secondary schools
in whatever language conducted, shall be those authorized
by the Senior Civil Affairs Officer. The Superintendent of
schools will be responsible for the execution of this order.
2. — For the schools of "Avviamento Professionale" and
the "Scuole tecniche" no new programs have been pre-
pared. Directors and teachers of such schools may use
as a base the old programs with all elements of Fascism
removed, but may modify these programs freely to fit local
conditions and needs.
VIII.— Textbook
1. — Anti-fascist materials
(a) You will be personally responsible for seeing that
no textbooks containing fascist or anti-ally propaganda
are used in any schools under your jurisdiction. Appendix
"B" in the "Elenco Ufficiale", which accompanies this Ad-
ministrative Instruction, lists certain books which contain
such propaganda and which must be immediately confis-
cated. Appendix "C" Lists books which may be temporar-
ily used after the removal of the pages indicated. Ap-
pendix "D" is a list of books approved to date for use.
(6) An order is being sent to the Area President of each
Area requiring him to confl.scate from schools and book-
stores all Ijooks listed in Appendix "B". You will receive
later instructions as to the ultimate disposition or these
books. You will order Heads of secondary schools and
Directors of elementary schools to segregate and store in
locked room or turn over to the Communal President all
books containing Fascista propaganda including those of
Appendix "B" as shown in the abbreviated pamphlet "De-
fascistizzazione dei libri di testo" a copy of which you will
sent to each school-Head, Inspector and Director (suffi-
cient copies are enclosed herewith). School Heads and
Directors will report to you and you in turn will reiwrt to
the Area President the number of such books segregated
and the location where they are stored.
You will be responsible for inspecting schools and book-
stores and reporting to the Area Pre.sident failure to obey
these orders.
(c) You will obtain from the Communal President and
furnish to the Area Commis.sioner for transmission for the
Chief Education officer a list of all books confiscated, the
number of each, and the location in which they are stored.
2. — Elementary School Textbooks
The Superintendent of Schools will recommend to tlie
Area Commissioner, for reference to the Chief Education
officer, a list of persons to form two Committees (one Slav
and one Italian) on elementary school text books. The
committees will, at the earliest possible moment, recom-
mend for use for the school year 1945-46 any existing text
books or proposed manuscripts which are free from fascist
or other political propaganda, and are in accordance with
the official programs, and are otherwise suitable in content
and price for use in the elementary schools. The Super-
intendent of Schools will immediately submit these recom-
mendations to the Area Commissioner for the Chief Edu-
cation officer. Only such books as are approved by the
Chief Education (.)fflcer will be sold or bought, or used in
the schools.
3. — Secondary School Textbooks
In all secondary schools, public and private, only text-
books authorized by the Education Division, 13 Corps
AMG, shall be used. Appendices B, C, D, in the accom-
panying "Elenco Ulfciale" list textbooks that are con-
demned and those that are ajiproved. Books not in-
cluded in these lists or supplements hereto are to be
treated under two categories as follows :
(a) Textbooks in Greek, Latin, Mathematics, and phys-
ical sciences, and purely technical books in the applied
sciences or arts, may be approved by the Superintendent of
Schools, subject to the approval of the Area Commis-
sioner, provided that a list of such approved books must
be sent by the Superintendent of Schools through the
Area Commissioner, to the Chief Education Officer with
title, author, publisher and price of each.
(6) The Superintendent of Schools shall send to tlie
Area Commissioner for the Chief Education Officer, a
sample of each book which he wishes to have approved for
use in schools under his jurisdiction. He may use such
books temporarily pending a decision from the Ana
Commissioner.
4. — Price of Textbooks
(o) The maximum sale price of all books have been
established as follows:
1270
Deparfment of State Bulletint
— For folio sizes up to 70X100 cm., for each printed sheet
of 16 pages, L. 5.
— For folio sizes over 70X100 cm., for each printed sheet
of 16 pages L. 6.
— For illustrated books (at least one illustration to each
to sixteen-page folios, included in the text or outside
of text), an increase of l'>% on price fixed on number
of printed sheets as above.
— For geographical atlases, albums of design, albums of
history, of art and for special publications, an in-
crease of 100% over the original cover price.
( h) For .special books and new editions the price will be
fixed by Allied Military Government from time to Ume
according to the request made by the interested publishers.
The new price must appear on a small label on which will
be clearly indicated : The name of publishing House, the
new price and the statements "price authorized by Allied
Military Government".
(c) No other increase will be made in these new prices.
The booksellers will receive a discount of 2.5% on second-
ary school textbooks, 20% on elementary school textbooks.
The general tax rate remains in force.
(.d) Any book may be sold at a price lower than that
fixed above ; but no book shall be bought or sold at a
higher price.
(e) The price of elementary school textbooks shall be
that printed on the cover. Alternation of this price or the
sale of books at a higher price is strictly forbidden.
5. — Publication and sale of textbooks :
{a) Xo textbooks shall be published except as author-
ized in writing by the Education Division, Allied Military
Government.
6. — Elementary school textbooks for 1946-47 must be ap-
proved by proper authority before publication. Applica-
tions and manuscript for such textbooks must be submitted
to the Area Commissioner for transmi.ssion to the Chief
Education Officer.
7. — With the approval of the Area Commissioner, the
Superintendent of schools is authorized to purchase, for
resale to students, textbooks, quaderni and school .supplies,
whenever insufficiency of means of commercial distribu-
tion, or prices charged by commercial organization, make
such action desiderable.
IX. — Students
1. — Superintendents of Schools are authorized to permit
transfer of students at any time from any .school to an-
other of the same level.
2.^Fees of the Scnola Media Inferiore shall be the same
as those charged for the Scuola Media Unica formely.
3. — Other tuition fees will remain the same as those
charged during the school year liM2-43.
4. — With the approval of the Area Commissioner the
Superintendent of Schools may provide for examinations
3f students in secondary .schools at other than the regu-
larly specified times and places.
K. — Buildings and Equipment
1. — The Superintendent of Schools will consult with
June 29, 1947
748791—47 3
Communal Presidents concerning necessary buildings,
location, temporary repairs of buildings and the requisition
of other buildings for school purpose when buildings have
been damaged or destroyed.
2. — Where necessary the Superintendent of Scliools will
assist in finding locations for school purjwse. He may,
when necessary, require teachers to hold classes in their
own houses.
3. — Within thirty days from receipt of these orders, the
Superintendent of .schools will report on the condition of
all school buildings of the Area to Area Commissioner,
naming those damaged or destroyed, and those occupied
by troops, refugees, and other personnel, with the address
of each and an exact description of any civilian occupying
group.
XI. — Financing Schools
1. — Budgets
(a) For the payment of elementary teachers' salaries,
snd for other expenses of the Superintendent's office the
Superintendent of Schools will prepare and file with the
Intendenza di Finanza proper form furnished by the Area
Financial Officer.
(6) The Superintendent of Schools will see that each
Head of secondary school prepares and files with the In-
tendenza di Finanza the necessary budgets.
2. — Payment of Teachers' Salaries
(f/) The treatment accorded to teachers will conform in
principle to that approved for other public employees.
(b) The procedure of payment will be according to the
laws and regulations in force, subject to any amendments
by Allied Military Government.
(c) With respect to unpaid salaries relating to periods
during the Fascist regime, the Intendente di Finanza will
supply the details for processing of such claims.
id) Salaries for the jieriod subsequent to the Nazi-Fas-
cist regime will be provided through the normal budget
system referred to in the preceding section.
(e) All school personnel "di ruolo" will be paid accord-
ing to para a) above.
if) School personnel "incaricati" will be paid as from
the first day of the month in which they begin service.
(0) School personnel "supplenti" will be paid for the
actual days of service.
(h) Full salary will be paid to a person proposed for
suspension or dismissal until such time as Allied Military
Government or the Epuration Commission takes final
action of susiieusion or dismissal.
XII. — G. I. L. (Gioventu' Italiana Littorio)
1. — Activities and properties of GIL
(o) All activities carried on by ex-GIL are suspended.
(6) The Superintendent will as soon as possible arrange
to take over from the Intendenza di Finanza all ex-GIL
property which is necessary or desirable for the training,
recreation, or welfare of children or youth.
(c) He will give the Intendenza di Finanza a receipt for
.such property and from the personnel dependent from his
1271
office he will appoint a custodian or custodians to take
care of such property.
((?) He will transmit copies of the inventory to the
Area Commission for the Chief Education Officer.
(e) Temporary concession for use of movable and im-
movable property belonging to ex-GIL may be accorded —
with such precautions for its safety as in each case may
appear appropriate — only by the Superintendent of Schools
concerned, and solely for school purpose or to youth or-
ganizations of a cultural, recreative, sportive, or charitable
character.
if) Subject to proof of right to continued employment,
under the Allied Military Government orders on defascism,
teachers of physical education previously employed by the
eJcGIL will be temporarily assismed, under the jurisdiction
of the Superintendent of Schools to the secondary schools
of the Area.
2. — Payment of Salaries of Physical Education Teachei-s
(a) Payment of salaries will be according to Section XI,
para 2a.
(ft) The Superintendents of Schools will make such pay-
ments as they think due, reserving rights of adjustment
later. It is considered advisable that such allowances
only be paid as are provided for a professor "incaricato"
with a maximum of 26 hours of teaching.
3. — Dismissals of former G.I.L. employees
(n) The Superintendent of schools will dismiss all per-
sonnel '"di ruolo" of ex-GIL who have not been previously
dismissed by order of the Allied Military Government
(other than physical education teachers who will be dealt
with as in paras 1 and 2 above). They will be paid what-
ever indemnities are due to them under the existing law.
(6) Temporary employees of ex-GIL will also be dis-
missed by the Superintendent who will pay them an allow-
ance or half a month's pay for every year of service.
XIII.— School Lunches
1. — The Allied Military Government will, as far as pos-
sible make available to "asili" and elementary schools in
each commune a given amount of suitable foods for school
lunches. The price to be paid by the Commune, will be
fixed by arrangement between the Communal President |
and the Consorzio Agrario.
2. — It Is the responsibility of the Superintendent of
Schools through "Direttori Didattici", to cooperate with
the Communal Presidents in making provision in each ele-
mentary school for the preparation and serving of the
lunches.
3. — Full instructions will be sent to the Area President
to all Communal Presidents as to how to apply for these
lunches.
XIV.— Reports
During the first month you will report weekly and
thereafter monthly to the Area Commissioner for the Chief
Education officer concerning the status of the schools in
your area, and will include the statistical reports called
for on forms which will be furnished to you by the Chief
Education Officer.
August 19i5
AtFBED 0. Bowman
Colonel J. A. 0. D.
Senior Civil Affairs Officer
Current United Nations Documents: A Selected Bibliography
There will be listed periodically in the Buixetin a
selection of United Nations documents which may be of
Interest to readers.
Printed materials may be secured in the United States
from the International Documents Service, Columbia
University Press, 2960 Broadway, New York City. Other
materials (mimeographed or processed documents) may
be consulted at certain designated libraries iu the United
States.
General Assembly
Committee on the Progressive Development of Interna-
tional Lixw and Its Codification. Memorandum by
the Delegate for France. Draft Texts Relating to
the Principles of the Charter and Judgment of the
Nuremberg Tribunal. A/AC.10/34, May 27, 1947. Spp.
mimeo.
Draft Declaration on the Rights and Duties of States.
A/AC.10/39, June 5, 1947. 9 pp. mimeo.
1272
-Report of the Rapporteur, Professor J. L. Brierly, on
Item 3 (a) of the Agenda. A/AC.10/40, June 5, 1947.
11 pp. mimeo.
-Draft Convention for the Prevention and Punishment
of Genocide (Prepared by the Secretariat). A/AC.IO/
42, June 6, 1947. 9 pp. mimeo. Also, A/AC.10/42/
Add. 1, June 10, 1917. 1 p. mimeo.
-Continuation of the Report of the Rapporteur.
A/AC.10/43, June 6, 1947. 3 pp. mimeo. Also,
A/AC.10/46. June 10, 1947. 2 pp. mimeo.
Atomic Energy Commission
Proposals on Atomic Energy Control Submitted by the
Representative of the Union of Soviet Socialist Re-
publics at the Twelfth Meeting of the Atomic Energy
Commission on 11 June 1947. AEC/24, June 11,
1947. 5 pp. mimeo.
Department of Slate Bulletin
DNE YEAR OF THE PHILIPPINE REPUBLIC
!>y Edward TF. Mill
On July 4, I9J1.7, the Repuhlk of the Philippines will have
completed its first year as an independent nation. Born into
the family of nations on July 4, 194j6, after a histo7'ic 48-year
period under the American flag, the new republic faced im-
'm£nsely difficult a7id challe7iging proilems with independence.
This article summarizes and analyses the encouraging prog-
ress made iy the Republic of the Philippines during the first
year of independe7ice.
On July 4, 1946, in the city of Manila in the
Philippines, a new republic was born. This re-
jublic, to be known as the Republic of the Philip-
)ines, was born after years of struggle for inde-
pendence on the part of the Filipino people.
Jnder the American flag this had been a peaceful
itruggle for independence, a struggle whose ob-
ective had had the warm sympathy and interest
)f the American people. Finally on July 4, 48
rears after the United States entered the Philip-
)ines, the American flag was lowei'ed and the
r'hilippine flag raised as a symbol of the coming
(f age of the Philippine nation.
Not only did the Far East note the granting of
ndependence to the Filipino people, but also the
vorld as a whole showed keen interest in the birth
>f the new republic. Well known to the world was
he fact that the Philippine nation had suffered
ncalculable damage and destruction during the
•ecent war ; well known to the world was the fact
hat the Philippines faced tremendous jDroblems
n rehabilitation and reconstruction. Independ-
ence at any time was a challenge, but independence
it a time of national disaster and crisis seemed
sven more diflScult. Knowing this fact, many
[uestioned the advisability of the Philippine ship
)f state's being put adrift in the seas of inde-
)endence in such a period of economic and polit-
cal stress and strain.
Today, one year after independence, the Fili-
pino people have given their answer. Thanks to
their magnificent efforts and to the continued
close cooperation between the United States and
the Philippines, the seemingly impossible has
been done and the Philippine Republic lamiched
safely and securely into the family of nations.
Problems of Independence
In order to appreciate the nature of the diffi-
culties facing the Philippine nation in July 1946,
a brief review of the situation at that time is ap-
piopriate.^ Among the major problems facing
the new Republic were the following: economic re-
construction and rehabilitation; financial crisis;
law and order and the problem of agrarian unrest ;
assistance to Philippine veterans; and develop-
ment of the machinery for conducting relations
with other nations.
Perhaps most serious and immediate of all these
problems facing the Philippines was the problem
of economic reconstruction and rehabilitation.
Paul V. McNutt, United States High Commis-
sioner and later Ambassador to the Philippines,
'For a fuller description of these problems at the time
of independence, see the articles by Mr. Mill in the
Bulletin of June 9, 1910, p. 980, and Sept. 15, 1946, p. 475,
entitled "The Philippines Prepares for Independence" and
"The New Republic of the Philippines".
»one 29, 7947
1273
and many other leading Americans who visited the
Philippines stressed the critical situation facing
the country as a result of the war.^ Ambassador
McNutt, reviewing conditions in the Philippines,
on November 27, 1946, described the Philip-
pines as ... a land ravaged, brutalized, burnt
over, destroyed, economically crippled, psycholog-
ically shocked, and physically devastated . . .".^
So far as sheer physical destruction of the country
was concerned, the Ambassador summarized the
situation in the following words :
Before the war the total assessed value of the Philip-
pines was estimated at about two and a half billion dollars.
The estimated war damage, at pre-war replacement and
repair cost, is estimated at one billion dollars. Yet even
this is a completely misleading figure. Since liberation
there has been an inflation of approximately 500 per cent.
Basic commodities, including construction materials, trans-
portation, and food, cost exactly five times what they
did five years ago. If it were economically sound to esti-
mate reconstruction cost on present values . . . which
it is not, it would cost approximately five billion dollars
to repair the war damages to the Philippines.'
In the all-important field of trade relations,
the Philippines found its trade economy virtually
at a standstill as a result of the war. The Philip-
pine Government faced the necessity of restoring
trade relations as soon as possible. Until steps in
this direction were taken, Philippine economic
recovery would be certain to be seriously retarded.
On the financial side President Roxas made it
urgently clear that his Government faced a grave
and immediate budgetary crisis and requested as-
sistance from the United States as soon as possible.
In the matter of law and order, the Philippines
faced difficult problems as a result of the war.
Agrarian groups such as the Hukbalahaps had
seized arms from the Japanese during the occupa-
tion and were determined to obtain redress of
their grievances from the Government. The ad-
ministration of President Eoxas was faced with
the dual problem of restoring law and order with-
in the disaffected areas and at the same time pre-
' See Report on the Philippine Islands by Senator Millard
Tjdings made after his return from the Islands on June
7, 1945 ( S. Doc. .53, 79th Cong. ) ; radio address of Paul
V. McNutt, Feb. 23, 1940'; and other addresses by Mr.
McNutt.
' Address by Paul V. McNutt, Ambas.sador to the Re-
public of the Philippines, before the Beta Theta Pi Fra-
ternity, Indianapolis, Ind., on Nov. 27, 1946.
' Ibid.
' Ibid.
1274
paring and carrying out a broad program of
agrarian reform. Without substantial agrarian re-
form it would have been extremely difficult to have
achieved any degree of law and order i-egardless
of the force which may have been expended for
this purpose.
Of pressing concern also to the Roxas adminis-
tration was the need for granting assistance to
the veterans of the Philippine Army who had
fought with the United States during the recent
war and the guerrillas who had been recognized
officially by General MacArthur's headquarters
and had contributed vitally to the success of the
Philippine campaign. Prevented from obtaining
certain essential rights from the United States as
a result of technical barriers, the Roxas adminis-
tration sought the assistance of the United States
and prepared to take such steps as were possible to
aid the Philij^pine veterans.
Of less pressing concern but of vital importance
to the development of the Philippines as an
independent member of the family of nations was
the need for developing essential machinery for
the conduct of Philippine foreign relations. A
Philippine Department of Foreign Affairs was
needed, a Philippine Foreign Service was re-
quired, and certain basic agreements with other
countries were essential for Philippine participa-
tion in the community of nations.
In addition to these major problems, there were
a host of problems of approximately equal or less
importance demanding the attention of the new
Republic. These included the rehabilitation of
the educational system of the country, the stream-
lining of the administrative machinery of the
central government, the reorganization and re-
vitalization, of the Army, and the training of
numerous young Filipinos in various Govermnent
and technical skills.
Progress of the Philippine Republic
Under the vigorous and wise statesmanship of
President Roxas, whom former Ambassador
McNutt has described as "the equal of any head of
Government today",' the Philippines has energeti-
cally set out to meet and solve the vexing and chal-
lenging problems which confronted it in its
infancy as a nation.
Basis for Revival of Philippine Trade
One of the most basic of all the problems facing
Department of State BvUetin
the Eepublic has been the restoration of the trade
economy of the country. In United States Public
Law 371, approved April 30, 1946, known as the
Philippine Trade Act of 1946 or popularly as the
Bell act, provision was made for continuing close
Philippine-American trade ties after independ-
ence. The act specified that during the first eight
years of its life (until 1954), duty-free trade
would exist between the two countries, at the end
of which time Philippine and American products
coming into the country of the other would begin
to be assessed duty progressively at the rate of 5
percent each year until 1974 when all preferential
trade relations would cease and the full duties
would be imposed by each country. A system of
quotas is also established by this act. During the
period from January 1, 1946, to July 3, 1974,
in lieu of the system of graduated tariffs, special
declining duty-free quotas were established for
cigars, scrap tobacco, stenmied and unstemmed
filler tobacco, coconut oil, and buttons of pearl
or shell. An Executive agi'eement to carry out
the terms of the Philippine Trade Act was signed
in Manila on July 4, 1946, by representatives of
the two Governments.
The Roxas administration during the first year
of independence actively engaged itself in steps
to bring this act fully into force. On December
17, 1946, President Truman proclaimed the trade
agreement carrying out the act and the accom-
panying exchange of notes of October 22, 1946."
President Roxas in turn proclaimed his Govern-
ment's acceptance of the act on January 1, 1947.^
In accordance with the provisions of the act, the
President of the United States then proclaimed the
trade agreement as having officially entered into
force on January 2, 1947.'
Philippine acceptance of parity. Although the
trade agreement was officially proclaimed as hav-
ing entered into force on January 2, 1947, a still
further step remained to be taken by the Philip-
pine Government before continuance of the act
could be insured. This remaining act involved the
acceptance of the so-called parity or equal rights
amendment. This provision (section 341) of the
Philippine Trade Act reads as follows :
The disposition, exploitation, development, and utiliza-
tion of all agricultural, timber, and mineral lands of the
public domain, waters, minerals, coal, petroleum, and
other mineral oils, all forces and sources of potential en-
ergy, and other natural resources of the Philippines, and
the operation of public utilities, shall, if open to any per-
son, be open to citizens of the United States and to all
forms of business enterprise owned or controlled, directly
or indirectly, by United States citizens.
This section necessitated an amendment to the
Philippine Constitution and provoked consider-
able controversy in the Philippines." The Philip-
pine Congress referred the matter to the electorate
for decision in a national plebiscite. In the inter-
vening weeks before the plebiscite, which was held
on March 11, 1947, President Roxas made one of
the most intensive campaign tours of the entire
island netwoi-k ever undertaken by a Philippine
official. In speech after speech he appealed to the
Philippine electorate to support the proposed
amendment on the grounds of compelling national
self-interest and the need for close continuing ties
with the United States.^" By the time the plebis-
cite was held on March 11, the Roxas administra-
tion had successfully countered most of the argu-
ments of the opposition and a tremendous majority
of the people voted in support of the parity amend-
ment. This amendment is now in full effect.^
Vice President Quirino, visiting the United States
in May 1947, repeatedly called attention to the
provisions of the trade act and urged American
capital to take advantage of its opportunities in
the Philippines.
Over-all foreign trade in J946. While the
Philippine Government was taking steps to build
" Bulletin of Dec. 29, 1946, p. 1190.
' Bulletin of Jan. 19, 1947, p. 129.
" Ibid.
'Art. XIII, sec. 1, of the Philippine Constitution read as
follows: "All agricultural, timber, and mineral lands of
the public domain, waters, minerals, coal, petroleum,
and other mineral oils, all forces of potential energy, and
other natural resources of the Philippines belong to the
State, and their disposition, exploitation, development, or
utilization shall be limited to citizens of the Philippines,
or to corporations or associations at least sixty per centum
of the capital of which is owned by such citizens, subject
to any existing right, grant, lease, or concession at the
time of the inauguration of the Government established
under this Constitution."
" See the address by President Roxas before the Univer-
sity of the Philippines Alumni Association in Manila on
Sept. 28, 1946 ; the speech before the Philippine Bar Asso-
ciation on Oct. 12, 1946 ; and his speech before the faculty
and student body of the University of the Philippines on
Nov. 19, 1948.
"Joint Resolution of the Congress of the Philippines,
adopted Apr. 9, 1947.
June 29, 1947
1J75
the groundwork for restoration of the trade econ-
omy of the islands, figures showed that the trade
life of the country was again slowly reviving.
During 1946 exports of Philippine jDroducts
totaled ^=106,057,387 — not including re-exports
amounting to ^=22,317,662. By way of comparison,
Philippine exports in 1940 totaled ^305,320,000.
Of the 1946 exports about 73 percent or ?1'6,360,000
went to the United States. France, Great Britain,
Canada, and Norway also received Philippine ex-
ports. On the import side, the Bureau of Census
and Statistics reported total imports of ?591,717,-
149, of which f=513,244,000 or 87 percent came from
the United States and Hawaii. Total Philippine
imports in 1940 were f=269,462,542.
The above figures show that Philippine trade is
again reviving. This trend must continue if the
country is to prosper and to maintain the standard
of living of the past. The size of the present im-
port trade is, of course, in excess of normal im-
port requirements, because of the devastation
caused by the war, and time will undoubtedly bring
a readjustment in import figures.
With the Executive trade agreement serving as
the core of Philippine trade development, the
Roxas administration expects to continue to
strengthen the Philippine trade position in the
years to come.
Progress of Rehabilitation PrograTn
Substantial progress in the tremendous task of
Philippine reconstruction was made during the
first year of Philippine independence. Basic to
the progress of the rehabilitation program was
^ Indicative of the careful work which must go into the
investigation of each claim is the follovping statement of
the War Damage Commission : "Each claim received must
be screened, indexed, and docketed. Claims must be
given a preliminary examination, and the amount of
damage or insurance payments requested from or made
by any other agency of the Government or by an insurance
company must be determined. The title to the property
lost or damaged must be investigated, and the original
cost and replacement value of the loss must be determined.
The Commission must ascertain whether replacement of
the specific property lost shall be required, and whether
surplus property may be used in partial or complete settle-
ment of the claim. The amount of payment to be awarded
must be determined and certified, and the accounting rec-
ords completed." (United States Philippine War Damage
Commission, Manila, First Semiannual Report for Period
Ending December 31, 19^6, United States Government
Printing Office, Washington, 1947, p. 4.)
1276
Public Law 370, known as the Philippine Rehabili-
tation Act of 1946. This act created a Philippine
War Damage Commission empowered to pay out
400 million dollars in war-damage claims to Philip-
pine and American claimants, provided for the
granting to the Philippine Government without
reimbursement of surplus property the "fair
value" of which was not to exceed 100 million dol-
lars, and authorized the spending by United States
agencies of over 120 million dollars in various re-
habilitation and training projects in behalf of
the Philippines.
In addition to the Rehabilitation Act passed by
the United States Congress, the Philippine Gov-
ermnent also took steps to further reconstruction
of the devastated land. Among these measures
was the establishment of a Philippine Rehabilita-j
tion Finance Corporation. Philippine agricul-*
ture, hard hit by the war, also was a subject of in-
tensive study by the Philippine Government, and
a special United States Agricultural Mission was
sent to the Philippines by the Department of Agi"i-
culture at the request of the Philippine Govern-
ment. Some discussion and planning was also
undertaken with regard to small-scale industrial-
ization in the Philippines.
ImpleTnentation of the Philippiiie Rehabilita-
tion Act : War Damage C omnussion. The Phil-
ippine War Damage Conamission, composed of
Frank A. Waring, Francisco A. Delgado, and John
O'Donnell, faced one of the most difficult tasks
facing any rehabilitation agency in the Philip-
pines. The Commission estimated that one third
of the families in the Philippines had suffered
property losses and that at least 900,000 individual
claims for compensation and 100,000 claims of
firms, corporations, and others, as well as about
1,000 consolidated claims of Government agencies
and entities would be filed. With payments to
claimants limited to a total of 400 million dollars,
it was obvious that the Commission faced tremen-
dous difficulties in effecting a satisfactory settle-
ment of all claims.'^
Despite the difficult nature of the task assigned
it, the Commission made commendable progress
during the past fiscal year. The Commission was
organized with six major operating divisions,
offices set up in the Philippines, and personnel re-
cruited for the complicated tasks involved. On
December 16, 1946, in a special ceremony held in
Department of State Bulletin
Manila before a convention of provincial gov-
ernors, treasurers, district engineers, and superin-
tendents of schools. Chairman Waring and
Commissioner Delgado presented an advance pay-
ment of one million dollars to the Philippine
Government on the first claim filed by that
Government under the provisions of the Eehabili-
tation Act. This payment inaugurated the pro-
gram of payments, and since that time the War
Damage Commission has been endeavoring to
speed up the payment of claims to both private
and public claimants. The work undertaken by
the Commission is of prime importance in the
economic recovery of the Philippines.
Surplus property. Title 2 of the Philippine
Rehabilitation Act of 1946 authorizes the granting
to the Philippines without reimbursement of sur-
plus property, the "fair value" of which is not to
exceed 100 million dollars. The Office of the
Foreign Liquidation Commissioner of the Depart-
ment of State has been responsible for carrying
out the provisions of this portion of the Rehabilita-
tion Act. By February 28, 1947, 154 million dol-
lars' worth of surplus property at procurement cost
had been turned over to the Philippines. It was
estimated that these goods had a "fair value" of
45 million dollars and that they thus represented a
45 percent completion of the 100 million dollars'
worth of surplus property to be transferred under
the provisions of the act."
In order to handle the transactions in surplus
property, President Roxas appointed on Novem-
ber 18, 1946, a Surplus Property Commission com-
posed of Placido L. Mapa, Arsenio N. Luz, and
Gabriel K. Hernandez. This Commission per-
formed a most important function but was con-
fronted with numerous difficulties. Among these
difficulties was that of countering numerous
charges of irregularities hurled at it by some
Philippine Congressmen. Committees of the
Philippine Congress conducted investigations of
surplus-property transactions during May 1947.
Progress of United States rehabilitation
agencies. Under title 3 of the Rehabilitation Act
of 1946, provision is made for the operation in
the Philippines of eight different United States
Government agencies during the period 1946 to
1951. These agencies — the Public Roads Admin-
istration, the Army Corps of Engineers, the
Public Health Service, the United States Mari-
Jwne 29, 1947
time Commission, the Civil Aeronautics Adminis-
tration, the Weather Bureau, the Fish and
Wildlife Service, and the Coast and Geodetic
Survey — are authorized to engage in various
programs of rehabilitation, reconstruction, and
training for the Philippines. Their contributions
to Philippine rehabilitation are considered to be
of an indispensable character, and their progress
in carrying out their mandate under the Rehabil-
itation Act has been closely watched.
At the present time each of these agencies main-
tains an office in Manila and has a staff assigned
to carry on its woi'k. The agencies are function-
ing under the over-all supervision of the United
States Embassy in Manila. Through the Em-
bassy, individual agencies have concluded a
number of operating agreements with the Philip-
pine Government. At the Washington end of the
rehabilitation program, the State Department
continues, in accordance with the mandate of the
Congress, to allocate the rehabilitation appropri-
ation among the eight participating agencies.
Close liaison is maintained between the Depart-
ment and the agencies concerned.
Through the work of these agencies the Philip-
pines is getting a start in rebuilding its roads
and bridges, its ports and harbors; in expanding
and improving its health services; in developing
its system of inter-island commerce ; in developing
its aeronautical facilities ; in creating an adequate
system of weather service; in developing its fish-
ing industry; and in carrying on the work of
coast mapping and surveys. Each United States
agency has also undertaken to train a large num-
ber of Filipinos in technical and scientific skills,
" Report to Congress on Foreign Surplus Disposal, April
1947. (Department of State, Office of the Foreign Liquida-
tion Commissioner, publication 2799.) Tlie following
table (from the same source, p. 25) shows the general
nature and quantity of the items transferred on the basis
of their fair value :
Machinery and construction equipment $10, 300, 000
Communication equipment 9, 100, 0(X)
Ships 6, 000, 000
Railroad equipment 4, 5(X), 000
Medical supplies and equipment 4, 100, 000
Automotive equipment 4, 000, 000
Clothing, food, and miscellaneous 3, 100,000
Cash from sales of OFLC on behalf of Philip-
pine Government 3, 900, 000
Total $45, 000. 000
1277
so when the agencies withdraw in 1951 competent
Philippine personnel will be available to take over
their functions.
The Philippine rehabilitation program will be
for the next few years a program of the greatest
importance in the over-all rehabilitation of the
Philippine economy.
Rehabilitation Finance Corporation. In a spe-
cial message to the Philippine Congress on Sep-
tember 25, 1946, President Roxas declared that
"one of our greatest economic needs is a source
of credit from which loans can be made and
at low rates of interest. Without such credit
facilities, rehabilitation will be a slow and
painful process." " The President urged the crea-
tion of a new Philippine Rehabilitation Finance
Corporation to meet this need. In explaining the
purpose of such a corporation, the President de-
clared: "I have long contemplated the establish-
ment of a huge national credit reservoir, a primary
source of credit for government economic enter-
prises and for private enterprises ... a source
of credit that will start the wheels moving on I'e-
habilitation and repair of war-damage property
and permit us to plan and begin the larger and
longer-term undertakings for the expansion of tlie
national economy." ^^ The President compared
the proposed new Philippine corporation to the
United States Reconstruction Finance Corpora-
tion in which, he stated, ". . . we have an
excellent precedent" which "has been as instru-
mental as any single government agency, first in
tlie recovery of private business from the deadly
efEects of the American depression of 1930, and
second in the vast expansion of American industry
and business which took place in the latter part of
the recent decade." ^^ The President proposed that
the corporation be capitalized at 300 million pesos.
" Special Message of President Manuel Roxas delivered
in the Session Hall, House of Representatives, on Sept. 25,
1946, reprinted in The Problems of Philippine Rehabilita-
tion and Trade Relations, Manila, Bureau of Printing, 1947,
p. 40.
" Ibid., p. 42.
'° Ibid., p. 43.
" Message on the state of the nation by Manuel Roxas,
Jan. 27, 1947, p. 59.
"Report of the American Agricultural Mission, De-
cember 1946, quoted from Frank S. Gaines, and Jose S.
Camus, Agricultural Conditions and Food Prospects iiir
the Philippines, UNRRA, Agricultural Rehabilitation Di-
vision, Philippine Mission, Manila, 1946.
1378
In Republic Act no. 85 of October 29, 1946, the
Philippine Congress concurred in the establish-
ment of the Philippine Rehabilitation Finance
Corporation proposed by President Roxas.
Shortly thereafter, the President appointed Pri-
mitivo Lovina, Delfin Buencamino, Salvador
Lagdameo, and Rafael Corpus as members of the
new commission. This entirely new connnission,
designed to assist in the reconstruction of the coun-
try, will be closely watched for results both by ob-
servers in the Philippines and in the United States.
Proposed industrialization. President Roxas
in his message on the state of the nation on January
27, 1947, declared that "the consistent thread run-
ning through the entire program I have outlined
for the immediate future of our country is in-
dustrialization. This plan integrates with our
power development projects, our vocational train-
ing program, our establishment of credit facilities,
our promotion of geological researches and sur-
veys, our invitation of American capital to invest
here, and the proposed constitutional provision for
special rights for American citizens."
The President went on then to point out that a
firm of industrial engineers and technologists was
surveying the industrial potentials of the Philip- "
pines as well as making a survey of industrial
equipment in Japan. The President indicated that
the Philippines planned to use the industrial equip- I
ment obtained from Japan in the development of '
various industrial enterprises in the Philippines.
The President stated that "there is no reason why
the Philippines cannot capture a share of former
Japanese markets in this part of the world. No
effort will be spared to achieve this goal." "
Though many difficulties confront such a program
of industrialization, it will be interesting to watdi
the progress that is made in this field during the
next few years.
Agricidtural rehabilitation. The war also re-
sulted in the disruption of the agricultural
economy of the countrj'. This is especially sig-
nificant when it is remembered that the majority
of people in the Philippines are directly and
vitally concerned with this economy. Estimates
of the losses suffered during the war in the agri-
cultural field show that 47 percent of the carabaos J
were lost, 57 percent of the horses, 80 percent of
the cattle, and 70 percent of the chickens. Twenty-
nine percent of the plows were estimated to be lost
as well as 25 percent of the harrows.'* Likewise
Department of Sfafe Bulletin
equipment essential to the processing of major
agricultural products suffered heavy damage.
Realizing the need for over-all planning for the
rehabilitation of Philippine agriculture, the
Philippine Government in 1946 requested the ap-
pointment of a special United State Agricultural
Mission to visit the Philippines and to make a
survey of the situation and provide recommenda-
tions. This mission, headed by Dr. Leland E. Call
and composed of Dr. J. H. Beaumont, H. C. San-
ders, John V. Hepler, and Glen L. Taggart, visited
the Philippines during July to September 1946
and made an extensive study of the prevailing
agricultural situation in the Philippines with rec-
ommendations for improvement of the situation.
Its report is basic reading for anyone concerned
with the over-all rehabilitation of Philippine agri-
culture.
Financial Crisis
From its inception as an independent nation,
the Philippines has faced serious budgetai"y diffi-
culties. President Roxas has made this budgetary
crisis patently clear in various addresses to the
Philippine Congress. In his budget message of
February 11, 1947, transmitting the Philippine
national budget for the fiscal year July 1, 1947, to
June 30, 1948, the President recommended ex-
penditures for fiscal 1948 of 134.5 million dollars.
Revenues during fiscal 1948 are estimated at 65
million dollars; the deficit will thus, according to
these estimates, amount to 69.5 million dollars.
Comparison of these figures for fiscal 1948 may be
made with those of the current fiscal year which
show probable expenditures and receipts to be
127.2 million dollars and 61.3 million dollars
respectively, and a deficit of 65.9 million dollars.^"
The leaders of the Philippine Government have
believed that the United States offers the best hope
for financial assistance to the Republic. As a re-
sult of an urgent Philippine request, the United
States Congress in Public Law 656, approved
August 7, 1946, authorized the Reconstruction Fi-
nance Corporation to make a loan to the Philip-
pines of 75 million dollars. Seventy million dol-
lars of this loan has now been paid to the Philip-
pines. Subsequent to the authorization of this
loan, a Joint Philippine- American Financial Com-
mission has been appointed to make an over-all
study of the Philippine financial picture. This
Commission, the American group of which has
been headed by Col. Edgar G. Grossman, has been
in the Philippines since January 1947 and has now
submitted a report of its findings. It is anticipated
that the report of the Commission will be of in-
valuable assistance in paving the way for essen-
tial fiscal reforms in the Philippines and making
clear the financial position of the Philippine Gov-
ernment. At the end of the first year of the Re-
public, its precarious financial position continued
to be one of its most difficult problems.
Agrarian Unrest
During much of the first year of its independ-
ence, the Republic faced the thorny problem of
agrarian unrest, chiefly in the central Luzon prov-
inces. The product of centuries of unrest and dis-
satisfaction on the part of small farmer groups, the
pi'oblem reached more acute proportions during
the war and after when groups such as the Huk-
balahaps were formed to combat the Japanese and
at the same time to press for substantial reforms.
After the war these groups refused to surrender
their arms and made strong demands on the Gov-
ernment.
The Philippine Government has apparently at-
tempted to meet these problems in a twofold man-
ner; by combining a program for the restoration
of law and order with a program of reform
measures. Wliile military police units have been
engaged in the task of bringing law and order
into the dissident areas, a new farm tenancy act
providing for a 70-30 division of the produce of
the land has been passed by the Philippine Con-
gress ; steps have been taken to eliminate some of
the more notorious practices of the usurer ; church
estates have been purchased for resettlement pur-
poses; water projects have been blueprinted; and
a number of other helpful steps have been taken.
In this and other ways the Roxas administration
hopes to bring about a long-range settlement of
the problem. Considerable has been done; much
more remains to be done before the problem can be
considered as solved.
Collaboration Question
During the war the overwhelming mass of the
Filipino people remained loyal to the United
States. A few of the top political leaders did,
however, collaborate actively with the Japanese.
" President Roxas' special message on the national bud-
get, Feb. 11, 1947.
June 29, J 947
1279
Since the end of the war the Philippine Govern-
ment has been engaged in steps to bring those ac-
cused of collaboration to trial. A People's Court
was created by the Philippine Congress to conduct
the trials and Solicitor General Lorenzo Tanada
was designated to prosecute the accused. The pros-
ecution has, however, been confronted with many
diflScult problems. Considerable talk was heard
during the first half of 1947 concerning a general
amnesty for accused collaborationists. At the end
of the first year of the Republic Government, even
though the future of the collaboration trials re-
mained uncertain, the Philippine Government was
moving ahead to bring to trial some of the more
prominent of the accused collaborationists.
Pattern for National Security
During the first year of the Republic important
steps were taken to provide for the national
security of the country. The two most important
steps were the conclusion of a military-base agree-
ment with the United States and the conclusion
of a military-assistance agreement with the
United States.
In Public Law 380, approved June 29, 1944, the
Congress of the United States had authorized the
President of the United States to negotiate with
the President of the Philippines for the retention
of such bases in the Philippines "as he may deem
necessary for the mutual protection of the Philip-
pine Islands and of the United States." '" Simi-
larly, the Congress of the Philippines in joint
resolution no. 4, approved July 28, 1945, author-
ized the President of the Philippines to negotiate
with the President of the United States for the
retention of said military bases.
Acting under these authorizations, negotiations
were then conducted by the two governments look-
ing to the retention of United States military
bases in the Philippines. After careful consider-
ation of all the factors involved, a military-base
=° Public Law 380, 79th Cong., approved June 29, 1944,
joint resolution declaring the policy of the Congress with
respect to the independence of the Philippine Islands, and
for other purposes.
^ Bulletin of Mar. 23, 1947, p. 554.
" Ihid.
^ Message on the state of the nation by Manuel Roxas,
Jan. 27, 1947, p. 14.
^* President Roxas' special message on the national
budget, Feb. 11, 1947.
agreement was finally signed in Manila by the two
countries on March 14, 1947.^^ This agreement
stresses "the mutuality of interest" of the two
countries in defense matters and proclaims the
desire of the two countries to cooperate "in the
common defense of their two countries through
arrangements consonant with the procedures and
objectives of the United Nations." " An annex
listing the specific bases to be retained is attached
at the end of the agreement.
Military assistance. The Congress of the United
States also in Public Law 454, approved June 26,
1946, authorized the President of the United States
to provide certain military assistance to the new
Republic of the Philippines. The purpose back of
the act, as stated in the act itself, was "to provide
military assistance to the Republic of the Philip-
pines in establishing and maintaining national se-
curity and to form a basis for participation by
that Government in such defensive military opera-
tions as the future may require".
With this authorization, representatives of the
two countries conducted negotiations during 1946
and 1947 looking to the conclusion of a military-
assistance agreement. This agreement was signed
in Manila on March 21, 1947, by Ambassador Mc-
Nutt and President Roxas.
With the conclusion of the military-base and
military-assistance agreements the cornerstones of
Philippine defense had been laid. In addition,
however, President Roxas pledged himself to vig-
orous efforts to reorganize and democratize the
Philippine Army." The Administration set aside
for national defense measures for fiscal 1948 the
proposed sum of 38.5 million dollars, 23.5 million
dollars of which was to be spent by the Military
Police Command. With total estimated expendi-
tures set at 134.5 million dollars for fiscal 1948,=-' it
was apparent that the defense item in the budget
was considered of basic importance.
Aid to PliiHppine Veterans
One of the most challenging problems facing
both the Philippine and the United States Govern-
ments in the post-independence period has been
how to assist those Filipino veterans who served
either in the regular United States Army forces in
the Pacific or in recognized guerrilla units during
the war. These Filipino veterans fought loyally
and effectively with the United States, and they
have considered themselves entitled to many of the
1280
Department of State Bulletin
rights extended to American veterans under the
so-called GI Bill of Rights. Ranking American
policy leaders, including President Truman and
former Ambassador McNutt, have strongly en-
dorsed their right to participate in a program of
veterans' benefits provided by the United States.^^
On May 18, 1946, in identical letters to the Presi-
dent pro tempore of the Senate and to the Speaker
of the House, President Truman transmitted a
bill providing for the Philippine veterans with a
request for its early introduction and considera-
tion. This bill provided, first, for hospitalization,
including medical care, for service-connected dis-
ability ; second, pensions for service-connected dis-
ability and death, on a peso-for-dollar basis ; third,
for appropriate burial and funeral allowances;
and lastly for the administrative framework for
the operation of the Veterans' Administration in
the PhiliiDpines. The President pointed out that
the standing Philippine Army had been made a
part of the armed forces of the United States by
order of the President of the United States on
July 26, 1941, and that, in addition, certain guer-
rilla units had been recognized thereafter as mem-
bers of the Philippine Army and hence as a part
of the United States Army. Under the First Sup-
plemental Surplus Appropriation Rescission Act
of 1946, these Filipino veterans of the United
States Army were denied the benefits to which they
believed themselves entitled. The President asked,
therefore, in his message to the Congress, that
action be taken to restore needed benefits to the
Philippine veterans.
As a result of the President's message, a bill, S.
2235, was introduced in June 194G to provide bene-
fits for the Philippine veterans. This bill passed
the Senate but failed in the House by a narrow
margin. With the convening of the 80th Congress
in January 1947, renewed efforts were made to get
a new Philippine Veterans Bill introduced in the
Congress. At the direction of the President of the
United States, an interdepartmental committee
consisting of the Administrator of Veterans'
Affairs, the United States Ambassador to the
Philippines, the Secretary of War, and the Secre-
tary of State jointly assumed responsibility for
the introduction of such a bill. It was expected
that such a bill would be introduced in the Con-
gress in the near future.^
Meanwhile, in the Philippines the situation of
many veterans has been very acute. The United
States Veterans' Administration has a large office
in Manila and has been carrying out a program of
limited benefits for Philippine veterans authorized
in previous legislation. In an endeavor to meet
the challenge, the Roxas administration also
secured the passage by the Philippine Congress of
a so-called Philippine GI Bill of Rights. This
act, Republic Act no. 65, approved October 18,
1946, created a Philippine Veterans Board and
provided additional limited aid to Philippine vet-
erans. The real hope for the Philippine veterans
continues, however, to lie in the extension of bene-
fits to Philippine veterans in the form of a Philip-
pine veterans' bill passed by the U. S. Congress.
Relations With Other Nations
Another less pressing but very important prob-
lem facing the new Republic of the Philippines
during its first year was that of creating the ma-
chinery for the conduct of its foreign relations.
Prior to July 4, 1946, all foreign relations for the
Philippines were handled by the United States.
After July 4 the burden devolved on the Philip-
pines.
In anticipation of the day when the Philippines
would have to conduct its own foreign relations, the
Department of State in July 1945 inaugurated a
Philippine Foreign Affairs Training Program "
^ See S. Kept. 1419, 79th Cong., 2(J sess., of June 4, 1&46,
and H. Kept. 2640, 79tb Cong., 2d sess., of .Tuly 23, 1946.
'" In May 1947 a special Philippine veterans' group visited
the United States to study the question of Philippine vet-
erans' benefits and to testify on behalf of such benefits.
The members of this mission were Lt. Col. Angel Tuason,
Lt. Col. Jos6 Kazon, Maj. Ernesto Rusino, and Maj. Ferdi-
nand Marcos.
^' The following men have graduated from this program :
Yusup R. Abuhakar, Manuel A. Adeva, Jos4 Alejandrino,
Tiburcio C. Baja, Anastacio B. Bartolome, Emilio D. Be-
jasa, Jlarcelino V. Bernardo, Hortencio J. Brillantes,
Romeo S. Busue^'o, Irineo R. Cabatit, Tomas G. de Castro,
Francisco P. Claravall, Irineo D. Cornlsta, Juanito C. Dion-
isio, Candido T. Elbo, Carlos A. Faustino, Guillermo C.
Fonacier, Deltin R. Garcio, Engracio D. Guerzon, Jos^ F.
Imperial, Marciano A. Joven, Reynaklo Lardizabal, Pelayo
F. Llamas, Luis Moreno Salcedo, Pal)lo A. Pena, Generoso
P. Provido, Aurelio Ramos, Eutiquio O. Sta. Romana, Edu-
ardo L. Rosal, Simeon E. Roxas, Leopoldo T. Rniz, Rodolfo
H. Severino, Vicente I. Singian, Tagakotta Sotto, Benjamin
T. Tirona, Roman V. Ubaldo, Renato A. TJrquiola, Doroteo
Vite, Alejandro D. Yaugo. For articles by Mr. Mill on
the Philippine Foreign Affairs Training Program, see
Bulletin of Feb. 3, 1946, p. 14S, and American Foreign
Service Journal of April 1946.
June 29, 1947
1281
designed to assist the Philippines in preparing for
the conduct of foreign relations. Under this pro-
gram selected Filipinos were assigned to the De-
partment of State, and, in some cases, later on to
American Embassies abroad, for training as
foreign-affairs officers. President Roxas in May
1946 requested that this training program be con-
tinued after independence, and the program is still
being carried on by the Department of State. Its
graduates have been of invaluable assistance to the
Philippines in developing its Foreign Service es-
tablishments abroad.
On July 4, 1946, President Roxas annovmced the
creation of a Department of Foreign Affairs to
handle foreign relations for the new Republic. At
the same time he announced that Vice President
Elpidio Quirino had been designated to serve con-
currently as first Secretary of Foreign Affairs of
the Republic of the Philippines. Dr. Bernabe
Africa was named to the post of Under Secretary.
An American Foreign Service officer of class I,
Richard P. Butrick, also was, at the request of
President Roxas, detailed by the Department of
State to act as Adviser on Foreign Relations to
the Republic of the Philippines during the forma-
tive months of the Department of Foreign Affairs.
In Executive Order no. 18, dated September 16,
1946, President Roxas provided for the organiza-
tional framework of the new Department of For-
eign Affairs and Philippine Foreign Affairs Serv-
ice. On Januarj' 17, 1947, Vice President and
concurrently Secretary of Foreign Affairs Quirino
issued departmental order no. 7 further reorganiz-
ing and defining the functions of the various offices
and divisions of the Department of Foreign Af-
"' Paul V. McNutt, the last United States High Commis-
sioner to the Philippines, was appointed by President Tru-
man as the first United States Ambassador to the Philip-
pines. Nathaniel P. Davis, a Foreign Service officer of
class I, was appointed Minister-Counselor of the Embassy
to serve under Mr. McNutt. Mr. McNutt resigned as
United States Amba.ssador on May 8, 1947. President
Truman nominated Emmet O'Neal, a former member of
Congress from Kentucky, to succeed Mr. McNutt as Am-
bassador. The Senate confirmed Mr. O'Neal on June 10,
1&47, and he was sworn In as Ambassador on June 20, 1947.
President Roxas similarly appointed Joaquin M. Blizalde,
formerly Philippine Resident Commissioner to the United
States and a leading Philippine businessman, as the first
Philippine Ambassador to the United States. Narciso
Ramos, former Philippine Congressman from Pangasinan,
was named Minister-Counselor of the Philippine Embassy.
1282
fairs. A series of other organizational orders
defining procedure in the Department and in the
Foreign Affairs Service were issued during the
first year of the Depailment.
Through the new Department of Foreign Af-
fairs, relations were gradually developed with
other nations. A treaty of general relations was
signed by the United States and the Philippines
on July 4, and shortly thereafter was ratified by
the two countries.^* Following the conclusion of
til is treaty, the Philippines began negotiations
with other countries for treaties of general rela-
tions. Included among these countries were Great
Britain and China. By the end of the first year of
the Republic, almost all countries had recognized
its independence. Philippine Foreign Service es-
tablishments had been opened only in the United
States and China, but plans were being made for
the imminent opening of posts in other countries.
Meanwhile, as provided by article 3 of the treaty
of general relations, the United States is repre-
senting the Philippines in countries where there is
no Philippine representation.
Philippine participation in the United Nations.
The Philippines from its birth as an independent
nation has loyally and effectively supported the
principles and program of the United Nations. In
General Carlos P. Romulo, Permanent Represent-
ative of the Philippines to the United Nations, the
Philippines has had one of the most effective
spokesmen in the United Nations.
Future of the Republic
During the second year of the Republic, the
challenging problems of the first year will con-
tinue to present themselves. Rehabilitation must
be speeded up, more basic solutions of the agrarian
problem evolved, law and order firmly maintained,
aid to Philippine veterans extended, and plans
for budgetary and fiscal reforms developed-
There is no reason to believe that the present
Philippine Government will not continue to
press vigorously and i-esourcefully for a solution
of these problems. In the years ahead, difficult as
the problems may be, there can be no doubt that the
Filipino people will measure up to the test. The
Philippine Republic, born on July 4, 1946, is now
a full-fledged member of the family of nations.
Depatiment of State Bulletin
NOTES RELATING TO OPIUM POLICY IN BURMA
Text of note dated April 34-, 19Jf5, from the British
E^nhassy in Washington to the Secretary of State
No. 207
Ref : 1063/16/45
His Majesty's Ambassador presents his compli-
ments to the Secretary of State and has the honour
to transmit to him herewith a memorandum which
has been received from Mr. Eden on policy as
regards opium in Burma.
Lord Halifax would be glad to be informed, in
due course, whether the government of the United
States is in agreement with the short term policy
set out in part 3 of the memorandum.
Brftish Embassy
Washington, D.C., April ^J^th, 1946
POLICY AS REGARDS OPIUM IN BURMA
I. Prewar Policy
( 1 ) Cultivation
Upper Burma came under British rule just over
fifty years before the Japanese invasion. Wlien
the British took over the country the poppy was
cultivated for opium manufacture throughout the
hills to the east and north. The British Govern-
ment's i^olicy was to prohibit cultivation, and as
administration was extended into the hills the
growing of the poppy was progressively reduced
until in 1941 there were only three small ai'eas in
which opium manufacture was carried on :
(a) The Shan States east of the Salween including
the Wa States,
(b) the small areas known as the Triangle and the
Hukawng Valley in the Kachin Hills,
(c) the Naga Hills.
Prohibition had not been enforced in (a) because
administration was very light, the Wa States not
being administered at all as yet. Until 1941 it
was not certain whether the Wa States lay in
British territory or in China. It was only in that
year that the boundary between the two coimtries
was settled and the major portion recognised as
British. Large quantities of poppies are grown
there and the cultivation can only be controlled
when the Government's authority has been estab-
lished over the turbulent tribes resident in the area.
In (b) administration was only introduced in
June 29, J 947
1932 and orders had been issued that poppy grow-
ing should cease from 1942, and in (c) administra-
tion was only introduced in 1939.
In (b) and (c) a very low grade opium was pro-
duced fit only for local consumption in the hills:
it was only in (a) that any considerable amomit
was produced and there steps were being taken to
limit production to the quantity required for con-
sumption in the Shan States.
(2) Consumption
It is important to recognise that consumption in
Burma is by eating as well as by smoking. The
Chinese are the chief smokers but some Burmans
have also acquired the habit. The majority of con-
sumers however are eaters, and Indians, Burmans
and hill tribesmen are all included in the number.
All these people are firmly convinced that opium
is a protection against fever and dysentery and,
whether there is any medical basis for this belief
or not, it is firmly ingrained; and opium is also
used as an analgesic. Consequently the sudden
cutting off of this supply would probably result
in widespread suffering and in any case would
cause discontent. In the Kachin Hills also opium
is used in tribal festivals for the propitiation of
the spirits of the forests and in customary cere-
monies in connection with marriage, housebuild-
ing, burial or cultivation, and any attempt imme-
diately to alter these ancient customs would cause
serious unrest.
1283
(3) Supply
The Government of Burma's policy in regard to
the supply of opium is in accordance with their
Treaty obligations. With the ratification of the
Hague Convention in 1912 the Government of
Burma committed itself to the gradual and effective
suppression of opium smoking and as a first step
prohibited the sale, import or export and manufac-
ture of prepared opium. The only opium that is
available in Burma, therefore, is raw opium.
Opium is a Government monopoly and is sold in
Government shops. The sale of raw opium is
restricted to consumers registered only after care-
ful enquiry into their addiction to opium and sup-
plied with no more than the minimum require-
ments. All sales are strictly controlled through
a system of retail shops managed by Government
officials. In Burma proper, the smoking of opium
is prohibited except in the case of registered
smokers and licences to smoke are only given to
proved addicts.
The policy of the Government of Burma in
supplying opium to registered consumers is
directed towards the elimination of the smuggling
trade and is in accordance with their Treaty obliga-
tions and with the recommendations of the Com-
mission appointed in 1930 by the League of Na-
tions to enquire into opium smoking in the Far
East. Opium for use in Burma is obtained from
India, except in the Shan States where shan opium
grown in the States east of the Salween is sold.
Opium is however produced on a large scale in
China and Siam, and if consumers are refused
licences or if their supplies are cut too low they
resort at once to an illicit supply brought in by
smugglers. The policy of sale from shops is in-
tended to make smuggling unprofitable and to
limit consumption to recognised addicts. If the
Government were suddenly to stop selling opium
the country would be flooded with illicit opium,
the introduction of which would be impossible to
control since Burma's frontier with China and
Siam is long and almost throughout its length is
hilly and jungle covered; consequently smuggling
is easy and though a large preventive staff is main-
tained adequate prevention is practically impos-
sible. The British Government would be strongly
opposed to adopting a policy of total prohibition
which could not be enforced, since a law which
cannot be enforced is dangerous to the general
moral standard of the country as the habit of law-
breaking is liable to spread.
II. Long Term Policy of the Government of Burma
As announced in the British Goverimient's
declaration of 10th November 1943, it has been
decided to adopt the policy of total prohibition of
opium smoking in British Far Eastern territories
after they have been liberated from the Japanese.
After re-occupation the Government of Burma
will thereafter take steps to carry out this policy.
It is also the declared policy of the Government
of Burma that opium consumption by any means
should eventually be suppressed, and the Govern-
ment is therefore prepared to prohibit opium
eating as soon as it appears possible to make such
a prohibition effective and to enforce it on the hills
without provoking grave unrest. Clearly, how-
ever, so long as large supplies are produced in
China and Siam and can be smuggled over the
border prohibition cannot be made effective. It
should be pointed out that although the Chinese
Government have issued orders prohibiting poppy
cultivation, the Yunnan Provincial Government
is faced with the same problems as the Govern-
ment of Burma in the remote western regions of
the Province and has not succeeded in stopping
cultivation among the hill peoples on the borders
of Burma. The full co-operation with the Gov-
ernment of Burma of neighbouring governments
will therefore be required for the prevention of
smuggling into Burma. On the British side of the
border also the prohibition of production in the
Trans-Salween areas will take some time since
it will be necessary that full administration con-
trol should be established over these areas. So
long as administrative control in these remote
areas cannot be closely maintained, prohibition by
itself will lead, not to the eradication of the
sources of supply, but to even more widespread
smuggling. At the same time, the continuance of
cultivation in no sense implies any protection of
the interests of the growers. The Government of
Burma is determined to tighten its administration
and eventually to stop cultivation. But it must
have regard to the smuggling menace and to
measures that are practicable.
Under these circumstances the Government of
Burma intend to take the following measures in
order to secure control with a view to the prohibi-
1284
Department of State Bulletin
tioii and in the meanwhile wean consumers from
the habit. They propose to re-open shops for the
sale of opium to licensed consumers and to attempt
to under-sell the smuggler. It is not the intention
of the Government of Burma to make any profit
out of these sales. Its intention is to keep the sup-
ply in its own hands, to refuse licences except to
addicts and to persons requiring the drug medici-
nally, to limit the supplies of consumers as far as
possible, and to attempt to cure addicts by medical
treatment. It is also its firm intention to take ade-
quate measures to improve metliods of agriculture
jiarticularly in the direction of producing an ac-
ceptable standard of nutrition and of providing
alternative crops to replace opium in areas, nota-
bly those east of the Salween on the China border,
where opium has hitherto been the principal cash
crop, on the cultivation of which the local inhabi-
tants have depended almost entirely for their
livelihood.
III. Short Term Policy Under Military
Administration
Comparatively little is known of the position as
regards opium in Burma now. There is evidence
of extensive smuggling in areas under enemy occu-
pation whose licit supplies have probably ceased.
It is known that the Japanese have in some cases
issued opium to consumers engaged on construction
work in connection with the Japanese war effort.
Prior to the outbreak of war, cultivation was pro-
hibited, or about to be prohibited, in all areas ex-
cept the Shan States east of Salween. The pro-
hibition however was dispensed with in the Kachin
Hills at the time of the Japanese invasion. This
W'as done as licit supplies could not be sent in and
as a certain amount of opium was needed for quasi-
medical purposes and for tribal ceremonies; also,
sudden cessation of supplies was likely to affect the
morale of the tribespeople, many of whom are in
the Levies and assisting the armed forces in one
way or another. The civil authorities are prepared
for the reimposition of the ban on cultivation in
those areas as soon as the military authorities think
it feasible. This opium is however of such bad
quality that it can only be used by the local people
and would not be bought outside the hills.
During the period of military occupation', it is
not proposed to re-open shops unless it is found
to be absolutely necessary to do so. It is recog-
nised, however, that the refusal to provide opium
to addicts may cause serious unrest and may make
the re-occupation and pacification of Burma more
diflicult than it would otherwise be. If this is
found to be the case it may be necessary to re-open
opium shops in some areas and to provide a licit
supply.
The American Government has expressed the
fear that American soldiers may become opium
addicts if they are present in a country where
the consumption of opium is not totally prohibited.
It should be made clear however that the danger to
the troojDS is from illicit opium and not from shop
opium. No one can buy from a shop without a
Government permit and soldiers could not there-
fore obtain the drug direct. Sales to licensed con-
sumers are regulated so that a consumer seldom has
any surplus over his own requirements. If Amer-
ican soldiers contract the habit, it will be on ac-
count of illicit, smuggled supplies, and conse-
quently the immunity of American soldiers will
be much better secured by a policy directed towards
the suppression of smuggling, as the British Gov-
eriunent's policy is, rather than by a policy of
immediate suppression of supplies to native ad-
dicts which could not, in practice, be enforced and
which would give encouragement to the smuggler.
Text of a note dated Ajigust S, 1945, from the
Secretary of State, replying to the note of the
British Embassy
845C.114 Narcotics/5-2845
The Secretary of State presents his compliments
to the Charge d'Affaires ad interim of Great
Britain and refers to the Embass3''s note no. 207,
dated April 24, 1945 (reference 1063/16/45),
transmitting a memorandum in regard to the
policy of the British Government concerning
opium in Burma.
The Government of the United States, which is
aware of the difficulties of narcotic law enforce-
ment in the Shan States and "excluded areas" of
Burma, is appreciative of the British Government's
exposition of the various phases of the opium prob-
lem in Burma.
Inquiry is made in the Embassy's note whether
the Government of the United States is in agree-
ment with the short-term policy under military
administration set forth in part III of the mem-
orandum. That policy envisages (1) the reim-
position by the civil authorities of the ban on culti-
June 29, 1947
1285
vation of opium poppies in the Kachin Hills as
soon as the military authorities think it feasible
and (2) the reopening of opium shops in certain
areas if it is absolutely necessary to do so to prevent
unrest.
The United States Government regards the
short-term policy for Burma under military ad-
ministration as not consistent with the established
United States policy of urging the limitation of
the production and use of opium throughout the
world strictly to scientific and medicinal require-
ments. This Government therefore cannot express
agreement with the short-term policy outlined in
part III of the memorandum.
In view of the policy set forth above and because
members of its military forces are stationed in
Burma, the Government of the United States feels
strongly that opium shops should not be reopened
in Burma during the period of military occupation.
The competent authorities of the United States
state that it has been demonstrated in many parts
of the world that easy access to dangerous drugs
creates drug addiction and that in areas where
opium shops exist, the danger to troops from these
shops is equal to the danger from opium in the
illicit traffic. For example, the narcotics authori-
ties of the United States have proof that American
troops in India are able to obtain both Government
opium and illicit opium with little or no effort
either by themselves or through intermediaries.
A considerable number of American troops have
already become opium addicts in India and upon
their return to their homes have required special
attention. The United States Government hopes
that the British Government will not reopen
opium shops in any area in Burma under military
administration.
Tlie narcotics authorities of the United States
learned only recently that the American armed
forces in Northern Burma have on occasions used
small quantities of opium to make payments to
natives for certain services. The War Depart-
ment, having been immediately notified that this
action was a violation of American policy, at once
instructed the Theater Commander to prohibit the
further use of opium for such purposes.' It is
regretted that the practice was permitted.
It is noted in part III of the memorandum that
the Government of Burma intends, in connection
^ This instruction was issued Mar. 9, 1945.
1286
with its long-term policy after reoccupation, to
reopen shops for the sale of opium to licensed con-
sumers in order to secure control with a view to
prohibition. In the absence of a statement to the
contrary, it is assumed that the Govermnent of
Burma proposes to dispense opium through Gov-
ernment shops throughout Burma for use both in
smoking and eating. Such action could hardly be
regarded by the Government of the United States
as at all in consonance with the declaration of
policy made in the House of Commons on Novem-
ber 10, 1943 by the Secretary of State for the Col-
onies, reading:
"His Majesty's Government in the United King-
dom have now decided to adopt the policy of total
prohibition of opium smoking in the British and
British protected territories in the Far East which
are now in enemy occupation and, in accordance
with this policy, the prepared opium monopolies
formerly in operation in these territories will not
be re-established on their re-occupation."
In justification of its contemplated action in
Burma, the British Government states that "so
long as large supplies are produced in China and
Siam and can be smuggled over the border prohibi-
tion camiot be made effective" and that "so long as
administrative control in these remote areas cannot
be closely maintained, prohibition by itself will
lead, not to the eradication of the sources of supply,
but to even more widespread sm.uggling." These
statements, implying that a Government opium
shop system is more effective than prohibition, do
not appear to be supported by the experience of the
British authorities in Hong Kong. The repre-
sentative of Canada at the Twenty-third Session
of the Opium Advisory Committee stated, witli
respect to the Hong Kong Opium Monopoly that
"If a Monopoly sold only 587 kilogrammes of pre-
pared opium per aimum, and if the authorities
concerned admitted the illicit minimum consump-
tion to be some 27,800 kilogrammes, there might be
a question whether the solution was a Monopoly
which apparently handled only 4% of the total
sales of prepared opium." The representative of
the United Kingdom replied that the British and
Hong Kong authorities admitted that the situation
was bad and that anxious consideration was being
given to the problem. He further stated that he
was unable to say whether the monopoly system
was still the best way of handling the problem.
Department of Slate Bulletin
The American representative (the Commis-
sioner of Narcotics) at the Twenty-fourth Session
of the Opium Advisory Committee observed that,
according to the annual report of the Government
of Hong Kong on the traffic in prepared opium for
the j'ear 1937 which was under discussion, the total
number of opium smokers and heroin addicts ob-
taining supplies from the illicit traffic in Hong
Kong was 64,000 as against some 840 who acquired
their opium from British licensed shops. The
British representative replied that his Govern-
ment entirely agreed that the situation in Hong
Kong was very unsatisfactory.
The conditions prevailing in Hong Kong, as
disclosed by the above statements, are cited as an
example of the failure of retail Government shops
to reduce opium smoking in the presence of smug-
gling. In many areas in India and Malaya,
according to the annual reports of the British
Government and the rejiorts of American observ-
ers, large illicit supplies of opium exist in the
vicinity of the Government opium shops. As re-
gards British Borneo, the United States Govern-
ment would be pleased to be informed in due
course, after reoccupation has been completed, of
the results of the application in that area of the
policy of prohibition of the non-medical use of
narcotic drugs, including smoking opium.
Wliile recognizing the very real difficulties con-
fronting the British Government in the Shan
States and the Sino-Burman border areas gen-
erally during the considerable period of time
which must elapse before conditions again become
stabilized, the Government of the United States
cannot but have the most serious misgivings as
to the consequences of reopening Government
opium shops throughout Burma. This Govern-
ment feels that it cannot agree to policies such as
those outlined in the memorandum which appear,
in so far as Burma is concerned, to suspend indefi-
nitely the application of the policy declaration
made in the House of Commons November 10,
1943. This Government believes that the pre-war
evidence available on this subject affords little or
no support for the view that the existence of
officially licensed monopoly shops has a restrictive
effect on illicit traffic. The evidence on this point
from British Far Eastern territories, as mentioned
above, seems especially convincing. The Govern-
ment of the United States is convinced, in the
light of its experience, that the only effective
June 29, 7947
748791—47 5
method of handling the opium problem is that of
prohibition, together with enforcement. The
policy which the Government of Burma proposes
to follow could not possibly be considered as a
logical step in a process of gradual reduction of
the abuse of opium in Burma, but, on the contrary,
would merely extend existing abuses and dangers
and make solution of the opium problem in the
Far East and, in fact, throughout the whole world
much more difficult.
The United States Government is concerned be-
cause the smuggling of Burmese monopoly opium
into this country will doubtless occur just as opium
sold by the British shops in India is now being
smuggled into the illicit market in the United
States. This Government is reliably informed
that large quantities of opium are constantly be-
ing smuggled from the Shan States into China,
Thailand and Lower Burma.
If the British Government could see its way
clear to take measures forthwith in Burma which
are indubitably in consonance with its public dec-
laration of November 10, 1943, a long step for-
ward toward the solution of a humanitarian prob-
lem would be taken. The Government of the
United States urges the British Government to
reconsider the attitude presented in its memoran-
dum on opium policy in Burma.
Department of State
Washington, August 8, 19^5
Text of note dated November 12, 19If6, from the
British Embassy in Washington to the Secretary
of State
Ref: 928/21/46
No. 622
His Majesty's Ambassador presents his com-
pliments to the Secretary of State and with refer-
ence to his Note of the 8th August, 1945, (845C.114
Narcotics/5-2845), regarding the policy of His
Majesty's Government for the control of the con-
sumption of opium in Burma, Lord Inverchapel
wishes to express his regret at the long delay which
has occurred in sending a reply.
2. Shortly after the receipt of the Secretary
of State's Note, military administration, as the
Government of the United States will be aware,
having come to an end, the Civil Government of
Burma resumed the administration of the coun-
try and, notwithstanding the manifold urgent
problems arising from the resumption of civil
1287
administration in a devasted country over which
two major campaigns have been fought, have since
been engaged in reviewing their Opium Policy.
3. In the circumstances, it is no longer necessary
to comment in detail on the remarks of the United
States Government regarding the policy under
military administration. Moreover, any risk to
the health of members of United States forces in
Burma such as the United States Government
were at one time inclined to apprehend, has now
been removed by their withdrawal. It suffices to
say that His Majesty's Government are advised
that while the United States forces were in Burma
the British Military Administration at all times
took particular pains to discuss this question with
the United States local commanders in the field
with a view to obviating whatever degree of risk
there might have been, that at no time did the
United States Commanders consider the risk to
be grave, and that no case was reported of Amer-
ican troops acquiring the opium habit in Burma.
This conforms to the experience of His Majesty's
Government over a very long period in the case of
British troops.
4. As regards the long-term policy of the
Government of Burma, His Majesty's Government
are unable to agree that the policy set forth in
Part II of the Memorandum enclosed with the
Embassy's Note dated 24th April, 1945, is in any
way inconsistent with their Declaration of the
10th November, 1943. In that Declaration they
undertook to effect the total prohibition of opium
smoking in the territories mentioned and to re-
frain from the re-establishment of the prepared
opium monopolies. The sale of prepared opium
in Burma has for some time been a penal offence
and it was stated unequivocally in the Memoran-
dum that the Government of Burma would take
steps to implement this Declaration, which was in
harmony with the policy of eventual suppression
of all forms of opium consumption in Burma,
which has been their declared policy since 1932
and which, in fact, goes beyond the Declaration.
The Government of Burma have accordingly de-
cided that legislation should be enacted at an early
date to make illegal the smoking of opium and the
possession of implements for this purpose.
5. So far as concerns raw opium for eating,
which is consumed in Burma either for religious
and ceremonial reasons or for quasi-medicinal use
and which has in the latter case been available
through Government monopoly shops to persons
registered after careful enquiry as addicts, His
Majesty's Government note that the United States
Government doubt the value of such shops for the
suppression of smuggling, in the light of certain
evidence from Hong Kong. His Majesty's Govern-
ment ai-e unable to accept the validity of the argu-
ment on which these doubts were based, but think
it unnecessary to enter into any detailed statement
of their reasons since the Government of Burma
have now decided to abolish the system of licensed
shops in Burma and are making administrative
arrangements, the details of which are at present
under consideration, for the control of the issue
of opium for medicinal, quasi-medicinal and scien-
tific uses and for religious and ceremonial purposes.
6. The United States Government will see, there-
fore, that the Government of Burma have given
concrete proof of their anxiety to maintain and
develop, notwithstanding the inevitable interrup-
tions of war, their consistent effort to secure the
eventual suppression of all forms of opium con-
sumption, which they proclaimed as their goal
in 1932. At the same time, the United States Gov-
ernment will appreciate that there is no immediate
total solution of this very difficult problem and
that the complete and effective suppression of
opium consumption in Burma must necessarily
take time. The Government of Burma propose
to deal vigilantly with any temporary increase in
smuggling and the internal illicit trade which
may result from the measures now contemplated
and ai-e confident that with continued watchful-
ness the leakage of opium from Burma into the
illicit international market which before the war
was very small will in future prove no greater.
British Embassy
Washington, D.C.
November 12th, WW
1288
Depariment of Sfate Bullefin
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
Calendar of Meetings ^
In Session as of June 22, 1947
Far Eastern Commission . . .
United Nations:
Security Council
Military Staff Committee . .
Commission on Atomic Energy
Commission on Conventional Armaments
ECOSOC (Economic and Social Council): Human Rights Drafting
Committee.
Economic Commission for Asia and the Far East: First Session . . .
German External Property Negotiations (Safehaven) :
With Portugal
With Spain
Inter-Allied Trade Board for Japan
International Conference on Trade and Employment: Second Meeting of
the Preparatory Committee.
Congress of the Universal Postal Union . ,
Council of Foreign Ministers: Committee To Examine Disagreed Ques-
tions of the Austrian Treaty.
International Radio Conference
ECITO (European Central Inland Transport Organization) : Seventh
Session of the Council (Second Part).
ICAO (International Civil Aviation Organization) : South American
Regional Air Navigation Meeting.
ILO (International Labor Organization) : 30th Session of the International
Labor Conference.
Permanent International Association of Road Congresses
"Journ^es M^dicales de Bruxelles", 21st Session ....
Scheduled for June-August 1947
Caribbean Commission: Fourth Meeting
International Sugar Council
International Congress of River Transportation
Washington
I^ake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Shanghai . .
Lisbon . . .
Madrid . . .
Washington .
Geneva . , .
Paris ....
Vienna . . .
Atlantic City
Paris ....
Lima ....
Geneva
Paris .
Brussels
Jamaica
London
Paris .
1946
Feb.
26
Mar
Mar
June
25
25
14
1947
Mar
June
24
9-25
June 16-24
1946
Sept
Nov
.3
12
Oct.
24
1947
Apr.
10
May 7
May 12
May 15
June 17
June 17
June 19 (one day)
June 19
June 21-25
June 23-28
June 24 (one day)
June 26-28
' Prepared in the Division of International Conferences, Department of State.
June 29, J 947
12S9
Calendar of Meetings — Continued
German External Property Negotiations (Safehaven) With Turkey . . .
International Telecommunications Plenipotentiary Conference
International Council of Scientific Unions: Executive Committee . . . .
International Rubber Study Group
United Nations:
Economic Commission for Europe: Second Session
Economic Commission for Asia and the Far East: Committee of the
Whole.
ECOSOC (Economic and Social Council) :
Fifth Session
Narcotic Drugs Commission: Second Session
Subcommission on Economic Development
Population Commission: Second Session
Human Rights Commission: Second Session
Statistical Commission: Second Session
Social Commission: Second Session
Committee on Information from Non-Self- Governing Territories . .
Special Cereals Conference
10th International Conference on Public Education
IRO (International Refugee Organization): Third Part of First Session
of the Preparatory Commission.
ICAO (International Civil Aviation Organization):
South Atlantic Regional Air Navigation Meeting
Aerodromes, Air Routes and Ground Aids Division
Fourth International Congress on Microbiology
Seventh International Congress of Administrative Sciences
UNESCO (United Nations Educational, Scientific and Cultural Organi-
zation) : Executive Board.
WHO (World Health Organization) :
Expert Committee on Tuberculosis: First Meeting . . -.
Committee on Administration and Finance
Fourth Session of the Interim Commission
ILO (International Labor Organization) :
Permanent Agricultural Committee
Sixth International Conference of Labor Statisticians
Industrial Committee on Iron and Steel Production
FAO (Food and Agriculture Organization) :
Panel on Soil Erosion Control
Meeting of Specialists on the Control of Infestation of Stored Food
Products.
Executive Committee
Annual Conference: Third Ses.sion
International Meteorological Organization: Meeting of Technical Com-
missions.
International High Frequency Broadcasting Conference
Ankara . . .
Atlantic City .
Paris ....
Paris ....
Geneva . . .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Lake Success .
Geneva . . .
Lake Success .
Lake Success .
Lake Success .
Paris ....
Geneva . . .
Lausanne . .
Rio de Janeiro
Montreal . .
Copenhagen .
Bern ....
Paris ....
Paris ....
Geneva . . .
Geneva . . .
Geneva . . .
Montreal . .
Stockholm . .
Washington .
London . . .
Geneva . . .
Geneva . . .
Toronto . . .
Atlantic City
June (Undeter-
mined)
July 1
July 1-2
Julv 1-10
July 5
July 7
July 19
July 24
Aug. 18 2
Aug. 18 2
Aug. 25 2
Aug. 28 2
Aug. 28 2
Aug. 28 2
July 9
July 14-21
July 15
July 15
Aug. 19
July 20-26
July 23-30
Julv 24
July 30
Aug. 28
Aug. 30-Sept. 14
July
Aug. 4
Aug. 19
July
Aug. 6
Aug. 21
Aug. 25
Aug. 4-Sept. 13
August or Sep-
tember
2 Tentative.
1290
Department of Slate Bulletin
Final Session of the CITEJA, May 6-27, 1947
One of the questions on the agenda of the First
Assembly of the International Civil Aviation Or-
ganization (ICAO) which was held at Montreal,
Canada, from May 6 to May 27, 1947, was the or-
ganization of an international committee on air
law which would deal not only with public air
law matters, but also with questions of private in-
ternational air law heretofore dealt with by the
International Technical Committee of Aerial
Legal Experts (CITEJA). Kealizing the prob-
ability that the organization of the now connnit-
tee would be definitely provided for by the First
Assembly of ICAO, CITEJA arranged to have
its sixteenth and last session at Montreal, at the
lime of the meeting of the assembly, for the pur-
pose of arranging for its li(iuidatiou.
Accordingly, the Sixteenth Session of CITEJA
was convened on May 10, 1947. The following
countries were represented: Australia, Belgium,
Canada, Denmark, Egyi^t, France, Greece, Italy,
Luxembourg, the Netherlands, Norway, Portugal,
Switzerland, the United Kingdom, the United
States, and Yugoslavia. Representing the United
States at this session were: Stejahen Latchford,
Chairman of the United States Section of
CITEJA, Aviation Adviser, Aviation Division,
Department of State; Emory T. Nunneley, Gen-
eral Counsel, Civil Aeronautics Board; Nathan
G. Calkins, Adviser to the General Counsel, Civil
Aeronautics Board ; and John C. Cooper, Institute
for Advanced Study, Princeton, New Jersey.
At tho meeting on May 10, the Secretary Gen-
eral of CITEJA submitted a report on the work
of CITEJA since the close of its Fifteenth Ses-
sion (Cairo, Egypt, November 14 to 17, 1946), and
CITEJA adopted the report of its commission on
the verification of accounts for the year 1946.
Two other important subjects were on the agenda,
one dealing with the integration of CITEJA
into ICAO and the other a consideration of a pro-
posed plan of liquidation.
In as much as the matter of providing for the
organization of a new legal committee of ICAO
which would take over the activities of CITEJA
had not during the current session of the assembly
progressed to the point where these two subjects
could be adequately treated in the meeting on
June 29, 1947
May 10, a second meeting of CITEJA was held
on May 22. At this meeting consideration was
given to a plan of liquidation presented by a
member of the United Kingdom Delegation, as
reporter. Briefly, this plan dealt with indemni-
ties to the pei'sonnel of CITEJA, distribution of
the assets, and detailed arrangements for the com-
pletion of liquidation. It was explained that it
would take until September 1, 1947, to complete
work on the CITEJA documents and that it might
be necessary to employ some CITEJA personnel
beyond that date. The reporter also brought up
the question of the disposition of any funds I'e-
maining at the time of final liquidation and sug-
gested two possible alternative plans for dispos-
ing of the funds: (1) a return of funds to the
contributing states on a pro rata basis, or (2)
turning over the funds to ICAO for the benefit
of the CITEJA personnel who might enter the
service of ICAO. The report presented showed
a balance of approximately 2,843,625 French
francs, which, at the present rate of exchange,
would amount to approximately $23,900. There
had not, however, been deducted from this balance
sums advanced to CITEJA by the French Govern-
ment, under an agreement entered into in 1943,
which amounted to 225,000 francs. Although it
was not certain that the French Government would
claim repayment of these sums, it was decided to
include them tentatively as a liability.
The United States Delegation favored a plan
whereby any surplus funds on hand at the time of
the liquidation of CITEJA, after the debts of that
organization had been paid, would be turned over '
to ICAO for use by its new legal committee. It
was proposed by the French Delegation that the
states represented on CITEJA should be asked:
(1) whether they desii'ed to have a retirement fund
.set up for the CITEJA personnel; (2) whether
they preferred the United States suggestion of
turning over the surplus funds to ICAO without
indicating any conditions; or (3) whether they
desired to have these funds returned to them. It
was agreed to establish a liquidating commission
which would submit these proposals to the in-
terested governments. A French, Swiss, and
United Kingdom member of CITEJA were ap-
1291
ACTIVITIES AND DEVBLOPMBNTS
pointed to serve as the three members of the liq-
uidating commission.
At tlie close of the CITEJA session, the presi-
dent delivered an address reviewing the accom-
plishments of the International Technical Com-
mittee of Aerial Legal Experts. As an interna-
tional drafting committee of experts on private
law, the CITEJA was created by a resolution
adopted by the First International Conference on
Private Aerial Law which was held at Paris,
France, in October 1925. Its purposes were to es-
tablish a program pertaining to private air law to
be studied by commissions of experts, to prepare
texts of international conventions on private air
law for consideration at periodic international
conferences, and to elaborate progressively a single
international code of private air law. Before the
outbreak of war, 27 countries were represented on
CITEJA and were making contributions toward
the expenses of its secretariat.
U.S. DELEGATION TO TWENTY-FIRST
SESSiON OF JOURNEES n/SEDlCALES
[Released to the press June 19]
The Secretary of State announced on June 19
that the President has approved the composition of
the United States Delegation to the twenty-first
session of the Journees Medicales, which is sched-
uled to be held at Brussels from June 21 to 25,
1947. The nominations of the delegates were
based upon the recommendations of the Navy De-
partment, the War Department, and the Federal
Security Agency. The Delegation is as follows :
Chairman
Capt. Arthur W. Loy, M.C., U.S.N., Assistant Naval At-
tach^, American Embassy, London
Delegates
Col. F'rancis M. Fitts, M.C., U.S.A., Office of the Surgeon,
Headquarters Command, European Command
Surgeon Eobert W. Blach, U.S. Public Health Service, Fed-
eral Security Agency, American Consulate, Rotter-
dam
The twenty-first session of the Journees Medi-
cales is one in a series of meetings which were held
annually before the war with the objective of
keejjing the practicing physician in touch with cur-
rent research. Distinguislied doctors were invited
to discuss the contributions in their particular
field. The first meeting after the war was held in
June 1946.
The forthcoming meeting wiU provide an op-
1292
portunity for representatives of the medical pro-
fession from the various countries to meet and ex-
change information concerning recent develop-
ments in the science of medicine. An exposition
will be held in connection with the meeting.
U.S. TO MEET WITH INTERNATIONAL
RUBBER STUDY GROUP
[Released to tlie press June 19]
The United States has accepted an invitation
from the Government of France to participate
in a meeting of the International Rubber Study
Group, to be held in Paris from July 1 to July 10,
1947, the Department of State announced on
June 19.
The Rubber Study Group was organized as a
forum for the informal discussion of problems
confronting the countries most interested in rub-
ber. Members of the Group attending previous
meetings (which were held in Washington in 1945,
in London in 1945, and at The Hague in 1946)
were the United States, the United Kingdom,
France, and the Netherlands. These countries will
be joined at Paris by approximately 11 others
which have applied for membership since the last
meeting.
The United States Delegation is as follows :
Delegate
Donald D. Kennedy, Chief, International Resources Divi-
sion, Department of State
Alte7-nate
William T. Phillips, Special Assistant on Commodity
Policy, International Resources Division, Department
of State
Advisers
H. C. Bugbee, Attach^, American Embassy, London
Rear Admiral C. E. Braine, U.S. Navy
Everett G. Holt, Rubber Adviser, Department of Com-
merce
P. W. Litchfield, C|hairman, The Goodyear Tire and
Rubber Company
.T. Ward Keener, Vice President, B. F. Goodrich Company
George M. Tisdale, Vice President, United States Rubber
Company
Howard W. Jordan, President, Pennsylvania Rubber
Company
A. L. Viles, President, Rubber Manufacturers' Association,
Inc.
R. D. Young, President, Rubber Trade Association of New
York
Secretary
George H. Alexander, Commodity Specialist, International
Resources Division, Department of State
Deparfmenf of Sfafe Bulletin
U.S. DELEGATION TO ICAO MEETINGS
IN LIMA AND RIO DE JANEIRO
[Released to the press June 17]
The Secretary of State announced on June 17
that the United States Delegation to two regional
air-navigation meetings of the International Civil
Aviation Organization (ICAO) has left for South
America. The first of these meetings, the South
American Regional Air Navigation Meeting, is
scheduled to be held at Lima from June 17 to July
7, and the second, the South Atlantic Regional Air
Navigation Meeting, is scheduled to be held at
Rio de Janeiro from July 15 to August 7. The
composition of the United States Delegation was
approved by the President. Nomination of the
delegates was submitted by the Secretary of State
upon the recommendations of the Air Coordinat-
ing Committee, the Technical Division of the
ICAO, and of the interested departments and
agencies of the Government. The Delegation is
as follows:
Chairman
Glen A. Gilbert, Chairman, Special Missions, Office of the
Administrator, Civil Aeronautics Administration,
Department of Commerce
Vice Chairmen
Kendall G. Hathaway, Assistant Technical Adviser, Air
Regulations, Civil Aeronatitics Board
Maj. Gen. Laurence S. Kuter, U.S. Representative, Inter-
national Civil Aviation Organization
Delegates
James F. Angler, Civil Aeronautics Administration, De-
partment of Commerce
Clifford P. Burton, Civil Aeronautics Administration,
Department of Commerce
Louis Harmantas, Aeronautical Meteorology, Weather
Bureau, Department of Commerce
L. Ross Hayes, Civil Aeronautics Administration, Depart-
ment of Commerce
Lt. Comdr. John D. McCubhin, U.S.C.G., Search and Rescue
Agency, U.S. Coast Guard
Ray F. Nicholson, Civil Aeronautics Administration.
Department of Commerce
Advisers
John S. Anderson, Aeronautical Radio, Inc., Washington
D.C.
Comdr. George Clifford, U.S.N., Civil Aviation Section,
Office of the Chief of Naval Operations, Navy Depart-
ment'
James D. Durkee, Chief, International Aviation Section,
Federal Communications Commission
Lt. Comdr. G. E. Howarth, U.S.C.G., Chief, Navigational
June 29, 1947
ACnWr/ES AND DEVELOPMENTS
Section, Electronics Engineering Division, U.S. Coast
Guard
Capt. Charles W. Lord, U.S.N., ICAO Coordinator, Office
of the Chief of Naval Operations, Navy Department '
Donald W. Nyrop, ICAO Representative for the Air Trans-
port Association
Col. Carl Swyter, U.S.A., Technical Assistant to the As-
sistant Chiefs of Staff for Plans and Operations, War
Department
fiecrctary of the Delegation
J. Ward Lowe, Division of International Conferences,
Department of State
Administrative Assistant
Mary Bean, Civil Aeronautics Administration, Depart-
ment of Commerce
The regional meetings at Lima and Rio de
Janeiro are the sixth and seventh respectively in a
series of nine regional meetings, originally sched-
uled by the Provisional International Civil Avia-
tion Organization (PICAO), to recommend on
an area basis procedures, standards, and systems
of air navigation and air facilities required for
international air travel and routes. Invitations to
the forthcoming meetings were issued by the Sec-
retary General of the PICAO, on behalf of the in-
terim council of that organization, to all the mem-
ber governments within the respective geographic
regions, including governments whose airlines are
prospective operators and who contribute facilities
within the region. The nonmember govermnents
which come under these categories were invited
to send obsen'ers. The continuation of this prac-
tice of conducting regional meetings to study flying
problems, which was begun under the PICAO, was
agreed to and endorsed by the permanent organi-
zation when it held its first general assembly at
Montreal last month.
The agenda of the Lima and Rio de Janeiro
meetings are expected to follow the pattern of
former regional meetings and to consider stand-
ards and their application to the requirements of
the South American and South Atlantic regions
in the following six fields : air-traffic control ; aero-
dromes, air routes, and gi-ound aids; communica-
tions; meteorology; operating standards; and
search and rescue. The regional groups also con-
duct inventories and make recommendations on
all air-navigation facilities within the regions.
' Commander Clifford will attend the Lima meeting ; he
wUl be replaced at Rio de Janeiro by Captain Lord.
1293
THE RECORD OF THE WEEK
Universal Training — A Support for Foreign Policy
ADDRESS BY THE PRESIDENT '
President Dodds, Distinguished Guests, Ladies
AND Gentlemen :
It is with a great deal of pleasure, and much
pride, that I am now able to count myself as a
member of the Princeton family. Princeton Uni-
versity has conferred an honor upon me for which
I am deeply grateful. I consider it a special privi-
lege to have received the degree of Doctor of Laws
at the Final Convocation of the Bicentennial Year
in the presence of this distinguished company.
On an earlier occasion of equal significance in
the history of this University, the President of the
United States, Grover Cleveland, spoke in 1896 at
the Princeton Sesquicentennial Ceremonies. Pres-
ident Cleveland seized that opportunity to charge
our colleges and universities with the task of sup-
plying a "constant stream of thoughtful, educated
men" to the body politic — men who were eager to
perform public service for the benefit of the
Nation. He chided our institutions of higher
learning for their lack of interest in public affairs
and held them responsible for the disdain with
which many of the best-educated men of the day
viewed politics and public affairs.
Happily for us, that attitude on the part of our
universities vanished long ago. I am certain that
no observer of the American scene in recent years
has detected any reluctance on the part of our edu-
cators to enter the political arena when their serv-
ices have been needed. And our schools have made
much progress in supplying the "constant stream
of thoughtful, educated men" for public service
called for by President Cleveland half a centui-y
ago.
' Delivered at commencement exercises at Princeton Uni
versity, Princeton, N.J., on June 17, 1947, and released to
the press by tlie White House on the same date.
1294
Tliat task is more important today than at any
previous time in our national history.
In our free society, knowledge and learning arc
endowed with a public purpose — a noble purpose,
close to the heart of democracy. That purpose is
to help men and women develop their talents for
tlie benefit of their fellow citizens. Our advance
in the natural sciences has led to almost miraculous
acliievements, but we have less reason to be proud
of our progress in developing the capacity among
men for coopei-ative living. In the present critical
stage of woi-ld history, we need, more than ever
before, to enlist all our native integrity and indus-
try in the conduct of our common affairs.
The role of the United States is changing more
rapidly than in any previous period of our history.
We have had to assume world-wide responsibilities
and commitments. Our people have placed their
trust in the Government as the guardian of our
democratic ideals and the instrument through
which we work for enduring peace.
The success of the Government's efforts in
achieving these ends will depend upon the quality
of citizenship of our people. It will also depend
upon the extent to which our leaders in business,
labor, the professions, agriculture, and every other
field appreciate the role of their Government and
the greatness of its tasks.
Our schools must train future leaders in all
fields to understand and concern themselves with
the expanded role of government, and — equally
important — to see the need for effective adminis-
tration of the Government's business in the public
interest.
I call your attention particularly to the problem
of effective administration within the Government,
where matters of unprecedented magnitude and
complexity confront the public servant. If our
Department of State Bulletin
national policies are to succeed, they must be ad-
ministered by officials with broad experience,
mature outlook, and sound judgment. There is,
however, a critical shortage of such men — men who
possess the capacity to deal with great affairs of
state.
The Government has recruited from our aca-
demic institutions many members of its profes-
sional staffs — geologists, physicists, lawyers,
economists, and others with specialized training.
These men are essential to the conduct of the
Government and the welfare of the Nation. But
we have been much less effective in obtaining per-
sons with broad understanding and an aptitude
for management. We need men who can turn a
group of specialists into a working team and who
can combine imagination and practicability into
a sound public program.
All large organizations, public or private, de-
pend on the teamwork of specialists. Coordination
is achieved by administrators trained to assemble
the fruits of specialized knowledge and to build on
that foundation a sound final decision. Men
trained for this kind of administrative and politi-
cal leadership are rare indeed.
In the task of finding and training men and
women who will add strength to the public serv-
ice, universities have a particular responsibility.
They should develop in their students the capacity
for seeing and meeting social problems as a whole
and for relating special knowledge to broad issues.
They should study the needs of government and
encourage men and women with exceptional inter-
ests and aptitudes along the necessary lines to
enter the government service.
The Woodrow Wilson School of Public and
International Affairs of this University was estab-
lished with this purpose in mind. It seeks to
prepare students for public careers. It is signifi-
cant that the School bears the name of a statesman
whose concept of civic duty contributed so much
to the Nation and to the world.
Of course, the Government cannot and does not
expect to rely entirely upon our educational insti-
tutions for its administrators. It must bring into
service from business and labor, and the profes-
sions, the best qualified persons to fill posts at all
levels.
The Government must take several steps to make
June 29, 7947
THE RECORD OF THB WEEK
its career service more attractive to the kind of
men and women it needs.
Salary limitations prevent the government, in
many instances, from securing the kind of execu-
tives required to manage its vital activities. Ca-
pable administrators are too frequently drawn
away from government to private positions with
salaries many times what they could earn in gov-
ernment service. This situation can be remedied
only by laws to bring salaries more nearly mto line
with the heavy responsibilities that executives cany
at the higher levels in the public service.
The complexities of the tasks now facing our
top officials force them to spend most of their time
in studying matters of policy. These officials
should be supported by a career group of adminis-
trators skilled in the various aspects of manage-
ment. If capable men and women can look for-
ward to holding such posts as a reward for able
service, they will be more eager to accept govern-
ment employment.
Because of the difficult tasks of government to-
day, we should plan a program for the systematic
training of civilian employees once they have
entered the public service. It is not generally pos-
sible at the present time for the Federal Govern-
ment to send its employees to universities for
special short-term training programs. Nor is it
permissible under existing law to spend Federal
funds for Government schools to develop the
knowledge and techniques required by officials in
their work.
This is a problem that can be solved only by the
joint efforts of the Govermnent and the univei-si-
ties. Training programs can be formulated both
on the job and on tlie campus. The Government
must make provision for its employees to partici-
pate. The universities will need to provide courses
well adapted to increasing the effectiveness of the
employee in his job. Such a plan is certain to pay
substantial dividends.
I have been speaking about the important con-
tribution which educational institutions can make
in the service of the Nation through preparing men
and women to administer our far-flung public en-
terprises.
Another contribution which I regard as impor-
tant at this time is support for a program of uni-
versal training. I consider such a program vital
to the national welfare. Since universal training
1295
THE RECORD Of THE WEEK
necessarily affects young men of college age, I be-
lieve that our educational institutions should be
particularly aware of the need for such a program
and what it can accomplish.
The recent war left in its wake a tremendous task
of repair and reconstruction, of building a new and
orderly world out of the economic and social chaos
of the old. It is a task too great for us, or for any
other nation, to undertake alone. Even though we
are contributing generously and wholeheartedly,
no single nation has the means to set the world
aright. It is a job for all nations to do together.
Unfortunately, however, generosity of impulse and
abundant good will are not enough to insure the
political stability essential to social and economic
reconstruction. Peace-loving nations can make
only slow progress toward the attainment of a
stable world — in which all peoples are free to
work out their own destinies in their own way —
unless their moral leadership is supported by
strength.
Weakness on our part would stir fear among
small or weakened nations that we were giving
up our world leadership. It would seem to them
that we lacked the will to fulfil our pledge to aid
free and independent nations to maintain their
freedoms or our commitments to aid in restoring
war-torn economies. In such an atmosphere of
uncertainty, these nations might not be able to
resist the encroachments of totalitarian pressures.
We must not let friendly nations go by default.
A few days ago, I sent to the Congress a report
outlining a program designed to provide this coun-
try with the military strength required to support
our foreign policy until such time as the growing
authority of the United Nations will make such
strength unnecessary. That report was prepared
by an advisorj' commission of distinguished citi-
zens, one of whom was Pi-esident Dodds. The com-
mission reported its belief that the United States
should have small professional armed forces.
These should be supported by a reserve of trained
citizens, derived from a carefully planned program
of universal training for young men. Without
such training, in the opinion of the commission,
we cannot maintain effective reserves. Hence the
commission regards universal training as an es-
sential element in a balanced program for security.
Universal training represents the most demo-
cratic, the most economical, and the most effective
method of maintaining the military strength we
need. It is the only way that such strength can be
achieved without imposing a ruinous burden on
our economy through the maintenance of a large
standing armed force.
The justification for universal training is its
military necessity. However, it is a matter of deep
concern to me that the training program shall be
carried out in a manner that will contribute ma-
terially to the health and character of our young
men. I am certain that the kind of training recom-
mended in the report of the advisory commission
will not only make our youth better equipped to
serve their country but better mentally, morally,
and physically. The experience of living together
and fulfilling a common responsibility should
strengthen the spirit of democracy. It will be an
experience in democratic living, out of which
should come in increased measure the unity so
beneficial to the welfare of the Nation.
We must remember, above all, that these men
would not be training in order to win a war but in
order to prevent one.
I am confident that our educational institutions
understand the need for universal training and
recognize it as a vital responsibility of citizenship
in our day.
The obligations of our educational institutions
which I have been discussing are great, but in the
world today there is a still greater obligation. It
is the obligation of service to all nations in the
cause of lasting peace.
There can be no greater service to mankind, and
no nobler mission, than devotion to world peace.
The course has been charted.
The constitution of the United Nations Educa-
tional, Scientific and Cultural Organization states
the basic truths by which we must be guided.
That constitution reads : "Since wars begin in the
minds of men, it is in the minds of men that the
defenses of jjeace must be constructed."
The construction of the defenses of peace in the
minds of men is the supreme task which our
educational institutions must set for themselves.
This convocation is a symbol of what our edu-
cational institutions can do in the cause of peace, i,
It marks the end of a great series of conferences, i
attended by scholars from all over the world, who
assembled here for free discussion of the most
challenging problems facing men today.
The special significance of these meetings is that
1296
Department of State Bulletin
they restored bonds in many fields of learning
between our own and other lands — bonds which
had been impaired by the war. The resumption of
meetings of scholars, businessmen, religious lead-
ers, and government officials is evidence of our con-
viction that the peace must "be founded, if it is
not to fail, upon the intellectual solidarity of
mankind."
THE RECORD OF THB WEEK
Free and inquiring minds, with unlimited ac-
cess to the sources of knowledge, can be the archi-
tects of a peaceful and prosperous world.
As we gain increasing understanding of man,
comparable to our increasing understanding of
matter, we shall develop, with God's grace, the
ability of nations to work together and live to-
gether in lasting peace.
Committee To Study Effect of Foreign Aid on Domestic Economy
STATEMENT BY THE PRESIDENT
[Released to the press by the White House June 22]
The impact upon our domestic economy of the
assistance we are now furnishing or may furnish to
foreign countries is a matter of grave concern to
every American. I believe we are generally
agreed that the recovery of production abroad is
essential both to a vigorous democracy and to a
peace founded on democracy and freedom. It is
essential also to a world trade in which our busi-
nessmen, farmers, and workers may benefit from
substantial exports and in which their customers
may be able to pay for these goods. On the other
hand, the extent to which we should continue aid-
ing such recovei'y is less easy to ascertain and
merits most careful study.
Much attention has already been given to these
questions by various agencies of the Government,
as well as by a number of well-informed and
public-spirited citizens. The results of current
study and discussion have not, however, been
brought together and objectively evaluated in a
form suitable for guidance in the formulation of
national policy.
Accordingly, I am creating immediately three
committees to study and report to me within the
shortest possible time on the relationship between
any further aid which may be extended to foreign
countries and the interests of our domestic econ-
omy. Two of these studies will be conducted
witliin the Government; the third will be con-
ducted by a nonpartisan committee of distin-
guished citizens headed by the Secretary of Com-
merce.
Of the two studies to be conducted within the
Government, one will deal with the state of our
national resources and will be made by a com-
mittee of specialists under the direction of the
Secretary of the Interior. The other govern-
mental study will deal with the impact on our na-
tional economy of aid to other countries and will
be conducted by the Council of Economic Advisers.
The nonpartisan committee will be requested to
determine the facts with respect to the character
and quantities of United States resources available
for economic assistance to foreign countries and
to advise me, in the light of these facts, on the
limits within which the United States may safely
and wisely plan to extend such assistance and on
the relation between this assistance and our do-
mestic economy. This committee will be drawn
from representatives of American business, fi-
nance, labor, agriculture, and educational and re-
search institutions. In carrying out its work this
committee will have the benefit of the studies
which are to be made within the Government, as
well as the materials already prepared by various
Government agencies.
The names of those being asked to serve on the
committee are as follows :
Hiland Batcheller, President, AUegheny-Ludlum Steel
Corp., Pittsburgh, Pa.
Robert Earle Buchanan, Dean, Graduate College, Iowa
State College, Ames, Iowa
W. Randolph Burgess, Vioe-Oliairman, National City
Bank of New York, New York, N.Y.
James B. Carey, Secretary-Treasurer, C.I.O., Washing-
ton, D.C.
John L. Collyer, President, B. F. Goodrich Company,
Akron, Ohio
(Continued on page 1315)
June 29, J 947
1297
Program for UtiBization of Aid to Greece
EXCHANGE OF NOTES BETWEEN THE U.S. AND GREEK GOVERNMENTS'
[Released to the press on June 18]
Text of United States note to Greek Government
May 26, 19^7.
In response to an appeal by the Greek Govern-
ment in its note of March 3, 1947 ^ to the Govern-
ment of the United States, and through it to the
American people, for financial, economic and ex-
pert aid to assist the Greek people in restoring their
country, the President of the United States on
March 12, 1947,^ requested from the Congress the
necessary authority to permit him to extend the
help requested.
The Government of the United States now in-
forms the Greek Government that the President
has been authorized to extend assistance to Greece
under the provisions of an Act of Congress signed
May 22, 1947.*
The Government of the United States will wel-
come an indication from the Greek Government
of its general recovery program and assurances
that the proffered assistance will be effectively
utilized. This Government will also welcome as-
surances from the Greek Government that it is
prepared to enter into negotiations leading to a
mutually acceptable agreement between the two
Governments on the terms under which American
aid will be extended.
Text of Greeh Government's reply
June 15, 1947.
The Greek Government acknowledges the note
of the United States Government of May 26, 1947,
informing it that the President of the United
States has been empowered by Congi'essional
action to extend assistance to Greece. The hearts
of the Greek people are profoimdly touched by this
proof of the generosity and good will of the Ameri-
^ Printed from telegraphic text.
' Bulletin of War. 16, 1947, p. 493.
' Bulletin of Mar. 23, 1947, p. 534.
' Bulletin of June 1, 1947, p. 107.
1298
can people and of the benevolent interest of a
great and friendly nation in the welfare of Greece.
The Greek Government, on its own behalf and on
behalf of the Greek people, wishes to express its
deepest appreciation for this magnanimous re-
sponse to the request of the Greek Government and
takes this opportunity to repeat that it turned to the
United States for aid only because the devastating
results of the war were such as to render impossible
the enormous task of reconstruction with the re-
sources lemaining to Greece after years of conflict
and enemy occupation.
The Greek Government wishes to give assurances
that any assistance it may receive will be used in
conformance with the purposes for which it may
be made available. Aid given for military pur-
poses will be used in the restoration and mainte-
nance of internal order. Aid furnished for the
economic recovery and physical reconstruction of
the country will be expended in a manner which
will have a lasting beneficial effect on the country
as a whole.
The Greek Government also wishes to make
known at this time its own plans for action which
will lay a basis for American assistance in Greek
recovery and reconstruction.
The Greek people realize that ultimate solution
of their problem requires great and continuous
effort by themselves. They are aware that the ex-
tensive aid of the United States will not alone be
sufficient to meet the large costs of restoring public
order and reconstructing productive facilities over
a period of years. The Greek Government will
lead its people in their effort to achieve these ends.
This responsibility entails the composing of in-
ternal differences, the collection of more revenues,
the rebuilding of foreign trade, the conservation
of foreign exchange, the reconstruction of public
works, the improvement of government adminis-
tration, assistance and guidance to agriculture and
industry, establislmient of protective labor meas-
ures, encouragement of democratic organizations
among economic and social groups, measures to
Department of Slate Bulletin
control inflation and assure equitable distribution
of supplies and services, and the restraint of ex-
cesses and extravagances on the part of any seg-
ment of the population. The Greek Govei-nment
will undertake these and all other necessary meas-
ures to marshal Greece's own resources to the full-
est extent in attaining the ends for which Ameri-
can assistance may be extended. This organiza-
tion of Greek effort will require economic contri-
butions and cooperation from all.
The Greek Government is ever mindful that
primary responsibility for the economic welfare of
the country rests with the Greek Government, and
it is therefore proceeding with plans for the early
institution and vigorous administration of those
measures which will enable full use of capital, pro-
ductive facilities, manpower resources and natural
wealth to be found in Greece. Certain measures
proposed by the Greek Government are stated in
general terms in this note; these and other meas-
ures will be developed further after consultation
with American advisers.
In order to achieve budgetary balance and eco-
nomic stability at the earliest possible time the
Greek Government will undertake to rehabilitate
its national and local revenue system by all neces-
sary measures including the modernization of tax
administration, elimination of tax evasion and the
use of every practicable source of revenue. Full
regard will be given to the equitable distribution
of the tax burden and to the principle of ability
to pay. Measures will be taken to control and cur-
tail expenditures of the Government. The Gov-
ernment audit and accounting system will be
strengthened, and the budget will be published and
used as an effective control of expenditures.
With a view to steadily increasing the ratio of
official acquisitions of foreign exchange to import
requirements, a program will be undertaken to
increase the amounts of foreign exchange coming
into the Greek economy through normal commer-
cial channels. Vigorous efforts to increase ex-
ports, including the resumption of the export of
olive oil and the rebuilding of foreign markets,
will be made. Measures will be adopted to assure
the operation of Greek shipping in a manner which
will provide the greatest benefit for the national
economy. Existing regulations on the import and
export of foreign exchange will be enforced and
strengthened by all possible means. To make the
June 29, 1947
THE RECORD OF THE WEEK
most effective use of available exchange, imports
will be limited to those which are essential to the
Greek economy, and they will be brought in as
an integral part of a national import program
which includes goods purchased with American
aid. The planning and supervising of the admin-
istration of the program of public and private im-
ports and exports will be centralized in a Foreign
Trade Committee comprising Greek and American
technicians and headed by an American in the em-
ploy of the Greek Government.
To guard against further inflation, a vigorous
program will be undertaken to hold down prices
and to establish an equitable relationship between
prices and wages. As further deterrents to infla-
tion, rent control and rationing of commodities
will be continued and controls on credit and bank-
ing will be instituted.
The agricultural and industrial production of
the country will be increased by Government guid-
ance and financial assistance. Unduly restrictive
taxes, detrimental employment practices and mo-
nopoly regulations will be re-examined, and all
unnecessary deterrents to 'production eliminated.
To this end the Greek Government will encourage
increased labor productivity while fostering the
right of workers to organize and join free demo-
cratic labor unions and to engage in activities to
promote their mutual protection and economic
status.
In order to fill its increasingly active role in
guiding the recovery and 'reconstruction efforts
during the American aid program, the Govern-
ment will undertake an extensive, progi'am to im-
prove its governmental organizations " and civil
service, which were so disrupted by the long years
of war.
The Greek Government wishes to take this op-
portunity to renew its request to the United States
Government for American personnel who can as-
sist in the Greek recovery effort, including a spe-
cial American Mission to administer tlie extension
of American aid, observe its use by the Greek
Government and advise the Greek Government.
In order to expedite recovery in Greece and because
of the large financial contribution of the United
States to Greece, the Mission should participate
in the development of revenue and expenditure
policies, approve government expenditures for ac-
tivities which directly or indirectly involve the use
1299
THB RECORD OF THE WCEK
of American aid, take part in the planning of the
import progi'am, and approve the use of foreign
exchange. The Greek Government would also
wish the Mission to assist in execution of recon-
struction projects, improvement of public admin-
istration, technical training of civil servants and
other personnel, continuation of the health pro-
gram, development of exports, programming and
disposition of government purchased supplies, pro-
motion of agricultural and industrial recovery,
and regulation of wages and prices. In general
the Greek Government will wish to consult with
the Mission before taking any economic steps which
might affect the success of the American aid pro-
gi'am.
In addition to the members of the Mission who
will act as representatives of the United States
Government, the Greek Government wishes the
assistance of the United States Government in em-
ploying a limited number of American experts to
act in technical and supervisory capacities within
the Greek Government. The Government will con-
tinue a Currency Committee consisting of Greeks
and foreign experts with functions modified to fit
in with those of the American Mission. As men-
tioned above, a Foreign Trade Administration,
headed by an American technician, is also planned.
In the light of the recent legislation by the Con-
gress of the United States and of the views ex-
pressed by the United States Government in its
note of May 26, 1947, and by the Greek Govern-
ment in this note, it is suggested that the two
Governments should enter into a formal agreement
on these matters.
Text of United States note to Greek Government
June 18, 194.7.
The Government of the United States acknowl-
edges the note of the Greek Government of June
15, 1947 setting forth in general terms the Greek
Government's recovery program.
This Government notes with satisfaction the
assurances of the Greek Government that Ameri-
can aid will be effectively utilized in accordance
with the purposes for which it is being extended.
This Government also welcomes the assurances of
the Greek Government that it is prepared to enter
into negotiations leading to a mutually acceptable
agreement on the terms under which this aid will
be extended and has authorized the American
Ambassador in Greece to negotiate such an agree-
ment with the Greek Government.
TEXT OF AGREEMENT ON AID TO GREECE'
The Government of Greece having requested the
Government of the United States for financial,
material and technical assistance to avert economic
crisis, promote national recovery, and restore in-
ternal tranquillity ; and
The Congress of the United States, in the Act
approved May 22, 1947, having authorized the
President of the United States to furnish such as-
sistance to Greece, on terms consonant with the
sovereign independence and security of the two
countries; and
The Government of Greece, in a note to the Gov-
ernment of the United States of June 15, 1947,
having proposed certain measures within Greece
which it deems essential to the effective use of
United States assistance and of Gi'eece's own re-
sources in promoting reconstruction and recovery
in Greece as soon as possible ; and
The Government of the United States and the
Government of Greece believing that the furnish-
' Printed from telegraphic text.
1300
ing of such assistance will help to achieve the basic
objectives of the Charter of the United Nations
and will further strengthen the ties of friendship
between the American and Greek peoples :
The undersigned, being duly authorized by their
respective Governments for that purpose, have
agreed as follows :
Article I
The Government of the United States will fur-
nish the Government of Greece such assistance as
the President of the United States may authorize
to be provided in accordance with the Act of Con-
gress approved May 22, 1947, and any Acts
amendatory or supplementary thereto.
Article II
The Government of Greece will make effective
use of any assistance furnished to Greece by the
United States and of Greece's own resources in
Department of State Bulletin
order to advance reconstruction and secure recov-
ery in Greece as soon as possible. To this end the
Government of Greece has already undertaken,
and hereby agrees, to effectuate the measures pro-
posed in its note of June 15, 1947 to the Govern-
ment of the United States and will take such fur-
ther action as may be appropriate.
Article III
The Government of the United States will send
to Greece a mission to be known as the American
Mission for Aid to Greece (hereinafter referred to
as the American Mission). The Chief of the
American Mission designated by the President of
the United States will represent the Government
of the United States on matters relating to the as-
sistance furnished under this Agreement.
Article fV
The Chief of the American Mission will deter-
mine, in consultation with representatives of the
Government of Greece, the terms and conditions
upon which specified assistance shall from time
to time be furnished under this Agreement. Un-
der the dii'ection of the Chief, the Mission will pro-
vide such advisory assistance and will exercise such
functions as are necessary and proper to assist the
Government of Greece to make the most effective
use of any assistance furnished to Greece by the
United States and of Greece's own resources and
thereby to advance reconstruction and secure re-
covery in Greece as soon as possible. Certain of
these functions are contained in the measures pro-
posed by the Government of Greece in its note of
June 15, 1947.
Article V •
The Government of Greece will furnish all prac-
ticable assistance to the American Mission to facil-
itate the performance of its functions, the move-
ment of Mission personnel to, in or from Greece,
the employment of Greek nationals and residents,
the acquisition of facilities and services, and the
performance of other activities of the Mission.
The personnel of the American Mission and the
property of the Mission and of its personnel shall
enjoy in Greece the same privileges and immuni-
ties as are enjoyed by the personnel of the United
States Embassy in Greece and the property of the
Embassy and of its personnel.
THE RECORD OF THE WBEK
Article VI
The Government of Greece will permit the mem-
bers of the American Mission to observe freely the
utilization of assistance furnished to Greece by the
United States. The Government of Greece will
maintain such accounts and records, and will fur-
nish the American Mission such reports and infor-
mation, as the Mission may request for the per-
formance of its functions and responsibilities.
Article VII
The Government of Greece and the Government
of the United States will cooperate in assuring the
peoples of the United States and Greece full in-
formation, consistent with the security of the two
countries, concerning the assistance furnished to
Greece by the United States. To this end —
(1) representatives of the press and radio of
the United States will be permitted to observe
freely and to report fully regarding the utilization
of such assistance ; and
(2) the Government of Greece will afford the
American Mission opportunity for, and will co-
operate with it in providing, full and continuous
publicity within Greece, including periodic reports
by the Mission, as to activities under this Agree-
ment and the purpose, source, character, scope,
amounts, and pi'ogress of such assistance.
Article VIII
The Government of Greece will make such pro-
visions as may be required by the President of the
United States for the security of any article, serv-
ice, or information received pursuant to this
Agreement. It will not transfer, without the con-
sent of the President of the United States, title to
or possession of any such article or information
nor permit, without such consent, the use of any
such article or the use or disclosure of any such in-
formation by or to anyone not an officer, employee,
or agent of the Government of Greece or for any
purpose other than that for which the article or
information is furnished.
Article IX
The Government of Greece will not use any part
of the proceeds of any loan, credit, grant, or other
form of aid rendered pursuant to this Agreement
for the making of any payment on account of the
i\in& 29, 1947
1301
THE RECORD OF THE WEEK
principal or interest on any loan made to it by
another foreign government.
The Government of Greece will not, except with
the approval of the Government of the United
States, allocate any funds or make available any
foreign exchange for payment of principal or in-
terest on the foreign indebtedness now in suspense
of the Government of Greece and of all public and
private debtors.
Article X
Any or all assistance authorized to be provided
pursuant to this Agreement will be withdrawn —
(1) If requested by the Government of Greece
representing a majority of the Greek people;
(2) If the Security Council of the United
Nations finds (with respect to which finding the
United States waives the exeixise of any veto) or
the General Assembly of the United Nations finds
that action taken or assistance furnished by the
United Nations makes the continuance of assist-
ance by the Government of the United States
pursuant to this Agreement unnecessaiy or
undesirable ;
(3) Under any of the other circumstances speci-
fied in section 5 of the aforesaid Act of Congress
or if the President of the United States deter-
mines that such withdrawal is in the interest of
the United States ; or
(4) If the Government of Greece does not take
reasonable steps to effectuate those measures pro-
posed in its note of June 15, 1947 or subsequently
agreed upon which are essential to reconstruction
and recovery in Greece.
Article XI
This Agreement shall take effect as from this
day's date. It shall continue in force until a date
to be agreed upon by the two Governments.
Article XII
This Agreement shall be registered with the
United Nations.
Done in duplicate, in the English and Greek
languages, at Athens, this 20th day of June, 1947.
Lincoln MacVeagh
For the Government of the United States
CONSTANTINE TsALDARIS
For the Government of Greece
New Ambassador of Greece Presents Credentials
TEXT OF THE REMARKS OF AMBASSADOR VASSILI DENDRAMIS
[Released to the press June 9]
Mr. President: Having been called by my Gov-
ernment to assume the office of Ambassador of
Greece to the United States of America, I have
the honor to present to you, Mr. President, the
Letters of Ci'edence by which His Majesty the
King of the Hellenes, my August Sovereign, ac-
credits me to the President of the United States.
I am greatly honored by this mark of my Gov-
ernment's confidence, and in the exercise of my
functions as Ambassador it will be my especial
concern not only to maintain but to draw closer
the ties of cordial friendship so happily existing
between the United States of America and my
country. In this I shall count upon the support
and good-will which I beg you, Mr. President,
1302
to extend to me, as also upon the friendly assistance
of the Government of the United States.
I desire, in the first place, to pay tribute to
the generous thought that has prompted your
program of assistance to Greece. It bears witness
to a high conception of solidarity among the na-
tions, with a view to the maintenance of the free
democratic institutions that are a guarantee of
peace and security. In the critical moments
through which my country is passing there could
be no more heartening gesture. Your decision,
Mr. President, and that of the Congress of the
United States, is at once generous and far-sighted,
and the Greek people are profoundly and unani-
mously grateful.
Department of State Bulletin
Greece has ever placed her faith in those demo-
cratic ideals for which our two countries lately
took up arms. At this moment my Government's
principal concern is to ensure fulfilment of the
Greek people's desire for stability within the
country combined with external security. It is
firmly convinced that in this endeavor it will enjoy
the support of the United States, so that the demo-
cratic ideals and international justice for which
our Allies and Greece fought may become reality.
THE RECORD OF THE WEEK
The people of Greece hold your country in
higher regard and affection than ever before. The
United States of America is today the symbol and
the hope of freedom for the peoples of the world.
The people of Greece have been stricken by the
tempest of war — a war in which they gave their
all — and now they turn in gi'atitude to their coun-
try's great Ally, whose interest in their welfare,
now demonstrated actively, affords the surest
guarantee of my country's future.
TEXT OF THE PRESIDENT'S REPLY
[Released to the press June 9]
Mr. Ambassador: It is a great pleasure to ac-
cept the Letter of His Majesty the King of the
Hellenes accrediting you as Ambassador Extraor-
dinary and Plenipotentiary of Greece to the
Government of the United States of America.
There have long existed between the American
people and the Greek people strong ties of sym-
pathy and friendship. Ideals of freedom and
democratic government born in ancient Greece
were a primary source of inspiration to the found-
ers of the American Republic and to the authors
of our Constitution. Not many years after our na-
tion came into existence the youthful United States
gave sympathy and encouragement to the Greek
people in their struggle for freedom. These cor-
dial bonds between our two countries have never
been broken.
I note with satisfaction your Excellency's
friendly reference to the assistance which the Con-
gress has recently authorized me to extend to the
Greek people. It is my hope, as it is the hope of
the American people, that the aid which we extend
to your country will help to bring about the speedy
restoration of tranquillity, of economic stability,
and of national unity which will assure the Greek
people the possibility of working toward a hap-
pier future through the maintenance and develop-
ment of free institutions.
I most sincerely welcome you to this country as
the representative of a nation for which all the
American people have a profound admiration.
I shall be grateful, Mr. Ambassador, if you will
June 29, 1947
convey to your Sovereign my appreciation for his
friendly message and my best wishes for his per-
sonal happiness.
George C. McGhee Appointed
Coordinator off Aid to
Greece and Turitey
The Secretary of State on June 18 announced
the appointment of George C. McGhee as Coordi-
nator of Aid to Greece and Turkey.
Mr. McGhee, Special Assistant to William L.
Clayton, Under Secretary for Economic Affairs,
will officially assume his new post within a few
days. He already has coordinated the initial
formulation of plans and personnel for the Greek
and Turkish missions both in the Department and
as the deputy chairman of an interdepartmental
committee.
As Coordinator of the missions, Mr. McGhee will
be attached directly to the Under Secretary of
State for the purpose of assisting and expediting
the work of the Chiefs of the aid missions. He
will receive all problems and requests of the Chiefs
of Mission and immediately will focus the atten-
tion of the Department and other interested agen-
cies of the Government on them in order to obtain
the fastest possible action. As Under Secretary of
State Acheson stated recently, the Coordinator will
have immediate access to the Under Secretary, the
Secretary of State, and other Cabinet members so
that all problems that arise may be met as expedi-
tiously as possible.
1303
Use of Occupation Currency by Four Occupying Powers
BY ASSISTANT SECRETARY HILLDRING'
I am appearing before you today in response to
telegrams addressed to the Secretary of State by
Senator Bridges, Chairman, Senate Committee on
Appropriations. These telegrams express the in-
terest of the Committee on Appropriations, the
Committee on Banking and Currency, and the
Armed Services Committee of the Senate in the
following subjects :
1. Occupation currency policies, procedures, and
transactions of the Federal Government as deter-
mined and administered by the military authorities
or other officials within the occupied areas of Ger-
many and elsewhere.
2. Any agreements or understandings between
the Soviet Government and our own Federal Gov-
ernment regulating the issuance, transactions in,
and redemption of Allied military currency.
The Department of State has paramount re-
sponsibility, within the Executive branch of the
Government, for the establishment of an inte-
grated policy on the part of our Government to-
ward foreign countries, including areas occupied
by United States forces. Administration of our
national policy in occupied areas is the responsi-
bility of the United States military authorities.
Nevertheless the Department of State has, of
course, a continuing interest in the procedures
whereby our national policy is implemented, from
the standpoint of assuring, in coordination with
the War Department and other interested agencies,
that such procedures are of a nature to further the
earliest possible accomplishment of the basic aim
of our Government, namely, a just and lasting
peace.
United States policy regarding the currencies
to be used in occupied areas was formulated, in
' Statement made before the Senate Committee on Ap-
propriations, the Senate Committee on Banking and Cur-
rency, and the Senate Armed Services Committee, jointly,
on June 18, 1947, and released to the press June 19.
John H. Hilldring is Assistant Secretary of State for oc-
cupied areas.
1304
advance of military operations, in consultation
among the State, Treasury, War, and Navy De-
partments and then incorporated in directives of
the Joint Chiefs of Staff. Policy with respect to
areas of combined military operations was em-
bodied in directives of the Combined Chiefs of
Staff to the respective Allied military commanders.
Factors Determining the Choice of Occupation
Currency in Overseas Areas
A basic problem was the determination of
whether to use dollars or local currency in overseas
areas liberated by or occupied by our armed forces.
The decision was made to use local currency or a
military or occupation currency similar to the local
currency in the various overseas areas for the fol-
lowing reasons.
In the case of Germany, our policy has been to
require the German economy to bear the internal
costs of occupation of that country. It would
have been difficult to assure this incidence of occu-
pation costs had dollar currency been introduced
into the local economy. The introduction of dol-
lar currency would have resulted in the acquisition
of dollar claims against the United States by the
local population. Furthermore, it was considered
that the use of a different currency by each of the
invading forces would have prejudiced the adop-
tion of common economic and financial policies.
It was therefore agreed among the occupying
powers that a special Allied military mark should
be used to circulate at parity with the Keichsmark.
The same considerations applied generally to
Italy, Austria, and Korea at the time our armed
forces entered those countries. Similar considera-
tions regarding the burden of the internal costs of
occupation were pi-esent in the case of Japan,
where, however, the indigenous currency was used
almost entirely by our occupation forces.
The same policy was adopted for different
reasons with respect to invaded Allied countries
which were liberated by our forces. An im-
Department of State Bulletin
portant factor was the strong desire of our Allies
to avoid the introduction to their economies of
foreign currencies. Furthermore, it was con-
sidered tliat the use of local currencies would in-
volve a minimum of disturbance to the local econo-
mies, a factor of considerable importance to our
military commanders who were concerned with
avoiding disorder and economic breakdown be-
hind their lines. Also, dollar currencies used in
liberated countries might have found their way
into enemy hands, the element of risk in this re-
gard being especially high in military operations
such as our overseas invasions. Finally, when
Allied forces were composed of troops of more
than one nationality fighting side by side, it was
desirable that they should employ and be paid in
the same currency.
Agreements and Understandings Between the U.S.
and Soviet Governments Regulating the Issuance,
Transactions in, and Redemption of Allied Military
Currency
During the combined U.S.-U.K. military plan-
ning for the Normandy invasion, in the winter and
spring of 1944, it was decided by the U.S. and
British Governments that the combined military
forces would use legal tender German mark cur-
rency for their expenditures in Germany. In
order to be prepared for any eventuality, including
a situation in which inadequate supplies of Eeichs-
mark currency would be available to the combined
military forces, due, for example, to a scorched-
earth policy on the part of the Nazis, a supply of
supplemental mark currency, i.e. Allied military
marks, similar to the Allied military lire used by
the combined military forces in Italy, was printed
for the Supreme Commander, A.E.F. This
printing was effected, for U.S.-U.K. account, by
the Treasury Department in advance of Allied
military operations in Germany. The printing
took place in the United States because currency
printing facilities were then available in this
country but not in Great Britain.
Under international law, the Hague conven-
tions, and the decisions of the Supreme Court of
the United States, the military commander in
areas occupied by the forces under his command
has all the powers necessary for the carrying out
of governmental functions. These powers in-
clude the right to provide for the currency needs
0)f the area occupied. In fact, it is a funda-
mental principle of international law that an
THE RECORD OF THE WEEK
occupying authority has, in addition to its powers,
certain obligations to the inhabitants of the terri-
tory under its control, such as the establishment
and maintenance of an adequate and effective
circulating medium.
The above-mentioned policy was incorporated
in the directive from the Combined Chiefs of
Staff to the Supreme Commander, A.E.F., as
follows: "United States forces and other Allied
forces will use Allied Military marks and Reichs-
marks currency or coins in their possession.
Allied Military marks and Eeichsmark currency
and coin now in circulation in Germany will be
legal tender without distinction and will be inter-
changeable at the rate of 1 Allied Military mark
for 1 Eeichsmark. Eeichskreditkassenscheine
and other German military currency will not be
legal tender in Germany."
Negotiations were undertaken with the Soviet
authorities in Wa.shington for the purpose of ob-
taining Soviet agreement to use the same supple-
mental mark currency, i.e. Allied military marks,
in Soviet military operations in Germany. It
was desired by the United States and British
Governments that the Soviet Government use the
same supplemental German currency as that used
by the combined U.S.-U.K. military authorities
not only in order to indicate to the Germans and
others the unity of U.S., British, and Soviet action
and objectives but also in furtherance of the policy
of treating Germany as an economic unit. The
probable alternatives to the use of a supplemental
currency of uniform design would have been for
the Soviets to use a sui^plemental militai-y mark
of their own design or Soviet ruble currency.
However, the Soviet authorities agreed to use a
supplemental mark currency of same design as
that which would be used by U.S. and British
forces in Germany. The U.S. and British Gov-
ernments offered to furnish the Soviets with
adequate supplies of Allied military mark cur-
rency. Nevertheless, the Soviets were adamant
in their request to be furnished with currency
printing plates from which the Soviets could
prepare their own supplies of Allied military
marks. The reasons given by the Soviet Govern-
ment for this position were that, in the interests
of an uninterrupted supply to the Soviet Army
of the currency in question, it would be desirable
to print Allied militaiy marks in the Soviet Union
as well as in the United States, and that Soviet
June 29, 1947
1305
THE RECORD OF THB WEEK
specialists considered that, if military marks were
not also printed in the Soviet Union, it would be
disadvantageous for our common Allied cause.
This subject was brought before the C!ombined
Civil Affairs Committee, an agency of the Com-
bined Chiefs of Staff, for consideration. The
Department of State is a member of the Combined
Civil Affairs Committee. It was pointed out by
the War Department that the type of mark cur-
rency to be used by the Soviet forces was not a
determining factor to the success of the prospec-
tive U.S.-U.K. military operations and that the
problem was of a political and not military
nature.
The decision relative to the above-mentioned
request of the Soviet authorities for currency
printing plates was made at governmental level.
A combined decision was reached by the U.S. and
British Governments whereby duplicate Allied
military mark currency printing plates were fur-
nished by the Treasury Department to the Soviet
Embassy in Washington.
If the Soviets had not been provided with plates
with which to print Allied military mark currency,
they would have printed a supplemental mark cur-
rency of Soviet design. A statement to this effect
was made in a note, dated April 8, 1944, from the
Soviet Government. Under United States policy
to treat Germany as an economic unit, it would
have been necessary for the United States to recog-
nize, as legal tender in Germany, any supplemental
mark currency issued in Germany by the Soviet
authorities. The experience in other countries in-
dicates that the long position of the U.S. armed
forces in mark currency would have occurred even
if the Soviets had been unable to print their own
Allied military marks with plates supplied by the
U.S. Government.
There is no obligation on the part of any of the
occupying powers to redeem any Allied military
marks. This is a responsibility of the eventual
German government. Quadripartite arrange-
ments for control of Germany by Allied repre-
sentatives, dated September 20, 1945,^ contain the
following stipulation: "The German authorities
will supply free of cost such German currency as
the Allied Representatives may require, and will
withdraw and redeem in German currency within
such time limits and on such terms as the Allied
• BuixETiN of Oct. 7. 1945, p. 515.
1306
Representatives may specify, all holdings in Ger-
man territory of currencies issued by the Allied
Representatives during military operations or oc-
cupation, and will hand over the currencies so with-
drawn free of cost to the Allied Representatives."
Such redemptions as have been effected by any of
the occupying powers have been undertaken in ac-
cordance with each power's policies respecting cur-
rencies in the hands of their troops.
No rate of exchange for the German mark has
been agreed upon by any of the four occupying
powers in Germany. However, the four occupying
powers have agreed to use a military conversion
rate for the mark, for military and accounting pur-
poses, of 10 marks equal $1, or approximately the
equivalent thereof in terms of the currencies of
the three other occupying powers.
Transactions in Foreign Currencies
by Authorized Personnel
Basic to the armed forces' transactions in for-
eign currencies was the proviso that foreign cur-
rencies in the hands of military and other author-
ized personnel received by them as pay, allowances,
and other authorized compensation were to be ac-
cepted for immediate remittance in dollars to the
U.S. After the State, Treasury, War, and Navy
Departments had decided on the currencies to be
used and made provisions for their requisition,
the armed forces established procedures to handle
and control these remittances. In the first areas
of major military activity — North Africa and
Italy — these controls proved satisfactory in suc-
cessfully providing for the needs of the armed
forces and limiting remittances to amounts legiti-
mately received for pay, allowances, and other au-
thorized compensation, which augured well for
similar procedures in other areas. However, these
controls were not so universally successful else-
where. In Germany, Austria, Japan, and Korea
the excess remittance problem has proved greatest.
The State, War, and Treasury Departments have
participated in negotiations with foreign coun-
tries resulting in a settlement of the excess cur-
rency problem in connection with negotiations
covering financial problems arising out of this war
in countries other than Germany, Austria, Japan,
and Korea. These agencies are now joined in a
review of procedures pointed towards the elimina-
tion of the excess currency problem in countries
where such problem still exists.
Department of Sfafe Bulletin
1
John H. Hilldring Resigns as Assistant Secretary of State
for Occupied Areas
EXCHANGE OF LETTERS BETWEEN THE PRESIDENT AND MAJOR GENERAL HILLDRING
(Released to the press by the White House June 20]
June W, 19i7.
Dear General Hilx,dring :
In accordance with your request, I feel that I
have no alternative but to accept your resignation
as Assistant Secretary of State effective Septem-
ber 1, 1947. I know that at the time you assumed
your present duties you agreed to serve for six
months and that you have long outstayed your
original commitment. I am grateful for this, par-
ticularly because I have no doubt that it involved
considerable personal sacrifice to you.
The distinction with which you discharged your
responsibilities has added significance in view of
the complexities and magnitude of the problems
with which you were entrusted. There are few as-
pects of our foreign policy more important than
the accomplishment of our objectives in the occu-
pied areas. These objectives comprise essential
threads in the fabric of the peace. I believe that
the contribution you have made represents an
achievement of decisive importance in the evolu-
tion of our foreign policy.
I reluctantly accept your resignation and I desire
to express to you my gratitude for the job that you
have done.
Very sincerely yours,
Harry S. Truman
June 17, 19^.7.
My Dear Mr. President :
It is with the deepest reluctance that I submit
herewith my resignation as Assistant Secretary of
State. No work I have ever undertaken has pre-
sented a greater challenge to me, and I have the
deepest conviction tliat no public servant has re-
ceived a greater measure of support than has been
iccorded to me by former Secretary of State
Byrnes, Secretary Marshall and yourself.
I look back upon my service as Assistant Secre-
tary of State as one of the richest experiences of
my life and I am grateful to you for having made
this jjossible.
You will recall that prior to my assumption of
this office in April of 1946, I explained to Mr.
Byrnes that my personal plans had not envisaged
further public service after my retirement from
the Army. However, Mr. Byrnes expressed his
belief that because of my experience I should con-
sent to organize tlie occupied areas office in the
Department of State. Accordingly, I agreed to
undertake these duties for six months. Although
this period has long since expired, I am glad I
was able to rearrange my personal affairs so as
to permit me to remain for a time longer than my
commitment to Mr. Byrnes.
I now find it impossible, for personal reasons,
to remain beyond September 1. Therefore, I re-
spectfully request that you accept my resignation
effective on that date.
Faithfully yours,
J. H. H11X.DRING
American Consulate To Open
in Leningrad
[Released to the press June 16]
The Department has been informed by the
Soviet Embassy that the Soviet Government has
now agreed to the opening of an American Consu-
lar Office in Leningrad.
The Soviet Embassy has been requested to in-
form the Soviet Government that the Government
of the United States welcomes this decision and
plans to open a Consulate General in Leningi-ad
as soon as the necessary arrangements can be made.
/une 29, 1947
1307
status of Jewish Displaced Persons
BY RABBI PHILIP S. BERNSTEIN i
At the request of the State and War Depart-
ments I have just flown over from Germany to
testify concerning H.E. 2910. I am Adviser on
Jewish Affairs to General Clay, Commander in
Chief of the European Command. I have served
in that capacity since May 1946, both to General
McNarney in Germany and to Generals Clark and
Keyes in Austria.
During the war I was the director of the Jewish
religious program for the U.S. armed forces. I
worked closely with 311 American rabbis who
served as chaplains in the Army and Navy. At the
invitation of the Secretaries of "War and Navy, I
visited American militaiy personnel on most of the
far-flung battlefields of the world. There was
hardly an island in the Pacific, from Attn to Gua-
dalcanal, where American troops were stationed, to
which this duty did not take me. In the later
stages of the war and after its close, particularly
in Europe, we began to encounter the displaced
persons. These were the survivors of a Nazi policy
which has enslaved those who could be useful and
slaughtered the rest.
The bill before you deals with the question of
the admission over a period of four years of up to
400,000 displaced persons out of the million Baits,
Poles, Jews, Ukrainians, and Yugoslavs that the
western Allied armies now have under their care.
Naturally this Committee wants to know what
these people are like. It has been felt that it would
be useful to you to have some testimony from some
of those who have had a long and varied first-hand
contact with these people in the numerous camp
communities in which they are now living.
Others can testify from wider experience and
with greater authority concerning the displaced
persons as a whole. But my own experience, both
' Statement made before the House of Representatives
Subcommittee on Immigration and Naturalization on June
20, 1947, and released to the press on tlie same date. Rabbi
Bernstein Is Adviser on Jewish Affairs to General Lucius
D. Clay, Military Governor of the European Theater.
1308
in the war and after, has given me a special famil-
iarity with the Jewish displaced persons, who con-
stitute about 20 percent of the whole number. I
visited nearly all of the considerable number of
camps in Germany and Austria m which they are
to be found. I have heard the moving stories of
their past and how they would like to rebuild their
lives. I have seen how they live and what they
are doing in the small communities in which they
are now gathered. I have also been called upon
to regard them in terms of the practical responsi-
bilities of the U.S. zone commanders. Perhaps
that is why the Secretaries of State and War have
requested me to share with you my knowledge and
experience of this particular group of displaced
persons.
At the close of the European war we found about
30,000 Jews still alive m the concentration camps.
Soon their numbers were augmented by many
thousands, including orphaned children who had
hidden in forests, caves, and cellars. Further
numbers came from partisan bands who had
fought valiantly against the Nazis. The majority
of these displaced persons were Polish Jews.
When after the German defeat they returned to
their homes they learned that their families had
been exterminated, their property had been de-
molished or confiscated, and their hopes for a new
free life were blasted by violent pogroms. They
then fled to haven in the U.S. zones of Germany
and Austria. A smaller number came from Hun-
gary and Kumania, where they encountered a sim-
ilar legacy of Nazi anti-Semitism.
The total number of these various uprooted,
homeless Jews, now to be found in the zones of the
western Allies in Germany and Austria, as well as
in Italy, is approximately 225,000. The majority
of these are in the U.S. zone, Germany, where the
Jewish DP population in and out of camp on June
2, 1947, amounted to 156,646. In the U.S. zone,
Austria, the number is 27,456. The British zones
Department of State Bulletin
in Germany and Austria contain about 16,000, the
French zones about 2,000. There are reported to
be about 25,000 Jewish displaced persons in Italy.
Altogether, these Jews constitute about one fifth
of the total DP population.
These homeless Jews cannot return whence they
fled. In most instances they have nothing to re-
turn to, for their families, their homes, their asso-
ciations, and their hopes were utterly annihilated.
They do not wish to return to countries whose pop-
ulations willingly assisted the Nazis in the de-
struction of the Jews and where violent anti-
Semitism persists. Regardless of the announced
policies of govermnents, they believe that the peo-
ples have not changed and that their return in any
numbers would incite further pogroms. Despite
the hardships of camp life, they are almost to a
man unwilling to return.
There is no question that the great majority of
Jewish displaced persons strongly desire to settle
in Palestine. I would say that at the most about
25 percent of the Jewish DP's or approximately
30,000 would, if given the opportunity, choose to
3ome here. Primarily, these would wish to come
3ecause they have relatives here. Jewish family
life has been hopelessly shattered in Europe. The
families of most of these people have largely been
lestroyed. Large numbei-s are orphaned children
jr lone survivors. These people have a perfectly
latural and overwhelming desire to attach them-
selves to the remaining members of their families
n America. Also, they wish to come because they
see, as most Jews have seen, in the American way
)f life the best hope for freedom and justice.
My observations led me to the conclusion that
hey would make good American citizens. Al-
hough they reveal the usual variations of intelli-
gence, character, and ability, and although the im-
nigration screening process would undoubtedly
ind some to be ineligible, fundamentally they are
food human stock. Otherwise they could not have
urvived nor rehabilitated themselves so quickly.
It is well to recall the situation which confronted
hem when they were liberated in the spring of
945. Six millions of their brethren had been
:illed. Their own families had been almost com-
)letely exterminated. The cries from the gas
hambers still echoed in their ears. They had no
lomes, no jobs, no property, no business. There
lad been no education of the young, no religious
une 29, 1947
THE RECORD OF THE WEE»f
exercises, no family life. Each individual had
personally suffered agonizing persecution. All
found themselves in an atmosphere poisoned by
a decade of Nazi propaganda.
This situation would have been enough to crush
almost any gi-oup of human beings. But not these.
With the help primarily of the American Army
they made a quick physical comeback. Flesh was
restored to living skeletons. Vitality surged
through their blood again.
Their first interest was to seek surviving mem-
bers of their families. Their agonizing search
followed the trails of the Nazi hordes. In most
instances the search led only to ashes. But oc-
casionally a wife, a parent, or a child would be
found. The stories were fantastic but true. This
child was thrown in a suitcase out of the window
of a moving train by parents who knew they were
on the way to the gas chambers but subsequently
escaped. Another was chloroformed by his father
and carried in a sack of potatoes to a Christian
peasant who maintained the boy until the war
was over.
After the fragments of families were reunited
they began to establish new ones. Many marriages
took place and children were born. The tradi-
tional values of Jewish family life were reasserted ;
illegitimacy is practically unknown. In lands
where venereal disease has reached the most alarm-
ing proportions among the military and the ci-
vilian populations, it is negligible among the Jews.
They were settled in camps as the best way of
taking care of them amidst the hostile, impov-
erished German population. For the most part,
these camps were bare, drab, and ugly. Also, they
had already seen too much of camps. Nevertheless
they faced the realities and made the best of them.
They organized the camps on democratic lines
and gradually assumed complete responsibility
for their administration as well as for their menial
tasks. Most Jewish camps are conducted by the
DP's themselves. They perform all the necessary
services of a community.
They quickly reestablished the institutions of
Jewish religious and cultural life. They con-
secrated houses of worship in crude shacks or bar-
ren rooms. They beautified them with the symbols
of the synagogue. In some camps where materials
were available they built religious edifices and
thronged to worship in them. When enough
1309
THE RECORD Of THE W£EK
children were assembled they set up classes. They
conducted adult-education courses in cultural and
technical subjects as well as in the English lan-
guage. They even founded higher academies of
religious learning and people's universities. They
organized musical and dramatic groups. They
published as many newspapers and magazines as
could be provided with paper. The average camp,
despite its grimness and frustrations, is alive with
the manifestations of the unconquerable human
spirit.
At first they could not and would not work.
They were too weak. They refused to perform
any labor that might help the Germans who had
despoiled them. But as strength was restored
their attitude changed. Today, although most
of them still will not work for the Germans, they
do all sorts of work for the xVrmy, voluntary agen-
cies, and themselves. In the past year I have not
encountered a single instance where there was
more work than workers. But there are, very
unfortunately, limitations upon their opportuni-
ties for employment. These limitations are
usually imposed by lack of materials and by lack
of machines. Sometimes they overcome this with
remarkable ingenuity. There are workshops in
some camps that specialize in the manufacture of
utensils, toys, and religious objects out of tin cans.
They do beautiful work which has been exhibited
in the European Command Headquarters. Every
camp has a tailor shop which remakes the cast-off
clothing sent from America. Damaged army
blanliets purchased by the American Jewish Joint
Distribution Committee have been refashioned
into attractive practical winter garments for
children.
A number of camps raise food for themselves
and other DP"s. Specifically, 3,600 Jews are set-
tled in agricultural training camps where they
must meet minimal production requirements set
by the Army. The farm of the notorious anti-
Semitic Julius Streicher is now a thriving DP
settlement on which over a hundred young Jews
receive training as they await resettlement.
A great variety of labor skills is represented
among these DP's. Artisans predominate, namely
carpenters, painters, textile workers, shoemakers,
tailors. There is a fair-sized group of technicians
specializing in auto mechanics, electricity, den-
tistry, et cetera. Nurses and doctors, because they
1310
were found necessary by the Nazis, survived in
goodly numbers. Actually, the largest single
group, about 15 percent, consists of tailors, male
and female. This happens to be an industry in
which the United States is actually short of skilled
help at the present time. I have been informed
since my return that my own city of Rochester,
for example, could use at least 3,000 of these tailors
at this very moment.
At least one third of the maximum of 60,000
Jewish displaced persons who would come here, if
the opportunity were afforded, would be children.
Most of them would go to their relatives who
would provide at least temporary shelter in their
own homes where there might be a housing short-
age. Responsible Jewish organizations are ready
to guarantee that they would not become a burden
on the community.
Of course, there are exceptions to the general
picture that I have given you of these people and
the communities in which they are living. The
corroding effects of lack of opportunity for work,
overcrowding in the shelter afforded, the haunt-
ing vision of their immediate past, and uncei--
tainty and despair as to their future have at vari-
ous times and in various places produced unhappy
situations. But to focus attention on these and
treat them as typical would be entirely mislead-
ing. These displaced persons are human beings
like other human beings. They have already been
through the tough screening process of the great-
est adversity. By and large, they have shown the
moral and physical stamina necessary to survive
and rebuild their lives if given an opportunity.
It has been a remarkable achievement in self-
rehabilitation. Gen. Lucius D. Clay, who
watched and assisted this process over the past
two years, has appraised it as follows :
"The behavior of the Jewish displaced persons
has not been a major problem at any time since
the surrender of Germany. The Jewish displaced
persons were quickly gathered into communities
where their religious and selected community lead-
ers insisted on an orderly pattern of community
life. Of course, we have had many minor problems
resulting from the assembly of large numbers of
Jewish displaced persons in the midst of the people I
who had caused their suffering. Moreover, the un-
settled economic conditions in Germany have made
barter trading and black-market operations a com-
Department of State Bulletin
non problem. Even in this field, the Jewish dis-
slaced persons have not been conspicuous in their
ictivities as compared to other displaced-persons
groups or, in fact, as compared to the German
Dopulation itself.
"The Jewish displaced persons have on the
ivhole established an excellent record insofar as
•rimes of violence are concerned, and in spite of
heir very natural hatred of the German people
lave been remarkably restrained in avoiding inci-
lents of a serious nature with the German popu-
ation.
"In view of the conditions under which they
lave had to live in Germany, with their future un-
«ttled and their past suffering clear at hand, their
•ecord for preserving law and order is to my mind
ine of the remarkable achievements which I have
vitnessed during my more than two years in
Tcrmany."
I have been describing to you the particular
jroup of displaced persons among whom I have
)een working for the Army. They suffered the
irst and the worst at the hands of our common
'nem3^ Like other groups of displaced persons,
hey find themselves today under circumstances be-
I'ond their control, in the midst of the people who
ire responsible for their misfortunes. They are
•auglit in a trap from which they cannot extricate
hemselves \>y their own efforts. They are un-
villing to go back and they cannot remain where
hey are. They must go elsewhere if they and their
•hildren are to have a chance to build lives for
hemselves. The problem of this group with which
; am best acquainted is but a segment of the
)roader problem of what to do with the displaced
persons as a whole. Let me say a word as to that
)roader problem.
Tlie American people are now called upon
lu-ough thoir elected representatives to make a de-
:ision, momentous to the fate of all displaced per-
ons. Our own armies alone have 600,000 of them
nider our care. Some decision must be made.
Sven a postponement of decision is a decision — a
legative decision. It would doom these people to
mother winter of blighting uncertainty and in-
ibility to help themselves. It might be the death-
)low to the morals and hope of thousands. The
lecision narrows down, then, either to merely pro-
onging the existence of the displaced persons in
he camps, primarily at the expense of the United
lune 29, 1947
THE RECORD OF THE WEEK
States, or to an early reasonable program of re-
settlement in which this country would take a part
to enable these displaced persons to resume life in
a normal atmosphere and to achieve self-respect
through work and freedom.
I trust you will bear with an expression of my
personal opinion as an American citizen as to this
decision. I believe that American tradition,
American common sense, and decent humanitarian-
ism here unite to say, "Take these people in."
It was prophesied of old that the time would
come when nations will be told :
"Come, ye blessed of my Father, inherit the
kingdom prepared for you from the foundation
of the world :
"Then shall the righteous answer him, saying,
Lord, when saw we thee an hungered, and fed
thee? or thirsty, and gave thee drink?
"Wlien saw we thee a stranger, and took thee in ?
or naked, and clothed thee ?
"Or when saw we thee sick, or in prison, and
came unto thee ?
"And the King shall answer and say unto them.
Verily I say unto you. Inasmuch as ye have done
it unto one of the least of these my brethren, ye
have done it unto me."
This is the time to practice what we believe.
U.S.-Swedish Import Discussions
Concluded
[Released to the press June 18]
The Department of State announced on June 18
the favorable conclusion of discussions between
representatives of the Govermnents of the United
States and Sweden, relating to the Swedish import
restrictions of March 15, 1947. The understanding
which has been reached has been referred to the
Government of Sweden for final approval, and it
is exjDected that the full text of the understanding
will be made public in the near future.
During the course of the discussions with the
Swedish representatives, Envoye Dag Hammar-
skjold and Sven Brusewitz, a wide range of com-
mercial and financial problems of mutual interest
to the Governments of the United States and
Sweden have been considered and the under-
standing reached should prove to be of assistance
in the furtherance of international trade.
1311
Administration of Guam, Samoa, and the Pacific Islands
LETTER FROM THE PRESIDENT TO THE SPEAKER OF THE HOUSE >
The White House,
Washington, D.C., June 19, WJ^l.
Hon. Joseph "W. Martin, Jr.,
Speaker of the House of Representatives.
Mt Dear Mr. Speaker :
There is enclosed a copy of a report from the
Secretary of State indicating a course of action
which the Secretaries of State, War, Navy, and In-
terior have agreed should be followed with respect
to the administration of Guam, Samoa, and the Pa-
cific islands to be placed under United States trus-
teeship.
On October 20, 1945, I appointed a committee
consisting of the Secretaries of these four Depart-
ments to make recommendations concerning this
matter. After preliminary consideration it seemed
inadvisable to formulate a final recommendation
until a determination had been made of the status
of certain islands formerly under Japanese con-
trol. In the meantime the Departments repre-
sented on the committee continued to give study to
the problems involved.
After the United Nations Security Council ap-
proved a trusteeship agreement designating the
United States as the administering authority for
the former Japanese mandated islands, I requested
that the members of the committee again give joint
consideration to problems relating to the adminis-
tration of the Pacific islands. The enclosed report
has been submitted pursuant to that request.
I am sure that the agreement reached by the four
Secretaries will be of interest to the Congress in
connection with its consideration of legislation to
provide civilian government for these islands and
that the information obtained by the Departments
in studying this question will also be helpful in
the consideration of such legislation.
It has long been my view that the inhabitants of
Guam and Samoa should enjoy those fundamental
human rights and that democratic form of gov-
ernment which are the rich heritage of the people
of the United States. We have already extended
those rights and that form of government to other
possessions of the United States, such as Puerto
Rico and the Virgin Islands, and with respect tc
the inhabitants of the trust territory have given
solemn assurance to the United Nations of our in-
tention to gi-ant these inhabitants a full measure ol
individual rights and liberties.
I hope that the Congress will approve legisla-
tion for the purposes indicated in the enclosed re-
port and that such legislation will provide for the
full enjoyment of civil rights and for the greatest
practicable measure of self-govermnent.
Very smcerely yours,
Haert S. Truman
REPORT OF THE SECRETARY OF STATE
Department of State,
Washington, June 18, 19^7.
The President
The White House.
Dear Mr. President :
Pursuant to your request, the Secretaries of
State, War, Navy, and Interior have held several
meetings and have agreed upon the following
course of action :
' H. Doc. 333, 80th Cong., 1st sess. An identical letter
was sent to Arthur H. Vandenberg, president pro tempore
of the Senate.
1312
1. Separate organic legislation for Guam tc
provide civil government and to grant citizenship
a bill of rights, and legislative powers to Guama
nians should be enacted this session. In receni
hearings on such organic legislation, the Depart
ments have recommended the transfer of adminis
tration from the Navy Department to a civiliai
agency designated by the President at the earlies
practicable date, the exact date to be determinec
by the President.
2. Organic legislation for American Samoa, pro
viding civil government and granting citizenship
Department of State Buileth
1 bill of rights, and legislative powers, should be
prepared by the Navy and Interior Departments
md presented to the next session of Congress.
3. Suggestions for organic legislation for those
Pacific islands placed under United States trustee-
ship are in preparation by the Department of State
for presentation to Congress, provided favorable
congressional action is taken on the trusteeship
igreement to be shortly presented for approval.
4. The Navy Department should continue to
lave administrative responsibility for Guam and
American Samoa on an interim basis pending the
;ransf er to a civilian agency of the Government at
THE RECORD OF THE WEEK
the earliest practicable date, such date to be deter-
mined by the President. With respect to the trust
territory, a similar transfer should be effected by
the President at the earliest practicable date.
5. Provided Congress acts favorably on the
trusteeship agreement, an Executive order should
be issued when the agreement enters into force, ter-
minating military government in the trust terri-
tory and delegating civil administration to the
Navy Department on an interim basis, subject to
the conditions set forth in paragraph 4.
Faithfully yours,
G. C. Marshall
\ssistance to China Through Private Contribution
TELEGRAM FROM THE SECRETARY OF STATE TO UNITED SERVICE TO CHINA
[Released to the press June 19]
June 19, 194.7.
Jnited Service to China,
1790 Broadway,
New York 19, New York.
I had hoped until now to be able to find a favor-
ible occasion for a public appearance in support of
he effort of the United Service to China in raising
'unds. But this has proven impossible of arrange-
uent. Therefore this telegram.
The tradition of friendship between Chinese and
Americans is centuries old. It is based upon the
irmest of foundations. Americans like Chinese;
md Chinese like Americans. Over the past cen-
ury this friendliness has expressed itself in many
vays but primarily in cultural relations.
We have learned something of the great wisdom
md culture of China through the large number of
)rofessors and students of that country who have
!ome to America. We have sent to China in-
mmerable emissaries of American culture as mis-
sionaries, educators, doctors, and businessmen;
n fact, we have expended large sums of money in
Dhina in contributions to missions and to various
"oundations. This has been a very wise expendi-
ure for our good as well as for the good of China.
Today the Chinese people are suffering tragi-
cally from the disorganization resulting from
sight years of warfare against the Japanese and
he turbulence of the civil war which has followed,
rhey are in desperate need of assistance and I for
one hope very much that through the United Serv-
ice to China organization material assistance can
be rendered.
In 1941 a group of far-sighted Americans or-
ganized United China Relief. Its purpose was
to make effective the assistance which the Ameri-
can peoj^le desired to extend to the Chinese dur-
ing the period of great hardship and difficulty aris-
ing out of the war. For six years private contribu-
tions to United China Relief enabled that organ-
ization to establish many worthwhile projects.
The refugees were fed, clothed and sheltered;
medical attention was given to the civilian popu-
lation ; children received expert care ; aid was given
to students and teachers ; plans for carrying out the
program were prepared by expert workers in the
field and carefully reviewed in the United States
by leaders of business, education, medicine and
social welfare specialists. Contributions to the
program were carefully budgeted and expended
under scrupulous supervision with regular audits.
These procedures, applied to the United Service to
China program, assure the maximum effectiveness
of what it can do to assist the Chinese people.
I am personally and deeply concerned over the
present situation in China and I sincerely hope
that through voluntary private contributions ur-
gently needed assistance can be rendered the suf-
fering people of that country. They need our
help, the help that in the past has always come
from Americans wholeheartedly and generously.
G. C. Marshall
une 29, 7947
1313
THE RECORD OF THE WEEK
Burma Rehabilitation Efforts Praised
MESSAGE FROM THE SECRETARY OF STATE TO
THE CHAIRMAN OF THE BURMA CONSTITUENT
ASSEMBLY >
On this historic occasion, I extend to yon as
Chairman of tlie Constituent Assembly and
through you to tlie Burmese people the sincere
good wishes of the United States Government and
tlie people of the United States of America for
a successful conclusion of the important task you
are about to undertake. Burma's peaceful and
steady progress in rehabilitation is being -watched
with sympathetic interest. Freedom-loving people
throughout the world hope that you will lay the
foundation for a stable and peaceful nation.
Position on Representative Adminis-
tration for Indonesia
STATEMENT BY THE SECRETARY OF STATE
[Released to the press June 12]
The United States Government has been glad
to note the fact that the Indonesian Republic has
replied promptly to the pi-oposals of the Nether-
lands Government of May 27 for an interim fed-
eral administration representative of all parts of
Indonesia. Although the full texts of both the
Dutch and Indonesian proposals are not yet in
hand, we hope that these developments imply that
a peaceful solution will be achieved promptly in a
spirit of good faith and compromise.
Honduran Agriculturist Visits U.S.
Pompilio Ortega, Director General of Agricul-
ture of Honduras, has arrived in the United States
as the recipient of a travel grant of the Department
of State under the program administered by the
Division of International Exchange of Persons.
Mr. Ortega will confer with officials of the United
States Department of Agriculture and will visit
educational centers and agricultural institutions
throughout the country.
Mr. Ortega has been engaged for over 20 years
' Read before the Assembly in Rangoon on .Tune 10, 1947,
and released to the press on the same date. Thakin Mya
is Chairman of the Constituent Assembly.
1314
in the task of assisting his country in solving its
agricultural problems and has expressed the desire
for the cooperation of the United States in work-
ing out solutions. After visiting Washington,
D.C., and the eastern part of the United States,
MJr. Ortega will travel to the Pacific Coast. He
will remain in the United States for approximately
three months.
Fellowships for Inter- American insti-
tute of Agricultural Sciences
[Released to the press June 18]
The Department of State has been informed of
six fellowships for graduate students to perform
research studies at the Inter- American Institutes
of Agricultural Sciences at Turrialba, Costa Eica.
Four of the awards will be granted to United
States students and two to graduate scholars from<
the other American republics.
Applications are being received through the
secretary of the Inter- American Institute of Agi-i-
cultural Sciences, Pan American Union, Washing-
ton 6, D.C. Arrangements for the fellowships are
being made with the cooperation of the Division
of International Exchange of Persons of the State
Department's Office of International Information
and Cultural Affairs and the Foreign Agricultural
Relations Division of the Department of Agricul-
ture. The Division of International Exchange of
Persons facilitates the studies of foreign students
in the United States and also aids U.S. students
who wish to study in foreign countries.
The Inter-American Institute of Agricultura:
Sciences is an organization comprising, to date, 1
of the American republics for the purpose of en-
couraging and advancing the development of the
agricultural sciences in the American republics
through research, teaching, and extension activi-
ties. It is particularly interested in laying the
foundation for a scientific approach to the devel-
opment of important agricultural products. In a
broader sense, it serves to promote friendship and
better understanding by fostering constructive co-
operation in the agricultural field among the re-
publics of the American Continent.
Funds for the current awards were made avail
able from private sources in the United States
They provide for special studies in weed, insect
and fungus control, and in cocoa research.
Department of State Bulleth
leiteration of Position on Program for International
nformation and Educational Exchange
LETTER FROM THE SECRETARY OF STATE TO REPRESENTATIVE MUNDT
[Released to the press June 21]
^ext of the following letter from the Secretary of
'tote to Representative Karl E. Mundt was read
n the floor of the Hovse on Jvme W
June 19, 19Jf7
)ear Mr. Mundt :
I learn from tlie Department's Legislative Comi-
A tliat the House is about to take final action on
I. E. 3342, authorizing an international informa-
on program and educational exchanges.
Since I appeared before the Foreign Affairs
Committee in support of this bill on May 17, Mem-
ers of Congress have attributed to me a great
ariety of opinions concerning the bill. I want
) make my position plain.
I consider American security to rest not only on
ar economic and political and military strength,
lit also on the strength of American ideas — on
ow well they are presented abroad — and on how
early we are understood abroad.
There is no question that some other nations are
sing ideas as weapons, and distorting facts to fit
leir ideas. We do not propose to follow suit. But
am convinced that we must present ourselves
early, candidly and affirmatively if we are to
:hieve the kind of peace we believe in. I know
■om personal experience that we are grossly mis-
iiderstood or misrepresented in many parts of the
orld.
I gave your committee my view that the facts
30ut the United States must be spread in various
ays. In some countries we must rely largely on
idio. In others we use also the press, or motion
ictures, or exchanges of students and books, or
le assignment of government advisers. All are
nportant and must be used if we are to be suc-
'ssful. To remove any one of these activities from
le bill would be a form of demobilization. Peace
mnot be served by any rationing of American
icts, or by limiting the methods for making them
lown.
me 29, J 947
I have mformed Committees of both Houses of
Congress that authority for this type of program
is necessary if the State Department is to fulfill its
responsibilities to the President and the Nation.
Without legislative authorization, it has become
almost impossible to recruit additional highly
trained personnel to work on this program, either
at home or abroad.
I am asking for the tools which are necessary to
meet present circumstances in world affairs.
Faithfully yours,
G. C. Marshall
Foreign Aid and Domestic Economy
Continued from page 1S97
Gi-anyille Conway, President, The CosmoDolitan Shipping
Co., Inc., 42nd and Broadway, New York N Y
Melville F. Coolbaugh, 1700 Maple Street, Go'lden,'colo
Chester C. Davis, President, Federal Reserve Bank, St.
Louis, Mo.
K. R. Deupree, President, Procter & Gamble Co., Cin-
cinnati, Ohio
Paul G. Hoffman, President, The Studebaker Corp., South
Bend, Ind.
Calvin B. Hoover, Dean, Graduate School, Duke Univer-
sity, Durham, N.C.
Robert Koenig, President, Ayrshire Collieries Co., Big
Four Building, Indianapolis, Ind.
Robert M. LaFollette, .Ir., Barr Building, Washington
D.C.
Edward S. Mason, Dean, School of Public Administration,
Harvard University, Cambridge, Mass.
George Meany, Secretary-Treasurer, American Federa-
tion of Labor, W^ashington, D.C.
Harold G. Moulton, President, The Brookings Institution,
Jackson Place, Washington, D.C.
William I. Myers, Dean, College of Agriculture, Cornell
University, Ithaca, N.Y.
Robert Gordon Sproul, President, University of California,
Berkeley, Calif.
Owen D. Young, Honorary Chairman of the Board of
Directors, General Electric Company, Van Hornes-
ville, N.Y.
1315
THE RECORD OF THE WEEK
Letter of Credence
Irelarid
The newly appointed Minister of Ireland, Sean
Nunan, on June 20, 1947, presented his credentials
to the President. For texts of the Ambassador's
remarks and the President's reply, see Department
of State press release 507 of June 20, 1947.
Protection Abroad of Inventions
Under Government-Financed
Research
The President, by Executive Order of June 14,
1947,^ made provision for the protection abroad of
inventions resulting fi'om research financed by
the Government by granting permission to all
Government departments and agencies to file
foreign patent applications for such inventions.
The order provides that the Department of Com-
merce shall be fully informed of all such inven-
tions, shall be issued recommendations for patent
protection of same, and shall be the determinant
of whether, and in what foreign jurisdictions, the
United States should seek patents for such inven-
tions; and, after full consultation with United
States industry and commerce, with the Depart-
ment of State, and with other Government agen-
cies concerned, shall take action to procure such
patent protection, and shall issue licenses therefor.
Nationals of the United States shall be granted
licenses on a non-exclusive, royalty-free basis ex-
cept in such cases as the Secretary of Commerce
shall determine to be inconsistent with the public
interest. The Department of State shall negotiate
arrangements among governments under which
each government and its nationals shall have
access to the foreign patents of other participating
governments. Patents relating to matters of pub-
lic health may be licensed, under terms of the law,
to governments or nationals thereof not party to
arrangements provided for in the order.
There will be exempted from the provisions of
the order all inventions within the jurisdiction of
the Atomic Energy Commission, except in such
cases as the said Commission specifically authorizes
inclusion, and all other inventions officially classi-
fied as secret or confidential for reasons of national
security.
'Ex. Or. 9865 (12 Federal Register 3907).
1316
THE DEPARTMENT
Policy Committee on Immigration
and Naturalization
I Establishment and Terms of Refebence. Effec-
tive April 18, 1947, there has been established the Policy
Committee on Immigration and Naturalization (PIN)
to prepare recommendations on United States policy con-
cerning nationality and admission of aliens.
II Membeeship. The membership of PIN shall con-
sist of a representative of each of the following offices:
Office of the Legal Adviser, Chairman
Office of Controls
Office of Assistant Secretary for Economic Affairs
Office of American Republic Affairs
Office of Far Eastern Affairs
Office of Near Eastern and African Affairs
Office of European Affairs
Committee Secretariat Branch of the Executive Secre-
tariat, Secretary
A Each member of the Committee shall be au-
thorized tio present the views of his office on matters
coming before the Committee.
III PEOCEDtTRES.
A The Chairman may invite to meetings of PIN^
as the situation requires, representatives of Offices and
divisions of the Department who do not hold permanent
membership on the Committee.
B While it is expected that PIN will reach decisions
on the principle of unanimity, determination of issues
in the event of disagreement shall be by the Chairman in
consultation with the appropriate Assistant Secretaries
or Office Directors.
Policy Committee on International
Copyright
I Terms of Refebence. To be responsible for the co-
ordination of Department of State policy with respect to
all aspects of international copyright matters. This
responsibility shall include the basic work of formulating
policy recommendations with respect to international
copyright principles and with respect to the types and
the scope of treaties and conventions to which the United
States should become a Party, as well as the consideration
of individual treaties and conventions proposed. It shall
further include review, in terms of consistency with the
broad copyright principles and policies of the Department,
of policy recommendations by any committees established
in the Department to regulate clearance of copyrights
on materials for official use.
Department of State Bulletin
Membebship.
A The membership of PCC shall consist of the Legal
iJviser, who shall be its Chairman, and a representative
' each of the following Offices: Legal Adviser (Le),
pecial Political Affairs (SPA), International Trade
alicy (ITP), International Information and Cultural
Gfairs (QIC), and the UNESCO Relations Staff. The
[fices which do not have membership in the Committee
lall be entitled to participate in the deliberations when-
er matters touching their geographic areas or special
mpetence are being considered.
B The members shall be authorized to speak for
eir respective offices.
C The Chairman shall appoint a DeiJuty Chairman.
D The Secretary for the Committee shall be pro-
ded by the Committee Secretariat Branch of the Execu-
re Secretariat (S/S-S).
I Pkocedubes.
A The Chairman of PCC or his Deputy shall pre-
ribe the rules of procedure of the Committee and the
ne and place of Its meetings.
B All policy recommendations on copyright matters
nae by any division or committee of the Department shall
referred to PCC for consideration and decision. Simi-
rly, Department of State members of Interdepartmental
)mmittees shall bring any copyright matters coming
fore such committees to the attention of PCC and shall
port to the Interdepartmental Committee the policy of
e Department with respect to the matter under dls-
ssion.
C Whenever it appears desirable, the Committee
all invite representatives of the Department of Justice,
e Bureau of Foreign and Domestic Commerce, the
brary of Congress, or the Register of Copyrights for
nsultation and discussion of matters of interest or
ncern to them.
THE CONGRESS
National Security Act of 1W7. S. Rept. 239, 80th Cong.,
t sess., To accompany S. 758. 16 pp. [Favorable
port.]
Drafts of Proposed Provisions Pertaining to Appropria-
ms of the Department of State: Communication from
e President of the United States transmitting drafts
proposed provisions pertaining to appropriations of the
apartment of State, in the form of amendments to the
dget, 1948. S. Doc. 58, 80th Cong., 1st sess. 2 pp.
Supplemental Estimate— Department of State: Com-
inication from the President of the United States trans-
tting supplemental estimate of appropriation for the
apartment of State, amounting to $161,645, fiscal year
48, in the form of an amendment to the budget. S. Doc.
, 80th Cong., 1st sess. 2 pp.
International Refugee Organization. H. Rept. 464, SOth
ng., 1st sess.. To accompany H. J. Res. 207. 6 pp.
avorable report.]
ne 29, J 947
THE RECORD Of THE WEEK
Providing for Acceptance by the United States of
America of the Constitution of the International Labor
Organization Instrument of Amendment, and Further
Authorizing an Appropriation for Payment of the United
States Sliare of the E.xpenses of Membership and for
Expenses of Participation by the United States. S. Rept.
208, 80th Cong., 1st sess., To accompany S. J. Res. 117.
8 pp.
Extending the Period of Validity of tlie Act To Facilitate
the Admission Into the United States of the Alien Fiancees
or Pianc(5s of Members of the Armed Forces of the United
States. H. Rept. 479, 80th Cong., 1st sess.. To accompany
H.R. 3398. 3 pp.
Amending the Act To Expedite the Admission to the
United States of Alien Spouses and Alien Minor Children
of Citizen Members of the United States Armed Forces.
H. Rept. 478, SOth Cong., 1st sess., To accompany H.R.
3149. 2 pp.
Treaties of Peace With Italy, Rumania, Bulgaria, and
Hungary. S. Exec. Rept. 4, 80th Cong., 1st sess.. To accom-
pany Executives F, G, H, and I. 24 pp.
Supplemental Estimate of Appropriation for Relief to
War-Devastated Countries: Communication from the
President of the United States transmitting supplemental
estimate of appropriation for the fiscal year 1947 in the
amount of $350,000,000 for relief assistance to war-
devastated countries. H. Doc. 284, SOth Cong., 1st sess.
2 pp.
Relief of Certain Officers and Employees of the Foreign
Service of the United States. S. Rept. 224, SOth Cong.,
1st sess., To accompany S. 1032. 15 pp. [Favorable re-
port]
Report on Audit of the Export-Import Bank of Wash-
ington, Fiscal Year Ended .Tune 30, 1945 : Letter from the
Comptroller General of the United States transmitting
report on audit of Export-Import Bank of Washington
for the fiscal year ended June 30, 1945. H. Doc. 248, SOth
Cong., 1st sess. 25 pp.
Continuing Export Control Until June 30, 1948. H.
Rept. 507, SOth Cong., 1st sess.. To accompany H.R. 3049.
8 pp. [Favorable report]
Extending the Benefits of the Missing Persons Act to
Certain Filipinos. H. Rept. 509, SOth Cong., 1st sess.. To
accompany H.R. 3191. 5 pp. [Favorable report.]
Providing for Settling Certain Indebtedness Connected
With Pershing Hall, a Memorial in Paris, France. S.
Rept. 223, SOth Cong., 1st sess.. To accompany S. 358. 3
pp. [Favorable report]
Amending the Act To Provide for the Evacuation and
Return of the Remains of Certain Persons Who Died and
Are Buried Outside the Continental Limits of the United
States. H. Rept. 513, SOth Cong., 1st sess.. To accompany
H.R. 3394. 6 pp. [Favorable report]
Erratum
In the article on agreements between the United Nations,
FAO, and UNESCO in the Bulletin of February 9, 1947,
page 250, first paragraph, sixth line, change February 3,
19^7, to read February /,, 19J,7. The line referring to the
release to the press should be deleted.
1317
fUBUCATIONS
PUBLICATIONS
Department of State
During the quarter beginning April 1, 1947, the
following publications have been released by the
Department : ^
2689. Air Transport Services: Agreement Between the
United States and Turkey— Signed at Ankara Feb-
ruary 12, l&i6; effective May 25, 1946 pursuant to
exchange of notes of that date. Treaties and Other
International Acts Series 1538. 13 pp. 5«*.
2693. Protection of Foreign Interests: A Study in Diplo-
matic and Consular Practice. By William McHenry
Franklin. 328 pp. $1.50 (buckram).
2729. Health and Sanitation: Agreement Between the
United States of America and Honduras— Effected by
exchange of notes signed at Tegucigalpa April 18 and
19, 1944; effective May 1, 1944; and exchange of notes
of May 5 and 8, 1942. Treaties and Other Interna-
tional Acts Series 1557. 23 pp. 10«*.
2730. Central Commission of the Rhine: Arrangement
Providing for Participation by the United States of
America— Effected by exchange of notes signed at
London October 4 and 29, and November 5, 1945.
Treaties and Other International Acts Series 1571.
4 pp. 5<f.
2731. Air Transport Services: Agreement Between the
United States of America and New Zealand— Signed
at Washington December 3, 1946 ; effective December
3, 1946. Treaties and Other International Acts Series
1573. 12 pp. lO?".
2732. Air Transiwrt Services: Agreement Between the
United States of America and Australia— Signed at
Washington December 3, 1946 ; effective December 3,
1946. Treaties and Other International Acts Series
1574. 13 pp. 5(f.
2734. Exchange of Official Publications: Agreement Be-
tween the United States of America and France-
Effected by exchange of notes ; signed at Paris August
14. 1945; effective January 1, 1946. Treaties and
Other International Acts Series 1579. 5 pp. 5<f.
2739. Iceland, Termination of Defense Agreement of July
1, 1941 and Provision for Interim Use of Keflavik
Airport: Agreement Between tlie United States of
America and Iceland— Effected by exchange of notes ;
signed at Reykjavik October 7, 1946; effective October
7, 1946. Treaties and Other International Acts Series
1566. 5 pp. 5t}.
2740. Germany, Economic Fusion of American and British
Zones of Occupation : Memorandum of Agreement Be-
tween the United States of America and the United
Kingdom— Signed December 2, 1946. Treaties and
Other International Acts Series 1575. 5 pp. 50.
' Serial numbers which do not appear in this list have
appeared previously or will appear in subsequent lists.
2741. Claims, Traffic Accidents Involving Vehicles of
United States and Canadian Armed Forces: Agree-
ment Between the United States of America and
Canada — Effected by exchange of notes; signed at
Ottawa March 1 and 23, 1944. Treaties and Other
International Acts Series 1581. 3 pp. 5^.
2742. Marine Transportation, Waiver of Certain Claims
Involving Government Vessels: Agreement Between
the United States of America and Canada— Effected
by exchange of notes ; signed at Washington Septem-
ber 28, November 13 and 15, 1946; effective November
15, 1946. Treaties and Other International Acts Se-
ries 1582. 4 pp. 50.
2746. Register of the Department of State, December 1,
1946. 513 pp. 750.
2748. Air Transport Services : Interim Agreement Between
the United States of America and Switzerland— Ef-
fected by exchange of notes ; signed at Bern August 3,
1945 ; effective August 3, 1945. Treaties and Otlier
International Acts Series 1576. 10 pp. 50.
2749. The Administrative Subdivisions of Japan. (Gazet-
teer. ) Far Eastern Series 19. xv, 652 pp. Not avail-
al)le for public purchase.
2760. Vocational Industrial Education: Agreement Be-
tween the United States of America and Brazil—
Ertected by exchange of notes; signed at Rio de
.laueiro March 26 and April 5, 1946; effective from
January 1, 1946. Treaties and Other International
Acts Series 1534. 19 pp. 100.
2762. Commercial Policy : Agreement Between the United
States of America and the Netherlands— Effected bj
exchange of notes; signed at Washington Novembei
21, 1946; effective November 21, 1946. Treaties anc
Other International Acts Series 1564. 2 pp. 50.
2763. Trade Relations With the Philippines, Understand
ings Effected Through Exchanges of Notes Betweer
the United States of America and Other Governments i
Regarding the Application of Certain Treaties anc
Agreements : Belgium— May 4 and July 11, 1946
Bolivia— May 4 and June 10, 1946; Denmark— May f'
and September 10, 1946; Dominican Republic— May fi
and October 7, 1946; Egypt— May 4 and August 15^
1946; Ethiopia— May 4 and July 4, 1946; Norway-
May 4 and July 8, 1946 ; Portugal— May 18 and Augusi
26, 1946; Spain— May 4 and July 11, 1946; Yugo
slavia— May 4 and October 3, 1946. Treaties am]
Otlier International Acts Series 1572. 22 pp. 10«(.
2765. International Military Tribunal for the Far East
Established at Tokyo January 19, 1946. Treaties am
Other International Acts Series 1589. 16 pp. 100.
2768. Regulation of Whaling, Protocol Between th'
United States of America and Other Governments
Amending the International Agreement for the Regu
lation of Whaling Signed June 8, 1937, as Amended b;
the Protocol Signed June 24, 1938— Signed at Londoi
November 26, 1945; ratification advised by the Senat
of the United States of America July 30, 1946 ; ratifie
by the President of the United States of Amerle
August 12, 1946; ratification of the United States o
America deposited at London August 30, 1946 ; article
1318
Department of State Bulleth
2, 3, 4, 6 (1), 6 (2), 7, and 8 proclaimed by the Presi-
dent of tlie United States of America February 10,
1947. Treaties and Other International Acts Series
1507. 8 pp. 50.
J770. Papers Relating to the Foreign Relations of the
United States: The Paris Peace Conference, 1919.
Vol. X. 807 pp. $2.75 (buckram).
1771. United Nations Educational, Scientific and Cultural
Organization : Constitution Adopted by the United
States of America and Other Governments— Con-
cluded at London November 16, 1945 ; instrument of
acceptance deposited by the United States of America
September 30, 1946; effective November 4, 1946.
Treaties and Other International Acts Series 1580.
29 pp. 10<f.
1773. Report of the Delegation of the United States of
America to the Third Jnter-American Conference on
Agriculture, Caracas, Venezuela, July 24-August 7,
1945. Including Final Act and Related Documents.
Conference Series 94. 178 pp. 40^.
1774. Halving the Peace Treaties, 1941-1947. European
Series 24. ix, 150 pp. 500.
;775. The International Control of Atomic Energy : Scien-
tific Information Trausmitted to the United Nations
Atomic Energy Commission, December 15, 1946. Vol.
VII. Prepared in the Office of Mr. Bernard M. Baruch,
United States Representative. The United States and
the United Nations Report Series 9. ix, 30 pp. 150.
778. The Department of State Bulletin Index, vol. XV,
nos. 306-391, July 7-December 29, 1946. 40 pp. Free.
782. First Report of the Air Coordinating Committee,
1946. 25 pp. 10<f.
788. The Department of State Bulletin, vol. XVI, no. 404,
March 30, 1947. 44 pp. 15(}.
789. Peace, Freedom, and World Trade. Address by the
President. Commercial Policy Series 101. 14 pp. 5^.
790. Diplomatic List, April 1947. 182 pp. Subscription,
$2 a year ; single copy 20^.
791. The Department of State Bulletin, vol. XVI, no. 405,
April 6, 1947. 36 pp. 15()(.
794. American Policy in Occupied Areas. 31 pp. 20^.
795. The Inauguration of tlie Trusteeship System of the
United Nations. United States-United Nations In-
formation Series 16. 11 pp. 10^.
796. Report of the South Seas Conference. Article by
Emil J. Sady. Far Eastern Series 21. 7 pp. 10(i.
797. Foreign Service List, January 1, 1947. 177 pp. Sub-
scription, 500 a year ; single copy, 20^.
798. The Department of State Bulletin, vol. XVI, no. 406,
April 13, 1947. 44 pp. 15«f.
799. Report to Congress on Foreign Surplus Disposal,
April 1947. Submitted by the Office of the Foreign
Liquidation Commissioner, Department of State. 30
pp. 150.
800. Tenth Report to Congress on Operations of UNRRA,
as of December 31, 1946. 41 pp. 150.
SOI. Publications of the Department of State, January 1,
1945-January 1, 1947. 35 pp. Free.
une 29, 1947
PUBLICATIONS
2802. The Department of State Bulletin Supplement, vol.
XVI, no. 409 A, May 4, 1947. Aid to Greece and
Turkey: A Collection of State Papers. 88 pp. 300.
2806. Air Transport Services : Agreement Between the
United States of America and India — Signed at New
Delhi November 14, 1940 ; effective November 14, 1946 ;
and exchange of notes of November 14, 1946. Treaties
and Other International Acts Series 1586. 14 pp.
100.
2810. The Department of State Bulletin, vol. XVI, no. 407,
April 20, 1947. 44 pp. 150.
2811. Toward World Economic and Social Advance:
Fourth Session of the Economic and Social Council,
February 28-Mareh 29, 1947. United States-United
Nations Information Series 17. 13 pp. 50.
2813. The Department of State Bulletin, vol. XVI, no. 408,
April 27, 1947. 52 pp. 150.
2814. Foreign Consular Offices in the United States, April
1, 1947. 51 pp. 150.
2818. The Department of State Bulletin, vol. XVI, no. 409,
May 4, 1947. 44 pp. 150.
2819. Recent Publications of the Department of State, May
1947. 4 pp. Free.
2822. Council of Foreign Ministers : The Moscow Meeting,
March 10-April 24, 1947. Address by the Secretary
of State. Conference Series 98. 18 pp. 100.
2823. The Establishment of the Commission for Conven-
tional Armaments. Article by James M. Ludlow.
United States-United Nations Information Series 19.
11 pp. 100.
2824. The Department of State Bulletin, vol. XVI, no. 410,
May 11, 1947. 44 pp. 150.
2825. Diplomatic List, May 1947. 183 pp. Subscription,
$2 a year ; single copy, 200.
2826. Food and Agriculture Organization of the Unitetl
Nations. Part I : Report of the United States Delega-
tion to the Preparatory Commission on World Food
Proposals. Part II: Proposals for Amendment of
FAO Constitution. 26 pp. 100.
2827. Report of the United States Delegate to the Inter-
American Conference of Experts on Copyright. Con-
ference Series 99. 81 pp. 250.
2828. The Department of State Bulletin, vol. XVI, no. 411,
May 18, 1947. 56 pp. 150.
2829. World Stability Through the United Nations. Ad-
dress by Warren R. Austin. United States-United
Nations Information Series 20. 18 pp. 50.
2830. The Department of State Bulletin, vol. XVI, no. 412,
May 25, 1947. 40 pp. 150.
2834. The Department of State Bulletin, vol. XVI, no.
413, June 1, 1947. 36 pp. 150.
2837. The Department of State Bulletin, vol. XVI, no.
414, June 8, 1947. .'je pp. 150.
2841. Diplomatic List, June 1947. 184 pp. Subscription,
$2 a year ; single copy, 200.
2843. Tlie Department of State Bulletin, vol. XVI, no.
415, June 15, 1947. 40 pp. 150.
2846. National Commission News, vol. 1, no. 1, June 15,
1947. 8 pp. Not available for public purchase.
2853. The Department of State Bulletin, vol. XVI, no.
415, June 22, 1947. 72 pp. 15^.
1319
QUARTERLY CUMULATIVE TABLE OF CONTENTS
April 6-June 29, 1947'
Addresses, Statements and Broadcasts of the Week
Lists, 637, 671.
The Congress
Maine Ratifies Constitutional Amendment, 725.
Proposed Amendment to the Constitution Relating to
President's Terms of Office, 635.
Documents, Reports, etc., listed, 776, 816, 1008, 1047,
1181, 1317.
Council of Foreign Ministers
Dodge, Joseph M., to liead U.S. Delegation to Four
Power Commission, 985.
Four Power Commission Work Delayed, 1083.
Special Deputies To Consider Disposition of Italian
Colonies, 1129.
Council of Foreign Ministers, Moscow Meeting:
Moscow Meeting of the Council of Foreign Ministers,
March lO-April 24, 1947: Address by the Secretary
of State, 919.
Procedure for Preparation of German Peace Treaty:
Statements by the Secretary of State:
Association of Allies with CFM, 607.
Committees and Conference for AUied States, 608.
Position on Yugoslav Representatives, 609.
Statement on Albania, 608.
U.S. Position on Peace Conference, 607, 742.
Questions Relating to Austria: Statements by the Secre-
tary of State:
German Assets in Austria, 653.
Position on Treaty for Reestablishment of Independent
Democratic Austria, 793.
Questions Relating to Germany: Statements by the
Secretary of State:
Consideration of Disarmament Measures, 742.
Delimitation of Scope of Proposed Four-Power Treaty,
741.
Necessity for Economic Unity, 649.
Polish-German Frontier, 693.
Problem of Boundaries, 696.
Proposal for Provisional Government, 651.
Reiteration of Position on Disarmament and Demilitari-
zation of Germany, 793.
Relation of German Coal Production to Economic
Unity, 741.
The Ruhr, 694.
The Saar Territories, 695.
I For contents from .7an. 5 to Mar. 30, 1947, see Bul-
letin of Apr. 13, 1947, p. 679.
1320
Reparations :
Level of Industry and Reparations from Current
Production: Statement by Secretary of State, 652.
Reparations Received by the U.S.: Statement by U.S.
Delegation, 609.
The Department ,
Appointments, 637, 778, 1008, 1047, 1181. |
Armour, Norman, To Assume Duties of Two Assistant -
Secretaryships, 1253.
Clayton, V\'illiam L., to Economic Commission for Europe,
939.
Departmental Regulations, 638, 778, 1047.
Griswold, Dwight P., Assumes Duties as Chief of American
Mission for Aid to Greece, 1219.
Hastie, William H., Succeeds Ralph J. Bunche on Carib-
bean Commission, 1250.
Interim Greece-Turkey Assistance Committee, 777.
Lovett, Robert A., Confirmation as Under Secretary of
State, 1181.
McGhee, George C, Appointed Coordinator of Aid to
Greece and Turkey, 1303.
Norton, Garrison, Confirmation as Assistant Secretary of
State, 637.
Policy Committee on Immigration and Naturalization,
1316.
Policy Committee on International Copyright, 1316.
Policy Planning Staff, 1007.
Provisions Authorizing Ofl[ices of Under Secretaries and
Assistant Secretaries, 1253.
Report of Operations of Department of State Under
Public Law 584: 820.
Resignations:
Acheson, Dean, as Under Secretary of State, 1046.
Braden, Spniille, as Assistant Secretary of State, 1180.
Hilldring, John H., Resigns as Assistant Secretary ofi
State for Occupied Areas, 1307.
Porter, Paul A., as Chief of American Economic Missioni
to Greece, 823.
Economic Affairs
American Economic Mission to Greece, Release of Sum-*
mary and Recommendations, 943.
Aspects of American Economic and Technical Aid to
Foreign Countries Since Mid-1945, 957; Erratum,
1177.
Broadcasting Arrangements with Cuba, 770.
China, Negotiations Planned for Settlement of War
Accounts, 948.
Communications Merger Legislation, 677.
Conferences (see also Trade):
CITEJA, Final Session of, 1291.
Department of State BvUetin
CUMULATIVE TABLE Of CONTENTS
conomic Affairs- — Continued
Congress of Universal Postal Union (12th), U.S. Dele-
gation, 934.
ILO Industrial Committees Meet iu Belgium, 613.
IMMKAN, U.S. Delegation, 807.
International Cooperation During World Shortage of
Lumber, 974.
International Hydrographic Conference (5th), 1203.
International Radio Conference, U.S. Delegation, 749,
1034.
International Rubber Study Group, U.S. To Meet
With, 1292.
International Statistical Institute, U.S. Invites 62
Nations, 933.
International Timber Conference of FAO, U.S. Delega-
tion, 661.
International Wheat Conference, 1053: Text of Pro-
posed International Wheat Agreement, 1057.
PICAO South Pacific Regional Air Navigation Meet-
ing, 713.
Provisional Maritime Consultative Council, U.S. Dele-
gation to, 1035.
Radio Technical Committee for Marine Services, In-
terim Assembly, 935.
Tin Study Group, U.S. Delegation to, 748.
^irrency Controls, Removal of, 671.
aspit, Alexander B., as Acting Deputy on Tripartite
Commission, 668.
conomic Cooperation With Canada, 1941-1947, 1185.
Bonomic Stability as Basis for Political Harmony: Mes-
sage From Secretary of State to U.S. Associates, 996.
conomics of Peace in the "Interim Period", 1193.
xport Control Act, Message of the President to Con-
gress Stating Necessity for Extension of, 676.
Dot-and-Mouth Disease in Mexico, Joint Campaign
Against, 710.
Dreign Merchant Vessels, Disposal of, 1007.
areign Surplus Disposal, the Secretary's Letter Trans-
mitting Fifth Report to Congress, 952.
ranee Receives First Loan Made by International Bank,
1042.
Liture of Foreign Trade: Address by Assistant Secretary
Thorp, 1235.
overnment Operation of Shipping Facilities, Extension
of:
Statement by the Secretary of State, 1225.
Statement by Under Secretary Clayton, 1226.
rain Shipments to France, 943, 1042, 1130.
aitian Good-Will Mission Concludes Negotiations With
U.S., 634.
anian Purchasing Mission, 720.
;alian Blocked Accounts in U.S. Partially Released, 1129.
;alian-U.S. War Claims:
Negotiations Nearing Conclusion, 1161.
Talks on Settlement of, 1130.
end-Lease Discussions with U.S.S.R., 767.
end-Lea.se to U.S.S.R., 814.
fetes on Opium Policy in Burma, 1283.
»ur Domestic Economy and Foreign Affairs:
Address by Assistant Secretary Thorp, 758.
'hilippines, Agriculture Situation in, 719.
Promotion of World Understanding Through Transport
and Communications, 1241.
Property :
Austrian Restitution Laws, 669.
Czechoslovakia To Discuss Nationalization Compensa-
tion Claims, 1133.
France, Restitution of American-Owned Property in, 632.
Netherlands, Procedure for Filing Property Claims,
632, 939, 1131.
Philippines, Recovery of Property Removed by the
Enemy, 675.
Pre-1934 Philippine Bonds Delivered to U.S. for
Destruction, 767.
Procedure for Filing Claims With Office of Alien Prop-
erty, 1003.
Rumania, Nationalization of Industry in, 1218.
Rumanian National Bank, Registration of Shares of, 668.
Yugoslav-U.S. Joint Statement on Negotiations for
Mutual Restoration of Civil Property, 1041.
Yugoslavia, Procedure for Filing War Claims, 1219.
Protection Abroad of Inventions Under Government-
Financed Research, 1316.
Request to Poland Concerning Gold From Portugal,
1002.
Requirements of Reconstruction: Address by Under
Secretary Acheson, 991.
Second War Powers Act:
The President's Message to Congress Requesting
Extension, 1138.
Statement by Under Secretary Acheson, 1173.
Stabilization of Rate of Exchange Between U.S. and
Mexico; Joint Statement by President of U.S. and
President of Mexico, 937.
Swedish Import Restrictions:
Discussions With Sweden, 767, 939, 1311.
Swedish Statement on, 938.
U.S. Position on, 633.
Trade:
Agreement on ITO Charter Urged for Economic
Stability: Statement by Secretary of State, 1041.
American Interest in Proposed International Trade
Organization: Statement by Acting Secretary
Acheson, 721.
Geneva Meeting of U.N. Preparatory Committee for
International Conference on Trade and Employ-
ment:
Convenes in Geneva, 763.
Reports to Office of Public Affairs, 932, 989, 1208.
U.S. Delegation, 660.
Summary of Informal Hearings on Proposed Charter:
Memorandum to Acting Secretary Acheson From
Assistant Secretary Thorp, 721.
Report on National Informal Hearings, 722.
UNRRA:
President's Letter Transmitting Tenth Quarterly Re-
port, 1045.
Statement by Under Secretary Acheson on Post-
UN RRA Relief, 755.
U. S. Gold Declaration, Feb. 22, 1944, 1002n.
Wool:
International Wool Study Group:
First Meeting, 987.
une 29, J 947
1321
CUMULATIVB TABLE OF CONTENTS
Economic Affairs — Continued
Wool — Continued
Terms of Reference Adopted and Conclusions Pre-
sented, 659.
U.S. Delegation to, 612.
Position on House Version of Legislation:
Letter From the Secretary of State to Senator Aiken,
1228.
Letter to the Secretary of State From Cordell Hull,
1229.
Letter to the Secretary of State From Henry L.
Stimson, 1229.
Statement by the Secretary of State, 1228.
Position on Proposed Wool Import Duty:
Letter From Under Secretary Clayton to Represent-
ative Cooley, 1084.
Statement by Secretary of State, 1137.
The Foreign Service
American Consular Service in India To Be Augmented,
1044.
American Consulate To Open in Leningrad, 1307.
Appointment of Public Affairs Officers, 777.
Confirmations to the Diplomatic and Foreign Service, 823,
1240.
Consular Offices, 1008, 1181, 1307.
Philippine Foreign Affairs Training Program, 718.
Political Adviser, Office Moved, 1181.
Resignation of Ambassadors: Poland, Yugoslavia, 636.
World-Wide Oral Examinations for Foreign Service, 637.
General Policy
American Tradition in Today's Foreign Policy: Address
by Under Secretary Acheson, 1221.
Anniversary of Pan American Day: Statement by Assist-
ant Secretary Braden, 768.
Argentina Urges Mutual Assistance, 1177.
Burma Rehabilitation Efforts Praised: Message From the
Secretary of State, 1314.
Cairo Conference of Interparliamentary Union, 1115.
China:
Assistance to China Through Private Contribution, 1313.
Authorizing Transfer of Vessels and Material for
Assistance to, 821.
Marine Evacuation of 74 From Area of Chinese Com-
munist Operations, Information on, 1178.
U.S. Military Attaches in China Returned by Com-
munist Captors, 822.
Civic Leaders To Discuss Foreign Policy With U.S.
Officials, 953.
Committee To Study Effect of Foreign Aid on Domestic
Economy: Statement by President, 1297.
Common Objectives and Ideals Manifested in U.S.-
Canadian Relations: Address by the President, 1210.
Concern Over Violation of Civil Liberties in Bulgaria, 1218.
Confirmations to Atomic Energy Commission, 774.
Control of Exportation and Importation of Arms, Am-
munition, and Implements of War, 750.
Economic Aid to Italy: Statement by Secretary of State,
1160.
European Initiative Essential to Economic Recovery:
Remarks by Secretary of State, 1159.
First American Airplane Lands in Yemen, 1136.
1322
Greece and Turkey:
American Economic Mission to Greece, Report of, 898.
Congressional Hearings :
Statement by Ambassador Porter, 842.
Statements by Acting Secretary Acheson, 835, 847.
Statements by Undersecretary Clayton, 838, 852.
Correspondence Relating to the Greco-Turkish Ai(
Bill: Letters From Secretary of State and Am
bassador Austin to Representative Eaton, 1073, 1074
Greek Government Seeks U.S. Financial Aid :
Message to the President and the Secretary of State
From the Greek Prime Minister and the Ministei
for Foreign Affairs, 827.
Statement by the Secretary of State, 828.
Mes.sages From Greek Prime Minister and Leader of Par
liamentary Opposition:
Statement by the President, 833.
Statement by U.S. Representative to U.N., 834.
Texts of Messages, 833.
Passage of Bill Authorizing Assistance:
Regulations for Carrying Out Act, 1070.
Statement by the President, 1070.
Text of Act, 1071.
Questions and Answers Relating to Greco-Turkish Aid
Bill, 866.
Recommendations on Greece and Turkey : Message ol
the President to the Congress, 829.
Security Council, Discussions in : Statements by U.S.
Representative to U.N., 857, 861.
Some Aspects of Our Policy in Greece and Turkey, 997
Total Assistance Program to Foreign Countries : Letter
From Assistant Secretary Thorp to Representative
Eaton, 896.
Transfer of Personnel to Missions for Greece and Tur-
key, Providing for, 1125.
Urgency of Action of Proposed Legislation : Message
From the Secretary of State to the President Pro
Tempore of the Senate, 897.
Hope for Accord on Indian Self-Govemment, 1249.
Hungary:
Protest of .\rrest of Hungarian Smallholders Party
Leader:
Note from U.S. Representative on Allied Control
Commission for Hungary to Soviet Acting
Chairman, 1215.
Reply From Soviet Acting Chairman, 1216.
Relations With Former Hungarian Prime Minister Nagy:
Exchange of Notes Between Under Secretary Achesom
and the Prime Minister, 1217.
Request for Information Relating to Hungarian Situa-
tion, 1161.
Inter- American System: A Solid Foundation for the
Challenge of the Future, 769.
Legal Groups Invited to Discussion of Codification of
International Law, 1007.
Letters of Credence: Greece 1302; Iraq, 719; Ireland 1316;
Siam, 767.
Mexico, Visit of President, 823.
Award of I^egion of Merit, 937.
Greetings by President Truman, 936.
U.S.-Mexican Friendship Reiterated, 1043.
Department of State Bulletin
CUMULATIVE TABLE OF CONTENTS
Seneral Policy — Continued
Negotiations Planned for Implementation of Foreign
Relief Bill:
Regulations for Carrying Out Provisions, 1125.
Statement by Secretary of State, 1124.
>Jon-Recognition of Present Nicaraguan Regime, 1177.
)ne Year of the Philippine Republic, 1273.
'eople's Stake in Maintaining Peace, 1230.
'hilippine Vice President and Foreign Secretary To Visit
U.S., 822.
-"olicy on Repatriation of Displaced Persons: Statement
by Secretary of State, 1085.
-"osition on Administration for Indonesia, 1314.
'osition on Resettlement of Displaced Persons: State-
ment by Assistant Secretary HiUdring, 1162.
Position on a United States of Europe: Letter From
Secretary of State to Senator Vandenberg, 1213.
-"resident Truman Visits Canada, 1166.
Proposed Inter- American Military Cooperation:
Draft of Bill, 1122.
President's Message to Congress, 1121.
ilequest for Presidential Authority To Detail Military
and Naval Missions: Statement by the Secretary of
State, 1175.
5.S. Martin Behrman Incident, 720.
5ales and Transfer of Non-Demilitarized Combat Mate-
riel, 1140.
Status of Jewish Displaced Persons, 1308.
Support Urged for Approval of Anglo-American Oil Agree-
ment, 1167.
U.S. Requests Reinstatement of Credentials for Cor-
respondent in Spain, 764, 940.
[Jniversal Training — A Support for Foreign Policy: Address
by the President, 1294.
International Information and
Cultural Affairs
;!eramics Lecturer to Honduras, 822.
[Conferences:
American Institute for Protection of Childhood, Meet-
ing of Council, 1 157.
Health Congress of Royal Sanitary Institute, U.S.
Delegation, 1069.
International Broadcasting Conference With American
Radio Industries, 951.
International Congress of Pediatrics (5th), Invitation
to, 1114.
International Congress on Military Medicine (11th),
U.S. Delegation, 1114.
International Red Cross Committee Meeting, 1205.
Joumfies Mddicales (21at session), U.S. Delegation to, 1292.
Pan American Sanitary Conference (12th), Regional
Health Programs and WHO, 809.
Defense of American Information Program: Letter From
Assistant Secretary Benton to Kent Cooper, 1251.
Educational Exchange Program, Position on: Statement
by Secretary of State, 1250.
Enochs, Elisabeth, To Attend Institute for Protection of
Childhood, 823.
Exchange of Persons, 626, 1128, 1133.
June 29, 1947
Fellowships for Inter-American Institute of Agricultura
Sciences, 1314.
Institute of Inter-American Affairs, Proposed Continua-
tion of:
Accomplishments and Plans of IIAA, 1102.
Cooperative Action Programs, 1106; Map, 1105.
Draft of Bill, 1100.
Letter From Secretary of State to President of Senate,
1099.
International Broadcasting Foundation of U.S.: Proposal
by the Department of State, 618.
International Interchange and Information Act, proposed,
624.
Merchant Marine Academy To Train Students From
Other American Republics, 938.
Mexico, Educational, Scientific and Cultural Cooperation,
With, 1004.
Reiteration of Position on Program for International
Information and Educational Exchange: Letter
From the Secretary of State to Representative
Mundt, 1315.
Visits :
Argentine Architect, 1003.
Bolivian Lawyer, 727.
Cuban Chemist, 770.
Ecuadoran Engineer, 1129.
Haitian Educator, 1006.
Honduran Agriculturist, 1314.
Voice of America:
Greek-Language Broadcasts, Recorded Statements by:
Assistant Secretary Benton, 1036.
Secretary of State, 1036.
Senator Vandenberg, 1037.
Program Schedules Distributed, 952.
Radio Advisory Committee Urges Strengthening of
Voice of America, 1038.
Report of Radio Advisory Committee, 1039.
Relay Station in Algiers To Close, 623.
Broadcast of Final Program, 1134.
Statement by Ambassador Bonnet, 1135.
Statement by Assistant Secretary Benton, 1135.
U.S.S.R. Reception of Voice: Statement by Assistant
Secretary Benton, 624.
International Organizations and Conferences
Calendar of Meetings, 610, 658, 707, 744, 800, 930, 984,
1032, 1066, 1112, 1155, 1199, 1289.
Meetings of Organizations. See. Economic Affairs; Inter-
national Information, etc.; United Nations.
Occupation Matters
Europe:
American Policy Concerning German Monopolies, 913.
Appointments to Military Tribunal, 1047, 1133.
Civilian Communication Between U.S. and British
and American Zones in Germany, 671.
Control of Coal Exports in Western Zones of Germany,
822.
Military Control of Zone A in Venezia Giulia, 1257;
Map of Trieste, 1264.
State, War, Navy Program for Interchange of Persons,
666.
1323
CUMULATIVE TABLE Of CONTENTS
Occupation Matters — Continued
Europe — Continued
U.S. Zone in Germany Closed to Additional Displaced
Persons, 766.
Use of Occupation Currency by Four Occupying Powers:
Address by Assistant Secretary Hilldring, 1304.
Japan :
Allied Trade Representatives in Japan, 611.
Apprehension, Trial, and Punishment of War Criminals
in Far East, 804.
Arrangements for Commercial Banking in Japan, 718.
Destination of Japanese Exports, 1068.
Destruction or Removal of United Nations Property in
Japan. 986.
Determination of Peaceful Needs of Japan, 806.
Division of Reparation Shares, 1069.
Interim Principles for Restitution of Property Con-
fiscated in Japan From Allied Nationals, 708.
Japanese Vessels Available for Delivery to U.S., U.K.,
U.S.S.R., and China, 717.
Policy for Revision of Japanese Educational System, 746.
Selection of Plants for Reparations, 1201.
Sources of Japanese Imports, 1067.
Toward Formulating New Japanese Constitution:
Basic Principles for, 802.
FEC Interest in, 802.
Further Policies Relating to, 803.
Review of, 612, 804.
Transfer of Japanese Industrial Facilities to Devastated
Countries, 674.
Korea:
Hope for Early Provisional Government, 1249. Jacobs,
Joseph E., Appointed Political Adviser to USAF,
1178.
Joint U.S.-U.S.S.R. Commission:
Soviet Position on Resumption of, 812, 995.
To Be Reconvened, 1043.
U.S. Interpretation of Terms of Moscow Agreement,
947.
U.S. Urges Reconvening of, 716.
Procedures for Consultation With Koreans, 1247.
Recovery of Identifiable Property Removed From Allied
Countries, 1161.
Publications
Agriculture in the .Americas, 777.
Aid to Greece and Turkey, publication on, 639, 1001.
Department of State, 601, 1318.
Foreign Commerce Weekly, 677.
German War Documents Project: Participation of French
Government, 1136.
Nazi Conspiracy and Aggression: Vol. II, 678; Vol. VIII,
1008.
Program for National Security, 1181.
Protection of Foreign Interests, 1139.
Salesroom Opened, 727, 823, 1009, 1082.
Supreme Economic Council of Allied and Associated
Powers, 1919: 944.
United States and Non-Self-Governing Territories, 774.
Treaty Information
Administration of Guam, Samoa, and the Pacific Islands,
1312.
Agreement of Friendship and Commerce With Nepal, 949,
Approval Urged for Peace Treaties With Italy, Roumania,
Bulgaria, and Hungary:
Letter From the President to the Secretary of State,
1075.
Letter From Under Secretary Acheson to Senator
Vandenberg, 1075.
Aviation:
Air-Transport Agreements: Argentina, 938, 1003;
Canada, 775; Chile, 1044; Greece, 1166; Ireland,
1166; Syria, 948, 996; Union of South Africa, 1137.
Finland Grants Commercial Air Rights, 725.
Reciprocity Principle in Air-Transport Agreements, 1220.
Surplus Property Air-Rights Agreements, 766.
Congressional Hearings on Trade Agreements Act: State-
ment by Under Secretary Clayton, 627.
Consular Convention With Repubhc of Phihppines, 1179.
Designating Public International Organizations Entitled
To Enjoy Certain Privileges, Exemptions, and Im-
munities, 1120.
Development of the Arab League, 963.
Map, 964.
Text of Alexandria Protocol, 966.
Text of Pact of League of Arab States, 967.
Estate Tax Convention with South Africa, 727.
Extension of Copyright Agreement With New Zealand,
948.
Great Lakes Fisheries Convention, 643.
Industrial Property Agreement With France, 725.
Inter-American Copyright Convention Enters Into Force,
953.
International Convention for Regulation of Whaling, 772.
Italy, Syria, and Lebanon Sign Articles of Agreement of
Bank and Fund, 749.
New Era Anticipated for Italy: Statement by President
Upon Ratification of Peace Treaty, 1214.
Position on Possible Revision of Agreement on Defense of
Greenland, 1130.
Proclamation of 1946 Sugar Protocol, 1132.
Program for Utilization of Aid to Greece:
Exchange of Notes Between the U.S. and Greek Gov-
ernments, 1298.
Text of Agreement on Aid to Greece, 1300.
Proposed U.S.-Panama Agreement on Defense Sites [in i
Panama, 1003.
Protocol Amending Agreements, Conventions and Proto-
cols on Narcotic Drugs, 817.
Protocol for Extension of Coffee Agreement, 727.
Protocol for Regulation of Whaling — 1946: 771; Supple-
mentary, 1005.
Protocol on Establishment of Four Power Naval Commis-
sion, Disposal of Italian Fleet, and Return by Soviet
Union of Warships on Loan, 815.
Quota Ended on Fox Furs From Canada, 678.
Regret Expressed That Yalta Commitments Remain
Unfulfilled in Hungary, Rumania, and j; Bulgaria:
1324
Department of Slate Bulletim
CUMULATIVE TABLB OF CONTBNTS
Treaty Information — Continued
Statement by the President Upon Ratification of
Peace Treaties, 1214.
Relation of St. Lawrence Seaway and Power Project to
National Security:
Letter to Secretary of State From Secretary of War,
1128.
Statement by Secretary of State, 1126.
Stabilization Agreement With Mexico, 1043.
Summaries of Texts of Peace Treaties: Italy, Bulgaria,
Roumania, and Hungary, 1076.
Surplus Property Credit to Hungary Suspended, 1166.
Tax Treaty Negotiations With Mexico, 937; New Zea-
land, 1046.
Treaty of Friendship, Commerce and Navigation with
China, 672.
U.S.-French Agreement on Copyright Extension, 632.
The United Nations
Bibliography, 929, 982, 1018, 1074, 1098, 1154, 1198, 1272.
Citizens Asked To Refrain From Activities Hazardous to
Settlement of Palestine Problem: Statement by
President, 1154.
Committee on Progressive Development of International
Law and Its Codification:
Jessup, Philip C: Appointed U.S. Representative, 953;
Statement by, 1026.
U.S. Suggestions, 1029, 1152.
Conferences: Chart, facing 1198.
Confirmation to International Monetary Fund, 1250.
Confirmations to United Nations, 823.
Davis, Monnett B., Confirmed to Economic Commission
for Europe and Far East, 1198.
Designating U.S. Mi.osion to U.N. and Providing for Its
Direction and Administration, 798.
Economic and Social Council:
Accomplishments of Fourth Session of ECOSOC, 655.
Economic Commission for Europe: Toward Beneficial
Employment of Human and Material Resources:
Address by Under Secretary Clayton, 977.
Resolutions Adopted by the Economic and Social
Council Relating to Narcotic Drugs, 687.
Economic Commission for Europe, 1031.
Address by Under Secretary Clayton, 977.
Experts Meet at Geneva To Prepare for a World Con-
ference on Passport and Frontier Formalities, 1201.
Food and Agriculture Organization:
Proposals for Amendment of FAO Constitution:
Australian, 927.
Executive Committee, 928.
U.K., 927.
U.S., 925.
General Assembly:
First Special Session of General Assembly of United
Nations, 1013.
Question of Palestine:
Resolution Establishing Special Committee on Pales-
tine, 1024.
Resolutions Adopted by General Assembly, 1110.
Special Session of General Assembly Called:
Cable From Secretary-General to Member Nations,
795.
Items Requested for Agenda, 795.
U.S. Delegation, 798.
International Civil Aviation Organization:
Air Traffic Committee for European-Mediterranean
Region, U.S. Delegation to, 709.
First Assembly of International Civil Aviation Organi-
zation, 1145.
Actions Taken by Commission on Draft Agreement
and on Debarment of Spain, 1025.
Assistant Secretary Norton, statement by, 979.
Secretary of State, statement by, 1110.
U.S. Delegation to, 808.
Meetings in Lima and Rio de Janeiro, U.S. Delegation
to, 1293.
International Labor Organization:
Industrial Committee on Coal Mining, U.S. Delegation,
806.
Industrial Committee on Inland Transport, U.S. Dele-
gation, 982.
Thirtieth Session of International Labor Conference,
U.S. Delegation, 1110.
International Refugee Organization:
U.S. Delegation to Preparatory Commission, 748.
Preparatory Committee for International Conference on
Trade and Employment, 2d meeting, 989.
Preparatory World Conference on Passports, U.S. Dele-
gation, 748.
Security Council:
Establishment of Commission for Conventional Arma-
m.ents, 731.
Regulation of Armaments and Lasting Peace, 697.
Summary Statement by Secretary-General: Matters of
Which Security Council Is Seized, 657, 799.
Trusteeship Council:
First Session of Trusteeship Council, 1089.
Trusteeship Agreement for Former Japanese Mandated
Islands, 791.
U.S. Trusteeship Territory for Territory of Pacific
I.3lands, 783.
UNESCO:
Eisenhower, Milton, to Executive Board, 749.
First Regional Conference of National Commission for
UNESCO, 978.
General Conference of UNESCO, Paris:
Program in Action, 645.
Program in Relation to U.N., 1019.
National Commission for UNESCO Invites Additional
Organizations, 978.
Relations Between UNESCO and WHO:
Report of First Joint Meeting of Negotiating Com-
mittees, 1022.
UNESCO: A Proposal to History: Address by Assistant
Secretary Benton, 662.
World Healtli Organization:
Third Session of Interim Commission of WHO, 971.
U.S. Membership and Participation in WHO:
Joint Resolution, 702.
Memorandum From Secretary of State, 703.
President's Letter of Transmittal, 702.
June 29, 1947
1325
General Policy Page
One Year of the Philippine Republic. Article
by Edward W. Mill 1273
Universal Training — A Support for Foreign
Policy. By the President 1294
Committee To Study Effect of Foreign Aid
on Domestic Economy. Statement by
the President 1297
Program for Utilization of Aid to Greece.
Exchange of Notes Between the U.S.
and Greek Governments 1298
New Ambassador of Greece Presents Cre-
dentials:
Text of the Remarks of Ambassador Vassili
Dendramis 1302
Text of the President's Reply 1303
Status of Jewish Displaced Persons. By
Rabbi Philip S. Bernstein 1308
Assistance to China Through Private Con-
tribution. Telegram From the Secre-
tary of State to United Service to
China 1313
Burma Rehabilitation Efforts Praised. Mes-
sage From the Secretary of State to the
Chairman of the Burma Constituent
Assembly 1314
Position on Representative Administration
for Indonesia. Statement by the Secre-
tary of State 1314
Letters of Credence: Ireland 1316
Economic Affairs
Notes Relating to Opium Policy in Burma . 1283
Final Session of the CITEJA, May 6-27,
1947 1291
U.S. To Meet With International Rubber
Study Group 1292
U.S.-Swedish Import Discussions Concluded 1311
Protection Abroad of Inventions Under
Government-Financed Research .... 1316
Occupation Matters
Military Control of Zone A in Venezia Giulia.
Article by Mary E. Bradshaw 1257
Allied Military Government of Venezia
Giulia:
Map of Trieste 1264
Proclamation No. 1 1265
Administrative Instruction — Education,
No. 4 1268
Occupation Matters — Continued Pag«
Use of Occupation Currency by Four Occupy-
ing Powers. By Assistant Secretary
Hilldring 1304
Treaty Information
Text of Agreement on Aid to Greece .... 1300
Administration of Guam, Samoa, and the
Pacific Islands:
Letter From the President to the Speaker
of the House 1312
Report of the Secretary of State 1312
International Information and
Cultural Affairs
U.S. Delegation to Twenty-First Session of
Journ^es M^dicales 1292
Honduran Agriculturist Visits U.S 1314
Fellowships for Inter-American Institute of
Agricultural Sciences 1314
Reiteration of Position on Program for Inter-
national Information and Educational
Exchange. Letter From the Secretary of
State to Representative Mundt .... 1315
The United Nations
U.N. Documents: Selected Bibliography . . 1272
U.S. Delegation to ICAO Meetings in Lima
and Rio de Janeiro 1293
Calendar of International Meetings. . . 1289
The Foreign Service
American Consulate To Open in Leningrad . 1307
The Congress 1317
The Department
George C. MoGhee Appointed Coordinator of
Aid to Greece and Turkey 1303
John H. Hilldring Resigns as Assistant Secre-
tary of State for Occupied Areas . . . 1307
Policy Committee on Immigration and Natu-
ralization 1316
Policy Committee on International Copy-
right 1316
Publications
Department of State 1318
Quarterly Cumulative Table of Con-
tents
April 6-June 29, 1947
^<mJ/}mwtcM,
Mary E. Bradshaw, author of the article on military control of Zone
A in Venezia Giulia, is a Foreign Affairs Analyst in the Division of
Historical Policy Research, Office of Public Affairs, Department of
State.
Edward W. Mill, author of the article on the first year of Philippine
independence, is Acting Assistant Chief of the Division of Philippine
Affairs, Office of Far Eastern Affairs, Department of State.
U. %. COVIRHMEHT PRIHTiaG OFPICCi 1947
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