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MEETING OF TIIE COMMITTEE OF EUROPEAN 

ECONOMIC COOPERATION 681 

COAL FOR EUROPE • Address hy Assistant Secretary Thorp 697 

THE GENEVA CHARTER FOR AN INTERNATIONAL 
TRADE ORGANIZATION: 



Quantitative Restrictions 

Employment and Economic Development 



663 
667 



For complete contents see back cover 



( 



Vol. XVII, No. 431 
October 5, 1947 




u. s. superinte:)d'-nt of documents 
OCT 16 1947 




f^L^' " \ e^^^\n 1 11 I • 



Vol. XVII, No. 431 • Publication 2931 
October 5, 1947 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26, D.C. 

Subscription: 
62 issues, $5; 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 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- 
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, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



THE GENEVA CHARTER FOR AN INTERNATIONAL 
TRADE ORGANIZATION 



II. Quantitative Restrictions 



"Q.R." has become a symbol for the vital inter- 
national economic issues at stake in the charter for 
an international trade organization. 

Q.R. means quantitative restrictions — the most 
serious obstacle threatening the reconstruction of 
world trade. All of the other objectives, prin- 
ciples, and provisions of the ITO charter — whether 
they relate to employment, to economic develop- 
ment, to tariffs and internal barriers, to cartels, or 
to commodity agreements — have significance only 
so far as a satisfactory method is found of dealing 
witli Q.R. 

Tariffs affect competition by giving some pro- 
ducers higher prices than others. But quantita- 
tive restrictions, which rigidly limit imports and 
exports to specified amounts, kill competition alto- 
gether. No matter how much a purchaser may 
want an imported product, he cannot buy as much 
of it as he is willing to pay for if a quantitative 
restriction stands in the way. The production of 
goods makes sense only if they can be distributed 
to consumers. Quantitative restrictions cut across 
the distribution systems of the world, destroy 
world markets, and lead to economic self-suffi- 
ciency and isolationism. Under a regime of quan- 
titative restrictions trade is no longer a matter of 
buying and selling between business enterprises 
in different countries ; it becomes an affair of state, 
with bargaining between governments as to what 
goods, in what amounts, will be exchanged. 

The Geneva charter condemns quantitative re- 
strictions in principle. It does not abolish them, 
for their use is sometimes legitimate; but it con- 
fines them to exceptional circumstances which are 
narrowly defined, carefully safeguarded, and sub- 
ject to international scrutiny and control. 



The basic rule on quantitative restrictions is a 
simple one, namely, that they are prohibited (par- 
agraph 1 of article 20). This rule is followed by 
specific exceptions dealt with in the following 
paragraphs of article 20 and in articles 21, 22, 23, 
and 24. The length and detail of the text relat- 
ing to tliese exceptions have been cited by critics 
as evidence that the exceptions are so numerous 
and so wide open that they cancel out the general 
principle. As a matter of fact, the length and de- 
tail of the provisions relating to exceptions are 
due to the elaborate safeguards which have been 
thrown around their use in order to preserve the 
integrity of the general principle. 

There are two main exceptions to the rule 
against quantitative restrictions : one to permit im- 
port quotas for agricultural products in surplus, 
and the other to permit import restrictions to pro- 
tect a country's monetary reserves and safeguard 
its international financial position. Both of these 
exceptions have precedents in the trade agreements 
concluded between the United States and other 
countries during the interwar years. The other 
exceptions are primarily technical or transitory in 
nature and do not materially affect the long-run 
goal of eliminating quantitative restrictions. 



Editor's Note : These articles are part of a series in 
the Bluj-etin describing the draft charter for an inter- 
national trade organization formulated at Geneva by the 
Preparatory Committee for the United Nations Confer- 
ence on Trade and Employment which will open at Habana 
on November 21 of this year. The first article in the series 
de.scribed the General Commercial Provisions of the char- 
ter on tariffs, customs matters, and internal barriers (see 
Bulletin of Sept. 28, 1947, p. 603). Later articles will 
relate to Subsidies and State Trading, Cartel and Com- 
modity Policy, and the Structure of the ITO. 



Ocfofaer 5, J 947 



663 



Agricultural Quotas 

The exception for quotas on surplus agricultural 
products (paragraph 2 (c) of article 20) is made 
necessary by the fact that, in the field of agricul- 
ture, governments have so frequently and univer- 
sally intervened to reduce surpluses and prevent 
disastrously low farm prices by limiting the out- 
put or marketing of domestic farm products. An 
example of this is the United States Sugar Act of 
1937, which seeks to keep sugar prices at a reason- 
able level by regulating the quantity of sugar, 
whether domestic or foreign, which comes onto the 
market. So long as governments limit the domes- 
tic production of a product, they must be free to 
take like action with respect to imports. If they 
did not, imports would increase, drive prices down, 
and enlarge the surplus, and the whole scheme 
would fall. 

Three requirements must be met before agricul- 
tural quotas can be imposed under the charter. 
First, imports may not be restricted unless the do- 
mestic product is also restricted. This rule is nec- 
essary to prevent the use of quotas for ordinary 
protective purposes. Secondly, the domestic prod- 
uct must be restricted to approximately the same 
degree as the imported product. This requirement, 
which is related to the first, is necessary to prevent 
countries from applying their restrictions in such 
a way as to boost domestic output by cutting down 
on imports. Finally, advance public notice must 
be given of the amount of imports to be let in, and 
the member applying the restriction must consult 
with any other member who complains that the 
restriction does not meet the requirements referred 
to above. 

Balance-of-Payments Restrictions 

The exception for import restrictions necessary 
to safeguard a country's balance of international 
payments is a recognition of the hard fact that 
nations, like individuals, cannot long continue to 
buy things for which they cannot pay. If money is 
lacking, purchases must be cut accordingly. The 
only effective way in which a nation can reduce its 
total foreign purchases to the amounts it can 
pay for is to impose quantitative restrictions on 
imports. 

The article on balance-of-payments restrictions 
( article 21 ) is the longest in the charter. It is long 
because international finance and exchange is a 

664 



complicated subject. The articles of agreement of 
the International Monetary Fund, which relate 
solely to the financial aspects of the exchange prob- 
lem, take up 41 closely printed pages. Article 21 
of the Geneva charter is long also because it seeks 
to make sure that restrictions will be applied only 
when necessary for financial reasons and not for 
ulterior purposes ; that their administration will be 
fair and reasonable in the light of the needs and 
interests of other countries ; and that there will be 
adequate international procedures to insure the 
enforcement of these I'ules. 

While the detailed clauses of the Geneva charter 
on balance-of-payments restrictions are elaborate 
and complex, the general ground rules are fairly 
simple : 

First, countries may use resti'ictions only "to 
the extent necessary" to keep a reasonable amount 
of monetary reserves — that is to say, an adequate 
pool of money — available to pay for foreign goods. 
In other words, they can limit their buying from 
other counti-ies only when their pocketbooks are 
in real danger. 

Secondly, countries must stop restricting imports 
when their monetary reserves have again reached 
a reasonable level. In other words, they must 
start buying again, in a normal way, when their 
pocketbooks are out of danger. They may not 
keep the restrictions on in order, for example, to 
shelter or build up inefficient industries at the ex- 
pense of the trade of other countries. 

Thirdly, countries in balance-of-jDajanents dif- 
ficulties must consult with the International Trade 
Organization, either before or after applying re- 
strictions. The purpose of consultation is to en- 
able the ITO to find out precisely what the difficul- 
ties are, to see whether there is any way in which 
they can be overcome, short of imposing restric- 
tions on imports, and to estimate what the effect 
of the restrictions might be on the trade of other 
countries. 

It is not enough to agree upon ground rules if 
each counti-y can decide for itself whether it is ob- 
serving them. An enforcement procedure is neces- 
sary. Accordingly, procedures are provided in the 
charter whereby any member of the ITO can com- 
plain that another member has failed to live up to 
the gi'ound rules to the detriment of the trade of 
the comi^laining member. The ITO is then re- 
quired to look into the matter. If it finds that the 
complaint is justified, and if an amicable settle- 

Departmenf of State Bulletin 



ment is not made, the ITO must recommend the 
withdrawal or modification of the restrictions com- 
plained about. If tliese recommendations arc not 
followed, the ITO may authorize the com|)luining 
member to impose higher tariffs, or quotas, or 
', other measures generallj' forbidden by the charter, 
against the trade of the offending member. In this 
way an effective penalty is brought to bear against 
countries which violate the obligations they have 
undertaken. 

There is danger that countries may deliberately 
tailor their domestic policies, such as development 
or emploj'ment programs, so as to keep themselves 
in constant balance-of-payments difficulties with a 
view to protecting their industries from foreign 
competition or cutting themselves off economically 
from the rest of the world. However, purely do- 
mestic policies cannot practicably be brought with- 
in the purview of the International Trade Organi- 
zation. A series of provisions has therefore been 
worked out, designed, on the one hand, to place 
essentially domestic matters beyond outside inter- 
ference and, on the other, to assure that the effect 
of such jjolicies on the trade of other countries will 
be compatible with the objectives of the ITO to 
expand international commerce. Thus, while a 
member cannot be ordered by the ITO to change 
domestic policies, on the ground that this would 
ease its balance-of-payments problems, it must 
agree to abide by certain principles in carrying 
them out. Concretely, it is provided that members, 
in carrying out their domestic policies, undertake : 

"(i) to pay due regard to the need for restoring 
equilibrium in their balance of payments on a 
sound and lasting basis and to the desirability 
of assuring an economic employment of produc- 
tive resources; 

"(ii) not to apply restrictions so as to prevent 
unreasonably the importation of any description 
of goods in minimum commercial quantities, the 
exclusion of which would impair regular channels 
of trade, or restrictions which would prevent the 
importation of commercial samples, or prevent 
compliance with patent, trademark, copyright, or 
similar procedures; and 

"(iii) to apply restrictions under this article in 
such a way as to avoid unnecessary damage to 
the commercial or economic interests of any otlier 
Member." 

Quantitative restrictions, which are the concern 
of the ITO, and exchange restrictions, which are 

Ocfofaer 5, 1947 



the concern of the International Monetary Fund, 
are equally effective methods of controlling trade. 
It is essential, therefore, that these two organiza- 
tions work hand in hand. Article 24 of the char- 
ter provides for close collaboration between the 
ITO and the Fund. Members of the ITO are re- 
quired either to join the Fund or to make a special 
exchange agreement with the ITO which will be 
supervised by the Fund. Members are permitted 
to use exchange restrictions under the rules laid 
down by the Fund agreement but they must not 
be applied in such a way as to frustrate the intent 
of the rules laid down in the ITO charter. Finally, 
the ITO must consult fully with the Fund on all 
financial and balance-of-payments questions; 
must accept the findings of the Fund on all factual 
matters relating to foreign exchange, monetary re- 
serves, and balance of payments ; and must accept 
the determination of the Fund as to whether a 
country's financial position warrants the applica- 
tion of quantitative restrictions under the charter. 

Other Restrictions 

Agricultural quotas and balance-of-payments re- 
strictions are the two "large" exceptions to the rule 
against quantitative trade controls. There are a 
number of smaller ones. Permission is given for 
export restrictions on foodstuffs in critically short 
supply (for example, to cope with famine condi- 
tions) ; for import and export restrictions to en- 
force grading standards (for example, a prohibi- 
tion on imports of substandard tea) ; for import 
restrictions to make possible the giving away of 
surplus goods without creating disorderly mar- 
kets; for restrictions to prevent excessive exports 
of a product when the domestic price is controlled ; 
for restrictions applied imder an approved inter- 
governmental commodity agreement; and for re- 
strictions which are necessary to deal with price 
controls, short-supply arrangements, and war- 
created surpluses during a postwar transitional 
period, ending on January 1, 1951.^ 

Restrictions applied under many of these ex- 



^ The exceptions for restrictions under commodity agree- 
ments and for postwar transitional measures are provided 
for in article 43 (exceptions to all of the commercial policy 
chapter) rather than in article 20 (quantitative restric- 
tions), since measures other than quantitative restrictions 
may be necessary. 

665 



ceptions will tend to disappear as the after-effects 
of the war are overcome and production in areas hit 
by the war is restored. Other exceptions have a 
limited application and are likely to be used only 
in i-are instances. None of these exceptions is such 
as to impair the value of the general rule against 
quotas over the broad range of world trade. 

Nondiscrimination 

It is central to the purpose of the ITO to restore 
multilateral trading and eliminate discrimination 
in all its forms. While some discrimination is in- 
evitable so long as quantitative restrictions exist, 
article 22 of the charter seeks to make the admin- 
istration of quantitative restrictions conform as 
closely as possible to the most-favored-nation prin- 
ciple. If restrictions are applied to imports of a 
product from any country, they must be applied to 
imports of that product from all countries. They 
should, if possible, take the form of published 
quotas stating in advance the amount of the prod- 
uct that will be let in. If these quotas are allo- 
cated among countries, the allocations must be fair, 
and to this end the country applying the quota 
must either reach agreement witli all other coun- 
tries concerned or else base its allocation upon the 
trade in a past period considered to be representa- 
tive. If published quotas are not used and the re- 
striction takes the form of a licensing regulation, 
the licenses may not require or provide that the 
goods be imported from a particular country. 
Members using licensing systems are required, 
upon request, to give full information to other 
members regarding the administration of the sys- 
tem, the licenses gi-anted over a recent period, and 
the distribution of the licenses among supplying 
countries. 

There are necessary exceptions to the inile that 
quantitative restrictions must be nondiscrimina- 
tory. Article 23 recognizes that a country in bal- 
ance-of-payments difficulties may sometimes be 
able to conserve its monetary resei'ves and increase 
its imports by purchasing more than the normal 
share of imports from particular foreign coun- 
tries. This would be true, for example, if a coun- 
try, hard-pressed to find enougli foreign exchange 
to pay for all that it wanted to buy from abroad, 
had accumulated as part of its monetary reserves 
a stock of "inconvertible" foreign currencies 
which could not be used for payment everywhere 



in the world but only to pay for imports from 
a particular country. In such cases rigid enforce- 
ment of the rule of nondiscrimination would mean 
that the country concerned would have to forego 
imiDorting a product from country A, even though 
it was able to pay country A, solely because it 
was unable to import and pay for the like product 
of countries B, C, and D. In other words, too 
rigid an application of the rule of nondiscrimina- 
tion in such circumstances might tend to reduce, 
rather than enlarge, the total of world trade. 

Departures from the rule of nondiscrimination, 
no matter how justifiable in theory, are dangerous 
in practice. Unless closely controlled they are 
likely to lead to barter arrangements or other 
bilateral deals designed to obtain preferential mar- 
kets rather than to solve financial pi'oblems. Arti- 
cle 23, therefore, sets out a number of safeguards 
to keep discrimination within bounds and even- 
tually to place trading on a fully multilateral, 
nondiscriminatory basis. 

Discriminations based on financial considera- 
tions must first of all result in increased imports; 
they cannot be employed merely to divert trade 
from one source of supply to another. Secondly, 
the jjrices paid for the goods imported under dis- 
criminatory restrictions cannot be substantially 
higher than the prices of like goods available from 
other sources. This tends to limit the scope of dis- 
crimination and to minimize its harmful effects. 
Thirdly, the discrimination cannot be part of any 
arrangement which would reduce the country's 
supply of gold or convertible currencies. This rule 
is aimed against bilateral bargains to carve out 
preferential trading areas. Fourthly, import pro- 
grams involving discrimination must ultimately 
be directed to the goal of eliminating balance-of- 
payments difficulties and achieving the full con- 
vertibility of currencies. Fifthly, countries prac- 
ticing discrimination must keep the ITO regularly 
informed of what they are doing and, after March 
1, 1952, must obtain the approval of the ITO if they 
are to continue the practice. Sixthh', the ITO can 
at any time require a country to remove discrimi- 
nations which do not meet the criteria set out in 
the charter. Seventhly, if the ITO considers at any 
time that there is no longer a wide-spread dis- 
equilibrium in international trade, it may com- 
pletely suspend the operation of this exception to 
the general rule against discrimination. 

In addition to the provisions described above, 



666 



Department of Sfafe Bulletin 



there are certain other exceptions to the rule. 
Some of these are technical, being necessary to 
carry out the articles of agreement of the Inter- 
national Monetary Fund. Others are based on pro- 
visions in the Anglo-American financial agreement. 
One is a temporary arrangement permitting the 
maintenance of prefei-ential quotas on four or five 
specific products pending their outright elimina- 
tion by negotiation or their replacement by tariff 
preferences. 

Any fair review of the articles on quantitative 
i-estrictions in the Geneva charter must recognize 
that the exceptions to the rule against quotas are 
substantial. But they do not invalidate the rule. 
The practices which remain forbidden are more 



important for world trade in the years ahead than 
those which are permitted, and many of the latter, 
such as measures to protect balances of payments, 
will drop off or be disallowed as production and 
trade recover from tlie war. 

The charter is a long-range plan for intergov- 
ernmental cooperation in the conduct of basic 
trade policies. To work effectively it must fit the 
facts which face governments today as well as the 
hopes which motivate governments for tomorrow. 
The articles on quantitative restrictions are the 
product of a practical idealism ; they reflect aware- 
ness both of the conditions that exist and of those 
that must be established if the future is to be one 
of economic expansion instead of stagnation. 



III. Employment and Economic Development 



The Geneva draft of the charter for an interna- 
tional trade organization is the first document of 
common international understanding containing a 
well-reasoned body of economic ideas and objec- 
tives dealing with the interrelationships of pro- 
duction, employment, economic development, and 
world trade. The achievement is all the more 
notable because of the large measure of agreement 
reached by delegates, representing a variety of 
economic and political viewpoints, upon the basic 
interdependence of economic programs for the 
stabilization of production and employment and 
international programs for the liberation and ex- 
pansion of trade. 

No dissent or reservation was expressed by any 
delegate from the principles contained in chapter 
II, "Employment and Economic Activity". 
While there were a number of reservations made 
to specific provisions of chapter III, "Economic 
Development", none of these questioned the eco- 
nomic conceptions upon which tifie chapter's pro- 
visions were founded. 

There follow summaries of the basic concepts 
of the two chapters. 

The full development of international trade 
and the realization of the benefits to be derived 
from trade depend upon the maintenance and de- 
velopment of production, employment, and de- 
mand for goods and services throughout the world. 



The full development of trade-supporting demand 
depends upon the domestic policies of the coun- 
tries of the world specifically or generally directed 
to this end, including the development and main- 
tenance of fair labor standards, related especially 
to increasing levels of productivity, and upon the 
development of the potentialities and resources of 
the underdeveloped and underindustrialized por- 
tions of the world. Fuller economic development 
of the underdeveloped portions of the world, lead- 
ing to increased productivity of both industry and 
agriculture, depends upon the availability of eco- 
nomic resources, including capital for interna- 
tional investment, equipment, technology, and 
trained personnel, from the industrialized coun- 
tries which are in a position to supply them. 

Conversely, the failure of one country to main- 
tain domestic employment and demand may con- 
tribute to serious economic difficulties in other 
countries and to the breakdown of international 
trade and the diminution of its benefits. Unrea- 
sonable barriers to the acquisition of economic re- 
sources needed for developmental purposes will 
prevent expansion of production and demand and 
will perpetuate low standards of living in many 
parts of the world. 

These concepts have, for the most part, been 
incorporated in the charter in terms of the recog- 
nition of principles and objectives toward which 
the members of the Organization will strive in 



October 5, 1947 



667 



formulating their domestic programs. The dele- 
gates who drafted the Geneva text fully realized 
the great divergences of opinion that exist in the 
world and that may exist within a single nation 
concerning the proper selection of domestic pol- 
icies and measures to achieve these objectives. 
They sought, therefore, to preserve the widest 
latitude possible for a variety of domestic ap- 
proaches to the designated ends. 

A clear distinction is made in the language of 
the draft between the economic principles to which 
the members will give general recognition, sub- 
ject finally to their own best judgment, the re- 
sponsibilities which they undertake to perform 
in a prescribed manner, the obligations which they 
undertake to perform in consultation witli other 
members or in conjunction with international au- 
thority, and the situations in which the interna- 
tional authority itself is given a specific function 
to perform. 

The basic idea that the nations of the world have 
a common interest in the avoidance of unemploy- 
ment and underemployment is set forth (article 2) 
as a recognition of principle. This is followed by 
a statement that action in this field "must depend 
primarily on domestic measures", but that such 
measures should be supplemented by concerted in- 
tergovernmental action through whatever bodies of 
the United Nations, acting under the general spon- 
sorship of the Economic and Social Council, might 
appropriately be involved. 

The contracting members assume a positive obli- 
gation in article 3 with respect to the achievement 
and maintenance of "full and productive employ- 
ment and large and steadily growing demand", in 
language generally similar to that of the Full Em- 
ployment Act of 1946. The measures which the 
member takes shall be "appropriate to its political, 
economic and social institutions". The language 
of the charter further recognizes that fulfilment of 
these objectives may well be beyond the capacity of 
action by individual governments and that entirely 
well-intentioned measures may therefore fall short 
of their goal. The member's responsibility under 
the charter is not, therefore — and could not reason- 
ably be — the achievement of a state of full and pro- 
ductive employment but is the taking of "action 
designed" to achieve and maintain full and produc- 
tive employment. 

Similarly, the obligation toward the achieve- 



ment and maintenance of fair labor standards 
(article 4) is couched in terms of taking "whatever 
action may be appropriate and feasible" to elimi- 
nate substandard conditions of labor. In view of 
the prevalence of wide international differences in 
productivity, no attempt was made to establish any 
conception of international uniformity in labor 
conditions. The phrase substandard, for example, 
was left without further definition in full realiza- 
tion of the complexity of wage relationships within 
even a single country. Implementation of the pro- 
visions of this article are also a matter of domestic 
action. A change introduced into the Geneva draft 
of the charter adds to the domestic obligations of 
those members who are also members of the Inter- 
national Labor Organization an undertaking to 
cooperate with the ILO in achieving the objectives 
of this article. 

To reinforce the agreed-upon principle that do- 
mestic measures relating to employment, produc- 
tion, and demand bear an important relation to 
economic conditions in the rest of the world, the 
charter also attempts to insure that the measures 
taken by members to achieve full and productive 
domestic employment shall be of the kind which 
look toward the expansion of employment by 
means of the expansion of trade rather than by 
the building of uneconomic industry or the 
achievement of economic autarchy. Thus article 
3 provides that measures taken to sustain employ- 
ment, production, and demand shall be consistent 
with the other objectives and provisions of the 
charter, which envisage a minimum and diminish- 
ing quantity of trade restrictions. The article 
provides further, in the same vein, that members 
shall "seek to avoid" measures which would place 
other countries in difficult balance-of-payments 
situations. 

One of the most serious economic problems 
tackled in the charter is the question of domestic 
action to be taken when balance-of-payments dif- 
ficulties do arise. The charter recognizes that in 
the complex world of modern international eco- 
nomics, balance-of-payments difficulties arise be- 
cause of a variety and often a complexity of 
reasons. Cause or blame cannot readily be attrib- 
uted to the policies of any one nation. Sound 
economic policy, nevertheless, requires that all na- 
tions which may be involved in the problem co- 
operate to solve it, and that solutions be found 
favoring the expansion, rather than the restriction, 



668 



Department of Slate Bulletin 



of inteniiitioiuil trade. Accordingly, when an ex- 
cess of exports over imports in the trade of one 
iiuMubor country is a major factor in' the dllTiculties 
of otlier members, and when the possibility there- 
upon arises that the other members will have to 
take restrictive action to preserve domestic em- 
ployment, the member with the favorable balance 
of trade is to contribute to the working out of the 
common problem. Appropriate action must also 
be taken by the members adversely affected to ex- 
tricate themselves from their own difficulties. The 
kinds of measures to be used are, of course, to be 
decided by the governments concerned. 

The chapter on employment and economic ac- 
tivity emphasizes chiefly the attainment and main- 
tenance of full and productive employment. It 
is the chapter on economic development that looks 
to a major source of the future expansion of world 
trade through raising the jjroductivity and realiz- 
ing the potential capacity of relatively undevel- 
oped areas. The detailed provisions of the chai?- 
ter are designed to facilitate the basic pledge of 
the members in article 9 to develop progressively 
their own economic and industrial resources and 
to raise general levels of productivity in both in- 
dustry and agriculture. This will result in in- 
creased demand for goods and higher living 
standards. Increased diversification of industrial 
activity within the developing count rj^ may help 
to increase domestic ability to withstand a decline 
in foreign markets. An increased level of eco- 
nomic activity will add specialized, low-cost pro- 
ductive resources and demand for the products 
of other countries to the channels of international 
trade. 

While the responsibility for economic develop- 
ment is essentially a domestic one, it is of the sort 
which necessarily places heavy reliance upon the 
capital, teclmical, and industrial resources of the 
capital-exporting countries. Accordingly, the 
charter, in article 11, obligates members possess- 
ing such capital resources to impose no unreason- 
able impediments to their acquisition, on equitable 
terms, by countries needing them for economic 
development. 

The ITO itself is given essentially a coordinat- 
ing role with respect to the technical problems of 
development. Members in need of technical advice 
or financial assistance may come to the Organiza- 
tion for aid and the Organization will help them 

October 5, 1947 

762225 — 47 2 



to find such assistance. This may involve the tem- 
porary services of technical experts from several 
nations or the collaboration of another specialized 
intergovernmental organization, such as the Inter- 
national Bank foy Keconstruction and Develop- 
ment. 

Of at least equal importance are the expanded 
provisions in the charter for the equitable and se- 
cure treatment of investors, capital, and property 
of foreign nationals engaged in the kind of activity 
which is the cornerstone of economic development. 
In addition to a number of provisions for the min- 
imum security of private international investment 
which are written directly into the charter, the 
Organization is given general authority to spon- 
sor and promote international agreement on fur- 
ther principles relating to the conduct, practices, 
and treatment of foreign investment. Eventually, 
this international agreement should take shape as 
an investment code. 

The investment provisions included in the char- 
ter itself permit members to exclude all foreign in- 
vestments, if they wish, or to discriminate among 
the soui'ces from which they will accept them. 
They also permit members to maintain existing ar- 
rangements and to institute new arrangements 
which discriminate against new foreign invest- 
ments. But, in the case of existing investments or 
new investments, once they have been made, the 
charter requires each member to treat the investors 
of any other member as well as it treats its own in- 
vestors or those of any other country. The basic 
rule is that no new discriminatory measure can be 
applied to an investment after it has been made. 
A member may write its own rules, but it cannot 
change them after the beginning of the game. 

If a member should require that its own citizens 
jiarticii^ate in the ownership of a particular indus- 
try and if this requirement should involve a trans- 
fer of ownership from the nationals of another 
member, these nationals must be paid "just con- 
sideration" for the property they are required to 
sell. And if a member country should take over 
the ownership of a foreign enterprise, it must pay 
"just compensation" to the foreign nationals in- 
volved. - The terms just consideration and just 
compensation, moreover, are defined to cover all 
aspects of payment, including adequacy, time, and 
form. If any limitation is imposed on the trans- 
fer of payments into the currency of the foreign 
sellers of the property concerned, it must be con- 

669 



sistent with the provisions of tlie International 
Monetary Fund. 

Finally, the charter obligates members not to 
take "unreasonable or unjustifiable" action which 
would injure the rights or interests of foreign na- 
tionals who have supj^lied enterprise, skills, capi- 
tal, arts, or technology to the developing country. 

An important part of the problem of economic 
development is the question of protection for the 
infant industry. The commercial policy sections 
of the charter (chapter IV) permit the use of both 
tariffs and subsidies for economic development as 
well as for other aspects of commercial policy. 
The use of other protective measures, however, and 
particularly the use of quantitative trade restric- 
tions and discriminatory internal taxes, is severely 
limited. The use of protection is, of course, most 
appropriate where required for sound economic 
develojmient. Even in such cases the need to go 
beyond the use of tariffs and subsidies to the em- 
ployment of quantitative restrictions is limited to 
special situations. Moreover, quantitative restric- 
tions, once established, may be relatively more dif- 
ficult to remove than other measures used for the 
same purpose. Their establishment not only cre- 
ates protection for the domestic industry but fos- 
ters vested interests in specific directions of trade. 
And not of minor importance is the fact that it is 
frequently impossible to distinguish protection 
for economic development from protection for 
other purposes. 

Accordingly, the charter reserves the employ- 
ment of quantitative restrictions, even for the pur- 
pose of economic development, to those cases in 
which the nature of the development problem 
makes the use of other devices inappropriate or 
ineffective. The basic rule, set forth in article 13 
of the charter, is that a member must obtain the 
prior approval of the Organization for this use. 

This does not mean, however, that the Organiza- 
tion is given the power to review or veto the eco- 
nomic development plans of its members. Deter- 
mination of the nature and scope of the industries 
to be developed is exclusively the prerogative of 
the member country involved. The role of the 
Organization is limited to the determination of 
the one question : Is it necessary for the member 
to use methods of protection otherwise prohibited 
by the charter, rather than the methods which 
the charter allows, to accomplish its purpose of 
development ? 

670 



The requirement of prior approval for the use 
of quantitative restrictions in economic develop- 
ment was one of the most thoroughly debated por- 
tions of the Geneva draft. The underdeveloped 
countries contended strongly for freedom to im- 
pose restrictions subject to a provision allowing 
the ITO subsequently to examine the measures and 
to order their discontinuance. The procedures and 
standards finally agreed upon were designed to 
provide a fair balance between the possible need 
of the underdeveloped country to employ tempo- 
rary restrictive devices for developmental pur- 
poses and tlie broader interests of the world in 
preserving a trading community free from avoid- 
able restrictions. 

In recognition of the si^ecial problems of the 
underdeveloped country, a series of standards is 
provided which, if met by the member seeking to 
impose quantitative restrictions, would create a 
presumption in favor of approval. The chief of 
these standards are (a) that the proposed meas- 
ures be no more restrictive of international trade 
than tariffs or subsidies which the members could 
practically imjiose under the charter, and (6) that 
they are more suitable to the purpose than other 
available metliods of protection. 

Procedurally, the underdeveloped country is 
given the additional assurance of quick action by 
the Organization; the latter is obligated to act 
within a definite period of time. Moreover, if the 
development of an industry is threatened because 
the prospect of Organization approval of new re- 
strictions results in an unusual increase in imports 
of the products concerned, the member involved is 
permitted temporarily to adopt measures to deal 
with the situation. The Organization may also 
give approval to the institution of a new prefer- 
ential arrangement, otherwise prohibited by the 
charter, if it is designed to foster economic de- 
velopment. 

The basic requirement of prior action by the 
Organization, together with the Organization's 
power to surromid its approval with conditions 
and restrictions as to timing, is designed to pro- 
tect the interests of the rest of the world and to 
insure that restrictive measures will be considered 
coolly and impartially before they are instituted 
and take firm root. 

The approval which the Organization gives to 
(Continued on page 6S0) 

Department of State Bulletin 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 
Second Session of the General Assembly 

The Establishment of an Interim Committee of the General Assembly ^ 

UNITED STATES PROPOSAL 



The General Assembly 

Conscious of the responsibilities specifically 
conferred upon it by the Charter in relation to the 
maintenance of international peace and security 
(Article 11), the promotion of international co- 
operation in the political field (Article 13) , peace- 
ful adjustment of any matters likely to impair 
the general welfare and friendly relations among 
nations (Article 14) ; 

Deeming it necessary for the effective perform- 
ance of these functions to establish a committee 
for study, inquiry and discussion on its behalf 
during the period between the adjournment of 
the present session and the convening of the next 
regular session of the General Assembly (Article 
22); 

Recognizing fully the primary responsibility 
of the Security Council for prompt and effective 
action for the maintenance of international peace 
and security (Article 24) ; 
Resolves that 

1. An Interim Committee is created composed 
of all the Members of the United Nations, each 
Member to have one representative ; 

2. The Interim Committee shall assist the 
General Assembly by performing the following 
duties and functions : 

(a) to consider, as it may determine, such 
situations as may come to its attention within 
the purview of Article 14, or such questions 
as are brought before the General Assembly by 
the Security Council pursuant to Article 11 (2) , 
and to report thereon, with its recommendations 
to the General Assembly ; 

(b) to consider and to make recommenda- 
tions to the General Assembly upon general 
principles of co-operation in the maintenance of 
international peace and security under Article 
11 (1) and to initiate studies and make rec- 
ommendations for the purpose of promoting 

October 5, 1947 



international co-operation in the political field 
under Article 13 (I) (a) ; 

(c) to consider whether occasion may require 
the calling of a special session of the General 
Assembly and if it deems that such session is 
required, to so advise the Secretary-General ; 

(d) to conduct investigations and appoint 
commissions of inquiry within the scope of its 
duties and functions as it may deem useful and 
necessary ; 

(e) to study, report and recommend to the 
Third Regular Session of the General Assembly 
on the advisability of establishing a Committee 
of the General Assembly on a permanent basis 
to perform the duties and functions of the 
Interim Committee with any changes considered 
desirable in the light of its experience ; 

(f) to perform such other functions and 
duties as the General Assembly may assign to it. 

3. In discharging its duties and functions, the 
Interim Committee shall at all times take cogni- 
zance of the responsibilities of the Security Coun- 
cil under the Charter for the maintenance of 
international peace and security, and it shall also 
take duly into account the duties and functions 
assigned by the General Assembly or by the Secu- 
rity Council to any committee or commission, such 
as the Atomic Energy Commission, and the Com- 
mission for Conventional Armaments. 

4. The provisional rules of procedure of the 
General Assembly shall, so far as applicable, 
govern the jjroceedings of the Interim Committee 
and such sub-committees and commissions as it 
may set up. The Interim Committee shall elect 
its Chairman, Vice-Chairman, Rapporteur and 
such other officers as it may deem necessary. The 
Interim Committee shall be convened by the Secre- 
tary-Genei'al within fifteen days following the 



' U.N. doc. A/C. 1/196, Sept. 26, 194T, as corrected. 



671 



THE UNITBD NATIONS AND SPECIALIZED AGENCIES 

close of the Second Regular Session of the General 
Assembly, and it shall continue to serve until the 
beginning of the Third Regular Session of the 
General Assembly. 

5. The Secretary-General shall enter into suit- 
able arrangements with the appropriate authori- 



ties of any Member State in whose territory the 
Interim Committee or its sub-committees or com- 
missions may wish to sit or to travel. He shall 
provide necessary facilities and assign appropriate 
staff as required for the work of the Interim Com- 
mittee, its sub-committees and commissions. 



Threats to the Political independence and Territorial integrity of Greece^ 



UNITED STATES PROPOSAL 



Whereas 

The peoples of the United Nations have ex- 
pressed in the Charter of the United Nations their 
determination to practice tolerance and to live 
together in peace with one another as good neigh- 
bours and to unite their strength to maintain in- 
ternational peace and security ; and to that end the 
members of the United Nations have obligated 
themselves to carry out the purposes and principles 
of tlie Charter ; 
The General Assembly of the United Nations, 

Having considered the record of the Security 
Council proceedings in connection with the com- 
plaint of the Greek Government of 3 December 
1946, including the report submitted by the Com- 
mission of Investigation established by the Se- 
curity Council resolution of 19 December 1946, 
and information supplied by the Subsidiary Group 
of the Commission of Investigation subsequent to 
the report of the Commission : 

Finds that Albania, Bulgaria and Yugoslavia, 
in contravention of principles of the Charter of 
the United Nations, have given assistance and 
support to the guerrillas fighting against the 
Greek Govermnent ; 

Calls upon Albania, Bulgaria and Yugoslavia 
to cease and desist from rendering any further 
assistance or support in any form to the guerrillas 
fighting against the Greek Government; 

Calls upon Albania, Bulgaria and Yugoslavia 
on the one hand and Greece on the other to co- 
operate in the settlement of their disputes by peace- 
ful means, and to that end recommends 

(1) That they establish normal diplomatic and 
good neighbourly relations among themselves as 
soon as possible; 

'U.N. doc. A/C.1/191, Sept. 25, 1047. 
672 



(2) That they establish frontier conventions 
providing for effective machinery for the regula- 
tion and control of their common frontiers and for 
the pacific settlement of frontier incidents and 
disputes; 

(3) Tliat they co-operate in the settlement of 
the jDroblems arising out of the presence of refu- 
gees in the four States concerned through vol- 
untary repatriation wherever possible and that 
they take effective measures to prevent the par- 
ticipation of such refugees in political or military 
activity ; 

(4) That they study the practicability of con- 
cluding agreements for the voluntary transfer of 
minorities ; 

Establishes a Special Committee 

(1) To observe the compliance by the four gov- 
ernments concerned with the foregoing recom- 
mendations ; 

(2) To be available to assist the four govern- 
ments concerned in the implementation of such 
recommendations ; 

Recommends that the four governments con- 
cerned co-operate with the Special Committee in 
enabling it to carry out these functions; 

Authorizes tlie Special Committee, if in its 
opinion further consideration of the subject mat- 
ter of this resolution by the General Assembly 
prior to its next regular session is necessary for the 
maintenance of international peace and security, to 
recommend to the members of the United Nations 
that a special session of the General Assembly be 
convoked as a matter of urgency. 

The Special Committee 

Shall Consist of representatives of 



Depariment of State Bulletin 



Shall have its principal headquai-ters in 
Salonika and with tlio co-operation of the four 
governments concerned shall perform its functions 
in such places and in the territories of the four 
States concerned as it may deem appropriate; 

Shall render a report to tlie next regular ses- 
sion of the General Assembly and to any prior 
special session which might be called to consider 
the subject matter of this resolution, and shall 
render such interim reports as it may deem appro- 
priate to the Secretary-General for transmission 
to the ]\Iembers of the Organization; in any re- 
ports to the General Assembly the Special Com- 
mittee may make such recommendations to the 
General Assembly as it deems fit ; 

Shall determine its own procedure, and may 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

establish such sub-committees as it deems neces- 
sary; 

Shall commence its work as soon as practicable 

after , 1947, and shall remain in existence 

pending a new decision of the General Assembly. 

The General Assembly 

Requests the Secretary-General to assign to 
the Special Committee staff adequate to enable it 
to perform its duties, and to enter into a standing 
arrangement with each of the four governments 
concerned to assure the Special Committee, so far 
as it may find it necessary to exercise its functions 
within their territories, of full freedom of move- 
ment and all necessary facilities for the per- 
formance of its functions. 



Current United Nations Documents: A Selected Bibliography' 



General Assembly 

Agreement Between the United Nations and ttie United 
States of America Regarding the Headquarters of the 
United Nations. Signed at Lake Success on 26 June 
1947. Report by the Secretary-General. A/371, Sep- 
tember 3, 1947. 27 pp. mimeo. 

Registration and Publication of Treaties and Interna- 
tional Agreements. Report by the Secretary-General. 
A/3S0, September 4, 1»47. 2 pp. mimeo. 

Report of the Economic and Social Council to the Second 
Regular Session of the General Assembly. Covering 
the Period From 3 October 1946 to 17 August 1947. 
A/382, September 9, 1947. 92 pp. mimeo. 

Simultaneous Interpretation. Report of the Secretary- 
General. A/383, September 3, 1947. 4 pp. mimeo. 
Also A/383/Corr.l, September 12, 1947. 1 p. mimeo. 

Report of the Committee on Procedure for the Admission 
of New Members. A/384, September 12, 1947. 13 
pp. mimeo. 

Committee on Procedures and Organization. Measures 
To Economize the Time of the General Assembly. 
Note by the Secretariat. A/AC.12/9, September 10, 
1947. 12 pp. mimeo. 

Revision of the Provisional Rules of Procedure for 

the General Assembly. Memorandum by the Secre- 
tariat. A/AC.12/12, September 11, 1947. 37 pp. 
mimeo. 

General Committee. Proposed Allocation of Agenda 
Items to the Committees. Note by the Secretary- 
General. A/BUR/82, September 12, 1947. 5 pp. 
mimeo. 

Documentation of the Provisional Agenda and Supple- 
mentary List of Items to 11 September 1947. Pre- 
pared by the Documents Index Unit. A/INF/10, 
September 12, 1947. 6 pp. mimeo. 



The Journal of the General Assembly, Second Session, 
will be printed daily during the Assembly meetings. 

Draft Agreement Between the United Nations and the 
Universal Postal Union. A/347, September 2, 1947. 
5 pp. printed. [No price given.] 

Draft Agreement Between the United Nations and the 
World Health Organization, A/348, September 2, 1947. 
9 pp. printed. [No price given.] 

Draft Agreements Between the United Nations and the 
International Bank for Reconstruction and Develop- 
ment and the International Monetary Fund. A/349, 
September 2, 1947. 9 pp. printed. [No price given.] 

Report to the General Assembly by the United Nations 
Special Committee on Palestine. Annexes 1 to 21 and 
Appendix A/364/Add. 1, September 9, 1947. 157 pp. 
mimeo. [The Bulletin of September 21, 1947, on 
pp. 546-561, printed excerpts from this report] Also, 
A/364/Corr. 1, September 15, 1947. 1 p. mimeo. 

Official Records of the Second Session of the General As- 
sembly. Supplement No. 11. United Nations Spe- 
cial Committee on Palestine. Report to the General 
Assembly. Volume I. A/364, September 3, 1947. v, 
65 pp. printed. [750.] 

Volume III, Annex A : Oral Evidence Presented at 

Public Meetings. A/364, Add. 2. IV, 247 pp. printed 
[$2.00.] 

Draft Agreement Between the United Nations and the 
International Telecommunications Union. A/370, 
September 9, 1947. 7 pp. printed. [No price given.] 



^ 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. 



October 5, 1947 



673 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings ' 



Closed During Month of September 

IMO (International Meteorological Organization): Meeting of the Technical 
Commissions. 

Anglo-American Conversations Regarding German Coal Production . . . . 

Inter-American Conference on the Maintenance of Continental Peace and 
Security. 

International Exhibition of Cinematographic Arts 

FAO (Food and Agriculture Organization) : Annual Conference: Third Ses- 
sion. 

United Nations: 

Committee on Information From Non-Self-Governing Territories . . . 
ECOSOC (Economic and Social Council): 

Statistical Commission: Second Session 

Social Commission: Second Session 



WHO (World Health Organization): 

Committee on Administration and Finance 
Fourth Session of the Interim Commission . 



Fourth International Cancer Research Congress 
Committee on 1950 Census of the Americas . . 



ILO (International Labor Organization): Industrial Committee on Metal 
Trades. 

25th Session of the International Statistical Institute 

First General Assembly of the Inter-American Statistical Institute . . . . 

World Statistical Congress 



Second Annual Meeting of the Board of Governors of the International 
Bank for Reconstruction and Development. 

Second Annual Meeting of the Board of Governors of the International 
Monetary Fund. 



Cannes Film Festival 



ICAO (International Civil Aviation Organization): Meteorological 
Division. 

Pan American Sanitary Organization: Executive Committee 

In Session as of September 30, 1947 

Far Eastern Commission 



Toronto 



Washington . . 
Petropolis, Brazil 

Venice .... 
Geneva .... 



Lake Success . 

Lake Success 
Lake Success 



Geneva 
Geneva 



St. Louis . 
Washington 
Stockholm . 



Washington 
Washington 
Washington 
London . . 



London 



Cannes . 
Montreal 



Buenos Aires 



Washington .... Feb. 26- 



Aug. 4-Sept. 13 

Aug. 12-Sept. 10 
Aug. 15-Sept. 2 

Aug. 23- 2 

Aug. 25-Sept. 11 

Aug. 28-Sept. 12 

Aug. 28-Sept. 4 
Aug. 28-Sept. 13 

Aug. 28-Sept. 12 
Aug. 30-Sept. 13 

Sept. 2-7 

Sept. 2-8 

Sept. 3-15 

Sept. 6-18 
Sept. 6-18 
Sept. 8-12 
Sept. 11-17 

Sept. 11-17 

Sept. 12-25 
Sept. 17 (one day) 

Sept. 22-23 



' Prepared in the Division of International Conferences, Department of State. 
' Exact closing date not known. 



674 



Deparlmenl of State Bulletin 



Calendar of Meetings — Continued 



United Nations: 

Security Council 

Military Staff Committee . . 
Commission on Atomic Energy 



Commission on Conventional Armaments 
General Assembly 



ECOSOC (Economic and Social Council): 
tistical Sampling. 



Subcommission on Sta- 



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. 

Council of Foreign Ministers: 

Committee To Examine Disagreed Questions of the Austrian Treaty . . . 
Meeting of Deputies for Italian Colonial Problems 



International Radio Conference 

International Telecommunications Plenipotentiary Conference 

International High Frequency Broadcasting Conference . . . 

ICAO (International Civil Aviation Organization) : 

Legal Committee 

Joint Airworthiness-Operations Committee 

Aerodromes, Air Routes, and Ground Aids Division .... 



I MO (International Meteorological Organization) : Conference of Directors . 

Pan American Sanitary Organization: Directing Council 

ICEF (International Children's Emergency Fund) : Program Committee . . 
ECITO (European Central Inland Transport Organization) : Ninth Session . 

Scheduled for October-December 1947 

Conference of International Committee on Folk Art and Folklore 



ICEF (International Children's Emergency Fund): Meeting of Executive 
Board. 

Rubber Study Group: Meeting of Management Committee 

Third International Congress on Grapes, Grape Juice and Wine 



International Conference of National Tourist Organizations: General 

Assembly. 

United Nations: 

Narcotic Drugs Supervisory Body: 28th Session 

Narcotic Drugs Supervisory Body: 29th Session 



Lake Success . 
Lake Success . 
Lake Success . 



Lake Success . . . . 

Lake Success and 
Flushing Mead- 
ows. 

Lake Success . . . . 



Lisbon . . 
Madrid . . 
Washington 



Geneva 



Vienna 
London 



Atlantic City 
Atlantic City 
Atlantic City 



Brussels . 
Paris . . 
Montreal 



Washington 
Buenos Aires 
Lake Success 
Paris . . . 



Paris . . . . 
Lake Success . 



London . 
Istanbul . 
Paris . . 



Geneva 
Geneva 



1946 

Mar. 25- 
Mar. 25- 
June 14- 

1947 

Mar. 24- 
Sept. 16- 

Sept. 22- 

1946 

Sept. 3- 
Nov. 12- 
Oct. 24- 

1947 

Apr. 10- 

May 12- 
Sept. 30- 

May 15- 

July 1- 

Aug. 15- 

Sept. 10- 
Sept. 23- 
Sept. 23- 

Sept. 22- 

Sept. 24- 

Sept. 29- 

Sept. 29- 

Oct. 1-5 
Oct. 2- 

Oct. 2-3 
Oct. 2-7 
Oct. 4- 



Oct. 6-11 
Nov. 17-22 



Ocfofaer 5, J 947 



675 



Calendar oj Meetings — Continued 



United Nations — Continued 

ECE (Economic Commission for Europe) : 

Panel on Housing Problems 

Committee on Electric Power 

Subcommittee on Timber 

Committee on Inland Transport 

Committee on Industry and Materials 

Committee on Coal 

ECOSOC (Economic and Social Council) : 

Subcommission on Employment and Economic Stability 

Subcommission on Economic Development 

Commission on the Status of Women: Second Session 

Subcommission on Protection of Minorities and Prevention of Dis- 
crimination. 

Human Rights Commission: Second Session 

Transport and Communications Commission: Second Session 

International Conference on Trade and Employment 

ECAFE (Economic Commission for Asia and the Far East) 

Trusteeship Council: Second Session 

Permanent Central Opium Board 

International Maritime Conference 

International Conference on Livestock Production 

International Tin Study Group: Meeting of Management Committee . . . 

Sixth Pan American Congress of Architects (Including Pan American Ex- 
hibits of Architecture and City Planning). 

First Pan American Consultation on History 

WHO (World Health Organization) : Expert Committee on the Revision of 
the International Lists of Causes of Death and Morbidity. 

National Exhibition and Meeting of Cartography and Optics 

ILO (International Labor Organization) : 

Preparatory Regional Asian Conference 

103d Session of Governing Body 

Joint Maritime Commission 

Anglo-American Discussion on Financial Provisions of Bi-Zonal Economic 
Fusion Agreement. 

lEFC (International Emergency Food Council) : Fifth Meeting 

Second Preliminary Meeting of Experts of Red Cross 

17th Session of the International Wheat Council 



Special Committee To Make Recommendations for the Coordination of 
Safety Activities in Fields of Aviation, Meteorology, Shipping, and Tele- 
communications. 

NARBA (North American Regional Broadcasting Agreement) : Meeting of 
Technicians. 

UNESCO (United Nations Educational, Scientific and Cultural Organiza- 
tion) : 

Executive Board: Fourth Session 

General Conference: Second Session 



1947 



Geneva 

Geneva 

Geneva 

Geneva 

Geneva 

Geneva 


Oct. 7- 
Oct. 9-15 
Oct. 15-17 
Oct. 20-24 
Nov. 15-20 
Nov. 18-22 


Lake Success .... 
Lake Success .... 
Lake Success .... 
Geneva 


Nov. 17- 
Nov. 17- 
Nov. 17- 
Nov. 24- 


Geneva 

Lake Success .... 

Habana 

Baguio, Philippines . 
Lake Success .... 

Geneva 

Geneva ^ 


Dec. 1- 
Dec. 8- 
Nov. 21- 
Nov. 24- 
Nov. 24- 
Nov. 24- 
November ' 


Zurich 


Oct. 8-9 


Brussels 


Oct. 9-10 


Lima 


Oct. 15-25 


Mexico City .... 


Oct. 18-23 


Geneva 


Oct. 21- 


Florence, Italy . . . 


Oct. 27-Nov. 9 


New Delhi 

Geneva 

Geneva 


Oct. 27-Nov. 10 
Dec. 8- 
December 


Washington .... 


Early October 


Washington .... 


October 


Stockholm 


October 


Washington .... 


Late October or 
November 


London 


October 


Habana 


Nov. 1- 




1947 


Mexico City .... 
Mexico City .... 


Nov. 1- 
Nov. 6-Dec. 3 



' Tentative. 



676 



Department of State Bulletin 



Calendar of Meetings — Continued 



ICAO (International Civil Aviation Organization): Special Conference on 

Multilateral Aviation Agreement. 

Inter-Amorican Conference and Committee on Social Security 

Council of Foreign Ministers: 

Session of 

Meeting of Deputies for Germany 

Arts and Handicrafts Exhibition of American School Children 

Fifth Meeting of the Caribbean Commission 



Geneva . . . 

Rio de Janeiro 

London . . . 
London . . . 

Montevideo . 

Trinidad . . 



1947 

Nov. 3- 

Nov. 10- 

Novembcr 
November 

November 

Dec. 1-6 



Activities and Developments 



U.S. DELEGATION TO SIXTH PAN AMERICAN 
CONGRESS OF ARCHITECTS 

[Released to the press September 25] 
The Department of State announced on Sep- 
tember 25 that the President has approved the 
composition of the United States Delegation to the 
Sixth Pan American Congress of Architects which 
is scheduled to be held at Lima, Peru, October 
15-25, 1947. The Delegation is as follows : 
Clwirman 

Julian Clarence Levi, Chairman of Committee on Inter- 
national Relations, American Institute of Architects, 
New York City 

Deleffates 

Marshall A. Shaffer, Chief, Office of Technical Services, 
Division of Hospital Facilities, U.S. Public Health 
Service 

Ralph Walker, American Institute ^f Architects, New York 
City 

Samuel I. Cooper, American Institute of Architects, At- 
lanta, Ga. 

Lewis P. Hobart, American Institute of Architects, San 
Francisco, Calif. 

This Congress, whiclr is one of a series begun in 
1920, brings together qualified technical persomiel 
to discuss problems and review progress in Ameri- 
can architectui'e. Among the topics to be discussed 
at the Congress are : American architecture and its 
influence on present continental architecture ; char- 
acteristics and functions of planned community 
units in the cities of the Americas; and new con- 
struction methods and materials. An exhibit of 



pan- American architecture and city planning will 
be held in conjunction with the Congress. 

The Fifth Pan American Congress of Architects 
was held in Montevideo, Uruguay, in March 1940. 



U.S. DELEGATION TO AIRWORTHINESS 
COMMITTEE OF ICAO 

[Released to the press September 18] 

The Department of State announced on Sep- 
tember 18 the composition of the United States 
Delegation to the joint Airworthiness-Operations 
Special Committee meeting of the International 
Civil Aviation Organization (icao), which is 
scheduled to open at Paris on September 23, 1947. 
The chairman of the Delegation will be Kobert 
D. Hoyt of the Civil Aeronautics Board and the 
vice-chairman, Raymond B. Maloy of the Civil 
Aeronautics Administration. Advisers are Rob- 
ert W. Ayer, American Airlines, representing the 
Air Transport Association of America; John A. 
Carran, Civil Aeronautics Administration ; Allan 
W. Dallas, Air Transport Association of America ; 
Kendall G. Hathaway, Civil Aeronautics Board; 
W. E. Koneczny, Civil Aeronautics Board ; Joseph 
Matulaitis, Civil Aeronautics Administration; 
Philip A. Colman, Lockheed Aircraft Corpora- 
tion; W. Bailey Oswald, Douglas Aircraft Cor- 
poration, representing the Aircraft Industries As- 
sociation; and Howard B. Cox, representing the 
Air Line Pilots Association. 



October 5, 7947 



677 



ACTIVITIBS AND DBVELOPMBNTS 

It is expected that representatives from approx- 
imately 15 nations will attend the meeting. The 
iCAO Council at Montreal approved the con- 
vening of this Special Committee in order to clar- 
ify the issues raised by temperature accountability 
as they relate to aircraft performance in airline 



operations. The recommendations expected from 
this meeting will be presented to the Airworthi- 
ness and Operations Divisions of icao at their 
next meetings in Montreal for approval and pro- 
mulgation as standards in International Air Route 
Operations. 



International Meteorological Organization: 
of Conference of Directors 



Opening Session 



ADDRESS BY ASSISTANT SECRETARY NORTON > 



If there is one subject that need not be im- 
pressed upon scientists whose realm is the atmos- 
phere, it is the subject of international cooperation. 
The sphere of the meteorologist completely en- 
velops the earth. It moves mihindered from 
country to country and from continent to conti- 
nent without passport or permission when it 
crosses coast lines and international boundaries. 
Meteorologists know the importance of interna- 
tional cooijeration, and I understand that you have 
been successful in working together for the com- 
mon good in weather science for almost a century. 
The first World Congress in Meteorology was as- 
sembled in Europe in 1853, primarily for the pur- 
pose of dealing with the weather and climate of 
the oceans. As most of you in this room will know, 
the International Meteorological Organization was 
established in 1878. That is nearly seven decades 
ago. Seventy years of almost continuous coopera- 
tion and progress in a world organization is a rec- 
ord which you should, and undoubtedly do, find 
very gratifying. It is a record that other world 
organizations are earnestly striving to emulate. 
In view of your long and successful history in in- 
ternational cooperation and the high aims of your 
organization, it is a genuine pleasure as well as a 
gi-eat honor to me, speaking for the Secretary of 

'Delivered at the Pan American Union Building in 
Wasliington, on Sept. 22, 1947, and released to the press 
on the same date. Garrison Norton is Assistant Secretary 
of State for transport and communications. 

678 



State and on behalf of the United States of Amer- 
ica, to extend a most cordial welcome to you, the 
Directors of the official meteorological services of 
the world, and to your technical colleagues. You 
have our best wishes for and our confidence in the 
future success of. your work. We are indeed ha^ipy 
that you are convening in Washington for this 
sexennial meeting of the Conference of Directors. 
It is quite appropriate that you should have this 
meeting in Washington after all these years. It is 
fitting also that your opening meeting is in this 
building. Many of you will recall that the West- 
ern Hemisphere was colonized not only by men 
who sought fame and fortune on a new continent 
but also by those who were inspired with a deep 
desire for liberty and freedom of thought and 
worship and refuge from political oppression — 
men who stood for* the most altruistic aims and 
wanted and sought peace and international good- 
will. Although modern concepts of human liberty 
and democracy were born in the Old World and 
liave long been nurtured there, the pioneering en- 
vironment of the Western Hemisphere and its 
"new world" was particularly favorable for 
growth and development of the ideals of interna- 
tional cooperation. Here these ideals have been 
extended in practical use, and the building in 
which we are now assembled is one evidence of 
cooperation among nations in the Western Hemi- 
sphere. The International Bureau of American Re- 
publics, predecessor to the present Pan American 
Union, was established in 1890. It is the official 

Department of State Bulletin 



organization of the 21 republics of this Hemi- 
sphere for the purpose of developing closer 
cooperation among these nations. It was i-eorgan- 
ized in 1907 to form the Pan American Union of 
today. 

A few moments ago I referred to the first World 
Congi-ess on meteorological matters held in 1853. 
One of the advocates and organizers of that Con- 
gress was Matthew Fontaine Maury, a naval officer 
who contributed much to the study of winds over 
the oceans. Most of Maury's work was carried on 
in Washington, and it is therefore pleasing to us 
and an honor to Maury's memory that this first 
meeting of the Conference of Directors of the In- 
ternational Meteorological Organization outside of 
Europe is being held here in Washington where 
distinguished meteorologists from many different 
countries have often collaborated in the past. 

Your success during the past century has been 
due, I am told, to a number of factors. Perhaps 
foremost is the world-wide nature of weather 
science, which gives the meteorologists a global 
outlook and an appreciation of international co- 
operation. You deal with one of the most complex 
of the physical sciences, and your success and 
future progress depend veiy much upon a com- 
plete knowledge of conditions throughout the at- 
mosphere. You exchange weather reports daily 
and in some cases hourly. For many years you 
have had a universal language for this purpose in 
the form of an international weather-reporting 
code. Language differences and international 
boundaries present no barrier to your exchange of 
information. I am informed that your technical 
commissions, whose meetings have just been con- 
cluded in Toronto, have proposed further improve- 
ments for exchange of weather information be- 
tween countries and for uniform practices in chart- 
ing the weather and sending forecasts and warn- 
ings of storms which affect travel by sea and air 
and in one way or another exert an influence on 
many phases of agi-iculture, commerce, industry, 
and transportation. As your new standards for 
observing and measuring the weather are studied 
and adopted in your forthcoming meetings here, 
you will strengthen the foundation upon which to 
build an era of progress that will bring you the 
gratitude of men and women throughout the world 
who use your weather services. 

A second reason for your success is the common 



ACTIVITIES AND DEVEiOPMENTS 

bond of interest in things scientific and technical. 
You exchange views on technical matters because 
you are interested in the search for scientific 
truths. You have been fortunate in avoiding most 
of the time the more uncertain and selfish motives 
that complicate and hinder cooperation in some 
fields of international interest. I hope you can 
always keep foremost in mind the teclinical and 
scientific nature of your work so that your relation 
ships may be as free as possible from the obstacles 
and problems of political science. The benefits of 
your growing knowledge of weather and climate 
have spread to almost every kind of human activity 
regardless of location and national allegiance. De- 
velopments in transportation by land, sea, and air 
have added greatly to your responsibilities. Avia- 
tion is the latest and most exacting in its demands 
on the meteorologist. During the last decade or 
two you have made enormous progress in the use 
of weather reports and forecasts in safety-in-air 
transportation. At the same time aviation has 
furnished the means of assisting you in your search 
for information of the upper atmosphere and has 
added new knowledge in your three-dimensional 
realm over regions heretofore unexplored. This in 
turn has enabled you to extend the benefits of 
meteorological science still further into new fields 
of application. I feel sure that the world today 
needs the services of the meteorologist more than 
any time in history. In some respects weather is 
one of the most important factors in international 
relationship today. Food is vital in our plans for 
world cooiJeration, and every increase in our 
knowledge of weather is reflected in our food pro- 
duction. The world needs your help in solving 
some of its problems, and your efforts surely will 
bring greater comfort and safety and will con- 
tribute to a higher standard of living for all 
peoples. 

In our welcome to you we therefore have in mind 
a broader future than the science of meteorology 
alone. Certainly we are interested in your tech- 
nical success and in the new constitution for the 
world meteorological organization which you will 
consider here. But we also believe that your 
achievements will contribute in some measure to 
the aims of permanent world peace and prosperity 
toward which the nations of the world are work- 
ing. To our expressions of welcome we add our 
earnest wishes for outstanding success in the work 
of your Conference of Directors. 



Ocfober 5, 1947 



679 



U.S. DELEGATION 



[Released to the press September 22] 

The Department of State has announced the 
composition of the United States Delegation to the 
Confefence of Directors of the International 
Meteorological Organization (IMO), which is 
scheduled to be held at Washington from Septem- 
ber 22 to October 7, 1947. The Delegation is as 
follows : 

Chairman 

Francis W. Reichelderfer, Chief, U.S. Weather Bureau 

Technical Advisers 

H. R. Byers, University of Chicago 

John M. Cates, Division of International Organization 

Affairs, Department of State 
G. Van A. Graves, Commander, U.S.C.G., Chief, Aerology 

and Oceanography Section, Office of Operations, U.S. 

Coast Guard 
Delbert M. Little, Assistant Chief for Operations, U.S. 

Weather Bureau 
Howard T. OrvlUe, Capt., U.S.N., Aerology Section, Navy 

Department 
Ivan B. Tannehill, Chief, Division of Synoptic Reports 

and Forecasts, U.S. Weatlier Bureau 
D. N. Yates, Brig. Gen., Chief, Air Weather Service, Army 

Air Forces 

The United States, host Government to the Con- 
ference, has extended invitations to those govern- 
ments which have a meteorological service affili- 
ated with the IMO. The last Conference of Di- 
rectors was held at Warsaw in 1935, and an ex- 
traordinary meeting was held at London in Feb- 
ruary and March 1946. 

The forthcoming Conference of Directors will 
study and, if approved, will put into effect the 
resolutions of the 10 Technical Commissions of 
the IMO which met at Toronto last month. Among 
the other items on the provisional agenda of the 
Conference are: discussion of a world mete- 
orological convention, report of the president of 
the International Meteorological Committee, and 
tlie relation of the IMO to the United Nations. 

The International Meteorological Organization, 
created in 187G, held its first official congress at 
Kome in 1879. A nonconventionary organization 
of the directors of recognized state meteorological 
services of the world, the IMO has for its purposes 
to assist in developing, improving, and standardiz- 
ing meteorological services for agriculture, avia- 

680 



tion, industry, transportation, and commerce; to 
aid in codes for excliange of current weather infor- 
mation ; to assist in world-wide meteorological re- 
search ; and to serve as a source of meteorological 
information. The authority of organization is 
vested in the Conference of Directors, composed 
of directors of national meteorological services. 



Employment and Economic Development — 

Continued from page 670 

an underdeveloped nation is in the nature of au- 
thorization to engage in restrictive measures which 
the member has agreed under the charter not to 
employ. There may be cases, however, in which 
the member involved is committed not to use such 
restrictive measures by agreement with another 
member, aside from its adherence to the charter. 
In such cases, if the Organization has agreed in 
jjrinciple to the institution of tlie measures pro- 
posed for economic development, its role will be 
to mediate any differences that may arise. 

The effectiveness of the charter provisions con- 
cerning employment and economic development 
are less dependent upon the Organization ma- 
chinery than is the case with the provisions of the 
charter respecting commercial practices, tariff 
negotiations, commodity agreements, and cartels. 
Tlie effectiveness of these two chapters rests upon 
the undertakings of the members who have obli- 
gated themselves to the ends already described. 
If tliese ends can be realized, world trade and 
economic activity will not only operate at rising 
levels, but the stage will be set for easier operation 
of the remaining provisions of the charter. 

Corrigendum 

In the Bulletin of September 21, 1947, the first 
paragraph, page 546, under the "Report to the 
General Assembly by the United Nations Special 
Committee on Palestine — Preface" should be 
transposed to page 543 as the last paragraph of 
the address by the Secretary of State entitled 
"Faith and Fidelity — American Pledge to the 
United Nations". 

Department of State Bulletin 



THE RECORD OF THE WEEK 



Meeting of the Committee of European Economic Cooperation 



STATEMENT BY THE RAPPORTEUR GENERAL' 



In the name of the Committee of European Eco- 
nomic Cooperation, I have the honor to submit 
for your approval the general report which you 
have instructed us to prepare on the present Euro- 
pean situation, covering the requirements of 
Europe and a program for its economic recovery. 
This report is in response to the suggestion of Mr. 
Marshall, Secretary of State of the United States, 
in his historic speech of June 5, 1947.^ It has been 
prepared by the sixteen European countries repre- 
sented here, in the course of work, which has been 
carried on in Paris between July 12 and September 
22, 1947.= 

The circumstances in which this report has been 
drawn up give it the character of an initial report. 
Supplementary reports, taking account in particu- 
lar of the development of the international eco- 
nomic situation, will be published later. 

The present work consists of two volumes. The 
first contains the general reports consisting of a 
preamble and seven chaj)ters, together with a cer- 
tain number of appendices including the report of 
the Balance of Payments committee. 

In the second volume, there appear the reports 
of the technical committees: Food and Agricul- 
ture, Energy, Steel, Transport, Timber, the Com- 
mittee of Financial Experts and the Committee on 
y Labor. 

The sixteen participating countries, which have 
an aggregate population of 270,000,000 persons and 
which before the war accounted for nearly half the 
world's trade, find themselves in a critical situa- 
tion as a result of the destruction of the war, the 
paralysis of their commercial relations, and the 
exhaustion of their financial resources. 

The United States, by the assistance which it 
has furnished us, has already saved our continent 
from chaos and disaster. Unfortunately, the ex- 
tent of the problem has proved to be greater than 

October 5, 1947 



had been foreseen. The disorganization produced 
by the war was much more far-reaching and the 
obstacles in the way of recovery more formidable 
than could have been realized even six months ago. 

Since the Committee of Cooperation began its 
work the situation has continued to deteriorate 
due to persistent shortage of coal, continued price 
increases, and the exhaustion of reserves of gold 
and foreign exchange. Europe, which was mak- 
ing a rapid recovery from the devastations of the 
war, today sees the bases of its economy danger- 
ously threatened. The repercussions of this situ- 
ation are felt in all sectors of the world economy. 

The report which we are submitting to you to- 
day proves that a remedy is possible for the ill- 
ness, which, in greater or less degree, aflfects all 
European nations. This remedy must be found 
first of all in the individual and collective effort 
of the nations, but the full effect of that effort 
cannot be hoped for without exterior assistance. 
Such assistance in the present circumstances can 
come, for the most part, only from the United 
States of America. 

In view of this grave situation, the sixteen par- 
ticipating nations have made certain undertak- 
ings of mutual cooperation taking account of sim- 
ilar undertakings made by the other participating 
countries. These undertakings fall principally 
into the three following classes: production, in- 
ternal economic and monetary stabilization and 
European cooperation. 



' Made on the occasion of the presentation of the general 
report to the Paris Conference, and released to the press 
on Sept. 22, 1947. Herv6 Alphand of France served as 
Rapporteur General. ' 

' Bulletin of June 15, 1917, p. 1159. 

^ The following countries participated in the meeting: 
United Kingdom, Austria, Belgium, Denmark, France, 
Greece, Iceland, Ireland, Italy, Luxembourg, the Nether- 
lands, Norway, Portugal, Sweden, Switzerland, and Turkey. 

681 



THE RECORD OF THE WEEK 

A. The governments of the sixteen countries 
are committed to make every eflfort to develop 
their national production, in order to attain the 
objectives specified in the report. In particular, 
they undertake to reach by 1951 the following pro- 
duction targets : 

1. To restore to the pre-war level the produc- 
tion of cereals and milk, to increase substantially 
the production of sugar, of potatoes and of fats 
and to expand livestock products; 

2. To increase the production of coal by 145,- 
000,000 tons above the 1947 level; 

3. To increase the production of electricity by 
70 billion kilowatt hours above the 1947 level ; 

4. To develop refining capacity by 17,000,000 
tons; 

5. To increase steel production by 80 percent 
above 1947. 

The sixteen nations consider that the linking 
together of their production efforts in this way 
should be an imiDortant contribution to the 
achievement of the programs they have set for 
themselves. 

B. Nevertheless they recognize that the suc- 
cess of this program depends upon the reestablish- 
ment and maintenance of their financial and 
monetary stability. 

The governments of the participating countries 
have undertaken to carry out, independently of 
any external assistance, the internal measures 
within their power in fiscal and currency matters 
as also in the field of production in order to re- 
strict forthwith calls on the Banks of issue as well 
as other inflationary measures and to increase 
the production of consumer and capital goods. 
They fully recognize that for the program to be 
successful stabilization must be effected as rapidly 
as possible and that in this respect the year 1948 
has a crucial importance. If, in the course of that 
year, the anticipated measures can be taken, a con- 
siderable volume of hoarded goods and gold will 
be brought back into normal circulation and will 
contribute to the improvement of the situation. 
But the effort which ought to be made in budgetary 
revision and in stabilizing the internal economy 
can be effectively carried out only with external 
assistance. 

C. In addition to the immense task of carrying 
out the i^roduction and stabilization plans elab- 
orated by the various countries, numerous forms 

682 



of mutual assistance between the participating 
countries have been developed by the work of the 
committees: measures tending to free the move- 
ment of goods and services within Europe, to 
establish between these countries and with the 
rest of the world a sound multilateral trading 
system, in conformity with the principles of the 
draft charter for an international trade organiza- 
tion. Tlie committee has also provided for the 
immediate study of plans for European customs 
unions, and the most efficient development through 
collective action of European resources, such as 
electrical energy, equiiDment, steel production, etc. 

These are the different subjects involving the 
efforts of the individual nations and the efforts of 
European collective action which must precede or 
accompany any constructive plan for the recovery 
of Europe. 

However, in order to carry out their production 
effort the participating countries recognize that 
they must receive a large and continuous flow of 
goods and services from the rest of the world and 
in particular from the American continent. An 
import program has been developed for these 
countries covering the period from 1948 to 1951. 
This program concerns at the same time food goods 
for current consumption, coal and raw materials, 
which are now in such short supply, and those items 
of equipment which are indispensable to permit 
Europe to reestablish its production, but it should 
be pointed out that the probable consumption level 
in 1951 will not exceed the pre-war level. It ap- 
23ears in fact from the report that on the best pos- 
sible hypotheses, the foodstuffs existing in the 
world will not be sufficient to provide Europe its- 
pre-war consumption. 

These studies show as well that it is principally 
America that can provide these imports by reason 
of tlie exhaustion of the resources of Asia and 
eastern Europe. 

This import program, essential for the pro- 
duction effort, raises most difficult financial 
questions. 

The deficit in the balance of payments is a funda- 
mental fact which reflects the necessity for Europe 
to supply itself from abroad without having ade- 
quate domestic production to support a sufficient 
level of exports. The report illustrates this fact 
by financial tables, showing the deficit in the bal- 
ance of payments for the sixteen countries between 

Department of State Bulletin 



1948 and 1951. These tables show that the deficit 
with the Aiiiericrtn continent, while constantly di- 
minishing, will aggregate during the four j'ears 
approximately 22.4 billion dollars, reflecting, 
among other items, 3 billion dollars, representing 
the cost of industrial equipment capable of being 
financed by the International Bank or other 
sources of credit. The amount of 22.4 billions 
'cannot be considered as indicating the amount of 
special assistance which will be necessary. A part 
of the deficit can in fact be covered by borrowing 
from the International Bank, private credits, and 
certain financial resources which the participating 
countries still have available. Yet it is clear that 
these resources can make only a small contribu- 
tion. It should also be noted that most of the 
participating countries will have dollar payments 
to make in other parts of the world as well as in 
America. 

These calculations take account of assumptions 
as to the diminution of certain temporally imports 
from America resulting from the reestablishment 
of more normal relations with the Asiatic continent 
and eastern Europe, the increase of European pro- 
duction, and modifications in general price con- 
ditions. 

If these assumptions are realized, if the Euro- 
pean efforts bring about their anticipated results, 
and if sufficient external assistance is available, 
there is every reason to believe that at the end of 
1951 the sixteen European countries will be in 
position to go forward without further special 
external assistance. 

Thus the report which we submit to you repre- 
sents an experiment without precedent in Euro- 
pean economic cooperation. The task, however, is 
not finished. 

On one hand it will be necessary to present to the 
Government of the United States the completed re- 
port, and if necessary the Committee of Coopera- 
tion can, after mutual consultation, be reconvened 
by its president so as to furnish any necessary ad- 
ditional information. 

On the other hand, if the external means neces- 
sary for cari-ying through the program are made 
available to us, it is intended to create a joint or- 
ganization charged with the task of reviewing the 
progress made and collecting information from 
the different governments regarding their prog- 
ress. This organization will be of a temporary 

October 5, 1947 



THE RECORD OF THE WEEK 

character and will cease to exist when the special 
assistance necessary to the recovery of Europe 
has come to an end. 

In the course of our work the representatives of 
the various participating countries have felt with 
regret the absence of the other European countries 
which did not find themselves able to participate in 
this task. They hope that some day a larger col- 
laboration will be created among all of the Euro- 
pean countries. They have indicated that to con- 
tinue the work of cooperation undertaken in Paris 
they are prepared to proceed to an exchange of 
views with the other European nations whose re- 
sources could contribute to the solution of the prob- 
lem they are facing. These conferences should so 
far as possible take place within the framework 
of the United Nations. 

Gentlemen, our report gives, we believe, an ob- 
jective summary of the European situation. It is. 
now for the American people, through their Ad- 
ministration and their Congress, to examine our 
program and to consider whether the means of 
supplying our needs can be found so that Europe 
can be assured of a better economic future which is 
indispensable to the stability and prosperity of the 
world. 



Committee of European Economic Cooperation 

The Department of State released on September 26 
Committee of European Economic Cooperation: Vol- 
ume I — General Report (Publication 2930, European 
Series 28) . This Report was signed on September 22, 
1947, by representatives of Austria, Belgium, Den- 
mark, Eire, France, Greece, Iceland, Italy, Luxem- 
bourg, the Netherlands, Norway, Portugal, Sweden, 
Switzerland, Turkey, and the United Kingdom, who 
have been engaged in the preparation of the report 
in Paris since July 12, 1947. 

Volume I consists of a general statement of the 
problems of European economic recovery, the plans 
of the European countries concerned to meet these 
problems, and the assistance which these countries 
believe to be necessary from the United States and 
other "non-European countries and agencies to re- 
store their economic position. 

Volume II, which will be released at a later date, 
will contain the reports of the technical subcom- 
mittees of the Conference. 



683 



SUMMARY OF THE GENERAL REPORT 



[Released to the press simultaneously in the U. S. 
and the 16 European capitals on September 22] 

1. The report is designed primarily as a close 
and careful analysis of the maladjustments which 
have resulted from the war and as an examination 
of what the participating countries can do for 
themselves and for each other to work towards a 
lasting solution. 

2. The scale of the destruction and dislocation 
of the second World War was greater than that of 
the first. Agricultural and industrial production 
was severely reduced, traditional sources of food 
and raw material supply were cut off, so that when 
the war was over the devastated countries had to 
start again almost from the beginning. Thanks 
to the great efforts of the European countries 
themselves and to the generous assistance of the 
United States, other countries, and ttnrra, recov- 
ery proceeded fast. But it was not maintained 
in the winter of 1946-1947, and the European 
economy suffered a serious setback. Coal con- 
tinued in short supply and the lack of it curtailed 
industrial production. Food and other commodi- 
ties remained scarce and the prices of food and 
primary products rose. The foreign exchange re- 
sources of the participating countries had, there- 
fore, to be drawn upon heavily. An exceptionally 
severe winter was followed by a long drought and 
intensified these difficulties, so that by the summer 
of 1947 the earlier hope of a quick recovery had 
receded. 

3. As the work of the Committee of Cooperation 
was proceeding, the foreign exchange crisis con- 
tinued to gather momentum. A number of coun- 
tries had to impose further import restrictions, ex- 
cept for the purchase of cereals, coal and other 
essential supplies. Action on similar lines is 
likely to become necessary in the near future in 
most of the participating countries. The early 
recovery is now halted and the crisis is deepening. 
The circumstances in which the report has been 
drawn up give it the character of an initial report. 
To deal with any amendments which appear desir- 
able it may be necessary to publish supplementary 

684 



reports which take account of the development of 
the international economic situation. 

4. The purpose of the report is to formulate an 
economic recovery program for the participating 
countries which is aimed at putting Eui-ope on its 
feet by the end of 1951. This recovery program is 
based upon four lines of action : 

1. A strong production effort by each of the 
participating countries. 

2. The creation of internal financial stability. 

3. The maximum cooperation between the 
participating countries. 

4. A solution of the problem of the participat- 
ing countries trading deficit with the American 
continent, particularly by exports. 

5. The participating countries are normally 
dependent on a large volume of imports — raw 
materials, feeding-stuffs, and in certain cases 
food — from the rest of the world. Traditionally 
these were paid for partly by export of goods and 
services and partly by income from overseas in- 
vestments. Because of the dislocation caused by 
the war, import needs are temporarily larger than 
normal, investment earnings have been reduced 
and exports have not yet been able to attain the 
level to redress the balance. The problem before 
participating countries and the basic aim of the 
recovery program is thus to revive and expand 
their production, so as to eliminate abnormal de- 
mand on the outside world and produce for ex- 
port the increased volume of goods required to 
pay for the imports the participating countries 
will continue to need. 

6. The report assumes a high degree of self- 
help by the countries concerned, and mutual help 
between them. In order to ascertain what could 
be achieved, technical committees were set up to 
make a special examination of agriculture, fuel 
and power, steel, timber and transport, together 
with the related industries, such as agricultural 
and mining machinery, and the general problem 
of manpower. The recovery program is designed 
to achieve the following total results by 1951 : 

Department of State Bulletin 



1. Restoration of pre-war bread, grain, and 
other cereal production, with large increases 
above pre-war in sugar and potatoes, some in- 
creases in oils and fals, and as fast an expansion 
in livestock products as supplies of feeding- 
stuffs will allow. 

2. Increase of coal output to 584 million tons, 
i.e., 145 million tons above the 1947 level (an 
increase of one-third) and 30 million tons above 
the 1938 level. 

3. Expansion of electricity output by nearly 
70 billion KWH or 40 percent above 1947 and 
a growth of generating capacity by 25 million 
KW or two-thirds above pre-war. 

4. Development of oil refining capacity in 
terms of crude oil throughout by 17 million tons 
to two and one-half times the pre-war level. 

5. Increase of crude steel production by 80 
percent above 1947 to a level of 55 million tons 
or 10 million tons (20 percent) above 1938. 

6. Expansion of inland transport facilities 
to carry a 25 percent greater load in 1951 than 
in 1938. 

7. Restoration of pre-war merchant fleets of 
the participating countries by 1951. 

8. Supply from European production of most 
of the capital equipment needed for these ex- 
pansions. 

The various countries have undertaken to use all 
their effoi'ts to develop their national production 
in order to achieve these targets. Of particular im- 
portance are the French and Italian grain pro- 
duction programs which aim at recovering pre-war 
levels by 1951 and the United Kingdom coal pro- 
duction program whicli is designed to exceed the 
pre-war level by 1951. These production pro- 
grams taken as a whole represent an expansion of 
output similar in general scale to that achieved by 
the United States in the mobilization years 1940- 
44. This production effort provides the founda- 
tion for a sound and workable European economy. 

7. The creation of internal financial stability in 
certain countries is a necessary condition for the 
accomplishment of their production programs 
and undertakings have been given by the countries 
concerned to apply all necessary measures to lead 
to the rapid achievement of this stability. Tlie 
quick success of stabilization will, to a very large 
extent, depend on adequate foreign assistance being 
available during the period when stabilization is 



THE RECORD OF THE WBBK 

being achieved. No precise calculation can be 
made of each of the countries concerned at the time 
when stabilization is undertaken. But from such 
estimates as can be made the amount likely to be 
required would be of the order of $3,000 million. 

8. The maximum use will be made by the partici- 
pating countries of their own raw material re- 
sources, manpower, and productive capacity. This 
process will be stimulated by measures to be taken 
to secure progressive relaxation of import re- 
strictions to improve payments arrangements be- 
tween the various countries and to transfer surplus 
labor. An announcement has already been made 
about the setting up of a customs union study 
group which will make a first report within three 
months of its being convened. The French Gov- 
ernment has stated that it is ready to commence 
negotiations with all European governments who 
wish to enter a customs union with France and 
whose national economies are capable of being 
combined with the French economy in such a way 
as to make a viable unit. The Italian Government 
has associated itself with this declaration. 

9. Apart from mutual help designed to increase 
supplies of scarce commodities and to increase the 
flow of trade between the participating countries, 
agreement has been achieved on collective action on 
special problems as follows: 

1. A series of projects is being developed for 
common planning of the exploitation of new 
sources of electric jjower. The plan selected 
by the committee provides for erection of a 
series of power jDlants to exjDloit the hydro- 
electric resources of the Alps, certain German 
lignite deposits, and Italian reserves of geo- 
thermic energy. This work involves the coop- 
erative development of resources cutting across 
frontiers, and the decisions are being taken with- 
out regard to national frontiers. The common 
planning required is now proceeding. 

2. Encouragement of the standardization of 
mining and electrical supplies and freight cars. 

3. Examination of the possibility of securing 
the more efficient use of freight cars by pool- 
ing arrangements and by international study of 
the flows of traffic. 

4. Arrangements for the interchange of in- 
formation by the steel producing countries about 
their jDrograms of modernization and extension 
so that each country may take account of plans 
made by the others. 



Ocfofaer 5, 1947 



685 



THE RECORD OF THE WEEK 

10. Arrangements have been made for continu- 
ing the work of mutual help and consultation be- 
gun in Paris both through the United Nations 
machinery and in other ways. A joint organiza- 
tion charged with the task of reviewing progress 
made in the execution of the program is also 
contemplated. 

11. The report shows that even after taking 
full account of the supplies which they can pro- 
duce for themselves, and which they can hope to 
obtain from the rest of the world, the participat- 
ing countries will require large quantities of food, 
fuel, raw materials and capital equipment from 
the American continent. Without this flow of 
goods the whole recovery program will be in 
jeopardy. The requirements stated take account 
of the supplies likely to be available. They do 
not represent extravagant importing. Food con- 
sumption at the end of the period will be less than 
the pre-war level and the estimates are framed 
on the basis that gasoline rationing and in many 
countries restrictions on consumption of food, 
clothing, and gasoline (for non-essential pur- 
poses) will continue to be necessary. 

12. The scale of the problem is shown by the 
combined deficit of the participating countries 
and western Germany with the American con- 
tinent, which is given in the following tables. 
The size of the deficit is to a large extent attrib- 
utable to lack of supplies formerly available from 
eastern Europe, southeast Asia, and other non- 
European sources. It may be possible to meet 
part of the deficit through the International Bank 
for Development and Reconstruction, private in- 
vestment, and credit operations, and for a few 
countries by the use of their available assets. 





($000 million) 




1948 


1949 


1950 


1951 


Total 


USA 


5.64 
1.94 


4.27 
1.82 


3.28 
1. 30 


2.62 
.91 


15. 81 


Rest of American conti- 
nent 


5.97 






Deficit of dependent terri- 
tories -_ 


7.58 
.46 


6.09 
.26 


4.58 
.07 


3. 53 
*. 13 


21.78 
.66 






Total 


8.04 


6.35 


4.65 


3.40 


22.44 







Estimated imports from the American con- 
tinent include equipment as well as commodities 
such as food and coal. If imports of equipment, 
other than agricultural machinery and coal min- 
ing machinery to which special considerations 
apply, were financed by loans from the Interna- 
tional Bank or by other credit operations, the 
deficit remaining to be dealt with could be re- 
duced as follows : 





($000 million) 




1948 


1949 


1950 


1951 


Total 


Deficit as shown in above 
table 


8.04 
.92 


6.35 
.89 


4.65 
.70 


3.40 
.60 


22.44 


Less equipment assumed 
to be financed by In- 
ternational Bank, etc., 
etc -. 


3. 11 






Total 


7.12 


5.48 


3.95 


2.80 


19.33 







• Surplus. 
686 



13. The need for an intense effort to expand ex- 
ports from the participating countries to the rest 
of the world is recognized throughout the report 
as essential to help reduce the deficit over the four- 
year period. Given favorable world conditions, it 
is estimated that the participating countries and 
western Germany at the end of the period will have 
a substantial surplus in their trading account with 
non-participating countries other than those of the 
American Continent. For the year 1951 this is 
tentatively estimated as $1,800 million and for 
the four-year period at $2,810 million. Only if 
there is a sufficient flow of dollars to the rest of the 
world to enable the participating countries to earn 
dollars, or their equivalent, for this surplus, will it 
be possible to offset this surplus against the dollar 
deficit with the American Continent. 

14. The report emphasizes that while the first 
element of the recovery programme must be to 
increase European production, it will be impossible 
to right the problem unless market conditions in 
the American Continent allow both Europe and 
other parts of the world to sell goods there in in- 
creasing quantities. The maladjustment between 
the productive power and resources of the Ameri- 
can Continent and the participating countries is 
due to many causes and cannot be righted by Euro- 
pean action alone. The purpose of the report is 

Deparfment of State Bulletin 



to submit proposals for the necessary restorative 
action on tlie European side by production, stabil- 
ization and cooperation between the participating 
countries, but tliis cannot complete the task. The 
report concludes with the following phrases: 

"The problem which the Committee of Co-oper- 
ation has been working to solve in Paris is the af- 
termath of the war. The Committee now submits 
its proposal for the necessary restorative action on 
the European side by production, stabilisation and 
co-operation between the participating countries, 
as well as by measures to stimulate the free flow of 
goods and services. These proposals are rein- 
forced by definite and specific undertakings by 
each of the countries concerned. But these under- 
takings can be successfully carried out only with 
the assurance of a continued flow of goods from the 
American Continent; if that flow should cease the 
result would be calamitous. Europe's dollar re- 
sources are running low. One country after an- 
other is already being forced by lack of dollars 
to cut down vital imports of food and raw materials 
from the American continent. If nothing is done 
a catastrophe will develop as stocks become ex- 
hausted. If too little is done, and if it is done too 
late, it will be impossible to provide the momentum 
needed to get the programme under way. Life in 
Europe will become increasingly unstable and un- 
certain; industries will grind to a gradual halt 
for lack of materials and fuel, and the food supply 
of Europe will diminish and begin to disappear. 

"In these circumstances the pai-ticipating na- 



THE RECORD Of THE WBCK 

tions have welcomed the opjiortmuty to prepare 
and present to the United States a statement of 
their plans and requirements. Through meetings 
between representatives of the United States and 
of the participating nations, the details of that 
statement can be filled in and the means of recovery 
more precisely defined. 

"In the last analysis the external means of re- 
covery can in largest measure only come from the 
United States, which has by its assistance in the 
last two years already rescued Europe from col- 
lapse and chaos. Unfortunately the size of the 
problem has proved greater than was expected ; the 
disruj^tion caused by the war was more far-reach- 
ing and the obstacles to recovery more formidable 
than was realised even six months ago. This report 
contains, it is believed, a realistic appreciation of 
the situation. In it the participating countries 
have set out the facts as they see them and on the 
basis of those facts have formulated a recovery 
programme. Their programme is based upon the 
fullest use of their existing productive capacity. 
In drawing it up they have sought to reduce their 
needs from the American continent to the mini- 
mum consistent with its achievement. The Amer- 
ican people, through their Government and their 
Congress, will consider this programme to deter- 
mine whether the means can be found of supply- 
ing those needs. On their decision will depend 
whether Europe can achieve economic stability 
and thereby be enabled to make her full contribu- 
tion to the welfare of the world." 



STATEMENT BY ACTING SECRETARY LOVETT 



[Released to the press September 24] 

The report of the Committee of European Eco- 
nomic Cooiaeration is being transmitted by Secre- 
tary Marshall to the President. The President 
will comment on the report in the near future, so 
I do not wish to comment on the report itself at 
this time. 

However, the appropriate facilities of the Gov- 
ernment are fully mobilized to analyze the report. 
The same facilities have, in general, been used 
for some time past on such preliminary informa- 
tion as we have had from Paris. 

October 5, 1947 



A steering commiltee, chairmanned by a rep- 
resentative of the State Department and includ- 
ing representatives of the President and of the 
Secretaries of Treasury, Commerce, Interior, 
Army, and Navy, and other interested agencies, 
is advising me as to the assignment of various seg- 
ments of the task and is performing over-all co- 
ordination. It will also assist in putting together 
the over-all picture as the technical analyses 
progress. 

The National Advisory Council, of which the 
Seci-etary of the Treasury is the Chairman, is 

687 



THE RECORD OF THE WEEK 

analyzing those portions of the report which are 
primarily financial or fiscal in character. The Ex- 
ecutive Committee on Economic Foreign Policy, 
of which the Secretary of State is Chairman, is 
considering the broad economic-policy questions 
raised by the report. The section of the report 
dealing with food is being referred to the sub- 
committee of the President's Cabinet Committee 
on World Food Problems, of which the Secretary 
of Agriculture is Chairman. Those sections of the 
report dealing with requirements other than food 
have been assigned to working groups chair- 
mamied in many cases by officials of the Depart- 
ment of Commerce, which is responsible under 
existing legislation for the control of exports from 
the United States. The work of these various 
groups will be closely coordinated with the work 
of the Harriman, Krug, and Nourse committees, 
and the results of the work, as it proceeds, will 



be available to the interested committees of the 
Congress to the extent those committees desire. 

We have kept the Harriman, Krug, and Nourse 
conmiittees supplied with certain advance infor- 
mation we have received from Paris and hope to 
avail ourselves of this specialized and broad 
knowledge as the analysis goes on. Particularly, 
we hope to keep closely in touch with Mr. Harri- 
man's committee and the specialist groujps formed 
within that committee. 

We are inviting some of the participants of the 
Paris Conference to come over to this country 
early in October to give us further information 
on the make-up of their report. We understand 
that the Conference is glad to make these people 
available, and we hope they will aid us in speed- 
ing our analysis to its conclusion. 

As to steps after the analysis, you will be in- 
formed in due course. 



STATEMENT BY THE PRESIDENT 



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

The Secretary of State has transmitted to me the 
official report of the Committee of European Eco- 
nomic Cooperation, prepared by the representa- 
tives of 16 nations who have been meeting in Paris 
since early July. At my request Secretary Mar- 
shall is sending a message to the chairman of the 
Committee, Foreign Minister Bevin, acknowledg- 
ing recei^Jt of the rejjort by the United States 
Government. 

As the document itself states, it is an "initial re- 
port" and is subject to review and revision. None- 
theless, it reflects an unprecedented effort at eco- 
nomic cooperation by the 16 countries participat- 
ing in the Paris Conference. In the light of the 
political tensions and the economic instability in 
Europe, it is an important and encouraging first 
step that these nations had the initiative and deter- 
mination to meet together and produce this report. 

The problem to which this report is addressed 
not only underlies the political and economic well- 
being of Europe but is also of key importance to a 
stable peace in the world. The people of the 
United States recognize, as do the people of the 
European nations, that the earliest practicable 

688 



achievement of economic health, and consequent 
political stability, in Europe is of utmost impor- 
tance for the peace and well-being of the world. 

I note that the progi-am presented in the report 
is based on the four following lines of action by 
the 16 European nations: (1) a strong productive 
effort; (2) the creation of internal financial sta- 
bility; (3) maximum cooperation among the par- 
ticipating countries; and (4) a solution to the 
trading deficit with the American Continent, par- 
ticularly by exports. These are sound principles 
and will apjieal to the common sense of the Ameri- 
can people. Their effective translation into prac- 
tice is vital both to European recovery and to 
world-wide economic health. 

Wliile the 16-nation Committee has been meet- 
ing in Paris, the United States Government has 
been proceeding with complementary studies on 
this side of the Atlantic. 

Last June I appointed three committees to study 
the relationsliip between aid which may be ex- 
tended to foreign countries and the interests of our 
domestic economy. One of these, headed by the 
Secretary of the Interior, has been making a study 
of the state of our natural resources. Another of 



Department of State B 



uUetin I 



these studies, relating to the impact on our national 
economy of aid to other countries, is being con- 
ducted by the Council of Economic Advisers. The 
tliird group, a nonpartisan committee of distin- 
guished citizens under the chairmanship of the 
Secretary of Commerce, was requested to deter- 
mine the cliaracter and quantities of United States 
resources available for assistance to foreign coun- 
tries and to advise the President on the limits with- 
in which the United States may safely and wisely 
plan to extend such assistance. 

Other agencies of the Executive Branch of the 
Government have also been considering the role 
wliich should be played by the United States in 
European recovery. 

The great interest of the Congress in this subject 
has been demonstrated by the number of its mem- 
bers whom it has sent abroad to study prevailing 
conditions at first hand. 

We shall need to consult with representatives of 
the European Committee to obtain clarification 
and amplification of the initial rejDort and to ob- 
tain further information, as it becomes available, 
as to the specific measures to be adopted by the 
participating countries in carrying out the prin- 
ciples set forth in the report. 

I am requesting the special committees which I 
appointed and other Government agencies to ap- 
l^raise the information received from the European 
Committee in the light of the studies they have 
conducted. The results of this appraisal will be 



THE RECORD OF THE WEEK 

made available to the appropriate congressional 
committees. 

On the basis' of these studies, which will go for- 
ward without delay, the facts will be presented and 
recommendations will be fornmlated so that the 
American people through their representatives in 
Congress can determine to what extent and in 
what manner the resources of the United States 
may be brought to the support of the renewed 
European efforts to achieve sustained economic 
recovery. When the American people are satis- 
fied as to the scope of the necessary program and 
the sufficiency of measures of self-help and mutual 
heljj being taken by the European countries and 
when we can determine what resources we should 
and can wisely make available, I am sure that we 
shall respond as quickly as possible. 

Meanwhile, certain problems have arisen in con- 
nection with the economic situation in Europe that 
are of such an urgent nature that their solution 
cannot await the careful study required for the 
over-all decisions which will be based on the re- 
ports. These problems are of an emergency nature 
which demand immediate attention. 

It is for this reason that I have requested a group 
of congressional leaders to meet with me on Mon- 
day, September 29th, to discuss plans for deter- 
mining the action to be taken by the United States 
to aid in preserving the stability and promoting 
the recovery of the nations which participated in 
the Paris Conference. 



LETTERS OF ACKNOWLEDGMENT 



[Released to the press September 26] 

Text of letter from the Secretary of State to Chair- 
man of Commiittee of European Economic Co- 
operation Ernest Bevin, dated Septemher 25, 19^7 

Dear Mr. Bevin : I wish to acknowledge re- 
ceipt of your letter of September 22, 1947 enclos- 
ing a document signed by all the Delegates of 
tlie Paris Conference and their Initial Eeport. 
I have transmitted these papers to the President. 

I shall be grateful if you will forward to the 

October 5, 7947 



Delegates my enclosed message addressed to the 
Committee. 

Faithfully yours, 

George C. Marshall 

Text of a letter from the Secretary of State to the 
Committee of European Econo7nic Cooperation, 
dated Septemher 9,5, 191^7 

Dear Sirs : I have received your letter of Sep- 
tember 22 and your Initial Report, which I have 
transmitted to President Truman. 

689 



THE RECORD OF THE WBtK 

I wish to convey to the representatives partici- 
pating in the Paris Conference a recognition of 
the intensive work which has been involved in 
consideration of so complex a problem in so short 
a time. 

The fiict that sixteen nations have worked in 
such close cooperation to produce the report is an 
important accomplisliment. 

As stated by the President today, the report will 
be studied by the United States governmental 
agencies, the Members of Congress, and the spe- 



cial committees of American citizens who have 
been called together to review the availability of 
American resources in relation to foreign needs. 
We expect to consult with representatives of the 
European Conference to obtain any necessary fur- 
ther information, and will consider any supple- 
mentary reports which the Committee may find it 
desirable to publish. 

Faithfully yours, 

George C. Marshall 



The Cabinet Committee on World Food Programs 

STATEMENT BY THE PRESIDENT 



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

I am making public today a report from the 
Cabinet Committee on World Food Programs 
which emphasizes a critical situation calling for 
immediate action by every American.^ The report 
stresses the extremely grave food situation abroad 
and the relationship between our ability to help 
meet urgent foreign food needs and the price 
situation in the United States. 

The Committee states that adverse crop develop- 
ments, including those of recent weeks, both in 
North America and in Europe, make apparent a 
food shortage even worse than a year ago. The 
losses from heavy frosts in northwestern Europe 
last winter have been increased by a general Euro- 
pean drought this spring and summer. Any sig- 
nificant cut in the already low rations in those 
countries will have most serious consequences for 
their rehabilitation. 

In the face of this situation, the report shows 
that, without further action, we would be able to 
carry through a large export program; but, as a 
result of sharjily reduced corn production and con- 
tinued high domestic demand for grain, exports 
would not equal last year's total shipments — even 
though world needs are greater. 

The United States cannot rest on this export 
prospect. To ship more abroad without adjust- 
ments in domestic demand, however, would ag- 
gravate our own price situation. 

In presenting their report the Cabinet Conunit- 
tee stressed the urgency of doing everything pos- 

' For text of the report see White House press release 
of Sept. 25, 1947. 

690 



sible to meet the problem at home and abroad. It 
recommended further emphasis on shipments of 
food other than grain in rounding out our export 
program and on arrangements for the fullest par- 
ticipation by other nations in the combined effort 
to increase available supplies and to channel them 
to points of greatest need. 

The Committee made it clear, however, that 
definite steps to conserve on use of foodstuffs at 
home and reduce the feeding of grain to livestock 
will be essential if we are to make our fullest con- 
tribution towards meeting minimimi foreign needs 
and at the same time relieve the upward pressure 
on prices at home. 

As a primary step, I am therefore appointing a 
Citizens Food Committee to advise on ways and 
means of carrying out the necessary conservation 
effort. Charles Luckman of Cambridge, Massa- 
chusetts, will serve as chairman of this non-parti- 
san committee. I am asking the Citizens Food 
Committee to meet at the earliest possible moment 
to develop plans for bringing the vital problem of 
food conservation to the attention of every Ameri- 
can for action. 

At the same time, I am establishing a working 
organization which will mobilize the resources of 
the Government in support of the over-all pro- 
gram. I will also confer with the congressional 
leaders of both parties regarding legislative action 
which may be necessary. 

While waiting for detailed recommendations 
from the Citizens Committee, there is one immedi- 
ate and personal thing each of us can do. We can 
start now to conserve by being more selective in 
foods we buy, particularly livestock products 

Department of State Bulletin 



whose production requires large quantities of 

grain. Such action on our part will do two things. 

-We will save on our family budget and we will help 



THE RECORD OF THE WEEK 

others who are in desperate need. I am confident 
that the American people, realizing the extreme 
seriousness of the situation, will cooperate fully. 



The 1947-1948 Grain-Export Program 



LETTER TO THE PRESIDENT FROM THE SECRETARY OF COMMERCE 



[Released to the press by the White House September 27] 

September ^, 19Jfl. 

Dear Mr. PREsmENT : I submit herewith a spe- 
cial interim report on grain export policy which 
has been prepared for your use and information 
by your Committee on Foreign Aid. 

As you know, the Committee will not arrive at 
final recommendations on any of the problems 
which you have asked it to study until there has 
been an opportunity to evaluate the report of the 
Paris Conference, and to compare the import re- 



quirements of participating countries with the 
volume of United States resources which may be 
available for export. However, in view of the 
urgency of the food crisis in Europe, and the ne- 
cessity for immediate decisions with respect to 
grain procurement by the United States Govern- 
ment, the Committee, at my suggestion, has con- 
sidered these issues and expressed its judgment 
upon them at this time. 
Respectfully, 

W. A. Harrtman 



The President made the following statement on 
June 22 upon creating three committees to study the 
relationship between foreign aid programs and the 
domestic economy : 

The impact upon our domestic economy of the as- 
sistance 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 wliich our businessmen, 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 aiding such recovery 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 guid- 
ance in the formulation of national policy. 

Accordingly, I am creating immediately three com- 
mittees 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 economy. Two of these 
studies will be conducted within the Government ; the 
third will be conducted by a non-partisan committee 
of distinguished citizens headed by the Secretary of 
Commerce. 

Of the two studies to be conducted within the Gov- 
ernment, one will deal with the state of our national 
resources, and will be made by a committee of spe- 
cialists under the direction of the Secretary of the 
Interior. The other governmental study will deal 
with the impact on our national economy of aid to 
other countries, and will be conducted by the Council 
of Economic Advisers. 

The non-partisan committee will be requested to 
determine the facts with respect to tlie character and 
quantities of United States resources available for 
economic assistance to foreign countries, and to ad- 
vise 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 domestic 
economy. This committee will be drawn from rep- 
resentatives of American business, finance, labor, 
agriculture and educational and research institu- 
tions. 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. 



Ocfober 5, J947 



691 



REPORT OF THE COMMITTEE ON FOREIGN AID 



1947-48 Grain-Procurement Program 



1. The Urgency of the Problem 

World requirements for grain during the cur- 
rent 1947-48 season cannot be met ■without the ex- 
port from the United States of a larger tonnage 
than was exported in the 1946-47 crop year. Yet 
in the face of the expanded requirements it would 
be extremely difficult for the U.S. even to main- 
tain last season's rate of export because of the 
reduced size of this year's corn crop. No more 
corn will be available for export during the pres- 
ent crop year. How much wheat we can acquire 
and export depends primarily on how much is fed 
to livestock, poultry, dairy, hogs, and beef. Poul- 
trymen, dairymen, and meat animal feeders are 
currently making their decisions on whether to 
trim down the numbers in their herds and flocks 
or to acquire feed to carry them through the year. 
As the weeks pass, more and more of our wheat 
supply is being acquired for eventual consumption 
by livestock, thus increasing the difficulty of meet- 
ing export needs. 

If the Department of Agriculture merely covers 
its needs from month to month, a situation will 
probably develop early next year in which it will 
be physically impossible to meet even reduced ex- 
port commitments. It is, therefore, essential that 
a firm export program be formulated in the imme- 
diate future and that procurement plans be made 
which will assure our ability to meet whatever 
export commitments are undertaken. This In- 
terim Report of the President's Committee on 
Foreign Aid is submitted to convey the Commit- 
tee's judgment on certain of the issues involved, to 
draw attention to the basic questions that need 
to be answered, and to urge the importance of 
reaching decisions upon them now. 

2. West European Requirements 

The basic facts about European requirements 
for imported grain are these: First, Western 
Europe is regularly a deficit area heavily depend- 
ent upon imjDorts of grain for human consumption 
and for animal feeding. Before the war, grain 
imports averaged over 22,000,000 tons a year, about 
half bread grains and half coarse grains. Second, 

692 



the recovery in agi-icultural production since the 
war has been uneven and incomplete. In the ex- 
neutral countries and in Norway, the Netherlands, 
and the United Kingdom food and feed grain 
crops in 1946 were above prewar. But in the other 
Central and Western European ex-belligerent 
countries (which are much more important grain 
producers) 1946 gi-ain crops were only about 80 
per cent of prewar. Third, adverse weather condi- 
tions in 1947 reduced Western European grain 
crops some 5 million tons below those of 1946. Con- 
sequently, to maintain the same level of diet (in 
terms of calories per person per day) as in the 
season just ended, imports of grain into Western 
Europe would have to be five million tons larger. 
The grain production and imports of the Western 
European countries are summarized in the follow- 
ing figures. The 1947-48 import requirements 
stated in this table are the amounts necessary to 
maintain the total grain availability in 1947-^8 
at the same level as 1946-47. (The countries in- 
cluded are the Paris Conference countries other 
than Iceland, Turkey, and Portugal and with the 
addition of the three Western zones of Germany.) 

Grain Peoduction and Imports of Selected 
EuBOPEAN Countries 

(Millions of tons) 





1933-37 


1946^7 


1947-48 


Production 


28.8 

22.4 


25.0 
21. 1 




Bread grains 

Coarse grains 


19.9 
21.2 


Total 


51.2 


46. 1 


41. 1 


Imports 


10. 3 

8. 9 


12. 4 
4. 3 




Bread grains 

Coarse grains 


17.4 
4. 4 


Total 


19.2 


16.7 


21.8 



The urgency of European requirements is indi- 
Deparfment of Sfafe Bulletin 



THB RECORD OF THE WECK 



cated by the followinfj comparison between the 
prewar diet and (ho 11)4(3-47 diet for (he wliole of 
Western Europe and for certain critical nations. 



Importing Areas 



Imports 





1933-37 


1946^7 




Calories per per- 
son per day 


Average entire population 

Average non-farm population 

Austria — non-farm (est.) 


2830 
2850 
2850 
2850 
2450 
2550 
2800 


2470 
2300 
1950 


Germany — " " " 

Greece— " " " 

Italy— " " " 

France— " " " 


1950 
2100 
1950 
2200 



The above figures are not limited to nourishment 
received in the form of bread grain but include 
tlie calory vahie of all elements in the diet. One 
feature of the European food shortage stands out 
clearl}'. The main problem is to supply the non- 
farm population, especially in the large urban 
centers. Thus, any measure of the average diet 
of the whole of Western Europe is of little sig- 
nificance. The urgency of the need is determined 
bj' the situation of certain gi'oups in the popula- 
tions of the five countries listed separately above, 
in which the discrepancy between present and pre- 
war diets is the greatest. 

3. The World Position 

To the extent of nearly two million tons the 
increase in Western European requirements is ex- 
pected to be offset by an increase in the supplies 
available this crop year from major exporting 
areas other than the United States. Exports from 
Canada are expected to be smaller this season than 
last but shipments from Argentina, Australia, and 
other exporting countries should be larger. The 
world supply-demand situation is as follows (in 
millions of tons) : 



Exporting Areas 


1946-47 


Estimated 
1947-48 




Exports 




14.7 

13.4 


15.0 


Other areas 


15. 4 






Total 


28. 1 


30.4 



Western Europe 
Other areas . . 

Total . 




These figures indicate a world deficit of approxi- 
mately 3 million tons of grain even on the assump- 
tions that , European imports are limited to the 
amount necessary to maintain the grain supplies 
of last year, that requirements from other areas 
are no greater than they were last year, and that 
U.S. can make 15 million tons of grain available 
for export — a possibility discussed below. 

It is possible that the gap can be reduced 
through some reduction in the imports of areas 
other than Western Europe and some further in- 
ci'ease in shipments from exporting areas other 
than the United States. 

No careful examination has yet been made of the 
requirements of the non-European importing 
areas. The preliminaiy view of the International 
Emergency Food Committee staff is that require- 
ments will be at least as large as last year. How- 
ever, examination now in progress may reveal pos- 
sibilities of diversion to Western Europe. 

The major area from which there would appear 
to be some possibility of increasing exports is Ar- 
gentina. It is estimated that stocks of all grains 
were some 4,000,000 tons larger on July 1, 1947 than 
on the same date a year ago and are now extremely 
heavy. The limiting factor on shipments is not 
physical availability of grain but rather price 
problems and the ability to move it to seaboard. 
It is believed to lie within the jjower of the Argen- 
tine Government, given sufficiently powerful in- 
ducements, to secure the export of a larger tonnage 
than that allowed for in the above totals. 

4. Supplies in the United States 

From the 1946 crop some 10,000,000 tons of 
wheat (approximately 396 million bushels) were 
exported as grain and flour, and 4,100,000 tons of 
corn and other grains (approximately 175 million 
bushels). Our 1947 wheat crop was substantially 
larger than last year's, but the increase was more 
than offset in tonnage by the drop in the size of 
this year's corn crop compared with last year's. 



October 5, 1947 



693 



THE RECORD Of THB WEBK 

Indeed, the decline in the size of this year's total 
United States grain crop (wheat, corn, oats, rye, 
barley) below last year's is expected to be about 
as great as the total of all grain exported from the 
United States in the croj) year ended June 30, 1947. 
Nevertheless, the supply. of grain is adequate to 
permit exports' equal or nearly equal to last year's, 
provided excessively heavy feeding of wheat to 
livestock can be prevented. Exports of corn and 
coarse grains are expected to lun to 70 million 
bushels this season. More than half, including all 
of the corn, has already been shipped. The criti- 
cal decisions concern the procurement of wheat for 
export. The balance sheet for this year stands' 
about as follows : 

Estimated production . . 1, 409, 000, 000 bushels 
Carry-over from 1946 ... 83, 000, 000 



Total supply 1,492,000,000 

Required for seed and do- 
mestic consumption 
and industrial use . . —605,000,000 



Balance — feeding, exports, 

and carry-over .... 887,000,000 " 

The carry-over from this year's crop cannot 
safely go below 100,000,000 bushels, and it will be 
miwise to go that low unless the winter wheat crop 
prospects are good next spring. Deducting 100,- 
000,000 bushels leaves a maximum of 787,000,000 
bushels for livestock feeding and for export. 

Even a substantial export program would not 
compel a disastrous liquidation of livestock. The 
shipment abroad of 500,000,000 bushels of wheat 
(approximately 13,500,000 tons) would leave over 
250,000,000 bushels to be fed. Although, on this 
basis, the total amount of grain and feed concen- 
trates available for feed would be smaller than in 
the last few years, there would be only about eight 
per cent less feed per unit of the animal population 



than last year. The condition of pastures and of 
ranges is excellent this year and the supply of hay 
per unit of the animal population will be larger 
than in any previous season. The following sta- 
tistical comparison between the current and the 
preceding season summarizes these conclusions in 
quantitative form. The figures for 1947-48 are 
based on the assumption that 250,000,000 bushels 
of wheat will be fed. [Table below.] 

Clearly, the export of 500,000,000 bushels of 
wheat would impose no grave hardship on the 
American people as a whole, if its eifects be meas- 
ured in physical terms. At most it would cause 
some reduction in the supply of meat, poultry, and 
dairy products available for domestic consumption 
next year. At the present time our consumption 
of meat per capita is some eight per cent higher 
than in 1941, and over 20 per cent higher than the 
average for 1935-39. The per capita consumption 
of poultry products has risen even more. That of 
dairy products is slightly higher than in 1941. In 
the producing areas the reduction in supply would 
not be significant; however, there would be a con- 
centration of feed shortage in the deficit areas 
where the feed availability per animal unit would 
fall well below the national average. If the prob- 
lem could be considered entirely in physical terms 
and if it could be assumed that there would be a 
wide and equitable distribution of the real sacri- 
fice involved, the Committee would have no hesita- 
tion in recommending that we take steps to export 
at least 500,000,000 bushels of wheat in the current 
season. This quantity of wheat, together with 
70,000,000 bushels of coarse grains, would mean 
total exports of 570,000,000 bushels (approxi- 
mately 15,000,000 tons), almost exactly the same 
as last year. 

5. The Economic Problem 

The difficult problem is not that of evaluating 
the relative urgency of European and domestic 



Average 
1937-41 



1942 



1945 



1946 



1947 
(est.) 



Grain and feed concentrates utilized for feed (mil- 
lion tons) 

Units in the animal population (millions) 

Feed supply utilized per animal unit (tons) 



105.6 
132.8 
.79 



142. 7 
160. 7 
.89 



139.2 
172. 6 
.81 



129. 5 
147.6 
.88 



133. 8 
146. 6 
.91 



128. 4 
138.0 
.93 



117.5 
137.0 
.86 



694 



Department of State Bulletin 



needs but rather of devising ways and means of 
securing at least 500,000,000 bushels of wheat for 
' export without gravely serious secondary economic 
effects. Whether livestock in this country or hu- 
man beings in deficit areas abroad, get the major 
■ portion of our surplus of wheat (over and above 
\ the amount needed for seed, domestic human con- 
i sumption, industrial use, and a safe carry-over), 
'( depends on prices, the behavior of American con- 
. sumers, and the action taken by the United States 
' Government during the next few weeks. If the 
European need is to be met, it is essential (1) to 
lessen the disappearance of wheat for livestock 
feed, (2) to acquire it for export (or subsequent 
resale in this country if serious need develops or 
the winter wheat crop fails) before the supply 
passes into hands from which it will not easily be 
drawn. If prices of eggs and poultry, dairy prod- 
ucts and meat continue high, and if demand for 
these products continues strong, and if the price of 
corn remains high compared with that of wheat, 
the amount of wheat fed to livestock may exceed 
400,000,000 bushels. In the cash markets wheat 
has been selling only slightly above corn. Outside 
the corn belt, wheat has often been a more eco- 
nomical buy than corn for feeders and feed mixers. 
If the Department of Agriculture adopted a 
policy of aggressive buying in order to get the 
minimum quantity of wheat necessary to export as 
a matter of national policy, the price of wheat 
would probably rise sharply. The inflationary 
effects of such a development upon the whole econ- 
omy need no elaboration. Moreover, the dilemma 
cannot be resolved for this winter by the reimpo- 
sition of direct controls of any kind. Under exist- 
ing law, the Government lacks specific authority to 
ration consumption, fix ceiling prices, or to prevent 
the diversion of wheat into non-food uses. The 
Committee has not attempted to decide whether 
such direct controls would be effective. Immediate 
consideration should be given to the various types 
of controls which might be enacted by the Con- 
gress. However, action in the present situation 
cannot wait for consideration of possible legis- 
lation and the creation of new administrative 
machinery. 

Through September 6, about 200,000,000 bushels 
of wheat had been acquired or committed for ex- 
jjort by the Department of Agriculture and by 
private concerns. This included approximately 
50,000,000 bushels on hand on June 30. Almost 

Ocfober 5, 7947 



THE RECORD Of THE WEEK 

half of this 200,000,000 bushels will be required for 
occupied areas in Germany, Japan, and Korea. 
The Department has acquired very little wheat 
during recent weeks in which prices were ad- 
vancing sharply. Unless radical and unexpected 
changes occur, it may not be able to acquire, with 
present buying practices, the bare minimum quan- 
tity of wheat necessary for export this year. 

A policy decision needs to be made as to which 
horn of the dilemma to seize; whether it is better 
policy to make sure of getting the wheat at the risk 
of pushing wheat prices higher through more ag- 
gressive buying, or to buy wheat cautiously, on 
market breaks, at the risk of obtaining for export 
considerably less than will be needed to meet mini- 
mum requirements in overseas areas of special im- 
portance to the United States. 

6. Recommendations 

In either event, but especially if the decision is 
to go out aggressively to get the wheat, certain 
steps may be taken to alleviate the upward pres- 
sure in the grain market, to lessen the amount of 
wheat feeding, and to secure the best possible dis- 
tribution and use of existing grain supplies 
throughout the world in the light of our national 
interest. The following are the major lines of ac- 
tion which the Committee believes should be 
followed. 

(1) The most effective weapon that can be 
brought into play immediately to reduce pressure 
on the gi-ain markets is a drive to cut the demand 
for meat, butter, poultry, and eggs by voluntary 
self-rationing on the part of consumers. Such an 
effort must be led by the President ; it must be care- 
fully planned, intensively organized, and based on 
obtaining the organized cooperation of food pro- 
ducers, processors, distributors and, above all, con- 
sumers. It can and should be based on both con- 
sumer resistance to high prices and the desire to 
make some modest sacrifice to prevent starvation 
abroad. If successful, this movement would cer- 
tainly discourage excessive feeding of high-priced 
wheat and other feeds. It would tend to reduce in- 
flationary pressure and make possible a more equi- 
table distribution of our food supplies among 
American consumers. 

(2) The Executive Departments should keep 
pressure on the commodity exchanges to set the 
highest margin requirements for non-hedging fu- 

695 



THE RECORD Of THE WEEK 

tures trading in grain that are obtainable without 
destroying the effectiveness of the exchanges for 
necessary hedging operations. The commodity ex- 
changes do not make prices rise but tliere is evi- 
dence of a gi-owing speculative interest in com- 
modities that should be discouraged in every way 
possible. 

(3) The State Department and other Depart- 
ments concerned should use every means at the dis- 
posal of our Government to bring about changes 
in Argentine policy so as to secure the export of 
maximum quantities of grain and its distribution 
to tlie right countries on reasonable terms. Look- 
ing beyond the present season it is highly impor- 
tant that the Argentine Government encourage in- 
stead of discourage the planting of a large acreage 
for the next crop. 

(4) Exports to countries other than Western 
Europe, and the occupied areas in the Orient, for 
which minimum requirements have been carefully 
calculated should be restricted to amounts demon- 
strably required to meet essential needs. In 1946- 
47 our exports to Eastern Europe totaled about 1.5 
million tons, to Latin America 2.3 million tons, and 



i 



to miscellaneous African and Asiatic countries an- 
other 1.5 million tons. In the light of this year's 
more acute world grain shortage, such exports 
should not be continued at this level except on the 
basis of demonstrated need. In screening the grain 
requirements of the importing areas, and in deter- 
mining the relative priorities of the needs, it may 
be desirable to take into account the proportion of 
their total grain supplies which is available di- 
rectly for human consumption and the proportion 
which is being fed to livestock and poultry. 

(5) Although it is not relevant to the urgent 
problems of this winter, the Committee believes 
that immediate attention should be given to the de- 
sirability of increasing exports of nitrate fertili- 
zers from the United States to Western Europe. 
With present rates of consumption, the shift of a 
moderate tonnage of nitrogen from use in the 
United States to use in Europe would make pos- 
sible a large net addition to world food supplies. 
Such action would have to be taken within the next 
few months if additional fertilizer were to be avail- 
able for application in the spring of 1948. 



MEMBERSHIP OF COMMITTEE ON FOREIGN AID 



The Committee on Foreigii Aid, which was ap- 
pointed by the President on June 22, 1947 to de- 
termine the facts as to United States Resources 
available for economic assistance to foreign coun- 
tries, and to advise him concerning this assistance, 
consists of the following: 

Hiland Batcheller, President, Allegheiiy-Ludlum Steel 

Corp., Pittsburgli, Pa. 
Robert Earle Buchanan, Dean, Graduate College, Iowa 

State College, Ames, Iowa 
W. Randolph Burgess, V ice-Chairman, National City Bank 

of N.Y., New York City 
James B. Carey, Secretary-Treasurer, CIO, Washington, 

D.C. 
John L. Collyer, President, B. F. Goodrich Co., Akron, Ohio 
Granville Conway, President, The Cosmopolitan Shipping 

Co., Inc., 42d and Broadway, New York City 
Melville F. Coolbaugh, 1700 Maple St., Golden, Colo. 
Chester C. Davis, President, Federal Reserve Bank, St. 

Louis, Mo. 

696 



R. R. Deupree, President, Proctor & Gamble Co., Cincin- 
nati, Ohio 
W. Averell Harriman, Chainnan, Department of Commerce, 

Washington, D.C. 
Paul G. Hoffman, President, The Studebaker Corp., South 

Bend, Ind. 
Calvin B. Hoover, Dean, Graduate School, Duke University, 

Durham, N.C. 
Robert Koenig, President, Ayrshire Collieries Co., Big Four 

Building, Indianapolis, Ind. 
Robert M. La FoUette, Jr., Barr Building, Washington, D.C. 
Edward S. Mason, Dean, School of Public Administration, 

Harvard University, Cambridge, Mass. 
George Meany, Secretary-Treasurer, American Federation 

of Labor, Washington, 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 Co., Van Hornesville, N.Y. 

Department of State Bulletin 



Coal for Europe 



BY ASSISTANT SECRETARY THORP i 



The fact that we have gathered here to attend 
the first annual dinner of the Coal Exporters As- 
sociation of the United States calls attention to a 
dramatic and significant new development in the 
economic relationship among nations. Before the 
war, the volume of coal exports from this coun- 
try to Europe was so negligible that the retui'ns 
would hardly have justified an occasion of this 
kind. Our annual coal exports to European coun- 
tries did not exceed 100,000 tons, except during 
ihe abnormal situation arising from the general 
strike in Great Britain in the mid-twenties. To- 
day, the contrast is startling; Europe depends on 
American coal for its margin of existence. Those 
black diamonds which we have always thought 
of as a domestic product have become an interna- 
tional commodity of surprising importance. 

Coal is the basic, indispensable element of mod- 
ern industrialized civilization. That truth has 
long been recognized, but the experience of Europe 
during the last two years has served to emphasize 
it once again. Coal is not only a fuel; it is an 
essential factor in other important industries, in- 
cluding steel, transport, textiles, fertilizer, and 
lumber. Right now, coal is the primary bottleneck 
that is blocking an increase in European industrial 
production in all fields. 

Coal is needed to produce Europe's food crops. 
We have all been reading lately about the second 
consecutive failure of Europe's principal agricul- 
tural crops. For example, the wheat yield in 
France this year is the lowest since Napoleon's 
time. This is largely due to bad weather; extreme 
cold last winter froze seed in the ground, and 
droughts during the summer months drastically 
reduced the already meager crops. 

But Europe's poor food production is also at- 
tributable in large measure to lack of sufficient 
quantities of fertilizer. All during the war, the 
soil of Europe steadily deteriorated, and its ability 
to produce today is certainly below the prewar 
level. Potash and phosphate are available in lim- 
ited amounts, but there is an acute shortage of 
nitrogen. Germany, which, before the war, led 
the world in nitrogen production and exported 
much of it as fertilizer, now is exjDorting none what- 
soever. Because coal is lacking, Europe has an 

Ocfober 5, 1947 



idle capacity capable of producing about 380,000 
metric tons of nitrogen. Seven or eight tons of 
coal are required to produce one ton of nitrogen, 
but one ton of nitrogen, combined with other nu- 
trients, will increase the yield of wheat over an 
appropriate acreage by 12 tons, so the shortage of 
coal is reflected in the shortage of food. 

Coal is needed in transport. Europe's railway 
systems operate almost exclusively with coal- 
burning locomotives. The railroads normally keep 
two weeks' supply of coal on hand, in frequent 
coaling stations. Because coal is scarce, fewer sta- 
tions are maintained, and locomotives go farther 
without refueling; this practice is inefficient and 
wastes coal. There is also a scarcity of coal cars — 
a problem with which you are familiar to some 
degree in this country. The shortage of transport 
hampers the development of all types of economic 
activity. 

The lack of coal is holding back the production 
of steel, although iron ore is abundant, steel scrap 
is available, and labor is sufficient. The lack of 
steel, in turn, has handicapped coal mining, since 
mine equipment is worn out and wearing out, and 
replacements and spare parts are practically un- 
obtainable. 

Coal has even curtailed the supply of lumber. 
The Scandinavian countries normally import coal 
from Germany, Poland, and Britain, and in return 
send them lumber. Now, because Sweden, Norway, 
and Finland cannot get enough coal, they are 
burning wood as fuel instead of converting it into 
lumber, which is badly needed for reconstruction 
in the other European countries. Coal production 
itself dei^ends on wood in the form of pitprops, 
which are now exceedingly scarce, especially in the 
Euhr. 

Coal is essential for power, light, and heat. 
There are some hydroelectric i^lants in central 
France, Germany, Switzerland, Austria, and Nor- 
way, but for the most part Europe depends for 
electricity upon power plants fueled with coal. 
The summer drought has reduced hydroelectric 



' Address delivered before the Coal Exporters Associa- 
tion of the U.S. at New York City on Sept. 25. 1947, and 
released to the press on the same date. Willard L. Thorp 
is Assistant Secretary of State for economic affairs. 

697 



THB RECORD OF THE WEBK 

output and increased the demand on steam gener- 
atoi-s. Since coal is short, electricity is rationed 
to factories, and householders have current only at 
night. Thus the influence of coal permeates every 
phase of community life. 

Coal is the heart of Europe's industrial economy, 
and the Ruhr is the heart of the coal problem. Be- 
fore the war, it was the Ruhr which was the great 
source of coal for continental Europe, and I must 
tell you about the Ruhr so that you can understand 
the present need for American coal and the cer- 
tainty that this need will continue at present levels 
for several years, as a minimum. Before the war 
an effective labor force of about 400,000 men pro- 
duced about 140 million tons per year or about 
440,000 tons a day from the Ruhr mines. Wlien 
Allied troops occupied the Ruhr in 1945, produc- 
tion had dropped to about 30,000 tons a day and 
the labor force remaining after the release of 
forced labor consisted of hardly more than 100,000 
men. 

As a prime industrial target, the Ruhr had been 
heavily bombed and fought over. As a i-esult, 
mines representing 10 percent of normal produc- 
tion had been damaged so severely that it has not 
been possible to restore them even after two years. 
About 25 percent of the mines now operating were 
so badly damaged that they have been repaired 
only with great difficulty. This means that about 
one third of normal capacity had been knocked 
out of production or seriously impaired. Min- 
ing supplies were no longer being manufactured, 
and machinery has depreciated and stores are 
badly depleted. Pitprops were almost nonexistent, 
as large stocks had been destroyed by fire. Trans- 
port was completely disorganized, and industry 
generally was at a standstill. Out of 250,000 
miners' homes in the Ruhr, only one fifth were still 
undamaged; 66,000 had been destroyed and 130,- 
000 were damaged in varying degi-ees. 

One of the first steps taken by the occupying 
authorities was the establishment of a recruit- 
ing system for miners. About 35,000 former 
miners among the prisoners of war in the British 
zone were returned to the mines, and all able- 
bodied men aged 18 to 35 not in essential employ- 
ment were directed into mining. Top priority in 
the supply of labor was accorded mining. As a 
result of these measures, tlie number of miners 
increased by the end of 1945 to about 200,000 — 
double the number available on V-E Day but only 

698 



half the prewar total. During 1946 the number 
recruited barely kept pace with the number that 
left the mines. Recruitment was stimulated by a 
wage rise late in 1946 and an incentive program 
early in 1947. The present labor force numbers 
about 250,000, and the net increase is approxi- 
mately 1,000 per week, which is about all that can 
be taken care of under the housing program. 
Almost all of the new labor is unskilled and there- 
fore inefficient. Adult labor is trained by work- 
ing alongside skilled miners, and 14,000 young men 
are being specially trained in institutes. 

The 20 percent wage increase granted in 1946 
placed the miner among the highest paid workers 
in western Germany, and he probably is better 
protected by social security benefits than any otlier 
worker. Some progress has been made in improv- 
ing housing for the miners. By the middle of 
1946, 95,000 miners' dwelling units had been re- 
paired, 2,000 Nissen huts had been converted into 
dwellings, and some prefabricated houses put up. 
A two-year plan devoted exclusively to miners' 
housing is now under way, with a special alloca- 
tion of coal for production of tJie necessary ma- 
terials. 

However, the most important single factor af- 
fecting coal production since the occupation has 
been the food supply. Wlien food has been scarce 
and rations reduced, coal production has declined 
drastically; when the 1,500-calorie ration, low as 
it is, is maintixined, the production chart of coal 
shows a corresponding up-curve. It is not only 
necessary to feed the miner enough to give him 
energy for the hard work he does (he gets a spe- 
cial ration), but his family must receive sufficient 
food too. If they can't get enough rationed food, 
then the miner saves from his own ration and 
also is likely to stay out of the pit and forage the 
countryside for food for his family. 

Early this year a "points system" was instituted, 
by which a miner who reports for work regularly 
and increases production receives coupons en- 
titling him to purchase extra food and consumer 
goods not otherwise obtainable. This system was 
further refined in July to make the incentives even 
more attractive. 

Another limiting factor has been the extreme 
shortage of equipment and supplies, such as steel, 
chemicals, rubber belting and hose, electrical 
equipment, miners' work clothes, and pit wood. 
Even given the men, materials, and necessary 

Department of State Bulletin 



transport, however, the present potential capacity 
of tlie mines is ;^50,000 tons per day, or about four 
fifths of prewar. Any increase bej'ond tJiis point 
will require extensive repairs and new machinery. 
To restore full prewar capacity would require 
from 114 to 2 million tons of steel alone. 

It is possible that some increase in production 
can be obtained through greater mechanization of 
the mines, although conditions in the German 
mines are much less favorable for the use of ma- 
chinery than those in this country. During the 
last several years certain new types of machinery 
particularly' adapted to Ruhr conditions have been 
developed. There are now 30 so-called coal 
ploughs in use, which cut and load coal in the same 
operation, and 23 more are on order from German 
manufacturers. 

The combination of all these efforts has meant 
that in recent weeks production has reached a new 
high level of slightly over 240,000 tons a day. This 
is a significant improvement, but it can hardly be 
compared with the prewar figure of 440,000 tons 
per da3^ Clearly the problem will be with us for 
a long time. 

Increased production at the mine is of little 
avail, however, if the coal cannot be moved to the 
places where it is needed. The German transport 
system is in such poor condition now that coal is 
actually accumulating at the pits. Since such fur- 
ther improvement of the railway system seems im- 
possible at the moment, in view of the world-wide 
sliortage of rolling stock, the only immediate solu- 
tion apparent is the greater utilization of water 
and highway transport. Negotiations are now in 
progress with Belgium and the Netherlands for use 
of their ports, barges, and tugs, in order to relieve 
the heavy burden on the rail facilities from Bremen 
and Hamburg. It also may be possible to arrange 
for Belgiimi and Czechoslovakia to repair some 
rolling stock now immobilized in Germany. 

From the beginning of the occupation, the Brit- 
ish were responsible for coal production in the 
Ruhr, since that area was in their zone. At Pots- 
dam it was agreed that the four zones in Germany 
should have a certain degi-ee of economic unity. 
However, that agreement was never implemented, 
and the four zones operated almost like four dif- 
ferent countries. In December 1946, however, the 
American and British Governments agreed on eco- 
nomic fusion of their two zones in the interest of 
increased efficiency. Since that time, the respec- 



THE RECORD OF THE WEEK 

tive zone commanders have been considering estab- 
lishment of a German administration for the coal 
industry in the bizonal area, under joint Anglo- 
American control. This is made possible by the 
completion of the denazification process in that 
area, whereby all who could be shown to have been 
active Nazis were removed from positions of 
power. 

The provisional agreement of the zone com- 
manders called for placing responsibility for coal 
production in German hands, through creation of a 
German coal management responsible to the Brit- 
ish and American Military Governments. Anglo- 
American supervision would be exercised by a 
United States-United Kingdom control group, 
which would issue directives to the German 
management. 

Early in August, the British Government sent a 
delegation to Washington to discuss with repre- 
sentatives of our Government the whole problem 
of increasing coal production in the Ruhr in the 
immediate future. After several weeks of discus- 
sion, the conference recommended a whole series 
of steps to be taken to increase production, one of 
which was that the proposed agreement be put into 
effect. 

If this recommendation is accepted — and we cer- 
tainly hope that it will be — the American com- 
mander in Germany will appoint representatives to 
form, with their British counterparts, the new 
joint control gi'oup. When this is done, the United 
States for the first time will share equally in the 
control and supervision of the Ruhr coal industry. 
This arrangement is logical, since under the bizonal 
plan the expenses incurred as a result of occupation 
of the British and American zones are i^aid by the 
two Governments on a 50-50 basis. 

Joint economic action by the British and Ameri- 
can Governments in Germany is not confined to 
coal alone. Obviously the rate of production of 
coal affects, and is affected by, the productivity of 
related industries, such as steel and transportation. 
These are relationships that cannot be ignored. 
Wliat is urgently needed in Germany is not an in- 
crease in coal production alone but an integrated, 
synchronized advance all along the line. 

It was for this reason that the British and 
American Governments, after consultation with 
the Fiench Government, four weeks ago, an- 
nounced an upward revision of the level of indus- 
trial capacity authorized in the bizonal area of 



Ocfober 5, 1947 



699 



THE RECORD OF THE WEEK 

Germany. The necessity for this revision resulted 
chiefly from the failure of the four occupying 
powei's to treat Germany as an economic unit, as 
required by the Potsdam agreement. Since the 
original level-of-industry plan agreed upon by the 
occupying powers was based on the assumption of 
economic unification, and unification has not been 
realized in fact, a somewhat higher level for the 
bizonal area is necessai^ in order to support the 
population and reduce reliance upon contributed 
imports, mainly from the United States. 

The industrial capacity which would have been 
retained in the bizonal area under the original 
plan would have made possible a general level of 
production equal to about 70 or 75 percent of 
1936. The new plan raises the permitted level to 
approximately the equal of 1936, a year that was 
characterized by neither boom nor depression. 
However, the bizonal area already has a popula- 
tion six million greater than in 1936, and by 1952 
it is expected to contain a population eight to ten 
million larger than in 1936. Therefore, even un- 
der the revised level of industry, the per capita 
production capacity of the bizonal area in 1952 
would be about 75 percent of 1936. 

In developing the new bizonal plan, the para- 
mount consideration was the establishment of a 
level of industry that would ultimately make the 
area self-supporting and enable it to make an ap- 
propriate contribution to the recovery of Europe 
as a whole. Germany is irrevocably a part of 
Europe, and Europe cannot recover its economic 
health while Germany is a festering sore, any more 
than the human body can be healthy while some 
central oi-gan is diseased. 

Germany was formerly the nerve center of much 
of Europe's trade — a major producer of iron, steel, 
and coal, a purchaser of raw materials and food 
from other parts of the Continent. Germany was 
a workshop and a supplier of manufactured goods, 
a railroad center, a shipping artery, a banker. It 
is not so today, for Germany was more thoroughly 
smashed than any other part of industrial Europe. 
Perhaps the best way for Americans to compre- 
hend the meaning of the devastation in Germany, 
and particularly the Ruhr, is to try to visualize 
what effect the smashing of our industrial complex 
from Chicago to Pittsburgh — to a point where it 
was reduced to production at 40 percent of the 
former level — would have on the national economy 
of the United States. 

700 



The meaning of the virtual disappearance of 
Germany from the European economy can be 
glimpsed in a quick look at the case of the Nether- 
lands. Before the war nearly one fifth of all 
Dutch trade was conducted with Germany. The 
IH-oiJortion was even higher in the case of vital 
imports such as iron and steel, chemicals, ma- 
chines, and instruments. More than half of all the 
industrial equipment in the Netherlands is of Ger- 
man origin. Dutch industry is badly handicapped 
in its recovery efforts by the lack of spare parts, 
equipment, and materials that Germany once sup- 
plied. 

Germany was also an important buyer of Dutch 
products, particularly agricultural products, 
which constituted one third of Dutch exports. 
The failure of Germany to take any part of its 
customary one fifth of Dutch exports of dairy 
products and garden produce has hit Dutch ex- 
porters hard. Another major factor in Holland's 
jDrewar economy was the transit traffic through 
the ports of Amsterdam and Rotterdam. Four 
boats in every five in the Dutch Rhine fleet were 
used in carrying German goods. This substantial 
income for the Netherlands has almost ceased to 
exist, since German trade through the Rhine ports 
has declined to one fifth of prewar. The occupy- 
ing authorities, to save foreign exchange, have di- 
verted this trade to the German North Sea ports, 
and this in turn has increased the strain on the 
crippled German transportation system. 

The failure of German exports, especially coal, 
to revive has retarded the recovery of all Europe. 
Because of the pressure to earn dollars to pay for 
essential food and other imports, the few German 
manufacturers who have resumed operations tend 
to concentrate on luxury and semi-luxury items — 
cameras, toys, binoculars — which find a market in 
hard-currency countries. Meanwhile, Europe des- 
perately needs Gei'man mining machinery, spare 
IJarts, milking machines to increase Dutch and 
Danish dairy production, and many other articles 
essential to recovery. As long as German produc- 
tion is less than half of prewar, and her trade lags 
even further behind, it constitutes a serious brake 
on the satisfactory recovery in Europe. 

Secretary Marshall defined the aims of the 
United States in Germany in a statement to the 
Conference of Foreign ISIinisters at Moscow, in 
which he said : "The United States is opposed to 
policies which will continue Germany as a con- 

Department of Sfafe Bulletin 



gested slum or an economic poorhousc in the center 
of Europe. . . . we want Germany to use its 
resources of skilled manpower, energy, and indus- 
trial capacity to rebuild the network of trade on 
which European prosperity depends; ultimately, 
i it desires to see a peaceful Germany, with strong 
democratic roots, take its place in the European 
and world community of nations." This does not 
contemplate the recovery by Germany of her for- 
mer economic power but does suggest that her 
resources are needed by the rest of Eui'ope. 

These objectives assume even greater importance 
in the light of Mr. Marshall's proposal of June 5 
that the European nations take the initiative in 
developing a comprehensive, workable plan for the 
earliest possible reconstruction of Europe, based 
on maximum effort by each nation and of Europe 
as a whole and a minimum of additional assistance 
from the United States. 

The new level of industry in the bizonal area 
and the recommendations for joint efforts to in- 
crease coal production in the Euhr, from the pres- 
ent low level of about 72 million tons a year to 
something like the prewar figure of 140 million 
tons, reflect the determination of this Government 
to take the measures necessary to utilize German 
resources in the interest of general European re- 
covery. Even now, at the current unsatisfactory 
level of coal production, Germany is exporting an 
average of one million tons a month to other Euro- 
pean countries, at the expense of the German econ- 
omy. As production in the Euhr increases, the 
other nations cooperating in the European recov- 
ery program will share in the distribution of the 
increase. 

I want to state, as emphatically as I know how, 
that the United States does not intend to promote 
the recovery of Germany at the expense of the rest 
of Europe. Exactly the contrary is true. We do 
see recovery in Germany as a necessary part of 
European recovery. 

We are also keeping fully in mind the problem 
of security. No one can forget that Germany has 
started two world wars. Therefore, we have car- 
ried out a vigorous demilitarization program in 
our occupation zone. We intend to see that Ger- 
many does not recreate her industrial potential for 
war-making purposes, and we have offered to enter 
into a 40-year treaty with the other major Allied 
powers to provide machinery for inspection and 
control which would guarantee that Germany does 



THE RECORD OF THE WEEK 

not again threaten to break the peace. That offer 
still stands. 

Meanwhile, Germans have been eating one third 
less than other Europeans, on the average, and 
Germany's industrial protUiction index is only 
about 40 percent of 193(5, compared with 80 to 100 
percent for her neighbors. These gaps are too 
great, and we are determined to narrow them, for 
the relief of the American taxpayer and for tlie 
benefit of Europe itself. 

Until Europe can increase production enough to 
overcome the accumulated deficit resulting from 
the war and to pay its way in the world again, it 
must import the irreducible minimum of supplies 
required to support a tolerable standard of living 
and give its peoples the strength and the where- 
withal to accomplish the exacting tasks of recon- 
struction. Virtually the only source from which 
these supplies can be obtained is the Western Hemi- 
sphere, and that means principally the United 
States. 

The fundamental problem in Europe is one of 
production. The shortage period has meant aus- 
terity for them and an increasing problem of 
finding ways and means to buy necessary new mate- 
rials and food abroad. Eventually, their own pro- 
duction should meet most of their own needs and 
provide exports enough to pay for the balance. In 
the interim, American assistance is the only appar- 
ent solution. 

Of course, it is not really dollars which they 
need but commodities. To fill the gap between the 
volume of coal which Europe is now producing and 
the volume it must have to meet essential require- 
ments, the United States is shipping coal across 
the Atlantic at a current rate of almost 50 million 
tons a year. Even that only fills the gap in part. 
Four hundred to five hundred ships a month aie 
clearing from American ports with cargoes of coal 
bound for the hungiy fuinaces of Europe. This 
prodigious achievement is another tribute to the 
ingenuity, energy, and technical skill of American 
management and labor. The continuance of this 
performance, possibly for several more years while 
Europe strives to achieve something like a balance 
between its coal production and requirements, will 
challenge our best efforts. 

We may experience, as we have in past months, 
difficulties in first one and then another phase of 
the program — getting the coal out of the mines, 
finding enough coal cars, keeping sufficient port 



October 5, 7947 



701 



THE RECORD OF THB WEEK 

facilities in efficient operation, assembling enough 
shipping to do the job. Teamwork between labor 
and management, between business and govern- 
ment, have surmounted every obstacle. A continu- 
ance of that excellent cooperation will be necessary, 
especially during the coming winter, to make sure 
that the American coal industry produces in suffi- 
cient volume to meet all domestic requirements and 
the demands for essential exports as well. We 
have already proved it can be done ; we must keep 
on proving it. 

The coal exporters of this country have made a 
magnificent contribution to this achievement, as is 
conclusively demonstrated by the records. In our 
best month last year, 2,300,000 tons of coal cleared 
American ports for Europe; in August, our best 
month so far this year, 4,300,000 tons were shipped 
to Europe — an increase of almost 100 percent. 



This is all the more remarkable when we consider 
the magnitude of the j^hysical task alone, plus the 
necessity of dealing with a number of government 
missions and conforming with those government 
regulations, in the formulation and enforcement 
of which you gentlemen fully cooperated. 

I hardly need to tell you, but I would like to ( 
inform the American people, that the coal ex- \ 
porters of the United States occupy a position of 
great strategic importance and that they are ac- 
quitting themselves well. You operate the controls 
for the movement of the most vital element in the 
world economy — with the sole exception of food. 
By your efforts you are quickening the pace of 
world recovery and are contributing magnificently 
to the attainment of the conditions of stability, 
prosperity, and peace which we all so earnestly 
desire. 



Execution of Nikola Petl<ov Declared Travesty on Justice 



[Released to the press September 23] 

The Department of State has received confirma- 
tion from the Acting Political Representative in 
Sofia that Nikola Petkov was executed on Sep- 
tember 23. 

Mr. Petkov was one of the four Bulgarian sign- 
ers of the Bulgarian armistice. As the leader of 
the Agrarian Party, the largest political party in 
Bulgaria, he played an active and leading role 
in the establishment of a coalition government in 
September 1944, following the overthrow of the 
Bulgarian Nazi regime. Subsequently, in July 
1945, Mr. Petkov and the majority of his party 
withdrew from the minority-controlled organ 
which that Government became. Since July 1945 
he has been the acknowledged leader of the oppo- 
sition. He was arrested on charges of conspiracy 
against the government on June 8, 1947. 

Mr. Petkov's trial was a travesty on justice. 
Two of the attorneys selected by Petkov were 
seized by the militia. The court refused to permit 
the appearance of numerous witnesses requested 
by the defense. The court likewise denied a re- 
quest by the defense for a postponement to permit 
study of the pre-trial record. The presiding 
judge actively participated in the prosecution. On 
August 16, 1947, the court pronounced Mr. Petkov 
guilty of "having inspired certain Bulgarian Army 

702 



officers to found a military union which conspired 
to overthrow the Fatherland Front government," 
et cetera. Mr. Petkov was sentenced to death. 

Mindful of its obligations under the Yalta agree- 
ment in regard to assisting the peoples of the for- 
mer Axis satellite states to solve by democratic 
means their pressing political problems, the United 
States Government requested the Soviet acting 
deputy chairman of the Allied Control Commis- 
sion to instruct the Bulgarian Government, with- 
out prejudice to the right of Mr. Petkov to appeal, 
to suspend the sentence passed upon him until 
the Commission had had full opportunity to re- 
view the case. This and subsequent approaches 
to the Allied Control Commission were rejected 
by the Soviet acting deputy chairman on the 
grounds that such review would constitute "inter- 
ference in Bulgarian internal affairs". On Au- 
gust 23 the American Embassy at Moscow in- 
formed the Soviet Foreign Office that the United 
States Government could not accept the position 
taken by the Soviet Representative on the Allied 
Control Commission and requested immediate con- 
sultation at a government level among the three 
Yalta Powers in order that they might reach con- 
certed policies in regard to the matter. This ap- 
2:)roach and a later one of August 30 to the Soviet 
Foreign Office were likewise rejected on similar 

Department of Stale Bulletin 



THE RECORD OF THE WEEK 



reasoning. The United States Government also 
connnunicated its views concerning the Petkov 
case to the highest Bulgarian authorities. 

The timing and conduct of the trial and its re- 
lationship to other repressive measures undertaken 
by the Bulgarian authorities make it abundantly 
clear that tlie trial constituted but one of a series 
of measures undertaken by the Communist-domi- 
nated Fatherland Front government to remove 
from the Bulgarian scene all save a purely nomi- 
nal opjjosition and to consolidate, desjaite its pro- 
fessions to the contrary, a totalitarian form of 
government. The trial of Nikola Petkov recalls 
to memory another trial which occurred in Leip- 



zig 14 years ago. In that earlier trial a Bulgarian 
defendant evoked world-wide admiration for his 
courageous defiance of the Nazi bully who partici- 
pated in his prosecution. Today that defendant 
has assumed another role, and it is now the courage 
of another Bulgarian whose steadfast opposition 
to forces of oppression has evoked world-wide ad- 
miration. In bringing Nikola Petkov to trial the 
Bulgarian regime placed itself on trial in the minds 
of many Bulgarians and of freedom-supporting 
peoples outside Bulgaria. In the court of world 
opinion that regime has shown itself wanting with 
respect to elementary principles of justice and the 
rights of man. 



Denial of Misconduct by U.S. Military Forces in Yugoslavia 

EXCHANGE OF NOTES BETWEEN THE UNITED STATES AND THE FEDERAL 
PEOPLES REPUBLIC OF YUGOSLAVIA 



[Released to the press September 24] 

Text of the Yugoslav note of September 22 

p. No. 1200 

The Ambassador of the Federal Peoples Re- 
public of Yugoslavia presents his compliments to 
the Honorable, The Secretary of State and has the 
honor to inform of the following : 

1. On the occasion of the withdrawal fiom the 
demarcation line in the Julian March and shortly 
before their departure, the American occupational 
troops committed serious attacks against the prop- 
erty in the region which was taken over by the 
Federal Peoples Republic of Yugoslavia. On the 
night of September 15-16, American soldiers de- 
molished a hospital in Sezana and removed all of 
the valuable articles. 

2. Along the whole demarcation line American 
troops burned or destroyed other-wise practically 
all of the barracks. Such action on the part of 
American soldiers increased the tension on the 
demarcation line and could have caused undesired 
incidents. Besides that, American troops dis- 
played a hostile attitude towards the Federal 
Peoples Republic of Yugoslavia. 

3. The American soldiers tried to provoke inci- 
dents and made phj'sical attacks upon the Yugo- 
slavs. On September 15, on the road between 



Tolmin and Kobarid, American soldiers physically 
attacked and beat Yugoslav telephone workers who 
were working on a telephone line. On September 
15, on the road St. Lucia-Kozariste, American 
soldiers distributed Anti-Yugoslav leaflets. 

Moreover, Italians exercised moral pressure on 
tlie population in the territory which was to be- 
long to the Federal Peoples Republic of Yugo- 
slavia so that they would move out. 

In the region of Kobarid American soldiers, 
during their withdrawal, fired three artillery shots 
on the territory of the Federal Peoples Republic 
of Yugoslavia. They tried to provoke incidents 
by firing from infantry arms. Such action by the 
American occupation forces may have left the 
population of the territory in question with the 
impression that the American authorities are hos- 
tile and in that way incite incidents which would 
make difficult or even impossible the peaceful "tak- 
ing over" of the territory. 

The attitude of the American occupational au- 
thorities, before the carrying out of tlie Peace 
Treaty, made it possible for followers of Fascist 
organizations to provoke incidents, attack prop- 
erty and make physical attacks on the Yugoslav 
population and even upon the Yugoslav citizens 



October 5, J 947 



703 



THE RECORD OF THE WBBK 

in tJie Italian territory or on the Free tei'ritory of 
Trieste. 

During the night of September 14-15, a mine 
was laid in the building of the "Primorski 
dnevnik" in Gorica. It was a fortunate incident 
that the mine was found and removed by Yugo- 
slav citizens and therefore its explosion was pre- 
vented. A Yugoslav automobile with license plate 
TP was burned the same night by an organized 
group in Gorica. 

On September 14 at 2 p.m. members of the Or- 
ganization "Divisions Gorizia" destroyed the res- 
taurant belonging to a Slovene — Polde Cesut — in- 
jured him and stole 10.000 lire. In the same man- 
ner the restaurants of Petar Kralj, Petrovic Makso 
and Gifl were attacked and Marcija Butinjolija 
was seriously wounded. At 8 : 00 p.m. of the same 
evening, the Library of "Ljudska Zalozba" was at- 
tacked and 30.000 Slovene books were destroyed. 

On the night of September 13-14 in Gorica, or- 
ganized groups attacked the houses of Gorica citi- 
zens who did not want to display Italian flags. 
In these attacks three grenades wei'e thrown. 

Attention should be drawn to the fact that the 
Organization "Divizione Gorizia" is organized 
under the same principles as the Fascist Squa- 
dristi and that the majority of the members are 
former members of the Fascist party. 

On September 15, in Trieste, the head of the 
Yugoslav border commission, Colonel Kilibarda 
and Major Altarac were attacked. Fifteen mem- 
bers of the civilian police, who were present, did 
not intervene and did not protect the above men- 
tioned official representatives of the Federal Peo- 
ples Republic of Yugoslavia. On that occasion 
(he automobile of Colonel Kilibarda was damaged. 

The Ambassador of Yugoslavia, would, at the 



same time, like to mention that the American oc- 
cupation authorities, before the Peace treaty came 
into effect, allowed, between September 1-3-14, the 
entry of Italian troops and carabinieri into Gorica. 

The American occupational authorities are re- 
sponsible for the criminal activities of the mem- 
bers of the above named organizations because 
they are in charge of the maintenance of Law and 
order, and with the protection of personal integ- 
rity and property on the territories in question. 

The Government of the Federal Peoples Repub- 
lic of Yugoslavia wishes to express its unsatisfac- 
tion for the incorrect stand of the American sol- 
diers and commander and reserves itself the right 
to seek compensation for the damages incurred by 
American soldiers. 

The Yugoslav Ambassador takes this opportu- 
nity to renew to the Honorable the Secretary of 
State the assurances of his highest consideration. 

Wasuington, D. C, September 22, 1947. 

Text of the United States reply of September 23 to 
the Yugoslav note of September 22 

The Acting Secretary of State presents his com- 
pliments to His Excellency The Ambassador of the 
Federal People's Republic of Yugoslavia and has 
the honor to acknowledge the receipt of the Am- 
bassador's note P. No. 1200 of September 22, 1947, 
detailing numerous alleged instances of miscon- 
duct by United States military forces during their 
withdrawal from territory ceded to Yugoslavia 
under the Treaty of Peace with Italy. 

These charges have been determined upon in- 
vestigation to be wholly without foundation in fact 
and are rejected by the Government of the United 
States as unworthy of comment. 



SUMMARY OF ANSWERS TO YUGOSLAV CHARGES' 



[Released to the press September 24] 

Charge 1 : American Occupation Forces com- 
mitted numerous insolent attacks against our pop- 
ulace, property and citizens at the moment of 
withdrawal from Istria. 

Aksu'er : The withdrawal of the American and 



1 Made by Maj. Gen. T. S. Airey (U.K.), Commander, 
U.S.-U.K. Zone, Free Territory of Trieste, on Sept. 20, 
1047. Printed from telegraphic text. 



British troops from Pola, at the end of the Istrian 
Peninsula, was made in good order and without 
attacks of provocation against anybody, and with- 
out any harm to property of any kind. The Amer- 
ican officer in command at Pola states that all 
proj^erty was left in excellent condition. 

Charge 2 : Between night 15-16 September sol- 
diers demolished hospital in Sesana and plundered 
everything of value. Between Tolmino and Capo- 



704 



Departmenf of State Bulletin 



retto, American soldiers attacked and injured 
many of our workers who were working on tele- 
phone lines there. 

Answer: No acts of looting or i)Iunder on the 
part of American troops occurred at any place 
along the Morgan Line. On the contrary the with- 
,■ drawal took place in good order, and without in- 
|l cident. No American soldier attacked or injured 
J or otherwise molested any Slovenes in any way. 
j Charge 3 : On road St. Lucci-Kozarsche Ameri- 
can soldiers threw leaflets from jeep with Italian 
written on them. They pressed the inhabitants of 
this region to leave territory. 

Ansa\t;u: This preposterous statement has no 
basis in fact. 

Charge 4: During the night 13-14 September 
American authorities allowed units of the Italian 
army and Caribinicri to enter Gorizia before com- 
ing into force of Peace Treaty and at same time 
prevented our authorities from entering Zone A 
territory falling to Yugoslavia. 

Answer : Units of Italian Army and OS caribi- 
nieri were allowed to come forward to the treaty 
line at R minus one, in order that an orderly hand- 
over to the representatives of the two nations could 
be made on the treaty line. 

Charge 5 : At several places American soldiers 
either destroyed or set fire to barracks. 

Answt5r: Such barracks as the American sol- 
diers occupied in Zone A were improved during 
their occupation, and were not injured in any way 
upon withdrawal therefrom. 

Charge 6 : During withdrawal American mili- 
tary units fired 3 artillery sliots at Caporetto in 
our territory and attempted to provoke incidents 
by shooting infantry weapons. 

Answer : No American unit or soldier fired a 
single shot during the entire operation, prior to, 
during, or after the liand-over. The evacuation 
of the St. Alucia and Caporetto area was without 
incident of any sort. No shots fired from any 
weapon. No troojis were involved with any civil- 
ians. Civilians were friendly and arrangements 
had been made to transfer barracks at Plezzo to 
Yugoslav Army detachments but the steady move- 
ment of the Yugoslavs and their complete disre- 
gard of all prior timing arrangements made it im- 
possible. Brigadier General Gaither, Deputy 
Commander of the 80th Infantry Division was 
personally present in Caporetto until 2340 on 15 
September, and was the last U.S. soldier to leave 



THE RECORD OF THE WEEK 

Caporetto and the territory ceded to Yugoslavia. 
A Yugoslav liaison officer was present with him. 

Charge 7: Under the protection of American 
soldiers, Italian Fascist bands committed numer- 
ous crimes against inhabitants. 

Answer: The American authorities know of no 
Fascist bands who committed crimes against inhab- 
itants. The charge that such crimes were com- 
mitted "under the protection of American soldiers" 
is false. 

Charge 8 : From above facts it is clear that 
American authorities and American military units 
have roughly broken obligation they accepted 
under Peace Treaty. They have shown their 
enemy attitude towards our people by brutal at- 
tacks, terror and plunder of property. It is no 
wonder then why our people in Istria are compar- 
ing behavior of American soldiers with behavior 
German Italian armies during war. 

Answer: The American military units turned 
over treaty line exactly as it was drawn, and 
maintained all obligations imposed under the 
treaty ; the American authorities met with Yugo- 
slav authorities and attempted to arrange for an 
oiderly turnover in every respect. The U.S. 
forces committed no acts against Slovene citizens 
and no i^lunder of their property. The attitude 
of the American troops toward the inhabitants of 
that part of former Zone A which has now come 
under the domination of the Yugoslav Govern- 
ment has been consistently friendly. There has 
been no hostility at any time on the part of the 
Americans. This allegation is untrue, and is a 
trumped up and malicious charge. 

Charge 9 : "Politika" states "most recent news 
tells of further brutal violations Peace Treaty pro- 
visions and cites incident in which American occu- 
pation units occupied 300 meters territory near 
Penetetice belonging Yugoslavia." According to 
"Politika", "Yugoslav commission went to men- 
tioned poiDulace and protested. American authori- 
ties promised to leave at once but instead issued 
orders to units to take positions on border armed 
with machine guns and infantry cannon." "In 
this way" states "Politika", "they violated inter- 
national agreements and showed they desired to 
provoke an incident and a disturbance on the 
border." 

Answer : The American forces turned over the 
treaty line exactly as prescribed. No violation of 
Yugoslav territory was made. In all cases where 



Ocfofaer 5, 1947 



70S 



THE RECORD OF THE WEEK 

Yugoslavs attempted to force the U.S. troops back 
away from the treaty line the American troops re- 
fused to move, and indicated that their orders were 
to stand fast. All international agi'eements were 
scrupulously adhei'ed to. 

Charge 10 : "Politika" adds "American military 
as well as Italian authorities were also responsible 
for penetration of Chetnic and Ustashi bands into 
territory Zone A now belonging to Italy" and con- 
cludes "provocative incidents committed by Ameri- 
can and Italian military forces and Ustashi quis- 
ling bands are a new attempt by war mongering 
elements to create hot spots and to prepare eventu- 
ally ground for intervention by foreign interven- 
tionists. They mean at this same time of course 
the breaking of Peace Treaty agreements." 

Answer: No penetration of Chetnik or Ustachi 
bands into territory of Zone A was made. Ameri- 
can and Italian military forces committed no 
provocative incidents. 

Protest to Yugoslav Government Concerning 
Zonal Boundary In Trieste 

Statement hy Acting Secretary Lovett 

[Released to the press September 24] 

On September 22 the United States protested to 
the Yugoslav Govermnent through the American 
Embassy at Belgrade against irresponsible Yugo- 
slav actions m presenting ultimatums to local Al- 
lied military representatives demanding altera- 
tions in the provisional boundary between the 
British-United States zone of the Free Territory 
of Trieste and Yugoslavia. In presenting the 
protest, American Ambassador Cavendish Cannon 
requested the Yugoslav Government to issue imme- 
diate instructions to end this practice, which the 
United States Government considers exceedingly 
dangerous and likely to precipitate incidents lead- 
ing to most serious consequences. 

Ambassador Cannon expressed the U.S. view 
that matters in dispute between local military posts 
must be resolved through normal civilized pro- 
cedures and requested that orders be issued imme- 
diately to insure that such additional matters of 
local dispute as may arise will hereafter be referred 
to the appropriate Yugoslav commander for reso- 
lution through discussion with General Airey. He 
emphasized that General Airey has been instructed 



' BuiXETiN of Jan. 27, 194G, p. 114. 
' Bulletin of Sept. 29, 1946, p. 563. 



706 



to maintain the established provisional line, which 
must be recognized as the de facto boundary be- 
tween the British-United States zone of the Free 
Territory of Trieste and Yugoslavia until defini- 
tive delineation has been undertaken in accord 
with the terms of the Italian treaty. 

Denial of Charges Made Against Ambassador 
Lane at Krakow Trials 

The widely publicized Krakow Trials in which 
Stanislaw Mierzwa, Alternate Secretary General 
of the Polish Peasant Party and 16 other 
co-defendants were charged with maintaining 
contacts with the underground and furnishing 
"espionage material" to representatives of for- 
eign powers, ended on September 11, 1947. 

Charges made during the trial that former 
American Ambassador Arthur Bliss Lane and 
members of his staff were among the chief recipi- 
ents of the alleged "espionage material" were 
denied in the following statement issued by the 
Department of State on September 18, 1947 : 

The Department of State has no knowledge of 
the receijDt by the American Embassy at Warsaw 
of information of any kind from persons men- 
tioned in the Krakow trials and has been assured 
by former Ambassador Lane that he had no con- 
tacts with such persons, did not to his knowledge 
receive any information from them, and had 
strictlj' forbidden members of his staff to main- 
tain any relations with the Polish underground. 

Preliminary Distribution of the "Gold Pot" 

Statement by Acting Secretary Lovett 

[Released to the press September 24] 

At the Paris Reparations Conference (Novem- 
ber-December 1945) it was agreed that all the 
monetary gold found in Germany by the Allied 
foi-ces and looted gold recovered from third coun- 
tries to which it was transferred from Germany 
should be pooled for redistribution among the vic- 
timized countries on a prorata basis. ^ On SejDtem- 
ber 27, 1946, a gold commission composed of rep- 
resentatives of France, the United Kingdom, and 
the United States was set up in Brussels to scru- 
tinize claims for looted gold and to determine 
the share of each claimant government.^ 

Although the technical and legal difficulties in- 
volved are tremendous, the Department of State 

Department of Slate Bulletin 



las instructed its representative on the Comnns- 
^ion, in view of the critical international financial 
situation, to urge a preliminary distribution of the 
'gold pot" not later than October 15. The Com- 
mission has agreed to try to meet this deadline. 
The return of a substantial portion of their mone- 
tary gold reserve to some of the European coun- 
itries whicli are in a critical financial situation will 
".help them to overcome their present difficulties. 
There are at present available for distribution 
^[xbout 260 million dollars' worth of gold looted by 
Ithe Nazis and recovered by United States forces 
'in Germany plus about 70 million dollars' worth 
'of gold recovered from third countries. Negotia- 
".tions with third countries still going on should 
yield additional looted gold for the "pot" in the 
near future. Only about half of the total of 330 
million dollars' worth of gold now available can 
be distributed immediately since a substantial re- 
serve will have to be withheld to meet claims which 
may later be determined to be valid. The total of 
all claims submitted to the Commission amounts 
to nearly 800 million dollars' worth of gold. 

Claims have been filed by Albania, Austria, Bel- 
gium, Czechoslovakia, Greece, Italy, Luxembourg, 
Netherlands, Poland, and Yugoslavia. I am not 
in a position to reveal the amount of each partic- 
ular claim, nor am I in a position to say at this 
moment how much any one of the afore-mentioned 
countries will receive in the preliminary distribu- 
tion, since the decision is up to the Tripartite Gold 
Commission and will be announced by this 
Commission. 



THE RECORD OF THB WBEK 

Normal Diplomatic Relations With 
Ecuador Established 

[Released to the press on September 22) 

The United States Government re-established 
normal diplomatic relations with Ecuador on Sep- 
tember 22. 

Several other American republics have likewise 
extended recognition to the Ecuadoran Govern- 
ment. 

Amendments of Migratory Bird Treaty Act 

The President, by proclamation of September 27, 
1947, authorized the Secretary of the Interior to 
amend the regulations approved by Proclamation 
2739 of July 31, 1947, by changing the dates of 
open seasons on waterfowl, coots, rails, and galli- 
nules in the State of Wisconsin and on waterfowl 
and coots in the State of Oklahoma. For text of 
the proclamation see White House press release 
of September 27, 1947. 



Resignation of William Benton as Assistant 
Secretary of State 

On September 24 the White House announced the 
resignation of William Benton as Assistant Secre- 
tary of State, effective October 1. For the texts of 
Mr. Benton's letter to the President and his report 
to the Secretary of State, see the White House press 
release of September 24. Howland H. Sargent is 
designated as Deputy Assistant Secretary of State 
for public affairs effective October 1. 



October 5, 1947 



707 




Economic AHairs P-'se 

The Geneva Charter for an ITO: 

II. Quantitative Restrictions 663 

III. Employment and Economic Develop- 
ment 667 

International Meteorological Organization. 
Opening Session of Conference of Direc- 
tors: 
Address by Assistant Secretary Norton . . 678 

United States Delegation 680 

The Cabinet Committee on World Food 
Programs: 

Statement by the President 690 

The 1947-1948 Grain-Export Program. 
Letter to the President From the 

Secretary of Commerce 691 

Report of Committee on Foreign Aid . . . 692 
Membership of Committee on Foreign 

Aid 696 

Coal for Europe. By Assistant Secretary 

Thorp 697 

Preliminary Distribution of the "Gold Pot." 

Statement by Acting Secretary Lovett . 706 

General Policy 

U.S. Delegation to Airvi'orthiness Committee 

of icAo 677 

Meeting of the Committee of European 
Economic Cooperation: 
Statement by the Rapporteur General . . 681 

Summary of the General Report 684 

Statement by Acting Secretary Lovett . . 687 

Statement by the President 688 

Letters of Acknowledgment 689 

Execution of Nikola Petkov Declared Trav- 
esty on Justice 702 



General Policy — Continued Page 
Denial of Misconduct by U.S. Military Forces 
in Yugoslavia: 
Exchange of Notes Between the U.S. and 
the Federal Peoples Republic of Yugo- 
slavia 703 

Summary of Answers to Yugoslav Charges. 704 
Protest to Yugoslav Government Concerning 
Zonal Boundary in Trieste. Statement 

by Acting Secretary Lovett 706 

Denial of Charges Made Against Ambassador 

Lane at Krakow Trials 706 

Normal Diplomatic Relations With Ecuador 

Established 707 

Amendments of Migratory Bird Treaty Act . 707 

The United Nations and 
Specialized Agencies 

Second Session of the General Assembly: 
The Establishment of an Interim Com- 
mittee of the General Assembly. 

U.S. Proposal 671 

Threats to the Political Independence and 
Territorial Integrity of Greece. U.S. 

Proposal 672 

U.N. Documents: A Selected Bibliography . 673 

International Information and 
Cultural AHairs 

U.S. Delegation to Si.xth Pan American 

Congress of Architects 677 

Calendar of Meetings 674 

The Department 

Resignation of William Benton as Assistant 

Secretary of State 707 

Publications 

Committee of European Economic Coopera- 
tion 683 



U. S. GOVERilUENT PRINTINS OFFICE: 1947 



tJne/ ^e/ia^tmeni/ /(w t/tat& 





WORLD FOOD CRISIS AND CONSERVATION PRO- 
GRAM • Statements by the President and the Secretary 
of State 735 

THE PROGRAM OF THE INTERDEPARTMENTAL 

COMMITTEE ON SCIENTIFIC AND CULTURAL 

COOPERATION: 
The Assembly of the Librarians of the Americas • 

Article by Marietta Daniels 715 

Hemisphere Development of Social Services • Article 

by T. J. Woojter 720 

THE GENEVA CHARTER FOR AN INTERNATIONAL 
TRADE ORGANIZATION: Subsidies and State 
Trading 711 



For complete contents see hack cover 



Vol. XVII, No. 43i 
October 12, 1947 




-»tes 



;. .-,. bl^fERI^^"E^!DENT OF DOCUMENTS 

OCT 23 1947 




t/Ae z/lefia/yi^ent /)^ i/tate JLJ Li. i JL \j L 11 1 



Vol. XVII, No. 432 • Publication 2937 
Oacber 12, 1947 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26, D.C. 

BtlBSCRIPTlON: 

62 Issues, $5; 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 
he reprinted. Citation of the Department 
OF' State Bulletin as the source wai 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- 
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- 
natioruil interest. 

Publications of the Department, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



THE GENEVA CHARTER FOR AN INTERNATIONAL 
TRADE ORGANIZATION 



IV. Subsidies and State Trading 



The draft charter for the International Trade 
Organization, adopted by the Preparatory Com- 
mittee of the United Nations Conference on Trade 
and Employment at Geneva, and recommended by 
it to the World Conference which will convene at 
Habana on November 21, 1947, made a number of 
important changes in the texts of the sections on 
subsidies and state trading which had been tenta- 
tively agreed upon at the meetings at London and 
Lake Success. 

These two sections play a more important role 
in the draft charter than would be apparent from 
the space they occupy. This is especially true 
of the section on state trading, which includes only 
2 of the 100 articles of the document but which 
attempts to answer one of the most difficult ques- 
tions that have faced the Preparatory Committee — 
whether countries which carry on trade through 
state enterprises can conduct their commerce with 
private-trading countries on amicable and mu- 
tually profitable terms or whether the rapid 
growth of state enterprises dooms the world to a 
permanent cleavage between two systems, with 
economic warfare between them the normal state 
of affairs. 

Before the first session of the Preparatory Com- 
mittee thei'e were many who believed that there 
was no satisfactory solution to this problem — that 



state-trading enterprises have an artificial advan- 
tage over competitive private traders that can be 
met in private-trading countries only by govern- 
ment monopolies — in other words, by universal 
state trading throughout the world. 

The Preparatory Committee did not accept this 
as the answer. It could not. For even if it had de- 
cided to draw a curtain between the state-trading 
and the private-trading worlds it could not have 
written satisfactory trade rules for the latter while 
ignoring the problem of state trading. Nearly 
every country, including the United States, had 
acquired during the war some experience with 
state trading. And this experience could be used 
effectively by any member to nullify all the other 
obligations of the charter if there were no pro- 
visions in the charter to prevent it. 

While the rapid growth of state trading 

Editor's Note : This is the fourth in a series of articles 
describing the draft charter for an international trade or- 
ganization formulated at Geneva by the Preparatory Com- 
mittee for the United Nations Conference on Trade and 
Employment, which will open at Habana on November 21 
of this year. The first three articles dealt with the Gen- 
eral Commercial Provisions of the Charter, with the ques- 
tion of Quantitative Restrictions, and with the problem of 
Employment and Economic Development as related to 
the Charter. Later articles will discuss Cartel and Com- 
modity Policy and the Structure of the ITO. 



October J 2, 1947 



711 



tliroughout the world increased the importance 
of the problem, its solution was made more diffi- 
cult by the lack of precedent. When the Prepara- 
tory Committee held its first meeting at London 
last autumn, it was faced with the task of writing 
rules for an area of trade which had hardly been 
touched by any previous international agreement. 
The Preparatory Committee at its first session 
devoted considerable effort to working out for- 
mulas to fit both subsidies and state trading into 
the pattern of the other commercial-policy pro- 
visions of the draft charter. These formulas were 
further refined at the meeting of the Interim 
Drafting Committee at Lake Success. Wlren the 
Geneva meeting convened, these earlier drafts had 
been studied and criticized in detail not only in the 
United States but in the other countries repre- 
sented at the meetings. A possible result of that 
public discussion might have been a stiffening of 
the desire of each country to maintain its own 
freedom of action in these fields. Listead, the 
Preparatory Committee at Geneva amended both 
sections, particularly that on state trading, in the 
direction of the tightening of their requirements 
and the closing of possible avenues of escape from 
their provisions. 

Relation of Subsidy and State-Trading Provisions to 
General Commercial Policy 

Tlie general purpose of the commercial-policy 
chapter of the draft charter has been outlined be- 
fore in this series of articles. But a brief review 
may be worth while so that the part played by the 
subsidy and state-trading sections in the charter 
may be better understood. 

In broad outline, the two most fundamental 
purposes of chapter IV of the charter are to in- 
crease the volume of international trade by reduc- 
ing trade barriers and to reverse the trend of the 
intei'war years toward bilateralism. Bilateral 
trading — the attempt by a country to bring its 
trade with each other country separately into bal- 
ance — was a characteristic feature of the 1930's. 
Expressed through such devices as barter agree- 
ments, blocked curi-encies, and differential ex- 
change rates, it could be accomplished only by 
discrimination between countries. Its result was 
a smaller volume of world trade and lower stand- 
ards of living. 

In general, therefore, the commercial-policy 



chapter attempts to abolish the more restrictive 
forms of trade barriers, isolating import duties as 
the only form of protection generally permitted, 
and requires that those duties be the subject of 
negotiation for their limitation or reduction. 
And to combat bilateralism, the draft charter in 
general outlaws discrimination among members in 
the application of any form of protection that is 
permitted. The rest of this analysis is, in brief, 
a description of the way in which these two prin- 
ciples have been applied to the subject of subsidies 
and state trading. 

Although a subsidy is not necessarily a barrier 
to trade and may sometimes create trade that 
would not otherwise take place, it can operate so 
as to give a country a greater share of world ex- 
poi'ts than it would enjoy if its producers were 
forced to sell at world prices. Wlien a subsidy 
has this effect and particularly if it consists of a 
direct export subsidy, it almost inevitably leads 
to retaliation and therefore to discrimination. 

It is equally true that state trading does not 
necessarily represent a barrier to trade. Its dan- 
ger lies in the fact that a government can, simply 
through the day-to-day operating decisions of the 
state-trading enterprise, discriminate as among 
foreign suppliers or markets without, by law or 
regulation, applying such openly restrictive de- 
vices as import quotas, exchange controls, or dis- 
criminatory tariffs. Furthermore, when the state- 
trading enterprises, as is often the case, has a mo- 
nopoly of the country's export or import trade in 
a given jDroduct, it may reduce or completely cut 
off imports or exports by a simple administrative 
decision not to buy or sell. 

The Preparatory Committee, therefore, had the 
task of circumscribing the use of subsidies and of 
bringing state trading within the pattern estab- 
lished elsewhere in the charter for private-trading 
operations, so that state-trading enterprises could 
not be used in such a way as to nullify the obliga- 
tions accepted by governments with respect to 
their private trade. 

Subsidies 

Briefly, the Geneva draft of chapter IV, section 
C, on subsidies (chapter V, section D, of the Lon- 
don and New York drafts) provides that where a 
member maintains any subsidy that would have 
the effect of increasing its exports or decreasing its 



712 



Department of State Bulletin 



imports it will report the fact to the International 
Trade Orpinization and, where the subsidy preju- 
dices the interests of another member, will consult 
with that member in an eifort to avoid serious con- 
flict. Furthermore, after two years from the date 
the charter is adopted, it will not, except in certain 
carefully prescribed cases, subsidize exports or 
maintain any other system which has the effect of 
dinnping goods abroad at less than the domestic 
price. 

These basic rules are qualified by certain neces- 
sary exceptions. The International Trade Organ- 
ization is authorized to exempt a member from 
the ban on export subsidies in the case of a par- 
ticular product, under certain circumstances. If 
a nonmember, who is not bound by the same pro- 
visions as members, should maintain a subsidy 
which reduces the markets of a member, that mem- 
ber may grant a subsidy to its own producers or 
exporters to offset the effect on it of the nonmem- 
ber's subsidy. Another provision allows for in- 
cidental subsidies that may temporarily result 
from the operation of a price-stabilization scheme 
in a primary commodity. 

Primai-y commodities are also the subject of 
another important exception to the outright pro- 
hibition of export subsidies. It will be recalled 
that the draft charter elsewhere makes reco^ition 
of the peculiar economic difficulties which often 
exist in the case of primary commodities (espe- 
cially agricultural commodities) , by providing that 
where such a commodity is in world surplus and 
where certain other carefully prescribed conditions 
are met, the general rules against the use of con- 
trols in world trade may be suspended if member 
governments enter into a conmaodity agreement to 
stabilize trade or prices. The subsidy section, 
therefore, provides that a member which finds it 
is unable to comply with the rule against export 
subsidies may, in the case of a primary commodity 
meeting the requirements for an international 
commodity agreement, ask that the procedures for 
establishing such an agreement be initiated. If an 
agreement is concluded and operates successfully, 
the member's difficulties could be solved as part of 
an international stabilization scheme. On the 
other hand, if it becomes evident that an agreement 
cannot be concluded or operated successfully, the 
International Trade Organization may in its dis- 
cretion exempt the member from the prohibition on 

October 12, 1947 



the use of export subsidies. Incidentally, the 
terms of this provision inspired the only reserva- 
tion to the draft charter that was made by the 
United States Delegation. The objection of the 
United States was that the procedures required 
of a member using an export subsidy are more re- 
strictive tiian those which apply to members using 
a different form of subsidy, even where the latter 
may have the same effect on world trade. 

State Trading 

Section D of chapter IV of the Geneva draft 
charter (chapter V, section E, of the London and 
New York drafts) is entitled "State Trading". 
The two articles of this section actually cover the 
operations of any enterprise, even if privately 
owned, which because of governmental aid or spe- 
cial franchise is enabled to operate without effec- 
tive competition. 

Article 30 provides that the principle of non- 
discrimination should apply to state-fostered en- 
terprises, just as the most-favored-nation principle 
is applied to measures taken by governments them- 
selves to direct the flow of trade. More specifi- 
cally, it interprets this to mean that the enterprise 
mitst, so far as its purchases or sales affecting ex- 
ports or imports are concerned, act according to 
commercial considerations. At Geneva this ob- 
ligation was made still more explicit by the addi- 
tional provision that the enterprises of other mem- 
bers must be given an opportunity to compete for 
the international business of the state-trading en- 
terprise "in accordance with customary business 
practice". A parallel obligation was added under 
which members agree not to prevent enterprises, 
including competitive private enterprises, from 
acting according to commercial considerations. 

Finally, the purchases of members for their own 
governmental use are exempted from the provi- 
sions of the article, thus leaving a government free 
to follow any policy it chooses in its purchases for 
its armed forces, for strategic stock piles, or for 
similar purposes. 

The most important change made in article 30 
at Geneva was the abandonment of any attempt 
to define a "state enterprise" and the imposition on 
the member government itself of unqualified re- 
sponsibility for the behavior of any enterprise to 
which it has granted an exclusive or special privi- 
lege. Under the revised article no state can avoid 

713 



its provisions by arguing that the enterprise is 
not state owned or operated. 

Article 30 is concerned entirely with the ques- 
tion of discrimination and is not directed toward 
the level of protection that can be afforded to 
domestic enterprises by the operation of a state- 
trading monopoly. The latter is the function of 
article 31, which accomplishes the dual purpose of 
subjecting these monopolies to limitations on the 
use of quantitative restrictions, parallel with the 
limitations applied elsewhere in the charter, and 
of requiring that the remaining protection against 
imports, or barriers to exports, shall be subject to 
negotiation among members, as in the case of the 
obligation to negotiate export and import duties 
affecting competitive private trade. 

The logic of article 31 is to provide in the case 
of state monopolies the closest possible parallel 
to the obligations found elsewhere in the com- 
mercial policy chapter — namely, to require the 
elimination of all forms of quantitative restriction 
and then, having isolated the permitted forms of 
protection, to make that protection subject to 
negotiation for its limitation and reduction. 

In the case of private trade the permitted form 
of protection is the import duty. In the case of 
a state monopoly it is an almost exactly parallel 
right to place a resale price on the imported com- 
modity higher than the import price plus costs and 
reasonable profit. Just as any member country 
is required to publish its maximum import duties, 
a country maintaining a state monopoly is re- 
quired to declare the maximum protective mai;gin 
that it will charge when it resells the imported 
product in its domestic market. It then has the 
same obligation to negotiate the height of that 
protection with other members as if the protection 
were actually an import duty. In fact, the extent 
of the parallel has been emphasized in the latest 
draft of the article by using the words "import 
duty" to refer to this maximum margin of protec- 
tion. And, under the terms of the article, the pro- 
tection could actually be accorded in the form of 
an import duty, in which case no additional pro- 
tection by means of a protective price margin 
would be permitted. This will be the situation 
wherever a member has negotiated the level of its 
tariffs without specific reference to the operations 
of any monopoly it may maintain. Thus the tariff 
negotiations which have taken place at Geneva 
will have established simultaneously the maxi- 



mum protection that may be afforded to domestic 
producers of the commodities scheduled in the 
resultant agreement, whatever form that protec- 
tion may take. 

If we again look at private trade for compara- 
tive purposes, it is clear that once a country has 
established a maximum import duty on a product 
and has agreed to give up any form of quantitative 
restriction, the only possible limit to the quantity 
of imports is the amount that its domestic pur- 
chasers will buy at the price resulting from the 
addition of the duty to the world price. Article 
31 brings about the same result in the case of a 
state monopoly by providing that, at the price 
resulting from the established maximum markup, 
the monopoly must meet the full domestic demand. 

One other provision of article 31 requires a brief 
mention. There are cases where a raw material 
is imported and then further processed or, as is 
typical with tobacco, mixed. Under these circum- 
stances it is sometimes impossible to detei'mine the 
actual margin between the import price and the 
final selling price to consumers. To take care of 
these cases or of others where the interested mem- 
bers may prefer to negotiate on something other 
than the establishment of a maximum price mar- 
gin, the article permits any other form of negotia- 
tion that may be satisfactory to the members con- 
cerned. Although the nature of these alternative 
negotiations is not specified, they could, for ex- 
ample, result in the determination of the maximum 
difference between the price paid by the monopoly 
for imports and the price paid for a competitive 
domestic product. Or they might, in some cases, 
result in a guaranty by the importing country of 
a certain volume of imports, provided that any 
such guaranty must, under the terms of article 31, 
be applied without discrimination as among the 
various members who export the product. 

This provision for flexibility of negotiation was 
one of the more important of the changes made in 
article 31 at Geneva. But other changes, particu- 
larly the requirement that the maximum margin 
of protection be published, com^jleted the process 
of equalizing the obligations of members main- 
taining state-trading enterprises and of those who 
dejjend entirely upon private trade. In short, a 
formula was found and agreed upon under which 
state trading can be fitted into a liberal system of 
world commerce, patterned on the traditional 
model of private competition. 



7J4 



Department of State Bulletin 



THE PROGRAM OF THE INTERDEPARTMENTAL COMMITTEE 
ON SCIENTIFIC AND CULTURAL COOPERATION 



The Bulletin ■presents two articles on phases of the worh 
of the Interdepartmental Committee on Scientific and Cul- 
tural Cooperation: The Assembly of Librarians of the 
Americas and the Ilemisphere Development of Social 
Services. They represent particular activities of inter- 
agency planning in concert with similar groups in the other 
American republics. The Bulletin of September 28 con- 
tained an article on the Committee itself and one on the inter- 
American agricultural program. These articles demonstrate 
the exchange of skills, techniques, and knowledge particularly 
among the peoples of the American republics. 



The Assembly of Librarians of the Americas 

by Marietta Daniels 



A new and significant milestone was passed in 
hemispheric cultural relations and in library and 
Bibliographic matters with the convocation of the 
Assembly of Librarians of the Americas in Wash- 
ington from May 12 to June 6, 1947. This Assem- 
bly was organized by the Library of Congress and 
the Department of State as part of the program 
of the Interdepartmental Committee on Scientific 
and Cultural Cooperation. The governments of 
the other American republics, the American Li- 
brary Association, and the Pan American Union 
gave full cooperation. Librarians from Puerto 
Eico, Canada, and the Philippines were sent by 
their institutions or organizations to join those 
from the other American republics, and from the 
United States. In many cases they represented 
committees of the American Library Association 
and other professional organizations. 

The Assembly was inaugurated by the Librarian 

Ocfober 12, 1947 



of Congress, Luther H. Evans, on May 12 "to 
foster library development in the Americas and 
to stimulate library relations among the countries 
of the Americas, within the framework of world 
library development, and in the interest of world- 
wide Hispanic studies." In order to draw up a 
blueprint for carrying out these objectives, the As- 
sembly in its four weeks' deliberations took up 
each of tlie basic problems facing Latin American 
librarians and delved into the many aspects of in- 
ternational library cooperation. General sessions 
were held to provide an opportunity for both Latin 
American and North American delegates to dis- 
cuss freely the general topics of the role of the 
library in modern society and how library coop- 
eration can be accomplished in the Americas, the 
resources necessary to make the library an influ- 
ential and competent social institution, the tech- 
nical developments in library organization and 

715 



adiiiinistration, and the broader aspects of modern 
library service, such as education for librarianship, 
extension of library service, and the development 
of international library relations. Seminars al- 
lowing more time for consultation and discussion 
were held for topics requiring expert or technical 
advice and knowledge, such as library architecture, 
union catalogs, children's libraries, photographic 
reproduction, and library binding and preser- 
vation. 

Five working committees were organized to deal 
with specific problems that have been facing Latin 
American librarians for some time or have ham- 
pered essential inter-American library coopera- 
tion: education for librarianship; technical proc- 
esses ; acquisitions ; bibliography ; and library serv- 
ices and development. An Inter-American Li- 
brary Relations Committee considered the prob- 
lems of an inter- American or international nature 
posed by the five working committees. A Find- 
ings Conmiittee coordinated the resolutions of the 
various committees and then presented them to the 
Assembly-at-large. An Executive Committee to 
direct the activities of the Assembly was chosen 
from among the delegates. 

Assembly Officers 

Luther H. Evans was elected chairman of the 

Assembly. The officers of the above-mentioned 

committees, usually with co-chairmen, were as 

follows : 

I. Education for Lihrarianship : 

Carlos Victor Penna, Argentina ; and Arthur E. 
Gropp, Director of the Artigas-Washington Li- 
brary in Montevideo, Uruguay 

II. Technical Processes: 

Jorge Aguayo, Cuba ; and Amelia Krieg, Head of 
the Catalog Department, University of Washing- 
ton, Seattle 

III. Acquisitions: 

Hector I^ienzalida, Chile; and Phillips Temple, 
Director of the Library, Georgetovra University, 
Washington, D.C. 
IV. Bibliography: 

Augusto Kaijl Cortazar, Argentina ; and Miron 
Burgin, Editor of the Handbook of Latin Ameri- 
can Studies, Library of Congress, Washington, 
D.C. 
V. Library Services and Development: 

Galileo Patlno, Panama ; and Mrs. Helen Stein- 
barger, Consultant in Adult Education, Public 
Library of the District of Columbia, Washington, 
D.C. 

716 



VI. Executive Committee: 

Rubens Borba de Moraes, Director of the Na- 
tional Library of Brazil ; and Jorge Basadre, Di- 
rector of the National Library of Peru 
VII. Inter-American Library Relations: 

Iiubens Borba de Moraes, Director of the Na- 
tional Library of Brazil ; and Janeiro Brooks, Li- 
brarian of the Columbus Memorial Library, Pan 
American Union, Washington, D.C. 
VIII. Findings Committee: 

Francisco Aguilera, Library of Congress, Wash- 
ington, D.C. 

General Sessions of the Assembly 

Di-scussion at general sessions was directed by 
a Latin American moderator and a North Ameri- 
can assistant moderator. An equal number of 
Latin American and North American librarians 
or specialists formed a panel discussion for each 
topic. 

The Latin American librarians agreed that they 
are faced with two fundamental difficulties in mak- 
ing their libraries live social institutions for the 
modern world. One difficulty is the lack of prop- 
erly trained professional personnel, a problem in- 
volving education and training and the formation 
of library associations. It is one which impedes 
proper progress in the organization of national 
library resources and in technical and biblio- 
graphic development, as well as in the service that 
the library should render. The second difficulty is 
the apathetic or unawakened attitude both of the 
public and of government officials to the advan- 
tages of adequate library service, with its ensuing 
lack of financial and cultural support for library 
maintenance and development. This second diffi- 
culty is contingent upon the fii'st — the absence of 
well-trained and well-organized professional per- 
soimel. Children's-library development, rural- 
library extension and service to special types of 
readers are hampered. 

The principal obstacles for providing a well- 
rounded collection of book and non-book materials 
for libraries throughout the Americas were found 
to be: (1) lack of sufficient financial support; (2) 
customs, monetary, copyright, and postal impedi- 
ments to the free flow of books and other publi- 
cations among the countries of the Western 
Hemisphere; (3) inaccessibility of and inconven- 
ience encountered in attempting to secure govern- 
ment publications and periodical subscriptions; 
(4) need for better exchange relations and agree- 

Depattmeni of itafe Bullelin 



inents between libraries of the Americas; (5) in- 
adequate trade and subject bibliographies, espe- 
cially of Latin American publications; and (6) 
iiisurticient knowledge of the library resources of 
the Americas, due in part to lack of bibliographies 
and in part to poor organization of book 
, collections. 

Although many of the more progi-essive librar- 
sies, where trained technical personnel have been 
1 available, are well-organized, well-cataloged, and 
; well-classified, many libraries in Latin America 
have until recent years been inadequately organ- 
ized for the maximum efficiency to the reader. The 
paucity of library tools of a technical nature in 
the Spanish and Portuguese languages has hin- 
dered the progress that might otherwise have been 
made during the last few years. The Assembly 
agreed that the Latin American problem concern- 
ing library organization can be met by the con- 
certed effort of the professional librarians in 
compiling the necessary tools, which would in turn 
lessen the existing difficulty in the technical train- 
ing of librarians. 

During the general session devoted to education 
for librarianship, the committee concerned re- 
ported to the Assembly on thfe principles of library 
education as follows: (1) the establislunent of 
new library schools and improvement in the 
curricula of existing ones; (2) the requirements 
of Type I schools in terms of prerequisites, sub- 
jects, and class hours; (3) professional library de- 
grees; (4) exchange of students; and (5) forma- 
tion of an association of library schools and 
library-science professors. 

The chief obstacles to library extension into 
rural and factory areas are insufficient funds, lack 
of personnel and equipment, and poor communi- 
cation routes. It was noted, nonetheless, that much 
is currently being done by Latin American li- 
braries in cooperating with literacy campaigns, 
agricultural fairs, and package libraries. 

The Assembly, which had begun its deliberation 
with a concern for the problems facing Latin 
American libraries, closed its sessions with the 
broader consideration of international library re- 
lations. It received reports on the library and 
bibliographic programs of unesco, the Depart- 
ment of State, the International Federation of 
Library Associations, the American Library As- 
sociation, and other professional library groups, 

Ocfofaer 12, 1947 

763074 — 47 2 



and from the Pan American Union. The meeting 
of the Assembly was in itself an optimistic indica- 
tion and a positive proof that inter- American 
library cooperation is practicable. 

Seminars 

The experience of North American specialists in 
subject and technical fields was drawn upon by the 
seminars scheduled during the Assembly. For the 
seminar on library architecture, the architecture 
students of Walter E. Bogner of Harvard Uni- 
versity prepared plans and a table model for a 
proposed library and bibliographic center to be 
constructed in Buenos Aires. Francis O. Keally, 
library architect from New York, gave a descrip- 
tive talk with slides on the reconstruction of the 
Brooklyn Public Library. Alfred Jaros, Jr., con- 
sulting electrical engineer to Mr. Keally, discussed 
heating and air-conditioning of libraries in the 
various climatic zones. Joseph L. Wheeler, 
librarian emeritus of the Enoch Pratt Library and 
author of several books on library building and 
planning, talked on functional needs in library 
architecture. 

Mary Angela Bennett, Supervisor of the Bind- 
ing and Photography Department, Columbia 
University Libraries, spoke about photographic 
equipment for library use. Dr. Bennett also took 
part in the seminar on "Bookbinding, Care and 
Preservation". This topic also attracted to the 
meeting of the seminar John Adams Lowe, Direc- 
tor of the Rochester Public Library and Chairman 
of the A.L.A. Bookbinding Committee, and Miss 
Frieda Boessel, Superintendent of Binding at the 
Enoch Pratt Free Library. 

Mrs. Mary Alexander, of the Brooklyn Public 
Library and formerly children's librarian of the 
Benjamin Franklin Library in Mexico City, served 
as assistant moderator for the seminar on library 
work with children and young people. Miss Nora 
E. Beust, specialist in school and children's li- 
braries in the U.S. Office of Education, and Miss M. 
Bernice Wiese, acting supervisor of school libraries 
for the Baltimore Department of Education, also 
took part in the seminar. 

Committee Activities 

The general sessions and seminars provided op- 
portunities for the librarians of the Americas to 
exchange opinions and knowledge and to broaden 
their professional acquaintances. The main work 

717 



of the Assembly and the immediate and concrete 
results were accomplished by the committees. In 
addition to ironing out many problems, which 
could best be done by group consultation, they 
developed and presented to the Assembly-at-large 
57 resolutions for consideration as the findings of 
the Assembly. 

The Committee on Education for Librarianship 
examined the various schools and courses offered 
in library service throughout Latin America and 
arrived at definite norms for prei-equisites and 
curricula. To assure its future work, the Commit- 
tee proposed the formation of a Latin American 
association of library-service schools and pro- 
fessors. 

The Committee on Technical Processes em- 
barked on a number of projects which necessitated 
several subcommittees. The subcommittee on Bra- 
zilian-author names studied the problem of catalog 
entry of author names of Brazilian and Portu- 
guese origin and the customary practices in the 
several countries to determine what course should 
be recommended for the Library of Congress and 
elsewhere throughout the Americas. It was agreed 
that in general the second surname, usually tlie 
paternal one, should be the entry name. The sub- 
committee on subject headings studied as thor- 
oughly as possible many compilations of subject 
headings in Spanish and agreed that all of these 
were inadequate. In order to perfect a definitive 
list that would meet the needs of Latin American 
librarians, it was recommended that a permanent 
subcommittee be formed with a secretariat to re- 
ceive and compile definite recommendations for 
subject headings. 

The subcommittee on classification studied and 
approved certain history classification tables for 
Latin American countries which had been com- 
piled under the direction of the Dewey Decimal 
Classification Editorial Office for inclusion in the 
new official edition of Decimal Classification. It 
recommended the extension of the Assembly sub- 
committee to compile tables for the few remain- 
ing countries where tables are still lacking. It 
recommended the use of the Dewey decimal clas- 
sification in libraries throughout Latin America 
and urged the translation into Spanish of the 
official edition when it is published. To continue 
the work on technical processes begim during the 
Assembly, the committee proposed to the Assem- 



bly-at-large the establishment of a Latin Ameri- 
can committee on teclmical processes and a joint 
committee of the Americas on cataloging rules. 

The Acquisitions Committee endeavored to re- 
solve several problems regarding the purchase and 
exchange of books, maps, government publications, 
and periodical subscriptions. It studied postal 
and customs regulations, copyright restrictions, 
and problems involved in payment of purchases 
in other countries. It recommended several 
courses of action to improve the situation and sup- 
ported a proposal to use the American Book Center 
as a central exchange agency. To continue the 
work, it recommended a permanent inter-Ameri- 
can acquisitions committee with a subcommittee 
to compile a selected list of dealers in the inter- 
American book, periodical, and map trade. 

The Bibliography Committee concerned itself 
chiefly with the promotion of bibliographic work 
in the national field, subject field, and in library 
literature. It resolved to encourage the United 
States Department of State to continue its valua- 
ble work of translating into Spanish, French, and 
Portuguese important boolcs by United States 
authors. It set up certain norms for bibliographic 
entry which it hoped would be widely followed in 
Latin American bibliographic endeavors. For 
the compilation of current as well as retrospective 
bibliography on librarianship, it proposed the ap- 
pointment of a Latin American commission on 
library-science bibliography. 

The Committee on Library Services and Devel- 
opment considered the various programs through- 
out the Americas for extending libraries' services, 
promoting children's libraries, providing rural li- 
brary services and service to special readers, such 
as industrial workers, and carrying on book week 
and other publicity campaigns. It emphasized 
the need for public support for libraries and the 
formation of "Friends of Libraries" groups. It 
recommended the establislmient of central regional 
libraries and legislation to support adequate 
library service. 

The Committee on Inter-American Library Re- 
lations advocated administrative and financial 
autonomy for national libraries. For better ex- 
change relations among libraries of the Americas, 
it proposed to the Pan American Union that an 
exchange manual be issued. 

In order to plan for a second Assembly, to be 



718 



Department of Stale Bulletin 






held possibly in 1949, and to supervise the work of 
the long-range projects beg\in during the confer- 
ence in Washington, a Preparatory Commission 
for the Second Assembly of Librarians of the 
Americas was formed. An Executive Committee 
was named to carry forward the planning for the 
Second Assembly. 

Other Activities in Connection With the Assembly 

In addition to the formal sessions of the Assem- 
bly, delegates participated in supplemental activ- 
ities which acquainted them with some of the li- 
braries and other cultural institutions in the 
United States. The Pan American Union post- 
poned the opening of its annual exhibit of Latin 
American book production until May 11, so the 
delegates might attend. It also entertained the 
delegates in the Aztec Garden of the Pan Ameri- 
can Union. A literary evening was spent at the 
Library of Congress, at which the Spanish poet, 
Juan Kamon Jimenez, gave a talk; Gabriela Mis- 
tral read a paper; and Karl Shapiro, Consultant 
in Poetry to the Library of Congress, read several 
of his poems. A concert was dedicated to the dele- 
gates by the Budapest String Quartet and accom- 
panying artists. One day was spent visiting the 
Enoch Pratt Free Library in Baltimore. 

Some time was spent in New York inspecting 
tlie Columbia University Library and the New 
York Public Library. Delegates also visited and 
discussed with officials the work of the Carnegie 
Endowment for International Peace, the Mergen- 
thaler Linotype Company, the Library Journal, 
Publishers'' Weekly, and the H. W. Wilson Com- 
pany. 

For three weeks the delegates touied around the 
United States, inspecting libraries and other edu- 
cational institutions and meeting and discussing 
problems with officials of these institutions. Visits 
were paid to the Yale University Library, the 
John Carter Brown Library in Providence, the 
Boston Public Library, Simmons College, the li- 
braries of the Massachusetts Institute of Tech- 
nology, the Harvard Libraries, and the Houghton 
Library. The program in Boston was plamied 
by the Pan American Society of New England, 
which also entertained in honor of the visiting 
delegates. Delegates visited the Rochester Public 
Library, the Butfalo Public Library, the Chicago 
Public Library, the John Crerar and Newberry 

Ocfofaer 72, 7947 



Libraries, and the libraries of the University of 
Chicago, Loyola University, and Northwestern 
University. In Chicago, the American Library 
Association held a reception for the delegates, at- 
tended also by membei-s of the Pan American 
Council of Chicago and consular representatives. 

The group of visiting delegates proceeded fi'om 
Chicago in two groups. The first group visited 
the University of Minnesota and the public and 
special libraries in Minneapolis and St. Paul ; the 
Public Librai'y and Joslyn Memorial in Omaha; 
the Denver University Library, the Public Library 
and Rocky Mountain Bibliographical Center in 
Denver ; and local libraries in Salt Lake City. The 
second group visited the Public Library, Wash- 
ington University libraries, and the newly organ- 
ized St. Louis County Library in St. Louis. The 
Staff Association of the Kansas City Public Li- 
brary met with the gi-oup in that city. At Albu- 
querque, the group inspected the library of the 
University of New Mexico ; at Santa Fe they were 
greeted by the Mayor and the Governor of New 
Mexico, and met with many writers and specialists 
in Latin American history and culture; other li- 
brai'ies and historial and archeological museums 
in New Mexico were also visited. In California, 
the Los Angeles Public Library, the Huntington 
Library and Gallery, and other cultural institu- 
tions were visited. Both groujjs of travelers were 
met cordially by public and private officials and 
organizations on their journeys ; several local pan- 
American societies entertained in their honor. 
En route, many of the scenic and historic spots of 
the United States were seen. 

The final phase of the Assembly of Librarians 
began on June 29 in San Francisco where the dele- 
gates attended the annual meeting of the American 
Library Association. They were cordially re- 
ceived by local librarians and officers of the Asso- 
ciation and were formally presented at the opening 
session of the A.L.A. Many of the delegates were 
invited to talk at special sessions or committee 
meetings during the week. 

The "BSueprint for Tomorrow" 

The Assembly of Librarians of the Americas 
officially came to a close in San Francisco on July 
5, 1947. However, the foundations for permanent 
structure were laid before the Assembly adjourned 
in Washington on June 6. In addition to the Ex- 
ecutive Committee of the Pi-eparatory Commission 

719 



for a Second Assembly, other permanent or semi- 
permanent committees were created : 

1. Latin American Association of Schools of Library 

Service 
Carlos Victor Penna, Argentina, Secretary General 

2. Latin American Committee on Technical Processes 
Caribbean Area: Gonzalo VeU'iquez (Puerto Rico) 
Central America and Mexico : Maria Teresa Chavez 

(Mexico) 
Brazil : Maria Luisa Monteiro (Brazil) 
Nortbern South America: Cecilia Jimenez (Colombia) 
Southern South America : Carlos Victor Penna (Argen- 
tina), Chairman 

3. Joint Committee of Librarians of the Americas on Cata- 

loging Rules. (To be formed of representatives of the 
above committee and representatives of the A. L. A. 
Division of Cataloging and Classification from both 
the United States and Canada.) 

4. Inter-American Committee on Classification 
Hector Fuenzalida (Chile), Chairman 

5. Subcommittee on Classification for Roman Law 
Jorge Basadre (Peru), Chairman 

6. Latin American Commission on Library Service Bibli- 

ography 



Augusto Rafil Cortazar (Argentina), Secretary General 

7. Inter-American Acquisitions Committee 

Mrs. Edith C. Wise (Library of Congress), Chairman 

8. Subcommittee To Compile a Selected List of Dealers in 

the Inter-American Book, Periodical, and Map Trade 

These various committees and subcommittees 
have already begim to function. 

The Assembly of Librarians of the Americas will 
stand out as an event of historic significance in 
inter- American library exchange and cooperation. 
It will exert a great influence on a generation of 
workers in the library field throughout the Amer- 
icas. The professional benefits received and ac- 
quaintances made at the Assembly will continue to 
generate cooperative exchanges among librarians, 
and the groundwork was successfully laid for con- 
tinued consultation, exchange, and improvement 
of library services and achievements among the 
American republics. 



Hemisphere Development of Social Services 



iy T. J. Woofter 



Health, security, and family welfare are uni- 
versal human needs. Cooperation in the satisfac- 
tion of these basic needs is cooperation that can 
be easily understood by everybody. The Ameri- 
can republics are, therefore, as eager to cooperate 
in the organization of programs for ministering 
to human and cultural needs as they are in the 
organization of technical programs concerned with 
more material affairs. This was recognized by 
President Truman in his message of May 23, 1947. 
Although the message was mainly concerned with 
proposed legislation for military collaboration 
among the nations of the Western Hemisphere, the 
President stated that: 

". . . it is the policy of this Government to en- 
courage the establishment of sound economic con- 
ditions in the other American republics which will 
contribute to the improvement of living standards 
and the advancement of social and cultural wel- 



fare. Such conditions are a prerequisite to inter- 
national peace and security." 

There are in the other American republics ex- 
panding groups of professional men who are be- 
coming more interested in the exchange of ideas 
with their North American colleagues. The fields 
of medicine, education, public welfare, anthro- 
pology, sociology, and economics are attracting 
more and more leaders' and are being enriched by 
the exchange of students and professors who come 
to U.S. colleges. These professional groups 
hitherto have been inclined to look to Europe for 
their training and collaboration. Now, with the 
European continent deeply absorbed in economic 
survival and with the facilities of science and edu- 
cation devastated by war, they are forced to turn 
more and more to this country for assistance. This 
presents to North American professional men an 



720 



Department of State Bulletin 



obligation and an opportunity that we cannot 
afford to shirk. 

The ultimate success of inter- American organi- 
zations is largely dependent upon the extent to 
which their programs can be translated into con- 
crete action. Most of these organizations are not 
staffed to carry out such programs. They are con- 
cerned with formulation of policy and determina- 
tion of the best ways and means of accomplishing 
mutually beneficial results. To be effective these 
policies must reach down to the citizens of all of the 
countries. In order to accomplish the objectives, 
personnel must be trained, scientific literature ex- 
changed, and oi'ganizations strengthened. Some 
of the principal inter- American organizations in 
tlie social field are the Inter- American Statistical 
Institute, the Institute of Social Anthropology, 
the American International Institute for the Pro- 
tection of Childhood, the Inter-American Commit- 
tee on Social Security, the Pan American Sanitary 
Bureau, and the Inter-American Economic and 
Social Council. 

These organizations are hemisphere counter- 
parts of the specialized agencies associated with 
the Economic and Social Council of the United 
Nations. As the machinery of the United Nations 
becomes stronger and as its policies are developed, 
the hemisphere organizations should provide re- 
gional agencies for carrying out United Nations 
programs. Thus, scientific and cultural coopera- 
tion between the governments concerned will be 
integrated in the larger setting of world policies 
of cooperation and at the same time will have re- 
gional mechanisms for more intensive development 
of mutual respect and mutual understanding. 

The types of skills which are available for U.S. 
cooperation in carrying out inter-American social 
programs are varied. They are located in a num- 
ber of different bureaus of the Federal Govern- 
ment, which act as administrative agencies for 
carrying out the foreign policies of the Depart- 
ment of State. 

With the view of promoting mutual understand- 
ing, studies of contemporary culture have been 
made in a number of countries under the auspices 
of the Institute of Social Anthropology of the 
Smithsonian Institution. These are genuinely co- 
operative enterprises in as much as the staffs are 
composed of nationals of a number of countries. 
Tliey are cultivating a common understanding of 

Ocfofaer 72, 7947 



the cultures of the Hemisphere and exchanging 
scientific techniques. 

Problems of land settlement involve much more 
than the mere determination of the availability of 
land for agricultural purposes. Along with the 
question of huid allocations comes the necessity 
to build rural communities to deal with problems 
of tenancy and farm labor and to provide for the 
development of institutions in the newly colonized 
areas. Under the sponsorship of the Department 
of Agriculture, some of the ablest rural sociolo- 
gists in the country are detailed from state col- 
leges of agriculture to advise with ministries of 
agriculture on these relationships of men to land. 
They bring back with them a live knowledge of 
characteristics and actual operation of rural so- 
ciety in Latin America, which will give their stu- 
dents an accurate insight into the problems of the 
Hemisphere. These missions, likewise, are co- 
operative in' every sense, since the American expert 
works with nationals in the country to which he is 
detailed. 

The development of industry creates many 
pressing problems of protection for the workers. 
In the Department of Labor, the Division of Labor 
Standards and the Women's Bureau are extending 
valuable technical assistance in this field. Safety- 
inspection classes have been organized and train- 
ing materials prepared; cooperation in safety 
programs has been extended not only to govern- 
mental organizations but also to management, vo- 
cational schools, and schools of engineering. 

Elimination of child labor and the control of 
youth employment are fundamental steps in im- 
proving working conditions and increasing indus- 
trial efficiency. Child labor specialists have ex- 
tended assistance in the development of this 
program. 

Much of the new industry in these countries is 
of a type which employs a considerable number 
of women. Likewise, in some of the countries in- 
dustrial homework is developing, and it is this type 
of industrial organization that tends especially to 
exploit women in their homes. It is therefore 
essential to extend the basic improvements neces- 
sary for health, safety, and greater protection and 
to suggest methods of enforcing laws and enlisting 
the cooperation of management in the improve- 
ment of working conditions. 

In the Federal Security Agency, programs of 

721 



cooperation are under way or contemplated in six 
divisions. 

Social science is dependent upon statistics for 
accurate measurement of the needs of people and 
of the pi-ogress made in meeting these needs. For 
this reason preparations are under way for a 1950 
census of the Hemisphere. The National Office of 
Vital Statistics, of the U.S. Public Health Service, 
is participating in this work along with other sta- 
tistical agencies of tlie Government. The National 
Office of Vital Statistics is endeavoring to cooper- 
ate with every Latin American country to develop 
an accurate system of registration of births and 
deaths by the time the 1950 census is taken. This 
work is of basic importance, because the projection 
of the enumerated population beyond the date of 
the census is dependent upon accurate records of 
subsequent births and deaths. 

Life tables are essential for accurate insurance 
calculations, whether they are for commercial op- 
erations or for social insurance. This phase of 
vital-statistics analysis is greatly in need of de- 
velopment, since only one or two Latin American 
countries have complete life tables with a few oth- 
ers having partial tables based on death rates in 
cities only. Likewise, the location of special health 
problems and the measurement of their intensity 
are dependent upon the accurate registration and 
analysis of vital statistics. Neither are the admin- 
istrative uses of the birth and death certificates to 
be overlooked. In Venezuela, for instance, every 
effort is made to have a copy of the birth certificate 
placed immediately in the hands of the maternal 
and child health authorities in order that they may 
visit the family to see that full instruction in ma- 
ternal and child hygiene is given. In the rainy 
season such visits to the rural areas become quite 
difficult, but the problems of accurate registration 
and promjit transportation are being vigorously 
attacked. 

Since mutual understanding is basic to success- 
ful cooperation, the collaboration of school officials 
is also essential. The U.S. Office of Education has, 
for a number of years, provided broad programs, 
such as studies and demonstrations of methods of 
teaching English and the organization of educa- 
tional systems in Latin America. These programs 
not only assist in bringing the most progressive 
developments of education in the United States 
to Latin America but also provide materials for 

722 



our teachers colleges and courses in international 
relations. 

Progress in the organization of social security 
.systems is proceeding rather rapidly throughout 
the Hemisphere. The system of some of the Latin 
American countries, Chile in particular, antedates 
the inauguration of social security in the United 
States. Most of the social security systems to the 
south have been developed with the advice of the 
International Labor Office and have, consequently, 
followed somewhat different trends from the move- 
ment in the United States. Particularly do the 
South American systems emphasize medical care, 
whereas to date such provisions have not been in- 
cluded in the social security system of the United 
States. The American republics, therefore, have 
much to learn from the exchange of ideas and 
techniques, and this exchange is being organized 
by the Social Security Administration. Follow- 
ing the meetings of the Inter-American Commit- 
tee on Social Security, the preliminary detail of 
experts from this country, and conferences of so- 
cial security officials from Latin American coun- 
tries, it is planned to extend the program of the 
detail of social security experts in an advisory 
capacity as rapidly as funds and personnel will 
permit. 

The Office of Vocational Rehabilitation is now 
planning a program with the Interdepartmental 
Committee on Scientific and Cultural Cooperation, 
relating to our system of removing occupational 
handicaps and restoring employability to disabled 
persons. Advice is being sought on the manufac- 
ture of devices for overcoming physical disability 
and on methods of vocational training for the 
handicapped. Guatemala has recently installed a 
workmen's compensation system and is particu- 
larly interested in the rehabilitation of the indus- 
trially injured. 

From the very beginning of the inter- American 
program in specific activities, the care and pro- 
tection of children has been recognized as an essen- 
tial part of that program. Maternal and child 
health work includes prenatal care, special studies 
of rheumatic fever, midwife training, consultation 
in problems of nutrition and mental hygiene, and 
other safeguards to the health of young people. 
Other phases of child welfare have also been 
emphasized; in Brazil, for instance, the National 
Children's Agency has brought 22 young women 
from 10 states in the interior for training as child 

Department of State Bulletin 



welfare aides, and they will return as leaders to 
their local communities. The U.S. Children's 
Bureau has likewise been influential in assisting 
several schools of social work in the training of 
child welfare workers and leaders. 

One of the first active inter-American organiza- 
tions was the Pan American Sanitary Bureau, 
which has a long history of effective cooperation 
in the i^rotection of health. The U.S. Public 
Health Service has continuously cooperated with 
their programs and has reinforced their activities 
by the detail of public health officers. The assist- 
ance of the Interdepartmental Connnittee on Scien- 
tific and Cultural Cooperation has enabled the 
Public Health Service to increase materially the 
effectiveness of this program. 

The United States-Mexican border sanitary pro- 
gram has been most fruitful in the field of coopera- 
tion between these countries. It includes the 
promotion of direct contact between state and local 
health officials along the border, for the control of 
venereal disease, tuberculosis, malaria, and other 
communicable diseases; for health education and 
the organization of community councils; and for 
exchange of information on water supply. 

The public health service program in other coun- 
tries, likewise, includes technical advice in com- 
bating tuberculosis, bubonic plague, venereal dis- 
ease, malaria, and other insect-borne diseases. The 
sanitary engineers have made a number of studies 
for the improvement of water supplies and milk- 
distribution systems. They have also cooperated 



with inter-American airlines in the protection of 
passengers and have trained ground force person- 
nel in sanitary practices. The development of 
thoroughgoing environmental sanitation is not 
only important in the ah'eady settled areas, but it 
is also the first essential for the colonization of 
many sections of Latin America which are now 
almost uninhabitable because of health hazards. 
Consultation in public health nursing has been ex- 
tended to a number of countries in order to raise 
the standards of the nursing profession and the 
efficiency of training facilities. The training of 
nurses and doctors and the provision of health 
facilities is also a part of cooperation in the field 
of health. However, the small size of the program 
to date has hardly made an impression on the need. 

In all of these programs collaboration takes the 
form of the detail of experts from this country to 
work with government departments and private 
organizations and also extends to the provision of 
facilities for nationals of other countries to observe 
social and economic conditions and programs for 
improvement in the United States. Likewise, a 
considerable proportion of the Latin American 
students in our colleges are enrolled in courses in 
medicine, public health, and social science. 

Cooperation in the varied humanitarian fields 
which have been described in this article provides a 
necessary balance between cultural and scientific 
activity. Cooperation in promoting better ways of 
living is an effective antidote to a common assertion 
that the United States is wholly materialistic in its 
interests. 



OcJofaer 12, 1947 



723 



ACCOMPLISHMENTS OF THE COMMISSION ON NARCOTIC DRUGS 



Second Session, July 24 to August 8, 1947 



by George A. Morlock 



The Commission on Narcotic Drugs during its 
second session considered the situation created by 
the development of new synthetic drugs which 
may have habit-forming characteristics, particu- 
larly the drug amidone. This drug, according to 
experts, is a drug of addiction just as dangerous as 
morphine. The Commission agreed to recommend 
to the Economic and Social Council that the Secre- 
tary-General should be instructed to draft a pro- 
tocol in accordance with principles approved by 
the Commission and to circularize the draft to all 
governments concerned, for their early observa- 
tions. These steps are calculated to bring amidone 
under international control. 

In response to the request of the Government 
of Peru, the Commission recommended that a com- 
mission of inquiry be sent to Peru and to such 
other countries concerned as may give their ap- 
proval, in order to make a survey of the effects 
of coca chewing. 

The Commission also studied the trends in the 
illicit traffic, noting that Mexico, Iran, India, and 
Turkey were sources of clandestine supply of 
opium; agi'eed that there should be no exports 
from, or manufactui'e or production of, narcotics 
in Japan ; recommended that countries which have 
failed to submit annual reports be reminded of 
their obligation to do so; approved of a plan for 
preparing a digest of the laws of all countries on 
narcotic drugs; requested an appraisal of the 
world medical needs in terms of raw opium ; gave 
approval to a draft questionnaire on the limita- 
tion and control of the cultivation and harvest- 
ing of the coca leaf ; and noted with gratification 
the excellent results following the adoption of the 
policy of total prohibition of the smoking of opium 



in the Far Eastern territories of Great Britain, 
France, Portugal, and the Netherlands. 

The action of the Commission on the principal 
topics of the agenda is set forth below. 

Measures To Bring Under International Control 
Narcotic Drugs Not Covered by Conventions at 
Present in Force 

On the subject of the new synthetic drugs, the 
Commission heard two experts in the United 
States Public Health Service, who found that one 
of these drugs, amidone, produces a morphine- 
like subjective reaction, euphoria, tolerance, and 
withdrawal symptoms and that it is a dangerous 
drug of addiction. It was also stated that amidone 
could be manufactured easily at low cost and that 
one suigle factory could supi^ly the entire needs of 
the world. The representative of the United 
States warned that amidone would soon be li- 
censed in the United States for manufacture, that 
it could be manufactured shortly in many other 
countries, and that if effective steps were not taken 
quickly to bring this and other similar drugs under 
control the ground gained in the long struggle to 
control narcotics might be lost. The Commission, 
having heard these reports, urged that the strictest 
safeguards be devised as soon as possible for bring- 
ing these drugs under international control. It 
was of the opinion that manufacture of and trade 
in these synthetic drugs could not be limited and 
controled in accordance with the jDrovisions of the 
1931 convention because of the fact that the appli- 
cation of article 11 of the convention, containing 
provisions for bringing new drugs under this con- 
vention, is limited to the phenanthrene alkaloids 
of opium and the ecgonine alkaloids of the coca 
leaf. Neither are the provisions of the 1925 con- 
vention applicable because that convention, aim- 



724 



Department of State Bulletin 



ing mainly at controling the trade in drugs to 
which it applies, does not directly limit their manu- 
facture and trade. The Commission agreed that 
the conclusion of a separate international instru- 
ment to cover new drugs which do not fall under 
the 1931 convention will have distinct advantages 
over the procedure of amending existing conven- 
tions. The Commission approved a memoran- 
dum^ prepared by the Secretariat, containing the 
provisions which might be included in the new 
instrument, reading in part as follows : 

The adoption of a new international instrument to cover 
new drugs wliioh do not fall under the 1931 Convention 
would have certain advantages over the procedure of 
amending existing Conventions provided that the new 
instrument : 

(1) Covers new drugs liable to produce addiction which 
do not fall under the 1031 Convention ; 

(ii) Applies to those drugs the system of control insti- 
tuted under the 1931 Convention (i.e. limitation and con- 
trol of the manufacture of and trade in these drugs on 
the basis of the estimates system created under the 1931 
Convention and including the enforcement measures under 
its Article 14) ; 

(ill) Contains provisions concerning its coming into 
force analogous to those adopted in respect of the 1931 
Convention (Article 30). 

It is considered that the following provisions should 
be included in the new instrument to achieve the aims 
set out under (i) and (iii) above: 

1. Any party to the new instrument which considers 
that a drug which is or may be used for medical and 
scientific purposes and to which the 1931 Convention does 
not apply, is liable to similar abuse as the drugs specified 
in Article 1, paragraph 2 of the 1931 Convention (i.e. that 
it is capable of producing addiction or convertible into 
a drug capable of producing addiction), shall send a noti- 
fication to that effect to the Secretary-General of the 
United Nations who shall transmit it to the other parties 
to the new instrument, to the Commission on Narcotic 
Drugs and to the World Health Organization. 

2. The Commission on Narcotic Drugs shall consider as 
soon as possible whether the measures applicable to drugs 
in Group I of Article I, paragraph 2 of the 1931 Convention 
should be provisionally applied to the drug in question, 
pending receipt of the findings of the World Health Organi- 
zation referred to in paragraph 3 below. 

If the Commission on Narcotic Drugs decides that such 
measures should be applied to the drug in question, a rec- 
ommendation of the Commission to that effect shall be 
communicated without delay by the Secretary General of 
the United Nations to the Parties to this instrument, and 
the said measures shall apply as between parties which 
have accepted this recommendation. 

3. In the event of the World Health Organization finding 
that the drug in question is liable to similar abuse as the 

October 12, 7947 

763074 — 47 3 



drugs specified in Article I, paragraph 2 of the 1931 Con- 
vention, this Organization shall decide whether this drug 
shall fall : 

(a) Under the regime laid down in the 1931 Convention 
for drugs specified In Article I, paragraph 2, Group I, of 
this Convention, or 

(b) Under the regime laid down in this Convention for 
the drugs specified in Article I, paragraph 2, Group II, of 
this Convention. 

4. The Secretary General of tlie United Nations shall 
notify any finding or decision of the World Health Organi- 
zation to all States Members of the United Nations and 
non-Member States parties to the new instrument. 

5. Upon receipt of this notification the parties to the new 
instrument shall apply to the drug in question the appro- 
priate regime of tlie 1931 Convention in accordance with 
the decision of the World Health Organization, referred to 
in paragraph 3 above. 

6. Tlie provisions of this instrument shall not apply to 
Raw Opium, Medicinal Opium, Coca Leaf or Indian Hemp 
as defined in Article 1 of the 1925 Convention, or Pre- 
pared Opium as defined in Chapter II of the 1912 
Convention. 

7. Any recommendations, findings, and decisions re- 
ferred to in paragraphs 2 and 3 above may be revised 
in the light of further experience in accordance with 
the procedure outlined in paragraphs 1 to 5 above. 

8. The new instrument shall come into force sixty days 
after the Secretary General of the United Nations has 
received the ratifications or accessions of twenty-five 
States including any five of the following : China, Czecho- 
slovakia, France, Netherlands, Poland, Switzerland, Tur- 
key, United Kingdom, United States of America, Union 
of Soviet Socialist Republics, Yugoslavia. 

The Commission adopted the following reso- 
lution : ^ 

The Commission on Narcotic Drugs 

Having noted the urgent problem arising out of the 
development of new synthetic drugs capable of producing 
addiction, which are not covered by, and cannot at pres- 
ent be brought under the 1931 Convention for Limiting 
the Manufacture and Regulating the Distribution of Nar- 
cotic Drugs, and the serious dangers which may result 
if these drugs are not brought under control 

Having resolved that it is urgent to take action with 
respect to limiting the manufacture and regulating the 
distribution of these drugs 

Considering that this can best be effected by a new 
Protocol which would provide for bringing these drugs 
under the full international control of the 1931 Convention 

Approved the Memorandum E/CN.7/S0/Rev.2 prepared 
by the Secretariat on this matter including the outline 
of the provisions to be incorporated in a new Protocol, as 
decided by the Commission at its meetings on 25 July and 
1 .\ugust 



' U.N. doc. E/CN.7/80/Rev. 2. 
' U.N. doc. E/CN.7/100, p. 13. 



725 



Recommends to the Economic and Social Council that the 
Secretariat should be instructed to prepare a draft Protocol 
in accordance with the Memorandum E/CN.7/80/Rev.2 
and to circulate the draft to all governments concerned 
for their early observations, these observations to be con- 
sidered by the Commission at its next session, v^ith a view 
to the said Protocol being brought into force at the earliest 
possible moment. 

On August 13, 1947, the Economic and Social 
Council at its fifth session approved the recom- 
mendation of the Commission on Narcotic Drugs. 

Request by Peruvian Government for Field 
Survey of Effects of Chewing Coca Leaf 

The Government of Peru requested the Commis- 
sion to consider the possibility of organizing a com- 
mission to study the effects of coca-leaf chewing 
and presented a recommendation ^ reading : 

Recommendation to the Narcotics Commission 

Presented hy the Representative of Peru 

to the Economic and Social Council 

OONSIDEEING : 

(1) That the alkaloid known as cocaine is obtained 
from the coca whicli is widely grown in the valleys of South 
America ; 

(2) That since time immemorial the indigenous popu- 
lation of this part of the American Continent, especially 
along the Andean region of its West Coast, have indulged 
in the habit of chewing coca leaves ; and 

(3) That there is a large and highly controversial dis- 
pute as to the harmful or harmless effects of this habit 
upon the biological, social and economic activities of this 
very vital segment of the South American population ; 

Recommends: 

(1) To organize a committee or study group of experts 
in order to carry out a field survey, in cooperation with 
the World Health Organization, thus to determine : 

a. The harmful or harmless effects of the coca leaf 
chewing habit upon the human body in general or upon 
some specific organ in particular ; 

b. The factors or motives (i.e. climate, high altitude, 
diet, organic reserves, heredity, tradition, etc.) which 
prompt this chewing habit ; 

c. The social and economic implications of this aforesaid 
habit ; and 

d. The measures to be taken, should this habit prove 
to be harmful, in order to eradicate it from the population 
concerned. 

March yth, 1947. 

The Commission decided to recommend to the 
Economic and Social Council that a commission 
of inquiry should be sent to Peru and such other 



' U.N. doc. E/CN.7/67/Corr. 1. 
' U.N. doc. E/CN.7/100, p. 16. 



726 



countries concerned as might give it approval. 
The Commission also felt that the inquiry should 
include on-the-spot investigations regarding lim- 
iting the production and regulating the dis- 
tribution of coca leaves. It was agreed that the 
commission of inquiry's terms of reference should 
be those suggested in the proposal of the Peruvian 
Government and that the commission should in- 
vestigate the effects of the chewing of the coca leaf 
on the population and the effects of the limitation 
of the production of coca leaves on industry, agri- 
culture, and labor. It was decided that the mem- 
bers of the commission should include two medical 
men — one a psychiatrist and one an expert in in- 
dustrial hygiene — and two administrative experts, 
one of whom would be an economist. If the Eco- 
nomic and Social Council finds it fitting, it may 
appoint a fifth member to be chairman of the 
commission. 

The Commission on Narcotic Drugs thought it 
might facilitate the work of the commission of in- 
quiry if the Secretariat would collect all available 
medical and other scientific data bearing on the 
effects of the chewing of coca leaves, as well as all 
the available data relating to the production and 
consumption of and the trade in coca leaves and 
any other aspects of the problem. The Secretariat 
was instructed to seek, in particular, the coopera- 
tion of the World Health Organization. 

The Commission accepted the following resolu- 
tion * to be submitted to the Economic and Social 
Council : 

The Commission on Narcotic Drugs, 

Kecognizino the importance of the request of the Gov- 
ernment of Peru to determine with the least possible delay 
the effects, whether harmful or otherwise, of the chewing 
of the coca leaf in certain regions of South America, 

Recommends that the Economic and Social Council 
should approve in principle the despatch of a commission 
of enquiry to Peru and such others of the countries con- 
cerned as may request such an enquiry. 

Control of Narcotics in Japan 

The Commission agreed that it should be en- 
sured that all certificates issued by the Japanese 
Government under chapter V of the 1925 conven- 
tion require endorsement by the Permanent Cen- 
tral Opium Board before being acted upon by an- 
other country; that there be no exports of nar- 
cotics from Japan; that no narcotic drugs be 

Depariment of State Bulletin 



produced in Japan; and that no manufacture of 
narcotics be pei'mitted in Japan. 

The Representative of China requested that the 
procedure initiated in pursuance of the resolution 
of the Economic and Social Council of March 28, 
1947,' should be expedited by forwarding the 
Councirs recommendation to the treaty-making 
powers as soon as possible. 

Control of Narcotics in Germany 

The United States Representative made the fol- 
lowing statement in regard to the narcotics situa- 
tion in the United States zone in Germany : 

"In the first session of the Commission on Nar- 
cotic Drugs, I described the narcotics situation in 
the United States zone in Germany. I stated that 
on the whole the control system in Germany was 
unsatisfactory. I regret to say that the control 
system is still unsatisfactory. 

"The United States authorities had hoped that 
the Working Party, established by the Allied 
Health Committee on September 11, 1946, would 
be able to make recommendations for the improve- 
ment of narcotics control in all four zones. The 
Working Party, at its first meeting on September 
23, 1946, having been instructed by the Public 
Health Committee to revise the German Opium 
Law of 1929, immediately requested the United 
States Representative to draw up a draft for the 
revision of that law. The United States Repre- 
sentative agreed and later submitted a proposal to 
the Working Party for its consideration. This 
proposal envisaged the revision of the law in such 
manner as to effect centralized control under quad- 
ripartite supervision and to control the production 
and use of poppy straw. The proposed revision 
■would also have facilitated the uniform interpre- 
tation and application of the law in all four zones, 
the establislunent of a central office for the collec- 
tion and distribution of statistical information re- 
garding the trade in narcotics, and the establish- 
ment of an efficient police force for the suppression 
of the illicit traffic in narcotics. 

"The draft of the United States Representative 
was discussed at five meetings of the Working 
Party, but agreement was not reached on any of 
the paragi-aphs in the proposal. No alternative 
proposals were introduced. The Soviet Repre- 
sentative at the fifth meeting of the Working Party 
on January 9, 1947, stated that the German Opium 
Law was satisfactory and that he was unable to 

Ocfofaer 12, 7947 



come to the opinion that it needed revision at that 
time. The Representatives of France, the United 
Kingdom, and the United States went on record 
that in their opinion the law did require revision. 

"In the course of the discussion, the representa- 
tives of the four occupying countries maintained 
that the German Opium Law was in full force 
and effect in their zones. From information in 
our possession, it would appear that the German 
Opium Law is administered differently in each 
zone with different degrees of success and effi- 
ciency. 

"In view of the attitude of the Soviet Repre- 
sentative, the Working Party came to the conclu- 
sion that it could not continue to consider the revi- 
sion of the law and informed the Allied Health 
Committee accordingly. The question was thus 
removed from the agenda, and the revision of the 
German Opium Law has been postponed for an 
indefinite period. 

"The Working Party still exists and expects to 
submit estimates to the Drug Supervisory Body 
of the 1948 requirements of Germany for narcotic 
drugs and to submit to the Permanent Central 
Board the other reports required by the inter- 
national drug conventions. It could be utilized in 
the development of a coordinated control system. 

"As no centralized administration has been set 
up, I desire to describe briefly matters relating to 
administration in the United States zone. The 
four Lander, each carrying out the functions of 
the former Reichsopiumstelle, operate in accord- 
ance with the German Opium Law as modified by 
Military Government regulations. Eacla opium 
office in each Land has inspectors supplemented 
by district physicians who are responsible for 
inspections. The offices are responsible for the 
inspection of factories and for submission of sta- 
tistics. They report monthly to Military Gov- 
ernment. They have no direct liaison with police 
officials, but through the efforts of Military Gov- 
ernment voluntary cooperation has been stimu- 
lated. Police officers who attended a course given 
by German police from March 3 to 15, 1947, have 
begun their activities, and there are indications of 
increased efficiency as a result. Supervision of the 
opium offices is maintained by one narcotics con- 
trol officer who also prepares I'eports which are 
transmitted to the United Nations by Military 



' U.N. doc. E/399. 



727 



Government. In the United States zone, Military 
Government regulations are losing their force as 
the Germans take over more and more functions. 
The abolition of these regulations would throw the 
whole responsibility into the hands of the Min- 
ister-president of each Land. 

"Military Government regulations prohibit the 
manufacture of heroin, the importation and expor- 
tation of narcotics into the United States zone or 
through the zone for export from Germany, and 
interzonal transactions except with permission of 
the Chief of the Public Health Branch. 

"The lack of a centralized administration has 
resulted in a scarcity of narcotic drugs for medi- 
cal requirements in certain areas in Germany. The 
long borders offer good opportunities for smug- 
gling, and there is a lack of experienced personnel 
to cope with the situation. 

"The United States Government has instructed 
its representative on the Allied Control Council to 
support or introduce proposals for action by the 
Council for tlie establishment of an effective sys- 
tem under which the control of narcotic drugs in 
the four zones in Germany would be coordinated, 
possibly by enlarging the scope of the existing 
Working Party." 

Article 19 of the Convention of February 19, 1925 

The Economic and Social Council ® at its fourth 
session on March 28, 1947, invited the Secretary- 
General "to initiate studies with a view to amend- 
ing or deleting the provision of Article 19 of the 
Convention of 1925 that required that members 
of the Permanent Central Oi^ium Board shall not 
hold any office which puts them in a position of 
direct dependence on their governments." The 
advice of the Commission having been sought in 
this matter, the Commission accepted the principle 
that a person, being appointed to the Board, 
should cease temporarily, i.e. for the duration of 
his membership on the Board, to exercise his func- 
tions as an official of his government, and while 
exercising his powers and functions as a member 
of the Board he should not act under the instruc- 
tions of his government. The Commission de- 
cided that members of the Board may represent 



" U.N. doc. E/399. See also Bulletin of Apr. 20, 1942, 
p. 687. 
' U.N. docs. E/CN,7/100, p. 20 ; E/CN.7/102. 
' U.N. doc. E/CN.7/101, p. 10. 

728 



their governments on the Commission during the 
sessions of the Economic and Social Council and 
the General Assembly of the United Nations. 

The Commission on Narcotic Drugs adopted the 
the following resolution ^ on this subject : 

The Commission on Narcotic Drugs, 

I. Having examined the memorandum prepared by the 
Secretariat (document E/CN.7/101) In pursuance of the 
invitation of the Economic and Social Council to initiate 
studies with a view to amending or deleting the provision 
of Article 19 of the Convention of 19 February 1925, in 
accordance with which the members of the Permanent 
Central Board shall not hold any office which puts them 
in a position of direct dependence on their Governments ; 

Considering that it would appear extremely doubtful 
that an amendment of the 1925 Convention would lead 
to a satisfactory result and that in any case the amend- 
ment procedure would entail very long delay ; 

Considering, moreover, that the meaning attributed by 
the Commission to the said provision of Article 19 of the 
1925 Convention would render its amendment unnec- 
essary ; 

Decides: 

To suggest to the Economic and Social Council that it 
should attribute to the fifth paragraph of Article 19 of 
the Convention of 19 February 1925, as amended by the 
Protocol on narcotic drugs of 11 December 1946, the mean- 
ing attributed to it in the paragraph (2) of Chapter IV 
of the memorandum' approved by the Commission (An- 
nex V of the Report of the Commission ) . 

II. Having come to the conclusion that, as a result of 
economic and social changes, it would be difficult to find 
suitable candidates to sit as members of the Permanent 
Central Board, without remuneration, and moreover, that 
members of the said Board should be granted privileges 
and immunities on the lines laid down by the Conven- 
tion on Privileges and Immunities approved by the Gen- 
eral Assembly on 13 February 1946; 

Recommends that the Economic and Social Council 
should take the measures necessary for granting to the 
members of the Permanent Central Board the above-men- 
tioned privileges and immunities, and also adequate re- 
muneration during their term of office. 

illicit Traffic 

The United States Representative made a state- 
ment regarding the illicit cultivation of opium 
poppies in Mexico, as follows: 

"I have received information from the Eepre- 
sentative of the United States who accompanied 
the Mexican officials engaged in making an aerial 
survey in Mexico last spring that the cultivation 
of the opium poppy in Mexico covers a large area 
and is increasing year after year. It is estimated 
on the basis of observation and photographs of 

Department of State Bulletin 



an area of about 1,000 square miles that the poppy 
fields now number close to 10,000, averaging one- 
half hectare (ly^ acres) or more per fiehl. The 
total area is between 4,000 and 5,000 hectares 
(10,000 and 12,500 acres), producing from 32 
to 40 metric tons of opium. The principal opium- 
producing area is roughly 6,000 square miles in 
extent. It forms a rectangle east of Bodiriguato, 
Sinaloa. It extends in a noi-th westerly direction 
with the eastern boundary on the western slopes 
of the Sierra Madre mountains. 

"The aerial survey I have mentioned was made 
northeast of Bodiriguato. Li this limited area of 
approximately 1,000 square miles, 1,500 to 1,700 
fields were observed. Outside of the 1,000-square- 
mile main area an additional 3,000 fields were 
observed. 

"For various reasons, notably the change in the 
administration, a misconception of the extent of 
the task, and the lack of manpower and finances, 
the 1947 opium-poppy destruction campaign con- 
ducted by the Attorney General achieved poor re- 
sults. Approximately 200 poppy fields, having a 
total area of only 36 hectares (90 acres), were 
destroyed by a ground expedition. 

"The cultivation of the opium poppy in Mexico, 
although prohibited by Mexican law, appears to 
be tolerated by the state and local authorities in 
the producing areas, with the possible exception 

I of the State of Sonora. 
"It is reported that between 20 and 30 secret 
landing strips for airplanes have been constructed 
in Mexico to handle the transportation of narcotics 
from Mexico to the United States. There is con- 
firmation of this on both sides of the border. The 
Mexican Government recently seized a plane 
loaded with narcotics in Mexico, and a crashed 
plane containing the bodies of two known narcotic 
smugglers was found in the United States. We 
also have information that underworld groups in 
the United States have their representatives in 
Mexico to promote the cultivation of the opium 
poppy, to purchase the crop, and to arrange for its 
transformation into more valuable and less bulky 
derivatives, thereby facilitating transportation. 

"Information received from reliable sources in- 
dicates that there are 12 or more clandestine lab- 
oratories in Mexico, a few of which are large and 
well equipped. Two of the laboratories have been 
seized during the last few months. It is estimated 
that at least one half of the raw opium produced 



in Mexico is being processed into either morphine 
or heroin. 

"The United States is concerned over the nar- 
cotics situation in Mexico because most of the nar- 
cotics produced are intended for smuggling across 
the border into our country and are a serious men- 
ace to the health of our people. In order to present 
a picture of the present situation along the border, 
I have in a separate paper described in detail a 
shooting affray that occurred a few weeks ago at 
Woodbine Check near Calexico between desperate 
Mexican smugglers and narcotics and customs- 
enforcement officers of the United States. I am 
authorized to state that my Government hopes that 
the Mexican Government will increase its activity 
without delay, in consonance with its international 
obligations, with a view to suppressing the illicit 
cultivation of opium poppies within its borders." 

The following resolution " regarding the situa- 
tion in Mexico, introduced by the Representative 
of the United States, was approved by the Com- 
mission: 

The commission on Narcotic Drugs 

Having taken note, during its examination of the inter- 
national illicit traffic, of reports tliat there is an enormous 
clandestine production of opium in Mexico, and 

CoNSiDEKiNQ that the escape of contraband opium from 
Mexico into the illicit traffic is a source of danger to other 
countries. 

Requests the Economic and Social Council to recommend 
that the Government of Mexico take appropriate measures, 
in fulfilment of its international obligations under the 
narcotics Conventions, to suppress the illicit cultivation 
of opium. 

The United States Representative drew atten- 
tion to certain cases of large supplies of military 
medical stores containing narcotic drugs having 
been sold or transferred to governments or private 
firms. He introduced the following resolution" 
which was adopted by the Commission : 

The Commission on Narcotic Drugs 

Having learned of cases of transfer from one country 
to another, after the cessation of hostilities, of certain 
surplus military medical stores containing narcotic drugs 
wliich were not covered by export certificates issued by 
the government of the exporting country, nor by import 
certificates issued by the government of the importing 
country, in accordance with the requirements of Chapter 
V of the Geneva Convention of 1925 



"U.N. doc. E/CN.7/100, p. 8. 
"Idem. 



October 72, 1947 



729 



CoNsroouNG that the failure to observe the provisions of 
the Convention of 1925 with regard to narcotic drugs con- 
tained in such surplus stores is liable to lead to the escape 
of these drugs into the illicit traffic 

Requests the governments to draw the attention of their 
military or other autliorities concerned to the importance 
of observing the provisions of the Convention in regard to 
the issuance of import and export certificates to cover all 
narcotic drugs contained in surplus military stores 

Recommends that any narcotic drugs not covered by 
import or export certificates which may come to light from 
such sources should be treated as seizures of illicit drugs 
and dealt with in accordance with the provisions of the 
Conventions concerning narcotic drugs. 

The Commission on Narcotic Drugs noted that 
a considerable quantity of opium was leaving 
Turkey and finding its way into Egypt through 
Syria and Palestine. The Commission further 
noted that large seizures of Indian hemp are still 
being made in Egypt, England, Lebanon, Pales- 
tine, Syria, Turkey, and the United States. 

Date and Place of the Third Session 

The Commission indicated that it would prefer 
that its third session be held at Geneva in April 
1948, in as much as the seventh session of the Eco- 
nomic and Social Council is scheduled for Geneva 
on April 27, 1948. 

Officers and Representatives on the Commission, 
Second Session 

The officers of the Commission elected at the 
first session were re-elected : Col. C. H. L. Sharman 



(Canada), Chairman; Dr. Stanislaw Tubiasz 
(Poland), Vice Chairman; and Dr. Szeming Sze 
(Cliina), Rapporteur. 

The representatives present at the session were : 

Canada Col. C. H. L. Sharman, C.M.G., 

C.B.E.I.S.O. 
China Dr. Szemine; Sze 

Dr. Chang-Yui Shu (Adviser) 

Dr. Hsiu Cha (Adviser) 

Egypt Dr. Mahmoud Labib 

France Gaston Bourgois 

India A. Sattanathan 

H. N. Tandon (Alternate) 
Than A. G. Ardalan 

A. G. Panahy (Alternate) 

Mexico Dr. Secundino Ramos y Ramos 

Netherlands. . . . J. H. Delgorge 

A. Kruysee (Alternate) 

Peru Dr. Jorge A. Lazarte 

Turket Dr. Cemal Kiper 

Fuat Eren (Alternate) 
Union of Soviet So- V. V. Zakusov 

ciALiST Republics Mr. Kamenev (Alternate) 
United Kingdom . . Maj. W. H. Coles, D.S.O. 
United States op Harry J. Anslinger 

America George A. Morlock (Adviser) 

John W. Bulkley (Adviser) 
Yugoslavia .... Stane Krasovec 

The representative of Poland, Dr. Stanislaw 
Tubiasz, was absent. Herbert L. May attended 
in his capacity as president of the Permanent 
Central Opium Board and member of the Super- 
visory Body. 



Current United Nations Documents: A Selected Bibliograpliy' 



General Assembly 

Official Records of the First Special Session of the General 
Assembly. Volume II. General Committee. Ver- 
batim Records of Meetings, 29 April-7 May 1047. V, 
130 pp. printed. [$1.25.] 

Volume III. Main Committees. Verbatim Records 

of Meetings, 28 April-13 May 1947. XII, 377 pp. 
printed. [$3.50.] 

General Committee. Request for the Inclusion of an Addi- 
tional Item in the Agenda of the Second Regular Ses- 
sion. Measures To Be Taken Against Propaganda and 
the Inciters of a New War. Proposed by the Union 



' 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. 



of Soviet Socialist Republics. A/BUR/86, September 

18, 1947. 2 pp. mimeo. 
Provisional List of Delegations to the Second Session of 

the General Assembly. A/INF/11, September 15, 1947. 

86 pp. mimeo. 
Tax Equalization. Report of the Advisory Committee on 

Administrative and Budgetary Questions. A/396, 

September 24, 1947. 3 pp. mimeo. 
Treatment of Indians in the Union of South Africa . . . 

Report of the Government of the Union of South 

Africa in Connection With the Recommendation of 

the General Assembly of 8 December 194G (Resolution 

44 (I)). A/387, September 15, 1947. 27 pp. mimeo. 
Procedures and Organization of the General Assembly . . . 

Report of the Committee on Procedures and Orj^aniza- 

tion. A/388, September 23, 1947. 66 pp. mimeo. 
Notification From the Secretary-General to the General 

Assembly Pursuant to Article 12, 2 of the Charter. 

A/389, September 16, 1947. 2 pp. mimeo. 



730 



Deparfmenf of State Bulletin 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



Arbitration Committee for Netherlands- Indonesian Dispute 



APPOINTMENT OF U.S. REPRESENTATIVE 



The President on October 1 appointed Frank 
Porter Graham, president of the University of 
North Carolina, as United States Representative 
on the committee of the Security Council estab- 
lished by resolution of August 25, 1947, to exer- 
cise the good offices of the Security Council in the 
dispute between the Republic of Indonesia and 
the Netherlands Government. 

The resolution of August 25, introduced by the 
United States, tendered the good offices of the 
Security Council to assist the pai'ties concerned in 
the pacific settlement of their dispute in accordance 
■with an earlier resolution of August 1, calling upon 
the governments concerned to settle their dispute 
by arbitration or other peaceful means and to keep 
the Council informed of the progress of the settle- 
ment. The resolution of August 25 expressed the 



readiness of the Security Council, if requested, to 
assist in the settlement through a committee con- 
sisting of three members of the Council. Accord- 
ing to this resolution, each of the disputants would 
select one member, and a third was to be designated 
by the two selected. 

The Republic of Indonesia selected the Govern- 
ment of Australia, which accepted on September 
22 and appointed Richard Clarence Kirby, mem- 
ber of the Australian Commonwealth Arbitration 
Court. The Netherlands Government selected the 
Government of Belgium, which accepted on Sep- 
tember 4 and appointed Paul Van Zeeland, former 
Belgian Foreign Minister. On September 18 the 
Governments of Australia and Belgium invited the 
United States to serve on the good offices com- 
mittee, and the invitation was accepted. 



RESOLUTIONS ON THE INDONESIAN QUESTION 



A. Resolutions Adopted at the 194th Meeting Held 
on 25 August 1947 

I. Whereas the Security Council on 1 August 
1947, called upon the Netherlands and the Repub- 
lic of Indonesia to cease hostilities forthwith, 

And whereas communications have been re- 
ceived from the Governments of the Netherlands 
and of the Republic of Indonesia advising that 
ordei's have been given for the cessation of hostili- 
ties, 

And whereas it is desirable that steps should be 
taken to avoid disputes and friction relating to 
the observance of the "cease fire" orders, and to 
create conditions which will facilitate agreement 
between the parties. 

The Security Council 

1. notes with satisfaction the steps taken by 

Ocfober J 2, J 947 



the parties to comply with the resolution of 1 
August 1947, 

2. notes with satisfaction the statement by the 
Netherlands Government issued on 11 August, in 
which it affirms its intention to organize a sov- 
ereign, democratic United States of Indonesia in 
accordance with the purpose of the Linggadjati 
Agreement, 

3. notes that the Netherlands Government in- 
tends immediately to request the career consuls 
stationed in Batavia jointly to report on the pres- 
ent situation in the Republic of Indonesia, 

4. notes that the Govemrment of the Republic of 
Indonesia has requested appointment by the Secur- 
ity Council of a commission of observers, 

5. requests the Governments members of the 
Council who have career consular representatives 

' U. N. doc. S/525, Aug. 26, 1947. 

731 



THB UNITED NATIONS AND SPBCIAUZBD ACBNCIES 

in Batavia to instruct them to prepare jointly for 
the information and guidance of the Security 
Council reports on the situation in the Republic 
of Indonesia following the Resolution of the Coun- 
cil of 1 August 1947, such reports to cover the 
observance of the "cease fire" orders and the condi- 
tions prevailing in areas under military occupa- 
tion or from which armed forces now in occupation 
may be withdrawn by agreement between the 
parties, 

6. requests the Governments of the Netherlands 
and the Republic of Indonesia to grant to the rep- 
resentatives referred to in paragraph 5, all facili- 
ties necessary for the effective fulfilment of their 
mission, 

7. resolves to consider the matter further should 
the situation require. 

II. The Security Council 

Resolves to tender its good offices to the parties 
in order to assist in the pacific settlement of their 
dispute in accordance with paragraph (B) of the 



Resolution of the Council of 1 August 1947. The 
Council expresses its readiness, if the parties so re- 
quest, to assist in the settlement through a com- 
mittee of the Council consisting of three members 
of the Council, each party selecting one, and the 
third to be designated by the two so selected. ^ 

B. Resolution Adopted at the 195th Meeting Held 
on 26 August 1947 

III. The Security Council 

Taking into consideration that military opera- 
tions are being continued on the territory of the 
Indonesian Republic : 

1. reminds the Government of the Netherlands 
and the Government of the Indonesian Republic 
of its resolution of 1 August 1947, concerning the 
"cease fire order" and peaceful settlement of their 
dispute ; 

2. calls upon the Government of the Netherlands 
and the Government of the Indonesian Republic 
to adhere strictly to the recommendation of the 
Security Council of 1 August 1947. 



Progressive Development of International Law and 
Its Eventual Codification 



RESOLUTION ON ESTABLISHMENT OF INTERNATIONAL LAW COMMISSION PROPOSED BY THE 

DELEGATION OF THE UNITED STATES » 



The General Assembly, 

Takes note of the Report of the Committee on 
the Progressive Development of International 
Law and its Codification (A/331, 18 July 1947), 
established pursuant to Resolution of the General 
Assembly, at its fifty-fifth plenary meeting. First 
Session, 11 December 1946 {Journal No. 75, Supp. 
A-64, Add. 1, page 944) : 

Recognizes the need for implementing Article 
13, paragraph 1, sub-paragraph (a) of the Charter, 
which provides for the initiating of studies and 
the making of recommendations for the purpose of 
encouraging the progressive development of inter- 
national law and its codification ; and 



' Part II of this document was introduced as a U.S. draft 
resolution and issued as U.N. doc. S/514 of Aug. 22, 1947. 
' U.N. doc. A/C.6/137, Sept. 24, 1947. 



Therefore 

Resolves that there is established an Interna- 
tional Law Commission to be composed of 



persons of recognized competence in international 
law selected as follows : 

1. The Members of the International Law Com- 
mission shall be elected by the General Assembly, 
at its Second Session if possible. 

2. Each Member State may nominate four can- 
didates for the Commission, not more than two 
of whom may be nationals of the nominating State 
and not more than two of whom may be non- 
nationals of the nominating State. 

3. The General Assembly shall elect members 
of the Commission from a panel of candidates 
compiled by the Secretary-General from nomina- 
tions made as aforesaid. 



732 



Department of State Bulletin 



4. In nominations and elections Member States 
shall boar in mind not only that the Commission 
should be composed of persons of recognized com- 
petence in the field of international law but also 
that in the Commission as a whole representation 
of the main forms of civilization and the principal 
legal systems of the world should be assured. 

5. Elections shall take place in accordance with 
the applicable rules of procedure of the General 
Assembly. 

6. A candidate who for purposes of membership 
on the Commission might be regarded as a national 
of more than one state shall be deemed to be a 
national of the state in which he ordinarily exer- 
cises civil and political rights. In the event of 
more than one national of the same State obtaining 
an absolute majority of the votes of the General 
Assembly, the oldest of these only shall be con- 
sidered as elected. 

7. In the event of a vacancy occurring in the 
Commission, earlier than six months before the 
end of the term of the member, the Secretary-Gen- 
eral shall request the International Court of Jus- 
tice to appoint a successor for the unexpired term. 

It is further Resolved that: 

8. The Members of the Commission, except 
those elected under paragraph (7.) above, shall 
serve for a term of three years and shall be eligible 
for re-election if the Commission is continued 
thereafter. 

9. The Commission shall have its headquarters 
at the seat of the United Nations. After consulta- 
tion with the Secretary-General, it may from time 
to time hold its sessions elsewhere. 

10. The first meeting of the Commission shall be 
convened by the Secretary-General; thereafter 
the Commission shall meet periodically at such 
times as it shall itself decide to be desirable and 
necessary for its work. 

11. In connection with such meetings, Members 
of the Commission shall be paid travel expenses, 
subsistence while in travel status in accordance 
with regulations and pi'actices covering travel 
expenses of the General Assembly delegates and 
representatives to the Economic and Social Coun- 
cil, and a per diem, to be determined in consultation 
with the Fifth Committee, taking into account the 
rates of per diem received by members of other 
expert bodies serving the United Nations. 



THE UmJED NATIONS AND SPECIALIZED AGENCIES 

12. The Commission shall determine its own or- 
ganization and procedures, giving due regard to 
paragraphs 7 to 20 of the Report of the Committee 
on the Progressive Development of International 
Law and its Codification which are appi'oved by 
the General Assembly. 

13. The Commission shall submit an annual 
report to the General Assembly. 

It is further Resolved that : 

14. The Secretary-General shall make available 
to the Commission under the functional super- 
vision of the Commission such staff and facilities 
requested by the Commission as the Secretary- 
General may deem practicable to enable the Com- 
mission to perform the functions herein assigned 
to it and as may be from time to time assigned to 
it by the General Assembly. 

15. It is the sense of the General Assembly that 
there should be developed within the Secretariat 
under the functional supervision of the Commis- 
sion a group of specialists in international law, 
public and private, who would devote their full 
time to the consideration of international law, its 
development and codification, the preparation of 
interim drafts on specific subjects, and generally 
to assisting the Conamission in the performance of 
its functions.* 



' The following amendments were proposed by the Dele- 
gation of the United Kingdom to the United States Draft 
Resolution (A/C.6/137) [U.N. doc. A/C.6/138, Sept. 25, 
1947] : 

Paragraph 1. Substitute "Third" for "Second" session 
— delete "if possible". 

Paragraph 3. Add "All nominations shall be communi- 
cated to the Secretary-General not later than 30 June 
1948." 

Paragraph 12. Add the words "other than paragraphs 
16-18" after the words "paragraphs 7-20" (line 2). 

Paragraph 15. Replace by the following: 

"The Commission is authorized to request the Secretary- 
General to engage as temporary members of the Legal 
Division of the Secretariat a limited number of suitable 
specialists in international law who will, in accordance 
with the directions of the Commission, devote their whole 
time to projects and studies which the Commission has 
decided to undertake. The Commission may suggest to 
the Secretary-General the names of the persons whom it 
desired to be so appointed and the Secretary-General shall 
engage them accordingly if they are willing to serve and 
unless, in any individual case, he has any objection to the 
iserson proposed. For the first term the numbers of 
persons to be so engaged shall not exceed 'X' and the re- 
muneration to be paid shall not exceed 'Y'." 



Ocfober 12, 7947 



733 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Activities and Developments 



APPOINTMENTS TO MANAGEMENT COMMIT- 
TEES OF RUBBER AND TIN STUDY GROUPS 

[Released to the press October 2] 

The Department of State announced on October 
2 that the President has approved the appoint- 
ment of Donald D. Kennedy, Chief, Division of 
International Resources, Department of State, as 
United States Representative on the Management 
Committees of both the Rubber Study Group and 
the International Tin Study Group. Frederic P. 
Bartlett, First Secretary and Consul, American 
Embassy, London, is appointed as Alternate 
Representative on both Committees. Karl L. An- 
derson, Assistant Chief, Division of International 
Resources, Department of State, is appointed to 
serve as Alternate Representative on the Manage- 
ment Committee of the International Tin Study 
Group. 

The Management Committee of the Rubber 
Study Group is scheduled to meet for the first time 
at London, England, October 2-3, and the Manage- 
ment Committee of the International Tin Study 
Group is scheduled to hold its first meeting at 
Brussels, Belgium, October 9-10, 1947. 

The Rubber Study Group was set up as an in- 
formal study group in September 1944 by joint 
announcement of the Netherlands, the United 
Kingdom, and the United States, to consider prob- 
lems of mutual concern relating to rubber. Its 
primary function is the assemblage of factual 
material for interested governments. The fourth 
meeting of the Rubber Study Group, in which 28 
governments and 3 international organizations 
participated, was held at Paris in July 1947. At 
this meeting it was recommended that a manage- 
ment committee be established, consisting of four 
of the member governments, which would direct 
all activities of the permanent Secretariat and pre- 



^ Priuted from telegraphic text. 
734 



pare a detailed budget. It is anticipated that the 
Committee will meet at least six times a year. 

The Tin Study Group is an intergovernmental 
body whose purpose is to maintain a continuous 
intergovernmental review of the world supply- 
and-demand position of tin. The establishment 
of a management committee was recommended at 
the first meeting of the International Tin Study 
Group at Brussels in April 1947. The Committee, 
consisting of representatives of the United States 
and six other governments, will appoint a secre- 
tary to the Tin Study Group, prepare a detailed 
budget, make the necessary financial provisions for 
and supervise the work of the Secretariat. It is 
expected that the Committee will meet approxi- 
mately four times a year, alternately at Brussels 
and The Hague. 

REPORT BY THE lEFC COCOA COMMITTEE' 

[Released to the press September 27] 

The Departments of State and Agriculture have 
received the following telegraphic report from the 
United States member of the International Emer- 
gency Food Council working party of the Cocoa 
Committee, dated September 25, 1947, from Am- 
sterdam : 

"The estimated world surplus of cocoa 1947^8 
is 645,000 long tons, of which 320,000 will como 
from British West Africa, 69,000 from French 
West Africa, 125,000 from Brazil, and 30,000 from 
the Dominican Republic. 

"Prospective supplies will permit an entira 
year's allocation of 90 percent basic entitlement. 
Interim allocation of 66% percent through Janu- 
ary 31 will be made. 

"Tentative United States annual allocation 
from British West Africa will be 130,000 long tons 
and 5,000 from French West Africa. Trade in 
cocoa butter will be ex-allocations." 

Department of State Bulletin 



THE RECORD OF THE WEEK 



Congressional Committees Examine World Food Crisis 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House September 29] 

I have conferred at length with congressional 
leaders with refei-ence to the critical economic sit- 
uation which exists in western Europe. I am 
writing to the chairmen of the Senate Committee 
on Foreign Relations, the House Committee on 
Foreign Affairs, tlie Senate Committee on Appro- 
priations, and the House Committee on Appro- 
priations, requesting that they call their com- 
mittees together to consider the urgent need for aid 
to western Europe. 

I know that some of the members of these com- 
mittees are now in Europe investigating condi- 
tions at first hand. It is my earnest hope that as 
soon as the members of the various committees 
have returned to this country they will meet. 

The question of the calling of a special session 
of the Congress was discussed at length with the 
congressional leaders. Whatever decision may be 
reached on this subject at a later date, it was the 
opinion of all that the committees should begin to 
consider the present emergency at the earliest 
possible date that the members are available. 

Recent events have brought about increasingly 
critical economic conditions in some of the coun- 
tries of western Europe. Unusually bad European 
harvests, together with rising costs and lessened 
supplies of American food, have upset recovery 



plans and endangered the progress already made. 
In particular, France and Italy are without ade- 
quate food and fuel supplies for the fall and winter 
and do not have the resources with which to buy 
them. 

The prospect of a general recovery program for 
western Europe, aided by the United States, has 
raised their hopes for eventual recovery and has 
strengthened democratic forces. But, if this re- 
covery program is to have a chance of success, 
means must be found for aiding France and Italy 
to survive this critical winter as free and inde- 
pendent nations. 

A searching examination has already been con- 
ducted of all possible ways in which France and 
Italy might be aided without additional action by 
the Congress. Action by various agencies of the 
Executive Branch under existing authority may 
meet the most urgent needs of the next few weeks, 
but funds available from Executive sources are 
inadequate to provide assistance beyond December. 
Assistance this winter, in sums much larger than 
the Executive Branch can provide with funds now 
at its disposal, is essential. That assistance can 
come only from the Congress. 

The early convening of the congressional com- 
mittees referred to is the necessary first step in 
meeting the problems that confront us. 



LETTER TO THE CHAIRMEN OF FOUR CONGRESSIONAL COMMITTEES 



[Released to the press by the White House October 1] 

On October 1 the President sent the following 
letter to the Chairman of the Committee on 
Foreign Relations, United States Senate; the 
Chairman of the Committee on Foreign Affairs, 
House of Representatives; the Chairman of the 
Committee on Appropriations, United States Sen- 
ate; and the Chairman of the Committee on Ap- 
propriations, House of Representatives : 

Mt Dear Mr. Chairman: The situation in 
Ocfofaer 12, 1947 



western Europe has, in the last few months, be- 
come critical. This is especially true in the cases 
of France and Italy, where slow recovery of pro- 
ductivity, particularly of goods for export, com- 
bined with the increasing drain on their dollar re- 
sources, has produced acute distress. 

The unusually bad harvests in western Europe, 
together with rising costs of imports, the unfor- 
tunate results of the temporary cessation of ster- 
ling convertibility and the near exhaustion of gold 

735 



THE RECORD Of THB WBEK 

and dollar reserves, have placed these two coun- 
tries in a position where they are without adequate 
food and fuel supplies for the fall and winter, and 
without sufficient dollars with which to purchase 
these essentials. They cannot, by their own ef- 
forts, meet this major crisis which is already upon 
them. 

Political groups that hope to profit by unrest and 
distress are now attempting to capitalize on the 
grave fears of the French and Italian people that 
they will not have enough food and fuel to sur- 
vive the coming winter. 

The prospect of a successful general economic 
recovery program for Europe is one of the major 
hopes for peace and economic security in the world. 
The Congress will soon be called upon to consider 
the part which the United States should play in 
aiding this program. But the program will have 
no chance of success if economic collapse occurs in 
Europe before the program can be put into oper- 
ation. Prompt and effective aid to meet the urgent 
needs of the j^resent is essential, lest the strains 
become too great and result in an expanding eco- 
nomic depression which would engulf western Eu- 
rope and, eventually, spread over much of the rest 
of the world. 

I have examined with great care the means now 
available to the executive branch of the Govern- 
ment to provide the necessary assistance. They 
may meet the urgent needs of the next few weeks, 
but it is clear that they cannot provide the neces- 



sary assistance beyond December, if as long as 
that. Kequirements beyond that time can be met 
only if further authority is granted by the Con- 
gress. 

The problems arising out of these circumstances 
are of such importance that they should be con- 
sidered by the Congress at the earliest practicable 
time. The early convening of your committee, 
together with other appi'opriate Congressional 
committees, is a necessary first step in this con- 
sideration. 

I am requesting, therefore, that you call your 
committee together at the earliest possible date to 
consider these iDroblems. I appreciate the fact 
that some of the members of your committee are 
investigating, or are planning to investigate, con- 
ditions in Eurojae at first hand. Time is of criti- 
cal importance in this matter, however, and I 
earnestly hope that arrangements can be made for 
convening your committee at an early date. 

The appropriate departments and agencies of 
the executive branch of the Government are pre- 
pared to provide information and make recom- 
mendations to your committee when its meetings 
begin. 

Very sincerely yours, 




Citizens Food Committee Inaugurates Conservation Program 



ADDRESS BY THE PRESIDENT' 



Members of the Citizens Food Committee: This 
group of distinguished citizens has met to consider 
the grave food problem facing the world today. 
You are here because millions of people in many 
countries are hungry and look to the United States 

' Delivered before the Citizens Food Committee at the 
White House Oct. 1, 1947, and released to the press by 
the White House on the same date. Charles Luckman 
is chairman of the Committee. 



for help. You are here because the United States, 
in addition to being a granary of bread, is even 
more a granary of hope. 

I have asked you to serve on the Citizens Food 
Committee, with Mr. Luckman as chairman, be- 
cause I believe strongly that making our food 
serve the best possible use in these critical times 
is a matter for action not by the Government alone 
but by all the people of the United States. Each 



736 



Department of State Bulletin 



of you possesses a special talent and lonj; experience 
in some phase of this problem. I know that you 
have accepted membership on the Committee in 
the full knowledge that you will be called upon to 
devote to the situation we face a generous amount 
of work and much conscientious thinking, as well 
as a deep concern for the common welfare. 

As is well known, this year's harvest has been 
very poor in many parts of the world. All through 
western Europe, cold and floods and drought have 
sharply reduced grain production. The result is 
that in the coming months these countries will 
have to cut their rations below the danger point 
unless they get more help, in the form of larger 
grain shipments, from the United States and other 
exporting countries. 

It is extremely important to the United States 
that any serious reduction in the rations of hungrj' 
people be prevented. Apart from humanitarian 
considerations, if rations are significantly cut this 
winter, economic rehabilitation will come to a stop. 
This, in turn, would increase the degree and dura- 
tion of dependence by other nations on special as- 
sistance from the United States. Most important, 
if we turn our backs upon these people they will 
turn from hunger to despair and from despair to 
chaos in areas where stability is essential to the 
peace and economic security of the world. 

In the face of this situation, the amount of grain 
which the United States can export is limited. All 
estimates indicate that about 470 million bushels 
of grain are the most we can plan to export under 
present conditions. At the same time there is 
strong evidence that we will have to export at least 
100 million bushels more than this, if we are to do 
our share in meeting the absolute minimum needs 
of distressed people in other countries. 

This 100 million bushels must be saved by the 
American people. This is our minimum goal. We 
know that only part of that saving can come from 
serving fewer slices of bread. The great part of 
the saving must come out of what we feed our 
livestock. We must also save out of what we 
waste and out of what we use in a score of ways 
for human food. 

This saving must be achieved, not by increasing 
prices so that the brunt of the sacrifice will be 
borne by those least able to buy food, but through 
an equitable sharing by all of our citizens. There 

Ocfober ?2, 7947 



THE RECORD OF TH£ WEEK 

will be more than enough food in the United States 
to go around, provided it is fairly distributed. 
Excessive prices, however, result in unfair dis- 
tribution. Already, increasing prices are bring- 
ing hardship to millions of Americans of low or 
moderate income. Failure to check price increases 
promptly will not only lower the American living 
standard but could impair the confidence of busi- 
ness and thus jeopardize the splendid record we 
have achieved in the maintenance of high employ- 
ment, high production, and general prosperity. 
We must get prices down and help hungry people 
in other countries at the same time. 

It has been estimated that we waste about 10 
percent of all the food we buy. Clearly, by wast- 
ing less, American families can help significantly 
in feeding hungry families abroad. In addition to 
cutting down waste, Americans can save by being 
more selective in the foods they buy. 

In our free enterprise system we place major 
reliance on the voluntary actions of businessmen, 
farmers, workers, and consumers. It is in accord- 
ance with this principle that I have consistently 
set forth a program for voluntary action in all 
parts of the economy. 

The appointment of the Citizens Food Com- 
mittee is a further step in this direction. The con- 
servation practices which this Committee works 
out, by reducing the demand for certain foods, 
should bring down some food prices and hence re- 
duce the cost of living. 

As representatives of all segments of our popu- 
lation, the Citizens Food Committee can help us 
plan where, how much, and what kinds of food 
we should save. It can enlist the aid of those who 
should support the program— consumers, retailers, 
food distributors and processors, and farmers. It 
can also develop the best ways of informing the 
public on what steps Americans, as individuals 
and groups, can take. 

We must deal with the problem quickly and de- 
cisively. Much depends, therefore, upon the vol- 
untary conservation measures which the Citizens 
Food Committee will propose. Much depends 
upon the speed and thoroughness with which the 
American people will put these voluntary meas- 
ures into effect. 

The saving asked of each individual is actually 
very small. One bushel of grain saved by every 
American in the next few months will do the job. 

737 



STATEMENT BY THE SECRETARY OF STATE 



[Released to the press by the White House October 1] 

Every humane, economic, and world political 
interest of the United States dictates that we, the 
American people, should do everything within 
our power to help feed the people of Europe this 
winter. 

The many reasons for the grave shortage of 
food, particularly in western Europe, have been 
explained to the country by the President. The 
urgency of the problem has developed with alarm- 
ing rapidity. It has now reached the stage where 
only the immediate and concerted action of our 
people as a whole can avoid the possible disaster 
resulting from further cuts in pitifully low rations 
throughout western Europe. Every American, I 
am sure, will gladly share his bounty with the 
hungry men, women, and children of Europe. 



Food is the very basis of all reconstruction. 

Hunger and insecurity are the worst enemies of 
peace. For recovery and political stability, 
Europe needs many things, but the most elemental, 
mdispensable need is food. 

Europe needs more food than she received from 
us last winter, and this country has a smaller 
quantity available to send her. This may seem 
to be an impossible situation, but it is not so if 
the American people really wish to find the 
answer. 

The Citizens Food Committee has laid down 
the challenge: "Buy wisely, eat sensibly, waste 
nothing." In short, all of us must "declare war 
on waste" in this country in order to win the "war 
against hunger" in Europe and its menace to world 
stability. 



Food-Saving Program as a Contribution to Peace 



ADDRESS BY THE PRESIDENT > 



My Fellow Citizens: The food-saving program 
which has just been presented to you has my whole- 
hearted support. I am confident that it will have 
the support of every American. 

The situation in Europe is grim and forbidding 
as winter approaches. Despite the vigorous ef- 
forts of the European people, their crops have 
suffered so badly from droughts, floods, and cold 
that the tragedy of hunger is a stark reality. 

The nations of western Europe will soon be 
scraping the bottom of the food barrel. They 
cannot get through the coming winter and spring 
without help — generous help — from the United 
States and from other countries which have food 
to spare. 

I know evei-y American feels in his heart that 
we must help to prevent starvation and distress 
among our fellow men in other countries. 

But more than this, the food-saving progi-am 
announced tonight offers an opportunity to each 
of you to make a contribution to peace. We have 
dedicated ourselves to the task of securing a just 
and lasting peace. No matter how long and hard 

' Broadcast over all national networks on Oct. 5, 1947, 
in connection with the President's Citizens Food Commit- 
tee Program, and released to the press by the White House 
on the same date. 



the way, we cannot turn aside from that goal. An 
essential requirement of lasting peace in the world 
is the restoration of the countries of western 
Europe as free, self-supporting democracies. 
There is reason to believe that those countries will 
accomplish that task if we aid them through this 
critical winter and help them get back on their 
feet during the next few years. They must do 
most of the job themselves. They cannot do it if 
thousands of their people starve. We believe that 
they can — and will — do the job if we extend to 
them that measure of friendly aid which marks the 
difference between success and failure. 

Their most urgent need is food. If the peace 
should be lost because Americans failed to share 
their food with hungry people, there would be no 
more tragic example in all history of a peace 
needlessly lost. 

Another reason for conserving food is to aid in 
controlling inflationary spirals and in preventing 
undue price burdens for our people at home. Al- 
ready many American families with moderate or 
low incomes are being forced by high prices to 
lower their standard of living. Exports have 
some effect upon domestic prices of grain, but 
they do not exercise a controlling influence on food 
prices. Most of the upward pressure on prices is 



738 



Deparfmenf of %\a\e Bulletin 



a result of competition among Americans for 
scarce goods. The success of our food-saving 
program will help to reduce these inflationary 
pressures. 

Another factor that contributes to high prices 
of food is gambling in grain. Grain prices natu- 
rally respond to the law of supply and demand, but 
they should not be subject to the greed of specu- 
lators who gamble on what may lie ahead in our 
commodity markets. 

There is a place for legitimate trading in fu- 
tures and for hedging transactions. But 90 per- 
cent of all accounts in a recent corn futures market 
were found to be speculative. Trading in wheat 
futures rose 75 percent in September compared 
with August. Normal trading in wheat at Chicago 
should amount to three or four million bushels a 
day. In this past September, however, trading 
averaged almost 30 million bushels a day. In a 
single month, on one exchange, almost half the 
year's crop was traded. 

I am instructing the Commodity Exchange 
Commission, which consists of the Attorney Gen- 
eral and the Secretaries of Agriculture and Com- 
merce, to demand of the grain exchanges that they 
increase their margin requirements to at least 331/3 
percent. If the grain exchanges refuse, the Gov- 
ernment may find it necessary to limit the amount 
of trading. 

I say this because the cost of living in this coun- 
try must not be a football to be kicked about by 
gamblers in grain. 

The food conservation program proposed by the 
Citizens Food Committee will be supported by 
every part of the Federal Government. 

Mrs. Truman has today directed that the Wliite 
House follow all the measures proposed by the 
Citizens Food Committee. In Government res- 
taurants and cafeterias throughout the country, 
these same measures will be followed. As Com- 
mander in Chief, I have ordered that the Army, 
the Navy, and the Air Force shall also comply with 
this program. 

All segments of our population must make their 
contribution toward saving grain. 

Farmers must cooperate by reducing the amount 
of grain now used to feed their livestock and 
poultry. 

Industry must reduce the volume of grain used 
so as to make the greatest possible saving. The 
distillers in this country have on hand huge stocks 



THE RECORD OF THE WBEK 

of distilled spirits, and it will be no hardship on 
them to shut down for a 60-day period. This action 
alone will feed millions of hungry people. 

Quite apart from the responsibilities of farmers 
and industry, you and I — as individual Americans 
— have our responsibility. You have all heard 
Mr. Luckman give the immediate consumer pro- 
gram for the people of the United States. It has 
my complete approval and my full support. 

It is simple and straightforward. It can be 
understood by all. Learn it; memorize it; keep it 
always in mind. Here it is : 

1. Use no meat on Tuesdays. 

2. Use no poultry or eggs on Thursdays. 

3. Save a slice of bread every day. 

4. Public eating places will serve bread and but- 
ter only on request. 

I realize that many millions of American house- 
wives have already begun strict conservation mea- 
sures. I say to those housewives, "keep up the 
good work" and save even more when and where 
you can. On the other hand, there are also many 
Americans who are overeating and wasting food. 
Unless these people cut their consumption in the 
ways required, they will be taking more than a fair 
share of the supplies available. They will be per- 
sonally contributing to increased inflation at home 
and to the desperate scarcity of food overseas. 

The battle to save food in the United States is 
the battle to save our own prosperity and to save 
the free countries of western Europe. Our self- 
denial will serve us in good stead in the years to 
come. 

The voluntary program is the best way for us to 
do the job. We believe that self-control is the 
best control. From now on, we shall be testing 
at every meal the degree to which each of us is 
willing to exercise self-control for the good of all. 

The program which has been presented to you 
tonight, if faithfully carried out, will save the 
grain we need. 

Hungry people in other countries look to the 
United States for help. I know that they will be 
strengthened and encouraged by this evidence of 
our friendship. 

I know that they will be waiting with hope in 
their hearts and a fervent prayer on their lips for 
the response of our people to this program. 

We must not fail them. 



Ocfofeer 12, J 947 



739 



European Economic Recovery Discussed With Representatives of CEEC 



[Released to the press October 3] 

The first group of technicians representing the 
Committee of European Economic Cooperation 
arrived in Washington on October 3 for conversa- 
tions with United States Government representa- 
tives and members of the Harriman Committee. 
The conversations, scheduled to open on October 6, 
will cover the ceec report on production, require- 
ments, and future plans for European economic 
recovery. This report by the 16 nations repre- 
sented on the CEEC at Paris was transmitted to the 
President on September 24.' 

Eepresentatives of the ceec will furnish explan- 
atory information to United States Government 
interdepartmental committees that have been 
studying the report, and to the Harriman Com- 
mittee. 

Members of the Executive Committee of the 
CEEC will discuss broad policy questions. It is ex- 
pected that the representatives of the ceec will 
then return to Europe in order to obtain any fur- 
ther information requested which they may not 
have available here. 

The technical conversations will be carried on by 
a number of committees: food and agriculture, 
coal, mining machinery, iron and steel, petroleum, 
balance of payments, inland transport, maritime 
transportation, timber, electric power, manpower, 
fertilizer, agricultural machinery, and miscel- 
laneous commodities. 

The 12 ceec technicians are : 

A. D. Marris, Lazard and Company 

G. E. Peterson, Ministry of Fuel and Power 

J. H. Broolj, Ministry of Fuel and Power 

Mr. Hills, Statistician 

T. G. Davies, Assistant to Minister of Fuel and Power 

Miss D. E. Ackroyd, Iron and Steel Board 

H. K. Fisher, Iron and Steel Board 

P. F. Rogers, Ministry of Supply 

J. Layton, Control Commission 



' For text of vol. I, the General Report, see Depart- 
ment of State publication 2930, European Series 28; for 
summary of the report, see Bixlletin of Oct. 5, 1947, 
p. 684. 



I. C. Combs, Foreign Office 

Miss Seeger, Board of Trade stenographer 

Miss Foster 

The second group will arrive on October 5. Sir 
Oliver Franks, who is the Chairman of the ceec 
Executive Committee, and representatives of sev- 
eral others of the participating countries wiU arrive 
October 9. 



Food, Coal, and Medicines Sent to Italy 

Statetnent hy Acting Secretary Lovett 

[Released to the press October 1] 

Food, coal, and medicines worth approximately 
65 million dollars will be shipped from the United 
States to Italy during October and November 
under the 332-million-dollar United States for- 
eign relief jjrogram. December allocations for 
shipments to Italy under the relief program have 
not yet been determined. 

During the three months since July 1, when 
shipments under the program were initiated, and 
up to October 1, the United States supplied Italy 
with 35 million dollars' worth of essential com- 
modities, making a total for the period July 1 
through November 30 of 90 million dollars. 

The grain represents the full amount of alloca- 
tions for shipment from the United States under 
the International Emergency Food Council allo- 
cations for these months, and the coal shipments 
cover the essential Italian coal requirements which 
the Italians have been unable to finance. 

During October and November Italy will be 
sent: 

Cereals 231, 000 long tons 

Soya flour 4,000 

Beans and peas 9, 933 

Rolled oats 4, 000 

Dry macaroni 3, 200 

Dry Spaghetti 3, 200 

Coal 1,100,000 

Penicillin $163,000 worth 

Streptomycin 134, 000 



740 



Department of State Bulletin 



Poland Opposes Industrial Plan for Germany on 
Grounds of "Unilateral Action" 



EXCHANGE OF NOTES BETWEEN THE POLISH AMBASSADOR AND THE 
ACTING SECRETARY OF STATE 



[Released to the press September 30) 

September H, 19J,7. 
Sik: In connection with the conversations held 
in London by the representatives of the United 
States, Great Britain and France, concerning the 
raising of German industrial production, at the 
conchision of which a plan of industrial produc- 
tion in the Anglo-American Zone has been made 
public in Berlin on August 29, 1947, I have been 
instructed to present to you the following view- 
point of the Polish Goverimient regarding this 
matter : 

1) The Polish Government is of the opinion 
that the plan for German industrial production 
made public in Berlin on August 29, 1947, be- 
ing in complete contradiction with the Potsdam 
Agreement which sets forth that any decision re- 
garding Germany will be taken by the four Great 
Powers, unilaterally raises the level of German in- 
dustrial production above the established German 
needs. 

2) The Polish Government is of the opinion 
that the implementation of this plan would have 
as result the restoration of the German industrial 
power, thus creating a threat to the security of 
Europe, especially to countries neighboring Ger- 
many. 

3) The program for the increase of German in- 
dustrial production agreed upon during the Lon- 
don conversations is contradictory to the principle 
of priority for the reconstruction of counti'ies 
devastated by German aggression, as well as to 
the principle not to exceed in Germany the aver- 
age of the standards of living of European coun- 
tries. 

4) This plan represents a unilateral attempt to- 
ward a revision of the program of reparations to 
be paid by Germany to the victorious countries, 
and among them to Poland. This plan, con- 
tradictory to the most vital interests of Poland, has 



evoked a determined and unanimous protest of 
Polish public opinion. 

The Polish Government in presenting the above 
observations cannot refrain from stating that the 
realization of these aims would not comply with 
the fundamental motives which animated all the 
Allied Nations in their endeavor to abolish Ger- 
man aggression and its sources ; it would also not 
contribute to the task of consolidation of peace 
and security in Europe, in which task Poland is 
deeply interested. 

Accept [etc.] Jozef Winiewicz 



Excellency : ^ I have the honor to acknowledge 
the receipt of your note of September 14, 1947 re- 
garding the discussions in London between the 
United States, the United Kingdom, and France 
concerning the level of industry and the Ruhr area 
in Germany, and setting forth the views of the 
Polish Government with respect to the decisions 
reached in those discussions. 

The United States Government has always 
agreed that decisions dealing with Germany as a 
whole can only be taken by agreement between 
the four occupying powers. The United States 
Government is, however, unable to accept the inter- 
pretation placed by the Polish Government on the 
recent agreements relating to Germany as ex- 
pressed in your note under reference. 

As this Government informed the Soviet Gov- 
ernment in a note from the Department of State 
to the Soviet Embassy dated August 29, 1947, 
the United States Government has sought per- 
sistently for over two years to reach agreements 
on matters affecting Germany as a whole and to 



" Delivered to the Polish Ambassador at Washington on 
Sept. 30, 1947. 



Ocfober 12, J947 



741 



THE RECORD OF THE WEBK 

implement the provisions of the Berlin Agree- 
ment of 1945 which state that Germany should 
be treated as a single economic unit and that to 
this end certain common policies should be es- 
tablished. The level of industry for Germany as 
a whole adopted on March 27, 1946, was in fact 
expressly based on the assumption that Germany 
would be treated as an economic unit. Pending 
achievement of this goal, the United States Gov- 
ernment has been called upon, at great expense to 
the American public, to sustain on a minimum 
subsistence basis a non-self-supporting area of 
Germany. The American people have been ex- 
tremely patient in submitting for so long to this 
situation, which would not have persisted if Ger- 
many had been treated as an economic entity. 
It became clear during the meeting of the Council 
of Foreign Ministers in Moscow this year that 
the economic unity of Germany would again have 
to be postponed and that there was little prospect 
of an early solution. Faced with that situation, 
it was imperative that steps be taken in the United 
States and British Zones with the object of re- 
lieving as soon as possible the tremendous financial 
burden on the two governments which their re- 
sponsibilities in those deficit areas entailed. 

In the note to the Soviet Embassy cited above, 
the Soviet Government was informed that "the 
United States Government is unable to accept 
the thesis that nothing can be done to alleviate the 
financial burden of the United States or to develop 
within the framework of the Berlin Agreement 
the contribution of the western zones of Germany 
to the economic reconstruction of Europe until the 
consent of the Soviet Government has been ob- 
tained. Pending the fulfillment of quadripartite 
agreement, the United States feels justified in 
pursuing objectives which have been coimnonly 
agreed and making arrangements for that pur- 
pose with any other occupying power willing to 
work toward the common end." 

I should like to mention here that at the last 
Council of Foreign Ministers' meeting all four 
ministers agreed that the level of industry for 
Germany should be raised appreciably above the 
plan of March 27, 1946. No formal decision to 
do so was taken, however, because of lack of agree- 
ment on other issues, but the fact remains that 
there was general concurrence that any agreement 
to treat Germany as an economic unit would re- 

742 



quire raising the level of industry. If this was re- 
quired under the favorable conditions of economic 
unity, it was all the more necessary to put such 
measures into effect where possible under the less 
favorable conditions of a Germany economically 
divided. I can assure you in any case that, in 
working out the new plan for the United States 
and British Zones, the United States Government 
has observed the main objectives in the Berlin 
Agreement of eliminating German war potential, 
developing Germany's agricultui'e and peaceful 
industries, and enabling Germany to maintain it- 
self without external assistance. 

In the communique of August 28, 1947, outlin- 
ing the decisions reached in London, it was specifi- 
cally stated that "the measures about to be taken 
should not result in priority being given to the 
rehabilitation of Germany over that of the 
democratic countries of Europe" and that "German 
resources should contribute to the general rehabili- 
tation of Europe." The Polish Government can- 
not fail to be aware of the importance of German 
production to the economic rehabilitation of 
Euroi:)e. 

The adjusted level of industi-y plan undoubtedly 
will have some effect on the reparations program, 
and this consideration was carefully weighed be- 
fore the plan was adopted. It is hoped and ex- 
pected that this effect will in the long run be more 
than offset by the benefits derived from an earlier 
resumption of normal trade relations with Ger- 
many. While it would have been preferable to 
have worked out this plan, and other arrangements 
for Germany, on a quadripartite basis, I believe 
I have made it clear in the preceding paragraphs 
why action in the United States and British Zones 
could no longer be postponed. 

As for the opinion expressed in your note to the 
effect that the adjustment of the level of industry 
in Germany will result in the creation of a threat 
to the security of Europe, I wish to call to your 
attention the fact that in the United States Zone 
of Germany the occupying authorities have de- 
stroyed all first priority military installations. Of 
all military installations other than fortifications 
and defense works, 91 per cent have been destroyed, 
and 100 per cent of naval and armored equipment 
have been likewise disposed of. As of May 1, 1947, 
of 105 industrial plants listed for demilitarization, 
74 had been wholly dismantled, and 29 had been 

Department of State Bulletin 



partially dismantled. Work on the remainder of 
these plants is progressing steadily. This record 
does not substantiate the Polish Government's al- 
legation, as expressed in your note, that the deci- 
sions taken at London are not in accord with the 
principles which animated the allied nations "in 
their endeavor to abolish German aggression and 
its sources". 

In this connection, the Polish Government is un- 
doubtedly aware that the United States Govern- 
ment has made repeated proposals for negotiation 
of a treaty with the United Kingdom, France, and 
the U.S.S.R., which would guarantee the security 



THE RECORD OF THE WEEK 

of Europe against the revival of militarism in 
Germany for a period of 40 years. The United 
States proposal, which was put forward more than 
a year ago and is still open, has been accepted as 
a basis for agreement by the United Kingdom and 
by France but not by the U.S.S.R. This proposal 
is indisputable evidence of the determination of the 
people and the Government of the United States 
that Germany shall never again be a dominant 
military power in Europe. 
Accept [etc.] 

For the Secretary of State : 

Norman Ahmour 



Soviet Press Charged With "Libeious Attack" on the President 



EXCHANGE OF NOTES BETWEEN U.S. AMBASSADOR AND 
SOVIET MINISTER FOR FOREIGN AFFAIRS 



[Released to the press September 29] 

Text of a note dated Septemter 25 froTU Ambas- 
sador Bedell Smith to the Soviet Minister for For- 
eign Affairs, V. M. Molotov ' 

During the year and a half that I have resided in 
the Soviet Union I have been obliged with the 
deepest regret to witness in the Soviet press an 
increasing flood of half truths, distortions of truth 
and utter falsehoods about my country and my 
government. I have tried to overlook this incen- 
diary press campaign, feeling that to take issue 
with a myriad false or incorrect statements would 
simply be adding fuel to the flame of hatred to- 
ward my country which the Soviet press has appar- 
ently undertaken to kindle in the hearts of the 
Soviet people. 

However, an occasion has now arisen when I 
must break this self-imposed rule. An article by 
one Boris Gorbatov just published in Literary Ga- 
zette No. 39 is so wantonly libelous in its personal 
attack on tlie President of the United States that 
I camiot permit it to pass without the strongest 
protest. It has thoroughly shocked me. 

As I have told you personally on several occa- 
sions, I believe that I have a duty to the Soviet 
Government as well as to my own, and that this 
duty is to inform the Soviet Government as hon- 
estly and frankly as possible of the beliefs and 

Ocfober 72, 1947 



opinions of the people of my country. This being 
the case, I must assure you in the most solemn 
terms that every fair-minded American citizen, 
regardless of his political opinions, will be deeply 
affronted by this article and will feel that he in 
some way shares the personal insult thus gratui- 
tously offered to President Truman. 

I cannot recall that Dr. Goebbels, of unsavory 
memory, at the height of our common struggle 
against Nazi Germany ever stooped to greater 
ridicule and vituperation against the head of an 
enemy country than has Mr. Gorbatov against the 
chief executive of a friendly and allied state. In 
this connection, I would never have believed that 
a Soviet writer would permit himself, or be per- 
mitted, to draw an analogy between the President 
of the United States and our recent common 
enemy. Hitler. Mr. Gorbatov goes so far as to 
imply criticism of President Truman for associat- 
ing with the President of Brazil, our faithful and 
devoted ally in the recent war, to whom is unwar- 
rantably imputed some prior association with the 
axis powers. Any unprejudiced observer, famil- 
iar with the course of history since 1939, would 
agree that such criticism comes with extraordi- 
narily bad grace from a Soviet writer. 

I cannot believe that Mr. Gorbatov's article rep- 



' Printed from telegraphic text. 



743 



THE RECORD OF THE WEEK 

resents the opinion of the Soviet Government, and 
I therefore request that it be officially disavowed 
and if, contrary to my belief, it has the approval 
of the Soviet Government, I would appreciate a 
statement to that effect. 

Text of Mr. Molotov's reply to Arribassador 
SmitKs note of September 25 

Acknowledging the receipt of your letter of 
September 25, 1 must state that I do not consider 
it possible to enter into a discussion with you of 
the article of the writer B. Gorbatov in The 
Literary Gazette., as the Soviet Government cannot 
bear the responsibility for this or that article and, 
so much the more, cannot accept the protest you 
have made in that connection. 

However, inasmuch as in your letter you decided 
to undertake a general evaluation of the Soviet 
press and from it is obtained a completely per- 
verted picture of the situation, I must state my dis- 
agreement with your point of view on the Soviet 
press. 

Despite your allegation, the Soviet press more 
than the press of any other country whatsoever, 



especially aims to elucidate broadly as possible the 
actual situation and true facts of the life of other 
countries, attaching special significance to the 
strengthening of friendly relations between peo- 
ples. This applies in full measure also to the 
United States of America, so that any move or 
aj^proach of the government and statesmen of the 
United States of America directed toward the 
strengthening of normal relations between coun- 
tries and toward the support of universal peace in- 
variably encounters warm support in the Soviet 
pi"ess, and this is so generally known that it need 
no reaffirmation whatsoever. It is by no means 
possible to say regarding that American press 
which is so widely encouraged by the most reac- 
tionary circles in the U.S.A. and which not only 
from day to day inserts lying and slanderous 
articles regarding the U.S.S.R. and its statesmen, 
but also inflames hostility between peoples, and 
which does not meet with any serious support 
whatsoever in the U.S.A., which is of course, Mr. 
Ambassador, well known to you regarding which 
there are not two different opinions in interna- 
tional democratic circles. 



U.S.S.R. Refuses Entry to Congressional Committee 
To Visit American Embassy 



STATEMENT BY ACTING SECRETARY LOVETT 



[Rele.Tsed to the press October 1] 

On September 9 applications for entry visas 
were filed at the Soviet Embassy in Washington 
on behalf of 11 members of the Senate Appropri- 
ations Committee, the Assistant Secretary of 
State, John E. Peurifoy, and four other Govern- 
ment officials who were planning to visit Moscow 
in the latter part of October for the purpose of 
inspecting the work of the Embassy in that city. 
Ambassador Smith was simultaneously instructed 
by the Department of State to inform the Min- 
istry of Foreign Affairs of the purpose of this 
visit. 

Ambassador Smith informed the Department 
on September 22 that he had just received a letter 



dated September 19 from the Deputy Minister for 
Foreign Affairs, Malik, refusing the issuance of 
visas to the members of this group. 

Ambassador Smith informed the Department 
further that on the same day, September 22, he 
repeated his request to the Ministry of Foreign 
Affairs for the issuance of visas, emphasizing that 
the Senators and other members of the visiting 
group were concerned only with an inspection of 
the Embassy. 

The Ambassador informed the Department that 
a reply was received on September 26 from Deputy 
Minister Malik which reiterated the refusal of 
the Soviet Government to grant visas for the 
members of this senatorial group. 



744 



Department of State Bulletin 



TRANSLATION OF NOTE FROM SOVIET DEPUTY MINISTER FOR 
FOREIGN AFFAIRS' TO AMERICAN AMBASSADOR 



September 19, 19^7. 

Aclaiowledging receiiit of your letter of Sep- 
[ tember 13, 1947, I have the honor to inform you 
I that, as it is clear from }'our letter, the triji of the 
group of Senators mentioned by you partakes of 
the nature of an investigation. These persons, 
as is also clear from your communication, have the 
intention of carrying out an investigation of a 
number of European countries. 



Since the Soviet Union is not among the coun- 
tries which can be subjected to an investigation on 
the part of American Senators, the trip of the 
above-mentioned group to the Soviet Union is not 
considered suitable. 

At the same time, the Ministry of Foreign 
Affairs is ready to issue visas for entrance into 
the U.S.S.R. to other persons who are proceed- 
ing to the U.S.S.R. without the aim of making an 
investigation. 



United States Denies Connection Witli Alleged 
Albanian Saboteurs 



[Released to the press September 22] 

Charges are being made against the United 
States during trials now being conducted at Tirana 
of 10 Albanian deputies and 14 other Albanian 
citizens accused of sabotage and subversive ac- 
tivities. 

From the time of its establishment as a modern 
state, Albania has been a striking example of dis- 
interested American aid, without any shadow of 
exploitation or desire for political j^rofit. It was 
largelj' through the personal efforts of President 
Wilson at the peace conference of 1919 that the 
independence of Albania was insured, and in the 
years that followed the traditional friendship of 
the American and Albanian peoples has been 
strengthened. Many Americans made Albanian 
welfare their lifework, through service in schools, 
missions, hospitals, agricultural training, and 
other philanthropic enterprises. During the re- 
cent war the United States consistently looked 
forward to the re-establishment of Albanian inde- 
pendence. In May 1945 an informal American 
mission was sent to Albania to ascertain the pos- 
sibilities for recognition of the regime and the 
establishment of diplomatic relations. The work 
of that mission, and its eventual withdrawal, were 
the subject of a Departmental announcement of 
November 8, 1946.^ 

Ocfober 72, J 947 



Immediately following the announcement of this 
Government's intention to withdraw the mission, 
the Albanian authorities instituted trials of alleged 
Albanian saboteurs at Tirana and trumped up 
charges that Harry T. Fultz, an officer of the mis- 
sion, together with other employees of the mission, 
had instigated and subsidized sabotage activities 
at a drainage project on Lake Maliq and else- 
where. For many years before the war Mr. Fultz 
was engaged in philanthropic work as principal 
of the American Vocational School at Tirana, 
maintained by funds donated by the American 
Junior Red Cross. The fabrication of these 
charges is a sad act of ingratitude on the part of 
the present Albanian authorities. The Depart- 
ment categorically denied these allegations at the 
time they were first made. 

The trials now proceeding at Tirana are clearly 
an attempt of the Albanian regime to perpetuate 
itself by means of oppression and the terrorization 
of Albanian liberal, patriotic, opposition elements. 
The charge that the accused were in any way in 
the pay or service of the United States or of any 
of its representatives in Albania is entirely un- 
true. 



' Jakov Aleksandrovich Malik. 
^ BuiXETiN of Nov. 17, 1946, p. 



913. 



745 



THE RECORD Of THE WEEK 

Displaced-Persons Problem To Be Discussed 
With European Military and Civilian Officials 

[Released to the press October 1] 

Ugo Carusi, former Commissioner of the United 
States Immigration and Naturalization Service, 
left for Europe on October 2 on a special assign- 
ment of the President in connection with dis- 
placed persons. 

Mr. Carnsi's assignment will take him to Ger- 
many, Austria, Italy, and Switzerland, where he 
will confer with military and civil officials. He 
will study the operations of the International 
Kefugee Organization, and he may attend sessions 
of the IRO in Geneva. 

Upon his return Mr. Carusi will submit a re- 
port for the benefit of the Secretary of State and 
the Attorney General. This report, among other 
things, will bear upon the displaced-persons pro- 
gram inaugurated under the President's directive 
of December 22, 1945, and will deal with the im- 
plementation of any future program which may 
arise under further legislation or the lEO 
program. 

In preparation for this trip Mr. Carusi has been 
working for the past month with officials of the 
Department of State and the Department of 
Justice. 



Myron C. Taylor Makes Preliminary Report on 
Mission to Vatican 

[Released to the press by the White House October 2] 

The President held a conference on October 2 
with Myron C. Taylor, his personal representative 
to His Holiness Pope Pius XII. Mr. Taylor gave 
the President a preliminary report on his recent 
mission. He informed the President that while 
he was in Europe, besides seeing the Pope, he con- 
ferred with His Grace the Archbishop of Canter- 
bury and with Dr. Otto Dibelius, Lutheran Bishop 
of Berlin, as well as with other religious leaders, 
on the question of cooperation in establishing 
permanent peace in the world. 

Mr. Taylor will continue these discussions from 
time to time in the hope of enlisting the influence 
and support of all world religious leadere in the 
effort to bring about permanent peace. 

746 



Diplomatic Relations With Bulgaria Resumed 
and Donald R. Heath Appointed Minister 

Statement by Acting Secretary Lovett 

[Released to the press October 1] 

Last week I was asked whether resumption of 
diplomatic relations between the United States and 
Bulgaria might be affected by recent developments 
in that country. A decision has now been reached 
in the matter. 

With the entry into force on September 15 of the 
Bulgarian peace treaty and the termination of the 
state of war between the United States and Bul- 
garia, the United States Government considers it 
desirable to accredit a diplomatic representative 
to supersede the United States Political Repre- 
sentative who has been stationed in Bulgaria dur- 
ing the armistice regime. The Honorable May- 
nard B. Barnes served as U.S. Political Repre- 
sentative to Bulgaria from December 1944 until 
his return to this country last spring. In his 
absence Mr. John Evarts Horner has been Acting 
U.S. Political Representative in Bulgaria. 

The President has appointed Mr. Donald R. 
Heath, of Topeka, Kansas, as American Minister 
to Bulgaria. Mr. Heath plans to depart for his 
new post in the very near future. The appoint- 
ment of Mr. Heath and the establishment of an 
American Legation in Sofia is predicated on the 
intention of the United States to maintain its 
interest in the welfare of the Bulgarian people, to 
keep itself informed concerning developments in 
Bulgaria, and to continue its efforts to protect 
American interests in that country. The United 
States Government wishes to make it clear that 
this step does not reflect either approval or condo- 
nation of certain recent actions of the Bulgarian 
Government. The views of this Goverimient on 
such matters have been fully set forth. 



Chilean Dental Specialist Visits U.S. 

Alfonso Leng, dean of the School of Odontology 
of the University of Chile, is visiting the United 
States at the invitation of the Department of State. 

Dr. Leng is one of a group of leaders who have 
received grants-in-aid under the program adminis- 
tered by the Department for the exchange of pro- 
fessors and specialists between the United States 

Department of State Bulletin 



and the other American republics. While here ho 
will visit dental schools, clinics, and laboratories 
in all parts of the country to study latest methods 
and developments in this tield. 

Final Compensation for Petroleum Properties 
Expropriated in Mexico 

(Released to the press September 30] 

The Charge d'Affaires ad interim of Mexico 
presented to the Acting Secretary of State on 
September 30 his Government's check for $4,085,- 
327.45, representing the final instalment due at 
this time under the agreement effected thi'ough 
an exchange of notes on September 29, 1943,^ 
establishing the manner and conditions of pay- 
ment of compensation to this Government for 
the benefit of certain American nationals who sus- 
tained losses as a consequence of the expropriation 
of petroleum properties in Mexico in March 1938. 

The two Governments agreed in 1941 each to 
appoint an expert to determine the amount of 
just compensation to be paid American nationals 
for their losses. At that time the Mexican Gov- 
ernment made a deposit of $9,000,000 on account 
of the compensation to be paid. In April 1942 the 
two experts, Morris L. Cooke, representing the 
United States, and Manuel J. Zevada, represent- 
ing the Republic of Mexico, submitted a report in 
which the losses sustained were evaluated at $23,- 
995,991, plus interest at three percent per annum 
from March 18, 1938, to the date of final settle- 
ment on all balances due, a total of $29,137,700.84. 
The two Governments agreed in September 1943 
that the amount be paid by annual instalments, the 
date of the final instalment to be September 30, 
1947. The American companies participating in 
apportioned payments from this amount are 
Standard Oil of New Jersey, Standard Oil of Cal- 
ifornia, Consolidated Oil Company, the Sabalo 
group, the Sea Board group, and their affiliated 
companies. The 1942 agi'eement also provided 
that the Government of ISIexico and each of the 
above claimants release each other respectively of 
all reciprocal claims that may still be pending 
against one another, with the exception of tliose 
claims of the Mexican Government against the 
companies for unpaid taxes and duties, as well as 
those claims based on payments legally made by 

Ocfober 12, 1947 



THE RECORD OF THE WEEK 

the Mexican Government for the account of the 
companies. The Mexican Government also agreed 
to assume liabilities for all private claims which 
might be instituted after April 17, 1942, by private 
individuals against the companies as a result of 
expropriation. 

The Mexican Government has punctually made 
the payments as agreed upon and has fulfilled to 
the letter the understanding reached between the 
two Governments in 1943. The final payment 
received today felicitously closes a chapter in 
Mexican-United States relations. The Acting 
Secretary of State requested the Charge d'Affaires 
to convey to his Government an expression of this 
Government's appreciation of the final settlement. 



Political Science Professor To Lecture in 
Venezuela 

Asher N. Christensen, associate professor of 
political science and foreign student adviser at the 
University of Minnesota, has received a grant-in- 
aid from the Department of State to enable him to 
serve as visiting lecturer during October 1947 at 
the Central University, Caracas, and other educa- 
tional institutions in Venezuela. He will lecture 
on American constitutional history. 

Dr. Christensen is one of a group of educators 
who have received such grants, under the program 
administered by the Department for the exchange 
of professors and specialists between the United 
States and the other American republics. 



Networks Assume Programming of Many 
"Voice of America" Broadcasts 

[Released to the press October 1] 

The Department of State announced on Octo- 
ber 1 that new international short-wave radio- 
program contracts have been effected with the Co- 
lumbia Broadcasting System and the National 
Broadcasting Company. As of October 1, the bulk 
of international broadcasting is to be prepared by 
the two networks, as stipulated by Congress in 
granting appropriations for the continuance of 
the "Voice of America". 

Effective October 1, NBC and CBS, under De- 
partmental supervision, take over the short-wave 



' Bulletin of Oct. 2, 1943, p. 230. 



747 



THE RECORD Of THE WEEK 

programming in English and the foreign-language 
programs to France, Italy, Germany, Spain, Latin 
America, Indochina, Siam, and Indonesia. Un- 
der the reduced broadcast schedule recently put 
into effect by the Department, this comprises about 
75 percent of the total broadcast output of 32 
hours, 15 minutes daily. Previously, NBC and 
CBS had prepared, under contract to the Gov- 
ernment, nearly half of the programming, with 
the Department preparing the major portion of 
the output. 

The Department, through its International 
Broadcasting Division, continues under congres- 
sional authority to progi'am broadcasts to 
the U.S.S.R., Poland, Austria, the Balkans, China, 
Korea, and Germany. 



New Appointments to Advisory Committee on 
International Broadcasting 

[Released to the press September 22] 

Assistant Secretary Benton announced on Sep- 
tember 22 that a new Advisory Committee on 
International Broadcasting is being appointed by 
the Department of State, pending action by Con- 
gress on the Department's proposal for the creation 
of an "International Broadcasting Foundation of 
the United States". The new committee will 
carry on and extend the functions of a previous 
committee of consultants which discharged its re- 
sponsibilities with a report released by the De- 
partment May 16, 1947.^ At that time, and later 
in testimony before Congressional committees, Mr. 
Benton said that a new advisory group would be 
appointed. 

"I expect this new committee will be an interim 
committee only because it is my hope that not long 
after Congress reconvenes it will give considera- 
tion to the urgent need for legislation to determine 
the long-range organization for the handling of 
international broadcasting", Mr. Benton said. 
"The committee will advise the Department on 
those subjects pertaining to our international 
broadcasting which will be of greatest interest to 

' Bdixetin of May 25, 1947, p. 1038. 

748 



the people and the Congress. Congi-ess will natu- 
rally look for advice and guidance to the seven pri- 
vate 'licensees' with whom the Department now 
has contracts and to other leaders in the radio 
field." 

Of the 17 people invited to serve on the new com- 
mittee, 6 were members of the previous committee 
of consultants and 7 are representatives of the "li- 
censees". Those invited to serve are : 

Gardner Cowles, Jr., Publisher, Des Moines Register & Tri- 
hnne. President, Cowles Broadcasting Company 

Wesley Dumm, President, Associated Broadcasters, Inc. 

Mark Ethridge, Publisher of the Louisville Courier Jour- 
nal; Past President, National Association of ! 
Broadcasters 

Walter Evans, President, Westinghouse Electric Corpora- 
tion 

Don Francisco, Vice President and Director, J. Walte.r 
Tliompson Advertising Agency 

Fr. Robert I. Gannon, President, Fordbam University 

Edgar Kobak, President, Mutual Broadcasting System 

Roy Larsen, President, Time, Inc. 

Harold Lasswell, School of Law, Yale University 

Walter Lemmon, President, World-Wide Broadcasting 
Foundation 

Justin Miller, President, National Association of Broad- 
casters 

Edward Noble, Chairman of Board, American Broadcasting 
Company, Inc. 

Paul Porter, Attorney ; Former Chairman, Federal Com- 
munications Commission 

Phillip Reed, Chairman, General Electric Company 

James D. Shouse, President, Crosley Broadcasting Cor- 
poration 

Frank Stanton, President, Columbia Broadcasting System 

Niles Trammell, President, National Broadcasting Com- 
pany 



United States Views Cordial Relations Between 
India and Pakistan 

Statement hy Acting Secretary Lovett 

[Released to the press September 24] 

The people of the United States have observed 
with deep satisfaction the recent improvement in 
the tragic plight of the inhabitants of the Punjab 
Provinces in India and Pakistan. The majority 
of the peoples of the two Dominions have shown 
a praiseworthy patience and restraint in a time 
of drastic readjustment and great tension. Ex- 
cepting the Delhi area where the influx of refugees 
created an abnormal and difficult situation, serious 

Deparimeni of Stale Bullefin 



disturbances have been localized in the Punjab. 
Elsewhere, the complex problems of transition 
from a single empire to two dominions have been 
faced with cahnness and the determination to seek 
an orderly solution. 

The peoples of India and Pakistan and their 
new Governments have the sympathy of the United 
States and are entitled to the support of all demo- 
cratic countries in their endeavors to cope with the 
very ditlicult problems attending their emergence 
into nationhood. Full and friendly cooperation 
between the two Dominions affords the strongest 
base from which to attack these problems, and all 
friends of the new Governments welcomed the an- 
nouncement on September 20 of the accord 
reached by their Prime Ministers for further joint 
efforts to restore peace and order in the disturbed 
areas. It may confidently be expected that the 
two Governments will continue to work together 
toward the mutual objective of peace and well- 
being for all their peoples. 



THE FOREIGN SERVICE 

Specialized University Study for Foreign 
Service Officers 

The Department of State announced on October 
1 that 18 Foreign Service officers have been detailed 
to universities for the 1947^8 academic year for 
advanced or specialized studies to increase their 
usefulness as field officers. 

Fourteen officers are being assigned for special 
language studies, supplemented by appropriate 
area courses, as a part of the Foreign Service In- 
stitute's program to develop qualified area special- 
ists for operations in Asia and eastern Europe. 
These are distributed as follows : Russian studies 
(Columbia University), 4; Japanese studies (Har- 
vard University), 4; Chinese studies (Cornell 
University), 3; Turkish studies (Princeton Uni- 
vei-sity), 1; Siamese studies (University of Cali- 
fornia), 1; and Korean studies (University of 
California), 1. 

Four officers are being detailed to universities 
for special studies of international economic prob- 
lems. Two will go to Princeton, one to Columbia, 
and one to Harvard. 

October 72, J 947 



THE RECORD Of THB WEEK 

Nathaniel P. Davis Appointed Ambassador 
to Costa Rica 

The Prosidt'iit h.Ts appointed Nathaniel P. Davis, Coun- 
selor of Emhassy with tlie personal rank ot Minister at 
Manila, to be Ambas-sador to Costa Rica. 

Mr. Davis succeeds Walter J. Donnelly, who has been 
appointed Ambassador to Venezuela. 

Corrigan Resigns Ambassadorship 
Takes U.N. Post 

The President on September 19, 1947, accepted the resig- 
nation of Frank P. Corrigan as American Ambassador to 
Venezuela. Mr. Corrigan resigned in order that he might 
become Political Adviser on Latin America to the U.S. 
Delegation to the United Nations. For text of the Presi- 
dent's letter to Mr. Corrigan, see White House press re- 
lease of September 22, 1947. 



THE DEPARTMENT 

Three Terminated Employees Permitted 
To Resign Without Prejudice 

[Released to the press October 3] 

The Department of State announced on October 
3 that the Personnel Security Board has recom- 
mended that three employees who had been termi- 
nated for security reasons be permitted to resign 
without prejudice. 

The Board had reviewed the files of the 10 per- 
sons whose employment was terminated in June 
under authority conferred upon the Secretary of 
State by the McCarran rider (title I, Public Law 
490, 79th Congress). 

Assistant Secretary John E. Peurifoy had re- 
quested the Board to make a review and to make 
such recommendations for further action as the 
Board considered desirable. The Board in 
reaching its decision had available statements 
made by a number of the employees whose serv- 
ices had been terminated. 

The Department has accepted the recommenda- 
tions of the Board and the persons concerned have 
been notified. 

Charles Rayner Resigns as Petroleum Adviser 

The Department of State announced on Septem- 
ber 29 the resignation of Charles Rayner, Adviser 
on Petroleum Policy. For texts of the exchange 
of letters between the Secretary of State and Mr. 
Rayner, see Department of State jiress release 779 
of September 29, 1947. 

749 



THE RECORD OF THE WEEK 

Reorganization of Office of Near Eastern and 
African Affairs 

The OfSce of Near Eastern and African Affairs 
was reorganized on September 18, 1947, as follows : 

Division of Near Eastern Affairs (NE), with 
supervision over matters concerning Palestine, 
Transjordan, Lebanon, Syria, Iraq, Egypt, Anglo- 
Egyptian Sudan, Saudi Arabia, Yemen, and 
Arabian Principalities. 

Division of South Asian Affairs (SOA), for- 
merly the Division of Middle Eastern and Indian 
Affairs, with supervision over matters concerning 
Pakistan, Afghanistan, India, Nepal, Burma, and 
Ceylon. 

Division of African Affairs (AF). (No 
change.) 

Division of Greek, Turkish, and Iranian Affairs 
(GTI), with supervision over matters concerning 
Greece, Turkey, and Iran. 



PUBLICATIONS 



Department of State 



For sale by the Superintendent of Documents, Qovermnent 
Printing Office, Washington 25, D.C. Address requests 
direct to the Superintendent of Documents, except in the 
case of free publications, tchich may be obtained from 
the Department of State. 



Committee of European Economic Co- 
operation. Vol. I — General Report 



Paris, September 21, 1947. 
2930. vi, 138 pp. 30«}. 



European Series 28. Pub. 



General statement of the problems of European eco- 
nomic recovery, the plans of the 16 European countries 
concerned to meet these problems, and the assistance 
which these countries believe necessary from the U.S. 
and other non-European countries and agencies. 



Resignation of William A. Eddy as 
Special Assistant 

Acting Secretary Lovett announced on September 26 that 
WUliam A. Eddy submitted his resignation efCective Octo- 
ber 1 as Special Assistant to the Secretary of State for Re- 
search and Intelligence. For text of Mr. Lovett's letter to 
Mr. Eddy see Department of State press release 775 of 
September 26. 



W. Park Armstrong Appointed Acting 
Special Assistant 

Acting Secretary Lovett announced on September 26 that 
W. Park Armstrong would serve as Acting Special As- 
sistant to the Secretary of State for Research and Intelli- 
gence, effective October 1, 1947. 



Paul C. Daniels Appointed U.S. Representative 
on Inter- American Council 

The Acting Secretary of State announced on October 3 
the appointment of Paul C. Daniels, United States Am- 
bassador to Honduras, as Representative of the United 
States on the Inter-American Economic and Social Council, 
efCective immediately. Ambassador Daniels has been 
called to Washington on consultation in order to partici- 
pate in the preparatory work for the Bogota conference 
which is being undertaken by the Inter-American Economic 
and Social Council. 

750 



Inter-American Coffee Agreement 

Protocol Between the United States of America and 
Other American Republics, Modifying and Extending for 
One Year From October 1, 1946, the Agreement of Novem- 
ber 2S 1940 — Entered into force with respect to the United 
States of America March 19, 1947; effective October 1, 
1046. Treaties and Other International Acts Series 1605. 
Pub. 2852. 14 pp. 5<f. 

Extends and modifies present Inter-American Coffee 
Agreement, and provides for a survey and analysis 
of the world coffee situation by the Inter-American 
Coffee Board. 



THE CONGRESS 

Seventh and Final Report of the High Commissioner to 
the Philippines: Message from the President of the United 
States transmitting the seventh and final report of the 
United States High Commissioner to the Philippine Islands 
covering the period from September 14, 1&45, to July 4, 
1946. H. Doc. 389, 80th Cong., 1st sess. xii, ISl pp. 

Report and Recommendations of the Joint Philippine- 
American Finance Commission : Communication from the 
President of the United States transmitting tlie report 
and recommendations of the Joint Philippine-American 
Finance Commission, dated June 7, 1947, and a technical 
memorandum entitled "Philippine Economic Develop- 
ment". H. Doc. 390, 80th Cong., 1st sess. xiv, 222 pp. 

Proposed Amendments to the Ship Sales Act of 1946: 
Hearings before the Subcommittee on Ship Sales, Char- 
ters, and Lay-Ups of the Committee on Merchant Ma- 
rine and Fisheries, House of Representatives, 80th Cong., 

Department of State Bulletin 



THE CONGRESS 



1st sess. April 29, 30, May 1, 2, 6, 7, 8, 9, 15, June 10, 11, 
12, 1947. V, SSO pp. 

Sugar Act of 1948: Hearings before the Committee on 
Agriculture, House of Representatives, 80th Cong., 1st 
sess. June 21, 25, and 27, 1947. ill, 114 pp. 

Enemy Property Commission : Hearings before the 
Committee on Interstate and Foreign Commerce, House of 
Bepresentatives, SOth Cong., 1st sess., on H.R. 973 and 
H.R. 1823, bills to create an Enemy Property Commis- 
sion, to provide for the disposal of certain enemy prop- 
erty, and for other purposes ; and H.R. 1000, a bill creat- 
ing a commission to examine and render final decisions 
on all claims by American nationals who were members 
of the armed forces of the United States and who were 
irisoners of war in Germany, Italy, or Japan, for pay- 
ment of its awards, and for other purposes ; and H.R. 
2S23. a bill to provide for a commission to adjudicate 
claims of American nationals who were prisoners of war 
of Japan, for payment of its awards, and for other pur- 
poses. March 20, 21. and April 21, 1947. v, 493 pp. 

Printing of "Fascism in Action" : Hearings before the 
Committee on House Administration, House of Repre- 
sentatives, SOth Cong., 1st sess., on H. Res. 83, to provide 
tor the printing of a documented study and analyses of 
"Fascism in Action" as a House document. June 3, 4, 
5, 1947. ii, 94 pp. 

To Amend the Trading With the Enemy Act So as To 
Permit Certain Aid to Civilian Recovery in Occupied 
Zones : Hearings before the Committee on Civil Service, 
United States Senate, SOth Cong., 1st sess., on S. 989, a 
bill to amend the Civil Service Retirement Act of May 
29, 1930, as amended. Part I, April 9, June 19 and 20, 
1947. iii, 59 pp. 

Petroleum Investigation : Hearings before the Com- 
aiittee on Interstate and Foreign Commerce, House of 
Representatives, SOth Cong., 1st sess., on petroleum in- 
vestigation. July 1, 8, and 9, 1947. iii, 131 pp. 

Travel Restrictions : Hearings before a Subcommittee 
if the Committee on Interstate and Foreign Commerce, 
Jnited States Senate, SOth Cong., 1st sess., on S. Res. 
Ill, a resolution relative to modifying restrictions on 
ravel by American and foreign citizens. June 10, 11, 
uid 13, July 16 and 18, 1947. iv, 286 pp. 

Investigation, Disposition of Surplus Property : Hear- 
ings before the Surplus Property Subcommittee of the Com- 
nittee on Expenditures in the Executive Departments, 
SOth Cong., 1st sess., pursuant to H. Res. 90 and H. Res. 
100. Part 2, Hearings on Palmer Bolt and Nut Co., Inc., 
lontraet ; George A. Fuller Co. contract. April 10, 11, 12, 
22, 25, and 26, May 1, 2, 3, and 15, 1947. xii, 557 pp. 

Alasljan Problems : Hearings before a Subcommittee of 
the Committee on the Merchant Marine and Fisheries, 
House of Representatives, 79th Cong., 2d sess., pursuant 
to the authority of H. Res. 38, a resolution authorizing 
investigation of the national defense program as it relates 
to the Committee on the Merchant Marine and Fisheries. 
Part 2. August 5, 12, 1946. iv, 294 pp. 

Investigation of the National Defense Program : Hear- 
ings before a Special Committee Investigating the National 
Defense Program, United States Senate, SOth Cong., 1st 
sess., pursuant to S. Res. 55 (70th Cong.), a resolution 



authorizing and directing an investigation of the national 
defense program. Part 37, Inter-Amerlcan Highway. 
July 13, 17, and 26, 1945 ; August 24, 29, 30, 31 ; September 
3, 4, 27, and 28, 1946 ; March 31, 1947. xi, 939 pp. 

Disposition of Government Surplus Airports and Facili- 
ties : Hearing before the Committee on Armed Services, 
United States Senate, SOth Cong., 1st sess., on S. 3()4, a bill 
to expedite the disposition of Government surplus airports, 
airport facilities, and equipment and to assure their dis- 
position in such manner as will best encourage and foster 
the development of civilian aviation and preserve for na- 
tional defense purposes a strong, efficient, and properly 
maintained nation-wide system of public airports, and for 
other purposes. June 10, 1947. iii, 40 pp. 

Surplus Canned Fruits and Vegetables — Surplus Poultry 
and Poultry Products (Producers request Government to 
include surplus canned vegetables and fruits and poultry 
for foreign relief) : Hearings before the Special Food 
Shortage Subcommittee of the Committee on Agriculture, 
House of Representatives, SOth Cong., 1st sess. July 10 
and 22, 1947. iii, 85 pp. 

Great Lakes-St. Lawrence Basin : No. 13, Hearings be- 
fore the Committee on Public Works, House of Repre- 
sentatives. SOth Cong., 1st sess., on H. J. Res. 192, approv- 
ing the agreement between the United States and Canada 
relating to the Great Lakes-St. Lawrence Basin with the 
exception of certain provisions thereof; expressing the 
sense of the Congress with respect to the negotiation of 
certain treaties providing for making the St. Lawrence 
Seaway self-liquidating, and for other purposes. Fart 1. 
July 14, 15, 16, 17, and 18, 1947. iv, 165 pp. 

St. Lawrence Seaway Project : Hearings before a Sub- 
committee of the Committee on Foreign Relations, United 
States Senate, SOth Cong., 1st sess., on S. J. Res. Ill, a 
joint resolution approving the agreement between the 
United States and Canada relating to the Great Lakes-St. 
Lawrence Basin with the exception of certain provisions 
thereof ; expressing the sense of the Congress with respect 
to the negotiation of certain treaties ; providing for making 
the St. Lawrence Seaway self-liquidating; and for other 
purposes. May 28, 29, June 11, 12, 13, and 20, 1947. iv, 
603 pp. 

Testimony of Victor A. Kravchenko : Hearings before 
the Committee on Un-American Activities, House of Rep- 
resentatives, SOth Cong., 1st sess., on H.R. 1884 and H.R. 
2122, bills to curb or outlaw the Communist Party of the 
United States. Public Law 601 (Section 121, Subsection 
Q(2)). July 22, 1947. ii, 30 pp. 

Testimony of Walter S. Steele Regarding Communist 
Activities in the United States : Hearings before the Com- 
mittee on Un-American Activities, House of Representa- 
tives, SOth Cong., 1st sess., on H.R. 1884 and H.R. 2122, bills 
to curb or outlaw the Communist Party in the United 
States. Public Law 601 (Section 121, Subsection Q (2)). 
July 21, 1947. ii, 176 pp. 

Domestic Stability, National Defense, and World War II. 
Legislative and Executive Background, 1933-1946. S. Doc. 
261, 79th Cong., 2d sess. iii, 163 pp. 



Ocfober 12, 1947 



751 




■ ■ t^'iaiKgaK^yv, ^ v'.^v'g.vxvi ■;;- 



General Policy Page 

Congressional Committees Examine World Food 
Crisis: 

Statement by the President 735 

Letter to the Chairmen of Four Congressional 

Committees 735 

Citizens Food Committee Inaugurates Conser- 
vation Program: 

Address by the President 736 

Statement by the Secretary of State .... 738 
Food-Saving Program as a Contribution to 

Peace. Address by the President .... 738 
European Economic Recovery Discussed With 

Representatives of CEEC 740 

Food, Coal, and Medicines Sent to Italy. 

Statement by Acting Secretary Lovett . . 740 
Poland Opposes Industrial Plan for Germany 
on Grounds of "Unilateral Action". Ex- 
change of Notes Between Poland and U.S. . 741 
Soviet Press Charged With "Libelous Attack" 
on the President. Exchange of Notes Be- 
tween U.S. and U.S.S.R 743 

U.S.S.R. Refuses Entry to Congressional Com- 
mittee To Visit American Embassy: 
Statement by Acting Secretary Lovett . . . 744 
Translation of Note From Soviet Deputy 
Minister for Foreign Affairs to American 

Ambassador 745 

U.S. Denies Connection With Alleged Albanian 

Saboteurs 745 

Displaced Persons Problem To Be Discussed 
With European Military and Civilian 

Officials 746 

Myron C. Taylor Makes Preliminary Report 

on Mission to Vatican 746 

U.S. Views Cordial Relations Between India and 
Pakistan. Statement by Acting Secretary 

Lovett .'748 

Paul C. Daniels as U.S. Representative on Inter- 
American Council 750 

Economic Affairs 

The Geneva Charter for an ITO. IV. Sub- 
sidies and State Trading 711 

Appointments to Rubber and Tin Study 

Groups 734 

Report by the lEFC Cocoa Committee . . . 734 



The United Nations and 

Specialized Agencies page 

Accomplishments of the Commission on Nar- 
cotic Drugs. Article by George A. Mor- 
lock 724 

U.N. Documents: A Selected Bibliography . . 730 

Arbitration Committee for Netherlands-Indo- 
nesian Dispute: 
Appointment of U.S. Representative .... 731 
Resolutions on Indonesian Question .... 731 

Progressive Development of International 
Law and Its Eventual Codification. U.S. 
Resolution 732 

International Information and 
Cultural Affairs 

Program of Interdepartmental Committee on 
Scientific and Cultural Cooperation: 
Assembly of Librarians of the Americas. 

Article by Marietta Daniels 715 

Hemisphere Development of Social Services. 

Article by T. J. Woofter 720 

Chilean Dental Specialist Visits U.S 746 

Professor To Lecture in Venezuela 747 

Networks Assume Programming of Many 

"Voice of America" Broadcasts 747 

New Appointments to Advisory Committee on 

International Broadcasting 748 

Treaty Information 

Final Compensation for Petroleum Properties 

Expropriated in Mexico 747 

The Foreign Service 

Diplomatic Relations With Bulgaria Resumed. 

Statement by Acting Secretary Lovett . . 746 

Specialized University Study for Foreign Serv- 
ice Officers 749 

Nathaniel P. Davis Appointed Ambassador to 

Costa Rica 749 

Corrigan Resigns Ambassadorship 749 

The Congress 750 

The Department 

Terminated Employees Permitted To Resign . 749 
Charles Rayner Resigns as Petroleum Adviser . 749 
Reorganization of Office of Near Eastern and 

African Affairs 750 

Resignation of William A. Eddy 750 

W. Park Armstrong Appointed Acting Special 

Assistant 750 

Publications: Department of State .... 750 



%{m^mciio^ 



Marietta Daniels, author of the article on the assembly of librarians 
of the Americas, is a member of the staff of the Hispanic Foundation 
of the Library of Congress. 

T. J. Woofter, author of the article on the Hemisphere development 
of social services, is Director of Research, Federal Security Agency. 

Oeori/e A. Morlock, author of the article on the accomplishments of 
the Commission on Narcotic Drugs, is Chief of the Narcotics Section, 
Division of International Labor, Social and Health Affair.*, Office of 
International Trade Policy, Department of State. 

U. S. GOVEBHHEHT PRINTING OFFlCEi 1947 



tJ/i€/ ^eha/^Cmen(/ ^ tnaie^ 




POSITION OF U.S. DELEGATION ON PALESTINE 
QUESTION • Statement by U.S. Deputy Representative 
to U.N 761 



THE PROGRAM OF THE INTERDEPARTMENTAL 
COMMITTEE ON SCIENTIFIC AND CULTURAL 
COOPERATION: 

Biblioteca Benjamin Franklin • Article by Andy 

G. Wilkison 755 



Vol. XVII, No, 
October 19, 194 



<**»«'' 



For complete contents see back cover 




■*tbs 




'>*T.. <»• 



r.s.,^^^«.. bulletin 



Vol. XVII, No. 433 • Publication 2941 
October 19, 1947 



For sale by the Superintendent of Documents 

U.S. Government Printing Ofl3ce 

Washington 25, D.C. 

Stjbscription: 
82 issues, $6; single copy, 15 cents 

Puhlished 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 Bulletik 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 teith 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- 
ruitional affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
terruitional agreements to which the 
United States is or may become a 
party and treaties of general inter- 
national interest. 

Publications of the Department, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



0. s. SL1p!:r^^■:^ LOour.t.vTi 

CCi L>j 1^7 

THE PROGRAIVI OF THE INTERDEPARTMENTAL COMMITTEE ON 
SCIENTIFIC AND CULTURAL COOPERATION 

Biblioteca Benjamin Franklin 



bj^ Andy G. WiJklson 



The Bulletin presents an article on a phase of the work 
of the Interdepartmental Cvinmittee on Scienti-fic and Cul- 
tural Cooperation : Biblioteca Benjamin Franklin. It repre- 
sents a particular activity of interagency planning in concert 
with similar groups in the other Ainerican republics. The 
Bulletin of September 28 contained articles on the Committee 
itself and on the inter-American agricultural program, and 
in the issue of October 12 there appeared ttoo articles on the 
Assembly of Librarians of the Americas and on Hemisphere 
development of social sciences. 



I The Biblioteca Benjamin Franklin in Mexico 
fts the largest, the oldest, and one of the busiest of 
the United States libraries abroad. It was es- 
tablished in Mexico City by the U.S. Government 
in 1942 and is administered by the Department of 
State. In many respects it is a unique institution, 
even in the library world. It provides service 
over half a million times a year with only 25,000 
volumes. 

A collection of United States books in another 
country, like that in almost any U.S. public li- 
brary, conveying in concrete terms U.S. history, 
government, literature, science, and technology, is 
a valuable and enduring way of increasing under- 
standing among other peoples of the United States 
way of life. The libraries run by the United States 
Government overseas are a long-range medium 
and a relatively permanent way of achieving this 
purpose. 

As an institution, the United States informa- 
tion libraries are a living expression of important 



facts about this country. They present this coun- 
try, our people, and our thinking to other peoples 
in an available and objective way which allows 
them freely to discover for themselves the history 
and character of the United States. The crowded 
reading rooms of the U.S. libraries all over the 
world prove that we have millions of friends who 
are making such discoveries. These libraries have 
nothing to sell, nothing to give away, but, we be- 
lieve, a great deal to share. 

The Benjamin Franklin Library in Mexico City 
was established for the purpose of increasing 
friendly relations and miderstanding between the 
peoples of Mexico and the United States through 
the medium of books, periodicals, information 
services, and educational activities. In the short 
period since its establishment, it has become one 
of the best known as well as one of the most popu- 
lar and respected institutions among the State 
Department's varied activities comprising the in- 



Ocfober 19, 1947 



755 



formation and educational-exchange program in 
Mexico. 

Tlie opportunity in Mexico for such an institu- 
tion as the Benjamin Franklin Library had been 
apparent for some years to library observers and 
scholars in both Mexico and the United States. 
As early as 1939, tentative plans had been drawn 
up for its establishment. Lack of funds, however, 
prevented further progress until July 1941, when 
money for the project was secured through the 
joint efforts of the Office of the Coordinator of 
Inter-American Affairs and the Department of 
State. Since July 1943 funds to support the li- 
brary Inive been provided to the Division of Li- 
braries and Institutes, Department of State, by 
the Interdepartmental Committee on Scientific 
and Cultural Cooperation. 

A contract between the Coordinator's office and 
the Department and the American Library Associ- 
ation assigned to the latter the funds and the re- 
sponsibility of establishing and administering the 
new library. Representatives of the Association 
were sent to Mexico to discuss such an enterprise 
with Mexican officials. Unanimous approval was 
given to the plan. 

An old home on the beautiful Paseo de la 
Reforma was leased, and remodeling was begun 
to convert it into library quarters. At the same 
time, a board of directors, consisting of three 
prominent Mexicans and six Americans, heads of 
local civic groups, was formed. This board, ad- 
visory in nature, holds monthly meetings with the 
director and deputy director-librarian to discuss 
library policies and activities. 

Harry M. Lydenberg, former director of the 
New York Public Library, consented to serve as li- 
brarian of the institution which was to become so 
widely known in Mexico as the Biblioteca Benja- 
min Franklin. He set to work recruiting a staff 
of trained librarians, Mexican and American, as 
well as a clerical force of both nationalities. 

A representative collection of approximately 
5,000 volumes was agreed upon by the United 
States Department of State, the Office of the Co- 
ordinator, and officials of the American Library 
Association, and the actual selection of books for 
the library was delegated to specialists in each 
field. As their lists were received in the head- 
quarters of the American Library Association, 
orders were placed with publishers. Books were 



shipped to the New York Public Library, where 
they were prepared for the shelves of the new 
institution, following which they were forwarded 
to Mexico in anticipation of the inaugural date. 

At the formal opening of the Benjamin Frank- 
lin Library in April 1942, President Manuel Avila 
Comacho expi-essed the sentiments of the Mexican 
people when he stated that the United States had 
sent Mexico "a permanent embassy of pan- Ameri- 
can good will." He hoped, he said, that this in- 
stitution would ever serve as an instrument of 
high ideals and mutual friendship between the two 
countries. 

Due to the inadequacy of the seating capacity 
of the auditorium to accommodate the unexpected 
crowds who came, three evenings were devoted to 
special programs for representative local groups. 
After this auspicious beginning, people from every 
walk of life came to use the librai-y and to depend 
and rely on the services which it features. 

As the founders and library experts had antici- 
pated, heavy demands were at once made on the 
Reference Department in the fields of medicine, 
science, art, in technical subjects, and in current 
periodicals covering all phases of culture in the 
United States. The library's collection was, there- 
fore, given particular emphasis in these special 
categories. Periodical indexes, encyclopedias, 
bibliographies, government documents, diction- 
aries, and the usual indispensable reference publi- 
cations form an especially strong section among the 
books in this library. They are constantly con- 
sulted by patrons or by the reference librarian in 
assisting readers with their requests for informa- 
tion. 

Some idea of the wide-spread acceptance of the 
library by the people of Mexico may be gathered 
from a brief statement of statistics indicating in- 
creases in readers over a four-year period. In its 
first year of existence, the library served 18,371 
readers, 33,793 in the second year, 77,728 in the 
third, and 133,361 in the fourth. The book collec- 
tion for the identical period increased in almost 
the same ratio. 

The Benjamin Franklin Library is at present 
serving daily approximately 600 patrons and is 
unusually liberal in giving access to its books. 
Reading is encouraged in every way possible. To 
registered borrowers, of which there are more than 
14,000, books are lent for home use. The library 



756 



Deparlmenf of Stale Butlefin 



staff of professional Americans offers advisory and 
reference services to all visitors. Books are 
mailed, on request, to outlying cities for respon- 
sible use, and information service by correspond- 
ence also comprises a considerable volume of the 
library's activities. All these services and many 
more are given without chai'ge, -vs-itli a minimum 
of red tape. 

The Benjamin Franklin Library is endeavoring 
to make available information about the United 
States desired by Mexicans and to work closely 
with all educational institutions of that Republic. 
Mexicans have become accustomed to U.S. innova- 
tions in library service introduced to their country 
with the advent of the Benjamin Franklin Library. 
Before 1941 very little literature was available on 
all aspects of life and thought in the United States; 
consequently, there was little or no opportunity 
for Mexicans to obtain a clear picture of the civili- 
zation, aims, and ideals of the people of the United 
States. Misunderstanding, as well as inaccurate 
and misleading information, was the rule rather 
than the exception. For many thousands of Mexi- 
cans, this situation has been corrected through 
the facilities of this U.S. institution. The immedi- 
ate delivery of a requested book, the prompt 
answering of questions, research and reader guid- 
ance, and many other functions of a public library 
which have been accepted as a matter of course 
in the United States were librai-y developments 
which were new to Mexicans. The dictionary 
catalog, a simple and necessary index to library 
collections and familiar to most North American 
schoolboys, is not yet thoroughly known to Mexi- 
can borrower or generally used by Mexican 
librarians. 

Many Mexican librarians have begun visiting 
tlie Benjamin Franklin Library to study and to ob- 
serve a United States library in action. Countless 
questions have been answered by the professional 
staff of the library. Eequests for technical advice 
and assistance have been met by sending profes- 
sional U.S. librarians to tlie Mexican institutions 
concerned for explanation of methods and pro- 
cedures, and suggestions have been made for the 
development of U.S. library techniques in those 
libraries. 

From the outset the library has engaged in many 
extracurricular educational activities. Among 
the more important was the sponsoring, until re- 



cently, of an English-language institute, wherein 
thousands of Mexicans received instruction from 
experienced American teachei's. This woi'k has 
lately been taken over by the Institulo Mexicano- 
Norteamericano de Relaciones Cultiu'ales under its 
own separate identity and occupying different 
quarters. Enrolment for the present semester is 
over 2,G00 students. 

The effects of the English-teaching program 
are noticeable in a variety of ways. Many of the 
students have become confirmed habitues of the 
library ; others read a larger proportion of books in 
English than formerly; and still others have 
formed fast friendships with Americans through 
an interchange of lessons and correspondence 
arranged by the library, which speeds up their 
nuitual learning of a foreign language. Mexican 
teachers of English have attended the English- 
teaching classes, where they have absorbed up-to- 
date methods of teaching and have improved their 
own knowledge of the language. In this manner, 
standards of instruction have been raised in the 
teaching of English throughout the Republic of 
Mexico. 

Another of the library's extracurricular activi- 
ties is the arrangement from time to time of lec- 
tures by visiting Americans outstanding in some 
particular field. Often these lectures are given in 
Spanish but more generally in English. Scholars 
noted for their research, writings, and lecturing 
ability invariably draw capacity crowds to the 
library auditorium. 

Frequent musical programs by noted American 
artists are held in the library. The National Art 
Gallery, the Museum of Modern Art, and the 
Metropolitan Museum of Art have collaborated 
with the library in sending to Mexico several out- 
standing exhibitions for display to the Mexican 
people. Mexican paintings, both of the old mas- 
ters and of the modern school, have been exliib- 
ited in the library. 

Motion pictures, particularly documentary films 
on travel and educational subjects, have made a 
noteworthy contribution toward a better under- 
standing and appreciation by Mexicans of U.S. 
life, culture, and progi'ess. Radio programs in 
which books are reviewed and discussed and in 
which leading intellectuals of Mexico and the 
United States participate are also a very popular 
activity of the library. 



Ocfober J 9, 1947 



757 



Inter-library loan privileges, by which books 
may be borrowed from the Library of Congress 
or from college and university libraries in the 
United States for the use of Mexican readers, have 
contributed greatly not only to an appreciation of 
American library services but also toward 
serious research by Mexican scholars. The 
inter-library loan service is supplemented by other 
important services. When the library is unable to 
provide from its own collection materials re- 
quested by readers, microfilm or photostat copies 
can be secured from U.S. libraries at a very nomi- 
nal cost to Mexican scholars. In the case of micro- 
film copies, library patrons are also privileged to 
use the library's microfilm-reading machines with- 
out charge. The two machines are engaged a 
major jDortion of the time despite the lack of 
proper space for microfilm-reading purposes. 

In order that this reproduction of materials 
may not be an entirely unilateral aifair, a complete 
and thoroughly modern photoduplication labora- 
tory has been installed in the Benjamin Franklin 
Library. Funds for the necessary equipment were 
obtained from the Rockefeller Foundation. A 
local technician, George Smisor, was appointed 
in charge and given a thorough training course in 
all the latest methods and equipment for the 
proper conduct of such a laboratory. Mr. Smisor 
was sent on a tour of observation throughout the 
United States. He visited manufacturers of 
photographic equipment and inspected their 
laboratories. He also visited the installations of 
other organizations, including those of college and 
university libraries. The library, through Mr. 
Smisor, has free access to every important Mexican 
depository. This jjrivilege has been of inestimable 
value to American scholars and institutions seek- 
ing reproductions of Mexican documents and 
manuscripts. The library has established a repu- 
tation for trustworthiness, and hence scholars 
can borrow rai'e treasures from various Mexican 
depositories, bring them to the laboratory, copy 
them, and return them the same day, thus exempli- 
fying to Mexican libraries American efficiency and 
reliability. 

To further the principles of reciprocity, the 
library has, whenever and wherever possible, se- 
cured for Mexican libraries either microfilm or 
photostat copies of Mexican documents and manu- 
scripts from American sources when the original 



is not to be found in Mexico. Many priceless 
treasures have thus come to be represented in 
their proper place. Additionally, Mexican photo- 
duplication-laboratory technicians are given as- 
sistance and advice to help them raise the stand- 
ards and proficiency of their work. 

The extent to which the services of the labora- 
tory are utilized by American scholars can best 
be illustrated by the following examples : 

For the distinguished historian, Herbert Eugene 
Bolton, University of California, the laboratory 
has produced more than 55,000 microfilm exposures 
of Mexican historical treasures and at present is 
photographing on microfilm for the Colegio de 
Mexico a private collection which will run to over 
750,000 exposures. When completed, these micro- 
films will provide a valuable historical source for 
all Americans. 

For the library, the laboratory has filmed many 
priceless Mexican documents and manuscripts. 
A special cabinet has been constructed to house the 
films, and a catalog of the collection is available, 
though not in published form. Professors, 
teachers, and others are always welcome to make 
use of the films and the library microfilm-reading 
machine for research purposes. 

Although the work of the laboratory has been 
of tremendous value and the volume of work pro- 
duced has been large, cramped quarters, lack of a 
mici'ofilm-duplicating machine for more wide- 
spread dissemination of positive prints, inade- 
quate water supply, and other obstacles seriously 
hamper operations. Increased space and addi- 
tional equipment would permit the laboratory to 
double its volume, thus accommodating to an even 
greater extent scholars and institutions of both 
the United States and the host country. 

A Union Catalog of Publications in Series in 
the Biological and Medical Sciences available in 
selected Mexican libraries constitutes another im- 
portant activity in which the Benjamin Franklin 
Library has been closely associated. Funds for 
compiling the Union Catalog were secured from 
the Rockefeller Foundation, mainly through the 
individual efforts of Harry M. Lydenberg. Dr. 
Lydenberg's successor, Rudolph Gjelsness, drafted 
the technical instructions for the personnel selected 
to comj)ile the information for the Union Catalog;. 
Professional staff members of the Benjamin 
Franklin Lil>rary were released from their posts 



758 



Department of State Bulletin 



to accept positions on the cataloc; ])rojoct. Mexi- 
can clerical assistants were hired and trained for 
this important and complicated task by the pro- 
fessional librarians in charc;e of carrying: out the 
operations. Tlie library furnished quarters for 
the editorial staff of the project. Dr. Gjelsness, in 
addition to his duties as director of the library, 
supervised both the editorial staff and the field 
workers. The entire project was a collaborative 
effort in which the library gave technical advice 
and direction, the Rockefeller Foundation fur- 
nished the funds, and the Comision Impulsors y 
Coordinators de la Investigacion Cientica agreed 
to publish the finished work, as well as to cooperate 
with the staff and the library in making arrange- 
ments for the surveying of each Mexican library. 

It is felt that this publication, when it appears, 
will be of great benefit to all librai-ies. Its use as 
a reference tool should be quite extensive, particu- 
larly among specialists in biological and medical 
fields. Furthermore, it should be helpful to Mexi- 
can libraries and librarians in coming to agree- 
ment on an economy program involving the dis- 
continuance of duplicate subscriptions and the 
concentration in one library of all parts of series. 
Assisting nearby institutions to comiDlete sets 
through exchange of duplicates oti'ei's another op- 
portunity for closer collaboration among Mexican 
libraries, thanks to information to be found in the 
Union Catalog. 

A complete file of all the holdings of the selected 
libraries in their respective fields is available for 
use at the Benjamin Franklin Library. It has 
been consulted by many professional men and is 
used extensively by the reference librarian. 

The extremely popular children's room at the 
Benjamin Franklin Library has made some notable 
contributions in furtherance of library service to 
young people. A separate and distinct department 
within a general library, where the books, librar- 
ian, and activities are devoted specifically to 
children, is itself a novelty in Mexico. 

Illustrated children's books, likewise, are a very 
recent development in Mexico. From the hundreds 
of such books available to children in the United 
States, only the outstanding are chosen for pres- 
entation to Mexican children. Usually the feasi- 
bility of translating these titles into Spanish is 
given very careful consideration by the children's 
librarian. 



In view of the fact that in Mexico very few 
children read English, the translation of these 
stories is the only manner in which good books can 
be used to the best advantage by a larger number 
of children of all classes. For this reason the 
library has translated and had printed the texts 
for over 90 books. The translations are then 
pasted or tipped into the book below the English 
version in such a way that the illustrations are kept 
intact, and at the same time so arranged that the 
children can compare the English text with the 
Spanish translation. 

This presentation of a story in two languages 
captivates young Mexican readers, many of whom 
are learning considerable English by the com- 
parative method. 

The popularity of illustrated books for children 
has penetrated all Latin America. Argentina, in 
particular, is now issuing many in Spanish, and 
in Mexico the Secretaria de Educacion is publish- 
ing a number of very worth-while books with good 
illustrations. The example and the success of this 
type of publication in the United States has not, 
therefore, gone unnoticed in Latin America. 

Story hours for children, another activity of the 
children's librarian and assistants, attract a regu- 
lar following. Each Friday afternoon stories are 
told in Spanish for the benefit of those children 
who know no English. The stories are based on 
the best-loved children's books and are often illus- 
trated with slides made by the photoduplication 
laboratory teclinician. Following these story 
hours there is always a great clamor for the book 
or books on wliich the tales are based. Unfor- 
tunately, there are never enough copies to supply 
the demand. These story-hour activities have 
been exceedingly well received and have resulted 
in phenomenal increases in registration of new 
borrowers. One hundred and seventy-four chil- 
dren registered in one month recently for an all- 
time high record. At present, more than one 
fourth of the total registrations at the Benjamin 
Franklin are children. 

A story hour over the radio is contemplated, in 
which English and Spanish versions will be alter- 
nated. Plans are drawn for expanding this pro- 
gram to include reviews of books in all fields in the 
adult level as well as interviews with well-known 
authors. This type of program has been con- 
ducted with great success in the past. It was, un- 



Ocfober 19, 7947 



759 



fortunately, discontinued because of the shortage 
of qualified personnel to prepare script and do the 
actual broadcasting and of lack of funds to main- 
tain this activity on the same high plane. 

Free movies are presented to the children each 
Saturday, two performances being given in the 
morning to a special group known as the Ejercito 
Infantil, which comprises approximately 300 
outstanding boys who have been selected for spe- 
cial training in citizenship, in courtesy, cleanliness, 
good manners, and some military training. At- 
tractive uniforms and incidental expenses for their 
upkeep are borne by the supporting agencies, the 
Mexican Government and El U7iiversal, a daily 
newspaper of Mexico City. Two more perform- 
ances are given in the afternoon to all other chil- 
dren. Between 500 and 600 children attend the 
four Saturday performances. Travel and edu- 
cational films are stressed, with a comic feature 
generally included. Sound tracks are, in most 
cases, in Spanish. Wlien in English, Spanish cap- 
tions are provided. 

This audio-visual type of activity whets the 
reading appetites of Mexican children to a re- 
markable extent. The children's room is deluged 
with eager borrowers following each performance. 
Quarters for the children's room are so sniall that 
the overflow extends out on the roof of the build- 
ing, up and down the stairs, or wherever a place 
may be found to sit down and read. 

To increase the circulation of books in English, 
the children's librarian gives classes in English to 
the Spanish-speaking children during the school 
vacation period, November to February. Great 
interest has been evinced by many who are anxious 
to learn English. Games, folk dances, songs, and 
other media will be utilized in conjunction with 
regular teaching methods. 

Children's library service is not confined solely 
to the Benjamin Franklin Library, nor to Mexico 
City proper. Revolving deposits of picture books 
have been sent to the Club Infantil, a home spon- 
sored by the Cruz Blanca, where homeless children 
are cared for. Through the cooperation of Seiiora 
Esperanza Brito, who is in charge of this institu- 
tion, the books are made available to these children 
within the building. Senora Esperanza Brito is 
of the opinion that this particular activity will 
stimulate a desire for more and better reading 
material. 



The translated picture books are also sent on a 
three months' loan deposit to other places in the 
capital and to surrounding cities. Many of these 
books have been sent to the two cliildren's schools 
in Mexico City : Parque Lira and Casa Amiga de 
la Obrere No. 2. Outside Mexico City this same 
type of book has been placed on loan deposit with 
the Colegio Americano and the Instituto Normal, 
both in the city of Puebla. In the Instituto Nor- 
mal these books are used as illustrative material 
in teacher classes. 

Books in English have been placed on loan 
deposit in nursery schools in Mexico City ; in the 
Colegio Americano in Puebla (for use in the upper 
grades) ; in a private home in Chapala, where 
several families are sharing books due to lack of a 
school in that particular area; in Guanajuato in 
six missionary schools ; and in the home of a family 
near Oaxaca, where no school is available and 
where the mother of the family acts as tutor for 
her four children. Books are chosen for various 
age levels of the children, who, when they have 
finished reading them, write reviews which are 
forwarded to the library and are posted on the 
bulletin board. These reviews are the subject of 
much curiosity and comment from local children 
as well as from adults. 

Other activities, such as bulletin-board and spe- 
cial exhibits, provide a great deal of instruction 
and entertainment. The children cooperate in ar- 
ranging and posting exhibits, making puppets and 
staging puppet plays, and solving jigsaw puzzles 
which form outlines of countries, flowers, animals, 
or faces of famous personalities. Classes in paint- 
ing are held for limited numbers of students 
on Saturday mornings and afternoons. These 
classes are so popular that the library was com- 
pelled to limit the number of children admitted. 
Murals depicting stories, murals to be shown dur- 
ing Book Week, and other current topics are sub- 
jects chosen for artistic endeavors. 

Establishment of branches of the library in the 
cities of Guadalajara, Monterrey, and Puebla is 
contemplated. The Benjamin Franklin Library 
has opened a vast new field for the effective use of 
books, magazines, and information services. These 
are instruments for drawing ever closer together 
the bonds between two neighbors, whose future 
must irrevocably be based on friendliness and 
trust, achieved only through understanding. 



760 



Department of Stale Bulletin 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



Position of U.S. Delegation on Palestine Question 



STATEMENT BY U.S. DEPUTY REPRESENTATIVE TO THE UNITED NATIONS' 



1. The problem of the future government of 
Palestine confronts the General Assembly of the 
United Nations with a heavy and complex respon- 
sibility. The General Assembly, having assumed 
responsibility for making recommendations to 
the United Kingdom on the subject, must do every- 
thing within its power to evolve a practical solu- 
tion consistent with the principles laid down in 
the United Nations Charter. 
I 2. The United States Delegation feels that the 
urgency of the problem is so great that the General 
Assembly must recommend a solution at this ses- 
sion. The degree of urgency has been brought 
to our attention by continued violence in Palestine, 
by the context of the Special Committee's report,^ 
and by the statement of the delegate from the 
United Kingdom regarding the recommendations 
of the Committee and future British responsibili- 
ties in Palestine. 

3. During the past weeks this Committee has 
had the benefit of the views of several members 
of this Committee, and has heard statements by 
the representatives of the Arab Higher Committee 
and the Jewish Agency for Palestine on behalf 
of the peoples primarily concerned. The United 
States Delegation believes that this discussion has 
been of material assistance and hopes that it will 
continue on the broadest basis. 

4. It may be recalled that as a result of the 
First World War, a large area of the Near East, 
including Palestine, was liberated and a number 
of states gained their independence. The United 
States, having contributed its blood and resources 
to the winning of that war, felt that it could not 
divest itself of a certain responsibility for the 
manner in which the freed territories were dis- 
posed of, or for the fate of the peoples liberated 
at that time. It took the position that these peoples 
should be prepared for self-government and also 
that a national home for the Jews should be 

Ocfofaer 79, 7947 

764026 — 47 2 



established in Palestine. The United States Gov- 
ernment has subsequently had long and friendly 
relations with the independent states which were 
created in the Near East and is happy to note that 
most of them are members of the United Nations 
and have representatives present at this meeting. 

5. It may be recalled, with regard to Palestine, 
that in 1917 the Government of the United King- 
dom, in the statement known as the Balfour Dec- 
laration, announced that it viewed with favor the 
establishment in Palestine of a national home for 
the Jewish people and that it would use its best 
endeavors to facilitate the achievement of that 
object, it being clearly understood that nothing 
should be done which might prejudice the civil 
and religious rights of existing non-Jewish com- 
munities in Palestine or the rights and political 
status enjoyed by Jews in any other country. In 
1923 the objectives stated in this Declaration were 
embodied in the League of Nations Mandate for 
Palestine which was entrusted to the Government 
of the United Kingdom as mandatory. As the 
United States was not a member of the League of 
Nations, a Convention was. concluded between the 
United States and the United Kingdom in 1924: 
with regard to American rights in Palestine. The 
Palestine Mandate is embodied in the Preamble 
to this Convention. The United States consented 
to this Mandate. Members of this Committee are 
aware of the situation which subsequently devel- 
oped in Palestine and of the many efforts which 
have been made to achieve a settlement. We now 
have before us a report of the Special Committee 



^ Statement made at meeting of the ad hoc Committee on 
Palestine of the General Assembly on Oct. 11, 1947, and 
released to the press by the U.S. Mission to the U.N. on 
the same date. Herschel V. Johnson is the U.S. Deputy 
Representative to the United Nations. 

' For recommendations of this report (U.N. doc. 
A/364, Sept. 3, 1947), see Buixetin of Sept 21, 1947, 
p. 546. 



761 



THE UNITED NATIONS AND SPBCIALIZBD AGENCIES 

of the United Nations with regard to the Palestine 
Question. 

6. The United States Delegation supports the 
basic principles of the unanimous recommenda- 
tions and the majority plan which provides for 
partition and immigration. It is of the opinion, 
however, that certain amendments and modifica- 
tions would have to be made in the majority plan 
in order more accurately to give effect to the prin- 
ciples on which that plan is based. My delegation 
believes that certain geographical modifications 
must be made. For example, Jaffa should be in- 
cluded in the Arab State because it is predomi- 
nantly an Arab city. 

My delegation suggests that the General As- 
sembly may wish to provide that all the inliabi- 
tants of Palestine, regardless of citizenship or 
place of residence, be guaranteed access to ports 
and to water and power facilities on a non-dis- 
criminatory basis ; that constitutional guarantees, 
including guarantees regarding equal economic op- 
portunity, be provided for Arabs and Jews alike, 
and that the powers of the Joint Economic Board 
be strengthened. Any solution which this Commit- 
tee recommends should not only be just, but also 
workable and of a nature to command the ap- 
proval of world opinion. 

7. Tlie United States Delegation desires to make 
certain observations on the carrying out of such 
recommendations as the General Assembly may 
make regarding the future government of Pales- 
tine. The General Assembly did not, by admitting 
this item to its agenda, undertake to assume re- 
sponsibility for the administration of Palestine 
during the process of transition to independence. 
Responsibility for the government of Palestine 
now rests with the mandatory power. The General 
Assembly, however, would not fully discharge its 
obligation if it did not take carefully into account 
the problem of implementation. 

8. Both the majority report and the statement 
of the United Kingdom representative in this 
Committee raise the problem of carrying into ef- 
fect the recommendations of the General Assem- 
bly. We note, for example, that the majority 
report indicates several points at which the 
majority thought the United Nations could be of 
assistance. It was suggested that the General As- 
sembly approve certain steps involved in the tran- 
sitional i^eriod, that the United Nations guarantee 



certain aspects of the settlement concerning Holy 
Places and minority rights, that the Economic and 
Social Council appoint three members of the 
Joint Economic Board, and that the United Na- 
tions accept responsibihty as administering au- 
thority of the City of Jerusalem under an 
international trusteeship. 

9. The United States is willing to participate 
in a U.N. program to assist the parties involved 
in the establishment of a workable political set- 
tlement in Palestine. We refer to assistance 
through the U.N. in meeting economic and finan- 
cial problems and the problem of internal law and 
order during the transition period. The latter 
problem might require the establishment of a 
special constabulary or police force recruited on 
a volunteer basis by the U.N. We do not refer 
to the possibility of violation by any member of 
its obligations to refrain in its international 
relations from the threat or use of force. We 
assume that there will be Charter observance. 

10. In the final analysis the problem of making 
any solution work rests with the people of Pales- 
tine. If new political institutions are to endure, 
they must provide for early assumption by the 
people themselves of the responsibility for their 
own domestic order. Acts of violence against con- 
stituted authority and against rival elements of 
the local population have appeared in Palestine 
over a period of many years and have greatly in- 
creased the difficulties of finding a workable solu- 
tion to this complex problem. Certain elements 
have resorted to force and terror to obtain their 
own particular aims. Obviously, this violence 
must cease if independence is to be more than an 
empty phrase in the Holy Land. 

11. Mr. Chairman, we must now consider how 
this committee is to take the next step in dealing 
with this question. If the committee favors the 
principles of the majority plan, we should estab- 
lish a subcommittee to work out the details of a 
program which we could recommend to the GA 
[General Assembly]. 

12. The recommendations reached by the GA 
will represent the collective opinion of the world. 
The problem has thus far defied solution because 
the parties primarily at interest have been unable 
to reach a basis of agreement. This is a problem 
in the solution of which world opinion can be 
most helpful. 



762 



Department of State Bulletin 



' Proposed Economic Commission for Latin America 



RESOLUTION ADOPTED BY ECONOMIC AND SOCIAL COUNCIL ON 11 AUGUST 1947 



The Economic and Social Council 

Recognizing that the Latin American countries 
I are faced with serious post-war problems of eco- 
nomic adjustment tlireatening tlie economic sta- 
bility of these countries, with their less developed 
economies, and 

Recognizing that co-operative measures among 
the American republics can be of practical assist- 
ance in raising the level of economic activity in 
Latin America and in maintaining and strength- 
ening the economic relations of these countries 
both among themselves and with other countries of 
the world, and that such measures would be facili- 
tated by close co-operation with the United Na- 
tions, as well as with the agencies of the Inter- 
xlmerican system. 

Esfahlishes an ad hoc Committee consisting 
of Chile, China, Cuba, France, Lebanon, Peru, 
United Kingdom, United States of America, and 
Venezuela ; 



Decides upon the following terms of reference 
for the Committee : 

1. The Committee shall consider the factors 
bearing upon the establishment of an economic 
commission for Latin America within the frame- 
work of the United Nations and shall present to 
the Council a report with recommendations con- 
cerning the creation of such a commission ; 

2. The Committee may consult with interested 
agencies both within and without the United Na- 
tions, and shall ascertain the views of the Ninth 
International Conference of American States con- 
vening in Bogota in January 1948; 

Requests the Secretary-General to give special 
and immediate aid to the Committee by initiating 
studies defining and analysing the economic prob- 
lems of Latin American countries which threaten 
the stability and development of their economies. 



EXPRESSIONS OF SUPPORT BY CERTAIN LATIN AMERICAN GOVERNMENTS' 



During the discussion of the Chilean proposal 
(E/4C8) for the establishment of an Economic 
Commission for Latin America at the Fifth Session 
of the Economic and Social Council, messages 
supporting the establishment of such a Commis- 
sion were received by the Secretary-General from 
Bolivia, El Salvador, Guatemala, Mexico, and 
Uruguay, and were presented to the Council. 

After the conclusion of the session, the Secre- 
tary-General received further messages support- 
ing the proposal from Latin American Govern- 
ments. 

The complete list of Latin American govern- 
ments which have now communicated to the Sec- 



retary-General expressing themselves in favour of 
the proposal is as follows : 



Argentina 

Bolivia 

Brazil 

Colombia 

Costa Rica 

Dominican Republic 

Ecuador 

El Salvador 



Guatemala 

Haiti 

Honduras 

Mexico 

Nicaragua 

Panama 

Paraguay 

Uruguay 



> U.N. doc. B/AC.21/2, Oct. 6, 1947. 
' U.N. doc. E/AC.21/3. Oct. 7, 1947. 



Ocfober 79, 7947 



763 



Current United Nations Documents: A Selected Bibliography^ 



Atomic Energy Commission 

Second Report of the Atomic Energy Commission to the 
Security Council. AEC/26, September 8, 1947. 105 
pp. mimeo. 

Economic and Social Council 

World Statistical Congress. Development of Interna- 
tional Demographic Statistics. By Forrest E. Linder, 
Chief, Population and Vital Statistics Section, Statis- 
tical Office of the United Nations. E/CN.3/WSC/3, 
August 27, 1947. 10 pp. mimeo. 

United Nations World Statistical Congress. The Devel- 
opment of International Comparability of Statistics. 
William R. Leonard, Acting Director, Statistical Of- 
fice of the United Nations. B/CN.3/WSC/6, Septem- 
ber 1, 1947. 13 pp. mimeo. 

Statistical Activities of the International Monetary 

Fund. Paper to be submitted to the World Statistical 
Congress, Washington, September 1947. J. J. Polak, 
Chief, Statistics Division, Research Department, In- 
ternational Monetary Fund. E/CN.3/WSO/7, Sep- 
tember 2, 1947. 8 pp. mimeo. 

The Role and Work of the International Labour Or- 
ganization in International Statistics. By Robert 
Morse Woodbury, Chief Statistician, International 
Labour Office. E/CN.3/WSC/8, September 2, 1947. 
8 pp. mimeo. 

The Analysis of International Population Problems. 

By Frank W. Notesteln, Consultant, Division of Pop- 
ulation of the United Nations. E/CN.3/WSC/9, 
September 3, 1947. 7 pp. mimeo. 

Statistical Activities of the World Health Organiza- 
tion. By p. Stowman. E/CN.3/WSC/10, Septem- 
ber 4, 1947. 3 pp. mimeo. 

Statistical Activities and Requirements of the Inter- 
national Bank for Reconstruction and Development 
By J. S. Gould. E/CN.3/WSC/11, September 4, 1947. 
5 pp. mimeo. 

Brief Statement on icao Statistics for the World 

Statistical Conference. By A. M. Lester. E/CN.- 
3/WSC/12, September 4, 1947. 6 pp. mimeo. 

Application for Membership in the United Nations Educa- 
tional Scientific and Cultural Organization. Note by 
the Secretary-General. E/568, September 22, 1947. 
3 pp. mimeo. 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 29G0 Broadway, New York City. Other 
materials (mimeographed or processed documents) may 
be consulted at certain designated libraries in the United 
States. 



764 



111 



Resolutions adopted by the Economic and Social Council 
during its Fifth Session from 19 July to 16 August 
1947. E/573, September 2, 1947. v, 101 pp. printed. 
[$1.00.] 

Commission on Narcotic Drugs. Report to the Economic 
and Social Council on the Second Session of the Com- 
mission, Held at Lake Success, New York, From 24' 
July to 8 August 1947. E/575, September 12, 1947. 
i, 94 pp. mimeo. 

Financial Needs and Resources of the Devastated Coun- 
tries of the United Nations in the Immediate Future, 
Especially in Respect of Their Requirements and 
Receipts of Freely Convertible Foreign Currency. - 
Report by the Secretary-General on the Devastated 
Countries in Europe. E/576, September 22, 1947. 
89 pp. mimeo. 

Report of the Statistical Commission to the Economic and 
Social Council. Second Session 28 August to 5 Sep- " 
temlier 1947. E/577, September 23, 1947. 20 pp. 
mimeo. S 

Report of the Social Commission. Second Session. Lake '' 
Success, 28 August to 13 September 1947. E/578, 
September 23, 1947. 32 pp. mimeo. 

United Nations Conference on Trade and Employment. 

Resolutions of 28 July 1947. E/582, September 24, 

1947. 3 pp. mimeo. 
Non-Governmental Organizations. Decisions of 13 and 16 

August 1947. E/583, September 25, 1947. 5 pp. mimeo. 

List of Non-Governmental Organizations Granted Con- " 
sultative Status by the Economic and Social Council. 
E/C.2/56, September 24, 1947. 12 pp. mimeo. 

Statistical Commission. Report of the Committee on 
Industrial Classification. A Proposed International 
Standard Industrial Classification. E/CN.3/35, Au- 
gust 29, 1947. 60 pp. mimeo. | 

International Children's Emergency Fund. Programme 
Committee. . . . Report to the Executive Board on 
Meetings Held in Hotel Majestic, Avenue Kleber, 
Paris, between 18th and 23rd August Inclusive, 1947. 
E/ICEF/23, September 17, 1947. 80 pp. mimeo. Also, 
E/ICEF/23/Add.l, September 23, 1947. 2 pp. mimeo. ; 
and E/ICEF/23/Corr.l, September 17, 1947. 1 p. 
mimeo. 

Executive Board. Statement of the FAO Mission 

Concerning the Urgent Needs of Children in Poland. 
E/lCEF/24, September 24, 1947. 5 pp. mimeo. 

Report of the Drafting Committee of the Preparatory 
Committee of the United Nations Conference on Trade 
and Employment (20 January to 25 February 1947). 
E/PC/T/34/Rev.l, May 29, 1947. 82 pp. printed. 
[75M 

Department of State Bulletin 



Wcirld Statistical Congress. The Role and Work of the 
Food and Agriculture Organization of the United 
Nations in International Statistics. By Valentino 
Dore. E/CN.3/WSC/2, August 20, 1947. 7 pp. mimeo. 

General Assembly 

E*rovisioual Agenda for the Second Regular Session. 
Report of tlie General Committee. A/392, September 
22, 1947. 12 pp. mimeo. Also, A/392/ Add.l, Septem- 
ber 23, 1947. 1 p. mimeo. 
Budgetary and Financial Relationships of the United Na- 
tions and Specialized Agencies . . . Interim Report of 
the Secretary-General. A/394, September 23, 1947. 7 
pp. mimeo. 
eport of the Advisory Committee on Administrative and 
Budgetary Questions. Third Report of 1947 on the 
External Audit Report on the 1946 Accounts. A/395, 
September 24, 1947. 4 pp. mimeo. 
United Nations Joint Staff Pension Scheme. Annual 
Report to the General Assembly Submitted by the 
Staff Benefit Committee Acting as the Joint Benefit 
Committee. A/397, September 25, 1947. 10 pp. 
mimeo. 

Amission of Yemen and Pakistan to Membership in the 
United Nations. Report of the First Committee. 
A/399, September 25, 1947. 1 p. mimeo. 
B'irst Committee. Second Session. Threats to the Polit- 
ical Independence and Territorial Integrity of 
Greece : Letter From the Bulgarian Political Repre- 
sentative to the United States Addressed to the Sec- 
retary-General Dated 21 September 1947. A/C.1/190, 
September 25, 1947. 2 pp. mimeo. 

—Letter From the Representative of Albania Addressed 
to the Secretary-General Dated 23 September 1947. 
A/C.1/192, September 20, 1947. 1 p. mimeo. 

—Letter From the President of the General Assembly to 
the Chairman of the First Committee, Dated 25 Sep- 
tember 1947. A/C.1/193, September 25, 1947. 1 p. 
mimeo. 

—Letter From the Secretary-General to the Bulgarian 
Political Representative in the United States and to 
the Albanian Representative Accredited to the United 
Nations, Dated 25 September 1947. A/C.1/194, Sep- 
tember 25, 1947. 1 p. mimeo. Also, A/C.l/194/Corr.l, 
September 2K, 1947. 1 p. mimeo. 

—Letter From the Albanian Delegation Addressed to 
the Secretary-General Dated 27 September 1947. 
A/C.1/197, September 27, 1947. 1 p. mimeo. 

—Letter From the Bulgarian Delegation Addressed to 
the Secretary-General Dated 27 September 1947. 
A/C.1/198, September 27, 1947. 1 p. mimeo. 

—Proposal Submitted by the Delegation of the Union of 
Soviet Socialist Republics. A/C.1/199, September 27, 
1947. 3 pp. mimeo. 
Fifth Committee. Statement by Representative of the 
International Monetary Fund in Regard to the Pay- 
ment of Contributions to International Organizations. 
Report by the Secretary-General. A/C.5/151, Sep- 
tember 27, 1947. 2 pp. mimeo. 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

List of Committee Secretariats for the Second Regular 
Session. A/INF/12, September 23, 1947. 9 pp. mimeo. 

Official Records of the Second Session of the General As- 
sembly. Supplement No. 4. Trusteeship Council. 
Report to the General Assembly covering its first 
session (26 March-28 April 1947). A/312, June 12, 
1947. 15 pp. printed. [15^.] 

Official Records of the First Special Session of the General 
Assembly. Volume I. Plenary Meetings of The Gen- 
eral Assembly. Verbatim Record. 28 April-15 May 
1947. xix, 203 pp. printed. [$2.00.] 

Official Records of the Second Part of the First Session 
of the General Assembly, General Committee, Sum- 
mary Record of Meetings, 22 October-13 December 

1946. vi, 47 pp. printed. [50^.] 

Draft Convention on the Crime of Genocide. Communi- 
cations Received by the Secretary-General. A/401, 
September 27, 1947; A/401/Add.l, October 1, 1947. 
Each 3 pp. mimeo. 

Utilization of the Services of the Secretariat. Draft Reso- 
lution Proposed by Sweden. A/403, October 2, 1947. 
1 p. mimeo. 

Budgetary and Financial Relationships of the United 
Nations and Specialized Agencies and Related Mat- 
ters. Excerpt From the Report to the Economic and 
Social Council of the Co-ordination Committee on the 
Work of Its Second Session. A/404, October 4, 1047. 
36 pp. mimeo. 

Threats to the Political Independence and Territorial In- 
tegrity of Greece. Amendment to the Proposal by the 
Delegation of the United States Submitted by tlie 
French Delegation. A/C.1/201, September 29, 1947. 
1 p. mimeo. 

Letter From the Bulgarian Delegation Addressed to 

the Assistant Secretary-General Dated 2 October 

1947. A/C.1/203, October 2, 1947. 1 p. mimeo. 
^Letter From the Albanian Delegation Addressed to 

the Assistant Secretary-General Dated 2 October 1947. 
A/C.1/204, October 2, 1947. 1 p. mimeo. 

Proposal Submitted by the Delegation of Sweden. A/C- 
1/205, October 7, 1947. 3 pp. mimeo. 

Proposal of the Delegation of China To Promote the Ef- 
fective Functioning of the Security Council. A/C- 
1/202, September 30, 1947. 2 pp. mimeo. 

The Journal of the General Assembly, Second Session, 
printed dally during the Assembly meetings. 

Security Council 

Letter From the Permanent Representative of Greece to 
the United Nations Addressed to the Secretary-Gen- 
eral Dated 9 September 1947. S/544, September 9, 
1947. 1 p. mimeo. 

Letter From the Chairman of the Commission of Investi- 
gation Concerning Greek Frontier Incidents Addressed 
to the President of the Security Council Dated 29 
August, and Attached Letter and Report From the 
Chairman of the Subsidiary Group. S/534, August 
29, 1947. 42 pp. mimeo. 



Ocfober 19, 1947 



765 



THC UNITED NATIONS AND SPECIALIZED AGENCIES 

Letter From the Representative of the Netherlands Dele- 
gation to the United Nations Addressed to the Secre- 
tary-General Dated 2 September 1947, and Enclosures. 
S/543, September 9, 1947. 62 pp. mimeo. 

letter From the Representatives of the Albanian People's 
Republic to the United Nations, Addressed to the 
Secretary-General, Dated 8 September 1947. S/546, 
September 10, 1947. 3 pp. mimeo. 

Draft Resolution on the Greek Question Submitted by the 
Representative of the United States at the Two 
Hundred and Second Meeting of the Security Council. 
S/5D2, September 15, 1947. 1 p. mimeo. [To turn 
over related documents to the General Assembly.] 

Letter From the Chairman of the Commission of Investi- 
gation Concerning Greek Frontier Incidents to the 
President of the Security Council Dated 15 September 
1947 and Enclosed Telegram From the Chairman of 
the Subsidiaiy Group. S/554, September 15, 1947. 
3 pp. mimeo. 

Resolution on the Greek Question Submitted by the Repre- 
sentative of the United States and Adopted by the 
Security Council at Its Two Hundred and Second 
Meeting. S/555, September 15, 1947. 1 p. mimeo. 

Letter From the Representative of Greece to the United 
Nations Addressed to the Secretary-General Dated 15 
September 1947. S/556, September 17, 1947. 1 p. 
mimeo. 

Official Records, Second Year: No. 29, 122nd Meeting, 25 
March 1947. 21 pp. printed. [150.] 

^No. 30, 123rd Meeting, 28 March 1947. 25 pp. printed. 

[300.] 

No. 32, 125th Meeting, 3 April 1947. 16 pp. printed. 

[100.] 

Special Supplement No. 3. Report of the Committee 

on the Admission of New Members, v, 58 pp. printed. 
[500.] 

Trusteeship Council 

Official Records. First Tear: First Session, vii, 157 pp. 
printed. [$1.25.] 

U.S. Delegation to ICAO IVleeting on 
Multilateral Air Transport Agreement 

[Released to the press October 9] 

The President announced on October 9 the com- 
position of the United States Delegation to the 
meeting to be convened at Geneva, November 3, 
1947, by the International Civil Aviation Organ- 
ization on the multilateral air-transport agree- 
ment. The chairman of the Delegation is Gar- 
rison Norton, Assistant Secretary of State, and 
the vice chairman is Oswald Ryan, vice chairman 
of the Civil Aeronautics Board. Delegates are 



Russell B. Adams, director. Economic Bureau, 
Civil Aeronautics Board ; Livingston T. Merchant, 
chief, Aviation Division, Department of State; 
and Stuart G. Tipton, general counsel. Air Trans- 
port Association. Advisers are John C. Cooper, 
member. Institute for Advanced Study, Prince- 
ton, N. J. ; Paul T. David, alternate representative 
on the Council of icao and U.S. representative on 
the Air Transport Committee of icao ; and Robert 
J. G. McClurkin, Jr., assistant director, Economic 
Bureau, Civil Aeronautics Board. The secretary 
of the Delegation is Richard S. Wheeler, Division 
of International Conferences, Department of 
State. 

Congressional representation has been invited 
on this Delegation, but information was not avail- 
able on October 9 as to which members of Congress 
may attend the meeting. In addition, representa- 
tives of the major United States airlines engaged 
in international air transportation have been in- 
vited to send representatives for advice and con- 
sultation with the official Delegation. 

The meeting has been called by the icao Council 
at Montreal in accordance with a resolution 
adopted by the First Assembly of icao in May 
1947. The meeting, which is in the form of a 
commission, will be open to all member states. 
Its object will be the development of an agree- 
ment respecting the multilateral exchange of com- 
mercial rights in international civil air transport. 

Office of U.S. Delegation to Economic 
Commission for Europe 

There has now been established the Office of the 
United States Representative to the Economic 
Commission for Europe (ECE) with headquarters 
at Geneva. The ECE is a regional commission of 
the Economic and Social Council of the United 
Nations. The United States Representative will 
be responsible to the Secretary of State. 

Paul R. Porter has been designated as the 
Alternate to William Clayton, the United States 
Representative, and will act as resident head of 
the office at Geneva. The Mission for Economic 
Affairs (MEA) at London, of which Mr. Porter 
has been Acting Chief, will be dissolved, and its 
functions and part of its staff will be absorbed by 
the Office of the United States Representative to 
ECE. 



766 



Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



End of Proceedings of the Austrian Treaty Commission 



[Released to the press October 11] 

The proceedings of the Austrian Treaty Ck)m- 
mission, which has been in session in Vienna since 
May 12, 1947, were brought to an end on October 
11, 1947. 

In accordance with a decision taken by the Coun- 
cil of Foreign Ministers at Moscow on April 24, 
the Austrian Treaty Commission was established 
at Vienna to examine all of the disagreed questions 
of the Austrian treaty with the object of reconcil- 
ing the different points of view of the four Allied 
Governments. At the conclusion of the Moscow 
Conference (March-April 1947) the Council of 
Foreign Ministers had reached agreement on the 
preamble and 33 of the 53 articles in the Austrian 
treaty. The 20 disagreed articles involve five basic 
issues: the Austro- Yugoslav frontier; displaced 
persons; military and air restrictions; German 
assets (article 35) ; and property of United Na- 
tions nationals (article 42) . Through a subsidiary 
body, the Committee of Experts, the Treaty Com- 
mission was to give special consideration to arti- 
cles 35 and 42 and to the establishment of con- 
crete facts. The Treaty Commission, it should be 
noted, was never intended to have plenipotentiary 
powers to conclude agreements but only powers 
to investigate and to make recommendations to 
the Council of Foreign Ministers for the resolu- 
tion of differences. 

In carrying out the work entrusted to it by the 
Council of Foreign Ministers, the Treaty Commis- 
sion has held 85 meetings. The proceedings were 
largely devoted, after preliminary discussions of 
procedural matters, to an extensive examination of 
the basic types of German assets, namely, oil prop- 
erties, the Danubian Steamship Company (ddsg), 
financial institutions (including insurance com- 
panies), industry, and state property. These in- 
vestigations necessarily involved discussions of 
various United Nations properties and interests. 
At the end of its meetings the Treaty Commission 
also reviewed the remaining disagreed articles. 



The United States and other delegations have 
presented to the Treaty Commission in detail the 
concrete facts with respect to various properties in 
the main categories of German assets and with re- 
spect to corresponding cases of United Nations 
property. It is believed that this comprehensive 
presentation has resulted in a more exact under- 
standing of the character and scope of the German 
assets problem : a vague but complex set of issues 
has been broken down into component parts, and 
the various drafts for article 35 have been re- 
vised in the light of this exhaustive analysis of 
the problem and compilation of new information. 

The Treaty Commission did not agree on a 
text of article 35 for recommendation to the Coun- 
cil of Foreign Ministers, and the positions of the 
I'espective delegations on the main points of dif- 
ference were in general reaffirmed. The Treaty 
Commission was able, however, to achieve a com- 
mon approach on cei'tain limited aspects of the 
German assets problem, and its discussions have 
defined the issues in such a manner as to facilitate 
the consideration of the principal differences by 
the Council of Foreign Ministers meeting in Lon- 
don on November 25. The many papers of the 
Treaty Commission setting forth concrete facts 
and the numerous discussions of specific cases of 
assets have made it jaossible for the separate dele- 
gations to draft comprehensive reports as a basis 
for renewed considerations of this difficult prob- 
lem at London. 

The United States regrets the undue delay in 
reaching agreement on the outstanding points of 
difference in the Austrian treaty. In the hope of 
obtaining an Austrian treaty at the earliest possi- 
ble date and on the basis of the work done by the 
Treaty Commission in Vienna during the summer, 
the United States will make every effort at the 
forthcoming meeting of the Council of Foreign 
Ministers to resolve those issues, which have be- 
come a matter of international concern. 



October 19, 7947 



767 



ACTIVITIBS AND DBVBLOPMENTS 

REVIEW OF AGREEMENT ON ECONOMIC FUSION 

OF U.S. AND U.K. ZONES IN GERMANY 

[Released to the press October 7] 

Anglo-American discussions which will review 
the terms of the Byrnes-Bevin agreement of De- 
cember 2, 1946, providing for the economic fusion 
of the American and British zones ^ in Germany, 
began on October 8 in Washington, D.C. 

The American and British Delegations partici- 
pating in these discussions are as follows : 

American Delegation 

Assistant Secretary of State Charles E. Saltzmati, Chair- 
man, U.S. Delegation 
Assistant Secretary of State Willard L. Thorp 
Ambassador Robert D. Murphy, Political Adviser, Berlin 
Under Secretary of the Army William H. Draper, Jr. 
Assistant Secretary of the Army Gordon Gray 
Gen. Lucius D. Clay, Military Governor (U.S.), Germany 
Frank A. Soutliard, Jr., Director, Office of International 
Finance, Treasury Department 

British Delegation 

Sir William Strang, Head of Delegation, Political Adviser 

to the Commander in Chief, British Forces of Occupa- 
tion in Germany 
Sir Mark Turner, Principal Adviser on German Economic 

Affairs to the Foreign Office 
Sir Gordon Munro, Financial Minister, British Embassy, 

and Head of U.K. Treasury Delegation 
J. H. Penson, Adviser on German Economic Affairs, British 

Embassy > 

Maj. Gen. N. C. D. Brownjohn, Deputy Chief of Staff 

(Policy), Control Commission for Germany (British 

Element) 
D. L. Anderson, Vice President, Economic Subcommission, 

Control Commission for Germany (British Element) 

P. H. Dean, Head of German Political Department, Foreign 
OfBce 



D. H. F. Eickett, U.K. Treasury 

J. F. Cahan, Acting Chairman (British), Joint Elxport- 
Import Agency (U.S.-U.K.) 

R. C. Griffiths, U.K. Treasury 

Dugakl Malcolm, Foreign Office (German Section), Sec- 
retary to the U.K. Delegation 

The discussions are being held pursuant to a 
British request made in accordance with paragraph 
12 of the fusion agreement which provides for 
review at yearly intervals. The British Govern- 
ment has indicated that it is encountering increas- 
ing difficulties in contributing dollars for the pay- 
ment of essential imports into Germany. It will 
be recalled that the fusion agreement provided 
that the cost of minimum essential imports (food- 
stuffs, seeds, fertilizers, and petroleum products) 
paid from appropriated funds would be borne 
equally by the two parties. The cost of such im- 
ports has been running close to 700 million dollars 
a year, and it has been necessary to make the 
great bulk of these expenditures, which have been 
principally for food, in dollars. 



' For text of agreement, see Bui-letin of Dea 15, 1946, 
p. 1102. 



Articles on Geneva Charter for an ITO 

The series of articles entitled "The Geneva 
Charter for an International Trade Organiza- 
tion" will be concluded in the October 26 issue 
of the Bttli-etin with an article on cartel and 
commodities policy and an article on the consti- 
tution of the ITO. The following articles have 
already appeared : "Introduction" and "General 
Commercial Provisions" in the Bdtxetin of Sep- 
tember 28; "Quantitative Restrictions" and 
"Employment and Economic Developments" in 
the Bltlletin of October 5 ; and "Subsidies and 
State Trading" in the BtJixETiN of October 12. 



768 



Department of State Bulletin 



THE RECORD OF THE WEEK 



New Communist Manifesto Must Not Deflect 
Program for Aid to Europe 



STATEMENT BY ACTING SECRETARY LOVETT 



[Released to the press October 8] 

The Department has examined carefully the ma- 
terial which has appeared in the Soviet press con- 
cerning the recent meeting in Poland of repre- 
sentatives of the Communist Parties of nine Euro- 
pean countries and the decision to establish in 
Belgrade an information bureau consisting of rep- 
resentatives of the Central Committees of the Com- 
munist Parties of these countries. The Depart- 
ment has noted that responsible cabinet ministers 
of certain countries, including the Soviet Union, 
were included among these representatives. It 
has also taken careful note of the terms of the 
manifesto issued by this conference, which ma- 
ligned the aims of the American and British peo- 
ple in the recent war and carried to new lengths 
the distortions of United States policy with which 
the Communist press everywhere has recently been 
replete. 



The documents issued by the Warsaw confer- 
ence speak for themselves. The x^arties and gov- 
ernments associated with this program have made 
clear their intention to prevent, if they can, the 
economic recovery of Europe. People in Europe 
who permit themselves to be misled by these ma- 
licious and unscrupulous distortions will be taking 
a heavy responsibility on themselves, for there 
could be no possibility of avoiding economic dis- 
aster in Europe if the concepts of the Warsaw 
conference were to prevail. 

For Americans, this is a time for coolness and 
clarity of judgment. We must not allow our- 
selves to be deflected from the course we have 
chosen, and we must continue to study with sym- 
pathy but with calm realism the problem of how 
Europe can be assisted to regain its proper place 
in a stable and peaceful world. 



U. S. To Return Btalian Maval Vessels Allotted Under 
Terms of Peace Treaty 

MESSAGE FROM THE SECRETARY OF STATE TO THE ITALIAN FOREIGN MINISTER) 



[Released to the press October 7] 

The Government of the United States has de- 
termined to decline to accept any of the Italian 
naval vessels allotted to it under the terms of the 
Treaty of Peace with Italy and of the Four Power 
Naval Protocol of February 10, 1947. 

Tlae United States Goverimient has not forgot- 
ten the valiant service of the Italian Navy in as-, 
sociation with our own Naval forces during Italy's 
cobelligerency. It is the desire of the Government 



of the United States that these former vessels of 
war be scrapped and utilized by Italy, under the 
terms of the Protocol, as a contribution to the 
continued recovery of the Italian economy. Thus 
these weapons of war may in the end serve Italy's 
reconstruction and the building of a peaceful life 
for the Italian people. 



' Delivered by the American Ambassador to Italy, James 
C. Dunn, to the Italian Foreign Minister, Count Carlo 
Sforza. 



October 79, 7947 



769 



Italian Gold Uncovered by Allies Returned to Italian Government 



[Released to the press October 10] 

The Governments of the United Kingdom and 
the United States, on one hand, and the Govern- 
ment of Italy, on the other, on October 10 entered 
into an agi-eement whereby approximately 28 mil- 
lion dollars of Italian monetary gold uncovered by 
the Allied military forces at La Fortezza in north- 
ern Italy on May 6, 1945, will be turned over to 
Italy. The Allied military authorities in Italy 
have been instructed to proceed with the imme- 
diate transfer of this gold to the Italian Gov- 
ernment. 

The gold uncovered at La Fortezza represents 
almost the total Italian monetary-gold stock re- 
maining on Italian territory at the end of the 
war. Subsequent to the Italian armistice in 1943, 
the German Commander in Italy ordered the trans- 
fer of all gold held in the vaults of the Bank of 
Italy at Rome to Milan. This gold was later 
stored for safekeeping in tunnels at La Fortezza 
near Bolzano, Italy. As the Allied armies moved 
northward in Italy during 1944, however, the Ger- 
mans removed to Berlin the larger part of the gold 
stored at La Fortezza. When units of the United 
States Fifth Army operating under combined 
Anglo-American command occupied the Bolzano 
area in May 1945, the remaining Italian monetary 
gold stored at La Fortezza was uncovered. The 
gold was removed to the vaults of the Bank of 
Italy at Eome where it has since remained under 
the custody of the Allied military authorities in 
Italy. 

The text of the agreement signed at London is as 
follows : ^ 

The Governments of the United States of America and 
of the United Kingdom of Great Britain and Northern 
Ireland, on the one hand, and the Government of Italy, 
on the other, have agreed as follows : 

1. The gold which was captured at Fortezza by the Allied 
Forces in Italy from the German forces, which was still 
in the custody of officials of the Baulj of Italy at the time of 
capture, and which has since that time remained in the 
custody of the appropriate agency of the Allied military 
authorities, shall be turned over to tlie Italian Government 
now that the treaty of peace signed in Paris on February 
10, 1047 has entered into force. 

' Printed from telegrapliic text. 



2. Tlie Italian Government will immediately appoint 
representatives to discuss with the Allied military au- 
thorities the necessary details of transferring this gold 
from the custody of the Allied military authorities to the 
custody of the Italian Government. 

The present protocol shall be deemed to have come into 
force on the day of the coming into force of the treaty of 
peace. In faith whereof the undersigned plenipotentiaries 
have signed the present protocol. 

Done in London in triplicate this 10th day of October 
1947 in the English and Italian languages, both texts be- 
ing equally authentic. 

The agreement was signed on behalf of the Gov- 
ernment of the United States by Waldemar J. 
Gallman, American Charge d'Affaires; for the 
United Kingdom by Foreign Minister Ernest 
Bevin; and for Italy by Bartolomeo Migone, 
Italian Charge d'Affaires. 



Negotiations To Return Horses Seized 
in Germany to Owning Countries 

[Released to the press October 10] 

In the fall of 1945 and subsequently, the War 
Department shipped to the United States a number 
of horses which had been seized by American 
forces at various remount depots in Germany and 
which were considered to be captured German war 
material. Subsequent to the arrival of the horses 
in this country, the Governments of Poland, Yugo- 
slavia, and Hungary advised the Department of 
State that many of the horses which had been 
brought to this country under this program had 
originally been looted by the Nazis from the coun- 
tries concerned. These claims were transmitted 
by the Department of State to the War Depart- 
ment with a request that they be investigated and 
that, if they were found to be substantially cor- 
rect, the animals in question be returned to claim- 
ant governments. 

In the spring of 1947 the War Department ad- 
vised the Department of State that, upon con- 
sideration of all the factors which had been called 
to its attention, it was prepared to release to claim- 
ant governments such horses as could be identified 
by them as having been originally looted by the 
Germans. 



770 



Department of State Bulletin 



Since then negotiations have been proceeding 
with a view to such identification. As a result of 
these negotiations a first shipment of some 120 
horses is to leave this country about November 1 
for Trieste. Upon arrival these animals will be 
turned over to the Hungarian Government ; a small 
number of other Hungarian horses may be dis- 
posed of by that Government in the United States. 
Negotiations on the Polish and Yugoslav claims 
are continuing, and shipment of any horses found 
to belong to those countries will be made at a later 
date. 

The return of horses to the respective owning 
countries has the support of both the Department 
of the Army and the Department of State. This 
position is based on the determination by the De- 
partment of State that the horses in question are 
not properly considered as captured enemy mate- 
rial, as originally supposed, but rather as prop- 
erty looted from countries while they were under 
German occupation. 

Additional Oil Tankers To Relieve 
World Transport Shortage 

[Released to the press by the White House October 10] 

The Assistant to the President, John E. Steel- 
man, announced on October 10 that 96 oil tank- 
ers are to be added to the active world supply. 
This decision was reached at a White House meet- 
ing on October 9 of the interdepartmental commit- 
tee recently appointed by Mr. Steelman, with 
Granville Conway, Coordinator of Emergency Ex- 
port Programs, as its chairman. The addition of 
96 tankers to the world tanker fleet will go far to 
relieve the shortage of oil-transjiortation facili- 
ties in the United States and abroad, Mr. Steel- 
man said. 

At the meeting of the committee, composed of 
representatives of the Departments of State, Navy, 
Interior, Commerce, the Maritime Commission, 
and the United States Coast Guard the following 
steps were agreed upon for immediate action : 

1. The Navy Department will recondition and 
put into operation with all possible speed 26 mis- 
sion-type T-2 tankers now in the laid-up fleets. 
These tankers will be operated by private shipping 
companies, with merchant crews, for Navy ac- 
count. 



THE RECORD OF THE WEEK 

2. The Maritime Commission will recondition 
24 of the militarized T-2 type tankers now in the 
laid-up fleets. These two actions, Mr. Steelman 
said, will release to private industry about 50 of 
the merchant tankers that are presently carrying 
oil for the military establishment. 

3. The Maritime Commission will sell 46 of the 
T-2 type merchant tankers now in the laid-up 
fleets to foreign countries for reconditioning and 
operation. 

"It is anticipated that the addition of these 96 
tankers to the world fleet should make a major 
contribution toward bringing tanker tonnage into 
balance with oil supply", Mr. Steelman said. 

Medical Vaccines Shipped to Greece 

[Released to the press October 6] 

A shipment of medical vaccines was sent from 
New York by air on October 4 and was due to ar- 
rive in Greece on October 6. This is part of an 
emergency shipment of 90,000 bottles of diphthe- 
ria, 10,000 packages of smallpox, 30,000 bottles of 
typhus, and 720 bottles of cholera vaccine which 
was requested by the American Mission for Aid to 
Greece to assist in safeguarding the health of the 
estimated 150,000 refugees in northern Greece. 
These supplies will be distributed free by the 
American Mission. The balance of the request is 
to be shipped by water. 

Proclamation of Peace Treaties 

President Truman on September 15, 1947, pro- 
claimed the treaties of peace with Italy, Rumania, 
Bulgaria, and Hungary and further proclaimed 
that the state of war between the United States 
and those countries terminated on the same date. 
The treaties entered into force on September 15, 
1947, upon the deposit of instruments of ratifica- 
tion at Paris by the United States, the Union of 
Soviet Socialist Republics, the United Kingdom 
of Great Britain and Northern Ireland, and 
France in the case of the Italian treaty, and by 
deposit of instruments of ratification at Moscow 
by the United States, the Union of Soviet Socialist 
Republics, and the United Kingdom of Great 
Britain and Northern Ireland in the case of the 
treaties with Rumania, Bulgaria, and Hungary. 



Ocfober 19, 7947 



771 



American Aid to Greece— A Step Toward Lasting Peace 



BY LOY W. HENDERSON > 



It has been suggested that I talk to you briefly 
about our policies in respect of Greece and regard- 
ing recent trends and developmejits in that country. 
It is perhaps significant of the times in which we 
are living that I should be discussing with you 
matters relating to modern Greece. Not many 
years ago assembled graduates and students of our 
great educational institutions would have been 
much more likely to find themselves listening to 
learned discourses regarding various aspects of an- 
cient Greece to which we of the Western World 
owe so much. 

I am afraid that the days in which any American 
group can quietly devote itself to the consideration 
of the beauties and perfections of the great classical 
age without worries with regard to what is taking 
place in this modern world are gone and that such 
days will not return, at least during our lifetime. 
The events of recent years have forced upon the 
United States certain tremendous international re- 
sponsibilities, the shirking of which would be cer- 
tain to result in disaster to the whole world, includ- 
ing ourselves. Individual American citizens are 
becoming increasingly aware of this fact and more 
and more deeply concerned as to the manner in 
which these responsibilities should be and are being 
discharged. It is not surprising, therefore, that 
we should be talking tonight about the problems 
of modern Greece, for the survival of which we 
have certain grave international responsibilities. 

During recent years few events have caused the 
American people more acutely to realize the seri- 
ousness of their new international i-esponsibilities 
than the statement made by the President to the 
joint session of Congress on March 12 of this year. 
That statement,^ it will be recalled, began with 
these words : 

"The gravity of the situation which confronts 



' Address delivered before the Wellesley Club in Wash- 
ington, D.C., on Oct. 4, 1947, and released to the press on 
the same date. Mr. Henderson i.s Director of the Office 
of Near Eastern and African Affairs, Department of State. 

' BxJLLETiN of Mar. 23, 1947, p. 534. 



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." 

When the President tells Congress that he is 
speaking on a subject which involves the security 
of the United States, every mentally active and 
loyal American citizen becomes alert. He will 
immediately want to know what it is that involves 
our national security and what should be done 
about it. 

The President went on to state frankly what 
was menacing our security. ". . . totalitarian 
regimes," he said, "imposed on free peoples, by 
direct or indirect aggression, undermine the foun- 
dations of international peace and hence the se- 
curity of the United States." He pointed out 
that totalitarian regimes had already been forced 
upon the peoples of a number of countries against 
their will and indicated that peoples of various 
other countries must have aid if they were not also 
to lose their freedom. He emphasized the fact that 
reports which we had received from our repre- 
sentatives in Greece confirmed the statement of the 
Greek Government that Greece must have assist- 
ance if it was to survive as a free nation. He 
asked Congress to provide authority for assistance 
to Greece and Turkey. He added : 

"This is a serious course upon which we embark. 

"I would not recommend it except that the alter- 
native is much more serious. . . . 

"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 jieople for 
a better life has died. 

"AVe 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 en- 
danger the peace of the world — and we shall surely 
endanger the welfare of our own Nation." 

The Congress heeded the appeal of the Presi- 



772 



Department of State Bulletin 



dent. It granted the authority which he re- 
quested. Under this authority we are endeavor- 
ing at the present time to carry out concrete pro- 
grams of relief for both Greece and Turkey. 

Before I talk to you further about Greece, I 
would like to quote another passage from the 
President's address. 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. 

"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." 

I am referring to these remarks because in vari- 
ous quarters they have been misinterpreted to such 
an extent as to give rise to misunderstandings with 
regard to our policies. They have, for instance, 
been interpreted to mean that it is the policy of 
the United States to help free peoples every- 
where who are resisting attempted subjugation by 
armed minorities or by outside pressures in f)re- 
cisely the same manner as that in which we are 
helping the people of Greece and Turkey. A 
careful examination of this passage and of its con- 
text does not justify any such interpretation. It 
should be clear that the form and the amount of 
the aid to be given by the U. S. must depend upon 
the circumstances of each case. In making the 
necessary decisions a number of factors must, of 
course, be taken into consideration, such as the ex- 
tent to which the people concerned might be deter- 
mined to do their utmost to maintain their own 
independence and fully to utilize such aid as we 
might be able to give, the amount of strain which 
the giving of really effective aid might place upon 
our own resources as well as upon our ability to aid 
still other peoples, the economic situation of the 
people seeking aid, and so forth. Such additional 
aid as we might be able to give to the countries of 
Europe or of other continents is certain to vary 
both with regard to maimer and content. As 
you are aware, at the present time we are con- 
sidering certain proposals from a number of Euro- 
pean countries for financial assistance on a basis 
radically different from that of either our Greek 



THE RECORD Of THE WEEK 

or Turkish programs. Such assistance as we may 
give would be another effort on our part to carry 
out the policy enunciated by the President of assist- 
ing free peoples to work out their own destinies in 
their own way. 

There has been a certain amount of criticism of 
the manner in M-hich authority was sought from 
Congress to extend aid to Greece and Turkey. It 
has been said, for instance, that the Executive 
Branch of the Government employed a piecemeal 
approach; that it should have gone before Con- 
gress and before the American public with a broad 
plan which would have taken global needs into 
consideration and would have allotted to Greece 
and Turkey their proper place in some carefully 
elaborated world scheme. 

As a member of the Department of State who 
was in a position to witness the rapid march of 
events which led to the President's appeal to Con- 
gress, I should like to stress the fact that the Greek 
crisis broke with such suddenness and with such 
urgency that there was no time to wait for the 
working out of some regional or world scheme into 
which aid to Greece could be integrated. The 
British Ambassador on February 24 of this year 
handed to the Secretary of State the note indicat- 
ing that the British Government, in view of the 
economic situation in Great Britain, would not be 
able to extend aid to Greece after March 31. It was 
clear almost from the moment of the receipt of 
that note that there would be a complete eco- 
nomic and political collapse of Greece unless the 
Greek people could be given grounds for the hope 
that aid would be coming to them in the near 
future from the United States. This hope of aid, 
furthermore, if effective, should be given simulta- 
neously with, or prior to, the announcement of the 
British cessation of aid. Wliy, it may be asked, 
had it not been possible to foresee the coining Greek 
crisis? The answer is that it was already public 
knowledge that the economic situation of Greece 
was desperate, that this situation had its origin in 
the physical destruction and the damage to morale 
brought about by the war and had been sharpened 
by the intermittent warfare carried on since the 
war by armed groups under Commimist leadership 
receiving encouragement and support from coun- 
tries contiguous to Greece. For several months we 
had been trying in vain to find some way to help 
Greece within the framework of existing legisla- 



Ocfober 19, 1947 



773 



THE RECORD OF THE WEEK 

tion. It was becoming increasingly clear, however, 
that if the United States were to aid Greece, funds 
for that purpose must be appropriated by Congress. 
A direct approach to Congress on such a subject 
would, however, involve the making of decisions of 
great importance and would have wide repercus- 
sions. It would, for instance, not be possible to ex- 
plain to Congress the situation in Greece and the 
reasons why the United States should extend aid 
without emphasizing the fact that in spite of the 
sacrifices of the war years, in spite of the solemn 
pledges taken by the victor nations, in spite of the 
existence of the United Nations, there were still in 
the world powerful aggressive elements which were 
intent on depriving peoples of their freedom and 
of replacing democratic governments with totali- 
tarian regimes. An approach to Congress would 
mean the serving of formal notice upon the Ameri- 
can people that there were still great sacrifices to be 
made if we were again to have any justifiable sense 
of security. It was obvious that no approach in- 
volving such serious implications should be made 
to Congress until we were sure of the facts of the 
Greek situation and were quite certain that only 
action on the part of Congress could save Greece. 
In order that we should be entirely certain of the 
facts, it had been decided as far back as Janu- 
ary to send Mr. Paul Porter at the head of a group 
of experts to Greece to study in detail the economic 
needs and capabilities of that country. Mean- 
while, the possibilities of economic assistance to 
Greece by an international agency were explored, 
but it was found, as President Truman stated, that 
the United Nations and its related organizations 
were not in a position to extend help of the kind 
that was required. 

The situation was rendered all the more critical 
by the fact that not only was British economic 
assistance to cease on March 31 but in addition 
UNRRA was scheduled to terminate its valuable 
operations in Greece in the near future. It 
was evident that with the removal of these two 
props, the Greek economy would entirely collapse. 
At the same time, Mr. Porter's interim reports 
from Greece indicated that American assistance 
would have to be extensive and should be tendered 
as soon as possible if chaos were to be averted. It 
thus became unmistakably clear that if Greece were 
to retain its independence. Congress must be 
informed at once of the situation. 



As the result of the understanding reception on 
the part of Congress to the appeal of the President, 
we are now engaged in a great struggle to help 
Greece save itself. We knew in advance that this 
struggle would not be an easy one. It is not easy. 
We are trying to help save a country which ever 
since its liberation from the Ottoman Empire has 
been poverty-stricken, a country which has always 
been faced with the problem of limited natural 
resources. The material losses suffered by Greece 
during the wai' and postwar years have been heavy. 
Property has been destroyed which had been 
created over the years as the result of arduous 
labor and self-deprivation. Even in an atmos- 
phere of peace and security, it would be difficult for 
Greece without outside aid to rehabilitate itself. 
Unfortunately, such an atmosphere does not exist. 
Greece is still torn with internal strife stimulated 
and encouraged from without. No one in Greece 
is sure what the morrow will bring. This uncer- 
tainty with regard to the future has existed for 
moi-e than seven years. 

In spite of the poverty of the country, in spite 
of the material and moral strain under which 
Greece is laboring, the friends of Greece are not 
discouraged. Greece has a number of assets which 
give it hope for the future. Its chief asset lies 
in the stubborn individualism, in the fierce love 
of democracy, and in the firm patriotism of the 
great mass of the Greek people. The suffering and 
the moral and physical fatigue have not under- 
mined the national will to retain independence. 
We must not overlook the fact, however, that peo- 
ple to the north of Greece, who also were liberty- 
loving and patriotic, have lost their freedom and 
their independence as a result of foreign pressures 
and internal intrigue. 

I have come back from Greece with some rather 
definite impressions, which I would like to present 
in the hope that what I say may be helpful in 
correcting what seem to me to be a number of 
erroneous ideas with regard to Greece and the 
Greek people, which in some way or other have 
become rather prevalent in the United States. 

There is the idea, for instance, that liberalism 
in the real sense of the word is dying out in Greece ; 
that the Greek people are drifting either towards 
the extreme right or into the totalitarianism of 
what is frequently referred to as the extreme left. 
I am convinced that the great bulk of the popu- 



774 



Deparfment of Stale Bulletin 



lation of the country is still liberal at heart. The 
people of Greece still cherish the ideals of toler- 
ance and democracy. This spirit of liberalism 
is not the monopoly of any Greek political party or 
group. It is deeply imbedded among both royal- 
ists and republicans and in most of the political 
parties of the present Parliament, regardless of 
whether such parties are in the center or to the 
right or left of center. Tlicre is no doubt that the 
excesses committed both by the extreme right and 
by the Communists and their associates have given 
rise to bitter hatreds and animosities. Many per- 
sons who consider themselves, or members of their 
families, to have been the victims of wrongs and 
injustices are out for vengeance. Nevertheless, 
the overwhelming majority of the Greek people 
are deeply shocked at manifestations of intoler- 
ance. So long as they retain this spirit of real 
liberalism and the dislike of excesses, there is hope 
for the future of Greece. 

Another idea which seems to have gained con- 
siderable ground in this coimtry is that the popu- 
lation of Greece is gradually being divided into 
two economic groups — the very rich and the very 
poor; that the Greek people have been impover- 
ished by profiteering merchants and grafting poli- 
ticians; that if the rich would be compelled to 
disgorge, much of the poverty would be elimi- 
nated. The idea is also false. It is true that 
during the confusion of recent years profiteering 
and graft did flourish in limited circles and that a 
number of sizable fortunes were accumulated at 
the expense of the general public. There are today, 
however, relatively few rich people in Greece ; cer- 
tainly many less than there were before the war. 
If, in fact, the fortunes of those Greeks who could 
be classified as wealthy should be confiscated and 
distributed among the whole population, the im- 
provement of the economic situation of the average 
Greek would be hardly noticeable. In this con- 
nection I may add that the Greek Government at 
the present time, with the aid of the American 
Economic Mission to Greece, is taking stern 
measures to prevent graft, corruption, and 
profiteering. The Greek Government is also en- 
gaged in overhauling the tax and financial struc- 
ture of the country, with the purpose of bringing 
it more in keeping with modem concepts of eco- 
nomic and social justice. 

There is also the erroneous idea that great num- 



THE RECORD Of THE WEEK 

bers of the Greek workers are no longer interested 
in the maintenance of Greece as an independent 
country, and that they have secret or open sym- 
pathies for the guerrillas. The Greek Government 
has not outlawed the Communist Party nor banned 
its press. Exceeding their legal rights, however, 
the Connnunists have utilized the devious and sur- 
reptitious means of which they are masters in 
attempting to increase their influence over the 
masses of the Greek people. The average Greek 
worker, nevertheless, is still a loyal Greek citizen. 
He wants Greece to remain independent and demo- 
cratic. As could be expected in any country in 
such a difficult economic situation as Greece, labor 
difficulties develop from time to time. Strikes are 
frequently called. Some of these strikes are un- 
doubtedly Communist-inspired. Most of them, 
however, represent sincere efforts on the part of the 
participants to bring about improvements in their 
own living and working conditions. An incident 
which took place in August will help to shed some 
light upon the attitude of Greek labor during the 
present crisis in Greece. A committee of public- 
spirited Greeks was attempting to raise by sub- 
scription a fund to assist the Greek refugees who 
had been driven by the guerrillas from their 
homes in the north. Greek labor union leaders 
pointed out that Greek workers would like to con- 
tribute to the fmid, but that most of them had 
nothing to give except their labor. They sug- 
gested to the committee that the members of 
Greek labor unions might give to the fund the 
proceeds of a special day of work. The sugges- 
tion was accepted by the committee and on a single 
Sunday more than 250,000 Greek workers volun- 
tarily and enthusiastically labored all day and 
turned their earnings over to the fund. 

Although the efforts of the Communists to ob- 
tain control of the Greek trade union movement 
have not as yet met with success, loyal and pa- 
triotic Greek trade union leaders and members 
dare not for a single moment relax their vigilance. 
It is through the trade unions that the relatively 
small number of Communists have succeeded in 
several European countries in attaining positions 
from which they are able to exercise tremendous 
political and economic power. The Communists 
are confident that if they can once get their hands 
on some of the levers which control organized 
Greek labor they will be in a position to paralyze 



October 19, 7947 



775 



THE RECORD Of THE WEEK 

Greece for a sufficient length of time to enable the 
guerrillas and their allies to put an end once and 
for all to Greek independence. Despite the fact 
that the Communists are in a minority in the Greek 
trade unions, the Communist danger to that move- 
ment is real. Commimist trade union members are 
especially skilled in the fields of ideology, propa- 
ganda, tactics, organization, and leadership. With 
their superior training they frequently succeed in 
deceiving, outwitting, and eventually displacing 
loyal and patriotic trade union leaders who are in- 
terested primarily in promoting the welfare of the 
Greek worker and who are not accustomed to ap- 
proaching trade union problems with the purpose 
of advancing or opposing any particular political 
theory. 

Unfortunately, Greek trade union members are 
not alone in their failure at times quickly to dis- 
criminate between the genuine friends of the work- 
ers and agents of the totalitarians masquerading as 
promoters of democracy and defenders of labor. 
The Greek authorities themselves, in endeavoring 
to restore law and order and to combat the treason- 
able conspiracy against Greece in which the Com- 
munists and their allies are the ringleaders, some- 
times fail to distinguish between the members of 
that conspiracy and sincere patriotic friends of the 
Greek workers. As a result, on several occasions 
some of the most earnest opponents of Communist 
control of the Greek trade union movement have 
found themselves under suspicion and have even 
been placed temporarily under arrest. 

Mistakes of this kind are, of course, extremely 
helpful to the Communist cause, both within and 
without Greece. We cannot, however, be unduly 
critical of the lack of understanding, on the part 
of many of the Greek workers and of the Greek 
authorities, of the intricacies of the Greek trade 
union movement. We find in many parts of the 
world situations in which the Communists, with 
superior skill and training, are weaving a web 
around the trade unions while loyal and patriotic 
trade union leaders and members as well as respon- 
sible members of society outside the trade unions 
remain in a state of apathy. 

It is encouraging that the Greek authorities and 
responsible members of Greek trade unions are 
becoming more deeply conscious of what is going 
on in the trade union movements in Greece and 
that there is a good possibility that there will 



gradually emerge from the present state of confu- 
sion strong and healthy democratic Greek trade 
unions intent on advancing the welfare of the 
Greek workers in a framework of an economically 
healthy and independent Greek state. 

I would like also to take exception to another 
idea which seems to have gained considerable sup- 
port in the United States and elsewhere. This is 
the conception that all non-Communist Greek 
politicians are incompetent, petty, and entirely 
self-seeking. This idea has been so widely propa- 
gated that it will probably come as a shock 
to hear any words spoken in defense of Greek 
political leaders. The advocates of totalitarian- 
ism, be they Fascists or Communists, make a 
practice of endeavoring to undermine public con- 
fidence in the integrity and ability of political 
leaders in democratic countries. If we are to have 
governments based on the principles of democratic 
representation, we must have political leaders. If 
such governments are to function effectively, the 
general public must have confidence in the integ- 
rity and ability of these leaders. The proponents 
of totalitarianism, therefore, systematically be- 
little political leaders of democratic countries as 
part of a campaign to discredit any form of gov- 
ernment which is not of a totalitarian character. 
The campaign against Greek political leaders has 
met with considerable success both in Greece and 
abroad. There are, of course, in Greece as else- 
where, certain politicians not worthy of leadership 
in a democratic country. I have come back from 
Greece, however, with the firm conviction that 
among the political leaders of that country can be 
found the same spirit of lofty patriotism and broad 
statesmanship as exists among political leaders in 
the United States or in any other country the gov- 
erimient of which rests upon the freely expressed 
will of the population. It should be borne in mind 
that the admirable qualities of some of these lead- 
ers have often been obscured by the fact that the 
governments in which they have participated have 
been faced with one crisis after another and that 
dealing with these conditions has left them little 
scope for constructive statesmanship. The patriot- 
ism, spirit of cooperation, and statesmanship of 
Greek political leaders have recently manifested 
themselves in the decision of two of the great his- 
toric parties of Greece to put aside their traditional 
differences and to join in a common government for 



776 



Department of State Bulletin 



the purpose of saving the country from the gravest 
danger that has faced it for over a hundred years. 

There is also an unfounded idea regarding our 
policies toward Greece which I would like to try to 
remove: that is, that the American Government, 
in its desire to assist Greece, has gone into the 
business of overthrowing or setting up govern- 
ments in that country. It is true that we are con- 
vinced that American aid to Greece would be more 
effective under a Greek Government supported by 
the overwhelming majority of loyal Greek citi- 
zens. The American Govermnent, however, in 
keeping with its principles of respecting the sov- 
ereignty of other independent countries and with 
its desire to aid Greece in maintaining its inde- 
pendence, has not at any time, directly or indi- 
rectly, attempted to force any particular govern- 
ment on Greece. We have not, however, failed 
to make clear on appropriate occasions that no 
matter how much aid we may furnish to Greece, 
the independence and integrity of that country can 
be preserved only if the great body of loyal and 
patriotic Greek citizens cooperate in the defense 
and the rehabilitation of the country. We have 
also from time to time indicated our conviction 
that such cooperation could best be obtained luider 
a government which possesses the confidence of the 
vast majority of the Greek people. 

The Communists and their friends have at- 
tempted to foist another misconception on the 
world : that is, that the Greek guerrillas fighting in 
the hills are engaged in a struggle for freedom and 
democracy. Fortunately, this conception has not 
been widely accepted. It is generally recognized, 
in the United States at least, that the guerrillas are 
controlled by the Communist Party, whose sole aim 
is to establish in Greece the same kind of totalitar- 
ian government that has already been imposed on 
the peoples of some of the countries adjacent to 
Greece. 

It is well known that the rank and file of the 
Greek guerrillas are not Communists, that they do 
not share the aims of their leaders. Some few are 
common criminals and bandits who have become 
merely the tools of their Communist leaders. 
The majority, however, are political opponents of 
the Greek postwar governments who by now are 
almost thoroughly disillusioned and disgusted with 
their Communist leadership, or are villagers con- 
scripted by force for guerrilla activity. The hard 



THE RECORD OF THE WEEK 

core of Communists and their convinced followers 
certainly does not exceed 30 to 40 percent of the 
total. Wliy then do the rest remain in the hills? 

This question is all the more pertinent since on 
September 15 the Greek Government offered an 
amnesty promising pardon, security, and the op- 
portunity of gainful employment to those guer- 
rillas who do surrender. The answer is that the 
non-Communist guerrillas do not surrender be- 
cause they cannot. They are under the brutal disci- 
pline and the kind of supervision and observation 
which we have learned to associate with a police 
state. Our latest information is that the guer- 
rillas operate in bands of ten. In each band there 
are three or four Communists who are charged with 
preventing the others from escaping or from at- 
tempting to surrender to the Greek authorities. 
The Communist leaders of the Greek rebels have 
made it clear that they will shoot anyone whom 
they find trying to take advantage of the current 
amnesty and that vengeance will be wreaked on 
the families, of those who succeed in surrendering 
themselves. Neither the non-Communist guerril- 
las nor anyone else familiar with totalitarian tac- 
tics can have the slightest doubt that such threats 
will be carried out. 

You may well wonder how the relatively small 
number of guerrillas, twenty to thirty thousand 
at most, can continue to carry on. They, of course, 
benefit greatly from the mountainous terrain that 
constitutes much of northern Greece and the area 
in which the guerrillas are concentrated. Fur- 
thermore, they are able when sorely pressed to 
fall back on bases outside Greece for rest and re- 
organization. This aid and assistance furnished 
Greek rebels from abroad is a major factor in the 
survival of the Greek guerrillas as a fighting force. 
The Balkan investigating commission established 
by the United Nations early this year found, after 
thorough investigation on the spot, that "Yugo- 
slavia, and to a lesser extent Albania and Bulgaria, 
have supported guerrilla warfare in Greece." The 
Commission reported that Greece's northern neigh- 
boi's had i^rovided military training, hospitaliza- 
tion, refuge, and supplies to the Greek rebels. The 
U.N. Subsidiary Group, which continued these in- 
vestigations until most recently, states that assist- 
ance of this nature is still being given. Foreign 
aid to the guerrillas has been on such a scale that 
it is estimated by one of our most competent and 



October 19, 1947 



777 



THB RECORD Of THE WBBK 

best-informed observers that if the northern Greek 
frontiers could be sealed and tlie flow of assistance 
stopped, guerrilla activity in Greece might well 
be decreased by at least half within the space of 
one month. 

Foreign assistance has also taken the form of 
vociferous propaganda. The world Communist 
press has recently begun to publicize the announce- 
ments emanating from the guerrilla headquarters 
as communiques issued by the "supreme command 
of the Greek Democratic Forces" in an obvious 
effort to portray the current skirmishes as a full- 
scale civil war. These communiques, of course, 
glorify guerrilla activities as a struggle against 
Fascist reaction. More concretely, in several coun- 
tries, Communists and Communist-front groups 
are forming organizations to collect money and 
other kinds of assistance for the Greek rebels. 

It is interesting to note that, according to our 
information, the Greek rebels receive no food 
from abroad. This omission is significant and 
provides some insight into Communist aims and 
methods. Lacking food, the Greek guerrillas can- 
not remain inactive but must continue their raids 
on villages and on peasant supplies. In turn, these 
raids for food result in swelling the number of 
forced recruits, frightening the peasants from 
their villages, reducing the amount of land under 
cultivation, preventing the harvesting of crops, 
increasing the number of refugees, and, in short, 
promoting want and chaos, two of the principal 
weapons in the Communist arsenal. 

In their effort to seize control of the country, 
the Greek Communists have used every means 
which they can devise to foster disorder and priva- 
tion. Sabotage of railroad lines, mining of roads, 
destruction of key power facilities are among the 
instriunents employed to block reconstruction and 
recovery of Greece, to render ineffective American 
aid to Greece, and to paralyze the efforts of Greeks 
to help themselves. The forces of destruction have 
certain advantages over those of construction. It 
takes only a few minutes and several pounds of 
explosives, for instance, to destroy a bridge into 
the building of which have gone thousands of tons 
of material and many years of human labor. The 
Communist aims and methods are well known in 
Greece and recognized for what they are : condem- 
nation of a whole people to near-starvation, pov- 
erty, and hopelessness so that an armed minority 



may finally bend to its will a nation proud of its 
traditional devotion throughout the ages to the 
cause of freedom and democracy. This, I say, is 
known in Greece and is, I believe, beginning to 
be recognized by American public opinion as a 
whole. 

It may be that I have dwelt overly long on mis- 
concejitions wliich I fear may have gained certain 
credence here and elsewhere, but I consider it 
vital that all of us know the true facts in the 
current Greek situation and that we realize and 
understand the forces that are at work. One of 
the heartening developments of recent months has 
been the support afforded by American public 
oi:)inion to the Government in its efforts to achieve 
a peaceful and stable world society. I am sure 
that supi^ort of such efforts will continue so long 
as the American people are fully informed of the 
issues involved, and of the reasons for our course 
of action, and of the aims for which we strive. 

I should like, therefore, to conclude these re- 
marks with regard to Greece on an affirmative note. 
The President, the United States Goverimient, and, 
I feel sure, the American people are convinced that 
our policy in respect of Greece is a just and honor- 
able one. It is not a hostile gesture against any 
nation. It is not a step toward war, as the Com- 
mimists and their friends insist, to help a prostrate 
ally rise to her feet, unless indeed there are forces 
which would prefer war to the reconstruction of a 
democratic and independent nation in southeast- 
ern Europe. Rather, American aid to Greece is a 
step toward peace, the only kind of lasting peace 
possible in tlie present world, a peace based on free 
democratic nations able and willing to carry out 
the high purposes of the United Nations, the first 
of which is to maintain international peace and 
security. 



U.S. Denies Merger of Greek and 
Turkish General Staffs 

[Released to the press October 10 J 
The .ittention of tlie Department of State has 

been drawn to published rumors that the United 

States is sponsoring the merger of tlie Greek 

and Turkish General Staffs. 

The Department categorically denies that 

there is any basis whatsoever for such rumors. 



778 



Department of State Bulletin 



Meeting of Board of Foreign Sciiolarsliips 

SCHOLARSHIPS TO PAY IN PART FOR U.S. WAR SURPLUSES 



The Boiird of Foreign Scholarships, appointed 
last July by President Trnman under terms of the 
Fulbright law, met in Washington on October 8 
and 9 to put into operation the program by which 
foreign governments may pay in jjart for Ameri- 
can overseas war surpluses with scholarships in 
their own schools for American students. 

The Board is made up of — 

Gen. Omar N. Bradley, Administrator of Veterans Affairs 
Sarah Gibson Blanding, President of Vassar College 
Walter Johnson, professor of liistory, University of Chicago 
Francis Trow Spaulding, New York State Commissioner of 

Education 
Ernest Orlando Lawrence, professor of physics. University 

of California 
John Ward Studebaker, U.S. Commissioner of Education 
Charles S. Johnson, President of Fisk University 
Helen Constance Wliite, profes.sor of English, University 

of Wisconsin 
Laurence Duggan, Director of the Institute of Interna- 
tional Education 
Martin P. McGuire, Dean of the Graduate School of Arts 
and Sciences, Catholic University of America 

The Fulbright law, under which the Board will 
operate, provides for the most extensive interna- 
tional education program ever attempted by any 
nation. It authorizes Executive agreements with 



foreign governments for use of their currencies and 
credits acquired by the United States in payment 
for surplus properties overseas to finance studies 
and other educational activities of U.S. citizens in 
their own educational institutions. 

A limit of $20,000,000 is placed on the amount 
that any one country may use, with the rate of use 
being limited to not more than $1,000,000 a year. 
Thus the program becomes at least a 20-year enter- 
prise for any country wishing to avail itself of the 
maximum amount allowed by the law. 

Indications given thus far by 23 of the nations 
which have been acquiring U.S. overseas war sur- 
pluses are that some $140,000,000 will be used 
within the next 20 years or more for carrying out 
the program. American war veterans, given a 
preference by law in the award of the scholarships, 
are expected to participate heavily in the plan. 

While the foreign scholarships for American 
students are considered to be the most important 
part of the project, the law also permits the funds 
to be used for sending American specialists and 
teachers abroad to instruct in foreign schools and 
to participate in all types of enterprises conducted 
through foreign schools. 



GREETINGS BY ACTING SECRETARY LOVETT > 



Ladies and gentlemen: Out of small beginnings 
great movements have sprung to influence the 
course of history. This small group is meeting 
today to launch the most extensive and potentially 
the most momentous experiment in international 
education yet undertaken by any nation. 

The United States is committed to the creation 
of a strong United Nations as the best safeguard 
against a universally destructive third world war. 
Under the terms of the Fulbright act we are about 
to forge, out of the surplus war materials of 
World War II, an important instrument for peace. 
This instrument will seek to create unity through 
understanding. 

Of course this will take time, yet the program 
you will supervise also has immediate significance. 
It will serve as a symbol of America's will to 



peace. The peoples of the world are being told by 
our detractors today that we are a materialistic 
nation interested only in selfish gain. There are 
those who are trying to capitalize on hunger and 
despair to convince our friends that the United 
States seeks economic and political domination. 
The operations made possible by the Fulbright act 
are a timely and extremely important device to 
reassure the peoples of more than 20 cooperating 
nations that Ajnerica is really their friend. 

I wish you well in the launching of this experi- 
ment in international friendship. Your responsi- 
bility is heavy. I am confident of your success. 



' Made at the opening meeting of the Board at the 
Department of State on Oct. 8, 1947, and released to the 
press on the same date. 



October 79, 1947 



779 



THE DEPARTMENT 



The Security Program of the Department of State 



TEXT OF SECURITY PRINCIPLES AND HEARING PROCEDURE OF 
THE PERSONNEL SECURITY BOARD 



[Released to the press October 7] 

The Department of State made public on Octo- 
ber 7 the text of Security Principles of the De- 
partment of State and Hearing Procedure of the 
Personnel Security Board: 

I. Security Principles of the Department of State 

A. The Department of State, because of its re- 
sponsibility for the conduct of foreign affairs, is 
a vital target for persons engaged in espionage or 
subversion of the United States Government. Due 
to this fact and because of the great number of 
highly classified communications which pass 
through the Department, the security of which is 
essential to the maintenance of peaceful and 
friendly international relations, it is highly im- 
portant to the interests of the United States that 
no person should be employed in the Department 
who constitutes a security risk. 

B. The Secretary of State has been granted by 
Congress the right, in his absolute discretion, to 
terminate the employment of any officer or em- 
ployee of the Department of State or of the For- 
eign Service of the United States whenever he 
shall deem such termination necessary or advis- 
able in the interests of the United States. Ac- 
cordingly, in the interest of the United States, the 
Dei^artment of State will immediately terminate 
the employment of any officer or employee of the 
Department of State or of the Foreign Service 
who is deemed to constitute a security risk. 

C. As used herein an officer or employee con- 
stitutes a security risk when he falls into one or 
more of the following categories: When he is — 

1. A person who engages in, supports or advo- 
cates treason, subversion, or sedition, or who is a 
member of, affiliated with, or in sympathetic as- 
sociation with the Communist, Nazi, or Fascist 



Parties, or of any foreign or domestic party, or- 
ganization, movement, group, or combination of 
persons which seeks to alter the form of govern- 
ment of the United States by unconstitutional 
means or whose policy is to advocate or approve 
the commission of acts of force or violence to 
deny other persons their rights under the Con- 
stitution of the United States; or a person who 
consistently believes in or supports the ideologies 
and policies of such a party, organization, move- 
ment, group or combination of persons. 

2. A person who is engaged in espionage or who 
is acting directly or indirectly under the instruc- 
tions of any foreign government ; or who deliber- 
ately performs his duties, or otherwise acts to serve 
the interests of another government in preference 
to the interest of the United States. 

3. A person who has knowingly divulged clas- 
sified information without authority and with the 
knowledge or with reasonable grounds for the 
knowledge or belief that it will be transmitted to 
agencies of a foreign government, or wlio is so 
consistently irresponsible in the handling of clas- 
sified information as to compel tlie conclusion of 
extreme lack of care or judgment. 

4. A person who has habitual or close associa- 
tion with persons believed to be in categories 1 
or 2 above to an extent which would justify the 
conclusion that he might through such association 
voluntarily or involuntarily divulge classified in- 
formation without authority. 

5. A person who has such basic weakness of 
character or lack of judgment as reasonably to 
justify the fear that he might be led into any 
course of action specified above. 

D. In the determination of the question whether 
a person is a security risk the following factors 
among others will be taken into account, together 



780 



DeparfmenI of Sfate Bulletin 



with such mitigating circumstances as may exist. 

1. Participation in one or more of the parties 
or organizations referred to above, or in organiza- 
tions which are "fronts'' for, or are controlled by, 
such party or organization, either by membership 
therein, taking part in its executive direction or 
control, contribution of funds thereto, attendance 
at meetings, employment thereby, registration to 
vote as a member of such a party, or signature 
of petition to elect a member of such a party to 
public office or to accomplish any other purpose 
supported by such a party; or written evidences 
or oral expressions by speeches or otherwise, of 
political, economic or social views; 

2. Service in the governments or armed forces 
of enemy countries, or other voluntary activities 
in support of foreign governments; 

3. Violations of security regulations; 

4. Voluntary association with persons in cate- 
gories C(l) or C(2); 

5. Habitual drunkenness, sexual perversion, 
moral turpitude, financial irresponsibility or 
criminal record. 

E. In weighing the evidence on any charges 
that a person constitutes a security risk the fol- 
lowing considerations will obtain: 

1. A former course of conduct or holding of 
beliefs will be presumed to continue in the ab- 
sence of positive evidence indicating a change, 
both in course of action and conviction, by clear, 
overt and unequivocal acts. 

2. There will be no presumption of truth in 
favor of statements made by the witnesses in any 
hearing on security risk, but their statements will 
be weighed with all the other evidence before the 
Hearing Board, and the conclusion will be drawn 
by the Board. 

3. If a reasonable doubt exists as to whether 
the person falls into one of the categories listed 
in paragraph C(l), the Department will be given 
the benefit of the doubt, and the person will be 
deemed a security risk. 

II. Hearing Procedure of the Personnel 
Security Board 

A. Before any officer or employee of the De- 
partment of State or of the Foreign Service of 
the United States is summarily removed, under 
the provisions of the Department of State Appro- 



TH£ DEPARTMENT 

priation Act, 1948, as a security risk, he shall be 
granted a hearing before the Personnel Security 
Board. 

B. The officer or employee shall be served with 
a written notice of such hearing, at least 15 days 
before such hearing is to take place, and in any 
event in sufficient time to enable him to prepare 
for and attend such hearing. 

C. So far as possible, without jeopardizing na- 
tional security, such notice shall state the charges 
made against him, as fully and completely as, in 
the discretion of the Office of Controls (CON), 
security considerations permit. The officer or em- 
ployee shall be informed in the notice of his priv- 
ilege to reply to such charges in writing before 
the date set for said hearing, to appear before said 
Board personally at said hearing, to be accom- 
panied, if he so desires, by counsel or representa- 
tive of his own choosing, and to present evidence 
in his own behalf, through witness or by affidavit. 

D. Evidence on behalf of the Department of 
State shall be presented to said Board by CON in 
advance of said hearing, and shall not be presented 
at said hearing. For security reasons the officer 
or employee, his representative or counsel, cannot 
be permitted to hear or examine such evidence, 
which shall be classified as confidential or secret, 
as the case may be. 

E. At said hearing the Chairman of the Board 
shall preside ; the officer or employee shall be per- 
mitted to appear personally, and either by him- 
self, his representative or counsel of his own choos- 
ing, to present evidence in his own behalf, through 
witness or by affidavit. The officer or employee 
and his witnesses shall not be sworn except on their 
express request. Members of the Board may ask 
such questions of him and his witness as they may 
desire, but he and his witness shall not be required 
to answer. A stenotypist record will be made of 
the testimony. 

F. After the record of the hearing has been re- 
duced to writing, the Board will convene in execu- 
tive session to reach a decision. In its considera- 
tion the Board shall be governed by the Security 
Principles of the Department of State. After ex- 
amination of the evidence and following any de- 
sired discussion the vote shall be by ballot, and the 
decision will be by majority vote. The vote by 



Ocfober J 9, 1947 



781 



THE DEPARTMENT 

each member will be recorded, with any statement 
which he may desire to make as to his reasons 
therefor. 

G. The finding of the Board will be either that 
(1) the Board finds insufficient evidence on which 
to adjudge the officer or employee a security risk ; 
or that (2) the Board finds the officer or employee 
to constitute a security risk. In the event of a find- 
ing of insufficient evidence the Board may in its 



discretion i-ecommend further or continued inves- 
tigation of specific points on which they consider 
the record inadequate, or may recommend tl\at the 
case be closed. The findings of the Board shall be 
accompanied by a brief analysis of the evidence, 
and an indication of the reasons of the Board for 
its decision. The record will be classified as secret 
and transmitted to the Secretary of State, with a 
copy to the Office of Controls. 



STATEMENT BY HAMILTON ROBINSON > 



[Released to the press October 7] 

Before discussing the security principles and 
the hearing procedure of the Personnel Security 
Board in detail, I should like to make a few gen- 
eral comments on the State Department's security 
program. 

You are all aware of the special power con- 
ferred upon the Secretary of State by the so-called 
McCarran rider which was a part of the Appro- 
priations Act of 1947 and has been continued in 
the 1948 Act. This gives the Secretary the right 
to terminate the employment of any State Depart- 
ment employee in his entire discretion, whenever he 
feels that such action is necessary in the national 
interest. This legislation is a recognition of the 
unusually sensitive nature of the operations of the 
State Department. However, it is apparent, and I 
think this is a very important commentary, that 
an unlimited power of this sort carries with it 
an equally grave responsibility that the power 
be used fairly and justly. 

Thus the essential problem with which the people 
responsible for the security program are faced is 
to protect the security interests of the Depart- 
ment without violating the civil rights of any in- 
dividual. If they lean too far in one direction they 
are accused of being witch-hunters and disregard- 
ing civil liberties. If they lean too far in the other 
direction they are accused of harboring subversive 
elements. The essential policy question, therefore, 
always is how far it is proper to insist upon secu- 
rity measures without doing unreasonable violence 
to civil liberties. Obviously, neither extreme is 
practicable or reasonable. A system of terminat- 



' Mr. Robinson is the Director of tbe Office of Controls, 
Department of State. 



ing employment upon mere suspicion or insuffi- 
cient evidence might accomplish the security ob- 
jective alone, but it would certainly violate all 
principles of civil rights. Similarly, the insist- 
ence upon evidence sufficient to stand up in a court 
of law with all the safeguards of our judicial pi"Oc- 
ess would protect civil rights, but all security con- 
siderations would necessarily have to be aban- 
doned. This is the dilemma which can only be 
solved by the exercise of sound objective judgment 
by reasonable men. 

In the case of the State Department, because 
of its sensitive nature, the balance must weigh 
somewhat more heavily in favor of security con- 
siderations than in the case of some other govern- 
mental agencies — not all of them, because War, 
Navy, and Atomic Energy Commission have at 
least as sensitive characteristics or very similar 
characteristics to those of the State Department. 
For this reason the State Department has con- 
sistently made a sharp distinction between loyalty 
and security, and I should like to emphasize that. 
The Department supports the President's loyalty 
program to the utmost, but it recognizes that an 
applicant or employee may be a security risk in the 
State Department and thus an undesirable State 
Department employee even though he may be 
entirely loyal and might not constitute a security 
risk in some other Government agency. For this 
reason State must adopt security principles which 
are more stringent than those of most Government 
agencies and may find it necessary to exercise its 
power under the McCarran rider on the basis of 
facts which are insufficient to warrant a claim or a 
charge of disloyalty. 

At this point I want to emphasize that sta- 
tistics indicate that the vast majority of all Gov- 



782 



Department of State Bulletin 



ernment emploj'ees are both loyal and secure. It 
is the extremelj' rare case in which any derogatory 
information is developed as a result of investiga- 
tion. 

Based upon these fundamental concepts, it is 
the policy of the State Department to make a full 
investigation of every applicant for employment 
in the departmental and foreign services, as well 
as applicants sponsored by the Department for 
international and otlier organizations, and also to 
investigate fully all incumbent employees of both 
services where necessary. Based upon these in- 
vestigations, a careful, sound, and reasoned evalu- 
ation is made of the facts developed, to determine 
whether the evidence justifies the conclusion that a 
security risk exists. If so, the Department will 
take steps to assure that the individual involved 
does not become or continue to be a State Depart- 
ment employee. 

In carrying out the two phases of this program, 
namely, investigations and evaluations, the utmost 
care must be taken to nail down facts through 
painstaking search and cross-checking and to ap- 
ply to these facts experienced and reasonable judg- 
ment. Only in this way can the two horns of the 
dilemma be avoided and the interests of the Gov- 
ermnent and of the individual both be served. 

Turning now to the security principles and the 
hearing procedure of the Personnel Security 
Board — the announcement which has been given 
to you — I might explain their workings in general. 

The security-principles paper sets up five cate- 
gories of individuals who are considered security 



THE DEPARTMENT 

risks. This is in paragraph C. Paragraph Z> 
outlines the types of information and evidence 
(keyed into the categories) which the Board will 
consider in determining whether an individual 
falls within one of the categories. Paragraph E 
sets forth three "basic principles which will guide 
the Board in its determinations. Of these, per- 
haps the most important is the third, which ex- 
presses the fundamental philosophy that the Gov- 
ernment will be given the benefit of any reason- 
able doubt which may exist. 

These principles have been approved by the Sec- 
retary of State and will govern the action of the 
Personnel Security Board so long as they remain 
in effect. 

The procedures of the Board have been estab- 
lished by the Board itself, and I will, therefore, 
ask General Snow, who is the Chairman of the 
Board, to make any comments on them which he 
feels appropriate. Thereafter I will be glad to 
attempt to answer questions regarding the security 
principles or the security program in general. 

Appointment of Officers 

John D. Hickersou as Director for European Affairs, 
OflSce of European Affairs, effective August 24, 1947. 

W. Walton Butterworth as Director for Far Eastern 
Affairs, Office of Far Eastern Affairs, effective September 
15, 1947. 

Josepli C. Sattertliwaite as Deputy Director, Office of 
Near Eastern and African Affairs, effective September 12, 
1947. 

Reed Harris as Chief, Division of Communications and 
Records, effective August 10, 1947. 



October 79, 1947 



783 




.^.i-r'^.rM-yt-ir^-'. 




761 



763 

763 
764 

766 



The United Nations and ^»e« 

Specialized Agencies 

Position of U.S. Delegation on Palestine Ques- 
tion. Statement by U.S. Deputy Rep- 
resentative to the United Nations . . . 
Proposed Economic Commission for Latin 
America: 
Resolution Adopted by Economic and 
Social Council on 11 August 1947 . . 
Expressions of Support by Certain Latin 

American Governments 

U.N. Documents: A Selected Bibliography . 
U.S. Delegation to ICAO Meeting on Multi- 
lateral Air Transport Agreement . . . 

General Policy 

New Communist Manifesto Must Not De- 
flect Program for Aid to Europe. State- 
ment by Acting Secretary Lovett . . . 

U.S. To Return Italian Naval Vessels Allotted 
Under Terms of Peace Treaty. Message 
From the Secretary of State to the Italian 
Foreign Minister 

Negotiations To Return Horses Seized in 
Germany to Owning Countries .... 

Medical Vaccines Shipped to Greece .... 

American Aid to Greece — A Step Toward 
Lasting Peace. By Loy W. Henderson . 

U.S. Denies Merger of Greek and Turkish 
General Staffs 



769 



769 

770 
771 

772 

778 



international information and Fas^ 

Cultural Affairs 

The Program of the Interdepartmental Com- 
mittee on Scientific and Cultural Co- 
operation: Biblioteca Benjamin Franklin. 

Article by Andy G. WOkison 755 

Meeting of Board of Foreign Scholarships: 
Scholarships To Pay in Part for U.S. War 

Surpluses 779 

Greetings by Acting Secretary Lovett . . 779 

Economic Affairs 

Office of U.S. Delegation to Economic Com- 
mission for Europe 766 

Articles on Geneva Charter for an ITO . . 768 
Additional Oil Tankers To Relieve World 

Transport Shortage 771 

Occupation Matters 

Review of Agreement on Economic Fusion of 

U.S. and U.K. Zones in Germany . . . 768 

Treaty Information 

End of Proceedings of the Austrian Treaty 

Commission 767 

Italian Gold Uncovered by Allies Returned 

to Italian Government 770 

Proclamation of Peace Treaties 771 

The Department 

The Security Program of the Department of 
State: 
Text of Security Principles and Hearing 
Procedure of the Personnel Security 

Board 780 

Statement by Hamilton Robinson .... 782 
Appointment of Officers 783 



iomv(/Mwt<)/H 



Andy O. Wilkison, author of the article on the Benjamin Franklin 
Library in Mexico City, is director of library service at that library. 



IT. S. GOVERNMENT PRINTING OFFICE: 1947 



^Jfie/ z/le^a^twieni/ /o^ c/tat& 



^ 




ORIGAN LABOR'S PART IN DETERMINING 

FOREIGN POLICY • Address by the Secretary of State 826 

THE ECONOMIC AND SOCIAL COUNCIL— FIFTH 

SESSION • Article by Kathleen Bell 812 

THE PROGRAM OF THE INTERDEPARTMENTAL 
COMiNHTTEE ON SCIENTIFIC AND CULTURAL 
COOPERATION: Cultural Centers of the Other 
American Republics • Article by Edmund R. Murphy . 804 



EIGHTIETH CONGRESS, FIRST SESSION, AND THE 

UNITED NATIONS : Part I • Article by Sheldon Kaplan 

THE GENEVA CHARTER FOR AN INTERNATIONAL 
TRADE ORGANIZATION: 

Cartel and Commodity Policy 

Constitution of the ITO 



795 



787 
790 



For complete contents see back cover 



Vd. XVII, No. 434 
October 26, 1947 





Me Qje/ia^^me^ ^/ y^ate \d\\\\Q\\\\ 



Vol. XVII, No. 434 • Publication 2951 
Oaoher 26, 1947 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26, D.C. 

8 DESCRIPTION : 

62 Issues, $5; single copy, 16 centa 

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 
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- 
national affairs and the functioris 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, as 
wellas legislative material in the field 
of international relations, are listed 
currently. 



U. S. SUPERINTENDENT OF DOCUMENTS 

NOV 6 1947 

THE GENEVA CHARTER FOR AN INTERNATIONAL 
TRADE ORGANIZATION 



V. Cartel and Commodity Policy 



The chapters of the Geneva draft of the ITO 
charter that deal with restrictive business prac- 
tices and with commodity agreements retain the 
same approaches toward cartel and commodity 
policies that were set forth in the original Ameri- 
can proposals and in the Preparatory Committee's 
London draf t.^ But they have been so reorganized 
and rewritten as to clarify their provisions, and 
they have been so amended in detail as to meet a 
number of criticisms that had been made in the 
United States. 

Cartel Policy 

Chapter V of the charter represents the first in- 
ternational approach to the problems created by 
the restrictive business practices of commercial 
enterprises. The interwar period had demon- 
strated that such agreements could prevent or re- 
press the flow of trade as effectively as any govern- 
ment-imposed tariff, quota, or embargo. Accord- 
ingly, it was recognized from the outset of the 
project that any international charter for the re- 
duction of trade barriers and the promotion of em- 
ployment and economic development would be in- 
complete if it failed to deal with the barriers 
created by certain kinds of business practices. 

The chapter is based upon an agreed general 
policy concerning the prevention of restrictive 
business practices. Members agree, in effect, to 
take appropriate measures to prevent, within their 
respective jurisdictions, restrictive business prac- 
tices affecting international trade, whenever such 
practices are harmful to production or trade and 
interfere with any of the Organization's basic 
objectives. In recognition of the fact that state- 
controlled enterprises may be as prone to engage 
in such practices as private ones, the obligation is 
applied with equal force to enterprises of both 



kinds. The obligation also is framed in such a 
manner as to make it clear that the restrictive busi- 
ness practices of a single enterprise, as distin- 
guished from practices brought about by agree- 
ments among enterprises, are comprehended by the 
provision ; in short, the practices of the combine as 
well as those of the cartel are treated in the 
chapter. 

To lend added substance to the general under- 
taking of the members, the Organization is em- 
powered to investigate allegedly harmful business 
practices which are complained of by any of the 
members. A series of six practices, in fact, is 
specifically designated as "subject to investiga- 
tion" by the Organization. These practices were 
selected on the basis of the extensive information 
regarding the activities of cartels and combines 
which has accumulated in recent years, particu- 
larly in the United States. 

Two of these enumerated practices deserve com- 
ment. The practice of "preventing by agreement 
the development or application of technology or 
invention whether patented or unpatented" relates 
to a device familiar in cartel history — a conspir- 
acy among potential competitors to defer the ap- 
plication of new technological developments in 



Editor's Note : The two articles appearing in this issue 
are the last in a series describing the charter for an inter- 
national trade organization formulated at Geneva by the 
Preparatory Committee for the United Nations Confer- 
ence on Trade and Employment, which will open at Habana 
on Nov. 21 of this year. Other articles in the series 
have discussed General Commercial Provisions of the 
charter (Bulletin of Sept. 28, 1947, p. 605) ; Quantitative 
Restrictions and Employment and Economic Development 
(Bulletin of Oct. 5, 1947, p. 663) ; and Subsidies and State 
Trading (Bulletin of Oct. 12, 1947, p. 711). The articles 
will appear as Department of State publication 2950. 

" BtnxETiN, Feb. 9, 1947, p. 239, and Feb. 16, 1947, p. 266. 



October 26, 1947 



787 



their industi-y. In the chapter the practice is so 
described as to exclude the situation in which the 
possessor of certain technology simply defers its 
application without making any agreement with 
other parties on the matter. Another practice 
subject to investigation is the abuse of patents, 
trademarks, or copyrights; in the past, cartels 
have commonly abused such rights, using them as 
a means of developing harmful restraints on inter- 
national trade. The inclusion of this provision 
in earlier drafts had raised the question of how 
the line could be drawn between permissible use 
and objectionable abuse, in view of the hetero- 
geneous character of the various domestic patent, 
trademark, and copyright laws. This has been 
resolved in the Geneva draft by providing that 
the proper scope of the patent, trademark, or copy- 
right grant is to be determined in any case by the 
domestic law of the country making the grant. 

To insure the proper use of the Organization's 
powers of investigation, detailed procedures which 
are to be followed in the exercise of these powers 
are set out in the chapter. Briefly, an affected 
member country, acting on its own behalf or on 
behalf of a national, may complain in writing re- 
garding certain business practices. If a prelimi- 
nary screening indicates that the complaint may 
have substance, the Organization will conduct an 
investigation based on information obtained from 
members and from hearings at which the repre- 
sentatives of member governments and private 
parties, if the latter are involved, will be afforded 
reasonable opportunity to be heard. The Organi- 
zation will then decide whether the practices in 
question are harmful, and, if so, it will notify all 
members and call upon them to take remedial 
action. 

An alternative procedure to that of the com- 
plaint and investigation also is set out in the chap- 
ter. Any member affected by restrictive business 
practices carried on by commercial enterprises sit- 
uated in other countries may request the Organiza- 
tion to arrange for consultation with such coun- 
tries in order that the situation may be remedied 
by direct action. This procedure, which must 
initially be used if a complaint is directed against 
the independent practices of a state-controlled en- 
terprise, may also be used in complaints against 
private enterprises. 

The statement of general policy with which the 



chapter opens is bolstered not only by the com- 
plaint and investigation provisions but also by a 
series of specific obligations which the members 
undertake. These commitments include the pro- 
vision that members shall take the necessary legis- 
lative and administrative measures to can-y out 
the general purpose of the chapter. In carrying 
out this obligation, however, it is expressly stated 
that each member is expected to act in accordance 
with its particular system of law and economic 
organization. Moreover, while there is no obliga- 
tion to accept and carry out all decisions of the 
International Trade Organization, each member 
agrees to take the fullest account of such decisions 
in determining the action considered appropriate 
in the light of its general obligations under the 
chapter. If a member takes no action in a par- 
ticular case, contrary to the recommendation of 
the Organization, it is committed to inform the 
Organization of the reasons for its inaction and to 
discuss the matter with the Organization, if re- 
quested to do so. 

One final feature of the business-practice pro- 
visions of the charter should be noted. New ma- 
terial was added at Geneva by the adoption of 
article 50, on procedure with respect to services. 
At the First Meeting of the Preparatory Commit- 
tee in London, the question arose as to the inclusion 
within the scope of the chapter of international 
services, such as telecommunications, shipping, 
aviation, and insurance. It was the view of some 
delegations that the industries rendering these 
services were affected by special considerations and 
would in most instances be subject to the jurisdic- 
tion of new specialized agencies. The problem was 
reconsidered at Geneva, and agreement was 
I'eached upon the special procedures set forth in 
article 50. Briefly, the article provides that if 
any member considers that restrictive business 
jjractices exist in relation to an international serv- 
ice and that such practices have such harmful ef- 
fects as to prejudice seriously the interests of that 
member, it may submit a case to any other mem- 
bers whose private and public enterprises are en- 
gaged in the practices in question. The members 
concerned will then attempt to reach a settlement 
through consultative procedures. If no settlement 
is effected by this means, the case may be presented 
to the International Trade Organization, which 
will then transfer it to the appropriate specialized 



788 



Department of Slate Bulletin 



agency, if one exists, together with such observa- 
tions as the Organization may believe warranted. 
If no such specialized agency exists, and if mem- 
bers request, the Organization may make recom- 
mendations as to remedial measures. There is also 
a provision for cooperation between the Organiza- 
tion and other intergovermnental organizations 
with respect to restrictive business practices in the 
services field, and the Organization is authorized 
to make special studies, as requested, on matters 
relating to services which fall within the scope of 
the charter. 

Viewed as a whole, the chapter represents a 
great stride toward the development of interna- 
tional standards regarding elimination and pre- 
vention of trade barriers created by commercial 
enterprises, ^^liereas, in the past, few countries 
other than the United States and Canada placed 
limitations upon the right of their businessmen 
to engage in restrictive business practices, the 
adoption of this chapter will establish standards 
for the conduct of the enterprises of the trading 
nations of the world and will create the oppor- 
tunity for all countries to move toward a common 
policy. 

Commodity Agreements 

It is recognized in chapter VI of the charter 
that certain primary commodities, such as food- 
stuffs, forest and fishery products, and minerals, 
are produced and distributed in international 
trade under such conditions that the corrective 
forces of the market do not readily bring about 
adjustment to changing conditions. In the case 
of certain agricultural products, demand and sup- 
ply are relatively inelastic; surpluses tend to pile 
up; price depression persists; but producers can- 
not move rapidly enough to adjust themselves to 
the new situation. As a result large numbers of 
them all over the world suffer prolonged hardship. 
In the case of some minerals, specialized producing 
communities, which afford no opportimity for 
alternative employment, experience wide-spread 
unemployment even though the general level of 
world economic activity is not depressed. 

Under these circumstances governments habitu- 
ally have intervened in the processes of production 
and distribution. In some cases they have acted 
unilaterally, curtailing imports or subsidizing ex- 
ports without regard for the consequences that 
these policies might have abroad. In other cases 



they have entered into agreements which sought 
to promote the welfare of producers by regulating 
output, trade, or prices with little regard for the 
consequences of such action for consumers, either 
abroad or at home. 

It is the purpose of the charter to assure, 
first, that the action that any one government may 
take in these circumstances shall not adversely 
affect the interests of others and, secondly, that 
action which governments may agree to take 
jointly, in the interests of producers, shall not 
adversely affect the interests of consumers. Chap- 
ter VI of the charter is directed toward the second 
of these purposes. It permits governments to 
enter into agreements affecting international trade 
in primary commodities. They possess this power, 
of course, at the 2>resent time. The chapter does 
not deprive them of it. Wliat it does is to limit 
the circumstances under which the power may be 
used and the manner in which it may be exercised. 
Commodity agreements are exempted from the 
general rules of trade policy laid down in the char- 
ter if they satisfy the conditions and contain the 
safeguards prescribed in this chapter. They are 
forbidden if they do not. 

The chapter sets up a procedure under which 
a member who is substantially interested in a pri- 
mary commodity and who experiences or foresees 
particular difficulties with respect to the interna- 
tional trade in that commodity may request the 
Organization to set up a study group. Such a 
group, composed of interested members — and, 
where appropriate, nonmembers — of the Organi- 
zation, will conduct an investigation of conditions 
affecting the trade in the commodity and report 
its findings and recommendations to the Organi- 
zation and its members. If in its opinion the sit- 
uation requires such action, it may recommend the 
calling ,of a commodity conference for the purpose 
of preparing an intergovermnental commodity 
agreement. Members substantially interested in 
the commodity either as producers or consumers 
must be invited to participate in such a conference, 
and nonmembers may also be invited to do so. 
Members, in general, will not enter into any com- 
modity agreement unless it is concluded in accord- 
ance with this procedure. 

The agreements that may emerge from a com- 
modity conference are divided into two general 
types. One type, called commodity-control agree- 
ments, includes all agreements that involve restric- 



Ocfober 26, 1947 



789 



tions on production, exports, pr imports or the 
regulation of prices. The other type includes all 
agreements that involve no such restraints. Both 
types of agreements must satisfy certain general 
requirements. Commodity-control agreements, in 
addition, must meet a nmnber of conditions that 
are carefully prescribed. 

All agreements must be open on equal terms to 
any member of the Organization. Countries sub- 
stantially interested in the commodity as import- 
ers or consumers must be afforded adequate par- 
ticipation. Nonparticipating members of the 
Organization must be accorded equitable treat- 
ment. And all agreements must be accompanied, 
at every stage, by full publicity. 

Commodity-control agreements may not be en- 
tered into unless one of two conditions exists. 
First, the commodity must be produced, in great 
part, by a large number of small producers; the 
demand for it and the supply of it must be rela- 
tively inelastic; a burdensome surplus must exist 
or be in prospect; and, as a result, there must be 
a threat of wide-spread hardship. These condi- 
tions might be satisfied in the case of several agri- 
cultural commodities. Secondly, demand for the 
commodity must be relatively inelastic; alterna- 
tive occupational opportunities must be lacking in 
the areas where it is produced; and wide-spread 
unemployment must exist or be in prospect, with 
resulting hardship for large numbers of workers. 
These conditions might be satisfied in the case of 
certain minerals. 

Commodity-control agreements concluded under 
such circumstances must be limited in duration 
and subject to periodic review. They must afford 
consuming countries and producing countries an 



equal voice. They must assure the availability of 
adequate supplies. They must provide increasing 
opportunities for satisfying world requirements 
from economic sources. And each country par- 
ticipating in such an agreement must adopt a pro- 
gram of economic adjustment designed to make a 
continuation of the agreement unnecessary. 

Each commodity-control agreement is to be ad- 
ministered by a governing body called a Com- 
modity Council. Each country participating in 
the agreement is to have a voting member on the 
Council. The International Trade Organization 
is to appoint a nonvoting member and may invite 
other intergovernmental organizations, such as the 
Food and Agriculture Organization, to do so. 
Disputes regarding the interpretation of an agree- 
ment which cannot be resolved within the Council 
must be passed on to the ITO for adjudication. 
Each Council must report periodically to the Or- 
ganization, and the Organization must prepare 
and publish a periodical review of the operation 
of all of the agreements under its supervision. 
Members must revise or terminate existing or 
future agreements if the Organization finds that 
they do not conform to the provisions of the 
chapter. 

The chapter neither prohibits commodity agree- 
ments nor promotes them. It attempts to prevent 
abuses of the sorts that have arisen in the past. 
It seeks to establish principles that are economi- 
cally defensible and morally sound. It is designed 
to safeguard the interests of consumers, to force 
adjustment to changing conditions, and to facili- 
tate the early restoration of free markets. It 
marks the fii-st approach toward agreement on 
international policy in this field. 



VI. The Constitution of the ITO 



Tlie final three chapters of the charter of the 
International Trade Organization, as redrafted 
at Geneva, deal with the structure and the opera- 
tion of the ITO. Chapter VII, "The Interna- 
tional Trade Organization", establishes the vari- 
ous organs of the Organization and sets forth 
their respective functions. Chapter VIII, "Set- 
tlement of Differences — Interpretation", contains 
790 



the important provisions of the charter dealing 
with the handling of disputes. Chapter IX, 
"General Provisions", covers such questions as ex- 
ceptions to the charter, amendments, and rela- 
tions with nonmember states. 

The present article, the last in a series of six, 
provides, first, a general review of the functions 
of the Organization and, second, a discussion of 
the principal articles of these three chapters. 

Department of State Bulletin 



General Review of Functions 

First, the ITO is an international center for in- 
formation on matters affecting trade. It will un- 
dertake to improve trade statistics. It will collect, 
analyze, and publish data on exports, imports, bal- 
ances of payments, prices, subsidies, and public 
revenues from trade; on customs regulations and 
their administration; on economic development, 
commodity problems, and national commercial 
policies. It will prepare and publish a periodic 
review of the operation of commodity agreements. 
It will make studies of conventions, laws, and 
procedures relating to restrictive business prac- 
tices, and of treaties and other agreements affect- 
ing trade. As a source of information on all these 
matters, it will be of inestimable value. 

Secondly, the ITO is a center for international 
consultation. One nation may complain, for in- 
stance, that another is abusing the escape clause 
contained in its trade agreements, that it is un- 
fairly invading foreign markets through the use 
of subsidies, that it is using an improper base 
period in the administration of a permitted ex- 
port subsidy or import quota scheme, that it is 
imposing unreasonable impediments to the ex- 
portation of capital or technology, or that it is 
imposing unreasonable treatment injurious to in- 
ternational investment or enterprise. In any such 
case, the ITO will invite the nations concerned to 
enter into consultation and will lend its good offices 
to effect a settlement of their differences. It may 
sponsor similar consultation with respect to re- 
strictive business practices. And, at any time when 
trade is so unbalanced that the permitted em- 
ployment of quantitative controls over imports is 
wide-spread and persistent, the ITO will call a 
general conference to consider whether other meas- 
ures might not be taken to remove the underlying 
causes of the disequilibrium. Any solution ef- 
fected through such consultations will not be one 
which is dictated by the Organization but one to 
which its members may voluntarily agree. 

Thirdly, the ITO will be a source of advice and 
assistance to member governments. It will de- 
velop and recommend common standards for the 
grading of commodities, for commercial terms, 
for documentation, for tariff valuation, and for 
the simplification of procedures that act as obsta- 
cles to trade. It may recommend the conclusion 
of new agreements or the modification or termi- 

Ocfofaer 26, 7947 



nation of old agreements on commercial policy, 
economic development, commodities, and restric- 
tive business practices. It may draft modern 
international conventions and standard provisions 
for commercial treaties dealing with such mat- 
ters as commercial arbitration, the avoidance of 
double taxation, the treatment of commercial trav- 
elers, the protection of foreign enterprises, skills, 
capital, arts, and technology, and the conditions 
of doing business abroad. Upon request, the Or- 
ganization may also provide technical assistance 
on the administration of trade controls and advice 
with respect to programs of economic develop- 
ment. The ITO itself will not be in possession 
of industrial technology. Such knowledge is 
usually covered by patents that are held by private 
firms. These firms may sell their know-how to 
enterprises in undeveloped countries upon such 
terms as the parties to the contract may agree. 
But there is nonetheless a function for the Organi- 
zation to perform in helping organize missions 
of experts to advise such coimtries on the larger 
aspects of their developmental plans. 

Fourthly, the ITO will conduct investigations, 
hold hearings, and make recommendations to 
member states concerning the restrictive practices 
of international combines and cartels. In this 
case the provisions of the charter apply to business 
practices in international trade which "restrain 
competition, limit access to markets, or foster 
monopolistic control", whether they are engaged 
in by a single private or public enterprise or by a 
group which includes within its membership pri- 
vate enterprises, or public enterprises, or both. 
Upon complaint by a member, the ITO may make 
an investigation, hold hearings, and if it finds that 
the practice in question has such an effect, shall 
"request each Member concerned to take every 
possible remedial action, and may also recommend 
to the Members concerned remedial measures to 
be carried out in accordance with their respective 
laws and procedures." 

The fifth— and probably the most important — 
function of the ITO will be that of determining 
whether exceptions are to be granted, in individ- 
ual cases, to the agreed rules that limit the free- 
dom of nations to employ certain restrictive meas- 
ures in controlling their trade. The pattern 
adopted throughout the charter is the enunciation 
of a general rule, the enumeration of necessary 

791 



exceptions to the general rule, narrowly limited 
and precisely defined, the establishment of regu- 
lations and procedures whereby members of the 
Organization may avail themselves of these ex- 
ceptions, and the provision of penalties that may 
be imposed, by the action of other members, in 
cases of violation. The ITO, it should be under- 
stood, will have no power itself to lay down the 
general rules ; these must have been agreed upon 
by member states. Nor may exceptions be per- 
mitted by officials of the Organization ; they must 
be voted by governments belonging to the con- 
ference, and they must be kept within such limits 
as the charter may allow. 

The most important case in point here is the 
general rule which condemns the use of quanti- 
tative restrictions whereby one country imposes 
absolute limits on its imports and assigns to other 
countries definite quotas in its trade. It is neces- 
sary, under present economic conditions and es- 
tablished national policies, to permit certain spe- 
cific exceptions to this general rule. The most 
important of these exceptions relate to countries 
that are in balance-of-payment difficulties and to 
countries that are in the process of economic de- 
velopment. In the first case quantitative restric- 
tions may be permitted to forestall the imminent 
threat of, or stop, a serious decline in the level 
of monetary reserves, or, in the case of a member 
with very low monetary reserves, to achieve a rea- 
sonable rate of increase in its reserves. In the 
second case, quantitative restrictions may be per- 
mitted to promote the establishment of new in- 
dustries. In both cases, however, the Organization 
is empowered to establish the criteria and the pro- 
cedures under which exceptions may be granted 
and to limit the extent, the degree, and the dura- 
tion of the restrictions which may be employed. 
The sixth function of the ITO is that of de- 
termining whether nations have lived up to their 
obligations under the charter and of taking ap- 
propriate measures to obtain compliance. One 
member may complain, for instance, that another 
has refused to enter into negotiations directed 
toward the reduction of tariffs and the elimination 
of preferences, that it is using quantitative restric- 
tions in violation of the provisions of the charter, 
or that it has taken some other action that impairs 
or violates the obligations that it has assumed. 
If it finds such a complaint to be justified, the ITO 



792 



may then release the complaining member, or all 
of the members, from corresponding obligations, 
with the result that the offending member will be 
faced with higher tariffs than would otherwise 
apply. 

Establishment and Functions of the Organization 

The Organization consists of a Conference, to 
which all member states belong, an Executive 
Board, to be composed of some fifteen to eighteen 
states, a Tariff Committee, a few technical com- 
missions, and a staff. The organizational chapter 
(chapter VII) contains provisions of particular 
interest with respect to membership, functions of 
the organization, voting in the Conference, powers 
of the Conference, composition of the Executive 
Board, the commissions, the Tariff Committee, and 
relations with other organizations. 

Article 68, on membership, contains a provision 
under which no state can be an "original Member" 
unless it joins within a specified initial period. 
This provision, similar to a provision in the articles 
of agreement of the International Monetary Fund, 
is designed to overcome the tendency of states to 
hold back and wait for others to join. Subse- 
quently, applicants for membership must be ap- 
proved by the Conference of the ITO. 

Provision is also made in this article for par- 
ticipation on the part of separate customs terri- 
tories which are not responsible for the conduct 
of their diplomatic relations, but which are autono- 
mous in the conduct of those aspects of their ex- 
ternal commercial relations covered by the charter. 
These territories will be admitted to the Organiza- 
tion under such terms and conditions as the Con- 
ference may decide. Provision is also made for 
such territories, as they develop, to be accorded 
full voting rights in the Organization and thus to 
become full members. United Nations trust terri- 
tories and the Free Territory of Trieste may be 
given membership on terms to be prescribed by the 
Conference. 

Article 69, on the functions of the Organiza- 
tion, gives the ITO authority to collect, analyze, 
and publish information, make studies, and facili- 
tate consultation among members. The Organi- 
zation may also make studies looking to the ex- 
pansion of the field covered by international agree- 
ment. Emphasis is given this power by the pro- 
vision of paragraph 4 of article 74, which author- 
izes the Conference of the Organization to approve 

Deparfment of State Bulletin 



such general agreements and to submit them to 
members, and which requires members to accept 
or reject them within a specified period. Reject- 
ing members must specify their reasons in so doing. 
This provision was inserted as the result of experi- 
ence witli other international organizations which 
expended great effort on the preparation of such 
conventions, only to have them die slowly as a re- 
sult of the failure of their members to act. 

Article 72 on voting in the Conference is of 
particular interest. In the draft charter originally 
proposed by the United States, it was provided 
that each member state should have one vote in the 
Conference, wliich is the jDolicy-making body of 
the Organization. Under the United States draft, 
the charter obligations assumed by member gov- 
ernments were quite definite. As the cliarter has 
gone through successive meetings of the Prepara- 
tory Committee, the obligations have been made 
more flexible, discretion being given in an increas- 
ing number of cases to the Organization, acting 
usually through the Conference. Accordingly, 
the metliod of voting in the Conference has as- 
sumed greater significance, and tlie question arose 
at Geneva as to whether weiglited voting would 
not be more appropriate for tlie Conference. Tlie 
Geneva meeting decided to present tlie Habana 
Trade Conference four alternatives. 

One of the alternatives is the original jDroposal 
of "one country — one vote". The second and third 
alternatives propose tlie allocation of votes on a 
weighted basis, according to economic importance. 
The second uses light weights, the third heavy 
weights. The fourth alternative for allocating 
votes would have the Conference reach decisions 
on specified questions by a majority of votes cast 
both under the unit system and under the weighted 
system, the combination to be employed only if 
requested by a member. Which of the two weight- 
ing systems would be used is not specified. The 
Habana meeting will have to choose among these 
alternatives. 

Closely related to the voting power of each 
member is the question of the percentage of mem- 
bers "present and voting" required for passage of 
various kinds of motions. A majority is required 
as a general rule, but two thirds is required in cer- 
tain circumstances. The question of composition 
of tlie Executive Board (article 75), and of per- 
manent seats thereon, gave rise to unresolved dif- 

Ocfober26, J 947 

764751—47 2 



ferences of opinion reflected in three alternatives 
to be put before the Habana Conference. Whereas 
most of the delegations were agreed in principle 
on some provision for permanent seats for the 
countries of cliief economic importance, tliere was 
no general agreement as to what formula should 
be employed to measure such importance. Alter- 
native A names the states which shall have per- 
manent seats, covering eight of the proposed 
eighteen seats in this manner. It also assigns a 
number of seats to certain geographic regions — 
Latin America, the Arab States, and Scandinavia. 
The remainder are to be elected by the remaining 
members of the Organization which may, with 
Conference approval, act by groups of not less 
than four states. Alternative B merely says that 
the holders of seven of the fifteen seats shall be 
eligible for immediate re-election, the rest of the 
seats rotating. ^Alternative C states that the eight 
states of chief economic importance, as determined 
by the Conference, shall be entitled to membership 
on a board of seventeen. It also provides that 
eiglit named states (including the Benelux Cus- 
toms Union) shall be appointed to the first Exec- 
utive Board, leaving the other nine seats to be 
filled by election. 

Articles 79 and 80 provide for the establish- 
ment of commissions by the Conference. Whereas 
previous drafts of the charter had specifically es- 
tablished three commissions, in the fields of com- 
mercial policy, cartels, and commodities, and had 
set forth their functions, it was felt at Geneva 
that it would be wiser to avoid including in the 
charter a structure which might turn out to be 
inflexible or top-heavy. Questions of priority in 
establisliment and of possible overlapping with 
commissions and subcomniissions of the Economic 
and Social Council contributed to the decision to 
avoid reference in the charter to any particular 
commission. 

It is expected that the commissions will be com- 
posed of experts. Presumably the commissions 
will not be in continuous session, so it will be 
possible to enlist the services of persons in various 
fields wlio will in many cases be holding important 
jobs at home and who might not be prepared to 
devote full time to the ITO as members either of 
the commissions or of the staff. Also, this ar- 
rangement will help the commissioners to remain 
familiar with the domestic aspects of the problems 
with which they will be dealing. 

793 



The TariflF Committee established under article 
81 is an autonomous body within the Organization 
and, in this respect, is unique among the inter- 
governmental organizations now in existence. It 
will initiate on behalf of the Organization the 
tariff negotiations called for in article 17. The 
Committee will be made up of those members of 
the Organization which have reduced their own 
tariffs and have thus given tangible proof of the 
sincerity of their intentions in regard to the free- 
ing of international trade. 

Article Si covers the relation of the ITO with 
other organizations. The relation of ITO with 
the United Nations is, of course, a matter of very 
great importance, since the ITO must act in con- 
formity with the over-all policy laid down by the 
United Nations, and this relation will be defined 
in an agreement similar to those reached between 
the United Nations and other specialized agencies. 
Since the ITO is one of the last of the specialized 
intergovernmental organizations expected to be 
established, the problem of its relationships to the 
other specialized organizations is clearer and can 
be dealt with more specifically in the ITO charter 
than in constitutions drafted earlier. Thus spe- 
cific provisions as to relationship with the Inter- 
national Monetary Fund and the Food and Agri- 
culture Organization are included. However, it 
is probable that there will be relationships with 
other intergovernmental organizations — for ex- 
ample, with the International Bank — and ai'ticle 
84 provides for this. Provision is also made for 
the absorption by the ITO of various organiza- 
tions in certain limited fields, such as the Inter- 
national Bureau for the Publication of Customs 
Tariffs at Brussels, which were established long 
before ITO was envisaged and whose operations 
fall within the broad competence of the new Or- 
ganization. Article 84 thus affords an oppor- 
tunity for obtaining economies in international 
organization. 
Differences and Disputes 

Since the obligations of ITO members are im- 
portant and since they admittedly involve mat- 
ters of some complexity, there will almost cer- 
tainly be a large number of differences and dis- 
putes between members. Accordingly, one of the 
principal functions of the ITO will be tlie re- 
solving of such differences and disputes in ac- 
cordance with the cliarter. Chapter VIII is de- 
voted to this subject. 

794 



The procedure for settling disputes has three 
broad stages. The first is for a member having 
a complaint to make representations to other mem- 
bers involved. If this is not successful, the sec- 
ond step is for the matter to be referred to the 
Organization, in the first instance to the Execu- 
tive Board. The Executive Board may refer the 
matter to the Conference, or a ruling of the Board 
may be appealed to the Conference by an in- 
terested member. The Executive Board may, with 
the approval of the members concerned, arrange 
for arbitration of the dispute. A third step, if 
necessary, is reference to the International Court 
of Justice, in accordance with article 65 of the 
Statute of that Court, which states that "the 
Court may give an advisory opinion on any legal 
question at the request of whatever body may be 
authorized by or in accordance with the Charter 
of the United Nations to make such a request". 

General Provisions 

Since the effectiveness of the ITO is directly 
affected by the number of its members and their 
importance in international trade and since states 
which join the ITO take on substantial obliga- 
tions, it is important to provide an impetus for 
all eligible states to join and also to make it dilii- 
cult, if not impossible, for them to receive the 
benefits of the Organization without assuming its 
obligations. Accordingly', it is necessary to in- 
clude some provision which denies ITO benefits 
to states which are eligible for membership but 
which, nevertheless, do not join the Organization. 
Attitudes at Geneva on this question tended to 
vary according to the strength of commercial 
and other ties with states whose membership in 
the Organization is problematical. It seemed best 
to defer this question until the World Conference, 
but three alternatives are included in article 93 
to facilitate consideration of the problem at Ha- 
bana. 

Alternative A, the weakest of the three, permits 
a member having substantial trade with nonmem- 
bers to suspend the application of any provision 
of the charter, requires it thereupon to afford other 
members an opportunity for consultation, and per- 
mits it, in the absence of agreement, to withdraw 
from tlie Organization. Alternative B requires 
any member wishing to maintain or enter into an 
{Continued on page 835) 

Department of State Bulletin 



EIGHTIETH CONGRESS, FIRST SESSION, 
AND THE UNITED NATIONS 



hy Sheldon Z. Kaplan 



It is the well-established policy of the United States to 
place major reliance on the United Nations as the central 
organization for the maintenance of international peace and 
the promotion of international cooperation. The article 
which follows is the first of a series of two describing the 
activities of the First Session of the Eightieth Congress in 
fulfilling the obligations which flow from this policy. 



Part I 



I. Introduction 

Students of American foreign policy will re- 
member the Seventy-ninth Congress of the United 
States as the legislative body which made pos- 
sible the beginning of a new era in international 
relations: the participation of this Government 
in the world organization upon which rests the 
hope of mankind for the achievement of inter- 
national peace and security — the United Nations.^ 
But the Eightieth Congress will be remembered 
for the excellent begimiings made by its First Ses- 
sion ^ toward the enactment of municipal legisla- 
tion needed to implement the responsibilities 
which flow from that participation. Notwith- 
standing a congested legislative calendar, due in 
part to the application of the new machinery of 
the Legislative Keorganization Act of 1946,^ and 



^ United Nations Participation Act of 1945, Public Law 
264, 79th Cong., 1st sess. (Dec. 20, 1945) ; 59 Stat. 619 
(1945), 22 U.S.C. sec. 287 (supp. 1946). 

' The Congress convened Jan. 3, 1947, and adjourned at 
3 : 50 a. m. Sunday, July 27, 1947, under a special agree- 
ment which permits the Republican leadership, consisting 
of the president pro tempore of the Senate, the speaker 
of the House of Representatives, the majority leader of 
the Senate, and the majority leader of the House of Repre- 
sentatives, all acting jointly, to notify the members of the 
Congress to reassemble in special session whenever in the 
opinion of those four leaders the public interest shall war- 
rant it. See S. Con. Res. 33, providing for the adjourn- 
ment of the two Houses of Congress until Jan. 2, 1948, 
as amended by the House. {Cong. Rcc, July 26, 1947, 
p. 10599. ) Without such a provision a call could be issued 
only by the President of the United States, who always 
has that right. 

'Public Law 601, 79th Cong., 2d sess. (Aug. 2, 1946), 
the major provisions of which became effective Jan. 2, 
1947 (see see. 142 of the act). 



October 26, 1947 



795 



in part to the fact that a Republican majority for 
the first time since 1932 was in control, the First 
Session came to grips with many important legis- 
lative proposals bearing upon our foreign relations 
generally, and, in particular, cementing and for- 
tifying the participation of the United States in 
the work of the United Nations, in whose success 



■* Hearings Before Committee on Foreign Affairs on H. R. 
3836, 80th Cong., 1st sess., p. 6 (1947). See also Buixetin 
of Sept. 21, um, pp. 539-543. The argument advanced in 
some circles that Public Law 75, 80th Cong., 1st sess. 
(May 22, 1947), "An act to provide for assistance to Greece 
and Turkey", is in clear derogation of the United Nations 
policy enunciated by the Seca-etary of State and implicitly 
bypasses tlie United Nations was completely answered — 
at least to the satisfaction of Congress — by the then Under 
Secretary of State, Dean Acheson, in his memorandum on 
"Questions and Answers Relating to the Greek-Turkish 
Aid Bill", Hearings Before Committee on Foreign Affairs 
on H. R. 261(1, 80th Cong., 1st sess., pp. 341-386 (1947), 
particularly pp. 341-344. S. Kept. 90, 80th Cong., 1st sess. 
(1947) at p. 16 makes it abundantly clear that assistance 
to Greece and Turkey vpill constitute a fulfilment of a basic 
objective of the United Nations Charter ; to create condi- 
tions of political and economic stability vFhich will pre- 
serve the freedom and independence of its members and 
thus safeguard their .sovereign equality. "The United 
Nations was not created to supersede friendly relations 
between states through assistance from one state to an- 
other to carry out the purposes set forth in the Charter." 

' The Charter vpas submitted to the Senate as a treaty 
and approved July 28, 1945, by a vote of 89 to 2 (91 Cong. 
Rec., p. 8329 (1945)). Upon deposit of ratifications by 
China, France, the U.S.S.R., the United Kingdom, the 
United States, and a majority of the other signatory states, 
it became effective Oct. 24, 1945, when it ". . . came 
into force as a fundamental law for the peoiiles of the 
world . . .", in tlie words of the President in his first 
annual report on the activities of the United Nations and 
the participation of the United States tlierein for the year 
1946, submitted to Congress pursuant to sec. 4, United 
Nations Participation Act of 1945, Public Law 264, 79th 
Cong., 1st sess. (Dec. 20, 1945), cited supra in note 1. See 
Department of State jjublication 2735, the United States 
and the United Nations Report Series 7, for complete text 
of report. 

° For a comprehensive list see Department of State pub- 
lication 2699, International Agencies in Which the United 
States Participates. For contributions authorized by the 
first session, see Department of State Appropriation Act, 
1948, title I, Public Law 166, 80th Cong., 1st sess. (July 9, 
1947). 

'One of the six principal organs of the United Nations. 
The other five are: the General Assembly, the Security 
Council, the Trusteeship Council, the International Court 
of Justice, and the Secretariat (U.N. Charter, art. 7, 
par. 1). 



our Government and the American public share a 
continual concern. This becomes readily apparent 
upon a review of the activities of the First Ses- 
sion of the Eightieth Congress in this I'egard, and 
serves to buttress the statement made by Secretary 
of State Marshall that "It is the recognized policy 
of the United States Government to place major 
reliance on the United Nations as the medium for 
achieving international peace and security." * 

The United Nations, the public international 
organization established under that name by the 
Charter of the United Nations,'' is, of course, the 
major international organization in which the 
United States participates. There exist, however, 
many other public international organizations in 
which our Government enjoys membership and to 
which it makes substantial contributions." Though 
retaining separate legal entities and operating 
under their own internal constitutions, several of 
these organizations have been brought into close 
relationship with the United Nations, in accord- 
ance with articles 57 and 63 of the United Nations 
Charter : 

Article 57 

1. The various specialized agencies, established by 
iutergovernnuMital agreement and having wide interna- 
tional responsibilities, as defined in their basic instru- 
ments, in economic, social, cultural, educational, health, 
and related fields, shall be brought into relationship with 
the United Nations in accordance with the provisions of 
Article 63. 

2. Such agencies thus brought into relationship with the 
United Nations are hereinafter referred to as specialized 
agencies. 

Article (!.i 

1. The Economic and Social Council may enter into 
agreements with any of the agencies referred to in Article 
57, defining the terms on which the agency concerned 
shall be brought into relationship with the United Na- 
tions. Such agreements shall be subject to approval by 
the General Assembly. 

2. It may coordinate the activities of the specialized 
agencies through consultation with and recommendationt. 
to such agencies and through recommendations to the 
General Assembly and to the Members of the United 
Nations. 



Thus, only public international organizations 
which liave been, or are expected to be, brouglit into 
relationship through appropriate agreement with 
the Economic and Social Council ' should be classi- 



796 



Department of State Bulletin 



tied us "specialized agencies""," in tlie technical 
sense. But, in this summary of the activities of 
the First Session of the Eightieth Congress with 
regard to the United Nations, it is appropriate to 
include not only the specialized agencies affected 
by Congressional action but also other public inter- 
national agencies affected thereby, whose objec- 
tives are clearly in accord with the Charter of the 
United Nations, notably the Caribbean Commis- 
sion and the South Pacific Commission. 

II. Responsibilities of the "Host" Nation 

A. United Nations permanent headquarters and 
the Rockefeller gift 

Tlie Congress, by concurrent i-esolution passed 
unanimously by the House of Representatives, De- 
cember 10, 1945, and agreed to unanimously by the 
Senate the following day, invited the United Na- 
tions "to locate the seat .of the United Nations 
Organization within the United States"'." The 
United Nations decided in February 1946 to accept 
the invitation and to establish its headcjuarters in 
this country. There followed deliberations and 
discussions within the Organization as to the exact 
location in the United States of its permanent 
headquarters. Rumor shifted from Westchester 
County, New York, to Fairfield County, Connecti- 
cut, then to Boston, Philadelphia, San Francisco, 
New York City, and so on." The matter, virtually 
one of the most difficult and vital organizational 
problems with which the United Nations has been 
confronted, was finally concluded during the sec- 
ond part of the first session of the General Assem- 
bly, when on December 14, 1946, it was resolved 
"That the permanent headquarters of the United 
Nations shall be established in New York City in 
the area bounded by First Avenue, East 48th 
Street, the East River and East 42nd Street"." 

This resolution was adopted in almost immediate 
response to a letter dated December 10, 1946, from 
John D. Rockefeller, Jr., to Eduardo Zuleta Angel, 
Chairman of the Permanent Headquarters Com- 
mittee of the United Nations, in which Mr. Rocke- 
feller offered to donate the sum of $8,500,000 for 
the purpose of making available to the United 
Nations as its j^ermanent headquarters a site in 
New York City located and bounded by Forty- 
second Street, Forty-eighth Street, First Avenue, 
and the East River. Certain conditions were speci- 
fied in the offer: one being that the city of New 

Ocfofaer 26, 1947 



York would donate to the United Nations that part 
of the site not covered by the option obtained by 
Mr. Rockefeller from the owners, and another that 
his gift would be exempt from the Federal gift tax. 
To achieve this exemption meant an amendment to 
the Internal Revenue Code by Congressional en- 
actment, and the matter had to be acted upon 
promptly, since Mr. Rockefellers option on the 
land in question was to expire February 28, 1947. 

The Eightieth Congress, aware of the responsi- 
bilities of the United States as "host" nation and of 
the excellent opportunity afforded the United Na- 
tions to accept an extremely generous offer from 
a public-spirited citizen, did act promptly. With- 
in twenty days from the date of the letter of the 
President of the United States (February 6, 1947) 
to the Congress on this matter, a joint resolution 
of Congress ^- became law, with two days to spare 
before the expiration of Mr. Rockefeller's option. 

Under the terms of the amendment to the In- 
ternal Revenue Code enacted by Congress, gifts 
made in the period beginning December 2, 1946, 
and ending December 1, 1947, to the United Na- 
tions "... to be used exclusively for the 
acquisition of a site in the city of New York for 
its headquarters ..." are exempt from Fed- 
eral estate and Federal gift tax." Such gifts are 



' The specialized agencies, as of the date of this writing, 
include Ilo (International Labor Organization), Fag 
(Food and Agriculture Organization of the United Na- 
tions), UNESCO (United Nations Educational, Scientific 
and Cultural Organization), Icao (International Civil 
Aviation Organization), all of which have actually been 
brought into relationship with the United Nations by agree- 
ments with the Economic and Social Council, approved 
by the General Assembly, and the Bank (International 
Bank for Reconstruction and Development), the Fund 
(International Monetary Fund), Who (World Health 
Organization), Ibo (International Refugee Organization), 
the proposed Ito (International Trade Organization), 
Upu (Universal Postal Union), and Itu (International 
Telecommunication Union), which agencies are expected 
to be brought into relationship with tJie United Nations. 

"H. Con. Res. 75, V9th Cong., 1st sess. (194.5). 

" See in general U.N. docs. A/69, October 1946, and A/311, 
July 1947. 

" U.N. doe. A/64/Add. 1, Jan. 31, 1947, p. 196, and U.N. 
doc. A/277, Dec. 13, 1946. 

^"^ H. J. Res. 121, which became Public Law 7, 80th Cong., 
1st sess. (Feb. 26, 1947). 

" Without such an amendment to the Internal Revenue 
Code, a donor making a taxable gift of $8,.500,0OO would 
be required to pay a gift tax ranging from $3,700,000 to 
$4,800,000. See S. Rept. 3.5, 80th Cong., 1st sess., p. 2 
(1947). 

797 



also allowed as a deduction in computing net in- 
come for Federal income-tax purposes, to the same 
extent as gifts for public or charitable purposes, 
provided they are made within the period specified. 

B. United States-United Natiom headquarters 
agreement 

The United States Congi-ess, having extended an 
invitation to the United Nations to locate its per- 
manent home in this country and having made it 
possible for the Organization to accept a tax-free 
gift of $8,500,000 for the acquisition of a perma- 
nent site in New York City, was faced with still 
a further responsibility toward its guest. This 
duty can best be described in the words of the 
President in his message to the Congress, July 2, 
1947, transmitting an agreement between the 
United States and the United Nations concerning 
the control and administration of the headquarters 
of the United Nations in the City of New York : 

"Tlie United States has been signally honored 
in the location of the headquarters of the United 
Nations within our country. Naturally the United 
States wishes to make all appropriate arrange- 
ments so that the Organization can fully and ef- 
fectively perform the functions for which it was 
created and upon the successful accomplishment 
of which so much depends. 

"This Agreement is the product of months of 
negotiations between representatives of this Gov- 
ernment and the United Nations. Representatives 
of the City and State of New York participated 
in these negotiations. The Agreement carefully 
balances the interests of the United States as a 
Member of the United Nations and the interests of 
the United Nations as an international organiza- 
tion. 

"I urge the Congress to give early consideration 
to the enclosed Agreement and to authorize this 
Government by joint resolution, to give effect to 
its provisions." " 

"H. R. Doc. 376, 80th Cong., 1st sess., pp. 1-2 (1947). 
The circumstances leading up to the agreement, the orig- 
inal test thereof, and an analysis of its provisions, in 
addition to the President's message, are all conveniently 
set forth in this document. For a statement by the Sec- 
retary of State on the agreement, see Buixetin of July 6, 
1947, p. 27. 

" S. J. Res. 144 passed the House July 26, 1947, with 
amendments, and the Senate the same day. It became 
law Aug. 4, 1947. (Public Law 357, 80th Cong., 1st sess.) 

""It is clear that the United States cannot tell the 



The agreement, in effect, serves to implement 
article 104 of the Charter of the United Nations, 
which provides that "The Organization shall enjoy 
in the territory of each of its Members such legal 
capacity as may be necessary for the exercise of 
its functions and the fulfillment of its purposes", 
and article 105, which provides, in part, that "The 
Organization shall enjoy in the territory of each 
of its Members such privileges and immunities as 
are necessary for the fulfillment of its purposes" 
and, further, that the General Assembly "... 
may make recommendations with a view to deter- 
mining the details of the application . . ." 
of this provision. 

To make jjossible the free and unobstructed per- 
formance of the duties with which the United 
Nations has been entrusted, the agreement, in its 
provisions of major importance, grants to the 
Organization freedom from certain types of do- 
mestic regulations; recognizes that the headquar- 
ters district is inviolable (as was the headquarters 
of the League of Nations in Switzerland), but 
places the Organization under an obligation to 
prevent the district from becoming a refuge for 
persons attempting to avoid arrest; safeguards the 
right of persons of all nationalities having legiti- 
mate business with the United Nations (represen- 
tatives of members, officials of the United Nations, 
and other persons having business with the Organ- 
ization) to have access to the headquarters district 
by providing that the Federal, State, or local au- 
thorities are not to impose any impediments to 
transit to or from the district; confers upon lim- 
ited classes of representatives of member states of 
the United Nations the same privileges and immu- 
nities as are accorded to diplomatic envoys ac- 
credited to the United States (provision is made 
for physical limitation of the area in which such 
immunities may be claimed by representatives of 
member states which are not recognized by the 
United States) ; and authorizes the United Na- 
tions to establish and operate radio facilities. 

Wlien Congress was faced with a consideration 
of the approval of the agreement, in the form of 
S. J. Res. 144," its chief concern was to balance 
the right of access to the headquarters district 
against certain important considerations involving 
the national security of the United States.^' Ac- 
cordingly, there was added, in addition to certain 
other minor changes, a new section to the joint 



79B 



Department of State Bulletin 



resolution (introduced, appropriately, by Senators 
Ives and Wagner of New York), which reads as 
follows : 

"Sec. 6. Nothing in the agreement shall be 
construed as in any way diminishing, abridging, 
or weakening the right of the United States to 
safeguard its own security and completely to con- 
trol the entrance of aliens into any territory of 
the United States other than the headquarters 
district and its immediate vicinity, as to be defined 
and fixed in a supplementary agreement between 
the Government of the United States and the 
United Nations in pursuance of section 13 (3) (e) 
of the agreement, and such areas as it is reason- 
ably necessarj' to traverse in transit between the 
same and foreign countries. Moreover, nothing 
in section 14 of the agreement with respect to 
facilitating entrance into the United States by 
persons who wish to visit the headquarters district 
and do not enjoy the right of entry provided in 
section 11 of the agreement shall be construed to 
amend or suspend in any way the immigi-ation laws 
of the United States or to commit the United States 
in any way to effect any amendment or suspension 
of such laws." 

Under the terms of Section 28 of the headquar- 
ters agreement, it is not to come into effect until 
"... an exchange of notes between the Sec- 
retary-General, duly authorized pursuant to a res- 
olution of the General Assembly of the United 
Nations, and the appropriate executive officer of 
the United States, duly authorized pursuant to 
appropriate action of the Congress." The Secre- 
tary-General has not yet been authorized to accept 
the agreement for the United Nations, although it 
may be expected that such action will have been 
taken during the second legular session of the 
General Assembly. 

A word should be said at this point concerning 
the International Organizations Immunities Act.^' 
The act extends certain privileges, exemptions, and 
immunities to public international organizations 
in which the United States participates pursuant 
to any treaty or under authority of any act of Con- 
gress authorizing such jjarticipation or making an 
appropriation for such participation and which 
shall have been designated by the President 
through appropriate Executive order.^^ The fol- 
lowing organizations have, as of the date of this 
writing, been so designated by the President: 



The Food and Agriculture Organization 

The International Labor Organization 

The Pan American Union 

The United Nations 

The United Nations Relief and Rehabilitation Adminis- 
tration" 

Inter-American Coffee Board 

Inter-American Institute of Agricultural Sciences 

Inter-American Statistical Institute 

International Bank for Reconstruction and Development 

International Monetary Fund 

Pan American Sanitary Bureau"" 

Intergovernmental Committee on Refugees 

Internatiotial Wheat Advisory Committee (International 
Wheat Council)" 

United Nations Educational, Scientific and Cultural 
Organization 

International Civil Aviation Organization 

International Telecommunication Union ^ 

Preparatory Commission for International Refugee Or- 
ganization 

International Refugee Organization (when it supersedes 
the Preparatory Commission)^ 

It should be borne in mind, however, that al- 
though the United Nations is included in this list, 
at the time of designation by the President it was 
too early to ascertain precisely what the principal 
requirements of the United Nations would be, since 
the first session of the General Assembly of the 
United Nations was still in session and its per- 
manent headquarters had not been selected. When 
the site was definitely agreed upon by the United 
Nations, as described above, it became necessary 



otlier member nations who should or who should not repre- 
sent them at the seat of the United Nations and cannot 
claim any right of veto over the Secretary-General's ap- 
pointment of personnel to the staff of the United Nations. 
In general, the United States, as host country, must per- 
mit access to the headquarters on the part of all persons 
who have legitimate business with the Organization. This 
involves inevitably the admission of a number of aliens, 
some of whom would not normally be admissible under 
immigration laws of the United States. 

"The principal problem considered by the committee was 
how this right of access to the headquarters could be 
granted in a manner which would not prejudice the secu- 
rity of the United States against infiltration on the part 
of subversive alien elements." S. Rept. 559, 80th Cong., 
1st sess., pp. 5-6 (1947). 

"Public Law 291, 79th Cong., 1st sess. (Dec. 29, 1945), 
59 Stat. 669. 

" Ibid., title I, sec. 1. 

""Ex. Or. 9698, 11 Federal Register 1809 (1946). 

"°Ex Or. 9751, 11 Federal Register 7713 (1946). 

'' Ex. Or. 9823, 12 Federal Register 551 (1947). 

''Ex. Or. 9863, 12 Federal Register 3559 (1947). 

'^Ex. Or. 9887, 12 Federal Register 5723 (1947). 



Ocfober26, 1947 



799 



for the United States and the United Nations to 
negotiate a special agreement covering the new 
arrangements required as a result of the selection 
of the permanent home in New York City. The 
position which the United States took during the 
prewar years and with relation to the League of 
Nations was that there exists no obligation under 
customary international law to extend to personnel 
of public international organizations privileges, 
exemptions, and immunities accorded either to for- 
eign diplomatic agents, or non-diplomatic govern- 
ment officials.-* Thus the International Organi- 
zations Immunities Act was a big step forward 
taken by our Government, through Congressional 
enactment, to insure the effective performance of 
the functions and the fulfilment of the purposes 
of these organizations. It is to the credit of the 
Eightieth Congress that it took the further step 
of bridging the gaps in existing law l)y enacting 
the joint resolution authorizing the President to 
accei>t the permanent headquarters agreement, 
substantially as transmitted by the President to 
the Congress for its action. 

C. International Organizations Procurement Act 
of 1947 

Tlie "host" nation, cognizant of the rules and 

" Hnckworth, Digest of International Law, vol. IV, pp. 
422-12.3 (1042). 

"'Public Law 384, 79tli Cong., 2d se.ss., p. 17 (May 18, 
1946). 

"Under this autliorlt.y the United Nations purchased 
$348,7.j8.37 wortli of paper from the Government Printing 
Office and $261,.54.5.09 worth of miscellaneou.s office supplies 
and furniture through tlie procurement services of the 
Btu-eau of Federal Supply, Treasury Department. See 
H. R. Kept. 9.j2, 80th Cong., 1st sess., p. 5 (1947). 

" S. Kept. 611, 80th Cong., 1st sess., pp. 2-3 (1947). 

" IhiO., p. 1. 

"Public Law 354, 80th Cong., 1st sess. (Aug. 4, 1947). 

""Sec. 2 (1) provides: "(1) The term 'international 
organization' niean.s any puljlic international organization 
having its headquarters in tlic United States and entitled 
to enjoy, in wliole or in part, tlie privileges, exemptions, 
and imnmnities autliorized by and in accordance with the 
International Organizations Immunities Act (59 Stat. 
669)." This includes, thus far, the following organiza- 
tions : Food and Agriculture Organization, Pan American 
Union, United Nations, Inter-Aniprican Coffee Board, Inter- 
Amorican Institute of Agricultural Sciences, Inter-Auieri- 
can Statistical Institute, International Baidv for Recon- 
struction and Development, International Monetary Fiuid, 
Pan American Sanitary Bureau, and the International 
Wlioat Advisory Committee (International Wheat 
Council). 

800 



regulations governing the extension of hospitality, 
was not oblivious to the acute procurement needs 
with which the United Nations was faced in the 
early days of its settlement in this country. Thus, 
the Second Deficiency Appropriation Act, 1946 '' 
contained a provision authorizing any agency of 
the United States Government to furnish or to 
procure and furnish materials, supplies, and equip- 
ment to the United Nations until December 31, 
1910, on a reimbursable basis. This was an emer- 
gency measure, designed to enable the new-born 
Organization to purchase supplies vitally needed 
for its housekeeping and administrative purposes, 
such as typewriters, desks, paper, photostat equip- 
ment, and mimeograph machines.-" The emer- 
gency, however, continued beyond December 31, 
1946, and when Trygve Lie, the Secretary-General 
of the United Nations, informed the Department 
of State early in 1947 of the continuing procure- 
ment crisis (due to excessively high prices of 
needed items, even when obtaijiable from private 
sources), the Department took action to initiate 
a request to Congress for the necessary legislation. 
In his letter of transmittal to Congress, the Sec- 
retary of State urged renewal of the authoriza- 
tion, with extension of its benefits to other public 
international organizations in addition to the 
United Nations, and pointed out the advantages 
that would accrue to the international organiza- 
tions and to the United States itself from the pro- 
posed legislation.^' 

The Senate Foreign Relations Committee rec- 
ommended the passage of the bill, S. 1574, in the 
following words : "Since it would enable the United 
States Government, at no cost to itself, to render 
valuable assistance to international organizations 
which have made their headquarters in the United 
States and in whose success our Government is 
vitally interested, the committee reconamends the 
bill for the favorable consideration of the 
Senate."' =» 

The bill, as it finally passed the Congress and 
was approved by the President,"^ enables the two 
chief procurement agencies ,of the Government, 
the Bureau of Federal Supply of the Treasury 
De])artment and the Government Printing Oflice, 
until July 1, 1948, to furnish or procure and fur- 
nish administrative supplies to international or- 
ganizations, as defined in the act,^" on a reimbursa- 
ble basis of the costs and expenses involved, with 
the proviso contained in section 3 fliat these two 

Department of Sfafe Bulletin 



agencies ". . . protect the interests ,of the 
I'^nited States Government in having access to suf- 
ficient supplies for its own needs, . . ." 

The possible criticism of the act on the ground 
that the time limit contained therein may be too 
restricting on the procurement activities of the 
United Nations is answered by the assurance con- 
tained in the House Foreign Affairs Committee 
report that the Congress will consider the require- 
ments of the United Nations with regard to the 
construction of its permanent home when con- 
struction actually begins and the needs relative 
thereto can be more fully ascertained." 

Z>. Protection of the seal, emhiem, and name of the 
United Nations 

The General Assembly of the United Nations 
in a resolution adopted unanimously at its fiftieth 
plenary meeting, December 7, 1946,^' recommended 
that members of the United Nations should take 
appropriate steps to prevent the commercial ex- 
ploitation of the emblem, (he official seal, and the 
name of the United Nations by means of trade- 
marks or commercial labels, without authorization 
by the Secretary-General of the United Nations. 
Accordingly, a bill "To prohibit and punish the 
unauthorized use of the official seal, emblem, and 
name of the United Nations, and for other pur- 
poses", H.R. 4186, was introduced in the House of 
Representatives by Congressman Javits, a member 
of the House Committee on Foreign Affairs. In 
the woi'ds of the Committee, "The proposed legis- 
lation would prevent the growth of the practice 
of commercially exploiting the concept of the 
United Nations. At the same time it avoids in- 
fringement on established rights in the language 
in section 3, providing that those who established 
their use of the name, initials, emblem, or seal of 
the United Nations before the effective date of the 
Charter may continue such use for the period 
remaining under a valid trade-mark or copyright. 
Sucli trade-marks or copyrights are, however, not 
to be subject to renewal. Those who have estab- 
lished a use of the name or initials or emblem con- 
cerned since the determining date and prior to the 
enactment of the proposed act are granted leeway 
of 1 year in which to bring such use to an orderly 
end." ^^ 

The bill passed the House on July 25, 1947, and 
will be considered in the Senate during the next 
session of the Eightieth Congress. 



III. "Humanitarian" Responsibilities 
of the United States 

One of the major purposes of the United Na- 
tions, as expressed in the Charter, is "To achieve 
international cooperation in solving international 
problems of an economic, social, cultural, or hu- 
manitarian character, and in promoting and en- 
couraging respect for human rights and for funda- 
mental freedoms for all without distinction as to 
race, sex, language, or religion . . ." ^^ 

This purj^ose covers an enormous range of 
human endeavor with which the United Nations 
has been charged. If, indeed, it will be respon- 
sible for the fulfilment even in part of some of 
these ideals, the Organization will have justified 
its existence and merited the support of all the 
civilized nations of the world. 

That the United Nations on the one hand, has 
been quick to focus its attention on these interna- 
tional resjjonsibilities may be seen when its actions 
are viewed in connection, in particular, with three 
humanitarian projects: The International Refu- 
gee Organization, the World Health Organization, 
and the International Children's Emergency Fiuid. 
That the United States on the other hand, as a 
leading sponsor and a leading member of the 
Organization, has been acutely aware of its re- 
sponsibilities toward the relief and betterment of 
the lot of mankind everywhere, is, likewise, readily 
apparent. The cooperation of the Eightieth Con- 
gress in these programs gives impressive testimony 
to the fact that it recognizes the desperate serious- 
ness of the world situation. 

A. The International Refugee Organization 
(IRO) 
In keeping with the purpose set forth in para- 
graph 3, article 1 of the Charter, the General 
Assembly, by a resolution of February 12, 1946, 
decided that the complex and world-disturbing 
problem of refugees and displaced persons is inter- 
national in character and that a single interna- 
tional organization should take over the functions 



"' H. R. Rept. 952, SOtli Cong., 1st sess., p. 4 (1947). 

■"U.N. doc. A/64/Ad(l.l, Jan. 31, 1947, p. 186; see also 
U.N. docs. A/204, Dec. 2, 1946 and A/2(>4/Add.l, Dee. 4, 
1946. 

^ H. R. Rept. 1043, 80th Cong., 1st sess., p. 3 (1947). 

'' U.N. Charter art. 1, par. 3. This paragraph indicates 
that tlie framers of tlie Charter realized that the mainte- 
nance of peace and security is not solely a matter of set- 
tling disputes or dealing with threats to the peace or cases 
of actual aggression. 



Ocfober 26, 1947 



801 



being performed by many different organizations. 
As a result of studies carried on, pursuant to this 
decision, by special committees of the General 
Assembly and the Economic and Social Council, 
the General Assembly, on December 15, 1946, ap- 
proved the constitution of the International Refu- 
gee Organization.^^ The United States played an 
active role in this matter, consistent with the policy 
adopted by the Secretary of State, recognizing that 
the care and disposition of displaced persons is 
a collective international responsibility just as was 
the military defeat of Germany and the punish- 
ment of Nazi war criminals. 

The constitution of Iro was opened for signa- 
ture the same day it was approved by the General 
Assembly, and Senator Austin, the Representa- 
tive of the United States at the seat ,of the United 
Nations, signed it on behalf of the United States, 
subject to final approval by Congress to make ef- 
fective this Government's membership and par- 
ticipation. Accordingly, S. J. Res. 77, "A joint 
resolution providing for membership and partici- 
pation by the United States in the International 
Refugee Organization and authorizing an appro- 
priation therefor", was introduced in the Senate 
on February 24, 1947, by Senator Vandenberg. 
The resolution was unanimously approved by the 
Senate Foreign Relations Committee on March 
12, 1947, and passed the Senate on March 25, 1947, 
by unanimous vote, after undergoing a lively and 
thorough debate.^ As it passed the Senate it in- 
cluded a proviso, sponsored by Senators Rever- 
comb and Donnell, designed to dispel the fear that 
the Constitution of the Organization might be 
interpreted as authorizing the President to con- 
clude agreements with the organization which 
would have the effect of suspending or modifying 
our immigration laws.^' When the matter came 



" U.N. doc. A/64/Add.l, Jan. 31, 1947, pp. 97-121. Upon 
signature without reservation, or acceptance by 15 states, 
it will come into force provided the total of their assigned 
contributions as set out in an appendix to the constitution 
amounts to 75 percent of the total budget for the fiscal 
year 1947. Bulletin of July 1.3, 1947, p. 61. See glso 
Department of State doc. SD/IRO/1, Mar. 21, 1947. 
(Mimeo.) 

"9.3 Cong. Rec, pp. 2.565-2602 (Mar. 25, 1947). 

" Ibid., p. 2602. 

''H. R. Kept. 464, 80th Cong., 1st .sess., p. 1 (1947). 

" For passage in the House, see 9,3 Coni;. Rec, pp. 7914- 
7915 (June 26, 1947) ; for acceptance by Senate of House 
amendments, see ibid., pp. 7970-7971 (June 27, 1947). 

"Public Law 146, 80th Cong., 1st sess. (July 1, 1947). 

802 



before the House Foreign Affairs Committee, this 
amendment was adopted along wuth its ,own 
amendments, lowering the ceiling of $75,000,000 
on the amount appropriated for the fiscal year 
beginning July 1, 1947, to $73,500,000 and adding 
a new section, section 5, to take care of the antici- 
pated interim period between the end of Unrra 
(June 30, 1947) and the beginning of Iro.''* With 
these amendments the House of Representatives 
passed the joint resolution, June 26, 1947, which 
was agreed to and pa.ssed by the Senate.^" On 
July 1, 1947, it became law."" 

Public Law 146 accomplishes four things of 
major importance — it authorizes the President to 
accept membership in Iro for the United States, 
with the immigration safeguard contained in the 
proviso, as noted above (section 1) ; it vests in the 
President the requisite authority to designate the 
United States representatives and alternates who 
are expected to attend the sessions of Iro (sec- 
tion 2) ; it authorizes the appropriation of such 
sums, not to exceed $73,325,000 for the fiscal year 
beginning July 1, 1947, as may be necessary for 
the payment of the United States contributions to 
IRO, and such siuns, not to exceed $175,000 for 
the same fiscal year to cover salaries and other 
expenses of United States representatives and al- 
ternates (section 3) ; it authorizes any Government 
agency to furnish or procure and furnish supplies 
and services to the organization on a reimbursable 
basis (section 4) ; and finally, it enables the Sec- 
retary of State, during the interim period between 
July 1, 1947, and the coming into force of the con- 
stitution of the organization, to make advance con- 
tributions to the Preparatory Commission of the 
International Refugee Organization (section 5). 

The contributions whicli the Organization is 
expected to make toward the relief of refugees and 
displaced jaersons are outlined very completely in 
the statement which the then Under Secretary of 
State, Dean Acheson,made before the Senate Com- 
mittee on Foreign Relations at hearings of that 
Committee on Iro on March 1, 1947. Mr. Acheson 
said : 

"What is it that this constitution provides? It 
establishes an organization to deal on an integrated 
basis with the whole problem of refugees and dis- 
placed persons. For the purposes of this organi- 
zation, a displaced person is someone who had to 
leave his own country as a result of the actions of 

Department of State Bulletin 



the Nazi or Fascist authorities. A refugee is, 
generally speaking, anyone outside of his own 
country who was either a victim of Nazi persecu- 
tion or who now is unwilling to return to his own 
country as a result of events which took place sub- 
sequent to the outbreak of the war. In general, 
the organization concerns itself with such people 
onlj' when certain conditions are fulfilled, i.e., that 
such persons desire to be repatriated and need help 
in order to be repatriated or for good reasons 
refuse to return voluntarily to their own countries. 
These are primarily the people whom the occupy- 
ing armies found on their hands when they entered 
Germany, Austria, and Italy. They wei-e people 
who had been taken against their will to Germany 
during the war, largely for the purpose of slave 
labor, or were people who, through fear of persecu- 
tion or through lack of sympathy with the regimes 
which have been establislied in their own coun- 
tries, tied to Germany, Austria, or Italy for pro- 
tection. The organization will also be concerned 
with similar problems in the Far East, particularly 
with ovei'seas Chinese displaced by operations of 
the Japanese armies." " 

Recognition of the part played by the Eightieth 
Congress was voiced by Ambassador Austin, chief 
of the United States Mission to the United Na- 



tions,*^ in his statement to the press when the 
United States adhered to the constitution of Iro.''^ 
To help nearly a million refugees and displaced 
persons to find homes and useful work, and an op- 
portunity to live out their lives in peace and hap- 
piness is a great contribution to the humanitarian 
needs of mankind. The Eightieth Congress has 
laid the foundation for that contribution. 



" Bulletin of Mar. 9, 1947, p. 425. 

"Ex. Or. 9S44, 12 Federal Register 2765 (1947) desig- 
nates the U.S. Representatives to the United Nations as 
the "United States Mission to the United Nations". For 
text see Bulletin of May 4, 1947, p. 798. 

■"U.S. Mission to the U.N., press release 195 (July 3, 
1947) : 

"Presentation of this instrument of adherence to the 
Constitution of the International Refugee Organization 
by the United States Government is one of the more satis- 
fying tasks which I have had to perform as the United 
States Representative at the Seat of the United Nations. 
This means not only that we have moved a great deal 
closer to full establishment of the IRO, but it also demon- 
strates once again the wholehearted devotion that the 
people and the Government of the United States have for 
the cause of the United Nations. The large majorities 
by which both Houses of the Congress have voiced their 
approval of the International Refugee Organisation are 
stirring and enthusiastic votes of confidence for this urgent 
humanitarian task." (Italics supplied by author.) 



United Nations Documents: A Selected Bibliography 



Economic and Social Council 

Resolution of the Building, Civil Engineering and Public 
Works Committee of the International Labour Or- 
ganization. E/587, October 11, 1947. 4 pp. mimeo. 

Resolution and Statement of the Textiles Committee of 
the International Labour Organization. E/5S8, Octo- 
ber 10, 1947. 5 pp. mimeo. 

Resolution of the Coal Mines Committee of the Inter- 
national Labour Organization. E/5S9, October 11, 
1947. 3 pp. mimeo. 

Items for the Provisional Agenda of the Sixth Session. 
E/591, October 10, 1947. 4 pp. mimeo. 

Members of Economic and Social Council. E/592, October 
11, 1947. 2 pp. mimeo. 

Official Records, Second Year, Fourth Session. Supple- 
ment No. 3. Report of the Commission on Human 
Rights. October 2, 1947. 6 pp. printed. [100.] 

General Assembly 

Admission of New Members. A/405, October 9. 1947. 1 
p. mimeo. 

Ocfober26, J 947 



Special Report to the Security Council. A/406, Octo- 
ber 9, 1947. 7 pp. mimeo. 

International Children's Emergency Fund. Report on the 
Activities of the Fund. A/408, October 13, 1947. 1 p. 
mimeo. 

Threats to the Political Independence and Territorial In- 
tegrity of Greece. Proposal Submitted by the Delega- 
tion of Cuba. A/C.1/206, October 8, 1947. 2 pp. 
mimeo. Corrigendum. A/C.l/206/Corr. 1, October 8, 
1947. 1 p. mimeo. 

Amendment to the United States Proposal (Document 

A/C.1/191 ) Submitted by the Delegation of the United 
Kingdom. A/C.1/207, October 8, 1947. 1 p. mimeo. 

Proposal Submitted by the Delegation of Egypt. 

A/C.1/208, October 10, 1947. 1 p. mimeo. 
{Continued on page S19) 



' 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. 

803 



THE PROGRAM OF THE INTERDEPARTMENTAL COMMITTEE ON 
SCIENTIFIC AND CULTURAL COOPERATION 

Cooperation With Cultural Centers in the 
Other American Republics, 1947 



hy Edmund R. Murphy 



The program of the Interdepartmental Committee on 
Scientific and Cultural Cooperation includes assistance for 
hinational cultural centers in 29 of the American republics. 
The following article describes the academic, informational ^ 
cultural, and social activities of these centers and their effort 
to portray life in the United States through the teaching of 
English, by collections representative of American books, 
phonograph records, a-nd art, and in lecture services by 
Amenca7i authorities. 



The twenty-ninth hinational cultural center to 
be assisted by the Department of State opened its 
doors to the public in Ciudad Trujillo on June 24, 
1947, when George H. Butler, Anabassador of the 
United States to the Dominican Kepublic, pre- 
sented the flag of the United States to the Insti- 
tuto Dominico-Americano at a special inaugura- 
tion ceremony. Located in a building facing Inde- 
pendence Park and housing classrooms, a library, 
and a sala containing representative collections of 
American books, phonograph records, and repro- 
ductions of American art, this cultural center pro- 
vides an example of the good-neighbor policy in 
action and is a concrete expression of cooperation 
among peoples of the Western Hemisiihere. 

The type of cultural institution represented by 
the Instituto Dominico-Americano is a local, au- 
tonomous, cultural society incorporated under the 
laws of the host country. Its governing body is 
a local board of directors, made up of nationals 
and resident Americans, who are intellectual, pro- 
fessional, and business leaders of tlie community. 
The society's charter usually provides for the es- 



804 



tablishment of a nonprofit corporation which, 
without religious or political motivation, is dedi- 
cated to furtliering understanding between the 
country concerned and the United States through 
the sponsorshiij of appropriate academic, infor- 
mational, cultural, and social activities. Pro- 
vision is made for democratic election of officers 
and board members, fees and conditions of mem- 
bership are described, and day-to-day administra- 
tion is made the responsibility of an appointed 
"director" or "executive secretary" who provides 
guidance to the organization's various programs 
in accordance with policies established by the 
board of directors. Although the president of the 
organization is usually a national of the country, 
the position of director or executive secretary has, 
in practice, almost always been an American who 
serves as an employee of the board. As the mem- 
bersliip and student body grow in size and as the 
needs of tlie organization increase, a local staff is 
employed. English teachers, including two or 
three recruited in the United States and a larger 
number recruited locally, conduct classes. A na- 
tional is employed to teach Spanish or Portuguese ; 

DeparfmenI of State Bulletin 



a librarian is added to handle the book collection. 
If the center's book collection is large, an American 
librarian is sometimes employed. Clerks, stenog- 
raphers, a janitor, and servants complete the staff. 

Since 1940, the United States Government has 
provided in Latin America moral and material 
assistance to such local societies. This assistance 
is now a part of the program of the Interdepart- 
mental Committee on Scientific and Cultural Co- 
operation and is administered by the Division of 
Libraries and Institutes, Department of State. 
The centei-s were founded as a means of focusing 
interest in and satisfying curiosity about the 
United States. The earliest institution featuring 
an English-language program and providing a 
locale and a friendly atmosphere where Americans 
and Argentines could meet and talk on an easy, 
informal basis was founded at Buenos Aires in 
1927, under the name Instituto Cultural Argen- 
tino-Norteamericano. Like the seven others at 
Habana, Port-au-Prince, Sao Paulo, Rio de 
Janeiro, Santiago, Lima, and Caracas, the Argen- 
tine center was in existence before this Govern- 
ment embarked on its present program of cultural 
cooperation with the other American republics. 

In October 19-17 there were twenty-nine cultural 
centers, known variously as Instituto, Centro, 
Clube, Academia, Uniao, or Associacao, receiving 
some assistance from the Department. In addi- 
tion, two large English-teaching progi'ams oper- 
ated in conjunction with the American libraries 
at Managua and Montevideo, and thirty-seven 
branches of the principal cultural centers received 
some support. By June 30, 1948, there will be 
United States-oriented cultural centers in every 
Latin Ajuerican capital except San Salvador. 
The rapid growth of this institutional program 
is striking testimony to the dynamism of the 
cultural-center idea and the zealous interest of 
Latin Americans in our language and culture.^ 

Because cultural centers have always been 
largely dependent on local sources for their sup- 
port, it was natural that they should give first 
attention to providing English instruction, since 
the most obvious way to support the activity was 
through fees paid for such instruction. It was 
logical, too, that emphasis should be placed on 
reducing language barriers as a means of creating 
better understanding among peoples and unlock- 
ing the storehouse of information available 



through publications printed in English. Classes 
were organized in beginning, intermediate, and 
advanced English. They were offered during the 
evening hours when schoolteachers, office workers, 
government clerks, professional people, mill 
hands, factory workers, and day laborers could 
attend. 

As the demand increased and professionally 
competent personnel were recruited for the centers, 
special classes were offered to meet the needs of cer- 
tain groups such as doctors, dentists, nurses, law- 
yers, physicists, university students, and others. 
Techniques and materials were tested, discarded, 
and revised, and only those methods were retained 
which would contribute toward gaining a speaking 
and reading knowledge of English in a minimum 
time. Vocabulary was limited to the practical, 
and the ornamental was discarded. Literary 
masterpieces lost their place to contemporary ma- 
terials written in the vei'nacular. Out of these 
cultural-center laboratories, from the pens of 
American teachers, came several textbooks, such as 
Frederick Sparks Stimson's Fwridamentos de la 
conversacion inglesa, John G. and Jeanette J. 
Varner's, Ingles moderno, James Paul Stoakes' 
Ingles prdctico, Dr. Esther J. Crooks' First 
Year English and Fourth Year English, Hazel 
M. Messimore's Second Year English, Dr. 
Pies Harper's Third Year English, Audrey 
Wright's English Revieio and Practice, Lionel 
Landry's English Conversation for Advanced 
Students, Clifford Prator's Repasemos nuestro 
Ingles, and Lecturas norteamericanas para prin- 
cipiantes sicramericcunos, Faye Bumpass and Pa- 
tricia Elliott's Seven Short Stones. For Brazilian 
students of English, Ned C. Fahs and Raymond 
Sayers have produced English for Americans (un- 
published) , and Chryssie Hotchkiss, Ralph Dim- 
mick, and Ralph Ingalls have assembled a manu- 
script called Ainericans Speaking. At the 
Instituto Mexicano Norteamericano de Relaciones 
Culturales in Mexico City there is currently being 
developed a series of English textbooks, based on 
the principles developed by Dr. Charles C. Fries 
of the University of Michigan. Some centers be- 
came publishers of their own textbooks, including 



' For a description of the growtli of cultural centers 
between 1940 and 194.5, see Cultural Centers in the Other 
American Republics, Department of State publication 
2503, pp. 2-4. 



October 26, 1947 



805 



several of those mentioned above, and the use of 
these texts spread rapidly to other centers. 

English teachers in the local schools were nat- 
urally attracted to the cultural centers where 
special in-service training courses were developed, 
supplemented by intensive seminars offered during 
vacation months. Associations of English teach- 
ers were formed. They found willing cooperation 
at the centers, most of which became the head- 
quarters for such associations. As a result of 
these developments, cultural centers came to be 
known as places where one could really learn to 
speak English. 

So successful was the English-language instruc- 
tion that by the end of 1946 the centers reported 
a total of 40,000 students enrolled in English 
classes. By October 1947, enrolment in some 
centers indicated an activity which had reached 
the proj^ortions of big business. In Buenos Aires, 
the total topped 4,000; in Sao Paulo, 3,500; in 
Mexico City, 2,500; in Eio de Janeiro, nearly 
2,000 were attending; in Lima, 1,500; and in 
Bogota and Caracas, approximately 1,000. 

The advantages to local business firms of having 
employees with a knowledge of English have been 
so obvious that, in more than one instance, local 
firms have paid the tuition fees of their employees 
to encourage them to study English in the cultural 
centers. For example, in April 1947 the Centre 
Colombo-Americano at Bogota reported that 234 
of its students were employees of local companies 
which defrayed all or part of their tuition fees. 
One firm in Sao Paulo in September 1946 was pay- 
ing the tuition of 20 employees who were students 
of English at the Uniao Cultural Brasil-Estados 
Unidos. In Costa Eica, a power and light com- 
pany contributed approximately $2,000 to the 
Centro Cultural Costarricense-Norteamericano 
for the privilege of sending as many as 20 em- 
ployees annually over a ten-year period for in- 
struction in the Centro. In July 1947, 30 em- 
ployees of an oil company in the Dominican Ke- 
public enrolled in beginning and intermediate 
English classes of the Institute Dominico- Ameri- 
cano at company expense. 

The local demand for English instruction has 
long since outgrown the available space of most 
cultural centers. Hundreds of eager applicants 
are turned aside evei-y time registration opens. 
In January 1947, when the classes of the English 
Language Institute at Mexico City, with accom- 

eo6 



modations for about 2,000 students, announced 
that they would accept registration to fill 300 va- 
cancies existing at that time, nearly 2,500 aspir- 
ants struggled for entrance on January 28. Ap- 
plicants started forming a line at 4 o'clock in the 
morning and, as the day advanced, the queue ex- 
tended farther and farther down the street and 
around the corner. Crowds were finally waiting 
on three different streets. Meanwhile, a few 
youths climbed over roofs and through a skylight 
of the Biblioteca Benjamin Franklin to get at the 
registration desk ahead of the line. A woman 
fainted. The police who were called to maintain 
order somehow managed to get themselves regis- 
tered for the English classes. These classes have 
recently been moved from the Biblioteca Benja- 
min Franklin to a new building at Yucatan and 
Zacatecas Streets as part of a plan to help solve 
space problems for both the library and the In- 
stitute Mexicano-Norteamericano de Eelaciones 
Culturales. 

It was inevitable in the beginning that major 
emphasis would be placed on the language-teach- 
ing programs of the centers, but as they began to 
develop cash surpluses, the centers turned their 
attention to the encouragement of activities 
which, while producing little by way of revenue, 
brought ample returns in a better understanding 
of the respective cultures of the participating peo- 
ples. Most important, perhaps, has been the at- 
tention to the book collections, composed largely 
of American books in English but including small 
collections of works of American authors in trans- 
lation and books about the United States written 
in Spanish or Portuguese. A small section con- 
taining books about the host country for the bene- 
fit of Americans is also usual. Following the pat- 
tern of the best small public libraries in the United 
States, the centers have aimed at : ( 1 ) acquiring a 
well-rounded collection of representative United 
States books, including basic reference tools; (2) 
the development of public reference service; and 
(3) the creation of an organization which would 
l^rovide, to a greater or lesser extent, a model of a 
small United States library, which could eventu- 
ally serve as a laboratory for the training of local 
librarians. To assist in the attainment of these 
aims, this Government has detailed itinerant 
American librarians to furnish advice, help or- 
ganize the collections, and train local staffs. Li- 

Departmenf of State Bulletin 



brary of Congress cards are furnished to foi'm the 
catalog, and books and library supplies are sent 
from this country. 

Considerinj;: the limitations of some of the book 
collections, the shortage of professionally trained 
library persomiel available locally, the meagerness 
of resources, and the lack of adequate physical 
plants, the aims described are admittedly lofty. 
It is still early to estimate the extent to which it 
will be generally possible to achieve the standards 
set, but prospects are encouraging, and in some 
instances the gains have been remarkable. For 
example, the Instituto Cultural Brasil-Estados 
Unidos in Rio de Janeiro reported that an average 
of 530 reference questions a month were answered 
through their library service during the first 
quarter of 1947, including an average of 85 per 
month which were handled by mail. The Uniao 
Cultural Brasil-Estados Unidos in Sao Paulo, 
Brazil, reported that a total of 9,880 reference 
questions were answered during the second quarter 
of 1946 and 12,000 for the third quarter of 1946. 
The evidence available indicated that the questions 
answered in cultural centers ranged from inquiries 
about simple geographical locations to such com- 
plex ones as a request for "the alveolar equation 
of the multiple-factor theory of the control of 
respiratory ventilation". The general develop- 
ment of book services in the cultural centers is 
indicated by the fact that the total number of 
books in the collections increased from 45,000 in 
1945 to 72,000 by the end of 1946, while, during 
the same period, total circulation figures rose from 
24,000 to 180,000.2 

During 1947, the academic offerings of the cul- 
tural centers have been augmented by a program 
of visiting American lecturers ; their services were 
made available under a project financed by the 
Division of International Exchange of Persons 
and carried out in conjunction with the Division 
of Libraries and Institutes of the Department of 
State. At the request of the centers, the Depart- 
ment sought to furnish outstanding talent to 
provide short lecture courses in such subject fields 
as American history, literature, institutions, 
architecture, political science, music, and art. 
Under this program Arthur S. Alton, professor of 
Hispanic-American history at the University of 
Michigan, lectured at the Centro Colombo- 
Americano in Bogota; Robert G. Caldwell, dean 
of humanities of the Massachusetts Institute of 



Technology and professor at the Fletcher School 
of Law and Diplomacy, was featured at the 
Instituto Cultural Peruano-Norteamericano in 
Lima; and Kenneth J. Conant, professor of 
architecture. Harvard University, was popular 
with cultural-center audiences in Brazil and 
Argentina. William D. Hesseltine, professor of 
history, University of Wisconsin, interested cul- 
tural-center students and general audiences in 
American history in San Jose, Costa Rica, 
and Guatemala City, Guatemala. Philip W. 
Powell, associate professor of history, Northwest- 
ern University, visited the Centro Ecuatoriano- 
Norteamericano in Quito, and Stanley T. Wil- 
liams, professor of American literature, Yale 
University, was sent to Mexico City to lecture 
under the auspices of the Instituto Mexicano- 
Norteamericano de Relaciones Culturales. Aaron 
Copland, eminent American musician, composer, 
and conductor, lectured to cultural-center audi- 
ences in Brazil and, under the auspices of the 
centers, talked with Brazil's outstanding musicians 
and acted as guest conductor to local orchestras. 
The centers cooperated in this progi-am by organ- 
izing classes, featuring books and visual aids which 
would supi^lement the lectures, providing the 
necessary advance publicity, and making contacts 
with appropriate institutions and jirofessional 
groups. 

In addition, the cultural centers have regularly 
availed themselves of the lecture services of other 
American scientists, scholars, diplomats, business- 
men, artists, musicians, librarians, and teachers 
traveling abroad, under both public and private 
auspices. Many distinguished Americans have 
contributed lectures in their respective specialities 
to cultural-center audiences and groups of inter- 
ested persons assembled by the centers. 

Aided by excellent libraries of phonograph 
records and specially designed amplifying equip- 
ment, representative reproductions of American 
art, collections of photographs suitable for exhibit, 
and slide and film-strip projectors, the centers 
sponsor a varied program featuring many aspects 



^ For a more comprehensive account of cultural-center 
book collections see Josephine C. Fabilli, "Libraries in 
the United States Cultural Centers in the Other American 
Republics", the Record (published by the Interdepart- 
mental Committee on Scientific and Cultural Cooperation, 
Department of State) , June 1946, pp. 9-16. 



October 26, 1947 



907 



of the culture of both the United States and the 
host country. Art exhibits, concerts, dramatic 
presentations, club activities, exhibits of United 
States books, photographs and posters, receptions, 
teas, dances, and games form a part of the cultural 
and social programs of the centers. Documentary 
films about life in the United States, furnished 
through the motion-picture unit of the United 
States Information Service of the United States 
mission, attract throngs of Latin Americans from 
all social strata and serve to correct many wrong 
impressions of the United States which are com- 
mon abroad. While records on attendance at such 
functions are incomplete, the figures available 
indicate that during the calendar year 1946 some 
360,000 persons were present at general functions 
of the centers. 

The nature and variety of the cultural and social 
programs characteristic of the cultural centers 
have been described at some length in an article 
by Leonard Ross Klein, formerly director of 
English courses at the Associacao Cultural Brasil- 
Estados Unidos in Bahia, Brazil.^ Although cul- 
tural programs at the centers are universally 
popular, not all of them attract as much attention 
as the art exhibit held at the Uniao Cultural Bra- 
sil-Estados Unidos of SiLo Paulo from April 19 
to May 5, 1947. Deciding that the public of Sao 
Paulo was surfeited with a diet of exhibitions by 
the same well-known painters, the American di- 
rector of the department of English and his staff 
prepared a preliminary plan for exhibition of the 
works of 19 young Bi-azilian painters who had 
hitherto been unknown. The idea was discussed 
with and approved by the board of directors, and 
the center prepared a striking catalog containing 
a short biography of each of the 'Wo-yos", with 
an introduction and a self-portrait by a popular 
artist and critic. Even before the center was pre- 
l^ared to advertise its plans, the Jornal de Sao 
Paulo and Didiio de Sdo Paulo broke the story, 
characterizing the forthcoming exhibition as a 
"coming major event in the art world of Sao 
Paulo". The Didrio da Noite began soliciting 

'' See "Making Friends With Onr Neighbors", Bulletin 
of the Pun American Union, September 1947. i)p. 407—173. 

■* This account is based on a report dated May 5, 1047, 
submitted by Joseph F. Privitera, American director of 
the department ot Englisli of the Uniao Cultural Brasil- 
Estados Unidos of Sao Paulo. 



the opinions of well-known artists concerning the 
exhibit and Sao Paulo's outstanding artists were 
unanimous in their praise of the Uniao's plan. 

The exhibit, consisting of 251 works of art in- 
cluding drawings, guaches, and oils, was opened 
at the Galeria Prestes Maia on April 19. Civil 
and military authorities, critics, artists, board 
members, teaching staff, and Consul General Cecil 
M. P. Cross were in attendance. On April 20, the 
newspaper Estado de Sdo Paido announced, "The 
painting exposition inaugurated yesterday at the 
Galeria Prestes Maia, under the auspices of the 
Uniao Cultural Brasil-Estados Unidos, represents 
one of this year's most important events in the 
field of plastic arts". Several days later local art 
critics published remarks which started a series 
of controversial articles, first between critics and 
the new artists and later among the critics them- 
selves. The public, their curiosity being thus 
aroused, flocked to the exhibit to the number of 
50,000 during the first two weeks. One critic pro- 
posed that the whole controversy be aired publicly, 
land this was done in a series of public forums 
which attracted about 600 people to each session. 
The press continued to praise the exhibit, and 
Geremia Lunardelli, Paulista industrialist, in- 
terested himself to the extent of offering cash 
prizes to the participating artists. On the night 
of May 5, the prizes were awarded at a special 
ceremony featuring, besides the winning artists, a 
play by one of Sao Paulo's best dramatic com- 
panies. 

By bringing to the fore the work of these 19 
artists, the Uniao helped to adopt them into the 
artistic family of Sao Paulo. As a result, several 
of them were employed as illustrators for news- 
papers and magazines and otherwise found that 
their work had commercial value. According to 
the report from Sao Paulo, wherevei- one sees the 
works of these new artists referred to, a legend is 
included pointing out that the artist was one of 
those "who took part in the exposition of the 19 
painters".^ 

Many of tlie contributions made by cultural 
centers toward inter-American understanding, 
such as the friendships which have grown from 
close acquaintance of Latins with Americans who 
have served in the classrooms and libraries of the 
centers, may be regarded as long range and not 
susceptible to measurement. However, certain 
immediate advantages of such a program to both 



808 



Department of State Bulletin 



Latin Americans and Norteainericanos provide 
the real explanation of wli}' nationals of all coun- 
tries concerned have been willing to contribute 
toward its support. 

The centers have met an insistent demand for 
high-caliber instruction in English and have 
trained an estimated 80,000 Latin Americans in 
the language in the past five years. Through the 
forming of and cooperation with national associa- 
tions of English teachers, they have kept Latin 
American teachers abreast of the latest in United 
States pedagogical techniques and materials and 
have improved the professional qualifications of 
such teachers by conducting intensive summer 
courses in English and by otherwise providing for 
their in-service training. In this way the centers' 
influence in teaching English has extended to the 
base of the national school systems and contributed 
toward making Englisli the foreign language of 
first importance in the curricula of schools 
throughout Latin America. The textbooks de- 
veloped in and published by the cultural centers 
have been of considerable interest to the various 
educational centers in the United States which are 
concerned with teaching English as a foreign 
language for the benefit of foreign students. 

Through the English-teaching program, the 
centers have improved the qualifications of em- 
ployees serving in national and American firms 
abroad, therebj' performing a service for both the 
employee and the employer. As has been pre- 
viously stated, the advantages of training in Eng- 
lish have been so obvious that industry has increas- 
ingly subsidized this training for their employees. 

Eomance-language students in United States 
high schools and colleges reap benefits from 
United States participation in the cultural centers' 
program, since the American teachers sent to the 
cultural centei's are recruited primarily from the 
ranks of Spanish and Portuguese teachers in 
United States schools and after two, three, or 
more years' service in Latin America ordinarily 
return to their former academic pursuits with 
greatly improved professional qualifications. 
They then bring to the American classrooms a 
thorough knowledge of the language they are 
teaching, plus a foreign experience which enables 
them to provide a more realistic interpretation of 
Latin America for the benefit of their students in 
this country. Far-sighted school boards and col- 
lege administrators have encouraged their teachers 

Ocfober26, 7947 

764751 — 17 i 



to participate in the program because of the ob- 
vious advantages which will accrue to their 
respective institutions. 

Through tlieir book service, the centers have 
acquainted Latin readers with the latest and best 
of American publications, popularized them 
among center clientele, and provided a fair pic- 
ture of contemporary United States life. By 
including American classics, the centers have fur- 
thered understanding of our literary heritage. 
Circulation of American books and the conduct 
of an efficient public leference service, while not 
yet an impressive feature of most centers' activi- 
ties, are potentially two of their most important 
services. 

The overseas programs of several United States 
Government agencies, particularly those partici- 
pating in the Interdepartmental Committee on 
Scientific and Cultural Cooperation, have found 
that the centers supplement and assist their ac- 
tivities in various ways. They often provide the 
language instruction which trainees in industrial 
and technical fields need before they can profit 
from training in the United States. The book 
collections in the centers sometimes provide ma- 
terials which further such training programs 
carried on locally. Moreover, the centers provide 
an audience and a platform for the professors, 
technicians, government specialists, and others 
who go to the other American republics under 
either government or private auspices. 

Latin American students who aspire to study in 
the United States or who have returned to their 
homes after studying in institutions of higher 
learning in the United States have naturally grav- 
itated to the cultural centers because the centers 
have cooperated with the local binational scholar- 
ship selection committees by screening applicants 
and administering tests which determine students' 
fitness for study in an English-speaking institu- 
tion. Publicizing available scholarships and an- 
nouncing the method of applying for them have 
been part of this function. Tlie possession of col- 
lections of college catalogs and reference books on 
public and private schools in the United States 
enables the centers to provide information and 
guidance to such students. Alumiii associations, 
comprising important groups of students who 
have studied in the United States, have been 
foi-med by many of the centers. By using the 

809 



center as headquaiters, the alumni associations 
provide a body of students who can advise their 
friends who phm to study in the United States 
and who can inali:e their experiences known to 
general cultural-center audiences. 

Americans traveling to the principal cities of 
Latin America find the centers a convenient place 
to locate information about the host countries. 
They enjoy the opportunity afforded to meet Latin 
Americans in an informal situation and to partic- 
ipate in activities which serve to interpret both 
their own and the respective Latin American 
countries. Among the most enthusiastic support- 
ers of the program of assistance to cultural cen- 
ters are private American citizens who find that 
visits to the cultural centers add materially to the 
enjoyment of their foreign travel. After observ- 
ing the varied activities sponsored by the centers, 
they are proud that they are helping to support 
such a program. While the American Embassies 
and Consulates abroad have invariably felt an ob- 
ligation to perform similar services for traveling 
Americans, they have had neither the staff nor the 
facilities to do so. Now, they find they can simply 
refer visitors to the centers, with confidence that 
such visitors will be hospitably received. 

The centers have provided an opportunity for 
members of the Foreign Service and resident 
Americans abroad to learn, or to review, Spanish, 
Portuguese, and French (in Haiti), both in social 
situations and in formal classes taught by compe- 
tent Latin American teachers at minimum cost. 

Finally, the cultural centers have afforded a 
training ground in cooperative educational and in- 
formation programs for professional Americans. 
By administering and particiimting in programs 
of the centers American personnel gain experience 
which has in individual instances been useful to 
the Department of State in filling similar posi- 
tions in the Foreign Service Keserve or Foreign 
Service Staff. Such a contribution may be in- 
creasingly important in the future as cultural and 
information jDrograms achieve maturity and as- 
sume their full role as part of the foreign policy 
of the United States. 

In the early stages of the cultural-center pro- 
gram it was doubtless feared by Americans, on one 
hand, that participation in such a program would 
mean a heavy and continued burden on the Ameri- 
can taxpayer ; and by people of the other American 
republics, on the other hand, that United States 

810 



participation would transform what were essen- 
tially local institutions into tools of an alleged 
Yankee imperialism. Time has proved both fears 
to be gi'oundless. 

Appropriations by the Congress of the United 
States increased steadily from 19il up to the fiscal 
year 1948. Meanwhile, the program was growing 
in size and importance out of all proportion to the 
increased appropriations. Also, the amount of 
funds raised from local sources abroad was in- 
creasing faster than the contributions of this 
Government. By the end of 1946, 59 percent of 
the cost of the entire operation of twenty-four 
cultural centers, three large English-teaching pro- 
grams, and vai-ious branch activities was derived 
from local sources. 

The principal sources of local income are: (1) 
fees from classes and dues for memberehip; (2) 
contributions from interested local business firms 
and individuals; (3) subsidies from the host 
governments; (4) miscellaneous receipts from 
local activities; and (5) gifts in the form of 
property or materials. Contributions from local 
business firms and from individuals have formed 
an increasingly important part of the centers' 
local fiscal structure. 

During 1947, the American Society in Mexico 
City donated $4,000 to the Instituto Mexicano- 
Norteamericano de Relaciones Culturales for the 
purpose of constructing an auditorium. The 
American Society in Santiago, Chile, has regularly 
subsidized the Instituto Chileno-Noiteamericano 
de Cultura of that city. A prominent steamship 
company made contributions to cultural centers 
in both Concepcion and Valparaiso, Chile, during 
this year. A Chilean firm also provided funds for 
the center in Concepcion. In January, three com- 
panies donated a sum aggregating almost $1,000 to 
the Centro Cultural Paraguayo-Americano in 
Asuncion. When United States military establish- 
ments in Habana, Cuba, and Recife and Fortaleza, 
Brazil, were withdrawn, military authorities do- 
nated substantial collections of American books to 
the local cultural centers in those places. Harold 
W. Soule, director of the college department of 
an American publishing company, offered his 
private collection of recordings of classical music, 
including from 1,000 to 1,500 records, to the cul- 
tural center in San Jose, Costa Rica. 

In 1947 the Congress appropriated $584,868 to 
provide assistance in the form of American per- 

Deparfment of State Bulletin 



sonnel, materials, and small grants of cash to de- 
fray operating deficits which cannot be covered 
from local sources. Reports thus far available 
suggest that by the end of 1917 nearly $800,000 
will have been derived from local sources. 

Thus, despite the hazard of unprecedented in- 
flation and the consequent sharp increase in all 
operating costs, the cultural centers have made 
gains toward self-sufSciency. At the same time, 
the cost of Washington personnel to administer 
the Department's program of assistance has been 
less than 4 percent of the amount spent from all 
sources on the program abroad. 

The sincerity of the United States Government 
in participating in a program which has served 
the interests of all concerned has been evidenced 
in many waj^s beyond mere financial cooperation. 
The assistance provided by the Department of 
State has been primarily in the form of profes- 
sionally qualified Americans who have served as 
teachers of English and as administrators of the 
cultural centers, under the direction, and as em- 
ployees, of the local binational boards of direc- 
tors. By June 1947, there were 84 such Ameri- 
cans serving in cultural centers on grants from the 
Department. They were providing effective lan- 
guage instruction, book services, and an active 
program of social and cultural activities, as well 
as sound business management. This personnel 
was supplemented by some 300 locally hired em- 
ployees. The implication is not intended that the 
contributions of individual American citizens have 
been forthcoming entirely from staffs supplied by 
the Department. The Americans and nationals 
of the boards of directors and the locally hired 
staffs have likewise served the centers' cause with 
both zeal and devotion. Individual Foreign 
Service officers and their wives have been instru- 
mental in founding some of the centers and have 
traditionally cooperated in many ways toward 
furthering the success of the centers' activities. 

Tlie energy, enthusiasm, and practicality of 
these Americans who have served the interests of 
the centers have demonstrated to the cooperating 
Latin Americans the indubitable sincerity of the 
United States, and they have dispelled whatever 
fears may have existed that United States assist- 
ance would mean infringement on local autonomy. 
Unquestionably the maintenance of harmonious 
and friendly relations in this cooperative program 
has been derived from the selfless service per- 



formed by the teachers and administrators in the 
cultural centers, the Americans on the boards of 
directors, interested members of the Foreign Serv- 
ice, and other traveling and resident Americans 
who have displayed their interest in the work of 
the centers. Therein lies the real explanation of 
why this Government has succeeded as a collabo- 
rator in the program. 

The conclusion that the program of assistance to 
cultural centers is a cooperative enterprise will be 
self-evident. It is cooperative in the sense of 
Americans and foreign nationals working to- 
gether harmoniously toward mutual ideals of 
peace and understanding. It is cooperative in the 
sense that its benefits accrue to both parties to a 
bilateral program. In a financial sense, it is co- 
operative in that support is derived from public 
and private sources in both the United States and 
in the countries of Latin America. Those persons 
who seek reciprocal institutions in the United 
States will find them in the twenty-three inter- 
American centers located in the principal cities of 
the United States, where the interest of our citi- 
zenry has been focused in organizations dedicated 
to familiarizing Americans with Latin American 
culture. These counterparts of the cultural 
centers abroad are financed at present from private 
United States sources, but the inclination of Latin 
America to come to the assistance of cultural 
centers in the United States has been demonstrated 
this year by the Argentine Government. Using 
the Instituto Cultural Argentino-Norteameri- 
cano in Buenos Aires as his pattern, Oscar Ivanis- 
sevich, Argentine Ambassador to the United States 
and representative of Argentina on the Gov- 
erning Board of the Pan American Union, initi- 
ated Spanish-language classes at the Argentine 
Embassy in Washington, D. C, under the name 
Escuela Argentina. At the school's inauguration 
on March 29, 1947, it was announced that the 
language classes would later be followed by a 
United States and Argentine cultural institute 
which would eventually sponsor a full-fledged cul- 
tural program, including the awarding of scholar- 
ships to American students for study in Argentina. 
The precedent established in this way by Argen- 
tina may well be followed by other American re- 
publics which have so often demonstrated their 
interest and good will in practical projects con- 
tributing to mutual understanding in this Hemi- 
sphere. 



Ocfofaer 26, 1947 



811 



THE ECONOMIC AND SOCIAL COUNCIL— FIFTH SESSION 



hy Kathleen Bell 



The Fifth Session of the Economic and Social 
Council of the United Nations came to a close at 
1 : 36 a.m. on Sunday, August 17, 1947. 

For a full month the Council had worked stead- 
ily to complete its heavily loaded agenda. Much 
of the success of the session was due to the im- 
partial and expeditious manner in which Jan Papa- 
nek, Vice Chairman of the Council and Repre- 
sentative of Czechoslovakia, had presided over the 
meetings. The United States was represented by 
Willard Thorp and his Dejjuty, Leroy Stinebower. 

The agenda consisted of 39 items, which included 
reports from Commissions of the Council, ap- 
proval of preparations for two international con- 
ferences, agreements with specialized agencies, 
three items submitted by nongovernmental organi- 
zations in category (a), and final preparations for 
the United Nations Appeal for Children. The 
record of the session lends weight to the closing 
words of the President of the Council when he 
stated that "the work on short-term projects is 
beginning to bring positive results and machinery 
set up for long-term programmes is beginning to 
function". 

One of the major functions assigned to the Eco- 
nomic and Social Council by the Charter is the 
coordination of the activities of the "specialized 
agencies through consultation with and recom- 
mendations to such agencies". To aid in the dis- 
charge of this function the Charter further pro- 
vides that the Economic and Social Council may 
enter into agreements with the specialized agen- 
cies. Nine agreements have so far been approved 
by the Economic and Social Council, five of them 
at the Fifth Session alone: the agreements witli 
the Universal Postal Union, the International 
Telecommunication Union, the Woi'ld Health Or- 
ganization, the International Bank for Recon- 
struction and Development, and the International 
Monetary Fund. The Council Committee on Ne- 



gotiations with Specialized Agencies has held over 
50 meetings to negotiate all these agreements. 

There was some urgency in concluding the 
agreements with the Universal Postal Union and 
tlie International Telecommunication Union at the 
Fifth Session of the Council, since the Plenipoten- 
tiary Congress of the International Telecommu- 
nication Union and the General Congress of the 
Universal Postal Union, which met this summer 
in Atlantic City and Paris, resfDectively, convene 
only at five-year intervals. With this in mind, 
the Council sent its Negotiating Committee to 
Paris in June 1947 to work out the agreement with 
the Universal Postal Union. For this negotia- 
tion, as well as those held later at Lake Success, 
Dr. Papanek acted as President, while Walter 
Kotschnig, Adviser to the United States Repre- 
sentative, served as the United Nations negotiator 
and rap25orteur. 

The agreements arrived at with these two or- 
ganizations differ in form though not in sub- 
stance from those concluded earlier with other 
specialized agencies. The articles on budget and 
finance and on personnel arrangements are less 
detailed, and the articles in earlier agreements 
on relations with the various organs of the United 
Nations are condensed in one article. In the Ne- 
gotiating Committee as well as in the Council, the 
Norwegian Representative objected to these differ- 
ences. He introduced a resolution in the Council 
approving the agreement but noting "the special 
circumstances under which these agreements were 
concluded which made it impossible for the time 
being to reach agreement in more close conformity 
with otlier agreements with Specialized Agencies," 
and asking that they be revised at the earliest pos- 
sible date. In opposition it was pointed out that 
it was never expected that the agreements with all 
specialized agencies should be identical. The In- 
ternational Telecommunication Union and the 
Universal P.ostal Union are organizations with 



812 



Deparfmenf of Sfofe Bullefin 



highly technical functions, small staffs, and ac- 
cordingly small budgets, making unnecessary 
lengthy articles on budget and finance and on per- 
sonnel arrangements. The principles established 
by the Charter governing the relationships with 
specialized agencies are fully safeguarded in the 
agreements. The Norwegian resolution was fi- 
nally carried, omitting, however, the clause re- 
questing revision at an early date. 

The negotiation with the World Health Organi- 
zation was conducted with representatives of the 
Interim Commission and will have t,o await hnal 
approval by the First Session of the General Con- 
ference of the World Health Organization. This 
negotiation, based to a large extent on the Inter- 
national Labor Organization agreement, was con- 
cluded in the record time of three hours, with 
negotiat.ors of both sides readily accepting minor 
amendments and compromises. 

The agreements with the International Bank for 
Reconstruction and Development and the Interna- 
tional Monetary Fund posed special problems. 
The negotiators for the Bank and the Fund, Mr. 
McCloy and M. Gutt, emphasized that their organi- 
zations must at all costs be protected against any 
political jDressures. This was particularly impor- 
tant for the Bank as it was considering specific 
loans. It was stated that unless the independence 
of the Bank was recognized in this respect, the 
organization would have difficulties in placing its 
securities on the market. Both negotiators also 
emphasized that they could not accept any budget- 
ary control on the part of the United Nations and 
pointed out that both organizations finance their 
administrative expenses from the proceeds of oper- 
ations and not by way of contributions from 
member states. 

All parties recognized, in line with a legal opin- 
ion delivered by the Assistant Secretary-General 
for Legal Affairs, that under articles 58, 60, 63(2) 
and 64(1), the United Nations has as one of its 
principal functions the task of making recommen- 
dations to specialized agencies. The Economic 
and Social Council accepted, however, in article 
IV (3) of the agreement with the Bank, that the 
"United Nations recognizes that the action to be 
taken by the Bank on any loan is a matter to be 
determined by the independent exercise of the 
Bank's own judgment in accordance with the 
Bank's articles of agreement. The United Na- 



tions recognizes, therefore, that it would be sound 
policy to refrain from making recommendations 
to the Bank with respect to particular loans or 
with respect to terms or conditions of financing by 
the Bank". 

With regard to budgetary matters, article X, 
paragra^jh 3, of the agreements reads in part: 
"the United Nations agrees that, in the interpre- 
tation of paragraph 3 of Article 17 of the United 
Nations Charter, it will take into consideration 
that the Bank (Fund) does not rely for its annual 
budget ujDon contributions from its members and 
that the appropriate authorities of the Bank 
(Fund) enjoy full autonomy in deciding the form 
and content of such budget". This formulation 
does not preclude recommendations on the part 
of the General Assembly regarding administrative 
budgets of the Bank and the Fund but makes them 
unlikely. 

These particular articles and certain minor 
divergencies from the model agreements with 
specialized agencies were vigorously opposed by 
the Representatives of Norway and the Soviet 
Union on the grounds that they are contrary to 
the letter and spirit of the Charter. They empha- 
sized the need for budgetary coordination by way 
of recommendation on the part of the General 
Assembly. Notwithstanding this opposition, it 
was the view of the majority of the Council that 
the agreements were in conformity with the Char- 
ter; they were approved by a vote of 13 in favor, 
3 against, and 2 abstentions. The Representatives 
of Norway and the Union of Soviet Socialist Re- 
publics indicated that they would raise the issue 
again before the General Assembly, which must 
approve the agi'eements before they can come into 
force. 

In the economic field two of the vital items dis- 
cussed were the preparations for the United Na- 
tions Conference on Trade and Employment and 
the reports of the two regional Commissions, the 
Economic Commission for Europe (Ece) and the 
Economic Commission for Asia and the Far East 
(Ecate). 

The preparations for the long-awaited Ito con- 
ference have finally been completed with the 
Council consideration of the interim rejjort from 
the Preparatory Committee of the United Nations 
Conference on Trade and Employment. This 
Committee was established by the Council at its 



October 26, 1947 



813 



First Session and was chai-ged with the task of 
making preparations for a United Nations Confer- 
ence on Trade and Employment. The Prepara- 
tory Committee met in Geneva from October 15 
to November 26, 1946, and again from April 10 
to August 15, 1947. The Committee's report cov- 
ered the proposed agenda, date and place, invi- 
tations, and voting rights to be given to non-United 
Nations members. 

At Geneva, the Cuban Government extended an 
invitation to hold the conference in Habana; tlie 
Council, noting that this generous offer included 
an "offer of conference facilities and financial as- 
sistance to meet the additional costs to the United 
Nations of holding the Conference away from 
headquarters", resolved that the conference should 
be held in Habana beginning November 21, 1947. 
The agenda for the conference as approved by the 
Council is based upon the various chapters of the 
draft charter. It includes items on employment 
and economic activity, economic development, gen- 
eral commercial policy, restrictive business prac- 
tices, and intergovernmental commodity arrange- 
ments, together with provisions relating to or- 
ganization, membership, and other miscellaneous 
matters. 

The question of invitations and voting rights 
caused considerable discussion. The Preparatoi'y 
Committee had recommended that, in addition to 
members of the United Nations, the following 
countries be invited to participate, with full voting 
rights, in the work of the conference: Albania, 
Austria, Bulgaria, Eire, Finland, Hungary, Italy, 
Portugal, Rumania, Switzerland, Transjordan, 
and Yemen. It was further recormnended that 
"provision should be made for the attendance of 
persons qualified to represent the appropriate au- 
thorities in Germany, Japan and Korea" and sepa- 
rate customs territories such as Burma, Ceylon, 
and Southern Rhodesia. 

The Council accepted the recommendations of 
the Preparatory Committee on the issuance of the 
invitations. The Representative from India re- 
qtiested that Pakistan and the Republic of Indo- 
nesia also be sent invitations. The Council ap- 
proved the proposal, although the Economic Com- 
mittee of the Council had reconunended that no 
direct invitation be issued to the Republic of In- 
donesia. The Council, furthermore, decided to 
send invitations to the specialized agencies and 

814 



other appropriate intergovernmental organiza- 
tions and to nongovernmental organizations in 
category (a). 

The United Kingdom strongly supported the 
granting of voting rights to non-United Nations 
members, stating that the proposed conference was 
a fimctional one dealing with practical matters 
leading to the acceptance of important obligations. 
The success of the trade conference depended upon 
the fullest possible coverage of the world economy. 
Mr. Stinebower, the Deputy United States Repre- 
sentative, countered that the granting of the right 
to vote would break the precedent established in 
the United Nations Health Conference. He did 
not think that there was validity to the argument 
that absence of voting rights would cause lack of 
interest. Since the conference was to be called 
the United Nations Conference on Trade and Em- 
ployment, there should be some distinction between 
members of the United Nations and non-United 
Nations members. It was made perfectly clear, 
however, that the United States approved of non- 
United Nations members' becoming full-fledged 
members of the Ito upon adhering to the charter. 
A resolution proposed by Canada stating that "vot- 
ing rights shall be exercised only by United Nations 
Members attending the Conference" was finally 
accepted. 

The report of the Economic Commission for 
Europe covered its first two sessions (May 2-14 
and July 5-16, 1947) . In the course of these meet- 
ings, the Commission had adopted its rules of pro- 
cedure, which provide for inclusion of Russian as 
a working language and for special consultative 
arrangements for nongovernmental organizations. 
It had taken steps toward the termination of the 
European Coal Organization, the European In- 
land Transport Organization, and the Emergency 
Economic Committee for Europe and the transfer 
of the functions of these organizations to the Eco- 
nomic Commission for Europe. To this end the 
Commission had decided, subject to the approval 
by the Economic and Social Council, to set up a 
coal committee and an inland-transport committee 
of its own, as well as a niunber of other committees 
and subcommittees dealing with electric power, 
industry, and materials, including timber, ferti- 
lizer, and alkalis, and a jDanel on housing prob- 
lems. The Commission had furthermore instructed 
its Executive Secretary to consult with the Allied 

Departmenf of Sfafe Bulletin 



Control Council concerning the establishment of 
liaison in Berlin and with the control authorities 
concerned regarding the organizational arrange- 
ments necessitated by the transfer to the Commis- 
sion of the activities of the Eco, Eece, and 
EciTO. In the discussion of the report, the Rep- 
resentative of the Union of Soviet Socialist Repub- 
lics objected strongly to this instruction to the 
Executive Secretary for the establishment of a liai- 
son with the Allied Control Authorities and also 
wanted it made clear that the references to inland 
transport should not be interpreted to include the 
"internal European waterways of international 
significance"'. These two objections were not for- 
mally upheld bj' the Council, which approved the 
work thus far accomplished by the Commission 
and decided to transmit to the Commission the 
views expressed by members of the Council. 

The Economic Commission for Asia and the Far 
East, the second regional commission to be estab- 
lished by the Council, reported on its first session, 
which met in Shanghai, and the work accomplished 
by the Committee of the Whole, which met at Lake 
Success. The Ecafe, like the Ece, was estab- 
lished to aid in the reconstruction of war-devas- 
tated countries and for the period of reconstruc- 
tion. The Commission recommended that a study 
be made of the reconstruction needs of the coun- 
tries within the geographic scope of the Commis- 
sion and of the sources from which the require- 
ments of these countries could best be met. The 
Committee of the Whole recommended to the 
Council that certain territories might be accepted 
as associate members of the Commission if an 
application was presented "by the member respon- 
sible for the international relations of such terri- 
tory". Associate membership would entitle the 
representatives of the territories to participate 
without vote in the work of the Commission and 
the Committee of the Whole and would allow them 
to be "appointed to and hold office on any sub- 
ordinate body established by the Commission". 
The Council accepted this recommendation and 
"requested Members of the Commission concerned 
to forward such applications". In addition the 
Council extended the terms of reference of the 
Commission to allow it "to make recommenda- 
tions on any matters within its competence di- 
rectly to the Govermnents of Members or Asso- 
ciate Members concerned. Governments admitted 



in a consultative capacity and the Specialized 
Agencies concerned." It also authorized the Com- 
mission to consult with the representatives of the 
respective control authorities in Japan and Korea. 

Following the discussion of the two regional 
commissions came a proposal by the Representa- 
tive of Chile to create a Commission for Latin 
America. This Commission, unlike the other two 
already established, would not be a commission 
for assistance in reconstruction but rather a body 
to help in the economic development of the Latin 
American countries. The United States Delega- 
tion suggested that the establishment of this com- 
mission should wait upon the outcome of the Ninth 
International Conference of American States con- 
vening in January 1948 in Bogota, which is to 
study the entire inter-American system with a 
view to its reorganization. Consequently, a reso- 
lution was passed creating an ad hoc committee 
consisting of Chile, China, Cuba, France, Lebanon, 
Peru, the United Kingdom, the United States, and 
Venezuela to study the factors bearing upon the 
creation of such a commission and to consult with 
the interested agencies and the Bogota conference. 

The proposal to establish this commission and 
the hint that there might eventually be a proposal 
to establish one in the Middle East led the New 
Zealand Representative to jDropose a resolution 
requesting the Economic and Employment Com- 
mission to examine and report on the general ques- 
tions involved in the creation of regional commis- 
sions. It was argued that the Council should 
decide to establish commissions on a functional or 
on a regional basis but not on both, as their activi- 
ties would invariably .overlap. The Council ap- 
proved this proposal and expects to consider the 
report of the Economic and Employment Com- 
mission at its session in July 1948. 

Two other Commission reports were before the 
Council. The first was submitted by the Fiscal 
Commission, reporting for the first time to the 
Council. It outlined an elaborate program of 
work which in all its major aspects was endorsed 
by the Council. The Secretary-Genei-al was re- 
quested inter alia to build up a fiscal information 
service, including information on national budgets, 
Government revenue, appropriations and expendi- 
ture, public debt, taxation problems, and other sig- 
nificant facts and trends relative to public finance ; 
to arrange for the publication of a Public Finance 



October 26, 7947 



815 



Survey, 1937-1947, and of a volume, Public Debt, 
1914-1947, continuing the work of the League of 
Nations in these fields ; and to collect data on inter- 
national tax problems, including discriminatory 
taxes imposed upon foreigners. 

The report of the Economic and Employment 
"Commission was subjected to severe criticism as 
being "too academic" and "full of generalizations"'. 
The Representative of the Union of Soviet Social- 
ist Republics, supported by several other members 
of the Council, complained that the report did not 
do justice to the needs of underdeveloped and of 
smaller countries. The Representatives of the 
Netherlands and Norway asked that the Commis- 
sion give consideration to concrete problems such 
as the existence of bottlenecks to reconstructipn. 
After a prolonged, inconclusive discussion, the 
Council decided to "take note" of the report and 
referred to the Commission the comments made 
in the course of the discussion. 

Although the United States Delegation was pre- 
pared for an extended discussion, the question of 
international control of oil resources, an item pro- 
posed by the International Cooperative Alliance 
over strong objections from some delegations, was 
merely noted by the Council. Other items in the 
economic field which were included in the agenda 
were the report of the Timber Conference, con- 
vened by the Food and Agriculture Organization, 
and the reports of the Secretary-General on relief 
needs after the termination of Unera, on the 
financial needs of devastated countries, on the re- 
construction of Ethiopia and other devastated 
areas not included in the report of the Temporary 
Subcommission, and on expert assistance to mem- 
ber governments. These were largely progress 
reports or reports which did not call for any spe- 
cific action by the Council, and the Council, 
therefore, simply took note of them. 

The report of the Meeting of Experts on Pass- 
port and Frontier Formalities, another item on the 
agenda, recommended measures to reduce, sim- 
plify, and unify the passport and frontier formali- 
ties of the vai'ious nations. The Council, before 
taking any further steps, requested the Secretary- 
General to make a comparative analysis of the re- 
lations between the practice of member govern- 
ments and the recommendations of the Meeting 
of Experts and of the extent to which members 
have indicated willingness to change their present 

816 



practices to conform with the recommendations of 
the experts. 

Since the Council concluded that its agenda was 
too long and other items more pressing, considera- 
tion of the universal adoption of a world calendar, 
an international metric system of weights and 
measures, and the decimal system of currencies and 
coinage was postponed "for the time being". 

As on the economic side, one of the most im- 
portant questions the Council considered in the 
social field was the preparation for an interna- 
tional conference — the Conference on Freedom of 
Information. As in the discussions on the prep- 
aration for the Conference on Trade and Employ- 
ment, one of the problems was the qviestion of invi- 
tations and voting rights for non-United Nations 
members. Following a consistent policy, the Coun- 
cil decided that voting rights should be exercised 
only by members of the United Nations and that 
invitations should be issued to the same list of 
countries not members of the United Nations as 
was approved for the Conference on Trade and 
Employment, with the exception of the Republic 
of Indonesia. 

With regard to the time and place of the con- 
ference, the Council had to inform the General 
Assembly that it was not possible to complete prep- 
arations in time to hold it in 1947 as originally 
recommended by the General Assembly. It was 
recommended that the Subcommission on Freedom 
of Information and of the Press continue its prep- 
arations for the meeting, which will begin March 
23, 1948, in Geneva. 

The report of the Subcommission was made 
directly to the Council, rather than through the 
Commission on Human Rights, because of the ur- 
gency of preparations. The Representative of the 
U.S.S.R. took sharp issue with the report and par- 
ticularly the jjroposed agenda for the Conference 
on Freedom of Information, which he found quite 
inadequate because it failed to emphasize the char- 
acter and tasks of a responsible press. He sub- 
mitted a substitute statement and agenda, which, 
however, were rejected by the Council, and the dis- 
cussion continued on the Subcommission report. 
The Council approved the organization of the 
forthcoming conference into a Genei'al Committee 
and four principal committees and requested the 
Secretary-General in cooperation with Unesco and 
other intergovernmental organizations in the field 

Department of State Bulletin 



to prepare the necessary documentation on the basis 
of the provisional agenda. Tlie provisional agenda 
as approved by the Council includes a general dis- 
cussion of the principles of freedom of informa- 
tion; a consideration of certain fundamental prin- 
ciples to which media of information should have 
regard in gathering, transmitting, and dissemi- 
nating news and information ; measures to facili- 
tate the gathering of information and the inter- 
national transmission of such information; meas- 
ures concerning the free publication and reception 
of information ; consideration of the drafting of a 
charter of rights and obligations of the media of 
information; problems involved in the establish- 
ment of goveriunental and semigovernmental in- 
formation services; and the implementation of the 
recommendations of the conference. 

In adopting this agenda the Council supported 
the American contention that the major accent in 
the conference should be placed on the promotion 
of the free interflow of news rather than on the 
establislunent of governmental controls over the 
press which the Soviet group in the Council sought 
to foster with a view to curbing "excesses" of the 
press. 

Three items on the agenda of the Comicil dealt 
with matters arising out of the liquidation of 
Unril\. The first was a progress report by the 
International Children's Emergency Fund, which 
was set up by the General Assembly in December 
1946 to continue some of the child-feeding opera- 
tions and related activities of Unrra. The report 
indicated that the International Children's Emer- 
gency Fund (Icef) had completed its organiza- 
tional stage and was entering upon active opera- 
tions. To carry on its activities substantial funds 
from private sources will be required in addition 
to voluntary contributions made by governments. 

In this connection the Council devoted consider- 
able time to the discussion of a second item on the 
agenda, the "one day's pay proposal". It ap- 
proved the broadening out of the original "one 
day's pay proposal" to a "United Nations appeal 
for children". The active fund-raising will not be 
undertaken by the United Nations Secretariat but 
by national conamittees, which in the case of most 
countries will be set up especially for this purpose. 
The Secretary-General was authorized to invite 
distinguished individuals representing various 
racial, religious, cultural, and geographical groups 



to act as sponsors of the appeal. In addition, 
there are to be established two international com- 
mittees to aid in the campaign. The first is to be 
composed of the chairman, or one other member, 
of each of the national committees as established 
and of one representative each of the nongovern- 
mental organizations in category {a) willing to 
take an active part in the campaign, plus three 
additional members to be appointed by the Secre- 
tary-General. The second committee is to be a 
special committee set up by the Economic and 
Social Council, composed of seven of the Council 
members to assist the Secretary-General between 
sessions of the Council in the practical application 
of the Council's policies relating to the United 
Nations appeal for children. The following seven 
members of the Council were elected: Canada, 
Chile, China, Czechoslovakia, France, New Zea- 
land, and the United States. 

The third in this group of items dealt with the 
Advisory Social Welfare Services, which were 
initiated at the end of 1946 with a view to con- 
tinuing on an urgent basis some of the functions in 
the social-welfare field which Unrka had carried 
on and which were in danger of lapsing. The pro- 
gram includes the provision of experts on social 
welfare for countries seeking expert advice, the 
training of social-welfare workers and tlie provi- 
sion of fellowships for this purpose, demonstra- 
tions and equipment in prosthetics and vocational 
rehabilitation, and the distribution of publications 
on social-welfare matters. The General Assembly 
had provided for these purposes an item of $670,- 
000 in its 1947 budget. Various Council members, 
in reviewing the achievements made under this 
program, expressed some criticism of the slow start 
of activities under the program, while others ex- 
pressed some doubt as to whether the Council and 
the Secretariat could legitimately continue to be 
responsible for an "operating" program. In the 
end, the Council requested its Social Commission to 
review the report of the Secretary-General on this 
matter and to make recommendations concernnig 
future programs and the best methods of financ- 
ing them. It requested the Secretary-General to 
review his budgetary provisions for the continua- 
tion of the Advisory Social Welfare Services 
($750,000 for 1948) in the light of these recom- 
mendations. 

Two items of the agenda dealt with matters 



Ocfober26, 1947 



817 



which may eventually be embodied in interna- 
tional conventions. At its Fourth Session, the 
Council had referred the item on trade-union 
rights (safeguarding of freedom of association), 
proposed by the World Federation of Trade 
Unions, to the International Labor Organization 
for study. At the Fifth Session of the Council, 
the International Labor Organization submitted 
a report stating the fundamental principles on 
which freedom of association must be based and 
informing the Council that the embodiment of 
these principles in a convention would be consid- 
ered at the 31st Conference of the Ilo to be held 
in June 194S. In addition the question of inter- 
national machinery for the application of these 
conventions is to be studied by tlie Governing 
Body of the Ilo. Over the objections of the rep- 
resentatives of the World Federation of Trade 
Unions, who felt that the problem was too urgent 
to be considered in this slow manner, the Council 
approved the work accomplished and proposed by 
the Ilo and requested the Secretary-General to ar- 
range for cooperation between the Ilo and the 
Commission on Human Rights in the study of 
these problems. 

In addition the Council considered the question 
of the draft convention on the crime of genocide 
whicli the General Assembly had referred to the 
Council. A draft convention drawn up by the 
Secretariat had not been circulated in sufficient 
time for consideration by goveriunents or the Com- 
mission on Human Rights. Without such con- 
sideration the Council did not feel competent to 
undertake the drafting of a convention at this 
session and reported to the General Assembly that 
it would "proceed as i-apidly as possible with the 
consideration of the question, subject to any fur- 
ther instructions by the General Assembly". 

Continuing discussions begun at the Fourth 
Session regarding the use to be made of commu- 
nications and complaints received by the Com- 
mission on Human Rights and the Commission 
on the Status of Women, the Council decided over 
strenuous Soviet opposition that sucli communi- 
cations deserved consideration even though the 
Commissions had no power to take any action in 
regard to complaints concerning human rights or 
the status of women. The Representative of the 
Union of Soviet Socialist Republics held that any 
such communications should be disregarded, while 



the United States Representative strongly urged 
that a study of such communications would greatly 
aid the Commissions in their work and would lend 
reality to their activities. The Council approved 
procedures for the handling of such communica- 
tions which will attain these ends while protecting 
the authors. 

Some minor items on the agenda were dealt with 
expeditiously. The Council api^roved Unesco's 
consideration of Hungary's application for mem- 
bership, the transfer of certain United Nations 
assets to the World Health Organization, and the 
transfer to the United Nations of certain powers 
and functions exercised by the League of Nations 
under the conventions on traffic in women and cliil- 
dren and on obscene publications. It referred the 
item on the protection of migrant and immigrant 
workers, submitted by the American Federation 
of Labor, to the International Labor Organization 
for study. 

No meeting of the Council is complete without 
a discussion of procedures and the consideration 
of relationships with nongovernmental organiza- 
tions. In discussing miiform rules of procedure 
for the commissions, the United States lost a battle 
it has been fighting since commissions and sub- 
commissions first were established. It has been 
the position of the United States that, as far as 
possible, members of commissions and subcommis- 
sions should be experts serving in their individual 
capacities rather than government representatives. 
This concept did not prevail when the commis- 
sions were first set up. Members of subcommis- 
sions, however, were elected as experts. In estab- 
lishing the new uniform rules of procedure the 
Council decided over United States objections on 
the insertion of a new rule allowing an alternate 
to a subcommission member to be "designated by 
the member with the consent of liis national gov- 
erinnent and in consultation with the Secretary- 
General" and to serve with the same status as the 
member, including the right to vote. This evi- 
dently means that from here on members of sub- 
commissions will also essentially be representatives 
of their governments rather than persons serving 
in tlieir individual capacity. 

In discussing the program for lOiS the Proce- 
dures Committee did not have sufficient time to 
arrive at final conclusions. It was, however, de- 
cided that the Sixth Session of the Council should 



818 



Department of State Bulletin 



meet nt Lake Success in February 19-18 and the 
Seventh Session in Geneva in July 191:8. The re- 
mainder of the schedule of conferences and meet- 
ings of commissions and subcommissions was re- 
ferred to an interim committee set up to study the 
question further. 

At each session of the Council there are new 
applications for consultative status under article 
71 from both international and national organiza- 
tions. Acting on an application of the Interna- 
tional Organization of Industrial Employers, the 
Council approved this Organization for consulta- 
tive relationship in category (a). Eighteen inter- 
national organizations were admitted to consulta- 
tive status in category (b) and four to the same 
status subject to the exclusion of their Spanish 
affiliates. The World Federation of Democratic 
Youth and the Women's International Democratic 
Federation were denied their requests for transfer 
from category (h) to category (a). For the first 
time and over the strenuous objection of the Union 
of Soviet Socialist Republics, national organiza- 
tions were considered. Following the policy laid 
down by the Council "that national organizations 
should normally present their views through their 
respective governments", the Council admitted 
only four, the Howard League for Penal Reform, 
the National Association of Manufacturers, the 
Carnegie Endowment for International Peace, and 
the All India Women's Congress. These organi- 
zations, it was felt, were not represented through 
organizations already granted consultative status 
and could bring to the Council and its commissions 
points of view and experience not otherwise 
represented. 

The World Federation of Trade Unions con- 
tinued its campaign for additional privileges, this 
time asking for the right to call for a special ses- 
sion of the Economic and Social Council under the 
same conditions as the specialized agencies and to 
participate in the deliberations of the Council con- 
cerning the adoption of any agenda item it might 
propose and in the examination of that item. It 
also asked that the Council, prior to reference of 
any question to a commission or specialized agency, 
give directives to that body. All these requests 
were rejected except that the Council gi-anted to all 
organizations in category (a) which had succeeded 
in placing an item on the agenda of the Council 
the right to make an introductory statement of an 

Ocfober 26, J 947 



expository nature before the Council. Such an 
organization may furthermore be invited by the 
President of the Council, with the consent of the 
Council, to make an additional statement in the 
course of discussion for the purposes of clarifica- 
tion. With regard to the third request of the 
Wrru, it was pointed out that "the way in which 
the Council deals with any question on its agenda 
is in each case entirely within the competence of 
the Council". 

In the closing meeting Dr. Papanek reempha- 
sized, as had Sir Eamaswami Mudaliar before him, 
that "the prime function of the Council is to co- 
ordinate the activities and policies of the Special- 
ized Agencies". The Council was not created to 
be an ojDerating agency. The specialized agencies 
and possibly the regional commissions established 
by the Council or the commissions are the organiza- 
tions which in the final analysis are expected to 
produce concrete results. It is for the Economic 
and Social Council to channel their activities to 
get the quickest and most effective action. With 
the conclusion of the nine agreements with special- 
ized agencies, the stage is now set for a thorough 
review of this function by the Council at the forth- 
coming session in February 1948. 

U. N. Documents — Continued from page 803 

Amendment to the United States Proposal (Docu- 
ment A/C.1/191) Submitted by the Delegation of Cuba. 
A/C.1/209, October 9, 1947. I p. mimeo. 

Amendments to the United States Proposal (Docu- 
ment A/C.1/191) Submitted by the Delegation of Co- 
lombia. A/C.1/210, October 9, 1947. 2 pp. mimeo. 

Amendment to the United States Proposal (Docu- 
ment A/C.1/191) Submitted by the Delegation of 
Canada. A/C.1/211, October 10, 1047. 1 p. mimeo. 

United Nations Special Committee on Palestine. Report 
to the General Assembly. Vol. II. A/364, Add. 1, 
September 9, 1947. iii, 64 pp. printed. [75^.] 

Security Council 

Official Records of the Security Council, First Year, Second 
Series. Supplement No. 10 A. September 4, 1947. 
28 pp. printed. [400.] 

Official Records of the Security Council, Second Year. No. 
36. October 2, 1947. 13 pp. printed. [100.] 

Trusteeship Council 

Report to the Trusteeship Council by the United Nations 
Mission to Western Samoa. T/46, September 24, 1947. 
78 pp. mimeo. 

Annexes to the Report. T/46/ Add. 1, September 25, 

1947. ii, 102 pp. mimeo. 

819 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



The Problem of the Independence of Korea ' 



LETTER FROM THE UNITED STATES REPRESENTATIVE ADDRESSED TO THE SECRETARY-GENERAL 

AND ENCLOSED DRAFT RESOLUTION 



I have the honor to refer to the facts that on 
September 17, 1947 the United States Secretary of 
State announced that the United States was pLac- 
ing the problem of Korean Independence befoi-e 
the General Assembly and on September 23, 1947, 
the General Assembly = voted to place that prob- 
lem upon its agenda. On September 26, 1947, the 
Chief Soviet Delegate on the Joint United States- 
U.S.S.R. Commission meeting in Seoul, Korea, 
made the following statement, in translation : 

"Therefore, the Soviet Delegation considers that 
it is possible to afford the Koreans an opportunity 
to form a government by themselves without the 
aid and participation of the Allies under the condi- 
tion of withdrawing the American and Soviet 
troops from Korea." 

Tlie United States Government desires to take 
any practicable stejj which will further the speedy 
establishment of a truly independent Korea. The 
only concern of this Government is to make certain 
that its responsibilities to the Korean people and 
to the United Nations are properly carried out. 
It will be recalled that after negotiations in the 
Joint Commission had reached a stalemate the 
United States Government proposed that the ques- 
tion of forming a government for Korea be dis- 
cussed in Washington by representatives of all 
powers adhering to the Moscow Agreement on 
Korea, China, the United Kingdom, the U.S.S.R. 
and the United States. China and the United 



^ U.N. doc. A/C.l/218, Oct. 17, 1947. Thi.s document was 
released to the press by the Department of State on Oct. 
17, 1947. 

' Bulletin of Sept. 28, 1947, p. 618. 

820 



Kingdom accepted this suggestion but the U.S.S.R. 
did not. It was only after this that the matter 
was presented to the United Nations. It is be- 
lieved that in as much as the General Assembly 
has already voted to consider the problem of 
Korean independence, its attention should be 
called to the most recent Soviet proposal, referred 
to above, as well as the suggestions for a solu- 
tion of the problem which the Secretary of State 
said the United States Government would be pre- 
pared to advance. With these proposals before it 
the General Assembly will, it is hoped, be able to 
recommend measures for an orderly transition 
from the present systems of government in north 
and south Korea to an independent, united Korean 
government and the consequent speedy withdrawal 
of all occupying forces. 

There is therefore transmitted herewith a Reso- 
lution which contains the suggestions the United 
States Delegation will submit for the considera- 
tion of Committee 1 of the General Assembly when 
the problem of Korean independence comes before 
that body. It is considered that an arrangement of 
the nature indicated in this Resolution should make 
l^ossible the early establishment by the Korean 
people themselves of their own government and 
the withdrawal of all Soviet and United States 
armed forces from Korea. 

It is requested that copies of this letter together 
with its enclosure be circulated to the various dele- 
gations to the General Assembly for their informa- 
tion. 

Accept [etc.] 

Warren R. Austin 

Department of State Bulletin 



DRAFT RESOLUTION ON KOREA 



The General Assembly 

Recogxizing the urgent and rightful claims to 
independence of the people of Korea ; 

Having in mind that it is one of the purposes of 
the United Nations to develop friendly relations 
among nations based on respect for the principle 
of equal rights and self-determmation of peoples ; 

Having noted the international obligations 
undertaken with respect to Korea, including the 
Cairo Declaration of December 1, 1943, in which 
China, the United Kingdom and the United States 
stated their determination that in due course Korea 
shall become free and independent, the Potsdam 
Proclamation of July 26, 1945, in which China, 
the United Kingdom and the United States re- 
affirmed the terms of the Cairo Declaration and 
to which the Union of Soviet Socialist Republics 
adhered upon entering the war in the Pacific, and 
the Moscow Agreement of December 27, 1945, in 

whicli the United Kingdom, the Union of Soviet 
Socialist Republics and the United States, with 
the adherence of China, provided that there shall 
be set up a provisional Korean democratic gov- 
ernment with a view to the reestablishment of 
Korea as an independent state; 

BELIE^^NG that the national independence of 
Korea should be reestablished and all occupying 
forces should be withdrawn from Korea at the 
earliest practicable date; 

To this end, Recommends that the occupying 
powers hold elections in their respective zones not 
later than March 31, 1948, under the observation 
of the United Nations, as the initial step leading 
to the creation of a National Assembly and the 
establishment of a National Government of Korea 



in conformity with the procedure set out in tlie 
Annex to this Resolution. 

Further recommends that immediately upon the 
establishment of the National Government of 
Korea referred to above, that Government will 
constitute its own national security forces and will 
arrange with the occupying powers for the early 
and complete withdrawal from Korea of the armed 
forces of the Union of Soviet Socialist Republics 
and the United States ; 

Resolves that the responsibilities assumed by the 
United Nations under this Resolution should be 
discharged by a United Nations Temporary Com- 
mission on Korea, consisting of the representatives 
of [names of states]. This United Nations Tem- 
porary Commission on Korea shall (1) be present 
in Korea during the elections in each zone with 
the right of freedom of travel and observation 
throughout all of Korea, (2) be available for such 
consultation as may be appropriate in connection 
with the elections, the organization of the National 
Assembly, tlie formation of the National Govern- 
ment and the conclusion of Agreements for the 
withdrawal of the occupying forces, (3) report to 
the General Assembly or if in its judgment de- 
velopments so require to any competent agency of 
the Assembly with respect to its activities under 
the terms of this resolution, and make any recom- 
mendations that it may wish concerning further 
United Nations action in maintaining the inde- 
pendence of Korea ; 

Calls upon the Member States concerned to af- 
ford every assistance and facility to the United 
Nations Temporary Commission on Korea in the 
fulfillment of these responsibilities. 



ANNCX 



Recommended Procedure for the Holding of Elections and the Establishment 
of a National Government of Korea 



(1) The elections to be held by the occupying 
powers in their respective zones not later than 
March 31, 1948, shall be for the i^urpose of choosing 
representatives to a National Assembly. The 
number of representatives elected to the National 
Assembly from each zone shall bear the same pro- 
portion to the total membership of the National 
Assembly as the population of that zone bears to 



the total population of Korea. Subject to this 
principle, the number of representatives to be 
elected from each zone shall be determined by the 
United Nations Temporaiy Cominission on Korea 
in consultation with the occupying powers. 

(2) As soon as possible after the elections the 
National Assembly of Korea shall meet and form 
a Government and shall notify the United Nations 



Ocfober26, 1947 



821 



THE UN/TED NATIONS AND SPEC/Al/ZED AGENCIES 

Temporary Commission on Korea of the formation 
of this Government. 

(3) Upon notification to tlie United Nations 
Temporai-y Commission on Korea of the forma- 
tion of a National Government of Korea, that Gov- 
ernment shall take over the functions of govern- 
ment from the military commands and civilian 
authorities of north and south Korea, respectively, 
in accordance with arrangements to be agreed upon 
under the auspices of the United Nations Tempo- 
rally Commission on Korea between the Govern- 
ment of Korea and the respective occupying 
authorities. 

(4) The United Nations Temporary Commis- 
sion on Korea shall be available for such consulta- 
tion and assistance as may be requested and ajJiDro- 
priate in connection with tlie decisions and actions 
contemplated in paragraphs (1), (2), and (3) 
above. 

[Copies of the above note have been circulated 



to the delegates of the member nations of the 
United Nations General Assembly. In this con- 
nection the Dejoartment of State made available on 
October 17 a booklet entitled Koreans Independ- 
ence, which contains a brief narrative account of 
the efforts made by this Government to bring about 
Korea's independence and the full texts of all the 
pertinent documents.] 



Korea's Independence 

Korea's Independence, a documentary record 
of the wartime and postwar commitments of the 
Allied Powers concerning Korea, was released by 
the Department of State on October 17, 1947, as 
publication 2933. The pamphlet includes an- 
nexes containing texts of protocols and declara- 
tions regarding Korea and negotiations with the 
U.S.S.R. on the Joint Commission. Copies may 
be obtained from the Superintendent of Docu- 
ments, Government Printing OfHce, Washington 
2.5, D.C. for 15 cents each. 



General Assembly Special Committee Established To Observe Greek Frontier 



STATEMENT BY U.S. DEPUTY REPRESENTATIVE TO THE U.N.' 



The efforts of the United Nations to protect the 
territory and the independence of Greece passed a 
significant milestone today. The Political and Se- 
curity Committee of the General Assembly com- 
pleted action on a resolution which calls upon 
Albania, Bulgaria, and Yugoslavia to do nothing 
which could furnish aid and assistance to the guer- 
rillas fighting against the Greek Government. 
And, most important of all, the Committee, by 
large majorities, has approved the establislunent 
of an on-the-spot General Assembly commission 
to observe and report to the United Nations 
whether or not the northern neighbors of Greece 
are complying with this injunction. In addition, 
the Commission is empowered to assist in the settle- 
ment of frontier problems, the repatriation of 
refugees, and the transfer of minorities. 

This decision, we believe, will give heart to the 

' Broadcast over the network of the American Broadcast- 
ing Company oh Oct. 13, 19-47, and released to the press 
on the same date by the U.S. Mission to the U.N. Herschel 
v. Johnson is U.S. Deputy Representative to the United 
Nations. 

822 



peoples of the world who look to the United Na- 
tions for constructive action in maintaining peace. 

The debate that preceded today's action was 
long, and often it was intemperate. The United 
States Delegation regretted particularly the decla- 
ration by the Representative of the Soviet Union 
that his Government would not participate in the 
work of this commission if it is established. The 
Committee, decided, however, to leave open two 
places on the commission in the hope that the 
Soviet Union and Poland may yet decide to 
participate. The United States Delegation ear- 
nestly hopes they will. 

The resolution provides that the Special Com- 
mission shall establish headquarters in Salonika 
and shall begin its work within 30 days after final 
approval by the General Asseuibly. It is the hope 
of the United States that this final approval will 
be voted soon. 

Our desire for early action is supported by ex- 
perience. The Commission of Investigation sent 
into the area by the Security Council earlier this 

Department of State Bulletin 



year undoubtedlj- served to deter guerrilla activity 
throughout the area. But the struggle of Greece 
to recover from the ravages of war continues to be 
sabotaged by the destruction of bridges, the min- 
ing of roads and rail lines, and the pillaging of 
farms and villages. It is our hope that the pres- 
ence of the General Assembly committee will help 
to end this era of destruction and succeed in effect- 



THB UNITED NATIONS AND 5PBCIAUZBD AGENCIES 

ing better relations between Greece and her north- 
ern neighbors. If these aims are not achieved, this 
commission will have the power to reconmiend the 
calling of a special session of the General Assem- 
bly. It will be a watchdog for the General Assem- 
bly which by today's action has clearly demon- 
strated its intention to help bring peace to this 
troubled area. 



TEXT OF RESOLUTION ^ 



1. Whereas 

The peoples of the United Nations have ex- 
pressed in the Charter of the United Nations their 
determination to practice tolerance and to live to- 
gether in peace with one another as good neigh- 
bours and to unite their strength to maintain inter- 
national peace and security; and to that end the 
Members of the United Nations have obligated 
themselves to carry out the purposes and jirinciples 
of the Charter; 

2. The General Assembly of the United Nations, 
Having considered the record of the Security 

Council proceedings in connection with the com- 
plaint of the Greek Govei-nment of 3 December 
1946, including the report submitted by the Com- 
mission of Investigation established by the Secu- 
rity Council resolution of 19 December 1946, and 
information supplied by the Subsidiary Group of 
the Commission of Investigation subsequent to the 
report of the Commission ; 

3. Taking account of the report of the Com- 
mission of Investigation which found by a ma- 
jority vote that Albania, Bulgaria and Yugo- 
slavia had given assistance and support to the 
guerrillas fighting against the Greek Government ; 

4. Calls upon Albania, Bulgaria and Yugo- 
slavia to do nothing which could furnish aid and 
assistance to the said guerrillas ; 

5. Calls upon Albania, Bulgaria and Yugo- 
slavia on the one hand and Greece on the other to 
co-operate in the settlement of their disputes by 
peaceful means, and to that end recommends : 

(1) That they establish normal diplomatic and 
good neighbourly relations among themselves as 
soon as possible ; 

(2) That they establish frontier conventions 
providing for effective machinery for the regula- 

' U.N. docs. A/409, Oct. 14, 1947, p. 6 and A/409/€orr. 1, 
Oct. 20, 1947. 



tion and control of their common frontiers and for 
the pacific settlement of frontier incidents and 
disputes ; 

(3) That they co-operate in the settlement of 
Jjhe problems arising out of the presence of refu- 
gees in the four States concerned through volun- 
tary repatriation wherever possible £^nd that they 
take effective measures to prevent the particii^a- 
tion of such refugees in political or military 
activity ; 

(4) That they study the practicability of con- 
cluding agreements for the voluntary transfer of 
minorities. 

6. Establishes a Special Committee: 

( 1 ) To observe the compliance by the four Gov- 
ernments concerned with the foregoing recom- 
mendations ; 

(2) To be available to assist the four Govern- 
ments concerned in the implementation of such 
recommendations ; 

7. Recommends that the four Governments con- 
cerned co-operate with the Special Committee in 
enabling it to carry out these obligations; 

8. Authorizes the Sl^ecial Committee, if in its 
opinion further consideration of the subject mat- 
ter of this resolution by the General Assembly 
prior to its next regular session is necessary for the 
maintenance of international peace and security, 
to recommend to the Members of the United 
Nations that a special session of the General 
Assembly be convoked as a matter of urgency ; 

9. Decides that the Special Committee 
Shall consist of representatives of Australia, 

Brazil, China, France, Mexico, the Netherlands, 
Pakistan, the United Kingdom and the United 
States of America, seats being held ojien for 
Poland and the Union of Soviet Socialist Repub- 
lics; 



October 26, J 947 



823 



THE UNITED NATIONS AND SPECIALIZ£D AGBNCIBS 

10. Shall have its principal headquarters in 
Salonika and with the co-operation of the four 
Governments concerned shall perform its func- 
tions in such places and in the territories of the 
four States concerned as it may deem appropriate ; 

11. Shall render a report to tlie next regular 
session of the General Assembly and to any prior 
special session which might be called to consider 
the subject matter of this resolution, and shall 
render such interim reports as it may deem appro- 
priate to the Secretary-General for ti'ansmission 
to the Members of the Organization; in any re- 
ports to the General Assembly the Special Com- 
mittee may make such recommendations to the 
General Assembly as it deems fit; 

12. Shall determine its own procedure, and 



may establish such sub-committees as it deems 
necessary ; 

13. Shall commence its work within thirty 
days after the final decision of the General As- 
sembly on this resolution, and shall remain in 
existence pending a new decision of the General 
Assembly ; 

14. The General Assembly, 

Requests the Secretary-General to assign to the 
Special Committee staff adequate to enable it to 
2)erform its duties, and to enter into a standing 
arrangement with each of the four Govermnents 
concerned to assure the Special Committee, so far 
as it may find it necessary to exercise its functions 
within their territoi-ies, of full freedom of move- 
ment and all necessary facilities for the perform- 
ance of its functions. 



The Financial Position of Trieste 



LETTER FROM THE DEPUTY MINISTER OF FOREIGN AFFAIRS OF THE UNION OF SOVIET SOCIALIST 
REPUBLICS ADDRESSED TO THE SECRETARY-GENERAL ENCLOSING DECISION BY THE COUNCIL 
OF MINISTERS OF FOREIGN AFFAIRS DATED 22 APRIL 1947 



Moscow, 7 September 1947 
Sm : I have the honour to forward to you here- 
with the decision taken by the Council of Ministers 
of Foreign Affairs in Moscow on 22 April 1947 on 
the report of the Commission which investigated 
the financial position of Trieste, together with the 
report of this Commission of. 27 February 1947.* 



Twenty-five copies of the texts of botli docu- 
ments in each of the working languages of the 
Council of Ministers of Foreign Affairs are being 
forwarded to you. 

(Signed) A. Vyshinsky 
Deputy Minister of Foreign Affairs. 



FREE TERRITORY OF TRIESTE 

Decision Taken by the Council of Foreign Ministers on April 22nd, 1947, concerning the 
Report of the Trieste Commission of Inquiry 



The Council of Foreign Ministers having con- 
sidered the report of the Trieste Commission of 
Inquiry as well as the comments on the report sub- 
mitted by the Government of the Federated Peo- 
ple's Republic of Yugoslavia and by the Govern- 
ment of Italy, have reached the following conclu- 
sions : 



' U.N. doc. S/577, Oct. 9, 1947. The annex appeared 
originally in Englisli, French and Russian. 

*Note: This report has been circulated to the Govern- 
ments represented on the Security Council, in a limited 
number of copies. 



(1) The solution of the questions of the budget, 
balance of payments, currency, customs and other 
financial and economic questions concerning the 
Free Territory of Trieste which were discussed 
in the report of the Commission falls within the 
competence of the Governor and the Council of 
Government and the Popular Assembly of the Free 
Territory in accordance with the relevant Articles 
of the Permanent Statute of the Free Territory of 
Trieste. Until the coming into force of the Per- 
manent Statute the solution of these questions falls 
within the competence of the Governor and the 



824 



Department of State Bulletin 



Provisional Council of Government in accordance 
with the relevant Articles of the Instrument for 
the Provisional Regime of the Free Territory of 
Trieste. In the solution of these questions the 
economic independence of the Free Territory 
should be provided for in accordance with the 
above mentioned provisions, particularly Para- 
graph 4 of Article 24 of the Permanent Statute. 
(2) The Council of Foreign Ministers recom- 
mends that, as from the date of the establishment 
of the Provisional Council of Goverimient of the 
Free Territory .of Trieste and until a new customs 
regime is introduced by the authorities of the Free 
Territory of Trieste the present regime should be 
maintained and goods of Italian and Yugoslav 
origin should be imported into the Free Territory 
of Trieste without payment of customs duty, pro- 
vided that reciprocal arrangements will be granted 
by these countries to the products originating in 
the Free Territory of Trieste ; and that the Gov- 
ernor and the Provisional Council of Government 
should make every effort to institute the new cus- 
toms regime within a period of three months. 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

(3) As the balance of payments may show a 
deficit in free foreign exchange over the period 
July-September, 1947, the Council of Foreign 
Ministers is of the opinion that in the event of the 
Security Council receiving from the Governor and 
the Provisional Council of Government a request 
for financial assistance fr.om outside to cover the 
urgent needs of the first period, the Security Coun- 
cil should reconnnend that an amount up to $5,000,- 
000 be made available to the Government of the 
Free Territory fiom the resources of the United 
Nations Organisation. 

(4) The Council of Foreign Ministers decides 
to request the Secretary-General pf the United 
Nations as soon as the Governor of the Free Teri'i- 
tory of Trieste has been appointed, t6~ti-ansmit to 
him for his information the report of the Trieste 
Commission of Inquiry, the observations on it of 
the Italian and Yugoslav Governments, and the 
text of this decision. 

Moscow 
Aviation Industry House 
Apnl £3, 1947 



Proclamation of Narcotics Protocol 



President Truman on October 14, 1947, pro- 
claimed the Protocol, with accompanying Annex, 
amending the Agreements, Conventions, and Pro- 
tocols on Narcotic Drugs concluded at The Hague 
on January 23, 1912, at Geneva on February 11 
and 19, 1925, and July 13, 1931, at Bangkok on 
November 27, 1931, and at Geneva on June 26, 1936. 
The Protocol, which was opened for signature at 
Lake Success on December 11, 1946, and signed for 
the United States on that date, was ratified by the 
President on July 15, 1947, and entered into force 
with res^ject to the United States on August 12, 
1947, the date of deposit of its instrument of rati- 
fication with the Secretary-General of the United 
Nations. 

The amendments set forth in the Annex do not 



come into force in respect of each Agreement, Con- 
vention, and Protocol mentioned therein until a 
ma jorit j^ of the parties thereto have become pai'ties 
to the present Protocol. The United States is 
party only to the agreements concluded at The 
Hague in 1912 ^ and at Geneva in 1931.^ 

Corrigendum 

In the Bulletin of September 28, 1947, page 653, 
column 2, in a list of treaties still under consideration 
by the Senate, the Great Lakes fisheries convention with 
Canada was listed as having been signed at Washington 
on April 29, 1942. The date should be April 2, 1946. 



' Treaty Series 612. 
' Treaty Series 863. 



Ocfober 26, 1947 



825 



THE RECORD OF THE WEEK 



American Labor's Part in Determining Foreign Policy 



ADDRESS BY THE SECRETARY OF STATE' 



This is my first opportunity as Secretary of State 
to discuss our foreign policy before a special gath- 
ering of American labor. You have an important 
part to play in the determination of that foreign 
policy and especially in making it effective. 

Everyone agrees, I think, that labor plays a vital 
part in the functioning of the modern state. If 
labor can be confused or embittei'ed, if labor can 
be made to lose faith in the community of which 
it forms a part, then the core of any national 
society is threatened. The enemies of democracy 
know this, and it explains the efforts they make 
to undermine the confidence of the labor element 
in the stability of our institutions and the sound- 
ness of our traditions. 

I am confident of American labor's reaction to 
efforts made to disrupt the structure of our society 
in the domestic field. But the problems of foreign 
relations are in their very nature remote from the 
American scene and are more easily distorted. 
For this reason I wish to outline certain of the 
fundamental considerations which I believe are 
important to an understanding of the American 
position today. 

There is a danger that the individual man, 
whose well-being is the chief concern of all demo- 
cratic policies, foreign or domestic, is being lost 
sight of in the welter of ideological generalities 
and slogans which fill the air. Generalities are 
frequently accepted as gospel truth without even 
a superficial examination of the validity of their 
basic tenets. Often they are intended to obscure 
the basic issue, which, as I see it today, is simply 
whether or not men are to be left free to organize 
their social, political, and economic existence in 
accordance with their desires, or whether they are 



' Delivered before the national convention of the Con- 
gress of Industrial Organizations in Boston on Oct. 1.5, 
1947, and released to the press on the same date. 

826 



to have their lives arranged and dictated for them 
by small groups of men who have arrogated to 
themselves this arbitrary power. 

This issue is as old as recorded history. But in 
the world today it has assumed more menacing 
proj^ortions than ever before. The great enemy 
of democracy has always been the concentration 
of arbitrary jjower in a few hands. 

The jiarticular theory used as a justification for 
the suppression and eventual elimination of civil 
liberties varies with the times. All such theories, 
however, contain within themselves the greatest 
of all historical fallacies — that in human affairs 
the end justifies tlie means. 

I do not have to point out to this convention that 
the rights of labor and the hope and possibility of 
further gains for labor are absolutely dependent 
upon the preservation of civil liberties. The issue 
is not one of political labels, but whether or not 
civil liberties, the right of ci'iticism, and right of 
recall of individuals elected to governmental re- 
sponsibility remain intact. No section of the 
American population has a more vital stake in tlie 
preservation of free institutions in the world tlian 
has American labor. For among the first victims 
of any dictatorial regime, and notably of the police 
state, is the right of labor to organize itself for 
the i^rotection of its interests. 

It is rather trite to say that the world is now a 
small place, but that is a fact, and what happens 
in distant places affects our affairs and our lives 
inevitably, often very quickly, and sometimes most 
seriously. The present situation in Europe is defi- 
nitely of the last-mentioned character. 

The basic jDroblem of world recovery is produc- 
tion. Production of course involves other critical 
factors — food, fuel, housing, and communications, 
for example, not to mention political influences or 
controls. With reference to the situation in Eu- 

Departmenf of State Bulletin 



rope, at the present moment the dominant factors 
are food and coal. Problems of foreign exchange, 
dollar shortages as now expressed, are heavily in- 
volved in the dilemma. I repeat tliat the immedi- 
ate requirements at this time are food and coal. 

Europe is entering on another long winter. As 
has already been described by numerous observers 
and authorities, the situation is precarious. Out- 
side assistance is absolutely necessary to prevent 
a really dangerous deterioration in health and mo- 
rale before any carefully determined long-range 
program can possibly be put into effect. 

There now exists the urgent necessity for posi- 
tive interim measures to prevent a fatal deteriora- 
tion in Europe — political, economic, and psycho- 
logical — before Congi-ess has sufficient time to con- 
sider and act upon a possible long-range plan for 
American assistance. 

The present food-saving plan is one such interim 
measure. The committees of Congress, which are 
being scheduled to meet in November, will un- 
doubtedly consider others. Meanwhile the Ad- 
ministration will do all within its limited power 
to lend assistance. 

These measures alone will not suffice. They are 
but a step — an all-important step — to prevent a 
collapse this winter. 

When I made a public statement at Harvard on 
June 5 last,^ it was plainly evident that a situation 
had developed where we must immediately choose 
between two lines of action — either to concern our- 
selves solely with our own internal affairs despite 
our heavy commitments in Germany, Austria, and 
Italy, while Europe suffered a complete political 
and economic demoralization; or we must take 
action to assist Europe in avoiding a disastrous 
disintegration with tragic consequences for the 
world. Therefore, the suggestion was made that 
the European countries, under the pressure of the 
dilemma which faced them, should join together 
in working out a mutual basis of cooperation for 
their own rehabilitation and should determine, on 
a businesslike basis, the degree and character of 
the outside assistance they calculated would be 
urgently needed over and above what was humanly 
possible for them to accomplish for themselves. 

We have now reached the point where 16 nations 
have submitted a preliminary plan, both as to their 
own agreed actions and as to what outside assist- 
ance they feel will be necessary in the next four 

Ocfober26, 1947 



THE RECORD OF THE WECK 

or five years. At the same time, our resources have 
been reviewed in order that no step might be taken 
which would involve an unwise drain on our econ- 
omy. The European plan is now under study by 
the various agencies of the Government concerned 
and by the special groups which were formed by 
direction of the President. Certain committees of 
Congress have planned to meet in a few weeks to 
consider first the measures which may iimnediately 
be necessary and later the proposal soon to be sub- 
mitted by the Government for assistance in the 
long-range rehabilitation of Europe. 

Whatever form the proposal may take we must 
be assured that the participating countries will 
make every possible effort to reach the production 
rates they have set for themselves and that they 
will make the necessary fiscal reforms. We have 
great admiration for the fortitude displayed by the 
people of these countries under prolonged condi- 
tions of want and extreme hardship. But the 
present situation requires more than stoical, even 
heroic endurance. I repeat that basically the pres- 
ent problem of world recovery is one of production. 
And I add the comment that increased production 
emphatically demands harder work, and that in 
turn demands more, not less, food. 

The productivity of American farms and facto- 
ries is of tremendous concern to the entire world. 
For that and other reasons we occupy a very special 
position in the world, which carries with it a heavy 
responsibility which cannot be avoided, even if we 
might wish to do so. Therefore we must face the 
facts. The United States stands in the midst of 
a highly critical world period. The situation in- 
volves dangers which affect every American alike. 
It would be a great folly to assume that we can 
stand aloof or that we can straddle the issue. A 
very distinguished American recently stated that 
"No private program and no public policy, in any 
sector of our national life, can now escape from 
the compelling fact that if it is not framed with 
reference to the world it is framed with perfect 
futility". What endangers the United States en- 
dangers all of us— labor, industry, and agriculture 
alike. Because the economic stability of Europe 
is essential to the political stability of Europe, it 
is of tremendous importance to us, to our peace 
and security, and it is equally important to the 



' Bulletin of June 15, 1947, p. 1159. 



827 



THE RECORD Of THE WEEK 

entire world. We are faced with the danger of the 
actual disappearance of the characteristics of west- 
ern civilization on which our Government and our 
manner of living are based. 

We are proceeding in a determined campaign 
which has for its purpose world stability, a condi- 
tion absolutely necessary to world peace. It is a 
difficult business. It requires infinite patience and 
a constant effort to understand the other fellow's 



point of view, but it definitely requires cool cal- 
culation and gi-eat determination. Hasty judg- 
ments and short-range thinking need to be avoided. 
Above all things, a regard for the American tradi- 
tion is required, the typical American readiness 
to assist those in need of help, to discount vicious 
propaganda and outrageous criticism, and in the 
end to seek only to do what is right, so far as we 
can determine the right. 



Report on National Resources and Foreign Aid 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House October 18] 

I have received a report from the Secretary of 
the Interior on national resources and foreign 
aid.^ 

This report is the first in a series of three reports 
being prepared by sjaecial committees which I ap- 
pointed in June to study the relationship between 
the interests of our domestic economy and the ex- 
tent to which the United States can aid friendly 
foreign countries in progi'ams of self-rehabilita- 
tion and reconstruction. 

The task assigned Secretary Krug's committee 
was to explore the state of our resources and report 
upon their adequacy to contribute to foreign re- 
construction. This report covers the physical as- 
pects of the subject, with only such reference to 
economic and fiscal aspects as is necessary to define 
the problem of resource use. 

Secretary Krug reports that on the whole our 
national resources are physically sufficient to pre- 
serve the national security and the American 
standard of living and at the same time to support 
a considerable foreign-aid program. The report 
emphasizes that intelligent utilization of our natu- 
ral resources calls for an expanded progi'am to 
conserve them from waste and more intensive 
efforts to discover and develop new sources of 
supply for many of our basic raw materials. 

The fact that our natural resources are adequate 

^ Not printed. Released to the press by the Department 
of the Interior Oct. 19, 1947. 

828 



to permit sharing is heartening. But other vitally 
important factors must be weighed before we can 
determine the extent to whidi these resources can 
be shared. 

The Council of Economic Advisers will shortly 
report on a related aspect of the problem. The 
task assigned the Comicil is to appraise the eco- 
nomic impact on the United States of aid to other 
countries. The basic data and analyses have been 
made available to the nonpartisan committee under 
the chairmanship of the Secretary of Commerce. 
Secretary Harriman's committee will report on the 
character and quantities of our resources which 
may be safely and wisely utilized in a program of 
foreign assistance. 

The studies by the three groups are interrelated. 
The facts and conclusions of Secretary Krug's 
report are already being used by the other two 
committees. Aided by these three studies, and by 
information assembled by the State Department 
concerning the needs of other countries and the 
measures of self-help and mutual help being taken 
by these countries, I shall prepare recommenda- 
tions to the Congress on the nature and extent of a 
balanced foreign-aid program. 

The remaining two re2:)orts will also be made 
public as soon as they are completed. I hope they 
will receive full discussion by members of the Con- 
gi-ess and by business, labor, agriculture, and the 
general public. 

Department of State Bulletin 



Report on Greece 



BY GEORGE C. McGHEE > 



In response to an urgent appeal by the Gi'eek 
Government, Congress authorized in May of this 
year tlie Greek and Turkish aid program, mider 
vrhich 300 million dollars was allocated to Greece. 
President Truman in his message to Congress on 
the aid act stated that if aid were not extended 
Greece could not survive as a free nation but would 
be forced into the Communist orbit by a Com- 
munist minority supplied from abroad. - By an 
overwhelming majority Congress determined that 
it was in our national interest to aid this freedom- 
loving nation, our gallant ally in the last war, in 
restoring her war-devastated economy and in pro- 
viding military supplies needed to establish in- 
ternal order. An American Mission for Aid to 
Greece, mider the leadership of former Nebraska 
Governor Dwight P. Griswold, was sent to Greece 
to administer the program. 

In the meantime Americans have been asking 
many questions about the Greek-aid program : 
"Was the United States justified in assuming this 
grave resi^onsibility toward Greece?" "Can 
Greece really be saved?" "Wliat sort of a job is 
the American Mission doing?" "What can the 
Mission hope to accomplish with the funds 
provided?" 

I have just returned from a 3-weeks visit to 
Greece. I spent a great deal of time with Gover- 
nor Griswold and his staff and with the American 
Ambassador, Mr. IMacVeagh. I talked with Greek 
political leaders and with members of the (Jreek 
Government. I met with the Greek Prime Minis- 
ter, Mr. Sophoulis, who has, despite Iiis advanced 
age, returned to political life to lead his people 
under the new coalition government. I talked 
with businessmen in Athens, with farmers and vil- 
lagers in the Peloponnesus and Crete, and with 
refugees in the guerrilla area north of Salonika. • 

I would like to report on the situation in Greece 
as I saw it — to give an accounting of how your 
Government is carrying out the mandate of the 
American people to aid Greece. 

First of all, the American Mission in Greece 
is a good mission. Its members are representative 
Americans who were carefully chosen on the basis 

October 26, 1947 



of outstanding ability in administration or in the 
specialized fields for which the Mission is respon- 
sible. They were selected from some 6,000 appli- 
cants and on the basis of questionnaires sent to 
1,000 men who had made outstanding contributions 
in previous public service. In most cases mem- 
bers of the Mission are serving at personal sacrifice 
as the result of a strong patriotic appeal. 

The Director of the Agriculture Division was 
drafted from his position as business manager at 
Texas A. and M. College. The Director of the 
Commerce and Supply Division left a key position 
in a New York food concern, following an out- 
standing Government career which included serv- 
ice as a top official in the War Production Board. 
The ISIission Highway Engineer was formerly 
Commissioner of Highways in West Virginia, a 
state which is considered to have about the same 
type of country as Greece. The Head of the In- 
dustry Division was formerly President of the 
Sperry Gyroscope Company. Other top officials 
of the Mission are men of similar caliber. 

I found at Mission headquarters a spirit of 
enthusiasm and teamplay. The Mission staff be- 
lieve in their Mission. They are not the dollar 
imperialists the Moscow press would have the 
world believe. They come as friends to a country 
they genuinely want to help and whose sovereignty 
and dignity they respect — as they respect' the great- 
ness of her past. 

But you may say, "What has the Mission done to 
save Greece?" 

First of all there is the purely statistical record. 
Seventeen sliiploads of United States military 
supplies and equipment have been delivered to the 
Greek Army. Greek troops ai'e now fighting with 
our ammunition and subsisting on our supplies. 
In addition, 135,000 tons of wheat and flour have 
arrived in Greece and 7,800 tons of milk for the 
Greek children. Other necessary Greek imports, 



' Address broadcast over CBS on Oct. 15, 1947, and re- 
leased to the press on the same date. Mr. McGhee is 
Coordinator for Aid to Greece and Tiirkey. 

- BuiXETiN of Mar. 23, 1947, p. .534. See also Bulletin 
Supplement of May 4, 1947. 

829 



THE RECORD OF THE WECK 

such as petroleum, coal, automotive spare parts, 
and fertilizers have been financed with Aid funds. 

But the accomplishments of the Mission cannot 
be measured entirely in terms of goods delivered. 
Since it began operations in July, the Mission has 
been quietly laying the groundwork for coopera- 
tion with the Greek Government to assure that 
American aid is effectively utilized for the pur- 
poses intended and that the Greeks themselves 
make the maximum contribution from their own 
resources in the recovery effort. 

On some matters the Mission gives teclmical 
advice to the Greek Government. Wliere the use 
of American resources is involved, the Mission has 
agreements with the Greek Government which 
permit control over the operations. Where joint 
resources of the two countries are involved, co- 
operative agreements have been negotiated which 
define the obligations and responsibilities of both 
countries. An example is the Public Koads Ad- 
ministration, where an American engineer admin- 
isters the construction and maintenance of Greek 
roads. 

A start has been made in the reconstruction of 
Greek transportation facilities damaged or de- 
stroyed by the war and which are acting as a bottle- 
neck to all Greek recovery. American contractors, 
with typical American initiative and energ>', have 
organized Greek engineers and laborers. Jobs 
have been offered to guerrillas who accept the Gov- 
ernment's amnesty. They have brought in Ameri- 
can equipment and materials as required, while at 
the same time endeavoring to make maximum use 
of local Greek materials. Work has been started 
on the Salonika-Athens highway. Workmen are 
busy repairing the damaged docks at Piraeus and 
are clearing the vital Corinth Canal. All this re- 
construction activity is a visible and even dramatic 
evidence to the Greek people of the sincere desire 
of the United States to aid the Greek nation. 

For the first time since the termination of war 
Greece has a sound and complete economic pro- 
gram, designed to start her on the road toward 
self-support. In his address last Monday night 
in Athens, Prime Minister Sophoulis announced a 
program developed in cooperation with the Ameri- 
can Mission. The Prime Minister calls for sac- 
rifice and privation from the Greek people in 
achieving their own recovery. He announced a 
new foreign-exchange plan designed to overcome 



the handicaps to Greek export trade of an over- 
valued currency and to sell their tobacco, olive oil, 
currants, and other products on the world market. 
He also announced the creation of a Foreign 
Trade Administration headed by an American em- 
ployee of the Greek Government. This Adminis- 
tration will have authority to grant all import 
licenses. It will eliminate luxury imports and will 
promote Greek export trade. The Prime Minis- 
ter called also for balancing the Greek budget, 
which can be accomplished only by abolishing non- 
essential Government services and effecting econ- 
omies in public administration. 

In other areas vital to the recovery of Greece 
the Mission has made real if not spectacular prog- 
ress. Agriculture provides a livelihood for 60 per- 
cent of the people in Greece. Orders have been 
placed for seeds, fertilizers, and pesticides; can- 
ning plants imported by unrra have been put into 
operation; spare parts have been ordered for 
tractors and other farm equipment; a well-drilling 
program has been started to increase gi'ound water 
necessary to expand productive land areas. 

Mission experts in government administration 
are working directly with a liaison team of Greek 
officials to assist them in effecting a general re- 
organization of the Greek Government. This is 
designed to increase administrative efficiency, to 
imiDrove civil-service procedures, and to make over- 
all savings in the Greek budget. The Greek Gov- 
ernment is reducing its civil service employees by 
15,000 before December 15. 

In the field of public health, the Mission has 
taken steps to procure vaccines and sanitary facili- 
ties for the 200,000 refugees in the north of Greece 
who have been made homeless by guerrilla activity. 
It is assisting the Greek Government in a reorgani- 
zation of its health services. It is financing an 
effective anti-malaria program conducted by the 
Greek School of Hygiene, whicli has reduced mala- 
ria cases from 2,000,000 to 50,000 a year. 

In the field of labor the Mission is aiding the 
Greek Government in the development of a sound 
wage and salaiy structure designed to promote in- 
dustrial efficiency and an equitable relationship 
between income and prices. The Mission has be- 
gun to train Greek workers in the skills required 
for the reconstruction program and in other prac- 
tical fields which will assist in Greek recovery. 

I would not, however, have you think that the 



830 



Department of State Bulletin 



path to recovery in Greece will be easy nor that 
Greek independence of foreign aid is yet in sight. 
The purchasing power of the Aid funds has been 
lowered by increased world prices. This year's 
wheat crop in Greece is only two-thirds normal. 
A considerable portion of the Aid funds earmarked 
for reconstruction has by necessity been diverted 
to military expenditures. Guerrilla activity haa 
not been decreased by the liberal oifer of amnesty 
by the Greek Government. The balancing of the 
Greek budget has not as yet been accomplished. 

One can, however, say that all of the necessary 
elements for recovery are now present and can 
begin to be operative once internal order is estab- 
lished in Greece. In the restoration of internal 
order we are relying heavily on the creation by 
the General Assembly of the United Nations of a 
commission which will effectively seal the Greek 
border against assistance to the guerrillas from 
Greece's northern neighbors. If order can be re- 
stored, there is every reason to be optimistic about 
the recovery of Greece — even more optimistic than 
one can be about the recovery of the more indus- 
trialized countries of Europe. If order is not 
restored there can be no recovery. 

I would at this point like to express my convic- 
tion on two vital points which are not clear to all 
Americans. The first is that Greece is a real de- 
mocracy — as we understand democracy. The 
word democracy originated in Greece. There has 
been much talk about domination of Greece by a 
few wealthy people in Athens. In my opinion this 
has been grossly exaggerated. There is individual 
wealth in Greece, as there must be in any free-en- 
terprise incentive system. There have been selfish 
individuals and groups which have taken advan- 
tage of Greek democracy to further their own in- 
terests. But basically the Greek people are as 
democratic as any people on earth. All of the 
basic freedoms are jealously guarded. There are 
two Communist papers in Athens that attack the 
Government and the American Aid Mission daily. 
I am proud to say they attacked me. The last 
Greek election was, in the opinion of the Allied 
observers, a fair election. The Gi'eek Government 
is highly responsive, sometimes too responsive, to 
the desires of its people. 

Secondly, I believe that Greeks are unalterably 
opposed to Communism and will combat it with 
all means at their disposal. Greece has essentially 

Ocfofaer 26, 1947 



THE RECORD OF THE WEEK 

an agricultural economy, and the Greek farmer, 
like all farmers, is devoted to the principle of pri- 
vate property. In talking with refugees who have 
been driven from their homes by the guerrillas, I 
found many who had been subjected to Communist 
propaganda but none who believed any of the 
grandiose promises the Conmiunists made. In one 
village of 800 there had been only one Communist 
adherent; in another of 450 there were 25. In 
recent labor-union elections the moderate "reform- 
ists" won 452 members while the Communists won 
49. 

It is equally true, however, that without our as- 
sistance Greece cannot withstand continued ag- 
gression by her more powerful Communist neigh- 
bors to the north. In Macedonia only 60 miles of 
Greek territory separates Bulgaria from an outlet 
to the Mediterranean. If Greece's northern neigh- 
bors continue their support of the Greek guerrilla 
forces, the need for foreign aid will continue be- 
yond June 30, 1948, no matter what achievements 
are made by the American Aid Mission and the 
Greek people toward recovery. 

Greece is, of course, one of the 16 European 
countries involved in the so-called Marshall plan. 
Any decision on that plan or a continuation of the 
Greek-aid progi-am is one for the people and the 
Congress of the United States. Only they can 
decide the extent and nature of any further aid to 
be furniihed to Greece. The policy of this coun- 
try to support Greek integrity and independence, 
consistent with our obligations under the United 
Nations Charter, will not, however, terminate with 
the present aid program on June 30, 1948, but will 
continue as long as Greece remains a democratic 
country desirous of resisting Communist aggres- 
sion. 

Additional Appointments to AMAG 

The Department of State announced on October 
14 the appointment of George L. Reed as Housing 
Adviser for the American Mission for Aid to 
Greece, to assist in solving the severe housing 
I^roblems in that country. Wartime damage to 
housing in Greece is said to be the heaviest of any 
combatant nation, with an estimated 150,000 to 
200,000 buildings completely destroyed and over 
40,000 more partially damaged. Funds are being 
made available by the Mission to permit procure- 

831 



TH£ RECORD OF TH£ WEEK 

ment of the necessary fittings and materials not 
obtainable in Greece for repairs and for erection 
of new dwellings. Further, there are plans for 
temporary construction of barracks-type winter 
shelters for 15,000 people who will soon have to 
move out of school buildings and other inadequate 
accommodations in the Salonika area, where the 
housing situation has been aggravated by the large 
concentration of refugees from guerrilla warfare. 
En route to Greece, Mr. Reed is stopping in 
Geneva to participate in the Panel on Housing 
Problems of the Economic Commission for 
Europe. He is taking with him to Geneva and 
to Greece data on public and private housing de- 



velopments in the United States and an exhibit 
of new building methods and materials. 

The Department of State also announced on 
October 1-1 the appointment of the following ad- 
ditional members of the American Mission for 
Aid to Greece: 

William A. Underwood, reports analyst 
Edna X. White, home demonstration specialist 
L. Malcolm Slaght, deputy chief, industry 
Henry Wiens, government expenditure specialist 
Kenneth H. McGill, reports analyst 
William W. Deitrick, auditor 
Ludwig Weindling, textile specialist 
Louis M. Knight, marketing sxiecialist 



Tripartite Commission Begins Restoration of Monetary Gold 



[Rele.ised to the press by the Tripartite Commission 
simultaneously in Europe and U. S. on October 171 

The Tripartite Commission for the Restitution 
of Monetary Gold, composed of Russell H. Dorr, 
United States Commissioner and Chairman. Sir 
Desmond Morton, KCB, CMG, MC, United King- 
dom Commissioner, and Jacques RueflF, Commis- 
sioner for France, announced on October 17 at its 
seat in Brussels the preliminary distribution of 
128,408 kg. of fine gold to certain of the countries 
which during World War II were despoiled of 
monetary gold by Germany : 90,649 kg. has been 
allocated to Belgium; 1,929 kg. to Luxembourg; 
and 35,890 kg. to the Netherlands. 

Further, the Tripartite Commission points out 
that part III of the Paris reparation agreement 
provides that shares of the gold pool shall be set 
aside for countries not represented at the repara- 
tion conference (including Austria and Italy), 
pending decision as to the participation of such 
countries in the pool. Therefore, having deter- 
mined that a portion of the claims submitted by 
Austria and Italy under the authority of this pro- 
vision are clearly valid, the Commission has 
ordered that 26,187 kg. for Austria and 3,805 kg. 
for Italy be set aside. Negotiations for inclusion 
of Austria and Italy in the gold pool are in prog- 
ress and may be completed in time for them to 
share in this preliminary distribution. Negotia- 
tions are also being carried on with regard to the 
admission of Poland to participation in the gold- 
pool arrangement. 

832 



The btilk of the distribution will consist of 
monetary gold looted by the Nazis and recovered 
by the United States Army in the immense cache 
in the salt mines at Merkers, Germany, in April 
1945. The balance will be delivered from stolen 
monetary gold sold by Nazi Germany to Switzer- 
land during the war and turned over by that coun- 
try to the Allied Powers under the Washington 
accord of May 25, 1946. 

Ten countries — Albania, Austria, Belgium, 
Czechoslovakia, Greece, Italy, Luxembourg, the 
Netherlands, Poland, and Yugoslavia — have filed 
claims with the Commission on account of Nazi 
gold looting. The Commission has examined with 
care these claims and evidence offered in support 
of them. Some of the claims raise no legal prob- 
lems, are fully supported by detailed and verifiable 
data, and can clearly be allowed at once. Others 
have been found to give rise to questions of law or 
fact that will require some further time to adjudi- 
cate. The Commission did not feel it proper to 
ask those countries whose claims were clearly and 
fully proved to wait for their .share until it could 
complete its work on all claims, particularly in 
view of the desirability of returning to circulation 
as soon as possible gold which was looted by Ger- 
many and at present remains immobilized. It 
determined therefore to make this preliminary 
distribution on account of those claims whose 
validity is incontrovertible. 

Departmenf of Slate Bulletin 



In calculating the sum to be allocated, the Com- 
mission has kept in reserve a sufficient amount of 
the gold now on hand to make it possible to satisfy 
in equal proportion pending claims which may 
later be determined to be valid. Rights of resti- 
tution which may later be recognized are therefore 
fullj' safeguarded. On the other hand it should 
be understood that all of the looted gold recovered 
will, of course, be distributed as soon as possible 
to those countries which establish their claims. 

The Commission is informed that the gold allo- 
cated to Belgium in this first distribution will be 
delivered by that country to France pursuant to 
an agreement reached in 1944 under which France 
at that time returned to Belgium the gold of the 
Belgian National Bank, which was moved to 
France on the eve of the German invasion of Bel- 
gium and was later captured by the Germans. A 
similar situation prevails as to the allocation to 
Luxembourg. 

Negotiations by the United States, United King- 
dom, and France are continuing for recovery of 
further monetary gold stolen by Germany and sold 
by it to other countries during the war. Sweden 
has agreed to restore all gold received from Ger- 
many which is accepted by Sweden as having been 
looted, and it is anticipated that the total of such 
receipts will be determined shortly. It is hoped 
that negotiations with other countries may be as 
successful. All such gold recovered will also be 
distributed in proportion to losses as determined 
by the Commission. It is therefore probable that 
some further payment will be made on account of 
claims already accepted for the purpose of this 
preliminary distribution and that the proportion- 
ate allocation the Commission will be able to make 
on account of claims subsequently accepted will be 
larger. The Commission intends to make further 
distributions as soon as possible. A number of 
claims are at present in suspense only because of 
the delay of claimant countries in supplying the 
Commission with certain supplementary evidence 
necessary to complete the proof required by the 
Paris agreement. 

In announcing this first distribution of monetary 
gold the Commission draws attention to the fact 
that the Paris agreement on reparations, which 
established the monetary gold pool, provides ex- 
plicitly for the restitution of monetary gold to 
each participating country in proportion to the 

October 26, 1947 



THE RECORD OF THE WEEK 

losses of such gold it suffered through looting by 
or wrongful removal to Germany. The Commis- 
sion is in no way responsible for the restitution 
of gold looted by the Nazis from the victims of 
concentration and death camps. Under the Paris 
agreement gold of this type recovered in Germany 
was placed under the administration of the Inter- 
governmental Committee on Refugees to be used 
in the rehabilitation and resettlement of nonre- 
patriable victims of German action. 

German Vessels Made Available to France 

[Released to the press October 16] 

The Acting Secretary of State on October 16 
advised the French Ambassador of the availability 
for transfer to the French Government of certain 
former German naval vessels. These ships, total- 
ing 31 in number, plus one floating dock, are among 
those allotted to the United States by the Tripar- 
tite Naval Commission which was established by 
the Potsdam Conference. The undertaking by 
this Government to make available to France a 
part of its share of the captured German vessels 
was incorporated into the Blum-Byrnes agreement 
of May 28, 1946.^ 

With the exception of two destroyers at Annap- 
olis, the ships are now in German ports. The 
French Navy will take possession of the two de- 
stroyers on the occasion of the visit to Annapolis in 
November of the French cruiser Georges Leygues. 
Arrangements are being made for the early trans- 
fer to French command of the remaining ships. 

The high proportion of service vessels to combat 
types results from the desire of the French Gov- 
ernment for ships which will contribute to the 
French civilian economy. 

A list of the ships by category follows: 

3 destroyers 

1 aviation supply ship 

1 aviation repair and maintenance ship 

1 depot ship 

12 mine sweepers 

3 trawlers 

1 tanker 

7 seagoing tugs 

2 toi-pedo transporters 

1 40,000-ton floating dock 



^ Bulletin of June 9, 1946, p. 994, and June 30, 1946, 
p. 1127. 

833 



THB RECORD Of THB WBBK 

Italian Government Expresses Gratitude 
for Return of Naval Units 

[Released to the press October 13] 

The Secretary of State has received the following 
message from Count Carlo Sforza, Minister of 
Foreign Affairs, of which the following is a trans- 
lation: ^ 

I am extremely grateful to Your Excellency for 
your communication that the Government of the 
United States, mindful of worthy services ren- 
dered by the Italian Navy during the period of 
co-belligerency, has decided to renounce com- 
pletely the Italian naval units assigned to it under 
the terms of the treaty of peace with Italy ^ and 
the four-power naval protocol of February 10, 
1947.^ 

Your Excellency has also informed me of the 
desire of your government that these units, 
scrapped and utilized by Italy in accordance with 
the provisions of the aforesaid protocol, contribute 
to welfare of the Italian economy. 

I have the honor to advise Your Excellency that 
the Italian Government has noted with particular 
satisfaction this decision of the Government of 
the United States, a decision of which it appre- 
ciates above all the high moral significance of 
which the whole Italian people has learned with 
lively gratitude and which will draw even closer 
the bonds of friendship which unite the two navies 
and two countries. 



Army To Purchase French Francs To Pay 
Procurement Obligations 

Statement by the President 

[Released to the press by the White House October 15] 

The French Government has informed this Gov- 
ernment that a sum in excess of 80 million dollars 
remains to be paid by the United States to France 
on account of procurement obligations incurred by 
the United States Army in France and North 
Africa after September 2, 1945. The auditing of 
the basic records, which is now in process, is being 
pressed forward so that settlements can be reached 
as promptly as possible. 



' Printed from telegraphic text. 

' Department of State publication 2743. 

' Bulletin of May 4, 1947, p. 815. 



834 



In the interim, in order to help the French Gov- 
ernment meet its immediate dollar requirements 
for essential imports, I have today authorized the 
Secretary of the Army to purchase from the French 
Government francs in the equivalent of 50 million 
dollars, such francs to be used in payment of pro- 
curement obligations or for other expenditures of 
the United States Government. 



Interim Air-Transport Agreement 
With Austria 

[Released to the press October 8] 

An interim air-transport agreement between 
Austria and the United States was signed on Oc- 
tober 8 at the Bundeskanzleramt by Karl Gruber, 
Austrian Minister for Foreign Affairs, and John 
G. Erhardt, American Minister, on behalf of their 
respective Governments. It is the first air-trans- 
port agreement concluded by Austria since the 
war. It is hoped that this agreement will facili- 
tate and promote the development of commercial 
and other relations between Austria and the 
United States and other countries. The agreement 
is based on the form of agreement approved by 
the International Civil Aviation Organization 
(iCAO) and is generally similar to agreements 
which the United States has concluded in the past 
few years with more than 30 other countries. It 
is intended to stimulate and promote the sound 
economic development of air transportation while 
eliminating unfair methods of competition. 

Murder in Addis Ababa of Alien Employed 
by American Legation 

[Released to the press October 11] 

The American Legation at Addis Ababa, Ethi- 
opia, has reported to the Department of State the 
murder, on the evening of October 9, of Johannes 
A. Semerdjibashian, an alien employed by the Le- 
gation as dragoman-interpreter. 

Mr. Semerdjibashian was shot as he was enter- 
ing the driveway of his home in an official Lega- 
tion automobile bearing diplomatic license plates. 

This Government has informed the Ethiopian 
Government of the extreme seriousness with which 
it views this murder and of the urgent necessity 
for apprehending and bringing to justice the per- 
petrator of the crime. 

Department of Sfaie Bullefin 






Recovery of American Property Confiscated 
By Japanese in China 

[Released to the press October 16] 

The Department of State has been informed that 
a deadline of December 31, 1947, has been estab- 
lished by the Cliinese Government for the submis- 
sion of claims for the recovery of identifiable prop- 
erty of which the owners were deprived during the 
Japanese occupation. 

Bureaus for the disposition of enemy and puppet 
properties have been established in the areas liber- 
ated from Japanese occupation. These bureaus 
have been directed by a decree of the Executive 
Yuan effective November 23, 1945 (published in 
the National Gove7'n7n£nt Gazette no. 916, Novem- 
ber 26, 1945) , to return properties originally owned 
by Allied nationals to the original owners if after 
examination convincing evidence is found that the 
properties were taken over forcibly by the Japa- 
nese. When time limits for claiming property have 
expired, it is the intention of the Chinese Govern- 
ment to dispose of unclaimed properties taken 
over from the Japanese as enemy-owned proper- 
ties. 

Principles applicable to the recovery of identi- 
fiable property removed from Allied countries by 
enemy forces during the war are stated in the 
State Department's announcement of June 5, 
1947.^ Owners of identifiable property which may 
have been removed from China during the war 
should submit descriptions of their property to the 
Chinese Government, as it is the responsibility of 
the Chinese Government to report the removal of 
such property to the proper authorities in the 
countries to which the property may have been 
taken. Looted property which was removed from 
China and is discovered in Japan is to be delivered 
by the Allied Military Authorities in Japan to the 
Chinese Government. 



Recovery of identifiable Property and Registra- 
tion of Claims for War Damage to American 
Property in Hong Kong 

[Released to the press October 8] 

The Department of State has been informed 
that American nationals who were deprived of 
identifiable property in Hong Kong during the 
Japanese occupation may register with the Hong 
Kong Government claims for the recovery of such 

October 26, 1947 



rm RECORD OF THE V/££K 

property. Applications for the recovery of looted 
property removed from Hong Kong should be 
submitted to the Reparations Claims Office, Gen- 
eral Post Office Building, Hong Kong. Appli- 
cations for the return of property located in Hong 
Kong should be submitted to the Custodian of 
Property, Windsor House, Hong Kong. 

The Department is also informed that the Hong 
Kong War Damage Claims Commission will reg- 
ister claims for war damage to American property 
in Hong Kong. The address of the Commission 
is General Post Office Building, Hong Kong. No 
provision has yet been made for the payment of 
compensation to claimants. 



Geneva Charter for an ITO — Continued from page 794. 

agreement with a nonmember, under which it ex- 
tends to the latter tariff concessions made or other 
benefits provided under the charter, to obtain the 
approval of the Organization. Alternative C, the 
strongest of the three, follows the lines of the orig- 
inal United States suggested charter. It forbids 
members, one year after the charter comes into 
force, to extend to nonmembers tariff concessions 
effected under the provisions of the charter unless 
specifically permitted to do so by the ITO. 

The charter can be amended by the Conference 
by a vote of two thirds of the members, but any 
amendment changing the obligations of members 
will not go into effect for any member until ac- 
cepted by that member or until two thirds of the 
members have accepted it. The Conference may 
expel nonratifying members or establish condi- 
tions less drastic than expulsion under which non- 
ratifying members may remain in the Organiza- 
tion. 

The charter of the International Trade Organi- 
zation is being written in a time of economic dis- 
location. The Charter of the United Nations pro- 
vides for reconsideration of the provisions of the 
document within 10 years. The delegates at Ge- 
neva believed it wise to include a similar provision 
in the ITO charter. Article 96 accordingly calls 
for the convening of a special Conference session 
to reconsider the provisions of the charter within 
10 years after its adoption. 



' Bulletin of June 15, 1947, p. 1161. 



835 



THE RECORD Of THB WEEK 

Aid to Chile in Obtaining Coal 

[Released to the press October 15] 

The Department of State has learned from the 
Chilean Government that Chile is threatened with 
the possibility of economic paralysis unless it re- 
ceives coal supplies from outside of Chile. Con- 
sistent with the cooperative relationship that has 
long existed between Chile and the United States 
and in fulfilment of the obligations of the good 
neighbor, the United States Government is issuing 
the export licenses necessary to enable the Chilean 
Government to piu'chase United States coal in 
sufficient quantities to maintain the minimum 
essential services. The Government of the United 
States is naturally desirous of doing everything 
possible to assist Chile in the present emergency. 



Protocol Signed Extending Inter-American 
Coffee Agreement 

[Released to the press October 17] 

On October 16, 1947, Willard L. Thorp, Assist- 
ant Secretary for economic affairs. Department of 
State, signed, subject to ratification, the protocol 
for the extension of the Inter-American Coffee 
Agreement for one year beginning October 1, 1947. 
This protocol renders inoperative all quota restric- 
tions in the agreement. 

In addition, the protocol specifies that the Inter- 
American Coffee Board shall undertake to com- 
plete by April 1, 1948, recommendations for the 
governments now participating in the agreement 
and of other governments that might be interested 
in participating in an understanding regarding 
the type of international cooperation, whether 
inter-American or other international, that ap- 
pears most likely to contribute to the development 
of sound and prosperous conditions in interna- 
tional trade in coffee equitable for both consumei-s 
and producers. 

The protocol stipulates that such recommenda- 
tions shall be in accordance with the general prin- 
ciples of commodity policy which are embodied in 
the chapter on intergovernmental commodity ar- 
rangements drafted in the First Session of the 
Preparatory Committee on the United Nations 
Conference on Trade and Employment or which 
may be embodied in the Charter for an Inter- 



national Trade Organization if such charter is 
concluded prior to the submission of such recom- 
mendations by the Board. 



American Red Cross Aids Victims of 
Tumaco, Colombia, Fire 

[Released to the press October 13] 

The Department of State has been informed by 
the American Consulate in Cali, Colombia, that 
the Colombian town of Tumaco, a Pacific-coast 
port in the extreme southwestern part of that 
country, has been almost completely destroyed by 
fire. The disaster appears to have taken place 
either late on October 10 or early on October 11. 

The population, estimated at between 5,000 and 
6,000 persons, was reported homeless. Food, 
clothing, and other supplies were described as ur- 
gently needed. 

Upon receipt of the first information of the dis- 
aster, the Department of State immediately com- 
municated with the American Red Cross, which 
simultaneously was receiving initial reports from 
its representatives in the field. Meanwhile, the 
American Embassy at Bogota transmitted the 
request by the President of Colombia, Mariano 
Ospina Perez, that the American Red Cross fur- 
nish relief as quickly as possible. 

The American Red Cross advised the Depart- 
ment that its president, Basil O'Connor, had ca- 
bled the Red Cross Society of Colombia, in re- 
sponse to President Ospina's request, that the 
American Red Cross would assist in any manner 
in which it was able and that such assistance would 
be provided through the American Red Cross rep- 
resentative in Panama, who intended to proceed 
to Tumaco. 

Initial reports stated that no American citizens 
were killed or injured. Although no American 
citizens are known to be permanent residents of 
Tumaco, an American engineering firm, the 
Frederick Schnare Company, is engaged in con- 
structing various port facilities there, and a small 
number of its American employees are temporar- 
ily in Tumaco. 

An American tanker, the Unoba, of the Union 
Oil Company, was in the port at the time of the 
disaster and has delayed its original departure to 
serve as a medium of radio communication. 



836 



Department of State Bulletin 



Sales and Transfers of Nondemilitarized Combat Materiel 



[Released to the press October 17] 

There follows a list of authorizations and trans- 
fers of surplus nondemilitarized combat materiel 
effected by the Department of State in its capacity 



as foreign-surplus and lend-lease disposal agent, 
during the months of May, July, August, and Sep- 
tember 1947, and not previously reported to the 
Munitions Division : * 



Country 



Description of materiel 



Procurement cost 



Sales price 



Date of 
transfer 



Brazil . 
Canada 

Chile . 

Cuba . 
Ecuador 



Mexico 



Peru. 



Uruguay . 



Venezuela 



Miscellaneous cartridges and metallic belt links . . . 

Five gunner tank trainers, 75mm M-12 (75mm turret 
trainers w/22 cal. conversion kit for .30 machine gun, 
mounted in the turret M12) and two trainers MIO 
(37mm). 

Eleven B-25J, twelve P-47D, two OA-10 aircraft, 
twenty-nine engines, and miscellaneous spare parts 
for combat planes. 

One patrol craft, escort 

Spare parts for P-47 aircraft 

Miscellaneous cartridges, shells, fuzes, grenades, smoke 
grenades, rockets, smoke rockets, bayonets, bayonet 
knives, carbines, guns, machine guns, submachine 
guns, howitzers, grenade launchers, rocket launchers, 
mortars, mounts, pistols, projectors, and rifes. 

One patrol frigate 

Thirty-two armored light cars and seventeen light tanks 
M5A1 w/37mm guns. 

Miscellaneous cartridges, shells, shot, rockets, armored 
light cars, half-track cars, carbines, guns, submachine 
guns, rocket launchers, mortars, pistols, rifles. 

Miscellaneous spare parts for tank It. M3A1 

Eight torpedoes, Mk 10 Mod 3 (less heads) 

Miscellaneous cartridges, shells, rifle grenades, smoke 
grenades, rockets, signals, bayonet knives, bayonets, 
carbines, guns, submachine guns, howitzers, grenade 
launchers, mortars, mounts, pistols, rifles. 

Miscellaneous cartridges, metallic belt links, shells, 
rifle grenades, smoke grenades, signals, rockets. 

Miscellaneous spare parts for tank It. M3A1 

Seven AT-6C, five AT-11 aircraft, eight aircraft en- 
gines, miscellaneous spare parts for combat aircraft. 

Seven AT-6 and five AT-11 aircraft 

Miscellaneous cartridges, shells, fuzes, grenades, smoke 
grenades, signals, bayonet knives, bayonets, car- 
bines, guns, submachine guns, howitzers, grenade 
launchers, mortars, pistols, projectors, rifles. 



$274, 088. 00 
55, 323. 00 



3, 705, 673. 00 



1, 786, 700. 00 
167, 585. 32 
177, 959. 93 



2, 352, 500. 00 
802, 945. 00 

618, 795. 19 



342, 407. 69 

64, 000. 00 

781, 456. 25 



129, 604. 32 

413, 263. 05 
723, 172. 11 

592, 208. 00 
205, 350. 09 



$27, 408. 80 
2, 766. 15 



339, 475. 00 



35, 500. 00 
13, 289. 73 
17, 533. 09 



146, 600. 00 
31, 403. 80 

36, 415. 22 



17, 120. 38 

6, 400. 00 

73, 415. 56 



10, 525. 73 

20, 663. 15 
204, 010. 60 

135, 000. 00 
84, 442. 25 



8/29/47 
9/9/47 



8/29/47 



9/29/47 
5/8/47 
7/3/47 



8/21/47 
8/19/47 

8/22/47 



7/29/47 
9/10/47 
9/23/47 



7/10/47 

7/15/47 
7/25/47 

8/8/47 
8/15/47 



' For other lists of authorizations and transfers, see Bulletin of June 8, 1947, p. 1140; July 13, 1947, p. 102; Aug. 
17, 1947, p. 340; and Sept. 28, 1947, p. 657. 



October 26, 1947 



837 



THE RECORD OF THE WEEK 

Visit of Peruvian Chemist 

Oswaldo Baca Mendoza, professor of analytical 
chemistry at the National University of Cuzco, 
Peru, has arrived in the United States at the invi- 
tation of the Department of State to study meth- 
ods used in American colleges and universities to 
teach analytical chemistry. 

Visit off Guatemalan Agriculturalist 

Rodolfo Rivera Ariza, director general of the 
General Farmers Association of Guatemala, is 
visiting the United States at the invitation of the 
Department of State. He is one of a distinguished 
group of leaders who have received grants, under 
the program administered by the Department's 
Division of International Exchange of Persons for 
the exchange of professors and specialists between 
the United States and the other American re- 
publics. He will confer with colleagues and ob- 
serve agricultural projects while in the United 
States, with the cooperation of the Department 
of Agriculture. 

THE DEPARTMENT 

Resignation of William L. Clayton as Under 
Secretary for Economic Affairs 

The President on October 14, 1947, acknowl- 
edged receipt of a letter from Under Secretary of 
State W. L. Clayton submitting his resignation. 
For text of Mr. Clayton's letter dated October 7, 
the President's reply, and a letter from Secretary 
Marshall to Mr. Clayton dated June 20, 1947, see 
White House press release of October 15, 1947. 

Frederick L. Zimmermann Joins International 
Resources Division 

The Department of State announced on October 
17 the appointment of Frederick L. Zimmermann 
of Forest Hills, Long Island, N.Y., as consultant 
in the Fisheries and Wildlife Branch, Interna- 
tional Resources Division. Mr. Zimmermann is 
being added to the staff to assist in the develop- 
ment of an international fisheries conservation pro- 
gram for the northwest Atlantic Ocean. Funds 
for this specific project were appropriated by the 
Congress for the 1947-48 fiscal year. 



PUBLICATIONS 

Department off State 

For sale hy the Superintendent of Documents, Oovern- i 
ment Printing Office, Washington 25, D.C. Address re- 
quests direct to the Superintendent of Documents, except 
in the case of free publications, which may he obtained 
from the Department of State. 

Faith and Fidelity — American Pledge to the United Na- 
tions. United States-United Nations Information Series 
25. Pub. 2934. 14 pp. 50. 

Address by the Secretary of State. 

Directive Regarding the Military Government of Ger- 
many. July 11, 1947. European Series 27. Pub. 2913. 
23 pp. 10(f. 

Text of directive to Commander in Chief of U.S. Forces 
of Occupation, July 11, 1947, superseding Joint Chiefs 
of Staff directive 1067/6 and its amendments. 

Korea's Independence. Far Eastern Series 18. Pub. 2933. 

Iv, 60 pp. 150. 

THE FOREIGN SERVICE 

Consular Offfices 

An American Consulate was established and 
opened to the public at Kuala Lumpur, Malayan 
Union, on October 6, 1947. 

Oral Examinations ffor Foreign Service To Be 
Held in Other American Republics 

An examining panel left on October 17 on a trip 
through Central and South America to conduct 
oral examinations for admission to the Foreign 
Service. The panel consists of : 

William P. Maddox, Chairman, Director of the Foreign 

Service Institute, Washington, D.C. 
Samuel J. Fletcher, Foreign Service officer, Kittery Point, 

Maine 
Lester D. Mallory, Foreign Service officer, Tanaslset, Wash. 
Hoolier A. Doolittle, Foreign Service officer, Baltimore, 

Md. 
Donald W. Smith, Foreign Service officer. Deputy Director, 

Office of the Foreign Service, Washington, D.C. 

The examinations will be held in Miami, Rio de 
Janeiro, Buenos Aires, Santiago, Lima, Panama, 
Guatemala, and Mexico City. 

Most of those who will take the examinations are 
candidates for admission to the middle and upper 
classes of the Foreign Service under the Manpower 
Act who have been exempted from the written ex- 
aminations ; some are candidates for admission to 
Class C who were successful in the special written 
examination given in October 1946 for veterans 
and members of the armed forces. 



838 



Departmenf of State Bulletin 




Foreign Air and Reconstruction Page 

Report on National Resources and Foreign 

Aid. Statement by the President . . . 828 

Report on Greece. By George C. McGhee . 829 

Additional Appointments to Amaq .... 831 

Economic Affairs 

Geneva Charter for an Ito: 

V. Cartel and Commodity Policy .... 787 

VI. Constitution of the Ito 790 

Army Buys French Francs To Pay Obliga- 
tions. Statement by the President . . . 834 

Recovery of American Property Confiscated 

by Japanese in China 835 

Registration of Claims for War Damages to 

American Property in Hong Kong . . . 835 

Aid to Chile in Obtaining Coal 836 

Sales and Transfers of Nondemilitarized 

Combat Materiel 837 

Generai Poiicy 

American Labor's Part in Determining For- 
eign Policy. By the Secretary of State . 826 

Murder in Addis Ababa of Alien Employed 

by American Legation 834 

American Red Cross Aids Victims of Tumaco, 

Colombia, Fire 836 

The United Nations and 
Specialized Agencies 

U.N. Documents: A Selected Bibliography . 803 
Economic and Social Council — Fifth Session. 

Article by Kathleen Bell 812 

Problem of the Independence of Korea: 
Letter From U.S. Representative Ad- 
dressed to the Secretary-General . . 820 

Draft Resolution on Korea 821 

Annex 821 

General Assembly Special Committee Estab- 
lished To Observe Greek Frontier: 
Statement by U.S. Deputy Representative 

to the U.N 822 

Text of Resolution 823 



Tlie United Nations and Pac« 

Specialized Agencies — Continued 
The Financial Position of Trieste: 

Letter From U.S.S.R. to the Secretary- 
General 824 

Free Territory of Trieste: Decision Taken 

by the Council of Foreign Ministers . . 824 
Proclamation of Narcotics Protocol .... 825 

The Congress 

Eightieth Congress, First Session, and the 
U.N.: Part I. Article by Sheldon Z. 
Kaplan 795 

Treaty Information 

Tripartite Commission Begins Restoration of 

Monetary Gold 832 

German Vessels Made Available to France . 833 
Italian Government Expresses Gratitude for 

Return of Naval Units 834 

Interim Air-Transport Agreement With 

Austria 834 

Protocol Signed Extending Inter-American 

Coffee Agreement 836 

International Information and 
Cultural Affairs 

Cooperation With Cultural Centers in the 
Other American Republics, 1947. Ar- 
ticle by Edmund R. Murphy 804 

Visit of Peruvian Chemist 838 

Visit of Guatemalan Agriculturalist .... 838 

The Foreign Service 

Consular Offices 838 

Oral Examinations for Foreign Service To 

Be Held in Other American Republics . 838 

The Department 

Resignation of William L. Clayton as Under 

Secretary for Economic Affairs .... 838 

Frederick L. Zimmermann Joins Interna- 
tional Resources Division 838 

Publications 

Korea's Independence 822 

Department of State 838 



Sheldon Z. Kaplan, author of the article on the First Session of the 
Eightieth Congress and the United Nations, is Assistant to the Legal 
Adviser, Department of State. 

Edmund R. Murphy, author of the article on cooperation with 
cultural centers in the other American republics, is an officer in the 
Division of Libraries and Institutes, Office of Information and 
Educational Exchange, Department of State. 

Kathleen Bell, author of the article on the Fifth Session of the 
Economic and Social Council, is an Assistant for Internatioual Organi- 
zation Affairs, Division of International Organization Affairs, Depart- 
ment of State, and served as Assistant to the U.S. Delegation to tlie 
Fifth Session of ECOSOC. 



U. S. GOVERNMENT PRINTING OFFICE; 1947 



tJAe/ ^efia/^tmen(/ xw tndte/ 




FOREIGN AID AND RECONSTRUCTION 
Calling of Special Session of the Congress • State- 

ment. Proclamation, and Address by the President . . . 852 

Addresses by the Secretary of State and Assistant 

Secretaries Thorp and Armour 856 

THE GENEVA CHARTER FOR WORLD TRADE • 

Address by Clair Wilcox 881 

THE EIGHTIETH CONGRESS, FIRST SESSION, 
AND THE UNITED NATIONS. Part II • Article by 

Sheldon Z. Kaplan 843 



Vol. XVII, No. 43i 
November 2, 1947 



For complete contents see back cover 




1947 




*»•»—•« 



^e Qe/iartment ^/ ^^ate D U i 1 G L 1 11 



Toi- XVIL No. 415 • Pcbucatios : - 
.\oc«nA€T 2. 1947 




The Department of State BiLL£TI\, 
a iteekly publication compiled and 
■ edited in the Dizision of Piiblieation»^ 
Office of Public Affairs., pmcide* the 
public and interested a^eneie* of 
the Government vcith information on 
developments in the field of foreirn 
relation.t and on the uork of the De- 
partment of State arid the Foreign 
Service. The BILLETIS includes 
press relea.sea on foreixn policy issued 
by the Jfhite Bouse and the Depart- 
ment, and statements and addreaae* 
made by the President and by the 
Secretmry of StaU and other officer* 
of the Department, as sceU ma tpecial 
articles on various phaaea of inter- 
natiorml affairs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to tchich the 
I'nited States is or may become a 
party and treaties of general inter- 
national interest. 

Publications of the Department, ma 
icell a.5 lezislatire material in the foeU 
a^ international relations, are listed 
currently. 



EIGHTIETH CONGRESS, FIRST SESSION, 
AND THE UNITED NATIONS 



hy Sheldon Z. Kaplan 



The frit article on this siibject. which appeared in the 
BnxETEf of Octoier 26, covered the activities of the First 
Session of the Eightieth Congress in implementing the 
responsibilities of the '^host*' nation tcncard its guest, the 
United Nations. There vas also hegxtn a discussion of the 
humanitarian responsibilities of the United States and the 
part the First Session has played in their fulfilment. This 
second article, the final one in a series of tiro, continues the 
discussion of Congressional activity in the humanitarian field 
and concludes icith a discussion of United States responsibili- 
ties within the framework of the United Nations over non- 
self-goveming territories and territories placed under 
trusteeship. 



Part II 



III. "Humanitarian" Responsibilities of the 
United States — Continued 

B. World Health Organization (WHO) 

In December 1945 the United States Senate 
unanimously adopted a joint resolution urging the 
early establishment of an effective international 
health organization and requesting the President 
on behalf of the Government of the United States 
to urge upon the United Nations the prompt for- 
mation of such an organization.** This resolution 
was a reaffirmation of the principle contained in a 
resolution unanimously approved by the United 
Nations Conference on International Organiza- 
tion at San Francisco, earlier that year, to the ef- 
fect that only through the combined cooperative 
efforts of governments can vexing health problems, 
no respecters of boundaries, be efficiently coped 
with. This, however, was no new concept, for 
there exists a long historv of intergovernmental 



cooperation in the interest of health, in which en- 
deavor, indeed, the United States has consistently 
taken a prominent position. Although the United 
States was never a member of the League of Na- 
tions, it nevertheless cooperated with its health 
organization, the work of which has been con- 
sidered one of the League's principal achieve- 
ments.** Further, this Government has been a 
member of the Pan American Sanitary Bureau 
since its inception in 1902 and of the International 
Office of Public Health since 1903. 

But with the rapid advances in modem medical 
science, the development of modem commtmica- 
tions and transport, and the appalling and worsen- 



" S. J. Bes. 89, 79th Cong., 1st sess. (Dec. 20. 1943). 

" That organization was snpponed in part by funds from 
the Rockefeller Foundation, and an official of this Got- 
emment sat in his private capacity on the organization's 
advisory committee. See BnxErn? of July 20, 1W7, p. 
131. 



November 2, 7947 



843 



ing health conditions created by World War II, the 
need for international cooperative efforts has been 
considerably heightened.''^ Accordmgly, the 
United Nations in February 1946 appointed a 
Technical Preparatory Committee composed of 
health experts, entrusted with the task of pi-epar- 
ing jiroposals for the consideration of an inter- 
national health conference, which it had been de- 
cided should be convened. This Committee re- 
cognized that the existing health agencies were in- 
adequate to meet the new conditions and recom- 
mended that the International Office of Public 
Health be absorbed into a new world health or- 
ganization. This finding was accepted by the In- 
ternational Health Conference and subsequently 
was approved by the Economic and Social Council 
and the General Assembly of the United Nations.*' 
In connection with the structure and status of the 
new health organization in relation to the United 
Nations, the Committee in its report to the Eco- 
nomic and Social Council outlined detailed pro- 
posals for a constitution, including its basic prin- 
ciples and the aims, functions, organs, and mem- 
bership of the organization,*' and recommended 
that the organization be established as a special- 
ized agency and that it be brought into close re- 
lationship with the United Nations.*" In its ob- 
servations to the International Health Conference 
(which met in New York from June 19 to July 22, 
1946, under the chairmanship of Dr. Thomas Par- 
ran, Surgeon General of the United States Public 



'"A strikins iUu.stration of this intensified need for 
jnternatioual cooperation in health is cited in H. Rept. 
979, 80th Cong., 1st sess., p. 3 (1947) : "As an illustration, 
a single ca.se of smalliwx was carried from Mexico to 
New York City in the spring of 19i7 by bus. The dollar 
cost to New York City alone of the resulting epidemic 
threat was $6,800 in hospitalization and $401,000 for 
public vaccinations. The total ninuber of vaccinations 
I)erfornie(i was about 0,3r>0,000, which, at a cost of $1 each 
in lost time and other economic losses, represent a value 
of $6,350,000, or a total for New York City of about 
$6,800,000. This estimate of the cost takes no account of 
measures necessary at other points along the route of the 
bus. Nor does it include the expense of local. State, and 
Federal health authorities in tracing fellow passengers and 
other contacts made by the carrier." 

"BuLi.CTiN of July 20, 1947, p. 132. Since the Inter- 
national Office of Public Health was established by treaty 
in Rome in 1907, to which the United States was one of 
the parties, a new agreement is needed to effect the ab- 
sorption of the Office by the new health organization. A 



Health Service) on the report of the Committee, 
the Economic and Social Council approved this 
recommendation.'*'' The Conference on the last 
day of its meeting adopted four instniments: (1) 
fuial act of the International Health Conference, 
a review of the work of the Conference; (2) con- 
stitution of the World Health Organization, signed 
by representatives of 61 states; (3) arrangement 
concluded by the governments represented at the 
International Health Conference establishing an 
Interim Commission, composed of 18 states, in- 
cluding the United States, elected by the Confer- 
ence; and (4) protocol providing for the dissolu- 
tion of the International Office of Public Health 
at Paris and for the transfer of its functions to 
the newly created World Health Organization.'*^ 
Bearing in mind the accomplishments achieved 
by the Conference, it is small wonder that the 
President, in transmitting to the Eightieth Con- 
gress for its consideration a suggested joint reso- 
lution providing for United States membership 
and participation in Who, stated that he 
was ". . . impressed by the spirit of interna- 
tional good will and community of purpose which 
have characterized the development of the consti- 
tution of this Organization." ^- The report of the 
Secretary of State on this matter,'*^ enclosed with 
the President's message, pointed out to the Con- 
gress the urgency and importance of international 
health problems and contained an analysis of the 
structure and functions of Wiio. The more im- 



protocol signed on behalf of 60 states at the International 
Health Conference was submitted to the Senate on Feb. 
10, 1947 (S. Exec. D, 80th Cong., 1st sess.; see also 93 
Cong. Rec, p. 951 (Feb. 10, 1947) ). The Senate advised 
and cou.sented to the ratification of tlie protocol on July 
19, 1947 (93 Cong. Rec, pp. 9512-9513 (July 19, 1947)). 

*» Ecosoc Journal, May 22, 1946. 

" "The Organization [United Nations] shall, where ap- 
propriate, initiate negotiations among the states con- 
cerned for the creation of any new specialized agencies 
required for the accomplishment of the purjwses set forth 
in Article 55" (U.N. Charter, art. 59). 

"" BtnxETiN of July 20, 1947, p. 132. 

'' S. Rept. 421, SOth Cong., 1st sess., p. 3 (1947) and S. 
Exec. D, SOth Cong., 1st se.ss. 

"The President's message is set forth in Ecnrings 
Before Subcotnmittec No. 5 — National and International 
Movements — of the Committee on Foreign Affairs on 
H. J. Res. 161, 80th Cong., 1st sess., p. 2 (1947). 

" Ibid., pp. 3-6. 



844 



Departmenf of State Bulletin 



portant of these functions, as set forth in its con- 
stitution,'^ are: to direct and cooi-dinate interna- 
tional health work ; to collaborate with the United 
Nations and other interested governmental and 
professional organizations; to give technical as- 
sistance to governments in strengthening health 
services and in meeting emergencies; to promote 
research in the field of health; to promote, with 
other agencies when necessary, the eradication of 
epidemic, endemic, and other diseases, the preven- 
tion of accidents, the improvement of nutrition, 
housing, sanitation, recreation, economic condi- 
tions, and other activities in the field of mental 
hygiene and public-health work. 

Pursuant to the President's message, S. J. Res. 
98, a joint resolution "Providing for membership 
and participation by the United States in the 
World Health Organization and authorizing an 
appropriation therefor" was introduced in the 
Senate and referred to its Foreign Relations Com- 
mittee. It was unanimously reported favorably 
to the Senate by the Committee on July 2, 1947, 
with one amendment desigiied to make certain that 
the obligations of the United States vis-a-vis Who 
could not be drastically changed without the con- 
sent of the Congress.^^ When this measure came 
to be considered on the floor of the Senate, July 3, 
1947, Senator Vandenberg put the matter thus : 

"We found that the constitution of the World 
Health Organization permits amendment of the 
constitution by two-thirds of the membership, re- 
gardless of where the votes may come from. In 
other words, we could have confronted an obliga- 
tion under the charter of the World Health Or- 
ganization, which could have been changed with- 
out our consent, under the terms of the constitu- 
tion. Therefore, the committee has added an 
amendment which is a 90-day escape clause, and 
permits us to retire from the World Health Or- 



" The full text of the constitution may be found in S. 
Kept. 421, 80th Cong., 1st sess., pp. &-18 (1947). 

"This amendment (S. Kept. 421, 80th Cong., 1st sess., 
p. 7 (1&47)) reads: "Section 4. In adopting this Joint 
resolution the Congress does so with the understanding 
that, in the absence of any provision in the World Health 
Organization Constitution for withdrawal from the Or- 
ganization, the United States reserves its right to with- 
draw from the Organization on a 90-day notice : Provided, 
however, That the financial obligations of the United 
States to the Organization shall be met in full for the 
Organization's current fiscal year." Governments, includ- 



ganization on 90 days' notice, whenever it is 
considered to be in the national interest".^" 

There was general senatorial agreement on the 
legislation, except that Senator Donnell objected 
that the Senate had not had opportunity to study 
the constitution of Who." However, when the 
Senate next took up the resolution on July 6, 1947, 
it passed on the following day, with virtually no 
debate, as amended by the Foreign Relations Com- 
mittee, minus the clause, "in the absence of any 
provision in the World Health Organization con- 
stitution for withdrawal from the Organiza- 
tion",'^ which had appeared in the Committee's 
report. 

The companion measure, H. J. Res. 161, intro- 
duced in the House of Representatives by Dr. 
Walter H. Judd, was favorably reported to the 
House by its Committee on Foreign Affairs, July 
17, 1947, but the House did not take up the 
measure. Certain amendments, however, were 
recommended, providing for a loyalty screening 
by the Federal Bureau of Investigation of United 
States Representatives to Who and insuring that 
no citizen of, or resident in, the United States 
should participate in any session, conference, 
meeting, or other work of the Organization with- 
out the consent of the Secretary of State. 
Another amendment limits the authorization for 
appropriations to a sum not to exceed $1,920,000 
for the fiscal year beginning July 1, 1947, for 
the payment of the United States share of the 
expenses of the Organization, including its In- 
terim Commission, and to a sum not to exceed 
$83,000 (for the same fiscal year) to cover United 
States expenses incident to participation.^^ The 
last amendment recommended by the House Com- 
mittee is almost identical with the one proposed 
by the Senate Committee, except that the former 



ing that of the United States, are extremely wary of the 
possibility of being bound by international obligations to 
which they have not specifically consented. The Congress 
has attached reservations In accepting the constitution of 
Fao and Unesco to safeguard this Government against 
amendments to the constitutions of those organizations 
imposing new obligations upon the United States without 
its consent. 

" 93 Cong. Rec, p. 8447 (July 3, 1947). 

" Ibid., p. 8448. 

■"gs Cong. Rec., p. 8493 (July 7, 1947). 

"'H. Hept. 979, 80th Cong., 1st sess., pp. 1-2 (1947). 



November 2, 1947 



845 



contains a one-year escape clause instead of the 
90-day provision.*"" 

C. The Iniemational Children's Emergency Fund 
Article 55 of the United Nations Charter im- 
poses upon the Organization an important obli- 
gation, in the following words : 

With a view to the creation of conditions of stability 
and well-being which are necessary for peaceful and 
friendly relations among nations based on respect for 
the principle of equal rights and self-determination of 
peoples, the United Nations shall promote: 

a. higher standards of living, full employment, and 
conditions of economic and social progress and 
development ; 

b. solutions of international economic, social, health, 
and related problems; and international cultural and 
educational cooperation ; and 

c. universal respect for, and observance of, human 
rights and fundamental freedoms for all without dis- 
tinction as to race, sex, language, or religion. 

One of these vital international health and 
social problems concerns the children of Europe 
and Asia. Millions of children in these areas are 
suffering from undernourishment, malnutrition, 
and disease as a result of destruction and disloca- 
tion wrought by World War II. The United Na- 
tions took a significant step forward in alleviating 
the suffering of these children when its Economic 
and Social Council in September 1946 unani- 
mously passed a resolution recommending the 
creation by the General Assembly of an Interna- 
tional Children's Emergency Fund, subject to the 
control of the Economic and Social Council. The 
recommendation was further made that the Secre- 
tary-General of the United Nations prepare for 
the General Assembly, in consultation with the 
President of the Economic and Social Council, the 
Director General of the United Nations Relief 
and Rehabilitation Administration (Unrra), 
and the Standing Committee of the latter, a draft 
resolution creating such a Fund."^ Wlien the 



°° See note 55, supra. 

" U.N. doc. E/235, Oct. 9, 1946. This action came about 
through consultation and cooperation with the Unbea 
Council, which had, several weeks previously at its Geneva 
session, originated the proposal for the establishment of 
the Fund in view of the disastrous effect the impending 
liquidation of Unrba was expected to have on child feed- 
ing, an important Uneea activity. See John J. Charnow, 
"The International Children's Emergency Fund", Bulletin 
of Mar. 16, 1947, p. 466. 

"^ The Main Committees of the General Assembly are : 
846 



General Assembly met for the second part of its 
first session, the draft resolution, which had 
meantime been prepared and had been approved 
unanimously by the General Assembly's Third 
Committee,''^ received Assembly approval at its 
fifty-sixth plenary meeting, December 11, 1946. 

The more important provisions of the General 
Assembly resolution establishing the Fund re- 
strict its benefits to children and adolescents of 
countries which were victims of aggression and 
for general child-health purposes."^ Paragraph 
2 (a) states that "The Fund shall consist of any 
assets made available by Unrra or any vohmtary 
contributioiis made available by Governments, 
voluntary agencies, individual or other sources. 
It shall be authorized to receive funds, contribu- 
tions or other assistance from any of the forego- 
ing sources ; to make expenditures and to finance 
or arrange for the provision of supplies, material, 
services and technical assistance for the further- 
ance of the foregoing purposes. . . . "(italics 
supplied by the author.) ^* Paragraph 4(c) pro- 
vides that "To the maximum extent feasible, the 
utilization of the staff and technical assistance 
of specialized agencies, in particular the World 
Health Organization or its Interim Commission, 
shall be requested, with a view to reducing to a 
minimum the separate personnel requirements of 
the Fund"."^ The Fund is based upon the con- 
cept of leaving with national governments the 
primary responsibility for child-welfare pro- 
grams. Within each country, the responsibility 
for child welfare rests with the appropriate gov- 
ernmental authorities, voluntary agencies, and in- 
dividual citizens. The purpose, then, of the Fund 
is essentially one of providing sufficient supple- 
mentary assistance, where needed, to make 
national programs of child welfare a i-eality.*^ 

The monetary contribution made by the United 
States Government, through Congressional appro- 



(1) Political and Security (including the regulation of 
armaments); (2) Economic and Financial; (3) Social, 
Humanitarian and Cultural; (4) Trusteeship; (5) Ad- 
ministrative and Budgetary; and (6) Legal. See Pro- 
visional Rules of Procedure for the Qeneral Assembly, 
rule 101, U.N. doc. A/71/Rev. 1, Apr. 28, 1947, and U.If. 
Weekly Bulletin, Sept. 16, 1947, p. 357. 

*■ The complete text of the resolution will be found in 
U.N. doc. A/64/Ada. 1, Jan. 31, 1947, pp. 90-93. 

" Ibid., p. 91. 

"Ibid., p. 92. 

" Charnow, op. cit., p. 467. 

Department of State Bulletin 



priation, attests to this Government's willingness 
and readiness to take part in this worthy program 
of supplementary assistance since, obviously, the 
effective operation of the Fund is possible only 
through the financial resources placed at its dis- 
posal by voluntary agencies, private individuals, 
and, in the main, by governments."^ In this great 
humanitarian field, too, the First Session of the 
Eightieth Congress, in enacting Public Law 84,** 
has demonstrated its ready support and has ful- 
filled, for its part, the hope expressed in the As- 
sembly resolution that governments give the Fund 
their generous assistance. Section 1, Public Law 
84, "Providing for relief assistance to the people 
of countries devastated by war", contains a pro- 
viso that from the $350,000,000 authorized to be 
appropriated for relief assistance, ". . . the 
President shall make contributions to the Inter- 
national Children's Emergency Fund of the 
United Nations for the special care and feeding of 
children, and such contributions shall not be sub- 
ject to the limitations and requirements provided 
in this joint resolution, but after $15,000,000 has 
been so contributed, no further contributions shall 
be made which would cause the aggregate amount 
so contributed by the United States (1) to con- 
stitute more than 57 per centum of the aggregate 
amount contributed to said fund by all govern- 
ments not receiving assistance from said fund, in- 
cluding the United States; or (2) to exceed 
$40,000,000, whichever is the lesser." This is the 
response of a government which has consistently 
shovm generous regard for the humanitarion needs 
of society — less than six months following the call 
of the General Assembly for governmental funds 
to assist the unfortunate children of the world. 

IV. Responsibilities Over Non-Self-Governing 
Territories »' 

Article 73 of the United Nations Charter pro- 
vides, in part, that : 

Members of the United Nations which have or assume 
responsibilities for the administration of territories whose 
peoples have not yet attained a full measure of self- 
government . . . accept as a sacred trust the ob- 
ligation to promote to the utmost . . . the well- 
being of the inhabitants of these territories, and to this 
end : ... to promote constructive measures of de- 
velopment, to encourage research, and to cooperate with 
one another . . . with a view to the practical 



achievement of the social, economic, and scientific pur- 
poses set forth in this Article .... 

The Charter thus obligates members of the United 
Nations having responsibility for the administra- 
tion of non-self-governing territories to cooperate 
with one another for social, economic, and scien- 
tific purposes. 

A. Caribbean Cormnission 

One of the regional agencies established to pro- 
mote the cooperation envisaged in article 73 is the 
Caribbean Commission.'" The history of the 
Commission as an international consultative 
agency specifically designed to promote the eco- 
nomic and social advancement of the non-self- 
governing territories in the Caribbean region goes 
back to March 9, 1942, when the United States and 
the United Kingdom issued a joint communique 
establishing the Anglo-American Caribbean Com- 
mission. This was a temporary undertaking, so 
far as the United States Government was con- 
cerned, based upon the emergency created by 
World War II.'" In 1945 France and the Neth- 
erlands accepted invitations to participate in the 
Commission's activities. Establislmient of the 
Caribbean Commission was formally provided for 
on October 30, 1946, by an agreement signed in 
Washington by Kepresentatives of the United 
States, the United Kingdom, France, and the Neth- 



"The Fund has set a goal of $450,000,000. Of this 
amount, $400,000,000 will be needed for supplementary 
feeding of 700 calories a day to infants, children, and ex- 
pectant and nursing mothers. The total cost for clothing, 
shoes and other items is estimated at $50,000,000. Char- 
now, op. cit., p. 469. 

"'Public Law 84, 80th Cong., 1st sess. (May 31, 1947). 
This contribution to the Fund should not be confused with 
H.R. 1938, which would have authorized appropriation 
for contribution by the President to the Fund of money 
earned by conscientious objectors during the war (approxi- 
mately $1,229,000 according to H. Kept. 692, 80th Cong., 
1st sess. (1947)) and now in the miscellaneous receipts 
of the Treasury Department. H.R. 1938 passed the House 
July 7, 1947, but the Senate took no action on this measure 
or its companion bill (S. 1502). 

™ The United States and Non-Self-Goveming Territories, 
Department of State publication 2812. 

" For an excellent review of the background, formation, 
and activities of the Commission, see, in general, H. 
Kept. 956, 80th Cong., 1st sess. (1947). 

'"Ibid., p. 2. 



November 2, 1947 



847 



erlands." The United States Representative 
signed the document "reserving the right to await 
Congressional consideration before giving notice 
of approval." 

The specific scope of the Commission is sug- 
gested in the Caribbean agreement preamble as 
being that of ". . . promoting scientific, tech- 
nological, and economic development in the Carib- 
bean area and facilitating the use of resources and 
concerted treatment of mutual problems . . .". 
Article IV of the agreement provides, in part, 
that the Commission shall concern itself with 
economic and social matters of common interest 
to the Caribbean area, particularly agriculture, 
communications, education, fisheries, health, hous- 
ing, industry, labor, social welfare, and trade." 
Its terms of reference are thus restricted to eco- 
nomic and social matters. Further, it is a consul- 
tative and advisory, not an executive, body and 
will in no way affect existing or future constitu- 
tional relations and responsibilities of any member 
government and its territories. The principal 
function of the Commission, whether acting di- 
rectly or through its auxiliary bodies, is to assist 
both the metropolitan countries and the territorial 
governments in the study of problems which re- 
quire regional treatment for their efficient solution. 

Although the Commission is not presently re- 
lated to the United Nations, it is clear that its ob- 
jectives are in full accord with the Charter of the 
United Nations." Apart, however, from the co- 
operation with the United Nations which partici- 



" The full text of the agreement is contained in De- 
partment of State publication 2812, pp. 64-71. 

'"Ibid., p. 65. 

" Art. XVIII of the agreement provides : 

"1. The Commission and its auxiliary bodies, while 
having no present connection with the United Kations, 
shall cooperate as fully as possible with the United Na- 
tions and vAth appropriate specialized agencies on mat- 
ters of mutual concern within the terms of reference of 
the Commission. 

"2. The Member Governments undertake to consult 
with the United Nations and the appropriate specialized 
agencies, at such times and in such manner as may be 
considered desirable, with a view to defining the relation- 
ship which shall exist and to ensuring effective coopera- 
tion between the Commission and its auxiliary bodies 
and the appropriate organs of the United Nations and 
specialized agencies, dealing with economic and social 
matters." (Italics supplied by the author.) Jbid., p. 70. 

848 



pation in the Commission makes possible, there is 
also to be taken into account the strategic interest 
in the Caribbean area which has been traditional 
in the foreign policy of the United States.'^ The 
First Session of the Eightieth Congress has taken 
specific note of these two considerations, in the 
preamble to H. J. Ees. 231, a joint resolution 
"Providing for membership and participation by 
the United States in the Caribbean Commission 
and authorizing an appropriation therefor", in- 
troduced July 8, 1947, in the House of Representa- 
tives.™ The measure was favorably reported by 
the House Committee on Foreign Affairs eight 
days later and passed the House of Representa- 
tives, July 21, 1947, less than two weeks from the 
time of its original introduction. The House 
committee report stated that the committee was 
". . . impressed with the practical nature of 
the subjects which the Conmiission has dealt with 
in its brief record" and that "It is apparent from 
its reports that the Commission has confined its 
undertakings to those activities whicli are appro- 
priate for international cooperation in the area 
concerned and which have a direct and practical 
relationship to concrete problems of the area".'' 
On the Senate side, the Committee on Foreign Re- 
lations approved the measure and reported it 
favorably to the Senate, with one technical amend- 
ment designed to clarify the amount of money to be 
authorized for contribution to the Commission, as 
distinct from expenses incident to participation 
therein, including salaries of the United States 
Commissioners, alternates, and other related ex- 



" The United States responsibilities are concerned with 
Puerto Rico and the Virgin Islands ; the British Gov- 
ernment principally with respect to the Barbados, Trini- 
dad, the Windward and Leeward Islands, and Jamaica ; 
the French Government principally with respect to Mar- 
tinique and Guadeloupe ; and the Netherlands Govern- 
ment principally with respect to Surinam, Curagao, and 
other small islands adjoining Martinique. (H. Rept. 
956, 80th Cong., 1st sess., pp. 4-5 (1047).) 

"■ The preamble reads, in part : "Whereas the purpose of 
the Caribbean Commission is to encourage and strengthen 
international cooperation in promoting the economic 
and social welfare and advancement of the non-self-gov- 
erning territories in the Carribbean area, whose economic 
and social developtnent is of vital interest to the security 
of the United States, in accordance with the priticiples 
set forth in chapter XI of the Charter of the United 
Nations ..." (Italics supplied by the author.) 

"H. Rept, 956, 80th Cong., 1st sess. (1947), p. 6. 

Department of State Bulletin 



penses." Here H. J. Res. 231 lies, but in view 
of the Senate Committee's observations that the 
organization contemplated in the resolution is re- 
latively small and unpretentious, that the cost to 
the United States will be slight, and that the ad- 
vantages which flow from membership in the Com- 
mission to both the United States and the peoples 
of the area involved are significant,'* it is hoped 
that the Second Session of the Eightieth Congress 
will not fail to complete successfully the action 
initiated by the First Session.*" 

B. South Pacific ComTnission 

The South Pacific Commission is the second of 
the two intergovernmental regional agencies to 
promote the economic and social advancement of 
non-self-governing territories which the First 
Session of the Eightieth Congress had for its 
consideration. Experience gained from the func- 
tioning of the Caribbean Commission provided a 
working basis for the creation of this new agency, 
since four of the six governments at the South 
Seas Conference, which on February 6, 1947, at 
Canberra, Australia, provided for establishment 
of the Commission, were already "members" of 
the Caribbean Commission. The Governments of 
Australia and New Zealand were the Governments 
added to those which had created the Caribbean 
Commission, in view of the especial interest of 
these two Governments in the South Pacific area. 

The background of the formation of the South 
Pacific Commission and an analysis of the agi'ee- 
ment establishing that agency have been fully 
described elsewhere.^^ For our purposes here, it 
will suffice to point out that the agreement was 



" S. Kept. 6.S4, 80th Cong., 1st sess., pp. 1-2 (1947). 

" ma., p. 1. 

*' Assuming approval in the Senate, the joint resolu- 
tion would, of course, go back to the House for its con- 
currence, in view of its amended form. However, 
favorable action by the House on the amended measure 
would almost he certain, in view of the fact that the 
House Committee was apprised, too late for House cor- 
rection, of the technical error contained in the House 
measure. 

''Emil J. Sady, Report on the South Seas Conference: 
With an Analysis of the Agreement Establishing the 
South Pacific Commission, Buixetin of Mar. 16, 1947, 
p. 459. The full text of the agreement, together with a 
"Resolution Concerning Immediate Projects" will be 
found in South Seas Commission Conference Papers, doc. 
P/18, Feb. 6, 1947. 

"^ See, in general, H. Kept. 957, 80th Cong., 1st sess. 

November 2, 7947 

765420—47 2 



signed ad referendum by the United States; the 
agency is designed as a consultative and advisory 
body, like the Caribbean Commission, to the par- 
ticipating governments; and, although it is not 
given the power to concern itself with political 
matters or questions of defense or security, it will 
indirectly contribute to the political stability and 
therefore the security of approximately 2 million 
inhabitants of the 15 non-self-governing territor- 
ies in the South Pacific region, through the pro- 
motion of their economic and social advancement.'^ 
H. J. Res. 232, ''Providing for membership and 
participation by the United States in the South 
Pacific Commission and authorizing an appropria- 
tion therefor", similar to the Caribbean Commis- 
sion measure,*^ was favorably reported by the 
House Committee on Foreign Affairs July 16, 1947, 
and passed the House July 21, 1947. This reso- 
lution passed the Senate in the closing hours of 
the First Session, but because of an amendment 
similar to that proposed on the Caribbean Com- 
mission must be sent back to the House for con- 
currence. This ready response during the First 
Se.ssion is undoubtedly due, in large measure, to 
the demonstrated strategic importance of the area 
in World War II and its possible strategic im- 
portance in the future.** Enactment of H. J. Res. 
232 into law during the Second Session seems 
likely. 

V. The United States and Trusteeship 
Responsibilities 

Article 75 of the United Nations Charter pro- 
vides for an international trusteeship system 



(1947). The United States is responsible for the admin- 
istration of American Samoa, acquired by the treaty of 
Dec. 2, 1890, with Germany and Great Britain, and for 
a number of small, uninhabited islands in the area. 

'^ H. J. Res. 232 contains an additional section, sec. 4, 
autliorizing the Secretary of State to detail qualified U.S. 
governmental employees to the South Pacific Commission. 
This section serves to implement a re.'folution of the South 
Seas Conference, "That with a view to facilitating the 
work of the proposed South Pacific Commission, the South 
Seas Conference urges the participating Governments to 
permit oflicers in their own services to be made available 
to the staff of the Commission on secondment or loan." 
South Seas Commission Conference Papers, doc. P/19, Feb. 
C, 1947, pp. 1-2. There is, in addition, a difference in the 
amounts authorized to be contributed : $142,000 for the 
Caribljean and $20,000 for the South Pacific Commission. 

"H. Rept. 957, 80th Cong., 1st sess., p. 1 (1947). 



849 



for the administration of such territories as may 
be placed thereunder by subsequent individual 
agreements. Article 76 of the Charter states that 
the basic objectives of the trusteeship system 
shall be: (1) the furtherance of international 
peace and security; (2) the promotion of the poli- 
tical, economic, social, and educational advance- 
ment of the inhabitants of the trust territories 
and their progressive development toward self- 
government or independence; (3) the encourage- 
ment of respect for human rights and for funda- 
mental freedoms for all without distinction as to 
race, sex, language, or religion; and (4) the en- 
suring of equal treatment in social, economic, and 
commercial matters for all members of the United 
Nations and equal treatment for the latter in the 
administration of justice. The Charter further 
provides that the trusteeship system should apply 
to such territories in the following three cate- 
gories as might be placed thereunder by means 
of trusteeship agreements: (a) territorities now 
held under mandate; (b) territories which may 
be detached from enemy states as a result of 
World War II; and (c) territories voluntarily 
placed under the system by states responsible for 
their administration.^ 

On February 9, 1946, the General Assembly 
adopted a resolution which included an invitation 
to states administering mandated territories to 
undertake practical steps, together with the other 
states directly concerned, for the negotiation of 
trusteeship agreements.^ In response to this call 
and marking a distinct development in the opera- 
tion of the international trusteeship system, the 

"" U.N. Charter, art. 77, par. 1. 

"The United States and the United Nations, Depart- 
ment of State publication 2484, p. 43. 

"The Cairo declaration of Dec. 1, 1943, stated that, 
". . . Japan shall be stripped of all the islands in the 
Pacific which she has seized or occupied since the begin- 
ning 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 Republic of China. Japan will also be expelled 
from all other territories which she has taken by violence 
and greed." This declaration was reaffirmed by the proc- 
lamation issued by the heads of the Governments of the 
United States, China, and the United Kingdom on July 26, 
104.5, at Potsdam, and subsequently adhered to by the 
Union of Soviet Socialist Republics. Japan accepted these 
terms by the instrument of surrender on Sept. 2, 1945. 
(S. Rept. 471, 80th Cong., 1st sess., p. 2 (1947).) See also 
Bulletin of Sept. 9, 1945, p. 364. 

850 



President on November 6, 1946, announced that 
the United States was prepared, as administer- 
ing authority, to place under trusteeship the 
former Japanese Mandated Islands and any Jap- 
anese islands for which it assumes responsibility 
as the result of World War II, consisting of the 
Marianas (except the United States possession of 
Guam), Caroline, and Marshall Islands in the 
Central Pacific.*' Three months later, on Febru- 
ary 17, 1947, the text of a draft trusteeship agree- 
ment providing for the welfare of the native 
population of these islands, for the security in- 
terests of the United States, and for the obliga- 
tions of this Goverim:ient as administering au- 
thority under the Charter was submitted to the 
Secretary-General of the United Nations and 
formally presented to the Security Council on 
February 26, 1947, by Ambassador Austin, United 
States Representative to the United Nations.** 
By unanimous vote on April 2, 1947, the Security 
Council approved, with three minor changes 
which had been accepted by the United States 
Representative upon instructions from the United 
States Government, the text of the draft agree- 
ment which had been submitted in accordance 
with articles 82 and 83 of the United Nations 
Charter.*^ 

Article 16 of the draft agreement defines the 
steps necessary for the agreement to come into 
force, under the Charter of the United Nations 
and the Constitution of the United States.^ Pur- 
suant to this article, the President on July 3, 1947, 
recommended to the Eightieth Congress, First 
Session, that it pass legislation in the form of a 

" See, in general, Robert R. Robbins, "United States 
Trusteeship for the Territory of the Pacific Islands", Bin> 
LETiN of May 4, 1947, p. 783. See also Buixetin of Mar. 9, 
1947, p. 416, for statement by Ambassador Austin made 
before the Security Council, and Department of State 
publication 2784. 

"Art. 82 provides: "There may be designated, in any 
trusteeship agreement, a strategic area or areas which 
may include part or all of the trust territory to which 
the agreement applies, without prejudice to any special 
agreement or agreements made under Article 43", and 
art. 83, par. 1, that "All functions of the United Nations 
relating to strategic areas, including the approval of the 
terms of the trusteeship agreements and of their altera- 
tion or amendment, shall be exercised by the Security 
Council." 

°"S. Rppt. 471, 80th Cong., 1st sess., p. 11 (1947) ; com- 
plete text of agreement, pp. 6-11. 

Department of State Bulletin 






joint resolution authorizing the President to ap- 
prove the trusteeship agreement for the former 
Japanese Mandated Islands (to be known as the 
"Territory of the Pacific Islands"). The Presi- 
dent pointed out that the terms of the agreement 
conform with the policy of the United States and 
with its obligations under the United Nations 
Charter and that its terms amply provide for the 
political, economic, social, and educational de- 
velopment of the inhabitants of the trust territory, 
and at the same time protect the security interests 
of the United States.®^ The Congress was quick to 
grasp the importance and significance of the trus- 
teeship agreement."- On July 14, 1947, the Senate 
completed the action initiated by the House of 
Representatives, in passing H. J. Res. 233, a joint 
resolution "Authorizing the President to approve 
the trusteeship agreement for the Territory of the 

"Ibid., p. 3. 

" See remarks of Congressman Fulton in 93 Cong. Bee, 
pp. 8905-8907 (July 11, 1947) and the statement of Senator 
Vandenberg, ibid., p. 9027 (July 14, 1947). 

" Public Law 204, 80th Cong., 1st sess. (July 18, 1947). 

** Not all of the activities have been described in this 
article. Other activities include tbe following measures, 
which have not received final Congressional action during 
the First Session: (1) convention on privileges and im- 
munities of the United Nations (S. J. Res. 136), which 
passed the Senate July 17, 1947, and was referred to the 
House Committee on Foreign Affairs, July 18, 1947 (see 
S. Kept. 559, 80th Cong., 1st sess. (1947)); (2) Inter- 
national Ijabor Organization constitution : instrument of 
amendment (S. J. Res. 117) which passed the Senate June 
2, 1947, and was reported, with amendment, to the House 
on July 24 by the Foreign Affairs Committee (see S. Rept. 
208 and H. Rept. 1057, 80th Cong., 1st sess. (1947)); 
(3) International Labor Organization: final articles re- 
vision convention, 1946 (no. 80) — the Senate received 
communication from the President on June 24, 1947, but 



Pacific Islands", which became law four days 
later.'^ 

VI. Conclusion 

One cannot help but sense the importance of 
the wide range of activities engaged in by the First 
Session of the Eightieth Congress with regard to 
the United Nations.^* However, it has not been 
our intent to dwell upon the host of refined inter- 
national legal points which suggest themselves, 
upon an examination of the legislative material 
relating to those activities. What is intended here 
is to summarize in convenient form those activi- 
ties of the First Session of the Eightieth Congress 
which best illustrate the support rendered by the 
national legislative body of the United States in 
shaping a better world for everyone, everywhere 
through the United Nations. 



has taken no action ; (4) International Labor Organiza- 
tion : nine conventions formulated at Seattle, 1946 — the 
Senate received communication from the President on 
June 23, 1947, but has taken no action; (5) protocol 
amending the convention on international civil aviation 
— the Senate received a messase from the President trans- 
mitting the protocol and a rejjort from the Secretary 
of State, July 11, 1947 — referred to the Foreign Relations 
Committee; and (6) several Congressional resolutions, 
sponsored by various members of the Senate and House, 
which urge an immediate revision of the United Nations 
Charter (see S. Con. Res. 23, favoring the strengthening 
of the United Nations as a means of preventing war and 
maintaining world peace ; S. Con. Res. 24, relative to the 
President's calling a general conference of the United 
Nations, with a view to strengthening such organization 
to prevent war; and H. Con. Res. 59-68, to call a con- 
ference for the revision and strengthening of the United 
Nations Charter). For the convenience of But.letin 
readers, a complete list of legislative matters touching 
on the foreign relations of the United States generally 
is set forth in the Bttlletin of Sept. 28, 1947, p. 651. 



November 2, 1947 



851 



FOREIGN AID AND RECONSTRUCTION 



Special Session of Congress Called To Meet Crisis in Western Europe 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House October 23] 

I have met tliis afternoon with a group of Con- 
gressional leaders. I presented to them detailed 
information concerning the alarming and continu- 
ing increase in prices in this country and the situ- 
ation regarding the need for emergency foreign 
aid. I informed them that I had concluded it was 
necessary to convene the Congress on Monday, 
November I7th. 

By that date the members of Congress who are 
now abroad obtaining first-hand information will 
have returned to the United States. 

There are two compelling reasons for convening 
the Congress at an early date. 

It is urgently necessary for the Congi"ess to 
take legislative action designed to put an end to 
the continued rise in prices, which is causing hard- 
ship to millions of American families and endan- 
gering the prosperity and welfare of the entire 
Nation. When the Congress meets, I shall recom- 
mend to it suitable measures for dealing with in- 
flation, high prices, and the high cost of living. 

It is also necessary for this Government to take 
adequate steps to meet the crisis in western Europe, 
where certain countries have exhausted their finan- 
cial resources and are unable to purchase the food 



and fuel which are essential if their people are to 
survive the coming winter. 

It now appears that the minimum needs of 
France can be met with present funds only until 
about the end of December and that it will enter 
the new year without funds to pay for essential 
imports. Italy's needs are even more immediate, 
for Italy will require substantial assistance before 
the end of this year. Moreover, it appears that 
additional funds will be needed to maintain our 
position in occupied areas. It is clear, therefore, 
that Congressional action cannot be delayed imtil 
January. 

The convening of the Congress in November will 
also furnish an opportunity for it to speed up its 
consideration of the part to be played by the 
United States in the long-range European recovery 
program. 

I have just signed a proclamation convening the 
Congress at twelve o'clock noon on Monday, 
November 17, 1947. 

Tomorrow evening, at ten o'clock, over all the 
networks, I shall make a radio address to the 
American people describing the present situation 
in detail and explaining why action by the Con- 
gress is necessary prior to the regularly scheduled 
session in January. 



PROCLAMATION 27S1> 



Whereas the public interest requires that the 
Congress of the United States should be convened 
at twelve o'clock, noon, on Monday, the Seven- 
teenth day of November, 1947, to receive such com- 
munication as may be made by the Executive; 

' 12 Federal Register 6941. 



Now THEREFORE, I, Harry S. Truman, President 
of the United States of America, do hereby pro- 
claim and declare that an extraordinary occasion 
requires the Congress of the United States to con- 
vene at the Capitol in the City of Washington on 
Monday, the Seventeenth day of November, 1947, 



852 



Department of State Bulletin 



at twelve o'clock, noon, of which all persons who 
shall at that time be entitled to act as members 
thereof are hereby required to take notice. 

In witness wiiekeof, I have hereunto set my 
hand and caused to be affixed the great seal of the 
United States. 

Done at the City of Washington this twenty- 
third day of October, in the year of our 

[seal] Lord nineteen hundred and forty- 
seven, and of the Independence of the 



rOKCIGN AID AND MCONSTKUCTION 

United States of America the one hundred and 
seventy-second. 




By the President : 
Robert A. Lovett 
Acting Secretary of State 



'A PERIOD OF CRISIS IS NOW AT HAND' 



Address by the President' 



My Fellow Countrymen: I have called the Con- 
gress to meet on November 17 to consider the prob- 
lems of high prices at home and emergency aid 
abroad. These are questions of vital importance 
to all of us. I want to talk to you frankly tonight 
about both of these problems. 

Since V-J Day we have moved steadfastly to- 
ward two goals. We have sought peace and pros- 
perity — prosperity for all our people, peace for all 
the world. 

As we measure our progress toward these goals 
and chart the course ahead, we find that recent 
events have raised new and dangerous obstacles 
in our path. Our domestic prosperity is en- 
dangered by the threat of inflation. The peace of 
the world is endangered by hunger and cold in 
other lands. 

These obstacles must be overcome by prompt 
and courageous action. Legislation by the Con- 
gress is essential. The need is too pressing — the 
results of delay too grave — for congressional action 
to wait until the next regular session in January. 

Let me speak first about our domestic prosperity. 

In many ways we are now more prosperous than 
we have ever been. More workers have jobs — and 
at better wages — than at any time in the past. 
Farmers are receiving a greater share of our na- 
tional income than they have in many years. 
Manufacturers and retailers are enjoying record 
business and record earnings. We are producing 



more goods for civilian use than ever before in 

history. 

But these signs of prosperity do not tell the 
whole story. Although production is high, prices 
are shooting up. Although nearly everyone is 
employed, many people cannot afford essential 
items. Although national income has reached a 
new high, the buying power of many people is 
shrinking. 

A few figures — and they are startling figures — 
show how the cost of living is going up. 

Since the middle of 1946 this is what has hap- 
pened : clothing prices have gone up 18 percent ; 
household furnishings have gone up 18 percent; 
food has gone up 40 percent. The average for all 
items is up 23 percent. 

And the cost of living is still climbing. In the 
last three months it has climbed at a rate of over 
16 percent a year. 

Wliolesale prices are also increasing. Since the 
middle of 1946 textiles have gone up 30 percent ; 
metals up 35 percent, and building materials, up 
41 percent. These increases in wholesale prices 
affect every industry and trade, and they will 
eventually be reflected in retail prices. 

For some of our people the increased cost of 
living has been offset by increased incomes; but 

' Broadcast over all major networks on Oct. 24, 1947, 
and released to the press by the White House on the same 
date. 



November 2, 1947 



853 



FOREIGN AID AND RBCONSTRUCTION 

for most of our people increases in income are 
falling behind increases in the cost of living. 

Millions of families of low or moderate income 
are already victims of inflation. These families 
are using up savings. They are mortgaging their 
future by going into debt. They are doing with- 
out things they should have. 

I know the worries of the breadwinner whose 
earnings cannot keep up with the high cost of 
living. I know of the difficulties of the housewife 
who tries to stretch the family income to pay for 
groceries and clothes and rent. I know how hard 
it is to skimp, and save, and do without. 

Wlien so many people are not sharing fairly 
in prosperity, the road is being paved for a re- 
cession or a depression. 

None of us can aiford to overlook this danger. 
Farmers will remember how they suffered after 
1920, because price inflation was followed by a 
collapse. Businessmen and bankers will recall 
how they suffered after 1929, because wild specu- 
lation was followed by the depression. Even 
those who are prosperous today are prospective 
victims of inflation tomorrow. 

Inflation must be stopped before it is too late. 

It is within our power to stop it. Our economy 
is basically sound. It has been immensely 
strengthened in recent years. The average buy- 
ing power of our people today is 40 percent 
higher than it was in 1929. But we are losing 
some of this gain as rising prices pull away from 
incomes. We can prevent further loss and can 
even go on to new gains, if we use our economic 
strength wisely. 

The major cause of high prices in this country 
is the great demand among our own people for 
available goods. An attempt has been made to 
place the blame upon our foreign-aid program, 
but this is not borne out by the facts. During the 
war we learned that we could improve our stand- 
ard of living with less than 60 percent of our out- 
put available for civilian use. At present, even 
with current exports to all countries, a far greater 
percent of our production is available for civil- 
ian use. With sound policies, we can protect our 
own standard of living and carry on a substantial 
foreign-aid program at the same time. 

We now have — and will continue to have — 
enough food and clothing and other goods in the 
United States to meet our needs. But excessively 

854 



high prices mean that these goods are not being 
distributed wisely and fairly. High prices ration 
the essentials of life by squeezing out the less 
fortunate of our citizens. We can meet this 
problem only by bringing prices into line with the 
incomes of our people. 

In our free-enterprise system, we place major 
reliance upon voluntary action by businessmen, 
farmers, workers, and consumers. That is why 
I have repeatedly urged voluntary price 
reductions. 

But the responsibility of Government extends 
beyond aiding voluntary action. The Govern- 
ment must respond to the needs of the people. 

The American people now have a compelling 
need for protection from the dangers of price in- 
flation and the rising cost of living. They recog- 
nize this need and are asking for the protection 
to which they are entitled. The Government 
must assume a larger share of the responsibility 
for putting an end to excessive prices and the hard- 
ships and dangers which accompany them. For 
this purpose prompt enactment by the Congress of 
comprehensive legislation is necessary. 

This, then, is one reason why I am calling the 
Congress into session on November 17. Wlien it 
meets I shall recommend a program for dealing 
with inflation, high prices, and the high cost of 
living. Adequate measures, enacted in time, are 
necessary to correct the present situation. 

Let me turn now to the other reason for calling 
the Congress into session. This is the problem of 
hunger and cold and human suffering abroad. It 
is the problem of men and women and children who 
look to us for help at this crucial time. 

We are following a definite and clear foreign 
policy. That policy has been, is now, and shall 
be to assist free men and free nations to recover 
from the devastation of war, to stand on their own 
feet, to help one another, and to contribute their 
full share to a stable and lasting peace. We fol- 
low that policy for the purpose of securing the 
peace and well-being of the world. It is nonsense 
to say that we seek dominance over any other na- 
tion. We believe in freedom, and we are doing all 
we can to support free men and free governments 
throughout the world. 

In furtherance of this foreign policy, we now 
have under consideration the part which the 
United States should play in aiding a long-range 

Department of State Bulletin 



recovery program for westei'ii Europe. This plan 
presents great hope for economic security and peace 
in that vital part of the world. It will take some 
time to complete the consideration of this plan 
and to make all the important decisions required 
for putting it into effect. 

However, a period of crisis is now at hand. The 
perils of hunger and cold in Europe make this^ 
winter a decisive time in history. All the prog- 
ress of reconstruction and all the promise of future 
plans are endangered. If European nations are 
to continue their recovery, they must get through 
this winter without being crippled by economic 
paralysis and resulting chaos. 

In advance of our decision on the long-range 
European recovery plan, we must help some 
nations through this immediate crisis. The most 
imminent danger exists in France and in Italy. 
If the economies of these countries collapse and the 
people succumb to totalitarian pressures, there will 
be no opportunity for them or for us to look for- 
ward to their recovery so essential to world peace. 

Their first need is food. Exceedingly bad 
weather this year has caused the worst ci-ops in 
western Europe in a generation. Crop failures in 
France — the worst in 100 years — and in Italy make 
it necessary for those countries to import half the 
grain they need to live on during the coming 
months. 

The other major shortage is fuel. Fuel supplies 
were depleted by last year's severe winter. War 
damage to railroads and the reduced efficiency of 
miners laboring on an inadequate diet have pre- 
vented the rebuilding of fuel stocks. 

The financial reserves of France and Italy have 
been nearly exhausted by the cost of their imports 
since the end of the war. Rising prices in the 
United States and in other countries where they 
must buy have further reduced the purchasing 
power of their remaining funds. They now face 
the coming winter without sufficient resources to 
pay for essential food and fuel. 

The figures tell the story. 

France can meet her minimum needs, with 
present funds, until the end of December, but she 
will enter the new year without funds to pay for 
essential imports. The French will need 357 mil- 
lion dollars to carry them until March 31, 1948. 

Italy will not be able even to get through the 
rest of this year. Italy must have 142 million 
dollars to carry her until December 31 and an 



FOREIGN AID AND RECONSTRUCTION 

additional sum of 143 million to get through the 
first quarter of 1948. 

Serious difficulties have also been encountered 
in the occupied areas — Germany, Japan, and 
Korea. Additional funds will have to be appro- 
priated this year in order for us to maintain our 
position in these areas. 

It can readily be seen that congressional action 
to meet these needs cannot be delayed until 
January. 

My action in convening the Congress on No- 
vember 17 in no way reduces the necessity for 
pressing forward with our voluntary food-saving 
program. Dollars appropriated by the Congress 
cannot feed hungry people if there is no food for 
the dollars to buy. There will not be enough food 
unless we — the people of the United States — save 
vast quantities of grain. I am deeply gratified at 
the splendid response of the American people to 
our national food-saving program. It is an earn- 
est effort to meet the needs of humanity. 

Even with the proposed aid from this country, 
the people of Europe this winter will be on short 
rations. They will be cold, and they will be with- 
out many necessities. But our emergency aid 
will be definite assurance of the continuing sup- 
port of this nation for the free peoples of Europe. 

The two problems I have been discussing with 
you tonight — high prices at home and hunger and 
cold abroad — present a challenge to the American 
people. 

We could choose the course of inaction. We 
could wait until depression caught up with us, 
until our living standards sank, and our people 
tramped the streets looking for jobs. Other dem- 
ocratic nations would lose hope and become easy 
victims of totalitarian aggression. Tliat would 
be the course of defeatism and cowardice. 

Our other course is to take timely and forthright 
action. If we do this, we can halt the spiral of 
inflation at home, relieve hunger and cold abroad, 
and help our friendly neighbors become self- 
supporting once again. 

I know that it is the heartfelt wish of the Ameri- 
can people that action be taken which will over- 
come the obstacles to peace and prosperity con- 
fronting this nation. 

It is within our power to lead the world to peace 
and plenty. 

With resolution and united effort we shall 
achieve our goal. 



November 2, 1947 



855 



The Problem of the Reconstruction of Europe 



REMARKS BY THE SECRETARY OF STATE 



The discussion this evening is directed to the 
problem of the reconstruction of Europe. For 
many months both the Government and the people 
of the United States have been considering the 
growing dangers of the economic situation in 
Europe and our relation to the problem. Tliat 
Europe's need of assistance is real and urgent, I 
believe is no longer a matter of argument. And it 
is likewise evident that the United States of 
America in the present state of the world repre- 
sents the primary source from which this need 
can be met. 

I have endeavored on a number of occasions 
to make clear why in the view of this Government 
it is in the basic interest of the United States to 
do what it can within reason to meet these needs. 
I am sure that you all understand the vital im- 
portance to us of the preservation of European 
civilization. We cannot stand indifferent to the 
fate of the nations who are having great difficulty 
in recovering from the consequences of the war 
and are looking to us for assistance. These are 
people who hold the same views of international 
conduct as we do. If we are to be successful in 
our quest for peace in a decent world, we will 
be constantly in need of their strong cooperation. 

"When I made a public statement at Harvard 
on June 6 last," to quote from a more recent state- 
ment of mine, "it was plainly evident that a situa- 
tion had developed where we must immediately 
choose between two lines of action — either to con- 
cern ourselves solely with our own internal affairs 
despite our heavy commitments in Germany, Aus- 
tria, and Italy, while Europe suffered a complete 
political and economic demoralization; or we 
must take action to assist Europe in avoiding a 
disastrous disintegration with tragic consequences 
for the world. Therefore, the suggestion was 
made that the European countries, under the pres- 
sure of the dilemma which faced them, should 

' Made before the Herald-Tribune Forum in New York 
on Oct. 22, 1947, and released to the press on Oct. 23. 



join together in working out a mutual basis of 
cooperation for their own rehabilitation and 
should determine, on a businesslike basis, the de- 
gree and character of the outside assistance they 
calculated would be urgently needed over and 
above what was humanly possible for them to 
accomplish for themselves." 

Our Government has realized from the first the 
magnitude of this problem and the numerous pit- 
falls that lie in the way of its solution. Despite 
the urgency of the situation, sufficient time had to 
be allowed for the collection of all pertinent facts 
and opinions and a thorough study of all the 
elements, both foreign and domestic, which enter 
into the problem. We have the preliminary re- 
port of the 16 nations who met in Paris this sum- 
mer. We are beginning to receive reports from 
the various governmental groups who have been 
examining into our own resources and their rela- 
tionship to possible demands of the Euroj^ean 
situation. Commissions of Congress who have 
traveled extensively throughout Europe are re- 
turning to this country, and the results of their 
investigations are becoming available. 

I think it is important that you should under- 
stand something of the procedure which is now 
being followed by your Government in arriving 
at a conclusion and preparing a program for pres- 
entation to the committees of Congress and later 
to the Congress itself. At tlie present time, in 
fact every day of the week, including Saturdays 
and Sundays, a large portion of the personnel of 
the State Department and representative groups 
of other interested departments and agencies, such 
as the Treasury Department, the Departments of 
Commerce and Interior, the Departments of Agri- 
culture and Labor, for example, are engaged in 
daily sessions working together on data which I 
have described, to determine exactly what should 
be the program of this Government. 

I do not believe any project of our Government 
has ever received more careful study and prepara- 



856 



Department of State Bulletin 



tion than has this problem of the reconstruction of 
Europe. And I am certain that no governmental 
eifort has ever enjoyed such complete cooperation 
on the part of all the agencies concerned. When 
it is completed it will truly be a program of the 
United States Government and not of any one de- 
partment or agency. Your contribution should be 
of great value in bringing the people, the public 
opinion of the country, to the support of this great 
etfort. 



FORE/GN AID AND KtCONST RUCTION 

There has been constant reference to a Marshall 
plan. The reference to me personally was unfor- 
tunate, but the reference to a plan was definitely 
misleading. There was no plan. There was a 
suggestion. Now we are in the process of draft- 
ing a plan as a proposal to the Congi-ess of the 
United States. That is the situation at the mo- 
ment. 

The period of study and preparation is thus 
drawing to a close. The time of action is at hand. 



European Recovery — A Project for America 



BY ASSISTANT SECRETARY THORP > 



Never before have so many Americans asked so 
many questions about the facts of international 
life. This is a normal reaction of intelligent hu- 
man beings to the gravity and complexity of the 
world economic situation and the rapidity with 
which various aspects of it are changing. It re- 
flects the position of tremendous responsibility 
into which events have thrown the American peo- 
ple. We know that action or inaction on our part 
will have repercussions on the lives and welfare 
of millions of people beyond our own borders, not 
to mention our own security and well-being. 

Right now most of the questions concern the 
condition of Europe and especially the food crisis. 
People everywhere are asking why the countries 
of Europe are suddenly faced with a major food 
shortage more than two years after the war ended. 
Has not the United States generously appropri- 
ated billions for relief? Are conditions growing 
worse, in spite of the aid we have furnished? 
Could we not foresee and plan for this eventuality ? 

As a matter of fact, I doubt if there ever was 
a time when advance planning for the world was 
done on as grand a scale as that by the American 
Government for the international problems of the 
postwar world. Advance planning in the politi- 
cal field has given us the United Nations, and man's 
best hope up to now for lasting peace. The United 
Nations is now a going concern. It is solving 
problems day by day, although some with which it 
is faced are about as difficult as any which can be 
conceived. The early years of the United States 
Congress were not all quiet and placid. The 
United States can take great pride for leading the 
way to the establishment of the United Nations. 

November 2, 1947 

765420 — 17 3 



We must now follow through in the more difficult 
task of strengthening this international body and 
making it more effective. 

In the economic field there was also a plan fash- 
ioned to meet the difficult problems of the postwar 
period. During the war the concept of lend-lease 
had been established, thus doing away with one 
of the future obstacles to postwar recovery by 
obviating the necessity for huge payment trans- 
fers from our allies — payments which they were 
clearly unable to make, and we were not eager to 
receive. 

Postwar economic planning also embraced the 
establishment of four important international in- 
stitutions, two of which were designed to assist 
economic recovery and two to provide the basis 
for a more abundant life in years ahead. The first 
institution was Unrra, established to provide 
relief on a nonreimbursable basis to peoples who 
could not produce the bare necessities of life and 
did not have the means to purchase them abroad. 
Its primary objective was to sustain life, and the 
chief element of its program was food. The sec- 
ond institution — the International Bank for Re- 
construction and Development — was planned to 
provide credits to repair the extraordinary damage 
wrought by total war and to support the develop- 
ment of those areas whose living standards were 
abysmally low. These two organizations, Unrra 



' Address delivered before the Chicago Council on For- 
eign Relations, Chicago, on Oct. 23, 1947, and released to 
the press on the same date. Willard L. Thorp is Assistant 
Secretary of State for economic affairs. For an address 
by Mr. Thorp entitled ' 'Report on Geneva" see Department 
of State press release 840 of Oct. 22, 1947. 

857 



FOREIGN AID AND RECONSTRUCTION 

and the Bank, thus were designed to deal with the 
financial needs of the war-devastated countries 
during the early postwar period — the first meeting 
the relief needs in insolvent countries and the 
second providing credits which might be trans- 
formed into the physical capital needed to recover 
from the devastation of global war and to encour- 
age economic progress in underdeveloped areas. 

The two other institutions included in postwar 
economic blueprints — the International Monetary 
Fund and the International Trade Organization — 
represented long-term planning to assure a living 
and expanding pattern for the postwar world. 
The first was to offer some assurance that curren- 
cies would be convertible and to provide a means 
of stabilization which would reduce the monetary 
hazard in the exchange of goods between countries. 
The second was to deal with the problem of re- 
ducing artificial barriers to trade and eliminating 
trade discriminations. 

These institutions were planned to provide the 
framework within which it was hoped that a better 
world would be built. They were the product of 
bold planning. Their creation established inter- 
national responsibilities where they have never 
existed before. As in the case of any planning, 
certain assumptions had to be made, and some of 
these have not proved to be entirely correct. For 
one thing, the plan presupposed a degree of co- 
operation among the Great Powers which to date 
has been tragically absent. Secondly, there was 
a serious underestimation of the extent of wartime 
damage, the exhaustion of the people, and of the 
scope and complexity of the task of rebuilding 
entire economies wliose very fabrics were de- 
stroyed. 

In addition, recoveiy in Europe has been im- 
peded further by certain other unpredictable fac- 
tors which have placed large segments of the pop- 
ulation in a more critical position today than at 
any time since the fighting stopped. Chief among 
these is the fact that we did not provide a sufR- 
cient margin of safety to absorb the effects of un- 
foreseen disasters. Two crop failures in succes- 
sion have left Europe at a level of subsistence 
which has not only slowed down the recovery 
process but which threatens whole countries with 
collapse. 

Why does western Europe need grain so badly — 
now — two years after the war ? The factors which 

858 



brought about this grim food situation in Europe 
are those which, I am sure, will be readily under- 
stood by you Midwesterners who live in the great- 
est food-producing area on earth. 

Trained observers of the Department of Agri- 
culture have assessed the situation and reported 
the reasons in minute detail. In the main, the 
cause for the immediate situation is unusually bad 
weather conditions — cold of almost unprecedented 
intensity last winter that froze seed in the ground, 
spring floods that washed out crops and topsoil, 
followed by summer droughts that seared the al- 
ready meager crops. The disastrous freeze in 
France, for example, resulted in a 1947 wheat crop 
that was the worst since they have been keeping 
records. 

Secretary of Agriculture Clinton P. Anderson, 
who visited Europe this past summer and saw 
where thousands of tons of precious wheat had 
been lost, concludes that "western Europe has had 
a combination of bad circumstances almost with- 
out parallel in farming history. Farmers have 
struggled against too much water in planting sea- 
son and too little when the grain was coming into 
maturity. These failures were within a pattern 
already made dark by lack of seed, fertilizer, and 
machinery — disaster piled upon earlier disap- 
pointment." It is estimated that the reduced 
production in Europe will mean that European 
food imports will have to be increased by the 
equivalent of 250 million bushels of grain, even 
to maintain the low consumption levels of 1946- 
1947. 

However, these factors, serious as they are, only 
overlie long-term conditions inherently weak. 
Western and southern European countries have 
never produced enough food to maintain, without 
imports, what Americans consider a tolerable diet. 
Before the war, western Europe imported about 
half its bread grains and a very large proportion 
of its feed grains from eastern Europe, including 
eastern Germany. This intra-European trade has 
not existed to any considerable extent during the 
last few years. The reasons for this are that crops 
have also been poor in eastern Europe, and military 
devastation and political uncertainty have been 
great. Add to these difficulties the decreased em- 
phasis on large-scale production of grain which 
results from land-tenure reform plans, the lack of 
fertilizer, and the support of occupying armies. 
This means but one thing for western Europe — 

Department of State Bulletin 



increased reliance on the non-European world. 

World food production for the current year will 
be slightly below last year, a year which only 
equaled prewar levels. At the same time there 
has been a substantial gain in total population. In 
a few countries, including the United States, food 
consumption is above prewar. In many other 
countries there is a per capita dietary reduction 
ranging as high as 35 percent of prewar. 

Spelled out in energy units, the diet of the aver- 
age nonfarm individual in France contains about 
2,20G calories a day — about one fourth less than 
his prewar intake. In Greece the figure is 2,100 ; 
while in Italy, Germany, and Austria the diet of 
the city dweller may fall to less than 1,950 calories 
a day — more than one third less than the average 
American eats today. And it must be remembered 
that the calorie is only a measure of heat energy 
that food contains ; it tells nothing about balancing 
proteins, carbohydrates, or fats, nothing about 
vitamins, and, of course, nothing about palata- 
bility. It is clear that the European countries 
must have as their first requirement the elimina- 
tion of their basic calorie deficiencies in order that 
workers will have the incentive and strength to 
produce the coal and other industrial requisites 
so essential to a broad recovery movement. 

Wheat is the most important food in foreign 
trade because it is the cheapest source of calories 
in terms of volume and of cost. Luckily, we have 
had large wheat crops in this country for the last 
six years, due in part to unusually favorable 
weather. The 1947 wheat crop in the United 
States will exceed the highest previous record by 
more than 200 million bushels. However, bad 
weather conditions have resulted in a short corn 
crop here so that our export of corn and other 
coarse grains will be greatly reduced, and rela- 
tively large amounts of domestic wheat are being 
fed to livestock instead of corn. Exports to Eu- 
rope from other sources are expected to be some- 
what larger than last year but not enough to off- 
set the failure in European production. Larger 
American exports of wheat this year are therefore 
a necessary part of recovery in Europe. As you 
all know, various voluntary and cooperative meas- 
ures are being taken to increase the availability of 
wheat for export. This is very serious business, 
for wheat is a key item in any foreign aid program. 
No blueprint for the reconstruction of Europe's 

November 2, 1947 



FOREIGN AID AND RBCONSTKUCTION 

industrial plant is worth the paper it's printed on 
unless the people who work on it are nourished. 
The human effort required to achieve increased 
production cannot come from people who are un- 
derfed ; interest in upholding the democratic way 
of life cannot spring from despairing souls who 
want for bread. The situation, then, demands the 
well-considered generosity and thoughtful sacri- 
fice of every American, unless we are to lose all for 
which we have fought and worked during these 
critical years. As Secretary of State Marshall 
pointed out recently : "The connection between the 
individual American and world affairs is unmis- 
takably clear — our foreign policy has entered the 
American home and taken a seat at the family 
table." 

Aside from the fact that at present there is 
barely enough food produced in the world to go 
around even if it is carefully conserved and equi- 
tably distributed, the blunt fact is that the areas 
where the shortage is most acute are likewise the 
areas least able to pay for imports of food. This 
situation is what is commonly referred to as the 
dollar shortage. In some countries — Italy and 
France, for example — it actually amounts to a 
dollar famine. Fundamentally, it stems from an 
impoverished productive machine and depleted 
financial reserves. It is brought on when a 
country is forced to buy from abroad more than it 
can sell abroad in order to live. 

That is exactly what has taken place in the 
countries of western Europe. Total war left the 
physical resources of these countries in virtual 
ruin — industrial plants destroyed, transportation 
facilities wrecked, mines closed, agricultural lands 
despoiled. Not only were the essentials to pro- 
duction destroyed or seriously damaged, but the 
normal ways of doing business were disrupted. 
Trade, both in and between countries, was limited. 
Wliole economies were dislocated to the extent that 
they were forced to depend on outside help for the 
irreducible minunum necessary to sustain life. 

And all the while. United States productive 
capacity, not only undamaged but in numerous 
cases expanded by war, has been turning out goods 
and services at the record-breaking rate of about 
200 billion dollars annually to fill our backlog of. 
needs as well as the requirements from abroad. 
This very disparity between production in the 
United States and production in other parts of 

859 



FOREIGN AID AND RECONSTRUCTfON 

the world has contributed to the disappearance 
of dollars in foreign hands. In those countries 
■which have tried to maintain free channels of 
trade, consumers have turned to American goods 
to supply their wants, and the result has been a 
marked reduction in dollar reserves. This, in 
turn, has made necessary restrictions against im- 
ports from the United States. The relationship is 
now very clear between the supply of dollars in 
foreign hands and the volume of American goods 
which they can buy. 

This year it is estimated that we will ship some 
15 billion dollars of goods and services abroad. 
At the same time we will have imported a total 
of little more than 5 billion dollars worth of 
goods — a record high but a figure only a' little 
more than one third the value of our exports. 
This year's difference is being financed by loans 
and grants of various kinds, relief appropriations, 
and World Bank loans, and out of the small re- 
serves of gold and foreign exchange still held by 
some foreign countries. Now, these grants and 
credits, which can be used for American products 
only if they consist of or are convertible into dol- 
lars, are almost exhausted. 

This does not mean that our aid and assistance 
has gone down the rathole. In the first place, 
millions of persons are alive today who would 
have been dead or diseased without food from 
this country. In the second place, much recon- 
struction has been done — railroads are operating, 
ports are cleared for traffic, roads are repaired, 
and factories are ready for operation through 
reconstruction made possible by American sup- 
plies and equipment. Finally, the necessary raw 
materials like coal, cotton, and copper, which used 
to be purchased with exports, have been made 
available to permit their factories to operate. All 
these have made progress possible, and many na- 
tions are now back to industrial production levels 
in the neighborhood of 90 to 100 percent of 1938. 
However, much of this production itself has gone 
into reconstruction, and exports have not in- 
creased sufficiently to make any appreciable dent 
in the trade deficit. And the appropriations 
which have been made by the Congress are run- 
ning out. 

During the spring it became increasingly ap- 
parent that more assistance would be required 
from the United States. Country after country 

860 



was indicating in conversations in Washington 
that its efforts to achieve recovery were still de- 
pendent upon American assistance. This had 
been evident for some time, and we added item 
after item to our program of postwar assistance. 
However, this kind of piecemeal approach became 
less and less satisfactory, both to those responsible 
for our foreign policy and those concerned with 
Government expenditures. 

Furthermore, it became increasingly apparent 
that the problems could not be evaluated in terms 
of individual countries. Each country found it 
difficult to plan ahead in the absence of knowl- 
edge about the plans and probable course of other 
countries with which it had important trade and 
financial relations. The bottlenecks limiting a 
country's progress have not always been within 
its own borders. 

On June 5 in a speech at Harvard University, 
Secretary Marshall stated that before the United 
States could proceed much further in its efforts 
to facilitate European recovery, the countries in- 
volved should agree on the requirements of the 
situation and what they themselves could do 
through a joint effort, in order that the United 
States could feel assured that assistance which 
it might give would be effective. 

This suggestion met with a ready and vigorous 
response. In fact, the Committee of European 
Economic Co-operation, representing 16 nations, 
which met at Paris in response to the suggestion 
of Secretary Marshall, has now made its first 
report. After more than two months of study, 
analyzing European resources and requirements, 
the Committee has developed a coordinated pro- 
gram to achieve recovery and free western Europe 
of dependence on outside help. Its report con- 
tains striking evidence of the sincerity of these 
nations in attempting to increase production and 
overcome the bottlenecks which have plagued their 
recovery thus far. 

The recovery program is designed to achieve 
certain specific goals which will result in a self- 
sustaining economy by 1951. Increased produc- 
tion keynotes the entire program, as a glance at 
the objectives for 1951 will show : 

(i) Restoration of pre-war bread grain and other cereal 
production, with large increases above pre-war In sugar 
and potatoes, some increases in oils and fats, and as fast 
an expansion in livestock products as supplies of feeding 
stuffs will allow. 

Department of State Bulletin 



(ii) Increase of coal output to 584 million tons, i. e. 
145 million tons above the 1947 level (an increase of 
one-third), and 30 million tons above the 1938 level. 

(ill) Expansion of electricity output by nearly 70,000 
million Kwli or 40 per cent above 1947 and a growth of 
generating capacity by over 25 million Kw or two-thirds 
above pre-war. 

(iv) Development of oil refining capacity in terms of 
crude oil throughout by 17 million tons to two and a half 
times the pre-war level. 

(V) Increase of crude steel production by 80 per cent 
above 1947 to a level of 55 million tons or 10 million tons 
(20 per cent) above 1938. 

(vi) Expansion of inland transiwrt facilities to carry 
a 25 per cent greater load in 1951 than in 1938. 

(vii) Restoration of pre-war merchant fleets of the 
participating countries by 1951.* 

In the main, European production will supply 
the capital equipment needed for these expansions. 

These goals are based on the assumption of 
assistance from the United States during the next 
four years. The report of the Paris Conference 
is an estimate of the deficit anticipated by the 
16 participating countries, and the recognition of 
availabilities in the Western Hemisphere. It sug- 
gests the need for assistance in commodities and 
credits over the four years totaling approximately 
22 billion dollars, of which the United States 
would be asked to contribute about 16 billions. 

Meanwhile, the United States Government has 
taken steps to determine what it can safely and 
wisely undertake. A committee headed by Secre- 
tary of the Interior Krug has been appointed to 
survey the impact of foreign aid on the raw ma- 
terials and natural resources of this country and 
has already made its report. A second committee 
headed by Dr. Nourse of the Council of Economic 
Advisers was appointed to examine the effects of 
assistance on the American economy as a whole. 
Finally, a third committee of private citizens 
headed by Secretary of Commerce Harriman is 
examining the ability of the United States to meet 
the requirements of European nations in their 
recovery plan. Its survey is expected to be com- 
pleted soon after the end of this month. 

The Report of the Committee of European Eco- 
nomic Co-operation analyzes the present condi- 
tion of Europe and lays out a definite course of ac- 
tion. It recognizes that there is no single panacea, 
no simple remedy, but that steps must be taken in 
many directions. It sets up production targets. 
It proposes steps which are being taken and will 



FOREIGN AID AND RICONSTKUCTION 

be taken to bring about internal stabilization. It 
proposes combined or coordinated action to solve 
production problems and to provide for the free 
and efficient flow of goods and labor. It looks 
towards the eventual solution of the problem of 
deficits with the American Continent, primarily 
by reduced requirements as its own production in- 
creases and by increased exports. All in all, it 
is an extraordinary document when one considers 
that it was prepared in less than 10 weeks, that it 
constitutes agreement by 16 countries, and that 
each country has pledged itself to use all its ef- 
forts in making its full contribution to the pro- 
gram. 

Of particular interest is the attitude expressed 
towards restrictions on trade. As you all know, 
the lack of convertible currencies and the shortage 
of commodities have reduced European trade vir- 
tually to a barter basis, with detailed export and 
import controls applying to practically all com- 
modities. This is, of course, not true only of 
European countries, and these same restrictions 
elsewhere have had their retarding effect upon 
European progress. The member countries have 
agreed "to abolish as soon as possible the abnormal 
restrictions which at present hamper their mutual 
trade", and "to aim, as between themselves and 
the rest of the world, at a sound and balanced 
multilateral trading system based on the principles 
which have guided the framers of the Draft Char- 
ter for an International Trade Organisation." 

In the last analysis, it is by principles such as 
this that the Eeport must be judged, rather than 
its statistical estimates. We can be certain of one 
thing: that any estimate of requirements for the 
next four years is bound to be wrong. For such 
a period, no one can do more than guess, and there 
are many uncertainties which no man can fore- 
see. The figures in the report are useful as indi- 
cating the general order of magnitude of assist- 
ance which its authors feel is required, but they 
would be the first to insist that they are much less 
certain of their figures as they leave the more 
clearly known elements of the immediate require- 
ments. They can be more definite in describing 
the course which they propose to follow in their 
joint effort to achieve recovery. 



' Committee of European Economic Co-operation, vol. I, 
General Report, Department of State publication 2930, 
p. 14. 



November 2, 1947 



861 



rOMICN AID AND RECONSTRUCTfON 

I should like to comment on one assertion that 
has been made many times in the foreign press, 
that Germany is to be given some kind of priority 
in the European recovery program. The United 
States has a special responsibility in this case. 
It is true that we believe that the German economic 
situation must be improved. Germany is not only 
in bankruptcy today, but it constitutes a serious 
drag on the economic recovery of all of Europe. 
With production at 40 percent of prewar, with 
coal, steel, and fertilizer at exceedingly low levels, 
it seriously limits the progress that can be made 
elsewhere. Prosperity is indivisible. It is 
equally true that depression is indivisible. The 
lag in German production is clearly too great for 
the good of Europe. A program to lift German 
production somewhat above its present low level 
can hardly be regarded either as giving priority 
to German recovery, as if that were something en- 
tirely apart from European recovery, or as re- 
creating the German giant which has twice 
plunged the world into war. We are fully con- 
scious of the need for security control over Ger- 
many and have offered, among other steps, to 
join in the enforcement of a security treaty which 
would assure continued demilitarization through 
inspection for 40 years. But on the economic 
front increased German production is a necessary 
part of any European recovery program and 
should be included therein. 

Certainly there can be no question that there 
are humanitarian aspects involved in the imme- 
diate steps we are taking to relieve a hungry Eu- 
rope as well as in the long-range aid for complete 
and lasting recovery envisaged by the Paris Com- 
mittee. But the overriding consideration, it 
seems to me, is that we cannot fail Europe for our 
own sake. There are many good reasons for this. 
I do not wish to overemphasize the economic 
factor. This is not a matter where careful cal- 
culation in economic terms should decide what 
course we should follow. As a matter of fact, no 
such calculation can be made. No one can assure 
us with finality that any recovery program will 
prove effective. But we do know that we have 
many economic ties with Europe, that we are ac- 
customed to buy and sell in the European market, 
and that a collapse in Europe will require con- 
siderable readjustment in our own economy. 
But the issue should be decided on a broader 

862 



basis than that. Two world wars should have 
taught us that we camiot isolate ourselves from the 
inevitable consequences of major happenings 
abroad. History proves that we cannot remain 
secure when the countries of Europe, with whom 
we are intimately connected by ties of race, 
thought, and technology, are threatened by vio- 
lence or destitution. In our own self-interest, we 
cannot afford to let Europe walk the last mile 
down the road to ruin. 

What may happen in Europe if we do not help 
stabilize conditions there is problematical. The 
Paris Report has this to say : "If nothing is done 
a catastrophe will develop as stocks become ex- 
hausted. If too little is done, and if it is done 
too late, it will be iinpossible to provide the mo- 
mentum needed to get the programme under way. 
Life in Europe will become increasingly unstable 
and uncertain; industries will grind to a gradual 
halt for lack of materials and fuel, and the food 
supply of Europe will diminish and begin to dis- 
appear." 

First would come chaos, and out of that would 
come tyranny, perhaps Communism, perhaps re- 
surgent Fascism. In all likelihood, the European 
civilization from which ours descended would 
eventually be blotted out and a new Dark Age 
would descend upon the Continent. And the 
values which we have and continue to receive from 
that part of the world's culture and civilization 
would be lost to us. 

Fortunately, we have a brighter alternative to 
that grim and depressing prospect. By some 
sacrifices now we can envisage at least the possi- 
bility of a prosperous, stable, and democratic Eu- 
rope. By extending our vision and exerting our 
strength now, we will not deny ourselves the chance 
of having a strong and friendly partner that will 
work with us in expanding world prosperity. It 
is a momentous decision, yet I cannot see that the 
choice is difficult. One way lies certain disaster 
for Europe; the other offers a real possibility of 
European recovery. 

Americans willingly made sacrifices and worked 
much harder during the war to make certain an 
Allied victory and the right to decide for our- 
selves the kind of a world we want to live in. 
Surely we are willing to make lesser sacrifices now 
in order to maintain and defend the principles for 
which we fought. 

Department of State Bulletin 



America's Stake in Europe 



BY ASSISTANT SECRETARY ARMOUR > 



The American Government has responded to 
the worsening of Europe's food situation on the 
threshold of winter by redoubling its efforts to 
guarantee delivery of the additional food that 
Europe must have for survival. Because of the 
shrinkage of our own corn crop, the task is more 
formidable than ever. It will challenge the united 
effort of the American people, but I am confident 
that they will meet this challenge as courageously 
and as successfully as they have others in the past. 

The acute need of Europe for adequate supplies 
of food, coal, and other essential materials to sur- 
vive the winter is actually a crisis within a crisis. 
The basic problem underlying Europe's immediate 
needs is production, for, as you who are concerned 
with distribution are well aware, in order to have 
something to distribute, it must first be produced. 
The real need of the world today is for a vast in- 
crease in the volume of materials and goods avail- 
able for distribution among mankind on a scale 
that will provide a satisfactory standard of living, 
economic security for the common man and his 
family, individual freedom, political stability, and 
lasting peace. 

It is generally conceded that the United States 
has made the most spectacular advances of any 
country in the technology of production and dis- 
tribution as well. Our potential contribution to 
the permanent improvement of the well-being of 
mankind, in the form of this invaluable knowledge 
and skill, far surpasses in ultimate effect the quan- 
tities of food and materials we now supply a needy 
world, decisive though this immediate contribu- 
tion may be in the present critical situation. 

There is ample evidence that Europe fully un- 
derstands that increased production provides the 
only sure solution of its basic economic problems. 
The fact is that western Europe has increased its 
production far more than is generally recognized 
in this country. Industrial production in the 
British Isles and the Scandinavian countries is 
now greater than in 1938. France, Belgium, and 
Holland have restored industrial activity to he- 
November 2, 1947 



tween 80 and 90 percent of prewar. Italy lags 
somewhat behind, and Germany, once the main- 
spring of continental economy, has barely sur- 
passed the halfway mark on the road back. 

Germany presents special problems, of course, 
but it is obvious that an economically stagnant 
and depressed area in the heart of the Continent is 
a detriment to the European recovery effort. 
The recent joint decision of the American and 
British Governments to raise the levels of indus- 
try of the part of Germany they control to ap- 
proximately the 1936 standard reflects our deter- 
mination to use German resources and assets in 
the interest of the European economy as a whole. 
At the same time, we will enforce strict security 
measures to insure that German militarism and 
military potential does not revive and threaten 
woz'ld peace again. 

The increased production thus far achieved in 
Europe is heartening to both the Europeans and 
their friends abroad, but it is far from sufficient. 
Western Europe contains about 24 million more 
people than it did in 1938, and a further increase 
of 8 million is forecast by 1951. There are more 
mouths to feed, more bodies to clothe, more families 
to house. Homes, buildings, factories, and ma- 
chines destroyed, damaged, or worn out during 
the war must be rebuilt, repaired, and replaced. 
There is an enormous accumulated demand for con- 
sumer goods which people have not been able to 
obtain in normal quantities for eight years. 

Meanwhile, the Europeans liquidated a substan- 
tial part of their foreign investments to finance 
the war and now feel the loss of the income from 
these investments, which formerly helped pay for 
the excess of their imports over exports. The 
result of these various factors is that, as regards 
production, Europe must run faster than ever in 
order to stand still. For example, the British are 
producing more, both in agriculture and industry, 

'Address delivered before the Boston Conference on 
Distribution, Boston, Mass., on Oct. 21, 1947, and released 
to the press on the same date. Norman Armour is As- 
sistant Secretary of State for political affairs. 

863 



rORCIGN AID AND UCONiTRUCTION 

and are exporting more than in 1938, but their 
food ration is lower than at any time during the 
war. 

Until Europe can increase its production further, 
to the point where it not only can supply its own 
basic needs but also have a surplus to exchange 
for its imports, it must meet its essential require- 
ments by shipments from abroad in excess of its 
present ability to pay for them. Thus far, this 
trade deficit has been met by use of Europe's re- 
maining dollar balances and gold reserves, further 
liquidation of its dwindling foreign investments, 
and grants and credits from abroad — chiefly the 
10% billion dollars provided by the United States 
from mid- 1945 to mid-1947. Now these resources 
are rapidly nearing exhaustion, at a time when 
Europe's difficulties are further complicated by 
the worst crop failure in generations. Unless 
ways are found to keep essential supplies of food 
and coal flowing to Europe — not to mention other 
basic materials and equipment necessary for re- 
construction — there is grave danger that economic 
progress will come to a standstill and serious poli- 
tical disturbances may result. 

The problem of how to meet the interim needs 
of Europe is receiving the most careful and sym- 
pathetic consideration of our Government. As 
you know, several congressional committees will 
meet early next month to study this matter. 
Meanwhile, the administration is using every re- 
source at its command to meet Europe's most ur- 
gent requirements. 

At the same time intensive study is also being 
made of all aspects of the question of our partici- 
pation in a long-range program for European 
recovery. This question was inherent in Secre- 
tary Marshall's suggestion on June 5 that Europe 
take the initiative in developing a program for 
the maximum utilization of its own resources and 
efforts, both in individual countries and as a group, 
and in calculating the amount of assistance it 
would require from others to achieve lasting 
recovery. 

Europe's proposals are now before us, in pi'ovi- 
sional form, in the report drafted by the 16 na- 
tions attending the Paris conference. After due 
consideration of that report and the estimates 
being made of our own capabilities, the Congress 
will be in a position to consider and determine 
the direction and the extent to wliich we can 



participate in a comprehensive program for the 
rehabilitation of Europe. 

The extent of our ability to assist others, of 
course, is limited by our own resources. It is in 
the interest of those who rely on us, as well as 
our own, to see that the American economy — ^the 
supply base of world recovery — is not undermined 
by a too severe or ill-considered drain on our 
resources. We are prepared to face the fact that 
we shall have to press our agricultural production 
in directions that will later cause us problems of 
readjustment and that it will take longer to fill 
our own needs for agricultural and transportation 
equipment if we furnish assistance than if we do 
not. 

"We hope, however, that we may join in a great 
cooperative endeavor to raise the common stand- 
ard of living, first of Europe, then of other regions. 
Such a course, in the long run, will benefit us as 
well as others. It is only through rising stand- 
ards of living abroad that world peace and pros- 
perity can be maintained on a long-term basis. 
To accomplish this purpose the United States 
offers its experience, its technological skills, and 
much of its substance to help other nations attain 
the highest possible degree of development and 
progress. 

This approach is not a one-way street. Europe 
has been laid waste by war and its people tempo- 
rarily exhausted by the cumulative effects of eight 
years of strenuous exertion on short rations. But 
Europe before the war was a vital factor in world 
affairs, and it will be again. Europe, exclusive of 
Russia, contains only 4 percent of the land area 
of the earth and only 19 percent of the population. 
Yet in prewar days Europe accounted for more 
than half of the world's total trade. Much of 
this was among the European countries themselves. 
But in 1938 the 16 countries that have signed the 
Paris report took 35 percent of total United States 
exports. In 1946 our exports to those countries 
had tripled in dollar volume, from just over one 
billion in 1938 to more than 3 billion last year. 
But relatively the proportion to our total exports 
was about the same — 33 percent. During the first 
six montlis of this year, the dollar rate of exports 
to the 16 countries rose still higher, but the 33- 
percent ratio remained constant. 

The value of our imports from the same group 
of countries has been much smaller than our ex- 



864 



Department of State Bulletin 



ports to them, both before the war and in the last 
two years. Our imports from these countries, 
worth 415 million dollars in 1938, constituted 21 
percent of our total imports. In 1940 the dollar 
value rose to 676 million, but this higher figure 
amounted to only 14 percent of our total imports, 
and for the first half of 1947 the comparable figure 
was 12 percent. 

The statistical explanation for these figures, of 
course, is that botli our total exports and our total 
imports, measured in dollars, are running at rec- 
ord peacetime rates. But further analysis of 
these trade figures leads, I think, to conclusions 
of great significance to our current, and especially 
potential, position in regard to world trade. 

In 1946 we exported to the 16 countries goods 
valued at 3 billion, 196 million dollars, while we 
imported from them goods valued at 676 million 
dollars. Our exports were greater than our im- 
ports by 21/^ billion dollars, and the same trend 
has continued this year. This is a concrete ex- 
ample of the problem referred to as balance of 
payments or the so-called dollar shortage. 

Tliere are two general causes of this great dis- 
parity of our postwar trade with the western Euro- 
pean countries : first, the abnormal need by these 
countries for American food, coal, and other goods 
and services; and second, their inability thus far 
to supply us with the volume of goods and serv- 
ices that we might have bought from them had 
these things been available in gi'eater quantity. 
Both of these causes stem from the same basic 
source ; that is, the generally low state of produc- 
tivity in Europe. 

The first of these causes has received a great 
deal of attention; the second, considerably less. 
I should like to repeat for emphasis that in 1938, 
21 percent of our imports came from the 16 coun- 
tries, and in 1946 and the first half of 1947, 14 and 
12 percent. Since 1938 our national income has 
increased from about 64 billion dollars a year to 
a current rate of about 200 billion. This means 
that we provide a much larger market, not only 
for our own producers but those of other coun- 
tries as well. In fact, during the first seven 
months of this year we were importing goods at 
an animal dollar rate three times greater than in 
1938. I think it stands to reason, in these circum- 
stances, that if Europe had been able to furnisli us 
with a greater volume of goods, we would have 

November 2, 1947 



fORCIGN AID AND KECONSTKUCTION 

bought them. This, of course, would have the 
desirable effect of partially closing the gap and 
easing the problem of Europe's so-teimed dollar 
shortage. 

Another important consideration bearing on the 
probable volume of our future imports is that the 
prodigious demands of our war production de- 
pleted our irreplaceable natural resources at a 
much faster rate than normally, so that in respect 
to certain strategic materials we have changed 
from a "have" to a "have-not" nation. For ex- 
ample, before the war we exported copper ; now we 
must import it. Tlie United States has never been 
entirely self-sufficient, despite some former mis- 
conceptions in that respect. Our wartime plight 
when we were cut off from sources of certain stra- 
tegic materials should have dispelled any such 
illusion. The fact is that now, more than ever, im- 
ports are of vital importance to our economy; 
we must obtain larger quantities of many mate- 
rials from abroad than ever before if we are to 
maintain anything like our present level of pro- 
duction, which is about two-thirds higher than 
prewar. 

This is no cause for regret, although the effects 
of this situation on our national defense position 
require careful consideration. The money we 
pay other countries for our imports comes back to 
us in payment for the goods we export to them. 
Substantial increases in the volume of our imports 
will help correct the present lop-sided trade bal- 
ance. The same effect is produced by the travel 
of Americans abroad; world trade, as well as 
understanding among peoples, will benefit when 
conditions abroad, and especially in Europe, im- 
prove to the extent that Americans can travel 
again in large numbers. American tourists spent 
about one billion dollars abroad in 1929, when the 
national income was 88 billions. Now that the 
national income is more than twice that figure, it is 
logical to assume that, under normal conditions 
abroad, the tourist business of Americans might 
reach or exceed 2 billion dollars a year. 

Our entire foreign economic policy, in which 
reciprocal ti-ade agreements and the proposed 
International Trade Organization are important 
elements, is directed toward achieving a vast ex- 
pansion of trade among all nations with benefits 
to all. It is our sincere belief that once Europe 
rises from the ruins of war, her trade with us will 

865 



FOREIGN AID AND RECONSTRUCTION 

strike a more normal balance, at levels higher than 
before the war. The advantages to both this 
country and Europe are obvious. 

But the economic advantages, important as they 
are, are not our paramount consideration. The 
American people and their Government have dem- 
onstrated time and again that our first concern 
is with human values. Although we do not pre- 
tend to claim perfection in performance and are 
better aware than others of our shortcomings, it 
is our earnest endeavor to exalt the dignity and 
worth of the individual and to put his happiness 
and welfare above all other considerations. Par- 
ticidarly do we seek to safeguard the rights of 
the individual from all encroachments of arbi- 
trary power, even — or especially — any unreason- 
able extension of the power of the state itself at 
the expense of hiunan freedom. As Secretary 
Marshall said in a very recent speech here in Bos- 
ton: ". . . the basic issue ... is simply whether 
or not men are to be left free to organize their 
social, political, and economic existence in accord- 
ance with their desires, or whether they are to 
have their lives arranged and dictated for them 
by small groups of men who have arrogated to 
themselves this arbitrary power.^ 

The countries of western Europe traditionally 
adhere to the same tenets that have inspired and 
upheld our country since its birth. Common 
faiths and modes of thought bind Europe and 
America together far more strongly than do the 
ties of trade, important though they are. Even in 
the travail of war and postwar desolation, the 
peoples of western Europe have persisted in their 
allegiance to the principles and practices of 
democracy. This spiritual strength has enabled 
them to survive ordeals that woidd have crushed 
mere physical resistance unsupported by inner 
conviction. This moral strength of character will 
enable the peoples of Europe to rebuild and 
emerge stronger, more vigorous, and more useful 
than ever to the world — if we but lend them some 
of America's abundant Strength in their hour 
of need. 

I urge you, in the vernacular of the marketplace, 
"Don't sell Europe short." We are not being 
called upon to restore a ghost town that has out- 
lived its usefulness and is destined to become only 



World Trade and European Recovery — 
Prospects and Problems 

John A. Loftus, Chief of the Petroleum 
Division of the Department of State, ad- 
dressed the League of Women Voters of 
Columbus, Ohio, on October 21, 1947, on the 
subject "World Trade and European Re- 
covery — Prospects and Problems". For text 
of the address, see Department of State press 
release 839 of October 20, 1947. 



' Bulletin of Oct. 26, 1047, p. 826. 



a museum-piece of war ruins and extinct civiliza- 
tions. We are given an opportunity to invest in 
the reconstruction of a foi'mer thriving and prom- 
ising community, hard hit by disaster but un- 
dismayed and determined to regain its place in 
the sun. Europe is a vast reservoir of energies, 
skills, and cultural values that have contributed 
magnificently to the progress of the world in the 
past — and can do so again. 

We recognize that the rate and degree of Eu- 
ropean recovery must depend largely upon the 
efficiency of the effort put forth by the participat- 
ing countries. If the energies of the European 
peoples are dissipated in ideological struggles, we 
cannot expect the necessary progress in working 
their passage toward improved living conditions 
and political stability. We recognize that the 
economic systems under which nations operate 
are the outgrowth of different traditions and spe- 
cial conditions and are intimately related to the 
national character of the people. Each nation 
must work out the social and economic system best 
suited to its own conditions. We consider, how- 
ever, that it is incumbent upon nations making 
large requests upon the economies of others to 
demonstrate that any assistance rendered will be 
used efficiently and that it will contribute to the 
maintenance of institutions that are the free 
choice of the people. 

We are well aware that the whole purpose of 
the recovery program organized by the 16 parti- 
cipating nations has aroused the malignant oppo- 
sition of those whose aggressive political aims can 
be realized only by the continuance and intensifi- 
cation of hunger, misery, and despair. The mani- 

(Conlinued on page 877) 



866 



Department of Slate Bulletin 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



U.S. Holds Korean Independence a U.N. Problem 



EXCHANGE OF NOTES BETWEEN THE ACTING SECRETARY OF STATE AND THE 
SOVIET MINISTER FOR FOREIGN AFFAIRS 



[Released to the press October 20] 

October 9, 19Jf7 

Dear Mr. Marshall: The position taken by 
the U.S. Delegation in the Joint Soviet- American 
Commission at Seoul provides evidence that the 
U.S.A. Delegation does not wish to continue the 
work of the Joint Commission with a view to 
reaching, on the basis of an exact observance of 
the Moscow Agreement on Korea, agreed decisions 
on questions connected with the establishment of 
a provisional Korean democratic government. 

In violation of the Moscow Agreement on Korea 
and the understanding reached between the Gov- 
ernments of the U.S.S.R. and the U.S.A. in May 
1947 concerning the conditions for resuming the 
work of the Joint Commission, the U.S.A. Dele- 
gation insists that not only democratic parties and 
groups in northern and southern Korea which 
have signed the declaration of support for the 
aims of the Moscow Agreement and are loyally 
carrying out the conditions of this declaration, 
but also such reactionary groups which, having 
signed this agreement, are carrying on a struggle 
against the Moscow Agreement and are continu- 
ing to comprise the so-called "Anti-trusteeship 
Committee", which contradicts the above-men- 
tioned understanding between the Governments of 
the U.S.S.R. and the U.S.A., shall take part in 
the formation of the Korean Government. The 
Soviet Delegation, consistently defending the 
principles of the Moscow Agreement, obviously 
cannot agree with this. 

The position of the U.S.A. Delegation has made 
impossible the formation of a provisional Korean 
democratic government in accordance with the 
Moscow Agreement, which hinders the re-estab- 
lishment of Korea as a united democratic state. 

In view of the situation which had been created 
the Government of the U.S.S.R. instructed the 



Soviet Delegation to introduce in the Joint Com- 
mission at Seoul a new proposal, namely : To give 
to the Koreans the possibility of forming a gov- 
ernment themselves, without aid and participa- 
tion on the part of the United States of America- 
and the Soviet Union, on condition that American 
and Soviet troops be withdrawn from Korea. If 
the Government of the U.S.A. should agree to 
the proposal for the withdrawal from Korea of all 
foreign troops at the beginning of 1948, the So- 
viet troops would be ready to leave Korea simul- 
taneously with the American troops. 

Notwithstanding the fact that this proposal was 
introduced by the Soviet Delegation at the ses- 
sion of the Joint Commission on September 26, 
the U.S.A. Delegation has unfortunately not re- 
plied to date, which cannot fail to delay the solu- 
tion of the Korean question. 

With reference to the consideration of the Ko- 
rean question at the session of the General Assem- 
bly of the United Nations Organization, which 
was proposed in Mr. Lovett's letter of September 
17,^ the position of the Soviet Government on this 
question, as you know, has already been set forth 
by the Soviet Delegation to the General Assembly. 

Copies of this letter are being sent by me to the 
Governments of Great Britain and China. 

Please accept [etc.] V. Molotov 

Dear Mr. Molotov : ^ In your letter of October 
9, 1947, you state that the position taken by the 
United States Delegation in the Joint Soviet- 
American Commission at Seoul has delayed a deci- 
sion on the Korean question and you refer to the 
projDosal made by the Soviet Delegation in Seoul 
on September 26, 1947, for the immediate simul- 
taneous withdrawal of the United States-Soviet 



" BuixETiN of Sept. 28, 1947, p. G23. 
'Note delivered to the Soviet Ministry for Foreign 
Affairs at Moscow on Oct. 18. 



November 2, 1947 



867 



THE UNITBD NATIONS AND ifECIAUZBD AGENCIES 

occupation forces to which you state no reply has 
been received. 

The Secretary of State announced on September 
17 ° that the problem of setting up an independent 
Government for a unified Korea would be pre- 
sented to the General Assembly of the United 
Nations and on September 23 the General Assem- 
bly voted to place this question on its agenda. 
In the opinion of the United States Government 
the question of withdrawal of occupation forces 
from Korea must be considered an integral part 
of the solution of that problem. 

The United States Delegation to the General 
Assembly meeting in New York City has now had 
circulated to the various delegations for their con- 
sideration a proposed resolution which is designed 
to bring about the early establishment of an inde- 
pendent Korean Government representative of the 
will of the Korean people, and the consequent 
speedy withdrawal of all occupation forces.* In 
submitting this proposal to the Secretary General, 
specific attention was called to the Soviet proposal 
for the simultaneous withdrawal of troops with 
the statement of the United States' hope that hav- 



ing both proposals before it the General Assembly 
would be able to recommend a solution of the 
problem. A copy of the United States proposals 
was delivered to the Soviet Delegation in New 
York prior to its being communicated to the Secre- 
tary General of the United Nations for trans- 
mission to the other delegations. 

In view of the continued inability of the Soviet 
and United States Delegations in the Joint Com- 
mission to agree on how to proceed with their 
work and the refusal of the Soviet Government 
to participate in discussions on this problem with 
the other Governments adhering to the Moscow 
Agreement on Korea, the United States Govern- 
ment considers it is obligated to seek the assistance 
of the United Nations in order that, as the Secre- 
tary of State said on September 17, "the inability 
of two powers to reach agi'eement" should not 
further delay the early establishment of an inde- 
pendent, united Korea. 

Copies of this letter have been furnished to the 
Governments of the United Kingdom and China. 

Accept [etc.] Robert A. Loveti 



Current United Nations Documents: A Selected Bibliography^ 



Department of Public Infsrmatien, 
Research Section 

Second Session of the Economic Commission for Asia and 
the Far East. Background Paper No. 19, October 2, 
1947. 7 pp. mimeo. 

Economic and Social Council 

Official Records. First Year, Second Session. Special 
Supplement No. 1. Report of the Special Committee 
on Refugees and Displaced Persons. [B/REF/75, in- 
corporating addenda and corrigenda, June 7, 1946. 
This volume constitutes Annex 12 to the Ofticial 
Records of the second session of the Economic and 
Social Council.] v, 176 pp. printed. [$1.50.] 



' BuLUiTiN of Sept. 28, 1947, p. 618. 

* Bulletin of Oct. 26, 1947, p. 821. 

"Printed materials may lie secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 2960 Broadway, New York City. Other ma- 
terials (mimeographed or processed documents) may be 
consulted at certain designated libraries in the United 
States. 

868 



General Assembly 

Draft Convention on the Crime of Genocide. Communi- 
cations Received by the Secretary-General. A/401/ 
Add. 2, October 18, 1947. 22 pp. mimeo. [Comments 
by United States.] 

Transfer to the United Nations of the Functions and 
Powers . . . Under the International Conven- 
tion ... on Traffic in Women and Children . . . 
and on Traffic in Obscene Publications. Report of 
the Third Committee. A/412, October 17, 1947. 
10 pp. mimeo. See also A/417, October 20, 1947. 1 p. 
mimeo. 

Financial Implications of Establishment of a General 
Assembly Special Committee on the Greek Question. 
A/415, October 18, 1947. 3 pp. mimeo. 

Threats to the Political Independence and Territorial In- 
tegrity of Greece. Communication From the Union of 
Soviet Socialist Republics to the President of the 
General Assembly. A/416, October 19, 1947. 1 p. 
mimeo. 

Comparative Table of Proposals Relating to South West 
Africa. A/C.4/AC.1/2, October 9, 1947. 4 pp. mimeo. 

Department of State Bulletin 



U.S. Rejects Resolutions Limiting Free Flow of Information 



REMARKS BY THE U.S. REPRESENTATIVE AT THE SEAT OF THE UNITED NATIONS' 



Mr. President : The proposal of the Soviet Union 
entitled "Measures To Be Taken Against Propa- 
ganda and the Inciters of a New War'V demand- 
ing suppression and censorship, ought to be re- 
jected. It is contrary to principle ; it is bad policy. 
It diverts attention from practical programs for 
removing the real causes of war. The Charter re- 
peatedly commits the United Nations jointly and 
severally to the promotion of human rights and 
fundamental freedoms. Freedom of speech is one 
of the most fundamental of human rights. It is 
so important in the theory of the people of the 
United States of America that it is regarded as a 
sill under the whole house without which the house 
would fall. This Soviet resolution is, therefore, 
in policy and principle a direct attack on the 
United States of America. It was not necessary 
to include in the resolution the name of the United 
States of America in order to advertise to all the 
world that the Soviet Union was making a direct 
attack upon the very foundations of all that keeps 
our Government free and assures to its people the 
blessings of true liberty. 

In the United Nations the first article of our 
faith as stated in the preamble is based on the 
"dignity and worth of the human person", on 
individual conscience, on personal responsibility. 
Freedom of speech involves much more than the 
right to express oneself by word or in print. It 
is also the freedom to listen, to read, and, above 
all, to think for one's self. And, we see clearly 
that this resolution would put shackles on the 
brain of man as well as a gag in his mouth. It 
is not designed to permit the individual to grow 
in wisdom and increase in spirit by seeking and 
formulating for himself a conception of truth. 
For this, the individual must have access to the 
knowledge of good and evil and what is regarded 
as true and what is condemned as false. 

There is a danger, however, as Secretary Mar- 
shall said last week, which I quote here: 

". . . the individual man, whose well-being is 
November 2, 1947 



the chief concern of all democratic policies, for- 
eign or domestic, is being lost sight of in the 
welter of ideological generalities and slogans 
which fill the air." ' 

If the individual had only to accept the thoughts 
and ideas ladled out to him by a paternal author- 
ity through newspapers which are in effect gov- 
ernment or party bulletins, he would never attain 
that "dignity and worth" of the individual in the 
Charter of the United Nations. 

Freedom of speech, by cultivating the dignity 
and worth of the individual, provides the basis 
of responsible and stable government. 

President Thomas Masaryk, in founding the 
new state of Czechoslovakia, stated the point 
clearly. He wrote : 

"Freedom of opinion is a form of political free- 
dom, and a condition of it. In practice, journal- 
ism and the daily press are extensions of parlia- 
mentary control over government. . . . Moreover, 
the freedom of the press ensures the right to criti- 
cise public men and the whole apparatus of the 
state. Criticism is at once a postulate and a method 
of democratic policy just as it is a postulate and 
a method of science and of the scientific spirit. 
The right to criticism is a right of political 
initiative." * 

It is the individual, participating in free insti- 
tutions in the community, who gives life and 
strength and growth to the government. He reacts 
to practical experience and he colors public opinion 
according to the needs, the interests, and the emo- 
tions of his neighborhood. The government being 



'Warren R. Austin. Excerpts from remarks made on 
Oct. 23, 1947, before the First Committee (Political and 
Security), of the General Assembly, and released to the 
press by the U.S. Mission to the U.N. on the same date. 

' U.N. doe. A/BUU/8G, Sept. 18, 19-17. 

' BtnxETiN of Oct. 26, 1947, p. 826. 

* Making of a State, by T. G. Masaryk, pp. 400-401. 

869 



THE UNITBD NATIONS AND SPECIAUZCD AGENCIES 

his agent and servant, and not his master, listens 
and thus learns the will of the people. 

Governments must be able to hear the people 
talking if their voices in this great Assembly are 
to be truly representative and powerful in the in- 
terests of peaceful progress. Only if all sides of 
the great issues can be heard and freely discussed 
can we hope to crystallize and organize public 
opinion into positive action here in the United 
Nations. 

The principle we are working for in the United 
Nations is freedom of information — the free flow 
of information and opinion. The proper place 
for full consideration of the rights and responsi- 
bilities of the press and of other means of com- 
munication is the Conference on Freedom of In- 
formation scheduled for next March. The agenda 
to which we have agreed provides for discussion 
by exjjerts, seeking constructive measures to pro- 
mote responsibility in the exercise of the right of 
free speech and free press. 

The style of the proposal that we have before 
us — that is, its form and its language and its 
cunning of separation and unity — does not exempt 
it from criticism for containing the enslaving 
power. The direction of the prohibition expressly 
against evil propaganda — not mentioning good 
propaganda — which is found here is the classic 
method of applying shackles to the mind of the 
governed. Wherever censorship and suppression 
by law or decree has been proposed it has always 
been aimed at bad propaganda. Yet from experi- 
ence of centuries we know that the power to sup- 
press bad propaganda is the power to suppress 
good propaganda. 

This doctrine of extension of the hand of the 
magistrate over the thoughts and words of the 
people has never succeeded in any free country. 
Wherever the magistrate controls or represses this 
particular freedom there is no law that is certain 
and reliable because it is always within the power 
of the magistrate in such a tyrannical situation to 
say what is the law, what is criminal propaganda, 
what is war propaganda. What is the alternative ? 
What can you have left for a people suffering un- 
der that type of tyranny? Nothing but rebellion 
or revolution ! The antidote for such force as that 
has always been — and I pray God it always will 
be — freedom of the mind, of the lips, of the ears, 
of the hands of the individual. 



670 



Now I want to conclude this part of my address 
with this repeated assertion : This resolution will 
not bear the support of amending it. It ought 
to be absolutely suppressed because in the name 
of the United Nations, strange as it may seem, it 
calls upon governments which, in their law and 
practice, respect now the right of free speech to 
prohibit free speech "on pain of criminal 
penalties." 

This resolution ought to be killed because the 
proposal is bad. Its policy is wrong. 

Actually, attempts to suppress thought and ex- 
pression cannot, in the long run, succeed. You 
cannot stop men from observing, comparing, con- 
trasting, thinking, and whispering to each other 
their true thoughts. It has not even been done 
completely in the country from whence comes this 
resolution. And they will only hate the authority 
which prevents them from speaking as self- 
respecting men in the open. 

Nothing could be more calculated to outrage the 
sensibilities of honest men than the attempt of 
fallible leaders to arrogate to themselves the power 
to determine what men think and say. 

Isn't this true ? Given the diversity of human 
opinions, it is obviously possible, when expression 
is not stifled, to find by assiduous and calculated 
selection statements or expressions of opinions to 
support any view whatsoever. It is, however, dis- 
torted and misleading to present such artificially 
selected items as a genuine criterion of public opin- 
ion, particularly when they represent, not the ut- 
terances ,of a responsible goverrmient, but one of 
a small minority in a community where the vast 
majority are against war. 

In the United States and other countries where 
true freedom of speech is protected there are great 
organizations numbering within their member- 
ship millions of private citizens who make a busi- 
ness of advocating peace. There are, as you know, 
in the United States such organizations as the 
General Federation of Women's Clubs, the Na- 
tional League of Women Voters, the American 
Association for the United Nations, the great labor 
organizations, farmers, and, of course, our 
churches all over the land. 

Let me cite but one example of the voices for 
peace that these great organizations frequently 
hear. At the World Convention of Churches of 
Christ in America at Buffalo, N.Y., on August 6, 

Department of State Bulletin 



1947, a very distinguished American, Mr. Jolui 
Foster Dulles, said (let this have its eflFect) : 

"The world demands leadership which will 
frame issues and organize moral power, not to win 
war, but to win peace. 

". . . we must see, as most do see, that 
under modern conditions war is an intolerable 
institution." 

And yet you can see the kind of judgment that 
we might be exposed to if this resolution went into 
effect — the judgment given here on this great 
Christian gentleman and statesman. If anyone 
uses his privileges in this country to advocate war, 
he is running completely counter to the convictions 
of the vast majority of his fellow citizens, and, in 
turn, to the policies of his Government. The 
people of the United States and their Government 
stand for peace through international collabora- 
tion through the United Nations. 

We are fully aware, of course, and always have 
been, that liberty carries with it the necessity of re- 
straint, but we also profoundly believe that in the 
area of human freedom restraint must be a natu- 
ral growth. It must develop from within. It can- 
not be imposed by governmental fiat or decree. 

Self-discipline, not legal prohibition, is the sanc- 
tion for good propaganda in a free society. There 
are and doubtless always will be a few among us 
in the United Nations who lack the self-discipline 
to avoid intemperate speech. But this fact does 
not in any way invalidate the principle that in a 
free society limitation of freedom must be pri- 
marily self -limitation. 

As I listened to the reference made by the dis- 
tinguished representative of the Soviet Union to 
the opinion of Mr. Justice Holmes rendered in 
the Supreme Court in a case which did involve 
this question of speech (the Schenck case), I was 
astonished that Mr. Justice Holmes, one of the 
most liberal and broad-minded members of the 
bench of the Supreme Court in all its history, 
should be summoned as a support of this reac- 
tionary resolution which is presented by the Soviet 
Union. I hear his voice like a bell in the heavens 
saying to me : 

"Eead to them the context of that case, from 
which a part was garbled. Call their attention 
to the other decisions and opinions written by 
me that give a wholly different point to my opin- 

November 2, 1947 



rHE UNITED NATIONS AND SPECIALIZED AGENCIES 

ion than that of support for a repressive measure 
like the resolution that is now before us." 

Now that case from which a very brief extract 
was taken was a case for inciting insubordination 
and obstruction to military and naval action in 
time of war. The defendants were summoned 
for obstructing recruiting and enlisting when the 
safety of our country depended upon that. Of 
course, they were convicted. But Mr. Justice 
Holmes was very careful to save this doctrine of 
freedom of speex;h. The point in his decision was 
to make clear that there is a line fixed between 
what is proper to do in the way of police power 
and what is improper to do according to the cir- 
cumstances and the times. This is the heart of 
that opinion.' This is what makes that opinion 
an authority and made it famous : 

"The question in every case is whether the words 
used are used in such circumstances and are of 
such a nature as to create a clear and pressing dan- 
ger that there will bring about the substantive evils 
that Congress has the right to prevent." 

You cannot leave one word out of that and have 
a valid understanding ,of it. It is a question of 
proximity and degree. 

Now then, he elaborated on that view in a sub- 
sequent case. This was the case of Abrams vs. 
the United States. Here was a case where 
Kussian-born people jjrinted a few thousand 
leaflets of protest against American troops being 
sent into Russia after the Revolution in 1917. 
The majority of the court found them guilty. 
Four men and a girl were sentenced and Mr. Jus- 
tice Holmes dissented. He is not a witness for 
suppression ; he is a witness for freedom. 

And, he said there — this is a dissenting opinion 
you understand : 

"I think we should be eternally vigilant against 
attempts to check the expression of opinions that 
we loathe and believe to be fraught with death, 
unless they so imminently threaten immediate in- 
terference with the lawful and pressing purposes 
of the law that an immediate check is required 
to save the country." 

That is the test. It is no light matter that will 
cause you to act in such cases. It must be of the 
gravest import. Not only that, it must be imme- 



"U.S. Reports. 



871 



THE UNITED NATIONS AND SPECMIIZED XGENC/ES 

diately threatening and requiring action at once 
to save the country. 

We find it again in this expression by Mr. 
Holmes : 

"Only the emergency that makes it immediately 
dangerous to leave the counter-action of evil coun- 
sels to time warrants making any exception to the 
sweeping command: Congress shall maEe no law 
abridging the freedom of speech." 

Here is another case, the Rosika Schwinamer 
case involving the refusal of citizenship to a 
woman who stated that she would not take up arms 
for this country. Mr. Justice Holmes, dissenting, 
said this : 

". . . if there is any principle of the Consti- 
tution that more imperatively calls for attach- 
ment than any other it is the principle of free 
thought — not free thought for those who agree 
with us but freedom for the thought that we hate." 

And yet, would you want your freedom sub- 
mitted to a magistrate who judged that Mr. Justice 
Holmes is a good witness to call in support of this 
resolution? That is what you face if you let this 
resolution go through. 

I think, however, that the occasion is so impor- 
tant that I ought to refer to an opinion by Mr. 
Justice Brandeis in which Mr. Justice Holmes 
concurred. It was, of course, an inadvertency for 
the distinguished representative of the Soviet 
Union to drag this matter in here and to try to 
make use of an opinion whose emphasis had an 
entirely diflFerent direction and probative force 
from that which he used. 

This other case is Whitney vs. California. I 
think perhaps some of my colleagues here may be 
quite familiar with this case. This was a case 
where the I. W. W. Terrorists were involved, and 
it was brought under the California Criminal 
Syndicalism Act. 

We find that, althougli the Court sustained and 
affirmed the conviction of these men, Mr. Justice 
Holmes and Mr. Justice Brandeis wrote a dissent- 
ing opinion to that conviction under that repres- 
sive law. But the reasoning is the point — and I 
am going to trespass upon your patience to read 
some of this because it is more eloquent than any 
one of us could be in the defense of this funda- 
mental freedom — free speech. 

I am skipping over a whole page to this : 

872 



"Those who won our independence believed that 
the final end of the State was to make men free to 
develop their faculties; and that in its govern- 
ment the deliberative forces should prevail over 
the arbitrary. They valued liberty both as an end 
and as a means. They believed liberty to be the 
secret of happiness and courage to be the secret of 
liberty. They believed that freedom to think as 
you will and to speak as you think are means in- 
dispensable to the discovery and spread of politi- 
cal truth; that without free speech and assembly 
discussion would be futile; that with them, dis- 
cussion affords ordinarily adequate protection 
against the dissemination of noxious doctrine ; that 
the greatest menace to freedom is an inert people ; 
that public discussion is a political duty ; and that 
this should be a fundamental principle of the 
American Government. They recognized the risks 
to which all human institutions are subject. But 
they knew that order cannot be secured merely 
through fear of punishment for its infraction; 
that it is hazardous to discourage thought, hope 
and imagination ; that fear breeds repression ; that 
repression breeds hate; that hate menaces stable 
government; that the path of safety lies in the 
opportunity to discuss freely supposed grievances 
and proposed remedies ; and that the fitting rem- 
edy for evil counsels is good ones. Believing in the 
power of reason as applied to public discussion, 
they eschewed silence coerced by law — the argu- 
ment of force in its worst form. Recognizing the 
occasional tyrannies of governing majorities, they 
amended the Constitution so that free speech and 
assembly should be guaranteed." 

And I am moving over again to another part of 
this very great decision: 

"To courageous, self-reliant men, with confi- 
dence in the power of free and fearless reasoning 
applied through the processes of popular govern- 
ment, no danger flowing from speech can be 
deemed clear and present unless the incidence of 
the evil apprehended is so imminent that it may 
befall before there is opportunity for full dis- 
cussion. If there be time to expose through dis- 
cussion the falsehoods and fallacies, to avert the 
evil by the processes of education, the remedy to 
be applied is more speech, not enforced silence." 

And think of it. Do you want it possible to 
Department of State Bulletin 



have a judgment of whether you are a waruionger 
and whether what you say or write is warmonger- 
ing submitted to a magistrate who may have — 
I merely assert may have — the point of view of 
the distinguished gentleman who cited Mr. Justice 
Holmes as a witness for represssion of free speech ? 
No! 

• • • • • 

The road of restraint by edict leads directly to 
the establishment of censorship and a police state. 
The United States does not intend to support any 
steps along that road. 

There can be no compromise with efforts to cur- 
tail freedom of speech. Condemnation of thought 
and expi-ession leads to prohibition, prevention, 
and suppression. Suppression of thought and 
speech leads to the tyrannical exercise of arbitrary 
power in the hands of the few. This is the antith- 
esis of democracy, the negation of the principles 
upon which the United Nations is based. 

The United States Delegation opposes any at- 
tempts, direct or indirect, to limit freedom of ex- 
pression. We are against even setting foot upon 
the path leading to suppression and tyranny. We 
are, therefore, opposed to this resolution in its 
entirety. 

The Soviet proposal directs attention from prac- 
tical programs for removing the causes of war. 
Those programs should now have our undivided 
attention. Destructive expression cannot make 
headway if constructive actions are resolutely car- 
ried forward in support of the Charter. 

There is a genuine ground for concern — even 
alarm — over the state of international relations. 
Intemperate talk and provocative expression on 
all sides point to causes, deep-seated and signifi- 
cant. To attempt to suppress talk reflecting this 
anxiety is futile. Talk is a symptom. We must 
get at the causes, such as distress, despair, hunger, 
and ill health. The causes also include the failure 
of the United Nations to establish peace forces, the 
failure to establish safeguards against the use of 
atomic energy for destructive purposes. The 
Soviet resolution presents no inspiration or help 
to members of the United Nations. 

For the condemnation of war no resolution by 
the General Assembly can equal in dignity or au- 
thority the Charter of the United Nations. Every 
feature of the Charter aims at the taking of effec- 
tive collective measures "to save succeeding gen- 



THS UNITED NATIONS AND SPECIALIZED AGENCIES 

ei'ations from the scourge of war." The Charter 
tells us specifically how to carry out our obliga- 
tions to prevent war and maintain peace. Let us 
get on with practical programs. 

One such program is to build as rapidly as pos- 
sible the economic and social foundations for 
stable and strong members of the United Nations, 
capable of playing their full role in collective 
security. 

We want to live in a reconstructed world of 
self-reliant, self-respecting nations which are 
progressively achieving freedom from want as 
well as freedom from fear. 

In the struggle for security and freedom from 
fear we seek to protect the territorial integrity 
and political independence of all countries. This 
is another practical program for peace. Aggres- 
sion, whatever its fonn, cannot stand the light of 
day. Aggression cannot be planned and carried 
out in the spotlight of world opinion as it is re- 
flected in this great Assembly. 

Still another great program for peace has been 
approved by a large majority of the Atomic Energy 
Commission. By a vote of 10 to 1, with one absten- 
tion, the Atomic Energy Commission has submit- 
ted to the Security Council an interim report de- 
fining in detail the functions, responsibilities, and 
limitations of an International Agency for the 
Control of Atomic Energy. The Soviet Uniott 
alone voted against this interim report. It has con- 
tinued to urge prohibition before control is set up. 

Effective control of atomic and other weapons of 
mass destruction is not served by the exhortation 
contained in paragraph 4 of the resolution before 
us. The proposed resolution speaks only of "the 
exclusion from national armaments of the atomic 
weapon and all other main types of armaments de- 
signed for mass destruction." It does not quote the 
remainder of the resolution of Jan. 24, 1946, which 
requires "effective safeguards by way of inspection 
and other means to protect complying states from 
the hazards of violation and evasions." 

Part 4 of the Soviet resolution asks this body 
to accept a principle which the preponderant ma- 
jority of the Atomic Energy Commission, having 
worked on this problem for more than 15 months, 
long since rejected in toto. Yet the Soviet Union 
would still have us say that a convention of pro- 
hibition is enough. 

The majority of the Conrmiission which has 



November 2, 1947 



873 



THE un;t£d nations and speciauzbd agencies 

worked assiduously for these many months on the 
problem of atomic energy control knew that an 
exchange of pious promises not to use atomic weap- 
ons is of no value except as a part of a fully effec- 
tive system of control. Without such control, no 
treaty would provide the security which the world 
demands. It would indeed be a fraud upon the 
peoples. 

In seeking security, we are also working to re- 
duce the burden of armaments by plan and agree- 
ment. We can do this by patient, detailed work 
in the commission which has been set up for the 
purpose. The world wants collective security. 
The absence of collective security is a cause of 
fear. Slow progress to general disarmament casts 
doubt upon our ability to outlaw war. But it can 
be prepared for day by day in the Commission for 
Conventional Armaments, and can be finally real- 



ized when effective safeguards against the destruc- 
tive use of atomic energy have been established, 
agreement reached on the shape and size of peace 
forces, and the peace settlements concluded. 

The United States will continue its efforts to 
meet negative and obstructive diplomacy with a 
diplomacy that seeks the constructive solution. It 
is trying to cooperate in words and deeds in many 
constructive programs for peace, and it is will- 
ing that its words and deeds should be judged by 
its fellow members of the United Nations. 

Cooperation in these practical programs by all 
the members of the United Nations would remove 
the causes of war, thereby eliminating the symp- 
toms aimed at by the Soviet resolution. 

Let us dissent to the resolution and get on with 
our work. 



STATEMENT BY THE U.S. REPRESENTATIVE TO THE GENERAL ASSEMBLY i 



It seems this resolution was introduced with 
certain political reminders.^ I should like to say 
at the start that none of us who followed closely 
the history of the last war will ever forget the 
magnificent role which Yugoslavia played, nor, I 
think, will we ever cease to be grateful for what 
Yugoslavia contributed to the Allied cause. 

But we are here talking about something which 
means the building up of peace. 

Now it seems to me that the resolution pre- 
sented by the Yugoslav Delegation has a familiar 
look, and the arguments made for it a familiar 
ring. 

Proposals very like this one, involving the same 
basic issues, have been discussed by much the 
same protagonists in the Subcommission on Free- 
dom of Information, in the Economic and Social 



' Made on Oct. 24, 1947, by Mrs. Franklin D. Roosevelt 
before tlie Third Committee (Social, Humanitarian and 
Cultural Questions), and released to the press by the 
U.S. Mission to the U.N. on the same date. Printed from 
telegraphic text. 

' U.N. doc A/C.3/162, Oct. 4, 1947, a resolution submitted 
by the Yugoslav Government for the prevention of tlie 
dissemination, to the detriment of foreign states, of slan- 
derous statements which are harmful to good relations 
between states and in nmflict with the purposes and prin- 
ciples of the United Nations. 

' U.N. doc. A/BUR/86, Sept. 18, 1947. 



Council, and in the Social Committee of the 
Council. 

In this session of the General Assembly, a re- 
markably similar resolution introduced by Mr. 
Vyshinsky is being considered by the First Com- 
mittee.' And this, the Third Conunittee, has 
fully — indeed, exhaustively — discussed a Soviet 
proposal concerning the Conference on Freedom 
of Information, parts of which raised the same 
basic problems as the resolution now before us. 

Each time they have come up, Mr. Chairman, 
the proposals to which I refer have been voted 
down. In view of what I believe to be the sense 
of this Committee in its earlier discussions on the 
Soviet proposal, I believe that the resolution in- 
troduced by the Yugoslav Delegation should be 
similarly rejected on the ground that the discus- 
sion of the issues which it raises has already been 
fully provided for in the provisional agenda of 
the Conference on Freedom of Information. 

I am the first to acknowledge, Mr. Chairman, 
that from time to time things are said in the 
United States by irresponsible persons and press 
organs which might better be left unsaid. 

I think the press of the United States would 
hardly expect me to defend the Chicago Tribune 
or some of the journalists. However, much as I 



874 



Department of State Bulletin 



hate what some of our press has said in the past at 
times, I would defend their right to say it. And I 
would feel that it was up to the people to choose 
between different views. The right of people to 
speak is essential. 

There are 140 million people in this country, all 
of whom have the constitutional right of freedom 
of speech. 

There are more than 1,700 daily newspapers in 
the United States and almost 10,000 weeklies. The 
overwhelming majority of these are independent, 
individual units, locally owned. Even in the case 
of the dailies, about 83 percent are locally owned 
and only slightly more than one out of five is 
connected with a chain. The largest chain in the 
United States consists of less than 20 dailies. 

Each of these papers is free to report world news 
and to comment on this news as it likes. 

Out of this total of 140 million citizens, 1,700 
daily newspapers, and 10,000 weeklies, there are 
bound to be some extremists. There are two ways 
in which these extremists can be handled. One 
way is to put them in jail ; the other is to argue 
with them in the open and bring them under the 
weight of wiser opinion. We pi'efer the latter. 

This may be difficult to understand in countries 
accustomed to a system of complete, monopolistic 
control of all organs of opinion. 

The problem raised by the Yugoslav proposal 
is a matter of serious concern to the United States, 
and my Government is anxious that this problem 
be faced frankly and squarely. 

For many months, a systematic campaign of 
propaganda has been waged by and in certain 
countries against the United States and other dem- 
ocratic nations which share our fundamental be- 
liefs. This campaign is designed to estrange exist- 
ing feelings of friendship toward the United 
States and its democratic friends, to lessen con- 
fidence in them, and to isolate them morally. 

The United States seeks to protect the independ- 
ence of other states and to attain peace through 
' the United Nations; yet we are pictured as "ag- 
gressive", "imperialistic", and "war-mongering" 
frantically preparing for a third war. 

The United States is economically strong, her 
people are producing more than they have ever 
produced before; yet in order to lessen confidence 
in international cooperation with the United 
States, there has been for two years a flood of 



THE UNITED NATIONS AND 5PBCIAUZBD ACENCIBS 

propaganda about an alleged coming American 
depression. 

The United States is a democracy in which the 
people can change their government by their own 
votes. When any one group has become too strong, 
the people have put restrictions on them and have 
taken the power back in their own hands. Yet 
we are bombarded with propaganda that the 
United States is dominated by "Wall Street", is 
supporting "Monarcho-Fascists", "imperialists", 
"cartelists", "dollar-worshipers", and "feudalists" 
the woi'ld over against the wishes of the people 
concerned. 

The people of the United States have given those 
things they have produced with their own hands — 
foodstuffs, coal, and manufactured goods — to na- 
tions who have been made hungry and needy by 
the war, in order that those nations may again 
become economically strong and politically inde- 
pendent ; yet there is propaganda that the United 
States is not a sincere friend because its intentions 
are selfish and evil; that the United States is not 
a useful friend because it will fail in the hour of 
need ; that the United States is not a worthy friend 
because of the bad company it keeps. 

The chief element of concern to my Government 
in this situation is not that the United States is 
being criticized or maligned. We do not object to 
the fact that we are subject to criticism in any free 
press or over any free radio in the world. The 
concomitant ef the doctrine of freedom of infor- 
mation is that every government is subject to criti- 
cism from all interested sources. 

What is of grave concern to my Government is 
the growing practice of erecting tight govern- 
mental monopolies over the information dissemi- 
nated in many nations of the world. Sometimes 
what is printed in the controlled press of these 
countries is not false so far as it goes, but the 
whole truth is rarely told. A careful selection of 
items is made to build up the desired general pic- 
ture, and the rest of the news is frequently omitted 
or distorted. I think those of us who listened to 
the debates here must know that by this time, be- 
cause we have heard cited both here and in Com- 
mittee One definite quotations, but we have never 
heard anything on the other side, and there is, of 
course, more on the other side that could be quoted. 
I think that that is something that we ought to 



November 2, 1947 



875 



THE UNITED NATIONS AND SPCCIAUZCD AGENCICS 

remember in discussing what happens in a free 
press. 

A recent example of this technique is the treat- 
ment by the controlled press of the statements 
made by Mr. Vyshinsky and Secretary Marshall 
at the opening session of this Assembly. Mr. 
Vyshinsky's address was given copious space, fre- 
quently being produced verbatim. Secretary Mar- 
shall's statement, on the other hand, received no 
mention whatsoever in many press organs, and 
where brief mention was given, the account was 
slanted in the desired direction. In the United 
States press, on the other hand, Mr. Vyshinsky's 
statement was reported fully and fairly in all 
major press organs, despite the fact that it con- 
tained an indictment, among other things, of the 
American press itself. In this way, the people of 
the countries in which the controlled press func- 
tions are being sealed off from the outside world, 
kept in the darkness of governmental and semi- 
governmental propaganda, and systematically 
shielded from the light of full truth. 

The threat to international peace and security is 
indeed grave when behind these walls of contrived 
ignorance governments persistently slander gov- 
ernments and official propagandists work to poison 
the wells of international friendship — without 
possibility of effective reply. 

The problem raised by the Yugoslav resolution 
deserves careful study with regard to private news 
agencies but even more with regard to govern- 
mental and semigovernmental information serv- 
ices. The time and place for this consideration is 
obviously the Conference on Freedom of Infor- 
mation at Geneva beginning the next 23d of March. 

The Yugoslav proposal clearly falls within the 
terms of reference of the Conference, which call 
for the formulation of "its views concerning the 
rights, obligations and practices which should be 
included in the concept of the freedom of informa- 
tion". 

Item 2(D) of the provisional agenda reads as 
follows : 

"Consideration of the following fundamental 
principles to which media of information should 
have regard in performing their basic functions 
of gathering, transmitting and disseminating news 
and information without fetters: 

"(D) To help maintain international peace and 



' U. N. doc. E/Conf. 6/1, Aug. 22, 1947. 



security through understanding and co-operation 
between peoples, and to combat forces which incite 
war, by removing bellicose influences from the 
media of information." 

Item 5(C) (II), inserted at the instigation of 
the Soviet member on the Subcommission on Free- 
dom of Information, speaks of : 

"(II) Counteracting false information through 
"(1) the study of measures for counteracting 
and spreading of demonstrably false or tenden- 
tious reports which confuse the peoples of the 
world, aggravate relations between nations or 
otherwise interfere with the growth of interna- 
tional understanding ... . 

"(2) the study of measures, especially legisla- 
tive measures, which are designed to establish 
the responsibility of the owners of newspapers 
which spread false and tendentious reports of a 
nature which worsen relations between peoples, 
provoke conflicts and incite to war." ■* 

It is therefore clear that the provisional agenda 
already provides for the discussion of problems 
of the type raised by the Yugoslav Delegation. 

In the opinion of the Delegation of the United 
States, the remedy to the existing situation does 
not lie, as the Yugoslav resolution implies, in a 
further curtailment of freedom of information. 
Rather it is to be sought in a vast expansion of 
freedom of information both internationally and 
domestically a breaking down of the monopolies 
and inadequacies of information which now exist 
in varying degrees almost everywhere in the 
world. 

Self -discipline is necessary, but I do not believe 
that repression of opinion can be accomplished ef- 
fectively by law — at least in the many countries 
which cherish a tradition of freedom of speech and 
of the press. 

Despite our differences in language, national 
background, and ways of life, one of the magnifi- 
cent things about the United Nations, to my mind, 
is that we understand each other as well as we do. 
It is deeper understanding among peoples and a 
greater interchange of information and of persons 
across international boundaries that is called for 
to remove present distrust. 

I do not approve of warmongering. I do not ap- 
prove of inciting to war. But I do approve of 
the fundamental freedoms, and I do not see how, 
by law, one can curtail these freedoms. I think 



•76 



Department of State Bulletin 



that this cannot be as well discussed here — where 
we are not experts on the press on the whole, al- 
though I know there are some experts here — as it 
can be discussed and the proper methods found 
in Geneva in the conference which has already 
been called. 

Mr. Chairman, it seems to my Delegation that 
the proposal of the Yugoslav Delegation has al- 
ready been rejected, in principle, by this Commit- 
tee through action which this Committee has pre- 
viously taken on the agenda of the Conference on 
Freedom of Information, which was drawn up 
after full discussion of the issues now before us; 
and furthermore that the agenda now includes 
language which is quite adequate to permit at 
the Conference full discussion of these issues 
should such discussion be desired by any delega- 
tion. I therefore urge, Mr. Chairman, that the 
proposal of the Yugoslav Delegation be rejected. 

America's Stake In Europe — Continued from page 866 

festo issued by the recent Warsaw conference of 
Commimist leaders from nine countries is a public 
avowal of the determination of the Communists 
to defeat, if possible, the constructive eflPorts of 
the nations of western Europe to regain their 
health, their self-respect, and their ability to live 
a good life, worthy of proud and free peoples. 
Europe was broken by war and has begun to mend. 
We fail to see why the convalescent should be 
broken once more only to be reset in a distorted 
and crippling form. 

The opposition of those who must reduce free 
peoples to degradation in order to make their own 



THf UNITED NATIONS AND iPtCIAllZtD AGBNCICS 

alternative seem attractive by contrast is the most 
eloquent testimonial to the effectiveness of the 
Marshall approach to European recovery that has 
yet appeared. It also constitutes a deadly serious 
challenge that the free peoples of the United 
States and western Europe should recognize and 
prepare to meet. Such opposition not only puts 
us on notice that there is a risk involved in the 
democratic program for the salvation of Europe ; 
it tells us plainly that there is an even greater 
risk in not initiating that program and vigorously 
pressing it to a successful conclusion. 

The whole problem would seem made to order 
for American enterprise. It calls for the bold 
imagination, the broad vision, the adventurous 
spirit, and the forceful action that combines auda- 
city and practicality — the same pioneering that 
made America itself great- — applied this time on 
an international scale. It calls for raising our 
sights to wider horizons — for visualizing a saner 
world in which we and all other peoples will share 
the blessing of peace and prosperity. Let us re- 
spond to this challenge in the traditionally Amer- 
ican way — boldly, energetically, decisively. 

Corrigendum 

In the Bulletin of October 12, 1947, page 731, 
the Security Council committee established to 
tender the good oflSces of the Security Council in 
the settlement of the dispute between the Nether- 
lands Government and the Kepublic of Indonesia 
was erroneously referred to as an arbitration 
committee. The Council resolved to tender its 
good offices to the parties concerned through a 
committee of three. 



November 2, 1947 



077 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings ^ 



Adjourned During Month of October 

International Conference on Trade and Employment: Second Meeting of 
Preparatory Committee. 

Cfm (Council of Foreign Ministers) : Committee To Examine Disagreed 
Questions of the Austrian Treaty. 



International Radio Conference 

International Telecommunications Plenipotentiary Conference 

International High Frequency Broadcasting Conference. . . 

ICAO (International Civil Aviation Organization) : 

Legal Committee 

Joint Airworthiness Operations Committee 



United Nations: 

Ecosoc (Economic and Social Council) : Subcommission on Statistical 

Sampling. 
EcE (Economic Commission for Europe) : 

Panel on Housing Problems 

Committee on Electric Power 

Subcommittee on Timber 

Committee on Inland Transport 

Narcotic Drugs Supervisory Body: 28th Session 

Imo (International Meteorological Organization) : Conference of Directors. 

Pan American Sanitary Organization: Directing Council 

IcBF (International Children's Emergency Fund) : 

Program Committee 

Meeting of Executive Board 



EciTO (European Central Inland Transport Organization) : Ninth Session . . 

International Conference of National Travel Organizations: General 
Assembly. 

Conference of International Committee on Folk Art and Folklore 

Rubber Study Group: Meeting of Management Committee 

Third International Congress on Grapes, Grape Juice and Wine 

International Tin Study Group: Meeting of Management Committee . . . 

International Conference on Livestock Production 



Sixth Pan American Congress of Architects (including pan-American ex- 
hibits of architecture and city planning). 



First Pan American Consultation on History . 



Who (World Health Organization) : 

Expert Committee on the Revision of the International Lists of Causes of 

Death and Morbidity. 
Expert Committee on Quarantine 



Geneva 


Apr. 10-Oct. 


30 


Vienna 


May 12-Oct. 


11 


Atlantic City . . . 


May 15-Oct. 


2 


Atlantic City . . . 


July 1-Oct. 2 




Atlantic City . . . 


Aug. 15-Oct. 


2 


Brussels 


Sept. 10-25 




Paris 


Sept. 23-Oct. 


4 


Lake Success . . . 


Sept. 22-Oct. 


2 


Geneva 


Oct. 1-3 




Geneva 


Oct. 9-15 




Geneva 


Oct. 15-17 




Geneva 


Oct. 20-24 




Geneva 


Oct. 6-11 




Washington. . . . 


Sept. 22-Oct. 


11 


Buenos Aires . . . 


Sept. 24-Oct. 


2 


Lake Success .... 


Sept. 29-Oct. 


7 


Lake Success .... 


Oct. 2-8 




Paris 


Sept. 29 




Paris 


Oct. 1-5 




Paris 


Oct. 1-5 




London 


Oct. 2-3 




Istanbul 


Oct. 2-7 




Brussels 


Oct. &-7 




Zurich 


Oct. 8-9 




Lima 


Oct. 15-25 




Mexico City .... 


Oct. 18-23 




Geneva 


Oct. 21-28 




Geneva 


Oct. 13-16 





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



878 



Department of State Bulletin 



I 



Calendar of Meetings — Continued 



Iefc (International Emergency Food Council) : Fifth Meeting 

In Session as of October 31, 1947 

Far Eastern Commission 

United Nations: 

Security Council 

Military Staff Committee 

Commission on Atomic Energy 

Commission on Conventional Armaments 

General Assembly 

Security Council's Good Offices Committee on Indonesia 

German External Property Negotiations (Safehaven) : 

With Portugal 

With Spain 

Inter-Allied Trade Board for Japan 

IcAO (International Civil Aviation Organization) : 

Second Session of the Council 

Aerodromes, Air Routes, and Ground Aids Division. 

Iaba (Inter- Allied Reparations Agency) : Meetings on Conflicting Claims 
to German Assets. 

Cfm (Council of Foreign Ministers) : Meeting of Deputies for Italian 
Colonial Problems. 

Anglo-American Discussion on Financial Provisions of Bi-zonal Economic 
Fusion Agreement. 

National Exhibition and Meeting of Cartography and Optics 

Ilo (International Labor Organization) : Preparatory Regional Asian 
Conference. 

Scheduled for November 1947-January 1948 

Nabba (North American Regional Broadcasting Agreement) : Meeting of 
Technicians. 

UNESCO (United Nations Educational, Scientific and Cultural Organiza- 
tion) : 

Fourth Session of Executive Board 

Second Session of General Conference 

International Council of Museums: Interim General Council 

IcAO (International Civil Aviation Organization): 

Special Conference on Multilateral Aviation Agreement 

Statistics Division: First Session 

Personnel Licensing Division 



Fao (Food and Agriculture Organization) : First Session of the Council 



Washington 



Washington . 

Lake Success . 
Lake Success . 
Lake Success . 



Lake Success . . . . 

Lake Success and 
Flushing Meadow. 

Lake Success and 
Indonesian Terri- 
tory. 

Lisbon 

Madrid 

Washington . . . . 

Montreal 

Montreal 

Brussels 

London 

Washington . . . . 

Florence, Italy . . , 
New Delhi 

Habana 



Mexico City .... 
Mexico City .... 
Mexico City .... 


Nov. 1- 
Nov. 6- 
Nov. 7- 


Geneva 


Nov. 3- 

1948 


Montreal 

Montreal 


Jan. 13- 
Jan. 13- 




1947 


Washington .... 


Nov. 4-14 



Oct. 27-29 
1946 

Feb. 26- 

Mar. 25- 
Mar. 25- 
June 14- 

1947 

Mar. 24- 
Sept. 16- 

Oct. 8- 

1946 

Sept. 3- 
Nov. 12- 

Oct. 24- 

1947 

Sept. 2- 
Sept. 23- 

Sept. 8- 

Oct. 3- 

Oct. 8- 

Oct. 27- Nov. 9 
Oct. 27-Nov. 10 



Nov. 1- 



November 2, 1947 



879 



Calendar of Meetings — Continued 

Cfm (Council of Foreign Ministers) : 

Meeting of Deputies for Germany 

Fifth Session 

Seventeenth Session of International Wheat Council 

Inter-American Conference and Committee on Social Security 

United Nations: 

EcE (Economic Commission for Europe) : 

Committee on Industry and Materials 

Committee on Coal 

Third Session 

Ecosoc (Economic and Social Council) : 

Subcommission on Employment and Economic Stability 

Subcommission on Economic Development 

Subcommission on Protection of Minorities and Prevention of Discrimi- 
nation. 

Human Rights Commission: Second Session 

Transport and Communications Commission 

Commission on the Status of Women 

Narcotic Drugs Supervisory Body: 29th Session 

Trade and Employment Conference 

Trusteeship Council: Second Session 

Permanent Central Opium Board 

Who (World Health Organization) : 

Committee on Administration and Finance 

Fifth Session of Interim Commission 

Fifth Meeting of Inter-American Bar Association 

Arts and Handicrafts Exhibition of American Elementary School Children . . 

Ilo (International Labor Organization) : 

Joint Maritime Commission 

103d Session of Governing Body 

Fifth Meeting of the Caribbean Commission 

Third Pan American Congress of Ophthalmology 

Ninth Pan American Child Congress 

Ninth International Conference of American States 

Meeting of International Council of American International Institute for the 
Protection of Childhood. 

Meeting of Special Committee To Make Recommendations for the Coordi- 
nation of Safety Activities in the Fields of Aviation, Meteorology, 
Shipping, and Telecommunications. 



London 
London 



Washington . 
Rio de Janeiro 



Geneva . . 
Geneva . . 

Geneva . . 

Lake Success 
Lake Success 
Geneva . . 

Geneva . . 
Lake Success 

Lake Success 

Geneva . . 
Habana . . 
Lake Success 
Geneva . . 

Geneva . . 
Geneva . . 

Lima . . . 

Montevideo 

Geneva . . 
Geneva . . 

Trinidad 

Habana . . 

Caracas . . 

Bogota . . 

Caracas . . 

London . . 



Nov. 6- 
Nov. 25- 

Nov. 10-12 

Nov. 10- 



Nov. 15-20 
Nov. 18-22 

1948 

January 

1947 

Nov. 17 
Nov. 17 
Nov. 24 

Dec. 1- 
Dec. S- 

1948 
Jan. 5- 

1947 

Nov. 17-22 
Nov. 21- 
Nov. 24-Dec. 13 
Nov. 24-29 



1948 

Jan. 19- 
Jan. 22- 

1947 

Nov. 25- 

November 



Dec. 


2- 


Dec. 


11- 


Dec 


8-13 




1948 


Jan. 


4- 


Jan. 


5- 


Jan. 


17- 


January 



January 



880 



Depar/menf of Sfafe hvWeMn 



THE RECORD OF THE WEEK 



The Geneva Charter for World Trade 



BY CLAIR WILCOX' 



A United Nations Conference on World Trade 
and Employment will convene in Habana, Cuba, 
on November 21, 1947. It will be the purpose of 
this conference to agree upon and recommend to 
governments a charter for an International Trade 
Organization. The first outline of such a charter 
was presented by the Government of the United 
States in its Proposals for Expansion of World 
Trade and Employment ^ in December 1945, and 
the first draft of the charter was prepared by the 
United States and published in September 1946.^ 
At the suggestion of our Government, the United 
Nations in February 1946 established a commit- 
tee of 18 nations to prepare for the world confer- 
ence. This committee completed a second draft 
of the charter at London in November 1946,* a 
third draft in New York in February 1947,° and 
a fourth draft in Geneva in August 1947.' It is 
this fourth, or Geneva, draft that the world con- 
ference in Habana will take as the basis of its 
work. As it stands today the charter is the prod- 
uct of two years of careful preparation in the 
United States and a full year of continuous inter- 
national negotiation. No agreement in history 
has had fuller consideration or been written with 
greater care. 

It is the central purpose of the charter to con- 
tribute to the improvement of living standards all 
around the world by promoting the expansion of 
international trade on a basis of multilateralism 
and nondiscrimination, by fostering stability in 
production and employment, and by encouraging 
the economic development of backward areas. Its 
substantive chaptei-s, accordingly, set forth a series 
of international commitments with respect to na- 
tional policies regarding tariflPs, customs admin- 
istration, hidden restrictions on trade, import and 
export quotas, exchange controls, preferences and 



other forms of discrimination, state trading, sub- 
sidies, restrictive business practices in interna- 
tional trade, intergovernmental commodity agree- 
ments, the international aspects of domestic em- 
ployment policies, economic development, and 
international investment. Its remaining chapters 
outline the structure, fmictions, and procedures of 
the specialized agency of the United Nations that 
would be concerned with these matters — the Inter- 
national Trade Organization or, to make it short, 
the Ito. 

Let us first summarize the major provisions of 
the charter as it stands today and then consider the 
character and the significance of the document as 
a whole.' 



1. Tariffs and Preferences. Members of the 
Ito must carry out negotiations directed toward 
the substantial i-eduction of tariffs. But if, 
through unforeseen developments, a particular 
reduction should increase imports so sharply as to 
cause or threaten serious injury to domestic pro- 
ducers, a member may suspend its operation in 
whole or in part. 



'Address delivered before the Boston Conference on 
Distribution, Boston, Mass., on Oct. 21, 1947, and released 
to the press on the same date. Mr. Wilcox is Director of 
the Office of International Trade Policy, Department of 
State. 

^Department of State publication 2411. 

' Department of State publication 2598. 

■* Department of State publication 2728. 

° Not printed. 

" Department of State publication 2927. 

' For a discussion of the various aspects of the charter, 
see Bulletin of Sept. 28, 1947, p. 603 ; Oct. 5, 1947, p. 663 ; 
and Oct. 26, 1947, p. 787. 



November 2, J 947 



THE RECORD OF THE WBBK 

Reductions in tariffs will operate to reduce or 
eliminate margins of preference. Aside from the 
preferences that may survive negotiation, each 
member must grant every other member equal 
treatment for its trade. No new preferences can 
be created. No existing preferences can be in- 
creased. An exception is made, however, for new 
preferential arrangements which are incidental to 
the establishment of a customs union. 

2. Invisible Tariffs. Members must not nullify 
tariff cuts by emjaloying restrictive methods of 
customs administration, by imposing discrimina- 
tory internal taxes or regulations, or by resorting 
to other hidden forms of protection. In the case 
of motion pictures the only restriction allowed is a 
requirement that a certain fraction of screen time 
must be devoted to the exhibition of domestic films. 
Such quotas are made negotiable and may thus be 
reduced through international agreement. Re- 
maining screen time may not be allocated among 
foreign films but must be ke^Dt open to free 
competition. 

3. Quota Systems. As a general rule quantita- 
tive limitations on exports and imports are for- 
bidden. But this rule is qualified by a number of 
necessary exceptions. Quotas may be used mitil 
1951 in distributing products in short supply, in 
maintaining price controls, and in liquidating gov- 
ermnent surpluses and war industries. They may 
be used temporarily to relieve critical shortages of 
foodstuffs and other essential goods. They may 
be used permanently to enforce standards for the 
classification and grading of commodities. Im- 
port quotas on agricultural and fisheries products 
may also be employed to supplement domestic pro- 
duction and marketing controls and surplus dis- 
posal programs if such quotas do not reduce the 
share of imports in the domestic market. 

More important is a final exception, which per- 
mits a member to employ import quotas to the ex- 
tent necessary to forestall the imminent threat of, 
or to stop, a serious decline in its monetary re- 
serves pr, in the case of a member with very low 
monetary reserves, to achieve a reasonable rate of 
increase in its reserves. Under this provision a 
member can select imports on the ground of essen- 
tiality. But it cannot completely exclude any 
class of goods. It must av.oid unnecessary damage 
to the interests of other members. It must seek 
to restore equilibrium in its balance of payments 

882 



on a sound and lasting basis and to assure an 
economic employment of productive resources. It 
must consult with the Ito concerning the effect of 
its restrictions on other countries, the causes of 
its monetary difficulties, and the ways in which 
they may be overcome. It must relax its quotas 
as its monetary position improves and eliminate 
them entirely when its difficulties disappear. 

Any member may complain that another has 
failed to satisfy these conditions. If the Ito 
finds that the complaint is justified, it must recom- 
mend that the restrictions in question be withdrawn 
or modified. If the offending member does not 
comply with its recommendation, the Ito may 
then authorize other members to impose higher 
tariffs, quotas, or other restrictions on its trade. 
In all of its decisions in such cases the Ito must 
accept as conclusive the determinations of the 
International Monetary Fund as to the financial 
questions that are involved. 

Where quotas are permitted they must be ad- 
ministered without discrimination. But there are 
also necessary exceptions to this rule. In the main 
these exceptions are designed to make the provi- 
sions of the charter consistent with the Articles of 
Agreement of the International Monetary Fund. 
The most important of them permits a member to 
discriminate in using quotas if it can thereby in- 
crease its total imports and safeguard its mone- 
tary reserves. But, in doing so, the member must 
satisfy strict criteria and, after March 1952, it must 
also obtain the prior approval of the Ito. The 
Ito may, at any time, order a member to discon- 
tinue discriminations that are inconsistent with 
these provisions and, whenever it finds that there 
is no longer a wide-spread disequilibrium in in- 
ternational trade, may completely suspend the 
operation of this exception to the general rule. 

4. Exchange Controls. Since quantitative re- 
strictions and exchange controls may be employed 
alternatively to affect the flow of trade, it is im- 
portant that the rules that govern these two 
devices be laid down and administered with such 
consistency that it will be impossible, by resorting 
to one of them, to escape from the rules that gov- 
ern the other. Accordingly, the charter provides 
that members shall not, by exchange action, frus- 
trate the intent of the charter nor, by trade action, 
the intent of the Articles of Agreement of the In- 
ternational ISIonetary Fund. Members of the Ito 
who do not belong to the Fund are required to join 

Department of State Bulletin 



it or, failing this, to enter into a special exchange 
agreement with the Ito. Any such agi'eement 
would be established and administered in collabo- 
ration with the Fund. 

5. State Trading. The rules that regulate state 
trading enterprises parallel those that govern pub- 
lic control of private trade. A member maintain- 
ing a state monopoly must declare the margin that 
it will add when it sells an imported product in its 
domestic market. It must negotiate with respect 
to the height of this margin in the same way in 
which members negotiate with respect to tariffs. 
It must satisfy the full domestic demand at the re- 
sulting price, imposing no other limit on the quan- 
tity it buys. It must act in a manner that is con- 
sistent with the general principle of most-favored- 
nation treatment, buying and selling on the basis 
of commercial considerations and affording the 
enterjjrises of other members adequate opportu- 
nity, in accordance with customary business prac- 
tice, to compete for participation in its purchases 
and sales. 

6. Subsidies, If a member pays any subsidy 
that increases exports or reduces imports, it must 
inform the Ito and must be prepared to discuss 
the possibility of limiting the subsidy at the re- 
quest of any member who may be harmed. Direct 
subsidization of exports is forbidden, after two 
years, unless it is incidental to a stabilization plan 
that maintains domestic prices at a level that is 
sometimes above and sometimes below the level of 
prices in world markets, or unless it is permitted 
under an intergovernmental commodity agree- 
ment, or unless it is authorized by the Ito. 

7. Restinctive Business Practices. Each mem- 
ber agrees to take all possible measures, by legisla- 
tion or otherwise, to ensure, within its jurisdiction, 
that commercial enterprises, whether private or 
public, do not engage in practices which restrain 
competition, limit access to markets, or foster 
monopolistic control in international trade, when- 
ever such practices interfere with the expansion 
of production or trade or the achievement of any 
other objective of the charter. Upon complaint 
by a member the Ito will make an investiga- 
tion, hold hearings, and if it finds that the practices 
in question have such an effect, will request the 
members concerned to take every possible remedial 
action and may recommend remedial measures to 
be carried out in accordance with their respective 
laws and procedures. 



IHE RECORD Of THE WEEK 

8. Commodity Agreements. Members agree 
substantially to limit their present freedom to 
enter into intergovernmental commodity agree- 
ments. Such agi-eements will be confined, in gen- 
eral, to primary commodities. They must be open 
to participation on equal terms by any member of 
the Ito. And they must be accompanied at every 
stage by full publicity. Agreements which regu- 
late production, exports, imports, or prices are 
confined, moreover, to commodities produced 
under strictly specified conditions and to periods 
of burdensome surplus and wide-spread distress. 
They must be limited in duration and subject to 
periodic review. They must afford consuming 
countries and producing countries an equal voice. 
They must assure the availability of adequate sup- 
plies. They must provide increasing opportuni- 
ties for satisfying world requirements from 
economic sources. And each country participat- 
ing in such an agreement must adopt a program of 
economic adjustment designed to make a continua- 
tion of the agreement unnecessary. These rules do 
not prohibit commodity agreements; they do not 
promote them. They are designed to safeguard 
the interests of consumers, to force adjustment to 
changing conditions, and to facilitate the early 
restoration of free markets. 

9. Employment. Each member agrees to take 
action designed to achieve and maintain full and 
productive employment and large and steadily 
growing demand within its own territory through 
measures appropriate to its political, economic, 
and social institutions. The nature of the action to 
be taken by any member is for it alone to choose. 
No member is asked to guarantee that its efforts 
will succeed ; the commitment is simply that such 
efforts will be made. This commitment was taken 
by the Congress of the United States when it 
passed the Employment Act of 1946. And full 
employment, as the term is used in the charter, is 
defined in the words of that law. 

Certain countries have been reluctant to enter 
into a freer trading system because they fear that 
such a system would make it more difficult for them 
to maintain their domestic employment programs. 
This might happen, for instance, if there were a 
persistent maladjustment in which one or more 
countries bought too little abroad and invested too 
little abroad in relation to their exports while 
others produced and sold too little abroad to bal- 



November 2, 1947 



883 



THE RECORD Of THE WEEK 

ance their accounts. In such a situation the char- 
ter proides that all of the members concerned 
shall take action designed to correct the maladjust- 
ment. But the particular measures that are to be 
adopted by any member are for it alone to decide. 

Adherence to liberal commercial policies would 
also be rendered difficult if a major trading coun- 
try were to fall into a depression which would 
involve a serious or abrupt decline in its demand 
for imported goods. In this case, as in othei-s, a 
member may ask to be relieved of certain obliga- 
tions that it has assumed under the charter on the 
ground that the benefits accruing to it have been 
nullified or impaired. And the Ito, in consider- 
ing this comjilaint, is directed to have regard to 
the need of members to take action to safeguard 
their economies against deflationary pressure. 

10. Economic Development. Each member 
agrees to develop the resources of its own territory, 
to raise standards of productivity, and to cooperate 
with others, through international agencies, in pro- 
moting general economic development. Members 
exporting facilities required for development agree 
to impose no unreasonable impediments to their 
exportation, and members importing them agree 
to take no unreasonable action injurious to the 
interests of those who provide them. Upon re- 
quest, the Ito may advise any member concerning 
its plans and progi'ams for development and aid 
the member in obtaining technical advice and 
assistance. 

Each of the less developed countries will make its 
own decisions as to the industries it wishes to pro- 
mote. Wliere jjublic assistance is required, it will 
be free to subsidize new industries. And where it 
has not included a commodity in a trade agree- 
ment, it will be free to impose new tariffs or raise 
existing ones. But in those cases in which a mem- 
ber desires to use some method of protection that it 
has promised not to use, that is, where it wishes to 
impose an import quota or to change the tariff 
status of a commodity to which the provisions of a 
trade agreement may apply, it must first obtain 
the permission of the Ito. In such cases the Ito 
will consult with those members whose trade would 
be affected and, with their agreement, may grant 
the developing country a limited release from the 
obligations that it had previously assumed. The 
charter thus establishes a new principle in inter- 
national affairs : that import quotas are not to be 

884 



employed, without international sanction, for the 
development of infant industries. 

11. International Investment. The Ito has, 
among its purposes, encouragement of the inter- j 
national flow of capital for productive investment, ' 
and it is authorized to promote the elaboration and 
adoption of a general agreement or statement of 
principles as to the conduct, practices, and treat- 
ment of foreign investment. Members agree, sub- 
ject to certain safeguards, to provide the widest 
opportunities for investment and the greatest se- 
curity for existing and future investments. A 
member may exclude new investments from any or 
all sources. It may continue discriminatory meas- 
ures already in effect. But in adopting future 
measures, it must treat one member as well as it 
treats another and foreign investors as well as it 
treats its own. It must not so change its rules as to 
discriminate against any investment once the in- 
vestment has been made. If a member requires a 
transfer of ownership from foreign nationals to its 
own nationals, it must provide for the payment of 
just consideration. If it takes into public owner- 
ship the property of a foreign national, it must 
make just compensation. More definite provisions 
on the adequacy, promptness, and transferability 
of payment should be included in the future in- 
vestment code. The present draft is to be regarded 
not as the final expression of international agree- 
ment on the treatment of private investment but as 

a foundation on which such agreement can be built. 

12. Structure of the ITO. The Ito will have, as 
the basis of its organization, a conference of mem- 
ber states. Continuing administration of its af- 
fairs will be in the hands of an executive board of 
15 to 18 members, a director general, and a staff. 
Certain functions will be delegated to a tariff com- 
mittee, composed of member states who have al- 
ready carried out negotiations for the reduction of 
barriers to trade, and to a small number of special- 
ized commissions composed of technical experts. 
In financing the operation of the agency, no mem- 
ber can be required to contribute more than a third 
of the total cost. 

The method of voting in the conference remains 
to be determined. The present draft of the charter 
presents four alternatives: unit voting, light- 
weighted voting, heavy- weigh ted voting, and a 
compromise proposal under which decisions on cer- 
tain issues would require majorities in both a unit 

Department of State Bulletin 






vote and a weighted vote. The composition of the 
execiit i ve board is likewise unsettled. But any one 
of the alternatives presented in the present draft 
would assure a permanent seat to the United 
States. 

13. Ftmctions of the ITO. It will be the func- 
tion of the Ito, through consultation among its 
members, to carry out the substantive provisions 
of the charter. In addition to this the agency will 
serve as an international center for information on 
matters affecting trade and as a source of advice 
and assistance to member governments. It will 
midertake to improve trade statistics. It will col- 
lect, analyze and publish data on exports, imports, 
balances of payments, prices, subsidies, customs 
regulations, and national commercial policies; on 
treaties and other agreements affecting trade; on 
conventions, laws, and procedures relating to re- 
strictive business practices; on commodity prob- 
lems and the operation of commodity agreements. 
It will develop and recommend standards for the 
grading of commodities, for commercial terms, for 
documentation, for tariff valuation, and for the 
simplification of procedures that act as obstacles to 
trade. It may draft modern international conven- 
tions and standard provisions for commercial trea- 
ties and recommend the conclusion of new 
agreements or the modification or termination of 
old agreements on commercial policy, restrictive 
business practices, commodities, economic develop- 
ment, and international investment. 

14. Disputes and Enforcement. The Executive 
Board of the Ito will interpret the provisions of 
the charter, handing down rulings in the case of 
a dispute or, with the consent of the parties con- 
cerned, referring it to arbitration upon such terms 
as may be agreed. Members may appeal the 
rulings of the board to the conference and, on legal 
questions, may require the conference to request 
an advisory opinion from the International Court 
of Justice. 

If the ITO determines, upon complaint, that a 
member has not lived up to its obligations under 
the charter, it may release the complaining mem- 
ber or members from corresponding obligations so 
that the balance of interest between the parties 
to the dispute may be restored. The offending 
member may thus be faced with higher tariffs, 
quotas, or other restrictions on its trade. This 
prospective loss of benefits should serve as a pow- 
erful deterrent to noncompliance. But the Ito 



THE RECORD Of THE WEEK 

will have the power to place such limits on retalia- 
tion that it cannot degenerate into economic war. 
15. Relations with Nonmembers. The rules 
that are to govern the relations between members 
and nonmembers of the Ito are still to be deter- 
mined. The present draft contains three alterna- 
tives. The first of these permits a member having 
heavy trade with nonmembers to suspend the ap- 
plication of any provision of the charter, requires 
it thereupon to afford other members an oppor- 
tunity for consultation, and permits it, in the 
absence of agi-eement, to withdraw from the Or- 
ganization. The other two alternatives forbid 
members to extend to nonmembers the benefits 
provided under the charter, unless specifically per- 
mitted to do so by the Ito. It is the purpose of 
.the latter provisions to make membership attrac- 
tive and nonmembership unattractive by confining 
the benefits of the charter to countries that are 
willing to accept it% obligations. 

II 

The essential character of the charter is per- 
fectly clear. It does not set up a supra-national 
agency. The Ito would have no powers — legis- 
lative, executive, or judicial — that would impinge 
upon the sovereignty of member states. The char- 
ter, like any other international agreements, con- 
tains commitments that limit the freedom of action 
of the signatory powers. But these commitments 
are limited. And they are assumed voluntarily. 
No nation need enter the Ito unless it believes 
that it would be to its advantage to do so. And 
no nation can be compelled to remain within the 
Oi-ganization if it feels that its interests would 
not be served. 

The charter does not provide for global eco- 
nomic planning. It does not give the ITO any 
power whatsoever to determine what any country 
shall produce, or how much, or what it shall export, 
or how much, or to whom, or what it shall import, 
or how much, or from whom. Its whole purpose 
is not to multiply restrictions, but to minimize 
them ; not to increase controls, but to reduce them. 
Instead of regimenting world trade, it seeks, 
through international agreement, to liberate trade 
from the forms of regimentation imposed on it 
by national governments. 

Four criticisms of the charter were analyzed by 
Will Clayton, then Under Secretary of State for 



November 2, 7947 



885 



THE ItECORO OF THE WECK 

Economic Affairs, in a broadcast from Paris on 
September 10: 

"First, it is said that the charter is idealistic. 
In one sense this is true. In another sense it is 
not. The charter is idealistic in that it establishes 
objectives toward which all countries can agree to 
work. It draws on the experience of the past, but 
it does not direct itself to the problems of the past. 
It sets up goals for the future, but it does not limit 
itself to provisions that can only work in normal 
times. It is concerned with the actual problems 
of the work-a-day world, and in this sense its 
idealism is tempered with a realism that is clearly 
practical. 

"Second, it is said that the charter contains a 
great many exceptions, and this is true. But these 
exceptions are carefully defined. Many of them 
are temporary ; all of them are limited in extent ; 
and no nation will be able to use any of them 
unless it satisfies the conditions upon which all 
nations have agreed. If it were not for the ex- 
ceptions, the charter would not be practical, and 
it is because it is practical that it can be expected 
to work. 

"Third, it is said that the charter is a compro- 
mise. So it is, and so is almost every law that 
was ever passed by Congress or by the legislature 
of any state. So is every treaty between any two 
powers. So are the Charter of the United Na- 
tions and the constitutions of every international 
agency that has been established since the war. 
Compromise is a virtue, not a defect. It means 
that the charter will not be imposed by force, that 
it will not be rejected because it is one-sided but 
that it can be voluntarily accepted because it mepts 
the needs of every country in the world. 

"And finally, it is said that the charter is long 
and complicated, and this is true. It contains nine 
chapters, one hundred articles, and several thou- 
sand words. It is probably shorter than some acts 
of Congress ; it is certainly simpler than the incpme 
tax law; but it is still long and complicated. It 
is complicated because the laws and regulations 
that govern international trade are complicated. 
It is complicated because it is realistic and prac- 
tical, but the multitude of technical detail in the 
document serves only to emphasize the solid basis 
of agreement that has been achieved." 

It is true, of course, that many of the nations 
that were stricken by the war have not yet recov- 



ered sufficiently to participate on equal terms in a 
world economy. It must be recognized, too, that 
the charter, in itself, cannot assure their recovery. 
Other measures are required, during the coming 
months of reconstruction, to rectify the funda- 
mental imbalance that now exists in the world's 
trade. But it does not follow that the problem of 
long-run policy can safely be postponed until a 
happier day. If the nations of Europe are now to 
embark on an ambitious recovery program with 
extensive aid from the United States, we must all 
know where we are headed, and why. We must 
direct our efforts toward expansion in the produc- 
tion, distribution, and consumption of goods 
throughout the world. And, if these efforts are to 
succeed, we must obtain agreement, now, upon 
long-run policies that will reduce existing barriers 
to trade. 

In this matter of international trade policy there 
are now two alternatives — and only two — before 
the world. The one is a situation in which every 
country, acting in its own interest and without 
regard for the interests of others, will maintain 
and increasingly impose detailed administrative 
regulations on its foreign trade. The other is a 
situation in which all countries, acting in their 
common interest, under the charter of the Ito, will 
voluntarily agree to keep such detailed regulations 
within narrow bounds. We might wish that eco- 
nomic and political relationships were not so com- 
plicated, that an easier solution to our problems 
were at hand. But if we are realistic we must 
recognize that this is the only choice we have. 
And since this is true it should not be a difficult 
choice for us to make. 

Letters of Credence 

Hungary 

The newly appointed Minister of Hungary, 
Rustem Vambery, presented his credentials to the 
President on October 8, 1947. For texts of the 
Minister's remarks and the President's reply, see 
Dei^artment of State press release 806 of October 8. 

Pakistan 

The newly appointed Ambassador of Pakistan. 
M. A. H. Ispuhani, presented his credentials to the 
President on October 8, 1947. For texts of the 
Ambassador's remarks and the President's reply, 
see Department of State press release 807 of Octo- 
ber 8. 



886 



Department of State Bulletin 



Czechoslovakia Extends Deadline 
for Filing Tax Returns 

[Released to the press October 22] 

The Department of State has been informed 
by the American Embassy at Praha that the Oc- 
tober 31 deadline for filing returns in connection 
with the increase in property values and capital- 
levy tax has been extended to December 31, 1947. 

Official announcement of the extension of the 
deadline was made on October 13 by the Czecho- 
slovak Ministry of Finance. The increase in 
property values and capital-levy tax was con- 
tained in Czechoslovak law no. 134 of May 15, 
1946. 

Information available to the Department of 
State regarding other aspects of the law is con- 
tained in the Department's announcement of 
November 8, 1946.^ The Department invites the 
attention of interested United States citizens to 
the possibility that failure to file tax returns 
might, among other things, be interpreted by the 
Czechoslovak Government as abandonment of 
claims against the Czechoslovak Government for 
compensation in certain property cases. 

Maxwell M. Hamilton To Advise on Japanese 
Treaty Negotiations 

Statement hy Acting Secretary Lovett 

[Released to the press October 22] 
Mr. Maxwell M. Hamilton, American Minister 
to Finland, has been ordered to the Department 
for consultation in comiection with prospective 
Japanese treaty negotiations. Mr. Hamilton is 
broadly experienced in Far Eastern affairs. He 
served at Far Eastern posts from 1920 to 1927. 
From 1927 to 1943 he served in the Department of 
State in the Division of Far Eastern Affairs, being 
Chief of the Division from 1937 to 1943. In 1943 
he was assigned as Minister-Counselor of the 
American Embassy in Moscow. He was appointed 
United States Representative to Finland in De- 
cember 1944 and became Minister to Finland fol- 
lowing resumption of formal American-Finnish 
diplomatic relations at the end of August 1945. 
It is expected that Mr. Hamilton will, when 
negotiations for a Japanese peace treaty are under- 
taken, serve as the Deputy of the Secretary of 
State in these negotiations. 



THE RECORD OF XHB WEEK 

Report by General Wedemeyer 
Held Confidential 

[Released to the press October 20] 

It is being urged that the report made by Gen- 
eral Wedemeyer on his return from the Far East 
in September be made public. The President in 
July sent General Wedemeyer to China and Korea 
as his personal repi-esentative to survey the situa- 
tions in those countries. General Wedemeyer com- 
pleted his mission in September, returned to this 
country, and submitted a confidential report of his 
findings to the President and Secretary of State. 
Much of the information in this report was ob- 
tained in confidence from high officials of the 
Chinese Government as well as from private in- 
dividuals and our representatives in China and 
Korea. It therefore would be inadvisable, actu- 
ally harmful, to the interests of the countries con- 
cerned, including the United States, to publicize 
such a document at this time. 



India Announces Decontrol of Pepper Export 

[Released to the press October 22] 

The Departments of State and Agriculture an- 
nounced on October 22 that they have received 
the following cable from the American Embassy 
at New Delhi : 

"The Govei-nment of India announced decontrol 
of pepper export, effective October 18, 1947." 

The United States imported 35 million pounds 
of pepper in 1946, including 10 million pounds 
from India. 



PUBLICATIONS 



Department of State 



For sale by the Superintendent of Documents, Oovern- 
ment Printing Office, ^yashington 25, D.C. Address re- 
quests direct to the Superintendent of Documents, ex- 
cept in the case of free publications, which mcuy be 
obtained from the Department of State. 

The Greek Aid Program. Near Eastern Series 10. Pub. 

2939, ii, 25 pp. 100. 

A discussion of the objectives of tlie American mis- 
sion In Greece and tlie execution of tlie program. 
Appendixes contain tlie exclianges of notes and the 
agreement between the two Governments. 



'Bulletin of Nov. 17, 1946, p. 915. For a discussion 
of the nationalization program in Czechoslovaliia see 
BuLLKTiN of Dee. 8, 1946, p. 1027. 



November 2, 1947 



887 



Foreign Aid and Reconstruction Page 

Special Session of Congress Called To Meet 
Crisis in Western Europe: 

Statement by the President 852 

Proclamation 2751 852 

"A Period of Crisis Is Now At Hand". By 

the President 853 

The Problem of the Reconstruction of Europe. 

Remarks by the Secretary of State . . . 856 
European Recovery — A Project for America. 

By Assistant Secretary Thorp 857 

America's Stake in Europe. By Assistant 

Secretary Armour . 863 

World Trade and European Recovery — Pros- 
pects and Problems 866 

The United Nations and 
Specialized Agencies 

U.S. Holds Korean Independence a U.N. 
Problem. Exchange of Notes Between 
the Acting Secretary of State and the 
Soviet Minister for Foreign Affairs . . . 867 
U.N. Documents: A Selected Bibliography . . 868 
U.S. Rejects Resolutions Limiting Free Flow of 
Information: 
Remarks by the U.S. Representative at the 

Seat of the U.N 869 

Statement by the U.S. Representative to the 

General Assembly 874 



The Congress Page 

Eightieth Congress, First Session, and the 

U.N.: Part II. Article by Sheldon Z. 

Kaplan 843 

Economic Affairs 

The Geneva Charter for World Trade. By 

Clair Wilcox 881 

Czechoslovakia Extends Deadline for Filing 

Tax Returns 887 

India Announces Decontrol of Pepper Export . 887 

General Policy 

Letters of Credence: 

Hungary; Pakistan 886 

Report by General Wedemeyer Held Confi- 
dential 887 

Treaty Information 

Maxwell M. Hamilton To Advise on Japanese 
Treaty Negotiations. Statement by Act- 
ing Secretary Lovett 887 



Calendar of International Meetings 

Publications 

Department of State 



878 



887 



myyvtymcdo^ 



Sheldon Z. Kaplan, author of the article on the First Session of the 
Eightieth Congress and the United Nations, is Assistant to the Legal 
Adviser, Department of State. 



U. S. GOVERNMENT PRrNTlNG OFFICE: 1947 



^ri€/ ^eha^tmeni/ ^ t/taie/ 





GOVERNMENT POLICY AND INTERNATIONAL 

TRADE • Address by Assistant Secretary Thorp . . . 903 

RELIEF ASSISTANCE PROVIDED FOR CHINA : Text 

of Agreement 913 

INTERNATIONAL CONFERENCE ARTICLES: 

Hylean Amazon Institute 891 

Caribbean Regional Communications Committee • 893 

Congress of Administrative Sciences 894 



For complete contents see back cover 



Vol. XVII, No. 436 
November 9, 1947 




ates 



U.S. .- 



j^uu ti>JL iiHi 




•«T«. 0« 



*.*,_,wy^.. bulletin 



Vol. XVII, No. 436 • Pubucation 2968 
November 9, 1947 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 25, D.C. 

subscription: 
62 issues, $5.00, 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 Department 
or State Bcu-etin 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 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 imrious 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, as 
well as legislative material in the field 
of international relations, are listed 
currently. 



INTERNATIONAL COMIVIISSION FOR THE ESTABLISHMENT OF AN 
INTERNATIONAL HYLEAN AMAZON INSTITUTE 



By Remington Kellogg 



The International Commission for the Estab- 
lishment of the International Hylean Amazon In- 
stitute was convened at Belem (Para), Brazil, on 
August 12, 1947, under the chairmanship of Fred 
L. Soper, Director of the Pan American Sanitary 
Bureau. Luiz Alayza Paz y Soldan, former Min- 
ister of Justice and Labor of Peru, was elected 
Vice Chairman. E. J. H. Corner, Chief of 
Unesco's Hylean Amazon Project and Principal 
Field Scientific Officer for Unesco in Latin Amer- 
ica, served as Secretary General. Dr. Corner was 
assisted by Basile Malamos, Field Scientific Offi- 
cer, Unesco. Paulo de Perredo Carneiro, pro- 
fessor of chemistry, Polytechnic School, Rio de 
Janeiro, and permanent representative of Brazil 
to Unesco, was elected Rapporteur General for 
the Commission. 

At the General Conference of Unesco in 1946 
approval was given to the Brazilian proposal that 
an International Scientific Commission be set up 
in consultation with Brazil, Colombia, Ecuador, 
France, the Netherlands, Peru, Venezuela, the 
United Kingdom, and the United States to in- 
vestigate on the spot all aspects of the question of 
the establishment of an International Hylean 
Amazon Institute, including both immediate and 
long-term plans, financial matters, and the formu- 
lation of a draft agreement between the cooperat- 
ing governments and Unesco. The second session 
of the Executive Board of Unesco, which met in 



Paris in April 1947, resolved that the Institute 
should be organized as a multisection project to 
cover all fields of Unesco's activities and raised 
the creation of the Hylean Amazon Institute to 
the position of fourth general project for the year 
1947. 

The countries represented by official delegates 
were as follows: Brazil, Colombia, Ecuador, 
France, Peru, the United Kingdom, the United 
States, and Venezuela. An observer from Bolivia 
attended all the sessions. Seven international or- 
ganizations, including the Inter- American Insti- 
tute of Tropical Agriculture, Pan American Sani- 
tary Bureau, Pan American Union, Unesco, Food 
and Agriculture Organization, and World Health 
Organization were represented by delegates. The 
Economic and Social Council of the United 
Nations, however, did not send a delegate. H. 
Floch, the Delegate from French Guiana, and 
Dr. Heesterman, the Delegate from the Nether- 
lands, were unable to attend. The United States 
was represented by Remington Kellogg, Delegate, 
and Bassett Maguire, Alternate Delegate. 

The Commission recognized that sustained de- 
velopment of the Hylean Amazon is impossible 
without accurate knowledge of the conditions and 
competent technical personnel working on the spot 
to apply this knowledge to the varied problems 
that have so far retarded economic progress in 
the region. Since the Hylean Amazon is one of 



Novemb&r 9, 1947 



891 



the largest undeveloped areas in the world and 
extends over portions of six South American re- 
publics as well as the Guianas, it was hoped that 
some practical means could be found to promote 
research, to organize surveys, and to provide fa- 
cilities for international cooperation. To provide 
this necessary coordination, the Commission rec- 
ommended the establishment of an International 
Hylean Amazon Institute. It was considered de- 
sirable that studies in the natural sciences should 
be coupled with studies in the social sciences to 
contribute materially to the knowledge of human 
ecology, human welfare, and economic progress 
in the region. Consequently, the activities of the 
Institute should be directed toward problems of 
agriculture, forestry, fisheries, nutrition, educa- 
tion, utilization of natural products, and general 
economy. The practical implementation of proj- 
ects recommended by the Institute should be the 
responsibility of the respective governments. 

As regards organization the Commission rec- 
ommended that the International Hylean Amazon 
Institute should be under the direction of a Coun- 
cil composed of (a) a representative from each 
of the following countries — Bolivia, Brazil, Co- 
lombia, Ecuador, France, Netherlands, Peru, 
United Kingdom, United States, and Vene- 
zuela; (h) a representative from each of the fol- 
lowing international organizations — the United 
Nations, Unesco, Food and Agriculture Organi- 
zation, World Health Organization, Intei'national 
Labor Office, Pan American Union, and Pan 
American Sanitary Bureau; and (c) such techni- 
cal advisers as may be necessary for the work of 
each representative. 

This Council should meet at least once every 
year and have the power of nominating an execu- 
tive committee and any other committees to carry 
out such of its duties as it might consider advis- 
able. The nomination of members of the Council 
should be made to Unesco by governments and 
international organizations. To assure continuity 
in its activities and to facilitate the studies 
of associate investigators who might come for 
varying periods of time, the International Hylean 
Amazon Institute should have a small permanent 
staff. 

It was stipulated that the International Hylean 
Amazon Institute should function chiefly as a pro- 
moter of investigations in the natural sciences; 



the social sciences, including anthropology and 
education; nutrition; and the medical sciences; 
and that such studies should be carried out so far 
as practicable in collaboration with existing 
scientific organizations and institutions, both na- 
tional and international. 

The Commission expressed itself as favoring 
a meeting of the Council of the International Hy- 
lean Amazon Institute in 1948 to appoint the 
Executive Conunittee and a survey staff which 
should consist of at least five experts to cover 
the requirements of physical geography (includ- 
ing soil science), biology, social sciences, agri- 
culture, and nutrition and which shoul4 continue 
the planning and initial investigations for (a) 
the establishment of headquarters for the Insti- 
tute; (&) the programs for short- and long-term 
studies; (c) the requirements for maintenance 
and operation of the Institute; as well as (d) a 
financial forecast for the five years 1949-54. A 
tentative estimate amounting to $100,000 for this 
preliminary survey was approved. 

The Commission recommended that the work- 
ing centers of the International Hylean Amazon 
Institute should be distributed so far as practi- 
cable among the cooperating Amazonian countries 
and that assistance should be sought, as the occa- 
sion arises, to carry out and coordinate these plans. 
Among the centers given consideration are (a) 
the Museo Amazonense at Iquitos, Peru; (b) the 
Centro de Estudios Indigenistas at Porto Asis, 
Colombia; (c) the Pasteur Institute at Cayenne, 
French Guiana; (d) the forest reserve at Manaus, 
Brazil; (e) Cuiaba, Brazil; (/) the Federal In- 
stituto Agronomico do Norte and the Museo Para- 
ense Emilio Goeldi at Belem. Brazil has offered 
the collaboration of the Conselho de Geogi-afia e !' 
Estatistica do Brasil and the Servigo de Protegao 
aos Indios do Brasil. 

In view of the complexities of the situation, 
no action was taken with reference to financial ar- 
rangements for the establishment of the Interna- 
tional Hylean Amazon Institute. The Secretary 
General, Dr. Corner, was instructed to convey the 
findings of the Commission to the Second General 
Conference of Unesco. The legal section of 
Unesco has been requested to draft a form of 
agreement between Unesco and the countries and 
international organizations cooperating in the 
establishment of the International Hylean Ama- 
zon Institute. 



892 



Department of Stale BuUetin 



Second iVIeeting of the Caribbean Regional Communications Committee 
of the International Civil Aviation Organization 



MEXICO CITY, AUGUST 18^29, 1947 



The second meeting ^ of the Caribbean Regional 
Communications Committee of the International 
Civil Aviation Organization (Icao) was convened 
at ISIexico City on August 18, 1947, to report on 
the progress of implementation of the recom- 
mendations of the Caribbean Regional Air Navi- 
gation Meeting (Washington, 1946) and to plan 
for further implementation. 

The following Icao member states, observere, 
and international organizations participated in 
the meeting: Argentina, Brazil, Canada, the Do- 
minican Republic, Guatemala, Mexico, the Nether- 
lands, the United Kingdom, the United States, 
Cuba, Panama, the International Air Transport 
Association, and the International Civil Aviation 
Organization. 

The United States Delegation of aeronautical 
communications experts from government and in- 
dustry was under the chairmanship of P. DeFor- 
rest McKeel of the Civil Aeronautics Administra- 
tion and included Edwin L. White, Federal Com- 
munications Commission ; Delos W. Rentzel, Aero- 
nautical Radio, Inc. ; H. S. Stokes and Harland E. 
Hall, Civil Aeronautics Administration; Lt. 
Cmdr. Benjamin F. Engel, U.S. Coast Guard; 
Virgil L. Clapp, U.S. Army Air Forces; and 
Arnold P. Eliot, Weather Bureau; with observers 
Maj. G. R. Charlton, U.S. Army Air Forces (Canal 
Zone) ; C. D. Ridgeway, Civil Aeronautics Ad- 
ministration; and E. T. Fridrich and Walter 
Weaver, Aeronautical Radio, Inc. 

The agenda of the meeting was limited in scope 
to the immediate problem of providing for the 
Caribbean area an integrated communications 
system for use as and when required under uniform 
conditions and on an equitable and nondiscrimina- 
tory basis. 

November 9, 1947 



Agustin Garcia Lopez, Minister of Communica- 
tions and Public Works of Mexico, was elected 
chairman of the meeting, and Group Capt. C. J. 
Campbell of Canada was elected vice chairman. 
The technical work of the meeting was handled in 
two subcommittees: (1) Facilities, with Lt. Col. 
Yurrita (Guatemala) as chairman and Edwin L. 
White (U.S.) as vice chairman; and (2) Proce- 
dures, with P. DeForrest McKeel (U.S.) as chair- 
man and J. H. Olmedo (Mexico) as vice chair- 
man. 

A friendly spirit of cooperation prevailed 
throughout the meeting. It was evident that all 
delegations were intent upon arriving at an in- 
tegrated communications system for the Carib- 
bean region. It was recognized that the complete 
plan as recommended by the 1946 Caribbean Re- 
gional Air Navigation Meeting could not be real- 
ized at the present time, but a working system was 
the immediate goal. By January 1, 1948, the 
ultimate plan for the fixed communications system 
will be more nearly implemented in the western 
part of the Caribbean region than in the eastern 
part. This is largely due to more complete im- 
plementation by the United States Government 
and United States flag carriers through their as- 
sociated companies of Aeronautical Radio. It 
will be necessary to continue the operation of a 
more or less heterogeneous group of fixed service 
facilities in the eastern Caribbean region to supply 
point-to-point communications until the ultimate 
plan can be realized. 



' The first meeting of the Caribbean Regional Communi- 
cations Committee was held in connection with the Carib- 
bean Regional Air Navigation Meeting of the Provisional 
International Civil Aviation Organization, which met at 
Washington, Aug. 26-Sept. 12, 1946. 

893 



The basic air-ground communications system 
will be radiotelephone in accordance with the rec- 
ommendations of the 1946 Caribbean Regional Air 
Navigation Meeting. The target date for imple- 
mentation of this plan is January 1, 1948. For 
aircraft not equipped for radiotelephone commu- 
nication a limited system of radiotelegraph facil- 
ities has been provided. In addition to the fre- 
quencies available for use in the Caribbean region 
by groups of frequencies on a route basis normally 
used by, but not limited to, scheduled air carriers, 
a six-megacycle frequency is to be provided for 
use by private, itinerant, and nonscheduled air- 
craft. 



The world-wide communications-procedures 
codes and abbreviations developed by the Second 
Session of the Icao Communications Division 
(Montreal, 1946) and the regional supplementary 
communications procedures developed at this 
meeting will be implemented in the Caribbean re- 
gion on January 1, 1948, concurrently with similar 
implementation in the South American and South 
Atlantic regions. 

Radio Station WEK at New Orleans was desig- 
nated as the broadcasting station for aeronautical 
meteorological data for the Caribbean region, with 
area collection centers at Mexico City; Balboa, 
Canal Zone; and San Juan, Puerto Rico. 



Seventh International Congress of Administrative Sciences 

BERN, SWITZERLAND, JULY 22-30, 1947 



The Seventh International Congress of Admin- 
istrative Sciences was held at Bern, Switzerland, 
July 22-30, 1947, at the call of the Swiss Govern- 
ment. The last Congress was held at Warsaw, 
July 9-16, 1936. The meetings scheduled for Ber- 
lin during 1939 were prevented by the war. 

The seven congresses have been sponsored by 
the International Institute of Administrative 
Sciences, an intergovernmental organization estab- 
lished in 1906 to make studies, exchange informa- 
tion, and provide consultation services in the field 
of public administration. The work of the Insti- 
tute was severely interrupted during the war in as 
much as its offices and files at Brussels were con- 
fiscated by the Nazis. The Institute is now under- 
going reorganization aimed at equipping it to 
meet the needs of the postwar era. At i^resent 18 
or 19 governments are members. 

Provision is made for accredited persons from 
countries which are not members of the Institute 
to participate both as individuals and through 
what ai-e called national sections. No convention 
has been enacted which enables the United States 
to affiliate officially, but there has been for many 
years an active American section of the Institute. 
This section is headed at present by Leonard D. 
White, professor of public administration at the 
University of Chicago. 

The secretary general of the Seventh Interna- 

894 



tional Congress of Administrative Sciences re- 
ported that 750 individuals were registered, repre- 
senting the following 50 governments : Afghanis- 
tan, Argentina, Austria, Belgium, Bolivia, Brazil, 
Bulgaria, Canada, Chile, China, Colombia, Cuba, 
Czechoslovakia, Denmark, Dominican Republic, 
Ecuador, Egypt, Finland, France, Greece, Hun- 
gary, India, Iran, Iraq, Ireland, Italy, Lebanon, 
Liechtenstein, Luxembourg, Monaco, Netherlands, 
Nicaragua, Norway, Panama, Peru, Poland, Por- 
tugal, Rumania, Siam, Spain, Sweden, Switzer- 
land, Syria, Tunisia, Turkey, Union of South 
Africa, United Kingdom, United States, Vatican 
City, and Yugoslavia. The United Nations, Inter- 
national Labor Ofllce, United Nations Educational, 
Scientific and Cultural Organization, TUnion 
Internationale des Villes, and le Comite Interna- 
tional de I'Organisation Scientifique were also 
represented. With certain exceptions, such as 
former enemy countries and Spain, invitations 
were sent to all governments to particijiate in the 
Congress. European members of the Institute 
provided the largest and strongest delegations, 
e.g., Belgium, Czechoslovakia, France, Nether- 
lands, Poland, the Scandinavian countries, and 
Switzerland. 

The delegations generally comprised persons 
drawn from a wide variety of administrative posi- 
tions in their respective governments, with a good 

Department of State Bulletin 



sprinkling of representatives of provincial and 
local governments, universities, and organizations 
of public officials. A number of countries, partic- 
ularly those of Latin America, were represented by 
diplomatic officers in the area. The United States 
Delegation, appointed by the Secretary of State 
■with the approval of the President, consisted of the 
following members : 

Donald C. Stone, Chairman, Assistant Director, Bureau of 
the Budget, Esecutive Office of the President 

James V. Bennett, Director, Federal Bureau of Prisons, 
Department of Justice 

Mrs. Esther Bromley, Commissioner, New York City Civil 
Service Commission 

Rowland Egger, Bureau of Public Administration, Univer- 
sity of Virginia 

Herbert Emmerich, Executive Director, Public Adminis- 
tration Clearing House 

Charles Hulten," Deputy Assistant Secretary of State for 
Administration 

Edward A. Litchfield, Chief, Civil Affairs Division, Office 
of Military Government for Germany 

Lt. Col. John D. Millett, Columbia University (temporarily 
on military assignment in Germany) 

Simon MlUner, Consultant, Office of International Trade, 
Department of Commerce 

James B. Mitchell, Director, Civil Service Assembly of the 
United States and Canada 

In addition 21 officials of the United States sta- 
tioned in Germany attended the Congress. 

Prior to the opening of the Congress itself, the 
officials of the Congress were elected at a meet- 
ing of the International Institute of Administra- 
tive Sciences. M. Deveze, Minister of State of Bel- 
gium and president of the Institute, served ex 
o^cio as president of the Congress, and the secre- 
tary general of the Institute, Edmond Lescir, 
served in that capacity. Donald C. Stone, chair- 
man of the United States Delegation, was elected 
a vice president. Other vice presidents were 
drawn from Czechoslovakia, France, the Nether- 
lands, Poland, et cetera. 

The opening preliminary session, held in Par- 
liament House, provided an opportunity for the 
review of developments since the last Congress, for 
the welcoming by the Swiss Government and re- 
sponses, for an outline of program and hoped-for 
accomplishments of the Congress, and for expres- 
sions of interest by representatives of national 
delegations and of other international organiza- 
tions. At this meeting Mr. Emmerich, who had 
been designated by Unesco as its representative at 
the Congress, described the common interests of 



Unesco and the Institute and the hope of Unesoo 
for close working relationships. Mr. Stone, speak- 
ing on behalf of the delegations generally, ex- 
pressed appreciation to the Swiss Government for 
convening the Congress and pointed out how it 
could contribute to governments in dealing with 
certain urgent problems, namely : (a) administra- 
tion of postwar reconstruction programs; (&) the 
need for equipping governments, national and 
local, with the administrative skill necessary to 
translate public policy into effective action; (c) 
the organization of governments to deal effectively 
through the U.N. and other international bodies 
and to carry out international agreements; 
and (d) the necessity of greater administrative 
talent in the U.N. and the specialized agencies. 
Other speakers were Mr. Etter, President of the 
Swiss Confederation; Mr. Wey, President of the 
Swiss National Council; Mr. Jaroszynski of Po- 
land; and Oscar Leimgruber, Chancellor of 
the Swiss Confederation and president of the Or- 
ganizing Committee of the Congress. 

On successive days the Congress discussed the 
four general subjects described below. Represent- 
atives of various countries had been asked to 
prepare papers on each of these subjects based upon 
experience within their countries. These were 
circulated among delegates to the Congress. At 
each meeting a general rapporteur presented a 
summary of the reports as a preliminary to gen- 
eral discussion of the subjects. 

(a) The postwar tasks incumbent on the state 
and their administration in the light of the experi- 
ences of World War II. The chairman of this ses- 
sion was Kene Cassin, Vice President of the Conseil 
d'fitat of France. The summary report, based on 
contributions from the different countries, was 
presented by Oscar Leimgruber, Chancellor of the 
Swiss Confederation. The American contribution 
on this subject was made by Herbert Emmerich, 
Executive Director of the Public Administration 
Clearing House. 

{h) The head of the government and the or- 
ganisation of his department. The chairman of 
this session was Henri Puget of the Conseil 
d'fitat of France. The general rapporteur was 
Prof. L. Moureau of the University of Liege, Bel- 
gium. The American contribution on this subject 



" Mr. Hulten was unable to attend. 



November 9, 1947 



895 



was by Fritz Morstein Marx, Bureau of the 
Budget, Executive Office of the President. 

(c) The participation of employees in the man- 
agement of the central^ regional^ and local admin- 
istration. The chairman of this session was Mr. 
Stone of the United States Delegation. The re- 
porter was Albert Day, chairman of the staff of 
the National Whitley Council, Great Britain. The 
American contribution on this subject was by 
James B. Mitchell, Director of the Civil Service 
Assembly of the United States and Canada. 

{d) The position of the regional and local au- 
thorities in their relations to the central authori- 
ties. The chairman of this session was G. A. van 
Poelje, Counselor of State, the Netherlands. The 
rapporteur was Henri Puget, Conseil d'Etat of 
France. The American contribution on this sub- 
ject was by Rowland Egger of the University of 
Virginia. 

At the closing session of the Congress, atten- 
tion was focused primarily on the future activities 
of the International Institute of Administrative 
Sciences and the steps to be taken as a result of 
the deliberations of the Congress to further inter- 
change of information and experience in the field 
of governmental administration — national, state, 
local, and international. In addition to remarks 
by representatives of the Swiss Government, ad- 
dresses were made by : 

Henri Puget, Conseil d'etat of France 

Gherbal abd el Latif, Undersecretary of State and Minister 

of Justice of Egypt 
Mr. Dendiee of the University of Athens 
Emil Vinck, Secretary General of I'Union Internationale 

des Villes 
Mr. Liinpert, representing le Comity International de 

rOrganlsation Scientifique 
M. Deveze, retiring President of the Institute 
Oscar Leimgruber, newly elected President 

In the concluding talk Mr. Stone pf the United 
States Delegation pointed out that not only must 
govermnents be made more competent technically 
but that the participants in the Institute and the 
Congress should help establish higher levels of 
integrity, tolerance, and moral purpose in gov- 
ernment and increase the spirit as well as the proc- 
esses of democracy. 

There was great interest in administrative de- 
velopments in the United States, and it was ap- 
parent that measures taken to improve the struc- 
ture of the Federal Government and its internal 



management were being followed closely in many 
other places. 

The committee work of the Congress was re- 
stricted almost entirely to the deliberations of the 
Resolutions Committee. Herbert Emmerich of 
the United States Delegation served as a member 
of the Committee and participated actively in dis- 
cussion and in the drafting of the resolutions. 
The United States Delegation was opposed to the 
adoption of resolutions dealing with substantive 
issues under discussion, believing that the main 
value of the Congress was the exchange of ideas 
on these subjects. However, most of the delegates 
wished to have some official expression resulting 
from the Congress. The resolutions which were 
presented and accepted were never formally voted 
upon. 

Perhaps the most significant accomplishment at 
the Congress was the completion of arrangements 
for the conduct by the International Institute 
jointly with I'Union Internationale des Villes and 
the International Federation of Housing and 
Town Planning of a project designed to lay out a 
plan for the interchange of governmental officials 
of different countries in order to provide them 
periods for observation of new administrative 
practices and for exchange of experience and views 
with other officials. Rowland Egger, a member 
of the United States Delegation, had been retained 
by Unesco prior to the Congress to develop a 
contract under which the "Common Services" of 
the three organizations listed above (whose head- 
quarters are at Brussels) would make the prelimi- 
nary surveys. Through the good offices of the 
United States Delegation, agreement was reached 
regarding the plan to be carried out. Arrange- 
ments were made for Louis Camu, who served as 
chairman of the Royal Commission on Reorgani- 
zation of the Belgian Government after the war, 
to undertake the project. Supplementary negotia- 
tions resulted in the Belgian Budget Ministry's 
making Andre Molitor available to assist M. 
Camu. The proposed contract, readjusted in the 
light of suggestions made at Bern, has now been 
signed by all parties. 

Another accomplishment incidental to the Con- 
gress was the adoption by the International Insti- 
tute of Administrative Sciences of revised statutes. 
The principal amendments agreed to included : (a) 
extension of the objects of the Institute to include 



896 



Department of State Bulletin 



international administi-ation and of the member- 
ship to include officials of international organiza- 
tions; (b) increase in the membres titulaires for a 
single country to 35 ; (c) assignment of 10 votes to 
national sections at meetings of the General As- 
sembly and the designation of two delegates to cast 
the votes; {d) the reconstitution of the Bureau of 
the Institute to consist of the president, not over 
10 vice presidents, the secretary general, and the 
treasurer; (e) the holding of congresses every two 
years instead of three and the restriction to one 
term of the eligibility of the president for reelec- 
tion; (/) the assessment of income at the rate of 
140 Belgian francs per 100,000 inhabitants at value 
of the Belgian franc (approximately $0.04) on 
July 13, 1936 (assessments may be raised by the 
Bureau to 160 francs per 100,000 inhabitants; dues 
of collective members are 1,000 Belgian francs, of 
membres titulaires 100 Belgian francs, and of asso- 
ciated members 150 Belgian francs) ; and {g) 
modification of the statutes, subject to approval 
by the next General Assembly, in order to meet con- 



ditions imposed by nations in connection with 
ratification of an international convention. 

Oscar Leimgruber was elected president of the 
Institute for the 1947-49 term. The following 
vice presidents, who, with President Leimgruber 
and Secretary General Lescir, will constitute the 
Bureau, were elected : 

Abgentina : Rafael Bielsa, lawyer, Rosario de Santa F6 
Belgium : Georges Dor, University of Ll^ge 
Denmabk : Frants Hvass, Secretary General of the Min- 
istry of Foreign Affairs, Copenhagen 
Fkance : Rene Cassin, Vice President of the Conseil d'fitat, 

Paris (alternate, Henri Puget) 
Netheblands : Gerrit A. van Poelje, Counselor of State, 

The Hague 
Poland : Mauryey Jaroszynski, University of Warsaw 
Portugal : Marcelo Castano, University of Lisbon 
United States : Herbert Emmerich, Director of Public 
Administration Clearing House, Chicago 

There were two places left unfilled at the disposi- 
tion of the Bureau. 

No place having been agreed upon for the next 
Congress, the matter was left to the Bureau of the 
Institute. 



Current United Nations Documents: A Selected Bibliograpliy ' 



General Assembly 

Proposed Trusteeship Agreement for Nauru. Report of the 
Fourtli Committee. A/420, October 27, 1947. 5 pp. 
mimeo. 

Consideration of Proposed New Trusteeship Agreements, if 
Any : Question of South West Africa. Report of the 
Fourth Committee. A/422, October 27, 1947. 7 pp. 
mimeo. 

Trustee.ship Agreements for Non-Self-Governing Territor- 
ies. Report of the Fourtli Committee. A/423, October 
27, 1947. 2 pp. mimeo. 

Information from Non-Self-Governing Territories. Report 
of the Fourth Committee. A/424, October 27, 1947. 15 
pp. mimeo. 

Recommendations To Be Made To Ensure the Surrender 
of War Criminals, Traitors and Quislings to the States 
Where Their Crimes Were Committed. Report of the 
Sixth Committee. A/425, October 27, 1947. 3 pp. 
mimeo. 

Budgets of Specialized Agencies for 1948. Report of the 
Advisory Committee on Administrative and Budgetary 
Questions. A/426, October 27, 1947. 12 pp. mimeo. 

Agreement Between the United Nations and the United 
States of America Regarding the Headquarters of the 
United Nations. Report of the Sixth Committee. 
A/427, October 27, 1947. 18 pp. mimeo. 

Uovemher 9, 1947 

766140—47 2 



Chapter II of tlie Report of the Economic and Social 
Council (Document A/382). Report of the Second 
Committee. A/433, October 29, 1947. 11 pp. mimeo. 

Applications by Italy and Austria for Membership in the 
International Civil Aviation Organization. Report by 
the Second Committee. A/434, October 29, 1947. 2 pp. 
mimeo. 

Need for Greater Use by the United Nations and Its 
Organs of the International Court of Justice. Resolu- 
tion Drafted by the ad hoc Sub-Committee on the 
Basis of Australian Proposal. ( Document A/C.6/165. ) 
A/C.6/167, October 10, 1947. 1 p. mimeo. 

Security Council 

Series Symbols for Documents of the Security CouncU. 

S/INF/1/Rev.l, October 13, 1947. 5 pp. mimeo. 
Official Records. Second Year. No. 28, 121st Meeting, 

21 March 1947. 21 pp. printed. [200.] 
No. 34, 127th Meeting, 9 April 1947. 13 pp. printed. 

[150.] 



' Printed materials may be secured in the United States 
from the International Documents Service, Columbia Uni- 
versity Press, 2900 Broadway, New York City. Other ma- 
terials (mimeographed or processed documents) may be 
consulted at certain designated libraries in the United 
States. 

897 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



Freedom of Association 



ADOPTION OF RESOLUTION 



One of the items which has been brought to the 
attention of the General Assembly of the United 
Nations is the resolution adopted by the Thirtieth 
Session of the International Labor Conference on 
July 11, 1947, at Geneva, concerning freedom of 
association and pi-otection of the right to organize 
and to bargain collectively. Transmittal of this 
resolution to the General Assembly resulted from 
the decision of the Economic and Social Council 
on August 8, 1947. 

The statement of principles contained in this 
resolution takes on particular significance because 
of the affirmative support of the entire United 
States Delegation at the International Labor Con- 
ference, which included James David Zellerbach 
of the Crown-Zellerbach Corporation of San 



Francisco as employers' representative and the 
late Robert J. Watt of the American Federation 
of Labor as workers' representative, in addition 
to David A. Morse, then Assistant Secretary of 
Labor, and Elbert D. Thomas, Senator from Utah, 
who served as Government representatives. The 
resolution was drafted only after intense debate 
by members of the Government, employers', and 
workers' groups in the very representative com- 
mittee of which Mr. Morse, who is now Under 
Secretary of Labor, had been unanimously elected 
as chairman. 

However controversial the discussion had been, 
the committee's resolution obtained the unanimous 
approval of the Conference, which was attended 
by delegations from 48 of the 53 member states of 
the International Labor Organization. 



RESOLUTION CONCERNING FREEDOM OF ASSOCIATION AND PROTECTION 
OF THE RIGHT TO ORGANISE AND TO BARGAIN COLLECTIVELY 



Whereas the Preamble to the Constitution of 
the International Labour Organisation expressly 
declares "recognition of the principle of freedom 
of association" to be a means of improving condi- 
tions of labour and of establishing peace; and 

Whereas the Declaration of Philadelphia re- 
affirms that "freedom of expression and of associa- 
tion are essential to sustained progress" and re- 
cognises the solemn obligation of the International 
Labour Organization to further among the nations 
of the world programmes which will achieve, 
among other things : "the effective recognition of 
the right of collective bargaining, the co-operation 
of management and labour in the continuous im- 
provement of productive efficiency, and the collab- 
oration of workers and employers in the prepara- 
tion and application of social and economic 



measures" ; and 



Whereas it also affirms that the principles set 
forth in this Declaration are fully applicable to 
all peoples everywhere and that, while the manner 
of their application must be determined with due 
regard to the stage of social and economic develop- 
ment reached by each people, their progressive ap- 
plication to peoples who are still dependent, as 
well as to those who have already achieved self- 
government, is a matter of concern to the whole 
civilised world ; and 

Whereas standards of living, normal function- 
ing of national economy and social and economic 
stability depend to a considerable degree on a 
properly organised system of industrial relations 
founded on the recognition of freedom of associa- 
tion; and 

W11ERE.VS, moreover, in many countries, employ- 
ers' and workers' organisations have been associ- 



898 



Department of State Bulletin 



ated with the preparation and application of eco- 
nomic and social measures; and 

Whereas the International Labour Conference, 
the Regional Conferences of the American States 
Members of the International Labour Organisa- 
tion and the various Industrial Committees have, 
in numerous Resolutions, called the attention of 
the States Members of the International Labour 
Organisation to the need for establishing an ap- 
propriate system of industrial relations founded 
on the guarantee of the principle of freedom of 
association. 

The General Conference of the International 
Labour Organisation : 

Having been convened at Geneva by the Gov- 
erning Body of the International Labour Office, 
and having met in its Thirtieth Session on 19 June, 
1947 adopts this 11th day of July of the year one 
thousand nine hundred and forty-seven, the fol- 
lowing Resolution : 

I. Freedom of Association 

1. Employers and workers, without distinction 
whatsoever, should have the inviolable right to 
establish or join organisations of their own choos- 
ing without previous authorisation. 

2. Employers' and workers' organisations should 
have the right to draw up their constitutions and 
rules, to organise their administration and activi- 
ties and to formulate their programmes; there 
should be no interference on the part of the public 
authorities which would restrict this right or im- 
pede the organisations in the lawful exercise of 
this right. 

3. Employers' and workers' organisations 
should not be liable to be dissolved or have their 
activities suspended by administrative authority. 

4. Employers' and workers' organisations 
should have the right to establish federations and 
confederations as well as the right of affiliation 
with international organisations of employers and 
workers. 

5. The guarantees defined in paragraphs 1, 
2 and 3 herein with regard to the establishment, 
functioning, dissolution and suspension of em- 
ployers' and workers' organisations should ap- 
ply to federations and confederations of such 
organisations. 

6. The acquisition of legal personality by em- 
, ployers' and workers' organisations should not 

November 9, 1947 



THE UNITED NATIONS AND SPECIAUZBD AGENCIES 

be made subject to conditions of such a character 
as to restrict freedom of association as hereinbe- 
fore defined. 

7. The acquisition and exercise of the rights as 
outlined in this part should not exempt the em- 
ployers' and workers' organisations from their 
full share of responsibilities and obligations. 

II. Protection of tfie riglit to organise and 
to bargain collectively 

8. There should be agreement between organ- 
ised employers and workers mutually to respect 
the exercise of the right of association. 

9. (1) Where full and effective protection is 
not already afforded appropriate measures should 
be taken to enable guarantees to be provided for : 

(a) the exercise of the right of freedom of 
association without fear of intimidation, coercion 
or restraint from any source with the object of: 

(i) making the employment of the worker con- 
ditional on his not joining a trade union or on 
his withdrawing from a trade union of which he 
is a member; 

(ii) prejudicing a worker because he is a mem- 
ber or agent or official of a trade union; 

(iii) dismissing a worker because he is a mem- 
ber or agent or official of a trade union. 

(b) the exercise of the right of association by 
workers' organisations in such a way as to prevent 
any acts on the part of the employer or employers' 
organisations or their agents with the object of: 

(i) furthering the establishment of trade un- 
ions under the domination of employers; 

(ii) interfering with the formation or admin- 
istration of a trade union or contributing finan- 
cial or other support to it ; 

(iii) refusing to give practical effect to the 
principles of trade union recognition and collec- 
tive bargaining. 

(2) It should be understood, however, that a 
provision in a freely concluded collective agree- 
ment making membership of a certain trade union 
a condition precedent to employment or a condi- 
tion of continued employment does not fall within 
the terms of this Resolution. 

10. Appropriate agencies should be established, 
if necessary, for the purpose of ensuring the pro- 
tection of the right of association as defined in 
paragraph 9 herein. 

899 



U.S. Delegation to Second Session of UNESCO 



[Released to the press October 28] 

The Department of State announced on October 
28 that the President had approved final composi- 
tion of the United States Delegation to the Second 
Session of the General Conference of the United 
Nations Educational, Scientific and Cultural Or- 
ganization at Mexico City from November 6 to 
December 3. The Delegation follows : 

United States Representatives 

William Benton, former Assistant Secretary of State, 
Chairman 

Milton Eisenhower, Chairman, U.S. National Commission 
for UNESCO and Member of the Executive Board for 
UNESCO ; President, Kansas State College of Agricul- 
ture and Applied Science, Manhattan, Kans., Vice 
Chairman 

Laurence Duggan, Director, Institute of International Edu- 
cation, New York City 

Reuben Gustavson, Chancellor, University of Nebraska, 
Lincoln, Nebr. 

Helen White, Professor of English, University of Wiscon- 
sin, Madison, Wis. 

A-Uernates 

Detlev Bronk, Chairman, National Research Council, 
Washington 

Charles S. Johnson, President, Fisk University, Nashville, 
Tenn. 

George Stoddard, President, University of Illinois, Urbana, 
111. 

Howard B. Wilson, Carnegie Endowment for International 
Peace, New York City 

Louise Wright, Director, Chicago Council on Foreign Rela- 
tions, Chicago 

Advisers 

Saxton Bradford, Deputy Director, Unesco Relations Staff, 

Department of State 
Esther C. Brunauer, Assistant Director, Unesco Relations 

Staff, Department of State 
William G. Carr, Associate Secretary, National Education 

Association of the U.S., Washington 
Arthur H. Compton, Chancellor, Washington University, 

St. Louis 
Samuel De Palma, Division of International Organization 

Affairs, Department of State 
Ren6 d'Harnoncourt, Museum of Modern Art, New York 

City 
Luther H. Evans, Librarian of Congress 
Dorothy Posdick, Office of European Affairs, Department 

of State 



Lloyd A. Free, Special Assistant to the Director of the 
Office of Information and Educational Exchange, De- 
partment of State 

Raymond H. Geist, Counselor of Embassy, American Em- 
bassy, Mexico City 

Monsignor Frederick Hochwalt, General Secretary, Depart- 
ment of Education, National Catholic Welfare Confer- 
ence, Washington 

Kenneth Holland, Assistant Director for Cultural Affairs, 
Office of Information and Educational Exchange, 
Department of State 

Charles M. Hulten, Deputy Assistant Secretary of State 
for Administration 

Walter Kotschnig, Chief, Division of International Organi- 
zation Affairs, Department of State 

Joseph Landis, President, American Federation of Teach- 
ers, Cleveland Heights, Ohio 

Richard McKeon, Professor of Philosophy, University of 
Chicago ; and U.S. Adviser on Unesco Affairs, Paris 

James Marshall, Member, Board of Education, New York 
City 

Kendrick Marshall, Director, Division of International 
Educational Relations, U.S. Office of Education 

Albert H. Rosenthal, Assistant Director, Unesco Relations 
Staff, Department of State 

Harold B. Snyder, Director, Commission for International 
Educational Reconstruction, Washington 

S. Walter Washington, First Secretary, American Embassy, 
Mexico City 

Secretary General and Adviser 

Charles A. Thomson, Director, Unesco Relations Staff; 

and Executive Secretary, U.S. National Commission 

for UNESCO, Department of State 

Special Assistant to the Secretary General for Liaison 
Morrill Cody, Cultural Officer, American Embassy, Mexico 
City 

Press Relations Officer 

Dorsey Gassaway Fisher, First Secretary, American Em- 
bassy, Mexico City 

Public Liaison Officer 

Donald Wilson, Division of Public Liaison, Department of 
State 

Special Assistants to the Chairman 

Forrest K. Geerken, Second Secretary, American Embassy, 

Mexico City 
Kenneth Davis, Kansas State College of Agriculture and 

Applied Science, Manhattan, Kans. 
Alice T. Curran, Office of the Assistant Secretary for Public 

Affairs, Department of State 



900 



Department of State Bulletin 



Executive Secretary 

Millard L. Kenestrick, Chief, Administrative Services Sec- 
tion, Division of International Conferences, Depart- 
ment of State 

Technical Secretary 

Herbert J. Abraham, Assistant Director, Uwesco Rela- 
tions Staff, Department of State 

AssiMant Technical Secretaries 

Henry E. Billingsley, Division of International Confer- 
ences, Department of State 

Arthur A. Compton, Acting U.S. Adviser on TJnesco Affairs, 
American Embassy, Paris 

Administratiiw and Fiscal Officer 

Allen P. Manning, Division of International Conferences, 
Department of State 

Administrative Liaison 

William P. Hughes, Executive Officer, American Embassy, 
Mexico City 

Documents Officer 

Donald A. BuUard, Unesco Relations Staff, Department 
of State 

Delegations from 32 member nations will attend 
the Conference, which also marks Unesco's first 
anniversary as a specialized agency of the United 
Nations. 

The General Conference will consider 
UNESCO's proposed program for 1948, which has 
been given a new focus through a regrouping 
of its major aims into five broad categories. 
These include: (1) raising the standards of edu- 
cation, science, and culture; (2) the free flow of 
ideas; (3) education for international under- 
standing ; (4) mail and the modern world, which 
is devoted principally to the study of tensions 
affecting international understanding; and (5) 
acting through governments and peoples, a sec- 
tion which will be devoted principally to bud- 
getary and staff considerations. 

Eight members of the United States Delegation 
are members of the United States National Com- 
mission for UNESCO, which at its recent confer- 
ence in Chicago recommended to the Department 
of State that highest priority in 1948 be given to 
rebuilding the war-devastated schools, colleges, 
libraries, laboratories, and museums of the world. 
Emphasis on the free flow of ideas will include 



THE UNITED NATIONS AND SPBCIALIZBD AGENCIES 

special attention to the interchange of students 
and teachers, a survey of the press, films, telecom- 
munications, postal services, and plans for a 
world-wide radio network. 

Other areas of discussion will feature the anal- 
ysis of textbooks (including a study of those 
inimical to peace) and recommendations for four 
teachers' seminars in different sections of the world 
to be modeled on the teachers' seminar held as a 
pilot project in Paris last summer. 

U. S. Delegation to Asian 
Conference of ILO 

[Released to the press October 27] 

The President has approved the composition of 
a United States Observer Delegation to the Pre- 
paratory Asian Regional Conference of the Inter- 
national Labor Organization (Ilo), as recom- 
mended by the Secretary of State in consultation 
with the Secretary of Labor, it was announced on 
October 27. This meeting is scheduled to open at 
New Delhi, India, on October 27, 1947, and will 
last until November 8. Representing the United 
States as observers will be Henry F. Grady, United 
States Ambassador to India, and William S. 
Tyson, Solicitor, Department of Labor, with 
Robert M. Carr, First Secretary, American Em- 
bassy, New Delhi, as an adviser. 

This meeting will consider: (a) problems of 
social security ; (h) labor policy in general, includ- 
ing enforcement; (c) the general economic back- 
gi-ound of social policy, including industrialization 
problems; and (d) a program of action for pro- 
gressive enforcement of social standards embodied 
in Ilo conventions and recommendations, but not 
yet applied in the individual countries of Asia. 

The 99th Session of the Governing Body of the 
Ilo (September 1946 at Montreal) approved the 
sending of a preliminary mission to visit India and 
other Asiatic countries for verification and ampli- 
fication of material to be used as the basis of the 
work of the Preparatory Conference. Tliis mis- 
sion began its work at New Delhi on January 30, 
1947, and its resultant reports will be considered 
by the Conference. 



November 9, 1947 



901 



THE RECORD OF THE WEEK i 

General Agreement on Tariffs and Trade Completed at Geneva 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House October 29] 

The announcement today of the completion, 
among 23 nations at Geneva, of a general agree- 
ment on tariffs and trade is a landmark in the 
history of international economic relations. Never 
before have so many nations combined in such 
a sustained effort to lower barriers to trade. Never 
before have nations agreed upon action, on tariffs 
and preferences, so extensive in its coverage and 
so far-reaching in its effects. In a world economic 



situation characterized until now by progressive 
deterioration, this agreement is heartening indeed. 
Viewed against the background of other plans for 
economic reconstruction, it confirms the general 
acceptance of an expanding multilateral trading 
system as the goal of national policies. By demon- 
strating the willingness of nations to attack their 
common difficulties in a spirit of cooperation, it 
gives ground for confidence that we shall succeed 
in solving the problems that are still ahead. 



REVIEW OF NEGOTIATIONS 



[Released to the press October 29] 

The Department of State announced on October 
29 that the delegations to the International Trade 
Conference at Geneva have completed their nego- 
tiations and will sign the final act of the confer- 
ence on October 30. This act authenticates the text 
of a general agi-eement on tariffs and trade among 
23 countries, belonging to 16 customs areas, which 
carried on three quarters of the world's trade be- 
fore the war. The agreement covers more than 
45,000 items and accounts for two thirds of the 
trade among the countries in the gi-oup. It thus 
represents the most comprehensive action ever 
undertaken for the reduction of barriers to trade. 

The countries participating in the negotiations 
leading to the agreement are Australia, the Bel- 
gium-Netherlands-Luxcmbourg Customs Union 
(Benelux), Brazil, Canada, Chile, China, Cuba, 
Czechoslovakia, France, India and Pakistan, the 
Customs Union of Lebanon and Syria, New Zea- 
land, Norway, the Union of South Africa, the 
United Kingdom together with Burma, Ceylon, 
and Southern Rhodesia, and the United States. 

The agreement brings to a successful conclusion 
six months of continuous sessions at Geneva pre- 
ceded by more than a year of intensive prepara- 
tion both here and abroad. It incorporates tlie 
results of negotiations that were carried on si- 
multaneously between 106 pairs of countries. The 
United States was a party to 15 of these nego- 
tiations. Under the terms of the agreement the 

902 



concessions granted, not only in these cases but in 
the other 91 negotiations as well, will be extended, 
as a matter of right, to the United States. 

The negotiations leading to the agreement were 
conducted on a selective, product-by-product basis. 
Action on individual products included substan- 
tial reductions in duties on some products, the 
binding of low rates of duty on others, and the 
binding of free entry on still others. Preferences 
affecting a large part of our trade with countries 
in the British Commonwealth have been substan- 
tially reduced, and preferences on a long list of 
products which we export to the various countries 
of the Commonwealth have been eliminated. Un- 
der the terms of the agi'eement, no new prefer- 
ences can be created, and no existing preferences 
can be increased. 

The concessions on tariffs and preferences con- 
tained in the agreement are safeguarded by general 
provisions that are designed to prevent partici- 
pating countries from nullifying such concessions 
by resorting to other forms of restriction or dis- 
crimination. These provisions cover restrictive 
methods of customs administration, discrimina- 
tory internal taxes and regulations, import quota 
systems and exchange controls, and the operations 
of state-trading enterprises. They require the 
general application of the principle of most-fa- 
vored-nation ti'eatment in international trade. 

Concessions made by the United States in these 
negotiations are within the limits prescribed by 

Department of Slate Bulletin 



Congress in the Reciprocal Trade Agreements Act, 
and all of the concessions contained in the agree- 
ment are subject to a provision required by Ameri- 
can procedure under that act. If througli unfore- 
seen developments a particular tariff reduction 
should increase imports so sharply as to cause or 
threaten serious injury to domestic producers, the 
country granting the reduction may suspend its 
operation in whole or in part. Other countries 
may then withdraw equivalent concessions so that 
the balance of the agreement may be restored. 

The details of the agreement will not be made 
public until it has been formally transmitted to 
the governments of the countries concerned, trans- 
lated into languages other than the official versions 
in English and French, and checked for accuracy. 
They will then be released simultaneously by the 
United Nations and in the 23 capitals. 

The tentative schedule for action on the agree- 
ment is as follows : A protocol of provisional ap- 
plication has been opened for signature by partici- 
pating countries. If this protocol has been signed 
by the key countries in the group (Australia, Ben- 
elux, Canada, France, the United Kingdom, and 
the United States) by November 15, the agreement 
will be published on November 18, and the tariff 
concessions which it contains will be put into effect 
by these countries on January 1, 1948, together 



THE RECORD OF THE WEEK 

with all of its general provisions that can be made 
operative under existing laws. The agreement 
will finally become effective for each of the partici- 
pating countries when it files a formal instrument 
of acceptance with the United Nations by June 
30, 1948. 

On August 22 the delegates at Geneva, sitting as 
a United Nations Preparatory Committee, com- 
pleted a draft charter for an International Trade 
Organization for submission to a United Nations 
Conference on Trade and Employment which will 
convene at Habana, Cuba, on November 21. A 
central provision of this charter requires members 
of the Ito to negotiate for the reduction of barriers 
to trade. The successful completion of the general 
agreement on tariffs and trade removes all doubt 
concerning the workability of that provision. As 
regards their trade with each other, which consti- 
tutes the great bulk of the world's trade, the mem- 
bers of the Preparatory Committee have already 
fulfilled their obligation. The Habana confer- 
ence will therefore open with progress in tariff 
reduction an accomplished fact. The other coun- 
tries of the world, on joining the Ito, will then 
assume an obligation to take similar action with 
respect to their own tariffs. The conclusion of the 
Geneva negotiations is thus a major step on the 
road toward a stiU more comprehensive agreement 
for the reduction of barriers to trade. 



Government Policy and International Trade 



BY ASSISTANT SECRETARY THORP > 



[Released to the press October 27] 

For any country and at any given period of time 
foreign policy tends to be a reflection of domestic 
policy — an effort to extend the domestic scene to 
the foreign field. Thus American economic for- 
eign policy is greatly affected by the character of 
our own economy. We start quite naturally with 
the proposition that the same system of trading 
which has created our gi-eat productive machine, 
built up the United States market, and given us 
such a high standard of living should be our 
objective in our economic foreign policy. 

Our economy is still essentially one of private 
property and individual initiative. At times we 
hear individual businessmen grumble that the Gov- 
ernment is running their enterprises, but the basic 
fact is that, by and large, the businessman, farmer, 

November 9, 1947 



trader, and consumer still have their freedom of 
operation. We have pursued monopolies and re- 
straints of trade for over 50 years, though I must 
admit that the speed of pursuit has been somewhat 
erratic. We have added to the rules of the game 
from time to time and occasionally change the 
rules without very much notice. We set up elabo- 
rate and necessary controls during the war, and 
we moved to clear them away as quickly as pos- 
sible as soon as the war was over. The basic fact 
remains that the Government is not operating our 
economy and that we still regard direct Govern- 



' Address delivered before the League of Women Voters, 
New York, N. T., on Oct. 27, 1947, and released to the press 
on the same date. Willard L. Thorp Is Assistant Secre- 
tary of State for economic affairs. 

903 



THE RECORD OF THE WBEK 

ment interference as the exception rather than 
the rule. 

This attitude is reflected in our foreign policy. 
Traditionally, it is the American belief and ex- 
perience that foreign trade and commerce are also 
carried on most efficiently and reach their highest 
levels when conducted by private businessmen. It 
is not surprising that we believe that the most 
efficient pattern of international trade is one in 
which the major decisions are made not by govern- 
ments but by private buyers and sellers, under 
conditions of active competition and with proper 
safeguards against the establishment of monopo- 
lies and cartels. Under such a system, just as in 
the domestic economy, buyers make their pur- 
chases and sellers make their sales at whatever time 
and place and in whatever quantities they choose, 
relying for guidance on whatever prices the mar- 
ket may afford. Therefore, the American tradi- 
tion is for particular transactions in international 
trade to be carried on through private channels. 

I must note at once that there are many perma- 
nent exceptions to this rule, and other more tem- 
porary excei^tions made necessary by some special 
situation. As a permanent exception I might note 
traffic in narcotics and in munitions. As a tem- 
porary case I might cite the fact that the war 
emergency compelled many countries, including 
the United States, to resort to close control of 
international commerce because of the comj^ara- 
tively limited supply of basic commodities. Right 
now in the United States, more than two years 
after the war, about 600 commodities are still 
under export control, including such critical items 
as food, feeds, fertilizer, coal, petroleum, and steel. 
While these trade controls ordinarily are contrary 
to the principles of our commercial policy, they are 
necessary in order to insure an equitable distribu- 
tion of those items in short world supply ; to pre- 
vent an undue impact on our domestic economy; 
and to direct exports to areas of greatest need. 
The support which these export controls give to 
our foreign policy at this critical time cannot be 
overestimated. 

There is one reason why foreign economic 
policy is even less simple a matter than do- 
mestic economic policy — that one end of each 
transaction, either the buyer or seller, is by defini- 
tion in some other country. It is within our power 
to define the economic pattern so far as the Amer- 



ican participant is concerned, but we cannot leg- 
islate the full scheme of things for the foreign 
buyer or seller. The result is that it is a responsi- 
bility of the United States Government to work 
out some general basis of understanding with the 
other country which will define the character of 
the economic environment in which business is 
done and the extent to which the respective govern- 
ments shall exercise controls or erect barriers to 
trade. Traditionally such problems have been 
dealt with bilaterally, by pairs of countries. Our 
own arrangements come chiefly under the head- 
ing of reciprocal trade agreements and commer- 
cial treaties. The Trade Agreements Act has been 
the economic cornerstone of the United States 
foreign policy for more than 12 years. Within 
certain limits set by Congress, these agreements 
define tariff and other conditions of trade be- 
tween the two countries. Since the act was passed 
at a time when the United States tariff and barriers 
in other countries were both extremely high, the 
agreements have generally involved mutual reduc- 
tion of barriers after careful negotiation. Further- 
more, they establish certain rules and principles, 
deviations from which may be made only after 
consultation between the countries. These agree- 
ments have helped to expand United States foreign 
trade, to increase employment, and to cement 
friendly relations with other countries through- 
out the world. 

The trade-agreements program is simply a 
means by which we and foreign countries agree 
to the reciprocal relaxation of governmental re- 
strictions on both sides, thus promoting trade in 
both directions to the benefit of producers and 
consumers in both countries. This expanded two- 
way trade results in a net gain in production, con- 
sumption, and employment in both countries, 
which stimulates economic activity throughout 
their economies. 

The trade-agreements program is a hard- 
headed, practical program because it recognizes 
the unyielding fact that trade, in order to move at 
all, must move in both directions. In the long run 
we cannot export unless we import. Other coun- 
tries cannot buy our goods and services unless we 
buy their goods and services. Both of us must buy 
and sell in order to keep our factories going, our 
farms operating, our workers employed, and our 
consumers supplied. 



904 



Department of Stale Bulletin 



While the trade agreement is concerned pri- 
marily with barriers to the flow of goods in inter- 
national commerce, the commercial treaty — or 
treaty of friendship, commerce, and navigation — 
deals largely with persons and with other instru- 
mentalities of international economic operation, 
by means of which the flow of goods and services 
is cai-ried on. It determines the basic rights of 
American citizens and corporations, American 
goods, and American ships in some foreign 
country. 

Conditions existing throughout a large part of 
gi the world at the present time make the moderniza- 
tion and the extension of our commercial treaty 
structure a matter of considerable urgency. Large 
portions of the world have been in a state of an- 
archy and chaos for a decade. Nowhere has the 
resulting dislocation been more serious than in 
those institutions, channels, and practices affecting 
international economic affairs. Both the letter 
and spirit of international law have been flouted, 
and treaties have been broken deliberately and 
boldly. In some areas the inhabitants have the 
belief that their past misery has been primarily 
caused by foreigners and therefore are disposed 
to show little sympathy with or respect for for- 
eign property or foreign personnel. The problem 
is complicated by the fact that new types and 
forms of economic patterns are emerging in vari- 
ous countries, so the problem of the proper place 
and treatment of foreign capital and foreign per- 
sons takes on a new difficulty unless clearly recog- 
nized rules are established. 

Considerations of public interest require that 
the American Government contribute in every way 
possible to the restoration of respect for law and 
orderly processes in domestic as well as interna- 
tional transactions of every country. One ap- 
proach is the systematic recording in treaty form 
of those mutually acceptable general principles 
that can be counted on to promote stability in 
economic affairs. 

At the present time the Department of State 
has a program vigorously under way for modern- 
izing and extending the coverage of our commer- 
cial treaties. There are now in effect some 25 rela- 
tively comprehensive commercial treaties, about a 
score of others the subject matter of which is some- 
what limited, and an approximately equal number 
of Executive agreements, exclusive of the agree- 



THE RECORD OF THE WEEK 

ments with 28 countries concluded under the pro- 
visions of the Trade Agreements Act of 1934, 
relating to more specific problems on the same 
general subject matter. Nevertheless, we are with- 
out such contractual bases for our economic and 
commercial relations with a considerable number 
of the more important trading countries. 

At this moment the Department has in the plan- 
ning, drafting, or discussion stage about 20 proj- 
ects for new comprehensive commercial treaties. 
In the case of China, negotiations have been com- 
pleted and the proposed treaty is now before the 
Senate for ratification. 

While it is true that the greatest number of inter- 
national problems are still bilateral in character, 
as indicated by the constant flow of diplomatic 
notes, aide-memoires, memoranda, and ambassa- 
dorial conversations which pass between govern- 
ments, there is a strong tendency to deal with our 
present-day problems on a multi-national basis so 
far as possible. For almost the first hundred years 
of its existence, the United States entered into no 
multilateral treaties, agreements, or conventions 
whatsoever. However, it is not surprising that 
this approach should have come so strongly to the 
fore at this particular time. The world has been 
growing smaller at an extremely rapid rate, while 
the necessary arrangements for economic activity 
have become increasingly complex. Different bi- 
lateral arrangements on the same subject by any 
one country with several others make for great 
administrative confusion at home. But the basic 
reason is not administrative. Many of these eco- 
nomic situations are interlocking. Trade may be 
triangular or quadrilateral. Certainly financial 
currents flow back and forward. 

Added to the inherent complexities of trade ne- 
gotiations is the fact that World War II left the 
world economic and trade situation in a chaotic 
condition. Many of the nations most important 
in United States foreign trade suffered devasta- 
tion of their industry and agriculture or wholesale 
conversion to war purposes. Their capital struc- 
tures were wrecked, their manpower reduced, and 
their assets destroyed. Their people are cold, 
hungry, and disillusioned. These many difficul- 
ties, particularly those in the economic field, have 
led countries to take whatever kinds of extraordi- 
nary measures the traffic will bear. These vary 
from the operation of internal relief programs to 



November 9, 1947 



90S 



THE RECORD OF THE WEEK 

the taking over of sections of industry for direct 
governmental control through the process of na- 
tionalization. Unusual fiscal measures are seized 
upon in an effort to prevent runaway inflation, and 
in the field of foreign economic relationships most 
countries are now exercising controls through 
quota systems over the tj^pe of goods to be moved 
and, through foreign exchange, control over the 
process of international payments. 

It is inevitable that many of these controls 
should be essentially restrictive. They arise be- 
cause of the necessity for allocation to the most 
essential use of some short facility or material. 
When a number of countries all adopt restrictive 
measures, trade among them is established at a 
minimum. In fact, it must then be carried on by 
the awkward pi'ocedure of bilateral barter agree- 
ments under which arrangements are made for the 
exchange of specific quantities of specific goods. 
Obviously, such a way of carrying on trade is cer- 
tain to fail to uncover most of the opportunities 
for working out transactions in the interest of all 
concerned, and it makes all trade dependent upon 
arrangements made by governments rather than 
businessmen. Such trade controls involve arbi- 
trary government decisions, quotas on imports, 
license applications, and endless supervision and 
bureaucracy. 

This is a general situation calling for general 
treatment. No single country can deal with it 
by itself. Even those countries which have tried 
to avoid raising new trade barriers have found 
uncontrolled trade leading to the exhaustion of 
their supplies of convertible currencies and hard 
monetary reserves and the substitution of noncon- 
vertible currencies which could not be spent. 

Also, each country is limited by its uncertainty 
as to the policies of other countries. No country 
in Europe, for example, can plan very far ahead 
because of the uncertainty as to wliat its neighbors 
will do. Many problems can be dealt with on a 
multi-national basis where single countries or 
countries working bilaterally are quite helpless 
because of their dependence upon other areas. 

Even before the war the trade situation had 
deteriorated badly. The rising trade barriers of 
the twenties had been reinforced by the steps taken 
to protect the various currencies after the break- 
down of the gold standard in 1931. The postwar 

' Department of State publication 2411. 
906 



economic program of the United States included , 
a multi-national attack on those problems. I shall " 
not discuss the important part which the Interna- 
tional Monetary Fund is intended to play in re- 
ducing the monetary difficulties in international 
trade. The multi-national trade program had its 
inception in November 1945, when the United 
States published its Proposals for Expansion of 
World Trade and Employment,- which suggested 
the establishment of an International Trade Or- 
ganization and the adoption of a charter or code 
of principles under which international commerce 
could expand, multilaterally and on a nondiscrim- 
inatory basis, with the fewest possible restrictions 
and with resulting increases in employment and 
production and higher living standards tlu-ough- 
out the world. 

The Geneva meeting, which opened April 10 and 
is now near its end, is the result of that initiative 
on the part of the United States Government in 
late 1945. It represents an achievement of the first 
magnitude in international economic affairs. Eep- 
resentatives of 19 countries have negotiated scores 
of agreements to reduce tariffs and have written 
a next-to-final draft of the charter which will 
govern a large part of the economic relations of 
member nations. The Habana meeting — the 
United Nations Conference on Trade and Employ- 
ment — scheduled to meet November 21 to draft 
the final version of the Ito charter, will be the 
culmination of two years of hard work devoted 
to achieving an economic foundation for world 
peace and security. 

The charter provides both the principles and 
the procedures for the reduction or elimination 
of barriers to trade. One can feel greatly encour- 
aged by the fact that it is not merely a prospectus 
of wishful thinking for the future. At Geneva 
definite action implementing the principles has 
been a basic part of the negotiations. In the years 
between the two wars, there were a number of 
international conferences where agreement was 
reached on principles in this field, but unfortu- 
nately national action often seemed to disregard 
and even contradict these principles. 

It would not be proper for me to d&scribe at 
this time the details of the many new trade agree- 
ments which were negotiated at Geneva in accord- 
ance with the charter's principles. There were 
periods during the conference when the reports 

Deparfmenl of State Bulletin 



from our negotiators were most discouraging. 
But now that the negotiations are completed, I 
can say that the results are far beyond our hopes. 
They are a definite and clear demonstration that 
the cliarter is not merely words on paper express- 
ing pious hopes — that the nations represented at 
Geneva were willing to put its principles into 
effect. 

It is not enough, however, to establish the In- 
ternational Monetary Fund and the International 
Trade Organization, and then sit back and say that 
the necessary multi-national machinery has been 
set up for the expansion of trade and employment. 
The extraordinary character of trade restrictions 
today is due primarily to the critical economic sit- 
uation in so many countries. And that stems in 
turn from the fundamental condition of economic 
scarcity in the world. Nations cannot afford to 
allow their products to be exported freely, and 
they must husband the purchasing power obtained 
therefrom for the most needed imports. With 
most of the currencies of the world unconvertible, 
there is no way of settling trade balances except 
directly, which means barter trade with money 
used only as a unit of account and not as a medium 
of exchange. 

At the suggestion of the United States, some- 
thing new has been added as an attack on the prob- 
lem of economic recovery — the Committee of Eu- 
ropean Economic Co-operation. The Paris report, 
prepared by this Committee, is a blueprint for 
European recovery in four years, based upon the 
joint production, financial, and trade efforts of 16 
countries, supplemented by assistance from the 
United States. The European recovery program 
and the trade charter are not alternatives for each 
other; they are complementary. The principles 
of trade expansion expressed in the charter can 
operate most effectively in a world where curren- 
cies are stable and trade is reasonably within bal- 
ance. A successful recovery plan for Europe will 
bring about these conditions. Without such re- 
covery, restrictions and controls will have to be 
continued for many years in the future and will 
be increasingly difficult to dislodge. On the other 
hand, the Paris report itself recognizes that Eu- 
ropean recovery can be achieved and maintained 
only if the existing net of trade restrictions is 
removed and trade is permitted to expand. In 
other words, each program requires the other, and 



THE RECORD OF THE WEEK 

failure to complete either program will delay and 
even threaten the ultimate success of the other. 

These matters about which I have been talking 
are not merely interesting material for a speech — 
they are veiy serious matters in the world of ac- 
tion. The way in which each is handled starts 
various forms of chain reaction through our econ- 
omy and presumably that of at least one other 
country. Our action or failure to act may deter- 
mine whether ladies in New York can buy silk 
dresses or not ; it may determine whether children 
in Italy will have enough food to prevent disease 
and starvation or not ; it may lead in the direction 
of world peace, or it may provoke the forces of 
aggression. 

Our decisions are important because by any eco- 
nomic measuring rod the United States is the 
greatest nation in the world today. In terms of 
wealth and productivity we probably are equal to 
all the other countries of the world put together. 
I do not say this to boast, though I do believe that 
we have something of which we can be intensely 
proud. One need not apologize for the odd and 
minor inefficiencies of our democratic system under 
such circumstances. We are not on the defensive. 
We can back up our economic principles with a 
very real and tangible demonstration — a rate of 
production of goods and services of about 200 bil- 
lion dollars per year. That is real achievement. 

But with such a record must go also a tremen- 
dous responsibility. The actions of no other coun- 
try are as important in shaping the world of the 
future as the United States. We have no choice 
in this matter. In any given situation we must act 
or not act — and either action or inaction has its 
consequences. We have leadership thrust upon 
us, and there is no escaping, even if we would. 

A leader refuses to lead only for two reasons — 
one, that he is tired, or two, that he is confused 
and doesn't know where to go. Certainly, the 
United States is no exhausted country, an effete 
civilization starting on its decline and fall. Look 
at our war production record, or look at our con- 
tributions to new postwar international organiza- 
tions. 

Do we know where we want to go ? I believe that 
we do have a fairly clear concept of the kind of 
world we wish to see emerge from the World War 
ruins. "The Four Freedoms" is one way of saying 



November 9, 1947 



907 



THE RECORD OF THE WEEK 

it. We believe in the protection of the rights of 
the individual in the political sphere and indi- 
vidual initiative in the economic. 

As I said at the outset, for all countries foreign 
policy tends to reflect the values and objectives 
which are expressed in domestic policy. If we 
have real convictions about the basic fundamentals 
upon which the United States is built, then we 
will have convictions in our foreign policy. And 
we should rejoice in the opportunity which has 
come to us to play such an important role in shap- 
ing the world of the future. 

Consider for a moment what the state of the 
world would have been today if the atomic bomb 



had been developed simultaneously in Germany 
and that before our victory the industrial area 
from Pittsburgh to Chicago had been laid in ruins. 
I shall not endeavor to describe what this would 
have meant for us — but for the rest of the world 
it would have been absolute tragedy. There would 
have been no possibility of world economic re- 
covery even to prewar levels in less than decades. 
Disease and starvation would have carried away 
millions who are alive today. 

There was destruction, but not here. There was 
starvation, but not here. I say that we have a 
great responsibility and a great opportunity. May 
we live up to them both. 



American Mission on Science and Technology 
To Be Establislied in London 



Statement by the Assistant to the President' 

[Released to the press jointly by the White House 
and the Department of State October 30] 

A mission on science and technology will shortly 
be established in the United States Embassy in 
London. The mission will consist of a small staff 
of scientists and engineers, headed by Earl A. 
Evans, Jr., chairman of the department of bio- 
chemistry. University of Chicago. The activities 
of the mission will cover the fields of organic chem- 
istry, biochemistry, physics, engineering, biology, 
and agronomy, and the personnel will be assigned 
for short-term periods on a rotating basis. 

The principal duty of the mission will be to 
supply to interested persons and agencies in Great 
Britain in