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Full text of "Department of State bulletin"

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The United Nations and 

Specialized Agencies Page 

U.S. Position on the Palestine Problem: 
Statement by Ambassador Warren R. 

Austin 402 

Statement by Secretary Marshall .... 408 
U.N. Documents: A Selected Bibliography . 408 
Chilean Request for Reference of Item Re- 
garding Czechoslovakia to the Security 
Council: 
Letter From the Representative of Chile . 409 
Statement by Ambassador Warren R. 

Austin 411 

Discussion in the Interim Committee on the 
Problem of Voting in the Security 
Council: 

U.S. Proposals 412 

Statement by Philip C. Jessup 414 

Economic Affairs 

Current and Prospective World-Wide Petro- 
leum Situation 426 

General Policy 

U.S. Delegation to Ninth International Con- 
ference of American States 417 

Toward Securing the Peace and Preventing 
War. Address by the President to the 
Congress and Statement by Ambassador 
Warren R. Austin 418 



General Policy — Conlimied Page 

Relation of Military Strength to Diplomatic 

Action. By Secretary Marshall . . . 421 
World-Wide Struggle Between Freedom and 

Tyranny. By Secretary Marshall . . 422 

Treaty Information 

Comments on the International Wheat 
Agreement. Article bj- Edward G. 
Cale 395 

Intentions of Czechoslovakia To Sign Ito 

Agreement Studied 425 

Recommendation for Return of Free Terri- 
tory of Trieste to Italy. Statement by 
the Governments of the U.S., U.K., and 
France 425 

Statements, Addresses, and Broadcasts 

of the Weeit 401 

The Congress 

Ratifications of Constitutional Amendment 

Regarding President's Terms of OfBee . 427 

The Foreign Service 

Consular OfEces 427 

Publications 

Department of State 427 



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Edward O. Cale, author of the article on the international wheat 
agreement, is Associate Chief of the International Resources Division, 
Office of International Trade Policy, Department of State. Mr. Cale 
is a member of the United States Delegation to the international 
Wheat Council. 



U. S, GOVERNMENT PRINTING OFFICE: l?'*^ 



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COMPLETION OF ITO CHARTER HAILED AS HOPE 

FOR TROUBLED WORLD • Statements on Signing . 441 

U.S. POSITION IN THE UNITED NATIONS REGARD- 
ING CHILEAN COMPLAINT • Statement by U.S. 
Repre$«ntative in the Security Council 446 

WORLD HEALTH ORGANIZATION— PROGRESS AND 

PLANS • Article by H. van Zile Hyde, M.D 431 



/'or complete contents see hack cover 



Vol. \^ lii, m!^ 
April i. '«*« 





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*^,w^^. bulletin 



Vol. XVIII, No. 457 • Publication 3110 
April 4, 1948 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 25, D.C. 

StmscEiPTiON: 
62 issues, $6; single copy, 15 cents 

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

Note: Contents of this publication are, not 
copyrighted and Items contained herein may 
be reprinted. Citation of the Department 
OF State Bulletin as the source will be 
appreciated. 



The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Government ujith 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. 



WORLD HEALTH ORGANIZATION— PROGRESS AND PLANS 



By H. van Zile Hyde, M.D. 

Alternate U. S. Representative, Interim Commission 



The first World Health Assembly, which is 
scheduled to meet in Geneva on June 24, 1948, will 
mark the beginning of full-scale Who activity and 
the termination of the interim phase of the devel- 
opment of the international health agency planned 
at the International Health Conference in New 
York during the summer of 1946. The completion 
of planning for the Assembly by the Fifth Session 
of the Interim Commission, which met in Geneva 
January S^-p-ebruary 7, 1948, provides an appro- 
priate point for reviewing the work and accom- 
plishments of the Commission and for previewing 
the potentialities and work of the Who itself. 

The gap between the International Health Con- 
ference and the World Health Assembly has been 
prolonged well beyond the most pessimistic predic- 
tions. At the time of the Assembly the Interim 
Commission will have been in existence two years. 
At the Conference in New York, plenipotentiaries 
of 62 governments, representing essentially the 
total pojiulation of the world, signed on July 22, 
1946, the constitution of the Who in an atmosphere 
of enthusiasm and confidence. It was anticipated 
that confirmation of these signatories would be 
rapidly forthcoming. China and the United 
Kingdom had signed without reservation. Then 
things slowed down. Nineteen months after the 
signing, when only 20 ^ of the required 26 members 
of the United Nations had deposited instruments 
of acceptance, the Interim Commission set the 
June date for the Assembly in trust that the re- 
quired number of deposits would be rapidly 
forthcoming. 

This decision was taken when neither the United 
States, the Union of Soviet Socialist Republics, nor 
France, all active members of the Interim Com- 
mission, had deposited their instruments of ac- 
ceptance. It was taken in the belief that furtlier 
prolongation of the interim phase would be dam- 
aging to international cooperation in health. The 
states serving <,n the Interim Commission have 
become acutely sensitive to the fact that they, as 
a small group, have been directing international 
health activities on behalf of all signatories to 

AprW 4, 1948 



the constitution over a long period, even though 
some of them have not accepted the constitution 
and others who are not members of the Commission 
have done so long since. It is to be hoped that the 
action taken in calling the Assembly will serve as 
a stimulant to this important movement. 

Assuming that 26 members of the United Na- 
tions deposit instruments of acceptance of the 
constitution before June 24 (which must be the 
case if the Assembly is to meet) there will be 
at least 34 members of the Who at that time, since 
8 non-members ' of the United Nations have al- 
ready deposited their instruments of acceptance. 

The Interim Phase 

The International Health Conference recognized 
that there would be an interval between its con- 
clusion and the first meeting of the World Health 
Assembly. In order to provide for this interval, 
it established, through an arrangement signed by 
61 governments, an Interim Commission composed 
of representatives of 18 members ^ of the United 
Nations. The arrangements laid down the re- 
sponsibilities of the Commission. Chief among 
these were the development of proposals for the 
program and budget for the first year of the 
Who; the provisional agenda of the first World 
Health Assembly, with necessary documents and 
i-ecommendations relating thereto; studies in re- 



' China, the United Kingdom, Canada, Iran, New Zea- 
land, Syria, Liberia, Ethiopia, the Netherlands, Saudi 
Arabia, the Union of South Africa, Haiti, Norway, Sweden, 
Iraq, Slam, Yugoslavia, India, Turkey, and Egypt. Aus- 
tralia, Czechoslovakia, Greece, and the Union of Soviet 
Socialist Republics liave since deposited their instruments 
of acceptance, making a present total of 24 members of 
the United Nations who have become members of the 
Who. 

^ Switzerland, Transjordan, Italy, Albania, Austria, Fin- 
land, Ireland, and Portugal. 

^ Australia, Brazil, Canada, China, Egypt, France, India, 
Liberia, Mexico, the Netherlands, Norway, Peru, the 
Ukrainian Soviet Socialist Republic, the United Kingdom, 
the United States of America, the Union of Soviet Socialist 
Republics, Venezuela, and Yugoslavia. 

431 



gard to headquarters and regional organization; 
and the relationship of the Who to the United 
Nations and to other specialized agencies as well 
as to nongovernmental organizations interested in 
fields related to health. The arrangement also pro- 
vided that the Interim Commission should take 
the steps necessary to effect the transfer to it, and 
later to the Who, of the functions and duties of 
the League of Nations Health Organization and 
the International OiSce of Public Health of Paris. 

The Commission has met at quarterly intervals 
to carry on this work. At its first session, which 
was held in New York immediately following the 
International Health Conference, Dr. Brock Chis- 
holm of Canada was elected Executive Secretary. 
Under his direction, a staff has been developed and 
offices established in New York, Geneva, and Sin- 
gapore. At its fifth session, held in Geneva, the 
Commission concluded its major work. In the 
near future its recommendations regarding the 
agenda of the World Health Assembly and the 
program and relationships of the World Health 
Organization will be transmitted to signatories of 
the Who constitution and to the Interim Com- 
mission. A final session of the Commission will be 
held on June 18, 1948, just prior to the World 
Health Assembly, to review and approve a narra- 
tive report to the World Health Assembly and 
such other supplemental reports and recommenda- 
tions as may be required by circumstances. 

Despite the frequency of meetings and the travel 
involved, the sessions of the Interim Commission 
have been attended by never less than 14 of its 18 
members, showing continued active interest in 
international health on the part of the member 
governments. 

The United Nations has made funds available 
for the work of the Commission, authorizing loans 
amounting to $3,000,000 for the two-year life of 
the Commission. Present estimates indicate that 
the Commission will draw approximately $2,700,- 
000 against this authorization. In addition, by 
agreement with Unrra, $3,000,000 has been 
transferred to the Interim Commission from that 
agency for the continuation of certain health func- 
tions in UNRRA-receiving countries. 

The work of the Commission has fallen under 
three quite distinct headings, namely : 

(1) Planning for the Who J 

(2) Consolidation and contniuation of the work 
of pre-existing international health agencies; 

{^) Continuation of certain health functions of 
Unrra by arrangement with Unrra. 

Planning for the WHO 

The major task of the Interim Commission has 
been to lay the groundwork for the Who. This 
planning is certain to shape the course of the 
Who for many years to come. Although the 

432 



program proposed by the Interim Commission will 
be modified in many ways by the World Health 
Assembly, it can be expected that the basic prin- 
ciples incorporated in it will remain as the deter- 
minants of Who policy in its formative years. 

It is important to examine, in a general way, 
the plans which have been formulated, in an at- 
tempt to preview the organization that is emerging 
and the factors giving it shape. 

Program 

In developing program proposals, the Interim 
Commission has been conscious of the broad scope 
of the Who constitution, which aims at the im- 
provement of the physical, mental, and social 
health of all peoples. It has been conscious, as 
well, of the time range of this task, which indeed 
stretches into infinity. It has attempted to en- 
close this breadth and time-reach into a program 
measured by the realities of present international 
life. Recognizing that the Who can make only 
a beginning in its first year, the Commission has 
focused its proposals for action programs on major 
world health problems for the solution of which 
there are methods already at hand. Under the 
proposals the Who would assist governments in 
building up effective national programs in these 
fields, as a first step toward its general objective 
of strengthening national health services through- 
out the world. The Commission's proposals fur- 
ther provide for study and planning in regard 
to other major problems for which there appears 
to be a promise of early development of methods 
applicable on a wide basis. It has subordinated 
those important but frustrating problems in 
which there is a sense of urgency but as yet no 
method lending itself to international approach. 
These problems, by their nature, require intensive 
study at national and local levels before interna- 
tional action can be taken. 

In November 1947 the Commission, after careful 
deliberation, assigned top priority to certain fields 
of activity and intensified its planning activities 
in these fields. The disease problems thus chosen 
for emphasis have certain common characteristics, , 
namely, high world attack rates, involving many 
millions of persons annually; increased incidence 
directly resulting from war; and methods of con- 
trol not widely exploited. In addition to giving 
high priority to these diseases, the Commission 
recognized the paramount importance to the 
world of the development of healthy successor 
generations by the application of new teclmiques 
in maternal and child hygiene. 

The disease entities singled out, on the above 
basis, for emphasis are malaria, tuberculosis, and 
the group of venereal diseases, with special ref- 
erence to syphilis. It will be well to examine sep- 
arately the reasons behind this selection. 

Department of Slate Bulletin 



Malaria 

At first sight malaria would perhaps appear to 
be a disease of regional concern in the tropical and 
semitropical zones. Quit© otherwise, it is today 
of prime importance to the entire world. In a 
time of acute world food shortage, it attacks some 
300 million persons annually, killing some 3 mil- 
lion of them. For the most part these victims are 
the workers in the great agricultural areas of the 
world. The tremendous impact of malaria in 
these areas is felt in more favorable, nonmalarious 
climes in the deprivation of food and is evidenced 
by the eifects of malnutrition. The debilitating 
effect of chronic and recurrent malaria reduces 
markedly the productivity of essential manpower. 
It suppresses the alertness of mind and body 
needed for the application of modern agricultural 
science in areas which remain backward in a for- 
ward-looking age. This situation persists even 
though malaria can be controlled even to the point 
of eradication by methods whose effectiveness has 
been proved in every continent. Today, with the 
advent of new tools of control, such as the dra- 
matically effective DDT, malaria is more than ever 
susceptible of complete eradication. 

AVhat is required is the extension of knowledge 
and provision of leadership to affected areas. In 
Greece, for example, where, through the centuries, 
malaria has annually attacked 1 to 3 millions of a 
population of 7.5 millions, the disease has been 
reduced to a minor problem — by Greeks — under 
the leadership of a handful of experts sent into 
the country by Unrra. and maintained there now 
by the Interim Commission. As a further example 
of accomplishment in this field by a small outlay 
of funds — coupled with a large outlay of expert- 
ness — one can cite the wartime experience of 
Egypt with malaria. In 1914, upper Egypt was 
invaded by Anopheles gpmbiae^ the most vicious 
vector of malaria. Tens of thousands of deaths 
resulted. In 1945, in one season, this mosquito 
was completely eradicated throughout Egypt — by 
Egyptians — with "know-how" supplied by three 
or four experts of the Rockefeller Foundation. 
Malarious countries can themselves conquer 
malaria with incentive and technical assistance 
supplied on an international basis. 

Fao, as well as Who, has recognized the signifi- 
cance of malaria in retarding full agricultural 
productivity. Fao knows that it is handicapped 
in attaining its objectives so long as populations 
are held back physically and mentally by this 
disease. It has sought the aid and advice of the 
Interim Commission in this matter. In the Fao 
schemes for development of irrigation projects in 
malarious zones, such as the Middle East, there 
stands a threat of increasing the incidence of 
malaria unless plans are drawn and carried out 
with attention to mosquito control at each step. 

The Interim Commission has seen in malaria 

Apri/ 4, 1948 



a truly world problem toward the solution of 
which the Wiio can make a major contribution by 
the rapid extension and application of existing 
technical knowledge. 

Tuberculosis 

Tuberculosis is, of course, one of the great 
enemies of mankind. During the war, deaths 
from this disease increased almost everywhere as 
a result of crowding, malnutrition, and the inti- 
mate association of open cases of the disease with 
the general population due to the breakdown of 
control measures. Indeed, during 1944 and 1945, 
the death rates in Europe reached most alarming 
heights, in many places doubling the prewar rate. 
Since that time there has been a deceptive reduc- 
tion in current tuberculosis death rates, due to the 
fact that many of those persons who would nor- 
mally have survived to swell the present death 
rate died earlier than would have been their ex- 
pected lot. The rate of infection, however, re- 
mains high, as revealed by mass X-ray and tuber- 
culin surveys, threatening a progressive increase 
in death rates during ensuing years. Important 
steps can be taken to ward off this increase and 
reduce, progressively, the rate of infection. Long- 
established methods of control, which have proved 
highly effective where they have been well devel- 
oped, i-equire extension and strengthening. The 
essence of these control measures is the finding 
and isolation of contagious cases. 

There is, however, a relatively new tool, which 
only of late has won wide acceptance. The Scan- 
dinavian and other countries including France, 
Canada, and the United States, have produced 
convincing evidence of the effectiveness, in the 
control of tuberculosis, of the use of a vaccine 
known as BCG (Bacillus Calmette-Guerin) 
which was developed in France almost three de- 
cades ago. It remains now to determine the exact 
place of BCG, in relation to other control meas- 
ures, in the over-all control of tuberculosis. It 
is quite fully agreed however that BCG has a vital 
role to play in the international control of tuber- 
culosis. It is the tool that offers hope of imme- 
diate benefit, while the world attempts to build 
the economic foundations which are essential to 
the control of tuberculosis by older, more orthodox 
control measures. These latter measures depend 
upon a sound economic structure which makes 
available to all proper food, clothing, housing, 
medical care, and hospitalization. Internation- 
ally, the final conquest of tuberculosis is in the 
hands of the United Nations itself and those of 
its specialized agencies concerned with world eco- 
nomic health. Tuberculosis is a disease that can 
be suppressed by a planned attack. The low 
death rate of 32 per 100,000 in Denmark, as con- 
trasted with rates of 200 to 400 per 100,000 in 

433 



several other areas of Europe, is a direct result 
of such attack. 

The Interim Commission has recognized that the 
Who can contribute significantly toward its con- 
trol through the extension of professional knowl- 
edge by fellowships, demonstrations, and expert 
advice to governments, through the extension of 
jjublic knowledge concerning the disease and its 
method of spread, by the promotion of the eradi- 
cation of tuberculosis in cattle, and particularly, 
now, by the extension of the use of BCG vaccine. 

The Commission has not felt it prudent to wait 
for the Who in order to extend the use of BCG 
vaccine in areas in which tuberculosis is epidemic. 
It is therefore sending teams to India, at the re- 
quest of that Government, to demonstrate the tech- 
nique of vaccination in the hope of extending its 
use there on a wide basis. At the same time it is 
providing to the International Children's Emer- 
gency Fund a panel of experts to advise the Fund 
on the technical aspects of a progi\am upon which 
the Fund is embarking to vaccinate an estimated 
15 million children in Europe. The Commission 
has, as well, accepted the responsibility for con- 
ducting studies to determine the effect on tubercu- 
losis rates of this vast vaccination program. 

Venereal Disease 

As is usual during and following war, there has 
been a tremendous upsurge of venereal disease over 
wide areas. The movement of masses of peoples, 
troops, and displaced civilians, the shattered econ- 
omy of nations and degradation of morals which 
are inherent in warfare form the basis of this in- 
crease. Concurrently, in countries not directly 
affected by war, the incidence of venereal disease is 
exceedingly high as a concomitant of social back- 
wardness. There are, for instance, extensive areas 
in Africa in which over 75 percent of the popula- 
tion is infected with syphilis. By way of contrast, 
certain countries, with high social and health 
standards, had reduced venereal disease prior to 
the war to a problem of minor significance. This 
was the case, particularly, in the Scandinavian 
countries, but even those countries reported a six 
to tenfold increase in the incidence of syphilis 
during the war. Venereal disease, particularly 
syphilis, is a serious economic burden upon the 
generation which tolerates it and places upon the 
successor generation a heavy burden of congen- 
itally infected dependents. 

Even while the war-caused increase in venereal 
disease was occurring, a momentous event took 
place in the discovery of the effectiveness of peni- 
cillin in the ti'eatment of both syphilis and gonor- 
rhea. At last, a quick-acting, highly effective cura- 
tive agent had been found and was in production 
on a large scale. It is important that this new 
agent be used to its full effectiveness, as rapidly as 
possible, in the treatment and control of venereal 

434 



disease on a world-wide scale. This requires a 
rapid extension of technical knowledge in regard 
to its use. 

While extending the use of penicillin, it is of 
equal importance that long-established control 
methods, involving case finding, contact tracing, 
mass blood testing, suppression of prostitution, 
provisions of treatment, et cetera, be also extended 
and applied in the M'ays that have been found 
effective in countries which have demonstrated the 
effectiveness of control measures. Such measures 
include the lifting of the veils of mystery, fear, 
and shame from the face of this problem, and 
alerting the population to an awareness of the 
symptoms of venereal disease so that there is full 
public understanding of its real nature. 

Venereal disease cannot be tackled single- 
handedly by the Who. In view of its basic social 
nature it requires a combined attack by the com- 
missions of the United Nations, particularly the 
Social Commission, Unesco, and other interested 
voluntary agencies. The attack on these diseases 
must be a joint coordinated attack, with the Who 
providing guidance and impetus to the technical 
aspects of the problem. 

Maternal and Child Health 

It is scarcely necessary to emphasize the impor- 
tance of improving the lot of children throughout 
the world. The intense interest in the Interna- 
tional Children's Emergency Fund is a clear dem- 
onstration of the full recognition of the need and 
importance of children in developing a stable world 
of the future. 

Nowhere better than in the United States could 
one be conscious of the value of well-constructed 
programs for the care and guidance of mothers 
and children. Between the years 1933 and 1945 the 
reduction in infant mortality from 58.1 to 35.1 
deaths per thousand live births, and the reduction 
in the maternal death rate in child birth from 
6.2 to 2.1 per thousand live births, is a tribute to 
the value of a deliberate attack on the part of the 
medical and related health and social profes- 
sions as well as of voluntary and governmental 
agencies. 

The benefit of this experience can be extended to 
other parts of the world where, among tens of mil- 
lions of people — perhaps hundreds of millions — 20 
to 30 percent of infants die in the first year and 
as high as 50 percent before the fifth year. In 
those areas the majority that survive are afflicted 
by avoidable chronic, wasting diseases such as 
hookworm, trachoma (which leads to blindness), 
schistosomiasis (a fluke infection debilitating 
large populations in tropical and semitropical 
areas, e.g., Egypt, where over half of the popula- 
tion is infected), and are further reduced in effec- 
tiveness by prolonged malnutrition and an un- 
healthy mental adaptation to their environment. 

Department of State Bulletin 



On the instance of the representative of the 
U.S.S.R. at the third session of the Interim Com- 
mission, a high ])riority was assimed to the de- 
velopment of a Who program in the field of child 
health. At the fifth session, the United States 
Delegation presented a carefully constructed plan 
for action in this field. This plan was fully sup- 
ported by the Interim Commission and incorpo- 
rated in its program recommendations to the 
World Health Assembly. 

It is necessary that the present generation ap- 
proach aggressively the pi-oblem of building suc- 
cessor generations on a solid foundation. The 
World Health Organization can contribute greatly 
to this by focusing attention upon the problem 
and by extending to all parts of the world, by 
means of fellowships and expert advice to govei-n- 
ments, knowledge that is readily available. 

Other Activities 

The Interim Commission has grouped numerous 
fields which require varied attention in a well- 
balanced program directed at the current world 
health problems. Generous provision has been 
made in the proposed budget for the group, with 
wide latitude being granted to the Director General 
and Executive Board in the rate and manner of 
development of specific programs. Among the 
fields included in this group are public health ad- 
ministration, nursing, sanitary engineering, indus- 
trial and rural hygiene, public health education, 
mental health, nutrition, schistosomiasis, leprosy, 
influenza, poliomyelitis, and cancer. 

The proposed program makes special and gen- 
erous provision for fellowships in recognition of 
the vital importance of the trained individual as 
the foundation of an efifective health service. The 
experience of the Interim Commission in admin- 
istering fellowships under the funds transferred 
from Unrra (see below) has convinced it of the 
basic importance of this method of extending 
knowledge in such a way that it will be applied 
to current problems. 

The proposed program further provides for the 
continuation and extension of work taken over 
from pre-existing international health agencies 
(Office of League of Nations). This can be more 
usefully discussed in connection with the operat- 
ing phase of the Interim Commission work* (see 
below). 

Budget 

The budget being proposed to the World Health 
Assembly covers the first full fiscal year of the 
Who (January 1-December 31, 1949). No specific 
proposal is being jjut forward for the final months 
of 1948, which will constitute the initial period of 
the Who. The Interim Commission felt that the 
budget for that period could better be drawn up 

April 4, J 948 



by the World Health Assembly after decisions 
have been taken as to the date of termination of the 
Interim Commission, the site of the headquarters 
of the Who, and the level of activity during the 
first full year. This period, of perhaps four 
months, will constitute a transitional period from 
the interim to the full initial level of Who activi- 
ties, and its financing will i-equire supplementa- 
tion of the approved 1948 Interim Commission 
budget. It is hoped that this transitional budget 
may include provisions for repayment of indebted- 
ness to the United Nations and for the establish- 
ment of a working capital fund so that the Who 
may begin its first full year on a sound financial 

The budget proposed for 1949 totals $6,473,991. 
The Interim Commission is presenting it as a 
working document for the World Health Assem- 
bly rather than as a definitive budget. It is in- 
tended to present the Commission's views as to 
the requirements for carrying out effective initial 
programs in the various fields m which flie Com- 
mission feels the Who should take action during 
its fii*st year or must take action to meet its statu- 
tory or inherited obligations. It is being pre- 
sented in a form which lends itself readily to modi- 
fication in emphasis on specific programs and in 
organizational structure. It can be reduced or 
expanded, in whole or in part, and refined to meet 
the wishes of the Health Assembly. In this way 
it can serve as a guide to the World Health As- 
sembly, with no attemi^t being made by the smaller 
interim group to force an organizational pattern 
upon the larger group. 

Headquarters 

The arrangement establisliing the Interim Com- 
mission charged it with making studies in regard 
to site of headquarters. The Commission has cir- 
cularized governments to determine their interest 
in the matter and to elicit any offers of land or 

'The League of Nations Health Organization ceased 
to exist with the dissolution of the parent body. The 
United Nations assumed responsibility for certain of its 
activities. This responsibility was transferred to the 
Interim Commission of the World Health Organization 
in the fall of 1946. 

A protocol, signed on the same day as the constitution 
of the World Health Organization, provides for the ulti- 
mate dissolution of the International Office of Public 
Health and the transfer of Its assets, duties, and functions 
to the World Health Organization. By agreement be- 
tween the Interim Commission and the Permanent Com- 
mittee of the Office, the Commission Is now carrying on 
the duties assigned to the Office by international con- 
ventions. The Office was established by the Rome agree- 
ment of 1907, which can be terminated only by the consent 
of all 45 states which are parties. By becoming a party to 
the protocol the states have agreed to the termination of 
the agreement of 1907. They have further agreed that if 
all the parties to the agreement of 1907 have not agreed 
to its termination by Nov. 15, 1949, they will then denounce 
the agreement of 1906. Such denunciation will take effect 
on Nov. 15, 1950. 

435 



facilities that might be forthcoming. It has been 
indicated that France and Switzerland and per- 
haps other governments will lay before the World 
Health Assembly specific oflFers of land and build- 
ings. In addition, the plan for the United Nations 
building in New York includes facilities for such 
specialized agencies as may settle there. 

The studies made by the Interim Commission on 
this matter are not complete or definitive. A spe- 
cial committee composed of the Representatives of 
India, Egypt, France, Mexico, and Norway was 
appointed to study this matter and has presented 
a report calling attention to factors which should 
be taken into account in arriving at a decision in 
regard to the site of the headquarters, such as 
proximity to other related agencies; availability 
of adequate space, communications, transport, and 
other facilities; economic and social stability; cul- 
tural and scientific environment, et cetera. The 
report of the Committee, however, does not in- 
clude a careful evaluation of these factors, but 
rather leaves the impression that despite such real 
considerations, the final choice will rest on other 
less tangible factors. The leading contenders at 
the present time would appear to be Geneva, Lon- 
don, New York, and Paris. 

The position held consistently by the United 
States Representative, since the preparatory meet- 
ing in early 1946, is that the dominant considera- 
tion should be the scientific quality of the environ- 
ment. It is felt that the Who will attract a staff of 
high scientific attainment more readily if located 
in a place at which its staff can maintain close daily 
contact with outstanding specialists in the various 
fields of its interest. Isolation from such an en- 
vironment could well lead to stagnation. Brussels, 
Copenhagen, London, New York, and Paris, among 
places that have been considered, would appear to 
excel as scientific centers. 

Regional Arrangements 

The arrangement establishing the Interim Com- 
mission instructed it to make studies in regard to 
regionalization of the Who. Except for negotia- 
tions with the Pan American Sanitary Or- 
ganization ° leading toward integration of that 
organization as the regional organ in the Western 
Hemisphere, as provided in the constitution of the 
Who, little has been done in this field. Replies to 
an inquiry on the subject have been tabulated and 
will be presented to the Who. These include de- 
tailed suggestions as to regional structure from 
the Governments of France, India, the Union of 
South Africa, and the United Kingdom. Outside 
of the Western Hemisphere, no general pattern 
has emerged, with the exception of the Pan Arab 



"Pan American Sanitary Organization consists of the 
Pan American Sanitary Bureau and the Pan American 
Sanitary Conference and its directing council. 

436 



Health Bureau which is being looked upon as the 
possible nucleus of a regional structure in the 
Middle East area. 

Full integration of the Pan American Sanitary 
Organization must depend on the identity of 
membership. Negotiations have progressed, but 
they have not reached a final stage. Of the 21 
members of the Pan American Sanitary Organiza- 
tion, only Haiti had become a member of the Who 
at the time of the fifth session of the Interim Com- 
mission. Negotiations with the competent author- 
ities of the Pan American Sanitary Organization 
had shown agreement between the Interim Com- 
mission and the Pan American Sanitary Organiza- 
tion on the basic points involved in integration. 

Pending acquisition of full membership in the 
Who by the other American republics, the Interim 
Commission authorized the Executive Secretary to 
make a working arrangement with the Director 
of the Pan American Sanitary Bureau whereby the 
Bureau will serve as the regional office of the In- 
terim Commission. Such an arrangement between 
the Director General of the Who and the Director 
of the Pan American Sanitary Bureau might also 
serve as the first step in full integration of the Pan 
American Sanitary Organization as the regional 
organization of the Who. 

The Interim Commission will make no recom- 
mendations to the World Health Assembly con- 
cerning regional organization. 

Relations With Organizations 

As part of its planning for the World Health 
Organization, the Interim Commission has taken 
active steps to develop a pattern of relationships 
between the Who and intergovernmental and 
nongovernmental organizations with common or 
related interests. It has negotiated several agree- 
ments which it will lay before the World Health 
Assembly for its consideration and approval. For 
the most part these agreements follow the standard 
patterns which have been developed between spe- 
cialized agencies and between these agencies and 
the United States. 

International Governmental Organizations 

The Interim Commission has been impressed by 
the need for, and value of, close cooperation 
through liaison and joint conrmiittees with : 

The United Nations — with particular regard to 
social problems, such as venereal disease, popula- 
tion problems, statistical activities, public rela- 
tions, and administrative and financial matters; 

The Food and Agriculture Organization of the 
United Nations — with particular regard for nutri- 
tion, rural hygiene, and health conditions retard- 
ing agricultural production, such as malaria; 

The International Labor Organization — with 

Department of State Bulletin 



particular regard to industrial hygiene, housing, 
and accident prevention; 

Tlie International Civil Aviation Organiza- 
tion — with particular regard to the spread of dis- 
ease through air travel and the physiology of 
flight; and 

The United Nations Educational, Scientific and 
Cultural Oi'ganization — There is a particularly 
broad community of interest between the Who 
and UNESCO. The Interim Commission is at 
present working closely with Unesco in the de- 
velopment of the health aspects of the Unesco 
field science stations project, the Hylean Amazon 
basin project, and the fundamental education pilot 
project in Haiti; in the coordination of medical 
abstracting and the establishment of a permanent 
bureau for the coordination of international con- 
gresses in medical and related fields. In the course 
of working together in an intimate fashion, the 
two agencies are attempting to develop an agree- 
ment which will go beyond the standard inter- 
agency agreements by including, in general terms, 
a definition of the boundaries of interest between 
the two agencies. It is expected that such an 
agreement will be ready for action by the World 
Health Assembly. 

The Interim Commission has been fully alive to 
the fact that other specialized agencies have legiti- 
mate interests in the field of health. It has recog- 
nized that the objectives of the Who can be ob- 
tained with greater speed if such agencies are 
encouraged to take an active interest in the health 
problems related to their major interests. The 
Commission feels that the Who as "the specialized 
agency in the field of health", as defined in the 
Who constitution and included in the agreement 
approved by the General Assembly of the United 
Nations, has a distinct responsibility for providing 
technical advice and assistance and in performing 
a coordinating function in the interagency attack 
upon health problems. It is in this light that it 
foi'esees active cooperation and intimate relation- 
ships with the numerous agencies and commissions 
which have been and are being developed within 
the United Nations structure. 

Nongovernmental Organizations 

On the national plane, voluntary agencies have 
been of the highest importance in the advance of 
public health. More often than not they lead the 
way in the development of new methods of attack 
upon disease and in the development of new ad- 
ministrative approaches to health problems. Thus 
far, on the international plane, the numerous vol- 
untary international organizations which exist in 
fields related to health have not had the same spark 
of life or exhibited the same leadership. During 
the war, the work of these organizations was seri- 
ously impeded. Now, however, as a result of the 

April 4, 1948 

782492—48 2 



greatly increased force behind internationalism, 
particularly the broader thinking of Americans 
and American agencies, there is a new drive within 
these organizations, giving pi-omise of their in- 
creasing initiative and effectiveness. The Interim 
Commission has recognized that the Who would 
do well to support this development. 

The Commission itself has not entered into for- 
mal relationship with voluntary organizations, but 
has developed close working relationships with the 
International Union Against Tuberculosis, tlie In- 
ternational Union Against Venereal Disease, the 
International Congresses on Tropical Medicine 
and Malaria, the International Congress on Men- 
tal Health, the International Congress on Micro- 
biology, and others. As an example of the value 
of such relationship, one can cite the establishment 
by the Commission of a world influenza center in 
London for the world-wide study, through re- 
gional and national laboratories, of the viruses 
causing influenza in local outbreaks. This pro- 
gram IS a direct result of consultation with the 
International Congress on Microbiology and is 
considered by exports the world over as of the 
highest importance. 

The Commission is recommending to the World 
Health Assembly a mechanism whereby interna- 
tional voluntary agencies in the health field may, 
after establishment of their truly representative 
international character, become related to the Who 
and have the privilege of consultative status. It 
can be hoped that liaison will be established with 
the more important organizations on a permanent 
basis and that some of these organizations will 
establish their headquarters in close association 
with that of the Who, so that all major resources 
for the attack upon world health problems will be 
closely coordinated and mutually supporting. 
Meanwhile, as pointed out above, the Interim Com- 
mission, jointly with Unesco, is establishing as a 
first step a central bureau to assist the voluntary 
technical organizations in developing and coordi- 
nating international congi-esses in their technical 
fields. 

Absorption of Pre-existing Health Agencies 

Certain rather extensive routine operating func- 
tions of the Interim Commission have been derived 
directly from the health organizations of the 
League of Nations and the International Office of 
Public Health in Paris, both of which have been 
or are being absorbed by the Interim Commission 
on behalf of the Who. These functions have the 
solidity of international acceptance over a period 
of years. They perhaps lack the glamour of nov- 
elty but constitute a fii'm base for the new organi- 
zation. These functions include the following : 

The routine exchange of information between 

437 



nations on the occurrence of pestilential disease, 
such as cholera, plague, smallpox, and typhus; 

The administration of the international sanitary 
conventions ; 

The delineation of yellow-fever zones and ap- 
proval of yellow-fever vaccines; 

The revision of international sanitary conven- 
tion procedures; 

The development and maintenance of interna- 
tional standard preparations; 

The preparation of monographs on drugs in the 
development of an international pharmacopoeia;. 

The analysis and presentation of statistical ma- 
terial regarding the occurrence of infectious dis- 
eases; and 

The publication of bulletins, journals, fasciculi, 
and international lists covering scientific, legal, 
and statistical matters important to international 
control of disease and improvement of health. 

International Epidemic Control 

The most extensive operation of the Interim 
Commission in this field is the conduct of the inter- 
national exchange of epidemiological information 
with regard to the pestilential diseases. A world 
center is maintained in Geneva into which flows 
constantly all information concerning the occur- 
rence of these diseases. The information is sent to 
Geneva directly by many countries and from 
others, indirectly, through the Pan American 
Sanitary Bureau, the Alexandria (Egypt) 
Epidemiological Bureau, and the Singapore Sta- 
tion of the Who. The information received is 
transmitted throughout the world in a weekly 
epidemiology and vital-statistics report and, more 
rapidly, to the affected countries through telegram 
and radio. The Singapore Station maintains reg- 
ular broadcasts in which it keeps shipping con- 
stantly informed of health conditions in the many 
ports of the Far East. 

This service is of vital importance in maintain- 
ing the free movement of sea and air traffic without 
undue risk of transmission of disease. The 
epidemiological service proved its value most re- 
cently in connection with the cholera epidemic in 
Egypt when it kept tlie world continuously and 
reliably informed of the course of the epidemic. 
It was able at the same time to counter rumors that 
were serving as a serious impediment to maritime 
and air traffic. 

The experience of the Egyptian cholera epi- 
demic has indicated the need for improvement in 
the service as taken over from the League of Na- 
tions and has led to a decision to use telegraphic 
and radio means of distributing information more 
freely during emergencies. Further, as part of 
its responsibility for the administration of inter- 
national sanitary conventions, the Interim Com- 
mission has instituted an investigation of the ex- 
cessive quarantine restrictions imposed by nu- 

438 



merous countries during the panic period which 
followed immediately upon the announcement of 
the invasion of Egypt by cholera. The objective 
of this investigation is to keep disease control based 
on a solid scientific foundation and to prevent 
hysterical reactions which interfere with essential 
traffic. 

The Interim Commission has initiated studies 
with a view to modernizing international sanitary 
and quarantine measures. It has recognized that 
the content and method of international sanitary 
conventions have become obsolescent with the 
growth and increased speed of air travel. An 
expert committee on international epidemic con- 
trol has been established and charged with re- 
studying the basic requirements of disease control 
in the light of modern knowledge of disease and 
in the face of the realities of air travel. These 
studies are bein^ made in the expectation that the 
World Health Organization will discard the cum- 
bersome method of international conventions as 
a means for control of the spread of disease and 
substitute sanitary regulations adopted by the 
World Health Assembly under pertinent pro- 
vision of the constitution of the Who. Such reg- 
ulations will have the full force of conventions, 
will come into efi'ect on a wide basis more rapidly 
than is possible in the case of conventions, and 
can be revised in pace with technical progress. 
Under the constitution of the Who, such regula- 
tions become binding on member states within a 
stated period, except for such members as may 
reserve in regard to them. 

Lists of Causes of Death and Morbidity 

A highly important project which is being car- 
ried forward by the Interim Commission is the 
decennial revision of the International Lists of 
Causes of Death and Morbidity. Tliis list serves 
as the basis for the international comparability 
of statistics in the health field. At two meetings 
of an Ex)iert Committee of the Interim Commis- 
sion, this list has undergone a thorough and funda- 
mental revision which will greatly increase its 
usefulness throughout the world. Jointly with 
the French Government, the Interim Commission 
is calling a special international conference in 
Paris in April of this year to give final considera- 
tion to the list and to win for it acceptance by the 
experts of all countries. Following that confer- 
ence, the list will be put into final form and sub- 
mitted to the World Health Assembly as the basis 
for international regulations on mortality and 
morbidity statistics. It is expected that the list 
will be published by the end of 1948 in time to be 
used as a basis for accumulating data in the 1950 
censuses in many countries. 

Field-Services Program 

The largest operating program of the Interim 
Commission has been its field-services program 

Department of State Bulletin 



which has been the continuation of certain health 
function of Unrra conducted under funds 
transferred to the Commission by that organi- 
zation. 

In late 1946, it was apparent to both Unrra and 
to the Commission that a sudden cessation of the 
import:) nt health work done by Unrra would im- 
peril certain countries and constitute a danger to 
world health. In Greece, for instance, the work 
of Unrra in the control of malaria had shown 
promise of almost complete suppression of this dis- 
ease if the work could be carried on into the 1947 
malaria season. Such suppression was of the 
utmost importance to Greece in its rehabilitation, 
since the disease, uncontrolled, affects between 1 
and 3 million people annually. In China, the 
Unrra plans for rehabilitation of port sanitation 
and quarantine required activation in order to 
prevent the spread of cholera and plague from that 
endemic area to noninfected countries. Every- 
where in war-devastated Europe, medical educa- 
tion urgently required the infusion of new knowl- 
edge and modern ideas that Unrra had only begun 
to provide in the form of fellowships and study 
grants. Medical schools had been reopened, but 
faculties were seriously handicapped by years of 
isolation from the current of medical thought 
and development. There was a crying need for 
young doctors throughout Europe and it was im- 
portant that they be properly trained. 

The Commission, as a planning body for the 
Who, was not in a financial position to do this 
urgent work. The Director General of Unrra 
was acutely aware of the needs and took the lead in 
working out an agreement with the Interim Com- 
mission which placed it in a position to meet the 
most urgent demands. Pending the establishment 
of the Who, the Commission has carried on the 
program largely as it was originally conceived 
and instituted by Unrra. It has shifted emphasis 
from mission programs to fellowships and study 
tours. This was a change in emphasis which had 
been initiated by Unrra in adapting its program 
to the changing needs of the devastated countries. 

Although the field-services program has of ne- 
cessity been limited to Unrra receiving countries, 
it has given the Interim Conunission valuable ex- 
perience in the development of working relation- 
ships with governments in the strengthening of 
national health services. Much of the experience 
can be carried over into the Who as a basis for its 
work. It will be necessary, however, for the Who 
to orient its field work quite differently from the 
Unrra orientation. Wlien Unrra embarked upon 
its work, it was faced with acute devastation and 
almost complete administrative disorganization 
in the receiving countries. Its program was shaped 
by these factors. Also Unrra had large sums at 
hand, placing it in a position to provide supplies, 
as well as technical advice and assistance ; it would 

April 4, 1948 



strike hard at all the urgent problems in the coun- 
tries in which it was operating. The Who will 
have a much larger field in which to operate, all 
countries being potentially its beneficiary. At the 
same time, its financial resources will be more re- 
stricted. It will therefore be necessary for the 
Who to focus its attention upon a limited number 
of general health problems, giving assistance on a 
wide geographical basis in regard to these specific 
problems. As progress is made in the solution of 
these, emphasis can be shifted to other problems of 
general importance. 

In view of the importance of the field-services 
program as a basis for future Who work, it would 
be well to look briefly at some of the Interim Com- 
mission activities in certain of the receiving coun- 
tries. 

The Interim Commission maintains missions, 
varying in size f I'om 1 to over 30 experts, in Austria, 
Greece, China, Ethiopia, Poland, Hungary, and 
Italy. The composition and functions of these 
missions vary in accordance with the need of each 
recipient country. 

In Greece, the mission has been largely con- 
cerned with providing technical advice to the Gov- 
ernment in the control of malaria and tuberculosis. 
This has included the close supervision of wide- 
spread use of DDT both by airplane spraying in 
marsh areas and hand spraying of houses in com- 
munities throughout the malarious areas of the 
country. 

In Ethiopia, the mission has been conducting 
courses for sanitary inspectors and hospital dress- 
ers in an attempt to provide foci for the spread of 
elementary concepts of sanitation and nursing care. 

In China, where the largest mission of experts 
is maintained, the Commission is training both the 
faculties and students of the schools of medicine, 
nursing, and public health. It also provides to the 
Government technical advice concerning the con- 
trol of cholera, plague, kala azar, tuberculosis, and 
malaria, as well as advice and assistance aimed 
at the improvement of port sanitation and 
quarantine. 

In Italy, a small mission is maintained, at tue 
request of that Govermnent, to assist and advise 
in the wise use of local funds that were accumu- 
lated from the internal sale of UNRRA-supplied 
goods. This mission is working with the Italian 
Government and the Rockefeller Foundation in an 
effort to eradicate malaria-carrying mosquitoes on 
the Island of Sardinia and in other malarious 
areas of Italy. 

In Austria, Hungary, and Poland the missions 
consist of a single medical officer, serving in a 
liaison capacity. These officers assist in selecting 
and making arrangements for professional person- 
nel granted fellowships by the Who Interim Com- 
mission for foreign study. They also assist in 
arranging for visits of specialists and lecturers 

439 



and in providing current medical literature, i^eri- 
odicals, and teachint^ apparatus made available by 
the Commission. These officers also give technical 
advice and assistance on the many problems faced 
by the health authorities of these countries. 

Assistance to Yugoslavia and Finland has been 
limited to the award of fellowships, and in 
the Ukraine to the supply of current medical 
literature. 

This brief review indicates the diversity of the 
activities of the Interim Commission under its 
field-service program. 

Fellowship Program 

The aim of the fellowship program has been to 
foster the spread of medical knowledge to the 
widest possible extent and particularly to aid in 
rehabilitating public health and medical educa- 
tion in the countries to which it has been possible 
to extend aid. Essentially, one third of the field- 
services funds has been allocated for this program. 
The Who Interim Commission staff experts have 
assisted governments in the selection of fellow- 
ship candidates and in arranging study schedules 
for them. Although the universities and medical 
schools in nearly all countries receiving fellows 
are overcrowded, they, as well as hospitals, lab- 
oratories, and governmental health administra- 
tions, have cooperated consistently in providing 
training. 

The majority of fellows are experienced special- 
ists engaged in teaching at universities or hospi- 
tals; their fields of study include practically all 
the specialized medical techniques. The awards 
to this group provide for three to six months of 
study and observation, often at a number of dif- 
ferent institutions. A second group is composed 
of specialists in the technical and administrative 
public-health services ; most of these fellows are on 
leave from responsible posts in the health admin- 
istrations of their own countries. Their studies, 
covering periods of three to six months, include 
advanced work in universities and observation in 
public-health agencies and field projects. A lim- 
ited number of fellowships for a full year of study 
are awarded to yomig men and women who are 
preparing for careers in various branches of public 
health and nursing. In view of the necessary 
emphasis placed on the rehabilitation of medical 
schools during this period of the program, a large 
number of fellowships have been in basic medical 
sciences and clinical fields. There have been 175 
fellowships awarded in Europe.' 

'Fellowships have been distributed in the following 
fields: public-health administration, 28; cancer, 12; vene- 
real disease, 7; tuberculosis, 6; child health, 12; clinical 
specialties, 56; mental health, 11; basic medical sciences, 
35; public-health nursing, 2; dentistry, 3; and legal medi- 
cine, 3. 

440 



Fellows have been placed largely in the United 
States, Canada, England, and Switzerland. 

Medical Literature 

Assistance in the selection and procurement of 
medical books and periodicals has been given to 
eight of the eleven countries which have requested 
such aid. Members of the Who Interim Commis- 
sion staff have taken part in this highly specialized 
task, which is essential to the restoration of medical 
education in countries cut off from scientific devel- 
opments during the war. 

The World Health Assembly 

As the meeting of the World Health Assembly 
approaches, one can look back upon the develop- 
ment and international acceptance of a broad Who 
constitution, followed by a long interim period 
during which useful work has been done and valu- 
able experience gained. 

The World Health Assembly will have before it 
recommendations based upon this experience. 
These recommendations are being submitted to the 
World Health Assembly by the Interim Commis- 
sion in the anticipation of lively and fruitful dis- 
cussions, not as a finished product for rubber 
stamping by the Assembly. It will be necessary for 
the Assembly to give careful and detailed study to 
all elements of the proposed program in order to 
mature the recommendations and fit them into a 
sound budget structure, scaled to fit the available 
funds. The program adopted by the Assembly 
will cast the die, shaping the Who for many years 
to come. Other matters, in addition to the general 
program which will be before the Assembly re- 
quiring exploration, and in most cases decision, are 
the pattern of relationships between the Who and 
other organizations; the regional pattern of the 
Who, with particular reference to the integration 
of the Pan American Sanitary Organization as a 
regional organization of the Who ; the location of 
Who headquarters ; and the selection of a Director 
General. 

The World Health Assembly will be composed of 
the health leaders of the countries constituting the 
organization. The International Health Confer- 
ence in New York, which was climaxed by the sign- 
ing of three important international instruments, 
and the successful course of the Interim Commis- 
sion since that time have confirmed the historical 
fact that, in the field of health, nations can meet 
together in a spirit of friendship and understand- 
ing and arrive at firm decisions which are carried 
through to an effective conclusion for the better- 
ment of mankind. The first World Health Assem- 
bly' can be expected to be another example of this 
historical fact. It will be the first in a series of 
annual World Health Assemblies, which can be 
an imjiortant focus of the world's hope of peace 
and life. 

Department of State Bulletin 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



Completion of ITO Charter Hailed as Hope for Troubled World 



STATEIVIENT BY THE DEPARTMENT OF STATE 



[Released to the press March 25] 

The Department of State announces the sign- 
ing of the final act of the United Nations Confer- 
ence on Trade and Employment at Habana, mark- 
ing the completion of a charter for an Interna- 
tional Trade Organization. The representatives 
of about GO nations participated in the preparation 
of the final draft of the charter. 

The charter is a momentous achievement and one 
from which the whole world will benefit. It is the 
product of more than two years of constant and 
conscientious labor by experts and representatives 
of the many nations who worked long and weary 
hours to reach agreement on a code of international 
economic activity which would be acceptable to 
all. First, the United States issued in December 
1945 its Proposals for the Expansion of World 
Trade and Employment ' which suggested the for- 
mation of an International Trade Organization. 
This was expanded by the United States into a 
Suggested Charter in September 1946.^ The fol- 
lowing month a Preparatory Committee of 18 na- 
tions established by the United Nations modified 
this draft at London; in February 1947 further 
changes were made at a meeting at Lake Success; 
and in August 1947 a fourth draft was drawn up at 
Geneva. Finally, at Habana from November 21, 
1947, to March 24, 1948, the present charter was 
prepared. Through this series of conferences the 
proposed charter received the fullest possible con- 
sideration and the utmost care in its formulation. 

The charter will now be submitted to the various 
countries for acceptance according to the consti- 
tutional procedures established by each country. 
In the United States it will be submitted to the 
Congress for approval. 

The completion of the charter is a clear and un- 
mistakable demonstration of the ability of a major 
part of the world to work together for the common 
good. It goes far beyond study and recommenda- 
tion. It contains numerous and detailed commit- 
ments which are mutually beneficial to the mem- 
bers. It is broader in scope and greater in detail 
than most, if not all, previous agreements between 
nations on economic relations. 

Many of the changes and modifications made in 
subsequent drafts of the charter were suggested 

April 4, 1948 



by interested groups in this country. The charter 
includes provisions recommended by the Finance 
Committee of the United States Senate, by busi- 
ness, labor, farm, and other organizations. As a 
result the charter is a live and meaningful docu- 
ment concerned with practical rules for encourag- 
ing the flow of international trade. 

The main objective of the charter is the raising 
of living standards throughout the world. It pro- 
poses to do this by promoting the expansion of 
international trade on a basis of multilateralism 
and general nondiscrimination, by fostering the 
growth of production and employment, and by 
encouraging the economic development of back- 
ward areas. Its substantive chapters set forth a 
series of international commitments with respect 
to national policies regarding tariffs, customs ad- 
ministration, hidden restrictions on trade, import 
and export quotas, exchange controls, preferences 
and other forms of discrimination, state trading, 
subsidies, restrictive business practices in inter- 
national trade, intergovernmental commodity 
agreements, the international aspects of domestic 
employment policies, economic development, and 
international investments. Other chapters outline 
the structure, functions, and procedures of the 
International Trade Organization. 

The chapter on employment and economic ac- 
tivity emphasizes the fact that employment, pro- 
duction, and demand for goods and services are 
not only of domestic concern but are necessary for 
the well-being of all countries. Members agree 
to take action designed to achieve and maintain 
full and productive employment through measures 
appropriate to their political, economic, and social 
institutions. 

The chapter dealing with economic develop- 
ment and reconstruction was, as it had been in the 
previous conferences on the charter, one of the 
most hotly debated sections at the Habana con- 
ference. Under the provisions of this chapter, 
members agree to cooperate with other countries 
through the medium of international agencies for 
the purpose of promoting general economic devel- 
opment as well as the reconstruction of those coun>- 
tries whose economies have been devastated by the 

' Department of State publication 2411. 
' Department of State publication 2598. 

441 



THE ON/TED NATIONS AND SPECIAUZBD ACBNCIBS 

war. The chapter specifies the principles which 
shall apply to the promotion of economic develop- 
ment and reconstruction and the treatment of 
international investment. It indicates the condi- 
tions and specifies the procedures under which 
particular measures, otherwise inconsistent with 
the commercial-policy provisions of the charter 
and with trade agreements made pursuant thereto, 
may be used to promote economic development 
and reconstruction'. Similarly, the chapter deline- 
ates the particular conditions and ijrocedures under 
which preferential agreements for economic de- 
velopment and reconstruction may be employed. 

Almost a third of the charter is devoted to pro- 
visions on commercial policy. Under the provi- 
sions of the chapter dealing with this subject, 
members agree to extend to each other general 
most-favored-nation treatment and to imdertake 
negotiations directed toward the reduction of 
tariffs and the elimination of preferences on a 
reciprocal and mutually advantageous basis. In 
general, the charter also prohibits the imposition 
of discriminatory internal taxes and regulations 
on foreign products. In view of the peculiar 
features of moving pictures as a commodity in in- 
ternational trade, special provisions were included 
to deal with cinematographic films. 

Since quantitative restrictions on imports and 
exports can have an even more limiting effect than 
tariffs, taxes, or other similar charges, it was agreed 
that basically such quantitative restrictions would 
not be allowed. It was recognized, however, that 
under certain conditions and with regard to certain 
commodities it might be advisable to allow excep- 
tions. The permitted exceptions are carefully 
enumerated and circumscribed, with safeguards to 
prevent their possible abuse. These exceptions in- 
clude the use of import quotas on agricultural and 
fisheries products if they are necessary in connec- 
tion with governmental programs restricting 
domestic marketing or production. Import quotas 
are also permitted for the purpose of safeguarding 
a member's balance of payments. 

Safeguards are also included to insure that the 
interests of other members are not unreasonably 
prejudiced by the indiscriminate use of subsidies. 
A modification of considerable interest to the 
United States was made in the provisions dealing 
with export subsidies. Such subsidies may now be 
used without the prior approval of the organiza- 
tion, as had been previously required under the 
Geneva draft over the objection of the United 
States. They, however, must not be employed by 
a member to acquire more than its equitable share 
of world trade in the particular commodity. 

Since state trading has become of growing im- 
portance in recent years, the charter has included 
a section dealing with this aspect of commerce. 
This section provides that countries carrying on 
trade through state enterprises should conduct 



442 



their commerce in accordance with the general 
principles of nondiscriminatory treatment which 
are applicable under the charter to private trade. 
In particular, state-trading enterprises are re- 
quired to make their purchases and sales solely in 
accordance with conmiercial considerations and to 
give the enterprises of other member countries 
adequate opportmiity to compete for such pur- 
chases or sales. 

The charter also contains general commercial 
provisions dealing with freedom of transit, anti- 
dumping and countervailing duties, customs valu- 
ation, documents and other formalities in connec- 
tion with importation and exportation, marks of 
origin, and the publication and administration of 
trade regulations. These provisions are designed 
to reduce or eliminate the many burdensome re- 
strictions imposed on trade through administra- 
tive devices, including the so-called "invisible 
tariffs", which often prove to be more of an im- 
pediment to trade than the usual form of tariffs. 

A final section of the chapter on commercial 
policy contains a number of special provisions. Of 
particular importance are the provisions which 
permit a member to withdraw tariff concessions 
in the event that they should lead to such relatively 
increased imports as to cause or threaten serious 
injury to domestic producers. This is the so-called 
"escape clause" which the United States has in- 
cluded in previous trade agreements, notably the 
general agreement on tariffs and trade recently 
concluded at Geneva, to insure that domestic in- 
terests are adequately safeguarded. Also of in- 
terest in this section are provisions permitting the 
formation of customs unions and similar arrange- 
ments. Finally, the section lists a number of gen- 
eral exceptions to the obligations of the charter 
so as to permit measures for the protection of pub- 
lic morals, health, safety, and the like and to meet 
certain temporary exigencies arising as a result of 
the war, such as measures for the acquisition or 
distribution of commodities in short supply. 

Closely related to the commercial-policy pro- 
visions of the charter is the chapter on restrictive 
business practices. This chapter requires that 
members shall take appropriate measures to pre- 
vent business practices, whether on the part of 
private or public enterprises, which restrain com- 
petition and foster monopolistic control whenever 
such practices have harmful effects on the expan- 
sion of production or trade. The charter sets up 
various consultative and investigative procedures 
to implement this obligation for the prevention of 
restrictive business practices. 

The charter recognizes that primary products, 
such as agricultural commodities and minerals, are 
sometimes subject to special difficulties which ne- 
cessitate special treatment of the international 
trade in such commodities through intergovern- 
mental agreements. The charter therefore defines 

Department of Slate Bulletin 



the general principles which are to govern inter- 
governmental commodity agreements, the circum- 
stances under which they are to be used, and the 
procedures for developing and administering them. 
These provisions seek to safeguard the interests 
both of producer and consumer countries and to 
afford an effective solution to the pai'ticular com- 
modity problem involved. 

The remaining articles of the charter deal with 
the structure and functions of the International 
Trade Organization, procedures for the settlement 
of differences, and a number of general matters, 
including relations with nonmembei'S, general ex- 
ceptions for national security reasons, methods of 
amending the charter, procedui'e for withdrawal of 
a member from the Organization and for termi- 
nation of the charter, and requirements to be met 
for entry of the charter into force. The principal 
organs of the Organization will consist of a Con- 
ference, an Executive Board, and a Secretariat, in- 
cluding a Director-General and his staff. Differ- 
ences may be settled by consultation or arbitration 
between the members, or by reference to the Execu- 
tive Board or Conference, or to the International 



THE UNITED NATIONS AND SPBCIAUZED AGENCIES 

Court of Justice under certain circumstances. The 
charter prohibits a member from entering into a 
preferential arrangement with a nonmember which 
prevents the latter from according to other mem- 
bers any benefit of such an arrangement. In 
general, members are prohibited from according 
to nonmembers treatment which, being more fa- 
vorable than that accorded to other members, 
would injure the economic interests of the latter. 
Members are free under the charter to discrimi- 
nate against nonmembers if they so wish. 

The charter is to enter into force when a ma- 
jority of the countries which signed the final act 
of the Habana conference have approved the docu- 
ment. However, if a majority fail to approve at 
the end of one year after the signature of the final 
act, then the charter may come into force when- 
ever 20 countries approve the charter. If the 
charter has failed to come into force by September 
30, 1949, those countries which have approved the 
charter may consult among themselves as to 
whether and on what terms to bring the charter 
into force. 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House March 24] 

I am deeply gratified that representatives of 
more than 50 nations are signing today in Habana 
the charter for the International Trade Organiza- 
tion. This charter will now be sent to the gov- 
ernment of each nation for ratification. 

The charter for the International Trade Organi- 
zation is a code of fair dealing in international 
trade. Member nations agree to work out mutually 
beneficial employment policies and ways of pro- 
moting economic development. The charter pro- 
vides for limitations upon cartels and defines the 
proper scope of intergovernmental commodity 
agreements. It establishes standards for the con- 
duct of international trade. The charter thus deals 
comprehensively with economic problems which 
heretofore have been dealt with piecemeal, if at 
all, in international agreements. 

The charter has immediate significance to the 



efforts of the nations now working to repair the 
devastation and dislocation caused by World War 
II. Acceptance of the charter, in the spirit in 
which it has been framed, will stimulate the ex- 
pansion of international trade upon which world 
prosperity depends. By supporting the growth of 
a prosperous international trade, this code of fair 
dealing will contribute greatly to our efforts for a 
just and lasting peace. 

The development of this charter is an example 
of the finest type of international cooperation. 
The action in Habana today marks the conclusion 
of one of the most difficult and important tasks ever 
undertaken at international conferences. 

This achievement demonstrates that many coun- 
tries can work together through the United Na- 
tions to reach sound agreement on complex inter- 
national issues. 



STATEMENT BY GEORGE C. MARSHALL 
Secretary of State 



[Released to the press March 25] 

It is gratifjnng that the United Nations Con- 
ference on Trade and Employment has succeeded 
in producing a charter for an International Trade 
Organization. 

Completion of the charter follows two years and 
more of intensive effort, including four meetings 
held under the auspices of the United Nations, to 
formulate a generally acceptable code of fair prac- 

Apri! 4, 1948 



tice in matters affecting international commerce. 
Representatives of more than fifty nations have 
now produced a document which, when approved 
by the governments concerned, will bring into 
being an organization dedicated to these purposes. 
In the development of the charter, widely diver- 
gent interests and points of view had to be recon- 
ciled. The present economic difficulties and special 
situations of many of the countries represented at 

443 



THE UNITED NATIONS AND SPECIAUZBD AGENCIES 

Habana added to the difficulty of this task. The 
fact that agreement was finally made possible in 
these circumstances demonstrates that the most 
difficult common problems are susceptible of coop- 
erative solution where there exists a common deter- 
mination to succeed. 

The course and outcome of the Habana confer- 
ence also demonstrate the great immediate im- 
portance attached to both the ends and the means 
set forth in detail in the charter. Participating 
governments sent some of their leading men to the 
meetings and were intensely concerned, to the end 
of the negotiations, with the exact final terms of 
agreement. Chaotic economic conditions at present 
brought home the vital need for a statement of 
long-range objectives and for agreement upon the 
fair trade policies to be used in seeking these ob- 
jectives. The charter for the Ito is an answer to 
both needs. 

The charter represents agreement on basic eco- 
nomic policies never before treated in a single gen- 
eral international agreement. It recognizes the 
degree to which national action over a wide area 



affects the economic well-being of other nations. 
Employment, economic development, international 
trade policy, intergovernmental commodity agree- 
ments, and cartel activity are dealt with, in each 
case with a view to assuring that national and 
international action in these fields will be directed 
toward a general raising of living standards 
throughout the world. The charter not only spells 
out in considerable detail principles to govern 
world trade but establishes procedures for making 
them effective. It provides for the establishment 
of the International Trade Organization to be the 
agency responsible for the administration of the 
provisions of the charter. The Organization will 
furnish a forum for discussion and consultation 
regarding solution of international problems of 
trade and employment. 

The acceptance of the charter will affirm the 
common economic goals of world recovery, point 
the way toward those goals, and thus contribute 
to progressive expansion of world production and 
consumption through a growing and mutually 
profitable trade among all members on a fair basis. 



STATEMENTiBYiWILLIAM L. CLAYTON' 
Chairman, U. S. Delegation 



This is a day for history. There have been other 
conferences on international economic affairs. 
But none of them has undertaken a task so difficult 
as the one that is completed here today. None of 
them has come to an agreement concerning so many 
vital economic interests of so many states. None 
of them has produced a document so comprehen- 
sive as the Habana charter for world trade. Few, 
if any of them, have attained so notable a measure 
of success. 

This is a momentous day for the United Nations. 
It marks the culmination of an enterprise that had 
its beginnings in the declarations of policy that 
were made in the Atlantic Charter in 1941 and in 
article VII of the mutual aid agreements in 1942. 
It marks the completion of three years of careful 
planning and almost two years of continuous nego- 
tiations. It marks tlie embodiment in a charter, 
produced by more than 50 nations, of the prin- 
ciples contained in the Proposals that were pub- 
lished by the United States in 1945.^ It marks the 



' Made on Mar. 2.3, 194S, at final plenary session of U.N. 
Conference on Trade and Employment and released to the 
press on the same date. 

' Proposals for Expansion of World Trade and Employ- 
ment (Department of State publication 2411). 



end of four months of hard work here in Habana. 
And, as we look upon the result of these labors, we 
find that the time and the effort of all the many 
countries who have contributed to the charter of 
Habana have been well spent. 

The charter is complicated and difficult. It is 
long and detailed and technical. But behind its 
many chapters and its scores of articles there lies 
a simple truth. The world will be a better place 
to live in if nations, instead of taking unilateral 
action without regard to the interests of others, 
will adopt and follow common principles and enter 
into consultation through an international organi- 
zation when interests come into conflict. And this, 
throughout the entire range of trade relationships, 
is what the signatories of the charter agree to do. 
Each will surrender some part of its freedom to 
take action that might prove harmful to others, 
and thus each will gain the assurance that others 
will not take action harmful to it. This may well 
prove to be the greatest step in history toward 
order and justice in economic relations among the 
members of the world community and toward a 
great expansion in the production, distribution, 
and consumption of goods in the world. 

Department of State Bulletin 



The International Trade Organization will deal 
with questions that nations have always held to be 
of the greatest importance. It will seek solutions 
for problems that have all too often been a source 
of irritation and ill-will. It will serve as a center 
where the peoples of the world, with their diversity 
of economic interests, can meet on common 
gi'ound. The Ito will substantially complete the 
structure of international economic cooperation. 
It will provide a necessary supplement to the 
work of the International Bank for Reconstruction 
and Development, the International Monetary 
Fund, the Food and Agriculture Organization, 
and other specialized agencies. It will add 
strength to the United Nations itself. 

It is difficult to realize that the charter designed 
to bring this Organization into being is now com- 
pleted. For we have been told, again and again, 
throughout these years, that it could not be done. 
The pi'ogram was too ambitious. It would in- 
volve too many commitments. Circumstances 
and systems were too diverse. Fair dealing, in 



THB UNITBD NATIONS AND SPBCIAUZED AGENCIES 

international trade, was old-fashioned and im- 
practical. The disorganization caused by the war 
was too great. The problems of reconstruction 
were too pressing. Nations were too much pre- 
occupied with immediate difficulties. They would 
not look to the future. The future, in any case, 
was too uncertain. It could not be done. 

It has been done ! 

The charter is now ready for submission to the 
legislatures of the participating nations for ap- 
proval. 

This conference has afforded the world an im- 
pressive demonstration of the ability of nations 
to work out a comprehensive agreement on mat- 
ters of vital importance under conditions of great 
difficulty. Interests have differed at Habana, but 
efforts to understand, to explain, and to agree 
have never failed. We have all gained in Icnowl- 
edge and understanding. We have achieved, 
through these years of working together, a volun- 
tary agreement for our mutual benefit. In this 
achievement, a troubled world may well take hope. 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN > 
U.S. Representative at the Seat of the United Nations 



I welcome the signing of the charter of the Inter- 
national Trade Organization as I would welcome 
the signing of a treaty of peace. The Ito is, in 
fact, in the nature of a treaty of economic peace, 
ending more than two decades in which protection 
and reprisal were far more common than coop- 
eration. The full significance of the step cannot 
be appreciated without recalling the taritf rivalry 
of the 1920's, the restrictive nationalism of the de- 
pression years, the distortions caused by Nazi and 
Fascist trade aggression, and the tight controls 
imposed on almost all economies during the last 
great war. It was a trend relieved only by this 
country's sustained effort toward tariff reduction 
under the reciprocal trade-agreements program. 

Thus the Ito is a turning point. It is the inter- 
national organ, in the United Nations pattern, 
through which the world will work cooperatively 
to cut away the accumulated snarls which have en- 
tangled peacetime international trade. 

The importance of this event in forwarding the 
interests of political peace is self-evident. As the 
Ito functions effectively, nations will be able to 
exploit more fully their natural economic ad- 
vantages of geography, resources, and skills and 
to develop industrially. Workers and consumers 
will reap the benefits in increased employment and 

April 4, J 948 



higher standards of living. The Ito influence on 
the flow of international trade can be expected to 
aid also in achieving international monetary sta- 
bility. In short, commercial frictions are dimin- 
ished, and energies can increasingly be devoted to 
peaceful pursuits. 

Hand in hand with the Ito goes the reciprocal 
trade-agi'eements program, now up for renewal in 
Congress. The Ito charter pledges member states 
to negotiate for the reduction of tariffs and the 
elimination of trade preferences in much the same 
way that the United States, almost alone, has pur- 
sued reductions over the last 14 years. Conse- 
quently, the Reciprocal Trade Agreements Act is 
the essential vehicle for carrying out Ito objectives 
and achieving our own aims under the Ito charter. 

Moreover, extension of the act by Congress would 
be evidence of the good will of the United States 
toward world trade expansion. It would offer to 
the trade of other countries the prospect of enter- 
ing the American market, but only m return for 
concessions providing wider markets for American 
goods. It would stimulate the expansion of com- 
merce, increase production, and stabilize employ- 
ment. 



' Made on Mar. 24, 1948, and released to the press by the 
U.S. Mission to the U.N. on the same date. 

445 



U.S. Position in tlie United Nations Regarding Cliilean Complaint 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN > 
U.S. Representative in the Security Council 



Mr. President: My speech will not be long. 
The Council has before it charges against the 
Soviet Union and against the present rulers of 
Czechoslovakia. In the main, they allege inter- 
ference by the Soviet Union in various ways in 
the affairs of Czechoslovakia, including the threat 
of force and the support which the Soviet Union 
has rendered to the Communist minority in its 
disruption of the Government of Czechoslovakia. 

My Government views these charges with con- 
cern. It feels that the Security Council has an 
obligation to consider these charges with care. The 
Council has heard the Representative of Chile and 
Dr. Papanek. Many points have been made on 
which we should have clarification. We have yet 
to hear anything which amounts to an answer to 
any of the charges. The Ukraine's Representative 
yesterday did not answer. The distinguished 
Representative of the Soviet Union today has not 
answered. The Ukrainian Representative devoted 
all of his discourse to an attempt to draw a red 
herring across the whole situation by making a 
mass of unsubstantiated and fanciful allegations 
about the conduct of others, some of which were 
directed toward my Government. This could not 
help to determine the question now before the Se- 
curity Council. Today the distinguished Repre- 
sentative of the Soviet Union interprets the con- 
duct of the United States as crude interference in 
the internal affairs of other couniries and other 
states, as blackmail and bribery; even charges of 
incitement to treason against Czechoslovakia by 
the United States. 

Well now, Mr. President, if that were so — if it 
were correct — if we, the United States, were will- 
ing to recognize a semblance of truth in these 
charges, I affirm that it could not convince the 
unfortunate and unhappy people of Czechoslo- 
vakia that the charges against the rulers of the 
Soviet Union are spurious. The poor people of 
Czechoslovakia are redeemed from bondage by 
being told that other peoples have suffered from 
indirect aggression. However, such fantastic 
stories about the United States have been told 
throughout my attendance upon the General As- 

' Made before the Security Comicil on Mar. 23, 1948, 
and released to the press by the U.S. Mission to the United 
Nations on the same date. 

446 



semblies and Security Council meetings of the 
United Nations. And it has always been obvious 
to all the world why such statements were made 
and that they are propaganda of the arbitrary 
rulers of the Russian people. They have not 
changed any since the first time they were uttered. 
They are just the same as ever and they are un- 
worthy of a detailed answer. 

The main point that interests us as a responsible 
body of tliis great international institution is to 
apply the test to such conduct that it deserves and 
ask the question : wherein do you find any answer 
whatever to the charges that are revealed here, 
that the Soviet Union has reduced the good people 
of Czechoslovakia to slavery ; that their great sys- 
tem of democracy has been turned topsy-turvy; 
and that their economic structure has been so dis- 
rupted already that freedom of acquiring and 
holding property is now destroyed ? 

Probably the Representative of the Ukraine has 
not been in so favorable a position as the doormen 
and the cowboys of the United States of America. 
I am certain that the distinguished Representa- 
tive of Russia does not have the opportunity that 
the very well-informed taxi driver in the city of 
Washington or in the city of New York has to have 
knowledge about the external affairs of the United 
States. But his comment, which was intended to 
be witty, operates as a great compliment to the 
democratic system of the United States, in which 
taxi drivers and doormen and cowboys can know 
and have something to say about the external 
affairs of their beloved country. 

Now, there is one witness — that is, he might be a 
witness — of the actual facts in Czechoslovakia. 
He represents the present rulers of the inhabitants 
of Czechoslovakia, and I do not see him sitting 
here at this "horseshoe". 

I assume the Czechoslovakian Representative 
will say that we are dealing with a domestic mat- 
ter, but how does he explain the coincidence of the 
arrival in Prague of Deputy Soviet Foreign Min- 
ister Zorin immediately preceding the crisis? 
INIembers of the Council will realize that it was not 
in character for a Deputy Foreign Minister of the 
Soviet Union to travel to other countries on busi- 
ness such as distribution of wheat. On the con- 
trary, it is customary for representatives of satel- 

Department of Sfafe Bulletin 



lite states to be summoned peremptorily to Mos- 
cow. Also, members of the Council will recall a 
similar arrival of another Deputy Foreign Min- 
ister of the Soviet Union, Mr. Vyshinsky, in Bu- 
charest at the time developments occurred in Eu- 
mania not at all unlike those which we are now 
discussing in Czechoslovakia. 

The Council, therefore, is fully justified in in- 
quiring into what Mr. Zorin ma}' have done in 
Prague in addition to or rather than discussing 
wheat. We should know if he held, as charged, 
discussions with Prime Minister Gottwald and 
other leaders of the Communist Party and if, in 
these discussions, he in effect directed develop- 
ments. Is the Eepresentative of Czechoslovakia 
in a position to deny that Mr. Zorin encouraged 
the Communists and promised them assistance? 
It would also be interesting to know whether, as 
alleged, Mr. Zorin was refused an audience by the 
President of Czechoslovakia and, if so, what the 
reason for this refusal may have been. 

The visit is in sharp contrast to the procedure at 
the time the Czechoslovakian Government was 
forced to reverse itself in the matter of participat- 
ing in the European Recovery Program conference 
in Paris. This talk about the desire for economic 
independence does not fit the facts as the Security 
Council knows them. At that time the Prime 
Minister and Foreign Minister of Czechoslovakia 
were summoned to Moscow. In the light of that 
occurrence and the humiliating reversal of position 
which the Czechoslovakian Government was forced 
to announce, can the Czechoslovakian Representa- 
tive assert that his country has been free from ex- 
ternal pressure ? Can he assert, as the Representa- 
tive of the Soviet Union asseited today, that their 
failure to cooperate in the European Recovery Plan 
was of their own volition, when that great demo- 
cratic Government that preceded these rulers 
chose to enter into the arrangement with the other 
representative countries and then were forced to 
reverse their course ? Also we have heard the state- 
ment that the Czechoslovakian Government has 
been forced to relinquish all control over the ura- 
nium mines in Czechoslovakia, and we have heard 
the statement that no Czech is allowed to have any- 
thing to do with the operation of these mines. If 
this is true, the Council is entitled to hear the 
Czechoslovakian Representative attempt to recon- 
cile this situation with the position that thei'e has 
been no foreign pressure on Czechoslovakia. 

There is also a reference made in one of the 
statements to the fact that the Minister of Trade 
made a public statement to the effect that the Com- 
munists owed the victory of their coup (Vetat 
primarily to the Soviet Union and that the press 
statement reproducing this public statement was 
later corrected to leave this passage out. It would 
be most interesting if the Czechoslovakian Govern- 
ment would inform the Security Council whether 

Apri/ 4, J 948 



IHl UNITED NATIONS AND SPECIALIZED AGENCIES 

the Minister of Trade made that statement on 
behalf of the present rulers of Czechoslovakia. If 
so, to what aid from the Soviet Union was the 
Minister referring? It might also enlighten the 
Council to be informed as to the reasons for with- 
drawing the original press statement. 

We have a series of charges relating to the claim 
that the Communist minority has by a coup d'etat 
taken control of the machinery of the state. On 
the other hand, we have the contrary claim that all 
that has happened has been in accordance with the 
will of the Czechoslovakian people and is therefore 
an internal matter with which we cannot deal. 

In this connection, the Representative of the new 
Czechoslovakian Government released a statement 
to the press yesterday giving the position of his 
Government with regard to the issues before the 
Security Council. This statement raised certain 
additional questions to which the Council would, 
I imagine, be glad to have the answers. The allega- 
tion was made that the developments which took 
place in Czechoslovakia in February resulted from 
the deviation of certain political parties from the 
ideas for which the best Czechoslovakian patriots 
fought during the terrible years of German occu- 
pation and from the abandonment of the principles 
on which the Czechoslovakians based the building 
of their liberated country. Is it the position of the 
new Czechoslovakian Government that the Com- 
munist Party alone of all the political parties 
which made up the National Front before February 
is true to the ideals of democracy and freedom 
which had been the mainstay of the Czechoslovak 
people for hundreds of years? If this is the case 
it might be interesting to hear the Czechoslovakian 
Government's exi^lanation of the necessity for the 
sudden change from the policy of traditional 
Czechoslovakian democracy to the policy of a 
police state. 

The allegation was also made to the press that 
the Czechoslovakian crisis was settled according 
to constitutional principles and parliamentary 
practice. Is it consistent with the Constitution of 
Czechoslovakia for the present rulers to deprive 
regularly elected members of Parliament of their 
parliamentary immunity and to remove them from 
office, or to dismiss judges and other high officials 
of the Government who disagree with them? 

We would be glad to have information concern- 
ing the charges which have been made before us. 
Do the inhabitants of Czechoslovakia welcome the 
domination of Russian-trained officials? Is every 
influential citizen of Czechoslovakia regarded as a 
traitor or as "a person who betrayed his country", 
solely because he deviates from the ideas of the 
present officials ruling the inhabitants? 

It is charged that President Benes has been pre- 
vented from speaking to the people of Czechoslo- 
vakia and that three separate speeches prepared by 
him were censored by the present rulers of the peo- 

447 



THE UNITED NATIONS AND $PBCIALIZED AGENCIES 

pie. It would be useful to know whether this state- 
ment is accurate and, if so, the reasons for the 
decision of the Government to refuse the President 
facilities for making these speeches publicly. If 
these allegations are not true, it would be helpful 
if some explanation could be given to the Security 
Council as to why the President has not made a 
statement to his people at this time of crisis. 

Czechoslovakia was a nation which understood 
democracy and a country in which democratic 
principles and procedures prevailed. If, as the 
Czechoslovakian Kepresentative has asserted to the 
press, the recent developments were spontaneous 
internal developments, how can he reconcile that 
assertion with actions which were taken by the 
Communist minority, such as breaking up meetings 
of other established parties, the arrest of opposi- 
tion jjolitical leaders, the expulsion from univer- 
sities of well-known professors, the imposition of 
a complete censorship on the press and radio of the 
country ? Why have editors of leading Czechoslo- 
vakian papers disappeared ; why have leaders in all 
walks of Czechoslovakian life fled; why have a 
number of Czechoslovakian diplomatic representa- 
tives abroad resigned ; why did the Foreign Minis- 
ter of Czechoslovakia commit suicide; and, I re- 
peat, why has the President of Czechoslovakia 
remained silent? 

Too much has happened which is not in character 
with the Czechoslovakian people and Czechoslo- 
vakian tradition. Too much has happened which 
bears a striking similarity to what happened in 
other countries for the Security Council to be 
satisfied with perfunctory or categorical denials or 
with further red herrings. The Council deserves 
and should receive from the Czechoslovakian 
Kepresentative the fullest explanation with respect 
to the points which I have raised. We should also 
hear what the Representative of the Soviet Union 
has to say as to these points. 

The Security Council should realize that grave 
charges have been made, charges to which it can- 
not close its eyes. The Security Council should, 
therefore, consider these charges in all of their 
aspects. All sides of the case should be heard. 

No member should draw conclusions prema- 
turely or lightly. Certainly my Government does 
not intend to do so. The Council should realize, 
furthermore, that if these charges should be estab- 
lished they would constitute a case of indirect 
aggression. The United Nations would then be 
called upon to develop effective collective measures 
designed for the preservation of the territorial in- 
tegrity and political indei)endence of states, how- 
ever small. 

Wliether the charges are traversed or admitted, 
my Government's position is to support continued 
consideration by the Security Council aimed at 
saving other peoples from indirect aggression. 

448 



Resolution on Yugoslav Gold 
Reserves in U.S.^ 

The Economic and Social Council 

Having examined the question as to whether it 
should consider the substance of the matter raised 
by the Federal People's Republic of Yugoslavia 
regarding its gold reserves in the United States of 
America ; 

Considering that it could not examine the sub- 
stance of this matter without thus being led into 
the consideration of the different aspects of the 
l^articular dispute existing between the United 
States of America and the Federal People's Re- 
public of Yugoslavia ; 

Considering that it has no competence to take 
cognizance of such aspects because of the juridical 
issues involved ; 

Decides that this matter does not fall within the 
competence of the Council ; and 

Expresses its hope that the United States of 
America and the Federal People's Republic of 
Yugoslavia will settle their dispute as soon as 
possible. 



Current United Nations Documents: 
A Selected Bibliography^ 

Economic and Social Council 

Terms of Reference for the Economic Commission for 
Latin America. E/712, Feb. 27, 1948. 4 pp. mimeo. 

Memorandum Concerning the Shortage of Newsprint. 
E/727, Mar. 3, 1948. 27 pp. mimeo. 

Terms of Reference for the Economic Commission for 
Latin America. Note by the President . . . E/735, 
Mar. 4, 1948. 3 pp. mimeo. 

The Question of the Prevention of Crime and the Treat- 
ment of Offenders on a Wide International Basis. 
Note by the Secretary-General. E/736, Mar. 4, 1948. 
7 pp. mimeo. 

Status of Women. Resolutions of 3 March 1948. E/737, 
Mar. 4, 1948. 2 pp. mimeo. 

Freedom of Information and of the Press. E/738, Mar. 4, 
1948. 2 pp. mimeo. 

Human Rights. Resolutions of 1 and 2 March 1948. 
E/749, Mar. 6, 1948. 3 pp. mimeo. 

Narcotic Drugs. Resolutions of 2 March 1948. E/750, 
Mar. 5, 1948. 4 pp. mimeo. 

Establishment of an Ad Hoc Committee To Study Factors 
Bearing Upon Establishment of an Economic Commis- 
sion for the Middle East. Resolution of 8 March 1948. 
E/7.53, Mar. 8, 1948. 2 pp. mimeo. 



' U.N. doe. E/764, adopted on Mar. 9, 1948. 

' 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. 

Depar/menf of Sfafe Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings ^ 



In Session as of April 4, 1948 

Far Eastern Commission 

United Nations: 

Security Council 

Military Staff Committee 

Atomic Energy Commission 

Commission on Conventional Armaments 

Security Council's Committee of Good Offices on the Indonesian Ques- 
tion. 
General Assembly Special Committee on the Greek Question .... 

Commission for Palestine , 

Temporary Commission on Korea , 

Interim Committee of the General Assembly , 

Ecosoc (Economic and Social Council): 

Subcommission on Employment and Economic Stability 

World Conference on Freedom of Information 

Cfm (Council of Foreign Ministers): 
Commission of Investigation to Former Italian Colonies 

Deputies for Italian Colonial Problems 

Deputies for Austria 

Fao (Food and Agriculture Organization) : Mission to Siam 

Provisional Frequency Board 

First Meeting of Planning Committee on High Frequency Broadcasting . 

Sixth Pan American Railway Congress 

Ninth International Conference of American States 

ICAO (International Civil Aviation Organization): Personnel Licensing 

Division. 
IcAC (International Cotton Advisory Committee): Seventh Meeting . . 
Meeting of Technicians in Connection With Final Protocol of Tonnage 
Measurement of Ships. 

Fifth International Leprosy Congress 

Lyon International Fair 



Washington 

Lake Success 
Lake Success 
Lake Success 

Lake Success 
Lake Success 

Salonika . . 

Lake Success 
Seoul . . . 
Lake Success 

Lake Success 
Geneva . . 



Former ItaUan Colonies . . 



London . 
London . 
Siam . . 
Geneva . 
Geneva . 
Habana . 
Bogotd, . 
Montreal 

Cairo . . 
Oslo . . 

Habana . 
Lyon . . 



1946 


Feb. 


26- 


Mar 

Mar 
June 


25- 
25- 
14- 


1947 


Mar 
Oct. 


24- 
20- 


Nov. 


21- 


1948 


Jan. 
Jan. 
Feb. 


9- 
12- 
23- 


Mar 
Mar. 


22- 
23- 


1947 


Nov. 


8- 


1948 


Jan. 

Feb. 

Jan. 

Jan. 

Mar. 

Mar. 

Mar. 

Mar. 


29- 
20- 
3- 
15- 
22- 
27- 
30- 
30- 


Apr. 
Apr. 


1- 
2- 


Apr. 
Apr. 


3-11 
3-12 



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



Activities and Developments}^ 



DEPUTY CHAIRMAN OF POLICY GROUP ON 
BOGOTA CONFERENCE DESIGNATED * 

Paul C. Daniels, Director for American Re- 
public Affairs, has been designated Deputy Chair- 
man of the Policy Group on the Bogota confer- 
ence, effective March 5, 1948. 

April 4, 7948 



U.S. OBSERVERS TO SIXTH PAN AMERICAN 
RAILWAY CONGRESS 

The Secretary of State has announced the com- 
position of the United States observer group to the 
Sixth Pan American Eailway Congress scheduled 
to convene at Habana, March 27, 1948. United 
States representation will consist of William T. 
Faricy, president, Association of American Rail- 
roads ; Julian Duncan, Bureau of Statistics, Inter- 
state Commerce Commission ; and Seymour T. R. 
Abt, Transport and Communications Branch, Of- 
fice of International Trade, Department of Com- 
merce. 



449 



ACTIVITIES AND DBVBLOPMENTS 

U.S. DELEGATION TO FIRST SESSION OF 
CHEMICAL INDUSTRIES COMMITTEE 

[Released to the press March 26] 

The Department of State has announced the 
composition of the United States Delegation to the 
First Session of the Chemical Industries Commit- 
tee as recommended to the Secretary of State by 
the Secretary of Labor. This meeting which was 
called by the International Labor Office is sched- 
uled to convene at Paris on April 6 and is expected 
to last 10 days. The Delegation is tripartite, com- 
posed of representatives of the Government, em- 
ployers, and workers of the United States, as fol- 
lows : 

Government Delegates 

Arthur J. White, Wnge and Hour and Public Contracts 

Division, Department of Labor 
Thomas W. Delahanty, Associate Chief, Chemical and 

Health Products Branch, Office of International Trade, 

Department of Commerce 

Advisers 

W. Duane Evans, Chief, Productivity and Technical De- 
velopments Division, Bureau of Labor Statistics, De- 
partment of Labor 

Richard Eldridge, Labor Attache, American Embassy, 
Paris 

Emploteks' Delegates 

E. W. Dwyer, Head, Industrial Relations Section, Mon- 
santo Chemical Company, St. Louis, Mo. 

Howard R. Huston, Assistant to the President, American 
Cyanamid Company, Now York City 

Workers' Delegates 

John J. Mates, International Board Member, United Mine 

Workers of America, Washington, D.C. 
H. A. Bradley, President, International Chemical Workers 

Union, Akron, Ohio 

The meeting has been called to consider the prob- 
lems of the chemical industries in the light of re- 
cent events and changes and of conditions of labor 
and the organization of industrial relations in 
those industries. 

U.S. DELEGATION TO FIFTH INTERNATIONAL 
LEPROSY CONGRESS 

[Released to the press March 25] 

The Department of State has announced the 
following United States Delegation to the Fifth 
International Leprosy Congress which is sched- 
uled to be held at Habana, April 3-11, 1948 : 

Chairman 

Perry Burgess, President, American Leprosy Foundation, 
New York City 

Delegates 

Frederick A. Johansen, Medical Director, U.S. Public 
Health Service ; Director, U.S. Marine Hospital, Car- 
ville. La. ; Member, Advi.sory Medical Board, Ameri- 
can Leprosy Foundation 

Eugene R. Kellersberger, General Secretary, American 
Mission to Lepers, Inc., New York City 

450 



Norman R. Sloan, Medical Director, Kalsupapa Leper Set- 
tlement, Territory of Hawaii 

Malcolm H. Soule, Chairman, Advisory Medical Board, 
Leonard Wood Memorial ; Professor of Bacteriology, 
U. of Mich., Ann Arbor 

The Fifth International Leprosy Congress is 
sponsored and organized by the Government of 
the Kepublic of Cuba in collaboration with the 
International Leprosy Association. The scientific 
work of the Congress will be divided among five 
committees as follows : therapeutics, classification, 
epidemiology, research, and social assistance. 
Among the principal subjects to be considered by 
the Congress will be ( 1 ) determination, up to the 
present time, of the real value of the new drugs 
of the sulphona type in connection with the treat- 
ment of leprosy, and (2) approval or modification 
of the new South American classification of the 
various forms of leprosy. 

Leprosy congresses have been held periodically 
during the past 50 years. The first congress was 
held at Berlin in 1897, and the fourth met at Cairo 
in 1938. 

REGIONAL CONSULAR CONFERENCES AT 
MEXICO CITY AND CAPETOWN 

[Released to the press March 22] 

The importance of keeping the United States 
Foreign Service in constant alinement with chang- 
ing demands and performance criteria of Ameri- 
can business and industry so that the Service will 
always be in a position to protect and promote 
American overseas trade, will be stressed at two 
regional consular conferences to be held at Mexico 
City and Capetown, both from April 5-8 inclusive. 

Ambassador Walter Thurston will formally 
open the Mexico City conference, which will be 
attended by diplomatic and consular officers from 
20 posts in Mexico, and Gen. Thomas Holcomb, 
Minister, will launch the Capetown sessions to 
which officers from six South African and Portu- 
guese East African posts will be sent. Donald 
W. Smith, Deputy Director of the Office of the 
Foreign Service, will head the small Washington 
Delegation to the Mexico City meeting. 

Among the topics to be discussed at the daily 
sessions are economic, commercial, industrial and 
agricultural problems and reporting; trade pro- 
motion; commercial reference and research; com- 
mercial intelligence; industrial progress; fishery 
matters; visas and immigration; the U. S. infor- 
mation and cultural programs; veterans' affairs; 
security measures; and general administrative 
problems. 

In general. Foreign Service officers will be the 
principal speakers, but the Mexico City Delegates 
will also be addressed by several Department of 
State officials whose duties in Washington keep 
them in constant communication with American 
representatives in Mexico. 

Department of Slate Bulletin 



U.S. Position in the United Nations Regarding Palestine 

STATEMENT BY THE PRESBDENT i 



It is vital that the American people have a clear 
understanding of the j^osition of the United States 
in the United Nations regarding Palestine. 

This country vigorously suppoi-ted the plan for 
partition with economic union recommended by the 
United Nations Special Committee on Palestine 
and by the General Assembly. We have explored 
every possibility consistent with the basic princi- 
ples of the Charter for giving effect to that solu- 
tion. Unfortunately, it has become clear that 
the partition plan cannot be carried out at this 
time by peaceful means. "We could not undertake 
to impose this solution on the people of Palestine 
by the use of American troops, both on Charter 
grounds and as a matter of national ijolicy. 

The United Kingdom has announced its firm 
intention to abandon its mandate in Palestine on 
May 15. Unless emergency action is taken, there 
will be no public authority in Palestine on that 
date capable of preserving law and order. Vio- 
lence and bloodshed will descend upon the Holy 
Land. Large-scale fighting among the people of 
that country will be the inevitable result. Such 
fighting would infect the entire Middle East and 
could lead to consequences of the gravest sort in- 
volving the peace of this Nation and of the world. 

These dangers are imminent. Responsible gov- 
ernments in the United Nations cannot face this 
prospect without acting promptly to prevent it. 
The United States has proposed to the Security 
Council a temporary United Nations trusteeship 



for Palestine to provide a government to keep the 
peace. Such trusteeship was proposed only after 
M'e had exhausted every effort to find a way to 
carry out partition by peaceful means. Trustee- 
ship is not proposed as a substitute for the parti- 
tion plan but as an effort to fill the vacuum soon 
to be created by the termination of the mandate 
on May 15. The trusteeship does not prejudice the 
character of the final political settlement. It 
would establish the conditions of order which are 
essential to a peaceful solution. 

If we are to avert tragedy in Palestine, an im- 
mediate truce must be reached between the Arabs 
and Jews of that country. I am instructing Ajn- 
bassador Austin to urge upon the Security Council 
in the strongest terms that representatives of the 
Arabs and Jews be called at once to the council 
table to arrange such a truce. 

The United States is prepared to lend every 
appropriate assistance to the United Nations in 
preventing bloodshed and in reaching a peaceful 
settlement. If the United Nations agrees to a 
temporary trusteeship, we must take our share of 
the necessary responsibility. Our regard for the 
United Nations, for the peace of the world, and 
for our own self-interest does not permit us to do 
less. 

With such a truce and such a trusteeship, a 
peaceful settlement is yet possible ; without them, 
open warfare is just over the horizon. American 
policy in this emergency period is based squarely 
upon the recognition of this inescapable fact. 



Report on Fiftli Meeting of Preparatory Commission for IRO 



ARTICLE BY GEORGE L. WARREN 



The Preparatory Commission for the Interna- 
tional Refugee Organization (Pciro) met for the 
fifth time at Geneva on January 20, 1948.=' The 
purpose of the meeting was to consider the status 
of adherences to the Iro constitution, to adopt 
budgets for the current and ensuing fiscal years, 
and to take action indicated by consideration of 
the report of the Executive Secretary. The Com- 
mission had assumed operating responsibilities on 
behalf of Iro on July 1, 1!)47, for the care, repatria- 
tion, and resettlement of displaced persons. 

April 4, T948 



status of the International Refugee Organization 

The French and Belgian Delegates advised tlie 
Commission that their Governments had com- 
pleted the required legislative actions and would 
soon deposit certificates of ratification to the Iro 
constitution with the Secretary-General of the 
United Nations. It was noted that the deposit of 
ratifications by France and Belgium would bring 

' Released to the press by the White Hou-se on Mar. 25. 
' Fur the report of the 4th meeting of the Preparatory 
Commission for Iro, see Bulletin of Sept. 28, 1947, p. 638. 

451 



ACTIVITIBS AND DBVEiOPMENTS 

the number of adherences to Iro to 13 and that 
the adherence of two additional governments 
■would be required to bring the Iro into being. The 
total percentage of governments' contributions, in- 
cluding those of France and Belgium, would be 
75.24 percent. The Brazilian Delegate announced 
the intention of his Government to introduce ap- 
propriate legislation in the Congress immediately 
upon the signing of an interim working agi-eement 
with the Commission. The hope was expressed 
that Brazil might complete its adhei-ence by March 
31, 1948. 

Budget Discussions 

Budgets authorizing expenditures of $119,000,- 
000 in the current fiscal year and of $155,000,000 
for the fiscal year 1948^9 were approved by the 
Preparatoi-y Commission. Together the two budg- 
ets provide funds for the resettlement of 679,000 
displaced persons and the repatriation of 179,000. 
The budget for the current fiscal year is $3,443,000 
higher than that approved at the October meeting 
of the Preparatory Commission. This was made 
possible by an increase in anticipated revenue, by 
receipt of $1,500,000 from the assets of Unrra, and 
anticipated reimbursements from the Australian 
Government of $580,760 for the transportation of 
displaced persons to Australia and the return of 
prisoners of war to Europe in Pciro ships. 

A comparison of the budgets for the fiscal years 
1947-48 and 1948^9 reveals the extent to which 
Pciro hopes to increase the rate of resettlement of 
refugees. The budget for the current fiscal year 
devotes 12 percent to resettlement costs as com- 
pared with 36 percent in the budget for 1948-^9. 
Increased resettlement will result in a decrease in 
care and maintenance costs from 68 percent of the 
current year's budget to 48 percent of the 1948^9 
expenditures. 

Resettlement Overseas 

The discussion on the budgets developed the in- 
formation that Pciro has seven ships in operation 
in moving displaced persons overseas for resettle- 
ment in Australia, Brazil, Canada, and Venezuela. 
Four of these are chartered from the U. S. Army. 
Displaced persons numbering 17,300 have already 
been recruited by immigration selection missions 
or are in possession of immigration visas and are 
awaiting transportation from Austria, Germany, 
and Italy. It was estimated that four extra ships 
would be required to move these persons imme- 
diately. 

Cut-off Date 

In the discussion of the budget for 1948-49 the 
United Kingdom Delegate took the initiative in 
proposing a cut-off date before which a refugee 
must have left his country of origin or former 
habitual residence in order to qualify for Iro assist- 
ance. This proposal was advanced for the purpose 

452 



of defining the total of the refugee problem which 
Iro faces and for discouraging the influx of new 
refugees to the areas of assistance. Several 
European representatives opposed the suggestion 
to set a date after which refugees could not qualify 
for Iro assistance, stating that Iro had an obli- 
gation to governments which have large numbers 
of refugees already on their territories and which 
have a vital concern in any transfer to them of 
full responsibility for new arrivals on their terri- 
toi-y after the establislied cut-off date. For budget- 
ary reasons, the United States Delegate suggested 
that the General Council of Iro, when activated, 
consider the establishment of a cut-off date such 
as February 1, 1948. The United States Delegate 
stated, however, that his Government would not 
be indifferent to the situation of any group of 
refugees which might be affected by the cut-off 
date, and would give consideration to the report- 
iiTg of any such groups of refugees as might be 
affected by the decision when and if taken to the 
United Nations. 

Quotas of Displaced Persons To Be Accepted 
by Countries of Resettlement 

The Executive Secretary reported that as a 
result of inquiries since the previous meeting he 
wished to withdraw his earlier suggestion for 
calling an international conference of govern- 
ments to establish quotas of displaced persons to 
be accepted by countries of resettlement. In lieu 
of such a conference it was proposed that he be 
instructed to consult governments individually to 
secure their voluntary estimates of the numbers of 
refugees and displaced persons which they would 
be willing to accept as their fair share of the total 
to be resettled. This suggestion was adopted by 
the Commission. 

Eligibility of Volksdeutsche in Austria 

After an extended discussion on the eligibility 
of the Volksdeutsche in Austria, based on two 
reports presented to the Commission by the Execu- 
tive Secretary, the Commission voted to refer the 
problem of the eligibility of the Volksdeutsche to 
the General Council of Iro when activated. 

IRO Relations With Voluntary Organizations 

An ad hoc subcommittee of the Preparatory 
Commission conferred with representatives of 
voluntary agencies during the meeting of the Com- 
mission and received verbal and written statements 
by the organizations, which by vote of the Commis- 
sion were referred to the Executive Secretary for 
information and consideration. 

The Commission recessed on January 31 to 
reconvene on JNIay 4, 1948, unless the International 
Refugee Organization comes into being before 
that date, in which event the Commission will 
meet no later than May 15, 1948. 

Department of Sfafe Bulletin 



THE RECORD OF THE WEEK 



Italy Accepts Proposal of U.S., U.K., and France To Place 
Free Territory of Trieste Under Italian Sovereignty ^ 



MEMORANDUM OF DEPARTMENT OF STATE OF MARCH 20, 1948 



The Government of the United States desires 
to propose to the Government of Italy that it 
agree to the early consideration, jointly with the 
Governments of the United Kingdom, France and 
the Union of Soviet Socialist Republics of the 
negotiation of a Protocol to the Treaty of Peace 
with Italy to provide for the return of the Free 
Territory of Trieste to Italian sovereignty. 

It will be recalled that the Government of the 
United States has consistently maintained that 
the entire area of the Free Territory is ethnically 
and historically Italian territory and that this 
Government agreed to its separation from Italy 
only on the condition that it should be truly inde- 
pendent and that the human rights of the people 
be fully protected and guaranteed against all pos- 
sibility of suppression or infringement. This con- 
dition is now apparently impossible of achieve- 
ment and therefore this Government has concluded 
that the rights and interests of the overwhelmingly 
Italian population of the area can be assured 
only through the return of the Free Territory to 
Italian sovereignty. 

The Government of the United States has de- 
cided upon this proposal in view of the proven 
unworkability of the provisions of the Treaty of 
Peace with Italy establishing the Free Territory. 
It is the considered opinion of this Government 
that certain elements of the population have suc- 
ceeded in establishing conditions which make in- 
operative the guarantees of true independence for 
the Territory and the protection of the basic rights 
of the people as envisaged in the Permanent 
Statute of the Free Territory. The successful es- 
tablishment of a Free Territory was recognized 
from the first as being entirely dependent upon the 
fullest cooperation and good will of all concerned. 
However, from the first hours of the history of 
the area as a Free Territory it became all too 

April 4, 1948 



apparent that certain elements were intent upon 
preventing the establishing of a truly independent 
Free Territory of Trieste. Subsequent events have 
further proven that the most fundamental human 
rights have been denied and a totalitarian system 
has been established in the Zone of the Territory 
placed under the temporary administrative re- 
sponsibility of the Commander of the Yugoslav 
forces in the Free Territory of Trieste. These de- 
velopments have convinced the Government of the 
United States that the settlement envisaged in the 
Treaty of Peace with Italy cannot successfully 
guarantee freedom for the people of the area or 
true independence for the Free Territory of 
Trieste. 

The Government of the United States, after 
consultation with the Governments of the United 
Kingdom and France, has therefore decided to 
recommend the return of the Free Territory of 
Trieste to Italian sovereignty as the best solution 
to meet the democratic aspirations of the people 
and make possible the reestablishment of peace 
and stability in the area. It is hoped that the 
Government of Italy will concur in this view and 
agree to the immediate negotiation of a protocol 
to the Treaty of Peace with Italy to effect this 
solution of the problem. 

It is proposed that such protocol as may be 
agreed to by the Powers concerned would, prior to 
coming into force, be submitted to the Security 
Council for its approval in view of the special 
responsibilities assumed by the Council in connec- 
tion with the Free Territory of Trieste. 

A similar communication is being addressed to 
the Government of the Union of Soviet Socialist 
Republics. 

' Released to the press Mar. 23. For recommendations 
of the three Governments, see Bulletin of Mar. 28, 1948, 
p. 425. 

453 



TEXT OF NOTE FROM THE ITALIAN AMBASSADOR IN REPLY TO THE 
MEMORANDUM OF THE DEPARTMENT OF STATE 



March 22, 19 1^ 
Mr. Secretary of State, 

With reference to the memorandum delivered 
by the Dej^artment of State on the 20th instant 
concerning the proposal of the Government of the 
United States to consider, together with the Gov- 
ernments of the United Kingdom, France and the 
Soviet Union, the negotiation of a protocol to the 
Treaty of Peace with Italy providing for the re- 
turn of the Free Territory of Trieste to Italian 
sovereignty, I have the honor, on instructions from 
my Goverimient, to communicate to you the fol- 
lowing : 

1. The Italian Government learned with very 
keen and legitimate satisfaction that the Gov- 
ernments of the United States, the United King- 
dom and France had reached the conclusion that 
the reestablishment of a free order and respect 
for the democratic aspirations of the great major- 
ity of the population of the Free Territory of 
Trieste can only be guaranteed by the return of 
the Territory to Italian sovereignty. 



2. The Italian Government is prepared to par- 
ticipate to that end together with the Governments 
of the United States, the United Kingdom, France 
and the Soviet Union through the drawing up of a 
protocol which will be submitted to the Security 
Council for approval. 

3. The Italian Government speaks for the entire 
Italian people and the people of the Free Terri- 
tory in expressing their rejoicing. It realizes fully 
the importance and significance of the proposal 
jointly put forward by the Governments of the 
United States, the United Kingdom and France. 
This proposal not only constitutes the recognition 
of a fundamental principle of international jus- 
tice, but, when realized, can likewise constitute a 
guaranty of peace and of that sincere collabora- 
tion which Italy desires with the neighboring 
Yugoslav people. 

Please accept [etc.] 

Alberto Tarchiani 
Ambassador of Italy 



Transfer of Passenger and Cargo Vessels to Italy 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House March 16] 

Fourteen of the ships transferred to Italy today 
are Italian vessels seized by the United States 
during the war. The other 15 are the equivalent 
tonnage of Italian ships which were seized by the 
United States and lost during the conflict or re- 
duced to such a condition that they could not be 
returned. 

The Italian vessels seized by the United States 
during the early years of the war played an im- 
portant part in the victory against dictatoi'shiii to 
which the Italian people contributed so much after 



their own liberation from Fascism. They are re- 
turned now to rejoin the Italian Merchant Marine 
and work again for the rebuilding of peace and 
the restoration of a prosperous Italy. 

In making this transfer, I am happy to express 
again the feeling of friendship and admiration of 
the American people for the Italian people, who, 
in these brief years since the war ended in Europe, 
have made such courageous strides forward in the 
democratic faith and repeatedly shown the world 
that, supported with courage and wisdom, this 
faith cannot and will not falter or fail. 



EXECUTIVE ORDER 9935 



[Released to the press by the White House March 16] 

By virtue of the authority vested in me by the 
Constitution and laws of the United States, in- 
cluding the Trading With the Enemy Act of 
October 6, 1917 (40 Stat. 411), as amended, and 
the act of August 5, 1947, Public Lav? 370, 80th 



' 13 Federal Register 1395. 
454 



Congress, 1st Session, it is hereby ordered as 
follows : 

1. The Attorney General and the United States 
Maritime Commission are authorized and directed 
to transfer to the Government of Italy all right, 
title, interest, and possession of the United States, 
the Attorney General, or the Maritime Commis- 
sion in the following vessels, which were under 
Italian registry and flag on September 1, 1939: 

Department of Sfafe Bulletin 



Elwood (ex. Laconia) White Clover (ex. 
Gallant Fox {ex. Guiaii) Monfliore) 

Gold Heels (ex. Brennero) Alcibiades (cj. lole Fasslo) 

Hermitage (ex. Conte Faireno (ex. Dentice) 

Biaiuaiuano) Malvern (ex. Trottiera) 

Lowlander (ex. Leme) Jlnnticello (ex. Conte 
Mokatan (ex. Mar Glaiico) Grande) 

Troubador (fj-. Confidenza) Swivel (ea;. Bacicin Padre) 
Typhoon (ex. Colorado) 

2. The United States Maritime Commission is 
authorized and directed to designate 15 surplus 
Libert}' ships and to transfer them to the Govern- 
ment of Ital}',- it having been determined by the 
Commission tliat 15 Liberty ships liave a total 
tonnage approximately equal to the total tonnage 
of vessels under Italian registry and flag on Sep- 
tember 1, 1939, and subsequently seized in United 
States ports and thereafter lost while being em- 
ployed in the United States war effort. 

3. The above transfers shall be made pursuant 
to agreements to be executed by the Attorney 
General or the United States Maritime Commis- 
sion or both, as the case may require, acting on 
behalf of the United States, and by the Govern- 
ment of Italy, which agreements shall contain 
substantially the following provisions and such 
other provisions consistent with the act of August 
5, 1947, as the Attorney General and the Maritime 
Commissioit, in consultation with the Secretary 
of State, shall consider necessary and appropriate : 

(a) No monetary compensation shall be paid for 
the use by the United States or its agencies of 
former Italian vessels acquired or seized by the 
United States after September 1, 1939. 

{b) All costs incurred to return or transfer a 
vessel to the Government of Italy shall be borne 
or reimbursed by the Government of Italy. 

(c) The Government of Italy shall agree to 
discharge and save harmless the Government of 
the United States of America from any responsi- 
bility and liability for the processing, settlement 
and satisfaction of any claims to or against the 
vessels so transferred or the lost vessels in respect 
of which substitute vessels are transferred. 

{d) Prior to the removal of any vessel to be 
transferred from the custody, actual or construc- 
tive, of any court, the Government of Italy shall 
make or cause to be made arrangements, including 
the posting of a stipulation for value or other 
security in nature and amount satisfactory to 
such court, to secure the payment of any unpaid 
claims against the vessel. 

(e) Of the 15 surplus Liberty ships designated 
for transfer to the Government of Italy the Mari- 
time Commission shall retain such number as will 
constitute security for the payment of such sums 
of money as the Attorney General may determine 
sufficient for the processing, settlement and satis- 
faction of any claims not otherwise secured to or 
against the lost vessels in respect of which the 
substitute ships are being transferred. 

AprW 4, 1948 



THE RECORD Of THE WEEK 

( /) Delivery of the Hermitage ( ex. Conte Blan- 
camano) and Mont hello (ex. Conte Grande) pur- 
suant to this order shall be without prejudice to 
any rights of the Government of the United 
States, under existing agency agreements with 
the Government of Italy, with respect to (1) ac- 
counting for revenues of such vessels accruing 
prior to the date of delivery of such vessels pur- 
suant to this order, and (2) the operation of the 
S.S. Saturnia and S.S. Viiicania, or either, in ac- 
cordance with existing agreements between the 
United States and Italy. 

4. The Liberty ships to be transferred to the 
Government of Italy shall be selected by the 
United States Maritime Commission, in consul- 
tation with the Government of Italy, such vessels 
to be operated by Italy for commercial use. Pro- 
vision shall be made that such Liberty ships are 
to be operated under the Italian flag and shall 
not be sold to any person or corporation not a na- 
tional of Italy, without the consent of the Gov- 
ernment of the United States. 

5. The Attorney General and the United States 
Maritime Commission shall act in consiTltation 
with the Secretary of State in carrying out the 
terms of this Executive order with all possible 
promptness in a manner which will effectuate the 
foreign policy of the United States to assist 
friendly and democratic European nations to re- 
build their economies without delay. 




The White House, 

March 16, 1948. 

Additional Treaties With Italy U.S. 
Will Keep in Force or Revive 

[Released to the presa March 16] 

Text of a note from Ambassador Dunn delivered 
on March 12, 1948, to the Italian Foreign Office 
hy the American Embassy at Rome 

I have the honor to refer to my note of February 
6, 1948 giving official notification, in accordance 
with Article 44 of the Treaty of Peace with Italy 
dated at Paris February 10, 1947, regarding the 
pre-war bilateral treaties and other international 
agreements with Italy which the United States 
desires to keeiJ in force or revive.^ It was stated 

^ The names of the Liberty ships transferred are as 
follows : Fort Wedderbiirne, Fort Gasperau, Fort Charni- 
say, Fort Hudson's Hope, Fort Maurepas, Fort Fork, Fort 
MaeMurray, Fort Simpson, Fort Kootenay, Fort La Traite, 
Fort Walsh, Fort Rae, Fort Frederick, Fort Gibraltar, and 
Fort Acton. 

' Bulletin of Feb. 22, 1948, p. 248. 

455 



THE RECORD OF THB WCCK 

in that notification that the reciprocal copyright 
arrangement between the United States and Italy 
and the agreement for the protection of trade- 
marks in Morocco would be the subject of a 
separate communication. 

I have the honor to inform you now that the 
Government of the United States of America 
wishes to include the reciprocal copyright arrange- 
ment between the United States and Italy effected 
pursuant to the exchange of notes signed at Wash- 
ington October 28, 1892, and the exchanges of 
notes signed at Washington September 2, 1914, 
February 12, March 4, and March 11, 1915, among 
the pre-war bilateral treaties and other interna- 
tional agreements with Italy which the United 
States desires to keep in force or revive. Accord- 
ingly, it is understood that the aforementioned ar- 
rangement will continue in force and that the 
Government of each country will extend to the 
nationals of the other country treatment as favor- 
able with respect to copyrights as was contem- 
plated at the time the arrangement was entered 
into by the two countries. 

The Government of the United States of Amer- 
ica also desires to continue in force or revive the 
agreement for the protection of trademarks in 
Morocco, effected by exchange of notes signed at 
Tangier June 13, July 29, and December 19, 1903 
and March 12, 1904. 

Reiteration of Four Power Responsibilities 
In the ACC 

Statement by Secretary Marshall 

[Released to Uie press March 25) 

The Representatives of this Government have 
tried diligently and patiently for nearly three 
years and are still trying to make the Allied Con- 
trol Council an effective organization for the ad- 
ministration of Germany as an economic and po- 
litical unit. Their efforts have to a large extent 
been frustrated by the tactics of the Soviet Rep- 
resentatives on the Council. The Acx; in Berlin 
as well as the joint occupation of the city are es- 
tablished by governmental agreement. Any 
further attempt to disrupt the functioning of the 
Allied Control Authority, as initially suggested 
by the conduct of the Soviet Representative on 
March 20, could only be construed as reflecting an 
intention, which the United States does not share, 
to renounce efforts to obtain Four Power agree- 
ment on policies for Germany and would be re- 
garded as unilateral action aimed against the uni- 
fication of Germany. In accordance with the in- 
ternational agreement binding on all four control 
powers, the United States intends to continue to 
fulfill its responsibilities as a member of the Con- 
trol Council and as a joint occupant of the city of 
Berlin. 



German "People's Congress" Condemned 
by U.S. and U.K. 

Statement by Secretary Marshall 

[Released to tbe press March 25] 

The self-styled German "People's Congi-ess" was 
organized in December, 1947, under the auspices of 
the Socialist Unity Party of the Soviet zone, and 
functions as a Communist-dominated organiza- 
tion. Its membership indicates that it represents 
but a small minority of the German population. 
It has been condemned by the United States and 
British occupation authorities as "a deliberate at- 
tempt by the organizers to circumvent the policies 
of military government to ensure that political ac- 
tivities are conducted honestly and openly. . . . 
The People's Congress purports to represent all 
parties and sections of the population but in fact 
it has been repudiated by all the recognized politi- 
cal parties except the Communist Party". On 
these grounds it has been denied authorization of 
its activities in the bizonal area. 

The so-called "People's Congress" has no legiti- 
mate claim to represent the German people as a 
whole, and it is practicing a cruel deception upon 
the German people in seeking to impose itself upon 
them as a substitute for genuine German unity. 

Nonmilitary Aspects of German Occupation To 
Remain Under Department of the Army 

[Released to the press by the White House March 23] 

On January 27 the Department of tiie Army 
announced that an agreement had been reached 
that the Department of State should assume the 
responsibility for the nonmilitary aspects of the 
German occupation, looking toward the transfer 
of such responsibility on or about July 1, 1948. 
Following a review of the present situation, it 
has been decided that it would be inadvisable to 
make any changes in our present administrative 
arrangements for Germany. This decision will 
not have any adverse effect on progress toward de- 
veloping German responsibility for self-govern^ 
ment and administrative initiative. 

General Clay remains as military governor and 
as commander-in-chief of the United States forces 
in Europe. 

No Immediate Plans for Meeting of French, 
British, and American Foreign Ministers 

[Released to the press March 23] 

The Department of State announced on March 
23 that there is no plan for a meeting between 
M. Bidault, Mr. Bevin, and Secretary Marshall. 
It is hoped, however, that the three Governments 
will establish the closest consultation on all mat- 
ters of mutual interest. Whether this consultation 
will take the form of a meeting between the three 
Secretaries or through some other method cannot 
be determined at the moment. 



456 



Department of State Bulletin 



Reply to Soviet Objections to Tripartite Discussions on Germany 

TEXT OF NOTE TO THE SOVIET AMBASSADOR FROM ASSISTANT SECRETARY ARMOUR 



[Beleased to the press March 26] 

Excellency: I have the honor to acknowledge 
the receipt of your note, No. 50, of March 6, 1948, 
concerning the discussions whicla the Governments 
of the United States, the United Kingdom and 
France held in London respecting Germany." 

In its note of March 6, the Soviet Government 
reiterated the views expressed in the Soviet Em- 
bassy's communication of February 13, 1948, to the 
effect that the London discussions were in contra- 
diction to the Potsdam Agreement and to the 
Agreement on Control Machinery for Germany. 
In its memorandum of February 21, 1948, the De- 
partment of State pointed out that these talks were 
arranged for a discussion of problems in Germany 
of mutual int€rest to the three govermnents, and 
that there is no provision in the Potsdam Agree- 
ment, or other agreements relating to Germany 
concluded by the four occupying powers, which 
prevents any of the powers from discussing be- 
tween themselves questions of common concern. 

The United States Government notes that the 
^oviet Government continues to fail to recognize 
that the three powers have been obliged to consult 
among themselves at this time as a result of the 
unwillingness of the Soviet Govermnent to imple- 
ment the principles of economic unity as well as 
other principles of the Potsdam Agreement. The 
Soviet Government claims that the other occupying 
powers have undertaken a series of unilateral ac- 
tions, contrary to the four-power agreement with 
respect to Germany. 

The Soviet Government cites, as the first expres- 
sion of such policy, the agreement between Great 
Britain and the United States with respect to the 
economic fusion of their respective zones of occu- 
pation in Germany. The note of the Soviet Gov- 
ermnent states : "It is well known that the question 
of creating a unified Anglo-American Zone was 
not even submitted for the consideration of the 
Control Council". This statement does not corre- 
spond to the facts. At the meeting of the Allied 
Control Council in Berlin on July 20, 1946, General 
McNarney made the following statement on behalf 
of his Government : 

"The United States Government is of the view 
that no zone in Germany is self-sustaining. The 
treatment of two or more zones as an economic unit 
would improve conditions in the zones concerned. 

"Therefore, the United States Government has 
authorized its representative on the Allied Control 

April 4, 1948 



Council to join with the representatives of any 
other occupying power or powers in measures for 
the treatment of our respective zones as an eco- 
nornic unit, pending quadripartite agreement 
which would permit the application of the Pots- 
dam decision to treat all of Germany as an eco- 
nomic unit so as to attain a balanced economy 
throughout Germany. 

"While the United States would prefer quadri- 
partite agreement to implement the Potsdam de- 
cision for the establishment of central German 
administrative agencies for Germany as a whole, 
its representative is prepared to cooperate with 
the representatives of any or all of the other oc- 
cupying powers in Germany in establishing admin- 
istrative arrangements to secure economic unity. 

"The United States does not intend by its pres- 
ent proposal to divide Germany but rather to 
expedite its treatment as an economic unit. 

"Any arrangements which representatives of 
the United States may make with the representa- 
tives of any other occupying power will be open 
on equal terms to the representatives of all other 
occupying powers at any time they are prepared 
to participate. 

"The United States Government proposes this 
arrangement because of its belief that Germany 
can no longer be administered in four air-tight 
compartments without free economic interchange 
unless economic paralysis is to result. The United 
States Government is unwilling to permit creep- 
ing economic paralysis to gi-ow if it is possible to 
attain economic unity between its zone and any 
other zone in Germany as a prelude to economic 
unity for all Germany." 

According to the official minutes of the Allied 
Control Council (CONL/M(46)19), the meeting 
agreed in view of the unpreparedness of the other 
delegations to defer consideration of the United 
States proposal. At the next meeting on July 30, 
1946, according to the official minutes (CONL/M 
(46)20), the Control Council considered the 
United States Government's proposal. At this 
meeting Marshal Douglas announced that after 
full consideration the British Government had 
authorized him to accept, in principle. General 
McNarney's offer. Comments on the United 
States proposal were made by the Soviet repre- 
sentative at this meeting and by the French repre- 
sentative at subsequent meetings. 

457 



THE RECORD OF THE WEEK 

It should be recalled that the same offer of the 
United States Government to join its zone eco- 
nomically with that of any other occupyino; power 
had previously been made before the Council of 
Foreign Ministers by the Secretary of State, Mr. 
Byrnes, on July 11, 1946, at Paris, and was subse- 
quently reiterated by hira in an address at Stutt- 
gart on September 6, 1946. The responsibility for 
rejection of this offer and for failure to include 
its zone in this economic arrangement lies upon 
the Soviet Union itself. 

The threat to the authority of the Allied Con- 
trol Council does not arise from the actions of the 
United States, but rather from the consistent pur- 
suit by the Soviet Government in the eastern zone 
of Germany of a systematic unilateral policy of 
its own. The Soviet Government has failed to 
observe the principle of economic unity provided 
for in Section III, B, 14, of the Potsdam Agree- 
ment. It has likewise failed to insure, as provided 
in Section III, B, 15 (c), of the same agreement, 
"the equitable distribution of essential commodi- 
ties between the several zones so as to produce a 
balanced economy throughout Germany and re- 
duce the need for imports". It has carried out 
reparation removals of industrial capital equip- 
ment from the eastern zone without regard to 
agreed limitations on such removals and without 
consideration of the legitimate peace-time require- 
ments of the German economy. It has also con- 
tinuously taken reparation in the form of resources 
and current jiroduction, contrary to the under- 
standing at Potsdam. The Soviet Government 
under the guise of reparation has taken into its 
possession in gigantic trusts (the so-called Soviet 
A. G's) major industrial establishments in the 
eastern zone accounting for 25 to .30 per cent of 
the total remaining industrial productive capacity. 

The Soviet Government has furthermore car- 
ried out in its zone a unilateral policy with respect 
to political activity. The Potsdam Agreement en- 
visaged that local self-government would be re- 
established throughout Germany on democratic 
I^rinciples; that all political parties with rights 
of assembly and of public discussion should be al- 
lowed and encouraged ; and that representative and 
elective principles should be introduced in the 
various levels of government. In actual practice, 
however, the Socialist Party was suppressed by 
the imposed amalgamation with the Communist 
Party into the Socialist Unity Party, which has 
become the new bulwark for a totalitarian regime 
in eastern Germany, while the other authorized 
political parties have been subjected to pressure, 
discrimination and intimidation, and have not been 
enabled to function freely. Basic human rights 
are being denied the population, while concentra- 
tion camps are being used anew for individuals 
unwilling to accept this new totalitarianism. It 
is the unilateral policy of the Soviet Union which 

458 



has cut off eastern Germany from its natural inter- 
course, political and economic, with western Ger- 
many. 

The Soviet Government not only charges the 
other three governments with the inadequate func- 
tioning of the Allied Control Council but also with 
the failure of the Council of Foreign Ministers to 
reach agreement on German questions during its 
1947 sessions held in Moscow and London. The 
official records of these conferences do not confirm 
the Soviet Government's assertion that it made 
efforts to bring about four-power agreement by 
meeting half-way the proposals of the other pow- 
ers. The Soviet Government resorts to a curious 
logic when it seeks to demonstrate its assertion by 
enumerating proposals of the Soviet Union not 
found acceptable by the other three powers. By a 
sincere effort to arrive at reasonable compromises, 
the Governments of the United States, the United 
Kingdom and France were able to arrive at many 
agreed positions, only to find that the Soviet Gov- 
ernment was not likewise ready to seek solutions 
acceptable to all four powers. 

It is impossible not to draw the inference from 
the known proceedings of the Allied Control 
Council and the Council of Foreign Ministers that 
the Soviet Government has been pursuing in Ger- 
many objectives different from those of the other 
occupying powers, who are seeking the pacification 
of Germany and the economic recovery of Europe 
as a whole, including Germany. This inference 
appears to be borne out by the extensive remarks 
in the Soviet Government's note of March 6 di- 
rected against American aid in the economic re- 
covery of Europe as well as against the economic 
and political cooperation of the United Kingdom, 
France, Belgium, Holland and Luxembourg con- 
firmed in the treaty signed at Brussels, March 17. 
It is not these steps which have led to the political 
cleavage of Europe as claimed by the Soviet Gov- 
ernment, but rather prior actions of the Soviet 
Government and a group of eastern European 
states under Soviet influence which have disrupted 
the normal framework of the European community 
and interfered with the progress of recovery from 
the effects of the war. 

In the light of the foregoing, the United States 
Government is not able to agree with the Soviet 
Government's interpretation of the London dis- 
cussions on the German question. The London 
discussions sought the solution of the urgent po- 
litical and economic problems which have arisen 
as a result of the continuous failure to reach and 
implement quadripartite agreement, due to the 
attitude of the Soviet Government. As was 
stated in the communique issued on March 8 by the 
representatives of the powers participating in the 
informal London discussions: "The participating 
powers had in view the necessity of ensuring the 
economic reconstruction of western Europe includ- 

Departtnenf of State Bulletin 



iiig Germany, and of establishing a basis for the 
participation of a democratic Germany in the com- 
munity of free peoples. While delay in reaching 
these objectives can no longer be accepted, ultimate 
Four Power agreement is in no way precluded". 
Accept [et«.] 

For the Secretary of State : 

Norman Armour 
Assistant Secretary of State 



PUBLICATIONS 

Foreign Relations of the United States, 1932, 
Volume II, Released 

[Released to the press March 22] 

The Department of State released on March 22 
Foreign Relations of the United States, 1932, vol- 
ume II. Four other volumes for the year will be 
released within the next few months as soon as 
they are ready. 

The year 1932 is the first for which more than 
three regular annual volumes have been prepared. 
The increase in number of volumes has become 
necessary in order to continvie properly to set 
forth a yearly record of the Department's dip- 
lomatic activities in a period when international 
relations were assuming greater importance. With 
this increase in number of volumes the former 
method of arranging the country sections in a 
purely alphabetical order has been found inade- 
quate. Beginning with the volumes for 1932, aside 
from a general section, the volumes are arranged 
on an area basis. Volume I for 1932 will contain 
the general section, including papers on interna- 
tional conferences and other matters of a multi- 
lateral nature. Volume II, now being released, 
contains country sections, arranged in three 
groups, the British Commonwealth of Nations, Eu- 
rope, and the Near East and Africa. The third 
and fourth volumes will contain the documents on 
the Far East and the fifth volume those relating 
to the American republics. 

For the most part, volume II deals with sub- 
jects of a commercial or legal nature. Of special 
importance in the political field is the collection of 
reports on internal developments in Germany 
which shed light on the growing threat of tlie Nazis 
to the Weimar Republic in the year before Hitler 
finally seized power. 

Copies of Foreign Relations of the United 
States, 1932, volume II (Ixxxvi, 827 pages), may 
be purchased from the Superintendent of Docu- 
ments, Government Printing Office, Washington, 
D.C., for $3 each. 



THE DEPARTMENT 

Department of State 

For sale by the Suprrin ten dent of Documents, Government 
Printing Off.ce, Washington 2r}, V.C. Address requests 
direct to tlie Superintendent of Documents, except in the 
case of free publications, which may be obtained from the 
Department of State. 

American Mexican Claims Commission: Report to the 
Secretary of State, under the act of Congress set up De- 
cember IS, 1942. Arbitration Series 9. Pub. 2859. iii, 676 
pp. $1.50. 

Relevant documents with decisions of the Commission 
showing reasons for the allowance or disallowance of 
the claims. 

Liquidation of German Property in Sweden. Treaties and 
Other International Acts Series 1657. Pub. 2970. iii, 52 
pp. 15^. 

Accord Between the United States of America, France, 
the United Kingdom, and Sweden — Signed at Wash- 
ington July 18, 1946; entered into force March 28. 
1947. 

Food Production: Cooperative Program in Peru. Treaties 
and Other International Acts Series 1669. Pub. 3000. 23 
pp. 10^. 

Agreement Between tlie United States of America and 
Peru Further Extending and Modifying Agreement of 
May 19 and 20, 1943— Signed at Lima December 4, 
1946, and .January 29, 1947 ; entered into force Janu- 
ary 29, 1947, effective January 1, 1947. 

American Dead in World War II. Treaties and Other 
International Acts Series 1672. Pub. 3007. 10 pp. 5(*. 

Agreement Between the United States of America and 
Belgium— Signed at Bru.ssels June 6 and July 23, 1947 ; 
entered into force July 23, 1947. 

United States Educational Foundation in China. Treaties 
and Other International Acts Series 1687. Pub. 3050. iii 
25 pp. 10^. 

Agreement Between tlie United States of America and 
China— Signed at Nanking November 10, 1947 ; entered 
into force November 10, 1947. 

Digest of UNESCO Program for 1948. International Or- 
ganization and Conference Series IV, United Nations Edu- 
cational, Scientific and Cultural Organization 2. Pub 
3081. 9 pp. 5^. 

A six-point program for promoting peace and security 
by marshaling the cultural and educational resources 
of the world. 

UNESCO and tlie National Commission: Basic Docu- 
ments. International Organization and Conference Series 
IV, United Nations Educational, Scientific and Cultural 
Organization 3. Pub. 3082. 17 pp. 100. 

Constitution of U.nesco, act providing U.S. member- 
ship, and list of officers and members of the U.S. 
National Commission for Unesco. 

National Commission News, April 1, 1948. Pub. 3090. 
10 pp. lOi^ a copy ; $1 a year ; foreign subscription $1.35 
a year. 

Prepared monthly for the United States National 
Commission for the United Nations Educational, Scien- 
tific and Cultural Organization. 



April 4, 1948 



459 



^€m/en/^ 



:-=^«M^^^ 



The United Nations and 

Specialized Agencies Page 

World Health Organization— Progress and 
Plans. Article by H. van Zile Hyde, 

M.D 431 

Completion of Ito Charter Hailed as Hope 
for Troubled World: 
Statement by the Department of State . 441 

Statement by the President , 443 

Statement by Secretary Marshall .... 443 
Statement by WilHam L. Clayton .... 444 
Statement by Ambassador Warren R. 

Austin 445 

U.S. Position in the United Nations Regard- 
ing Chilean Complaint. Statement by 
Ambassador Warren R. Austin .... 446 
Resolution on Yugoslav Gold Reserves in 

U.S 448 

U.N. Documents: A Selected Bibliography . 448 
Report on Fifth Meeting of Preparatory 
Commission for Iro. Article by George 

L. Warren 451 

U.S. Position in the United Nations Regard- 
ing Palestine. Statement by the 
President 451 

Treaty Information 

Italy Accepts Proposal of U.S., U.K., and 
France To Place Free Territory of Trieste 
Under Italian Sovereignty: 
Memorandum of Department of State of 

March 20, 1948 453 

Text of Note From the Italian Ambassador 
in Reply to the Memorandum of the 

Department of State 454 

Additional Treaties With Italy U.S. Will Keep 

in Force or Revive 455 

Occupation Matters 

Reiteration of Four Power Responsibilities 
in the Ace. Statement by Secretary 
Marshall 456 



Occupation Matters — Continued Page 

German "People's Congress" Condemned by 
U.S. and U.K. Statement by Secretary 
Marshall 456 

Nonmilitary Aspects of German Occupation 
To Remain Under Department of the 
Army 456 

Reply to Soviet Objections to Tripartite Dis- 
cussions on Germany. Text of Note to 
the Soviet Ambassador From Assistant 
Secretary Armour 457 

Economic Affairs 

U.S. Observers to Sixth Pan American Rail- 
way Congress 449 

U.S. Delegation to First Session of Chemical 

Industries Committee 450 

U.S. Delegation to Fifth International Lep- 
rosy Congress 450 

Transfer of Passenger and Cargo Vessels to 
Italy: 

Statement by the President 454 

Executive Order 454 

Calendar of International Meetings . . 449 

General Policy 

Deputy Chairman of Policy Group on Bogota 

Conference Designated 449 

No Immediate Plans for Meeting of French, 
British, and American Foreign Minis- 
ters 456 

The Foreign Service 

Regional Consular Conferences at Mexico 

City and Capetown 450 

Publications 

Foreign Relations of the United States, 1932, 

Vol. II, Released 459 

Department of State 459 



U. S. OOVERNHENT PRINTIN6 OFFICE. 1948 






^/i€/ z!lJeha^imen(/ x)£ tnaie/ 





FOREIGN AID AND RECONSTRUCTION • Foreign 
Assietance Act of 1948 • 5tatementa by the frtaident 
and the Secretary of State 468 



NINTH i:M LU>AilOi\AL CU.M JbULiM^li. ijt 
AMERICAN STATES • Interdependence of the 
Amerit : tddresa by the Secretary of State . . -169 

PROGRESS OF HUMAN LIBERTY IN DKMOCKATIC 

FORMS • i,/-/r,.^« i.v iIm- (vw^^iMnf s... .,/,,, ,.„/'.,;.;.- 

Affairs 476 



THE INTERNATIONAL CIVIL AVIATION ORGAN- 
IZATION • An article U,.; 



For complete co 



'itck cover 



Voi. Xyill, No. 458 

April 11, 1948 




ates 




^Ae a/lefui/yi^tent a)^ ^late VJ H 1 1 KJ L 1 i 1 



Vol. XVIII. No. 458 • Publication 3116 
April 11, 1948 



For sale by the Superintendent of Documents 

U.S Government Printing Office 

Washington 25, D.O. 

Subscription: 
52 issues, $5; single copy, 15 cents 

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

Note; Contents of this publication are not 
copyrighted and items contained herein may 
be reprinted. Citation of the Department 
OF State Bulletin as the source will be 
appreciated. 



Th£ 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 infornuition 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 INTERNATIONAL CIVIL AVIATION ORGANIZATION 



An Article 



The International Civil Aviation Organization 
(IcAo), with headquarters in Montreal, Canada, 
is affiliated with the United Nations as the special- 
ized agency in the field of international civil avia- 
tion. Endowed with broad jurisdiction in the field 
of international air navigation and with consulta- 
tive and advisory functions in matters pertain- 
ing to the economics of international air transport 
and to private international air law, Icao includes 
in its membership of 46 states ^ all the major na- 
tions engaged in international air commerce. One 
of the first postwar intergovernmental organiza- 
tions to begin operation, Icao - has already made a 
major contribution to postwar international air 
transportation by standardizing in large part the 
techniques of air navigation. It has a potentially 
important function in the field of joint support of 
air-navigation facilities and is becoming increas- 
ingly active in the field of private international 
air law. 

The gi-eat strides in the development of inter- 
national military air transport during World War 
II brought to the attention of the Allied Govern- 
ments the possibilities and problems of postwar 
international civil aviation. In the period be- 
tween the two world wars, the International Com- 
mission for Air Navigation (Cina), established 
under the Paris convention ^ of October 13, 1919, 
had set up a number of technical standards for 
civil air transport and arranged for exchange of 
aviation information among member states. 
Cina, however, which by 1939 represented 33 
states, was never able to deal with international 
aviation on a world-wide basis. Its membership 
consisted chiefly of European states. The United 
States, the Union of Soviet Socialist Republics, 
Germany, China, and most of the Latin American 
states did not participate. A group of Western 
Hemisphere states, including the United States, 
met at Lima in 1937 to establish a second interna- 
tional civil-aviation body under the Pan American 

April 11, 1948 



convention for air navigation drawn up in Habana 
in 1928, but the permanent American aeronautical 
commission was never formally constituted. 

Cognizant that a postwar international organ- 
ization was needed that not only would set up air- 
navigation standards and practices for the whole 
world, but would deal with the economic prob- 
lems of international air transport, the United 
States took the lead by calling an international 
conference on civil aviation. On November 1, 
1944, representatives of 54 nations met at 
Chicago.* 

The International Civil Aviation Conference 
lasted until December 7, 1944. The final act of 
the Conference, signed by the rei^resentatives of 
all participating governments, contained the texts 
of the following instruments: interim agi-eement 
on international civil aviation; convention on in- 
ternational civil aviation; international air-serv- 
ices transit agreement; and international air- 
transport agreement; as well as 12 technical 
amiexes. 

Each of the four instruments was opened for 
signature on December 7, 1944. The first two in- 
struments not only set forth general principles 
for international air navigation but also provided 
respectively for a provisional and a permanent 
international aviation organization. The inter- 
national air-services transit agreement, incorpo- 
rating the "two freedoms" of the air — ^the right 



' As of Feb. 17, 1948. 

' During the period June 6, 945, to Apr. 4, 947, the 
Organization was called Picao (Provisional International 
Civil Aviation Organization). 

" Relating to the regulation of air navigation. 

' The only major nonenemy or nonenemy-occupied states 
which did not participate were Argentina, which was not 
invited, and the U.S.S.R., which did not attend. Argen- 
tina in June 1946 adhered to the interim agreement, the 
convention, and the transit agreement, but the U.S.S.R. 
has taken no action in this direction. 

463 



to fly over sovereign territory and the right to land 
for noncommercial purposes — and the inter- 
national air-transport agreements incorporating 
the "five freedoms," including commercial air 
rights, were only the beginning of an attempt to 
handle the economic problems of international air 
transport through reciprocal granting of privi- 
leges on a multilateral basis. The technical an- 
nexes were only a start in the direction of inter- 
national standardization of air-navigation 
procedures. It would be the work of the new 
international aviation body to develop and revise 
the work of the Chicago conference. 

By June 6, 1945, the interim agreement had been 
accepted by the number of states (26) required 
to bring it into force, and the Provisional Inter- 
national Civil Aviation Organization was accord- 
ingly established. On August 15, 1946, the first 
meeting of Picao was held at Montreal, Canada. 

Structure of the Organization 

The structure of the provisional Organization — 
an annual Assembly of all member states, a Coun- 
cil of 21 member states elected by the Assembly, 
and an international Secretariat — has been pre- 
served in the permanent Organization, which came 
into existence on April 4, 1947, 30 days after the 
twenty-sixth instrument of ratification of the Chi- 
cago convention had been deposited with the 
United States Government.^ The Assembly,* 
which elects its own officers and determines its own 
rules of procedure, has the function of taking ap- 
propriate action upon the reports of the Council 
and handling all other matters referred to it by 
the Council or not specifically assigned to the 
Council. The Council, or executive body, com- 
plies with the directives of the Assembly, main- 
tains liaison with member states and with other 
international bodies, and is generally responsible 
for carrying out the work of the Organization. 
In session about eight months of the year, the 
Council is assisted by subsidiary working groups 
such as the Air Navigation and Air Transport 



'The United States Is the depositary government for 
the instruments of ratification of or adherence to the in- 
terim agreement and to the convention on international 
civil aviation. 

' First Interim Assembly held in Montreal, Canada, May 
21-June 8, 1946 ; First Assembly of Icao held in Montreal, 
Canada, May 6-27, 1947 ; Second Assembly of Icao sched- 
uled to be held in Geneva, Switzerland, in June 1948. 



Committees. Icao's Legal Committee, as ex- 
plained later, is another important body within 
the Organization. The President of the Council 
is Dr. Edward Warner, formerly Vice Chairman 
of the United States Civil Aeronautics Board. In 
charge of the permanent secretariat is Secretary 
General Albert Eoper, formerly Secretary Gen- 
eral of the International Commission for Air 
Navigation (Cina). 

Work in the Technical Field 

In view of the great speed with which modem 
airplanes traverse the earth and the large number 
of civil aircraft flying internationally, it 
was necessary that the Organization undertake 
at once the work of standardizing international 
air-navigation facilities and developing uniform 
aircraft-operational procedures. 

The Air Navigation Committee of the Council 
directs the technical work of the Organization. 
Work was begun in October 1945 on developing 
"Recommendations for Standards, Practices, and 
Procedures", which may become legally binding 
under the Chicago convention when adopted by 
the Council. The First Assembly of Icao by a 
resolution adoi^ted the following definitions : 

'■'■Standards: Any specification for materiel, per- 
formance, personnel, or procedures, the uniform 
application of which is recognized as necessary 
for the safety or regularity of international air 
navigation and to which Contracting States will 
conform in accordance with the Convention; in 
the event of impossibility of compliance, notifica- 
tion to the Council is compulsory under Article 
38." 

^'■Recommended Practice: Any specification for 
materiel, performance, personnel, or procedures, 
the uniform application of which is recognized as 
desirable in the interest of safety, regularity, or 
efficiency of international air navigation, and to 
which Contracting States will endeavor to con- 
form in accordance with the Convention." 

Ten specialized categories have been established 
in technical matters; aerodromes, air routes, and 
ground aids; meteorology; rules of the air and 
air-traffic control; communications; aeronautical 
maps and charts; search and rescue; personnel 
licensing ; accident investigation ; operating prac- 
tices; and airworthiness. Each category is 
handled initially by a division, that is, an inter- 



464 



Department of State Bulletin 



national meeting; in which all member states may 
participate. The technical recommendations 
drawn up by the divisions are submitted to all 
member states for review and comment prior to 
possible amendment by the Air Navigation Com- 
mittee and adoption by the Council. During re- 
cent months the most important activity of the 
Organization in the technical field has been the 
review of "Picao Recommendations for Standards, 
Practices, and Procedures" with a view to their 
adoption as international standards and recom- 
mended practices under article 37 of the conven- 
tion. 

Among the problems of standardization yet to 
be solved is the unification of numbering and 
dimensional systems used in comiection with 
international air navigation. Icao has worked 
hard but made little progress in resolving the con- 
troversy between the proponents of the metric and 
English systems. 

In addition, Icao is faced with the general prob- 
lem of implementing its standards and recom- 
mended practices. Many member states in this 
postwar transitional period are faced with drastic 
economy measures and find it difficult to provide 
the type of air-navigation facilities and aircraft 
needed to carry out Icao's technical decisions. 
Even such countries as the United States may find 
it difficult to put into practice all of Icao's tech- 
nical decisions, especially since there is a very real 
question as to whether Icao standards should be 
applied to purely domestic aviation practices. The 
Air Coordinating Committee of the United States 
Government has agreed that Icao's standards for 
air navigation should be applied to our national 
aviation practices, both domestic and interna- 
tional, except when implementation definitely 
would be detrimental to the national interest, 
could not be effected under existing legislation, or 
would impose undue hardship on our various 
aviation activities. 

During the fall of 1945 the Interim Council es- 
tablished 10 regional areas: North Atlantic, 
European-Mediterranean, Caribbean, Middle East, 
South Pacific, South American, South Atlantic, 
Southeast Asian, North Pacific, and African- 
Indian Ocean. A series of regional air-naviga- 
tion meetings was inaugurated in order to take 
inventory of international air-navigation facili- 
ties, determine requirements for safe operations in 

April 11, 1948 



the various regions, and develop special regional 
operating "procedures." ' 

One of the most interesting developments which 
had its beginning at a regional meeting is the 
North Atlantic Ocean weather ship station pro- 
gram. In the spring of 1946, the North Atlantic 
Koute Service Conference recommended to the 
Interim Cotmcil the establishment of 13 ocean 
weather ship stations. The stations not only 
would provide essential weather data to permit 
safe and economical operation of the heavily 
troubled North Atlantic routes, but also would 
provide electronic air-navigation aids and would 
serve in emergencies as search and rescue units. 

Following approval of the program by the 
Council, the Interim Assembly of Picao in May 
1946 decided that the ocean weather stations could 
not be financed from the Picao general fund. In- 
stead, the Assembly resolved that the program 
should be carried out by contributions "in kind or 
in cash" from interested states. At the London 
Conference on North Atlantic Ocean Weather 
Stations, held under the auspices of Picao in Sep- 
tember 1946, an international agreement was 
reached whereby the 13 weather stations were to 
be established and maintained by eight different 
states, with Picao assuming responsibility for 
coordination of the progi-am.* 

The Organization's authority for carrying out 
the ocean weather ship station program and other 
"joint-support" projects is contained in chapter 
XV of the Chicago convention, which places on 
the Council the responsibility for consulting with 



' To date, the following regional air-navigation meetings 
have been held : North Atlantic Route Service Conference 
in Dublin, from Mar. 4-27, 1946 ; European-Mediterranean 
Koute Service Conference in Paris, from Apr. 24-May 15, 
liM6; Caribbean Regional Air Navigation Meeting in 
Washington, from Aug. 26-Sept. 13, 1946; Middle East 
Regional Air Navigation Meeting in Cairo, from Oct. 1-18, 
1946 ; South Pacific Regional Air Navigation Meeting in 
Melbourne, from Feb. 4-22, 1947 ; South American Re- 
gional Air Navigation Meeting in Lima, from June 17-July 
7, 1947; and South Atlantic Regional Air Navigation 
Meeting in Rio de Janeiro, from July 15-31, 1947. 

'The London agreement has not yet been fully imple- 
mented. As of Feb. 17, 1948, only seven ocean weather 
stations were in operation : two maintained by the United 
States, two by the United Kingdom, one by France, one by 
Belgium and the Netherlands jointly, and one main- 
tained part time by Canada. 

465 



a member state which, in its opinion, fails to pro- 
vide adequate air-navigation facilities for inter- 
national carriers. The Council is also to consult 
with other states affected by the lack of proper air- 
navigation facilities — airports, radio, and meteor- 
ological services, ete. — and make recommendations 
for improvements. If the member state is willing 
to remedy the situation but unable to bear the cost 
of the new facilities, the Council may agree to 
provide all or a portion of the funds. The Or- 
ganization may finance "joint .support" projects 
to a limited extent by drawing on its general fund, 
but for the most part will make special assess- 
ments, as in the case of the ocean weather ship sta- 
tions, against the various member states in pro- 
portion to their use of the air-navigation facilities 
in question. 

The "joint support" program of Icao promises 
to be one of the most valuable contributions of the 
Organization to international civil aviation. In 
addition to the North Atlantic Ocean weather ship 
stations, the Organization is at the present time 
sponsoring the joint operation of the loran station 
at Vik, Iceland. Member states furnishing finan- 
cial and technical assistance for operation of the 
station are Canada, France, Iceland, the Nether- 
lands, the United States, and the United King- 
dom, whose flag lines use this air-navigation 
facility when flying across the Atlantic. 

Work in the Economic Field 

The Chicago Aviation Conference, in drawing 
up two separate agreements — the international air- 
services transit agreement and the international 
air-transport agreement — for signature and ac- 
ceptance by states members of the Organization, 
anticipated the difficulties inherent in postwar at- 
tempts to solve the problem of international ex- 
change of aviation privileges on a multilateral 
basis. Thirty-six states accepted the transit 
agreement, incorporating the "two freedoms", but 
only 17 states accepted the transport agreement, 



'The United States, Nicaragua, the Dominican Republic, 
and China, which accepted the air-transport agreement, 
subsequently withdrew from the agreement. 

"The Fal Division's terms of reference also include 
matters pertaining to financial and monetary regulations, 
taxes, police and immigration requirements, military 
restrictions, and regulations imposed by national and 
international aeronautical authorities. 



incorporating the "five freedoms."" The latter 
agreement was not an effective medium for the 
establishment of postwar international air routes, 
and the Organization as early as August 1945 
directed its Air Transport Committee to under- 
take the development of a multilateral agreement 
on commercial rights in international air trans- 
port. The subject was explored extensively at the 
PiCAO Interim Assembly in May 1946 and the 
IcAO First Assembly in May 1947 but without ar- 
rival at an acceptable agreement. A special Icao 
commission meeting in Geneva, Switzerland, in 
November 1947 found that the time was not ripe 
for drawing up a multilateral agreement which 
would be generally acceptable. 

Speed and the ability to span natural barriers 
are the major advantages air transportation has 
to offer. Today, however, airlines flying inter- 
nationally, along with other types of foreign com- 
merce, are faced with many serious delays and 
hindrances arising out of governmental regula- 
tions and laws. Methods of handling customs and 
border clearances have not yet been revised to 
meet the needs of rapid air transit. Although 
bilateral conventions for the avoidance of double 
taxation have been concluded between the United 
States and Sweden, Canada, the United Kingdom, 
and France, much still remains to be done in this 
field in order to relieve international air carriers, 
along with others engaged in foreign trade, of 
the economic burdens arising from taxation of 
their income by the foreign country or covmtries in 
which they do business as well as by their home- 
land. International airlines today are also seeking 
relief from customs duties on equipment imported 
into foreign countries for installation as part of 
the air carriers' own air-navigation facilities. In 
certain instances, airlines flying internationally 
find that foreign immigration laws interfere with 
'their technical programs by preventing the assign- 
ment at overseas posts of trained airline tech- 
nicians. 

IcAo's Division on Facilitation of International 
Air Transport (Fal), deals with the removal of 
obstacles to aircraft, passengers, and cargo arising 
from national laws and regulations. The Fal 
Division, after study of the problem of how to 
bring administrative practices abreast of avia- 
tion's technical progress, prepared detailed rec- 
ommendations on customs procedures and quar- 
antine and immigration regulations.'" In June 



466 



Department of State Bulletin 



1946, tlie PiCAO lecommendations for standards, 
practices, and procedures on facilitation of inter- 
national air transport were approved by the In- 
terim Council and recommended to the member 
states for application. Although these recom- 
mendations have been by no means universally 
applied, experience gained with them to date 
should prove of value to the Fal Division when 
it meets in Europe in May 1948 to consider new 
and revised recommendations. In addition to 
working direct with member states, Icao is co- 
operating with other international organizations, 
such as the World Health Organization and the 
International Air Transport Association, which 
also have programs for the facilitation of inter- 
national travel. 

The Statistics Division of the Air Transport 
Committee is charged with the collection and 
study of data on origin and volume of interna- 
tional air traffic and its relation to facilities pro- 
vided ; also data on government subsidies, tariffs, 
and operation costs. Since 1945 some member 
states have been submitting traffic and financial 
data on forms drawn up by the Organization, but 
much still remains to be done to secure the coopera- 
tion of other member states which have made little 
effort to discharge their obligations in this field. 
The session of Icao's Statistics Division which 
opened in Montreal on January 13, 1948, con- 
sidered methods by which improvements could be 
made in the air-transport statistical reporting 
forms, the promptness with which they are filed, 
and their analysis and publication ; also the possi- 
bility of collecting other types of aviation statis- 
tics, such as airport and accident statistics. 

Other subjects under study by the Air Transport 
Committee at the present time are the possibility 
of international ownership and operation of the 
world's trunk air routes; the problem of differ- 
entiating between scheduled and nonscheduled air 
services ; the rules of procedure to govern the filing 
of aviation agreements and contracts between 
member states or their airlines, as required under 
chapter XVII of the Chicago convention; the 
possibility of reducing international air-mail 
rates, the standardization of charges at interna- 
tional airports; and the double taxation of opera- 
tors of international airlines. The views and data 
submitted by member states on these problems will 
form the bases for reports to be submitted by the 

April II, 1948 



Air Transport Committee through the Council to 
the next Assembly of all member states, which is 
scheduled to be held in Geneva in June 1948. 
Work in the Legal Field 

With the creation of a permanent Legal Com- 
mittee by the First Assembly of Icao in May 1947, 
the Organization took over the work of imifying 
and codifying private international air law, which 
formerly had been handled by the Comite Inter- 
national Technique d'Experts Juridiques Aeriens 
(Citeja).^^ At its first meeting held in Brussels, 
in September 1947, the Legal Committee reached 
agreement on a draft convention on international 
recognition of rights in aircraft, wltich would 
facilitate the financing of aircraft engaged in 
international civil aviation. The draft conven- 
tion will be presented to the 1948 Icao Assembly 
for approval by both member and noiunember 
states. In addition to handling private air-law 
matters, the Legal Committee is charged with ad- 
vising the Organization on public air law, e. g., in 
connection with the sovereignty of a state over 
the air space above its territory and the elimina- 
tion of discriminatory national regulations. 

The convention on international civil aviation 
defines the aims and objectives of Icao as follows : 

"to develop the principles and techniques of in- 
ternational air navigation and to foster the 
planning and development of international air 
transport so as to : 

"(a) Insure the safe and orderly growth of 
international civil aviation throughout the world ; 

"(6) Encourage the arts of aircraft design and 
operation for peaceful purposes ; 

"(c) Encourage the development of airways, 
airports, and air navigation facilities for interna- 
tional civil aviation; 

" (d) Meet the needs of the peoples of the world 
for safe, regular, efficient and economical air trans- 
jjort ; 

"(e) Prevent economic waste caused by unrea- 
sonable competition ; 

" (/) Insure that the right of contracting States 

(Continued on page 491) 

"Established at Paris on May 7, 1926, and dissolved 
following its sixteenth and iinal session, held in Montreal 
( May 10-22, 1947 ) , concurrently with the First Assembly 
of Icao. 

467 



FOREIGN AID AND RECONSTRUCTION 



Foreign Assistance Act of 1948' 



STATEMENT BY THE PRESIDENT 



[Released to the press by the White House April 3] 

Few Presidents have had the opportunity to 
sign legislation of such importance as the Foreign 
Assistance Act of 1948. 

The signing of this act is a momentous occasion 
in the world's quest for enduring peace. 

I commend the Congress of the United States for 
the cooperation it has evidenced in the prompt pas- 
sage of this measure. 

Its passage is a striking manifestation of the fact 
that a bipartisan foreign policy can lead to effec- 
tive action. It is even more striking in its proof 
that swift and vigorous action for peace is not in- 
compatible with the full operation of our demo- 
cratic process of discussion and debate. Those 
who are skeptical of the effectiveness of a demo- 
cratic system should ponder the lesson of the enact- 
ment of this measure. 

Our program of foreign aid is perhaps the great- 
est venture in constructive statesmanship that any 
nation has undertaken. It is an outstanding ex- 
ample of cooperative endeavor for the common 
good. 

The Foreign Assistance Act is the best answer 
that this country can make in reply to the vicious 
and distorted misrepresentations of our efforts for 
peace which have been spread abroad by those who 
do not wish our efforts to succeed. This measure 



is America's answer to the challenge facing the 
free world today. 

It is a measure for reconstruction, stability, and 
peace. Its purpose is to assist in the preservation 
of conditions under which free institutions can 
survive in the world. I believe that the determi- 
nation of the American people to work for con- 
ditions of enduring peace throughout the world, as 
demonstrated by this act, will encourage free men 
and women everywhere and will give renewed hope 
to all mankind that there will one day be peace 
on earth, good will among men. 



Statement by George C. Marshall 

[Released to the press by the White House April 3] 

The decision of the United States Govern- 
ment as confirmed by the Foreign Assistance 
Act of 1948 is, I think, an historic step in the 
foreign policy of this country. 

The leaders in the Congi-ess and the mem- 
bership generally have faced a great crisis 
with courage and wisdom and with legis- 
lative skill, richly deserving of the approval 
and the determined support of the people. 



Program for Development of Sicily and Southern Italy 



STATEMENT BY ROBERT A. LOVETT 
Acting Secretary of State 



[Released to the press April 1] 

Representatives of the Committee for Economic 
and Social Development of Italy, composed of 
prominent American citizens of Italian origin, 
called on the Acting Secretary of State on April 1 
to inform him of their program for assisting in 
the (development of Sicily and southern Italy. 
During the course of the conversations Mr. Lovett 
mode the following remarks 

I am happy to receive the Committee for Eco- 

' Public Law 472 (80th Cong., 2d sess.). 

468 



nomic and Social Development of Italy, and to 
hear of your program to contribute to the welfare 
of the people of Sicily and southern Italy. 

The Government and people of the United 
States have already done much to help the Italians 
help themselves back to economic recovery and 
the restoration of a truly democratic way of life. 
The efforts and the progress which the Italian 
nation have already made in this direction have 
inspired the admiration of the world. 
(Continued on following page) 

Department of State Bulletin 



NINTH INTERNATIONAL CONFERENCE OF AMERICAN STATES 



Interdependence of the Americas 



ADDRESS BY GEORGE C. MARSHALL > 
Chairman, U.S. Delegation 



It is a genuine pleasure for me to meet again 
•with the distinguished delegates of the American 
republics, and especially so under the hospitable 
auspices of the Republic of Colombia. I wish to 
express through His Excellency Doctor (Laure- 
ano) Gomez, Foreign Minister of Colombia, our 
distinguished presiding officer, the very sincere ap- 
preciation we feel for the Government of Colombia 
as our host, our respectful admiration for His 
Excellency President Ospina Perez, and our sti'ong 
feeling of friendship and regard for the people of 
Colombia. 

It is my privilege and duty to convey to the con- 
ference warm greetings from President Truman 
with his earnest wisli that our efforts here will be 
successful in behalf of all the peoples of the 
Americas. 

Ten years have passed since the Eighth Inter- 
national Conference of American States was held 
in Lima. The momentous events of that period 
delayed this Ninth Conference but did not halt 
progress in inter- American cooperation. 

The emergency meetings of the Foreign Min- 
isters, which enabled us to coordinate our wartime 
efforts, were followed by the all-important confer- 
ence at Mexico City in 1945 which resulted in the 
Act of Chapultepec, and the Conference on the 
Maintenance of Continental Peace and Security so 
successfully concluded last August at Rio de Ja- 
neiro with the treaty of reciprocal assistance. 

We are here to consolidate and to carry forward 
the decisions of these previous conferences. We 
have to consider a lengthy agenda to give effect to 
the provisions of the ninth resolution of the Mex- 



ico City conference, pertaining to the reorganiza- 
tion, consolidation, and strengthening of the inter- 
American system. This is no small undertaking, 
for what we do in this respect will have an im- 
portant bearing on the future of all our joint un- 
dertakings. The proposed organic pact will be the 
very heart of our hemispheric organization. 

Cooperation among our countries has been 
greatly broadened and intensified during recent 
years. We need for this cooperation an organiza- 
tional structure which will on the one hand be 
adequate to the increased responsibilities placed 
upon it, and on the other hand, efficiently adminis- 
tered so that duplication of effort may be avoided. 
The inter-American conferences and meetings of 
Foreign Ministers are the instruments through 
which the inter-American system formulates 
policy and reaches decisions on questions of major 
importance. The drafters of the organic pact have 
wisely concluded that to insure that these policies 
and decisions are effectively carried out, the Pan 
American Union, as the central permanent agency 
of the inter-American system, must be given a 
greater responsibility and commensurate staff. 
Under the direction of the inter-American confer- 
ences and meetings of Foreign Ministers the Pan 
American Union should play an increasingly sig- 
nificant role in the effective functioning of the 
inter- American system. 

I am sure we all are agreed that the development 

' Made before the second plenary session in Bogota, Co- 
lombia, on Apr. 1, 1948, and released to the press on the 
same date. The Secretary of State is serving as Chairman 
of the U.S. Delegation to the Conference. 



(Continued from preceding page) 
But a further effort is required before we can 
say the task is done. That effort is the European 
Recovery Program, which has just been approved 
by the Senate and House of Representatives. Its 
primai-y purpose is to make possible the economic 
recovery of the peoples of Europe by providing 
American aid to reinforce their self-help and co- 
operation so that they can live together in peace 
and security. Certain basic plans for economic 
rehabilitation drawn up by the Italian Govem- 

Aprii 77, 7948 

783397 — 48 2 



ment itself form part of the European Recovery 
Progi-am for Italy. These plans include the re- 
habilitation of southern Italy and Sicily — land 
reclamation, the building of roads and electric 
power lines, the modernization of agriculture, and 
the establisliment of local industries. 

I should like to say again that I am happy to 
hear of your plans to support and assist the Italian 
people in this great project, and I am sure you 
can make a most valuable contribution towards 
the aim for which we are all working. 

469 



CONFERENCe OF AMERICAN STATES 

of the inter- American system is within the concept 
of the United Nations and contributes to the at- 
tainment of its objectives. 

The urgent need of effective methods of eco- 
nomic cooperation presents us with problems that 
call for the utmost good will and understanding in 
order to accommodate complex interests. 

Agreement on a convention setting forth the 
procedures for the pacific settlement of disputes is 
one of the necessary aims of this conference. By 
this means we will establish a broad juridical basis 
for the peaceful adjudication of any differences 
that may arise among the American states. At 
the same time we will set an example to a dis- 
tracted world in the maintenance of peace among 
neighbor states under an accepted system of law 
that assures justice and equity to all nations, large 
and small. 

Significant questions related to social progress 
and the rights of the individual man are to receive 
full consideration in the deliberations of the con- 
ference. These are matters in which all our 
peoples are deeply concerned. They rightfully 
expect us to take positive action for their protec- 
tion and welfare. That, in reality, is the purpose 
of our endeavors. 

The overwhelming desire of the people of the 
world is for peace and security, freedom to speak 
their, thoughts, freedom to earn a decent living 
in their own way. It is the earnest, the very gen- 
uine desire of the people of my country to continue 
to assist, so far as they are able to do so, the other 
people of the world to attain these objectives. 

We have encountered, as you are aware, the 
determined and open opposition of one group of 
states. If the genuine cooperation of the Soviet 
Union could be secured, world recovery and peace 
would be assured. Until such cooperation is se- 
cured, we must proceed with our own efforts. 

My Government has assumed heavy responsi- 
bilities in this undertaking, but we cannot do the 
job alone. We need the understanding and the 
cooperation of other nations whose objectives are 
the same as ours. 

We must face reality. Allow me to talk to you 
frankly regarding the tremendous problems the 
United States is facing. After four years of su- 
preme effort and a million casualties, we had looked 
forward to a state of tranquillity which would per- 
mit us to reorganize our economy, having made 
vast expenditures in natural resources and money. 
Instead my people find themselves today faced 
with the urgent necessity of meeting staggering 
and inescapable responsibilities — humanitarian, 
political, financial, and military — all over the 
world, in western Europe, in Germany and Aus- 
tria, in Greece and Turkey, in the Middle East, in 
China, Japan, and Korea. Meeting these unprece- 
dented responsibilities has demanded tremendous 
drafts on our resources and imposed burdensome 

470 



taxes on our people. These are heavy exactions — 
far heavier than seems to be realized. 

The basic economic trouble has been the collapse 
of European economy. Europe was formerly the 
most important center of international trade, and 
the disastrous impact of the war on the European 
economy has been felt everywhere in the world. 
The Western Hemisphere, for example, formerly 
enjoyed a substantial business with Europe and the 
virtual breakdown of that commerce has adversely 
and directly affected the American republics. The 
recovery of Europe is therefore a preiequisite to 
the resumption of trade relationships. 

In the planning of the European Recovery Pro- 
gram, the United States gave and will continue to 
give careful consideration to the interests of the 
countries represented at this conference, both as to 
the procurement of materials to be purchased and 
the need of goods in short supply. 

The difficulties you have experienced in obtain- 
ing certain materials from the United States to 
meet the needs of your industrial and agricultural 
development are understood. The problem of 
shortages is not yours alone. I am constantly un- 
der the necessity of explaining and defending this 
situation to manufacturers and particulany to 
farmers in the United States, who are themselves 
short of tools of production, of fertilizers, of steel, 
and other vital elements of our economy. The 
pressure on our production comes from every 
direction. 

The Recovery Program provides the economic 
means of achieving a purpose essentially moral in 
nature. We propose to provide the free nations of 
Europe with that additional marginal material 
strength they requii-e to defend the free way of life 
and to preserve the institutions of self-government. 
If human rights and liberties are blotted out in 
Europe, they will become increasingly insecure in 
the new world as well. This is a matter of as much 
concern to your countries as it is to mine. 

The United States cannot continue to bear alone 
the burdens on its own economy now necessary to 
initiate a restoration of prosperity. We have to 
look to other nations whose interests correspond 
with ours for active cooperation. All that are 
able should contribute. All will share the benefits. 
We have poured out our substance to secure the 
victory and prevent suffering and chaos in the first 
years of peace, but we cannot continue this process 
to the danger of e.xhaustion. 

The rewards of freedom are economic as well 
as political. Only in such freedom can opportun- 
ity and incentive give full rein to individual 
initiative. 

We have already agreed to certain principles 
that are stated in the Economic Charter of the 
Americas, signed in Mexico City in 1945. In that 
document the American republics proclaimed their 
common purpose to promote the sound develop- 

Departmenf of State Bulletin 



merit of national economies. The charter pointed 
the way toward realization of this aim through the 
encouragement of private enterprise and the fair 
treatment of foreign capital. 

Our specific task here is to find workable 
methods by which our principles may be effectively 
applied in practical affairs. In a few moments I 
shall discuss the proposals of the United States 
Delegation for achieving this objective. But first 
I wish to draw attention to the general back- 
ground from which they proceed. I do so because 
I believe that the experience of my country in its 
economic development offers some useful prece- 
dents. 

One of the principal needs of the United States 
after it achieved independence was private capital 
for development of its resources and for western 
expansion. From overseas, and this is the point 
I wish to emphasize, at first cautiously and often 
with misunderstanding on both sides, the ventui'e 
capital of Europe was invested in the new United 
States of America. 

The great benefits accruing to the people of the 
United States from its material development were 
attributable in an important degree to this assist- 
ance received from abroad which together with 
the economic and political freedom of action en- 
abled our people to capitalize rapidly upon the 
great natural resources of the country, and thus 
develop the production which has enabled us to 
bear today the heaviest responsibilities ever placed 
upon a single nation. 

By 1900 the people of the United States them- 
selves were becoming large investors in enterprises 
abroad. But internal development continued un- 
abated. Despite the transformation from debtor 
to creditor nation and the accumulation of capital 
for foreign investments of its own, the United 
States continues to welcome money and technical 
assistance from other countries. 

The point I wish to make is that even after the 
United States had achieved economic maturity and 
had become a major source of venture capital 
foreign investors continued to participate in the 
industrial and commercial growth of the nation 
without discrimination. 

This policy has enabled the United States to 
prosper. The large-scale exchange of capital, 
goods, and services ; the system of free enterprise ; 
the confidence of other people in our future and 
the protection afforded foreign investments; the 
contributions made by skilled, energetic immi- 
grants — all these helped immeasurably in making 
our nation not only productive and vigorous, but 
free. I repeat, this policy has enabled the United 
States to prosper, and I wish here to stress that 
it has enabled the United States to do a great deal 
for other countries, including the protection of 
their freedoms along with our own. 

May I at this time invite your attention to a 

April 11, 1948 



CONFEKENCC OF AMERICAN STATES 

fact of particular significance related to the broad 
benefits to which I have just referred ? That is, the 
fact that these benefits have been transferred into 
human values through the elevation of the real 
wages of labor to a point higher than has been 
achieved under any other system of enterprise in 
the history of mankind. These benefits auto- 
matically transfer themselves into the cultural and 
physical advancement of all of the people. 

The United States is qualified, I submit, by its 
own historical experience to I'espond understand- 
ingly to the purpose of other American republics 
to imjjrove their economic status. We understand 
the wish to achieve balanced economies through 
the development of industries, mechanization of 
agriculture, and modernization of transportation. 

My Government is prepared to increase the scale 
of assistance it has been giving to the economic 
development of the American i-epublics. But it is 
beyoncl the capacity of the United States Govern- 
ment itself to finance more than a small portion of 
the vast development needed. The capital re- 
quired through the years must come from private 
sources, both domestic and foi-eign. 

As the experience of the United States has 
shown, progress can be achieved best through in- 
dividual effort and the use of private resources. 
Encouragement should therefore be given to the 
increase of investment capital from internal as 
well as external sources. It is obvious that foreign 
capital will naturally gravitate most readily to 
countries where it is accorded fair and equitable 
treatment. 

For its part, the United States fully supports 
the promotion of economic development in the 
American republics. We advocate the prompt 
preparation of sound development programs, 
which will set specific and realistic goals to be 
accomplished in the next few years. 

The United States supports the International 
Bank for Reconstruction and Development as an 
important source of long-term capital for develop- 
ing the economies of the American republics. My 
Government confidently expects the role of this in- 
stitution to be one of increasing usefulness. 

The President of the United States is submitting 
to Congress a request for an increase in the lending 
authority of the Export-Import Bank which will 
be available for sound projects. These Govern- 
ment funds will be in addition to the private fi- 
nancing which will be needed for a much greater 
number of development projects. 

The United States has studied the proposals 
regarding the taxation of foreign investments, 
with a view to avoiding double taxation and to 
encouraging the flow of private capital into other 
countries desiring it. I am glad to report that 
the President has under consideration measures to 
liberalize taxes on capital invested in foreign coun- 

471 



CONFERENCE OF AMERICAN SMTES 

tries. These measures are designed to encourage 
not only initial investment but also the retention 
and reinvestment abroad of eai'nings derived from 
such capital. These measures also would liberalize 
the tax treatment of United States citizens re- 
siding abroad, and should therefore encourage 
technical experts to accept employment in other 
countries. 

My Government attaches special importance to 
efforts to improve health, sanitation, education, 
and agricultural and industrial processes through- 
out the Hemisphere. We look forward to an ex- 
pansion of the cooperative efforts of the American 
republics in these fields. We are surveying the 
availability of technical experts who may collab- 
orate in the progress and development of the Amer- 
ican republics, as recently authorized by the Con- 
gress on a more flexible basis. 

The economic advancement and security of the 
Hemisphere are supremely important to all coun- 
tries, large and small, and to every citizen of our 
countries. Through joint endeavor, with each 
country accepting its share of responsibility and 
seeking faithfully to carry out its obligations, I 
am confident that the American republics will con- 
sistently move forward and attain the objectives 
which we all so earnestly desire. 

Before concluding I wish to call attention to the 
close relationship between the solemn pacts we are 
here to conclude at Bogota and the treaty of re- 
ciprocal assistance signed at Rio de Janeiro last 
September. Together, these pacts, when ratified, 
will form a harmonious whole guaranteeing the so- 
cial, cultural, and economic progress of the Amer- 
icas and at the same time the preservation of their 
independence, security, and sovereignty. I am in- 
formed that ten countries have already ratified the 
treaty of reciprocal assistance and that several 
other nations plan to take positive action along this 
line. It is to be hoped that during our labors here 
we may receive the gratifying word that the re- 
quired number of ratifications have been deposited 
to enable the treaty to enter into effect. Such ac- 
tion is particularly important in the present world 
situation. We need the other vital measures we 
are to consider here as indispensable contributions 
to the welfare of the Americas. The peoples for 
whom we speak are impatient to launch this prom- 
ising cooperative endeavor, for they see in it their 
greatest hope for achieving a better life for them- 
selves, their children, and their children's children. 
They look to this conference to set in motion the 
concerted effort that will make their constant 
dream of peace and plenty a living, satisfying 
reality. We must not fail them. 

\FoUowmg the concliision of his formal address 
to the conference, Secretary Marshall spoke ex- 
temporaneously substantially as follows^ 

As has been the case with my predecessors here, 
it has been necessary for me to speak formally 

472 



from a prepared statement. Much of what is said 
here goes far beyond this table to ears other than 
ours. Now my friends, I wish to speak to you 
personally and directly. I feel that in the dis- 
cussions, particularly of economic matters, so 
much of detail necessarily becomes involved that 
the great purpose for which we are assembled and 
the situation in which we find ourselves becomes 
somewhat submerged, if not at least partially lost 
sight of. 

I feel that what has already been said and, 
I suppose, much of what has yet to be said refers 
directly or indirectly, but specifically in many in- 
stances, to my country, to its international actions 
and present undertakings. I also have the feeling 
that there is a very limited understanding of the 
tremendous responsibilities and the equally tre- 
mendous burdens that the Government of the 
United States has been compelled to assume and 
which is very pertinent to our discussions here in 
this conference. For example, at the present 
moment our Legislature is under the necessity of 
considering at the request of the President the 
strengthening of our armed forces which would in- 
volve the expenditure of additional billions. Now 
you have a direct interest in that, because we hope 
that through such a process we can terminate this 
subversion of democratic governments in western 
Europe, and we can reach an understanding to 
maintain the peace and security, the tranquillity, 
and the future trade developments of the entire 
Western Hemisphere and not alone the United 
States. But the great burden of such action has 
rested on the people of the United States, and it 
is a very heavy burden. 

I think that I can to a reasonable degree under- 
stand your reactions and your views because I had 
a considerable experience along very similar lines 
immediately preceding and during the war years. 
As Chief of Staff of the United States Army from 
the fall of 1939 up until almost the end of the 
war, I was under continual and the heaviest pos- 
sible pressure from almost every part of the world, 
from rulers of countries, from our own military 
commanders in those regions, and from groups or 
sections at home or their representatives in Con- 
gress who felt very deeply regarding a particular 
situation. Now if we had not resisted those multi- 
tudes of pressures, all of which were based on the 
logical belief to a reasonable extent of the people 
concerned of the importance, the necessity, and 
urgency of their situation, the duration of the war 
and the situation at the end of the war would 
probably have been quite different. 

The United States today with its tremendous 
responsibility, which involves us all over the 
world, has to proceed with great wisdom in all it 
does and what it feels it must do in the future. I 
ask you to have this in mind and to realize what a 

Department of State Bulletin 



tremendous burden the people of my country have 
undertaken. You profit by it as much as we do. 

I was sitting here yesterday and regarding this 
very decorative and impressive mural painting 
(the mural of Liberator Simon Bolivar) wliicli 
illuminates this room. It suddenly occurred to me 
that it had a peculiar significance in relation to an 
event far distant from us here — in the far Pacific, 
as a matter of fact. The last territory that we 
wrested from the hands of the Japanese was a 
small island called Okinawa, between Formosa and 
Japan. That was the last big fight. One hundred 
and ten thousand Japanese were killed. The only 
captured were those wounded to the extent that 
they could not commit suicide. We had very 
heavy casualties. That operation was carried out 
by the 10th United States Army. But the point 
that occurred to me yesterday was this : the Com- 
mander of that Army was Simon Bolivar Buck- 
ner. He died in the last days of the fight — on the 
front line. Surely, that has some significance here 
in this room dominated by this painting in the 
rear of me; that out in the Pacific that man who 
made a great contribution and finally gave his life 
for the peace and security of the Pacific, that it 
would no longer carry a threat to your western 
shores, should have borne the name of your great 
liberator. Certainly that indicates something of 
our common purpose and much more of our com- 
mon bonds. 



U.S. DELEGATION TO NINTH INTERNATIONAL 
CONFERENCE OF AMERICAN STATES 



[Released to the press March 27] 

Following is the United States Delegation to 
the Ninth International Conference of American 
States, which convenes in Bogota, Colombia, on 
March 30, 1948 : 

Chairman 

George C. Marshall, Secretary of State 

Delegates 

Willarcl L. Beaulac, Ambassador to Colombia 
John W. Snyder, Secretary of the Treasury 
W. Averell Harriman, Secretary of Commerce 
Norman Armour, Assistant Secretary of State for politi- 
cal affairs 
Charles F. Brannan, Assistant Secretary of Agriculture 
William D. Pawley, Ambassador to Brazil 
Walter J. D<innelly, Ambassador to Venezuela 
William McC. JIartin, Jr., Chairman, Board of Directors, 

Export-Import Bank of Washington 
Paul C. Daniels, Director, OflJce of American Bepubllc 
Affairs, Department of State 

Special Congressional Advisers 

Donald L. Jackson, Member of Foreign A-ffalrs Committee, 
House of Representatives 

Michael J. Mansfield, Member of Foreign Affairs Commit- 
tee, House of Representatives 



April 11, 1948 



CONFERENCE OF AMERICAN STATBS 

Alternate Delegates 

John C. Dreier, Chief, Division of Special Inter-American 
Affairs, Department of State 

M. B. Ridgway, Lt. Gen., U.S.A., Department of the Army 

William Sanders, Associate Chief, Division of Interna- 
tional Organization Affairs, Department of State 

Leroy D. Stinebower, Deputy U.S. Representative on the 
Economic and Social Council of the United Nations 

Jack B. Tate, Deputy Legal Adviser, Department of State 

Advisers 

Thomas C. Blaisdell, Jr., Director, Office of International 
Trade, Department of Commerce 

Henry Chalmers, Commercial Policy Adviser, Office of 
International Trade, Department of Commerce 

John S. deBeers, International Finance Division, Depart- 
ment of the Treasury 

John J. Haggerty, Office of Foreign Agricultural Relations, 
Department of Agriculture 

John Halderman, Assistant Chief, Division of Interna- 
tional Organization Affairs, Department of State 

Osborne B. Hardison, Rear Admiral, U.S.N., Department 
of the Navy 

Hubert Haiinon, Lt. Gen., U.S.A.F., Department of the 
Air Force 

Edward Hidalgo, National Security Resources Board 

Edward A. Jamison, Division of Special Inter-American 
Affairs, Department of State 

Muna Lee, . Division of American Republics, Office of 
Information and Educational Exchange, Department 
of State 

Cecil B. Lyon, Special Assistant to Assistant Secretary for 
political affairs. Department of State 

Kenneth Meiklejohn, Assistant Solicitor, Department of 
Labor 

Otis B. MuUiken, Division of International Organization 
Affairs, Department of State 

Oscar M. Powell, Regional Director for the West Coast, 
Social Security Administration, Federal Security 
Agency 

Sherman S. Sheppard, Cliief, International Activities 
Branch, Bureau of the Budget, Executive Office of 
the President 

H. Gerald Smith, Special Assistant to the Assistant Sec- 
retary for economic affairs. Department of State 

Joseph H. Taggart, Economic Adviser to Chairman, Muni- 
tions Board, The National Military Establishment 

Lloyd Tibbott, Assistant to the Chief, Division of Regu- 
lations, Maritime Commission 

Marjorie M. Whiteman, Office of Assistant Legal Ad- 
viser for International Organization Affairs, Depart- 
ment of State 

Simon N. Wilson, Division of Special Inter- American 
Affairs, Department of State 

Special Assistant to the Chairman 

Marshall S. Carter, Special Assistant to the Secretary of 
State 

Special Assistant for Press Relations 

Michael J. McDermott, Special Assistant for Press Rela- 
tions, Department of State 

Secretary General 

Clarke L. Willard, Associate Chief, Division of Inter- 
national Conferences, Department of State 

Special Assistant to the Secretary General 

Frances E. Pringle, Division of International Confer- 
ences, Department of State 

Technical Secretary 

Ward P. Allen, Division of International Organization 
Affairs, Department of State 

(Continued on next page) 

473 



(Continued from preceding page) 

Assistant Technical Secretaries 

Donald M. Dozer, Acting Chief, Division of Eesearch 
for Latin America, Department of State 

Laura Iredale, Division of International Organization 
Affairs, Department of State 

John L. Kuhn, Executive Secretariat, Department of 
State 

Documents Assistant 

Margaret L. Moore, Division of Special Inter-American 
Affairs, Department of State 

Archivist 

Patricia Ann Foster, Division of Central American 
and Panama Affairs, Department of State 



Administrative Secretary 

Orion J. Libert, Division of International Conferences, 
Department of State 

Assistant Administrative Secretary 

Anthony A. Covins, Division of Foreign Service Ad- 
ministration, Department of State 

Administrative Assistant 

Ann Jablonski, Division of Finance, Department of State 

Secretaries of Delegation 

Howard E. Chaille, Division of Communications, Depart- 
ment of State 
Joseph W. Musiclf, Office of Controls, Department of State 
R. Richard Rubottom, Jr., Second Secretary of Embassy, 
Bogota 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



INTERNATIONAL WHEAT AGREEMENT SIGNED 

[Released to the press April 2] 

The international wheat agreement, which was 
open for signature in Washington from March 6 
until April 1, has been signed on behalf of all the 
importing and exporting countries listed in an- 
nexes I and II to article 2 of the agreement.^ 

The 36 signatory countries are Afghanistan, 
Australia, Austria, Belgium, Brazil, Canada, 
China, Colombia, Cuba, Czechoslovakia, Denmark, 
Dominican Republic, Ecuador, Egypt, the French 
Union and Saar, Greece, Guatemala, India, Ire- 
land, Italy, Lebanon, Liberia, Mexico, Nether- 
lands, New Zealand, Norway, Peru, Republic of 
the Philippines, Poland, Portugal, Sweden, Switz- 
erland, Union of South Africa, United Kingdom 
of Great Britain and Northern Ireland, United 
States of America, and Venezuela. 

The agreement is subject to formal acceptance 
by the signatory governments. 

The objectives of the agreement, as provided in 
article 1, are to assure supplies of wheat to import- 
ing countries and to assure mai'kets to exporting 
countries at equitable and stable prices. 



INVITATIONS TO ATTEND THE INTERNATIONAL 
AIR EXPOSITION EXTENDED 

At the request of William O'Dwyer, Mayor of 
the City of New York, the Department of State 
has transmitted on behalf of the City of New York, 
to all foreign governments having diplomatic mis- 
sions at Washington, invitations to send repre- 
sentatives to attend the International Air Exposi- 
tion on Mayor's Day, August 7, 1948. The repre- 

' For comments on the wheat agreement, see Bulletin 
of Mar. 28, 1948, p. 395. 

474 



sentatives of the foreign governments will be the 
oflBcial "uests of the City of New York on Mayor's 
Day. Although this event is not sponsored by the 
United States Government, the Department of 
State is transmitting the invitations of the Mayor 
of the City of New York in consideration of the 

feneral interest in the Golden Anniversary Air 
Exposition. 

U.S. TO ACT AS HOST TO FIFTH MEETING OF 
RUBBER STUDY GROUP 

[Released to the press March 29] 

The Department of State has announced that 
the United States Government will act as host to 
the fifth meeting of the Rubber Study Group 
which will convene at Washington April 26-May 
1, 1948, to review the world rubber situation. 
Invitations have been issued to the following 
countries whose Governments are members of the 
Group : Australia, Belgium, Canada, Ceylon, 
Czechoslovakia, Denmark, France, Hungary, 
Italy, Liberia, the Netherlands, and the United 
Kingdom. The United Nations, the Food and 
Agriculture Organization of the United Nations, 
and the Pan American Union have been invited to 
send observers. 

The Rubber Study Group was organized in 1944 
by the Governments of the Netherlands, the 
United Kingdom, and the United States. France 
has participated in all but the first meeting. At 
its fourth meeting at Paris in July 1947, the 
Rubber Study Group established a Management 
Committee which meets periodically at London. 
A permanent secretariat was set up at London 
by the Management Committee in 1947 to provide 
the Study Group with a full information service 
covering both the statistical situation and the 
general economic position as it relates to rubber. 

Department of State Bulletin 



U.S. TO ACT AS HOST TO SECOND MEETING OF 
TIN STUDY GROUP 

[Released to the press March 29] 

The Department of State has announced that 
the United States Government will act as host 
to the second meeting of the Tin Study Group 
which is scheduled to be held at Washington April 
19-24, 1948, to review the world tin situation. In- 
vitations have been issued to the following Govern- 
ments which are members of the Group: 
Australia, Belgium, Bolivia, Canada, China, 
Czechoslovakia, France, India, Italy, the Nether- 
lands, Siam, and the United Kingdom. The 
United Nations and the Pan American Union have 
been invited to send observers. 

The International Tin Study Group was estab- 
lished upon the unanimous recommendation of a 
world Conference on Tin held at London in Octo- 
ber 1946 at which the principal tin-producing and 
-consuming countries of the world were repre- 
sented. At the first meeting of the Study Group, 
held at Brussels in April of last year, it was agreed 
to establish a Management Committee consisting 
of seven member governments which would super- 
vise the work of the secretariat of the Group. 
This committee meets approximately four times a 
year alternately at Brussels and The Hague. The 
secretariat has been established at The Hague 
and is responsible for the provision of continuous 
information relating to the production and con- 
sumption of tin. 

FOURTH INTERNATIONAL CONGRESSES ON 
TROPICAL MEDICINE AND MALARIA PLANNED 

[Released to the press April 2) 

The program of the Fourth International Con- 
gresses on Tropical Medicine and Malaria, which 
are to be held in Washington May 10-18, is prac- 
tically complete, and it contains much to interest 
the medical profession. 

The meetings are sponsored by the Department 
of State in collaboration with other agencies of 
the United States Government and scientific socie- 
ties to encourage and facilitate the pooling of 
useful knowledge for the prevention and treatment 
of tropical diseases. Such an international con- 
gress is now long overdue, and since new knowl- 
edge and methods have been developed since the 
last meeting in 1938, particularly during the war 
years, it is more needed than ever before. 

Meetings will be in the Departmental Audito- 
rium, Department of Commerce Auditorium, and 
the Auditorium of the National Museum, provid- 
ing ample space to accommodate the 2,000 persons 
expected to participate. An elaborate display of 
scientific and commercial exhibits covering a wide 
range of tropical medicine will be exhibited in 
the Hall of Nations of the Washington Hotel. 

April 17, 1948 



AaiVmiS AND DEVELOPMENTS 

For the convenience of those in attendance and 
to conserve time, the meeting halls will be pro- 
vided with a simultaneous interpretation system so 
that speeches and papers will be heard in any one 
of the three official languages, English, French, 
and Spanish. Up to four scientific meetings will 
be held at one time. The subjects to be considered 
at the congresses cover a wide range. Considera- 
tion will be given to human diseases which 
debilitate and kill as well as interfere with pro- 
duction and trade. The pi'oblems of nutrition of 
man in the tropics together with the maladies of 
domestic animals will be discussed. Emphasis 
will be placed on the most effective uses of the 
insecticides which have given a new power over 
disease-spreading insects, as well as on the drugs 
which have recently been synthesized. To cover 
so wide a field the scientific program has been 
organized in 12 sections. There will be about 180 
papers in all presented by outstanding scientists 
from 37 countries. Daily programs of technical 
motion pictures have been scheduled. 

Highlights of the working program will be two 
special evening sessions, the first of which will 
commemorate the demonstration by Walter Reed 
of the mosquito transmission of yellow fever. 
The second will commemorate the fiftieth anni- 
versary of the discovery by Ronald Ross of the 
method of malaria transmission. Tours will be 
made to the National Institute of Health, the 
Naval Medical Research Institute, and the Army 
Medical Department Research and Graduate 
School. There will be a whole day of demonstra- 
tions at the Agricultural Research Center at 
Beltsville, Maryland, including the spraying of 
insecticides from the air. 

Entertainment for the delegates and members, 
in addition to private dinners and social functions, 
will include an official reception at the Pan Ajner- 
ican Union; a social gathering at the Shoreham 
Hotel; a garden party at Dumbarton Oaks; a 
trip by boat to Mount Vernon; and an official 
dinner at the Mayflower Hotel. The wives of 
members and delegates will be feted officially at a 
White House tea by Mrs. Truman and at a special 
luncheon at the Army-Navy Country Club in 
Arlington. 

Physicians, doctors of veterinary medicine, sani- 
tary engineers, nurses, bacteriologists, parasit- 
ologists, entomologists, chemists, and other pro- 
fessional persons should find much of value in the 
progi'am and also in the association with other 
scientists in the same fields from other lands. Any 
reputable professional person with qualifications 
and interest in any phase of tropical medicine will 
be eligible to become a member of the congresses. 
Anyone desiring further information should write 
to the Executive Secretary, Fourth International 
Congresses on Tropical Medicine and Malaria, 
Department of State, Washington 25, D.C. 

475 



THE RECORD OF THE WEEK 



Progress of Human Liberty in Democratic Forms 



BY GEORGE V. ALLEN i 
Assistant Secretary for Public Affairs 



Having taken my oath of office only yesterday, 
this is my first public address in my new capacity, 
which carries the somewhat vague title — Assistant 
Secretary for Public Affairs. One might logically 
conclude that since diplomacy and the conduct of 
foreign affairs are traditionally secret operations, 
there would be little for a State Department offi- 
cial to do in the field of public affairs. The De- 
partment has often been accused of dissimulating 
rather then disseminating the truth. The creation 
of an Assistant Secretaryship for Public Affairs 
was decided upon, I believe, in an effort to bring 
about the widest possible dissemination of the 
truth. 

Serious efforts have been made and are being 
made to change the traditional attitude toward 
diplomacy. This can be accomplished best by a 
change in the traditional conduct of diplomacy. 
The Department of State has a responsibility not 
only to keep the public informed in foreign affairs 
but to seek public support and assistance in the 
formulation of foreign policy. 

In my capacity as public-affairs officer, I shall 
make every effort to deal as openly with the public 
as is humanly possible. I do not promise that 
there shall be no longer any secrets. Public offi- 
cials, when first taking office, are under the tempta- 
tion to make pleasing promises of the determina- 
tion to "let the public in on what is going on". If 
they make such promises, however, they may dis- 
cover later that the promises are impossible of 
fulfilment. There is point to the complaint of 
some commentators that our national interests 
have at times suffered from too much publicity 
during negotiations. 

Although I am unable to give you assurances of 
a wide-open policy in the public-affairs section of 
the State Department, I do want to say this with 
the utmost genuineness. My job is with the public, 
and I shall at all times be your advocate. I hope 
you will be mine. I hope we can work together 
as a team, all seeking to achieve the same end. 

One is often asked, "What is the end we seek to 



■ Address made before the Overseas Press Club in Wash- 
ington, D.C., on Apr. 1, 1948, and released to the press 
on the same date. 

476 



achieve in our foreign policy?" A more frequent 
question is, "Do we have a foreign policy ?" More- 
over, there is considerable confusion regarding 
what foreign policy is anyway — ours or any other 
nation's. Can it be defined so the ordinary man 
can understand it, or must one search through 
volumes of learned studies to begin to comprehend 
the subject? 

I shall be bold enough today to try to answer, as 
simply as I can, my own personal understanding 
not only of what foreign policy is in general but 
also what the major policy is which we Americans 
are seeking to achieve today. 

Let us consider briefly what foreign policy is. 
I believe the broad answer to this is fairly easy. 
The foreign policy of any nation or government 
consists of the aims which that nation seeks to 
achieve outside its own borders. The contrast is 
with domestic policy, which is the goal or goals 
which a government seeks to attain within its 
frontiers. 

The foreign policy of a country may include 
aims which remain constant over a loiig period of 
time, such as, for example, Russia's enort to gain 
control of the Dardanelles during more than four 
centuries. On the other hand, a policy may be 
entirely discarded. At one time, for example, we 
Americans clamored loudly for "54'4()" or fight" 
in a dispute with Canada over the northwest fron- 
tier. Tliis aim has lon^ since been forgotten. 

State Department officials have been asked to 
define American foreign policy ever since Thomas 
Jefferson organized the Depai'tment in 1789. 
Moreover, I have no doubt that British, French, 
and all other foreign-office officials in democratic 
countries have often been asked a similar question 
by their own citizens. It would not generally 
occur that a Soviet citizen would ask his foreign 
office the question, "What is Soviet foreign pol- 
icy ?" To do so might imply either that there were 
some doubts in the citizen's mind on the subject 
or that he was critical. 

Fortunately, the question can be freely asked in 
America. I hope this will always be true. To 
answer the question has sometimes been difficult, 
but I believe the answer is easier today perhaps 
than it has been at any time in our history. 

During the early days of our Republic, our for- 

Depariment of State Bulletin 



eign policy was concerned primarily with staying 
out of European quarrels — the no-entangling-alli- 
ance policy. Later we were concerned, outside our 
boi'ders, with tlie question of extending those very 
borders to the Pacific Ocean. Since the turn of the 
century we have been increasingly concerned with 
improving our relations in this Hemisphere, cul- 
minating some years ago in the kej'stone of our 
policy in this field, the policy of the good neighbor. 

Today, it seems to me clear that the chief aim 
which the United States seeks to achieve abroad is 
the triumph, on the broadest possible scale, of the 
principles of democracy. Practically everything 
we do, in big and little matters, is directed toward 
that goal. We seek to support in every way we 
can the democratic way of life, the dignity of the 
human individual, freedom of religion, and free- 
dom of thought and expression. 

Additional elements in our foreign policy, co- 
ordinated with this chief aim, include strongest 
support for the United Nations and an effort to 
make it a more effective instrument. We seek to 
uphold the principles of the Atlantic Charter, 
including notably freedom from fear. We strive 
to free the world from the fear of aggression. We 
seek the triumph of justice, of decency, and stabil- 
ity in international relations. 

I should point out that our foreign policy, like 
that of every other nation, is a national one. Our 
Government, in the final analysis, must seek to 
achieve goals which will have the best results for 
our own nation. We seek the preservation of de- 
mocracy in the world essentially in order to assure 
its preservation in our own country. Happily, our 
national aims coincide with the interests of free 
men everywhere. 

One may well ask, "Is there anything new in our 
foreign policy today? We Americans have al- 
ways believed in democracy and fought for it. 
Wliy do you suddenly put it at the head of the list, 
dominating all else in our foreign policy at the 
present time?" 

The answer, I believe, lies in the fact that democ- 
racy has only recently been brought under serious 
threat. From the beginning of our Republic until 
recent times, democracy has been on the increase in 
the world. Human liberty and freedom of thought 
made steady progress during the nineteenth cen- 
tury. We Americans came to regard its triumph 
as rapidly being achieved and to believe there was 
not much we need to do about it except stand by 
and wish it godspeed. 

But with the 1917 revolution in Russia a new 
concept came into prominence — the concept of the 
rule of a great nation through an ideological dic- 
tatorship conceived in bloodshed and maintained 
by the chains of mental slavery. For a number of 
years this dictatorship was too busy with its in- 
ternal affairs to cause much concern to the out- 
side world. Our foreign policy was affected, cer- 

April 11, 1948 



THE RECORD OF THE WEEK 

tainly, but the existence of an anti-democratic 
regime in Russia was not at first a major concern 
to us. 

Then came the rise of a similar regime in Ger- 
many, different in certain acts and concepts but 
entirely similar in its totalitarianism and its ruth- 
less destruction of any opportunity for the people 
to make their voices heard. The German brand 
of totalitarianism was more immediately danger- 
oiis. Its aggressive actions galvanized our people 
into the realization, for the first time, that democ- 
racy as a principle of government could be lost. 
We began to realize that Sinclair Lewis was not 
living in a dream world when he preached, "It 
can happen here." 

Today the vast majority of American people are 
thoroughly aroused to the fact that our democratic 
way of life is under most serious attack, and some 
even fear that democracy is losing the battle. 

If you grant that the preservation of democracy 
is the chief aim of our foreign policy, the next 
question is, "What are we doing about it? How 
do we implement this policy?" I would like to 
emphasize that there is an important distinction 
between foreign policy and its implementation, 
although the difference is not generally or suffi- 
ciently appreciated. 

In my own view, the single most important 
implement we are using at the moment, in our 
effort to achieve the preservation of democracy, is 
to assist in the economic recovery of the demo- 
cratic world. 

Perhaps I should explain why I do not list eco- 
nomic recovery itself as a major goal of our 
foreign policy'. Why should Erp, for example, 
be called merely an instrument of foreign policy ? 
Certainly, the relief of misery and want, the at- 
tainment of food and clothing and the material 
things of life, are good ends in themselves. But 
only materialists would list those ends as final 
goals. There is a better and higher goal, toward 
which economic recovery is merely a way station. 
The political and spiritual freedom of the human 
soul and the human personality is the ultimate 
goal we must keep constantly in our minds. 

Economic recovery is merely one of the many 
implements of our foreign policy. We are doing 
and attempting many other things at the same 
time — but all are directed toward the same over- 
whelmingly important task of the democratic 
world today. 

In the field of public affairs, you and I are con- 
cerned with information and education as instru- 
ments in achieving our foreign-policy objectives. 
The astonishingly widespread misrepresentation 
and misunderstanding of our motives make it 
imperative that American policy be better un- 
derstood, not only behind the Iron Curtain and 
elsewhere abroad but even in our own country. 

After two years abroad, I am shocked to return 

477 



THe RECORD OF THE WCEK 

and find the extent to which Mr. Henry Wallace, 
to take an outstanding example, goes about parrot- 
ing the misrepresentation of our foreign-policy 
aims. Very many of the things he says are the 
same sort of villification of our motives I have 
listened to over the Moscow radio during the past 
two years in Iran. 

I shall, in conclusion, undertake to consider 
whether there is a reasonable likelihood that the 
democratic way of life will suffer extinction, 
whether it will hold its own in a stalemate with 
totalitarianism, or whether it will triumph. 

There are people devoted to human liberty on 
both sides of the Iron Curtain, just as there are 
on both sides people who are willing to sell their 
liberties for the false promise of a worker's para- 
dise under Communism. If two things are accom- 
plished, it is my personal conviction that democ- 
racy will prevail. In the first place, economic de- 
velopment throughout the democratic world must 
be achieved, to give the masses of the people, the 
industrial workei-s and the farmers, a high stand- 



ard of living and their full share in the product 
of their labors. At the same time the United 
States must develop its military strength, in order 
that our assurances of support for the democratic 
elements abroad will have some meaning. With 
these two objectives achieved, I believe we shall 
see the end of aggression, and the overthrow of 
democratic governments through infiltration of 
Communist minorities will cease. I do not be- 
lieve that a military decision is inevitable in the 
contest between democracy and totalitarianism. 
Human beings love liberty everywhere, and with 
adequate opportunity they will begin to show this 
love more boldly, even in places where today a 
man does not dai'e to speak his mind. 

I look forward confidently to the ultimate tri- 
umph of democracy everywhere throughout the 
globe. Such a triumph is necessary if we are to 
have world peace, for only through democratic 
governments can the peoples of the world prevent 
their rulers from embarking on aggressive acts 
which lead to war. 



Reduction of Trade Barriers — Rhetoric or Reality 



BY WiNTHROP G. BROWN > 



Acting Deputy Director, Office of International Trade Policy 



Ten days ago at Havana, the representatives of 
64 nations, meeting under the auspices of the 
United Nations, reached agreement on a charter 
for an International Trade Organization, to be 
submitted to their governments for acceptance. 
This charter is a broad code of international eco- 
nomic conduct. It is the culmination of over two 
years of international effort, and at the final ses- 
sion of the conference William L. Clayton, head 
of the United States Delegation, had this to say : 

"There have been other conferences on interna- 
tional economic affairs. But none of them has 
undertaken a task so difficult as the one that is 
completed here today. None of them has come to 
an agT ement concerning so many vital economic 
interests of so many states. None of them has pro- 
duced a document so comprehensive as the Havana 
charter for world trade. Few, if any, of them 
have attained so notable a measure of success." 

Five months ago, at Geneva, the representatives 
of 23 nations, also meeting under the auspices of 
the United Nations, reached agreement on a gen- 
eral agreement on tariffs and trade, containing 
rules for the conduct of many aspects of their trade 
with each other and providing for the tariff treat- 
ment of products accounting for over half the 

'Address made before the World Trade Conference of 
the Cleveland World Trade Association on Apr. 2, 1948, 
and released to the press on the same date. 

478 



world's international trade. This agreement has 
already been put into effect by the principal trad- 
ing^ nations represented at Geneva. 

To answer the question implicit in the topic 
suggested for this talk requires an examination of 
the background of these two rather momentous 
documents, of what it is that they seek to accom- 
plish, and of the extent to which they may be 
expected to accomplish it. 

After World War II economic conditions were 
chaotic in the extreme. Not only was there tre- 
mendous physical destruction of facilities for pro- 
duction, transportation, and communications, but 
there was also destruction of intangibles, such as 
breaking of business channels and liquidation of 
foreign investments. Shortages of food, clothing, 
fertilizer, raw materials, and machinery are still 
the rule. And during the war techniques for the 
control of trade by governments had been brought 
to a high degree of perfection. In almost every 
country imports and exports are being controlled 
by government as to quantity, source, and destina- 
tion. International trade has been turning to- 
wards bilateralism and control. 

Positive action on a wide scale was needed to 
reverse this trend and start trading nations mov- 
ing again in the direction of multilateral inter- 
national trade : No one nation, not even the United 
States, was powerful enough to accomplish this 

Department of State Bulletin 



alone. It was important to act before the pat- 
terns of bilateralism and control had become too 
permanently fixed. 

The United States, therefore, in December 19-15 
proposed the international adoption of certain 
rules for the conduct of international trade, and 
invited a considerable number of countries to 
negotiate with it and with each other for the re- 
duction of tariffs and the regulation and limita- 
tion of the use of other trade barriers. 

This action found a ready response. One of the 
first acts of the Economic and Social Council of 
the United Nations early in 1946 was to appoint a 
committee of 18 nations to prepare for a United 
Nations Conference on Trade and Employment. 
This committee adopted as the basis for its 
deliberations the Suggested Charter for an Inter- 
national Trade Organization, published in Sep- 
tember 1946 by the United States.^ At London in 
the fall of 1946, at Geneva in the spring and sum- 
mer of 1947, and at Havana at the conference just 
completed, the Charter, has been debated and re- 
fined and improved. It is now ready for sub- 
mission to the legislatures of the participating 
countries for their approval. 

The invitations to tariff negotiations were ac- 
cepted. The negotiations took place. The general 
agreement on tariffs and trade has, for the most 
part, been put into effect. 

What are the fundamental beliefs that have 
motivated all this effort ? 

They are, first, the belief that excessive barriers 
to world trade must be reduced so that the volume 
of trade may be large. This does not mean a world 
of completely free trade. It does mean a world 
of "open" trade — readier access to world markets, 
greater opportunity for specialization, more active 
competition, larger industrial output, increased 
labor productivity at lower production costs. 

Second, the belief that international trade 
should be multilateral rather than bilateral. This 
simply means that trade should consist of buying 
and selling among the traders of many nations, 
rather than through a series of separate agree- 
ments between pairs of nations. Sales should not 
have to be confined to buyers who agree to deliver 
equivalent values in other specified goods. 
Traders should be able to buy and sell where they 
please, exchanging goods for money, and money 
for goods. That is multilateral trade. Bilateral 
trade, on the other hand, is close kin to barter. 
Such a system limits the number and size and kind 
of business transactions to the capacity of the 
weaker partner, and therefore holds down the 
volume of world trade, freezing it into a rigid 
pattern that cannot be accommodated to changing 
conditions. 

Third, the belief that international trade should 
be nondiscriminatory, that each country shall give 
equal treatment to the commerce of all other 

April II, 1948 



rHE RECORD OF THE WttK 

nations. We have seen the results of trade 
discriminations during the years between two 
world wars — nations playing off trade with one 
country against that with another in a global game 
of political chess. Almost inevitably trade dis- 
criminations develop political aspects, and the 
competitive clashes which in private enterprise are 
merely stimulating become national issues and in- 
volve national pride when they occur in govern- 
ment-to-government dealings. 

Fourth, the belief that progressive trade policies 
must be supported by consistent policies for 
stabilization in the field of certain primary com- 
modities. Prolonged and drastic fluctuations in 
world markets for these commodities can create 
widespread hardship and unemployment and thus 
undermine the very foundations of a cooperative 
world economy. Machinery and rules should be 
provided for reaching intergovernmental agree- 
ments to govern temporarily the production and 
marketing of such commodities when they are in 
burdensome world surplus. 

Fifth, the belief that though nations may choose 
to use different systems of trading, it is possible 
for them to work in harmony. Therefore, an 
effort should be made to find rules which, for ex- 
ample, will govern the operation of state trading 
enterprises in international trade so as to place 
those countries using such a system as nearly as 
possible on the same basis as those relying on 
private enterprise. 

Sixth, the belief that it is essential to develop 
the resources of underdeveloped areas and to make 
the fullest use of the resources of all areas. In- 
creased production and increased consumption 
lead the way hand in hand to increased prosperity, 
and one's most highly developed neighbors turn 
out to be one's best markets. 

Seventh, the belief that the availability of 
machinery for easy international consultation, the 
obligation to consult, and agreement in advance on 
the rules of the game are the surest guaranties 
against economic warfare. 

And so, under this Charter, nations which join 
the Ito would agree : 

1. To take measures designed to maintain pro- 
ductive employment and buying power within 
their own borders as a means to stimulating trade, 
avoiding measures which would create difficulties 
for the economies of others. 

2. To encourage private and public interna- 
tional investment and to recognize the need for 
economic advancement of less well-developed 
areas. 

3. To negotiate for mutual reduction of trade 
barriers. 

4. To eliminate discrimination in international 



'Department of State publication 2598. 



479 



THE RECORD OF THE WEBK 

trade, except in exceptional and clearly defined 
circumstances. 

5. To lower the "invisible tariff" of customs 
administration. 

6. To conduct international trade between pri- 
vate and public enterprises according to prin- 
ciples of nondiscrimination and fair dealing. 

7. To curb and regulate international monop- 
olies and cartels. 

8. To accept a code of principles to govern the 
formation and operation of intergovernmental 
commodity agreements, which should be fair to 
producer and consumer alike and give producers 
and consumers an equal voice in their negotiation 
and operation. 

9. To consult with other membei-s about con- 
templated action which might affect them 
adversely. 

The same basic beliefs also underlie the general 
agreement on tariffs and trade, which, you will 
recall, is the second document which I mentioned 
at the beginning of this talk. When the United 
States jjut forward to the world its proposals for 
rules to govern international trade and for an 
International Trade Organization, it had available 
also a mechanism for more concrete action — the 
mechanism of the Trade Agreements Act. Ac- 
cordingly, as I said, it invited a considerable 
number of other nations to negotiate with it and 
with each other for the reduction of tariffs. As 
a result 23 countries, representing over three 
quarters of the world's international trade, met at 
Geneva, and after seven months of negotiation, 
reached agreement on the text of an agreement 
which specifies the tariff treatment of products 
which account for over half of the world's trade. 
Imports of these products by the Geneva countries 
prewar amounted to over ten billions of dollars, 
of which United States imports were about a bil- 
lion and three quarters. 

The tariff concessions granted were of three 
kinds: reductions in rates of duty; binding of 
existing rates against increases; and binding of 
duty-free status. The United States obtained re- 
ductions in duty from other countries on products 
of principal interest to us accounting in 1939 for 
about 500 million dollars of imports. We granted 
reduction in duty on imports into the United States 
accounting in 1939 for about 500 million doUare. 
We bound the existing tariff rates on about 150 
million dollars of imports and bound the duty- 
free status of about a billion one hundred million 
dollars of imports. We obtained corresponding 
concessions for our exports of approximately the 
same magnitude. 

The general agreement also contains provisions 
designed to prevent the participants from cancel- 
ing out tariff concessions by imposing discrimina- 
tory and restrictive measures such as import 
quotas, exchange controls and manipulations, 

480 



internal taxes and regulations, and the like, and 
from evading the undertaking to grant uncon- 
ditional most-favored-nation treatment. This 
agreement has already been put into effect by 
Australia, Canada, Cuba, Belgium, France, Hol- 
land, Luxembourg, the United Kingdom, and the 
United States. 

This was more than just agreement "in prin- 
ciple". It was concrete action. It showed that 
the most important trading nations meant busi- 
ness when they professed to believe in the expan- 
sion of trade and the reduction of trade barriers. 
It showed they could work together in that effort. 
It showed that commitments such as those con- 
tained in the Ito charter have meaning. 

I have outlined the backgi-ound of the Ito 
charter and the general agreement on tariffs and 
trade, telling you something about why they came 
into being and what they seek to accomplish. And 
now I must try to answer the question implicit in 
the title of this speech. Is this all worth while? 
Will it do what it sets out to do ? 

Granted that the problems at Geneva and Ha- 
vana were complex, granted that the area of agree- 
ment was extensive, granted that the charter is 
one of the most comprehensive, and the general 
agreement one of the largest, international docu- 
ments ever signed — just how should they be eval- 
uated? 

It would be easy to say that the rules which they 
lay down are riddled with exceptions; that the 
principles accepted are too vague to be meaning- 
ful; that a mere promise to consult is not much 
guaranty of good behavior ; that the tariff conces- 
sions made will not really hurt any domestic indus- 
try no matter how uneconomic ; that to agree on 
principles of multilateral trade under present 
world conditions is to ignore realities and live in 
an ivory tower; that it is foolish to go to all this 
trouble under the appalling uncertainties of the 
present day ; that the wiser course would have been 
to wait until conditions were stabilized, until the 
shape of things to come could be more clearly dis- 
cerned. All of these things could be and are being 
said, and each of them contains a modicum of 
truth. 

But it can also be said that the deepest need of 
the world today is agreement and a sense of direc- 
tion. Nations can no longer solve their problems 
alone. National boundaries have long since ceased 
to confine either depression or prosperity. When 
things are uncertain and confused, when there is a 
likelihood of nations working at cross purposes, 
when there is a common need and wide differences 
of opinion as to how to meet it, then is the time to 
reach agreement on the direction in which nations 
are to go. Geneva set tlie direction of over three 
quarters of the world's trade and took the first 
steps along the course thus charted. Havana was 
the next step in developing the long-term pattern 

Department of State Bulletin 



of international economic relations. The estab- 
lishment of the International Trade Organization 
will give that pattern stability and substance. 

It would have been easy to pursue a cautious 
policy and wait for "more normal" times before 
seeking international agreement in the field of 
trade. But events do not wait for the cautious 
man to make up his mind. The time to mold the 
clay is when it is still on the wheel and before it 
has set into a pattern we do not like. We believe 
in the kind of trade policy I have described. The 
trend was in the other direction — towards a thick- 
ening mass of restrictions, discriminations, bilat- 
eral deals, and governmental interferences in for- 
eign trade, with their inevitable extension of con- 
trols into domestic trade. So we acted. We as- 
sumed the leadership in the fight for the kind of 
world trade pattern under which private enter- 
prise and free competition can continue. We 
tried to obtain agreement that the course of inter- 
national trade would be set away from bilateralism 
and control and towards expansion, competition, 
and equality of opportunity. We succeeded. 

The Ito charter has been criticized with equal 
vehemence on the grounds that it is so idealistic 
that it won't work and convei-sely that it has so 
many exceptions that it won't work. 

It is true that the charter is idealistic. This is 
nothing to apologize for. It sets up ultimate ob- 
jectives toward which all countries can agree to 
work. But it is also realistic. It recognizes facts 
and faces them. It is not afraid to provide clear 
exceptions designed to meet abnormal conditions 
such as the present emergency. The exceptions 
are, however, 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 ex- 
cept under conditions upon which all nations have 
agreed. If it were not for the exceptions the 
charter would not be practical and it is because it 
is practical that it can be expected to work. I 
would add that it will work also because it does 
not represent the point of view of any one nation 
or group of nations. AVe cannot bury our heads 
in the sand and refuse to recognize that not all 
nations share our views as to just what the rules 
of the trade game should be. We must work out a 
way in which nations of differing views may work 
together towards common objectives. 

I quote again from the words of Mr. Clayton at 
the final session of the Havana conference : 

"The charter is complicated and difficult. It 
is long and detailed and technical. But behind 
its many chapters and its scores of articles, there 
lies a simple truth. The world will be a better 
place to live in if nations, instead of taking 
unilateral action without regard to the interests of 
others, will adopt and follow common principles, 
and enter into consultation through an interna- 
tional organization when interests come into con- 



THE RECORD Of THE WEEK 

flict. And this, throughout the entire range of 
trade relationships, is what the signatories of the 
charter agree to do. Each will surrender some 
part of its freedom to take action that might prove 
harmful to others; and thus each will gain the as- 
surance that others will not take action harmful to 
it." 

The general agreement on tariffs and trade also 
contains exceptions to its general provisions which 
I mentioned earlier. These exceptions are, of 
course, made to allow for the present extreme 
shortages abroad in production and foreign ex- 
change. But these exceptions, like those in the 
charter, are closely defined, their use limited, and 
the conditions under which they must be aban- 
doned are clearly set forth. 

It would be less than honest of me to say that 
our foreign sales of exportable products will in- 
crease immediately because of these tariff conces- 
sions from other countries. They will not. In 
the long run. United States commercial exports 
cannot increase until the rest of the world is better 
able to pay for them. Profitable trade must be 
reciprocal and there is very little real reciprocity 
when our exports of goods and services are ex- 
ceeding our imports by 11 billion dollars a year, 
as they did in 1947. 

But tariff concessions in a wide area of world 
trade — such as were achieved at Geneva and are 
looked forward to under the Ito — will inevitably 
facilitate, liberalize, and encourage world trade. 
People work and produce when they see a chance 
to exchange their products for things which they 
want and cannot produce for themselves. That 
is human nature. As world production and trade 
conditions begin to return to normal, as exceptions 
cease to be operative, as United States producers 
again face competition in foreign markets, the 
tariff concessions embodied in the general agree- 
ment will give easier access to those markets for 
the goods which United htates agriculture and in- 
dustry must sell abroad in order to maintain the 
level of economic activity in this country. Even 
while shortages of dollars exist, the concessions 
will help to expand trade between so-called "soft 
currency" countries, and the general provisions 
will limit the use of controls to the cases where 
they are really needed. 

The general agreement was negotiated by the 
United States under the authority of the Trade 
Agreements Act, which expires on June 12. The 
President has asked the Congress to renew this 
tried and tested instrument of our foreign 
economic policy, already four times renewed, for 
a further period of three years. Why ? 

There were only 23 countries at Geneva. It is 
important to bring many other countries into the 
general agreement. To do so they must negotiate 
reductions in their tariffs with the Geneva coun- 



April 17, 7948 



481 



THE RECORD OF THE WEBK 

tries. The President needs the trade-agreements 
authority to participate in these negotiations. 

If he does not have effective authority to nego- 
tiate because of faihire to renew the act, we will 
simply liave to say to countries wishing to come 
into the agreement that it is uncertain whether 
we can give effect to tlie results of any negotiation. 
Since the trade of most countries with tlie United 
States is highly significant to them, they will 
hesitate to come in on this basis. We will be 
keeping friendly countries out of this cooperative 
economic effort. 

In the European Recovery Program we will be 
embarking on a tremendous effort to help western 
Europe get back on its feet. The program recog- 
nizes the elementary fact that one of the pre- 
requisites to their staying on their feet is to reduce 
tlie barriers to their trade between each other and 
between themselves and the rest of the world. 
They should get into a position to earn their own 
way by selling their goods. The reduction of their 
tariff's on each other's goods and the extension of 
tariff reductions in their trade with the rest of 
the world is one good way of enabling them to pay 
their own way. We should not, just as we embark 
on the European Recovery Program, give up our 
ability to participate with these countries in work- 
ing out arrangements by which they can more 
completely pay their own way. 

The Trade Agreements Act is a symbol to the 
rest of the world of the United States willingness 
to participate in international economic coopera- 
tion. Its first enactment, 14 years ago, marked the 
reversal of the policy of economic isolationism 
which we pursued after World War I. Any action 
wliich could be interpreted as a repudiation by the 
United States of the trade-agreements policy 



would be considered by other nations as equally 
symbolic, and would jeopardize United States 
leadership in the fight for the kind of economic 
world in which we believe and in which private 
enterprise and free competition can continue. 

I began with a description of accomplishment 
in the field of international economic relations. I 
have for a time been discussing doubts, seeking to 
dispel them. Let me end with a word as to the 
basic significance of the Havana and Geneva 
agreements. 

Their basic significance is the fact and the extent 
of agreement. Never before in the history of 
the world have so many nations reached agreement 
on so much practical action and over so wide a 
range of principle in their economic relations. In 
a troubled world, ravaged by storms of contro- 
versy and disagreement, nations have come to- 
gether in agreement on matters of basic economic 
importance. They have agreed on a pattern for 
their trade. They have taken concrete steps to put 
it into effect. They have shown that the United 
Nations can be made to work. 

The issue today is more than just trade. It is 
more even than the preservation of free enterprise. 
It is the struggle for freedom itself. In this 
struggle the system we believe in is on trial. We 
must show the world that it will work. Nations 
which believe in freedom must come closer to- 
gether economically as well as politically. Some 
of them did so at Geneva. More of them did so at 
Havana. What was accomplished there does not 
cure our economic ills nor win the battle for free- 
dom. But it gives solid cause for hope that those 
ills can be cured, and that the battle can be won — 
if we continue the fight. 



Restitution of Looted Property in Japan 



UNITED STATES DIRECTIVE 



The United States interim directii'e, dispatched 
hy the Joint Chiefs of Staff to the Supreme Com- 
mander for the Allied Powers on 17 March 1948. 
follows 

1. The instructions here below are additions to 
and do not derogate from the full force and effect 
of Fec-011/12. 

2. The ScAP should accord the same treatment 
to all property found in Japan, and identified as 
having been located in an Allied country either at 
or during the time of occupation, and which was 
removed therefrom by fraud or duress by the 
Japanese or their agents, as that which he accords 
to objects in the four categories listed in para. 1 
of Fec-011/12 ( JCS Directive # 57) identified as 

482 



having been located in an Allied country at the 
time of occupation. 

3. In the case of Allied vessels subject to resti- 
tution the ScAP may, at his discretion, make de- 
livery at Western Pacific points outside Japan 
whenever it would be to his advantage and when- 
ever the recipient country agrees. If delivery 
is so made any costs of supporting and repatriating 
ships crews used for such delivery would only be 
borne by the recipient country if it specifically 
agrees to do so. In the case of delivery of other 
items of looted property unutilized outgoing 
shipping space of Japanese vessels being employed 
in the importation of goods or repatriation of 
Jai^anese from a restitution recipient country to 

Department of State Bulletin 



Japan may be made available, at the expense of 
the Japanese Government but at the risk of the 
recipient country, to deliver such items at points 
outside Japan. 

4. After full opportunities have been given for 
inspection of objects known to have been looted 
the Supreme Commander for the Allied Powers 
is authorized to liquidate property, excepting gold, 
silver, precious metals, and cultural objects, 
known to have been looted but not identified pur- 
suant to the terms of this paper. The proceeds of 
such liquidation shall form a secured fund to be 
entrusted to the care of Scap, which may be used, 
in the discretion of Scap, for the purposes of the 
occupation. The initial value of the secured fund 
is to be preserved by Scap or his successor author- 
ity. The Governments of Australia, China, 
France, India, Netherlands, Philippines, and U.K. 
should have a priority right to purchase items 
offered for liquidation by foreign exchange accept- 
able to Scap up to but not exceeding their rec- 
ognized national reparations percentage shares 
(when determined, and adjusted to total 10U%, 
applicable to this fund) of industrial assets avail- 
able from within Japan. The secured fund should 
finally be distributed among the countries herein 
specified in accordance with the percentage men- 
tioned above, payable in U.S. dollars, or, at the 
discretion of Scap, in foreign exchange acceptable 
to the recipient countries concerned. The secured 
fund shall be distributed to tlie recipient countries 
not later than 1 October 1949. 



THE RECORD OF THE WBBK 

5. The Supreme Commander for the Allied 
Powers shall create an agency comprising one 
representative from each of the restitution and 
reparations teams in Japan of the eleven member 
countries of the Far Eastern Commission, who 
desire to participate, to advise on restitution mat- 
ters. In addition, the Supreme Commander or 
his deputy should act as the non-voting chairman 
of the agency. It may meet at the call of the 
Supreme Commander or at the request of any 
member. The Supreme Commander should notify 
the United States Government of the views of the 
agency when his views conflict with those of the 
majority of the member countries. 

6. In cases of doubt as to the adequacy of the 
evidence of ownership submitted to support a 
claim for an object known to have been looted, 
the Supreme Commander shall inform the other 
members of the advisory agency of the existence 
of the claim. The advisory agency, after examin- 
ing the evidence, shall give its advice to the Su- 
preme Commander as to whether the claim should 
be approved or the provisions of paragraph 4 
above applied. 

7. No claims for the restitution of looted prop- 
erty should be lodged with Scap after eight 
months from the issuance of this directive to Scap; 
provided that after such terminal date, claims 
may, with the concurrence of Scap, be lodged for 
property known to have been looted but not pre- 
viously identified. 



ANNOUNCEMENT BY THE DEPARTMENTS OF STATE AND COMMERCE 



[Released to the press April 2] 

The Departments of State and Commerce an- 
nounced on April 2 procedures to be followed by 
those persons admitted to Japan to seek restitu- 
tion of tlieir property, or to investigate possi- 
bilities for engaging in business activity in Japan. 

The new regulations governing admittance to 
Japan for commercial entrants were previously 
announced by the Supreme Commander on Febru- 
ary 3, 1948. As announced at that time, the 
numbers permitted to enter Japan at any time will 
be limited to those whose activities will contribute 
to the economic rehabilitation of Japan. The 
Japanese Government is operating five commercial 
hotels but total facilities available in these hotels 
throughout Japan will accommodate only 500. 
Commercial entrants may remain in these hotels 
only 60 days unless accommodations are adequate 
for a longer period without denying entrance into 
Japan to other applicants, and those who apply 
for a semi-permanent resident's permit, which 

April 11, 1948 



would permit them to remain in Japan longer, 
must not only demonstrate that their continued 
presence will contribute to the objectives of the 
occupation but must also provide their own sup- 
port outside the facilities of the Japanese Govern- 
ment-operated hotels. 

Individual applications must be sponsored by 
the applicant's own government and forwarded 
through established diplomatic channels. United 
States property owners or their representatives 
desiring to take advantage of the arrangements 
outlined herein, should make application to the 
Office of International Trade, U. S. Department of 
Commerce, through its field offices. Applications 
will be considered by the Supreme Commander in 
priority of their receipt, and entry permits will 
be valid during a period of 60 days, assigned by 
the General Heaclquarters in Japan. Passport 
applications should be filed with the clerk of 
Federal or State courts or with the passport 
agents located in Washington, San Francisco, and 

483 



THE RECORD Of THE WEEK 

New York. Transportation will be obtained by 
the entrants via established transportation 
facilities. 

Procedures governing the restitution of prop- 
erties to American and other United Nations 
owners are chiefly the following. After his ar- 
rival in Japan the U.S. owner, or his duly au- 
thorized agent, will make application to the 
Supreme Commander through the U. S. Kepara- 
tions and Restitution Mission in Tokyo for the re- 
turn of his property. Attention is drawn to 
IDepartment of State press release no. 532, June 27, 
1947, which described the instructions under which 
powers of attorney may be drawn by American 
property owners outsicle of Japan. Regardless 
of whether the property was sold or liquidated by 
the Japanese Government during the war, owners 
are entitled to return of their property. How- 
ever, in such cases, the owner must agree, as a 
condition of the return of his property, to refund 
to the Japanese Government the amount of money 
received as payment or that was deposited in a 
blocked account in the owner's name at the time of 
sale or liquidation. Repayment of such amounts, 
however, will only be due after the settlement of 
any claims for loss or damage that the owner may 
make against the Japanese Government. If the 
property has been leased to a third party by the 
Japanese custodian or administrator, the owner 
will have the opportunity of terminating the lease 
and obtaining vacant possession. If, however, the 
property has been requisitioned by the occupation 
forces for their use, vacant possession will not be 
obtained by the owner until the property is re- 
leased by the occupation forces. 

In accepting the return of the property, the 
owner will not be required to renounce any claim 
he may have against the Japanese Government or 
its nationals for damages to the property. Since 
the procedures for adjudicating or settling claims 
against the Japanese Government or its nationals 
have not yet been determined, it is not possible to 
state the extent or nature of compensation which 
may be provided in respect to claims for loss or 



damage suffered before return of the property, 
nor when such claims will be acted upon. An 
owner who is unable or unwilling to assume con- 
trol of his property at the present time will not be 
compelled to accept its return, nor will any rights 
he may have be prejudiced by his not resuming 
control at present. Until the property is returned 
to the owner, the Japanese Government has sole 
responsibility for its preservation and protection 
under the direction of the Supreme Commander, 
but after its return its future maintenance and any 
rehabilitation costs are the responsibility of the 
owner. 

At present Scap regulations do not permit 
postwar commercial entrants to engage in business 
and investment activities in Japan except as spe- 
cially authorized. Business entrants are now per- 
mitted to engage in international trade through 
Boeki Cho (Japanese Board of Trade), and Scap 
licenses have been issued to banking, shipping, and 
insurance companies to service foreign trade. 
Resident Allied and neutral nationals who have 
been in Japan continuously since September 2, 
1945, are permitted to engage in business activ- 
ities on the same basis as Japanese nationals and 
it is contemplated that commercial entrants whose 
activities will contribute to the economic rehabili- 
tation of Japan will be accorded the same priv- 
ileges. 

No procedure has yet been established whereby 
foreign exchange can be converted to yen except 
at the military exchange rate of 50-1 and all im- 
port-export of raw materials and other commod- 
ities must be through Boeki Cho and subject to 
Scap approval and validation. In addition, at 
the present time there is no provision for conver- 
sion of Japanese yen into foreign currencies. 

Commercial entrants wishing to investigate in- 
vestment possibilities must realize there is a crit- 
ical shortage of materials, services, and facilities 
which may handicap their operations, and permis- 
sion to do business in Japan, if granted, will in 
no way constitute special grounds for such mate- 
rials, facilities, or services. 



STATEMENT BY GEORGE C. MARSHALL 



Secretary of State 



[Released to the press March 25] 

The terms of reference of the Far Eastern 
Commission provide that the United States may 
issue interim directives to Scap pending action by 
the Far Eastern Commission whenever urgent 
matters arise which are not covered by policies 
already formulated by the Commission. In this 
case there was agreement among the countries on 
a portion of the policy of restitution and, since 

484 



the restitution program is considered urgent by 
many of the countries which suffered at the hands 
of the Japanese, the United States felt it necessary 
to provide Scap with policy guidance. The direc- 
tive issued by the United States covers only those 
aspects of the restitution program on which there 
are no differences. The unagreed aspects of the 
restitution policy are still under discussion in the 
Fec. 

Deparfmenf of State Bulletin 



Rejection of Yugoslav Comments on 
Personal American Activities 

[Keleased to the press March 16] 

Text of note from the Secretary of State to the 
Ambassador of the Federal People's Republic of 
Yugoslavia (Sava N. Kosanovic) , March 15, 1948 

The Secretary of State presents his compliments 
. to His Excellency the Ambassador of the Federal 
People's Kepublic of Yugoslavia and has the honor 
to refer to the latter's note Pov. br. 231 of March 3, 
1948 ^ relative to a press report concerning the 
marriage of the United States Consul General at 
Munich which is said to have been attended by the 
Director of the OiEce of American Military Gov- 
ernment for Bavaria and by, among others, the 
former Kegent of Hungary, Admiral Nicholas 
Horthy. The Ambassador, in characterizing Ad- 
miral Horthy as a "war criminal" present at a 
wedding ceremony together with high American 
officials, i-equests that he be informed "what steps 
will be taken to punish these American officials." 

The Secretary of State informs the Ambassador 
that, in the opinion of the United States Govern- 
ment, the list of guests reported in the press as 
having attended a ceremony of such a private na- 
ture as the marriage of two American citizens in 
Germany is not a matter for representations on the 
part of the Yugoslav Government. The Ambas- 
sador's comments in his note under reference are 
accordingly rejected. 

Department of State, 
Washinffton. 



Entry into Force off Industrial-Property 
Agreement With France 

[Released to the press March 17] 

On February 27, 1948, the Government of the 
United States of America and the Government of 
the French Republic each delivered to the other 
Government a notice of acceptance of the supple- 
mentary agreement between the United States and 
France concerning the restoration of certain in- 
dustrial-property rights affected by World War 
II, signed at Washington on October 28, 1947.= 
Accordingly, the supplementary agreement, pur- 
suant to the provisions thereof, came into force on 
February 27, 1948. 

The supplementary agreement amends an indus- 
trial-property agreement between the two Govern- 
ments, signed at Washington on April 4, 1947,^ 
which was designed to permit delayed filing of 
patent applications, accomplisliment of formal- 
ities, and payment of fees, which acts were not 



THE RECORD OF THE WEEK 

possible during the war. The agreement of April 
4, 1947, was entered into in accordance with the 
provisions of Public Law 690, 79th Congress, ap- 
proved August 8, 1946. Since the signature of 
that agreement the Congi-ess of the United States 
enacted legislation (Public Law 220, 80th Con- 
gress, approved July 23, 1947) permitting exten- 
sion of periods during which the above-mentioned 
benefits might be obtained. The supplementary 
agreement is designed to extend periods specified 
in the earlier agreement to the later dates per- 
mitted by act of Congress. 



Procedure ffor Filing Claims With Hungary 

[Released to the press March 18] 

The treaty of peace with Hungary which came 
into force on September 15, 1947, provides that 
legal rights and interests of American nationals 
in Hungary as they existed on September 1, 1939, 
are to be restored, and the Hungarian Government 
is required to return all property in Hungary of 
United Nations nationals as it now exists. Where 
property has not been returned within six months 
from the coming into force of the treaty (i. e., 
within six months from September 15, 1947), ap- 
plication for the return thereof is to be made to 
the Hungarian authorities on or before Septem- 
ber 15, 1948, unless claimants are able to show that 
applications could not be filed within that period. 
In cases where property cannot be returned or 
where, as a result of the war, a United Nations na- 
tional has suffered a loss by reason of injury or 
damage to property in Hungary, the Hungarian 
Government is required to make compensation in 
local currency to the extent of two tliirds of the 
sum necessary, at the date of payment, to purchase 
similar property or to make good the loss suffered. 
To enable claims to receive consideration under 
the treaty, claimants must have been nationals of 
one of the United Nations on January 20, 1945 
(the date of the armistice with Hungary), and 
on September 15, 1947 (the date the treaty came 
into force), or must establish that under the laws 
in force in Hungary during the war they were 
treated as enemies. Claimants must also be na- 
tionals of this Government at the time of the filing 
of their claims. 

The Department of State has recently been ad- 
vised of the requirements of the Hungarian Gov- 
ernment in connection with the preparation of 
claims and will communicate directly in the near 
future with all claimants of whom the Department 
has a record, advising them of such requirements. 

' Not printed. 

' Bulletin of Nov. 9, 1947, p. 912. 

' BuMjjTiN of Apr. 20, 1947, p. 725. 



April 11, 1948 



485 



THE BECORD OF THE WBEK 

American nationals, including individuals, cor- 
porations, and associations, resident outside Hun- 
gary, who desire to file claims under the treaty, 
should, upon being advised of the requirements 
in that connection, prepare and submit their claims 
to the Office of the Leg^al Adviser, Department of 
State, Washington, D.C., at the earliest practicable 
date. Claimants residing in Hungary should, 
upon receipt of instructions as to the method of 
preparing claims, prepare and file their claims 
with the American Legation in Budapest. 

Claimants who desire to file claims of the char- 
acter indicated but who have not previously com- 
municated with the Department of State regard- 
ing that subject, should do so at once. 

The Department of State and the American 
Legation in Budapest will endeavor to render 
claimants such assistance as is practicable in con- 
nection with the preparation of their claims and 
in the transmittal thereof to thenHungarian Gov- 
ernment. Full responsibility for the actual prep- 
aration of claims, however, and for the submis- 
sion of the necessary documentary evidence to es- 
tablish their validity rests with the claimants and 
their attorneys. 

When information regarding the procedure for 
preparing and filing claims under the treaty of 
peace with Italy becomes available, a similar an- 
nouncement will be made. Announcements have 
already been made with respect to claims under 
the Bulgarian and Rumanian treaties.^ 



Income Tax Convention With 
New Zealand Signed 

[Released to the press March 16] 

A convention between the United States and 
New Zealand for the avoidance of double taxation 
and the prevention of fiscal evasion with i"espect 
to taxes on income was signed at Washington on 
March 16, 1948, by George C. Marshall, Secretary 
of State, and Walter Nash, P.C, Minister of Fi- 
nance and Minister of Customs for New Zealand. 

The provisions of the convention are similar 
in general to those contained in conventions now 
in force between the United States and Canada, 
France, Sweden, and the United Kingdom. 

The convention provides that it shall be rati- 
fied, and that, upon the exchange of instruments 
of ratification, it shall become effective, as to 
United States tax, for the taxable years beginning 
on or after January 1 in the calendar year in which 
the exchange occurs, and, as to New Zealand tax, 
for the year of assessment beginning on April 1 
next following the calendar year in which the 
exchange occurs. 

' Bulletin of Mar. 14, 1948, p. 356. 
486 



New Egyptian Steamship Service to the 
United States 

The Department of State announced on March 
17 that it had received word from the American 
Embassy at Cairo of the inauguration of the new 
Khedivial Mail Line steamship service between 
Egypt and the United States. 

After inaugural ceremonies were held at Alex- 
andria, Egypt, aboard the S.S. Khedive Ismail, 
the vessel sailed on March 16, on its maiden voy- 
age to New York. A second liner, Mohamed Ali 
el Kabir, will make its first voyage at a later date. 

The Khedivial Line was hailed as "a new link 
between the Old World and the New" by Ahmed 
Abboud Pasha, managing director of the line, at 
the ceremonies. They were attended by leading 
Egyptian Government officials and United States 
representatives headed by United States Ainbas- 
sador to Egypt, S. Pinkney Tuck. Abboud Pasha 
said that he hoped to be in New York to greet 
the Khedive Ismail on its arrival. 

Plan for New Chilean Bond Service 

[Released to the press March 25] 

The Department is gratified by the announce- 
ment by the Government of Chile of the results of 
its negotiations with the Foreign Bondholders 
Protective Council (and related negotiations with 
British and Swiss protective organizations) look- 
ing to regularizing and increasing the payments on 
Chilean foreign bonds. Since 1935 Chile has been 
paying interest on Chilean foreign bonds at rates 
which varied annually with certain Chilean public 
revenues. The proposed plan will alter the bases 
of payment and substantially increase payments 
over present or prospective payments under the 
existing Chilean bond-adjustment law. Amounts 
involved are substantial (about 131 million dollars 
in United States dollar bonds and the equivalent 
of 122 million dollars in sterling and Swiss franc 
bonds). 

The new plan is still subject to approval by the 
Chilean Congress. 

Letters of Credence 

Guatemala 

Tlie newly appointeil Ambassador of Guatemala, Ismael 
Gonzalez Arevalo, presented his credentials to the Presi- 
dent on Marcli 15. For translation of the Ambassador's 
remarks and for tlie President's reply, see Department of 
State press release 203 of March 15, 1948. 

PanaTna 

The newly appointed Ambassador of Panama, Ernesto 
Jaen Guardia, presented his credentials to the President 
on March 19. For translation of the Ambassador's re- 
marks and for the President's reply, see Department of 
State i)ress release 219 of March 19, 1948. 

Department of State Bulletin 



Educational Exchange Program Under Fulbright Act 



Announcement of the Fulbright Program in 
Burma and China 

The Board of Foreign Scholarships and the De- 
partment of State announce a limited number of 
wrants available for graduate study in Burma and 
China. The grants will be awarded under the pro- 
visions of Public Law 584, 79th Congress (the Ful- 
bright act). All grants will be paid in Burmese 
and Chinese currency and may include payment of 
tuition and maintenance. Partial grants may be 
made to supplement benefits received under Public 
Law 346, 78th Congress ("G. I. Bill of Rights") , or 
grants from other sources. Candidates for these 
grants will be drawn from students in the United 
States wishing to go to Burma or China and from 
American students already in residence in Burma 
or China who wish to continue their studies. 
Travel grants will not be available for Chinese 
study, although allowed to Burma. 

The Department of State and the Board of 
Foreign Scholarships on March 24 announced that 
Dr. Derk Bodde, University of Pennsylvania 
Sinologist, had been selected for the first award 
under the Fulbright act. The award will be for the 
purpose of enabling Dr. Bodde to engage in re- 
search leading to the annotation and translation 
into English of the second volume of Professor 
Fung Yu-lan's definitive History of Chinese 
Philosophy which up to this time has been avail- 
able to scholars only in the original Chinese text. 
The first volume of this work has already been 
translated by Dr. Bodde. 

The Board also announced opportunities in the 
interim China program for six American libra- 
rians to go to China to staff three library institutes 
to be established by the American Library Associa- 
tion in universities in Peiping, Soochow, and Can- 
ton for the purpose of exchanging professional 
information and acquainting additional Chinese 
librarians in western technical processes of librar- 
ianship, especially in regard to selection and 
cataloging of western books. 

Persons wishing detailed information about 
these and other opportunities under the Fulbright 
act, as well as application blanks, should write to 
the Institute of International Education, 2 West 
45th Street, New York 19, N. Y. (for graduate 
study abroad) ; the U.S. Office of Education, Wash- 
ington 25, D.C. (for teaching in national elemen- 
tary and secondary schools abroad) ; the Confer- 
ence Board of Associated Research Councils, 2101 
Constitution Avenue, Washington, D.C. (for col- 
lege teaching, professional research, and teaching 
in American elementary and secondary schools 
abroad). 

April J], J 948 



Grants for Burma 

[Released to the jiress March 31] 

The Board of Foreign Scholarships and the 
Department of State announce a limited number 
of grants available for visiting professors and re- 
search scholars under the first-year Fulbright 
program approved for Burma. The grants will be 
awarded under the provisions of Public Law 584, 
79th Congress (the Fulbright act). All grants 
will be paid in Burmese currency and may include 
salary, maintenance, and travel. Partial grants 
may be made in Burmese currency to supplement 
any financial assistance the candidate is receiving 
from his institution in this country or from other 
sources. 

Eight grants will be awarded United States pro- 
fessors to teach at institutions of higher learning 
in Burma, in the following fields : 

University of Rangoon : 

industrial chemistry 

hydroelectric engineering 

fresh-water biology 

economics 
State Training College for Teachers, Rangoon : 

educational research 

educational psychology 

abnormal psychology 

physical education 

Five grants will be awarded to citizens of the 
United States for post-doctoral research in con- 
nection with institutions of higher learning in 
Burma. 

Application blanks and additional information 
concerning these awards will be available from 
the Committee on International Exchange of Per- 
sons, Conference Board of Associated Research 
Councils, 2101 Constitution Ave., Washington 25, 
D.C. 



Student Ships Assigned 



[Released to the press March 30] 



The Department of State announced on March 
.30 that the Marine Tiger and the Muiine Jumfer 
have been assigned by the United States Maritime 
Commission at the request of the Department and 
numerous private organizations, to transport 
American and foreign students, teachers, and 
other academic personnel between the United 
States and Europe during the summer of 1948. 
Each vessel will make four special transatlantic 
round trips between June and September, calling 
on all sailings at British and French ports and 
on two sailings at Olso. 

Each of these former troop transports has room 
for 600 passengers. The number of staterooms is 

487 



THE RECORD OF THE WEEK 

limited, the majority of the accommodations being 
in dormitories and large compartments. Rates 
will vary from $140 to $200 one way, depending 
upon the class of accommodation and port of 
destination. 

The Netherlands Government, through its 
Office for Foreign Student Relations, is also 
operating student ships, the Kota-Inten and the 
Tdbinta, which will make one voyage each from 
Quebec to Rotterdam on June 18 and July 1, 
respectively. Each of these vessels has a capacity 
of 750. Early in September the Volendam, with a 
capacity of 1,500, will sail from Rotterdam for 
New York to provide return transportation for 
the students traveling to Europe on the two 
smaller ships. The cost of round-trip passage will 
be $280. 

The Institute of International Education, 2 
West Forty-fifth Street, New York 19, N. Y., will 
administer the entire student-ship program. Re- 

?uests for information, schedules, and application 
or passage on both the Dutch and the American 
vessels should be addressed to the Institute. 
American diplomatic missions in Europe will 
assist foreign students and teachers who wish to 
arrange passage for the United States on the ships. 
The American Friends Service Committee of 
Philadelphia will conduct a shipboard orientation 
program for passengers on the Marine Jumper 
and the Marine Tiger. This committee enjoyed 
conspicuous success in carrying out this kind of 
program on the ships last summer. There will be 
a similar program on the Dutch vessels, with the 
cooperation of the Friends. 

The determination of priorities to be assigned 
applicants will be the responsibility of an execu- 
tive committee composed of representatives of a 
number of the organizations sponsoring travel to 
Europe this summer. All organizations and in- 
dividuals applying for passage on the student 
ships will be required to demonstrate that their 
purpose is formal study, attendance at confer- 
ences, or participation in cultural or reconstruc- 
tion projects. 

Statement by Assistant Secretary Allen 

The action of the Maritime Commission in as- 
signing two vessels for facilitation of educational 
travel between the United States and Europe next 
summer is very gratifying to the Department. 
By enabling several thousands of young Ameri- 
cans to visit Europe for a summer's study, this 
project will make a definite contribution toward 
the furthering of good will and amity among the 
free peoples of the world. I regard the assign- 
ment of these ships for such a purpose as an out- 
standing example of the way in which Govern- 
ment is able to supplement and encourage the ini- 
tiative of private organizations in carrying on 
educational exchange with other nations. 

488 



Educational Exchange Program Agreement With 
the Philippines Signed 

[Released to the press Marcb 24] 

The Republic of the Philippines and the United 
States on March 24 signed an agreement for the 
program of educational exchanges authorized by 
the Fulbright act. The agi-eement is the third to 
be signed by the United States. Programs under 
the act have already been started with China and 
Burma.^ 

The agi'eement was signed by Vice President 
and, concurrently, Secretary of Foreign AflFairs, 
Elpidio Quirino, and American Ambassador Em- 
met O'Neal. The agreement, similar to those 
signed with China and Burma, is authoiized by the 
Fulbright act which provides that Philippine cur- 
rency resulting from the sale of American surplus 
property may be used in the country of sale for 
educational exchanges with the United States. 
Under this agi-eement, in consideration for certain 
surplus properties transferred by the United 
States to the Philippine Government, the Philip- 
pines is to make available the equivalent of two 
million dollars for education and research. The 
program will be administered by a foundation 
whose Board of Directors will include five Ameri- 
cans and four Filipinos. The United States Am- 
bassador, Emmet O'Neal, wil be honorary chair- 
man, and James Lawrence Meader, the Chief 
Public-Affairs Officer of the American Embassy in 
Manila, will serve as chairman. 

The purposes of the Fulbright act include the 
financing of "studies, research, instruction, and 
other educational activities of or for citizens of 
the United States of America in schools and insti- 
tutions of higher learning located in the Philip- 
pines, or of the citizens of the Philippines in 
United States schools and institutions of higher 
learning located outside the continental United 
States . . . including payment for transportation, 
tuition, maintenance and other expenses incident 
to scholastic activities; or furnishing transporta- 
tion for citizens of the Philippines who desire to 
attend United States schools and institutions of 
higher learning in the continental United States 
. . . whose attendance will not deprive citizens of 
the United States of America of an opportunity 
to attend such schools and institutions." 

Programs under this act will, it is expected, 
greatly augment those set up by the Philippine 
Rehabilitation Act by making available American 
specialists to cooperate with Filipino educators 
in rebuilding and strengthening the educational 
system and services. A limited number of Fili- 
pino educators and students may have transporta- 
tion to the United States paid under the new agree- 
ment, provided that they have already been ac- 
cepted by United States institutions of higher 

' BuiXETiN of Mar. 21, 1948, p. 388. 

Department of State Bulletin 



learning and that all other necessary funds are 
assured from other sources. 

Grants to American scholars for research and 
educational projects in the Philippines will act as 
a stimulus to cultural rehabilitation, it is believed, 
in addition to giving Filipino scholars the benefit 
of practical training with American specialists. 



and Economic Sciences, University of Chile, ar- 
rived in Washington March 16, accompanied by 
his wife, for a four months' visit under the travel- 
grant program of the Department of State. Dr. 
Poblete-Troncoso's visit is being made at the re- 
quest of the Library of Congress for the purpose 
of serving as consultant in social legislation. 



Address on Freedom of Information 

On March 25 William Benton, Chairman of the 
U. S. Delegation to the Conference on Freedom of 
Infonnation at Geneva, made an address at the 
opening plenary session on freedom of information 
and the press. For the text of this address, see 
Department of State press release 231 of March 
25, 1948. 



Chilean Lawyer Visits U.S. 

Dr. Aloises Poblete-Troncoso, professor of labor 
legislation and director of the Institute of Social 



John N. Andrews Appointed to Board of Foreign 
Scholarships 



The Department of State announced on April 2 
that the President has appointed Col. John N. 
Andrews to the Board of Foreign Scholarships 
under the Fulbright act. Colonel Andrews, the 
personal representative of the Administrator of 
Veterans Affairs since 1946, will fill the unexpired 
term of Gen. Omar N. Bradley who represented 
veterans on the Board until his appointment as 
Chief of Staff. 



THE DEPARTMENT 
Appeal for Restoration of Funds for Efficient Conduct of Foreign Relations 

STATEMENT BY GEORGE C. MARSHALL' 
Secretary of State 



Two months ago, I appeared before the House 
Appropriations Subcommittee to present the 1949 
budget request of the Department of State. It was 
stated at that time that the budgetary estimates 
of the Department did not include requests for 
funds which could be eliminated without actually 
impairing the conduct of foreign relations. There 
has been no reason to change that view. 

World conditions with which the Department 
is concerned have in recent weeks deteriorated, 
rather than improved, as is well known to you. 
Also there are the still unresolved problems of 
Germany, Japan, and Korea. And the United 
Nations demands increasing attention and support 
as its problems multiply. 

It is against this background that I ask you to 
consider the appropriations which are being re- 
quested today. 

Our most important request at this time is for 
the restoration of $4,050,000 for the Department 
service. A reduction of this extent requires the 
discharge of 780 employees before June 30 — one 

April n, 1948 



out of every six members of the staff — the discharge 
of even a larger number if the action is delayed 
beyond that date. 

This cut, I think, would impair major activities 
and cripple supporting activities. The year 1949, 
undoubtedly to be a critical one in world affairs, 
would find us definitely weakened because of budget 
limitations. 

During the past 14 months, the size of the De- 
partment staff, including the information pro- 
gram, has been reduced by more than 1,300 em- 
ployees. In the course of this 20-percent reduc- 
tion, many of the duplications arising from the 
sudden absorption by the Department of five war 
agencies have been eliminated, and the organiza- 
tional structure has been steadily improved. 

We cannot eliminate those administrative and 
policy activities which function to support the 
work and the staff of the Foreign Service abroad. 

' Made before the Senate Appropriations Subcommittee 
on Mar. 23, 1948, and released to the press on the same 
date. 

469 



THE DEPARTMENT 

Nor can we curtail our public-service activities — 
the issuance of passports and visas and the protec- 
tion of American interests in foreign countries. 
Our United Nations Delegation and our delega- 
tions to other international organizations are to 
be maintained. The negotiation of technical 
agreements with other governments must continue. 
Curtailment of our economic-planning activities 
will mean a substantial decrease in the effective- 
ness of the Department at a time when economic 
matters are fundamental considerations in foreign 
policy. In the same manner, our planning and 
policy-making activities must be based on con- 
tinuing intelligence activities. 

Viewed organizationally, the picture is exactly 
the same. 

The geographic offices, organized on a country 
basis, employ only 300 persons. These country 
desks are already taxed beyond their capacity, and 
reductions would be impossible. 

The economic offices of the Department are en- 
gaged in work related to the European Recovery 
Progi-am and the proposed China relief program. 
They are promoting a revival of world trade and 
furthering the establishment of a permanent In- 
ternational Trade Organization. They are en- 
gaged in many other activities related to postwar 
economic problems and the task of reconstnicting 
a stable world economy. 

Eeduction of the United Nations Affairs staff 
is impossible without jeopardizing our interests 
in the United Nations and the specialized agencies. 

The work of the intelligence offices increases in 
importance as dire<;t sources of information are 
closed to us in eastern Europe. 

The administrative offices of the Department are 
hardpressed to provide essential services to the 
public, the Department, the Foreign Service, and 
other agencies of the Government which partici- 
pate in international relations. Sharply reduced 
in the last several years and hardest hit by last 
yeaa-'s reduction-in-force program, these offices 
camiot absorb further cuts without drastic reduc- 
tions in the services which they must render. 

Second in importance only to the Department 
Service is a request for the restoration of the 
$2,672,615 which has been cut from the estimates 
for the Foreign' Service. 

Such a reduction will require the discharge of 
about 500 employees of the Foreign Service. Most 
of the reduction would be applied to consular 
clerks and staffs engaged in observing and report- 
ing political and economic developments around 
the world. The ability of the Foreign Service to 
meet its basic responsibilities would be impaired. 

The legislative framework for the reorganiza- 
tion and improvement of the Foreign' Service is 
contained in the Foreign Service Act of 1946. The 
Department has been working on plans for the im- 
plementation of this act for over a year. 

490 



By July 1947 the Congress had provided, in 
appropriations for 1948, the necessary funds to 
expand and develop the Foreign Service to the 
approved level, and considerable progress has 
been made in the last eight months toward the 
completion of this task. The request for 1949 did 
not contemplate any increase in the staff of the 
Foreign Service beyond 1948 levels. The small 
increase in salaries was requested solely to meet 
statutory promotions. 

The 1949 Foreign Service budget as submitted 
by the President required that further improve- 
ments and further staff increases in particular 
places or for particular purposes must be financed 
through reductions and retrenchments in other 
places and in other programs. This is being done. 

Maintenance of the Foreign Service representa- 
tion allowances at the $700,000 level which was 
appropriated for 1948 and requested for 1949 is 
also very much needed. Congress has recognized 
the necessity for representation funds in modern 
diplomatic relations. The funds previously ap- 
propriated to the Department for this purpose 
have been carefully controlled. A $200,000 reduc- 
tion in 1949 would impair an effective tool in the 
formulation and execution of foreign policy. I 
think that it would be an unwise economy, defi- 
nitely against American interests. 

Restoration is requested of the $6,378,000 which 
has been cut from the estimates for the interna- 
tional information and education program. 

The Department is prepared to carry out the 
full expansion plan in an efficient and economical 
manner, to the level contemplated by the Eightieth 
Congress in its approval of the Mundt-Smith act. 
The budgetary jjlanning was based on negotiations 
and understandings with private press, publish- 
ing, radio, motion picture, and other private 
agencies. 

There is also requested the restoration of $1,400,- 
000 to the appropriation "international contin- 
gencies". This appropriation is required to 
finance the expense of attendance at international 
conferences by officials of the Government. 

Restoration of the reduction of $1,200,000 in the 
program of cooperation with American republics 
is requested by the Department on its own behalf 
and on behalf of the 12 other Federal agencies 
which participate. This is a mutual program in 
which the American republics, as a group, con- 
tribute larger appropriations than we have re- 
quested for the United States share. The agricul- 
tural, scientific, economic, and public-health pro- 
grams are practical progi-ams which benefit the 
United States as well as the countries involved. 
These programs of the American republics repre- 
sent a notable example of the mutual advantages 
to be gained from cooperative efforts within the 
Hemisphere. 

Department of Slate Bulletin 



Treaty Committee 

(a) Purpose. To facilitate coordination of 
policy problems arising under the treaties of peace 
■with Italj^ (including Trieste), Hungary, Bul- 
garia, and Kumania. 

(b) Functions. The Committee performs the 
following functions: 

( 1 ) Identifies and evaluates present and emerg- 
ing problems in respect to the peace treaties, of 
mutual concern to the geographic and functional 
offices in preparing policy recommendations. In 
performing this function the Committee serves 
as a medium for the interchange of information. 

(2) Is responsible for coordinating U.S. policy 
regarding the execution of the peace treaties with 
the four southern European countries mentioned 
above. 

(3) Gives guidance and facilitates clearance 
on instructions to the field on treaty matters. 

(c) Mcmhership. The Committee shall be com- 
posed of representatives of EUR, ITP, OFD, L, 
TRC, R, OIE, PA, and UNA. Representatives of 
the Departments of the Army, Navy, and Air 
Force will be invited to consult on military matters. 

(d) Organization. The officers are the Chair- 
man (from EUR), the Executive Secretary (from 
ITP), and the Secretary (from S/S). 

Addresses on Aid to Greece and Turitey 

On March 25 George C. McGhee, Special As- 
sistant to the Under Secretary and Coordinator for 
Aid to Greece and Turkey, made an address at 
Trenton, N.J., on Greek-Turkish aid; for text of 
this address see Department of State press release 
240 of March 25, 1948. 

On March 29, Loy W. Henderson, Director for 
Near Eastern and African Affairs, made an ad- 
dress on aid to Greece before the Order of Ahepa 
in Washington; for the text of this address, see 
Department of State press release 255 of March 29, 
1948. 

Address on European Recovery Program 

On March 30, Assistant Secretary Thorp made 
an address on European aid before Wisconsin's 
second conference on the United Nations held in 
Milwaukee; for the text of this address, see De- 
partment of State press release 252 of March 30, 
1948. 

THE FOREIGN SERVICE 

Confirmation 

On March 23, 1948, the Senate confirmed the 
nonaination of North Winship to be envoy extra- 
ordinary and minister plenipotentiary to the 
Union of South Africa. 



U.S. and Afghanistan To Raise Legations to 
Embassy Status 

[Released to the press March 18] 

The Governments of the United States and Af- 
ghanistan have agreed to raise their respective 
Legations to Embassy status, effective upon a date 
to be mutually determined. Diplomatic relations 
between the two countries were established on May 
4, 1935, when the first American Minister pre- 
sented his credentials to the King of Afghanistan, 
The first Afghan Minister to the United States 
was received by the President on June 4, 1943. 

In the early years of United States-Afghan- 
istan relations, the American Minister to Iran, 
resident at Tehran, was concurrently accredited 
to Afghanistan. On June 6, 1942, an American 
Legation was opened in Kabul. The present step 
reflects the continued growth of close and cordial 
relations between the two countries. 



Corrections 



In the BmxETiN of March 14, 1948, page 360, first 
column, first line of the article on the Caribbean Commis- 
sion, read "signed on March 4" instead of "signed on 
March 5" the joint resolution (H. J. Res. 231) authorizing 
membership by the United States in the Caribbean Com- 
mission and tlie instrument approving the agreement for 
the establishment of the Caribbean Commission. 

In the Bulletin of April 4, 1948, page 453, second col- 
umn, the next to the last paragraph should read as 
follows : 

"It is proposed that such arrangement as may be agreed 
to by the Powers concerned should be submitted to the 
Security Council for its approval in view of the special 
responsibilities assumed by the Council in connection with 
the Free Territory of Trieste." 



— Continued from page ^61 
are fully respected and that every contracting 
State has a fair opportunity to operate interna- 
tional airlines; 

"(gf) Avoid discrimination between contracting 
States ; 

"(A) Promote safety of flight in international 
air navigation ; 

"(z) Promote generally the development of all 
aspects of international civil aeronautics." 

The groundwork for achieving the aims and 
objectives of the Organization has been carefully 
laid. By supporting Icao's work, the United 
States and other nations of the world will derive 
the maximum benefit from the continued develop- 
ment of international civil aviation. 



April II, 1948 



491 



Ninth International Conference Fage 

of American States 

Interdependence of the Americas. By Sec- 
retary Marshall 469 

U.S. Delegation to Ninth International Con- 
ference of American States 473 

Foreign Aid and Reconstruction 

Foreign Assistance Act of 1948: 

Statement by the President 468 

Statement by Secretary Marshall .... 468 
Program for Development of Sicily and 
Southern Italy. Statement by Robert 

A. Lovett 468 

Addresses on Aid to Greece and Turkey . . 491 
Address on European Recovery Program . 491 

The United Nations and 
Specialized Agencies 

The International Civil Aviation Organiza- 
tion. An Article 463 

General Policy 

Progress of Human Liberty in Democratic 

Forms. By George V. Allen 476 

Rejection"of,,Yugoslav Comments on Personal 

f^ American Activities 485 

Letters of Credence: Guatemala, Panama . 486 

Occupation Matters 

Restitution of Looted Property in Japan: 

United States Directive 482 

Announcement by the Departments of 

State and Commerce 483 

Statement by Secretary Marshall .... 484 

Economic Affairs 

Invitations To Attend the International Air 

Exposition Extended 474 



Economic Affairs — Continued Fage 
U.S. To Act as Host to Fifth Meeting of 

Rubber Study Group 474 

U.S. To Act as Host to Second Meeting of Tin 

Study Group 475 

Fourth International Congresses on Tropical 

Medicine and Malaria Planned .... 475 

Procedure for Filing Claims With Hungary . 485 

New Egyptian Steamship Service to the U.S. . 486 

Plan for New Chilean Bond Service .... 486 

Treaty Information 

International Wheat Agreement Signed . . 474 
Reduction of Trade Barriers- — Rhetoric or 

Reality. By Winthrop G. Brown ... 478 
Entry Into Force of Industrial-Property 

Agreement With France 485 

Income Tax Convention With New Zealand 

Signed 486 

International Information and 
Cultural Affairs 

Educational Exchange Program Under 

Fulbright Act . 487 

Address on Freedom of Information .... 489 

Chilean Lawyer Visits U.S 489 

John N. Andrews Appointed to Board of 

Foreign Scholarships 489 

The Foreign Service 

Confirmation 491 

U.S. and Afghanistan To Raise Legations to 

Embassy Status 491 

The Department 

Appeal for Restoration of Funds for Efficient 
Conduct of Foreign Relations. State- 
ment by Secretary Marshall 489 

Treaty Committee 491 



U. S. GOVERNMENT PRINTIH6 OFFICEi 1948 



tJne^ ^eha^tmeni/ /w t/tate^ 





TED NATIONS MARITIME CONFERENCE 

Article by John ^f f^n*f'^^ Jr 



• • • • • 



495 



FREEDOM OF INFORMATION THROUGHOUT 
WORLD INSURES PEACl. • Addresa by the 
Chairman of the U.S. Delegation to the Freedom of Infor- 



For complete ooment3 see back enter 



Vol XVIII, A 
April 18, 1948 



-AENT 




*tes 



U. b. 




JUN t 1948 



*»«T^ 0« ' 



Me Qle/ia^l^eni: ^/ y^aie iOUllGtin. 



Vol. XVIII. No. 459 • Pubucation 3121 
Ayril 18, 1948 



For sale by the Superintendent of Documents 

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Subscription: 
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Published with the approval of the 
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Note: Contents of this publication are. not 
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be reprinted. Citation of the Department 
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The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
public and interested agencies of 
the Government with information on 
developments in the field of foreign 
relations and on the work of the De- 
partment of State and the Foreign 
Service. The BULLETIN includes 
press releases on foreign policy issued 
by the White House and the Depart- 
ment, and statements and addresses 
made by the President and by the 
Secretary of State and other officers 
of the Department, as well as special 
articles on various phases of inter- 
national affairs and the functions of 
the Department. Information 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 internatioiuil relations, are listed 
currently. 



UNITED NATIONS MARITIME CONFERENCE 

by John Martin Cates, Jr. 



The United Nations Maritime Conference met 
in Geneva, February 19 to March 6, 1948, at the 
invitation of the United Nations Economic and 
Social Council. In a little over two weeks it had 
concluded a convention establishing the Intergov- 
ernmental Maritime Consultative Organization 
to be known as Imco, had adopted a draft agree- 
ment of relationship with the United Nations, 
and had established a Preparatory Committee to 
serve as an interim body for preparation for the 
first Assembly.' The major share of the credit 
for this accomplishment is due to the j^resident 
of the Conference, Dr. J. J. Oyevaar of the Nether- 
lands, who, with firmness and tact, kept the Con- 
ference at its task until the job was accomplished. 

The establishment of Imco upon the ratification 
of the convention by 21 states will complete the 
organization of those specialized agencies believed 
by the United Nations to be necessary to deal with 
technical and economic problems existing or ex- 
pected to arise in the fields of transport and com- 
munication. 

The delegates to the Conference benefited greatly 
from the experience of several Allied wartime 
shipping agencies and two successive postwar or- 
ganizations, the United Maritime Consultative 
Council (Umcc) and the Provisional Maritime 
Consultative Council (Pmcc).^ The Umcc, at a 
conference in Washington in October 1946, had 
prepared the so-called "Washington Draft", a pro- 
posed convention which, with the express approval 
of the Economic and Social Council, served as 
the basic working document for the Maritime 
Conference. 

The representatives of the 32 Governments and 
4 observers ^ who convened in Geneva approached 
the problems before the Conference with unusual 
directness. By the end of the first full day's ses- 
sion the Conference had brought to light the three 
basic questions before it: 

(1) Should a separate maritime organization 
be established, or should a commission of the 
United Nations deal with maritime problems as 
they arise ? 

(2) Should the scope of the organization be 
limited to a narrower scope than the Washington 
Draft to include only technical matters, or should 
the scope be broadened beyond that of the Wash- 
ington Draft to include matters of private ship- 
ping economics ? 

April 18, 1948 



(3) How should a balance be obtained in the 
Council between the ship-providing nations and 
the ship-using nations? 

The United States position on the general prob- 
lem of whether there should be a separate maritime 
organization was set forth by Garrison Norton, 
Assistant Secretary of State and chairman of the 
United States Delegation,* in the opening session 
of the Conference as follows: 

The United States favored the creation of an 
intergovernmental maritime organization in order 
that there might be a shipping organization to 
participate on an equal basis with aviation, tele- 
communication, and meteorological organizations 
in the coordination of such matters as safety of life 
at sea ; to supply continuity of effort necessary for 
effective intergovernmental cooperation in ship- 
ping in place of the present practice of sporadic 
diplomatic conferences; to establish the principle 
that certain shipping problems should, as a gen- 
eral rule, be handled through normal commer- 
cial processes without unnecessary governmental 
interference ; to facilitate the handling of shipping 
problems by governmental and industry personnel 
experienced in shipping matters ; to contribute to 
world peace by the establishment of a forum 
where differences of opinion on shipping questions 
could be discussed and resolved by persons familiar 
with the problems. The United States position 
was that an organization established on the basis 
of the Washington Draft would achieve these ends. 



' The convention and the final act are contained in U.N. 
docs. E/Conf. 4/61 and E/Conf. 4/62 of Mar. 6, 1048. See 
pp. 499 £f. 

' Bulletin of Jan. 25, 1948, p. 99, and Feb. 1, 1948, p. 131. 

' The Governments represented by Delegations were 
Argentina, Australia, Belgium, Brazil, Canada, Chile, 
China, Colombia, Czechoslovakia, Denmark, Dominican 
Republic, Egypt, Finland, France, Greece, India, Ireland, 
Italy, Lebanon, Netherlands, New Zealand, Norway, Pakis- 
tan, Panama, Pern, Poland, Portugal, Sweden, Switzer- 
land, Turkey, United Kingdom, United States of America. 
Governments represented by observers : Cuba, Ecuador, 
Iran, Union of South Africa. In addition the following 
organizations were represented by observers : Interna- 
tional Civil Aviation Organization, International Labor 
Office, International Meteorological Organization, Intei'na- 
tional Telecommunication Union, World Health Organiza- 
tion, International Chamber of Commerce, International 
Cooperative Alliance, International Law Association, In- 
ternational Transport Workers Fe<leration. 

* For membership on the U. S. Delegation, see Bxjlletin 
of Feb. 29, 1948, p. 286. 

495 



After several days of general discussion by the 
full Conference, a working group, which came to 
be known as the Main Working Party, was set up 
imder the chairmansliip of the president of the 
Conference, consisting of representatives of the 
following countries: Argentina, Australia, Bel- 
gium, Brazil, Cliina, France, India, Ireland, Nor- 
way, Poland, United Kingdom, and United States. 
This group, after meeting for several days in 
closed sessions and tlien alternately with the full 
Conference, was able to develop the majority of 
the proposals which became the basis of the final 
convention. 

The first major issue as to whether shipping 
problems should be handled by an independent 
maritime organization or by a commission of the 
United Nations was raised by Australia and New 
Zealand, which opposed the establislmient of a sep- 
arate maritime organization, preferring that, in 
the interests of coordination and economy, mari- 
time problems be dealt with by commissions of the 
United Nations. Australia and New Zealand were 
alone in their support of this proposal, and the 
Conference, although not actually voting upon 
this matter until almost its final session, proceeded 
in its discussions on the assumption that there 
should be a separate organization. One of the 
most effective arguments against placing shipping 
matters under a commission of the United Nations 
was made by Sir Ramaswami Mudaliar, the Repre- 
sentative of India and a former chairman of the 
United Nations Economic and Social Council, 
who stated that in the light of his experience he 
did not believe United Nations commissions wei"e 
so organized as to be able to carry out the functions 
proposed for the Maritime Organization. Fur- 
ther, he believed the International Trade Organi- 
zation (Ito) would be too burdened by other 
matters to take up the special problems arising 
in the shipping industry. 

The second major issue was raised by the Scan- 
dinavian countries and Finland by the proposal 
that Imco be established as a technical organiza- 
tion only, and that matters of discrimination and 
unfair restrictive practices, that is, commercial 
practices, be left to the United Nations or to the 
proposed Ito. 

This proposal, which would have meant an or- 
ganization of narrower scope than that proposed 
in the Washington Draft, wliicli had been agreed 
to by the Scandinavians at the Washington Umcc 
conference in 1947, launched a long and thorough 
debate on the advisability of defining the terms 
"discrimination" and "unfair" or "restrictive" 
practices; the proposed scope of the International 
Trade Organization; ship-operating subsidies; 
bilateral agreements to divide tonnage; the defi- 
nition of "technical matters"; sliipping con- 
ferences; the need to guard against the new or- 
ganization's being so constituted as to prevent 

496 



newcomers to the field from developing their own 
merchant marines ; and related matters in the field 
of shipping economics. 

After lengthy discussion the Main Working 
Party drew up article 1 (b) of the convention as 
it now stands and a proposed article 1 (c) which 
would liave provided tliat the Organization sliould 
consider any shipping problems of an inter- 
national character involving matters of general 
principle, including unfair practices of private 
shipping concerns, that might be referred to the 
Organization by member governments, or by the 
United Nations and its specialized agencies. 

The proposed language of article 1 (c) gave 
rise to a discussion as to the possibility of Imco's 
going further than Ito, or building up a body of 
doctrine in conflict with that of Ito, with regard 
to matters of unfair practices. Tliis discussion 
resulted in two counterproposals: one, a Scandi- 
navian proposal which substituted for the pro- 
posed article 1(c) new language which would 
provide that Imco could consider unfair restric- 
tive practices referred to it by Ito, and the other, 
a United States proposal which would clarify the 
procedures expected to be followed in matters of 
unfair practices by providing that Imco should 
recommend that those matters capable of settle- 
ment by the normal processes of international 
shipping should be so settled, and that matters 
concerning unfair restrictive practices of private 
sliipping concerns should be considered by Imco 
only after the parties failed to reach an adjustment 
between themselves. Further, the United States 
view was that when and if Imco did take juris- 
diction, such matters should be considered in the 
light of the applicable principles and precedents 
established by the specialized agencies having re- 
sponsibility in the field of business practices. This 
reference was to the Ito. 

In making its proposal the United States stated 
that its desire was first, to avoid setting up a de- 
bating society on all kinds of shipping problems, 
g referring rather to focus the attention of the 
'rganization on the essentials, and secondly, a 
desire to avoid building up a body of doctrine in 
conflict with that of other international organi- 
zations. 

The discussion of these counterproposals led 
finally to the adoption by the Conference of a com- 
promise proposed by the United Kingdom in lan- 
guage substantially the same as that in article 1 
(c) and (d) of the final convention, the only dele- 
gations voting against this compromise being the 
Scandinavian bloc and Finland. The withdrawal 
by the United States of its proposal and its sup- 
port of the United Kingdom proposal in the inter- 
ests of conciliation and cooperation were effective 
not only in having the United Kingdom proposal 
adopted but also in establishing an atmosphere of 
cooperative endeavor on the part of the delegates 
which prevailed throughout the Conference and 

Department of State Bulletin 



which was instrumental in gaining agreement on 
several other difficult points. 

As a result of the adoption of article 1 of the 
convention, the Organization will have jurisdic- 
tion over questions which any member may raise 
relating to technical matters of all kinds affect- 
ing shipping engaged in international trade, in- 
cluding safety; the encouragement of the removal 
of discriminatory action and unnecessary restric- 
tions by governments; and consideration of mat- 
ters concerning unfair restrictive practices by 
shipping concerns. The Organization may also 
consider other shipping matters referred to it by 
the United Nations or any specialized agencies. 
The probable alternative to the inclusion of these 
purposes was that some international body other 
than Imco would have assumed jurisdiction over 
any problems involving shipping economics raised 
directly or through one of the bodies of the United 
Nations. 

The question as to whether the granting of sub- 
sidies should be viewed as an unfair practice was 
fully discussed, but the sense of the Conference 
was that this question would have to be determined 
in each instance by the Organization after it had 
come into existence. Certain delegations were of 
the opinion that the test should be whether a sub- 
sidy was designed to restrict trade or to aid in the 
development of whatever shipping was considered 
necessary for the economic development and se- 
curity of the nation concerned. To record the 
sense of the Conference, there was added to article 
1 (b), which relates to the removal of discrimina- 
tory action and inmecessary restrictions by gov- 
ernments, the following proviso: 

"assistance and encouragement given by a Govern- 
ment for the development of its national shipping 
and for purposes of security does not in itself con- 
stitute discrimination, provided that such assist- 
ance and encouragement is not based on measures 
designed to restrict the freedom of shipping of all 
flags to take part in international trade;" 

A proposal to define further this concept in the 
Conference was defeated. 

The third major point, the composition of the 
Council, was settled by the adoption of the lan- 
guage which now appears in articles 17 and 18 
of the convention and by agreement upon the com- 
position of the first Council as set forth in appen- 
dix I to the convention. 

The Conference departed substantially from the 
make-up of the Council as set out in the Washing- 
ton Draft, final agreement being on the basis of 
an Argentine proposal of a division of members 
in groups of six, six, and four. This arrangement 
was proposed in place of the Washington Draft 
concept of a Council divided into representatives 
of eight nations with the largest interest in the 
provisions of shipping services — four nations with 
the largest interest in international trade and four 

April 18, 1948 



elected with regard to the desirability of adequate 
geographical representation. The Argentine pro- 
posal, as finally adopted in article 17 of the con- 
vention, provided that six members should repre- 
sent governments "with the largest interest in pro- 
viding international shipping services" ; six should 
represent "other nations with the largest interest 
in international seaborne trade"; and of the four 
remaining, two should represent governments 
"having a substantial interest in providing inter- 
national shipping services", and two should repre- 
sent governments "having a substantial interest in 
international seaborne trade". 

It was apparent that until some agi'eement was 
reached as to which nations would be represented 
on the Council, the Conference would make little . 
progress on this important article. Accordingly, 
a working group in an all-night session developed 
a list of 12 countries to make up groups (a) and 
(b) under article 17 as well as a procedure for the 
selection of the Council as subsequently provided 
in article 18 of the convention. 

The six nations chosen as having the largest 
interest in providing international shipping serv- 
ices were determined by the Working Party to be 
Greece, Netherlands, Norway, Sweden, United 
Kingdom, and United States ; and the six Govern- 
ments with the largest interest in international 
seaborne trade were Argentina, Australia, Bel- 
gium, Canada, France, and India. 

The motivating purpose behind this distribu- 
tion of Council seats was to maintain a balance 
between ship-providing nations and ship-using na- 
tions. The next step was to work out procedures 
for choosing such nations. Having no definite 
formula before it, the Working Party chose the 
original 12 on the basis of tonnage figures and 
the expert knowledge of the various delegates 
pi'esent. In order that this balance might be 
maintained in the future, the Working Party fur- 
ther proposed that the Council itself should deter- 
mine, for purposes of membership on the Council, 
those governments with the largest interest in pro- 
viding international shipping services, those hav- 
ing a substantial interest in providing such serv- 
ices, and those having the largest interest in inter- 
national seaborne trade. The Assembly then 
would elect two nations from among those nomi- 
nated by the Council as having "a substantial in- 
terest in providing" shipping services and two na- 
tions to represent those "having a substantial in- 
terest in international seaborne trade". 

When these proposals were placed before the 
Conference, discussion was directed toward the 
necessity for geographic distribution, alleged un- 
democratic processes followed in choosing the 
Council, and what was referred to as the "veto 
power" of the Council. It was evident, however, 
that regardless of selection procedures, not all na- 
tions represented at the Conference would be able 
to obtain seats on the Council. Recognition of this 

497 



fact was made by the Delegate of Brazil who, in 
one of the most effective speeches of the Confer- 
ence, pointed out the fact of tlie limited number of 
seats on the Council and the fact that Brazil itself 
was not included among the first 12 nations se- 
lected, but expressed the willingness of Brazil to 
cooperate in this attempt to reach a compromise, 
with tlie liope that Brazil's importance to world 
trade might be recognized wlien tlie four remaining 
members of the Council were cliosen. This con- 
ciliatory proposal by the Representative of Brazil 
had much the same effect as the earlier move by 
the United States Delegate in accepting a com- 
promise proposal on the functions of the Organi- 
zation. 

Acceptance of the final language on the Council 
was aided also by the realization of the majority 
of delegates that the interests of the older sliip- 
owning nations, the "common carriers", deserved 
the amount of protection afforded by the election 
procedures and by the referral procedure (referred 
to in debate as the "veto power" of the Council) 
provided in article 16 (h), at least during the 
formative yeai's of the Organization. The final 
vote on the adoption of articles 17 and 18 was 21 
in favor and 4 opposed. 

Failure to include Panama among the 12 orig- 
inal members of tlie Council and as a member of 
the Main Working Party was cited by the Dele- 
gate of Panama as evidence that the Conference 
was systematically overlooking the interests of 
Panama and as the reason for Panama's formal 
witlidrawal from the Conference. 

Following agreement on tliis third major issue, 
the Conference was divided for discussion and 
drafting purposes into three additional working 

garties. Maritime Safety, Legal Questions, and 
Relationship With the United Nations. These 
groups, together with the Main Working Party 
and a subsequently api^ointed drafting committee, 
worked out the language as finally adopted for 
the balance of the convention. 

So far as the final language differs from the 
Washington Draft, tlie following points deserve 
notice : 

The membership provision (part III) was 
amended to provide that those states not mem- 
bers of the United Nations, but which were in- 
vited to the Conference, might become original 
members of the Organization. Provision was also 
made for nonvoting associate members. 

The Maritime Safety Committee (part VII) 
was given enlarged functions and its own secre- 
tary. The chief change in the functions of the 
Maritime Safety Committee was that it should 
"provide machinery for performing any duties 
assigned to it by the Convention, or by the Assem- 
bly, or any duty within the scope of this Article 
which may be assigned to it by any other intergov- 
ernmental instrument". Tliis language was in- 

498 



tended to allow the Safety Committee to assume 
the administration of any functions which might 
be given to it under the new convention on safety 
of life at sea to be drawn up by the Safety of 
Life at Sea Conference meeting in London on 
April 23, 1948. 

The headquarters of the Organization (article 
44) will be established in London, although by 
a two-thirds majority vote the site may be changed. 
This decision was a compromise between the 
United States position that the headquarters site 
should not be frozen into tlie basic convention 
and the wish of the majority of the delegates that 
tlie headquarters be located in London and that 
the decision be made at this Conference. 

The privileges and immunities (part XIII) to 
be accorded the Organization are to be those pro- 
vided by the so-called "general convention on the 
privileges and immunities of the specialized 
agencies" approved by the United Nations Gen- 
eral Assembly on November 21, 1947. Pending 
the adoption of this general convention by the 
various governments, the members shall take into 
account, as far as possible, tlie standard clauses 
thereof. Imco is the first organization to be set 
up subsequent to the conclusion of this general 
convention by tlie United Nations. The adoption 
of the above provision was in accordance with a 
recommendation by the United Nations General 
Assembly that tlie constitutional instruments of 
specialized agencies thereafter established should 
not contain detailed provisions relating to the 
privileges and immunities to be accorded to them 
but should provide that such privileges and im- 
munities be governed by the said general con- 
vention. 

Authority was given the Organization (article 
49) to take over from any other international or- 
ganizations such resources and obligations as 
might be transferred by international agreement 
or by mutually acceptable arrangements, and also 
to assume any administrative functions within its 
scope which, under the terms of any international 
instrument, have been entrusted to a particular 
government. This provision will permit a cen- 
tralizing of functions relating to maritime mat- 
ters which, under numerous conventions and in 
the absence of any maritime organization, have 
been entrusted to various governments. 

Twenty-one ratifications are required by article 
60 to bring the convention into force as contrasted 
to 16 required by the Washington Draft. 

Tlie problem of an interim organization was 
met by a resolution, set out in annex A to the final 
act of the Conference, establishing a Preparatory 
Committee consisting of representatives of the 
12 states chosen as original members of the Coun- 
cil. Tliis Committee is to be responsible for con- 
vening the first session of the Imco Assembly; for 
the preparation of proposals to be placed before 
this first session with regard to the internal or- 

Department of State Bulletin 



ganization of Imco; for a scale of contributions 
and an annex to the general convention on the 
privileges and immunities of the specialized agen- 
cies; and for the negotiation of an agreement of 
relationship with the United Nations. 

Lastly, two resolutions were adopted, annexes 
B and C of the final act of the Conference, with 
the purpose of t3'ing in the results of the Maritime 
Conference with the Safety of Life at Sea Con- 
ference which was to convene in the following 
month. Specifically, the first recommended that 
the safety conference draft provisions in its final 
acts which would take into account the duties and 
functions relating to maritime safety accorded to 
Imco, and the second directed that the safety con- 
ference be informed that part VII of the Imco 
convention, which establishes the Maritime Safety 
Committee, was drafted in the light of considera- 
tion by the Maritime Conference of the report of 
the Committee of Experts on the coordination of 
safety of life at sea and in the air. This Expert 
Committee had been convened at the request of 
the Economic and Social Council (Ecosoc) to 
consider this problem of coordination and report 
its results to Ecosoc and to the safety conference. 
It is hoped that the forthcoming safety conference 
will be the last ad hoc diplomatic conference on 
this subject and that thereafter the assemblies of 
Imco will perform the functions formerly carried 
out by the safety conferences. These resolutions 
are directed at bringing about that desirable end. 

The final vote on the convention was 21 in favor, 
1 opposed, 7 abstentions, and 3 absences." The 
Scandinavian countries in abstaining stated that 
their instructions were to approve only an organi- 
zation technical in nature, and therefore, they 
must obtain the concurrence of their governments 
before signing. For the same reason they must 
abstain from voting. The objection of the Chinese 
Delegate was to the articles relating to the Coun- 
cil ; Egypt's abstention was for the same reason. 

To date 20 states have signed the convention: 
Argentina, Australia, Belgium, Chile, Colombia, 
Egypt, Finland, France, Greece, India, Ireland, 



Italy, Lebanon, Netherlands, Poland, Portugal, 
Switzerland, Turkey, United Kingdom, and 
United States. 

Following the termination of the Conference, 
the Preparatory Committee held a special meeting 
at which it was decided that a representative of 
Canada should serve as chairman; that the first 
regular meeting of the committee would be held 
at Lake Success in October 1948 ; that all interim 
secretariat functions should be performed on be- 
half of the Preparatory Committee by the Secre- 
tariat of the United Nations. 

The success of the Conference clearly demon- 
strates the achievements in international coopera- 
tion possible under a specialized agency when the 
delegates are familiar with technical matters 
under discussion, as well as with the related politi- 
cal problems, and are sincerely devoted to the 
cause of international cooperation. Prior to the 
convening of the Conference, doubts were voiced 
as to whether a maritime organization could be 
established, so divergent were certain national 
views. However, during the Conference there 
was apparent not only a sincere desire to reach an 
agreement on an Intergovernmental Maritime 
Consultative Organization but also a willingness 
to work out compromises recognizing opposing 
points of view in order to make an agreement pos- 
sible. The success of the Maritime Conference in 
concluding, in less than two and one-half weeks, a 
workable agreement in such a controversial field, 
evidences the atmosphere of conciliation and co- 
operation which pervaded the Conference as well 
as the determination of the delegates to reach 
agreement. 

The Imco convention provides an organization 
representing shipping interests which can act with 
the other international organizations in the trans- 
port and communications field to effect the coordi- 
nation necessary in matters of safety procedures at 
and over the sea, and the planning necessary to 
work out the effective integration of transport sys- 
tems throughout the world. 



Convention of the Intergovernmental Maritime Consultative Organization *= 



The States parties to the present Convention hereby 
establish the Intergovernmental Maritime Consultative 
Organization (hereinafter referred to as "the Organiza- 
tion"). 

PART I 

Purposes of the Organization 

Article 1 

The purposes of the Organization are : 

(a) to provide machinery for co-operation among Gov- 
ernments in the field of governmental regulation and prac- 



" Voting in favor of the convention : Argentina, Aus- 
tralia, Belgium, Brazil, Canada, Chile, Colombia, Domini- 
can Republic, Finland, France, Greece, India, Ireland, 

April 18, 1948 



tices relating to technical matters of all kinds affecting 
shipping engaged in international trade, and to encourage ■ 
the general adoption of the highest practicable standards 
In matters concerning maritime safety and efficiency of 
navigation ; 

(6) to encourage the removal of discriminatory action 
and unnecessary restrictions by Governments affecting 
shipping engaged in international trade so as to promote 
the availabilify of shipping services to the commerce of 
the world without discrimination ; assistance and encour- 



Italy, Netherlands, Poland, Portugal, Switzerland, Turkey, 
United Kingdom, and United States. Against: China. 
Abstentions: Denmark, Esypt, Lebanon, Norway, New 
Zealand, Pakistan, and Sweden. Absences: Czechoslo- 
vakia, Panama, and Peru. 

" U.N. doc. E/Conf. 4/61 of Mar. 6, 1948. 

499 



agement given by a Government for the development of its 
national sliipping and for purposes of security does not 
in itself constitute discrimination, provided that such 
assistance and encouragement is not based on measures 
designed to restrict the freedom of shipping of all flags 
to take part in international trade ; 

(c) to provide for the consideration by the Organiza- 
tion of matters concerning unfair restrictive practices by 
shipping concerns in accordance with Part II ; 

(d) to provide for the consideration by the Organiza- 
tion of any matters concerning shipping that may be re- 
ferred to it by any organ or Specialized Agency of the 
United Nations ; 

(e) to provide for the exchange of information among 
Governments on matters under consideration by the 
Organization. 

PART II 
Functions 

Article 2 

The functions of the Organization shall be consultative 
and advisory. 

Article S 

In order to achieve the purposes set out in Part I, the 
functions of the Organization shall be : — 

(o) subject to the provisions of Article 4, to consider 
and malje recommendations vipon matters arising under 
Article 1 (a), (6) and (c) that may be remitted tb it by 
Members, by any organ or Specialized Agency of the 
United Nations or by any other intergovernmental organi- 
zation or upon matters referred to it under Article 1(d) ; 

(6) to provide for the drafting of conventions, agree- 
ments, or otlier suitable instruments, and to recommend 
these to Governments and to intergovernmental organiza- 
tions, and to convene such conferences as may be neces- 
sary; 

(c) to provide machinery for consultation among Mem- 
bers and the exchange of information among Govern- 
ments. 

Article 4 

In those matters which appear to the Organization cap- 
able of settlement through the normal processes of interna- 
tional .shipping business the Organization shall so recom- 
mend. When, in the opinion of the Organization, any 
matter concerning unfair restrictive practices by shipping 
concerns is incapable of settlement through tiie normal 
processes of international shipping business, or has in fact 
so proved, and provided it shall first have been the sub- 
ject of direct negotiations between the Members concerned, 
the Organization shall, at the request of one of those 
Members, consider the matter. 

PART III 

Membership 

Article S 

Membership in the Organization shall be open to all 
States, subject to the provisions of Part III. 

Article 6 

Members of the United Nations may become Members 
of the Organization by becoming parties to the Conven- 
tion in accordance witli the provisions of Article 57. 

Article 7 

States not Members of the United Nations which have 
been invited to .send representatives to the United Na- 
tions Maritime Conference convened in Geneva on the 

500 



19th February 1948, may become Members by becoming 
parties to the Convention in accordance with the provi- 
sions of Article 57. 

Article 8 

Any State not entitled to become a Member under Article 
6 or 7 may apply through the Secretary-General of the 
Organization to become a Member and shall be admitted 
as a Member upon its becoming a party to the Conven- 
tion in accordance with the provisions of Article 57 pro- 
vided that, upon the recommendation of the Council, its 
application has been approved by two-thirds of the Mem- 
bers other than Associate Members. 

Article 9 

Any territory or group of territories to which the Con- 
vention has been made applicable under Article 58, by 
the Member having responsibility for its international 
relations or by the United Nations, may become an As- 
sociate Member of the Organization by notification in 
writing given by such Member or by the United Nations, 
as the case may be, to the Secretary-General of the United 
Nations. 

A7-ticle 10 

An Associate Member shall have the rights and obli- 
gations of a Member under the Convention except that 
it shall not have the right to vote in the Assembly or be 
eligible for meml>ership on the Council or on the Mari- 
time Safety Committee and .subject to this the word "Mem- 
ber" in the Convention shall be deemed to include Asso- 
ciate Member unless the context otherwise requires. 

Article 11 

No State or territory may become or remain a Member 
of the Organization contrary to a resolution of the Gen- 
eral Assembly of the United Nations. 

PART IV 
Organs 

Article 12 

The Organization shall consist of an Assembly, a Coun- 
cil, a Maritime Safety Committee, and such subsidiary 
organs as the Organization may at any time consider 
necessary ; and a Secretariat. 

PART V 

The Assembly 

Article 13 

The Assembly shall consist of all the Members. 

Article 14 

Regular sessions of the Assembly shall take place once 
every two years. Extraordinary sessions shall be con- 
vened after a notice of sixty days whenever one-third 
of the Members give notice to the Secretary-General that 
they desire a session to be arranged, or at any time if 
deemed necessary by the Council, after a notice of sixty 
days. 

Article IS 

A majority of the Members other than Associate Mem- 
bers shall constitute a quorum for the meetings of the 
Assembly. 

Article 16 

The functions of the Assembly shall be: 

(a) to elect at each regular session from among its 
Members, other than Associate Members, its President 

Department of State Bulletin 



and two Vice Presidents who shall hold oflSce iintil the 
next I'egular session ; 

(6) to determine its own rules of procedure except as 
i>tlierwise provided in tlie Convention ; 

(c) to establish any temporary or, upon recommenda- 
tion of the Council, iJermanent subsidiary bodies it may 
consider to be necessary ; 

(d) to elect the Members to be represented on the 
Council, as provided in Article 17, and on the Maritime 
Safety Committee as provided in Article 28 ; 

(e) to receive and consider the reports of the Council, 
and to decide upon any question referred to it by the 
Council ; 

(f) to vote the budget and determine the financial ar- 
rangements of the Organization, in accordance with Part 
IX; 

(g) to review the expenditures and approve the ac- 
counts of tlie Organization ; 

(h) to perform the functions of the Organization, pro- 
vided that in matters relating to Article 3 (a) and (b), 
the Assembly shall refer such matters to the Council 
for formulation by it of any recommendations or instru- 
ments thereon ; provided further that any recommenda- 
tions or instruments submitted to the Assembly by the 
Council and not accepted by the Assembly shall be referred 
back to the Council for further consideration with such 
observations a§,tbe Assembly may make; 

(0 to recommend to Members for adoption regulations 
concerning maritime safety, or amendments to such regu- 
lations, which liave been referred to it by the Maritime 
Safety Committee through the Council ; 

(;■) to refer to the Council for consideration or decision 
any matters within the scope of the Organization, except 
that the function of making recommendations under para- 
graph (i) of this Article shall not be delegated. 

PART VI 
The Council 

Article n 

The Council shall consist of sixteen Members and shall 
be composed as follows : 

(«) six shall be governments of the nations with the 
largest interest in providing international shipping 
services ; 

(6) six shall be governments of other nations with the 
largest interest in international seaborne trade ; 

(c) two shall be elected by the Assembly from among 
the governments of nations having a substantial interest 
in providing international shipping services, and 

(d) two shall be elected by the Assembly from among 
the governments of nations having a substantial interest 
in international seaborne trade. 

In accordance with the principles set forth in this Ar- 
ticle the tirst Council shall be constituted as provided In 
Appendix I to the present Convention. 

Article 18 

Except as provided in Appendix I to the present Con- 
vention, the Council shall determine for the purpose of 
Article 17 (a), the Members, governments of nations with 
the largest interest in providing international shipping 
services, and shall also determine, for the purpose of Ar- 
ticle 17 (c), the Members, governments of nations having 
a substantial interest in providing such services. Such 
determinations shall be made by a majority vote of the 
Council including the concurring votes of a ma.iority of 
the Members represented on the Council under Article 17 
(a) and (c). The Council shall further determine for 
the purpose of Article 17 (b), the Members, governments 
of nations with the largest interest in international sea- 
borne trade. Each Council shall make these determi- 
nations at a reasonable time before each regular session 
of the A,ssembly. 

AprW 18, 7948 

784391 — 48 2 



Article 19 

Members represented on the Council in accordance with 
Article 17 shall hold office until the end of the next regular 
session of the Assembly. Members shall be eligible for 
re-election. 

Article 20 

(a) The Council shall elect its Chairman and adopt 
its own rules of procedure except as otherwise provided 
in the Convention. 

(6) Twelve members of the Council shall constitute a 
quorum. 

(c) The Council shall meet upon one month's notice as 
often as may be necessary for the efficient discharge of 
its duties upon the summons of its Chairman or upon 
request by not less than four of its members. It shall 
meet at such places as may be convenient. 

Article 21 

The Council shall Invite any Member to participate, 
without vote, in its deliberations on any matter of par- 
ticular concern to that Member. 

Article 22 

(a) The Council shall receive the recommendations and 
reports of the Maritime Safety Committee and shall trans- 
mit them to the Assembly and, when the Assembly is not 
in session, to the Members for information, together with 
the comments and recommendations of the Council. 

(6) Matters within the scope of Article 29 shall be con- 
sidered by the Council only after obtaining the views of 
the Maritime Safety Committee thereon. 

Article 2S 

The Council, with the approval of the Assembly, shall 
appoint the Secretary-General. The Council shall also 
make provision for the appointment of such other per- 
sonnel as may be necessary, and determine the terms and 
conditions of service of the Secretary-General and other 
personnel, which terms and conditions shall conform as 
far as possible with those of the United Nations and its 
Specialized Agencies. 

Article Si 

The Council shall make a report to the Assembly at 
each regular session on the work of the Organization 
since the previous regular session of the Assembly. 

Article 25 

The Council shall submit to the Assembly the budget 
estimates and the financial statements of the Organiza- 
tion, together with its comments and recommendations. 

Article 26 

The Council may enter into agreements or arrange- 
ments covering the relationship of the Organization with 
Other organizations, as provided for in Part XII. Such 
agreements or arrangements shall be subject to approval 
by the Assembly. 

Article 27 

Between sessions of the Assembly, the Council shall 
perform all the functions of the Organization, except the 
function of making recommendations under Article 16 (1). 

PART VII 
Maritime Safety Committee 

Article 28 

(a) The Maritime Safety Committee shall consist of 
fourteen Members elected by the Assembly from the 

501 



Members, governments of those nations having an im- 
portant interest in maritime safety, of which not less 
than eight shall be the largest ship-owning nations, and 
the remainder shall be elected so as to ensure adequate 
representation of Members, governments of other nations 
with an important interest in maritime safety, such as 
nations interested in the supply of large numbers of 
crews or in the carriage of large numbers of berthed and 
unberthed passengers, and of major geograpliical areas. 
(6) Members shall be elected for a term of four years 
and shall be eligible for re-election. 

Article 29 

(a) The Maritime Safety Committee shall liave the 
duty of considering any matter within the scope of the 
Organization and concerned with aids to navigation, con- 
struction and equipment of vessels, manning from a safety 
standpoint, rules for the prevention of collisions, liandllng 
of dangerous cargoes, maritime safety procedures and 
requirements, hydrographic information, log-books and 
navigational records, marine casualty investigation, Bal- 
vage and re.scue, and any other matters directly affecting 
maritime safety. 

(6) The Maritime Safety Committee shall provide ma- 
chinery for performing any duties assigned to it by the 
Convention, or by the Assembly, or any duties within 
the scope of this Article which may be assigned to It 
by any other intergovernmental instrument. 

(c) Having regard to the provisions of Part XII, the 
Maritime Safety Committee shall have the duty of main- 
taining such close relationship with other intergovern- 
mental bodies concerned with transport and communica- 
tions as may further the object of the Organization in 
promoting maritime safety and facilitate tlie co-ordina- 
tion of activities in the fields of shipping, aviation, tele- 
communications and meteorology with respect to safety 
and rescue. 

Article SO 

The Maritime Safety Committee, through the Council, 
Bhall : 

(o) submit to the Assembly at its regular sessions 
proposals made by Members for safety regulations or 
for amendments to existing safety regulations, together 
with its comments or recommendations thereon ; 

(6) report to the Asseml)ly on the worli of the Maritime 
Safety Committee since the previous regular session of 
the Assembly. 

Article 31 

The Maritime Safety Committee shall meet once a year 
and at other times upon request of any five of its mem- 
bers. It shall elect its officers once a year and shall adopt 
its own rules of procedure. A majority of its members 
shall constitute a quorum. 

Article 32 

The Maritime Safety Committee shall invite any Mem- 
ber to participate, without vote, in its deliljerations on 
any matter of particular concern to that Member. 

PART VIII 
The Secretariat 

Article 33 

The Secretariat shall comprise the Secretary-General, 
a Secretary of the Maritime Safety Committee and such 
stalf as tile Organization may require. The Secretary- 
General shall be the chief administrative officer of the 

502 



Organization, and shall, subject to the provisions of 
Article 23, appoint the above-mentioned personnel. 

Article 34 

The Secretariat shall maintain all such records as may 
be necessary for the efficient discliarge of the functions of 
the Organization and shall prepare, collect and circulate 
the papers, documents, agenda, minutes and information 
that may be required for the work of the Assembly, the 
Council, the Maritime Safety Committee, and such sub- 
sidiary organs as the Organization may establish. 

Article 35 

The Secretary-General shall prepare and submit to the 
Council the financial statements for each year and the 
budget estimates on a biennial basis, with the estimates 
for each year shown separately. 

Article 36 

The Secretary-General shall keep Members informed 
with respect to the activities of the Organization. Each 
Member may appoint one or more representatives for the 
purpose of communication with the Secretary-General. 

Article 37 

In the performance of their duties the Secretary-Gen- 
eral and the staff shall not seek or receive instructions 
from any government or from any authority external to 
the Organization. They .shall refrain from any action 
which might reflect on their position as international 
officials. Each Member on Its part undertakes to respect 
the exclusively international character of the responsi- 
bilities of the Secretary-General and the staff and not to 
seek to Influence them in the discharge of their responsi- 
bilities. 

Article 38 

The Secretary-General shall perform such other tasks as 
may be assigned to him by the Convention, the Assembly, 
the Council and the Maritime Safety Committee. 

PART IX 
Finances 

Article S9 

Each member shall bear the salary, travel and other 
exi)enses of its own delegation to the Assembly and of 
its representatives on the Council, the Maritime Safety 
Committee, other committees and subsidiary bodies. 

Article 40 

The Council shall consider the financial statements and 
budget estimates prepared by the Secretary-General and 
submit them to the Assembly with its comments and recom- 
mendations. 

Article 41 

(a) Subject to any agreement between the Organiza- 
tion and the United Nations, the Assembly shall review 
and approve the budget estimates. 

(6) The Assembly shall apportion the expenses among 
the Members in accordance with a scale to be fixed by 
it after consideration of the proposals of the Council 
thereon. 

Article 4^ 

Any Member which fails to discharge its financial obli- 
gation to the Organization within one year from the date 
on which it is due, shall have no vote in the Assembly, 
the Council, or the Maritime Safety Committee unless the 
Assembly, at Its discretion, waives this provision. 



Department of State BuUef'm 



PART X 

Voting 

Article 4S 

The following provisions shall apply to voting in the 
Assembly, the Council and the Maritime Safety Com- 
mittee: 

(a) Each Member shall have one vote. 

(6) Except as otherwise provided in tlie Convention 
or in any international agreement which confers functions 
on the Assembly, the Council, or the Maritime Safety 
Committee, decisions of these organs shall be by a ma- 
jority vote of the Members present and voting and, for 
decisions where a two-thirds majority vote is required, 
by a two-thirds majority vote of those present. 

(c) For the purpose of the Convention, tlie phrase 
"Members present and voting" means "Members present 
and casting an affirmative or negative vote". Members 
which abstain from voting shall be considered as not 
voting. 

PART XI 
Headquarters of the Organization 

Article 44 

(o) The headquarters of the Organization shall be es- 
tablished in London. 

(6) The Assembly may by a two-thirds majority vote 
change the site of the lieadquarters if necessary. 

(c) The Assembly may hold sessions in any place other 
than the headquarters if the Council deems it necessary. 

PART XII 

Relationship with the United Nations and other 
Organizations 

Article 45 

The Organization shall be brought into relationship 
with the United Nations In accordance with Article 57 of 
the Charter of the United Nations as the Specialized 
Agency in the field of shipping. This relationship shall 
be effected through an agreement with the United Nations 
under Article 63 of the Charter of the United Nations, 
which agreement shall be concluded as provided in Ar- 
ticle 26. 

Article 46 

The Organization shall co-operate with any Specialized 
Agency of the United Nations in matters which may be 
the common concern of tlie Organization and of such 
Specialized Agency, and shall consider such matters and 
act with respect to them in accord with such Specialized 
Agency. 

Article 47 

The Organization may, on matters within its scope, 
co-operate with other inter-governmental organizations 
which are not Specialized Agencies of the United Nations, 
but whose interests and activities are related to the pur- 
poses of the Organization. 

Article 4S 

The Organization may, on matters within its scope, 
make suitable arrangements for consultation and co- 
operation with non-governmental international organiza- 
tions. 

Article 49 

Subject to approval by a two-thirds majority vote of 
the Assembly, the Organization may take over from any 
other international organizations, governmental or non- 

>\pn7 T8, 1948 



governmental, such functions, resources and obligations 
within the scope of the Organization as may be transferred 
to the Organization by international agreements or by 
mutually acceptable arrangements entered into between 
competent authorities of the respective organizations. 
Similarly, the Organization may take over any adminis- 
trative functions which are within its scope and which 
have been entrusted to a government under the terms of 
any international instrument. 

PART XIII 
Legal Capacity, Privileges and Immunities 

Article 50 

The legal capacity, privileges and immunities to be 
accorded to, or in connection with, the Organization, sliall 
be derived from and governed by the General Convention 
on the Privileges and Immunities of the Specialized Agen- 
cies approved by the General Assembly of the United 
Nations on the 21st November, 1047, subject to such modi- 
fications as may be set forth in the final (or revised) text 
of the Annex approved by the Organization in accordance 
with Sections 36 and 38 of the said General Convention. 

Article 51 

Pending its accession to the said General Convention in 
respect of the Organization, each Member undertakes to 
apply the provisions of Appendix II to the present Con- 
vention. 

PART XIV 

Amendments 

Article 52 

Texts of proposed amendments to the Convention shall 
be communicated by the Secretary-General to Members at 
least six months in advance of their consideration by the 
Assembly. Amendments shall be adopted by a two-thirds 
majority vote of the Assembly, including the concurring 
votes of a majority of the Members represented on the 
Council. Twelve months after its acceptance by two- 
thirds of the Members of the Organization, other than 
Associate Members, each amendment shall come into 
force for all Members except those which, before it comes 
into force, make a declaration that they do not accept the 
amendment. The Assembly may by a two-thirds majority 
vote determine at the time of its adoption that an amend- 
ment is of such a nature that any Member which has made 
such a declaration and which does not accept the amend- 
ment within a period of twelve months after the amend- 
ment comes into force shall, upon the expiration of this 
period, cease to be a party to the Convention. 

Article 53 

Any amendment adopted under Article 52 shall be de- 
posited with the Secretary-General of the United Nations, 
who will immediately forward a copy of the amendment 
to all Members. 

Article 54 

A declaration or acceptance under Article 52 shall be 
made by the communication of an instrument to the Sec- 
retary-General for deposit with the Secretary-General of 
the United Nations. The Secretary-General will notify 
Members of the receipt of any such instrument and of the 
date when the amendment enters into force. 

PART XV 
Interpretation 

Article 55 

Any question or dispute concerning the interpretation 
or application of the Convention shall be referred for set- 

503 



tlement to the Assembly, or shall be settled in such other 
manner as the parties to the dispute agree. Nothing in 
this Article shall preclude the Council or the Maritime 
Safety Committee from settling any such question or 
dispute that may arise during the exercise of their 
functions. 

Article 56 

Any legal question which cannot be settled as provided 
in Article 55 shall be referred by tlie Organization to the 
International Court of Justice for an advisory opinion in 
accordance with Article 96 of the Charter of the United 
Nations. 

PART XVI 
Miscellaneous Provisions 

Article 57. Signature and Acceptance 

Subject to the provisions of Part III the present Con- 
vention shall remain open for signature or acceptance 
and States may become parties to the Convention by : 

(a) Signature without reservation as to acceptance; 
(6) Signature subject to acceptance followed by 
acceptance ; or 
(c) Acceptance. 

Acceptance shall be effected by the deposit of an instru- 
ment with the Secretary-General of the United Nations. 

Article 58. Territories 

(a) Members may malce a declaration at any time that 
their participation in the Convention includes all or a 
group or a single one of the territories for whose interna- 
tional relations they are responsible. 

(6) The Convention does not apply to territories for 
whose international relations Members are responsible 
unless a declaration to that effect has been made on their 
behalf under the provisions of paragraph (o) of this 
Article. 

(c) A declaration made under paragraph (a) of this 
Article shall be communicated to the Secretary-General 
of the United Nations and a copy of it will be forwarded 
by him to all States invited to the United Nations Mari- 
time Conference and to such other States as may have 
become Members. 

(d) In cases where under a trusteeship agreement the 
United Nations is the administering authority, the United 
Nations may accept the Convention on behalf of one, sev- 
eral, or all of the trust territories in accordance with 
the procedure set forth in Article 57. 

Article 59. Withdrawal 

(a) Any Member may withdraw from the Organization 
by written notification given to the Secretary-General of 
the United Nations, who will immediately inform the 
other Members and the Secretary-General of the Organi- 
zation of such notification. Notification of withdrawal 
may be given at any time after the erpiration of twelve 
months from the date on which the Convention has come 
into force. The withdrawal shall take effect upon the ex- 
piration of twelve months from the date on which such 
written notification is received by the Secretary-General 
of the United Nations. 

(6) The application of the Convention to a territory 
or group of territories under Article 58 may at any time 
be terminated by written notification given to the Secre- 
tary-General of the United Nations by the Member re- 
sponsible for its international relations or, in the case 
of a trust territory of which the United Nations is the 
administering authority, by the United Nations. The 
Secretary-General of the United Nations will immediately 
Inform all Members and the Secretary-General of the 

504 



Organization of such notification. The notification shall 
take effect upon the expiration of twelve months from 
the date on which It is received by the Secretary-General 
of the United Nations. 

PART XVII 
Entry Into Force 

Article 60 

The present Convention shall enter into force on the 
date wlien 21 States of which 7 shall each have a total 
tonnage of not less than 1,000,000 gross tons of shipping, 
have become parties to the Convention in accordance with 
Article 57. 

Article 61 

The Secretary-General of the United Nations will in- 
form all States invited to the United Nations Maritime 
Conference and such other States as may have become 
Members, of the date when each State becomes party 
to the Convention, and also of the date on which the 
Convention enters into force. 

Article 62 

The present Convention, of wliich the English, French 
and Spanish texts are equally authentic, shall be deposited 
with the Secretary-General of the United Nations, who 
will transmit certified copies thereof to each of the States 
invited to the United Nations Maritime Conference and 
to such other States as may have become Members. 

Article 63 

The United Nations is authorized to effect registration 
of the Convention as soon as it comes into force. 

In witness whereof the undersigned being duly au- 
thorized by their respective Governments for that purpose 
have signed the present Convention. 

[List of countries follows.] 

APPENDIX I 

(Referred to in Article 17) 

Composition of the First Council 

In accordance with the principles set forth in Article 
17 the first Council shall be constituted as follows : 

(a) The six Members under Article 17 (a) being 

Greece Sweden 

Netherlands United Kingdom 

Norway United States 

(b) The six Members under Article 17 (b) being 

Arsentina Canada 

Australia Prance 

Belgium India 

(c) Two Members to be elected by the Assembly under 
Article 17 (c) from a panel nominated by tlie six Mem- 
bers named in paragraph (a) of this Appendix. 

(d) Two Members elected by the Assembly under Arti- 
cle 17 (d) from among the Members having a substantial 
interest in international seaborne trade. 

APPENDIX II 

(Referred to in Article 51) 

Legal Capacity, Privileges and Immunities 

The following provisions on legal capacity, privileges 
and immunities shall be applied by Members to, or in 
connection with, the Organization pending their accession 

Department of State Bulletin 



to the General Convention on Privileges and Immunities 
of Specialized Agencies in respect of the Organization. 

Section 1. The Organization shall enjoy in the territory 
of eacli of its Members sucli legal capacity as is necessary 
for the fulfilment of its purposes and the exercise of its 
functions. 

Section 2. {a) The Organization shall enjoy in the 
territory of each of its Members such privileges and im- 
munities as are necessai-y for tlie fulfilment of its pur- 
poses and the exercise of its functions. 



(6) Representatives of Members including alternates 
and advisers, and officials and employees of the Organiza- 
tion shall similarly enjoy such privileges and immunities 
as are necessary for tlie independent exercise of their 
functions in connection witli the Organization. 

Section 3. In applying the provisions of Sections 1 and 
2 of this Appendix, the Members shall take into account 
as far as possible the standard clauses of the General 
Convention on the Privileges and Immunities of the 
Specialized Agencies. 



Annexes of the Final Act of the United Nations Maritime Conference 



ANNEX A 

United Nations Maritime Conference 

A Resoldtion on Estabushment of the Prepabatoby 
Committee of the Interooveenmental Makitime 
Consultative Organization 

The United Nations Maritime Conference convened on 
19 February 104S in Geneva by the Economic and Social 
Council of the United Nations ; 

Having agreed that an international organization to 
be known as the Intergovernmental Maritime Consultative 
Organization shall be established, and 

Having agreed upon a Convention for the Organization, 

Heretjy resolves that a Preparatory Committee sliould 
be established. 

And resolves, further, that: 

1. The Preparatory Committee of the Intergovernmental 
Maritime Consultative Organization shall consist of repre- 
sentatives of the following twelve States : Argentine, Aus- 
tralia, Belgium, Canada, France, Greece, India, Nether- 
lands, Norway, Sweden, United Kingdom, and United 
States of America. 

2. The functions of the Preparatory Committee shall be : 

(a) to convene the first session of the Assembly of the 
Intergovernmental Maritime Consultative Organization 
witliin three montlis from the date on which the Conven- 
tion of the Organization comes into force ; 

(b) to prepare and submit to the Governments repre- 
sented at the United Nations Maritime Conference, and 
to any other Governments which have signed or accepted 
the Convention, at least six weeks before the first session 
of the Assembly of the Organization, the provisional 
agenda for that session and necessary documents and rec- 
ommendations relating thereto, including : 

(i) proposals for the implementation of the functions 
of the Organization and a budget for the first two years 
of the Organization, 

(ii) draft rules of procedure, 

(iii) draft financial and staff regulations; 

(c) to suggest a scale of contributions by members to 
the budget of the Organization ; 

(d) to prepare a draft annex to the General Convention 
on the Privileges and Immunities of the Specialized 
Agencies in accordance with Part B of the Resolution 
adopted by the General Assembly of the United Nations 
on 21 November 1947 relating to this subject ; 

(e) to enter into negotiations with tlie United Nations 
with a view to the preparation of an agreement as con- 
templated in Article 57 of the Charter of the United Na- 
tions and in Article 45 of tlie Convention, using as a basis 
the draft agreement approved by the United Nations 
Maritime Conference. 



' The text of the final act and the annexes are included 
in U.N. doc. E/Conf ./4/62 of Mar. 6, 1948. 

April 78, 7948 



In carrying out the functions of this section due con- 
sideration shall be given to the deliberations and decisions 
of the United Nations Maritime Conference. 

3. Tlie first meeting of the Preparatory Committee shall 
be held in Geneva immediately after the conclusion of 
this Conference. 

4. The Preparatory Committee shall elect a Chairman 
and adopt its own Rules of Procedure. 

5. The expenses of the Preparatory Committee other 
than those of the Members of the Committee shall be met 
from funds which Governments may advance to the Com- 
mittee or from funds which may be loaned by the United 
Nations. The Preparatory Committee shall explore the 
feasibility of obtaining a loan from United Nations and, 
if mutually acceptable, may enter into a loan agreement. 
The obligation under any such loan would be considered 
by the Governments represented at the Conference as a 
first claim for repayment by the Intergovernmental Mari- 
time Consultative Organization within the first two years 
of its existence. In the event of advances of funds to 
the Preparatory Committee from Governments, such ad- 
vances may be set off against the contributions of the Gov- 
ernments concerned to the Organization. 

6. The Preparatory Committee may enter into agree- 
ment with the Secretary-General of the United Nations 
concerning the possible provision of personnel and other 
secretarial services under mutually satisfactory arrange- 
ments. 

7. The Preparatory Committee shall cease to exist upon 
resolution of the First Session of the Assembly of the 
Intergovernmental Maritime Consultative Organization. 

ANNEX B 
United Nations Maritime Conference 

A Draft Resolution on the Safety of Life at Sea 

Conference 

Whereas The United Nations Maritime Conference has 
approved a convention for the establishment of an Inter- 
governmental Maritime Consultative Organization whose 
scope includes matters relating to maritime safety, and 

Whereas The conference for the purpose of revising 
the Convention on Safety of Life at Sea of 1929, will be 
held in London in April 1948, and 

Whereas The matters to be considered by the Safety of 
Life at Sea Conference fall within tlie field of resiwnsi- 
bilities covered by the International Maritime Consulta- 
tive Organization Convention, 

The United Nations Maritime Conference 

Recovimrnds That the Safety of Life at Sea Conference 
examine the convention on the Intergovernmental Marl- 
time Consultative Organization with a view to drafting 
provisions in its final acts which will take into account 
the duties and functions relating to maritime safety which 
have been accorded to the Intergovernmental Maritime 
Consultative Organization. 



(Continued on page 523) 



505 



FIRST MEETING OF THE LEGAL COMMITTEE OF THE INTERNATIONAL 
CIVIL AVIATION ORGANIZATION 

by G. Nathan Calkins, Jr. 



No better place could have been found for the 
first meeting of the Legal Committee of the Inter- 
national Civil Aviation Organization than the city 
of Brussels in early September. This ancient city, 
combining as it does the charm of the old world 
with the modern approach of the new, lent just the 
right atmosijhere for substantial accomplishment. 
Every representative of the 29 countries taking 
part in the September meeting will long remember 
with warmth the kindness and attention which 
were shown the delegates by our Belgian hosts. 

Although this was the first meeting of the Icao 
Legal Committee, an organization had existed for 
many years known as the Citeja ^ which had been 
charged with the development of private interna- 
tional air law, a function now assumed by the 
Legal Committee. Perhaps the most famous 
achievement of the Citeja is the convention, signed 
at Warsaw in 1929, dealing with the limitation of 
liability of international air carriei's to passengers 
and shippers. 

The Citeja, however, was not part of, nor di- 
rectly connected with, any international technical 
aviation organization, and after the Chicago con- 
ference of 1944 it was felt by many member states 
that this organizational separation of the Citeja 
from IcAO was not conducive to the most rapid at- 
tainment of practical results. It was, therefore, 
the desire of the various states comprising Icao 
to bring into that organization the Citeja work, 
with the intention of combining the benefits which 
the Citeja meetings had offered with the broader 
program of the Legal Committee of Icao, which 
will deal with public as well as private interna- 
tional air law problems. This merger was accom- 
plished in effect by the adoption of a resolution by 
the First Assembly of Icao in May 1947 creating 
the new Legal Committee and the allied resolution 
of dissolution adopted by the Citeja. 

Prior to the assembly resolution there had been 
much discussion in United States Government 



' ConiitS Internationale Technique d'Experts Juridiques 
Afiriens, or International Technical Committee of Aerial 
Legal Experts. 

506 



circles, and presumably in government circles 
abroad, as to the relationship of the proposed Le- 
gal Committee to the International Civil Aviation 
Organization. Possible models were the Air 
Transport Committee and Air Navigation Com- 
mittee, which had been functioning for more than 
a year under the Interim Council of the Provi- 
sional Civil Aviation Organization established 
under the terms of the Interim Agreement on In- 
ternational Civil Aviation, drawn up at Chicago 
in 1944. These committees had met in Montreal 
over extended periods during the year 1946-47, 
and the product of their labors was subject to 
Council review, criticism, and change. 

Among the lawyers who had strongly supported 
the incorporation of the Citeja into Icao, consid- 
erable doubt existed as to the wisdom of following 
the example established by the Air Navigation and 
the Air Transport Committees. Some authorities 
interested in the organizational setup of the Coun- 
cil of Icao, however, were strongly of the opinion 
that the Legal Committee of Icao should be under 
the jurisdiction of the Council to the same extent 
as the Air Navigation and Air Transport Commit- 
tees, and it may become necessary for an Assembly 
of Icao to clarify the matter further. In the view 
of a large group of the lawyers, the situation of the 
Legal Committee appeared to differ fundamen- 
tally from that of the other two committees. Pri- 
marily, the representation of the various countries 
on the Legal Committee was basically unlike that 
of the technical committees, since many of the 
representatives of the Legal Committee (like the 
Citeja before it) are likely to be private practi- 
tioners, judges, or teachers actively engaged in 
pursuits unconnected with government. These 
men can spare only a limited amount of time from 
their private endeavors, and it would not be pos- 
sible to adopt the principle of extended committee 
sessions, which, it is believed, would logically re- 
sult from close supervision by the Council, with- 
out changing the basic composition of the Legal 
Committee from that of Citeja and employing 
government lawyers exclusively, whose time would 
be completely at the disposition of their govern- 

Deparfmenf of State Bulletin 



merits. Nations who could afford sending special- 
ists to one or two international conferences a year 
could not afford to hire similar talent on a perma- 
nent basis. It was, therefore, believed that such 
a change would materially weaken the Legal Com- 
mittee and diminish the possibility of obtaining 
wide-spread adoption of new conventions on pri- 
vate air law. 

On the other hand, it was recogi\ized that the 
committee, which is to depend upon the Organi- 
zation for its secretariat and other "housekeeping" 
aid, could not be wholly independent and meet 
when and where it chose. Such independence 
would necessarily lead to administrative chaos. It 
was therefore fully recognized that the time and 
place of meetings of the committee would have 
to be subject to the veto power of the Council so 
that the business of the Organization could pro- 
ceed in an orderly manner. Furthermore, if the 
advantages of coordination and close liaison, 
which the incorporation of the Citeja activities 
into IcAO was designed to bring about, were to be 
obtained, it would be necessary for the Council to 
have, if not control, at least a strong guiding in- 
fluence on the work program of the Legal 
Committee. 

The resolution of the First Assembly of Icao 
which brought the Legal Committee into being 
also incorporated its constitution. A further reso- 
lution prescribed the procedure to be followed for 
approval of draft conventions. Neither the con- 
stitution nor the draft convention resolution 



' The pertinent provisions of the constitution and reso- 
lution may be summarized as follows: 

"I. The Legal Committee (hereinafter called 'the Com- 
mittee') is a permanent Committee of the Organization 
constituted by the Assembly. 

"II. The objects of the Committee shall be : 

"(a) to study and prepare draft conventions in con- 
nection with international air law with a view to their 
adoption by the greatest possible number of States ; 

"(6) to provide, if so requested, by or through the 
Council or the Assembly, advice on legal matters of special 
Importance to the Organization, including public and pri- 
vate air law and the interpretation and amendment of 
the Convention ; 

"(c) to collaborate with other international organiza- 
tions charged with the unification and codification of inter- 
national law." 

"IV. Every draft convention (and report thereon) pre- 
pared by the Committee in exercise of its functions under 
paragraph II (a) shall be transmitted to the Contracting 
States through the Council. They may also be trans- 
mitted to other international organizations concerned. 
Advice and reports concerning matters referred to in para- 
graph II (6) shall be transmitted to the body of the Or- 
ganization seeking advice." 

"1. That any final draft convention approved by the 
Legal Committee of the Organization shall be transmitted 
as provided by the Constitution of that Committee, to the 
Contracting States and to such other States and Inter- 

April 18, 7948 



settled the relationship of the Legal Committee to 
the Council and other agencies of the Organiza- 
tion but they did enumerate the objectives of the 
committee and the manner in which draft conven- 
tions should be processed.^ 

It has been necessary to go into a considerable 
amount of background detail in order to present 
the picture of the organizational problems which 
confronted the Legal Committee at its first meet- 
ing. Although the question of the relationship 
of the Legal Committee to the Council and the 
Organization was directly raised only once," the 
members of the Legal Committee were fully aware 
of the problem. While the rules of procedure, as 
drawn up by the Legal Committee, do not com- 
pletely solve the problem in theory, it is believed 
they represent an eminently fair and workable 
compromise solution. 

Generally, the rules do not depart markedly 
from the usual organizational rules for any work- 
ing group. The membership of the Committee is 
comprised of individuals rather than member 
states, as is the case with the Air Transport and 
Air Navigation Committees, and each such indi- 
vidual must be a legal expert designated by his 
government. Each government may designate as 
many such experts as it chooses. On the other 
hand, no individual can represent more than one 
contracting state. Although the membership is 
composed of individuals, the voting is by coun- 
tries, each country having one vote. 

national organizations as may be determined by the 
Council ; 

"2. That any such draft convention shall either (a) be 
placed upon the agenda of the first annual meeting of the 
Assembly of the Organization convened after the ex- 
piration of a period of not less than four months following 
the transmission of the draft convention as provided in 
paragraph 1, or (6), in special circumstances, be sub- 
mitted to an extraordinary meeting of the Assembly or 
a conference of Contracting States convened for that pur- 
pose by the Organization ; 

"3. That in matters relating to international air law 
Non-contracting States and international organizations 
shall be invited to participate in meetings of the Assembly 
or any conference to the greatest extent consistent with 
the general policy of the Organization ; 

"4. That, if agreement is reached, the Assembly or 
conference shall approve the draft and thereafter the 
Convention shall be open for signature and ratification 
or adherence by Contracting States and for adherence by 
such other States as may be determined by the Assembly 
or conference ; 

"5. That, in the meetings of the Legal Committee at 
which a draft convention is considered and approved. Non- 
contracting States and international organizations, as may 
be determined by the Council, shall have the right to par- 
ticipate (without the right to vote) to the full extent 
provided in the Rules of Procedure of the Legal Com- 
mittee." 

"The United States Delegation announced that the 
United States Government would seek to have the ques- 
tion of the relationship of the Legal Committee to the 
Council and the Organization placed on the agenda of the 
Second Assembly. 

507 



Provision is made for observers to take part 
in the deliberations of the committee, but without 
the right to vote and with a rather unique pro- 
vision relating to presentation of motions, resolu- 
tions, and amendments. Observers will have such 
rights if their motion, resolution, or amendment 
is seconded by two members of different contract- 
ing states. 

The officers of the committee are to be a chair- 
man and one or two vice chairmen, each of whom 
is to be elected at the annual session of the com- 
mittee. No such officer can be elected to hold the 
same position for two consecutive terms, although 
a former vice chairman may be elected chairman 
and vice versa. Since the committee relies entirely 
upon the secretariat of the Organization for its 
secretarial help and the management of its meet- 
ings, it is provided that the members of the secre- 
tariat of the Organization, who have been desig- 
nated for that purpose by the Secretary General of 
the Organization, shall constitute the secretariat 
of the committee and of its subcommittees. 

The question of the time at which the annual 
meeting is to be held by the committee gave rise 
to considerable discussion. It was apparent to 
the conferees at Brussels that an annual meeting 
held at the same time and place as the annual 
Assembly of the Organization would be subject to 
some disadvantages. In the first place, for many 
committee members there would be the necessity 
for participating in the more general work of the 
Organization rather than in the specialized work 
of the committee. This would mean that com- 
mittee projects would not advance so rapidly in a 
meeting held in conjunction with the Assembly as 
in one which was entirely separate. 

Secondly, there was the undesirable feature of 
nonconformity with the other committees of Icao, 
which are not in session during an Assembly. De- 
spite these disadvantages there appeared to be 
more to be gained from the point of view of com- 
mittee organization and functioning, by holding 
the annual meeting in conjunction with the As- 
sembly than there was to be lost. It was consid- 
ered that the annual Assembly offered the best 
opportunity for obtaining representation by the 
greatest number of states. Moreover, by com- 
mencing its sessions three or four days earlier than 
the Assembly sessions and possibly continuing 
them after the Assembly ended, some committee 
work could be accomplished. 

Most of the representatives to the Legal Com- 
mittee would be serving as representatives for 
their respective countries on either the Legal Com- 
mission of the Assembly or on some other commis- 
sion of the Assembly. However, there might be 
times during Assembly sessions when the work 
of the commission would not be so severe as to pre- 
vent the Legal Committee from meeting. 

As a result of these considerations, it was de- 
cided to hold the formal annual meeting of the 

508 



committee in conjunction with the annual session 
of the Assembly of the Organization. However, it 
was fully recognized that other sessions of the 
committee would probably be requisite, and, to 
this end, provision is made for additional sessioris 
to be held as determined by the committee. This 
determination, however, is subject to the approval 
of the Council of the Organization as to its time 
and place. A resolution of the Legal Committee 
adopted at Brussels points out that the month of 
September is generally the most convenient for the 
committee members. 

Recognizing the special relationship of the 
Legal Committee to the Council in connection with 
requests for legal advice on urgent matters as set 
forth in paragraph II(&) of the committee's con- 
stitution, the rules of procedure also provide that 
special sessions must be called by the chairman of 
the committee to provide such advice when so re- 
quested by the Council. 

The rules of procedure adopted by the Legal 
Committee include the usual regulations with 
respect to the establishment of permanent or tem- 
porary subcommittees, the membership of such 
conmiittees and the establishment of special sub- 
committees in off-sessions of the committee. The 
members of the subcommittees are appointed to 
serve until the next annual session of the Legal 
Committee. The chairmen of the subcommittees 
are to be chosen by the subcommittees themselves. 
Unlike the case of the full committee, the officers 
of subcommittees may succeed themselves, and 
there is no limitation on this right. The meetings 
of the subcommittees are to be held after consulta- 
tion, so far as practical, with the chairman of the 
Legal Committee. However, if the proposed meet- 
ing involves any expense to the Organization as 
such, it is to be subject to the approval of the 
Council. 

It is with respect to the establishment and main- 
tenance of its work program that the Legal Com- 
mittee has placed itself most fully under the juris- 
diction of the Council. By article X the program 
of work must include any subject proposed by the 
Assembly, by the Council, or by the comniittee 
itself. It may also include other subjects proposed 
by individual contracting states or noncontracting 
states and international organizations which have 
been invited to participate in deliberations of the 
committee. The subjects for committee considera- 
tion are to be placed on its agenda in an order of 
priority, which is to be established so far as is 
practicable in accordance with any recommenda- 
tion of the Assembly or the Council of the Organi- 
zation. While the language of this provision is 
phrased in terms of independent cooperation, it 
is certain that any subject urgently recommended 
by the Council to be placed on the agenda will be 
so placed and considered by the committee. Again, 
in article XII, the committee or the subcommittee 
charged with a subject is to determine the most 

Department of Sfafe Bulletin 



appropriate procedure for dealing with the sub- 
ject at liand, taking into account as far as is 
practicable any time limits which may be rec- 
ommended by the Assembly or the Council of the 
Organization. 

Another indication of tlie subordination of the 
committee to the desires of the Council is the pro- 
vision contained in article XIV relating to the 
handling of special requests under paragraph 
11(6) of the committee constitution. These spe- 
cial requests, if referred to the committee while it 
is in session, must be handled at that time. Spe- 
cial requests made while the committee is not in 
session must be referred by the chairman to any 
existing subcommittee dealing with the general 
subject matter or, if no sucli subcommittee is in 
existence, then to a special committee named in 
accordance with article VIII for report to the next 
session of the committee. 

There is one respect, however, in which the Legal 
Committee did not subordinate itself in its rules 
to the Council. That relates to the question of 
special advice requested by the Assembly. Here 
the rules provide that the opinion or document re- 
quested by the Assembly shall be transmitted di- 
rectly to that body rather than through the Coun- 
cil. However, as a means of keeping the Council 
informed and of permitting the Council to make 
recommendations for possible changes in the docu- 
ments submitted by the Legal Committee, provi- 
sion has been made for the transmission to the 
Council of a copy of such document at the same 
time it is transmitted to the Assembly. 

As a tribute to the working methods of the 
CiTEjA, the rules of procedure provide, in addi- 
tion to subcommittees, for the appointment of 
"rapporteurs" when necessary and desirable. 

Tlie foregoing comments indicate generally the 
outline of the rules of procedure adopted by the 
Legal Committee at Brussels.* Although they go 
a long way toward placing the committee at the 
disposition of the Council, it is apparent from the 
rules that a certain amount of independence has 
been provided for. To the extent that compro- 
mise between two incompatible positions is possi- 
ble in respect to the working of the Legal Commit- 
tee these rules represent such a compromise. It 
is believed that this is a workable solution and 
will foster the development of conventions on pri- 
vate international air law better than either the 
plan of complete independence followed by Citeja 
on the one hand or the establishment of a full-time 
committee of the Council on the other. 

Earlier in this article mention was made of the 
outstanding accomplishment of the Legal Commit- 
tee in the preparation of a draft convention on the 
international recognition of rights in aircraft. 
This subject had been under consideration by the 
Citeja since 1931. The question with which the 
draft deals is perhaps one of the most highly tech- 
nical and involved that has been studied by an 

April 78, 1948 



international air law committee to date, but the 
very reasons which make the subject so complex 
are tlie ones which make such a convention neces- 
sary. At the present time the law on conflicts of 
law of the various countries relating to the recog- 
nition of a status in an aircraft of foreign registry 
is highly divergent. Some countries recognize 
that a security interest validly created under the 
law of the state of registry of the aircraft and 
constituting a lien or charge on the aircraft is a 
valid charge. Other countries do not recognize 
that any such status can be created in aircraft, 
due to the fact that they are considered "mov- 
ables". Security interests in movables generally 
are considered contrary to the public policy of 
many countries following the Roman law. Be- 
tween these two points of view there are possibili- 
ties of many variations, with the result that inter- 
national financing of aircraft has been rendered 
difficult and uncertain. 

Since the Chicago Aviation Conference was 
held in 1944, the United States Government has 
been one of the leaders in the attempt to reconcile 
the differences and conflicting points of view of the 
various states and to come to an agreement on a 
workable convention. It was believed that the 
advantages which would accrue to American 
aviation interests through such a convention would 
be twofold: (1) it would permit United States 
airlines operating internationally to obtain credit 
and financing for the purchase of new equipment ; 
and (2) it would facilitate the financing by foreign 
operators of American equipment by opening the 
way for them to obtain credits from private 
sources. 

However, the convention in order to be workable 
would have to provide a reasonable measure of se- 
curity for those who advance the necessary capital. 
Without such reasonable security, it is probable 
that sufficient money to finance fleets of aircraft 
would be difficult to obtain. A convention which 
did not recognize this problem and meet it real- 
istically would be of little practical value. 

Basically it appeared that a convention must 
provide for six principal measures of protection 
for secured interests in aircraft. In the first place, 
no liens of any substantial amount should be per- 
mitted to be placed ahead of the secured lender's 
claim after his claim has been duly recorded. Tliis 
means in effect that all hidden privileges should 
be reduced to an absolute minimum and that con- 
tracting countries must agree not to place other 
claims such as tax claims ahead of the secured 
interest on foreign aircraft. 

The second requisite for a valid convention re- 
lates to what is known as "fleet-mortgage doc- 
trine". That doctrine provides in brief for the 

* The rules of procedure as adopted at Brussels may be 
found in appendix "A" (Icao doc. 4607-LC/43) to the 
report of the Legal Committee to the Second Assembly of 
the International Civil Aviation Organization (Icao doc. 
462&-LC/65). 

509 



joint liability of each aircraft in the fleet for the 
entire loan made to the operating airline. Each 
aircraft of the fleet being financed therefore con- 
stitutes security for the entire amount of the loan 
rather than merely for the proportionate part of 
the debt attributable to it. A rough analogy from 
everyday business life is the joint liability of co- 
signers of a note. Each co-signer is liable for the 
face amount of the note, although obviously the 
lender cannot collect from all co-signers together 
more tlian the amount due. The same is true of 
the fleet mortgage. Each individual airplane is 
answerable for the total amount of the loan on the 
entire fleet to the extent of the unpaid balance. 

The importance of the fleet-mortgage principle 
to the financing of international airlines cannot be 
overemphasized. Conservative financial interests 
are extremely reluctant to lend large sums of 
money secured by individual aircraft because of 
the operational hazards and the obsolescence fac- 
tors involved in aircraft generally and because of 
the limited market for single luxury-type trans- 
port airplanes. If a fleet of aircraft is made se- 
curity for the loan, however, the lender will be 
in a better position to be paid in full. In case of 
insolvency or bankruptcy of the airline, the air- 
craft may be disposed of either singly or as a 
fleet, whichever will bring the most money. If 
one of the aircraft is lost at sea or in foreign ter- 
ritory, the remaining planes will still constitute 
security for the loan. These factors tend to over- 
come the obsolescence disadvantages, and conse- 
quently, under the fleet-mortgage doctrine, bank- 
ers have been willing to lend up to 80 percent of 
the purchase price on fleets, whereas the amounts 
they have been willing to lend on individual air- 
craft have been considerably less. 

Since most airlines do not have the ready cash 
available to pay for more than 20 percent of the 
original cost of a fleet of aircraft at the time of 
acquisition, the importance of this doctrine be- 
comes apparent. In many cases its recognition 
would mean the difference between obtaining a 
fleet of aircraft or doing without. 

A third desirable feature of any international 
convention dealing with rights in aircraft is the 
elimination of what the French term la jnirge. 
This doctrine, in brief, is that upon the judicial sale 
of an aircraft, the purchaser at the sale will re- 
ceive an unencumbered title, despite the fact that 
the sale may have been made at the behest of a 
junior lienor or even a general creditor. The 
purchaser would not be required to assume prior 
secured interests or to take the aircraft subject to 
such liens, and the prior security holder would 
have to look to the proceeds of the sale for re- 
payment. 

Ordinarily under the "purge" doctrine, if the 
chattel is encumbered by a lien prior to that of 
the attaching creditor, the holder of the prior lien 
will be paid in full before the attaching creditor 

510 



is paid anything on his claim. However, where 
the amount of the first secured lien is relatively 
high, the sale price may not be suflBcient to cover 
it, with the result that the first lien holder would 
neither be paid in full nor continue to hold his 
security. In order to protect his interests in such 
cases, the holder of a substantial first lien might 
well be forced to participate at the sale and bid 
in the property. When the sale is held in a for- 
eign country, the burden on the secured creditor 
may become substantial, and the cost of protect- 
ing the lien out of all proportion to the income 
he would derive from interest on his loan. To 
eliminate this undesirable situation, the American 
position was that the convention should provide 
for all judicial sales to be made subject to prior 
recorded charges. 

There were also two corollary advantages to be 
obtained by the elimination of the "purge"' from 
the convention. It was recognized that the in- 
ability to vest an unencumbered title in a pur- 
chaser at a judicial sale would have a strong 
dampening effect on foreign attachments of air- 
line aircraft. Since even a secured lender relies 
in large part on the general credit of the airline 
as a going concern, the disruption of its operating 
schedules through foreign attachments would con- 
stitute a real menace to the certainty of repay- 
ment. A flat prohibition against foreign attach- 
ment by junior lienors might possibly have been 
the most satisfactory solution, but if that were 
not possible, the next best solution is the elimina- 
tion of the "purge" doctrine. 

A fourth requisite for a workable convention 
is that all presently known security devices validly 
created under the law of the aircraft's registry be 
recognized and protected abroad under the con- 
vention. Such devices fall into two basic cate- 
gories, first, the true mortgage type, where the 
title to the aircraft is in the airline, the bank 
holding merely a mortgage or a lien interest; and, 
secondly, the title type, where the bank holds the 
property in the airplane as title-holder, leasing 
or permitting the airline to use and operate the 
airplane so long as installments on its loan are 
being repaid. 

The desirability of permitting the use of all 
types of security devices and the flexibility which 
a provision of this nature would afford are fairly 
evident. In the past, banks have made a small 
number of loans to airlines, utilizing a special 
form of the title-type security known as the 
"equipment trust". In the absence of settled in- 
ternational law on the subject, this device has the 
advantage of affording maximum protection of 
the bank's security interest, since the ownership 
of the aircraft is in the bank, and since rights 
of ownership are generally recognized abroad. 
However, there are certain disabilities to this type 
of financing. For example, the right of the air- 
line to continue to operate the aircraft during the 

Department of State Bulletin 



leasehold period and to obtain the aircraft at the 
end of the term is not one which is certain to be 
recojjiiized abroad. Thus, conjuring up a situa- 
tion which admittedly would not arise with great 
frequency, in the event of financial difficulties of 
the bank, the borrowing airline would be at the 
mercy of creditors of the bank who might attach 
the aircraft abroad as an asset belonging to the 
bank. Looking at it again from the bank's point 
of view, the equipment trust is also subject to cer- 
tain disabilities, for in some countries operational 
risks fall on the title-holder of the airplane as 
well as on the operator. In such instances the 
bank would assume a distinct risk of liability for 
catastrophes caused local inhabitants by an air- 
plane it had financed. It may well be that be- 
cause of risks of this nature, banks may prefer 
to utilize the straight mortgage type of financing, 
once that device is generally recognized abroad. 
However, during the transition period of ratifica- 
tion of the convention, it may be necessary to use 
equipment trust financing, so as to obtain the 
limited protection in nonmember states. The fore- 
going considerations indicate that the utmost 
flexibility in financing devices is highly desirable. 

The fifth major point believed necessary to be 
covered by the convention in order to afford a 
workable basis for international financing involves 
spare parts. It is obvious that there would be 
little attraction in lending money on spare parts 
to be located in foreign countries unless the lenders 
were assured that their security interest was ade- 
quately protected. In certain past financing ar- 
rangements, where the fleet of aircraft purchased 
was not large, the value of spare parts has exceeded 
more than 25 percent of the total of the financing 
cost. Since spare parts must be procured at the 
time of the purchase of the aircraft they are to 
serve, the ready cash with which to pay for the 
parts at that time becomes a matter of extreme 
importance. Indeed, the ability to obtain cash 
for spare parts might be the determining factor 
in whether or not the financing could be arranged 
and the new fleet purchased. 

The sixth requirement for a workable conven- 
tion is that the machinery for recording liens both 
on aircraft and spare parts must be simple. If, 
in order to perfect a lien, it is necessary to trans- 
late long documents and have them filed at numer- 
ous foi-eign points, the clerical and professional 
work involved may well be prohibitive. The 
American objective, therefore, was to obtain some 
system whereby recordation of security devices 
covering both airplanes and spare parts could be 
effected with the minimum of difficulty and legal 
help. 

While the foregoing requisites for conservative 
financing of aircraft through secured loans are 
possible of achievement within the framework of 
United States law, representatives of foreign coun- 
tries were not at first inclined to view them with 

April 78, 1948 



favor. Concepts which are familiar to American 
lawyers ancl bankers were completely unfamiliar 
to foreign lawyers who appear to have an aver- 
sion to the detailed corporate indentures so com- 
mon in American financing. 

The principal objection which was voiced by 
the lawyers of other nations was to the fleet-mort- 
gage principle. This objection appeared to stem 
from a fear that persons residing in their countries 
and injured by a foreign airplane would have no 
recourse against the assets of the airline concerned 
if recognition were given to the prior liens of se- 
cured creditors. Since under the fleet-mortgage 
principle each aircraft is burdened with an en- 
cumbrance many times the value of the aircraft, 
the effect is to separate the risk of the operation 
from the capital which gives it birth. For this 
reason, the delegate of Norway at the meeting of 
the First Assembly of Icao in May of 1947 strongly 
objected to the recognition of the fleet-mortgage 
principle beyond 80 percent of an amount propor- 
tionate to the total amount loaned as the weight 
of the aircraft bears to the total weight of the fleet. 
By this "apportionment", provision would be made 
for the involuntary creditors at home. Obviously, 
the apportionment doctrine eliminated much of 
the value of the fleet mortgage as a security device. 

The foreign lawyers also objected to the recog- 
nition of a variety of types of security devices, 
many of which were completely unknown to them. 
These, of course, included the equipment trust, the 
conditional sale, and the hire-purchase agreement. 
Such devices in many countries, even though they 
may be known, are not enforced because they are 
deemed to be contrary to the general public policy 
of the country. Even mortgages, which appear 
to be more generously treated than other financing 
methods in this respect, are not recognized in many 
countries abroad. 

In regard to spare parts, there had been almost 
unanimous objection to the doctrine that such parts 
should receive protection different from that af- 
forded other chattels by the domestic law of the 
territory where they were kept. This position 
stems from the traditional view that chattels main- 
tained in the territory of a country are subject to 
the protection of the laws of that country and 
consequently should be governed entirely by those 
laws. Many foreign countries do not recognize 
mortgages or other liens on movable chattels lo- 
cated on their soil. 

Prior to the Brussels meeting of the Legal 
Conunittee of Icao, the tremendous gulf which 
lay between the point of view of many foreign 
lawyers and that of the United States was evi- 
dent to all parties. Deep differences of national 
approach had to be resolved, old prejudices for- 
gotten, and new methods devised which would 
bring about substantial compromise and achieve- 
ment. It is obvious that some compromises 
would have to be made in the United States 

511 



position. The fears voiced by foreign represent- 
atives had their root in national commercial 
customs of far longer standing than ours, and 
even if that had not been so, it would hardly 
be possible to have lasting agreement on mat- 
ters which had been so highly controversial if 
the viewpoint of one country were the sole one 
represented. Consequently, in the draft conven- 
tion jjroposed by the Brussels meeting of the Legal 
Committee there are many compromises and no 
small number of legal novelties. 

The large majority of the Legal Committee was 
finally won over to the recognition of all types 
of security devices when these were presented in 
a form which separated them into tlieir various 
vital constituent parts. Thus when the proposal 
was made that each contracting state inidertake to 
recognize (1) rights of property in aircraft, (2) 
rights to acquire aircraft by purchase coupled with 
possession of the aircraft, (3) rights to the pos- 
session of aircraft under leases of six months or 
more, and (4) mortgages, hypothecs, and similar 
rights, the committee members perceived what was 
involved more clearly than they would have been 
able to do if the rights had been presented to them 
under the familiar names of conditional sale, 
equipment trust, hire-purchase agreement, and 
chattel mortgage. Since it is believed that these 
four categories of rights represent the constituent 
parts of every recognized security interest now 
known, the United States position would appear 
to be fully covered by the terms of article I. 

The draft convention is also substantially satis- 
factory in the treatment accorded the fleet mort- 
gage. As has been stated beforcj the basic ob- 
jection to the fleet-mortgage docti-me on the part 
of other countries was the fact that imder that 
doctrine the commercial risks of the enterprise are 
separated completely from the capital which sets 
it in motion. The effect of this separation may 
be to cause injustice to those involuntary creditors 
who had in no way intended to deal with the air- 
line. For the main part they will be victims of 
aircraft accidents or accidents involving surface 
vehicles operated by the airline concerned. Unless 
they have a right of recourse against the property 
of the airline or some equivalent thereof in their 
counti-y, it is very probable that they will not be 
able adequately to protect their interests. The 
American Delegation recognized the fairness of 
this point of view, and consequently no pains were 
sjjared to obtain a satisfactory compromise. 

With respect to contract or other voluntary 
creditors, the position appeared entirely different. 
Here the creditor has ample opportunity to judge 
the credit position of the airline prior _to enter- 
ing into negotiations and it was felt that this was 
a matter where in all justice the creditor should 
assume the risk. 

What is believed to be an eminently fair com- 
promise was finally worked out. No limitation 

512 



was provided on the undertaking of contracting 
states to recognize fleet mortgages in suits by 
contract or other "voluntary" claimants. Indeed, 
it was provided in article V, paragraph 4, that no 
judicial sale could be effected unless all charges 
having priority over the claim of the existing 
creditor are covered by the proceeds of the sale 
or assumed by the purchaser. This minimum-bid 
provision means in the case of a fleet mortgage that 
the bid must be equal to the entire outstanding 
liability on the fleet before the sale can be effected 
at all. An exception to this doctrine is made, 
however, in the case of the "involuntary" creditor. 

In article V, paragraph 5, if suit is brought 
by a jjerson injured by the operation of one of a 
fleet of aircraft, an amount no greater than 80 per- 
cent of the sale price of the aircraft taken in execu- 
tion may be claimed by the secured creditor unless 
there was adequate and effective insurance on the 
aircraft causing the damage. Each contracting 
state is at liberty to fix by law the minimum 
amount of insurance necessary to meet this pro- 
vision. However, in the absence of a special en- 
actment by that country, adequate insurance will 
be taken to mean insurance in the amount of the 
new purchase price of the aircraft which is seized. 

The result of this compromise should be to 
afford complete protection for the secured lender 
and at the same time guarantee a measure of pro- 
tection for involuntary creditors on domestic ter- 
ritory. It offers the distinct advantage of cer- 
tainty to the money lender for he can readily ob- 
tain a covenant from the airline to keep its aircraft 
insured to the minimimi extent required by the 
convention. So long as the required insurance is 
kept in effect the fleet mortgage is entirely safe, 
and the aircraft under it virtually beyond reach 
of foreign creditors. 

Again, in connection with the doctrine of purge, 
a distinct compromise was necessary. The posi- 
tion of the American Delegation urging the rejec- 
tion of the piirge and the adoption of the doctrine 
that all judicial sales be made subject to prior 
secured interests was not concurred in by the for- 
eign delegations. For the main part the abolition 
of the doctrine would completely change their na- 
tional laws in respect of one class of chattel, and 
it was universally felt by the foreign delegates 
that such unique treatment of aircraft could not 
be justified to their home legislatures. 

As a compromise, however, article V, paragraph 
4, previously referred to in connection with the 
fleet mortgage, was inserted ; it calls for a mini- 
mum bid equal to or better than the total amount 
of prior secured claims before the aircraft may be 
sold. This in effect accomplishes exactly the same 
thing that abolition of the doctrine of purge would 
accomplish so far as multiple-financed aircraft 
are concerned. In the case of aircraft secured by 
a fleet mortgage, it will be necessary for the pur- 
chaser of any one aircraft at a judicial sale to bid 

Deparfmenf of State Bulletin 



and pay a price equal to the total outstanding debt. 
Since that amount in most cases -will be many times 
the vahie of the aircraft attached, it is obvious 
that few such sales will take place. AVhile it is 
true that in the case of mortgages or other liens 
on single aircraft, the security holder is in a more 
disadvantageous position than he would be under 
the doctrine urged by the American Delegation, 
nevertheless, it is believed that the result will be 
substantially adequate. 

The subject of recognition of security rights in 
spare parts located in foreign countries also called 
for a substantial compromise. The position taken 
by the American Delegation was that spare parts 
should be treated in the same manner as aircraft, 
so far as the recognition and protection of se- 
curity interests are concerned. It was argued 
that there was no greater reason for affording a 
contract creditor recourse against spare parts than 
against the aircraft, and that the spare parts 
themselves would rarely if ever cause damage to a 
foreign claimant. No occasion could therefore 
arise where the public interest required such parts 
to be made available for attachment by local 
creditors. 

This argument, however, was not completely 
convincing to the other delegations. It was 
pointed out that there are various types of claims 
which, although contractual in nature, are tra- 
ditionally granted liens by operation of law, as for 
example, the claim of a landlord for arrears in 
rent. Employees are usually accorded prior liens 
against the goods of their employer. Such em- 
ployees in the large majority of cases would be 
natives of the country where the parts are located. 
Moreover, it is also possible that the spare parts 
themselves might cause damage. 

As a result, a compromise solution was finally 
reached applying the apportionment doctrine to 
spare parts. The machinery whereby this is set 
up is contained in article VIII of the proposed 
draft. It provides that the minimum bid for 
which the spare parts may be sold shall be two 
thirds of the value of the parts, as determined 
by experts appointed by the authority responsible 
for the sale. Upon their sale, the court (or other 
authority responsible for the sale) may refuse 
to recognize the claim of the secured creditor in 
an amount in excess of two thirds of the proceeds. 
As a consequence, the maximum security which 
a lender can count on as to spare parts located in 
a foreign jurisdiction would be two thirds of 
the current value of the parts. 

The draft convention is believed satisfactory 
with respect to the ease with which valid liens can 
be created. Recording in countries foreign to the 
registry of the aircraft is not necessary. In the 
case of spare parts a sign must be posted on the 
premises setting forth the fact that the spare 
parts are subject to a secured interest, the name 
and address of the holder of such interest, and 

April J 8, 1948 



the record where such interest is recorded. This 
obligation, however, should not prove to be an 
onerous burden. Further recording is not re- 
quired by the convention for the replacement of 
stocks of spare parts and this may be accom- 
plished without diminishing the security of the 
lender in the stockpile. 

In another connection the convention would ap- 
pear to be entirely satisfactory to the American 
position. Preferred claims as set forth in article 
III have been limited to compensation due for 
salvage of the aircraft and extraordinary expenses 
indispensable for preservation of the aircraft. It 
was the consensus of the committee that these 
expenses would never exceed relatively minor 
sums. 

In the treatment of priority claims a rather 
novel approach was included at the request of the 
United Kingdom Delegation. These claims were 
made subject to recording as ordinary secured 
claims upon the expiration of their priority at 
the end of three months. In this way the holder 
of a preferred claim may record his claim and 
enjoy the benefits of a secured creditor from the 
date of recordation. Of course, this would not 
mean that a claim so recorded would be prior to 
other secured claims previously recorded, but it 
would outrank all mortgages and other liens which 
were recorded subsequently. 

By article III, paragraph 7, the contracting 
states are enjoined from admitting or recognizing 
any right other than the priority rights set forth 
in article III which would displace recorded se- 
cured rights. In this connection it should be 
noted that the paragraph containing this pro- 
hibition was originally placed in article IV. Dur- 
ing the last day of the Conference, this paragraph 
was moved up into article III as paragraph 7 in 
order to avoid a cross reference between article IV 
and article III. The effect of this removal is 
greater than at first meets the eye, for under the 
terms of article IX the provisions of article III 
must be applied by contracting states to all air- 
craft, including domestic aircraft operating on 
home soil. 

The result of article III (7) , read in conjunction 
with article IX, is that a contracting state is pro- 
hibited from placing tax liens and other charges 
ahead of recorded mortgages, even though the 
aircraft stays at home and the secured creditor is 
a national and resident of such contracting state. 
There is nothing to indicate in the Conference 
proceeding that this result was intended, and it 
will be a simple matter to correct. It will be neces- 
sary to correct it, however, since it is understood 
that the constitutions of a number of countries 
prohibit the enactment of any law which deprives 
the state of its right to place tax liens ahead of 
all other charges with respect to domestic chattels. 
{Continued on page 523) 

513 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



Request for a Special Session of the General Assembly on Palestine' 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN 2 
U.S. Representative in the Security Council 



The time appears suitable to offer to the Security 
Council resolutions to carry out part II of the 
paper repi-esenting the views of four of the per- 
manent members (S/P.V.270, 19 March 1948, 
page 7), as follows:^ 

As a result of the consultations of the permanent 
members regarding the situation with respect to 
Palestine, they find and report that a continuation 
of the infiltration into Palestine, by land and by 
sea, of groups and persons with the purpose of 
taking part in violence would aggravate still fur- 
ther the situation, and recommend 

"(a) that the Security Council should make it 
clear to the parties and governments concerned 
that the Security Council is determined not to 
permit the existence of a threat to international 
peace in Palestine, and 

"(6) that the Security Council should take fur- 
ther action by all means available to it to bring 
about the immediate cessation of violence and the 
restoration of peace and order in Palestine." 

The statement made by the President of the 
United States on March 25 indicates the urgent 
necessity of exerting every effort in the Security 
Council to arrange a truce between the Jews and 
Arabs of Palestine. 

Such a truce should be based on two funda- 
mental considerations : 

First, it is absolutely essential that violence and 
bloodshed in Palestine cease. This is demanded 
by humanitarian considerations. We must pre- 



' U.N. doc. A/530, Apr. 7, 1948. Niite by the Secretary- 
General, actiuK unOer provisions of rules 7 and 9 of the 
rules of procedure of the General Assembly, has, by tele- 
gram dated Apr. 1, 1948, summoned the second special ses- 
sion of the Assembly to meet at Flushing Meadows, N.Y., 
on Apr. 10, 1948. Provisional agenda for the second special 
session of the General Assembly is contiiined in U.N. doc. 
A/531, Apr. 7, 1948. 

' Made on Mar. 30, 1948, in the Security Council and 
released to the press by the U.S. Mission to the United 
Nations on the same date. 

" U.N. doe. S/714, Apr. 7, 1948. 

'U.N. doc. S/704 of Mar. 30, 1948. Adopted unani- 
mously by the Security Council at its 277th meeting on 
Apr. 1, 1948. 

514 



vent anarchy. It is required to keep international 
jDeace. Cessation of hostilities is imperative. 

Second, both the Jews and Arabs of Palestine 
must be prepared to accept truce arrangements 
which would not prejudice the claims of either 
group. The truce should include suspension of 
political as well as military activity. 

My Government considers it essential that rep- 
resentatives of the Jewish Agency and of the Arab 
Higher Committee be called upon to state their 
views on the necessary arrangements for a truce. 
Such representatives should, of course, be fully 
authorized to enter into definitive truce arrange- 
ments with the Council. 

To provide for the immediate cessation of hos- 
tilities and the basis for a truce, Mr. President, I 
have submitted for the consideration of the Coun- 
cil the following resolution.* 
The Security Council, 

In the exercise of its primary responsibility for 
the maintenance of international peace and secu- 
rity, 

Notes the increasing violence and disorder in 
Palestine and believes that it is of the utmost ur- 
gency that an immediate truce be effected in 
Palestine ; 

Calls upoji the Jewish Agency for Palestine and 
the Arab Higher Committee to make representa- 
tives available to the Security Council for the pur- 
pose of arranging a truce between the Arab and 
Jewish communities of Palestine, and emphasizes 
the heavy responsibility which would fall upon any 
party failing to observe such a truce. 

Calls upon Arab and Jewish armed groups in 
Palestine to cease acts of violence immediately. 

It is the view of my Government that the im- 
mediate cessation of hostilities and the establish- 
ment of a truce in Palestine are the most urgent ob- 
jectives. We believe that the Council should also 
proceed as promptly as possible to the considera- 
tion of the additional conclusions and recommen- 
dations concerning Palestine. I alluded to these 
in my statement to the Council at its 271st meeting 
on Friday, March 19. 

Department of Stale Bulletin 



In this connection, we feel that the first step 
which should be taken by the Security Council is 
to request the Secretary-General to convoke a spe- 
cial session of the General Assembly. Accord- 
ingly I have been requested by my Government to 
submit for the consideration of the Comicil the 
following resolution : ° 
The Security Council, 

Having on 9 December 1947, received the reso- 
lution of the General Assembly concerning Pales- 
tine dated 29 November 1947 and 

Having taken note of the United Nations Pales- 
tine Commission's First and Second Monthly 
Progress Reports and First Special Report on the 
problem of security, and 

Having on 5 March 1948, called on the perma- 
nent members of the Council to consult, and 

Having taken note of the reports made concern- 
ing these consultations. 

Bequests the Secretary-General in accoi'dance 
with Article 20 of the United Nations Charter, to 
convoke a special session of the General Assembly 



THE UNITBD NATIONS AND SPECIAUZBD AGENCIES 

to consider further the question of the future 
government of Palestine. 

It will be noted that this resolution does not 
mention trusteeship. The United States adheres 
to the view I stated in the Security Council on 
March 19, and which was reaffirmed by the Secre- 
tary of State on March 20 and again by the Presi- 
dent of the United States on March 25, that a tem- 
porary trusteeship should be established to main- 
tain the peace. This trusteeship would be without 
prejudice to the character of the final political 
settlement in Palestine. We believe that a trustee- 
ship is essential to establish order, without which 
a peaceful solution of this problem cannot be found 
or put into effect. 

The exigencies of the time limits confronting 
the Security Council require prompt decision and 
issue of the call for a Special Session. This should 
not be delayed by debate over details of the tem- 
porary trusteeship. The United States is ready 
to offer and consider with other members of the 
Security Council proposals regarding such details 
while the necessary notice period is ruiming. 



Calling for a Truce in Palestine 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN • 
U.S. Representative in the Security Council 



Mr. President : I have only a few words to say. 
The pending matter is document S/704, that is to 
say the draft resolution introduced by the Rep- 
resentative of the United States of America at the 
275th meeting of the Security Council calling for a 
truce in Palestine, and I invite the Security Coun- 
cil to return to the subject. In so doing I would 
just call attention to the simple eternal truth that 
the objective of this resolution is to save human 
life. If there is any other objective equal to that 
I do not know what it is. All these long speeches 
and this argument and reargument about legalistic 
claims, about history, and about who is at fault 
and who more at fault are as nothing compared to 
that objective for which the Security Council has 
the primary responsibility — that is, to save human 
life. 

The resolution is couched in the language of the 
Charter which deals with that matter, and I would 
read it because I think that the record at this mo- 
ment ought to be made clear : 

"The Security Council, in the exercise of its 
primary responsibility for the maintenance of in- 
ternational i^eace and security," — that is to say, 
it is acting under that provision and that re- 
sponsibility — 

"Notes the increasing violence and disorder in 
Palestine and believes that it is of the utmost 

April 78, 1948 



urgency that an immediate truce be effected in 
Palestine ; 

"Calls upon the Jewish Agency for Palestine and 
the Arab Higher Committee to make representa- 
tives available to the Security Council for the pur- 
pose of arranging a truce"— not for the purpose 
apparently indicated in the speeches which have 
been made here today, but — 

"a truce between the Arab and Jewish communi- 
ties of Palestine; and emphasizes the heavy re- 
sponsibility which would fall upon any party fail- 
ing to observe such a truce ; 

"'■Calls upon Arab and Jewish armed groups in 
Palestine to cease acts of violence immediately." 

This calls for a standstill ; this calls for a cessa- 
tion of hostilities ; this calls for the stopping of the 
slaughter, the civil disobedience, the destruction of 
property, and the anarchy which exists in a terri- 
tory that is under a mandate. Just remember that 
this is not a free territory. It does not belong to 
anybody. If you search out the title to it, I think 
you will find that it has a legal position as a result 
of the war. 



" U.N. doc. S/705 of Mar. 30, 1948. 

" Made on Mar. 30, 1948, in the Security Council and 
released to the press by the U.S. Mission to the United 
Nations on the same date. 

515 



THE UNITED NATIONS AND SPECIAUZBD AGENCIES 

This is a mandatory property under a mandatory 
administrator. Events are occurring there which 
are a shame to humanity, and it is up to the Secur- 
ity Council, of all organizations in the world, to 
put a stop to them. 

This resolution, if passed, would impose an ob- 
ligation under the Charter upon every member 
of the United Nations to carry out the decision 
made in this resolution. Our position would be 
somewhat different after the adoption of a resolu- 
tion like this from what it is under a recommenda- 
tion made by the General Assembly. 

There is no mystery about the word truce. It 
requires two things above all others: one is the 
cessation of hostilities and the other is the cessa- 
tion of provocation. And it is that part of the 
duty of the Security Council that is indicated in 
the third paragraph of the resolution, which reads 
as follows : 

^^Calls upon the Jewish Agency for Palestine 
and the Arab Higher Committee to make repre- 
sentatives available to the Security Council for 
the purpose of arranging a truce between the Arab 
and Jewish communities of Palestine . . ." 

No such effective change in the military aspect 
of this matter could be had without arranging 
the terms of the truce, that is, reaching an agree- 
ment between the parties which are now violating 
the peace. Now this standstill idea is not new. It 
was recognized when the United Nations Charter 
was made, and it was recognized largely at the 
instigation of those who represented the Jews in 
Palestine. Article 80 which deals with a trustee- 
ship or a mandatory, is contained in chapter XII, 
international trusteeship system. It reads as 
follows : 

"1. Except as may be agreed upon in individual 
trusteeship agreements, made under articles 77, 79 
and 81, placing each territory under the trustee- 
ship system, and until such agreements have been 
concluded" — that is for how long: until such 
agreements have been concluded — 

"nothing in this Chapter shall be construed in 
or of itself to alter in any manner the rights what- 
soever of any states or any peoples or the terms 
of existing international instruments to which 
Members of the United Nations may respectively 
be parties." 

I understand that this article was suggested at 
San Francisco by the Zionists in order to assure 
continued recognition of their national home in 
Palestine. But the text equally protects the rights 
of Arabs to maintain the continuity of the unity 
of Palestine in their civil and religious rights in 
the territory protected by the mandate. 



I find that the following statement from the 
Summary Report of the Tenth Meeting of Com- 
mittee II/4, held on May 24, 1945, at San Francisco 
was attributed to the United States Representa- 
tive. The United States Representative stated that 
this article meant 

"that all rights, whatever they may be, remain 
exactly the same as they exist — that they are 
neither increased nor diminished by the adoption 
of this Charter. Any change is left as a matter 
of subsequent agreements . . ." 

With this country under a mandatory power, 
who has a right to use force there? Nooody but 
the mandatory authority. And if men, women, 
and children are being slaughtered, buildings are 
being blown up, and public services discontinued 
and ruined and the possibility of complete anarchy 
created, who has a right and who has an obligation 
there? 

In the first place, the mandatory power has 
come to us and said, "We are unable to handle 
that. The condition is such that we cannot handle 
it." That is one of the reasons why we found, as 
a group of permanent members of the Security 
Council, that we could not implement the General 
Assembly resolution at this time by peaceful 
means. It was not because these people on both 
sides did not have individually the characteristics 
that would make them competent for self-govern- 
ment. They do have that intelligence, culture, and 
high aim necessary to produce good government 
anywhere. That is not the trouble. The trouble 
is this blood feud that is on at this time and that 
causes more and more death and desolation. The 
object of this resolution is to put a stop to that. It 
is in full harmony with the spirit of article 80, 
which recognizes that so long as there is a mandate 
there — which we believe will exist until May 15 — 
so long as that responsibility is fixed, is settled on 
the United Kingdom, no other country or people 
has a right to use military force in Palestine. Un- 
til an agreement is entered into which transmits 
this responsibility from the United Kingdom to its 
successor, or until an agreement is made with the 
United Nations, the Security Council has the 
responsibility of trying to maintain oi"der and 
peace in Palestine. 

I sincerely hope therefore that this resolution 
will be passed by a large majority. 

Paul G. Hoffman To Be ECA Administrator 

On April 7, 1948, the Senate confirmed the nomi- 
nation of Paul G. Hoffman to be Administrator for 
Economic Cooperation. 



516 



Deparfment of State BuUetin 



Discussion in tlie Security Council of the Czeclioslovai( Question 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN i 
U.S. Representative in the Security Council 



At an earlier meeting on this matter I raised 
the question with reference to the participation of 
the representative of the new Czechoslovak regime 
in this proceeding. 

It has been a consistent practice which is firmly 
rooted in the Charter, for a state nonmember of 
the Security Council against whom charges were 
made or whose interests appear to be specially af- 
fected in a matter before the Council, to petition 
for permission to take part m the proceedings. 
Such request has invariably been gi'anted. It is 
quite obvious that the current proceeding is of 
grave concern for the Czechoslovak Government. 

It was for that reason that I suggested in- 
formally the invitation of the Czechoslovak Repre- 
sentative to the Council table. However, thus far 
tliis Representative has not found it advisable to 
request, in accordance with the established pro- 
cedure, permission to participate. On the con- 
trary, I am told that in a statement to the press 
he indicated that his Government did not wish to 
participate in the proceedings because the proceed- 
ings related to matters essentially within the 
domestic jurisdiction of Czechoslovakia. 

Now, members of the Council will recall that 
it has been alleged that a police regime has been 
established in Czechoslovakia with foreign assist- 
ance. The complaint was validly placed on the 
Council agenda by a vote of a large majority of 
Council members. One of the aims of the Council 
proceedings is to establish whether or not the 
matter before the Council is essentially within the 
domestic jurisdiction of Czechoslovakia as is al- 
leged by the Czechoslovak Representative in state- 
ments made outside of the Council. 

We can not help but wonder what causes the 
new Czechoslovak Government to be so reluctant 
about requesting an opportunity to be heard by 
this Coimcil. Can it be that the Czechoslovak 
Government is afraid of participating in an open 
debate? Is it apprehensive that its case will not 
stand up before world opinion following open and 
free debate in this Council? This strange reluc- 
tance stands in stark contrast to the active partici- 
pation in the past of the old democratic 
Czechoslovak Government in international confer- 
ences. In the League, the Czechoslovak Govern- 
ment spoke with authority based on its democratic 
institutions at home and on its adherence to justice 
in its foreign policies. Members of the Council 
will also recall the contribution which the Czecho- 
slovak Delegation under the leadership of the late 



Jan Masaryk made at the San Francisco confer- 
ence. In summary, I can only say that the reluc- 
tance of the present Czechoslovak regime to 
request a hearing certainly has not instilled in my 
delegation a feeling that this regime has a strong 
case to present. 

I feel that the Council, in view of the seriousness 
of the charges which have been made before it, 
should proceed in the most impai'tial manner. I 
think the Council should go on record as inviting 
the Representative of this new Czechoslovak re- 
gime to appear before us in order that he may state 
his Government's side of the case and in order that 
he may be available to answer questions which we 
may wish to put before him. For my pai't, I have 
a number of questions which I desire to direct to 
him. In an earlier statement during this case, I 
gave the Council an indication of the nature of 
some of these questions which I would like to ask. 
I am therefore presenting a resolution on this 
point to the Council reading as follows : ^ 

The Govenmient of Czechoslovakia is invited to 
participate without vote in the discussion of the 
Czechoslovak question now imder consideration 
by the Security Council, and the Secretary-Gen- 
eral is instructed to notify the Czechoslovak 
Representative to the United Nations accordingly. 



THE FOREIGN SERVICE 



Consular Offices 



The American Consulate at Port LimOn, Costa Bica, was 
officially closed on March 31, 1948. 

The American Consulate at Cebu, Republic of the Philip- 
pines, was opened to the public on April 5, 1948. 

The American Consulate at Palermo, Italy, has been 
raised to the rank of Consulate General, effective April 8, 
194S. 

Confirmations 

On April 7, 1948, the Senate confirmed the following 
nominations: Lincoln MacVeagh to be Ambassador Ex- 
traordinary and Plenipotentiary to Portugal and Felix 
Cole to be Ambassador Extraordinary and Plenipotentiary 
to Ceylon. 



'Made on Apr. 6, 1948, in the Security Council and 
released to the press by the U.S. Mission to the United 
Nations on the same date. 

^Adopted by the Security Coitficil at its 278th meeting 
on Apr. 6. 1948. U.N. Uoc. S/711, Apr. 6, 1948. 



April 18, 1948 



517 



Freedom of Information Throughout World Insures Peace 



ADDRESS BY WILLIAM BENTON ' 
Chairman, U.S. Delegation to the Freedom of Information Conference 



Our confei-ence at Geneva, as was to be expected, 
is sharply divided. The Soviet Union, with the 
small states which echo its views, daily proclaims 
that the state, the Communist dictatorship, is the 
source of all good, the purveyor of all freedom — 
by decree. On the other side are ranged the rep- 
resentatives of those countries whose people yet 
dare freely to express their opinions and to call 
themselves rational, self-governing men. These 
hold that freedom of information means primar- 
ily freedom from the state, or from any monopoly 
whatever, public or private. 

The free are thus face to face with those whose 
ideology drives them toward the destruction of 
freedom. This is the stark reality. It is moi'e 
clearly illuminated with each passing day at the 
Geneva confei'ence. 

Tliere are nevertheless ludicrous as well as grave 
aspects to this cleavage. To hide the most com- 
plete censorship and thought dictation known to 
history, the Soviet propagandists have erected 
elaborate Potemkin villages of freedom along the 
route of international scrutiny. They have built 
gilded facades labeled "freedom from exploita- 
tion by monopoly capitalism". They have created 
monumental stage sets labeled "true freedom of 
expression". 

I find it not at all ludicrous that around the 
clock and in several dozen languages Soviet propa- 
gandists appropriate, degrade, and bastardize the 
words which are the hard-earned and world- 
accepted currency of free men. Liberty, equality, 
fraternity, independence, justice, freedom, democ- 
racy. For these, brave men have died at the hands 
of tyrants for thousands of years. 

Now the U. S. S. R. insists with a thousand 
amplified voices that repression is freedom, and 
that true freedom elsewhere in the world is slav- 
ery; they insist that the police state is democracy, 
and that democracy in other countries is dictator- 
ship by monopoly capitalists. They assert that 
aggression is peace and liberation, and that true 
liberation is aggression; that complete state con- 
trol of man's thought and expression is freedom 
of expression ; and that true freedom of expression 
among free men is dictatorship. 

The age-old trick of the propagandists, from the 
day of the Sophists to the day of Dr. Goebbels, 

'Delivered before the Anglo-American Tress Club in 
Paris, France, on Apr. 7, 1948, and released to the press 
on the same date. 

518 



has been to confuse and confound the listener by 
labeling black as white and white as black. Its 
latest manifestation is this official attempt to de- 
preciate the word currency of free men, to drive 
the sound currency of clear meanings from the 
market place of ideas. 

Thus it became apparent from the earliest days 
of the conference that the Soviet Union is in 
Geneva primarily to create propaganda that, they 
hope, will further undermine freedom of expres- 
sion in the world. 

Day after day, in each of the committees of the 
conference, the delegates have been obliged to listen 
to harangues upon the evils of the American press, 
the British press, and others throughout the world. 
We have had thrown back at us admissions of guilt 
of all of the defects in the operation of a free press 
that have been unearthed by our own scholars, 
our own statesmen, and our own press itself in an 
effort to remedy them. 

We readily admit the imperfections of our own 
fi-ee press. We seek always to correct them, and 
it is a continuous job. Nevertheless, it becomes 
boring to have these defects brought up, time after 
time, as reasons for abolishing freedom of expres- 
sion. We refuse to burn down the palaces of free- 
dom merely in order to smoke out the rats. Hector 
McNeil, Chief of the British Delegation, after 
sitting through endless hours of attacks of this 
kind, during the course of an impressive address 
turned to the Soviet Representative and remarked : 
"If I wanted I could in this speech have pointed 
to the inconsistencies, the variations, the treacher- 
ous, and the unjustifiable changes in the views and 
the news given publication by the authoritarian 
presses of Soviet Russia and of eastern Europe. If 
I have not attacked it, it is not because I lack 
ammvniition." 

Similarly, the United States Delegation does not 
lack ammunition for attack of that kind. We 
could provide chapter and verse on how the Soviet 
press and radio, domestically within the Soviet 
Union and internationally through its world-wide 
broadcasting and its controlled publications, se- 
lects, distorts, and perverts the news, especially 
news about the non-Communist world. With re- 
spect to the United States, all Soviet organs have 
for many months, day in and day out, hammered 
out variations on a series of simple themes: The 
United States is imperialistic and militaristic; the 
United States is undemocratic and reactionary; 

Department of State Bulletin 



the United States is culturally backward; the 
United States is on the verge of a catastrophic 
depression from which it is trying to extricate 
itself by imperialistic adventures. 

If the United States refuses loans and favors to 
otlier nations, it is portrayed as rich and selfish. 
If it makes loans or grants favors, it is seeking 
to enslave foreign peoples. If it takes a firm posi- 
tion on any issue, it is militaristic and imperialistic. 
If it yields, this is evidence of the inner decay of 
capitalism. 

I have a file of Tass Agency reports of the 
Geneva conference. If an American or British or 
French news agency here were to be guilty of such 
shockingly one-sided, malicious reporting, the en- 
raged readers would put it out of business. But 
not Tass. The Tass News Agency is the official dis- 
torter of the Soviet Government. 

There are two reasons why we have not used our 
ammunition about this deliberate incitement to 
hatred. One reason is that we are not at Geneva 
to make propaganda. We are there to do all that 
we can to reduce barriers to the flow of information 
among men and nations. The second reason is that 
nations which believe in freedom of information 
tend to lack skill in propaganda, except as efforts 
to spread the truth over a period of years is the 
best propaganda. We are deeply wedded to fact 
and fair argument. Our social, political, and 
moral patterns would not permit us to use the 
Soviet type of pro^Jaganda. We make a mistake 
when we try it. 

But in spite of the diversionary propaganda 
attacks that have impeded the work of the confer- 
ence, real progress has been made. Issues and the 
meaning of words have been clarified; we know 
now more precisely what it may be possible to 
accomplish. 

In my opening speech at the conference I ex- 
pressed doubt that unanimous agreement would be 
possible. I indicated that in some areas it was not 
desirable even to seek unanimous agreement. 

These doubts are now shared, I believe, by the 
great majority of the delegates at the conference. 
The unbridgeable crevasses divide free peoples 
from states who claim to be the people who have 
been more fully exposed. As the chairman of one 
of the delegations at Geneva remarked to me, if 
free nations reach any agreement with the Soviet 
bloc on any resolution or convention on freedom of 
information, it will be because the U.S.S.R. and 
ourselves do not share a common understanding of 
the words used. 

What we can achieve in Geneva, as I now see it, 
is general agreement — agreement by countries not 
hostile to freedom — on an international conven- 
tion guaranteeing greater access to news, greater 
freedom in its transmission from country to coun- 
try, and freedom within states to receive news. 
Several countries — Great Britain, France, and 
others, as well as the United States — have pro- 

April 18, 1948 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

posed conventions aimed at these objectives. We 
of the United States are pressing hard for this goal, 
and I am hopeful that one or more conventions will 
be adopted that will be strong and meaningful. 

The second thing we hope to achieve at the con- 
ference is general agreement upon sending the con- 
ference's recommendations and agreements not 
only to the Economic and Social Council but di- 
rectlj' to governments, and immediately to appeal 
to them and to private groups for implementation 
and at once. 

A final major objective of the American Delega- 
tion at the conference is to secure agreement upon 
the establishment of continuing machinery in the 
United Nations that will keep world attention 
focused on the vital subject of freedom of expres- 
sion within and among nations. 

The continuing machinery we envisage would 
extend the life of the U.l^. Subcommission on 
Freedom of Information and direct it to study and 
repoit on barriers to the free flow of information, 
the extent to which freedom of information is 
actually accorded to the peoples of the world, the 
adequacy of the news available to them. 

These are our hopes and expectations in terms 
of specific objectives. Looking back upon the last 
two weeks in Geneva, however, it seems to me that 
never have the official representatives of nations 
in conference assembled probed so deeply into the 
ultimate causes of war. This may surprise you. 

But consider that freedom of expression is the 
father and protector of all other freedoms enjoyed 
by a free society of happy men. 

Consider that freedom of expression is the basis 
of democratic self-government wherever in the 
world men have attained it. 

Consider that in the Soviet Union and its satel- 
lite states ruling groups hold freedom of expres- 
sion to be more dangerous than cancer or atomic 
power. 

Consider that the extinction of freedom of ex- 
pression wherever in the world it exists is avowedly 
and observedly a primary aim of Soviet policy. 

Consider finally that the United Nations, instinc- 
tively seeking to rout out the causes of war, has 
called together representatives of the people of 
the woi-ld in a conference at Geneva to discuss 
ways aud means of promoting a free flow of 
information. 

Consider these things, gentlemen, and perhaps 
you will agree that in our conference at Geneva we 
are hacking away at the taproot of war. 

There was a time, perhaps, when love of glory, 
or prospect of gain, or ideological fanaticism 
caused powerful rulers to embark upon wars of 
aggression. But not today, when the front line,g 
are the city boulevards, and no prospect of gain 
could possibly be imagined, even by a fanatic, to 
offset the colassal cost of modern war. Fear — 
stark, elemental fear — is today the chief threat to 
peace. 

519 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

Todivy we must concede that fear is rampant 
and it is not inappropriate to ask why this is so. 
We are only three years removed from the most 
devastating war in history. The enemies of the 
victorious Allies are crushed. No people in the 
world have the desire to fight again. And yet, 
fear has seized the world. 

Fear on the part of whom ? 

Fear on the part of what ? 

Fear is by its nature infectious and self-com- 
pounding. The Soviet Union and its satellites 
profess to be fearful of the West. The western 
powers doubt and fear the intentions of the Soviets. 
No nation escapes this universal infection. Ac- 
tions based on fear set off a cycle of greater fears 
and ever more antagonistic actions. 

And what is the source and the focus of tliis 
world-wide infection? I say without hesitation 
that its greatest single continuing source is the 
policy of the Soviet Union toward freedom of in- 
formation. I do not say that the only thing the 
world has to fear is fear itself, because I will not 
presume to analyze the motives of the Soviet Gov- 
ernment or of any other government. I will not 
presume to analyze the mixture of ideological 
evangelism, or of lust for power; or of the desire 
for national security, or of so-called historic na- 
tional aspirations. 

But I will presume to say flatly that, had it not 
been the policy of the Soviet Government to deny 
the Russian people the right to express themselves 
and to communicate freely with other peoples, and 
to deny the right of other peoples to comnmnicate 
with them, the world would not now find itself in 
the grip of such an acute fear psychosis. 

At the war's end, no foreign danger to the 
U.S.S.R. even remotely appeared on the horizon. 
The American, British, French, Chinese, and 
other Allied peoples, grateful to the Russian peo- 
ple for their tremendous effort in helping to defeat 
the common enemy, had poured out their treasure, 
their confidence, and their admiration to their ally. 
Yet the Soviet Government would not permit con- 
tact between their people and those in other coun- 
tries who enjoy freedom. The Russian people 
have not been permitted to learn for themselves 
the nature and intentions of other peoples, or the 
achievements and ways of life of other peoples. 
Higher went the barriers insulating Soviet citizens 
from contact with tlie outside. Turned on was the 
campaign of hatred against foreign countries. Set 
into motion was a foreign policy of expansionism 
that has resulted in the seizure and control of 
neighboring states which might serve as buffers 
against free peoples. Revived was the old Comin- 
tern in new dress to press revolution and Commu- 
nist control in all parts of the world, to preach 
everywhere that repression is freedom and that 



this bogus freedom is the wave of the future. 
Each new people brought vmder domination be- 
came a new frontier for which a new buffer had to 
be provided. You will all recall the land monopo- 
list who wanted nothing except the land next to 
his. 

Such actions, of course, have deep roots and 
trace back through a long historical development. 
It is impossible to place the blame for a tragic 
historic sequence unequivocally on a single factor 
or a single group of men. The West, too, is obvi- 
ously not without its responsibility in the weaving 
of this pattern of history. 

But, the alarm felt by free peoples in the face 
of the process I have described has been excoriated 
by Soviet spokesmen at Lake Success, at Unesco 
meetings, and now at Geneva, as "warmongering". 
The efforts of the free press of the world to record 
this process have been dubbed "dissemination of 
information harmful to good relations among 
states". 

I do not know what was in the minds of all those 
members of the United Nations who cooperated to 
set up at Lake Success the Subcommission on 
Freedom of Information. Neither do I know 
what was in the minds of those who voted to call 
the Conference on Freedom of Information and of 
the Press that is now meeting in Geneva. But I 
am sure that either by conviction or by instinct 
they knew that unless freedom of information 
should be established throughout the world — this 
freedom carrying inevitably with it all other free- 
doms, including democratic self-government — 
there can be no just and lasting peace. 

The debate and the tactical moves at Geneva 
thus far offer no hope that the Soviet Union and 
its satellites can now be persuaded to let down the 
bars to the free flow of information, and thus to 
remove the main source of contagions fear. The 
Geneva conference does offer a substantial promise 
that the free nations of the world will agree, both 
by resolution and by compact, to reinforce the 
fi'eedoms they now enjoy. Above all, this confer- 
ence will help to make clear to men everywhere 
the nature of the issues involved. Thus it will help 
to lay a firmer foundation for the freedom to which 
the world must and will ultimately come, and 
meanwhile, we trust and hope, will erect a stand- 
ard to which all honest men can repair. 



THE DEPARTMENT 



Appointment of Officers 



Fred W. Ramsey as Foreign Liquidation Commissioner 
and Major General Philip E. Brown as Deputy Foreign 
Liquidation Commissioner, effective April 1, 1948. 



520 



Department of State Bulletin 



THE RECORD OF THE WEEK 
Violations of Interzonal Boundaries of the Free Territory of Trieste 

TEXT OF NOTE FROM THE UNITED STATES TO THE YUGOSLAV FOREIGN OFFICE > 



April 6, 1948 
The Embassy of the U.S.A. presents its com- 
pHments to the" Minister of Foreign Affairs of the 
Federated People's Republic of Yugoslavia and 
under instructions of the Secretary of State of 
the United States has the honor urgently to bring 
to the Minister's attention a series of incidents con- 
stituting flagrant violations of the interzonal 
boundaries of the Free Territory of Trieste on the 
part of the Yugoslav occupational forces. 

On March 29 at 12 : 15 o'clock the personnel of 
the British observation post situated approxi- 
mately 3,000 yards southeast of Basovizza and 300 
yards inside the British-U.S. zone of the Free 
Territory of Trieste were fired upon from the zone 
occiipied by Yugoslav forces. Two members of 
the Yugoslav Military Government police (Difesa 
Popolari) were seen to fire a number of rifle shots 
aimed at the above-mentioned post. 

This, however, was not the first instance in which 
members of the Yugoslav occupation forces and of 
the Yugoslav Military Government police have 
fired on members of the Anglo-American zone of 
the Free Territory of Trieste. On December 12, 
1947, Yugoslav troops opened fire in this same area 



shooting over the heads of the Venezia Giulia po- 
lice who were stationed in the British-U.S. zone. 
Again, on March 22, 1948, two members of the 
Venezia Giulia police force who were patroling 
the railway line which runs from St. Antonio to 
the border of the two zones were fired upon by 
members of the Yugoslav forces, and one of them 
was wounded. 

The Government of the United States most 
firmly protests against this series of violations of 
the interzonal boundaries of the Free Territory 
of Trieste by Yugoslav occupation forces and 
against these provocative acts toward personnel 
of the British- American zone in the performance 
of their duty. The Government of the United 
States trusts and expects that the Yugoslav Gov- 
ernment will promptly issue the necessary instruc- 
tions to its responsible representative to the end 
that there will be no repetitions of such incidents 
which seriously endanger the lives of members of 
the British-U.S. forces and the Venezia Giulia 
police in the discharge of their responsibilities in 
the area of the Free Territory of Trieste under 
British-American administration. 

The Embassy avails itself [etc.] 



U.S. Proposes Discussion of Protocol for Return of Free Territory of Trieste 

NOTE FROM THE ACTING SECRETARY OF STATE TO THE ITALIAN AMBASSADOR ^ 



Apnl9,19i8. 
The Acting Secretary of State presents his com- 
pliments to His Excellency the Italian Ambassa- 
dor, and has the honor to acknowledge the receipt 
of His Excellency's note of March 22, 1948, re- 

farding the proposal of the Governments of 
'ranee, the United Kingdom and the United 
States for the return of the Free Territory of 
Trieste to Italian sovereignty. 

Wliile no reply has yet been received from the 
Government of the Union of Soviet Socialist Re- 
publics, it is the view of the United States Govern- 
ment that, should the Soviet Government agree to 
the proposal, a preliminary meeting of the repre- 
sentatives of the powers principally concerned 



might be convened in Paris early in May to negoti- 
ate a draft of the necessary protocol to the Treaty 
of Peace with Italy. The United States Govern- 
ment feels that in the interest of terminating the 
present unsettled situation in the Free Territory 
of Trieste and restoring peace and stability in the 
area, early action by the interested powers is re- 
quired. The Government of the United States 
would be glad to have the views of the Italian 
Government regarding this suggested precedure. 



' Delivered on Apr. 6, 1948, and released to the press on 
Apr. 7. 

' Delivered on Apr. 9, 1948, and released to the press on 
the same date. 



April 18, 1948 



521 



NOTE FROM THE ACTING SECRETARY OF STATE TO THE SOVIET AMBASSADOR > 



April 9, 194B. 
The Acting Secretary of State jiresents his 
compliments to His Excellency the Ambassador of 
the Union of Soviet Socialist Republics and has 
the honor to refer to the United States Govern- 
ment's communication of March 20, 1948, in which 
it was proposed that the Soviet Government agree 
to early consideration, jointly with the Govern- 
ments of the United Kingdom, France and Italy, 
of the negotiation of a protocol to the Treaty of 
Peace with Italy to provide for the return of the 
Free Territory of Trieste to Italian sovereignty. 
As His Excellency is aware, similar communica- 
tions were addressed by the Governments of 
France and the United Kingdom to the Govern- 
ment of the Union of Soviet Socialist Republics, 
and by the Governments of France, the United 



Kingdom and the United States to the Govern- 
ment of Italy. 

The Italian Government has now replied favor- 
ably, and should the Soviet Government also look 
with favor on the proposal, it is the view of the 
United States Government that a preliminary 
meeting of representatives of the powers princi- 
pally concerned might be convened in Paris early 
in May to negotiate a draft of the necessary proto- 
col to the Italian Treaty. The United States Gov- 
ernment feels that in the interest of terminating 
the present unsettled situation in the Free Terri- 
tory of Trieste and restoring peace and stability 
in the area, early action by the interested powers is 
required. The United States Government would 
be grateful therefore for an early expression of 
the views of the Soviet Government. 



International Joint Commission Meets To Discuss Canadian Boundary Waters 



[Released to the press April 8] 

At its regular meeting in Washington on April 
7, the International Joint Commission (on bound- 
ary waters. United States and Canada) appointed 
the Engineering Boards which will conduct in- 
vestigations under the two references which the 
Governments of Canada and of the United States 
made to the International Joint Commission on 
January 12, 1948.* These studies will concern 
numerous streams in the vicinity of the interna- 
tional boundary from the Continental Divide on 
the west to and including the basin of the Red 
River of the North on the east. 

Later that same day the Engineering Boards, 
all members of which were in Washington, held an 
organizational meeting and established operating 
procedures and outlined steps to make the neces- 
sary investigations and reports to the Commission. 

Since the matters referred by the two Govern- 
ments to the International Joint Commission fall 
in two separate areas, two Boards with identical 
membership were established, one to be known as 
the International Waterton-Belly Rivers Engi- 
neering Board and the other as the International 
Souris-Red Rivers Engineering Board. 

The initial steps in each of the two references 
will be to investigate and report upon the water 
requirements arising out of the existing dams and 
other works or projects located in the waters which 



"Delivered on Apr. 9, 1948, and released to the press on 
the same date. 

* BuxLETTiN of Feb. 1, 1948, p. 151. 

522 



are of common interest and to ascertain whether 
further uses of these waters within their respective 
boundaries by Canada and the United States 
would be practical in the public interest from the 
points of view of the two Governments. The 
division of the flows of the St. Mary and Milk 
Rivers, as now provided by treaty,- will not be af- 
fected by this work. 

The members of the Boards are : 

Canada 

Chairman — Victor Meek, Department of Mines and 

Resources 
A. L. Stevenson, Department of Agriculture 
T. M. Patterson, Department of Mines and Resources 

United States 

Chairman — -J. W. Dixon, Bureau of Reclamation, Depart- 
ment of the Interior 
Maj. Gen. R. C. Crawford, Corps of Engineers, U. S. Army 
C. G. Taulsen, Geological Survey, Department of the 
Interior 



Visit of Prince Charles, Regent of Belgium 

On April 4, 1948, Prince Charles, Regent of Bel- 
gium, arrived in Washington for a visit in the 
United States. He was a guest at the White House 
on April 7 and at the Blair House on April 8 and 
9. During his stay in Washington he visited 
Arlington National Cemetery, Mount Vernon, 
and Annapolis, and also made an inspection of the 
installations of the Tennes.se Valley Authority 



Department of Sfafe Bulletin 



i 



ICAO Legal Committee — Continued from page 513 

Moreover, it is doubtful that such a provision 
would be any moi'e acceptable to the taxing 
authorities of othei' countries. 

The delegates to the Chicago Civil Aviation 
Conference of 1944 recommended the holding of 
an international conference which, in giving con- 
sideration to drafts of conventions adopted by the 
CiTEJA in 1931, relating to the recognition and in- 
ternational protection of rights in aircraft, would 
have for its purpose the adoption of a suitable 
convention on this subject. Prior to the meeting 
of the Legal Committee of Icao at Brussels in Sep- 
tember 1937 the Government of the United States 
instructed the heads of its diplomatic missions to 
infoim the governments to which they were ac- 
credited of the great importance which this Gov- 
ernment attaches to the wide-spread adoption of a 
convention on the recognition of rights in aircraft 
in which there would be incorporated certain basic 
principles deemed to be of the utmost importance 
in financing the sale of aircraft. From contacts 
that have been made with the industry in this 
country, it has been found that it favors this Gov- 
ernment's views as to the importance of bringing 
about the adoption of a convention on this subject. 

The draft convention prepared by the Legal 
Committee at Brussels will be on the agenda of 
the Second Assembly of the Intel-national Civil 
Aviation Organization (Icao) which is scheduled 
to meet on the fii'st of June 1948. Although the 
governments to be represented at the sessions of 
the Assembly will be free to submit proposals in 
regard to the Brussels draft, it is to be hoped that, 
in view of the very careful and detailed considera- 
tion which has been given to this subject over a 
long period at various international meetings, the 
Assembly will adopt and have opened for signa- 
ture a convention in substantially the form in 
which the present draft was drawn up by the Legal 
Committee at Brussels.'' Any development which 
might necessitate a re-submission of the entire 
project to the various governments for further 
study would be regrettable and would tend to dis- 
courage any efforts toward the adoption of a suit- 
able convention over an indefinite period. 



Maritime Conference — Continued from page 505 

ANNEX C 

United Nations Maritime Conference 

A. Resolution bt the United States Delegation Re- 
lating TO THE RePOBT OF THE PeEPAEATORT COMMITTEE 
OF EXPEETS ON Co-OBDINATION OF SAFETY AT SEA AND IN 
THE AlB 

Wheeeas Part VII of the Convention of the Intergovern- 
mental Maritime Consultative Organization places upon 
the Maridme Safety Committee the duty of co-orrtinating 
its activities with those of other intergovernmental bodies 
in the field of transport and communications having an 
interest in maritime safety, and 



THE RECORD OF THE WEEK 

Wheeeas A special Preparatory Committee of Experts, 
representing intergovernmental organizations in the fields 
of aviation, meteorology, shipping and telecommunications, 
has recently met in London to consider principles for the 
co-ordination of activities in those four fields, 

Wheeeas The report of the Preparatory Committee (cir- 
culated to the Conference as Document E/CONF. 4/8) 
vyill be considered at the forthcoming conference to re- 
vise the Convention for the Safety of Life at Sea, to be 
held in London in April 1948. 

Resolves That this Conference direct its President to 
inform the Conference on Safety of Life at Sea that the 
Conclusions contained in paragraph 21 of the Re[)ort of 
the Preparatory Committee of Experts were taken into 
consideration by this Conference when drafting Part VII 
of the Intergovernmental Maritime Consultative Organiza- 
tion Convention which establishes the Maritime Safety 
Committee. 

[Here follows Annex D: Draft Agreement on Relationship Be- 
tween the United Nations and the Intergovernmental Maritime 
Consultative Organization.] 



PUBLICATIONS 
Soviet Supply Protocols Made Public 

[Released to the press April 9] 

The Department of State released to the public 
on April 9 the texts of four protocols which 
formed the basis of United States, British, and 
Canadian material assistance to the Union of 
Soviet Socialist Republics during the war against 
the Axis. The document, Department of State 
publication 2759, European Series 22, entitled 
Soviet Supply Protocols, may be obtained in 
pamphlet form from the Superintendent of Docu- 
ments, United States Government Printing Office, 
Washington 25, D.C., at 35 cents a copy. 

The Soviet Supply Protocols, while indicating 
the quantities of supplies which the United States 
committed itself to provide, does, not indicate the 
extent to which materials were actually delivered 
to the Soviet Union. United States offerings were 
reduced under the terms of the protocols by Soviet 
selections to accord with available shipping. Ad- 
ditional requests of the Soviet Government for 
urgently needed items were met wherever possible 
by additions to protocol schedules or by substitu- 
tion for scheduled items. Shipping failures and 
resultant production curtailment and, in the third 
and fourth protocols, shipments in excess of proto- 
col commitments, were factors which caused vari- 
ance with original protocol plans. Information 
covering the supplies actually delivered to the 
Soviet Union during the war period may be found 
in the Twenty-First Report to Congress on Lend- 
Leme Operations and other publications of the 
United States Government. 



April 78, 7948 



"The full text of the draft convention as approved by 
the Legal Committee at P.russels on Sept. 2.5, 1947, may 
be found in Appendix "C" (Icao doc. 4627-LC/a3) to the 
report of the Legal Committee to the Second Assembly of 
the International Civil Aviation Organization (Icao doc. 
4G29-LC/65). 

523 



^^yrUe/nl^/ 



The United Nations and Page 

Specialized Agencies 

United Nations Maritime Conference. Ar- 
ticle by Jolin Martin Gates, Jr 495 

First Meeting of tlie Legal Committee of Icao. 

Article by G. Nathan Calkins, Jr. . . . 506 
Statements by Ambassador Warren R. 
Austin: 
Special Session of General Assembly on 

Palestine 514 

A Truce in Palestine 515 

The Czechoslovak Question in the Security 

Council 517 

Freedom of Information Throughout World 

Insures Peace. By William Benton . 518 



General Policy Page 

Paul G. Hoffman To Be Eca Administrator. 516 
Violations of Interzonal Boundaries of the 
Free Territory of Trieste. Note to the 

Yugoslav Foreign Office 521 

Visit of Prince Charles, Regent of Belgium . 522 

Treaty Information 

U.S. Proposes Discussion of Protocol for 
Return of Free Territory of Trieste: 

Note to Italian Ambassador 521 

Note to Soviet Ambassador 522 

International Joint Commission Meets To 

Discuss Canadian Boundary Waters . 522 

The Foreign Service and the Department 

Confirmations; Consular Offices 517 

Appointment of Officers 520 

Soviet Supply Protocols Made Public . . . 523 



DOCUMENTS AND STATE PAPERS: A New Monthly Periodical 

The first issue of Documents and State Papers, a new official monthly periodical of 
the Department of State, was released on April 16. It contains a specially prepared policy 
paper surveying Allied policy in the Japanese reeducation progi'am, the basic directive to 
ScAP for the occupation of Japan, and a translation of the Constitution of the Italian 
Republic. 

The need for a periodical to provide an additional source for documentary data has 
long been recognized. Rapidly changing developments in international affairs have made 
it necessary to document this Government's position more fully and adequately. 

The weekly Depaktment of State Bulletin will continue to carry current official 
announcements, articles, and statements on principal international developments. Docu- 
ments and State Papers will include documentary reports and texts, specially prepared 
policy papers, texts of treaties and international agreements, basic background studies, 
and selected official documents and statements. Such subjects as United States occupation 
policies, participation in the United Nations, international conferences, foreign economic 
policies, and treaty developments, as well as general aspects of foreign policy, will be 
treated. 

Under the direction of E. Wilder Spaulding, Chief of the Division of Publications, 
Office of Public A ffairs, Angelo Eagon will be Editor of Documents and State Papers and 
will continue as Editor of the Department of State Bulletin. 

Documents and State Papers may be obtained from the Superintendent of Docu- 
ments, U.S. Government Printing Office, Washington 25, D.C. (Subscription $3.00 
a year; single copy 30(t.) 



^mvt^(Mvd<yyA 



O. Nathan Calkins, Jr., author of the article on the Legal Committee 
on IcAO. is Chief of the International and Rules Division, Civil Aero- 
nautics Board. Mr. Calkins served as Chairman of the U.S. Delegation 
to the meeting in Brussels. 

John M. Gates, Jr., author of the article on the United Nations Mari- 
time Conference, is an officer in the Division of International Organiza- 
tion Affairs, Office of United Nations Affairs, Department of State. 
Mr. Gates is a member of the U.S. Delegation to that conference. 



U S GOVERNMENT PR1NT[NG OFFICE 19iB 



tJne/ zl)eha/^(^en(/ xw tnate/ 




PAN AMERICAN DAY, A SYMBOL OF FRIENDSHIP 

AMONG NATIONS • Address by the Assistant Secre- 
tary for Public Affairs . . 516 

SIGNIFICANCE OF TEXTILES L\ ITIE JAPANESE 
ECONOMY • Article by Stanley IVehmer and Marguen ■ 
C. Crimniins 5>7 

SECOND SESSION OF THE ADMINISTRATIVE 
COUNCIL OF THE INTERNATIONAL TELE- 
COMMUNICATION UNIO^J . ^. ' ' >'i.... / 
Kelly 331 



For complete contents see back cover 



Vol. XVfTT \^„ 460 
April i), ly tci 



VlENT o«. 




^tes 



U. S, SUPERimENDENT Of DOCUMENT^ 







^Ae zi^efia/y&yie^ /O^ ^{:a^ VJ Ll JL 1 KJ L X il 



Vol. XVIII, No. 460 • Publication 3128 
April 25, 1948 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 25, D.C. 

Subscription: 
52 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 
or State Bulletin as the source will bo 
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. 



SIGNIFICANCE OF TEXTILES IN THE JAPANESE ECONOiVIY 



by Stanley Nehmer and Marguerite C. Crimtnins 



To achieve the objective of creating a perma- 
nently peaceful, democratic state in Japan, it is 
necessary to establish in that country a self-sup- 
porting economy. Japan must import many raw 
materials and at least one fifth of her food to 
survive; and in order to pay for those imports, 
she must redevelop her international trade. The 
most important industries to rehabilitate in Japan, 
with an objective of enabling the Japanese to be 
self-supporting, are the textile industries. This 
article is designed to point up the significance of 
the textile industries in the domestic economy and 
in the foreign trade of Japan. 

PREWAR SIGNIFICANCE OF JAPAN'S 
TEXTILE INDUSTRIES 

Contribution to Production and Employment 

During the prewar period, the textile industries 
were among the more important segments of the 
Japanese economy. In 1928, textiles accounted 
for 40 percent of the total value of Japan's fac- 
tory production and absorbed 52 percent of all 
industrial labor. This high proportion of value 
of production and employment was not main- 
tained, however, over the next decade. Changes 
in the character of the Japanese economy, which 
involved the rapid expansion of the war-support- 
ing metal, macliinery, and chemicals industries, 
were responsible for the decline in the relative im- 
portance of the textile industries although they 
still ranked among Japan's major industries. By 
1936, textiles accounted for 29 percent of the total 
value of factory production and about 38 percent 
of total industrial employment. 

Measured by both of the above criteria, in 1928 
the cotton and silk industries were the largest and 
most active ones, while wool ranked third and 
rayon had not yet been developed significantly. 
By 1936 such changes as the decline in the price of 
silk and the further development of cotton, wool, 
and rayon caused a shift in the relative importance 
of the various textiles. Chart 1 summarizes the 
contribution of each of the textile industries in 
1928 and 1936. 



Contribution to Trade 

Important as the textile industries were to the 
internal economy of Japan, they had equal or 
greater significance in Japan's foreign trade. In 
1930 the value of exports of all textile raw mate- 
rials and products amounted to 501 million dol- 
lars, or 55 percent of the value of Japan's total 
exports. In the same year the cost of miports of 
textile raw materials and products totaled 271 mil- 
lion dollars, or 27 percent of the cost of Japan's 
total imports. By 193(5 the textile industry con- 
tributed somewhat less to Japan's total foreign 
trade; textile exports accounted for 485 million 
dollars, or 48 percent of Japan's total exports, and 
textile imports of 349 million dollars represented 
33 percent of total imports. 

Each of the branches of the textile industry dif- 
fered with respect to its net contribution to 
Japan's foreign exchange. Silk, a native product 
of Japan, required no imported raw materials in 
its manufacture. The entire value of exported 
silk, therefore, was an addition to Japan's foreign 
exchange. Cotton, wool, and rayon textiles, on the 
other hand, required heavy raw-material imports 

Chorl 1 

COMPARATIVE POSITION 

OF JAPAN'S TEXTILE INDUSTRIES, 1928-36 



Value of Textile Production 



1928 



1936 




Woo/^ Of/ier^ 






Textile Employment 




fos/) bar represents 100% 



April 25, 1948 



527 



since no cotton or wool was grown in Japan and 
because sufficient good-quality rayon pulp was not 
available. Since the cost of raw cotton and wool 
absorbed a large percentage of the value of the 
finished product, cotton and wool textile exports 
were not such good sources of foreign exchange as 
were silk exports. In fact, in the period 1928-36 
the value of identifiable cotton and wool exports 
did not cover the cost of raw cotton and wool im- 
ports. The reason for this "deficit", of course, was 
that Japanese domestic consumption of cotton and 
wool absorbed a large proportion of these two im- 
ports. With restricted domestic consumption, 
however, both of these branches of the textile in- 
dustry could yield a net addition to the foreign- 
exchange account. In the case of imported pulp 
for rayon, its cost does not absorb such a large 
proportion of the value of the finished product as 
do raw cotton and wool, and since the value added 
by manufacture in the rayon industry is relatively 
large, the rayon industry can pay its own way 
more easily than either the cotton or wool indus- 
tries and can probably make a net contribution to 
Japan's foreign-exchange position. 

Rav) Silk Trade. Japan's silk industry en- 
countered serious difficulties during the 1930's. 
Exports of raw silk fluctuated between 470,000 
bales in 1930 and 553,000 bales in 1935, and then 
declined to 386,000 bales in 1939. The price 
of raw silk dropped from $5.07 a pound in 
1928 to a low of $1.30 in 1934 and then rose grad- 
ually to a peak of $2.79 in 1940. Some of the 
factors responsible for the falling value of Japan's 
raw-silk exports were Japan's devaluation of the 
yen, which appears to have had no prolonged effect 
on increasing silk exports; a declining market 
after 1935 in the United States, which had ab- 
sorbed an average of 95 percent of Japan's raw- 
silk exports in 1928-32, because of growing 
competition from rayon; and the world-wide 
depression, which affected the foregoing factors 
and generally unstabilized the world silk market. 
Consequently, the contribution which raw silk 
made to Japan's foreign exchange dropped severely 
during tliis period. In 1928 exports of raw and 
waste silk totaled 350 million dollars, but by 1936 
this figure had fallen to 142 million dollars. Even 
so, ill tlie latter year raw-silk exports still played 
a major role in Japan's foreign trade, contriWting 
11 percent of the value of all exports. 

Cotton Trade. Of Japan's cotton textiles, cot- 
ton piece goods was the most outstanding item in 
Japan's export trade. In 1928 exports of cotton 
piece goods totaled 189 million dollars and in 1936 
amounted to 151 million dollars. These same ex- 
ports contributed 17 percent of the value of total 

'U.S. Tariff Commission, Japan's Competitive Position 
in International Trade, May 193.5, part II, pp. 52-08. 

'Quoted in International Labour Office, The World Tex- 
tile Industry, 1937, vol. I, p. 181 ; from Manchester Cliam- 
ber of Commerce, Monthly Record, no. 9, Sept. 30, 1936, 
p. 309. 

52* 



Japanese exports in 1930 and 15 percent in 1936. 

Rayon and Wool Trade. Rayon and wool ex- 
ports were much smaller in magnitude than either 
cotton or silk exports, but both grew in importance 
in the 1928-3() period. Exports of rayon yarn and 
piece goods were valued at approximately 22 mil- 
lion dollars in 1930 and 56 million dollars in 1936. 
More wool piece goods were imported than ex- 
ported up until 1932 and the same was true of wool 
yarn until 1933. In the latter year exports of 
these two wool products were valued at 7 million 
dollars. This figure rose to 22 million dollars by 
1936. 

Japanese Trade Practices. Complaints con- 
cerning Japanese competition arose from many 
quarters during the 1930's. Most of these took 
the form of charges that Japan was "dumping", 
that it was exploiting its labor, that it devalued 
the yen in order to gain a competitive advantage 
in international trade, that the Japanese Govern- 
ment assisted its export industries with subsidies, 
and that Japanese manufacturers imitated Ameri- 
can goods. 

In 1935 the U.S. Tariff Commission in an in- 
vestigation of complaints against Japanese trade 
practices found that virtually no valid basis ex- 
isted for most of the various charges.^ It discov- 
ered that instead of selling goods abroad at less 
than cost ("dumping") , the Japanese were actually 
making "unprecedented profits" on those goods; 
that there was no significant change in the real 
wages of industrial workers in Japan from the end 
of 1931 to the end of 1934, the period during which 
Japan greatly expanded its foreign trade ; and that 
the devaluation of the yen was dictated largely 
by forces over which the Japanese Government 
had no control, although the degree of devaluation 
was probably influenced by trade considerations. 

Indeed, there is considerable evidence that al- 
though the Japanese did not engage in the many 
practices charged, other markets raised barriers 
against Japanese goods. The British Joint Com- 
mittee of Cotton Trade Organizations reported 
that 

"In June 1936 cotton piece goods exported from 
Japan were subjected to restrictive measures in 
56 out of 106 markets which are distinguished in 
Japanese export statistics. ... In 40 of these 
cases the restriction took the form of a quantita- 
tive limitation, while in the other 16 cases restric- 
tion took the form of a tariff preference in favor 
of Japan's principal competitor — the United 
Kingdom. The quantity of trade affected by the 
restrictions was about 67 percent of total Japanese 
piece goods exports in 1935." * 

Quotas generally seem to have had greater effect 
than tariffs in restricting Japanese exports, but 
despite these barriers, Japan exported approxi- 
mately 2.9 billion square yards of cotton piece 
goods during each of 1935 and 1936, which were 
all-time peak years for export of these goods. 

Department of State Bulletin 



STATUS UNDER THE OCCUPATION 

Policies of the Allied occupation of Japan have 
molded to a sis^iificant degree the postwar status 
of the Japanese textile industry. Action by the 
Supreme Commander for the Allied Powers 
(ScAp) toward rehabilitating the Japanese textile 
industry has been the result of the implementation 
of Allied occupation objectives as set forth in the 
Potsdam declaration and subsequent Far Eastern 
Commission (Fec) policy decisions. 

It was early recognized that the occupation of 
Japan would entail large financial outlays by the 
United States to sustain the Japanese people in 
order to prevent disease and unrest which would 
endanger the security of the occupation forces. 
As a measure to keep to a minimum the United 
States financial outlays, it was decided to rehabili- 
tate Japanese textile industries as rapidly as pos- 
sible. This decision was dictated not only by the 
prewar experience of Japan's textile industries, 
but also by a number of other favorable factors. 
The world" shortage of textiles, stemming from the 
economic dislocations caused by the war, provided 
a ready market for Japan's output. Stocks of raw 
cotton and wool were more readily available than 
some of the other raw-material imports necessary 
for the manufacture of commodities for export; 
and stocks of raw silk, an entirely indigenous 
product, were immediately available for export. 
Finally, effort was directed toward the textile 
industries too, because they were not war-sup- 
porting industries. 

Steps Toward Rehabilitation 

The first step in Allied policy toward this end 
was the sending of a fact-finding mission to Japan 
in January 19-16 to appraise the capabilities of the 
Japanese textile industry. The Textile Mission 
consisted of Representatives of China, India, the 
United Kingdom, and the United States.^ The 
Textile Mission found that Japan's textile iru- 
dustries had suffered great devastation during the 
war, not only from bomb damage, but also from 
the organized scrapping of textile machinery by 
the Japanese Government, and had emerged with 
about one third of their prewar capacity. Most of 
the spindles, looms, reeling basins, et cetera, that 
remained needed rehabilitation to be operable. 
Despite their seriously impaired productive 
capacity, however, the textile industries appeared 
to be the major crutches upon which the broken 
Japanese economy would have to lean heavily, 
particularly in the early postwar years. 

The conclusions of the Textile Mission supported 
the hypothesis held in Washington that of all 
Japan's textile industries the cotton-textile indus- 
ti-y could be most easily rehabilitated. The ex- 
istence in the United States of large Government- 
held stocks of raw cotton made this step feasible. 
In February 1946, the War Department, the 
U. S. Commercial Company (Usee), the Com- 

April 25, 1948 



modity Credit Corporation (Ccc), and the De- 
partment of State, as a concurring agency, en- 
tered into an agreement under which about 900,- 
000 bales of raw cotton, held by Ccc, was sent to 
Japan during the ensuing year and a half for 
manufacture. At least 60 percent of the finished 
yarn and piece goods was to be sold by the Usee 
and the proceeds applied to the cost of the raw 
cotton. Under the agreement the balance of the 
textiles could be used for domestic consumption, 
but the need to maximize foreign-exchange re- 
ceipts to pay for food and other essential imports 
resulted in the decision that a smaller quantity 
would be retained than allowed in the contract. 
Under an extension of this agreement executed in 
July 1947 an additional 350,000 bales of raw cot- 
ton and spinnable cotton waste was supplied Japan 
from the United States. 

In addition, ScAP-negotiated agreements with 
India and Egypt have provided for Japanese im- 
ports of 170,000 bales of Indian cotton and 5,000 
bales of Egyptian cotton. From July 1946, when 
raw-cotton imports were first reflected in increased 
cotton-yarn production, through September 1947, 
Japan produced 330,500,000 pounds of cotton yarn, 
part of which was woven by the latter date into 
705,800,000 square yards of cloth.* 

With the encouragement of the United States 
Government and Scap, the Japanese Government 
and the textile industries formulated plans for the 
rehabilitation of the industries. On December 30, 
1946, ScAP granted the cotton-spinning industry 
permission to borrow 600 million yen for rehabili- 
tation purposes.^ On February 7, 1947, Scap 
authorized the rebuilding of the cotton-textile in- 
dustry to the level of four million spindles;" and 
on April 4, 1947, Scap authorized the rebuilding 
of rayon capacity to a level of 150,000 metric tons 
annually.' 

Scap encouraged raw-silk production in the be- 
lief that large quantities could be sold, especially 
to the United States, although in smaller quantities 
than in the prewar period. During 1946 and 1947, 
however, it became clear that competition from 
synthetic fibers and high prices for raw silk had 
reduced the raw-silk market even more than had 
been anticipated, although it appeared that the 
market for Japanese-produced silk fabric had per- 
haps been underestimated. In July 1947, Scap 
authorized the release of 10,000 bales of raw silk 
a month to Japanese weavers for manufacture into 
silk fabric for export. 



' The Textile Mission to Japan, Report to the War De- 
partment and to the Department of State, January-March 
1946 (Department of State publication 2619). 

' Scap report to Chief of Staff, U.S. Army, Washington ; 
radio no. Z2.S68-1, Nov. 13, 1947. 

" ScAPiN 1427 (Memorandum for the Japanese Govern- 
ment). 

" SCAPIN 1512. 

' SCAPIN 1600. 

529 



INDEXES OF JAPANESE TEXTILE PRODUCTION January i946- September 1947 



1930-34-100 





= 


— 


=^ 


=^ 


= 


— 


— 


— 


p 




=== 


^=^ 










= 


— 


^^— C 



























~ 




" 


,*-* 




: 










A 


I/ndi 


usfno 


1^ 


-. 




*•• 


... 


••* 






••' 




,^ 




^ 




^ 










..• 


• ** 


/ 


^ 


■«i> 






\ 




/ 


























































... 






^ 












\ 


-^ 


















, 




^ 




^^ A// Manufocfuring 




















. 




-^ 
























,^ 


»« 


^ 








^ 


/ 








y 


,' 


< 










," 


(^ 










N 


-- 


," 


»"■ 


^^ 













































1 
















L. 














































































• 


••' 










.' 




^.. 


men 


Rayon 














> 












• 

> 


y 


S 




y 


- 


> 


^ 


\ 






/ 


A 




V 




i^ 


^ 


V 


1 

~* Woo/ yofr 




..-""¥ 


L'- 


-•' 


>: 


"V 


/ 




r^ 




^^ 


/ 


/ 




- 


^ 




\ 


/ 


/ 


Raw S,lk 

1 


X 




j-^ 


y 


^ 

-- 


^^ 


.. 




tlon yarn 
1 

























JFMAMJJASONDJFMAMJJAS JfMAMJJASONDJFMAMJJAS 

1946 I 1947 1946 I 1947 

•|nc/od«J only raw silk/ eoUoo, woo/ and spun n/i 
yarn; and cotton, woof, ond royon woven goods. 



In August 1947 Scap released a program for the 
rehabilitation of the woolen industry. This pro- 
gram envisaged the rebuilding of the industry's 
capacity to a level of 733,000 worsted spindles and 
815 woolen cards and the consumption of 665,000 
bales of wool annually.* 

FEC Policies 

Certain policy decisions by the Far Eastern 
Commission have created a framework within 
which the textile industry must function. One 
such decision, issued January 23, 1917, determined 
"that the peaceful needs of the Japanese people 
should be defined as being substantially the stand- 
ard of living prevailing in Japan during the 
period of 1930-34". Although this policy does not 
fix a specific maximum level for any particular 
industry, with reference to the textile industry 
this policy might be taken to mean that domestic 
consumption of textiles in peacetime Japan should 
average not more than about 8.7 pounds per capita, 
the average 1930-34 consumption. However, this 
level is far above present levels and is unattainable 
at the present time owing to the low level of textile 
production and the need to maximize exports. 

Another Fec policy decision, issued February 
27, 1947,° established the policy on grounds of the 



' Scap, A Program for the Japanese Woolen Industry, 
Aug. 25, 1947. 

" Bui.LETiN of Mar. 30, 1947, p. Ttli. See also a correctioa 
in BuiXETiN of May 25, 1947, p. 1041. 

'"Scap, Japanese Eeoiiomiv titatistios. Bulletin No. 13, 
September 1947, pp. 7-9. 



world-wide shortage of textiles that Japanese use 
of textiles through December 31, 1947, should not 
exceed an annual per-capita consumption of two 
and a half pounds for all household textiles and 
clothing, with specified additional amounts avail- 
able for workers and farmers and others at the 
discretion of Scap. Actual consumption in 1947, 
however, has averaged less than this level — per- 
haps two pounds per capita. Although this 
policy decision is no longer operative due to the 
passage of time, it is nearly certain that Japanese 
domestic consumption during 1948 will not ex- 
ceed two and a half pounds per capita and will 
probably be less than two pounds. 

Postwar Textile Output 

Despite serious efforts by the Japanese Govern- 
ment and encouragement from Scap, in August 
1947 the monthly index of textile production was 
below the average for all manufacturing groups, 
although textile output has increased more rapidly 
than that of some other industries. The index of 
factory production ^° for January 1946 stood at 
13.5 (1930-34=100) while textiles during the same 
month registered only 4.5. In this month the over- 
all index of industrial production was 17.7. By 
April 1947 the textile group had reached 21.0, its 
postwar peak, compared with 32.8 for the manu- 
facturing group as a whole and 39.0 for over-all 
industrial production. Since April, however, the 
textile index has dropped considerably owing to 
reduced availability of cotton. Chart 2 summa- 
rizes the production indexes for cotton, silk, rayon, 
and wool since the end of the war. 



530 



Department of State Bulletin 



The major reasons for low textile production lie 
not so much in the slow rehabilitation of produc- 
tive capacity as in the means for putting present 
capacity into operation. In each of the textile in- 
dustries more machinery is in operable condition 
than is actually in operation. Shortages of raw 
materials, labor, and fuel have presented the most 
serious problems in the effort to increase textile 
production. Trade and credit difficulties have 
resulted in such an inadequate and uneven flow of 
raw cotton, wool, and rayon pulp that production 
schedules have been disrupted. Many textile 
workers who moved to rural areas as a result of 
uiban bombings during the war have been reluc- 
tant to leave those areas, where food is compara- 
tively ample, to work in industrial communities 
where there are serious food shortages. Power 
lags, which become particularly serious during the 
dry season (one fourtli of the year), have forced 
certain textile mills to close down one or more days 
a week. Aggravating these operational difficul- 
ties, the general problem of inflation and uncer- 
tainties concerning financial issues have militated 
against investment and thus against increased 
production in the textile industry. 

Textiles in Japan's Postwar Trade 

Although the textile industries have not rees- 
tablished their prewar position relative to the 
other industries in Japan since the surrender, a 
major portion of Japanese foreign trade has been 
textiles. In 1946, one third of the value of Japan's 
imports consisted of textile raw materials, almost 
all of which was raw cotton. Textiles, mostly raw 
silk, represented over two thirds of Japan's total 
exports. It should be noted, however, tliat almost 
all of the raw silk exported in 1946 was on con- 
signment to the Usee and more than two thirds of 
this silk remained unsold at the end of 1946. 

It was not before 1947 that the raw cotton im- 
ported in 1946 was available for export, and trade 
statistics for the first eight months of 1947 are 
somewhat more realistic as a pattern of Japanese 
postwar trade. Textile raw-material imports dur- 
ing this period amounted to 31 million dollars, 
almost all of which was spent for raw cotton, or 
approximately 9 percent of total imports." Tex- 
tile exports, on the other hand, accounted for 94 
million dollars, or 77 percent, of total exports; ^^ 
of total textile exports, cotton yarn and piece 
goods contributed 74 million dollars, or 79 per- 
cent; raw silk and silk piece goods, 11 million dol- 
lars, or 12 percent; rayon yarn and piece goods and 
wool yarn and piece goods, approximately 3 mil- 
lion dollars apiece, or 3 percent each. It is ap- 
parent from these figures that silk exports suffered 
a great decline between 1946 and 1947 and that 
cotton exports had become much more significant. 
If silk-fabric exports expand in the future, as 
seems very likely, this relation between silk and 
cotton exports — the major textile-export items in 



Japan's prewar trade — may be less far apart in 
the future. 

Until August 15, 1947, trade with Japan was 
conducted almost entirely on a government-to- 
government basis. The Japanese Government 
Board of Trade, Boeki Cho, was the nominal prin- 
cipal on the Japanese side of all export and all 
import transactions. In practically every such 
transaction the buyer from or seller to Japan was 
a foreign government or government corporation 
(the U. S. Commercial Company in the case of 
exports to the United States) or private firms 
specifically designated by their governments to 
cari-y on trade with Japan. Private business- 
men were invited to Japan for the first time under 
the occupation in the summer of 1947 with Au- 
gust 15 as the opening date. Beginning Septem- 
ber 1, Boeki Cho was authorized to enter into sales 
contracts with private foreign traders in Japan 
for the export of practically all types of Japanese 
goods currently being produced for export, with 
the exceptions of cotton textiles, raw silk, and the 
1947 tea crop. With reference to cotton textiles, 
the U. S. Commercial Company's sales policy was 
to sell only to governments in order to keep sales 
on a large-scale basis, to keep selling expenses 
low, and to avoid the problem of discriminating 
among competing private firms in foreign coun- 
tries. Raw silk was not at first offered to private 
buyers because the Usee had given certain price 
guaranties to the silk trade in the United States, 
and price and sales policies to be followed by 
Boeki Cho had to be carefully coordinated with 
those of Usee. Wlien this coordination was ac- 
complished, raw silk was added to the list of com- 
modities which could be purchased by private for- 
eign traders in Japan. 

Restrictions on the entry of businessmen into 
Japan were relaxed in February 1948 so as to 
provide for longer stays in Japan and for semi- 
permanent residence.'^ It is hoped that these 
changes in Scap regulations will increase sub- 
stantially the number of foreign traders in Japan 
and lead directly to an expanded volume of 
foreign trade. It is assumed, for example, that 
many American and foreign firms specializing in 
the textile trade will consider establishing offices 
or agencies in Japan through which they can 
arrange to secure Japanese textiles to fill the needs 
of their customers. Eventually Japanese na- 
tionals will be permitted to travel abroad for com- 
mercial purposes and the marketing of textiles 
will undoubtedly be a fruitful commercial activity 
for such travelers. In the meantime, however, it 



" Scap, Economic and Scientific Section, Report on 
Japanese Trade for the Far Eastern Commission, Dec. 5, 
1947. 

" It is reported tliat for all of 1947, textiles represented 
56 percent of Japan's exports. 

" BtjLLETiN of Feb. 22, 1948, p. 254. 



Aptil 25, 1948 



531 



will be necessary for foreign textile merchants to 
market Japanese production. 

A change in trade procedure occurred at the 
end of 1947 when the Usee terminated its Jap- 
anese program. Its responsibility for the sale of 
raw silk, silk piece goods, cotton yarn, and cot- 
ton piece goods in the United States was trans- 
ferred to a newly established "SeAP Foreign 
Trade New York Office" under the supervision of 
a ScAP representative who also acts as an agent 
of Boehi Cho. This office will be maintained only 
until private trade channels have been opened up 
sufficiently to assure a maximizing of Japanese 
export proceeds without such an agency. The 
office is empowered to negotiate contracts with 
American dealers for Japanese commodities, in 
addition to the ones mentioned above, although 
American dealers and foreign traders will be able 
to buy goods in Japan on the same terms and at 
the same prices as those quoted by the New York 
office. The office also maintains a showroom, 
makes Japanese trade information available to the 
United States market, and supplies United States 
market information to Scap and Boeki Cho. 

THE FUTURE UNDER THE OCCUPATION: 
PROBLEMS AND PROSPECTS 

The significance of textiles in the Japanese 
economy makes the rehabilitation of Japan's tex- 
tile industries essential to a self-supporting econ- 
omy, and consequently, to the successful achieve- 
ment of the aims of the occupation and a minimi- 
zation of the costs to the United States and its 
Allies of supporting Japan. The rehabilitation 
of the Japanese textile industries is dependent 
partly upon the solution or amelioration of Japan's 
domestic economic problems, partly upon United 
States and Allied policies, and partly upon the 
world conditions of supply and demand for tex- 
tile raw materials and finished products. The 
extent to which these industries are rehabilitated 
will be a factor in determining the post-occupa- 
tion status of the Japanese economy and the con- 
tribution which Japan can make to the rehabili- 
tation of the world economy. 

Japan's internal economic problems, such as the 
availability of trained labor and of fuel and power 
for textile mills, are affected by occupation policy 
even though it is not within the purview of the 
Allied occupation to engage in the operations of 
Japanese industry. For example, the availability 
of labor can be correlated with the availability 
of food in urban areas ; the adequacy of food, in 
turn, is determined partly by the amount of United 
States outlays, partly by the volume of Japanese 
exports to pay for food imports, and partly by 
world food supplies. 

As long as the occupation continues and the 
Japanese are not permitted to participate freely 
m world trade, Allied policies will affect the pro- 
curement of textile raw materials and the mar- 

532 



keting of finished textiles. Even the most favor- 
able Allied policies toward the rehabilitation of 
the Japanese textile industries, however, cannot 
solve the problems of world shortages of raw 
materials or market antipathy toward the prod- 
ucts Japan is trying to sell. 

Cotton 

The cotton-textile industry, which may be ex- 
pected to continue to provide a large share of 
Japan's exports, is the one which is most seriously 
confronted with raw material and market prob- 
lems. The policies of the United States Govern- 
ment and Fec do not restrict Japanese raw-cotton 
imports to American sources, but provide for pro- 
curement from all world sources. Although, as 
noted above, Japan has received raw cotton from 
India, the development of the Indian cotton-spin- 
ning industry and internal political difficulties 
may preclude the procurement of as large quanti- 
ties from India and Pakistan as before the war. 

The procurement of United States raw cotton 
has had the effect of requiring Japan to export 
cotton textiles for dollars. Although the contract 
with the Cec does not require textiles to be sold 
for dollars, its requirement that it receive the dol- 
lar value of textiles manufactured from Ccc cotton 
at the time of delivery, has meant that Boeki Cho 
cannot sell for currencies other than dollars unless 
an equivalent sum in dollars is available from some 
other source. For a number of months the acute 
shortage of cotton textiles led nondollar countries 
to make sufficient dollars available to buy about 
half of the exportable cotton textiles produced 
with the first Ccc cotton. The growing shortage 
of dollars, accumulating stocks in Japan, and a 
less urgent world demand for cotton textiles open 
the possibility of Japanese cotton goods entering 
the United States. Because of the present tariff 
structure, however, it is doubtful whether the vol- 
ume of cotton textiles which Japan could sell in 
the United States would be large enough to have 
an effect on the United States market which 
American producers supplied with their output of 
almost 10 billion square yards in 1947. 

Silk 

The Japanese silk industry has no raw-material 
problem, but, as noted, it has suffered from the 
failure of Japan's former markets, especially the 
United States, to import significant quantities of 
raw silk. No large increase in exports of raw 
silk is anticipated because of the greater popu- 
larity of nylon for hosiery, although silk fabrics 
have certain desirable qualities not found in 
fabrics made from synthetic fibers. Kaw-silk ex- 
ports will probably go almost entirely for fabric 
manufacture in the United States, France, and 
the United Kingdom, and it is believed that dur- 
ing the next few years Japanese-manufacttired 
silk-fabric exports will increase substantially. 

Department of State Bulletin 



Wool 

Tlie Japanese woolen industry has both a ra^v- 
niateiial and a market problem. The industry is 
almost wlioUy dependent upon imported wools 
which before the war came chiefly from Australia. 
A small quantity of Australian wool was shipped 
during the latter part of 1947 on a virtual cash 
dollar basis. At the beginning of 1948 the Aus- 
tralian Government announced that Australia 
would exchange raw wool for Japanese textiles 
and other products, in amounts depending upon 
the volume of Japanese goods which Australia is 
able to use. No details as to quantities of ma- 
terials concerned have at present been announced. 

Japan's major wool-textile markets before the 
war were China, Manchuria, Korea, and other Far 
Eastern countries. As long as present political 
and economic conditions in the Far East continue, 
Japan will have to look elsewhere for its wool 
textile export markets. It would appear that both 
raw material and market problems will limit the 
extent of rehabilitation of the Japanese wool 
industry. 

Rayon 

The Japanese rayon industry could probably 
sell its products without much difficulty in world 
markets today because of the current rayon short- 



age. In order for Japan to manufacture rayon 
of suitable quality for export, however, rayon pulp 
must be imported since most domestic rayon pulp 
is of inferior quality. A world shortage of rayon 
pulp as well as credit difficulties have prevented 
signiliiant rayon-pulp purchases. Internally, 
Japanese producers have faced the problem of 
securing coal for rayon production, a serious 
obstacle because of the coal shortage. A larger 
quantity of coal is required to produce a given 
quantity of rayon textiles than is required to pro- 
duce a comparable quantity of cotton, wool, or silk 
textiles. As long as Japan suffers from an acute 
shortage of coal, it may be uneconomical to divert 
to the rayon industry coal which otherwise could 
be used by other branches of the textile industry 
(e.g., cotton) in production for export. In addi- 
tion, certain essential chemicals — caustic soda and 
sulphuric acid — are produced in Japan only from 
imported raw materials and coal, and hence are 
also in short supply. Thus, the rehabilitation of 
the rayon industry will be determined by the avail- 
ability of rayon pulp, coal, and chemicals. 

It may take from five to ten years to solve the 
problems which are facing Japan's textile in- 
dustries today. The significance of these indus- 
tries to the Japanese economy and to United 
States and Allied policies make these problems of 
concern to us. 



THE CONGRESS 

Development aiul Control of Atomic Energy. S. Rept. 
850, SOth Cong., 2cl sess., pursuant to Public Law 585, 70th 
Cong. 9 pp. 

The United States Information Service in Europe. Ke- 
port of the Committee on Foreign Relations, pursuant to 
S. Res. 161, a resolution authorizing the Committee on 
Foreign Relations to make an investigation of the effects 
of certain State Department activities. S. Rept. 855, SOth 
Cong., 2d sess. vii, 23 pp. 

National Aviation Policy. Report of the Congres- 
sional Aviation Policy Board, Congress of the United 
States, pur.suant to Public Law 287, 80th Cong., an act 
to provide for the establishment of a temporary congres- 
sional aviation policy board. S. Rept. 949, SOth Cong., 
2d sess. vi, 57 pp. 

Amending section 13 of the Surplus Property Act of 
1944, as amended, to provide for the disposition of surplus 
real property to states, political subdivisions, and munici- 
palities for use as public parks, recreational areas, and 
historic monument sites. S. Rept. 970, SOth Cong., 2d sess. 
6 pp. 

Organization of Federal Executive Departments and 
Agencies. S. Rept. 9S3, SOth Cong., 2d sess. 3 pp. 

Protocol Extending the International Coffee Agreement : 
Message from the President of the United States trans- 
mitting the protocol for the extension for one year from 
October 1, 1947, subject to certain conditions, of the 
Inter-American Coffee Agreement signed in Washington 
on November 28, 1940. The protocol was signed September 
11-November 1, 1947. S. Doc. Executive A, SOth Cong., 
2d sess. 6 pp. [Department of State, pp. 2-3.] 

Consular Convention with Costa Rica. Message from 
the President of the United States, transmitting the con- 
sular convention between the United States of America 

April 25, J 948 

785227 — 48 2 



and the Republic of Costa Rica, signed at San Jos^ on 
-January 12, 1948. S. Doc. Executive D, SOth Cong., 2d 
sess. 14 pp. [Department of State, 2-3.] 

Aid to Greece and Turkey. Report of the Committee 
on Foreign Relations on S. 2358. A bill to amend the act 
approved May 22, 1947, entitled "An act to provide for 
assistance to Greece and Turkey". S. Rept. 1017, SOth 
Cong., 2d sess. iii, 38 pp. [Department of State, 2-3, 
17-38.] 

Aid to China. Amended report of the Committee on 
Foreign Relations on S. 2393. A bill to promote the gen- 
eral welfare, national interest, and foreign policy of the 
United States by providing aid to China. S. Rept. 1026, 
SOth Cong., 2d sess. iii, 20 pp. 

Investigation of the Shortage of Petroleum, Petroleum 
Products, and Natural Gas. S. Rept. 1048, SOth Cong., 
2d sess., to accompany S. Res. 210. 2 pp. 

First Report of the Joint Committee on Atomic Energy 
to the Congress of the United States. H. Rept. 1289, SOth 
Cong., 2d sess. 9 pp. 

Transportation as it Affects the European Recovery 
Program. Preliminary Report Seventeen of the House 
Select Committee on Foreign Aid, pursuant to H. Res 
296, a resolution creating a special committee on foreign 
aid. H. Rept. 1504, SOth Cong., 2d sess. ii, 61 pp. 

Report on Greece. Preliminar Report Twelve, Subcom- 
mittee on Italy, Greece, and Trieste, of the House Select 
Committee on Foreign Aid, pursuant to H. Res. 296, a 
resolution creating a special committee on foreign aid. 
H. Rept. 1505, SOth Cong., 2d sess. ii, 12 pp. 

Report on Germany. Preliminary Report Thirteen, 
Recommendations by Subcommittee on Germany, of the 
House Select Committee on Foreign Aid, pursuant to H. 
Res. 296, a resolution creating a special committee on 
foreign aid. H. Rept. 1500, SOth Cong., 2d sess. ii, 6 pp. 

533 



SECOND SESSION OF THE ADMINISTRATIVE COUNCIL OF THE 
INTERNATIONAL TELECOMMUNICATION UNION 

By Helen G. Kelly 



The Administrative Council of the International 
Telecommunication Union held its second session 
at Geneva, from January 20 to February 11, 1948. 
The Administrative Council, which was set up by 
the International Telecommunication Conference 
at Atlantic City in the autumn of 1947, constituted 
one of the outstanding innovat ions in the reorgani- 
zation of the Union. Its particular purpose was 
to assure the continuity of the authority of the 
Union in the interval between plenipotentiary con- 
ferences, as well as to assure the coordination of the 
activities of the other permanent organs of the 
Union and of the Union with other international 
organizations such as the United Nations and 
the International Civil Aviation Organization 
(IcAO). The Telecommunication Conference 
elected the following 18 countries as members of 
the Council: Argentina, Brazil, Canada, China, 
Colombia, Egypt, France, Italy, Lebanon, Pakis- 
tan, Poland, Portugal, Switzerland, Turkey, the 
Union of Soviet Socialist Republics, the United 
Kingdom, the United States, and Yugoslavia. 

' The Council, at its first day's meeting, was presented 
with a diflicult problem. The Soviet Administration, 
three days l)efore the convening of the Council, sent a 
telegram to the Secretary General of the Union advising 
that its Representative was ill and would be unable to 
attend. The Soviet Administration requested that the 
Council ses.sion be deferred until March 1. Considering 
this problem as the first item on its agenda, the Council 
reached the conclusion that the meeting should not be 
postponed. It based its decision on the fact that by the 
time the Soviet Administration had notified the Secre- 
tary General most of the representatives had either ar- 
rived at Geneva or were en route thereto. Since many 
had come long distances, it was felt that the expenditure 
of funds wiis too great to allow a postponement. In addi- 
tion, it was maintained that the members of the Council 
are countries and not individuals and that a second repre- 
sentative should be designated in the event that the first 
one is unable to attend. 

No provision had been made in the convention for the 
appointment of an acting chairman, and the second prob- 
lem confronting the Council was one of interpretation of 
the new convention. The Council finally elected by anani- 
mous vote the United States Representative, Mr. de Wolf, 
as acting chairman. It included a provision in the rules 
of procedure that in the future, should a similar .situation 
arise, the four vice chairmen would choose an acting 
chairman by agreement or by lot. 

534 



At its first session, an organizational meeting 
held at Atlantic City, the Council elected the fol- 
lowing countries as vice chairmen : China, France, 
the Union of Soviet Socialist Republics, the United 
Kingdom, and the United States. Francis Colt de 
Wolf, Chief of the Telecommunications Division 
of the Department of State, was designated by this 
Government as the Representative of the United 
States on the Council. In accordance with the 
provisions of the convention, the vice chairmen 
then chose the chairman of the Council by agree- 
ment among themselves and their unanimous 
choice was the Union of Soviet Socialist Republics. 
Mr. Fortoushenko, the chairman of the Soviet 
Delegation to the three Atlantic City conferences, 
served as the Soviet Representative and hence as 
the chairman at this first session. The second ses- 
sion was .scheduled to convene at Geneva on Jan- 
uary 20, 1948. 

At its second session the Council met daily ex- 
cept Sunday for three weeks and reached approxi- 
mately 35 decisions, resolutions, and opinions 
which were consolidated into one document at the 
end of the session. These covered a wide field in- 
cluding practically every phase of the operation 
of the Union. 

The members of the Council enumerated above 
were represented at the second session, with the 
exception of the Union of Soviet Socialist Re- 
publics.' The Polish, Turkish, and Colombian 
Representatives arrived late, and Brazil was rep- 
resented by its Minister at Bern. The Chairman 
of the International Frequency Registration 
Board (Ifrb) and the Director of the Interna- 
tional Telephone Consultative Committee (Ccir) 
sat as observers at the meetings of the Council as 
provided in the convention. 

Mr. de Wolf was assisted at the second session 
by two advisers, Helen G. Kelly and John D. 
Tomlinson, both of the Department of State. 

iVmong the more important administrative and 
financial decisions of the Council were the 
following: 

1. The Council approved the budget for 1948 at 
the ceiling of 3,000,000 Swiss francs set by the At- 

Department of State Bulletin 



lantic City conferences. In this connection it may 
be mentioned that the Council was most economy- 
minded and viewed with disfavor any unnecessary 
expenditure of funds and particuhirly any attempt 
to exceed the ceiling mentioned above. The 
Budget Subcommittee, which undertook its task of 
the examination of tlie finances of tlie Union in a 
most serious and painstaking manner, presented a 
report which the Council adopted with very little 
discussion. 

2. The original provision that the General 
Secretariat of the Union (formerly called the 
Bureau of the Union) should be transferred from 
Bern to Geneva during the current year was set 
aside because of the lack of funds. The Council 
agreed to this measure in order that it might 
remain within the budgetary limitations set at 
Atlantic City. The transfer of the General Secre- 
tariat will take place on January 1, 1949. 

3. The Council agreed to the transfer of the In- 
ternational Telephone Consultative Committee 
(Ccif) secretariat and laboratories to Geneva 
during the course of 1948, the expense for moving 
being defrayed by the Ccif itself. 

4. The Council agreed that as of January 1, 
1949, the free distribution of the documents of the 
Union should be discontinued. This was made 
necessary by the provision of the new convention 
that French, English, and Spanish should be the 
working languages of the Union instead of only 
French as in the past. It was agreed that the 
accounting necessary by the General Secretariat 
would be too difScult since it would require the 
estimation of the costs involved in preparing docu- 
ments in three diiferent languages, where many of 
the expenses would be common to all three lan- 
guages but in different proportion. 

The agenda contained numerous items concern- 
ing various aspects of the relationship between the 
Union and the United Nations, as well as with 
other international organizations. Most of these 
items were deferred to the September meeting of 
the Council because of the lack of time. In the 
meantime, reports will be prepared by the Secre- 
tary General on many of these questions and final 
decisions will be reached at the September meet- 
ing. In general the attitude of the Council toward 
the United Nations was one of cooperation and 
friendliness. However, as at Atlantic City, there 
was evidenced a desire to remain autonomous. A 
lack of coordination between the Secretariat of the 
United Nations and the Secretariat of the Union 
was obvious, particularly in the failure of the 
United Nations Secretariat to bring to the atten- 
tion of the Union Secretariat matters of direct con- 
cern to the Union. The Secretary General of the 
Union was directed by the Council to bring this 
matter to the attention of the Secretary-General 



' This is the first conference to be called by the Union 
and not by an inviting government. 



of the United Nations and to discuss it informally 
with the Director of the Transport and Communi- 
cations Division of the United Nations Secretariat. 

The Council also considered the question of Itu 
representation at international conferences (other 
than Itu conferences) in which the Union is inter- 
ested. There was some thought that the Union 
could be represented by one of the officials of the 
General Secretariat or by a member of the Admin- 
istrative Council. After discussion it was finally 
agreed that no one person could make decisions for 
the Union at such meetings but that it was desir- 
able to have the Union represented by the Secre- 
tary General or a person designated by him who 
would supply information concerning the Union 
but who would go no further. 

The Council approved the calling of the Inter- 
national Administrative Aeronautical Radio Con- 
ference at Geneva on May 15, 1948.= In accord- 
ance with the decision of the Council, a telegram 
was sent to the signatories of the Atlantic City con- 
vention, requesting their approval of the calling 
of this Conference. The approval of a majority, 
as required before the Conference could be con- 
vened, was attained. It was decided that a pre- 
paratory group of experts would proceed to 
Geneva three weeks before the Conference con- 
venes to prepare its agenda. 

The Council also approved the calling of the 
Administrative Telephone and Telegraph Con- 
ference at Paris on May 1, 1949, by the French 
Government. In addition it approved a recom- 
mendation by the Provisional Frequency Board 
(Pfb) of the Union for the convening of certain 
regional conferences to implement the decisions of 
the Atlantic City Radio Conference. 

Various political questions arose and were for- 
warded to the Council while it was in session. 
The first was a request for an expression of opin- 
ion from the preparatory committee of experts of 
eight countries at Brussels preparing for the Euro- 
pean Broadcasting Conference at Copenhagen. 
The Soviet Delegation to the Committee of Eight 
had requested a provision in the rules of proce- 
dure requiring unanimity in all decisions reached. 
The Council advised the Committee of Eight that, 
while the latter was free to adopt its own rules 
of procedure, the Council looked with disfavor 
on the adoption of a rule contrary to the long- 
established custom and spirit of the Itu. 

The second resulted in the approval by the 
Council of the participation of the International 
Broadcasting Organization (Oir) in the forth- 
coming International Radio Consultative Com- 
mittee (Ccir) Conference at Stockholm. 

The third was the report of the chairman of the 
Provisional Frequency Board (Pfb), which out- 
lined the progi'ess of the Board up to date and 
included a statement on the divergence of views 
between the Soviet Delegation and the United 

(Continued on page 555) 



April 25, 1948 



535 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

U.S. Regards Information to Security Council on Political Developments 

in Czechoslovakia Necessary 

STATEMENT BY AMBASSADOR WARREN R. AUSTIN > 
U.S. Representative in tlie Security Council 



The Security Council has been considering the 
serious charges made before it both against the 
Soviet Union and the present Czechoslovak Gov- 
ernment with respect to the recent events that have 
taken place in Czechoslovakia. 

It is charged that the Government of the 
Czechoslovak Republic, legally constituted by the 
parliamentary election of May 1946, has been 
undermined by a Commiuiist minority which was 
encouraged and given promise of helji by the rep- 
resentatives of the U.S.S.R. 

It is said that the Communist coup was success- 
ful only because of the violence of a Soviet-sup- 
ported Communist minority; because of the par- 
ticipation of Soviet representatives; and the threat 
of military force of the Soviet Union in readiness 
near the boundaries of Czechoslovakia. Soviet 
officials and military representatives are alleged 
to have taken part in meetings and demonstrations 
in Prague during the crisis. It was further al- 
leged that Soviet officei's participated in the arrest 
of non-Communist political leaders; that Soviet 
agents worked in the Ministry of Interior which 
controls the police and the security troops; and 
that Soviet agents were also among the ai'med 
militia in the streets of Prague. 

Allegations were made in support of the charge 
that Czechoslovakia was subject to indirect ag- 
gression and political infiltration which led to the 
subversion of the parliamentary regime and to the 
establishment of a terroristic police rule under the 
present regime. 

It is further charged that the political indepen- 
dence of Czechoslovakia, a member of the United 
Nations, has been violated by threat of use of force 
on the part of another member of the United Na- 
tions, the U.S.S.R., in violation of paragraph 4 
of article 2 of the Charter, and that as a result a 
situation exists which is likely to endanger the 
maintenance of international peace and security. 

It has been argued that these charges cannot be 
considered by the Security Council because of the 
provision contained in article 2 (7) of the Charter 
providing that the United Nations cannot inter- 
vene in matters which are essentially within the 
domestic jurisdiction of a state. Ilowever, the 
charges are based on the allegation of an illegal 

' Made in the Security Council on Apr. 12, 1948, and 
released to the press by the U.S. Mission to the United 
Nations on the same date. 



intervention of one state in the internal affairs of 
another state leading to the impairment of its 
political independence. Moreover, the restoration 
and maintenance of democratic institutions in 
liberated Europe, including Czechoslovakia, was 
made the subject of an international agreement 
concluded at Yalta by Marshal Stalin, Prime 
Minister Churchill, and President Roosevelt in 
February 1945. Consequently, if the charges are 
true, article 2(7) could clearly not be a bar to 
Security Coiuicil jurisdiction over the Czecho- 
slovak question. The taking of evidence is the 
way to settle whether the charges are a premedi- 
tated quota of slander, as chai'ged by the Soviet 
Union. 

In the charges before us we are not faced with 
an account of armed forces moving across the 
frontier from one state to another in pursuance of 
an aggressive purpose. In such case of a "use of 
force" the problem of evidence for all practical 
purposes would not arise. However, the charges 
before us are that a "threat of force" was used. 
The Security Councdl must determine whether 
"threat of force" was used or some other form of 
pressure or illegal interference was applied. All 
the facts in this case are not readily apparent, but 
the seriousness of the charges is such that the Se- 
curity Council is bound to make every effort to 
"get at the facts". 

The Chilean Government, which brought the 
Czechoslovak question before the Security Coun- 
cil originally, requested the Security Council to 
conduct an investigation. A proposal has now been 
submitted by the Chilean Government for the cre- 
ation of a subcommittee to hear witnesses and re- 
port to the Security Council on the nature of their 
testimony. We believe that this might be a con- 
venient method for the Security Council to under- 
stand the Czechoslovak situation. I assert that 
the United States is behind this proposition if it 
is made by a member of the Council. 

Wliat were the events that led up to the death of 
the Foreign Minister of that country and to the 
numerous resignations of Czechoslovak diplo- 
matic representatives in the United States, Can- 
ada, Netherlands, Norway, France, and elsewhere? 
Is the death of Masaryk propaganda poison ? Are 
these resignations deceit circulated abroad ? Why 
is there present along the Czechoslovak frontier 
an unusually heavy frontier guard and what is 
the significance of the flight from that country of 



536 



Department of State Bulletin 



nuiaeroiis refugees and particularly political fig- 
ures whose reputation and integrity were not 
thrown into question prior to the rise of the new 
regime ? 

Certain facts on the developments in Czecho- 
alovakia itself are a matter of connnon knowledge. 
They have not been reviewed in detail here, how- 
ever, and they should be. They constitute the 
framework of internal developments against 
whicli the charges of external interference must 
be considered. 

The Czechoslovak Government crisis was pre- 
cipitated by the unwillingness of Premier Gott- 
wald and the Communist ministers to respect two 
majority decisions of the Cabinet with reference 
to the administration of the police power nnder 
the Communist Ministry of Interior. The latter 
was making arbitrary appointments of i^olice of- 
ficials in a process of extending Commiuiist con- 
trol. The 12 non-Communist ministers resigned in 
protest as an appropriate parliamentary response 
to a refusal of a Cabinet minority to abide by the 
wish of the Cabinet majority. The Communists 
seized upon this as an occasion for breaking the 
opposition, discrediting its leaders, and taking 
over full control of the Goverimient. How was it 
possible that this minority party could successfully 
overthrow the elected Government of Czechoslo- 
vakia and establish in effect a police regime? 

At the time of the crisis the Communist Party 
was already in control of the security police, the 
state broadcasting apparatus, and had also secured 
important influence in the armed forces. This 
control arose as a result of a series of circum- 
stances, beginning with the signing of a friend- 
ship treaty between Czechoslovakia and the 
U.S.S.R. on December 12, 1943. This was an ex- 
pression of a desire on the part of the Czecho- 
slovak Government to maintain close relations 
with the Soviet Union in the genuine belief that 
Czechoslovakia, when liberated from German oc- 
cupation, would be able to continue its democratic 
Government and institutions without intervention 
from her powerfvd neighbor. This treaty, in fact, 
included a clause stipulating nonintervention by 
either of the parties in the other's domestic affairs. 
It is perhaps significant to note that this treaty 
was one of a series of treaties signed between the 
U.S.S.R., Bulgaria, Hungary, Rumania, and Po- 
land, all of which contained this guaranty. Now 
I ask you, are these allegations based on newspaper 
reports, or are they based on solemn conventions? 
At the same time, the Czechoslovak leaders de- 
clared their willingness to include representatives 
of the Communist Party in a new Cabinet, al- 
though it had never before participated in any 
Czechoslovak Government. They showed more 
than good will to cooperate with the Soviet Union 
and with the Communists. In the negotiations 
that took place in 1945 in Moscow among Czecho- 
slovak leaders with regard to the formation of a 



THE UNITBD NATIONS AND SPECtAUZBD AGENCIES 

new Cabinet, the Communists managed to secure 
the key posts of Interior, Information, Agricul- 
ture, and Education. In addition, the Communists 
had a stronghold in the Ministry of Foreign Af- 
fairs through the Undersecretary of State and in 
the Ministry of National Defense, which was 
headed by General Ludvig Svoboda, a professional 
soldier who had led the first Czechoslovak brigade 
in the U.S.S.R. and whose pro-Soviet sentiments 
are well known. These key positions as a rule, ac- 
cording to the Czechoslovak parliamentary prac- 
tice, went to the party that received the strongest 
support in the elections. We can only speculate on 
what basis the Communists obtained them during 
the Moscow discussion. 

Control of key posts in the Government placed 
the Communists during the period immediately 
after Czechoslovak liberation in a dominant posi- 
tion entirely out of proportion to their popular 
support. Through the Ministry of Interior they 
controlled the police, which they soon reorganized 
into the National Security Corps based on the 
Soviet model. The Ministry of Information gave 
them control over the use of mass media of com- 
munication for propaganda purposes, and the 
Ministry of Agriculture placed them in a position 
to compel allegiance from agricultural workers 
and small peasants. 

Moreover, it will be recalled that at the time 
of the liberation from the German occupation four 
fifths of the country was occupied by Soviet troops 
and remained so occupied for eight subsequent 
months. 

Despite these advantages enjoyed by the Com- 
munist Party, (32 percent of the vote in the first 
postwar election went to the non-Communist 
parties. Nevertheless, in subsequent develop- 
ments the Communists ignored the fact that they 
were a minority and attempted to discredit and 
undermine non-Connnunist parties such as the 
Slovak Democrats and the National Socialists. 

The Communists had given sufficient evidence 
before the recent seizure of power that they could 
not and would not tolerate any political opposi- 
tion, which they identified as treason to the state. 
This was brought out at the time of the coup by 
immediate formation of action committees, the 
sudden appearance of a well-disciplined and fully 
armed factory militia in Prague, and the swift and 
ruthless purge of the non-Communist leaders. 
These steps reveal a high degree of preparation, 
a high degree of organization, for seizure of power. 
It is'^a pattern designed to usurp control of a state. 
We should ascertain to what extent outside as- 
sistance contributed to this thorough preparation. 
It shows how impossible it is for those who be- 
lieve in government through democratic processes 
and parliamentary methods to cooperate in good 
faith with the Communists. At the time of the 
coup the tension in Czechoslovakia was height- 
ened by reports of Soviet intervention and of the 



April 25, 1948 



537 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

presence of a large number of Soviet agents in 
the country. It was at this time that Soviet Dep- 
uty Foreign Minister Zorin arrived in Prague. 
Shortly thereafter during the crisis there appeared 
on the streets of Prague special heavily armed 
police shock regiments. These regiments under 
the command of the Communist Minister of In- 
terior were called out to patrol the streets and 
to search the headquarters of opposition parties. 
Great numbers of armed factory militia also ap- 
peared in Prague, marching in military formation, 
wearing red arm bands, and carrying the Soviet 
flag. 

All the indications of the birth of a police state 
were evident: complete seizure of control over 
broadcasting facilities, elimination of non-Com- 
munist newspaper editors, suppression of a num- 
ber of non-Communist periodicals, and the im- 
position of complete censorship. Since the Putsch 
no true opposition publications exist in Czecho- 
slovakia. Virtually all journalists hitherto criti- 
cal of the Communists have been purged. A large 
number of journalists have been expelled from 
the association of Czech journalists, among them 
Lev Sychrava, Delegate to the United Nations 
Commission on Freedom of Information and win- 
ner of a 1947 prize as the best Czech journalist. 

All non-Communist parties were purged and a 
number of non-Communist functionaries were ar- 
rested. 

"Action committees" were formed and given full 
administrative control over the duly constituted 
organs of the Republic. There was no existing 
basis in Czechoslovak law for any such act. 

Yet according to reports available here very 
little overt opposition to the Communist coup was 
apparent. How are we to understand that the 
majority of the Czechoslovak people, known for 
their traditional adherence to democratic majority 
rule, acquiesced to the Communist minority? 
Could it be that the coup occurred because over 
the shoulder of the minority glared the face of a 
foreign power? Is it not significant that the mi- 
nority was led by individuals indoctrinated by a 
foreign power who had been in close association 
with its authorities i 

There are men of universally respected reputa- 
tions who have for years been a part of Czecho- 
slovak political life and who have now found it 
necessary for a second time in ten years to flee 
their homeland. They were present during the 
crisis and can perhaps shed some light on the 
question of how it was that totalitarian police- 
state methods were substituted for traditional 
Czech democratic procedure without any signifi- 
cant overt expression of protest on the part of the 
Czechoslovakian people. 

As has been pointed out in the Security Council 
discussions, the Czechoslovak story assiunes added 
significance when compared with developments 
that have taken place throughout eastern and cen- 



tral Europe. In Hungary, Bulgaria, Rumania, 
and Poland, while details varied, the general pat- 
tern was the same. Like Czechoslovakia, all these 
countries have been occupied by the Soviet armies. 
Tlie chief steps were the acquisition by the Com- 
munists of key posts in tlie Cabinet; control of the 
police ; control of the armies; control of the media 
of mass communications; and finally control of or 
subversion of tlie judiciary. In none of these 
countries did the Communists enjoy popular sup- 
port sufficient to warrant their commanding posi- 
tion in the government. In such countries where 
truly free elections were held they received as 
little as 17 percent of the total vote, and the largest 
vote they received was 38 percent. 

There is a striking uniformity in techniques ap- 
plied by the Communists in their fight against the 
majority. In all five countries they concentrated 
their propaganda barrage against one non-Com- 
munist party after another. The familiar pattern 
of accusation of conspiracy against the state and 
of hostility to the Soviet Union was used. 

Let us think of the trial of the Bulgarian peas- 
ant leader, Petkov; the trial of Maniu of Ru- 
mania; the arrest of the popular peasant leader, 
Kovacs, in Hungary; the trials of opposition 
leaders in Poland; and, finally, in Czechoslovakia 
the charges of conspiracy against Vladimir 
Krajina, one of the outstanding underground 
leaders in the resistance against the Germans. 

The remarkably similar methods lead of course 
to remarkably similar results. In all five countries 
we are now confi'onted with regimes controlled 
unquestionably and totally by the Communist 
parties. The policies of these regimes would seem 
to follow without deviation the interests of the 
Soviet Union. 

As was the case previously in the other four 
countries, the new Czechoslovak regime has now 
cast aside the entire substance of parliamentary 
practice. All effective opposition leaders are re- 
moved, the opposition journalists deprived of their 
freedom to write, the traditional autonomy of the 
600-year-old Charles University of Prague bru- 
tally violated by the dismissal of its duly elected 
head followed by a purge of a substantial number 
of its professors. 

The uniformity and the smooth operation of the 
pattern raises the logical question whetlier or not 
there is any coordination from a central point for 
the implementation of tliis pattern. Is it not sig- 
nificant (hat the top Communists in Hungary such 
as the Deputy Prime Minister, Rakosi, and the 
economic czar, Vas, Foreign Minister Pauker in 
Rumania, Prime Minister Dimitrov and Foreign 
Minister Kolarov of Bulgaria, and the entire lead- 
ership of (Czechoslovakia, including Premier Gott- 
wald, Cabinet Ministers Fierlinger, Kopecky, 
Nejedly, and the Secretary General of the Com- 
munist Party, Slansky, have all spent years of 
active work in Moscow and have been in close as- 



538 



Department of Stale Bulletin 



socialion with both tlie Soviet Communist leaders 
as well as the Communist leaders in other 
countries and that some of them have even be- 
come Soviet citizens? 

To complete the similarity of the patterns in all 
those countries, is it a mere coincidence as I 
pointed out on Tuesday that the Soviet Deputy 
Foreign JNIinister Vyshinsky appeared in Bucha- 
rest at the crucial moment and another Soviet 
Deputy Foreign Minister, Zorin, was present in 
Prague at the time of the February coup? 

What is the significance of the fact that after 
the Czechoslovak Government had indicated its 
readiness to 2)articipate in the Marshall Plan this 
decision was reversed as a result of a telephone 
call to Prague from Moscow where the Czecho- 
slovak Prime Minister and Foreign Minister had 
been summoned? Is it not significant that the 
Communist Pai'ty of Czechoslovakia as well as the 
Communist Parties of other European countries, 
including all the countries of eastern Europe, 
joined with the Soviet Communist Party in the 
Cominf orm in October 1947 ? Is it also not signifi- 
cant that shortly thereafter the Communist Party 
in Czechoslovakia became more aggressive? The 
leading role of the Soviet Communist Party in the 
Cominform is a matter of common knowledge. 

All of these cii'cumstances lead to the basic ques- 
tion : Has the Government of Czechoslovakia been 
subverted with the assistance, direct or indirect, 
of an outside power? Has a threat of the use of 
force or of other pressure or interference by an out- 
side power been directed against the political in- 
dependence of Czechoslovakia? If the answer is 
in the affirmative then we are confronted with a 
situation which very definitely is outside of ar- 
ticle 2(7) and concerns the Security Council. 

We have heard many contradictory statements 
in the course of this discussion. The Council must 
ascertain the truth. It should never condemn 
nor approve blindly. This was a consideration in 
my previous proposal that the Council should in- 
vite the Representative of the new Czechoslovak 
Government to the table.^ 

This invitation has now been rejected.^ Why? 
The rejection is based on the thesis that article 
2(7) applies. This, as I have said previously, is 
a matter for determination by this Council. The 
new Czech regime and the Soviet Union are at- 
tempting to decide that question for the Security 
Council, to dictate their unilateral and prejudiced 
opinion on this point to the Council. This is a 
high-handed and arbitrary way of behaving which 
would be surprising had it not come from these 
regimes. This refusal to participate does not give 
me a feeling of confidence that all is well. If these 
regimes had a clear conscience, surely they would 
seize eagerly the opportunity of jjresenting theii- 
side of the case to the Council. They would not 
oppose the Council's learning the facts by taking 
evidence. This refusal makes me feel more than 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

ever that it is important for the Security Council 
to get to the bottom of this situation. 

We have also now been told that there are groups 
of men outside of Czechoslovakia who were lead- 
ers in the political life of this country prior to the 
coup. The Representative of Chile has made a 
suggestion for the creation by the Council of a 
subcommittee to hear the stories of these leaders 
who were in Czechoslovakia when the coup oc- 
curred and presumably should have firsthand 
knowledge of tlie events at that time and those 
which led up to the coup. My Government feels 
the Council would not be discharging fully its 
obligations if it did not hear these people. It feels 
that the creation of a sub-group to receive such 
testimony and to obtain other available informa- 
tion and to report back to the full Council on it is 
a convenient and feasible procedure. 

We feel the subcommittee should consist of rep- 
resentatives of five states of the Council. In our 
view the terms of reference should be very simple. 
The subcommittee should be authorized to hear the 
testimony of these Czech political leaders and to 
report on this testimony to the Security Council. 

My Govenmient feels that it is essential that 
such information be obtained in order that the 
Council will be better able to decide what further 
steps should be taken on this matter. I should add 
that we would not consider the activity of such a 
sub-group to be in any way an investigation. The 
proposal before us has the full support of my 
Government. 



■ BuiLETTN of Apr. 18, 1948, p. nil. 

°A letter dated Apr. 8, 1948, to the Secretary-General 
from Dr. Vlartimir Houdek, Representative of Czechoslo- 
vakia to the U.N. (see U.N. doc. S/718 of Apr. 10, 1948), 
follows : 

Sib: Referring to your letter dated April 6, 1948 and 
upon instructions from my Government, I have the honour 
to bring the following to your attention : 

The discussion of internal matters before the Security 
Counfil is in fontradiction to the provisions of the 
Charter. Such matters are exclusively within the domes- 
tic jurisdiction of any state. The Czechoslovak Govern- 
ment therefore rejects with indignation the unfounded 
complaint which has been put before the Security Council. 

Czechoslovakia has been and will remain a peace-loving 
state and wishes to maintain friendly relations with 
peace-loving nations on the basis of mutual respect in ac- 
cordance with the purposes and principles of the United 
Nations. The discussion on the changes in the composi- 
tion of the Czecho.slovak Government based on slanderous 
allegations has confirmed our conviction that it is only a 
pretext to stir up the hostile campaign against the Soviet 
Union and other states of Eastern Europe with which 
Czechoslovakia has strong bonds of friendship. Such ac- 
tion is in flagrant contradiction to one of the fundamental 
tasks of the United Nations which is to promote friendly 
relations between nations in order to strengthen inter- 
national peace and security. 

Since the discussion of internal matters of Czechoslo- 
vakia in the Security Council is contrary to the basic 
principles of the Charter, inspired by the aim of protect- 
ing the sovereignty and independence of states, the Czech- 
oslovak Government does not find it possible to take in 
any way part in such discussion. 



April 25, 7948 



539 



U.S. Observers Invited to World Health Assembly 



TEXT OF LETTER FROM THE EXECUTIVE SECRETARY OF THE INTERIM COMMISSION 
OF "WHO" TO THE U.S. REPRESENTATIVE ON THE COMMISSION 



8 April 19^8 

Sir, Article 80 of the Constitution of the World 
Health Organization stipulates that that Act shall 
enter into force immediately 26 Member States 
of the United Nations have become parties to it. 
This number has, at the present date, been 
exceeded. 

By Article 2 of the Arrangement establishing 
the Interim Commission of the World Health Oi - 
ganization, the Commission is required to convoke 
the first session of the World Health Assembly as 
soon as practicable and not later than six months 
after the date on which the Constitution of the 
Organization comes into force. 

During its fifth session the Interim Commission, 
in view of the imminent entry into force of the 
Constitution fixed 24 June 1948 as the opening 
date for the first session of the World Health 
Assembly, and decided that it shoiUd be held in 
Geneva. 

Accordingly, letters of convocation have now- 
been sent to the Governments of the member States 
of the Organization, i.e., those which, in accord- 
ance with Article 79 of the Constitution have 
either signed that Act without reservation, or rati- 
fied their signatures and deposited the instruments 
of ratification with the Secretary-General of the 
United Nations. 

1. As the Government of your country has not 
yet accomplished the formalities required for 
membership by the above-mentioned article, it 
cannot at present be convoked under that provi- 
sion. But, in view of the desirability of its pres- 
ence at the Assembly, I have pleasure in inviting 
you to be good enough to appoint one or more 
observers to follow, in that capacity, the work 
of the session. I should be very grateful if you 
w'ould furnish me as soon as possible with the 
names of the observers appointed. 

May I remind you that the role of observer does 
not carry the right of taking part in the dis- 
cussions or the voting. Furthermore, no pro- 
vision has been made for reimbursement or 
expenses to this category'. 

2. However, it goes without saying that if your 
Government, as is gi'eatly to be desiied, should 
ratify and deposit the instrument of ratification 
before 24 June, it would be admitted to partici- 
pation in the work of the Assembly in the capacity 

540 



of member, with all the concomitant advantages 
and prerogatives. In case this hypothesis should 
be confirmed by the event, and in order to obviate 
any delay, I should like you to be good enough to 
consider the present invitation as a convocation 
in due and proper form. 

Thus, on the day when your Government's rati- 
fication has been received in the prescribed form, 
you will then proceed to the appointment of the 
delegation to represent your country at the As- 
sembly, and will inform me as soon as possible in 
detail of its composition. 

I take this opportunity to recall that each State 
convoked may be represented by not more than 
three delegates, one of whom should be appointed 
by the State concerned as chief delegate. The 
delegate or delegates should be chosen from among 
persons most qualified by their technical com- 
petence in the iield of health, preferably repre- 
senting their national health administrations. 
Alternates and advisers, whose numbers are not 
subject to limitation, may accompany delegates. 

I should like to add that delegates should have 
full powers to carry out their functions in accord- 
ance with the Constitution of the World Health 
Organization. In particular, in application of 
Article 24 of the Constitution, they should be 
empowered to elect the 18 States entitled to desig- 
nate a per.son to serve on the Executive Board. 
Moreover, should your country be elected, its dele- 
gation would be in a position to appoint its 
"delegate to the Board" without delay, since the 
Executive Board will meet while the Assembly is 
in session. 

I also wish to remind you that the Executive 
Board should consist of persons technically quali- 
fied in the field of health, who may be accompanied 
by alternates and advisers. 

With regard to the reimbursement of expenses 
to the various delegations, the Interim Commis- 
sion has decided that the travelling expenses of 
only one delegate of each member State shall be 
defrayed by the Organization. 

3. Documents dealing with the various tasks be- 
fore the Assembly wdl be transmitted to you 
shortly. 

I have [etc.] 

Brock Chisholm, M.D. 
Executive Secretary 

Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



North American Broadcasting Engineers' Meeting 



ARTICLE BY DONALD R. MACQUIVEY 



At the First North Aiueriean Broadcasting En- 
gineers' Conference at Habana, Cuba, in 1937 ^ 
two problems, snppression of interference and 
provision of adequate service, were the pri- 
mary concern of those who negotiated the first 
North American regional broadcasting agreement 
(Naeba). Eadio waves, of course, recognize no 
national boundaries. It is therefore absolutely es- 
sential, if the best use of the radio spectrum is to 
be realized, to agree internationally concerning the 
conditions under which these waves shall be trans- 
mitted. 

The Narba is an affirmation of international co- 
operation and an example of an international 
agreement that is really effective. Although prob- 
lems have arisen under the Naeba, there is no doubt 
that the agreement works, and it works to the 
mutual benefit of all countries concerned. An ad- 
vantage to one country in one particular instance 
is compensated by an advantage to another in an- 
other instance. The sum of all advantages ex- 
ceeds by far the disadvantages experienced, as the 
objective is not to take from one and give to an- 
other but rather to determine how each can ob- 
tain the greatest service while interfering as little 
as possible with service in other countries. 

Those in the United States Govermnent con- 
cerned with the operation of the Nakba have 
many rather definite views on how it could be 
improved, as do similarly placed persons in other 
North American countries. Some of those views 
were first expressed at the Second North Ameri- 
can Regional Broadcasting Conference held at 
Washington, D.C., in February 1946 to consider 
what should be done because of the impending 
expiration of the 1937 treaty. Persons attending 
that conference found that they had neither the 
time nor the necessary data to rewrite the treaty 
completely, and so they agreed to extend the old 
treaty by means of what is called the "interim 
agreement", modus vivendi.^ 

The interim agreement incorporated some of the 
desired modifications, but of principal interest here 
is the provision that the governments concerned 
would circulate their more complete proposals and 
that a group of radio engineers would meet at Ha- 
bana on November 1, 1947. Eight United States 
Government representatives and 10 industry ad- 
visers attended under the chairmanship of George 
E. Sterling of the Federal Communications Com- 



mission, the iNIeeting of Technicians on the North 
American Regional Broadcasting Agreement. 
Technical aspects of the proposals from the vari- 
ous countries were discussed and a number of 
agreements reached. 

Unfortunately many of the international inter- 
ference and service-expansion problems are not 
purely matters of finding the best technical engi- 
neering solution. After all, radio broadcasting is 
a means to an end, not the end in itself. If, for 
example, each among a number of political parties, 
as in Cuba, wants to sponsor its own station, the 
problem of finding radio-spectrum space is much 
more acute than would be the case if there were 
fewer stations, each prepared to serve all. 

Another question with mixed policy and en- 
gineering aspects is the question of use of clear 
channels — those spots in the broadcast frequency 
band assigned almost exclusively to each of a few 
high-power stations. Many considerations not 
strictly of an engineering character must be taken 
into account in determining how best to provide 
broadcasting service to persons in sparsely popu- 
lated areas. From a purely engineering stand- 
point, without much consideration being given to 
the economics of the problem, it would be possible 
to render such service either by means of a few 
clear-channel stations or by means of a larger 
number of stations on the same frequency, each 
serving its own smaller region. An essentially 
nonengineering question related to this problem is 
whether or not clear-channel stations should be 
located in or near large cities and carry programs 
and advertising of purely local interest. There 
are many details of these clear-channel problems 
and the complexity and need to hear all contro- 
versial views have been two of the principal 
reasons why the Federal Communications Com- 
mission has conducted extensive hearings on the 
subject. A decision in the matter is essential be- 
fore any substantial amount of preparation for 
the next Noi'th American regional broadcasting 
conference can be completed. Until this and re- 
lated decisions are reached, it will be impossible 
to determine the potential interference to or from 
foreign stations on the same or adjacent channels 
to stations in this service. 



' Treaty Series 962. 

' Treaties and Other International Acts Series 1533. 



AptW 25, 1948 



541 



ACTIVITIES AND DEVELOPMENTS 

Suffice it to say that these matters could not be 
discussed at Habana without prejudice to future 
Federal Communications Commission decisions. 
The delegation was limited not only to discussion 
of the technical aspects of the proposals presented 
but also, within that limitation, it could discuss 
only those technical questions which had little or 
no bearing on the major questions yet to be decided 
at home. This situation resulted in much discus- 
sion and delay because the Mexican Delegation 
was authorized to discuss much broader policy 
matters than were the delegates from any other 
nations represented. 

In spite of these difficulties, however, the meet- 
ing proved valuable to all who attended. Certain 
technical definitions were clarified so that, when 
the terms are referred to in the future, all parties 
concerned will know exactly what is involved. 
Agreement on definitions is more important than 
may appear on the surface. For example, a pro- 
vision in the agreement on the measures to be 
taken to suppress interference from spurious 
radiations would be relatively ineffective if one 
nation considered such radiations to be only un- 
desirable harmonics of the desired signal while 
another nation considered them to be only para- 
sitic emissions not related to the desired signal in 
any particular way. It costs money to suppress 
either type. Such expenditm-es bring in no 
revenue to the station making them. Unless they 
are made, however, service from other stations will 
be degraded, if not completely destroyed. It is 
necessary that all agree, therefore, on the condi- 
tions under which action will be taken. 

The most important benefit from the meeting 
at Habana was the mutual exchange of views con- 
cerning the requirements of each nation. The 
Mexican Delegation discussed a proposal of that 
country that the broadcast band be reallocated so 
that stations providing local service would be as- 
signed frequencies at the high-frequency end of 
the band, regional stations would be assigned adja- 
cent but lower frequencies, and clear-channel sta- 
tions would be assigned frequencies at the low end 
of the band. From the single standpoint of effec- 
tiveness of propagation of radio waves for the 
purposes indicated, the proposal might well have 
been considered had its merits been known some 
two decades ago. To adopt such a plan now, how- 
ever, would cost the United States broadcasting 
industry literally millions of dollars as hundreds 
of stations would have to be shifted in frequency 
and, as a result, almost entirely rebuilt. 

The size of many of the components used in a 
broadcast transmitting system depends upon the 
frequency at which they operate. New antennas 
would have to be designed and constructed, trans- 
mitters rebuilt, and power would have to be in- 
creased in hundreds of installations in order to 
maintain consistent coverage. Worst of all would 
be the necessity of re\\orking completely the scores 



of intricate jigsaw puzzles which comprise the 
interlaced service patterns of more than 1,900 ex- 
isting stations in order to determine what fre- 
quency and service area each should have. This 
would have to be done before a single wire were 
cut. The litigation which would result staggers 
the imagination. 

As a result of the Habana discussions it was 
learned that Mexico is concerned primarily in ob- 
taining the use of two additional clear channels 
and desires to exchange two high-frequency clear 
channels now assigned to Mexico for two low- 
frequency channels. The four clear channels are 
presently used by all countries as regional channels. 
Although this is different from the original pro- 
posal of Mexico, there is still considerable question 
as to how to meet the Mexican requirements for 
additional service. 

The discussions at Habana appear, in fact, to 
indicate that the Mexican Government is consider- 
ing quite a basic change in point of view concerning 
international relations on the subject of interfer- 
ence suppression and protection accorded broad- 
casting stations. Some of its proposals would, in 
effect, allow each nation to do substantially as it 
wishes in the regulation of broadcasting so long 
as certain border conditions are maintained. 
There was, however, no detailed discussion of ex- 
actly what the border conditions would be and 
what measures would be taken by each country in 
order to assure their maintenance. It seems prob- 
able that, if a new agreement were written only in 
terms of border requirements, it would still be 
necessary to agree to adoption of certain standards 
in order to assure the maintenance of these border 
conditions. 

In this connection the United States Delegation 
suggested at Habana that serious consideration 
be given by all Narba participants to the adop- 
tion of new and relatively complete engineering 
standards and that these be kept up to date in ac- 
cordance with improvements in the art of radio 
broadcasting. 

One method of assuring that interference would 
be unlikely to occur across international boundaries 
has been to require that no stations be assigned 
to the same frequencies as clear-channel stations 
if the former are to be located within 650 miles 
of the border of the country having priority on 
the clear channel. The Mexican and Cuban Dele- 
gations reiterated a position previously expressed 
that this "enO-mile rule" should be abandoned. 

Another Mexican proposal which gave consid- 
erable concern was their desire that additional pro- 
tection be afforded within the United States to 
certain Mexican clear-channel stations, the inten- 
tion being that relatively large settlements of Mex- 
ican nationals in the southwestern United States 
would be served by these stations. The use of such 
stations for this purpose has been regulated in the 
past by the "gentleman's agreement" on radio 



542 



Department of State Bulletin 



broiidcasting signed in August 1940.^ This agree- 
ment relates to six Mexican clear channels and four 
United States clear channels and provides for the 
assignment of stations in both countries in such 
a manner that the nighttime programs of one coun- 
try can be heard in the other country without in- 
terference. It is probable that this "gentleman's 
agreement" will come up for discussion in connec- 
tion with preparation for the next Narba 
conference. 

At the Habana meeting it was also learned that 
the Cuban broadcasters desire agreement for them 
to operate stations of the so-called "I-B" class on 
12 channels which would have to be substantially 
clear. It will be extremely difficult to find a 
mutually satisfactory solution to that problem. A 
corollarj' proposal was that no clear-channel sta- 
tion in any country' should radiate more than 60 
kilowatts of power toward other nations which 
may desire to use the channel, regardless of how 
far that station may be from the country con- 
cerned. 

The United States Delegation found the discus- 
sions at Habana valuable because of the oppor- 
tunity they gave to explain and obtain substantial 
acceptance of a proposed new method for deter- 
mining the degree of interference to broadcasting 
stations known as the "50-percent root-sum-square 
exclusion rule". It would be possible under this 
rule to add new stations to a channel or modify the 
service of existing stations, provided the addi- 
tional interference to other stations on the channel 
did not amount to more than a value calculated 
according to the rule. A rule of this nature is of 
absolute necessity if the service of broadcasting 
is to be allowed to expand, because the existing 
agreement would practically have prohibited 
the operation of any new broadcasting stations in 
North America since 1941 if a certain section of it 
had been strictly observed. Such expansion as was 
possible has been only by grace of special acqui- 
escence on the part of other countries having sta- 
tions on the same channels. As a result, much 
litigation has arisen at times. 

It was also possible for the United States Dele- 
gation to present for consideration by the en- 
gineers from the other countries some new curves 
of the same type currently used to calculate the 
radiated field intensity for so-called "sky waves" 
under certain conditions. Sky waves ai'e respon- 
sible for all service (or interference) at a great 
distance from the transmitting station. Ihese 
curves take into account recent radio-propagation 
exjDerience and would be used to determine the 
radiation field strength of a radio station at dis- 
tances far enough away from the station so that 
the only signal which needs to be considered is 
the sky wave — that wave which has traveled from 
the transmitting antenna to the ionosphere high 
above the earth and has been reflected back to the 
receiving antenna. 



ACTIVITIES AND DEVELOPMENTS 

An informal discussion was held concerning the 
applicability of frequency-modulation broadcast- 
ing to the solution of some of the broadcasting 
problems in the North American region, particu- 
larly those in the lower latitudes and densely popu- 
lated areas. Although this discussion was not a 
part of the discussions concerning the North 
American regional broadcasting agi'eement and 
although the question of whether or not any pro- 
visions relating to frequency modulation should 
be included in that agreement is still unsettled, it 
was decided to exchange information on trials of 
frequency-modulation broadcasting and monitor- 
ing results obtained. There was considerable 
agreement that the noise-suppression characteris- 
tics and the propagation limitation to be expected 
from frequency-modulation broadcasting would 
help materially to provide high-quality broadcast- 
ing service to the nations located in areas of high- 
noise level and with relatively large population 
centers. 

Because the meeting was a technical conference 
and dealt, in general, with quantities quite sus- 
ceptible to measurement, there was somewhat less 
room for disagreement than would be the case at 
a nontechnical conference. Many of the engineers 
were acquainted with each other from previous 
meetings. All in all, both the United States broad- 
casting-industry I'epresentatives who assisted the 
Government Delegation immeasurably and those 
responsible Government officials who made up the 
Delegation considered the meeting highly valuable 
and essential as a preparation for the forthcoming 
conference for the purpose of rewriting the Narba. 



U.S. DELEGATION TO INTERNATIONAL 
AERONAUTICAL RADIO CONFERENCE 

[Released to the press April 14] 

The Acting Secretary of State approved on 
April 12 the composition of the United States 
Delegation to the Preparatory Conference for the 
International Administrative Aeronautical Ra- 
dio Conference which is scheduled to be held at 
Geneva, April 24-May 15, 1948. The United 
States Delegation is as follows : 

Chairman 

Arthur L. Lebel, Assistant Chief, Telecommunications 
Division, Department of State 

Vice Chairman 

Edwin L. White, Chief, Aviation Division, Federal Com- 
munications Commission 

Advisers 

James D. Flasliman, Lieutenant Colonel, Department of 
the Air Force 

Edmund V. Shores, Chief, Mobile Aeronautics Communi- 
cations Center, Civil Aeronautics Administration, 
Department of Commerce 



' Executive Agreement Series 196. 



April 25, 7948 



543 



ACTIVITIES AND DEVELOPMENTS 

The Preparatory Conference will (1) prepare a 
draft agenda for the International Administra- 
tive Aeronautical Radio Conference which is 
scheduled to open at Geneva on May 15, 1948, 
immediately followino- the Preparatory Confer- 
ence; (2) consider technical principles on which 
a frequency-assignment plan is to be based; (3) 
prepare the framework for such a plan; and (4) 
arrange for the compilation of world frequency 
requirements for aeronautical mobile services. It 
is expected that Argentina, Australia, Belgium, 
Canada, China, France, the Union of Soviet 
Socialist Eepublics, the United Kingdom, and the 
United States will be represented at this meeting. 

The International Administrative Aeronautical 
Eadio Conference, suggested by the Belgian Dele- 
gation at the Atlantic City telecommunication 
conferences, has been called by the Administrative 
Council of the International Telecommunication 
Union. This meeting will develop a world-wide 
plan for specific assignment of the individual fi-e- 
quencies included in the bands allocated to the 
aeronautical mobile services at Atlantic City. 

U.S. DELEGATION TO INTERNATIONAL CON- 
FERENCE ON SAFETY OF LIFE AT SEA 

[Released to the presa April 12) 

The Department of State announces that the 
President has designated Admiral Joseph F. Far- 
ley, Commandant of the U. S. Coast Guard, to 
serve as Chairman of the United States Delegation 
to the International Conference on Safety of 
Life at Sea which is scheduled to convene at 
London, April 23, 1948. Je&se E. Saugstad, Chief. 
Shipping Division, Department of State, has been 
designated Vice Chairman. Other members of the 
United States Delegation are : 

Adimers 

David Arnott, American Bureau of Shipping, New York 
City 

James L. Bates, Chief, Technical Bureau, Maritime 
Commission 

Martin D. Berg, Lt. Comdr., U. S. Coast Guard 

Charles L. Brand, Rear Admiral, Assistant Chief, Bureau 
of Ships, Department of the Navy 

David P. Brown, American Bureau of Shipping, New 
Yorlv City 

Raymond F. Farwell, Capt, TJ.S.N.R., U. S. Coast Guard 

Arthur R. Gatewood, Shipbuilders Council of America, 
New York City 

Robert O. Glover, Rear Admiral, Hydrographer of the 
Navy, Department of the Navy 

Hoyt S. Haddock, Executive Secretary, Cio Maritime 
Committee, Washington 

Norman R. Hagen, U. S. Weather Bureau, American Em- 
bassy, London 

Henry T. Jewell, Captain, Chief, Merchant Vessel Per- 
sonnel Division, Office of Merchant Marine Safety, 
U. S. Coast Guard 

William N. Krebs, Assistant Chief Engineer, Federal 
Communications Conunission 

J. Lewis Luekenbach, President, American Bureau of 
Shipping, New Yoi'k City 

John W. Mann, Shipping Division, Department of State 



William F. Minners, Marine Radio and Safety Division, 
Federal Communications Commission 

Charles P. Murphy, Commander, Assistant Chief, Mer- 
chant Marine Technical Division, Office of Merchant 
Marine Safety, U. S. Coast Guard 

Cliarles J. Palmer, Commander, Department of the Navy 

Edward C. Phillips, National Federation of American 
Shipping, Washington 

James B. Robertson, Jr., Office of Merchant Marine Safety, 
U. S. Coast Guard 

Harold F. Robinson, Shipbuilders Council of America, New 
York City 

Vito L. Russo, Assistant Chief, Preliminary Design 
Branch, Technical Bureau, U. S. Maritime Commis- 
sion 

George G. Sharp, Ship Architect, Society of Naval Archi- 
tects and Marine Engineers, New York City 

Halert C. Shepheard, Rear Admiral, Chief, Office of Mer- 
chant Marine Safety, U.S. Coast Guard 

H. Gerrish Smith, President, Shipbuilders Council of 
America, New York City 

Howard C. Towle, National Federation of American Ship- 
ping, Washington 

Francis H. Van Riper, Special Assistant, U.S. Maritime 
Commission 

Victor A. Wallace, Shipping Division and Office of Legal 
Adviser, Department of State 

Edward M. Webster, Commissioner, Federal Communica- 
tions Commission 

Jlorris Weisberger, Vice President, Seafarers' Interna- 
tional Union of North America, American Federation 
of Labor, New York City 

Assistant to Chairman 

Robert T. Merrill, Capt., U.S. Coast Guard Reserve 

Secreturii of the Delegation 

Henry F. Nichol, Division of International Conferences, 
Department of State 

Technical Secretary 

Lawrence D. Bradley, Jr., Lt., U.S. Coast Guard 

The Conference, which will be attended by most 
of the maritime nations of the world, has been 
called by the United Kingdom for the purpose of 
revising the international convention for the 
safety of life at sea, signed at London, May 31, 
1929. This convention established certain inter- 
national standards of ship subdivision, fire protec- 
tion, life-saving appliances, and navigational pro- 
cedures which would make shipping more safe. 
In general, these standards ai)plied only to pas- 
senger vessels. At the time they were adopted 
they represented a notable forward step in inter- 
national collaboration toward greater safety of 
life at sea. However, in the last 19 years tech- 
nical and scientific advances have been so wide- 
spread that the 1929 convention is open to im- 
provement in several directions. 

The United States prepared for the 1948 con- 
ference by setting up, early in 1945, 14 technical 
committees whose membership included represent- 
atives of government and of industry, each com- 
mittee specializing in a particular aspect of mari- 
time safety. The consolidated reports of these 
committees were circulated to all interested agen- 
cies and individuals and with some slight modi- 
fications were adopted as the United States 
proposals. 



544 



Department of State Bulletin 



In addition to improvements in the existing con- 
vention which will make for greater safety, many 
provisions previonsly applicable only to passengei' 
vessels are being extended to cargo ships as well. 
The United States proposals contemplate that the 
safety measures will be in such form as to fit 
within the framework of the International Mari- 
time Consultative Organization which has been 
reconnnended by a conference sponsored by the 
United Nations held at Geneva in February 1948. 



U.S. DELEGATION TO SIXTH DECENNIAL 
REVISION OF INTERNATIONAL LISTS OF 
DISEASES AND CAUSES OF DEATH 

[Released to the press April 16) 

The Department of State has announced the 
composition of the United States Delegation to 
the Conference for the Sixth Decennial Revision 
of the International Lists of Diseases and Causes 
of Death. This meeting is scheduled to be held 
at Paris, April 2(>-30, 1948. The United States 
Delegation is as follows : 

Chdirnian 

Halbert L. Dunn, M.D., chief. National Ofl3ce of Vital 
Statistics, U.S. Public Health Service, Federal Se- 
curity Agency 

Delegates 

George Baehr, M.D., president, New York Academy of 
Medicine, Mount Sinai Hospital, New York City 

Joseph Berkson, M.D., chief, Division of Biometry and 
Medical Statistics, Mayo Clinic, Rochester, Minn. 

Edwin F. Dafly, M.D., director. Division of Health Serv- 
ices, U.S. Children's Bureau, Social Security Adminis- 
tration, Federal Security Agency 

Paul M. Densen, M.D., chief, Division of Medical Research 
and Statistics, Veterans Administration 

Harold F. Dorn, M.D., chairman, Statistical Section, 
National Cancer Institute, U.S. Public Health Service, 
Federal Security Agency 

W. Thurber Fales, M.D., director, Statistical Section, 
Baltimore City Health Department, Baltimore, Md. 

Eugene L. Hamilton, chief. Medical Statistics Division, 
Office of the Surgeon General, Department of the 
Army 

Iwao M. Moriyama, M.D., chief. Mortality Analysis 
Section, National Office of Vital Statistics, Federal 
Security Agency 

Edward S. Rogers, M.D., dean. School of Public Health, 
University of California, Berkeley, Calif. 

Robert L. Ware, Captain (M.D.), U.S. Navy, chief. Medical 
Statistics Division, Bureau of Medicine and Surgery, 
Department of the Navy 

The Conference will consider a revision of tlie 
International List of the Causes of Death and the 
establishment of International Lists of Causes of 
Morbidity. 

An international list of causes of death was first 
established at an international conference con- 
vened by the French Government in 1900. This 
list has been revised by similar conferences held 



ACT(V/7/£S AND DEVELOPMENTS 

at ajjproximately 10-year intervals. The 1929 con 
ference decided that a useful purpose would be 
served if classification were made the subject of 
a definite convention between governments. A 
protocol was annexed to the report of the 1929 
conference, and the agreement relating to statis- 
tics of causes of death was signed on July 19, 1934. 
The delegates to the Meeting of the Interna- 
tional Commission for the Fifth Decennial Re- 
vision of the International Nomenclature of Dis- 
eases met at Paris in October 1938 and adopted 
resolutions requesting the Government of the 
United States to form a subcommittee to study 
the problem of obtaining international consistency 
in the methods of selecting the primary causes of 
death. In accordance with these resolutions an 
American subcommittee, appointed by the Sec- 
retary of State, prepared a draft report which was 
adopted with few changes by an Expert Commit- 
tee of the Interim Commission of the World 
Health Organization. With other documents, this 
amended text will serve as the basis for the work 
of the forthcoming Conference. 



PROGRAM OF FOURTH INTERNATIONAL 
CONGRESSES ON TROPICAL MEDICINE 
AND MALARIA 

The Department of State released on April 17 
the program of the Fourth International Con- 
gresses on Tropical Medicine and Malaria, which 
will be held in Washington May 10-18.^ The 
meetmgs are being sponsored by the United States 
Government and sciejitific societies to encourage 
and facilitate the pooling of useful knowledge for 
the prevention and treatment of tropical diseases. 

Organization of the Congresses is headed by 
Dr. Leonard A. Scheele, Surgeon General of the 
United States Public Health Service, who is act- 
ing as chairman. Vice chairmen are Dr. George 
K. Strode, Director of the International Health 
Division of the Rockefeller Foundation, and 
Clarke L. Willard, Associate Chief, Division of 
International Conferences, Department of State. 
Dr. Rolla E. Dyer, Director of the National In- 
stitute of Health, is program director. The enter- 
tainment committee and the exhibits committee 
are being handled respectively by Dr. Fred L. 
Soper, Director of the Pan American Sanitary 
Bureau, and Dr. E. M. Gunn, United States Army 
Institute of Pathology. Dr. Wilbur A. Sawyer, 
former Director of the International Health Divi- 
sion of the Rockefeller Foundation and Director 
of Health for Unrra, is acting for the Department 
of State in preparing and directing the program. 

' BtrLi£TiN of Apr. 11, 1948, p. 475. 



April 25, 1948 



545 



THE RECORD OF THE WEEK 



Pan American Day, a Symbol of Friendship Among Nations 



BY GEORGE V. ALLEN > 
Assistant Secretary for Public Affairs 



Because they are very much in all our minds, 
I must refer at the outset to the tragic events that 
have momentarily interrupted the deliberations 
of the Bogota conference in the last few days. I 
shall not undertake to comment extensively on 
these events. However, there are two things that 
I must say to you, knowing that they express the 
sentiments of the American people and of all of 
you here tonight. The first is that we sympathize 
from the bottom of our hearts with the people of 
Colombia in their hour of sudden tragedy and 
are confident that nothing can pi'event Colombia 
from continuing its forward march as one of the 
most progressive and respected of the American 
republics. The other is that only persons who 
have momentarily lost their perspective will allow 
themselves to believe that the occurrences in 
Bogota can represent any kind of setback to pan- 
Americanism or in any way alter its progress. 
The Ninth International Conference of American 
States will, like its predecessors over more than 
half a century, serve to knit still more closely the 
sturdy fabric of inter-American relations. 

Pan American Day, which has dawned for us 
here a few hours ahead of the calendar, is an occa- 
sion on which we celebrate friendship among na- 
tions — not friendship as an ideal only, but friend- 
ship as an accomplished fact among 21 sovereign 
states. That friendship is epitomized in this 
gathering. It is epitomized in the person of my 
good friend at this table, the Ambassador of Hon- 
duras, who, in the course of many years as the 
well-beloved representative of his country in 
Washington, has become a personal symbol of the 
friendliness and good will that animates the rela- 
tions of the good-neighbor republics. The friend- 
ship among our countries is, in fact, reflected in 
the personal respect and liking that we all feel 
for the distinguished representatives from our 
neighbor countries who have foregathered with 
us this evening. 

The answer to any question that might be raised 
as to whether we, in this country, appreciate the 
blessing of our inter- American friendship is sug- 

' Address made at a Pau Amprican dinner tendered b.v 
the citizens of Washington, D.C., on Apr. 13, 1948; re- 
leased to the press on the same date. 

546 



gested by the spontaneous manner in which citi- 
zens of Washington have organized this occasion 
as a demonstration of their active support. This 
is of the utmost significance, since it is the private 
citizens who are, ultimately, the makers of our 
foreign policy. If the citizens are apathetic, if 
they lack vision and insight into what is required 
to make and maintain peace, if they fail in their 
appreciation of what has been accomplished, then 
there is little hope for us. If, however, they dem- 
onstrate the positive vision and appreciation that 
have been manifested by the people of Washing- 
ton in the organization of this celebration, we 
cannot fail to master the future. This sort of 
demonstration is immensely encouraging to the 
officials of a government that must represent the 
people. Mr. Morris and his associates are, I think, 
to be warmly congratulated. 

Wlien, more than half a century ago, the call 
was issued for the First International Conference 
of American States, a beneficent chain-reaction 
was set off among the republics of this Hemisphere 
that has led directly to the Ninth International 
Conference of American States. The interna- 
tional atmosphere in which that Conference is 
held — and which has nothing to do with the local 
disturbances that have, for the moment, inter- 
rupted it — provides a marked contrast to the at- 
mosphere of international hostility that has sur- 
rounded some other conferences in the past two 
years. The contrast should help us not to mini- 
mize or take for granted the constructive peace 
that has already been achieved among our Amer- 
ican nations. 

In the inter-American conferences we meet to- 
gether to ai"gue, but not to quarrel. We meet to 
argue about the best means for achieving our 
common goal, which is the common welfare of the 
American peoples. By ai'gument we either per- 
suade or are persuaded. And when the conference 
adjourns, in every case that I can recall, we have 
reached agreement and are better friends than 
ever before. We acknowledge each other's good 
faith and enlightened purpose, and we have all 
learned that the price of any good agreement is 
mutual compromise. 

Because the work of every inter-American con- 
ference is the achievement of mutual compromise, 

Department of State Bulletin 



THE RECORD OF THE WEEK 



in which all participate, there is no victory on the 
part of some and defeat on the part of others. The 
reaching of agreement is, rather, a victory for all, 
since that was the common purpose. A struggle 
for power, such as we are familiar with elsewhere 
today, is a different matter. AVithin the family 
of American states, the struggle is simply for jus- 
tice and the common good. 

Conferences make news. There are other as- 
pects of our good-neighbor relations, however, 
that are certainly no less important for being, per- 
haps, less dramatic. The good-neighbor policy 
of all the American republics has grown far 
beyond the stage of talk and is being carried for- 
ward today through a wide range of active enter- 
prises that represent the constructive work of co- 
operation. I call attention to the hundreds of 
United States scientists, technicians, and experts 
of one sort or another who have been sent out by 
this Government to work shoulder to shoulder with 
the scientists, technicians, and experts of other 
governments and the hundreds of scientists, tech- 
nicians, and experts who have been sent by their 
governments to the United States to work with 
us in the solution of problems that bear on the 
common welfare of our peoples and the advance- 
ment of our civilization. 

I am privileged to be Chairman of the Inter- 
departmental Committee on Scientific and Cul- 
tural Cooperation, through which this Government 
is able to meet the requests of other American 
governments by assigning meteorologists, soil 
technicians, fisheries experts, and trained person- 
nel in a vast number of other fields to work with 
them. In cultural fields, a large program for the 
interchange of students, teachers, and publications 
has been carried forward, and this country has 
benefited substantially from the contributions that 
the other American republics have made to our 
culture by this means. Through the recently re- 
incorporated Institute of Inter- American Affairs, 
this Government is participating actively with the 
other governments in carefully planned, long- 
range action programs for national development 
in health and sanitation, agriculture, and educa- 
tion. Persons who see these Institute programs in 
the field for the first time are amazed at the extent 
and character of their accomplishments. 

These shirt-sleeve activities do not make news; 
they lack the glamour of resolutions and interna- 
tional pronouncements; but they are directly im- 
proving the lives of millions of people in the 
Hemisphere and visibly advancing our common 
civilization. The fact that they do not make news 
is, perhaps, a healthy sign in that it shows the 
extent to which we have been able to take for 
granted cooperative relations that hardly existed 
ten years ago and that have already become an 
established part of our international community 
life. These progi-ams of cooperation provide one 
solid and tangible answer to the critics who pre- 



tend that the good-neighbor policy is no more. 
The contrast between the range of our cooperation 
today and the extent of our cooperation ten years 
ago, when the good-neighbor policy was growing 
up, sufficiently refutes that silly pretense. 

Another substantial refutation is provided by 
the common preoccupation of the Bogota conferees 
today — and the conference is 7iot over — with the 
strengthening of an inter-American system that 
has been steadily growing in strength for the past 
15 years. The process of building our gooS- 
neighbor system continues year by year. It is a 
stronger, more closely knit system today than it 
was at the end of the war in 1945. It will, I am 
confident, be still stronger when the present con- 
ference in Bogota concludes its interrupted 
deliberations. 

The one concept I should like to stress above 
all others tonight is that cooperation among the 
American republics is founded, and must always 
be founded, on the concept of mutuality. All of 
the republics must help each other and must learn 
from each other. The United States can make 
and is making a positive contribution to the eco- 
nomic and social development of the republics to 
the south through means which have already been 
discussed— through lending the technical knowl- 
edge of our public-health officials, agricultural 
experts, and scientists to other American republics 
which feel that we can be of help and which ask 
us for them. 

But this is not all. We are receiving and must 
continue to receive in return the great social and 
cultural contributions which other of our sister 
republics have to offer the United States. Ef- 
fective cooperation represents the will to give and 
to receive by all parties. 

I attended an impressive reception given by 
Mrs. Truman a few days ago to the foreign 
students in and around Washington. The num- 
ber of students and government trainees from 
other American republics in this one city was a 
wonderful revelation to me. And I may add that 
the charm and good looks of the young ladies in 
the group lent an added pleasure to the occasion. 

I asked each of them to whom I talked about 
their work — what they were studying, and where, 
and how. All the while the thought kept recur- 
ring to my mind that they were contributing, per- 
haps unwittingly but very positively, to the cul- 
tural progress of the United States. Wliile they 
were obtaining their education here, we were 
gaining from them. Their cultural backgrounds 
and points of view are enriching our own. The 
literature, the art, and the music of the other 
American republics are becoming ever better 
known in the United States through the coopera- 
tive exchange that characterizes our relations with 
them. Our own culture is being substantially 
strengthened by their constructive influence and 
their contributions. We are anxious to benefit as 



Apr/7 25, J 948 



547 



THE RECORD OF THE WEBK 

much as we can from tlie long and distinguished 
cultural heritage of our sister republics. 

I sometimes think that the great Pan American 
Highway, whicli we hope will some day add so 
much to the communications network that ties us 
together, might very appropriately be called "the 
two-way passage highway". 

To one who, like myself, has for some years 
past been preoccupied with international relations 
in other parts of this turbulent globe, it is im- 
possible not to view the relations that have de- 
veloped and are continuing to develop in this 
Hemisphere with a sense of vast encouragement 
and gratification. We Amei-can republics have 



our differences, but we manage to settle those 
differences peacefully and amicably. Our friend- 
ship grows stronger in the process of their settle- 
ment. Now, when we talk about peace on earth 
we don't mean an earth on which there are no 
differences of opinion. We mean, simply, an earth 
on which differences of opinion are settled by 
peaceful means. In that light, the long-term 
achievement of the American republics is out- 
standing in history and in the context of present 
relations among nations generally. It is an 
achievement that, without due complacency, we 
can celebrate this evening with very good con- 
sciences indeed. 



Export- Import Bank To Finance Economic Development 
in Otiier American Republics 



MESSAGE OF THE PRESIDENT TO THE CONGRESS 



To the Congress of the United States : 

In recent months the United States has been 
considering a number of measures to further the 
achievement of the primary objective of our for- 
eign policy — the establishment throughout the 
world of the conditions of a just and lasting peace. 

One of the essential requirements for the at- 
tainment of that objective is continuing coopera- 
tion among the American republics and collabora- 
tion in the development of their resources and 
industries. 

Genuine friendship has long existed between the 
people of the United States and our neighbors to 
the south. This friendship has been marked by 
cultural and economic association and close co- 
operation. The people of the United States have 
strongly supported the policy of the Good Neigh- 
bor and have a special regard for the peoples of 
the countries to the south of us. 

The United States has long recognized the im- 
portance of economic and political stability in the 
Western Hemisphere. Such stability rests sub- 
stantially upon the continuation of a satisfactory 
rate of economic progress. In this respect, we must 
fairly recognize that the economies of the other 
American republics are relatively undeveloped. 
In these countries, natural resources are abundant, 
but the expansion of production has been restricted 
due to the lack of capital and of modern production 
methods. Production can be increased only by 
means of a considerable volume of capital invest- 
ment in transportation and power facilities, proc- 
essing plants and other installations. 

To some extent the need for capital in these coun- 
tries is met by domestic savings, but such savings in 
general are insufficient to secure the necessary 
equipment and technical skills. Substantial and 
continued progress in the development of the re- 

548 



sources and industries of the other American re- 
publics therefore requires foreign financing. The 
United States, by reason of its close relations with 
these countries and its strong economic position, 
is the principal source to which the other American 
republics look for equipment, materials, and tech- 
nology as well as for their financing. 

I recommend, therefore, that the Congress in- 
crease the lending authority of the Export-Import 
Bank by 500 million dollars. The proposed in- 
crease in the lending authority of the Bank would 
not involve any change in the statutory require- 
ments under which the Bank has been operating. 

This increased lending authority would place the 
Bank in a position to assist in meeting essential 
requirements for the financing of economic de- 
velopment in the other American republics. It 
would permit the Bank to make loans for well- 
l^lanned development projects which are economi- 
cally justified and to cooperate most effectively 
with private funds. 

Such an increase would not, of course, be a sub- 
stitute for necessary action that the other Ameri- 
can republics can and should take to attract private 
investment capital and to mobilize fully their own 
investmei^t resources. 

The proposed increase represents, I believe, an 
important step which this Government should take 
to assist the economic development of the countries 
to the south of us. 

It is of great importance to the United States, 
as a member of the American community, that 
there be continued expansion of production, in- 
creasing trade activity, and rising standards of 
living in the other American republics. It is in 
our nuitual interest to help develop in the countries 
to the south those essential materials which are 
becoming less abundant in the United States, as 

Department of State Bulletin 



THE RECORD OF THE WEEK 



well as others regularly imported from distant 
regions. 

Above all, it is in our mutual interest to assist 
the American republics to continue their economic 
progress, which can contribute so much to the 
cooperative strength of the independent American 
republics. 

I request the Congress, therefore, to give favor- 
able consideration to the proposed increase in the 
lending authority of the Export-Import Bank. 

Harry S. Truman 

The White House, 
Apiil 8, 194.8. 



Commitment for Reconstruction in 
Colombia Approved 

The Board of Directors of the Export-Import 
Bank of Washington announced on April 15 the 
approval, at a special meeting, of a commitment of 
10 million dollars to the Republic of Colombia to 
assist tliat Government in financing the acquisition 
of United States supplies, materials, and equipment 
needed for the speedy reconstruction of properties 
destroyed or damaged in the recent disturbances in 
Colombia. Details as to requirements and arrange- 
ments vs'ill be worked out on a mutual basis. 



U.S.S.R. Rejects Procedure for Drafting of Protocol to Italian Treaty 

MEMORANDUM FROM THE U.S.S.R. 



No. 79 [Translation] 

With reference to the memorandum of the De- 
partment of State of March 20 and in reply to the 
note of the Department of State of April 9 the 
Soviet Embassy has the honor to communicate the 
following. 

In connection with the urgency of the question 
mentioned in the note of April 9 the Embassy 
deems it necessary to point out that in the memo- 
randum of the Department of State of March 20, 
to which reference is made in said note, no indica- 
tion is contained of the urgency of this question. 

Simultaneously, the Soviet Government draws 
the attention of the Department of State to the 
fact that the treaty of peace with Italy, as with 
other states that participated in the war, was pre- 



pared by the Council of Foreign Ministers and ex- 
amined in detail at the Paris Conference, with the 
participation of 21 states, which subsequently 
signed and ratified it, and that it entered into force 
only several months ago. 

Hence it stands to reason that the proposal to 
decide the question of the revision of the treaty of 
peace with Italy in respect to one or another of its 
parts by means of correspondence or the organiza- 
tion of private conferences is considered unaccept- 
able by the Soviet Government as violating the 
elementary principles of democracy. 

Embassy of the Union of 
Soviet Socialist Republics 
Washington, April 13, 1948 



U.S. REPLY TO THE U.S.S.R. 



[Released to the press April 15] 

The Acting Secretary of State presents his 
compliments to His Excellency the Ambassador of 
the Union of Soviet Socialist Republics and has 
the honor to refer to the Soviet Embassy's memo- 
randum No. 79 of April 13, 1948, concerning the 
return of the Free Territory of Trieste to Italian 
sovereignty. 

Wliile regretting that the Soviet Government 
has not found it possible to act favorably in this 
matter, the Government of the United States is at 
a loss to understand why the procedure suggested 
for the negotiation of a draft protocol to the Ital- 
ian Treaty is considered unacceptable. It was the 
intention of the Government of the United States 
that the preliminary meeting of the powers i^rin- 
cipally concerned to negotiate a draft protocol 
should be followed by consultation with all other 
interested governments. In the view of the Gov- 



ernment of the United States the suggested pre- 
liminary meeting is in fact the first step of the pro- 
cedure followed in the drafting of the Treaty of 
Peace with Italy. As pointed out in the Soviet 
Embassy's memorandum the Treaty of Peace was 
prepared by the Council of Foreign Ministers and 
subsequently submitted for the consideration of the 
twenty-one states at the Paris Conference. 

Should the Soviet Government find it possible 
to agree in principle to the return of the Free Ter- 
ritorj"- of Trieste to Italian sovereignty the Gov- 
ernment of the United States will be glad to con- 
sider any suggestions which the Soviet Govern- 
ment may have regarding the procedure for the 
drafting of the necessary protocol to the Italian 
Treaty. 

Department of State, 

Washington, April 16, 1948. 



April 25, 1948 



549 



Treaty off Friendship, Commerce, and Navigation With Italy 
Transmitted to the Senate 

PRESIDENT'S LETTER OF TRANSMITTAL 



[Released to the press April 14] 

The President on April 14 transmitted to the 
Senate, for the purpose of obtaining that body's 
consent to ratification, the treaty of friendship, 
commerce, and navigation between the United 
States and Italy, signed at Rome February 2, 1948. 
The President recommended early Senate action 
on the treaty, as follows : 

To the Senate of the United States: 

With a view to receiving the advice and con- 
sent of the Senate to ratification, I transmit here- 
with a treaty of friendship, commerce and naviga- 
tion between the United States of America and 
the Italian Republic, together with a protocol and 
an additional protocol relating thereto, signed at 
Rome on February 2, 1948. 

The enclosed treaty, together with the two re- 
lated protocols, was negotiated on a basis of com- 



plete equality between the two Governments. It is 
comprehensive and is designed to provide an effec- 
tive basis for the future development of cultural, 
business, and trade relationships between the two 
countries. I consider that this treaty is an im- 
portant manifestation of the friendly relations 
which exist between this country and post-Fascist 
Italy and that it confirms the determination of the 
two Governments to apply in their economic and 
cultural intercourse the liberal principles that are 
fundamental to the democratic way of life. I com- 
mend it to the early consideration of the Senate, 
I transmit also, for the information of the Sen- 
ate, a copy of each of two notes, signed and ex- 
changed on the same date, and a report on the 
treaty made to me by the Acting Secretary of 
State.i 

Haert S. Truman 



SUMMARY OF PROVISIONS 



[Released to the press April 14] 

The new treaty is designed to provide an effective 
legal framework for economic intercourse between 
the United States and Italy, such a framework 
having been lacking since December 1937 when a 
former commercial treaty, concluded in 1871, was 
terminated by mutual consent. It is regarded by 
the Department of State as a significant step in 
strengthening the cordial relations between the 
United States and Italy. It is the first instrument 
of the type that has been signed by Italy since the 
war. 

The present treaty is similar to treaties now in 
force between the United States and a number of 
countries. In agreeing to it, Italy accepts the lib- 
eral principles of business and commercial inter- 
course which the United States is seeking to ad- 
vance through the proposed charter for an Inter- 
national Trade Organization, as well as through 
the conclusion with other countries of bilateral 
treaties of friendship, commerce, and navigation 
embodying like principles. It is believed that the 
present instrument creates a framework M'ithin 
which business, trade, and cultural relations may, 
through liberal principles, develop effectively and 
to the mutual advantage of the two countries. 



' Not tiere printed. 
550 



In keeping with earlier treaties and agreements, 
the new treaty contains pi'ovisions relating to entry 
and residence, the protection of persons and prop- 
erty, the tenure and disposition of real and per- 
sonal property, religious activities, importation 
and exportation of goods, customs administration, 
transit rights, and the treatment of shipping. 
Certain new provisions have been added, however, 
and certain provisions which appear in earlier 
treaties have been broadened in order to deal more 
effectively with needs arising from recent develop- 
ments in international economic relations. New 
or revised provisions deal, among other things, 
with the status of corporations, certain cultural 
activities, benefits under workmen's compensation 
and insurance laws, and the protection of private 
enterprises in competition with state-controlled 
enterprises. 

Of significance is the inclusion in this treaty of 
provisions relating to freedom of information 
which are new to treaties of friendship, commerce, 
and navigation. In article 2, the two Governments 
affirm their adherence to the principles of freedom 
of the press and of free interchange of informa- 
tion and provide for the practical application of 
these principles by granting to the nationals and 
corporations of each other the right freely to 
gather information and to transmit material for 
publication abroad. 

Deparlment of State Bulletin 



Two protocols accompany the treaty. One is 
intended to clarify and construe certain provisions 
of the treaty. The otlier, designed to help Italy 
deal with postwar economic and financial diffi- 
culties, permits tlie imposition for certain purposes 
of quantitative restrictions on imports and exports 
and allows the use of internal controls in the dis- 
tribution of goods in short supply. Notes ex- 
changed at the time of signing the treaty consti- 
tute a declaration that the two countries will seek 
at an appropriate time in the future to enter into 
arrangements to promote closer cultural I'elations, 
particularly through the exchange of students, 
teachers, and professional people. 

The treaty was negotiated over a period of sev- 
eral months at Rome by members of the staff of the 
American Embassy and an Italian commission 
headed by Ivan Matteo Lombardo. 



Italian Claim for Restitution of Gold Allowed 

[Released to the press April 12] 

The Tripartite Gold Commission in Brussels, 
which decides about recognition of claims to mone- 
tary gold that was taken from a number of Eu- 
ropean countries by the Nazis, has decided to allow 
almost in full the Italian claim for the restitution 
of gold taken from Italy by the Nazis. Only a 
part of Italy's claim was recognized at the time 
the Gold Commission made its first distribution of 
looted gold recovered in Germany. The recent de- 
cision of the Gold Commission means that Italy 
will soon receive about 31 million dollars' worth of 
gold in addition to 4 million dollars allocated to 
her on the occasion of the first distribution, Oc- 
tober 17, 1947. Italy is participating on the same 
basis as the ten other claimant countries, on a pro 
rata basis to the extent that recovered looted gold 
becomes available for distribution. 



Sources of Scrap Metal for Italy 

[Released to the press April 7] 

Reports have appeared in the Italian press that 
scrap iron and steel is at present being exported 
to the United States despite the fact that Italy is 
badly in need of scrap. Under the European Re- 
covery Program, Italy indicated that she would 
have to import 700,000 tons of scrap in 1948. 

The scrap which is at present being shipped 
from Italy to the United States is material which 
was originally sold by the United States Army in 
Germany to an American firm, the Canterbury 
Corporation of Delaware, with a specific proviso 
that it be returned to the United States whei'e 
scrap is also in exceedingly short supply. The 
contract was made in May 1947 and covered 147,000 
tons of United States Army scrap derived from 
such material as landing mats, vehicles, et cetera. 
Of the 147,000 tons, approximately 27,000 were 

April 25, 1948 



THE RECORD OF THE WEEK 

shipped to Italy for preparation and transship- 
ment. It was never intended that this material 
would remain in Italy, and in shipping it there 
in the first place it was hoped to give employment 
to Italian facilities and workers. No Italian scrap 
is being shipped to the United States. 

The United States recognizes the urgent need of 
the Italians for scrap and the fact that the output 
of steel in Italy as well as production in the metal- 
fabricating industries are to a considerable extent 
dependent on adequate supplies of scrap for Ital- 
ian steel furnaces. In recognition of this situation, 
some 80,000 tons of captured German ammuni- 
tion and American ammunition are being made 
available to Italy from the United States zone of 
Germany for use as scrap. In addition, about 80,- 
000 tons of ship scrap has recently been made avail- 
able to Italy by the United States Maritime 
Commission. 

An additional important source of scrap metal 
has been made available to Italy by the United 
States through this Government's renunciation of 
its allocation of excess Italian Naval vessels. This 
action by the United States has contributed to the 
Italian economy more than 40,000 tons of unusu- 
ally valuable scrap material at no cost whatsoever 
to the Italian Government. 



American Scientists To Survey 
Southern Italy and Sicily 

The United States Government has sent two 
prominent officials of the Departments of Agricul- 
ture and the Interior on a survey trip to southern 
Italy and Sicily on the invitation of the Italian 
Government.^ 

Dr. Max A. McCall, Assistant Chief of the 
Bureau of Plant Industry, Soils, and Agricultural 
Engineering of the Department of Agriculture, 
and Mr. George E. Tomlinson, Assistant Director 
of Project Planning of the Bureau of Reclama- 
tion, Department of the Interior, arrived in Rome 
April 13 for the purpose of conducting jointly with 
Italian scientists in the same fields an inquiry into 
possibilities of developing industry and expand- 
ing agricultural production in southern Italy 
through hydroelectric, irrigation, and land-recla- 
mation projects. 

After preliminary discussions in Rome on the 
13th, the American experts together with their 
Italian colleagues proceeded to Naples to meet with 
technicians of south Italy and inspect projects in 
the vicinity of Naples. After a brief return to 
Rome, the group will make a detailed tour of 
Sicily and southern Italy. The inquiries being 
made by Dr. McCall and Mr. Tomlinson and the 
Italian officials are preliminary to later detailed 



' Bulletin of Apr. 11. 1918, p. 4G8. 



551 



THE RECORD Of THE WBBK 

consideration of specific projects by a larger group 
of professional scientists. 

The need for projects of the type under study in 
southern Italy has long been recognized. Ever 
since the end of Fascism, the Italian Government 
has felt the increasing urgency of coping with the 
problems presented by this area. It has therefore 
requested help from the United States in alleviat- 
ing the situation along lines which have been 
developed to the immense benefit of farmers in 
similar areas in this country. 



Coal Exports to Italy To Aid 
Gas-Producing industry 

[Released to the press April 14] 

The Italian Purchasing Mission in Washington 
has been authorized to proceed immediately with 
purchase of emergency supplies of United States 
coal vitally needed for the Italian gas-producing 
industry. 

Even though full-scale production of coal has 
not yet been resumed in this country, this action 
was taken because the Italian Government has in- 
formed the United States Government that the 
gas-producing industry of Italy is faced by a 
reduction in operation unless additional coal sup- 
plies are obtained. 

The coal will be licensed for export by the De- 
partment of Commei'ce under the "hardship" 
provision of the recent order suspending bitumi- 
nous-coal export licenses as a result of the coal- 
production stoppage. 



Chilean Technologist Awarded 
Grant-in-Aid 

Francisco Mardones Otaiza, of Santiago, Chile, 
director of tlie National Institute of Teclinological 
Research and Standards, arrived in Washington 
April 8 for a six weeks' visit as the recipient of a 
grant-in-aid from the Department of State under 
the program administered by the Division of 
International Exchange of Persons for the inter- 
change of specialists and professors with the other 
American republics. The purpose of his visit, 
which is being planned in cooperation with the 
Bureau of Standards of the Department of Com- 
merce, is to familiarize himself with the organiza- 
tion and the functions of the Bureau of Standards. 
On his return to Chile he expects to organize an 
Office of Weights and Measures. On his present 
visit Mr. Mardones hopes to awaken interest in 
this country in the creation of an Inter-American 
Committee of Standards. There is already in 
existence, as an organ of the United Nations, an 
International Standard Organization (Iso), but 
as yet the only countries of the Western Hemi- 
sphere to join it are the United States, Brazil, 
Chile, and Canada. 



552 



Settlement of Lend-Lease Account With Brazil 

[Released to the press April 15] 

On behalf of the Brazilian and United States 
Governments, Ambassador Carlos Martins and 
Acting Secretary Lovett on April 15 signed a final 
settlement arrangement, within the terms of the 
Brazilian lend-lease agreement, whereby Brazil 
undertakes to pay to the United States a balance 
due of approximately $35,000,000 United States 
currency. 

The following remarks were addressed to the 
Brazilian Ambassador by the Acting Secretary of 
State : 

"The signing of this lend-lease settlement ar- 
rangement with the Government of Brazil reminds 
me again of the timely contributions made by the 
other republics of the Western Hemisphere to the 
final victory achieved over the forces of the Axis 
aggressors, but I am especially mindful of the 
close cooperation extended us by the Government 
of Brazil. This is the more gratifying because it 
is just one more very tangible manifestation of the 
Pan American way of doing things — a result of 
adherence to the democratic principle that, 
through mutual confidence and i-espect, inter- 
national amity is possible of attainment. 

"Lend-lease, itself, was strong irrefutable evi- 
dence of the forceful influence and power of inter- 
American cooperation during those anxious years. 
The simple manner of the working out of this 
settlement arrangement of the Brazilian lend- 
lease account is abiding evidence of a continuing 
spirit of international confidence and common 
respect through which friendly peoples may seek 
and find, between themselves, the answers to all 
such problems affecting our mutual interests." 



Grants for Burma Under Fulbright Program 

[Released to the press April 13] 

The Department of State and the Board of 
Foreign Scholarships announce opportunities for 
two Americans to receive grants to teach in Bur- 
mese schools in the field of agricultural extension. 
The grants will be awarded under the provisions 
of Public Law 584, 79th Congress, the Fulbright 
act. They will be paid in Burmese currency, and 
it is expected that this payment will include sal- 
ary, maintenance, and travel, provided no changes 
are made in the present Burmese currency regula- 
tions. 

The grants will be available for persons experi- 
enced in agricultural extension work to teach in 
the Village Teacher Training School at Taunggyi 
and in the Post-Primary School at Myitkyina. 
The School at Taunggyi is located in the capital 

Department of State Bulletin 



of the Shan State in the Union of Burma, which 
is composed of 30 smaller states. Each of these 
smaller states has its own system of schools, but 
the Village Teacher Training School serves the 
whole of the Shan area in the training of teachers 
for adult-education work. The school at Myit- 
kyina is the chief high school of the Kachin State. 
It is the principal institution in that area in which 
students can prepare for college and university 



THE RECORD OF THE WEEK 

work. Both schools accept graduates of primary 
schools located throughout the Shan and Kachin 
States. A knowledge of the Burmese language 
will not be required. 

Application blanks are available at the Division 
of International Educational Relations, United 
States Office of Education, Federal Security 
Agency, Washington 25, D.C. The deadline for 
the receipt of applications is May 15, 1948. 



Negotiations for Revision of Trade Agreement With Mexico 



[Released to the press April 13] 

Negotiations for the revision of schedule I of 
the trade agreement between the United States 
and Mexico will be initiated at Mexico City next 
week, probably on Tuesday, April 20. Schedule I 
covers tariff concessions on imports into Mexico 
from the United States.^ 

Because of the many questions to which the 
Mexican trade agi-eement has given rise in this 
country in recent months, the Department of 
State believes that the following statement will 
be useful to an understanding of the aimounced 
negotiation. 

1. Several times during 1945 and 1946 the Mexi- 
can Government suggested revision of the trade 
agreement of December 1942 with the United 
States stating that circumstances since signature 
had thrown the benefits out of balance to Mexico's 
disadvantage. 

2. In 1947, the Mexican Government, impelled 
by circumstances and after consultation with this 
Government in the cases where it was required, 
took various steps to restrict imports. 

3. The circumstances impelling this action were 

(a) A marked and continuing decline in Mex- 
ico's foreign-exchange reserve largely due to an 
adverse trade balance with the United States 
contrary to the prewar situation. 

(i) Strong domestic pressure for increased 
tariffs 

(i) To protect war born industries; 
(ii) To encourage economic development; 
(iii) To change the specific duties to com- 
pound duties equivalent on an ad 
valorem basis to those applying when 
the agreement was signed in 1942. 

4. The principal steps taken by Mexico were 

(a) A prohibition, in July 1947, against imports 
of a wide range of nonessential goods including 
some items in the trade agreement with the United 
States. 



(b) A change, in November 1947, to the ad 
valorem equivalent of the duty in 1942 or higher, 
of the rates of duty on some 5000 items not in the 
trade agreement. 

5. In December 1947 it became evident that 
Mexico would raise the duty on items in the trade 
agreement. At this point the United States 

(a) Could have announced its intention of de- 
nouncing the agi'eement in the event of such action 
by Mexico or 

( b ) Could have sought a solution to the problem 
through negotiation and agreement. 

6. Denunciation of the agreement 

(a) Would have resulted in a major, and it is 
believed, unnecessary breach in United States eco- 
nomic relations with Mexico. 

(b) Would have lost for the United States the 
oi^portunity to influence the amount by which 
Mexico would increase rates and to obtain compen- 
sation for such increases by further bargaining. 

7. Therefore, after full consideration by the 
interdepartmental trade-agreements organization 
of all phases of the problem, and with over-all 
United States-Mexico relations in mind, the 
United States agreed to provisional increases in 
duties on trade-agreement items to levels equiva- 
lent, on an ad valorem basis, to those provided in 
the trade agreement when it first came into effect. 
In return Mexico agreed to negotiations intended 
to restore the balance in the agreement through 
revision of the new Mexican rates on items not 
now in the agreement. 

8. If a satisfactory adjustment of Mexican tariff 
rates should prove impossible to negotiate, the 
United States is not precluded from seeking agree- 
ment on the basis of withdrawing concessions pre- 
viously made by this country to Mexico or from 
terminating the agreement in accordance with its 
provisions. 

•Bulletin of Jan. 11, 1948, p. 59, and Feb. 15, 1948, 
p. 212. 



April 25, 1948 



551 



THE RECORD OF THE WEEK 

Second Report to Congress on 
U.S. Foreign Relief Program 

President Truman transmitted to the Congress 
on April 13 the second report on the United States 
Foreign Relief Program, which was authorized 
by joint resolution of the 80th Congress, Public 
Law 84, to provide assistance to the people of 
countries devastated by war.^ 

The countries which have received relief under 
the program are Austria, Greece, Italy, the Free 
Territory of Trieste, and China. Foods of vari- 
ous kinds, principally cereals, and seeds, ferti- 
lizer, fuel, and medical supplies have been shipped 
under the relief program. Foods represent about 
95 percent of the total cost. 

Of the $350,000,000 appropriated for this pur- 
pose, the Congress stipulated, among other things, 
that up to $40,000,000 was to be set aside as a 
contribution to the International Children's 
Emergency Fund and $5,000,000 to cover the ocean 
transportation of supplies provided by private 
American relief agencies. On December 31, 1947, 
the amount reserved for supplies to the countries 



receiving relief was $285,900,000. The value of 
shipments made totaled $229,520,292 which in- 
cluded the ocean freight. 

Shipments of supplies in the three months from 
October 1 through December 31, 1947, totaled 
3,736,813 long tons, compared to the 1,006,401 long 
tons shipped in the previous period. 

The report notes the acknowledgement of re- 
cipient countries for the part United States relief 
supplies have played in their economy. This ac- 
knowledgement has been marked by religious 
blessing ceremonies on the arrival of the first ves- 
sels in a dozen Greek ports, by ceremonies greeting 
the 200th vessel bearing relief to Italy, by the at- 
tendant newspaper and radio publicity, by colored 
posters prominently displayed in retail stores and 
elsewhere, identifying the United States relief 
supplies, or emphasizing the proportion of the 
United States contribution toward the food ration, 
or stating that the local proceeds from the sale 
of United States commodities remain in the 
country to be used for relief projects. 

^ This report was released by the Department of State 
on Apr. 13 as publication 3101. 



Transfer of Nondemilitarized Combat IVlateriel 



[Released to the press April 13] 

The following is a list of sales of surplus non- 
demilitarized and demilitarized combat materiel 
effected by the Department of State in its capacity 



as foreign surplus and lend-lease disposal agent 
during the months of July and October 1947 and 
January and February 1948, and not previously 
reported to the Munitions Division : 



Country 


Description 


Procurement cost 


Sales price 


Date of transfer 










1948 


Chile 


Miscellaneous cartridges, metallic belt links, 100-lb. 
practice bombs, and spotting assembly charges. 


$115,576.87 


$11,561.74 


Jan. 20 
1947 


China .... 


One LCI (demilitarized) to T. Y. Fong, Asia Develop- 
ment Corporation, Shanghai, China. 


373, 400. 00 


6, 500. 00 


October 
1948 


Cuba 


Miscellaneous cartridges, metallic belt links, bombs, 
fuzes, assembly fins, spotting assembly charges, 
and arming wire assemblies. 


62, 074. 60 
1, 124. 00 


6, 210. 84 
124. GO 


Feb. 6 
Feb. 6 


Peru 


Miscellaneous spare parts for combat materiel .... 


2, 899. 79 


347. 91 


Feb. 25 
1947 


Singapore . . . 


Seven LST's (demilitarized) to Tung Hwa Trading 
Co., Ltd., Singapore. 


11,324,600.00 


122, 000. 00 


1 on July 29 
6 on Oct..7 

1948 


Venezuela . . . 


Nine tank engines, 54 bundles of track assemblies, 
miscellaneous spare parts for tank, light, M3A3. 

Miscellaneous cartridges, shells, percussion primers, 
shell fins, canisters, shot, projectiles, charges, and 
signals. 


166, 096. 89 
251, 937. 73 


8, 304. 84 
18,351. 18 


Jan. 6 
Feb. 19 



554 



Department of State Bulletin 



ITU Council Session — Conlinucd from page 535 

States and other delegations as to the basis on 
which the Board should operate. It was agreed 
that the report with the necessary background 
papers giving both sides of the picture should be 
circulated to tlie members of the Union. 

Finally, questions of principle and precedent 
arose, and much of the time of the Council, par- 
ticularly during the first week, was spent in inter- 
preting the provisions of the new convention of 
Atlantic City, in order to obtain a basis for action 
on the administrative, budgetary, and political 
problems which confronted it. 

It had been agreed at Atlantic City that the ses- 
sions of the Council should not last longer than 
three weeks. It had also been intended originally 
that the Council should meet once a year. It was 
necessary, however, to defer consideration of so 
many important items on the agenda of the second 
session until tlie third session that it was decided 
to open the third session at Geneva on September 
1, 1!)48._ 

The idea of an Administrative Council for the 
International Telecommunication Union was 
evolved by the United States preparatory groups 
as far back as 1943. It was a part of the general 
belief in this country that an expanded Secretariat 
with increased duties and powers was necessary 
to meet the needs of greatly expanded telecom- 
munication services. The Bureau of the Union, 
established at the St. Petersburg conference of 1875 
in the early days of telegraphy, required moderni- 
zation. This new concept met with opposition, 
particularly on the ground of the added expense 
to the Union. This first working meeting of the 
Council at Geneva represented a test of the United 
States ideas, and the results seem to vindicate the 
judgment of the creators of the new structure. 

The atmosphere in the Council was most 
friendly and cooperative. The representatives 
took their work seriously, and at all times acted 
more as trustees for the whole Union than as a 
group of representatives of specific countries. 
There was a general disposition to avoid political 
discussions since the Union is intended to be pri- 
marily a service organization. When political 
questions did arise they were solved with a mini- 
mum of friction. 

The representatives on the Council, with one 
exception, were chosen in accordance with the dic- 
tates of the Atlantic City convention that they 
should be qualified in telecommunication matters. 
They evidenced a very strong inclination to keep 
the Council on a high plane and opposed any sug- 
gestion which would have lessened its dignity. In 
view of the leading position taken by this Govern- 
ment in setting up the Council, this inclination to 
vest the Council with a dignity consistent with its 
fimctions was most encouraging. 

April 25, 1948 



THE RECORD Of THE WEBK 

PUBLICATIONS 



Department of State 

For sale by the Superintendent of Documents, Oovemment 
Printinn Office, Washhipton 25, D.C. Address requests 
direct to the Superintendent of Documents, except in the 
case of free publications, which may be obtained from the 
Department of State. 

UNESCO and You. International Organization and Con- 
ference Series IV. Pub. 2904. (Keprint.) vi, 41 pp 
15«f. 

Questions and answers on the How, What, and Why 
of UNESCO — together with a six-point program for 
Individual action. 

Information for Bearers of Passports. January 1, 1948. 
Passport Series 7. Pub. 3012. iv, 65 pp. Free. 

Information of interest to American citizens, deal- 
ing with loss of nationality and with their status in 
certain countries with which the United States has or 
has not concluded treaties of naturalization. 

Passport and Visa Information for Clerks of Courts 
Who Take Passport Applications, 1948. Passport Series 
8. Pub. 3029. 17 pp. Free. 

Replaces edition of 1947. 

Publications of the Department of State, January 1, 1948. 
Pub. 3030. 56 pp. Free. 

A semi-annual list cumulative from October 1, 1929. 

Postal Union of the Americas and Spain. Treaties and 
Other International Acts Series 1680. Pub. 8043. 51 
pp. 15^. 

Convention, and Final Protocol and Regulations of 
Execution of the Convention, Between the United 
States and Other Governments — Signed at Rio de 
Janeiro September 25, 1946 ; entered into force Janu- 
ary 1, 1947. 

Second Report to Congress on the United States Foreign 
Relief Program, for the quarter ended December 31, 1947. 
Economic Cooperation Series 5. Pub. 3101. v, 62 pp. 250. 

Report to the Congress on the U.S. Foreign Relief 
Program, under Public Law 84, approved May 31, 1947, 
which authorized an appropriation for relief assist- 
ance to the people of countries devastated by war. 

Work of the United Nations Good Offices Committee in 
Indonesia. International Organization and Conference 
Series III, 4. Pub. 3108. 14 pp. Free. 

An article and documents relating to the Indonesian 
situation. 

The United States Reciprocal Trade- Agreements Program 
and the Proposed Trade Organization. Commercial Pol- 
icy Series 112. Pub. 3112. 7 pp. 10«;. 

Havana Charter for an International Trade Organization 
and Final Act and Related Documents, March 24, 1948. 
Commercial Policy Series 113. Pub. 3117. viii, 77 pp. 

25««. 

Final text of the charter to be submitted to the 
governments represented at the Havana conference 
for their acceptance. 

555 



Economic Affairs Page 

Second Session of the Administrative Coun- 
cil of the International Telecommunica- 
tion Union. Article by Helen G. Kelly . 534 

North American Broadcasting Engineers' 
Meeting. Article by Donald R. Mac- 
Quivey 541 

U.S. Delegation to International Aeronau- 
tical Radio Conference 543 

U.S. Delegation to International Conference 

on Safety of Life at Sea 544 

U.S. Delegation to Sixth Decennial Revision 
of International Lists of Diseases and 
Causes of Death 545 

Program of Fourth International Congresses 

on Tropical Medicine and Malaria . . 545 

Export-Import Bank To Finance Economic 
Development in Other American Re- 
publics. Message of the President to 
the Congress 548 

American Scientists To Survey Southern 

Italy and Sicily 551 

Italian Claim for Restitution of Gold Al- 
lowed 551 

Sources of Scrap Metal for Italy 551 

Coal Exports to Italy To Aid Gas-Producing 

Industry 552 

Transfer of Nondemilitarized Combat Ma- 
teriel 554 

The United Nations and 
Specialized Agencies 

U.S. Regards Information to Security Coun- 
cil on Political Developments in Czecho- 
slovakia Necessary. Statement by Am- 
bassador Warren R. Austin 536 

U.S. Observers Invited to World Health As- 
sembly. Text of Letter From the Exec- 
utive Secretary of the Interim Commis- 
sion of Who to the U.S. Representative 
on the Commission 540 



Occupation Matters Page 

Significance of Textiles in the Japanese Econ- 
omy. Article by Stanley Nehmer and 
Marguerite C. Crimmins 527 

General Policy 

Pan American Day, a Symbol of Friendship 

Among Nations. By George V. Allen . 546 

Commitment for Reconstruction in Colombia 

Approved 549 

Treaty Information 

U.S.S.R. Rejects Procedure for Drafting of 
Protocol to Italian Treaty: 

Memorandum From the U.S.S.R 549 

U.S. Reply to the U.S.S.R 549 

Treaty of Friendship, Commerce, and Naviga- 
tion With Italy Transmitted to the 
Senate: 
President's Letter of Transmittal .... 550 

Summary of Provisions 550 

Settlement of Lend-Lease Account With 

Brazil 552 

Negotiations for Revision of Trade Agree- 
ment With Mexico 553 

International Information and 
Cultural Affairs 

Chilean Technologist Awarded Grant-in- 

Aid 552 

Grants for Burma Under Fulbright Pro- 
gram 552 

The Congress 533 

Publications 

Second Report to Congress on U.S. Foreign 

Relief Program 554 

Department of State 555 



The article on the significance of textiles in the Japanese economy 
is by Stanley Nehmer, re.search anal.yst in the Division of Research 
for Far East, Office of Intelligence Research, Department of State, 
and by Marguerite C. Crimmins, who was formerly a research analyst 
In that office. 

Helen O. Kelly, author of the article on the second session of the 
Administrative Council of the International Telecommunication Union, 
is an officer in the Telecommunications Division, Department of State. 
Miss Kelly served as adviser to the United States Delegation to the 
second session of the Administrative Council. 

Donald R. MacQuivey, author of the article on the North American 
Broadcasting Engineers' Meeting, served as vice chairman of the U.S. 
Delegation to the conference. Mr. MacQuivey is an officer of the 
Telecommunications Division, Office of Transport and Communications, 
Department of State. 



U. «. COVEBNHEHT PIINTIMC OFFICE. I94t 



^ne/ ^e^ioT^tm^en^ ,o£ t/taCe^ 





FflTIfcTH ANNWEtlSARY OF CUBAN ESDEPEND- 

ENCF * Iddresa by the President to the Congress , 



INTERNATIONAL LAW AiND THE EUROPEAN RE- 
COVERY PROGRAM • By ErnestA. Cross, Legal Adviser . 



GERMAN CONSTITUTIONS • An Article . . 



359 



For complete contents see back cover 



Fol. XVIII, No. 461 

May 




^.NT o. 




*^<.^y*. bulletin 



Vol. XVIII, No. 461 • Publication 3132 
May 2, 1948 



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The Department of State BULLETIN, 
a weekly publication compiled and 
edited in the Division of Publications, 
Office of Public Affairs, provides the 
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the Government with information on 
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partment of State and the Foreign 
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ment, and statements and addresses 
made by the President and by the 
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well as legislative material in the field 
of international relations, are listed 
currently. 



GERMAN CONSTITUTIONS 



An article 



A A-ohime has been prepared by the Civil Ad- 
ministration Division, Omgus, of the German text 
and English translation of the constitutions of 
the German states of Bavaria, Bremen, Hesse, and 
WiJrttemberg-Baden in the U.S. zone; Baden, 
Rhineland-Palatinate, and Wiirttemberg-Hohen- 
zollern in the French zone; and Brandenburg, 
Mecklenburg, Saxony, Saxony-Anhalt, and Thu- 
ringia in the Soviet zone. In the British zone, the 
constitutions of the states of Lower-Saxony, 
North Rhine-Westphalia, Schleswig-Holstein, and 
the city of Hamburg were still under consider- 
ation. 

The division of Germany into four zones of oc- 
cupation made for significant differences in these 
constitutions. Within the U. S. zone, there is 
considerable diversity due to the fact that dif- 
ferent political parties exercised varying influence 
in the states and that Military Government did 
not try to interfere with the deliberations of the 
bodies which drafted the texts. In both the 
French and the Soviet zones, the constitutions are 
more imiform since one political philosophy pre- 
vailed in shaping their articles — that of the 
Christian Democratic Parties in the French zone 
and that of the Socialist Unity Party in the Soviet 
zone. 

In spite of these differences, there are obvious 
similarities in all of the constitutions. Basically, 
the results of German thought and continental 
concepts of cabinet government and of parliamen- 
tary practice are applied in all of them. 

In some respects these constitutions cannot ex- 
press the realities of powers and competences. 
The amount of jurisdiction reserved to Military 
Goverimient varies greatly in the different zones. 
It is undoubtedly smallest in the U.S. zone. In 
economic matters the bizonal organization is exer- 
cising considerable central authority over the 
states. Since there is no central German gov- 
ernment and no German agreement on its struc- 
ture and jurisdiction, the distribution of powers 
between the states and a future federal govern- 
ment cannot be regarded as final. But all con- 
stitutions assume that the individual states will 
be part of a future Germany. 

For aU these limitations on their practical im- 
portance, the constitutions represent a genuine 
German effort to order the political and official 
life of the state. They express the ideological 
forces which are evident in modern society, with- 
in the setting of a defeated and divided country. 

May 2, 7948 



In many respects they are not only an indication 
of present problems but also a preview of the 
constitutional debates which may be expected in 
the period of federal reconstruction, which, one 
hopes, lies ahead. 

The occupation forces which took over the U. S. 
zone in May 1945 were confronted with political 
and administrative chaos as the result of the col- 
lapse of the whole Nazi system. Democracy, as a 
political theory, as a personal philosophy, and as 
a system of governmental organization, had almost 
disappeared under the force of National Socialist 
theory and practice. Basic laws, administrative 
personnel, and daily operations alike had been 
thoroughly nazified. 

Government and party had become so com- 
pletely enmeshed and comingled that action which 
was immediately undertaken to destroy the Nazi 
Party inevitably paralyzed many essential public 
services. The German people as a whole had 
neither the energy nor the tools with which to 
create and support a democratic government. The 
occupation forces had to start rebuilding from the 
ground up. 

Ill the months which have elapsed since the con- 
clusion of hostilities, the U. S. Military Govern- 
ment endeavored to assist the Germans in their ef- 
forts to revive the will to democracy and to assist 
that will to express itself in practical political, 
economic, and social forms. Vital to this broader 
effort was the specific program for creating demo- 
cratic political processes and institutions. 

Basic also was the necessity of appointing public 
officials on all levels of government who, as trus- 
tees for the German people, would begin the long 
process of reestablishing popular government. 
These officials had to carry the dual responsibilities 
of preparing for a more stable period of demo- 
cratic controls and exercising the interim func- 
tions of government. 

The first step in the reestablishment of democ- 
racy was the reorganization of local and state 
units of government. At the outset it was neces- 
sary that German officials of all levels should work 
under the detailed direction and control of Mili- 
tary Government officers, but a degree of independ- 
ence and responsibility was rapidly developed, 
first in local and then in state governments. At 
the suggestion of Military Government, the three 

Editor's Note: This article on the German constitu- 
tions is reprinted from the Information Bulletin, magazine 
of U.S. Military Government in Germany, issue of Mar. 
9, 1948, p. 3. 

559 



states prepared municipal government codes 
which were reviewed, revised, and appi'oved by 
Military Government in November 1945. 

Codes for county government were approved in 
February 1946. Thus the necessary legal founda- 
tions were laid at municipal and county levels. 
The next step was the introduction of popularly 
elected local representative bodies. In September 
1945 a schedule of elections was prepared under 
which municipal councils were elected in January 
1946; councils in the rural counties in April 1946; 
and in the larger cities in May 1946. 

It still remained to frame the structure for 
democratic state governments, each with an elected 
legislature, a responsible executive, and an inde- 
pendent judiciary. The aim was to clothe the state 
governments with authority and to charge them 
with responsibility to the greatest extent com- 
mensurate with the continued military occupation 
of Germany and the attainment of occupation ob- 
jectives, bearing in mind that no central German 
government existed to exercise those powers which 
must be centrally vested. 

In February 1946 the three ministers-president 
were authorized to appoint preparatory constitu- 
tional commissions. These commissions reviewed 
constitutional problems and prepared draft con- 
stitutions for consideration by state constitutional 
assemblies. The delegates to these assemblies were 
elected by popular vote on June 30, 1946, and be- 
gan their work in the following month. 

The constitutions of the states in the U. S. zone 
are German in origin, spirit, and preparation. 
They spring from no Military Government dictate 
but from the needs and minds of the German peo- 
ple. Military Government insisted that the rees- 
tablishment of democracy cannot spring from a 
dictated constitution, that to enlist the whole- 
hearted sujiport of the German people, the consti- 
tutions must represent their will and not that of 
the occupation forces. 

The specific process of constitution-making was 
guided by Military Govermnent only through a 
general statement of basic principles of demo- 
cratic organization which is contained in the Sep- 
tember 30, 1946, directive, entitled "Relationships 
Between Military and Civil Government (U. S. 
Zone) Subsequent to Adoption of Land Constitu- 
tions". The statement of democratic principles 
was specifically interpreted and applied to certain 
provisions of the constitutions. 

The constitutional conventions which were 
elected in June varied materially in party com- 
position. The Hesse convention consisted of 90 
members made up of 43 Social Democrats, 34 
Christian Democrats, 7 Communists, and 6 Lib- 
eral Democrats. In Wiirttemberg-Baden the 100 
members included 41 Christian Democrats, 32 So- 
cial Democrats, 17 Democratic People's Party rep- 
resentatives, and 10 Communists. 

560 



In more conservative Bavaria the 180 members 
were distributed as follows: 109 to the Christian 
Social Union, 51 to the Social Democrats, 8 to 
the Communists, 8 to the Economic Reconstruction 
Party, and 4 to the Free Democrats. Like other 
democratic constitutions, these state constitutions 
embody basic compromises dictated by conflicting 
interests. 

Rather than working through a variety of spe- 
cialized committees, as is the practice in the 
United States, the convention employed a single 
drafting committee for the preparation of the 
document which was submitted to the full assem- 
bly for action. Prior to committee action, the 
party leaders prepared agreements upon particu- 
lar articles, submitted those agi'eements to party 
caucuses, and subsequently referred the proposals 
to the drafting committee. 

The latter then approved the proposals in ac- 
cordance with prior party decisions and reported 
them to the full assembly for adoption. Assem- 
bly adoption was usually a foregone conclusion, 
but certain questions provoked lively debates and 
divisions in tlie plenary sessions. The conventions 
convened on July 15, 1946, completed the drafts of 
the constitutions about two and a half months 
later, and then recessed. 

Having been approved by the conventions, the 
constitutions were referred to Military Govern- 
ment for review in terms of the principles of 
democracy, which the latter had already estab- 
lished as the standards for constitutional ade- 
quacy. As a consequence of this review, several 
suggestions and, in some cases, several required 
changes, were forwarded by Military Government 
to the conventions. The Deputy Military Gover- 
nor then approved the constitutions subject to the 
general and special qualifications set out in his 
letters of October 21 to Wiirttemberg-Baden, 
October 24 to Bavaria, and October 29 to Hesse. 

After Military Government review and ap- 
proval, the Bavarian constitution was adopted in 
its final form by the convention on October 26, the 
vote being 136 to 14, with 30 members absent or 
not voting. Wiirttemberg-Baden on October 24 
gave final approval to its constitution by a vote of 
88 to 1, with 11 delegates absent or not voting. 
The vote in Hesse on October 29 showed 82 in 
favor, 8 opi^osed, and 2 absent. 

The state status of Bremen was not established 
until January 1947, and hence its constitution- 
making process was delayed. Due to its small 
size, the existence of an elected legislature, and 
the confusion that might result from an excessive 
number of elections, the procedure followed in the 
other states was varied by omitting the election 
of a constitutional convention and permitting the 
legislature to provide for constitution-drafting. 
In August 1947, a draft was adopted and submit- 
ted to Omgus. Approval, subject to certain gen- 

Department of State Bulletin 



eral and specific reservations, was given on Sep- 
tember 5. Two compromise articles adopted there- 
after by tlie Bremen legislature with Omgus ap- 
proval resulted in almost unanimous support for 
the constitution as it was submitted for referen- 
dum, the vote bein^ 79 to 4. 

AVhen submitted by the conventions of the three 
southern states to the people late in 1946, the con- 
stitutions were ratified. 

In Wiirttemberg-Baden 72.2 percent of the eligi- 
ble voters went to the polls ; 68.6 percent of those 
voting approved the constitution ; 10.5 percent dis- 
approved the document; and 20.9 percent of the 
ballots were invalid. 

In Hesse 72.7 percent of the eligible voters par- 
ticipated in the election, of whom 67.1 percent ap- 
proved the constitution ; 20.3 percent disapproved ; 
and 12.5 percent invalidated their ballots. As was 
required by the Deputy Military Governor's let- 
ter of approval, article 41 providing for the so- 
cialization of certain industries was subjected to 
separate popular referendum. In balloting on this 
question, 62.7 percent of the voters approved, 24.5 
percent disapproved, and 12.8 percent were 
invalid. 

In Bavaria 76.3 percent of the registered voters 
participated. The affirmative vote on the con- 
stitution was 65.7 percent; the negative, 27.2 per- 
cent; and the invalid, 7.1 percent. 

On the same dates when the constitutions were 
ratified, the state legislatures were elected. 

In Bremen in October 1947, 67.5 percent of the 
eligible voters participated in the referendum on 
the constitution, of whom 66.G percent approved, 
25.4 percent opposed, and 8 percent of the ballots 
were invalid. On the alternative wording for 
article 47 providing that works councils should 
have the right of equal co-determination with man- 
agement in economic and personnel as well as 
social questions, 48 percent approved and 44.1 per- 
cent opposed the broader language. 

Many provisions in the documents are taken 
word for word from the democratic Weimar Con- 
stitution and the constitutions of the German 
states adopted between 1919 and 1923. Other 
articles are strong reactions against the tyranny 
of the Nazi regime. Still others grow out of local 
political, economic, and social conflicts and com- 
promises. 

The legislative power is vested in a unicameral 
legislature elected by the people according to the 
principles of proportional repi'esentation. There 
is also an advisory senate in Bavaria. Provision 
is made in certain circmnstances for direct legis- 
lation by the people through initiative and referen- 
dum, including referendiun on constitutional 
amendments. The executive power is exercised 
under the direction of the minister-president and 
his cabinet who are chosen by, and responsible to, 
the legislature. 

The constitutions of Hesse and Wiirttemberg- 

May 2, J 948 



Baden clearly provide for the parliamentary form 
of government; the Bavarian constitution is some- 
what ambiguous on this point and reflects conven- 
tion sentimeiit favoring a more independent type 
of executive. An independent judiciary is estab- 
lished with a power of judicial veto which German 
court have usually lacked in the past, namely, 
to declare laws passed by the legislature un- 
constitutional. 

Each constitution contains a long bill of rights — 
rights that are guai-anteed to individuals or to 
groups, rights that are of a political, social, and 
economic character. In part, these rights are the 
traditional rights of the individual as formulated 
in the English revolution of the seventeenth cen- 
tury and the American and French revolutions of 
the eighteenth century ; in part, they are the newer 
social and economic rights so much stressed in 
twentieth-century thought. Through the ordi- 
nary courts and through the administrative courts, 
these rights will be protected against legislative 
and administrative violation. 

At the same time the constitutions recognize 
that no rights are absolute and that, particularly 
in times of emergency, restrictions are necessary. 
Among the more controversial questions dealt 
with by the constitutions are relationships of the 
states to the future German government and to 
interim authorities, such as the Council of States 
{Ldnderi'at) and the bizonal economic agencies; 
the socialization of industry; land reform; and 
problems of church and state with respect to such 
matters as state subsidies to churches, church taxes, 
and church control of public education. 

Viewed as a whole, the constitutions represent 
notable attempts by the Germans themselves to re- 
build democratic constitutionalism. The legisla- 
tures elected under the constitutions convened in 
December 1946, and each chose a minister-presi- 
dent and cabinet. Thus, at the beginning of 1947, 
20 months after the cessation of hostilities, muni- 
cipal, county, and state governments in the U. S. 
zone were all operating under democratically 
adopted constitutions and with popularly elected 
representative bodies. 

In the Soviet zone, the Soviet Military Admin- 
istration was obliged to begin managing essential 
civil services through their military commanders 
on all levels of government, utilizing such Ger- 
mans as were available and trustworthy. Coop- 
eration came most readily from former members 
of the German Communist Party and from Ger- 
mans specially trained for administrative tasks 
and in communist ideology in Russia. 

States and provinces were immediately organ- 
ized on the basis of existing traditional units. 
However, certain territorial adjustments were 
made in the interests of administrative efficiency 
and convenience. Pomerania, west of the Oder- 
Neisse line, was attached to Land Mecklenburg. 

561 



The small section of Lower Silesia which re- 
mained within the present boundaries of Ger- 
many was incorporated into the Land Saxony. 

Brandenburg was reestablished as a political 
unit, minus those parts which are now under Polish 
administration. The former independent Land 
Anhalt was joined to the Prussian province of 
Saxony, and Thuringia was extended by the in- 
clusion of a small amount of former Prussian 
territory. Enclaves existing in the zone were 
eliminated. After quadripartite agreement on the 
dissolution of the State of Prussia, the former 
Prussian provinces received state status. There 
are now five states in the Soviet Zone: Branden- 
burg, Saxony-Anhalt, Saxony, Thuringia, and 
Mecklenburg. 

Municipal and city councils were elected in Sep- 
tember 1946, and county councils and state as- 
semblies, legislatures, or parliaments, in October 
of the same year. These legislatures drafted state 
constitutions which, after review by the Soviet 
Military Administration, were promulgated be- 
tween December 1946 and the end of February 
1947. 

The constitutions of the Soviet Zone states are 
almost identical in their provisions and occasion- 
ally identical in phraseology as a result of the 
dominant position of the Soviet-sponsored So- 
cialist Unity Party. 

The legislative power is vested in a unicameral 
legislature elected by universal suffrage and secret 
ballot, according to the principles of proportional 
representation. The legislature exercises legisla- 
tive authority and control over the administration 
and the judiciary of the state. In certain specified 
cases provision is made for popular referenda. 

The executive power is exercised by a minister- 
president who is chosen by and responsible to the 
legislature. The cabinet is composed of ministers 
who are nominated by the minister-president and 
confirmed by the legislature and are individually 
responsible for their activities and must resign if 
the confidence of the legislature is withdrawn. 

A judiciary is_ established consisting of profes- 
sional and lay judges nominated by democratic 
parties and organizations and elected by the rep- 
resentative bodies. While they are subject only 
to law, they are not i)ermitted to question the con- 
stitutionality of properly enacted laws. Wlien the 
question of the constitutionality of a law arises, de- 
cision is rendered by a special committee consist- 
ing partly of the legislative executives, partly of 
members of the high state courts and the univer- 
sity law faculties. 

The communities and counties are recognized 
as self-supporting corporations. However, they 
execute those governmental functions that may be 
assigned to them by the legislature or the state 
government. Local governments and popularly 
elected officials are fully responsible to their as- 
semblies and can be removed by them. 

562 



The economic freedom of the individual is 
guaranteed, but the economy of the state is to be 
organized according to the principles of social 
justice. The state government is responsible for 
economic planning. Monopolistic private enter- J 
prises are strictly forbidden, and certain enter- ^ 
prises may be socialized by law or referendum. 
Agricultural holdings are limited to a given size. 

Public education is compulsory and unitary 
schools must be established. Higher education is 
provided for all without regard to social status 
or ability to pay. Religious freedom is guaran- 
teed. Religious communities are organized as 
corporations of public law, and contributions made 
to them out of public funds are to be commuted by 
law. 

Each constitution in the Soviet zone contains 
essentially the same basic rights as the constitu- 
tions of the U.S. and French zones. Like the 
constitution of the Soviet Union and constitution 
of Yugoslavia, the constitutions of the states in 
the Soviet zone make no mention of what is actu- 
ally the most im2)ortant oi"gan of the state, namely 
the "state party", which performs the dual 
function of being a nervous system for the state 
bureaucratic apparatus and of mobilizing the 
general population to support state policies. 

On the surface these constitutions seem to pro- 
tect the citizen against arbitrary acts of the 
bureaucracy in that the executive is formally sub- 
ordinate to the legislative, and all political powers 
are centered in the legislative branch as the "high- 
est org-an of the people's will." 

Under the conditions where several liberal par- 
ties compete for political jDower, the Soviet zone 
constitutions would provide the basis for 
thoroughly democratic government under popular 
control. The leading party is, however, com- 
mitted to the "unitary state" or one-party system. 

Under this system tlie legislative branch is effec- 
tively mobilized and controlled by the party, lead- 
ing functionaries of which also occupy leading 
bureaucratic posts, so that any effective opposition 
is silenced. The result is a de facto self-govern- 
ment by the bui-eaucracy, the sujaposed elements of 
popular control remaining merely a fiction. 

The independence of the judiciary is also only 
apparent; they are, with few exceptions, instru- 
ments of political power subject as much to the 
manipulation of the ruling party as are the legisla- 
tive and executive branches. 

The French occupation forces on assuming con- 
trol of the French zone in July 1945, had also to 
contend with many practical, geographical, and 
administrative difficulties. Their zone lacked 
unity. The southern part of the zone included the 
truncated portions of Wiirttemberg and Baden, 
each of which formed a separate state. The north- 
ern half of the zone was composed of half a dozen 
more or less disparate elements, remnants of for- 

Department of State Bulletin 



iner Prussian provinces and other German states, 
which by an ordinance dated August 30, 19J:6, was 
finally organized into the Rhineland-Palatinate. 
The Saar from the very beginning was treated 
ditferently and has since been separated entirely 
from the rest of the French zone. 

Thus, more than any other part of Germany, 
the French zone lacked cohesion. It contained no 
important administrative centers; all the provin- 
cial capitals remained outside its boundaries. The 
situation was aggravated by existing difficulties of 
communications between the northern and south- 
ern portions of the zone. 

The process of reestablishing self-government 
in the area began in September 1945. About the 
same time trade-unioii activity was permitted, and, 
by the end of the year, political parties made their 
appearance in the zone. In May 1946 the commu- 
nities in the French zone began preparation of 
electoral lists for municipal elections which took 
place on September 15, 1946. On October 13, 
county elections took place for county assemblies 
which, in turn, by November 17, designated mem- 
bers to the consultative assemblies. 

In Wiirttemberg and in Baden, each consultative 
assembly was composed of two electoral colleges, 
in the Rhineland-Palatinate of four: two for the 
Rhineland and two for the Palatinate. One elec- 
toral college was elected from all the county assem- 
blies of the state and the other from the cities of 
more than 7,000 population. 

The Christian parties emerged as the strongest 
throughout the zone. They held a clear majority 
in the consultative assemblies of all three states. 
The assemblies convened in November 1946 and 
proceeded to draft constitutions for their respec- 
tive states. The constitutions were finally re- 
viewed, apjiroved by the Fi-ench High Command, 
and voted upon by the people on May 18, 1947. 
The referendum concerning the constitutions was 
held simultaneously with the election of state 
assemblies, legislatures, or parliaments. 

In Wiirttemberg and in Baden the electorate 
accepted the constitutions by comfortable major- 
ities. In the Rhineland-Palatinate it narrowly 
missed defeat, as did the separate referendum held 
on the school question. In the elections to the 
legislature the Christian parties registered losses 
in all the states but were still the strongest party. 

The constitutions of the states in the French 
zone bear marked resemblance to the Bavarian 
constitution. The hand of the Christian parties 
is clearly discernible in each one of them. The 
three constitutions contain long and detailed bills 
of rights. The legislative power is unifonnly 
vested in a unicameral legislature elected by the 
people. 

The minister-president is elected by the legis- 
lature and is responsible to it. He in turn selects 
his ministers who must be approved by the legis- 

May 2, 1948 



lature. The ministers are responsible to the min- 
ister-president on matters of over-all policy and to 
the legislature on matters falling within their 
functional fields. 

A constitutional court is established to review 
legislation and pass upon its constitutionality. 
All three constitutions take special pains to guard 
church interest. Religious instruction is to be im- 
parted in all schools and to be supervised by the 
churches. Permissive clauses for the socialization 
of basic industries are included in all the con- 
stitutions. Adequate compensation is required in 
all cases. Property rights, especially land and 
real-estate rights, are safeguarded. 

All constitutions give the minister-president 
power in cases of emergency to suspend for brief 
periods certain of the basic rights granted to the 
citizens. In all such cases the legislature must 
immediately be informed of this action. De- 
nazification laws are specifically exempted from 
the constitutional provisions of the bill of rights. 

On June 9, 1947, the French High Command in 
Germany issued Ordinance No. 95, a document 
comparable to the September 30 directive of the 
American Military Government. This ordinance 
makes the constitutions subject to Control Council 
and French High Command orders. Further- 
more, certain spheres of activity pertaining to 
reparations, movements of population, disman- 
tling, and occupational requirements are removed 
from the competence of the German authorities. 

Proposals pertaining to decartelization, denazi- 
fication, and democratization must be communi- 
cated to the French High Command before being 
introduced in the legislature. The state budget 
must make provisions for occupation costs. All 
laws must receive French Military Government 
approval before promulgation. 

Although the French zone constitutions give 
the impression that the state governments are in- 
dependently functioning entities, they are actually 
supervised by French Military Government to an 
extent even greater than that which would be sug- 
gested by a reading of Ordinance No. 95. 

In addition to the specific subjects reserved to 
Fx-ench Military Government by tliis order, there 
are also "legislative powers in the field of eco- 
nomics for which coordination between the states 
is required." On the strength of this latter pro- 
vision the states have been forbidden to legislate 
on any branches within the fields of economics, 
food and agriculture, or transport. 

While laws outside the prohibited and restricted 
categories may be introduced in a legislature with- 
out prior Military Government review, the Ger- 
mans have been "advised" to submit them for prior 
review so that, for all practical purposes, there is 
advance clearance of everything the legislature 
does, in addition to a review, before promulgation, 
of legislation already enacted. 

563 



FOREIGN AID ANDTRECONSTRUCTION 



International Law and the European Recovery Program 



BY ERNEST A. GROSS '■ 
Legal Adviser 



Mr. Justice Holmes said that a page of history 
is worth a vokune of logic. I propose to outline 
some of the facts of history which have necessi- 
tated the formulation of the European Recovery 
Program and to indicate its relation to certain 
other aspects of American foreign economic pol- 
icy. I hope thus to put the Economic Cooperation 
Act of 1948 in perspective so that we who are con- 
cerned with the dynamics of international law 
may see the problem whole, rather than as a frag- 
ment. 

The report of the Senate Committee on Foreign 
Relations enumerates some of the reasons why 
Europe is in need: "Economic nationalism, poli- 
tical tensions and uncertainty, war devastation, 
the prolonged interruption of international trade, 
the loss of foreign income and dollar funds, in- 
ternal financial disequilibrium, shoi'tage of sup- 
plies from southeast Asia, the wartime movement 
of peojDles to certain areas of western Europe, and 
a 10-percent increase of population have all con- 
tributed to economic break-down in Europe. 
Germany, a focal point in the European economy, 
is paralyzed. Inflation is rampant. Subversive 
elements are hampering recovery and engineering 
social chaos." 

This summary is of particular interest because 
it starts with "economic nationalism" and ends 
with a reference to subversive elements "engineer- 
ing social chaos". Neither of these is, of course, 
unique to the postwar history of Europe and, as 
has been recently pointed out, the European revo- 
lutions of just a century ago posed the still un- 
solved problems of nationalism and Marxian so- 
cialism. It remained for the supreme demagogy 
of Hitler to select a name for his party which sug- 
gested a twin solution; and it remained for the 
National Socialist Party to prepare the fields in 
which subversion thrives. 

Economic conditions at the end of World War 
II resulted in the decision of most nations — the 
United States being a notable exception — to re- 
tain, if not to intensify, rigid trade controls and 

'Address made before the American Society of Inter- 
nationa] Law in Wasliington on Apr. 23, 1948, and released 
to the press on the same date. 

564 



to resort to discriminatory bilateral deals. Each 
country desperately conserved its small and pre- 
cious stock of foreign exchange by limiting foreign 
purchases to goods and services most urgently 
needed, while at the same time attempting to per- 
suade other countries, most of whom were in a 
like situation, to accept those nonessentials which 
had to be exported in order to provide necessary 
foreign exchange. Under such piessures a system 
of ever-increasing discriminations and restrictions 
on foreign trade tended to arise ; and restriction- 
ism and protection, once sampled, are strong 
drugs, the habit of which is not easy to break. 
At the time when increased international trade 
was an obvious necessity, restrictionism, bilateral- 
ism, and special dealism threatened effectively to 
strangle such trade. 

Against this background, the Secretary of State, 
on June 5, 1947, in his now famous Harvard 
speech, announced that the United States Govern- 
ment would make efforts to "help start the Euro- 
pean world on its way to recovery", if the coun- 
tries of Europe would agree on the requirements 
and upon the jjart they themselves would take "to 
give proper effect to whatever action might be 
undertaken by this Government". Shortly after 
Secretary Marshall's statement, the Foreign Min- 
isters of the United Kingdom and France invited 
the Foreign Minister of the U.S.S.R. to meet with 
them to consider whether a joint program for the 
economic recovery of Europe might be deAased. 
The U.S.S.R. refused to cooperate on the ground 
that such a progi-am "would lead to interference 
in the internal affairs of European countries". 
She also refused to permit Poland and Czecho- 
slovakia to subject themselves to such interference. 

In July 1947 the United Kingdom and Fiance 
invited all European countries, other than Spain, 
to attend a conference to formulate such a pro- 
gram. The 14 nations which accepted this invi- 
tation, together with its initiators, formed a Com- 
mittee of European Economic Co-operation, the 
members of which have now formed by ti-eaty a 
Eui'opean economic organization which will be of 
long-range and vital importance. The Commit- 
tee of European Economic Co-operation issued a 

Department of State Bulletin 



comprehensive report in September which is a 
monumentu] tribute to the ability of likeminded 
nations M-orking together to achieve agreement 
and important resuUs in fields previously marked 
by controversy and dissension. The response of 
the United States was the enactment, on April 3d, 
of the Economic Cooperation Act of 1948. 

The United States has also for several years 
been developing a long-range program which will 
not only complement the European Recovery Pro- 
gram but also is designed to insure permanent en- 
joyment of the benefits to be expected from the 
European Recovery Program. This other pro- 
gram has culminated in the recommendation by 58 
nations of the world of a charter for a proposed 
International Trade Organization. The objec- 
tives of the Economic Cooperation Act are stated, 
in part, as "the establishment of sound economic 
conditions, stable international relationships and 
the achievement by the countries of Europe of a 
healthy economy independent of extraordinary 
outside assistance"'. The "progressive elimination 
of trade barriers" is cited as a primary policy of 
the Act. 

The Havana Charter of the International Trade 
Organization states, as certain of its objectives, the 
making of a contribution to a "balanced and ex- 
panding world economy" and the achievement, 
through reduction of trade barriers and elimi- 
nation of discrimatory treatment in international 
commerce, of the aims of the United Nations. The 
two programs go hand in hand. They are facets 
of the same crystal. Together they indicate the 
faith of the United States in the necessity for 
closer economic cooperation among nations and 
the sure knowledge of the interdependence of the 
economies of the world, one upon the other. To 
speak in the terms of Toynbee, they are the re- 
sponse of the free nations of the world to the 
stimulus of adversity, of bitter economic and poli- 
tical developments. And it is worth noting that 
Toynbee demonstrates that, within limits which 
will themselves be established by this response, the 
rule is that the magnitude of the challenge is the 
measure of the response. 

The report of the Senate Foreign Relations 
Committee on the Erp bill said: "The decision 
which must now be made is whether we shall con- 
tinue the effort to achieve our goal : The establish- 
ment of a stable world with free political institu- 
tions and the rule of law". 

Fundamentally, then, the problem is that of in- 
ternational law not so much in relation to the 
European Recovery Program, nor to the Inter- 
national Trade Organization, but in relation to 
the changing economic — and therefore political — 
interaction and interrelation of the nations of the 
world. For these relations are changing and will 
change. And, as change in the relations of man 
to man reflects itself, sometimes tardily, in the 

May 2, 1948 

785986 — 18 2 



FOREIGN AID AND RECONSTRUCTION 

internal law of nations, so this change in inter- 
national relations — this weaving together of econo- 
mies — will affect international law. It is our task 
to see that international law is a ready tool, not 
for change for the sake of change, but for the 
I'eal interests of nations and peoples. 

To carry out our task we must see whether such 
programs for economic cooperation as Erp have 
already modified — or indeed violated — what are 
established principles of international law. One 
question which leaps to mind is, of course, whether 
the effort toward economic cooperation conflicts 
with the concept of territorial sovereignty — a 
charge which might be lightly dismissed did it 
not indicate misconception or mischief. 

It is a charge which must be appraised in the 
context in which it is most frequently made, and 
which was keynoted by the declaration adopted at 
the first meeting of the Cominform : "The Tru- 
man-Marshall plan is only a constituent part, the 
European subsection, of a general plan for the 
policy of global expansion pursued by the United 
States in all parts of the World". 

The hollowness of the charge is most apparent 
when viewed against the dogma of the Chief of 
the Soviet State, announced more than 15 years 
before the so-called "Truman-Marshall Plan", that 
the premises of the proletarian revolution must 
start "from the jDoint of view of the state of world 
economy, inasmuch as the individual countries 
and individual national economies are no longer 
independent economic units . . . and inas- 
much as the old 'civilizing' capitalism has grown 
into imperialism and imperialism is a world sys- 
tem of financial bondage . . . (Stalin, Foun- 
dations of Leninism, 1932). 

There is, indeed, in the two programs of eco- 
nomic cooperation I am discussing, no conflict with 
established concepts of sovereignty. The charter 
of the International Trade Organization will come 
into effect, when it does, by the ratification of the 
states making up the Organization — a ratification 
which will in itself be a re-affirmation of the 
rights of sovereignty. So also the charter of the 
European cooperation organization is to be rati- 
fied by the members, and the provision of assist- 
ance to the members will be made possible by 
agreements to be negotiated between the United 
States and the other cooperating states. 

The Senate Foreign Relations Committee re- 
jDort reveals the legislative consideration of this 
subject : 

"In stressing the importance of these obliga- 
tions (i.e., those embodied in the multilateral 
undertakings) , the Committee was sensitive to the 
fact that the countries of western Europe are 
highly developed sovereign nations and would be 
properly resentful of any interference from the 
outside in their internal affairs. There can be no 
possible criticism on this score inasmuch as the 

565 



fOREIGN AID AND RECONSTRUCTION 

undertakings were voluntarily assumed by the 
Committee of European Economic Co-operation 
countries upon their own initiative and in no sense 
represent an attempt on the part of the United 
States to impose restrictions on the sovereign 
rights of the participating countries." 

It is appropriate to recall the remarkable trea- 
tise of Fedor Martens, who served 40 years in the 
Kussian Foreign Office and who, long before his 
death in 1909, had earned the sobriquet of "the 
Chief Justice of Christendom" for his work as an 
arbitrator. In 1883 he wrote : "Looking to their 
own progress and that of their citizens, states must 
enter into relations among themselves, seek in 
other countries the resources which they may lack 
and in return offer their assistance to other peoples 
for the attainment of legitimate purposes. In ful- 
filling their essential duties they depend upon one 
another. The degree of their mutual dependence 
is in proportion to the degree of their civilization 
and education". This is not far from the language 
of article 1 of the charter of the Ito nor from 
the language of section 102(a), title I of the Eco- 
nomic Cooperation Act of 1948. The latter states : 

"Eecognizing the intimate economic and other 
relations between the United States and the na- 
tions of Europe, and recognizing that disruption 
following in the wake of war is not contained by 
national frontiers, the Congress finds that the ex- 
isting situation in Europe endangers the estab- 
lishment of a lasting peace, the general welfare 
and national intei-est of the United States, and 
the attainment of the objectives of the United 
Nations." 

In fulfillment of this policy, the Act goes on to 
offer to the cooperating nations that very assist- 
ance of which Martens spoke. 

Still less substantial is the question whether the 
economic policies of the United States, as exem- 
plified in these two programs, are in conflict with 
the Charter of the United Nations. The prepara- 
tion of the charter of the International Trade Or- 
ganization was in fact sponsored by the Economic 
and Social Council of the United Nations. The 
European Recovery Program accords with f.he 
procedures and the objectives of the Charter of 
the United Nations and explicitly contemplates 
coordination with the specialized agencies of the 
United Nations. The Committee of European 
Economic Co-operation was careful to point out 
in its general report that, wherever suitable inter- 
national machinery exists, it is the desire of the 
participating countries that their collective tasks 
be undertaken within the framework of the United 
Nations. 

But although existing institutions and estab- 
lished concepts have been respected, it remains 
true that fundamental changes in economic rela- 
tions among nations may well develop new inter- 

566 



national law. New economic problems of the mer- 
chants of the world inspired the work of such men 
as Lord Mansfield in the development of com- 
mercial law. The vitality of the common law J 
lies in its adaptability to new circumstances. " 
Whether, since August of 1945, when the war 
ended, there has been a sufficient change in the 
economic facts of the international community to 
compel fundamental reexamination of established 
concepts of international law may well be doubted. 
But the change is sufficient to put all of us on 
notice. 

Certainly, it is clear that other new and impor- 
tant problems of international law are raised by 
the two programs we have been considering. I 
may take, because time is brief, only a few exam- 
ples from these two programs. 

In connection with the proposed charter of an 
International Trade Organization, the members 
confer upon the Organization certain powers of 
review over their freedom to take economic meas- 
ures which in the past have been considered es- 
sentially mattei's of domestic concern and at most 
the subject of bilateral and generally very limited 
treaties. This is, I tliink, a fair example of the 
truth of the proposition laid down by the Per- 
manent Court of International Justice in the case 
of the Tunis-Morocco nationality decrees: "The 
question whether a certain matter is or is not solely 
within the jurisdiction of a State is an essentially 
relative question ; it depends upon the development 
of international relations." 

More specifically in the field of the international 
lawyer are those provisions of the International 
Trade Organization charter for review by the 
International Court of decisions of the Ito. At 
Geneva, in the preparatory committee stage of the 
work on the charter, and again at Havana, where 
the final charter draft was prepared, these pro- 
visions were the subject of close scrutiny and much 
discussion. Basically the provision in the charter 
is for review of decisions of the Organization by 
means of a request to the International Court for 
an advisory opinion. The Organization may be 
required by a single member to ask for such an 
advisory opinion; and the advisory opinion is 
binding upon the Organization. Manifestly, in- 
ternational review of decisions of as wide-ranging 
economic scope as those of the Ito raises new 
and important problems. 

It may be questioned, for example, whether the 
advisory opinion technique is really the best for 
review of Organization decisions. But the use of 
that technique was dictated by the Statute of the 
International Court of Justice which would pre- 
clude tlie Ito from itself being a party to a case 
brought before the Court by a member. 

Another problem which may compel reexami- 
nation by students of international law is that of 
review by a judicial body of what are essentially 

Department of Stale Bulletin 



administrative decisions in the international eco- 
nomic field. The relations between domestic 
courts and administrative bodies, such as the Se- 
curities and Exchange Commission, the Federal 
Trade Conmiission, the National Labor Relations 
Board, have been the core of a growing body of 
jurisprudence within the United States. It may 
be that the problem of judicial review of decisions 
of the International Trade Organization is the 
precursor of a similar development in the inter- 
national field. As economic cooperation between 
nations increases and as nations bind themselves 
to take joint action or to be governed by the de- 
cision of a jointly established organization or body, 
familiar problems will arise of freedom of admin- 
istrative decision, deference to the expert judgment 
of the administrator, with adequate judicial 
guaranties of the fundamental rights and of ad- 
herence to the rules of fair play. 

Of particular interest to the international 
lawyer are the provisions of the midtilateral re- 
ciprocal undertakings of the participating coun- 
tries. These include an agi-eement to cooperate 
with "one another and like minded countries" to 
reduce tariffs and other barriers to the expansion 
of trade ; to remove progressively obstacles to the 
free movement of persons in Europe; and to or- 
ganize together the means whereby common re- 
sources can be developed in partnership. The pro- 
cedures by which these and the other multilateral 
undertakings will be imj^lemented will pose new 
problems in international law. The new organi- 
zation established only this month by the par- 
ticipating countries to provide the mechanism for 
implementation also sets a new pattern in inter- 
national economic relations. This new organi- 
zation is responsible for coordinating the recovery 
programs of the member nations ; for making pos- 
sible cooperatve action; and for assuring the 
United States that our assistance is being utilized 
in such a manner as will best work for the recovery 
of all participating countries rather than for the 
sole benefit of the individual country. 

The relationship with each of the participating 
countries to the United States is also of consider- 
able interest to the lawyer. Although the United 
States is not a party to the multilateral agreement, 
nor a member of the continuing organization, the 
Economic Cooperation Act makes clear that the 
continuity of our assistance will be dependent upon 
the continuity of cooperation among the partici- 
pating countries. Further, the provision of 
assistance by us to any one of the participating 
countries requires that it conclude with the United 
States a bilateral agreement, the terms of which in 
large part are taken from the pledges which the 
countries themselves exchanged with each other in 
September 1947. 

Section 115(b) of the legislation provides for 
the inclusion in such agreements, where applicable, 
of certain important provisions. The participat- 

MaY 2, 1948 



FOREIGN AID AND RBCONSTRUCTION 

ing countries will agree with us to cooperate with 
each other in reducing barriers to trade among 
themselves and other countries. Further, each 
participating counti'y must take measures to locate 
and identify and put into appropriate use the as- 
sets and earnings therefrom belonging to its citi- 
zens where such assets are located within the 
United States, its territories, or possessions. This 
provision, which the legislative history makes 
clear does not require forced liquidation of the 
assets, is based on the concept that idle, hoarded, 
or unproductive assets should be put to use. The 
concept is not a new one; wartime decrees of, 
for example, the United Kingdom and the Royal 
Netherlands Government-in-exile, were directed 
at placing into, use the assets in this country be- 
longing to their citizens. In this instance, how- 
ever, the requirement that the participating 
countries put these assets to use in furtherance of 
the recovery program stems from our legislation. 
The problem for the lawyer, recognizing the need 
for and the justice of such action, is to assure ac- 
complishment of the objective in a manner that 
does not prejudice the legitimate stability of pri- 
vate international investment in its important role 
in the modern international economy. 

The bilateral agreements are also to pi-ovide that 
the participating countries will agree to negotiate 
suitable protection for the right of access for any 
United States citizen to the sources of materials, 
required by the United States as a result of the 
deficiencies or potential deficiencies in its own re- 
sources, on terms of treatment equivalent to those 
afforded the nationals of the participating 
countries. 

The participating country is also to agree to 
submit for decision of the International Court of 
Justice, or any arbitral tribunal mutually agreed 
upon, any case espoused by this Government in- 
volving compensation for a national of the United 
States for governmental measures affecting his 
property rights. It can be expected that difficult 
problems will arise in connection with decisions 
which must be made by this Government as to 
which cases it will espouse under this provision 
and the extent to which we v?ill require of citizens 
a demonstration that the local remedies are in- 
adequate. 

An over-all problem with respect both to the 
multilateral agreements among the participating 
countries and the bilateral agreements with the 
United States will be the applicability of article 
36 of the Statute of the International Court of 
Justice, which pi'ovides that the states parties to 
the Statute may declare that they recognize "as 
compulsoi-y ipso facto and without special agree- 
ment in relation to any other state accepting the 
same obligation, the jurisdiction of the Court in 
all legal disputes concerning: (a) the interpreta- 
(Continued on page 585) 

567 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



The Palestine Situation 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN 
U.S. Representative at the Seat of the United Nations 



Since the United States introduced the resohi- 
tion in the Security Council which led to the call- 
ing of this Special Session of the General Assem- 
bly, we believe it appropriate for us to outline at 
this early stage of our proceedings the nature of 
the iiroblem which now confronts us. In essence, 
it is the establishment of peace in Palestine and 
the creation of conditions for a constructive poli- 
tical settlement. 

The Palestine question first came before the 
United Nations at a Special Session of the Gen- 
eral Assembly which convened in New York on 
April 28, 1947, in response to a request made by 
the United Kingdom on April 2, 1947. In that 
Special Session the United States supported the 
idea that a Special Committee, made up of neutral 
and disinterested members, should review the sit- 
uation in Palestine and report to the regular ses- 
sion of the General Assembly which was to meet 
in September of last year. We supported such a 
Committee because we were aware that earlier 
efforts to find a solution for Palestine had been 
unavailing and because we were anxious to see the 
question dealt with by the United Nations on its 
merits, free from special interests and other fac- 
tors which did not bear directly upon Palestine 
itself. 

While the United Nations Special Committee 
on Palestine was at work, from May 26, 1947, until 
the submission of its report to the General Assem- 
bly on September 3, 1947, the United States Gov- 
ernment scrupulously refrained from statements 
of policy or from acts which might in any way 
prejudice the work of that Committee. We were 
eager for it to have every possible opportunity to 
make an impartial study of the question and to 
i-ecommend what seemed to it to be a fair solution. 

Inherent in our attitude was a desire to give 
very great weight to the work of such a Committee. 

' Made on Apr. 20, 1948, to the Political and Security 
Committee (First Committee) at the Second Special Ses- 
sion of the General Assembly ; released to the press by 
the U.S. iVIisslon to the United Nations on the same date. 
Mr. Austin is Chairman of the U.S. Delegation to the 
Special Session. 

568 



United States Support of UNSCOP Report 

The majority of the United Nations Special 
Committee on Palestine proposed a plan of parti- 
tion with economic union. In the regular session 
of the General Assembly which convened in Sep- 
tember of last year, the United States supported 
this majority proposal. In doing so, we sought 
certain changes in it which we thought would 
make the plan more workable. We proposed ter- 
ritorial revisions which reduced the size of the 
Arab minority in the proposed Jewish State, and 
we endeavored to strengthen that part of the plan 
providing for economic luiion. The United Na- 
tions Special Committee on Palestine itself had 
unanimously concluded that "the preservation of 
the economic unity of Palestine as a whole is in- 
dispensable to the life and development of the 
country and its peoples". 

In favoring the plan for partition with eco- 
nomic union we were aware that the Arabs of 
Palestine were unwilling to agree to it in advance, 
that the plan was not acceptable in every respect 
to the Jews of Palestine, and that the United King- 
dom had stated its unwillingness to take an active 
part in its implementation in the absence of agree- 
ment between the Jews and Arabs. The General 
Assembly made every possible effort to meet ob- 
jections from these three sources. Had the As- 
sembly taken all such objections at full value, no 
recommendations at all would have been possible. 
No plan could have met the views expressed to the 
Assembly by the United Kingdom and by the 
Jews and Arabs. The United Kingdom, however, 
had asked for recommendations of the General 
Assembly on the future Government of Palestine. 
It did not withdraw that request, nor did it pro- 
pose any other type of United Nations action. It 
was up to the Assembly to recommend, specifically 
to the United Kingdom, what it considered to be a 
fair and equitable solution which could rightfully 
claim the cooperation of the people of Palestine 
and of the mandatory power as a final settlement 
for that troublesome question. In all of these de- 
bates and negotiations, the United States has 
sought a United Nations program because we be- 
lieve that the interests of all nations are involved 
in the maintenance of order and peace in Palestine. 

We and many other members of this Assembly 

Department of State Bulletin 



hoped that the expression of general world opin- 
ion would influence the Arabs to give the recom- 
mendation of the Assembly a chance to work. We 
hoped that the United Kingdom would cooperate 
fully in carrying out those parts of the plan which 
it alone could carry out since it was in Palestine 
as the mandatory power. We hoped that the Jews 
would make every possible effort to compose their 
differences with the Arabs in an effort to reduce 
the violence which prevailed in Palestine. Events 
have not fulfilled these hopes. 

Efforts for Peaceful Implementation 

Following the passage of the resolution of the 
General Assembly of November 29, 1947, the 
United States attempted by diplomatic means to 
urge a moderate attitude upon the interested par- 
ties in order that a peaceful implementation of 
the plan for partition with economic union might 
be possible. We do not know what efforts have 
been made by other members of the United Na- 
tions to exert their influence along similar lines 
in support of the recommendation of the General 
Assembly. In any event, such efforts were not 
successful. 

The Palestine Commission, established by the 
resolution of November 29, began in early January 
its task of carrying out the plan of partition with 
economic union. My Government wishes to ex- 
press its great appreciation for the devoted work 
which this Commission has applied to its task and 
the effort which it has made, in the most difficult 
possible circumstances, to carry out the responsi- 
bilities imposed upon it by this Assembly. 

Action of tlie Security Council 

The resolution of the General Assembly on 
Palestine was considered by the Security Council 
in February and March. 

On February 25, the United States offered a 
resolution, the first paragraph of which proposed 
that the Security Council resolve : 

"To accept, subject to the authority of the Se- 
curity Council under the Charter, the requests 
addressed by the General Assembly to it in para- 
graphs (a), (b) and (c) of the General Assembly 
Resolution of November 29, 1947." == 

If accepted, it would have placed the Security 
Council behind the plan of partition with eco- 
nomic union. 

This United States proposal failed to receive the 
necessary support. In the vote which took place 
on March 5, the first paragraph obtained only five 
affirmative votes, including the vote of the United 
States. The record is as follows (I refer to S/PV 
263, page 34) : in favor — Belgium, France, Ukrain- 
ian S.S.R., U.S.S.R., United States; against — 
none ; abstentions — Argentina, Canada, Colombia, 
Syria, United Kingdom. The result was five in 

May 2, 1948 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

favor, none against. The paragraph was rejected. 

Amendments to the remainder of our resolution 
were proposed. We accepted most of these sug- 
gestions in the hope that the consultation among 
the five permanent members called for in the reso- 
lution would facilitate agreement on a course of 
action and promote peaceful implementation of 
the Assembly resolution. The resolution was then 
adopted by a vote of 8 to with Argentina, Syria, 
and the United Kingdom abstaining.^ 

During a period of intensive consultation — 
many meetings being held — among the permanent 
members, the mandatory power, the Palestine 
Commission, and the representatives of the Jews 
and Arabs of Palestine, the following finding was 
reported to the Security Council (I refer to 
S/ PV 270, page 7, no. 4) : "The Palestine Commis- 
sion, the mandatory power, the Jewish Agency 
and the Arab Higher Committee have indicated 
that the partition plan cannot be implemented by 
l^eaceful means under present conditions". 

By the middle of March we recognized that time 
was fast running out.* The only certainty was that 
grave disorders were occurring daily in Palestine 
and that even greater bloodshed could be expected 
after May 15th. That prospect presented a hard 
choice to the United States as a member of the 
United Nations. We could take an inactive po- 
sition and let the situation move on to inevitable 
chaos. The alternative was to suggest some 
emergency action to preserve the peace, running 
the risk of the misunderstanding which would 
accompany any such effort on our part. My Gov- 
ermnent considered that the only decent course 
lay in an effort to save lives, and we found that our 
colleagues in the Security Comicil were ready to 
move in the same direction. 

Truce Efforts 

The United States, therefore, along with other 
members of the Security Council, turned to an 
attempt to effect a truce in order to bring to an end 
the serious fighting now occurring daily in 
Palestine and to forestall even greater bloodshed 
after May 15th.= 

The report of the United Nations Palestine 
Commission directed to this Special Session states 
that "Arab elements, both inside and outside of 
Palestine, have exerted organized, intensive effort 
toward defeating the purposes of the resolution of 
the General Assembly. To this end, threats, acts 
of violence, and infiltration of organized, armed, 
uniformed Arab bands into the Palestinian terri- 



' BuiXETiN of Mar. 7, 1948, p. 297. 
= Ibid., Mar. 14, 1948, p. 344. 

* Ibid., Mar. 28, 1048, p. 402. See also ibid., Apr. 4, 1948, 
p. 451. 

Ibid., Apr. 18, 1948, p. 514. 

569 



7HE UNITED NATIONS AND SPBCIALIZED AGENCIES 

tory have been employed". Our own information 
confirms this part of tlie Palestine report. The 
primary reason why the General Assembly's 
resolution of November 29th could not be carried 
out by peaceful means was Arab resistance. Some 
of this resistance, arising from outside Palestine, 
is in clear violation of the Charter of the United 
Nations and must be halted. 

The Jewish Agency for Palestine has demon- 
strated that it is prepared to accept the resolution 
of the General Assembly of last November 29, 
despite the fact that this resolution did not repre- 
sent the full measure of their claims. We must 
recall, however, that elements in the Jewish Com- 
munity have resorted to wide-spread terrorism and 
wilful murder since November 29, 1947. Such 
activities have shocked the entire world, have 
served to inflame still further the Palestine ques- 
tion, and have made is more difficult for the United 
Nations to find a peaceful solution to the Palestine 
problem. 

Responsibility of Palestinians 

It seems to us clear that the primary responsi- 
bility for reaching a jjeaceful settlement of this 
problem rests upon the people of Palestine. In- 
stead of serious and responsible efforts to resolve 
their differences, we see bitter retaliatory fight- 
ing and an ajiparent determination to seek a solu- 
tion by force of arms rather than by force of rea- 
son, adjustment, and persuasion. We do not be- 
lieve that the peoples of Palestine are entitled to 
appear before the United Nations to assert de- 
mands which must be accepted by the other party 
and the world community as the only alternative to 
war. 

Meanwhile, the United Kingdom has steadfastly 
held to May 15 as the terminal point of the man- 
date and to August 1 as the final departure date 
of the remaining British forces. 

Faced with these British deadlines and mount- 
ing conflict in Palestine, the Security Council in 
the early hours of last Saturday morning acted 
to establish a truce. This action of the Council 
needs and deserves the full support of all the mem- 
bers of the United Nations. 

Cooperation Essential for Truce 

Further action on the truce by the Security 
Council may be required. It may be necessary to 
establish in Palestine a truce commission of the 
Council and to make available to the commission 
a limited number of police to assist in supervising 
the truce and to reinforce tlie local police in con- 
trolling irresponsible elements. At the heart of 
the matter is the need for those who control the 
Arab and Jewish populations of Palestine to co- 
operate to the fullest in the enforcement of the 
truce called for by the Security Council. 



Not printed here. 



570 



Since the truce itself does not insure the con- 
tinuance of governmental authority in Palestine, 
the United States believes that consideration 
should be given by the General Assembly to the es- | 
tablishment of a temporary trusteeship which 
might provide a government and essential public 
services in that country pending further negotia- 
tion. If the mandatory power actively cooperates, 
the General Assembly would be able to establish 
United Nations governmental authority in Pales- 
tine. Under the trusteeship provisions of the 
Charter, the General Assembly has authority to 
accept responsibility which goes far beyond its 
powers of recommendation. The United Nations 
itself can become the administering authority. 

United States Suggestions for 
Trusteeship Agreement 

The United States does not wish to confront the 
General Assembly with a draft trusteeship agree- 
ment which has been worked out in every detail 
or to present in any formal sense a draft trustee- 
ship agreement. We have, however, prepared 
some suggestions which are based largely upon a 
draft statute which the Trusteeship Council de- 
veloped for the territory of Jerusalem, as well as 
upon suggestions which have been made in- 
formally by several members of the Security Coun- 
cil. These suggestions are in the form of a work- 
ing paper which we feel represents to a very con- 
siderable degree a collective view. 

I call 3'our attention to a paper which is before 
you (AC/1/277 of 20 April 1918, second special 
session, first committee), "Draft Trusteeship 
Agreement for Palestine".^ 

The Assembly may consider that for a tempo- 
rary trusteeship it is not advisable to go into too 
much detail in the terms of the trusteeship agree- 
ment. Indeed, it has been suggested by several 
delegations that the terms of the agreement might 
be kept very general and that it could be very much 
shorter than the draft which had been elaborated 
for the City of Jerusalem. The United States 
Delegation, for its part, would find acceptable 
either form for the temporary agreement which 
it hopes will be reached by this Assembly. 

We believe that the agreement should be sub- 
ject to prompt termination whenever there is gen- 
eral agreement upon a permanent solution of the 
Palestine problem. 

Government of Palestine 

We also believe that while supervision of the 
agreement should be exercised by the Trusteeship 
Council on behalf of the United Nations the major 
governmental functions should be exercised by a 
Government of Palestine, acting in accordance 
with the terms of the agreement and under such 
instructions as the Trusteeship Council might find 
it necessary to give. 

Deparfment of State Bulletin 



Such a Government of Palestine should be 
headed by a Governor-General appointed by and 
i-esponsible to the Trusteeship Council. 

The Government of Palestine should prefer- 
ably include a democratically elected legislature, 
possibly in two chambers, but if such a body 
could not be j^romptly established the Governor- 
General should, vre believe, be authorized to legis- 
late by order. 

Security Forces 

The trusteeship agreement should provide also 
for tlie maintenance of law and order in Palestine, 
and the Governor-General should be authorized, 
if necessary, to call upon certain states specified in 
the agreement to assist in the maintenance of 
order. 

The agreement, we believe, should make it pos- 
sible for the Government of Palestine to take over 
and continue existing central services necessary to 
carry on the government. Specific provision, we 
think, would also have to be made for immigra- 
tion into Palestine on some agreed basis and for 
a policy of land purchase. 

Finances 

In the view of the United States Government, 
the standard of living and public services in Pales- 
line should be based in general upon the levels 
which can be supported by the resources of Pales- 
tine so that large subsidies by the United Nations 
should not be anticipated. 

If funds are required for carrying out any 
recommendation of the Trusteeship Council which 
cannot be raised by the Government of Palestine, 
such funds, we believe, should be supplied as sub- 
sidies or recoverable loans by the United Nations 
as a whole on the regular scale of contributions 
to the budget of the United Nations. The Pales- 
tine budget, we believe, should be handled as a 
separate budget and not as part of the ordinary 
budget of the United Nations. 

Holy Places 

Tlie trusteeship agreement should contain ade- 
quate guaranties for the protection and preserva- 
tion of the Holy Places in Palestine with access 
to all places of worship by those who have an 
established right to visit and worship at them. 
Also the trusteeship agreement should contain 
provisions for handling disputes pertaining to 
them. It should also assure, subject to the 
necessary safeguards of public order and security, 
freedom of entry into Palestine for foreign pil- 
grims and persons who desire to visit the Holy 
Places. 

Such points as these should be thoroughly ex- 
amined by the appropriate committee of this As- 
sembly with a view to perfecting the terms of a 
temporary trusteeship agreement. We hope, 

May 2, 7948 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

therefore, that the First Committee will ask the 
Fourth Committee to undertake this task im- 
mediately. 

Trusteeship a Standstill— Not a Solution 

We do not suggest a temporary trusteeship as 
a substitute for the plan of partition with eco- 
nomic union or for any other solution of the Pales- 
tine problem which may be agreed upon by the 
Jews and Arabs of that country. We consider it 
an emergency measure to insure public order and 
the maintenance of public services. The truce and 
trusteeship together envisage a military and polit- 
ical standstill to save human life and to make pos- 
sible further negotiations on a final political 
settlement. As we see it, the truce and trusteeship 
would be entirely without prejudice to the rights, 
claims, or position of the parties or to the charac- 
ter of the eventual political settlement. 

Economic Development of Palestine 

It is not enough to provide only for law and 
order in Palestine. If the United Nations accepts 
temporary responsibility for the Government of 
Palestine, everything possible should be done to 
promote the economic recovery and development 
of the country for the mutual benefit of all of its 
inhabitants. The record shows that the peoples 
of Palestine can and will work together for their 
mutual welfare if given a reasonable chance to do 
so. All over Palestine Jews and Arabs have col- 
laborated on such fundamental problems as irri- 
gation and water supply, transportation, and 
sanitation. It should be an important function of 
a temporary government to promote such collab- 
oration. If we really want to reduce and pre- 
vent violence, we will take measures to substitute 
tools for weapons. That will be much less costly 
and much more successful than attempting solely 
to maintain police authority. It will also reduce 
the emphasis on political bitterness. 

We are dealing with people who, like people 
everywhere, are interested in the common things 
of life — the education of their children, the im- 
proved cultivation of their land, more and better 
food, more power for their industries, greater op- 
portunities for themselves and their children in 
jobs and business and farming;. Peace is not an 
ominous quiet but a substitution of the tractor 
for the tank. 

Role of United Nations Agencies 

Here, the many resources of the United Nations 
might be mobilized. The United Nations is not 
concerned solely with the solution of conflict and 
with the maintenance of peace. The Organiza- 
tion and its members are obligated by the Charter 
to promote international economic and social co- 
operation. We believe that when the fighting 
stops, a real opportunity will open up for joint 
action by Jews and Arabs, assisted by the United 

571 



THE UNITED NATIONS AND SPBCIAUZED AGBNCIBS 

Nations, its specialized agencies, and the proposed 
Economic Commission for tlie Middle East, to 
develop the economic potentialities of Palestine. 
Attention might be given to plans for harnessing 
the River Jordan, for draining the swamplands 
near its source, and for reclaiming new areas of 
arid land in order that they might bloom once 
again as in Biblical times. Attention could be 
given to other proposals, such as the one for dig- 
ging a canal to allow the water of the Mediter- 
ranean to flow into the Dead Sea depression, there- 
by affording people electric power, not only for 
Palestine but for surrounding countries. 

Practical projects for the development of hydro- 
electric power might be unfolded in such a way as 
to warrant the financial assistance of the Interna- 
tional Bank for Reconstruction and Development. 
The Food and Agriculture Organization might 
assist in the fruitful utilization of reclaimed areas. 
The World Health Organization might be asked 
to assist in combating the danger of malaria 
around the headwaters of the Jordan. The Inter- 
national Labor Organization might contribute to 
the improvement of working and living condi- 
tions. In the fields of education and culture and 
of scientific experimentation, the temporary gov- 
ernment of Palestine might enlist the advice and 
assistance of the United Nations Educational, 
Scientific and Cultural Organization. 

A peaceful Palestine should also attract private 
investments which would contribute, in many 
ways, to its economic development. 

People who now disagree concerning the form 
of government which should ultimately be estab- 
lished for Palestine have in common a devotion to 
that land and a desire for its development. On 
projects such as those which I have mentioned, 
they could collaborate for the promotion of the 
common weal. 

Basic United Nations Purposes 

From the beginning our purposes as members of 
the United Nations have been to prevent a situa- 
tion likely to endanger peace in Palestine and in 
the world and positively to facilitate a peaceful 
settlement with self-government and a chance for 
orderly social and economic development. 



These purposes still stand. The responsibility 
is still an international one. But the hard fact 
is that we must protect our chances of achieving 
those purposes by establishing the conditions to 
make them possible. 

The sequence of events shown in the historical 
review with which I began has landed us very near 
a dangerous deadline, requiring emergency action. 
As we see it, this is an emergency or holding ac- 
tion. It is an action to insure order and govern- 
ment and thereby to make possible the working out 
of a peaceful settlement and constructive develop- 
ment in Palestine. This action I have described 
under the headings of truce, temporary trustee- 
ship, and economic development. 

Joint Responsibility for Trusteeship 

The United States has raised with certain other 
governments the question of joint responsibility 
for the security of a trusteeship. These discus- 
sions have thus far produced no tangible result. 
The United States is willing to undertake its share 
of responsibility for the provision of police forces 
which are required during a truce and a temporary 
trusteeship, along with other members who may 
be selected by the General Assembly and who are 
willing to carry out such a task in accordance with 
the will of the Assembly and with the provisions 
of the Chai'ter. 

While the United States is prepared to carry its 
fair share of the United Nations burden involved 
in such a temporary trusteeship, it is not prepared 
to act alone in this matter. Our participation will 
be conditioned upon a readiness of other govern- 
ments to provide similar assistance. 

It is easy, particularly in regard to Palestine, to 
point out difficulties and objections to any course 
of action. It is not easy to come forward with 
practical and responsible suggestions to meet the 
situation. We are confronted here witli a prob- 
lem of unusual complexity and one which pre- 
sents a most serious challenge to the United Na- 
tions. It can be met only if the mandatory power, 
the Jews and the Arabs of Palestine, and all of the 
members of the United Nations take an active part 
in seeking a settlement in the spirit of the Charter. 



RESOLUTION CONCERNING DRAFT STATUTE FOR THE CITY OF JERUSALEM > 



Whereas, the General Assembly by its Resolu- 
tion of 29 November 1947, requested the Trustee- 
ship Council to elaborate and approve a detailed 
Statute for the City of Jerusalem within five 
months of the date of passage, i.e., by 29 April 
1948 ; and 

The Trusteeship Council, 

Taking note of the resolutions adopted by the 
Security Council concerning the future govern- 

' U.N. doc. US/T/15. Adopted by the Trusteeship Coun- 
cil on Apr. 21, 1948. 

572 



ment of Palestine dated 5 March 1948, and the 
convocation of the Special Session of the General 
Assembly for the purpose of considering further 
"the Future Government of Palestine"; 

Transmits to the General Assembly for its in- 
formation, together with a copy of the draft 
Statute for the City of Jerusalem (Document 
T/118/Rev. 1), the following resolutitm adopted 
by the Trusteeship Council on 10 March 1948 : 

{Continued on page 578) 

Deparfmenf of State Bulletin 



The Little Assembly of the United Nations 



BY PHILIP C. JESSUP > 
Deputy U.S. Representative on the Interim Committee of the United Nations 



This first natioiiiil conference of the regional 
oiBcers of the International Relations Clubs is a 
significant event. I have followed for a good 
many years the work of the International Rela- 
tions Clubs with a gi-eat deal of interest and ad- 
miration for the results of your work. The estab- 
lishment and operation of these clubs constitute 
one of the substantial contributions of tlie Cai-negie 
Endowment toward the attainment of interna- 
tional jDeace. I hope this is merely the first of a 
series of similar national conferences. You 
regional officers of International Relations Clubs 
are in key positions. Your own opinions are im- 
portant, and you have an opportunity to exercise 
an influence on the thinking of an important sec- 
tion of American opinion. 

In giving you tonight a tliumb-nail sketch of the 
work of the Little Assembly of the United Nations, 
I should warn you that I approach the subject 
from an optimistic point of view. One of the 
most subtle definitions of the difference between 
the optimist and the pessimist is the one which 
says that the optimist is a person who thinJcs this is 
the best of all possible worlds while the pessimist 
is one who k?iows that it is. The pessimist sees 
no hope for improvement. The basic reason for 
optimism in considering the United Nations is the 
fact that there is ample opportunity for develop- 
ment and change. We are witnessing rather rapid 
developments and rather notable changes. The 
organization is still in its infancy, and one cannot 
expect that the developments and changes will 
constantly be revolutionary. A pessimistic out- 
look in regard to the United Nations comes from a 
concentration on the headlines in which you find 
stress on tlie crises and the difficulties. 

The optimistic outlook comes from a detailed 
examination of the facts and from putting those 
facts in their proper perspective. A good example 
of what I have in mind is afforded by the dispute 
between Albania and Great Britain regarding the 
damage to British warships in the Corfu Channel. 
That event in 1946 and the British charge that 
Albania was responsible for the damage made the 
headlines. Public attention was still concenti'ated 
on the case during the rather violent debates in the 
Security Council. The Russian defense of the 
Albanian position against the British contentions 
seemed to illustrate once again the so-called split 
between the "East and West". As soon as the case 
neared peaceful settlement when the Security 

May 2, 1948 



Council decided to recommend to the parties that 
they refer the legal questions involved to the Inter- 
national Court of Justice, the case began to drop 
out of the news. Wlren on Mai-ch 25 of this year, 
the Court handed down its decision, it received 
only minor coverage on inside pages of the papers. 
People's attention was not drawn to the fact that 
the United Nations Court in its first decision had 
rendered a unanimous opinion concurred in by all 
1.5 of the regular judges, with no split between the 
"East and West". There was very little in any of 
the news coverage of the trial to reveal the atmos- 
pliere of complete courtesy and good will which 
characterized all of the proceedings. 

Membership 

The seriousness of the international situation is 
apparent, and I have no desire to minimize it. Its 
essential nature has been made clear in recent ad- 
dresses and statements by the President and by the 
Secretai-y of State. The address by the Pi'esident 
to the Congress on March 17 contained far-reach- 
ing i-ecommendations concerning the steps neces- 
sary to enable the United States to make the peace 
secure and to prevent war. It is not my purpose 
tonight to discuss the recommendations regarding 
the military measures which the President has 
recommended. I do wish to remind you that he 
placed equal emphasis on our support of the United 
Nations. He repeated the point which had pre- 
viously been stressed on behalf of the Administra- 
tion that "the door has never been closed, nor will it 
ever be closed to the Soviet Union or any other 
nation which will genuinely cooperate in pre- 
serving the peace." However, the refusal of the 
Soviet Union to cooperate at any stage cannot and 
does not deter the other Members of the United 
Nations from pressing forward with the develop- 
ment and use of that organization. Fifty-one 
members of the United Nations are continuing 
their cooperation in the Little Assembly. The 
Soviet Union and the five other states which follow 
the Soviet lead are entitled to seats in the Little 
Assembly and may occupy them whenever they 
wish to join in this particular process of interna- 
tional cooperation. They could have taken their 
places this week, and they can take them next week. 

' Address made before the First National Conference of 
the Regional Officers of International Relations Clubs of 
the Carnegie Endowment for International Peace, St. 
Louis, Mo., on Apr. 10, 1948 and released to the press by 
the U.S. Mission to the U.N. on the same date. 

573 



THE ON/TED NATIONS AND SPECIAIIZBD AGENCIES 

The 51 states which are participating in the work 
of the Little Assembly are doing so in a spirit of 
broad accommodation and mutual confidence. 
The six other members would be free to participate 
in that same spirit or even to participate in angry 
and vituperative opposition. They are free to 
choose their own method. At present they choose 
the method of non-cooperation. 

It cannot be denied that their absence from the 
Little Assembly makes the process of discussion 
and negotiation and study easier than it would be 
if they were present. It must also be recognized 
that their absence may make some of the results 
of the Little Assembly's work less conclusive than 
they would be if all 57 members participated. 
However, I repeat, the absence of the six does not 
prevent progress; progress is being made. 

Origin and Functions 

Before discussing what the Little Assembly is 
doing and what it hopes to accomplish, I should 
like to go back briefly to the creation of this new 
subsidiary organ of the General Assembly. I 
should like to point out why it exists and just what 
its function is. 

The Little Assembly, or as it is officially called, 
"the Interim Committee of the General Assembly", 
was sponsored by the United States in the General 
Assembly last fall. It was not, however, a sud- 
den invention of the United States. It was not 
the product of any immediate crisis in Soviet- 
American relations. The general notion of creat- 
ing some General Assembly machinery which 
would be able to operate between sessions had 
been under discussion for some time. The Neth- 
erlands Delegation had raised it at an earlier ses- 
sion of the General Assembly. Various nongov- 
ernmental organizations in the United States had 
been studying the problem and had worked out 
certain proposals. Various individuals had been 
giving the matter their consideration. The De- 
I^artment of State was in touch with these various 
currents of thought and was able to utilize them. 

During the spring and summer of 1947, it be- 
gan to be apparent that if the United Nations was 
to succeed in reducing the atmosphere of tension 
which was becoming increasingly evident through- 
out the world, it would be necessary for the Gen- 
eral Assembly, as the great forum of world opin- 
ion, to take up seriously the role assigned to it 
under the Charter in the political and security 
field. It was realized that the move to develoj) 
the General Assembly's role might momentarily 
heighten the impression of basic political disagree- 
ment, but in balance it was believed that the re- 
sults would counteract these impressions and make 
general cooperation more possible in the future. 
It might be said that the treatment was analogous 
to that in which the patient's temperature is tem- 
poi'arily increased with the expectation that a cure 

574 



will subsequently be effected. It was clear that 
the General Assembly has certain powers and re- 
sponsibilities which hitherto it has not effectively 
discharged because of the lack of time available 
to it during its regular sessions. It was apparent 
that there were certain long-range problems in the 
political and security field which needed to be 
studied and which could not be studied by any or- 
gan of the United Nations then existing. It is 
a mistake to assume that the Little Assembly was 
created to overshadow and to by-pass the Security 
Council. It is correct to say that one reason for 
its creation was the desire to make the organiza- 
tion as a whole operate more effectively. 

You will recall that the Soviet Union strongly 
opposed the establishment of the Interim Com- 
mittee and, as I have noted it, has refused to coop- 
erate in its work. 'Wlien the resiilts of its work 
are reviewed, there will be no basis for suspecting 
the sincerity with which it has tackled its task, 
wliatever disagreement there may be with any of 
its recommendations. 

Relation to the General Assembly 

The Interim Committee, or Little Assembly, 
was established by the General Assembly as a sub- 
sidiary organ through an exercise of the power 
given to the Assembly by article 22 of the Char- 
ter. Every member of the United Nations is en- 
titled to a representative in the Little Assembly. 
It is a democratic body. The General Assembly 
confided to the Interim Committee a variety of 
tasks and of jiowers. One of its principal func- 
tions has not yet been exercised but may prove to 
be the source of its most important contribution. 
This is the function of studying items which are 
placed on the agenda of the General Assembly 
with a view to making reports and recommenda- 
tions to that body. Not all items which are placed 
on the agenda are witJiin the jurisdiction of the 
Little Assembly but only those which fall within 
the competence of the General Assembly in the po- 
litical and security fields. It includes only items 
placed on the agenda by a member of the United 
Nations or brought before the General Assembly 
by the Security Council. No such item can be 
taken up unless the Committee decides that the 
matter is both important and requires preliminary 
study. It would have been technically within the 
competence of the Little Assembly to make a pre- 
liminary study of the Palestine question for the 
Special Session of the General Assembly which 
begins next Friday. However, that question has 
already been very fully explored by a previous 
Special Session, by a regular session, by the Se- 
curity Council, and by the Trusteeship Council. 
In view of that preparatory work and of the short 
space of time intervening between the call for a 
Special Session and its actual meeting, it would 
not have provided a case in which action of the 

Department of State Bulletin 



Little Assembly would be called for. As other 
items in the political and security field are placed 
on the agenda of the regular session of the Gen- 
eral Assembly, it is to be anticipated that the In- 
terim Committee will find among tlicse items some 
on which it can most usefully render the prepara- 
tory service which the General Assembly had in 
mind. Previous experience indicates that many 
items of this character are extremely complicated 
and, when dumped in the lap of the General As- 
sembly, cannot possibly receive the amount of 
careful study which they requii-e. The Interim 
Committee, containing representatives of most of 
the states who will later deal with the matter in 
the General Assembly, is in a position to carry on 
these preliminary studies. 

The General Assembly also provided that the 
Interim Committee could consider any matters 
■which were specifically referi-ed to it by the 
General Assembly. Two of the questions which 
have already engaged the Little Assembly's atten- 
tion come within this category. 

Korean Question 

The first of these was the case of Korea. The 
Korean case illustrates the potential utility of a 
continuing body like the Interim Committee, not 
in preparing for the next session of the General 
Assembly but in following up the work of the 
last Assembly. At its last session the General As- 
sembly established a United Nations Temporary 
Commission on Korea. This action was taken 
after the United States placed on the agenda the 
problem of establishing Korean unity and in- 
dependence. You will recall that as a con- 
sequence of the war against Japan, both the 
United States and Russian forces moved into 
Korea, the American force from the south and the 
Eussian force from the north. As a matter of 
practical military convenience, it was agreed that 
the American forces would take the surrender of 
the Japanese up to a line designated as the 3Sth 
parallel and that the Eussian Army would take 
the surrender north of that line. It was not then 
contemplated that this line would have more than 
this temporary and practical significance in con- 
nection with the Japanese surrender. However, 
repeated attempts by the United States to reach 
agreement with the Eussians for the fulfilment of 
the pledge made at Cairo to establish a united, 
independent Korea failed to bring results. The 
United States then suggested four-power consul- 
tations, bringing in Great Britain and China, but 
the Soviet Union refused. At that point, the 
United States turned to the United Nations and 
asked the consideration of the General Assembly. 
The Korean Commission was authorized by the 
General Assembly to observe elections throughout 
Korea. The Commission went to Korea and im- 
mediately found itself in difficulty. The Ukrain- 

May 2, 1948 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

ian member of the Commission refused to take 
his seat, and the Soviet military authorities re- 
fused even to receive a letter from the Commission. 
As Mr. Gromyko informed the Secretary-General 
of the United Nations, the Soviet Union took a 
"negative attitude" toward the Korean Commis- 
sion and its work. Faced with these develop- 
ments, the Commission decided to exercise the 
privilege which the General Assembly had con- 
ferred upon it of consulting with the Interim 
Committee. The chairman of the Commission 
and its secretary flew back to Lake Success and 
laid the problem before us. The matter was dis- 
cussed very fully, very frankly, and without acri- 
mony. The Interim Committee was not given the 
authority to issue instructions to the Korean Com- 
mission, and it did not attempt to do so. It did 
as a result of its discussions conclude the con- 
sultation by expressing its view to the Korean 
Commission that it was incumbent upon it to 
proceed to observe elections in as much of Korea 
as is accessible to it. The southern zone, which 
is under American occupation and where full co- 
operation is afforded, contains two thirds of the 
population. It was hoped that the Soviet Union 
would change its attitude and cooperate with the 
United Nations by permitting the Korean people 
to take part in free elections in the northern zone 
as well. So far, that cooperation has not been 
given. I shall not attempt to discuss all the angles 
of the Korean situation, which is still a difficult 
one, but I may say that from the point of view 
of the history of the Little Assembly, the con- 
sultation with the Korean Commission seems to 
have been useful and to have demonstrated the 
value of this subsidiary organ in matters of this 
kind. If the Little Assembly had not been in 
existence, it is quite possible that a Special Session 
of the General Assembly would have had to be 
called to deal with the problem. The Little As- 
sembly affords a more convenient and far less ex- 
pensive instrumentality for general discussions on 
such a matter, even though the Little Assembly 
does not have the power to make recommendations 
to anyone except its parent body. 

Veto Question 

The other question which was specifically re- 
ferred by the General Assembly to the Interim 
Committee was the question of the veto. It is not 
necessary to remind you of the nature of this 
problem. When the Little Assembly began its 
sessions in January, there was a definite feeling of 
disappointment on the part of some delegations 
when the United States suggested that proposals 
on the veto problem should be submitted to the 
Interim Committee on or about March 15. Some 
had evidently hoped that the United States would 
come forward at once with a fully worked out 
program which would serve as a basis of the In- 

575 



THE UNITED NATIONS AND SPECIAUZBD AGENCIES 

terim Committee's work. The United States, how- 
ever, has always had the view in regard to the 
Interim Committee that one of its chief vahies 
would lie in its nature as a study group. The 
United States has consistently avoided anything 
which might suggest an attempt to regiment the 
discussion in that body. When matters are 
brought before the Security Council or before the 
General Assembly, the proposing states are apt 
to take definite positions and to feel that their 
prestige is involved in sustaining those positions 
and in securing for them general approval. The 
Interim Committee is especially useful in afford- 
ing an opportunity to states to advance tentative 
suggestions for the purpose of free discussions. 
This is particularly true in regard to the veto. 
That subject has in the past elicited strong state- 
ments illustrating various points of view, most of 
them uncomplimentary to the right of veto. Some 
of them have pointed out that the trouble has not 
been with the right of veto as such but with the 
abuse of that right. The subject had never been 
fully explored in a dispassionate and thorough 
way in an international gathering since the Char- 
ter was adopted at San Francisco. Actually, the 
Interim Committee is now engaged in that kind 
of study. Currently, a working group of a sub- 
committee of the Little Assembly composed of 
the representatives of 10 states is studying one 
by one a list of 98 possible decisions whicTi the 
Security Council might make in applying the 
Charter or the Statute of the International Court 
of Justice. Of those 98 possible decisions, the 
working group has already reached agreement that 
36 of them are procedural in nature. In regard to 
some six others, it has already been agreed that 
whether procedural or not, it would be desirable 
that they should be decided by vote of any seven 
members of the Security Council, that is, that the 
veto should not apply. This approach is in line 
with the proposal submitted by the United States 
to the Interim Committee on March 10. In that 
proposal, we suggested 31 categories of Security 
Council decisions, all of which tlie United States 
feels should be made by a vote of any seven mem- 
bers of the Security Council in order to insure the 
effective exercise by the Security Council of its 
responsibilities under the Charter. The United 
States list included some questions which are 
clearly procedural and some in regard to which 
there is a good deal of controversy. The first item 
on the United States list is that having to do with 
the admission of states to membership in the 
United Nations. As you know, the veto has so 
far been exercised by the Soviet Union on 10 oc- 
casions to prevent tlie approval of applications 
for membership. The working group of the In- 
terim Committee has agreed that it would be de- 
sirable to have these questions decided by the vote 
of any seven members of the Security Council. 
The United States proposals also suggest that the 

576 



veto should not be used in what are commonly 
called "chapter VI decisions" in the Security 
Council, that is, the decisions designed to bring 
about the pacific settlement of international dis- 
putes. The United States has not proposed to give 
up the veto under chapter VII which deals with 
actual enforcement measures. 

It was the United States suggestion that an 
attempt should be made to reach agreement upon 
a list of categories of this kind. If such agreement 
were reached, it was suggested that the Interim 
Committee should recommend to the General As- 
sembly that it in turn recommend to the permanent 
members of the Security Council that they mutu- 
ally agree that the indicated voting procedures 
should be followed in these categories of decisions. 
Tlie Interim Committee is still in the process of 
discussing which categories of decisions should be 
included in such a list. It has not yet grappled 
with the problem of implementing such a lecom- 
mendation. 

It is sometimes forgotten that the veto question 
involves more than the differences of opinion be- 
tween the Soviet Union and the United States. 
It is by no means clear as yet whether all of the 
other members of the United Nations are agreed 
on how far it is now desirable and possible to go 
under the Charter in liberalizing the voting proce- 
dure in the Security Council. It certainly is a 
wise first step to find out whether a large majority 
of the members of the General Assembly are in 
agreement on what represents a desirable program, 
quite aside from the question of what may actually 
be done. The United States has not closed the 
door to possible amendment of the Charter, but 
it does believe that its proposal suggests a desirable 
first step. I believe that the study of this issue 
in the Little Assembly is currently another indi- 
cation of the utility of this body. 

Pacific Settlement of Disputes 

In its resolution establishing the Interim Com- 
mittee, the General Assembly gave it another func- 
tion. This function was to consider and report 
to the General Assembly on "methods to be 
adopted to give effect to that part of Article 11 (1) , 
which deals with the general principles of coopera- 
tion in the maintenance of international peace and 
security, and to that part of Article 13 ( la) , which 
deals with the promotion of international coop- 
eration in the political field". Although the Char- 
ter under article 24 confers on the Security Coun- 
cil "primary responsibility for the maintenance 
of international peace and security", the General 
Assembly is also given important powers and re- 
sponsibilities in this field. As the discussions in 
the Little Assembly have developed, attention 
under this topic has so far been focused on the 
problem of improving the means for the peaceful 
settlement of international disputes. For instance, 

Department of State Bulletin 



the United States, iointly with China, has sub- 
mitted proposals looking toward the establishment 
of panels from which commissions of investiga- 
tion or commissions of conciliation could be 
formed either by the parties or by the Security 
Council or by the General Assembly. The same 
joint proposal has suggested that the General As- 
sembly might prepare something in the nature of 
a code of civil procedure which would indicate to 
states the various procedures which might most 
conveniently be utilized for the settlement of dis- 
putes. You will recall that article 33 of the 
Charter calls upon the parties to any dispute, the 
continuance of which is likely to endanger the 
maintenance of international peace and security, 
"first of all" to seek a solution by peaceful means 
of their own choice. There seems to be developing 
a tendency to disregard this "first of all" injunc- 
tion and for states to turn immediately to the Se- 
curity Council or to the General Assembly. It 
would certainly be undesirable to close the doors 
of these great organs to disputing states. On the 
other hand, there is a great deal of political wis- 
dom in this provision of the Charter because it 
recognizes that when disputes are aired in either 
the Security Council or the General Assembly, the 
positions of the disputant states are apt to become 
crystallized, and at times it may be more difficult 
for them to reach agi-eement. In many situations, 
the preliminary use of less public and less dramatic 
means of settlement may be of very great value. 
All angles of this situation and all possible meth- 
ods of meeting the problem are now being explored 
by a subcommittee of the Little Assembly. Vari- 
ous delegations other than those of the United 
States and China have submitted specific sugges- 
tions and work is going forward. 

It is important to bear in mind in this connec- 
tion that the Charter is a constitutional document 
and not an elaborate bit of legislation designed to 
cover every contingency. The Charter lays down 
the main principles and establishes the main ma- 
chinery and then, like all intelligent constitu- 
tional instruments, leaves it to the course of de- 
velopment to work out the detail. This is the first 
time that any steps have been taken to explore 
the details of this field. You will remember that 
the General Assembly in 1946 undertook to begin 
another task which was entrusted to it by article 
13, (Iff), namely, the encouragement of the pro- 
gressive development of international law and 
its codification. It appointed a committee to rec- 
ommend methods, and as a result of the report of 
that committee it has decided to establish a per- 
manent Intei'national Law Commission. Simi- 
larly, under article 11 work has been begun in con- 
nection with disarmament. But, prior to the es- 
tablishment of the Little Assembly, nothing had 
been done of comparable character in connection 
with the General Assembly's broad role in the 
political field and in connection with the general 

May 2, 7948 



THE UNIUD NATIONS AND SPBCIAilZED AGENCIBS 

principles of cooperation in the maintenance of 
international peace and security. 

One should not expect that the Little Assembly 
will now provide the final answers. If one looks 
back over the history of the League of Nations 
one will find that there was a continuing series of 
studies ranging from 1920 up through the early 
1930's, all designed to elaborate the means of pa- 
cific settlement of disputes. Those efforts resulted 
in the drafting of a number of important and val- 
uable documents, such as the General Act of Ge- 
neva of 1928. This League of Nations experience 
is being restudied and re-evaluated. So is the 
comparable experience in the Inter-American sys- 
tem which is now being re-examined at the Bogota 
conference. The Little Assembly can only break 
ground for a continuation of studies which ought 
to go on over a great many years. Some people 
seem to think that it is futile to start studies of this 
kind now in the midst of a period of political ten- 
sion. The same objection was raised to the first 
steps taken in regard to the progressive develop- 
ment and codification of international law. The 
answer to these objections is that when one deals 
with long-range problems of this character, it is 
never too soon to begin. Moreover, the very fact 
that states are embarking on work involving a 
concentration on peace may make a contribution to 
the relief of the tension which superficially seems 
to make the work itself inappropriate. 

Future Status 

The General Assembly also asked the Interim 
Committee to study itself. It asked it to report 
to the session which meets in September on the 
advisability of establishing a permanent com- 
mittee of the General Assembly to perform such 
duties as those now entrusted to the Interim Com- 
mittee. The Interim Committee, was, of course, 
established on an experimental basis, and it goes 
out of existence when the General Assembly meets 
in the fall. The Little Assembly has appointed 
another subcommittee which is studying the im- 
plications of this problem. Various suggestions 
have been made concerning additional powers 
which might be given to the Interim Committee 
if it is continued beyond this year, for example, 
the suggestion made by the Belgian Delegation 
that the Interim Committee, if continued, should 
be given the power to request advisory opinions 
from the International Court of Justice. It is too 
soon to give a final answer to the question whether 
the experience of the Interim Committee justifies 
its continuance. 

I have ali'eady suggested that the Korean con- 
sultation and the work on the veto and the study 
of political cooperation indicate the value of a 
body of this kind. There has not yet been an 
opportunity to determine how useful it can be 

577 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

in smoothing the path for the General Assembly 
and reducing the burden of its work. If the Little 
Assembly lives up to expectations in that respect 
as well, it is not unreasonable to suppose that the 
General Assembly will want to continue it at 
least on an experimental basis for another year. 

Accomplishments 

The Little Assembly has not been a spectacular 
body. Because the Korean question involves the 
relations between the United States and the Soviet 
Union, the consultation with the Korean Commis- 
sion attracted some attention, but in general its 
work has received only brief notice in the press. 
This is not surprising, and it is not to be deplored. 
On the other hand, it is not to be taken as an index 
of the value of the work. The studies of the 
veto problem may prove to be of considerable polit- 
ical and constitutional significance in the histoi-y 
of the United Nations. At any time, some state 
may bring up before the Interim Committee for 
study some new suggestion, perhaps one designed 
to promote cooperation in the maintenance of in- 
ternational peace and security by some other 
method. Whether spectacular or not, the work 
which is being done is a current indication of 
the vitality and utility of the United Nations. 

There is a danger that in attempting to explain 
the operations of a body which is not widely 
known, one will give the impression of exag- 
gerating its importance. Compared, for instance, 
to the problems currently being handled in the 
Security Council, the work of the Little Assembly 
may be said to be of relatively minor significance, 
but the kind of long-range study which is being 
made and the precedent for continued cooperative 
study which is being set, may quite possibly have 
an effect long after the specific political issues be- 
fore the Security Council at any one time have 
been settled and have passed from the ai'ena of 
political conflict. 

If it should unhappily prove to be the case that 
the Security Council should continue to meet with 
serious difficulty in discharging its primary re- 
sponsibilities in the field of international peace and 
security, it is hard to escape the conclusion that the 
emphasis on the potential role of the General As- 
sembly in this field will increase. It must not be 
forgotten tliat the General Assembly represents 
the entire membership of the United Nations and 
so does the Little Assembly. The history of the 
League of Nations indicates a natural trend to- 
ward the democratization of any international 
organization of this character through the de- 
velopment of the functions of those organs on 
which the membership is most broadly represented. 
If the General Assembly continued to meet only 
once a year, the difficulty in the way of its dealing 
with current political issues would be apparent. If 
it decides to keep in existence, between its sessions, 
some body which represents it and on which all 

578 



members of the organization are represented, the 
picture may change. Of course, a Little Assembly 
in its activities could not go beyond the powers 
entrusted to the General Assembly which creates 
it. It could never infringe upon the special fields 
of authority entrusted to the Security Council. 

For people like you who are interested in the 
whole problem of the United Nations as an instru- 
ment for international cooperation, I suggest that 
the experiment of the Little Assembly is worth 
your attention. I venture to suggest also that the 
more familiar you become with the details of its 
operation the more you will add to a store of 
facts which will justify an optimistic point of 
view. 

As one goes down the long corridor of years, 
one sees a series of doors to right and left. One 
is tired — tired of the wars which nobody wants. 
One knows tliat some of these doors open on rooms 
which are comfortably furnished and where one 
may be at ease. One tries the handles of these 
doors and they are locked. We do not have the 
key. At last one opens a door on a barely fur- 
nished room where perhaps one finds a hard 
wooden chair on which to sit or a straw mattress on 
the floor on which to lie. One takes advantage 
of this respite but is not satisfied and soon goes 
on down the corridor, trying otlier doors. The 
corridor stretches on beyond my life time and per- 
haps beyond yours. At one moment we are 
groping in the corridor and it is dark. At 
another moment we are at a place where we gather 
new strengtli. But if enough of us join in the 
quest, some day we shall find the right door, and 
it will not be locked or, if it is locked, one of us 
will have the key. 

Statute for Jerusalem — Continued from page B7S 

"The Trusteeship Council 

"Having Been DiBEcrEO by the General As- 
sembly, in accordance with Section C of Part 
III of the Phm of Partition with Economic 
Union (Document A/516), to elaborate and ap- 
prove a detailed Statute of the City of Jerusa- 
lem within five months from the adoption by 
tlie General Assembly of its resolution on the 
Future Government of Palestine; and 

"Having Completed its discussion on the 
Draft Statute; 

'■'■Decides that the Statute is now in satisfac- 
tory form and agrees that the question of its 
formal approval together with the appointment 
of a Governor of the City, shall be taken up at a 
subsequent meeting to be lield not later than one 
week before 29 April 1948" ; and 

Refers the matter to the General Assembly for 
such further instructions as the General Assembly 
may see fit to give. 

Department of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



Calendar of Meetings ' 



In Session as of May 1, 1948 

Far Eastern Commission , 

United Nations: 

Security Council , 

Military Staff Committee , 

Atomic Energy Commission , 

Commission on Conventional Armaments 

Security Council's Committee of Good Offices on the Indonesian 

Question. 
General Assembly Special Committee on the Greek Question 

Commission for Palestine 

Temporary Commission on Korea 

Interim Committee of the General Assembly 

General Assembly: Second Special Session on Palestine 

Ecosoc (Economic and Social Council) : 

Transport and Communications Commission: Third Session . . . . 

Economic and Employment Commission: Third Session 

Statistical Commission: Third Session 

EcE (Economic Commission for Europe) : Third Session 

Cfm (Council of Foreign Ministers) : 

Commission of Investigation to Former Italian Colonies 

Deputies for Austria 

Provisional Frequency Board 

First Meeting of Planning Committee on High Frequency Broadcasting . 
IcAO (International Civil Aviation Organization) : Rules of the Air and Air 

Traffic Control Practices Division. 

International Conference on Safety of Life at Sea 

International Administrative Aeronautical Radio Conference: Preparatory 

Committee. 
Conference To Plan for Establishment of an International Institute for 

Hylean Amazon. 

Scheduled for May 1948 

Cfm (Council of Foreign Ministers): Deputies for Italian Colonial Prob- 
lems. 
United Nations: 

Ecosoc (Economic and Social Council) : 

Commission on Narcotic Drugs: Third Session 

Population Commission: Third Session 

Human Rights Commission: Third Session 

EcE (Economic Commission for Europe) : 

Committee on Electric Power 

Panel on Housing 

Committee on Coal 

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

International Teachers Organization 

Committee of Experts for the Study of a Plan for Translations of Great 

Books. 
Meeting of Experts on Art and General Education 



Washington . . . 

Lake Success . . . 
Lake Success. . . 
Lake Success . . . 

Lake Success . . . 
Lake Success . . . 

Salonika 

Lake Success . . . 

Seoul 

Lake Success . . . 
Flushing Meadows 

Geneva 

Geneva 

Lake Success . . . 

Geneva 



Former Italian Colonies 



London . . 

Geneva . . 

Geneva . . 

Montreal . 

London . . 
Geneva . . 

Iquitos, Peru 

London . . 

Lake Success 
Lake Success 
Lake Success 

Geneva . . 
Geneva . . 
Geneva . . 

Paris . . . 
Paris . . . 

Paris . . . 



1946 

Feb. 26- 

Mar. 25- 
Mar. 25- 
June 14- 

1947 

Mar. 24- 
Oct. 20- 

Nov. 21- 

1948 

Jan. 9- 
Jan. 12- 
Feb. 23- 
Apr. 16- 

Apr. 12- 
Apr. 19- 
Apr. 26- 
May 7 
Apr. 26- 

1947 

Nov. 8- 

1948 

Feb. 20- 
Jan. 15- 
Mar. 22- 
Apr. 20- 

Apr. 23- 
Apr. 24- 

Apr. 30- 



May 1 * 



May 3- 
May 10- 
May 20- 

May 10- 
May 13- 
May 25- 



May 3-4 
May 10-14 

May 11-15 



' Prepared in the Division of International Conferences, Department of State. 
2 Tentative. 



Moy 2, J 948 



579 



Calendar of Meetings — Continued 



UNESCO — Continued 

Conference on International Theatre Institute 

Pan American Sanitary Organization: Meeting of Executive Committee . 
Who (World Health Organization) : 

Expert Committee for the Preparation of the Sixth Decennial Revision 
of the International Lists of Diseases and Causes of Death. 

Expert Committee on Malaria: Second Session 

IcAO (International Civil Aviation Organization) : 

Second European-Mediterranean Regional Air Navigation Meeting . . 

Facilitation Division 

Second North Atlantic Regional Air Navigation Meeting 

Legal Committee: Annual Meeting 

Ieo (International Refugee Organization) : Sixth Part of First Session of 
Preparatory Commission. 

Meeting of the South Pacifie Commission 

Fourth International Congresses on Tropical Medicine and Malaria 
(including exhibits). 

International Telegraph Consultative Committee 

International Administrative Aeronautical Radio Conference 

Health Congress of the Royal Sanitary Institute 

Sixth Meeting of the Caribbean Commission 

International Sugar Council 

Pan American Union: Meeting of Governing Board 



Praha' 

Washington . . . 

Geneva 

Washington . . . 

Paris 

Geneva 

Paris 

Geneva 

Geneva 

Sydney 

Washington . . . 

Brussels .... 
Geneva .... 
Harrogate, England 
San Juan, P.R. 
London .... 
Washington . . . 



1948 

May 312- 
May 3- 

May 4- 

May 19-25 

May 4- 
May 17- 
May 17- 
May 28- 
May 4- 

May 10- 
May 10-18 

May 10-29 

Mav 15- 
Mav 24-28 
May 24-29 

May 28- 

May 2 



2 Tentative. 



Activities and Developments » 

U.S. DELEGATION TO IRO PREPARATORY 
MEETING 

[Released to the press April 19] 

The Department of State announced on April 
19 the composition of the United States Delegation 
to the Sixth Part of the First Session of the Pre- 
paratory Commission for the International Refu- 
gee Organization (Iro) which is scheduled to be 
held at Geneva, May 4-14, 1948. The United 
States Delegation is as follows : 

Chairman 

George L. Warren, Adviser on Refugees and Displaced 
Persons, Department of State; U.S. Representative 
on the Preparatory Commission for the Ieo 

Adviser 

John D. Tomlinson, Assistant Chief, Division of Inter- 
national Organization Affairs, Department of State 

Administrative Assistant 

Helen Norman, U.S. Delegation, International Telecom- 
munication Union High Frequency Board, Geneva 

The meeting will consider, among other things, 
the status of adherences to the Iro constitution, the 
operating reports of the Executive Secretary, and 
appropriate action in the determination of policies 
as indicated in these reports. 



The Preparatory Commission for the Iro was 
established in order to insure the continuity of 
service to displaced persons after July 1, 1947, 
when Unrra and the Intergovernmental Commit- 
tee on Refugees went out of existence, and to take 
the necessary measures to bring the permanent 
organization into operation as soon as possible. 

The Iro will come into existence when 15 states 
whose contributions amount to 75 percent of the 
operational budget have signed the constitution. 
The United States, in addition to signing the con- 
stitution, is a signatory to the agreements estab- 
lishing the Preparatory Commission and ipso facto 
a member of the Preparatory Commission. 

The Fifth Part of the First Session of the 
Preparatory Commission for the Iro was held at 
Geneva, January 20-31, 194:8. 

U.S. DELEGATION TO ICAO MEETINGS 

[Released to the press April 22] 

The Acting Secretary of State announced on 
April 22 the composition of the United States 
Delegation to the second European-Mediterranean 
Regional Air Navigation Meeting and to the 
Second North Atlantic Regional Air Navigation 
Meeting, botli of which have been called by the 
International Civil Aviation Organization (Icao). 
These regional meetings are scheduled to convene 



580 



Deparlment of S/afe Bulletin 



at Paris — the first on May 4 and the second on 
May m, 1948. 

The United States Delegation will be headed 
by Clifford P. Burton, Chief of the Technical 
Missions Branch of the Civil Aeronautics Admin- 
istration, Department of Commerce. Other mem- 
bers of the Delegation are : 

Advisers 

James F. Angler, Chief of Foreign Section, Office of Federal 
Airways, Civil Aeronautics Administration, Depart- 
ment of Commerce 

Maj. John W. Baska, Chief of Icao Liaison Branch, Air 
Transport Command, Department of the Air Force 

Virgil L. Clapp, Communications Specialist, Department 
of the Air Force 

Alick B. Currie, Airways Operations Specialist, Civil 
Aeronautics Administration, Department of Commerce 

James D. Durkee, Chief, International Aviation Section, 
Aviation Division, Federal Communications Com- 
mission 

Edmund T. Frldrich, Project Engineer, Aeronautical Radio, 
Inc., Wasliington 

Lt. Col. Jesse R. Guthrie, Fifth A.A.C.S. Wing, U.S.A.F. 

Norman R. Hagen. Meteorological Attach^ American 
Embassy, London 

Harland E. Hall, Aeronautical Specialist (Communica- 
tions), Civil Aeronautics Administration, Department 
of Commerce 

Kendall G. Hathaway, Technical Assistant, International 
Standards Division, Civil Aeronautics Board 

George T. van der Hoef, Acting Director, Programs Divi- 
sion, Office of Publications, Department of Commerce 

Lt. Comdr. George E. Howarth, Chief, Navigational Sec- 
tion, Electronics Division, U.S.C.G., Department of the 
Treasury (Lieutenant Commander Howartli will at- 
tend only the North Atlantic Regional Meeting.) 

Maj. John Kline, Headquarters, U.S.A.F., Europe 

Commander Edwin S. Lee, tJ.S.N., Assistant Chief, Civil 
Aviation Section, Department of the Navy 

Lt. Comdr. John B. McCubbin, Search and Rescue Agency, 
U.S.C.G., Department of the Treasury 

Col. Edward W. Maschmeyer, Fifth Weather Group, 
U.S.A.F. 

Mr. Mehrling, Office of Military Government, U.S. Zone 

Oren J. Mitchell, Chief of Operations Inspection Staff, 
1st Region, Civil Aeronautics Administration, New 
York City 

Ray F. Nicholson, Adviser, International Air Traffic Con- 
trol Standards, Civil Aeronautics Administration, 
Department of Commerce 

Donald W. Nyrop, Operations Division, Air Transport 
Association of America, Washington 

Col. David C. G. Schlenker, Headquarters, U.S.A.F., 
Europe 

Walter B. Swanson, Adviser, International Air Traffic 
Control Standards, Civil Aeronautics Administration, 
Department of Commerce 

Secretary 

Allen F. Manning, Division of International Conferences, 
Department of State 

Tlie First European-Mediterranean Regional 
Meeting was held at Paris in April-May 1946 and 
the First North Atlantic Regional Meeting at Dub- 
lin in March 1946. These initial meetings re- 
sulted in a series of recommended practices and 
procedures for consideration and approval by the 
Icao Council at Montreal regarding airline oper- 

May 2, 1948 



ACTIVITIES AND DEVELOPMENTS 

ations, air-traffic control, communications, search 
and rescue, meteorology, aerodromes and ground 
aids, and manuals. Subsequently, several com- 
mittee meetings were held to define further and to 
clarify air-traffic control and operations problems, 
and a regional office was established at Paris. 
It is expected that delegations from approxi- 
mately 26 countries will attend the European- 
Mediterranean Regional Meeting and that dele- 
gations from 18 countries will attend the North 
Atlantic Regional Meeting. 

U.S. PARTICIPATION IN WHO 
ASSEMBLY PENDING 

[Keleased to the press April 24] 

Acting Secretary of State Robert A. Lovett on 
Ai^ril 24 informed Dr. Brock Chisholm, the Ex- 
ecutive Secretary of the Interim Commission of 
the World Health Organization, that this Govern- 
ment would, for the time being, refrain from nam- 
ing observers to the World Health Assembly 
scheduled to meet in Geneva, on June 24, 1948, 
since legislation providing for United States mem- 
bership in the World Health Organization is pend- 
ing before the Congress.^ 

Mr. Lovett expressed his hope that it might be 
possible for the United States to participate fully 
in the World Health Assembly as a member of the 
World Health Organization. 

The text of Mr. Lovett's letter is as follows : 

Apnl 24, 1948 
Ser: I acknowledge receipt of your letter of 
April 7, 1948, transmitted to me by the United 
States Representative, inviting the United States 
to send one or more Observers to the World Health 
Assembly, which will be convened in Geneva, 
Switzerland, on June 24, 1948. I also note that 
you invite the United States to send a Delegation 
to the World Health Assembly in the event this 
Government becomes a Member of the World 
Health Organization prior to June 24, 1948. 

Legislation providing for United States mem- 
bership in the World Health Organization is still 
pending before the Congress. In view of my con- 
tinued hope that the United States will become a 
Member of this organization in sufficient time to 
participate fully in the World Health Assembly, 
I refrain from naming Observers at the present 
time. However, in due course, you will be notified 
of the names of such Observers or Delegates as 
the United States may find it possible to send to 
the Assembly. 

Very truly yours, 

Robert A. Lovett 

Acting Secretary of State 

of the United States of America 



" Bulletin of Apr. 25, 1948, p. 540. 



581 



THE RECORD OF THE WEEK 



Fiftieth Anniversary of Cuban Independence 



ADDRESS BY THE PRESIDENT' 



Mr. Pkesident, Mr. Speaker, Members of the 
Congress, Distinguished Guests : 

It is eminently fitting that we should assemble 
here today to pay solemn tribute to the heroic 
champions of himian freedom who brought about 
the liberation of Cuba. The commemoration of 
half a century of Cuban independence recalls the 
valor of the Cuban patriots and American soldiers 
and sailors who gave liberally of their strength 
and their blood that Cuba might be free. From 
that chapter in man's age-old struggle for free- 
dom, we can draw inspiration for the hard tasks 
that conf I'ont us in our own time. 

The struggle for Cuban independence, like every 
other effort of its kind, was fraught with hardship 
and disappointment. But the unconquerable de- 
termination of the Cuban people to win freedom 
overcame all obstacles. From the first, the fight 
for liberation by Cuban pati-iots evoked the sym- 
pathy of the people of the United States. Those 
in quest of independence have always had the sup- 
port of the people of this Nation. 

Americans watched with admiration the begin- 
ning of the final struggle for independence led by 
Jose Marti and his valiant compatriots, Gomez, 
Maceo, and Garcia. Our people made increas- 
ingly plain their desire to assist the Cuban patri- 
ots. The sinking of the United States battleship 
Maine in Havana harbor on February 15, 1898, 
crystallized the growing sentiment in this country 
for joining forces with the Cuban people in their 
fight for self-government. 

The Congi-ess passed a joint resolution express- 
ing in clear terms the conviction of the men and 
women of the United States that the people of the 
Island of Cuba should be free and independent. 
It also expressed our determination that once the 
Cuban people were liberated, they, and they alone, 
should govern the Island of Cuba. It is the pas- 
sage of this joint resolution, 50 years ago today, 
which we are commemorating in this ceremony. 

This joint resolution, the foundation upon which 
our relations with the Cuban Republic are based, 
brought the military and naval forces of the 



' Delivered on Apr. 10, 1948, before a joint session of 
the Congress in observance of tbe Cuban anniversary, and 
released to the press by the White House on the same date. 

582 



United States into the conflict at the side of the 
Cuban patriots. The names of Shafter, Roose- 
velt, Hobson, and many others were joined with 
those of Gomez, Maceo, and Garcia. 

For four months, as Americans fought side by 
side with their Cuban allies, the opposing forces 
were driven back. On August 12, Spain signed 
the protocol of peace and agreed to give up Cuba 
and withdraw her forces. The dream of Jose 
Marti became at last a glorious reality. 

The sympathetic interest of the United States 
in the welfare of the Cuban people did not end 
with victory. We assisted the Cubans in repair- 
ing the ravages of war and overcoming problems 
of health and sanitation. The comradeship of 
war was succeeded by the notable peacetime col- 
laboration of General Wood, General Gorgas, 
Doctor Walter Reed, Doctor Agramonte, and 
other men of science and public life. 

From these sound beginnings, relations between 
the Republic of Cuba and the United States have 
continued through the j'ears on a mutually satis- 
factory basis. I believe that few nations of dif- 
fering languages and cultures have drawn so 
closely together during the last 50 years, freely and 
without duress, as have Cuba and the United 
States. 

Many other factors have contributed to the un- 
derstanding and affection between our two nations. 
Ti'avel between the two countries is extensive and 
our peoples have come to know each other, and 
each other's customs and cultures, at first hand. 
Trade between the two nations has increased 
steadily in volume and in importance. The ex- 
perience of Cuba and the United States refutes the 
false assumption that neighboring peoples of dif- 
ferent races and cultures are naturally antagonis- 
tic. On the contrary, the history of Cuban- 
American relations demonstrates that when people 
of different countries enjoy opportunities for fre- 
quent personal contacts and a free exchange of 
information and knowledge, their ties of friend- 
ship grow stronger through the years. 

Although our two countries are separated by 
only 90 miles of water, and vary greatly in size 
and strength, they collaborate harmoniously on a 
basis of equal sovereignty and independence of 
action. This relationsliip provides living proof 

Department of State Bulletin 



of the ability of nations great and small to live in 
peace and to enjoj' the full benefits of commercial 
and cultural exchanjie. The same harmonious re- 
lationship can prevail among all nations, provided 
they possess a genuine desire for peace and a firm 
resolve to respect the freedom and the riglits of 
othei-s. 

This is a truth the whole world shoidd take to 
heart. The basic requirement for peace and un- 
derstanding is the will that peace and understand- 
ing shall prevail. The will to avoid war and to 
seek an understanding that precludes all violence 
and aggression is one of the most profound and 
universal concepts held bj' the peoples of this 
earth. I am convinced that the plain people of 
the world, of whatever race or nationality, desire 
nothing more passionately than freedom for them- 
selves and for others — freedom to be left in peace 
to earn their daily bread af tei' their own fashion — 
freedom to leave their neighbors in peace to do 
likewise. 

This is the great issue of our day : Wliether the 
luiiversal longing of mankind for peace and free- 
dom shall prevail, or whether it is to be flouted and 
betrayed. The challenge of our time, like the one 
met so successfully by those we honor today, tests 



THE RECORD Of THE WEEK 

the mettle of men and their institutions of govern- 
ment. Our own moment of history also calls for 
calmness, for courage, for strength, and above all 
for the steadfast resolution that, come what may, 
we shall stand for the right. 

We honor today the memory of a noble few 
among the countless heroes who have fought to 
advance the cause of human freedom through the 
ages. 

Let us avail ourselves of this occasion to refresh 
our faith in freedom and to rededicate this Nation 
and ourselves to the principles of liberty, justice, 
and peace. 

STATEMENT BY SECRETARY MARSHALL' 

On the occasion of the fiftieth anniversary of the 
independence of Cuba and concurrently with the 
meetings of the Ninth Conference of American 
States the United States joins with the other free 
and independent nations of the earth in an expres- 
sion of fraternity and friendship addressed to the 
Cuban nation. The Congress of the United States 
is meeting today in joint session in honor of the 
occasion and we here in Bogota join with our 
Congress and the people of my country in extend- 
ing warm felicitations to a sister republic. 



Italy Expresses Appreciation of Proposal for Return of Trieste 

EXCHANGE OF LETTERS BETWEEN ITALY AND THE UNITED STATES 



[Beleased to the press by the White House April 14] 

The President lias sent the following letter to the 
Ambassador of Italy 

April 9, WIS 
Mt dear Mk. Ambassador : 

I have read with pleasure your letter of March 
twentieth, concerning the proposal of this Govern- 
ment, together with the Goverimients of the United 
Kingdom and France, for the return of the Free 
Territory of Trieste to Italy. 

I wish to take this opportunity to express to you 
again the friendship and good will which the 
American jjeople feel towards the people of Italy. 
Very sincerely yours. 




^ Issued at Bogota on Apr. 19, and released to the press 
in Washington on Apr. 20. 

May 2, 1948 



Text of the Italian Ambassador's letter to the 
President 

March W, 191t8 
Mt dear Mr. President: 

Allow me to convey to you the feelings of the 
deepest gratitude of the Italian Government and 
the Italian people for the momentous decision 
taken by this Country in view of the return of the 
Free Territory of Trieste to its Motherland. 

I am sure that this just and generous decision 
will be received with the greatest exultation, not 
only by the entire Italian nation, but also by the 
inhabitants of the Free Territory of Trieste who 
have never abandoned their hopes of being restored 
to their country and will be welcomed in Italy as 
a f urtlier proof of the fraternal friendship of the 
United States towards her. 

I take the liberty of adding to these feelings of 
my fellow-citizens my own personal sentiments of 
the profoundest appreciation and gratitude. 

Accept [etc.] Tarchiani 

Italian Ambassador 

583 



American War Claims in Italy ■ 



PAYMENT OF $5,000,000 BY ITALY 



The Italian Ambassador, on behalf of the Gov- 
ernment of Italy, on April 23 presented to the 
Department of State a check in the amount of 
$5,000,000 in fulfilment of the obligation assumed 
by Italy pursuant to article 2 of the memorandum 
of understanding between the Government of the 
United States and the Government of Italy regard- 
ing Italian assets in the United States and certain 
claims of United States nationals against Italy, 
signed at Washington on August 14, 1947. The 
check was accepted for the Secretary of State by 
Willard Thorp, Assistant Secretary of State for 
economic affairs. Mr. Thorp headed the Amer- 



ican delegation during the negotiations with the 
Italian financial and economic delegation to the 
United States which resulted in the conclusion of 
two memoranda of understanding and supple- 
mentary notes concerning various financial and. 
economic questions relating to the treaty of peace 
with Italy. This payment by Italy is to be utilized 
in such manner as the Government of the United 
States may decide to be appropriate, in applica- 
tion to the claims of United States nationals aris- 
ing out of the war and not otherwise provided for. 
The Italian Ambassador made the following 
statement on this occasion : 



EXCHANGE OF REMARKS BETWEEN AMBASSADOR TARCHIANI AND ASSISTANT SECRETARY THORP 



"I am particularly gratified that I should be 
entrusted with the task of handing over this check 
representing the lump sum with which certain 
claims of American citizens arising out of the war 
and not otherwise provided for will be satisfied. 
In spite of her foreign-exchange situation, Italy 
desires to show once more that she intends strictly 
to abide by her international obligations and that 
she desires to settle as promptly as possible all 
outstanding problems between our two countries." 



Mr. Thorji replied as follows : 

"I am happy to receive, on behalf of the United 
States Government, this further evidence of the 
Italian Government's desire to discharge its in- 
ternational obligations. This action by your gov- 
ernment, taken despite Italy's difficult foreign- 
exchange situation, clearly emphasizes Italy's de- 
sire to settle as promptly as possible the various 
problems of mutual concern to our two countries 
which remain outstanding from the war period." 



PROCEDURE FOR FILING CLAIMS 



Under provisions contained in the peace treaty 
with Italy which came into force on September 
15, 1947, American nationals are entitled to have 
returned to them property in that country which 
was sequestrated or placed under control of au- 
thorities of the Italian Government dui'ing the 
war. The treaty provides that where such prop- 
erty has not already been returned application for 
its return must be filed before September 15, 1948, 
except in cases where the claimant is able to show 
that an application could not be filed before that 
date. 

Such applications should be prepared in the 
form of an affidavit in duplicate stating the name 
and address of the claimant, the date, place, and 
circumstances under which he acquired American 
citizenship, a description of the property to be 
returned, its location, and, if known, the date and 
place possession or control thereof was taken by 
the Italian authorities. If the claimant was not 



'Released to the press Apr. 23. 



584 



the owner of the property at the time it was taken, 
the date and manner of the claimant's acquisition 
of ownership thereof should be stated. 

Applications are to be made to the Vfficio Bern 
Alleati e Neniici, Rome, Italy. However, to as- 
sist American nationals desiring to obtain the re- 
turn of their properties, the American Embassy 
in Rome will transmit such applications to the 
proper Italian authorities. 

Claimants will be notified by the Italian Gov- 
ernment of the time and place of the return of their 
property and should make arrangements for its 
receipt either personally or through a designated 
representative. 

The filing of applications for the return of prop- 
erty is not to be confused with the filing of claims 
for loss of or damage to property sustained by 
American nationals in Italy during the war. In- 
structions with respect to the latter will be fur- 
nished claimants by the Department of State and 
by the American Embassy in Rome as soon as 
possible. 

Department of State Bulletin 



Expression of Gratitude From Austria 
on Economic Aid 

[Released to the press April 20] 

The Department of State transmitted on April 20 
to both Bouses of Congress the text of a note from 
Ludwig Kleimoaechter, Minister of Austria, to 
the Acting Secretary of State, expressing grati- 
fication on hehalf of the people and the Govern- 
ment of Austria on the occasion of the passing of 
The Economic Cooperation Act of 191^8. The text 
of the note follows 

April 7, mS 

Sir: On the occasion of the passing of The 
Economic Cooperation Act of 1948, my Govern- 
ment has directed me to express to the People, the 
President and the Government of the United 
States, on behalf of the People and the Govern- 
ment of Austria, the deep gratification for this act 
of unparalleled assistance to the economic recovery 
of the nations participating in the European Re- 
covery Program. 

I beg to request you to express the feelings of 
deep gratification on behalf of the People and the 
Government of Austria also to both Houses of 
Congress. 

Accept [etc.] L. Kleinwaechter 



International Law and the European Recovery 
Program — Continued from page 667. 

tion of a treaty ; (b) any question of international 
law; (c) the existence of any fact vs^hich, if es- 
tablished, will constitute a breach of an inter- 
national obligation; (d) the nature or extent of 
the reparation to be made for the breach of inter- 
national obligation." 

The United States and about one half of the 
participating countries have signed the Statute of 
the International Court of Justice. Although the 
United States will not in the bilateral agi'eements 
bind or commit itself to provide assistance to any 
participating country, and may terminate aid at 
any time, undoubtedly numerous questions of in- 
terpretation of the bilateral agi'eements, irrespec- 
tive of any question of reparation for violations, 
may arise. 

I have suggested only a few of the issues of 
international law which are raised by the charter 
of the International Trade Organization and by 
the European Recovery Program. The basic task 
of international law, as of domestic law, is to sup- 
port the economic and political institutions which 
preserve human dignity, the best of economic in- 
dividualism, and the virtues of nationalism. The 
strength of international law is its ability to per- 
form this task. The problems which face us to- 
day require your assistance and your leadership 
in maintaining and expanding that strength. 

May 2, 7948 



THE RECORD OF THE WEEK 

Proposed Legislation on Gift of Statue 
From Uruguay 

[Released to the press April 23] 

The Department of State on April 23 trans- 
mitted to the presiding officers of Congress pro- 
posed legislation to authorize the acceptance and 
erection of a statue of Gen. Jose Gervasio Artigas, 
oU'ered to the Government of the United States as 
a gift from the Government of Uruguay. The 
text of the letter to Senator Vandenberg follows : ^ 

My dear Senator Vandenberg: I enclose for 
your consideration a draft of proposed legislation 
entitled "A bill to provide for the acceptance on 
behalf of the United States of a statue of General 
Jose Gervasio Artigas, and for other purposes".- 

This legislation is necessary in order to author- 
ize the acceptance and erection in Washington, 
D.C., of a statue of General Artigas offered to 
the Government of the United States as a gift 
from the Government of Uruguay ; and to author- 
ize the appropriation of funds for the cost of 
erection, construction of a pedestal, landscaping 
the adjacent area, and necessary plans and 
specifications. 

An officer of the Uruguayan Army, Egardo 
Ubaldo Genta, is the proponent of the idea of 
donating a bronze statue of the Uruguayan na- 
tional hero, General Artigas, to the United States 
in keeping with a plan to exchange bronze statues 
of heroes among the American republics. Such 
exchanges have been consummated by Uruguay 
with at least six other American republics. The 
donation of the Artigas bronze dates back to De- 
cember, 1940 when the Uruguayan Chamber of 
Deputies authorized an appropriation for the cast- 
ing of the statue of Artigas to be donated to the 
City of Washington, D.C. A part of the total cost 
of the statue was contributed by the school chil- 
dren of Montevideo. Because of the war and the 
limitations on shipping facilities, arrangements 
were delayed until April, 1947 when the statue 
was shipped to the United States. The Depart- 
ment received a communication from the Uru- 
guayan Embassy officially offering the statue to 
the United States as a gift from tlie Govenunent 
of Uruguay. 

The Department is of the opinion that the ac- 
cei^tance of the gift of a statue of General Artigas 
would serve to strengthen the friendly relations 
now existing between the Governments of Uru- 
guay and the United States and to further the con- 
cept of hemispheric solidarity for which we strive. 

The Department further believes that the Gov- 
ernment of the United States should consider re- 

' The same letter was sent to Spealier Martin. 
' Not printed. 

585 



THE RECORD Of THE WEEK 

turning this expression of friendship and esteem 
by the donation of a statue of our national hero, 
General George Washington, to the Government 
of Uruguay for erection in the City of Montevideo. 
Information is now being developed that may be 
required in support of legislation to authorize a 
casting of a reciprocal statue of George Washing- 
ton to be donated to the Government of Uruguay, 
and it is contemplated that such legislation will 
be proposed at a later date. 



I hope that the Congress will find it possible to 
act upon this draft legislation this session. 

A similar communication is being sent to the 
Speaker of the House.^ 

The Department has been informed by the 
Bureau of the Budget that there is no objection 
to the submission of this proposal to the Congress. 
Sincerely yours, 
For the Acting Secretary of State : 

Charles E. Bohlen 
Counselor 



Procedure for Handling International Fisheries Problems 

EXCHANGE OF LETTERS BETWEEN THE DEPARTMENT OF STATE AND 
THE DEPARTMENT OF THE INTERIOR 



[Released to the press April 12] 

April o, 191(8 
Mt dear Mr. Secretart : 

Following your conversation of several weeks 
ago with Secretary Marshall on the means for im- 
proving the handling of international fisheries and 
wildlife matters, there were several discussions be- 
tween officials of our two Departments and an 
agreement was reached which, I believe, will ac- 
complish this objective. This letter confirms the 
agreement. 

It is my understanding that in the field of inter- 
national fisheries and wildlife relations the 
Department of the Interior will keep the State De- 
partment advised at all times on the need for inter- 
national action; will prepare on its own initiative 
or at the request of the State Department studies 
and reports on the foreign and domestic scientific 
and technological aspects and on the domestic 
economic, industrial and sports aspects of the prob- 
lems; will recommend action which may be taken 
by the Department of State ; and will advise the 
Department of State during international negotia- 
tions. 

Since the Fish and Wildlife Service is staffed 
with specialists to obtain and analyze promptly 
and effectively information similar to that needed 
by the Department of State, it is agreed that there 
will be a substantial increase in emphasis by the 
Service upon keeping the Department of State in- 
formed on the need for international action and on 
investigating and reporting to the Department in 
preparation for negotiations or other international 
action. The effective performance of these func- 
tions by the Service will relieve the Department of 
such work of this character as it is presently per- 
forming. It is agreed that the Service should 
expand its consultation with American interests 
on international fisheries and wildlife matters and 



= In the letter to Speaker Martin this phrase reads: 
"tlie President pro tempore of the Senate". 

586 



its activity in making recommendations on action 
which the Department may take on such problems. 

The Depai'tment of State will shortly reorganize 
tlie fisheries work of the Department. In this con- 
nection, the Department anticipates confining its 
activities to the formulation and determination of 
general policy on and the conduct of international 
fisheries and wildlife relations and expects to look 
to other agencies for advice and guidance on other 
phases of tlie problem. It will be necessary, of 
course, for the Department to continue its prepara- 
tion of the background work on pertinent diplo- 
matic history and international law. 

Representatives of the two Departments will, I 
understand, meet immediately to develop plans for 
regularly constituted groups of industry and state 
government representatives to advise the two De- 
partments on international fisheries and wildlife 
matters. Although the establishment of such 
groups will not preclude the present practice of 
consulting on particular problems with groups 
having a knowledge of and interest in such special 
problems, the general groups will provide counsel 
which our Departments would find difficulty in 
obtaining by other means and which will aid our 
two Departments in the promotion of the general 
welfare in this field. 

It is recognized that there exists an excellent 
spirit of cooperation between the Fish and Wild- 
life Service and the Department and that there is 
a high degree of flexibility in meeting the varied 
problems of common concern. It is understood 
that tliis agreement is not intended in any degree 
to formalize the relations now existing between 
the two organizations or to formalize the manner 
of handling any particular problem. Thus, while 
it is anticipated that the Department will, as 
occasion requires, participate in planning studies 
and investigations which may be needed for inter- 
national action and will consult, from time to time, 
directly with State officials, industry and sports 
representatives, and other interested and informed 

Department of State Bulletin 



persons, there is full agreement that investigation 
and recommendation, whether on the initiative of 
the Service or at the request of the State Depart- 
ment, is properly the initial responsibility of the 
Service. 

I understand that your Department vrill try to 
arrange for full performance of the functions dur- 
ing the fiscal year 1949. However, if your Depart- 
ment should find it impossible to make such 
arrangements, it is understood that oflicials of our 
two Departments will explore the possibility of 
effecting special arrangements for the fiscal year 
1949. 

I am confident that this program and particu- 
larly the increased responsibilities by the Fish and 
Wildlife Service and the reorganization of the 
fisheries and wildlife work of the Department of 
State, will result in substantial improvement in 
the effectiveness and somidness of the handling of 
this country's international fisheries and wildlife 
affairs. 

Sincerely yours, 

Egbert A. Lovett 
Acting Secretary of State 



PUBLICATIONS 



IHB RECORD OF THi WBBK 



Department of State 



April 9, 194S 
Mt dear Mr. Secretary : 

The proposals outlined in Under Secretary 
Lovett's letter of April 5 for the purpose of im- 
proving the handling of international fisheries and 
wildlife matters which have been developed 
through discussions between officers of the Depart- 
ment of State and of the Fish and Wildlife Service 
of this Department are entirely acceptable. 

It is my understanding that the transfer of func- 
tions and responsibilities to the Fish and Wildlife 
Service will proceed on a progressive basis be- 
tween now and June 30, 1948, so that there will 
be no interruption of the important international 
work in which the Fish and Wildlife Service and 
the Department of State are involved. 

I suggest that appropriate officers of the Depart- 
ment of State and of the Department of the 
Interior immediately discuss the question of ob- 
taining funds to enable the Fish and Wildlife 
Service to carry on the added duties and respon- 
sibilities during the fiscal year 1949. It is under- 
stood that the Department of State will be able to 
transfer some funds so that the Fish and Wildlife 
Service can assume the additional work involved 
during the remainder of the current fiscal year. 

I confidently hope that the handling of inter- 
national fishery and wildlife matters will be facili- 
tated by the new distribution of functions between 
our respective Departments. 
Sincerely yours, 

J. A. Krug 
Secretary of the Interior 

May 2, 1948 



For sale bij the Superintendent of Documents, Oovernment 
Printing Office, Washington 25, D.C. Address requests 
direct to the Superintendent of Documents, except in the 
ease of free publications, which may he obtained from the 
Department of State. 

Parcel Post Service Within the Postal Union of the 
Americas and Spain. Treaties and Other International 
Acts Series lOSl. Pub. 3044. 19 pp. 100. 

Agreement, and Final Protocol, Between the United 
States and Other Governments — Signed at Rio de 
Janeiro September 25, 1946 ; entered into force Janu- 
ary 1, 1947. 

General Agreement on Tariffs and Trade. Vol. I. Com- 
mercial Policy Series 111. Pub. 3107. 82 pp. 25^. 

Final Act adopted at the conclusion of the Second Ses- 
sion of the Preparatory Committee of the United 
Nations Conference on Trade and Employment with 
the general clauses of the General Agreement on Tar- 
iffs and Trade and Protocol of Provisional Application 
of the Agreement. 

Diplomatic List, April 1948. Pub. 3118. 189 pp. 20^ a 
copy ; $2.00 a year. 

Monthly list of foreign diplomatic representatives in 
Washington, with their addresses. 

Reciprocal Trade. Treaties and Other International Acts 
Series 1702. Pub. 3033. 5 pp. 5^. 

Agreement and Accompanying Letters Between the 
United States of America and Canada ; rendering in- 
operative the agreement of November 17, 1938, and 
supplementing the general agreement on tariffs and 
trade of October 30, 1947 — signed at Geneva October 
30, 1947; entered into force October 30, 1947, effective 
January 1, 1948. 

Restitution of Monetary Gold. Treaties and Other Inter- 
national Acts Series 1683. Pub. 3046. 5 pp. 5^. 

Protocol Between the United States of America, the 
United Kingdom of Great Britain and Northern Ire- 
laud, and France and Austria — signed at London 
November 4, 1947; entered into force November 4, 
1947. 

Fur Seals. Treaties and Other International Acts Series 
1686. Pub. 3057. 2 pp. 50. 

Agreement Between the United States of America and 
Canada ; amending the provisional agreement of 
December 8 and 19, 1942 — effected by exchange of 
notes signed at Washington December 26, 1947; en- 
tered into force December 26, 1947. 

Exchange of OfiScial Publications. Treaties and Other 
International Acts Series 16S8. Pub. 3058. 3 pp. 5^. 

Agreement Between the United States of America and 
Sweden — effected by exchange of notes signed at 
Stockholm December 16, 1947 ; entered into force De- 
cember 16, 1947, 

Correction 

In the BtTLLETiN of April 11, 1948, page 476, the footnote 
in the lefthand column should state tliat the address by 
Mr. Allen was made before the Overseas Press Club in 
New York rather than in Washington. 

587 



The United Nations and 
Specialized Agencies 

The Palestine Situation: Page 

Statement by Ambassador Warren R. 

Austin 568 

Resolution Concerning Draft Statute for 

the City of Jerusalem 572 

The Little Assembly of the United Nations. 

By Philip C. Jessup 573 

U.S. Delegation to Ieo Preparatory Meet- 
ing 580 

U.S. Delegation to Icao Meetings 580 

U.S. Participation in Who Assembly Pend- 
ing • 581 

Foreign Aid and Reconstruction 

International Law and Erp. By Ernest A. 

Gross 564 

Expression of Gratitude From Austria on 

Economic Aid 585 

Occupation Matters 

German Constitutions. An Article .... 559 

General Policy 

Fiftieth Anniversary of Cuban Independence: 

By the President 582 

Statement by Secretary Marshall .... 583 



Economic Affairs Page 

American War Claims in Italy: 

Payment of $5,000,000 by Italy 584 

Exchange of Remarks Between Ambassador 
Tarchiani and Assistant Secretary 

Thorp 584 

Procedure for Filing Claims 584 

Calendar of International Meetings . . 579 

Treaty information 

Italy Expresses Appreciation of Proposal for 
Return of Trieste. Exchange of Letters 
Between Italy and the United States . . 583 

The Congress 

Proposed Legislation on Gift of Statue From 

Uruguay 585 

The Department 

Procedure for Handling International Fish- 
eries Problems. Exchange of Letters 
Between the Department of State and 
the Department of the Interior .... 586 

Publications 

Department of State 587 



Contents of Documents and State Papers for May 1948 

* Governments as Sponsors of Industrial Research and as Owners of 

Patents 

* Korean Question in U.N. Interim Committee 

* Prohibition of Military Activity in Japan and Disposition of Military 

Equipment 

* International Wheat Agreement 

* Air-Transport Agreement with Italy 

* Protection of Foreign Interests by U.S. 

* Calendar of International Meetings 



U. t. eOVERHHEHT PRINTINS omcCi !»*» 



^/i€/ z/)ehao^t^7ten(/ /(w t/iaie^ 





SECOND SPECTU SF«!<5TON OF TFTr r.rxrnAT, 
ASSEMBLY 

U.S. Position on French Proposal for Jerusalem and 
Questions Involved in Concept of Trusteeship for 
Palestine • Statements by PUiliit C. Jessup .... 591 



TREATY OF ECONOMIC, SOCIAL AND CULTURAL 
COLLABORATION AND COLLECTI\'E SELF- 
DEFENSE. 
Between Five Western European Powoi^ 600 



THE NINTH PAN AMERIC.4N CHILD CONGRESS 

Article by Katharine F. Lenroot 



;")5 



lol. XVin,No.i62 
Max 9, 19 tH 



■mplete con i 








e 



Qje/ia^^ent A)/ y^ie DUilGtin 



Vol. XVIII, No. 462 • Pdbucation 3140 
May 9, 1948 



For sale by the Superintendent of Documents 

U.S. Government Printing Office 

Washington 26,D.C. 

Stjbscription: 
62 Issues, $6; 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- 
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Service. The BULLETIN includes 
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made by the President and by the 
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SECOND SPECIAL SESSION OF THE GENERAL ASSEMBLY 



U.S. Position on French Proposal for Jerusalem 



STATEMENT BY PHILIP C. JESSUP > 



As the debate developed in the closing minutes 
of the session of the Committee on Friday, the 
United States declared its warm support for the 
proposal made by the Representative of France ' in 
his eloquent and moving statement to the Commit- 
tee on Thursday. Time did not then permit elabo- 
ration of the position of the United States. I 
wish in a few words to make that position clear. 
The Holy City of Jerusalem is a special concern to 
all mankind. Its spiritual significance transcends 
all political questions or special interests which 
might have arisen in this particular century in 
which we live. Christians, Jews, and Moslems — 
indeed men of all faiths everywhere — are com- 
pelled to join their efforts to insure that the de- 
struction of Jerusalem and the nearby Holy Places 
does not become the darkest blot upon the twen- 
tieth century. 

The protection of Jerusalem is an integral part 
of the suggestions which have been made by the 
United States to this Committee. We believe that 
it is possible to go ahead at once with a study of 
detailed plans to safeguard the Holy City without 
in any way prejudicing or delaying arrangements 
for bringing peace to Palestine as a whole. In 
supporting this idea we do not wish to leave the 
impression that protection for Jerusalem will set- 
tle the question of Palestine or that we have with- 
drawn in any way our suggestion for a temporary 
trusteeship for all of Palestine. 

The United States has been studying the special 
problem of. Jerusalem for some time and does not 
minimize the practical difficulties which the se- 
curity of that city will entail. We believe it es- 
sential that our effort be directed as much as pos- 
sible to the security problem and that the arrange- 
ments to be agreed upon not be prejudicial to a 
truce and political settlement for all of Palestine. 
Perhaps the way to a solution is to be found in 
the spirit suggested by a group of religious leaders 
of several faiths and several countries in an ap- 
peal which was published on Easter Day. The 
signers of this appeal included a representative of 
the Quakers of the world, the Archbishop of Can- 
terbury, the Primate of the Church of Norway, 
the Presiding Bishop of the Protestant Episcopal 
Church of America, and an Archbishop of the 

May 9, 1948 



Resolution on Protection of Jerusalem* 

The General Assembly, 

Considering tliat the maintenance of order 
and security in Jerusalem is an urgent ques- 
tion which concerns the United Nations as a 
whole, 

Renolves to ask the Trusteeship Council to 
study, with the Mandatory Power and the in- 
terested parties, suitable measures for the 
protection of the City and its inhabitants, 
and to submit within the shortest possible 
time proposals to the General Assembly to 
that effect. 



* U.N. floe. A/54.3, Apr. 26, 1948 ; adopted by the 
General Assembly at its 132d Plenary Session on Apr. 
26, 1948. 



Greek Orthodox Church. These leaders, declar- 
ing themselves as representatives of "Religion, not 
of politics or of Government Policies," united in 
asking the leaders of Arabs and Jews "to establish 
a 'truce of God' which means a holy area of peace 
and freedom from violence in the City of 
Jerusalem . . . .". 

The United States is not primarily concerned 
with the procedure by which we move on to deal 
with this question of Jerusalem but we believe we 
should act expeditiously. We welcome the 
amendment introduced by the Representative of 

'Made in Committee 1 (Political and Security) of the 
Second Special Session of the General Assembly on Apr. 
26, 1948, and released to the press by the U.S. Mission to 
the United Nations on the same date. Mr. Jessup is a 
member of the U.S. Delegation to the Special Session. 

" France: Draft Resolution (U.N. doc. A/C.1/280, Apr. 22, 
1948). 

The First Committee 

Considering that the maintenance of order and security 
in Jerusalem is an urgent question which concerns the 
United Nations as a whole. 

Recommends the General Assembly, 

to ask the Trusteeship Council to study and, in consulta- 
tion with the Mandatory Power and the interested parties, 
take suitable measures for the protection of the City and 
its inhabitants. 

591 



THE UN/TED NATIONS AND SPECMt/ZED AGENCIES 

Sweden to the original French proposal (docu- 
ment A/C.1/281)^ because we hope that it will 
eliminate any controversy concerning procedure 
and enable work to begin at once upon the prac- 
tical details of the plan. 

As the Delegation of the United States declared 
in the debate on Friday, we hope that the proposal 



of France as amended by the Kepresentative of 
Sweden, will be promptly approved, that we shall 
then return to the general debate, and that upon 
the conclusion of the general debate the committee 
will then proceed to deal specifically with the 
United States suggestion for dealing with Pales- 
tine as a whole. 



Questions Involved in Concept of Trusteeship for Palestine 



STATEMENT BY PHILIP C. JESSUP « 



Since our fii-st meeting a week ago the Com- 
mittee has been discussing the question of the 
future government of Palestine as referred to it 
by the General Assembly. Many delegations have 
expressed their views on the plan of partition with 
economic union and others have spoken on a mili- 
tary and political truce and a temporary trustee- 
ship for Palestine. 

Meanwhile, the Mandatory for Palestine has re- 
iterated its position that it will relinquish the 
Mandate on May 15th. The question now in every- 
one's mind is what governmental authority will 
succeed the Mandatory authority when the Man- 
date is relinquished. The plan of partition with 
economic union recommended by the General 
Assembly last November is not materializing in 
the form in which it was recommended. Both of 
the principal communities of Palestine have an- 
nounced their intention of establishing states in 
that country upon the termination of the Mandate, 
unless irreconcilable conditions are met. Despite 
the action of the Security Council calling for an 
immediate cessation of hostilities, each day that 
passes reveals new acts of violence and threats of 
violence on an unprecedented scale. Since our 
paper was prepared, the Security Council has es- 
tablished a Truce Commission and this Committee 
has just requested the Trusteeship Council to make 

'Sweden: Amendment to Draft Resolution of France 
( U.N. doc. A/C.1/281, Apr. 23, 1948 ) . The Swedish amend- 
ment called for deletion of words in brackets and addition 
of italicized words. 

The First Committee 

Considering that the maintenance of order and security 
in Jerusalem Is an urgent question which concerns the 
United Nations as a whole, 

Recommends the General Assembly, 

To ask the Trusteeship Council to study [and, in con- 
sultation] with the Mandatory Power and the interested 
parties [take] suitable measures for the protection of the 
City and its inhabitants, and to suiviit joithin the shortest 
possible time proposals to the General Assembly to that 
effect. 

'Made in Committee 1 (Political and Security) of the 
Second Special Session of the General Assembly on Apr. 
27, 1948, and released to the press by the U.S. Mission to 
the United Nations on the same date. Mr. Jessup is a 
member of the U.S. Delegation to the Special Session. 

592 



a special study of measures to protect Jerusalem. 
These developments must, of course, be taken into 
account. In our opinion they could be helpfully 
integrated in any temporary trusteeship adminis- 
tration. So the question still stands, Wliat will be 
the form and nature of the governmental au- 
thority in Palestine three weeks from today? 

In the working paper circulated a week ago it 
was suggested that the Committee should con- 
sider the possibility of a United Nations trustee- 
ship for Palestine on a temporary basis and with 
the United Nations itself as the administering 
authority. The views expressed thus far in the 
general debate indicate a general desire on the part 
of most members of the Committee to continue 
with substantive discussion of the trusteeship idea. 
We accordingly welcome such a discussion at this 
time before the Committee takes action on the 
United States draft resolution in document A/C- 
1/278. 

I think it may be helpful to the Committee if I 
were to indicate what seem to us the principal 
questions involved in the concept of trusteeship 
for Palestine. Other questions may occur to other 
members of the committee. 

At the outset may I recall that the suggestion of 
temporary trusteeship is a part of what Ambassa- 
dor Austin called "a military and political stand- 
still to save human life and to make possible fur- 
ther negotiations on a final political settlement". 
This idea of a standstill is reflected in the preamble 
to the draft agreement contained in the working 
paper. There it is stated that the General As- 
sembly, in approving terms of trusteeship for 
Palestine, would be acting — and I quote the lan- 
guage of the preamble — "without prejudice to the 
rights, claims, or position of the parties concerned 
or to the character of the eventual political settle- 
ment." This general principle should be kept in 
mind in the Committee's consideration of specific 
parts of tlie question before us. 

Every delegation in the Committee is interested 
in the arrangements suggested for securing tlie 
trusteeship. According to the working paper, the 
organization and direction of the police force 

Department of State Bulletin 



necessary for the maintenance of internal law and 
order and for the protection of the Holy Places 
■would be the responsibility of a governor-general. 
This is article 6 in the draft trusteeship agreement. 
It would be the duty of the governor-general in 
accordance with article 7 to organize a voluntary 
force to provide for local defense and for the main- 
tenance of law and order within Palestine. The 
duty thus placed upon the governoi'-general would 
be founded upon article 84 of the Charter, which 
authorizes the administering authority "to make 
use of voluntarj' forces, facilities, and assistance 
. . . for local defense and the maintenance of law 
and order within the trust territory". Until this 
voluntary force can be recruited and organized, 
and after its organization if it needs assistance, 
the governor-general would be authorized to call 
upon certain governments to assist in the defense 
of Palestine or in the maintenance of law and order 
within Palestine. This would be provided by 
article 7 of the draft trusteeship agreement. 

The United States would be interested in know- 
ing whether other members of the Committee con- 
sider that the method proposed in article 7 for 
providing police and security forces is acceptable. 

It will be appreciated that the working paper 
does not evade or gloss over other difficult prob- 
lems which need to be solved. Article 29 of the 
draft trusteeship agreement deals with immigra- 
tion. As a general principle, immigration into 
Palestine would be permitted according to this 
article "without distinction between individuals as 
to religion or blood, in accordance with the absorp- 
tive capacity of Palestine as determined by the 
Governor-General". In addition, a temporary im- 
migration regime is provided for — namely, the 
immigration of a number of Jewish displaced per- 
sons per month for a period not to exceed two 
years, the number to be determined. 

Since immigration is one of the important issues 
involved in the question of the future government 
of Palestine, the views of the Committee on this 
provision of the draft trusteeship agreement would 
be helpful. Is it a sound general principle that 
the volume of immigration during a temporary 
trusteeship should be determined by the absorptive 
capacity of Palestine as determined by the gover- 
nor-general ? What are the views of members of 
the Committee with respect to permitting immi- 
gration of individuals without distinction as to 
religion or blood? Is the provision, as a tempo- 
rary measure, for the immigration of a certain 
number of Jewish displaced persons over a period 
of two years one which appears reasonable and 
just? 

Another important issue is the question of land 
policy dealt with in article 31 of the draft trustee- 
ship agreement. Here the draft would place upon 
the governor-general the duty of establishing and 
maintaining a land system appropriate to the needs 

May 9, 1948 



THE UNllED NATIONS AND SPECIAUZBD AGENCIES 

of Palestine "in which there shall be no limitation 
on the sale, purchase, lease or use of land on 
grounds of race, nationality, community or creed". 
Are the principles in this statement of land policy 
just and equitable? The same article provided 
that the criteria upon which the land system shall 
be based shall be recommended to the governor- 
general by a commission of impartial experts 
neither Arab nor Jew. Does this provision of .-the 
draft agreement recommend itself ? 

It is important to consider the means of facili- 
tating the economic and social developinent of 
Palestine. The United Nations Economic and So- 
cial Council, the specialized agencies related to it, 
and the Proposed Economic Commission for the 
Middle East, could be useful in this regard. In 
this connection the article of the draft trusteeship 
agreement dealing with external affairs should be 
considered. By article 35, the conduct of external 
affairs would be placed in the hands of the gover- 
nor-general. This article also deals with the ad- 
herence by Palestine to international conventions 
and recommendations drawn up by the United Na- 
tions or by the specialized agencies referred to by 
article 57 of the Charter. The role of the Trustee- 
ship Council in adhering to such conventions and 
recommendations is covered by the same article. 

Are the provisions of article 35 appropriate for 
obtaining the maximum use of these United Na- 
tions agencies in developing the human and mate- 
rial resources of Palestine for the benefit of its in- 
habitants and of the world ? 

In considering these and other features of a tem- 
porary trusteeship for Palestine it will be helpful, 
I feel, to bear constantly in mind the primary re- 
sponsibility of Jews and Arabs. In his address last 
Monday, the Representative of the United States 
said "that the primary responsibility for reaching 
a peaceful settlement of this problem rests upon 
the people of Palestine . . . We do not believe that 
the peoples of Palestine are entitled to appear be- 
fore the United Nations to assert demands which 
must be accepted by the other party and the world 
community as the only alternative to war." 

In a political sense, it is axiomatic that govern- 
ment cannot be established nor maintained without 
the cooperation of the governed. In saying this, 
the United States Delegation merely wishes to ap- 
ply this general truth to the specific situation in 
Palestine. If a temporary trusteeship for Pales- 
tine is established the United States would antici- 
pate the fullest possible measure of participation 
by Jews and Arabs in positions of the highest re- 
sponsibility and trust within the central adminis- 
tration. The success or failure of a temporary 
trusteeship, or of any other form of government 
for Palestine, will turn upon the degree of coopera- 
tion existing among the various elements of the 
population. 

593 



Security Council Resolution on Establishment of Truce 
Commission for Palestine ^ 



Keferring to its resolution of 17 April 1948 
calling upon all parties concerned to comply with 
specific terms for a truce in Palestine, 

The Security Council 

Establishes a Truce Commission for Palestine 
composed of representatives of those members of 
the Security Council which have career consular 
Officers in Jerusalem, noting, however, that the 
representative of Syria has indicated that his Gov- 
ernment is not prepared to serve on the Commis- 
sion. The function of the Commission shall be 
to assist the Security Council in supervising the 
implementation by the parties of the resolution of 
the Security Council of 17 April 1948 ; 



Requests the Commission to report to the Presi- 
dent of the Security Council within four days 
regarding its activities and the development of the 
situation, and subsequently to keep the Security 
Council currently informed with respect thereto. 

The Commission, its members, their assistants 
and its personnel, shall be entitled to travel, sepa- 
rately or together, wherever the Commission deems 
necessary to carry out its tasks. 

The Secretary-General of the United Nations 
shall furnish the Commission with such personnel 
and assistance as it may require, taking into ac- 
count the special urgency of the situation with 
respect to Palestine. 



United States Delegation to Second Special Session 



Representatives 

Warren R. Austin, U.S. Representative at the Seat of the 

United Nations and Representative in the Security 

Council, Ambassador 
Francis B. Sayre, U.S. Representative in the Trusteeship 

Council, Ambassador 
Philip C. Jessup, Deputy Representative on the Interim 

Committee of the General Assembly 

Alternate Representatives 

Dean Rusk, Director, Office of United Nations Affairs, De- 
partment of State 

John C. Ross, Deputy to the Representative at the Seat of 
tlie United Nations 

AAvisers 

Franli P. Corrigan, Adviser on Latin American Affairs, 

U.S. Mission to the United Nations 
Donald C. Blaisdell, Special Assistant to the Director, OtBce 

of United Nations Affairs, Department of State 
William I. Cargo, Division of Dependent Area Affairs, 

Department of State 
Benjamin Gerig, Deputy Representative in the Trustee- 

sliip Council ; Chief, Division of Dependent Area 

Affairs, Department of State 
Raymond A. Hare, Foreign Service officer; Chief, Division 

of South Asian Affairs, Department of State 
John E. Horner, Otfice of European Affairs, Department 

of State 
Gordon Knox, Adviser on Security Council and General 

Affairs, U.S. Mission to the United Nations 
Samuel K. C. Kopper, Special Assistant to the Director, 



■U.N. doc. S/727, Apr. 23, 1948. This Resolution was 
submitted by the U.S. Delegation and was adopted by 
the Security Council at its 287th meeting on Apr. 23, 
1948. See also Bulletin of Apr. 18, 1948, p. 515. 

594 



Office of Near Eastern and African Affairs, Depart- 
ment of State 
Thomas J. Maleady, Foreign Service officer. Department 

of State 
Robert M. McClintock, Special Assistant to the Director, 

Office of United Nations Affairs, Department of State 
Paul W. Meyer, Foreign Service officer, Department of 

State 
Charles P. Noyes, Adviser on Security Council and General 

Affairs, U.S. Mission to the United Nations 
C. Hayden Raynor, Special Assistant to the Director, 

Office of European Affairs, Department of State 
Fraser Wilkins, Foreign Service officer, Department of 

State 

Executive Officer 

Donald C. Blaisdell, Special Assistant to the Director, 
Office of United Nations Affairs, Department of State 

Assistant 

Betty C. Gough, Division of International Organization 
Affairs, Department of State 

Secretary Ocneral 

Richard S. Winslow, Secretary General, U.S. Mission to 
the United Nations 

Deputy Secretary Oeneral 

Thomas F. Power, Jr., Deputy Secretary General, U.S. 
Mission to the United Nations 

Information Officer 

Porter JIcKeever, Chief, Office of Public Information, 
U.S. Jlission to the United Nations 

Press Officers 

Gilbert Stewart, U.S. Mi.ssion to the United Nations 
David Wilson, U.S. Mission to the United Nations 

Depariment of State Bulletin 



INTERNATIONAL ORGANIZATIONS AND CONFERENCES 



The Ninth Pan American Child Congress 



ARTICLE BY KATHARINE F. LENROOT 



The Ninth Pan American Child Congress, held 
at Caracas, Venezuela, January 5-10, 1948, was 
notable for the care which had entered into prepa- 
ration of the sessions, for the concrete results made 
possible by the highly professional work of the 
technical commissions, and for the emphasis given 
to cooperation of inter-American and interna- 
tional agencies in matters aifecting health, wel- 
fare, and education of children and youth. 

One hundred and thirty-seven official delegates 
representing 13 of the American republics at- 
tended the Congress. Present also were the Direc- 
tors of the American International Institute for 
the Protection of Childhood and of the Pan Amer- 
ican Sanitary Bureau. The Pan American Union 
was represented by an official observer. The In- 
ternational Children's Emergency Fund of the 
United Nations likewise sent an observer as did 
the International Union for the Protection of 
Childhood. Many distinguished men and women 
from the fields of health, education, and 
social welfare had been sent to the Congress by 
some of the Continent's leading professional 
organizations. 

In the absence of Dr. Gregorio Araoz Alfaro 
of Argentina, the President of the Directing 
Council of the American International Institute 
for the Protection of Childhood, the Chairman of 
the United States Delegation, who is also Vice 
Chairman of the Institute, addi'essed the Congress 
at the inaugural session. A response on behalf of 
all delegations was delivered by Dr. Roberto Berro 
of Uruguay, Director of the American Interna- 
tional Institute for the Protection of Childhood. 

The Congress was divided into four sections, as 
follows: section I — pediatrics and maternal and 
child health ; section II — social welfare and legis- 
lation; section III — education; and section IV — 
inter- American cooperation. Each section carried 
on its work tln'ough a technical commission, and 
the official delegates were assigned to the various 
commissions. The individual members — repre- 
sentatives of agencies and professional organiza- 
tions — attended the meetings of their choice and 
were given full freedom in discussion. As a re- 
sult, the individual members were able to make a 
valuable contribution to the deliberations. 

As each technical commission adopted conclu- 
sions, these were reported to plenary sessions for 
approval. Three plenary sessions, exclusive of 

May 9, 1948 



the opening and closing sessions, were held. The 
commission's reports and the report of the resolu- 
tions committee, after approval in the plenary 
sessions, were incorporated in the final act, which 
was signed at the closing session. A copy of the 
final act was to be deposited with the Pan Ameri- 
can Union and with the American International 
Institute for the Protection of Childhood and is 
to be published by the latter organization. 

Each country invited to participate in the Con- 
gress had been advised by the Venezuelan Or- 
ganizing Committee that it would be responsible 
for preparing a papfer on one of the official topics 
in one of the four sections. To Argentina, for 
example, had been assigned the topic of organiza- 
tion and financing of maternal and child-health 
services; to Brazil and Bolivia, prevention of 
tuberculosis in childhood; to a group of Central 
American countries, symptoms of deficiency dis- 
ease ; all to be studied and discussed in section I. 
To the United States had been assigned the or- 
ganization of social services for mothers and 
children ; to Chile and Peru, the child under social 
security; to Urugiuxy, the care of the dependent 
child; to Venezuela, the children's code — all in- 
cluded in section II. Cuba, Ecuador, Colombia, 
Mexico, Costa Rica, and Panama shared respon- 
sibility for the five topics on the agenda of the 
section on education. All countries had the 
privilege of preparing "co-relatos" or joint reports 
on the major topics, and many of these joint 
reports were important documents which con- 
ti'ibuted greatly to the discussions. 

Commission I reported on three recommenda- 
tions. The first, dealing with organization and 
financing of maternal and child-health services, 
recognized the need for extension of such services 
in all American countries and recommended that 
these services be integrated with local public- 
health services ; that sanitary units, health centers, 
or rural health stations be set up; that agencies 
which include health services in their programs 
(mental hygiene, dental health, nurseries, kinder- 
gartens, et cetera) work in close relationship and 
as a part of the maternal and child-health service; 
that the work of the generalized public-health 
nurse be recognized as the best for study and solu- 
tion of matters affecting the health of mothers and 
children ; that activity in the maternal and child- 
health field be adapted to available technical and 
economic resources, preference being given to 

595 



ACTIVITIBS AND DEVELOPMENTS 

fundamentcal work in the field of cliild care; that 
maternal and child-health services be financed 
through participation of federal, state, and local 
and private contributions, in accordance with the 
characteristics of each country but with technical 
direction, centralized under a single command; 
and that services for care of sick children be 
closely related to the maternal and child-health 
service, preferably integrated with the local 
public-health service. 

The second resolution, dealing with deficiency 
diseases, recommended greater protection of 
family life through extension of social insurance 
and family subsidies; creation of nutrition insti- 
tutes for the study of food values and popular 
education ; mass feeding ; training of personnel for 
nutrition work ; measures for increasing food pro- 
duction, reducing the cost of living, avoiding 
speculation and hoarding, adulteration of food 
products, and excessive advertising of dietary and 
food products. The resolution specifically recom- 
mended that the topic of child nutrition and dis- 
eases due to malnutrition be put on the program of 
the next Congress. 

The third resolution of the Commission dealt 
with tuberculosis. It urged early discovery and 
isolation of cases; adoption of a resolution of the 
Twelfth Pan American Sanitary Conference con- 
cerning systematic and periodical mass examina- 
tion by the Abreu method; intensification of pre- 
ventive measures, including the raising of living 
standards, and B.C.G. vaccination in addition to, 
but not as a substitute for, recognized preventive 
measures; international cooperation of bacteriol- 
ogists, physicians, and statisticians with a view 
to achieving greater uniformity in procedures for 
reporting, applying, and evaluating results of 
B.C.G. vaccination ; and greater attention to 
control of bovine tuberculosis than is now given in 
some American countries. 

Because of the great interest in the major topic 
assigned to the Venezuelan Delegation, namely, 
the children's code, the Technical Commission on 
Social Welfare and Legislation divided into two 
subcommissions, one to deal with this topic and 
the other with those pertaining to care of depend- 
ent children, organization of social services, and 
the child under social security. As revised by the 
Technical Commission and approved by the Con- 
gress, the code contains 20 separate headings and 
a brief preamble referring to the desirability of 
codifying laws relating to the protection of minors 
and recommending this proposed code to the 
American countries, subject to adaptation to the 
constitutional requirement and social and cultural 
conditions of each country. The full text of the 
code was included in the final act. 

The eight-point recommendation submitted by 
the United States Delegation as pai"t of its paper 

596 



on organization of social services for mothers and 
children was adopted by the Commission and ap- 
proved by the Congress. It provides for: (1) rec- 
ognition of the responsibility of government for 
child welfare by vesting in an appi'opriate agency 
the functions and authority required to initiate 
and develop social services for families and chil- 
dren; (2) participation by the national govern- 
ment in the financing of such services; (3) efforts 
to improve general social conditions contributing 
to the strengthening and conserving of family life 
( adequate wage levels, housing, good standards of 
health and education, social insurances, and social 
sei'vices) ; (4) emphasis on case work or social 
service to individual cases; development of re- 
sources for helping children in their own homes; 
acceptance of the principle that the primary goals 
of institutional or foster care for children are those 
of substituting, for a brief time or longer, for 
the child's own home; (5) special training in 
social work, to the greatest extent possible, for 
persons on the staff of organizations providing 
social services to families and children; (6) em- 
phasis on coordination among social agencies and 
on cooperative community planning; (7) respon- 
sibility of agencies administering social services 
for children and families to interpret their work 
in such a way that the public will understand and 
support it; (8) cooperation of national agencies 
responsible for development of social services for 
families and children with international efforts 
in behalf of the children of the world. 

Inasmuch as the official reports submitted by 
Chile and Peru on the child under social security 
contained no specific recommendations, a subcom- 
mittee of Technical Commission III was desig- 
nated to prepare a resolution on this subject. The 
resolution recommends: (1) that the suggestions 
and resolutions on social security adopted by the 
Eighth Pan American Child Congress at Wash- 
ington and the First Inter-American Congress of 
Social Security at Santiago, Chile, be reaffirmed ; 
(2) that social-security plans recognize the im- 
portance of child care and protection and coor- 
dinate their provisions in this respect with the re- 
soui'ces and plans of agencies in the field of health, 
social assistance, labor, and education; and (3) 
that there be an active interchange of experience 
and information on plans, programs, methods, and 
results among the American countries in matters 
pertaining to social securitj' and child care and 
protection. 

The resolution on the welfare of abandoned or 
dependent children declares that the modern state 
should devote the most adequate possible resources 
to combating tlie causes of abandonment or de- 
pendency. It recognizes the part which social 
security plaj's in this connection and strongly rec- 
ommends that assistance be given dependent 

Deparfment of State Bulletin 



children in their own homes if possible, in suitable 
foster homes, or in institutions which can serve 
as substitutes. Institutions for dependent chil- 
dren should preferably be of the family or semi- 
family type. Punitive systems should be abol- 
ished in such agencies, and each child admitted 
should be studied individually from the medical, 
psychological, educational, and social points of 
view. Governments should likewise stimulate the 
development of social services with trained per- 
sonnel as the most effective auxiliary means of 
diminishing the evils of child abandonment. 

Other resolutions recognized the value of psy- 
chiatric services for children and the importance 
of appi'opriate psychiatric training for doctors, 
nurses, social workers, and teachers rendering pro- 
fessional services to children in their respective 
fields. 

Technical Commission III reported comprehen- 
sive resolutions dealing with education in rural 
areas, based on official reports from Colombia and 
Ecuador; on education of the preschool child, 
based on the official report of Cuba ; on progressive 
education, and on the care and recreation of chil- 
dren outside of school hours. The resolution 
based on the Cuban report contained an important 
declaration in favor of the preschool child who 
was described as "still neglected, pedagogically 
and socially in many American countries". 

Anothei- important declaration of the Congress 
was the declaration of Caracas on child health. 
This was the result of a suggestion submitted by 
Dr. John Long of the Pan American Sanitary Bu- 
reau to a meetmg of the Govei'ning Council of the 
American International Institute for the Protec- 
tion of Childhood, held at Montevideo in April 
1947. It had been agreed that Dr. Long and the 
Institute would prepare drafts for submission to 
the next Child Congress. The revised version ap- 
proved by the Congress will be submitted to the 
Pan American Sanitary Bureau and the Institute 
for final review and approval before being distrib- 
uted to all the American countries. 

To a greater degree than ever before the Ninth 
Pan American Child Congress entrusted new re- 
sponsibilities to the Institute. A Cuban reso- 
lution recommended that the Institute, in order to 
give greater stimulus and publicity to develop- 
ments in the field of social service, develop a plan 
for nation-wide competition in each country on the 
subject of the successful achievements of the 
country in this field. The winning paper of each 
country is to be published by the Institute. 

A United States resolution expressed the hope 
that the Institute might obtain sufficient resources 
to permit it to make a comparative study of the 
legal bases of child care, especially between coun- 
tries under systems of civil law and common law, 
and that the Institute plan the study and be in 
charge of it, with the assistance of an advisory 
committee of experts. 

Aloy 9, 7948 

786978 — 48 2 



ACTIVITIES AND DEVELOPMBNTS 

A Costa Rican resolution urged the Institute 
to consider the problem of children who cross 
national frontiers, on their own initiative or at 
the instigation of others for reasons contrary to 
their interests. 

The Institute was applauded for the coopera- 
tion it had given during the past year in connection 
witli the organization of seminars on social work 
at Medellin, Colombia, and Montevideo, Uruguay, 
under the auspices of the United Nations. It was 
praised for the progress it had made in carrying 
out resolutions of the Eighth Pan American Child 
Congress dealing with inter-American coopera- 
tion and was directed to consult with the Pan 
American Union and with inter-American 
agencies operating in related fields as to the best 
way of carrying out resolutions and recommenda- 
tions of the Ninth International Conference of 
American States relative to inter-American co- 
operation in matters pertaining to health, educa- 
tion, social services, and social insurance as they 
affect children. Recognizing the importance of 
the problem of nutrition and the efforts which in- 
ternational organizations are making to deal with 
it, both through the United Nations and various 
inter-American agencies, the Institute was asked 
to study ways in which the experience of the Inter- 
national Children's Emergency Fund of the 
United Nations, the Food and Agriculture Organ- 
ization of the United Nations, and the Pan Amer- 
ican Sanitary Bureau can serve to promote efforts 
to raise the level of child nutrition in the Amer- 
ican countries. As for the resolution recommend- 
ing support of the International Children's 
Emergency Fund, the Institute was entrusted with 
the responsibility of sending copies of the reso- 
lution to the Fund, to the United Nations, to the 
Pan American Union, to the American Govern- 
ments, and to the agencies and press of the Con- 
tinent. 

All of these resolutions of an inter-American 
and international character, including the decla- 
ration of Caracas on child health, were reported 
to the Congi-ess by Commission IV on Inter- 
American Cooperation. Others included in this 
group were a resolution recommending that the 
Ninth International Conference of American 
States, at its meeting at Bogatii, recognize the need 
of giving special attention to the protection of 
children and youth and the importance of inter- 
American cooperation in solving problems related 
to the health, welfare, and education of children 
and the training of personnel for work in these 
fields. This resolution also recommended that 
all American countries adhere to and support 
the work of the American International Institute 
for the Protection of Childhood. 

In view of the fact that more adequate statistics 
will be needed to enable the American countries 
and agencies to carry out many of the resolutions 

597 



ACTIVITIES AND DEVEIOPMENIS 

of the Congress, a special resolution recommended 
that the agencies in each country responsible for 
taking the 1950 census arrange to obtain statistical 
data which will contribute to a knowledge of the 
real situation of the child in America. A copy of 
this resolution was to be sent to the American 
Statistical Institute for submission to the organ- 
izing committee for the 1950 census of the Amer- 
icas which is scheduled to meet later in the year. 

APPOINTMENT OF U.S. COMMISSIONERS ON 
THE SOUTH PACIFIC COMMISSION 

The Secretary of State announced on April 28 
that the President has appointed the United States 
Commissioners and Alternate Commissioners on 
the South Pacific Commission. The following 
persons have been appointed: 

Senior Commissioner : Felix Keesing, professor of autliro- 
pology at Stanford University and an outstanding 
authority on the South Pacific 

Commissioner: Milton Shalleck, lawyer of New York, with 
a distinguished record in law and government 

Altern;ite Connnissioner : Karl C. Leebrick, vice president 
of the University of Hawaii and an expert on Pacific 
attairs 

Alternate Commissioner (for the first Commission meet- 
ing) : Orsen N. Nielsen, American Consul General at 
Sydney, Australia, and U.S. Representative in the 
Interim Organization of the South Pacific Commission 

The purpose of the South Pacific Conunission is 
to facilitate international cooperation in promot- 
ing the social and economic advancement of the de- 
pendent peoples of the South Pacific. The Com- 
mission, while not an organic part of the United 
Nations, is expected to develop close relations with 
the United Nations and its specialized agencies. 
The South Pacific Commission, like the Caribbean 
Commission (established in 1942 as the Anglo- 
American Caribbean Commission), is a pioneer 
venture in regional cooperation among govern- 
ments responsible for the administration of de- 
pendent areas. 

The Governments which will participate in the 
work of the mission are those of Australia, France, 
the Netherlands, New Zealand, the United King- 
dom, and the United States. By action of the 
President on January 28, 1948, the agreement 
establishing the South Pacific Commission was 
accepted on behalf of the United States Govern- 
ment.^ 

The Commission, assisted by a Research Council 
and periodical conferences of representatives of 
the local inhabitants, has a great opportunity to 
render an important service both to the member 
governments and to the people in the region. 

' Bulletin of Feb. 15, 1948, p. 214. 

' For article on the Institute, see Bulletin of Nov. 9, 
1947, p. 891. 

598 



The first meeting of the South Pacific Commis- 
sion is scheduled to be convened at Sydney, Aus- 
tralia, on May 11, 1948. The Commission will 
meet regularly twice each year. 

U.S. DELEGATION DEPARTS FOR CONFERENCE 
TO ESTABLISH INSTITUTE OF THE 
HYLEAN AMAZON 

[Released to the press AprU 29] 

The Department of State announced on April 
29 that a United States Delegation is en route to 
a Conference for the Establishment of the Inter- 
national Institute of the Hylean Amazon, to be 
held at Iquitos, Peru, April 30-May 10, 1948.^ 
The United States Delegation is as follows : 

ChHirtixni 

Clarence Boonstra, Agricultural Attach^, American Em- 
bassy, Lima 

Delegates 

Alan M. Holmberg, cultural anthropologist, representing 
the Institute of Social Anthropology, Smithsonian 
Institution 

Claud L. Horn, Head, Complementary Crops Division, 
Oflice of Foreign Agricultural Relations, Department 
_of Agriculture 

The Conference has been called by the Director 
General of the United Nations Educational, Sci- 
entific and Cultural Organization (Unesco) in 
the name of that Organization and of the Govern- 
ments of Peru and Brazil. Its purpose is to plan 
the formal establishment of the International 
Institute of the Hylean Amazon (named from the 
word hyleia meaning forested area), which is one 
of the largest undeveloped areas in the world, ex- 
tending over portions of six South American re- 
publics, and French, British, and Dutch Guiana. 
The Institute would promote the scientific investi- 
gation of tlie region and provide facilities for co- 
operation in this work. In planning for the In- 
stitute, the Conference will: (1) discuss, and if 
possible, draw up an agreement for tlie establish- 
ment of the Institute; (2) set up an Interim Com- 
mission for the Institute which would continue as 
the directive body until the convention may come 
into force; and (3) discuss means of finance, par- 
ticularly for the year 1949. 

The First General Conference of Unesco, held 
at Paris in 1946, approved a Brazilian proposal 
that an International Scientific Commission be 
set up in consultation with Brazil, Colombia, Ec- 
uador, France, the Netherlands, Peru, Venezuela, 
the United Kingdom, and the United States, to 
investigate on the spot all aspects of the question 
of the establishment of an International Hylean 
Amazon Institute. The International Commis- 
sion met at Belem (Para) , Brazil, in August 1947, 
and reconunended the establishment of an Insti- 

Oepartment of State Bulletin 






tute. The Commission recommended that the In- 
stitute's function should be to promote investiga- 
tions in the natural and social sciences, and that 
such studies should be carried out as far as prac- 
ticable in collaboration with existing scientific 
organizations and institutions, both national and 
international. This recommendation was ap- 
proved by the Second General Conference of 
UNESCO at Mexico City, November-December 1947. 

Invitations to attend the forthcoming meeting 
have been sent to all member governments of 
UNESCO and interested international organizations. 

Although the United States Government does 
not plan to become a dues-paying member of the 
Institute, it has assisted in the development of this 
project through its contributions to Unesco. 
UNESCO has made a small appropriation this year 
to provide for a preliminary survey by six scien- 
tists of the work which the Institute might under- 
take. American scientific institutions and agen- 
cies have long taken an active part in the scientific 
exploration of the area and are expected to follow 
with interest the work of the Institute. 

U.S. DELEGATION TO INTERNATIONAL 
TELEGRAPH CONSULTATIVE 
COMMITTEE OF ITU 

The Department of State has announced the 
composition of the United States Delegation to the 
Sixth Plenary Meeting of the International Tele- 
graph Consultative Committee of the Interna- 
tional Telecommunication Union which is sched- 
uled to be held at Brussels, Belgium, May 10-29, 
1948. The United States Delegation is as follows : 

Chairman 

Trevanion H. E. Nesbitt, Assistant Chief, Telecommunica- 
tions Division, Department of State 

Vice Chairman 

William J. Noifleet, Chief Accountant, Federal Communi- 
cations Commission 

Advisers 

Harold J. Cohen, Assistant General Counsel, Federal 

Communications Commission 
Harvey B. Otterman, Assistant Chief, Telecommunications 

Division, Department of State 
John N. Plaliias, First Secretary and Consul, American 

Embassy, Paris 
Alva G. Simson, Consultant, Communications Liaison 

Branch, Office of Chief Signal Officer, Department of 

the Army 
Marion H. Woodward, Assistant Chief Engineer, Federal 

Communications Commission 

Assistant to the Chairman 

William E. O'Connor, Divisional Assistant, Telecommuni- 
cations Division, Department of State 

Industry Advisers 

Amekican Cable & Radio Coepoeation System Com- 
panies 

May 9, J 948 



ACnV/r/ES AND DEVHOPMBNTS 

Morgan Heiskell, European Representative, Paris 

Mackay Radio and Texegkaph Company 

Leroy F. Spaugeuberg, Vice President, New York, 
N. Y. 

RCA Communications, Inc. 

Glen McDaniels, Vice President and General Attorney, 

New York, N. Y. 
John H. Muller, Assistant to Executive Vice President, 

New York, N. Y. 

Western Union Telegraph Company 

K. Bruce Mitchell, Director, International Communi- 
cations, New York, N. Y. 

Marion M. Newcomer, Manager, Western Union Tele- 
graph Company in Germany, Frankfurt 

The Sixth Meeting of the Committee has been 
called jointly by the International Telecommuni- 
cation Union and the Government of Belgium to 
study technical questions relating to telegraphy 
and to formulate recommendations for the solu- 
tion of these problems. 

Invitations to attend the forthcoming meeting 
have been sent to member governments of the In- 
ternational Telecommimication Union and to pri- 
vate companies and international organizations 
interested in the subject matter. 

U.S. DELEGATION TO INTERNATIONAL 
TIN STUDY GROUP 

[Released to the press April 16] 

The United States acted as host to the Second 
Meeting of the International Tin Study Group, 
which convened April 19-23, 1948, in Washington. 
The address of welcome was delivered by Willard 
L. Thorp, Assistant Secretary of State. 

The Tin Study Group is composed of 14 mem- 
bers which have primary interest in the produc- 
tion or consumption of tin. The Group maintains 
a permanent secretariat with headquarters at The 
Hague. 

The United States Delegation is headed by Don- 
ald D. Kennedy, Chief, Division of International 
Resources, Department of State, assisted by the 
following : 

Advisers 

George Jewett, Associate Director, Office of Metals Re- 
serve, Reconstruction Finance Corporation 

Erwin Vogelsang, Chief, Tin and Antimony Section, Metals 
Division, Department of Commerce 

Carl N. Gibboney, International Commodity Arrange- 
ments Adviser, Department of Commerce 

Charles Merrill, Chief, Metal Economics Branch, Bureau 
of Mines, Department of the Interior 

Fred Bartlett, U.S. Embassy, London 

Carl Ilgenfritz, Vice President, United States Steel Cor- 
poration 

Secretary 

Virginia D. Karchere, Division of International Resources, 
Department of State 

599 



THE RECORD OF THE WEEK 



Treaty of Economic, Social and Cuitural Collaboration 

and Collective Self-Defence^ 



BETWEEN GREAT BRITAIN AND NORTHERN IRELAND, BELGIUM, FRANCE, 
LUXEMBOURG, AND THE NETHERLANDS 

Brussels, 17th March, 1948 



His Royal Highness the Prince Regent of Bel- 
gium, the President of the French Republic, 
Pi'esident of the French Union, Her Royal High- 
nass the Grand Duchess of Luxembourg, Her 
Majesty the Queen of the Netherlands and His 
Majesty The King of Great Britain, Ireland and 
the British Dominions beyond the Seas, 

Retolved 

To reaffirm their faith in fundamental human 
rights, in the dignity and worth of the human 
person and in the other ideals proclaimed in the 
Charter of the United Nations; 

To fortify and preserve the principles of democ- 
racy, personal freedom and political liberty, the 
constitutional traditions and the rule of law, 
which are their common heritage; 

To strengthen, with these aims in view, the eco- 
nomic, social and cultural ties by which they are 
already united ; 

To co-operate loyally and to co-ordinate their 
efforts to create in Western Europe a firm basis for 
European economic recovery ; 

To afford assistance to each other, in accordance 
with the Charter of the United Nations, in main- 
taining international peace and security and in 
resisting any policy of aggression ; 

To take such steps as may be held to be necessary 
in the event of a renewal by Germany of a policy 
of aggression; 

To associate progressively in the pursuance of 
these aims other States inspired by the same ideals 
and animated by the like determination; 

Desiring for these purposes to conclude a treaty 
for collaboration in economic, social and cultural 
matters and for collective self-defence; 

Have appointed as their Plenipotentiaries : 

His Royal Highness the Prince Regent of 
Belgium 
His Excellency Mr. Paul-Henri Spaak, Prime 
Minister, Minister of Foreign Affairs, 
and 



' Great Britain. Cmd. 7367. Miscellaneous No. 2 ( 1948 ) . 
600 



His Excellency Mr. Gaston Eyskens, Minister 
of Finance, 

The President of the French Republic, Presi- 
dent of the French Union 
His Excellency Mr. Georges Bidault, Minister 

of Foreign Affairs, and 
His Excellency Mr. Jean de Hauteclocque, 
Ambassador Extraordinary and Plenipo- 
tentiary of the French Republic in Brus- 
sels, 

Her Royal Highness the Grand Duchess of 
Luxembourg 
His Excellency Mr. Joseph Bech, Minister of 

Foreign Affairs, and 
His Excellency Mr. Robert Als, Envoy Ex- 
traordinary and Minister Plenipotentiary 
of Luxembourg in Brussels, 

Her Majesty the Queen of the Netherlands 
His Excellency Baron C. G. W. H. van 
Boetzelaer van Oosterhout, Minister of 
Foreign Affairs, and 
His Excellency Baron Binnert Philip van 
Harinxma thoe Slooten, Ambassador Ex- 
traordinary and Plenipotentiary of the 
Netherlands in Brussels, 

His Majesty the King of Great Britain, Ireland 
and the British Dominions beyond the Seas 
for the United Kingdom of Great Britain 
and Northern Ireland 
The Right Honourable Ernest Bevin, Mem- 
ber of Parliament, Principal Secretary of 
State for Foreign Affairs, and 
His Excellency Sir George William Rendel, 
K.C.M.G., Ambassador Extraordinary 
and Plenipotentiary of His Britannic 
Majesty in Brussels, 

who, having exhibited their full powers found in 
good and due form, have agreed as follows : 

Article I 

Convinced of the close community of their in- 
terests and of the necessity of uniting in order to 

Department of State Bulletin 



promote the economic recovery of Europe, the 
High Contracting Parties will so organize and co- 
ordinate their economic activities as to produce the 
best possible results, by the elimination of conflict 
in their economic policies, the co-ordination of 
production and the development of commercial 
exchanges. 

The co-operation provided for in the preceding 
paragraph, which will be effected through the Con 
sultative Council referred to in Article VII as well 
as through other bodies, shall not involve any dup- 
lication of, or prejudice to, the work of other eco- 
nomic organizations in which the High Contract- 
ing Parties are or may be represented but shall on 
the contrary assist the work of those organizations. 

Abticle II 

The High Contracting Parties will make every 
effort in common, both by direct consultation and 
in specialized agencies, to promote the attainment 
of a higher standard of living by their peoples and 
to develop on corresponding lines the social and 
other related services of their countries. 

The High Contracting Parties will consult with 
the object of achieving the earliest possible appli- 
cation of recommendations of immediate practical 
interest, relating to social matters, adopted with 
their approval in the specialized agencies. 

They will endeavour to conclude as soon as pos- 
sible conventions with each other in the sphere of 
social security. 

Aeticle III 

The High Contracting Parties will make every 
effort in common to lead their peoples towards a 
better understanding of the principles which form 
the basis of their common civilization and to pro- 
mote cultural exchanges by conventions between 
themselves or by other means. 

Article IV 

If any of the High Contracting Parties should 
be the object of an armed attack in Europe, the 
other High Contracting Parties will, in accordance 
with the provisions of Article 51 of the Charter 
of the United Nations, afford the party so attacked 
all the military and other aid and assistance in 
their power. 

Article V 

All measures taken as a result of the preceding 
Article shall be immediately reported to the Secu- 
rity Council. They shall be terminated as soon as 
the Security Council has taken the measures neces- 
sary to maintain or restore international peace and 
Security. 

The present Treaty does not prejudice in any 
way the obligations of the High Contracting 
Parties under the provisions of the Charter of the 
United Nations. It shall not be interpreted as 

May 9, 1948 



THB RECORD OF THE WCCK 

affecting in any way the authority and responsi- 
bility of the Security Council under the Charter 
to take at any time such action as it deems neces- 
sary in order to maintain or restore international 
peace and security. 

Article VI 

The High Contracting Parties declare, each so 
far as he is concerned, that none of the intei-na- 
tional engagements now in force between him and 
any other of the High Contracting Parties or any 
third State is in conflict with the provisions of the 
present Treaty. 

None of the High Contracting Parties will con- 
clude any alliance or participate in any coalition 
directed against any other of the High Contract- 
ing Parties. 

Article VII 

For the purpose of consulting together on all the 
questions dealt with in the present Treaty, the 
High Contracting Parties will create a Consulta- 
tive Council, which shall be so organized as to be 
able to exercise its functions continuously. The 
Council shall meet at such times as it shall deem fit. 

At the request of any of the High Contracting 
Parties, the Council shall be immediately con- 
vened in order to permit the High Contracting 
Parties to consult with regard to any situation 
which may constitute a threat to peace, in what- 
ever area this threat should arise; with regard to 
the attitude to be adopted and the steps to be taken 
in case of a renewal by Germany of an aggressive 
policy ; or with regard to any situation constitut- 
ing a danger to economic stability. 

Article VIII 

In pursuance of their determination to settle 
disputes only by peaceful means, the High Con- 
tracting Parties will apply to disputes between 
themselves the following provisions: 

The High Contracting Parties will, while the 
present Treaty remains in force, settle all disputes 
falling within the scope of Article 36, paragraph 
2, of the Statute of the International Court of 
Justice by referring them to the Court, subject 
only, in the case of each of them, to any reservation 
already made by that Party when accepting this 
clause for compulsory jurisdiction to the extent 
that that Party may maintain the reservation. 

In addition, the High Contracting Parties will 
submit to conciliation all disputes outside the 
scope of Article 36, paragraph 2, of the Statute of 
the International Court of Justice. 

In the case of a mixed dispute involving both 
questions for which conciliation is appropriate and 
other questions for which judicial settlement is 
appropriate, any Party to the dispute shall have 
the right to insist that the judicial settlement of 
the legal questions shall precede conciliation. 

601 



THE RECORD Of THE WEEK 

The preceding provisions of this Article in no 
way affect the application of relevant provisions 
or agreements prescribing some other method of 
pacific settlement. 

Article IX 

The High Contracting Parties may, by agree- 
ment, invite any other State to accede to the pres- 
ent Treaty on conditions to be agreed between them 
and the State so invited. 

Any State so invited may become a Party to the 
Treaty by depositing an instrument of accession 
with the Belgian Government. 

The Belgian Government will inform each of 
the High Contracting Parties of the deposit of 
each instrument of accession. 

Abticle X 

The present Treaty shall be ratified and the in- 
struments of ratification shall be deposited as soon 
as possible with the Belgian Government. 

It shall enter into force on the date of the deposit 
of the last instrument of ratification and shall 
thereafter remain in force for fifty years. 

After the expiry of the period of fifty years, 
each of the High Contracting Parties shall have 
the right to cease to be a party thereto provided 
that he shall have previously given one year's 
notice of denunciation to the Belgian Government. 

The Belgian Government shall inform the 
Governments of the other High Contracting 



Parties of the deposit of each instrument of rati- 
fication and of each notice of denunciation. 

In witness whereof, the above-mentioned Pleni- 
potentiaries have signed the present Treaty and 
have affixed thereto their seals. 

Done at Brussels, this seventeenth day of 
March 1948, in English and French, each text 
being equally authentic, in a single copy which 
shall remain deposited in the archives of the Bel- 
gian Government and of which certified copies 
shall be transmitted by that Government to each of 
the other signatories. 

For Belgium : 

(L. s.) P. H. Spaak. 

(L. s.) Gaston Eyskens. 

For France : 

(L. s.) G. Bidatjlt. 

( L. 8. ) J. DE HaUTECLOCQUE. 

For Luxembourg : 
(L. s.) Joseph Bech. 
( L. s. ) Robert Ai-s. 

For the Netherlands : 

(L. s.) W. van Boetzelaer. 

(L. S.) VAN HaRINXMA THOE SlOOTEN. 

For the United Kingdom of Great Britain and 
Northern Ireland : 
( L. 8. ) Ernest Bevin. 
( L. s. ) George Rendel. 



COMMUNIQUE ON FERST MEETING OF THE PERMANENT CONSULTATIVE COUNCIL' 



The French Foreign Office published the following 
oom.munique on the meeting of signatories to the 
Brussels treaty 

April 18, 194S 

The five Foreign Ministers of the signatory pow- 
ers of the treaty of Brussels meeting Paris April 
17, 1948 in consultative council according to Arti- 
cle 7 agreed on the following provisions to insure 
application of accord of March 17 : 

1. The permanent consultative council is com- 
posed of the five Ministers of Foreign Affairs. 
The council will meet in each of the capitals of the 
signatory states in turn each time that such a 
meeting appears necessary and at least once every 
three months. 

2. The permanent organ of the council will be 
constituted by diplomatic representatives in Lon- 
don of Belgium, France, Luxembourg, Nether- 
lands and designated representative of the British 
Government. It will be assisted by a secretariat. 
It will meet at least once a month. 

'Printed from telegraphic text. 

602 



3. The security problems covered by the pact 
normally come within the responsibility of the 
qualified ministers of the different countries who 
will meet in London to discuss them each time that 
will become necessary. In order to follow these 
same questions a permanent military committee 
will be constituted in London under the authority 
of the council and under the control of the politi- 
cal repi'esentatives named in paragraph two. 

4. As regards economic, social and cultural 
questions the council will decide on a periodic 
meeting of competent ministers and experts in a 
designated place. In order to follow the work 
undertaken in the course of these meetings the 
council will decide on the constitution of special 
committees appointed for this purpose. 

5. All the committees mentioned above are to re- 
port to the consultative council. The five Minis- 
ters of Foreign Affairs also decided that the first 
meeting of the permanent organ will take place 
April 24 next. 

Department of Slate Bulletin 



The Importance of Imports 



BY WILLARD L. THORP < 
Assistant Secretary for Economic Affairs 



In 1947 the foreign trade among the countiies 
of the world exceeded the prewar levels. The 
statistical records are incomplete and inadequate, 
but the estimates made by the Department of 
Commerce on the basis of available information 
indicate that world exports in 1947, and therefore 
world imports in 1947 as well, ran more than twice 
the total for 1938 in dollar terms. These figures, 
of course, are affected greatly by the rise in prices 
everywhere. It is perhaps more meaningful that 
estimates, which are corrected so far as possible for 
price change, indicate that the physical volume of 
goods moving into international trade channels in 
1947 was slightly more than in 1938. In other 
words the physical flow of commodities across 
national boundaries is back to the prewar level. 

These agp;regate figures tend to conceal the extra- 
ordinary changes in the world trade pattern be- 
tween the prewar and the postwar periods. In 
1938 nearly one half of the goods exported started 
in European countries, and the Far East was a 
substantial exporter of raw materials. Germany 
contributed about 10 percent of world exports and 
Japan 3.6 percent. 

Today the pattern is completely different with 
the greatest change being that of the position of 
the United States in international commerce. 
American exports are primarily responsible for 
the fact that global trade in 1947 in actual physical 
quantities reached prewar levels, despite the great 
gap left by the low level of shipments from any 
other less fortunate areas. In 1938 the United 
States supplied 14 percent of the products moving 
in world commerce. The figure for 1946 is esti- 
mated by the Department of Commerce to be 31.1 
percent and to have reached 34.6 percent in the first 
half of 1947. In other words about one third of 
all commodities moving in foreign trade in the 
postwar pattern are exports from the United 
States. 

Despite the greatly increased demand for goods 
and materials by our industries and our consumers 
resulting from the high level of economic activity 
here, the world as a whole has been unable to sup- 
ply to us a volume of goods much larger than in 
prewar years. Goods coming to the United States 
are estimated by the Department of Commerce at 
8.2 percent of the world trade in 1938 and 11.4 per- 
cent in the first half of 1947. Thus, measured in 
world trade, where total exports must equal total 
imports, the United States share in exports is 

May 9, 1948 



nearly 35 percent and in imports, about 11 percent. 
For most other countries, the figures are in reverse 
order of magnitude. Thus, in very brief sum- 
mary, is pictured the world disequilibrium of 
today. 

Never have our own exports and imports been 
so seriously out of balance. Never before have 
American products been needed so badly, yet never 
has the means with which to purchase them been so 
inadequate. Largely through the medium of the 
extension of grants, credits, and the liquidation of 
foreign gold reserves and dollar assets, American 
goods have moved in this great quantity but the 
present pattern, necessary as it is for immediate 
economic progress, cannot be long maintained. 
To be sure, the gap between commodity exports 
and imports is never identical with the financial 
elements in the balance of payments. However, 
in the long run, the invisible items cannot possibly 
begin to meet an unbalanced situation such as the 
present. In fact, our position as a creditor nation, 
a state which is steadily becoming greater as we 
extend more and more credit and as foreign assets 
in the United States are liquidated, points increas- 
ingly to the necessity of bringing commodity ex- 
ports and imports more nearly into line. Our 
American foreign policy must be based on these 
fundamental economic facts. 

The European Recovery Program has been dis- 
cussed largely in terms of the extent to which ex- 
ports to western Europe from the Western Hem- 
isphere are necessary for the economic operation 
and recovery of these war-devastated areas. How- 
ever, the fundamental economic objective of the 
European Recovery Program is the reestablish- 
ment of the ability of European countries to sup- 
port themselves without outside assistance. The 
fact is that Europe, and particularly western 
Europe, is a workshop and must import materials 
and export finished goods in order to live. The 
report of the Committee on European Economic 
Co-operation recorded last summer the intention 
of the member countries to increase their exports 
to the United States in the course of the next four 
3'ears from an estimated 848 million dollars in 
1948^9 to 1,484 million dollars in 1951-52. 
Greater increases were planned for other areas of 
the world so as to reestablish the prewar pattern 
which made it possible for Europe to live. The 

' Address made before the National Council of American 
Importers in New Torli City on Apr. 22, 1948, and released 
to the press on the same date. 

603 



THE RECORD Of THB WBBK 

estimates for European exports to the United 
States which have been presented to the appropri- 
ations committees by the Executive branch of the 
Government are somewhat higher, namely 1,587 
million dollars for 1948-49 (measured at July 1, 
1947, prices). The comparable figure for 1947 
was 1,279 million dollars and the target for 
1951-52, a most uncertain estimate of course, is 
2,759 million dollars. These new figures are on a 
different basis from the Ceec estimates, since they 
include western Germany as well as substantial 

?uantities of raw materials such as rubber and tin 
rom colonies aod dependencies of the 16 countries. 

European exports to the United States are of 
particular importance at the moment because pay- 
ments are made in dollars, which may be used any- 
where in the world as needed. Europe used to 
export more substantially to other parts of the 
world, which in turn frequently earned their ca- 
pacity to pay Europe in dollars by exporting to the 
United States in greater volume than they im- 
ported from us. Europe also had a substantial 
invisible income from these other sources. How- 
ever, the non-European countries which used to 
transfer dollars to Europe in such quantities are 
now also in trouble with respect to trade with the 
United States, i.e., they also have impoil surpluses, 
and are unable to do an adequate job of financing 
even their own dollar needs. Hence, they are re- 
luctant to pay Europe in dollars or other convert- 
ible currency. The salvation of European coun- 
tries in terms of self-support cannot immediately 
be achieved by means of exports to non-European 
areas outside the United States. However, one of 
the more hopeful aspects of the situation is the 
expectation that the deficit between the European 
countries and countries outside the Western Hemi- 
sphere will change to a surplus after about two 
years, and the triangular process of balancing pay- 
ments can be gradually resumed. 

It therefore becomes clear that importing by the 
United States of increased quantities of goods 
from Europe is one step which can assist the 
Europeans in achieving their recovery objectives. 
It is equally clear that American imports from 
other parts of the world which trade with Europe 
are of similar consequence in terms of European 
recovery. In a general economic sense, as we in- 
crease our imports from any part of the world, 
we make it more possible for other countries to 
lecover their equilibrium and to make further 
progress. 

This is the determinant of our immediate and 
short-run foreign economic policy. Our im- 
balance of trade is so great that we must finance 
the deficit, not to keep ourselves going, but to en- 
able other countries to obtain absolute necessities 
for their consumers and their recovery. Our ob- 
jective should be not to get accustomed to this 
sort of arrangement ourselves, nor allow our 
friends abroad to get accustomed to it. It is 

604 



possible for us to give this assistance temporarily 
because of the rich and varied nature of our econ- 
omy, but it is not a sound policy to allow such a 
procedure to continue for any longer than is abso- 
lutely necessary. We must think always in terms 
of getting other nations on their feet and never in 
terms of long-continued subsidies to them. The 
most positive way in which we can act is by im- 
porting their goods. We can use the goods to 
make a richer and more comfortable life for our- 
selves as consumers, and we can use their raw 
materials and fuels to replenish our strength, 
which was to some extent depleted during the war. 
If we are to act in accord with our position as a 
creditor nation, this must come about. 

There are other types of imports in the field of 
services, the so-called invisibles. Europe used to 
gain a substantial part of its foreign trade income 
from such invisibles, and the losses in this category 
have contributed heavily to the present great defi- 
cit of European payments. Income from invest- 
ments have had to be sacrificed. Merchant fleets 
have been sharply reduced, and now indeed one 
of the large items of dollar payments which Euro- 
pean countries must make is that of ocean freight 
for the use of ships which we own, and for which 
we charge freight in dollars. Other invisibles 
which are important are banking and insurance 
services, and tourism. In at least some of these 
categories, the European countries have hopes of 
restoring them to a substantial extent. Therefore, 
when we talk about imports we must bear in mind 
that we should include in this concept the invisi- 
ble items which can do much to rectify the imbal- 
ance of trade. 

Accepting then the economic significance of im- 
ports as contributing to economic and political 
stability abroad, and to achieving the objective 
of the European Recovery Program, we may well 
examine what it is that keeps these imports at a 
low level at the present time — not particularly low 
in terms of the level of imports into the United 
States at some time in the past, but low in terms 
of our present level of economic activity and our 
present export flood. Certain of these limitations 
are matters which must be dealt with by the Euro- 
pean countries themselves. In the first place, 
countries afflicted by the war have not fully re- 
stored their productivity. They lack raw mate- 
rials and fuel, and they sometimes lack labor. 
W^hen they do restore their productive capacity, 
frequently the needs of their domestic economies 
for reconstruction are so great that they must first 
allocate the goods produced to satisfy this require- 
ment. Another factor which has reduced the 
availability of European export goods has been 
the growth of population, including the millions of 
refugees and displaced persons now in western 
Europe. This population increase means that 
European productivity must be higher than it was 

Department of State Bulletin 



prior to the war, if prewar standards of living are 
to be reestablished, and if Europe is to become 
self-supporting. The result of all these factors is 
that goods which should be available for export 
to us and to other countries are delayed in appear- 
ing on the world market. 

Another reason for the lack of availability of 
goods for export from Europe is the difficulty 
which many European countries have been experi- 
encing with respect to their currencies. High 
price levels, creeping or racing inflation, and black 
market operations mean hoarded commodities, 
lowered productivity, and the over-pricing of 
goods, particularly in relation to export mai-kets. 
For example, traditional French exports to the 
United States were offered at such high prices 
during 1947 that, in most instances, they were 
priced out of the market. The devaluation of the 
franc is, of course, a major step in the direction 
of correcting this tendency. The European coun- 
tries have pledged themselves "to apply all neces- 
sary measures leading to the rapid achievement 
of internal financial monetary and economic sta- 
bility." Their report summarizes their attitude 
as follows: "In general terms, the restoration of 
a healthy economic and monetary situation with 
appropriate rates of exchange will stimulate pro- 
duction and exports and open new possibilities 
of foreign investment and commercial credits." 
As their recovery i^rogresses, these difficulties 
should tend to be overcome. 

At the moment, much of the world's trade moves 
in terms of quotas and exchange controls. Bi- 
lateral arrangements and shipments on the basis 
of grant or credit tend to be determined without 
much reference to monetary machinery, except as 
a method of record-keeping. But in more nor- 
mal operations, foreign exchange rates are a most 
important balancing factor. The price level in 
each country is translated into the price levels 
of other countries through the foreign exchange 
mechanism. Depending upon the relative position 
of the price levels and the rate of exchange, goods 
will be encouraged to flow in one direction or the 
other. At the present moment, this dynamic force 
is not operating with any real effectiveness. 
American prices should be high relative to those 
in every other country when translated througli 
the exchange rates, to retard our exports and en- 
courage imports to this country. But present 
rates in most countries are arbitrarily fixed and 
quite unrelated to the relative price-level ratio. 
The beneficial effects which foreign exchange rates 
can exert are not present. This is one of the prob- 
lems calling for early action as an integral part 
in an effective program for wide-spread economic 
recovery. 

Nor can we disregard the fact that, if we are to 
import, we must make the path easier by reducing 
direct government interference with trade as much 

May 9, 1948 



THE RECORD OF THE WEEK 

as possible. High tariffs are inconsistent with our 
position as a creditor nation. We have made sig- 
nificant progress along this line since the enact- 
ment of the reciprocal trade agreements act in 
1934. The most recent major step in this direction 
was, of course, the signature of the general agree- 
ment on tariffs and trade at Geneva in 1947, with 
the consequent duty reductions which were put 
into effect on January 1 of this year. The char- 
ter recently initialed in Geneva provides the long- 
run program for permitting the expansion of trade 
by the reduction of trade barriers. 

But all these conditions of which I have been 
speaking are not enough to meet the problem. 
Goods do not move of their own accord. The 
American importer is the hero in the piece. 
Traditionally, our major efforts in foreign trade 
have been oriented in the direction of our exports, 
and too little attention has been directed toward 
increasing our purchases from other countries. 
The well-known American skill in salesmanship 
must be brought into play to show the American 
people the desirability of acquiring goods from 
abroad. Many products of European countries 
are highly desirable for consumers in the United 
States. There is great importance in the possi- 
bilities of increased imports of raw materials and 
industrial goods from European countries and 
their dependencies. The future health of our 
foreign trade, as well as our ability to benefit from 
our creditor position, depends primarily upon our 
imports and our importers. 

It is true that foreign goods in various lines 
compete with our own products, but our system is 
one which has always believed that competition 
is the life of trade, and it is clear that if we do not 
buy other people's exports, they will not be able 
to buy ours. The European Recovery Program 
has been called a calculated risk, and the United 
States has accepted this risk as a major feature of 
foreign policy. To the extent that we buy goods 
produced by other countries in increasing quanti- 
ties, so that we enable other countries to gain in 
their ability to support themselves, we reduce the 
element of risk in our foreign economic ojjerations. 
Nor is it enough to call it a reduction of risk. 
It is also the path to the expansion of trade with 
the concurrent promise of rising standards of 
living both at home and abroad. 

Address on Reciprocal Trade Agreements 

On April 16 Winthrop G. Brown, Acting 
Director, Office of International Trade Policy, 
Department of State, made an address on recip- 
rocal trade agreements and their effects on imports 
before the Import Session of the Third Mississippi 
Valley World Trade Conference in New Orleans; 
for the text of this address, see Department of 
State press release 293 of April 16, 1948. 

60S 



International Wheat Agreement Transmitted to tlie Senate 



MESSAGE OF THE PRESIDENT TO THE SENATE 



To the Senate of the United States: 

With a view to leceiving the advice and consent 
of the Senate to ratification, I transmit herewith, 
in certified form, the International Wheat Agree- 
ment,^ in the English and French languages, which 
was open for signature in Washington from 
March 6, 1948 until April 1, 1948 and was signed, 
during that period, by representatives of this 
Government and the governments of 35 other 
countries. 

The purpose of the Agreement, described in 
greater detail in the enclosed report of the Secre- 
tary of State and letter from the Acting Secretary 



of Agriculture, is to provide supplies of wheat 
to importing countries and to assure markets to 
exporting countries at equitable and stable prices. 
In view of the fact that the Agreement requires 
formal acceptance by the signatory governments 
by July 1, 1948, I urge that the Senate give the 
Agreement the earliest possible consideration. 

Harry S. Truman 

The White House, 
April 30, 1948. 

(Enclosures: (1) Report by the Secretary of State; (2) 
Letter from the Acting Secretary of Agriculture.) 



REPORT OF THE SECRETARY OF STATE 



April 29, 19k8 
The President : 

The undersigned, the Secretary of State, has the 
honor to lay before the President, with a view to 
its transmission to the Senate to receive the advice 
and consent of that body to ratification, if his 
judgment approve thereof, a certified copy of the 
International Wheat Agreement which was open 
for signature in AVashington from March 6, 1948 
until April 1, 1948 and was signed, during that 
period, by representatives of the Government of 
the United States of America and representa- 
tives of the Governments of 35 other countries. 

The Agreement is the result of approximately 
fifteen years of negotiation in an effort to con- 
clude an agreement providing a framework with- 
in which there might be stabilized the gi-eatest 
possible portion of the international wheat trade. 
Negotiations reached a successful conclusion at 
the Special Session of the International "Wlieat 
Council held in Washington from January 28, 
1948 until March 6, 1948. 

The objectives of the Agreement, as set forth in 
Article I thereof, are "to assure supplies of wheat 
to importing countries and to assure markets to ex- 
porting countries at equitable and stable prices." 
In general the Agreement is in the nature of a 
multilateral contract requiring member exporting 
countries to supply designated quantities of wheat 
to member importing countries, when requested to 
do so by those importing countries, at the maxi- 

' See Documents and State Papers, May 1948, pp. 
102-111. 

606 



mum prices established in the Agreement and, 
conversely, requiring member importing countries 
to purchase designated quantities of wheat from 
member exporting countries, when requested to do 
so by those exporting countries, at the minimxim 
prices established in the Agreement. The market 
which the Agreement assures to United States pro- 
ducers of wheat should eliminate to a great extent 
the serious disadvantages to those producers which 
are the result of bilateral contracts between other 
exporting countries and certain of the importing 
countries signatory to the Agreement. The num- 
ber and coverage of such bilateral contracts, more- 
over, undoubtedly would have been increased if 
the Agreement had not been negotiated. 

It is believed that in addition to assuring mar- 
kets, at guaranteed prices, to exporting countries 
for a substantial portion of the exportable wheat 
production of those countries, thus encouraging 
the maintenance of production during the current 
cereals shortage, the Agreement will have the ef- 
fect, by assuring importing countries of designated 
quantities of wheat at specified prices, of en- 
couraging those countries whose cost of wheat 
production is relatively high to meet a larger part 
of their requirements with imported wheat and, 
accordingly, to plan their agricultural production 
with a view to increased diversification of crops 
and employment of land resources to gi-eater 
advantage. 

The Agreement, in accordance with the provi- 
sions of Article XXII thereof, is to remain in 
force for a five-year period. Provision is made in 

Department of Stale Bulletin 



Article XXII for recommendations by the Inter- 
national AVheat Council with respect to renewal 
of the Agreement upon the expiration of the five- 
year period. 

The more important substantive provisions of 
the Agreement are contained in Articles I to IX, 
inclusive. Articles X to XXII, inclusive, deal 
with administrative and procedural matters. The 
Agreement is explained in greater detail in the 
enclosed article-by-article summary. Also trans- 
mitted herewith is a letter from the Acting Secre- 
tary of Agriculture which sets forth the views of 
the Department of Agriculture with respect to the 
Agreement. 

In the course of the negotiation it was found 
necessary, in order that the Agreement might be 



THE RECORD OF THE WBBK 

in effect during the next wheat-marketing year, to 
provide, in Article XX, that instruments of ac- 
ceptance of the Agreement be deposited no later 
than July 1, 1948 by all Governments except those 
of importing countries which are prevented by a 
recess of their respective legislatures from accept- 
ing the Agreement by that date. In order to bring 
the Agreement into force on the part of the United 
States it is necessary, therefore, that the United 
States instrument of acceptance be deposited by 
July 1, 1948. Accordingly it is i-ecommended that 
the Senate be requested to give consideration to 
the Agreement at the earliest opportunity. 

Respectfully submitted, 

G. C. MAKSHAUii 



INTERNATIONAL WHEAT AGREEMENT 



Summary of Principal Provisions 

Article I sets forth the objectives of the Agree- 
ment, i.e. the assurance of wheat supplies to im- 
porting countries and wheat markets to exporting 
countries at equitable and stable prices. 

Article II relates to the rights and obligations 
of importing and expoi'ting countries and estab- 
lishes, in Annexes I and II, respectively, the pur- 
chases which each contracting importing country, 
and the sales wliich each contracting exporting 
country, guarantees to make. 

Article III provides that the contracting coun- 
tries shall supply to the International Wheat 
Council, established by Article XI, with respect to 
imports and purchases for import, and exports and 
sales for export, of wheat, the information which 
is necessary for the maintenance by the Council of 
records required in the administration of the 
Agreement. 

Article IV, relating to enforcement of rights, 
establishes the procedure to be followed by the 
contracting countries in requesting fvdfillment of 
obligations, namely, that any importing country 
which at any time finds difficulty in making its 
guaranteed purchases at the maximum price may, 
through the Council, call upon the exporting 
countries to supply wheat at the maximum price 
up to the amount that the exporting countries 
have guaranteed to supply the importing country 
in question and that any exporting country which 
at any time finds difficulty in making its guaran- 
teed sales at the minimum price may, through the 
Council, call upon the importing countries to pur- 
chase wheat at the minimum price up to the 
amount that the importing countries have guaran- 
teed to purchase from the exporting country in 
question. 

Article V, concerning adjustment of obligations, 

May 9, 7948 



provides for the reporting to the Council by a 
country which fears that it may be prevented by 
circumstances from fulfilling its obligations under 
the Agreement ; for a finding by the Council as to 
whether that country's representations in this con- 
nection are well-founded ; and, if so, for an adjust- 
ment in the obligations in question, through the 
voluntary assumption of those obligations by other 
contracting countries, if this is possible, and, if it 
is not, through a reduction by the Council, on a 
pro rata basis, of the quantities in the appropriate 
annex to Article II. 

Article VI establishes the following minimum 
and maximum prices for the duration of the Agree- 
ment for no. 1 Manitoba Northern wheat in store 
at Fort William or Port Arthur : 

Minimum Maximum 

1948/49 $1.50 $2.00 

1949/50 1.40 2.00 

1950/51 1.30 2.00 

1951/52 1.20 2.00 

1952/53 1.10 2.00 

The Article provides further that during the last 
three years of the five-year period during which 
the Agreement is to remain in force the price range 
may be narrowed, within the minimum and maxi- 
mum limits, by the Council by a two-thirds ma- 
jority of the votes held by the exporting and im- 
porting countries voting separately. 

There are establi-shed in Article VI formulas for 
determining the price equivalents for no. 1 Mani- 
toba Northern wheat in store in Vancouver, f . a. q. 
wheat f. o. b. Australia, no. 1 Hard Winter wheat 
f. o. b. Gulf/Atlantic ports of the United States, 
and no. 1 Soft White/no. 1 Hard Winter wheat 
f. o. b. Pacific ports of the United States. Article 
VI provides also that the Executive Committee, 
in consultation with the Standing Technical Ad- 
visory Committee on Price Equivalents, estab- 

607 



THE RECORD Of THB WEEK 

lished by Article XV, may determine the price 
equivalents for other descriptions of wheat. 

Article VII authorizes the Council, upon re- 
quest hj a member country, to use its good offices 
in facilitating transactions in wheat in amounts 
in addition to those provided for elsewhere in the 
Agreement. 

Article VIII authorizes any exporting country 
to export wheat at special prices for use in nu- 
tritional programs that are approved by the Food 
and Agriculture Organization, provided the wheat 
is exported under conditions that are approved 
by the Council, it being understood that the Coun- 
cil will not give its approval unless it is satisfied 
that the full commercial demand of the importing 
countries will be met throughout the period in 
question at not more than the minimum price. 

Article IX pi-ovides that the minimum stock- 
holdings of the exporting countries shall be as 
follows, subject to the proviso that stocks may be 
permitted to fall below these figures if the Coun- 
cil decides that this is necessary in order to pro- 
vide the quantity of wheat needed to meet either 
the domestic requirements of the exporting coun- 
tries or the import requirements of the importing 
countries : 



Australia 
Canada 



. 25 millions of bushels (excluding farm 

stocks). 
. 70 millions of bushels (excluding farm 

stocks). 
United States . 170 millions of bushels ( including farm 

stocks). 

This Article further places an obligation upon ex- 
porting and importing countries to operate price- 
stabilization reserves up to 10 percent of their 
guaranteed export and import quantities, re- 
spectively. 

Article X sets forth the areas to which the Agree- 
ment applies with respect to each contracting 
country. 

Article XI establishes an International Wheat 
Council, provides that each contracting govern- 
ment shall be a member thereof, and makes pro- 
vision for such administrative matters as fre- 
quency of meetings, election of officers, and rules 
of procedure. 

Article XII provides for the distribution among 
importing and exporting countries of votes in 
the Council on the basis of the quantities of wheat 
which those countries have guaranteed to pur- 
chase or sell under the Agreement. 

Article XIII requires the Council to perform 
the duties assigned to it under the Agreement and 
confers on the Council such powers in addition 
to those expressly conferred upon it as may be 
necessary to achieve its effective operation and to 
realize its objectives. Article XIII provides also 
for the settlement by the Council of any dispute 
arising out of the interpretation of the Agreement 
or regarding an alleged breach of its provisions. 

608 



Article XIV requires the Coinicil to elect an- 
nually an Executive Committee which is to be 
responsible to and work under its general direction 
and on which representatives of the exporting 
and importing countries, respectively, shall have 
the same number of votes. 

Article XV requires the Council to establish a 
Standing Technical Advisory Committee on Price 
Equivalents to advise the Council or the Executive 
Committee regarding the establishment or revision 
of price equivalents. 

Article XVI provides that expenses necessary 
for the administration of the Agreement (except 
those incident to national representation on the 
Council, the Executive Committee, and the Stand- 
ing Technical Advisory Committee on Price 
Equivalents) shall be met by annual contributions 
by contracting governments, such contributions to 
be proportionate to the number of votes held by 
those governments. 

Article XVII provides that the Agreement shall 
prevail over any provisions inconsistent therewith 
which may be contained in any other agreement 
previously concluded between any of the contract- 
ing governments, provided that any two contract- 
ing governments which may be parties to an 
agreement, entered into before March 1, 1947, for 
the purcliase and sale of wheat, shall supply full 
particulars of transactions under such agreemertt 
so that the quantities, irrespective of prices in- 
volved, may be recorded by the Council and be 
counted toward the fulfillment of obligations of 
importing and exporting countries. 

Article XVIII requires the Council to make 
whatever arrangements are required to ensure co- 
operation with the appropriate organs of the 
United Nations and its specialized agencies. 

Article XIX defines the words and expressions 
which are used in the Agreement in a technical or 
specialized sense. 

Article XX provides that the Agreement shall 
remain open for signature until April 1, 1948; 
that it shall be subject to formal acceptance by 
the signatory governments; and that Articles X to 
XXII, inclusive, shall come into force on July 1, 
1948 and Articles I to IX, inclusive, shall come into 
force on August 1, 1948, between the governments 
which have deposited their instruments of accept- 
ance by July 1, 1948, provided that any such gov- 
ernment may, at the opening of the first session of 
the Council, which is to be convened in Washington 
early in July 1948, effect its withdrawal by noti- 
fication to the Government of the United States 
of America if in the opinion of such government 
the guaranteed purchases or guaranteed sales of 
the countries whose governments have formally 
accepted the Agreement are insufficient to ensure 
its successful operation. 

Article XXI provides that any government may 
accede to the Agreement by unanimous vote of the 

Department of State Bulletin 



Council aiul upon such conditions as the Council 
may lay down. 

Article XXII provides that the Agreement shall 
i-emain in force until July 31, 1953; that the Coun- 
cil, not later than July 31, 1952, shall communicate 
to the contracting governments its recommenda- 
tions regarding renewal of the Agreement; that 
the Council ma^^ recommend an amendment to 
the Agreement by a simple majority of the votes 
held by the exporting countries and by a simple 
majorit}' of the votes held by the importing 
countries; that such an amendment shall become 



THE RECORD Of THE WEEK 

effective upon its acceptance by importing 
countries which hold a simple majority of the 
votes of the importing countries (including the 
Government of the United Kingdom) and by ac- 
ceptance by the Governments of Australia, Can- 
ada, and the United States ; that any government 
not accepting the amendment may withdraw from 
the Agreement at the end of the current crop year; 
and that any contracting government which con- 
siders its national security endangered by the 
outbreak of hostilities may withdraw from the 
Agreement upon the expiry of 30 days' written 
notice to the Council. 



LETTER FROM THE ACTING SECRETARY OF AGRICULTURE 
TO THE SECRETARY OF STATE 



April 22, 19Jf8 
Dear Mr. Secretary : 

The proposed International Wheat Agreement, 
which you plan to submit to the Senate for ap- 
proval, is of far-reaching significance to our na- 
tional economy. It is a unique document — com- 
bining the advantages of a commercial contract 
and of a multilateral agreement between govern- 
ments. As such, it provides a concrete, practical 
approach not only to international economic co- 
operation, but also to the achievement of our long- 
range domestic agricultural j^olicy. It is with the 
mutual interests of both the Departments of State 
and Agriculture in mind, therefore, that I take 
this opportunity of presenting formally to you the 
views of this Department in the matter. 

The basic objective of our long-term domestic 
agricultural policy is that of organized, sustained, 
and realistic abundance. Opportunities offered by 
the proposed agreement, for expanded trade in 
wheat through international cooperation, hold ex- 
cellent promise for meeting this objective for a 
basic agricultural commodity, and avoiding the 
need for restrictive measures. 

The 1945 census of agriculture reported over 1.2 
million farms growing significant quantities of 
wheat. There is a substantial number of wheat 
growers in practically every State in the Union. 
Production of wheat in the United States during 
each of the past 4 seasons has exceeded one billion 
bushels, and current indications point to another 
large crop in 1948. Our farm economy is now 
geared to this high level of wheat production. We 
have reached this production through the response 
of the American farmer to the need for increased 
food production during World War II, and to 
meet the critical postwar world food shortage. 
Improved seed and new varieties, increased mech- 
anization, and generally improved farming prac- 

May 9, 1948 



tices, have also helped our wheat growers to reach 
this goal of organized and realistic abundance. 
But the problem posed by the production level 
achieved in this effort involves ways and means of 
gaining our further objective of sustained 
abundance. 

The problem is particularly significant in the 
large specialized areas of the Pacific Northwest 
and the Great Plains. In these areas, crop shifts 
are limited and full employment of agricultural 
resources involves production of considerable 
quantities of wheat in excess of normal domestic 
needs. Measured in terms of acreage, the United 
States has at present several million acres produc- 
ing wheat for export or for non-food uses other 
than feed and seed. The impact of this acreage 
holds in large measure the key to the well-being 
of American agriculture. Markets which the pro- 
posed Agreement helps to assure, however, would 
absorb this excess and would minimize the need 
for considering costly restrictions on the produc- 
tion of wheat in the United States for several years 
to come. 

Our stake in the world wheat market is impor- 
tant. The average annual value of United States 
exports of wheat and flour during the past 25 
years exceeds 200 million dollars or nearly 14 
percent of the total value of exports of agricul- 
tural products during that period. We all remem- 
ber the effects of economic developments in many 
of our formerly important foreign markets for 
wheat during the decade of the thirties. It was 
during this period that a natural tendency towards 
self-sufficiency developed in many of the principal 
importing countries of Europe by increasing 
domestic production of bread grains. This devel- 
opment was accompanied, in turn, by increasing 
trade barriers and restrictions that resulted in 



(Continued on page 611) 



609 



General Agreement on Tariffs and Trade With Czechoslovakia Proclaimed 



The President issued on April 22 a proclamation 
putting into effect as of April 21, 1948, the pro- 
visions of the general agreement on tariffs and 
trade with respect to Czechoslovakia.^ The 
proclamation implements an obligation entered 
into by this Government last October 30 when the 
general agreement was concluded at Geneva with 
22 other countries. 

The attitude of the Government of the United 
States towards the events of last February in 
Czechoslovakia was publicly indicated in the joint 
statement of February 26, 1948, by the Secretary of 
State of this Government and by the Foreign 
Ministers of the Governments of the United King- 
dom and France. It has not changed. These 
events, however, do not directly affect the legal 
status of the reciprocal obligations under the 
general agreement. 

The Pi-esident's action followed receipt of a 
communication from tlie Secretary-General of the 
United Nations informing this Government that 
the Government of Czechoslovakia had signed tlie 
protocol of provisional application of the general 
agreement and had thereby obligated itself to put 
the general agreement into effect. Since Czecho- 
slovakia has now placed the general agreement in 
effect with i-espect to the United States and the 
other contracting parties, this country as well as 
the other contracting parties are obligated to apply 
the agreement to Czechoslovakia. 

It is part of a world-wide program, sponsored 
by the United Nations and actively participated 
in by the United States, designed to reduce trade 
barriers and to restore international trade to an 
orderly and stable basis. It is the most compre- 
hensive agreement with respect to tariffs and other 
trade barriers ever negotiated. 

Czechoslovakia is the tenth of tlie Geneva coun- 
tries to give effect to this agreement. The other 
countries which have done so, in addition to the 
United States, are the United Kingdom, France, 
Belgium, the Netherlands, Luxembourg, Canada, 
Australia, and Cuba. The remainder of the 23 
participants in the negotiations have until June 30, 
1948, to put the agreement provisionally into effect. 
The obligations assumed by Czechoslovakia under 
this agreement and those assumed by other coun- 
tries to Czechoslovakia are integral parts of the 
agreement. 

Under the general agreement, Czechoslovakia 
grants concessions on products of interest to the 

' 13 Fed. Reg. 2211. 
610 



United States representing approximately 31.6 
million dollars in terms of 1937 trade and covering 
approximately 80 percent of Czechoslovakia's 
total prewar imports from the United States. The 
agreement includes substantial duty reductions 
by Czechoslovakia on a number of important items, 
such as apples and pears, raisins, prunes and cer- 
tain other dried fruits, canned fruits and fruit 
juices, canned vegetables, passenger automobiles, 
and certain types of office machines. 

Czechoslovakia and the other contracting par- 
ties to the agreement are committed to certain 
limitations with respect to the application of 
quotas, import restrictions, exchange control, and 
the conduct of state trading, which are important 
since they commit Czechoslovakia as well as other 
parties to the agreement to accord fair treatment 
to the trade of the United States. Should Czecho- 
slovakia or any other contracting party fail to 
fulfil these obligations of the agreement or adopt 
any policy which nullifies or impairs the tariff 
concessions, the application by the United States 
to that country of such obligations or concessions 
under the agreement as may be appropriate in the 
circumstances may be suspended. 

The concessions made by the United States in 
the general agreement on products of interest to 
Czechoslovakia represent approximately 22.7 mil- 
lion dollars in terms of 1937 trade and cover ap- 
proximately 64 percent of United States prewar 
imports from Czechoslovakia. Of the concessions 
granted by the United States, those on household 
china, table and kitchen glassware, jewelry, cer- 
tain types of shoes and gloves, and hops are the 
items of principal interest to Czechoslovakia. 

These concessions were granted only after pub- 
lic hearings and the most careful and considerate 
deliberation by various government agencies 
acting in consultation to assure that domestic pro- 
ducers would not suffer serious injury as a result 
of the concessions. If, however, as a result of 
unforeseen circumstances, any of these concessions 
should result in such increased imports from 
Czechoslovakia as to cause or threaten serious in- 
jury to domestic producers in this country, the 
United States is free to withdraw or modify the 
concessions to the extent necessary to prevent or 
remedy the injury. This provision thus safe- 
guards the interests of domestic producers in this 
country. 

These export controls prevent shipment of goods 
contrary to the national interests of the United 
States. 

Department of State Bulletin 



American Wheat Shipped to the Netherlands 

Message From the Queen of the Netherlands 
to the President 

[Released to the press by the Wbite House April 27] 

The President received on April 26 the follow- 
ing message from Queen Wilhelmina of the 
Netherlands : 

"Todaj' on the arrival of the first shipment of 
American wheat under the Marshall Plan on board 
the SS Noordam I should like to express to you 
Mr. President personally and to the people of the 
United States my heartfelt gratitude for their 
generosity in contributing so magnanimously to 
the recovery of my country and the whole of 
Europe. I wish to assure you that the Nether- 
lands will give their fullest support to the execu- 
tion of the European Eeconstruction Program." 

Shipment of Streptomycin Sent to Austria 

[Released to the press April 29] 

The Department of State announced on April 
29 that a special shipment of 10,000 grams of 
streptomycin is being sent to Austria by air under 
the Interim Aid Program. 

The drug was requested under interim aid by 
the Government of Austria due to the fact that 
Austria's streptomycin supply was exhausted. 
The special shipment, costing $20,000 was sched- 
uled to be flown from St. Louis, Mo., on April 20 to 
New York City, then shipped by air to Vienna. 

Streptomycin is used in tlie treatment of spinal 
meningitis and pulmonary tuberculosis. 



Wheat Agreement — Continued from page 609 

the loss of a large part of our foreign trade in 
wheat. It is essential that a constructive alterna- 
tive be provided, if a return to those chaotic con- 
ditions is to be avoided in the future. With the 
European Recovery Program providing the im- 
petus for economic recovery in Europe during the 
emergency period, and with the proposed Agree- 
ment implementing the more permanent multi- 
lateral approach to world trade envisioned by the 
International Trade Organization, by assuring 
supplies of wheat to importing countries at stable 
prices, I am confident that such an alternative is 
now available. 

In view of the foregoing, the Department of 
Agriculture strongly recommends Senate approval 
of the Agreement. 

Sincerely yours, 

N. E. DoDD 
Acting Secretary 

May 9, 1948 



THE RECORD Of THE W££IC 

Income Tax Convention With the 
Netherlands Signed 

[Released to the press April 29] 

A convention between the United States and the 
Netherlands for the avoidance of double taxation 
and the prevention of fiscal evasion with respect 
to taxes on income and certain other taxes was 
signed at Washington on April 29, 1948, by Secre- 
tary Marshall and E. N. van Kleffens, Netherlands 
Ambassador in Washington. 



Statement by Secretary Marshall 

[Released to the press April 29] 

Mr. Ambassador, the signing of this treaty 
represents the culmination of a long period 
of negotiations. 

Double taxation upon the same income is a 
major obstacle to international trade. When 
this treaty enters into force, that obstacle will 
be eliminated to a very large extent as be- 
tween our two countries. The nationals and 
corporations of both countries will benefit. 

It has been a pleasure for me to join with 
you in signing the treaty. 



The provisions of the convention are similar in 
general to those contained in conventions now in 
force between the United States and the United 
Kingdom, Canada, France, and Sweden. 

The convention provides that it shall be ratified 
and that it shall become effective on January 1 
of the year last preceding the year in which the 
instruments of ratification are exchanged. 

Mexican Housing Authority Visits U.S. 

Adolfo Zamora, Managing Director of the 
Banco de Fomento de la Habitacion, S.A., of 
Mexico, D.F., arrived in Washington April 10 for 
a series of conferences with the oflScials of the Hous- 
ing and Home Finance Agency. Mr. Zamora is 
visiting this country as the recipient of a grant-in- 
aid from the Department of State under the pro- 
gram administered by the Division of Interna- 
tional Exchange of Persons for the interchange of 
specialists and jsrofessors with the other American 
republics. His visit is being planned in coopera- 
tion with the Housing and Home Finance Agency. 
After two weeks in Washington he expects to spend 
some time in New York studying further the hous- 
ing program as it is administered in the United 
States. He is particularly interested in the prob- 
lems of finance, administration, and organization 
of the program. 

611 



status of Civil Aviation Documents as of April 1, 1948 



DATES OF SIGNATURES 



Country 



Afghanistan 

Australia 

Belgium 

Bolivia 

Brazil 

Canada 

Chile 

China 

Colombia 

Costa Rica 

Cuba 

Czechoslovakia. . . . 
Dominican Republic . 

Ecuador 

Egypt 

El Salvador 

Ethiopia 

France 

Greece 

Guatemala 

Haiti 

Honduras 

Iceland 

India 

Iran 

Iraq 

Ireland 

Lebanon 

Liberia 

Luxembourg 

Mexico 

Netherlands .... 
New Zealand ... 

Nicaragua 

Norway 

Panama 

Paraguay 

Peru 

Philippines .... 

Poland 

Portugal 

Spain 

Sweden 

Switzerland .... 

Syria 

Turkey 

Union of South Africa 









Transit 


Transport 


Final Act 


Interim 
Agreement 


Convention 


Agreement 

(Two 
Freedoms) 


Agreement 

(Five 
Freedoms) 


IS 


S 


s 


S 


S 


S 


S 


s 


7/4/45 




S 


4/9/45 


4/9/45 


4/9/45 




S 


S 


S 


S 


s 


S 


5/29/45 


5/29/45 






S 


S 


S 


2/10/45 




S 


S 


S 


S 




S 


S 


S 




s 


S 


5/24/45 


10/31/47 






S 


3/10/45 


3/10/45 


3/10/45 


3/10/45 


S 


4/20/45 


4/20/45 


4/20/45 


4/20/45 


s 


4/18/45 


4/18/45 


4/18/45 




s 


S 


S 




S 


s 


S 


S 


S 


S 


s 


S 


S 


s 




s 


5/9/45 


5/9/45 


5/9/45 


5/9/45 


s 


3/22/45 


2/10/47 


3/22/45 


3/22/45 


s 


S 


S 


S 




s 


S 


S 


S 




s 


1/30/45 


1/30/45 


1/30/45 


1/30/45 


s 


S 


S 


S 


S 


s 


s 


S 


S 


S 


s 


s 


S 


4/4/45 


4/4/45 


s 


s 


s 


S 




s 


s 


s 


S 


8/13/46 


s 


s 


s 


s 




s 


s 


s 






s 


s 


s 


s 


2S 


s 


s 


s 


s 


S 


s 


7/9/45 


7/9/45 


7/9/45 




s 


S 


s 


S 


s 


s 


S 


S 


S 


3S 


s 


S 


S 


S 




s 


S 


S 


S 


s 


s 


1/30/45 


1/30/45 


1/30/45 




s 


5/14/45 








s 


7/27/45 


7/27/45 


7/27/45 


7/27/45 


s 


S 


S 


S 


S 


s 


S 


S 


S 




s 


S 


s 


S 




s 


S 


s 






s 


S 


s 


S 




s 


S 


s 


S 


S 


s 


S 


7/6/45 


7/6/45 




s 


S 


s 


7/6/45 


< 7/6/45 


s 


S 


S 


S 


»S 


s 


6/4/45 


6/4/45 


6/4/45 





' S indicates signature under date of Dec. 7, 1944. 

2 Reservation accompanying signature of Lebanon: "Ad 
referendum concerning the fifth freedom enumerated in 
Art. I Section 1." 

' Reservation accompanying signature of the Netherlands- 
"In accordance with the provisions of Art. IV Section 1 of 
thi.s agreement the Netherlands Delegation hereby accept 
only the first four privileges in Art. I Section 1". (Reser- 
vation relinquished by the Netherlands Sept. 21, 1945.) 

* Reservation accompanying signature of Syria: "In 

612 



accordance with Art. IV Section 1 of this agreement, 
Syria accepts only the first four privileges in Art. I Sec- 
tion 1." 

' Reservation accompanying signature of Turkey: "In 
accordance with the provisions of Art. IV Section 1 of this 
agreement the Turkish delegation hereby accept only the 
first four privileges in Art. I sect. 1 and leave the ac- 
ceptance of the fifth privilege to the discretion of their 
government." 

Department of State Bulletin 



DATES OF SIGNATURES— Continued 



Country 



Interim 
Agreement 



Convention 



Transit 
Agreement 

(Two 
Freedoms) 



Transport 
Agreement 

(Five 
Freedoms) 



United Kingdom 
United States . 
Uruguay . . . 
Venezuela . . . 
Yugoslavia . . 
Danish Minister 
Thai Minister . 



S 
S 

s 
s 
s 
s 
s 



s 
s 
s 

'S 



«s 
s 
s 

7S 



s 
s 

s 
s 



• Reservation accompanying signature of the United 
Kingdom: "I declare that, failing later notification of 
inclusion, my signature to this Agreement does not cover 
Newfoundland". (Reservation withdrawn by United 
Kingdom Feb. 7, 1945.) 

' Reservation accompanying signature of Venezuela: 



"La Delegaci6n de Venezuela firma ad referendum y deja 
constancia de que la aprobaci6n de este documento por su 
Gobierno estd sujeta a las disposiciones constitucionales de 
los Estados Unidos de Venezuela." (Interim, transit, and 
transport agreements accepted by Venezuela Mar. 28, 
1946.) 



SUBSEQUENT ACTION TAKEN 



Country 



Interim 
Agreement 

(Date of 
Acceptance) 



Convention i 

(Date of 

Deposit of 

Ratification 

or Adherence) 



Transit Agree 
ment (Date 
of Receipt of 

Note of 
Acceptance) 



Transport 

Agreement 

(Date of 

Receipt of 

Note of 

Acceptance) 



Afghanistan . . . . 

Argentina 

Australia 

Belgium 

Bolivia 

Brazil 

Canada 

Chile 

China 

Colombia 

Costa Rica 

Cuba 

Czechoslovakia . . . 

Denmark 

Dominican Republic 

Ecuador 

Egypt 

El Salvador . . . . 

Ethiopia 

France 

Greece 



5/16/45 
6/ 4/46 
5/19/45 
4/17/45 
5/17/46 
5/29/45 
12/30/44 
6/ 4/45 
6/ 6/45 
6/ 6/45 



4/ 4/47 
A 6/ 4/46 
3/ 1/47 
5/ 5/47 
4/ 4/47 
7/ 8/46 
2/13/46 
3/11/47 
2/20/46 
10/31/47 



5/17/45 
6/ 4/46 
8/28/45 
7/19/45 
4/ 4/47 

2/10/45 



6/20/47 

4/18/45 

11/13/45 

1/25/46 



<3/ 1/47 
2/28/47 
1/25/46 



6/20/47 
4/18/45 



4/26/45 
5/31/45 
3/22/45 
6/ 5/45 
9/21/45 



3/13/47 
6/11/47 
3/ 1/47 
3/25/47 
3/13/47 



3/13/47 
6/ 1/45 
3/22/45 

9/21/45 



2 5/17/45 
4/ 4/47 

3 6/ 6/45 

6 1/25/46 



6/ 1/45 
3/22/45 

« 2/28/46 



' The convention entered into force Apr. 4, 1947. 

* indicates adherence. 

' Afi/hanistan denounced the International Air Trans- 
port Agreement Mar. 18, 1948 ; effective Mar. IS, 1049. 

"Reservation accompanying acceptance of China: "The 
acceptances are given with the understanding that the 
provisions of Article IV Section 3 of the International 
Air Tran.sport Agreement shall become operative in so far 
as the Government of China is concerned at such time as 
the Convention on International Civil Aviation . . . shall 
be ratified by the Government of China." (Chinese instru- 
ment of ratification of the Convention on International 
Civil Aviation deposited Feb. 20, 1946. China denounced 
the International Air Transport Agreement Dec. 11, 1946 ; 
effective Dec. 11, 1947.) 

*The Ambassador of Czechoslovakia made the following 
statement in the note transmitting the Czechoslovak in- 
strument of ratification : "The Czechoslovak Ambassador 

May 9, 1948 



wishes to bring to the attention of His Excellency that the 
Convention on International Civil Aviation was ratified 
by the President of the Czechoslovak Republic on the 
assumption that the International Civil Aviation Organi- 
zation will carry out fully the resolution passed by the 
United Nations Organization on December 12, 1946 con- 
cerning the exclusion of the Franco Spain from coopera- 
tion with the United Nations". 

"The Dominican Republic denounced the International 
Air Transport Agreement Oct. 14, 1946 ; effective Oct. 
14, 1947. 

° Reservation accompanying acceptance of Oreece: "In 
accepting this Agreement [transport] in accordance with 
Article VIII, paragraph two thereof, I am directed to make 
a reservation with respect to the rights and obligations 
contained in Article I. Section 1, paragraph (5) of the 
Agreement, which, under Article IV, Section 1, Greece 
does not wish, for the time being to grant or receive." 

613 



SUBSEQUENT ACTION TAKEN— Continued 



Country 



Interim 
Agreement 

(Date of 
Acceptance) 



Convention ' 

(Date of 

Deposit of 

Ratification 

or Adherence) 



Transit Agree- 
ment (Date 

of Receipt of 

Note of 
Acceptance) 



Transport 
Agreement 
(Date of 
Receipt of 
Note of 
Acceptance) 



Guatemala 

Haiti 

Honduras 

Iceland 

India 

Iran 

Iraq 

Ireland 

Italy 

Lebanon 

Liberia 

Luxembourg 

Mexico 

Netherlands 

New Zealand 

Nicaragua 

Norway 

Pakistan 

Panama 

Paraguay 

Peru 

Philippines 

Poland 

Portugal 

Siam 

Spain 

Sweden 

Switzerland 

Syria 

Transjordan 

Turkey 

Union of South Africa . 
United Kingdom . . . 
United States . . . . 

Uruguay 

Venezuela 

Yugoslavia 



4/28/47 

6/ 2/45 

11/13/45 

6/ 4/45 

'5/ 1/45 

12/30/46 

6/ 4/45 

4/27/45 



4/28/47 
3/25/48 

3/21/47 
3/ 1/47 



4/28/47 

'l 1/13/45 

3/21/47 

' 5/ 2/45 



11/13/45 



6/ 4/45 
3/17/45 
7/ 9/45 
5/22/45 
1/11/45 
"4/18/45 
12/28/45 
1/30/45 



6/ 2/47 

10/31/46 

8 10/31/47 



6/15/45 



2/11/47 



3/19/45 



6/25/46 
3/26/47 
3/ 7/47 

12/28/45 
5/ 5/47 

11/ 6/47 



6/25/46 
1/12/45 

i» 4/19/45 

12/28/45 

1/30/45 

12 8/15/47 



7/27/45 
5/ 4/45 
3/22/46 
4/ 6/45 
5/29/45 
3/ 6/47 
7/30/45 
7/ 9/45 
7/ 6/45 
7/ 6/45 
3/18/47 
6/ 6/45 
11/30/45 
'« 5/31/45 
2/ 8/45 



1/21/46 
4/ 8/46 
3/ 1/47 
4/ 6/45 
2/27/47 
4/ 4/47 
3/ 5/47 
11/ 7/46 
"2/ 6/47 



7/27/45 

is 3/22/46 
4/ 6/45 



3/ 6/47 

7/30/45 

11/19/45 

7/ 6/45 



A 3/18/47 

12/20/45 

3/ 1/47 

3/ 1/47 

8/ 9/46 



3/18/47 

6/ 6/45 

11/30/45 

" 5/31/45 

"2/ 8/45 



3/28/46 



A 4/ 1/47 



3/28/46 



3/19/45 

» 1/12/45 
" 12/28/45 

7/27/45 

3/ 6/47 
11/19/45 

"5 6/ 6/45 

"2/ 8/45 
3/28/46 



A indicates adherence. 

'Reservation accompanying acceptance of India: "In 
signifying their acceptance of these agreements [interim 
and transit], the Government of India ... do not regard 
Denmark or Thailand as being parties thereto . . . ". 
(Reservation respecting Denmark on interim agreement 
withdrawn by India July 18, 1046. Reservation respecting 
Siam on transit agreement withdrawn by India June 6, 
1947.) 

' The participation of Italy effected in accordance with 
the provisions of Article 93 of the convention and resolu- 
tion of May 16, 1947, by Assembly of Icao. Effective Nov. 
30, 1947. 

° Reservation accompanying acceptance of the Nether- 
lands: "... the signatures . . . affixed to the ... In- 
ternational Air Transport Agreement (with reservation 
set forth in Article IV Section 1) constitute an acceptance 
... by the Netherlands Government and an obligation 
binding upon it." (Reservation relinquished by the Neth- 
erlands Sept. 21, 1945.) 

" Reservation accompanying acceptance of Neiu Zea- 
land: "... the New Zealand Government does not re- 
gard Denmark or Thailand as being parties to the Agree- 
ments mentioned [interim and transit] . . . ". (Reser- 
vation respecting Denmark on interim agreement with- 
drawn by New Zealand Apr. 29, 194().) 



" Nicaraoua denounced the International Air Transport 
Agreement Oct. 7, 1946 ; effective Oct. 7, 1947. 

" The Ambassador of Pakistan informed the Secretary 
of State by note no. P 96/48/1 of March 24, 1948 "... 
that by virtue of the provisions in Clause 4 of the Schedule 
of the Indian Independence (International Arrangements) 
Order, 19-17, the International Air Services Transit Agree- 
ment signed by United India continues to be binding after 
the partition on the Dominion of Pakistan." The ac- 
ceptance by India on May 2, 1945, of the transit agree- 
ment applied also to the territory, then a part of India, 
which later, on Aug. 15, 1947, became Pakistan. 

" Reservation accompanying acceptance of the Philip- 
pines: "The above acceptance is based on the under- 
standing . . . that the provisions of Article II, Section 2 
of the International Air Services Transit Agreement 
shall become operative as to the Commonwealth of the 
Philippines at such time as the Convention on Inter- 
national Civil Aviation shall be ratified in accordance 
with the Constitution and laws of the Philippines." (Phil- 
ilipine instrument of ratification of the Convention on 
International Civil Aviation deposited Mar. 1, 1947.) 

"The Minister of Siolt::erland made the following 

statement in the note transmitting the Swiss instrument 

of ratification : "My government has instructed me to 

notify you that the authorities in Switzerland have agreed 

(Continued on next page) 



614 



Department of State Bulletin 



THE DEPARTMENT 



Reorganization of the Public Affairs Area 



(a) The Department annoimced on April 22 the 
followintj organization changes in the area under 
the jurisdiction of the Assistant Secretary — Pub- 
lic Affairs, effective as of April 22, 1948 : 

(1) The Office of Information and Educational 
Exchange (OIE) is abolished. 

(2) The Office of International Information, 
the Office of Educational Exchange, and an 
Executive Staff are established. 

(3) The organization units and special assist- 
ants previously reporting to the Assistant Secre- 
tary — Public Affairs or the Office of Information 
and Educational Exchange will be under the fol- 
lowing jurisdiction : 

Office of Infer'-nafional Information: Program 
Coordinator (now acting as Chief of Staff for the 
International Policy Programming Staff (IPPS) ; 
Special Assistant for Freedom of Information; 
Special Assistant for Interdepartmental Informa- 
tion Coordination; Special Assistant for Interde- 
partmental information Planning; Special As- 
sistant for Utilization of Private Information 
Media; Division of International Broadcasting; 
Division of International Motion Pictures; Divi- 
sion of International Press and Publications. 

Office of Educational Exchange: Secretariat of 
the Interdepartmental Committee on Scientific 
and Cultural Cooperation; Division of Libraries 
and Institutes; Division of Exchange of Persons 
(including the Special Assistant for the Fulbright 
Program ) . 

Executive Staff: Area Divisions (EPD) ; all 
special assistants and staff of the immediate office 
of the Assistant Secretary — Public Affairs except 
as noted below. 



(Continued from preceding page) 

with tlie authorities in the Principality of Liechtenstein 
that this Convention will be applicable to the territory of 
the Principality as well as to that of the Swiss Con- 
federation, as long as the Treaty of March 29, 1923 inte- 
grating the wliole territory of Liechtenstein with the 
Swiss customs territory will remain in force." 

^ Reservation accompanying acceptance of Turkey: 
"... the reservation made by the Turkish Delegation 
on the fifth freedom of the air contained in the Inter- 
national Air Transport Agreement is explained in the 
following article of the law by which the aforementioned 
instruments liave been ratified : 'The Turkish Government, 
when concluding bilateral agreements, shall have the 
authority to accept and apply for temporary periods the 
provision regarding the fifth freedom of the air contained 
in the International Air Transport Agreement.' " 

" Reservation accompanying acceptance of the United 
Kingdom: "In signifying their acceptance of the said 

May 9, 1948 



(4) No change will be made in the organization 
of the Office of Public Affairs (PA) and the 
UNESCO Relations Staff. 

(b) The following Officers are hereby desig- 
nated to assume responsibility in the key positions 
listed below in an acting capacity, other existing 
apiDointments remaining unchanged until further 
notice : 

(1) Director, Office of International Informa- 
tion (Oil)— William T. Stone; Executive Of- 
ficer — Parker May. 

(2) Director, Office of Educational Exchange 
(OEX)— Kenneth Holland; Executive Officer— 
(to be announced later; pending such announce- 
ment, all OEX Executive Officer functions will be 
carried out by the Oil Executive Officer). 

(3) Director, Executive Staff — Leland Bar- 
rows. 

Assistant Secretary — Public Affairs 

(a) Purpose. To advise and assist the Secre- 
tary in the development and implementation of 
United States foreign policy with respect to pro- 
grams for international information and educa- 
tional exchange and to domestic programs de- 
signed to inform the American public concerning 
foreign relations. 

(b) Major functions. The Assistant Secretary, 
in coordinating and supervising the activities of 
the offices under his supervision, performs the fol- 
lowing functions : 

(1) Plans and develops the information and 
educational exchange policies of the Department. 

(2) Directs the relations of the Department of 

Agreement [interim and transit], the Government 
of the United Kingdom . . . neither regard the Gov- 
ernments of Denmark and Siara as being parties 
thereto . . . ". (Reservation respecting Denmark on 
interim agreement withdrawn by United Kingdom Mar. 
30, 1946.) 

" Reservation accompanying acceptance of the United 
States: "These acceptances 1)y the Government of 
the United States of America are given with the 
imderstanding that the provisions of Article II, Section 2, 
of the International Air Services Transit Agreement and 
the provisions of Article IV, Section 8, of the International 
Air Transport Agreement shall become operative as to 
the United States of America at such time as the Con- 
vention on International Civil Aviation . . . shall be rati- 
fied by the United States of America". (The United States 
of America denounced the International Air Transport 
Agreement July 25, 1946 ; effective July 25, 1947. United 
States instrument of ratification of the Convention on 
International Civil Aviation deposited Aug. 9, 1946.) 

615 



THE DBPARTMENT 

State with other Federal agencies on all matters 
of international information and educational ex- 
change policies. 

(3) Stimulates and facilitates the activities of 
public and private information and educational 
exchange agencies in the foreign field and services 
domestic private and public agencies as they deal 
with foreign relations. 

(4) Insures that the programs and policies 
recommended by the United States Advisory Com- 
missions on Information and Educational Ex- 
change are considered in the development and 
execution of the international information and 
educational exchange program; insures that the 
Secretary of State's responsibilities are discharged 
with respect to the National Commission for 
UNESCO, the Board of Foreign Scholarships, 
and other advisory boards and commissions. 

(c) Organization. The Assistant Secretary, 
assisted by a deputy, directs the work of the 
UNESCO Relations Staff, the Office of Public 
Affairs, the Office of International Information, 
the Office of Educational Exchange, and an Execu- 
tive Staff. 

(1) The Deputy Assistant Secretary is author- 
ized to take all necessary action relating to inter- 
national programs for information and educa- 
tional exchange and to domestic programs de- 
signed to inform the American people concerning 
foreign relations. 

{a) Such delegation of authority does not ex- 
tend to any duties or functions which, under 
existing law, can only be exercised by the Secre- 
tary of State or by an Assistant Secretary of 
State in his behalf. In the absence of the Assist- 
ant Secietary— Public Affairs, such duties are 
performed by the Assistant Secretary— Political 
Affairs, or, in his absence, the Assistant Secre- 
tary — Economic Affairs. 

(5) Such delegation of authority is exercised 
under the general direction and control of the 
Assistant Secretary— Public Affairs, or during 
his absence, the Secretary of State. 

(c) Such delegation of authority does not 
affect any delegation of authority to any sub- 
ordinate officials below the rank of Assistant Sec- 
retary of State. 

(d) Relationshi'ps with other agencies. The 
Assistant Secretary serves as — 

(1) Chairman of the Interdepartmental Com- 
mittee on Scientific and Cultural Cooperation. 

(2) A member of the Board of Directors of the 
Institute of Inter-American Affairs. 

Office of International Information 

(a) Purpose. To support United States for- 
eign policy by giving foreign peoples a true pic- 

616 



ture of the aims, policies, and institutions of the 
United States and by promoting mutual under- 
standing between the people of the United States 
and other peoples as an essential foundation for 
durable peace ; and to assist private activities con- 
tributing to this objective. 

(b) Major functions. The Office, in coordinat- 
ing and supervising the activities of the organi- 
zational units under its jurisdiction, performs the 
following functions : 

(1) Plans and develops for final appi'oval by 
the Assistant Secretary — Public Affairs, the inter- 
national information policies of the Department. 

(2) Develops, coordinates policy for, and 
supervises the execution of, United States program 
in the field of international information. 

(3) Disseminates abroad information about the 
United States through all appropriate media. 

(4) Promotes freedom of information. 

(5) Encourages and assists private agencies in 
their international information activities; insures 
the use of private facilities wherever practicable 
in carrying out the Department's international 
information program. 

(6) Assists the Assistant Secretary — Public 
Affairs to discharge his responsibilities in con- 
nection with the United States Advisory Commis- 
sion on Information and, on his behalf, insures 
Departmental leadership of all interdepartmental 
international information committees. 

(c) Organization. The Office consists of the 
Office of the Director, which includes the Execu- 
tive Office, the Secretariat of the United States 
Advisory Commission on Information, a Program 
Coordinator who assists the Director and the divi- 
sion chiefs in developing advance plans, a Special 
Assistant on Freedom of Infoi'ination, a Special 
Assistant on Interdepartmental Information Plan- 
ning, a Special Assistant for Interdepartmental 
Information Coordination, and a Special Assist- 
ant for Utilization of Private Information Media. 

(1) Division of International Press and Publi- 
cations. 

(2) Division of International Broadcasting. 

(3) Division of International Motion Pictures. 

Office of Educational Exchange 

(a) Purpose. To promote the foreign relations 
of the United States in the field of educational, 
scientific, and cultural affairs by cooperating with 
other nations in the interchange of knowledge and 
skills, the rendering of technical sei-vices and the 
dissemination and the interchange of develop- 
ments in education, the arts, and sciences. 

(b) Major functions. The Office, in coordinat- 
ing and supervising the activities of the organiza- 
tional units under its jurisdiction, performs the 
following functions : 

Department of State Bulletin 



(1) Plans and develops for final approval by 
the Assistant Secretary — Public Affairs, the inter- 
national educational exchange policies of the 
Depai-tnient. 

(2) Develops, coordinates policies for, and 
supervises the execution of. United States pro- 
grams in the field of international educational ex- 
change undertaken by the Department of State 
and other Federal agencies, including programs 
for the interchange of persons, for the exchange 
and dissemination of educational, scientific, and 
cultural materials, for operation of American 
libraries abroad, for assistance to American spon- 
sored institutions abroad, and for the assignment 
of United States Government specialists for serv- 
ice with the governments of other countries. 

(3) Stimulates and facilitates the international 
educational exchange activities of private agencies 
and unofficial organizations in the United States 
and abroad; insures the use of private facilities 
wherever practicable in carrying out the interna- 
tional educational exchange program for which the 
Department of State is responsible. 

(4) Assists the Assistant Secretary — Public 
Affairs to discharge his responsibilities in connec- 
tion with the United States Advisory Commission 
on Educational Exchange, the Board of Foreign 
Scholarships and the Interdepartmental Commit- 
tee for Scientific and Cultural Cooperation, in- 
suring on behalf of the Assistant Secretary, 
Departmental leadership of all interdepartmental 
activities concerned with international educational 
exchange ; serves as Deputy Chairman of the Inter- 
departmental Committee on Scientific and Cul- 
tural Cooperation. 

(c) Organization. Tlie Office consists of the 
office of the Director which includes the executive 
office and the Secretariat of the United States Ad- 
visory Commission for Educational Exchange, and 
the Secretariat of the Interdepartmental Commit- 
tee on Scientific and Cultural Cooperation. 

(1) Division of International Exchange of 
Persons. 

(2) Division of Libraries and Institutes. 

Executive Staff 

(a) Purpose. To assist the Assistant Secre- 
tary — Public Affairs and the Deputy Assistant 
Secretary in coordinating the programs and ad- 
ministration of the Offices of International Infor- 
mation, Educational Exchange, and Public Affairs 
in order to insure that the information and educa- 
tional exchange activities in the United States and 
abroad are treated as a total progi-am and that 
necessary geographic considerations are applied to 
the operations of the Office of International Infor- 
mation and the Office of Educational Exchange; 
in concert with and in behalf of the central man- 



THB DEPARTMENT 

agement units of the Department, to insure that 
over-all management policies and methods of the 
Department are applied in the Offices under the 
Assistant Secretary's jurisdiction. 

(b) Major functions. 

(1) Prescribes and insures the effective execu- 
tion of a system of field and departmental report- 
ing and a system of program evaluation; main- 
tains Congressional liaison, under the auspices of 
the Office of the Counselor, and pi'epares any nec- 
essary reports for the Secretary, the Congress, and 
the general public. 

(2) Prescribes and insures the application of a 
system of administrative reports for the Offices un- 
der the jurisdiction of the Assistant Secretary; 
maintains liaison, on behalf of the Assistant Secre- 
tary and the Deputy, with the Office of Foreign 
Service and the several offices of the Assistant 
Secretary — Administration; directs the internal 
administration and procedures of the immediate 
Office of the Assistant Secretary and Deputy As- 
sistant Secretary — Public Affairs ; coordinates and 
reviews for the Assistant Secretary the pi-epara- 
tion of the annual budgets for the Offices under the 
jurisdiction of the Assistant Secretary. 

(3) Maintains liaison with the geographic of- 
fices of the Department and provides regional 
guidance to the Office of International Informa- 
tion and the Office of Educational Exchange; in 
collaboration with the appropriate administrative 
divisions of the Department, and with the con- 
currence of the two previously named offices, has 
responsibility for, (a) initiating and jDrocessing 
requests concerning foreign service personnel ac- 
tions and administrative services for the program 
overseas, (b) preparation of the budget for for- 
eign activities. 

(c) Organisation. The Director of the Execu- 
tive Staff is responsible to the Assistant Secretary 
and the Deputy Assistant Secretary — Public Af- 
fairs. The Director's Staff includes officers re- 
sponsible for activities in the following fields: 
Reports and Evaluation; Administrative Coordi- 
nation and Liaison ; Regional Program Guidance. 

Edward W. Beattie, Jr., Will Head News Opera- 
tions of International Broadcasting Division 

George V. Allen, Assistant Secretary of State for 
Public Affairs, announced on April 29 the appoint- 
ment of Edward W. Beattie, Jr., as head of the 
news operations of the State Department's Inter- 
national Broadcasting Division. 

Mr. Beattie, a veteran of 15 years of service with 
the United Press, will assume his new duties im- 
mediately with headquarters in New York City 
(224 West 57th Street). He will direct all news 
operations for the broadcasts of the Voice of the 
United States of America. 



May 9, 1948 



617 



John H. Hilldring Appointed as Special 
Assistant for Palestine Affairs 

[Released to the press April 28] 

John H. Hilldring, former Assistant Secretary 
of State for occupied areas, on April 28 accepted 
appointment as Special Assistant to the Secretary 
of State for Palestine Affairs. 

General Hilldring served as Assistant Secretary 
of State for occupied areas from April 17, 1946, 
until his resignation on August 31, 1947. He was 
appointed an adviser to the United States Delega- 
tion to the Second Session of the General Assembly 
of the United Nations on September 10, 1947, and 
four days later was appointed an alternate repre- 
sentative on the Delegation, in which capacity he 
was a principal spokesman for this Government on 
mattei's pertaining to the Palestine question. His 
services terminated on December 2, 1947. 



THE FOREIGN SERVICE 



Teaching of Arabic in Foreign Service Institute 

[Released to the press May 1] 

The Foreign Service Institute, which for the 
past year has gone all out to provide overseas per- 
sonnel with instruction in some three dozen lan- 
guages so as to make them more useful in repre- 
senting American political and economic interest 
abroad, has launched a course in a real "toughie" — 
Arabic. 

Five officers of the Foreign Service, selected 
from among those desiring to specialize in Near 
Eastern affairs, are working eight hours a day 
with native speakers of Arabic, seeking to imitate 
and master the un-English sounds which some day 
they will use in communicating with the peoples 
of Syria, Lebanon, Iraq, Saudi Arabia, Egypt, 
and other Arabic-speaking areas. In the course, 
which will last six months, the officers concentrate 
on the spoken language, with the objective of 
speaking Arabic as the Arab speaks it. By Sep- 
tember it is expected that they will be well along 
in conversational Arabic, and they should be able 
to carry on talks in the language and make sense 
of what they hear in the streets of Damascus, 
Jidda, Baghdad, or Cairo. 

In this new course, the textbook is tossed out 
the window. Dr. Charles Ferguson, 26-year-old 
Philadelphian who supervises the instruction, is 
applying the new techniques and insights devel- 
oped by modern linguistic science and uses his own 
scientific transcriptions. His students won't see 
an alphabet until the course is three fourths com- 
pleted. Nor will there be much in the way of 
writing, since his theory is that "language is the 

618 



noise you make with your face and not the 
scratches you make with your fist". 

Arabic has long been one of the most trouble- 
some language problems of the Foreign Service. 
Last year Dr. Ferguson, an experienced instruc- 
tor in Arabic, Japanese, and Bengali with the 
U.S. Army Specialized Training Program and 
the Office of Strategic Services, was sent to the 
Near East to gather material from the daily 
speech of the Arabs for a proposed new course at 
the Foreign Service Institute. He returned to 
Washington a few months ago and started putting 
his findings into practical use. 

Of the five officers now studying the course, 
three, by the oddest coincidence, are 1942 B.A. 
graduates of the University of California. They 
are Rodger P. Davies and David L. Gamon, both 
of whom still make their home in Berkeley, and 
Milton C. Walstrom of Honolulu, formerly vice 
consuls at Jidda, Asuncion, and Kingston (Ja- 
maica) , respectively. The other two are A. David 
Fritzlan of Wilmore, Ky., formerly vice consul at 
Tangier, and Dayton S. Mak of Waterloo, Iowa, 
formerly vice consul at Hamburg. Harlan B. 
Clark of Brookfield, Ohio, who received a head 
start under Dr. Ferguson's tutelage at Beirut last 
year, will join the Washington group of pioneer 
Arabic students sometime in May. Mr. Clark is 
presently assigned to the Legation at Beirut as 
consul. 

Ordinarily, an officer who needs special linguis- 
tic training is "farmed out" to universities and 
colleges in the United States. Since no institu- 
tion offering an adequate course in Arabic could 
be found, it was necessary to provide for such 
training at the Institute. The course in Arabic is 
the only one of the Institute's full-time intensive 
studies which lasts six months, although some 
others take up to four months. There are several 
semi-intensive part-time language courses con- 
sisting of two to four hours daily instruction and 
running from two to four months, and there are 
many classes of one or two hours a day which are 
supervised by instructors and which operate for 
varying periods ranging from one week to six 
weeks. Generally, there are about 100 Foreign 
Service employees, many of them new appointees, 
participating in these courses. 

The teaching of Arabic is greatly complicated 
by the fact that written and spoken Arabic are 
poles apart. From country to country, and even 
from locality to locality, spoken Arabic varies 
greatly. On the other hand, written Arabic 
is traditionally the classic Arabic of the early 
Middle Ages. 

The classical written language has a prestige in 
Arab lands completely unlike the prestige which 
any written language of our own past has with 
English-speaking peoples. For example, when an 
Arab ruler addresses any kind of governmental 

Department of State Bulletin 



assembly, he reads an eloquent, speech composed 
by a classical scholar. "Wlicn the extemporaneous 
remarks of assembly members are put in the rec- 
ord, they are phrased in classical Arabic to match 
the ruler's address. 

Radio programs in Arab countries are also writ- 
ten in classical Arabic. Hence, only the educated 
can understand them. Script writers find that 
if they try to reach a wider audience by using a 
modern vernacular they run into difficulties since 
the program, while far more intelligible locally, 
lacks prestige and commands little confidence or 
respect. 

Confronted by such a complex situation, the In- 
stitute has had to take the bull by the horns and 
make a start on some one dialect of spoken Arabic. 
The one chosen is that of the Beirut-Damascus- 
Jerusalem area. Wliile this dialect has its limi- 
tations, it is intelligible to most Eastern Arabs. 
The plan of approach is to teach students how to 
move from their knowledge of this dialect into 
other related dialects, such as those of Iraq, Saudi 
Arabia, and Egypt, and that of the Bedouin tribes- 
men of the desert. 

In midsummer, instruction will be launched in 
the written language through the medium of news- 
papers and other popular publications. From 
this, students will move to a consideration of 
classical books and documents. The transition is 
helped by the fact that modern newspaper Arabic 
is intermediate between spoken Arabic and the 
written classical language. 

From the study of the language, acquired in 
direct daily contact with native Arabic speakers, 
it is easy to move on into consideration of the 
psychology of the Arabs and their social patterns. 
The Institute's course will contain as much ma- 
terial of this kind as time limitations permit. 

Consular Offices 

An American Consulate at Haifa, Palestine, was offi- 
cially opened to the public April 1, 1948. 

The office at Palermo, Italy, will be raised to the rank 
of Consulate General, effective April 8, 1948. 

An American Consulate was established at Elizabeth- 
ville, Belgian Congo, on March 30, 1948. 

An American Consulate was established at Nicosia, 
Cyprus, on April 13, 1948. 

Confirmation 

On April 26, 1948, the Senate confirmed the nomination 
of W. Averell Harriman to be the United States special 
representative in Europe, with the rank of Ambassador 
Extraordinary and Plenipotentiary. 



THE CONGRESS 

Authorizing the Committee on Foreign Affairs to have 
Printed Additional Copies of a Special Subcommittee Re- 
port and Appendix on the United States Information Serv- 
ice in Europe. H. Rept. 1544, 80th Cong., 2d sess., to 
accompany H. Con. Bes. 144. 



PUBLICATIONS 



Department of State 



May 9, J 948 



For sale J)y the Superintendent of Documents, Ooverti- 
ment Printing Office, Washington 25, D.G. 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. 

Health and Sanitation: Cooperative Program in Vene- 
zuela. Treaties and Other International Acts Series 1661. 
Pub. 2988. 13 pp. 5«*. 

Agreement Between the United States of America 
and Venezuela Extending Agreement of February 18, 
1943, as amended, until June 30, 1948— Effected by 
Exchange of Notes Signed at Caracas June 30, 1947 ; 
entered into force June 30, 1947, effective January 
1, 1947. 

Settlement of Certain War Accounts and Claims. Treaties 
and Other International Acts Series 1675. Pub. 3027. 
5 pp. 5((. 

Agreement and Accompanying Notes Between the 
United States of America and Czechoslovakia — • 
Signed at Praha July 25, 1947 ; entered into force July 
25, 1947. 

Headquarters of the United Nations. Treaties and Other 
International Acts Series 1677. Pub. 3038. 5 pp. 5^. 

Interim Agreement Between the United States of 
America and the United Nations — Signed at Lake 
Success, New York, December 18, 1947 ; entered into 
force December 18, 1947. 

Exchange of Money Orders. Treaties and Other Inter- 
national Acts Series 1682. Pub. 3045. iii, 35 pp. 15^. 

Agreement, and Final Protocol, Between the United 
States of America and Other Governments — Signed 
at Rio de Janeiro September 25, 1946 ; Ratified and 
Approved by the Postmaster General of the United 
States of America February 20, 1947 ; Approved by 
the President of the United States of America Febru- 
ary 27, 1947 ; entered into force January 1, 1947. 

National Commission News, May 1, 1948. Pub. 3120. 10 
pp. 10^ a copy ; $1 a year ; foreign subscription $1.35 a 
year. 

Prepared monthly for the United States National 
Commission for the United Nations Educational, 
Scientific and Cultural Organization. 

World Health Organization — Progress and Flans. Inter- 
national Organization and Conference Series IV, World 
Health Organization 1. Pub. 3126. 23 pp. 150. 

A study of the World Health Organization, at the 
time of its becoming a specialized agency of the United 
Nations ; an article on its progress and future plans, 
its constitution ; an intergovernmental arrangement on 
the establishment of an interim commission ; and a 
selected bibliography. 

Address by the Secretary of State Before the Second 
Plenary Session of the Ninth International Conference of 
American States, Bogota, Colombia, April 1, 1948. Inter- 
national Organization and Conference Series II, American 
Republics 2. Pub. 3139. 14 pp. Free. 

619 



^i>/^.^W^^ 



The United Nations and Fage 

Specialized Agencies 

Second Special Session of the General 
Assembly: 
U.S. Position on French Proposal for 
Jerusalem. Statement by Philip C. 

Jessup 591 

Resolution on Protection of Jerusalem . . 591 
Questions Involved in Concept of Trustee- 
ship for Palestine. Statement by 

Philip C. Jessup 592 

Security Council Resolution on Establish- 
ment of Truce Commission for Pales- 
tine 594 

U.S. Delegation to 2d Special Session . . . 594 
U.S. Delegation Departs for Conference To 
Establish Institute of the Hylean Ama- 
zon 598 

Economic Affairs 

The Ninth Pan American Child Congress. 

Article by Katharine F. Lenroot. . . . 595 
Appointment of U.S. Commissioners on the 

South Pacific Commission 598 

U.S. Delegation to International Telegraph 

Consultative Committee of ITU. . . . 599 
U.S. Delegation to International Tin Study 

Group 599 

The Importance of Imports. By Willard 

L. Thorp 603 

Address on Reciprocal Trade Agreements . . 605 

Treaty Information 

Treaty of Economic, Social and Cultural 
Collaboration and Collective Self-De- 
fence: 
Between Great Britain and Northern Ire- 
land, Belgium, France, Luxembourg, 

and the Netherlands 600 

Communique on First Meeting of the Per- 
manent Consultative Council .... 602 
International Wheat Agreement Transmitted 
to the Senate: 
Message of the President to the Senate . . 606 

Report of the Secretary of State 606 

Summary of Principal Provisions .... 607 



Treaty Information — Continued Page 

International Wheat Agreement Transmitted 
to the Senate — Continued 
Letter From the Acting Secretary of Agri- 
culture to the Secretary of State . . . 609 
General Agreement on Tariffs and Trade 

With Czechoslovakia Proclaimed . . . 610 
Income Tax Convention With the Nether- 
lands Signed 611 

Statement by Secretary Marshall .... 611 
Status of Civil Aviation Documents as of 
April 1, 1948: 

Dates of Signatures 612 

Subsequent Action Taken 613 

Foreign Aid and Reconstruction 

American Wheat Shipped to the Netherlands. 
Message From the Queen of the Nether- 
lands to the President 611 

Shipment of Streptomycin Sent to Austria . 611 
Confirmation 619 



international Information and 
Cultural Affairs 

Mexican Housing Authority Visits U.S. 



The Congress 



The Foreign Service 

Teaching of Arabic 

Institute .... 

Consular Offices . . . 



in Foreign Service 



611 
619 



618 
619 



The Department 

Reorganization of the Public Affairs Area . . 615 
Edward W. Beattie, Jr., Will Head News 
Operations of International Broadcast- 
ing Division 617 

John H. Hilldring Appointed as Special As- 
sistant for Palestine Affairs 618 

Publications 

Department of State 619 



Katharine F. Lenroot, author of the article on the Ninth Pan Ameri- 
can Child Congress, is Chief of the Children's Bureau, Social Security 
Administration, Federal Security Agency. Miss Lenroot served as 
Chairman of the United States Delegation to the Congress. 



U. S. GOVERNMENT PRtNTlNC OFFICEi 1948 



^^ 






tJrie/ z/)ehwHnie7Ll/ aw t/vate/ 



f^.\-' -,';.■ : ' >. f*'^; C;'* 





ECONOMIC COOPERATION ACT OF 1948: 
Statement by the Department and the ECA 
Exchange of Notts 



610 

610 



hTUE.\GHIEISH\G THE U.MTED .NATIUINS • Stat, 
menta by Secretary Marfhall and Ambassador Austin 



For complete contents see back cover 



May 16, 1948 




^»HT O, 



II. 1 SlIPtRirTTENOENT Of OOUiUwJiiSi 




(777 



,J/ie zl^efia/iii^e^ /Oi 



o/^tak bulletin 



Vol. XVIII, No. 463 • Publication 3147 
May 16, 1948 



For sale by the Superintendent of Documents 

U.S. Government Printing Oflicc 

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 Slate BULLETIIW, 
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 IFhite 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 affiiirs and the functions of 
the Department. Information is in- 
cluded concerning treaties and in- 
ternational agreements to tchich the 
United States is or may become a 
party and treaties of general inter- 
national interest. 

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



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



Strengthening the United Nations 



STATEMENT BY GEORGE C. MARSHALL > 
Secretary of State 



Mr. CiiAiEjrAN, Gentlemen : 

I will outline, for the Committee the views of 
the State Department with respect to the structure 
of the United Nations and the relationship of this 
Government to the United Nations. I will try to 
place in perspective the steps which this Govern- 
ment has taken, and the proposals now before the 
Committee, on this subject. 

The interest shown by the great majority of 
Americans in the United Nations and in increasing 
its effectiveness is an impressive fact. A vast 
amount of thought is being devoted throughout 
our country to means of furthering the objectives 
of the Charter in the prevailing world circum- 
stances. The attitude of the United States to- 
wards the problems of the United Nations will 
have a profound effect on the future of the 
organization. 

A clear understanding of the international situ- 
ation is essential to decisions on the course we 
should pursue. Neither the United Nations nor 
any other form of world organization can exist as 
an abstraction without relation to the realities of 
a given world situation. 

The United Nations was conceived on the as- 
sumption that certain conditions would develop 
following the war. These were: (1) that the 
major powers charged with responsibility for 
working out peace settlements would complete 
their task promptly and effectively; (2) that the 
critical postwar conditions in the economic and 
political fields would be brought to an end as 
speedily as possible; and (3) that the cooperation 
among the great powers pledged during the war 
and reflected in the Charter would be continuing. 
The United Nations was specifically designed to 
preserve the peace and not to make the peace. The 
task of making the peace settlements was specifi- 
cally recognized by article 107 of the Charter as 
one for the responsible victor powers. The United 
Nations can assist in this task, but the improve- 



ment of the United Nations machinery would not 
in itself solve the problem. Since the most im- 
portant of the peace settlements have not been 
agreed upon, the United Nations has been com- 
pelled to can-y on its activities under world condi- 
tions far different from those contemplated by the 
Charter. 

It was obvious to the framers of the Charter of 
the United Nations that an effective organization 
to preserve the peace must include every major 
power. The San Francisco conference created an 
organization, the purposes and principles of which 
corresponded with the objectives of the United 
States foreign policy. The organization as de- 
veloped at San Francisco received the over- 
whelming endorsement of the American people 
and had the virtually unanimous approval of the 
United States Senate. 

This organization was designed to consolidate 
and strengthen over a long period of time the 
foundations of peace through common action in 
solving political, economic, social, cultural, and 
health problems. Machinery was established for 
the settlement of international disputes by peace- 
ful means so that the advice and assistance of all 
members, and the mobilization of world public 
opinion, might be brought to bear in the pacific 
settlement of disputes. It was found possible to 
go considerably farther than the League of Na- 
tions in the establishment of enforcement machin- 
ery, but at the San Francisco conference none of 
the major powers was prepared to grant to this 
organization the right of enforcement against a 
major power. 

When universal agreement to the Charter was 
achieved, the strength of the major powers in rela- 
tion to one another was such that no one of them 
could safely break the peace if the others stood 
united in defense of the Charter. Under existing 

•Made before the House Foreign Affairs Committee on 
May 5, 1948, and released to the press on the same date. 



May 16, 1948 



623 



THE UNITED NATIONS AND SPBCIAUZBD AGENCIES 

world circumstances the maintenance of a compa- 
rable power relationship is fundamental to world 
security. 

The aspirations of the people of the world as set 
forth in the Charter of the United Nations have 
been shaken by developments since the summer of 
1945. It gradually became apparent that the post- 
war conditions anticipated at San Francisco were 
not being realized. The failure of concerted 
action by the major Allies rendered it necessary for 
the United States Government to attempt to cre- 
ate the desired postwar conditions in cooperation 
with other states willing to do so. 

It became progressively clearer that serious mis- 
conceptions prevailed in the minds of the leaders 
of the Soviet Union concerning western civiliza- 
tion and the possibilities for developing stabilized 
working relations between the Soviet Union and 
the other members of the community of nations. 
It is a misconception to suppose that domination 
of the world by a single system is inevitable. It is 
a misconception to suppose that differing systems 
cannot live side by side in peace under the basic 
I'ules of international conduct prescribed by the 
Charter of the United Nations. These rules are 
obligatory upon all members. 

A fundamental task of the United Nations and 
of our foreign policy is to dispel the misconcep- 
tions of the Soviet leaders and to bring about a 
more realistic view of what is possible and what 
is impossible in the relationship between the So- 
viet Union and the world at large. In this way 
there can be restored to international society the 
equilibrium necessary to permit the United Na- 
tions to function as contemplated at San Fran- 
cisco. 

Our realization of the need for this equilibrium 
has led to action along several lines, all designed 
to create conditions favorable to the working of 
the United Nations. The first necessary step was 
to insure the freedom and independence of the 
members. The ability of democratic peoples to 
preserve their independence in the face of totali- 
tarian threats depends upon their determination 
to do so. That determination in turn depends 
upon the development of a healthy economic and 
political life and a genuine sense of security. 

Therefore, the United States Government is 
responding to requests to provide economic as- 
sistance to various countries in Europe and else- 
where. The United States is cooperating with 
16 European countries in a recovery program pro- 
viding for self-help and mutual aid. 

The United States Government is now con- 
sidering the steps necessary to bring the national 
military establishment to the minimum level 
necessary to restore the balance of power relation- 
ships required for international security. 

The United States is acutely aware that the re- 
turn of a sense of security to the free nations of 
the world is essential for the promotion of con- 

624 



ditions under which the United Nations can 
function. The necessary steps for self -protection 
against aggression can be taken within the Chai'ter 
of the United Nations. The Charter recognizes 
in article 51 the right of individual and collective 
self-defense against armed attack until the Se- 
curity Council has taken the measures necessary 
to pi-eserve peace and security. Articles 52, 53, 
and 54 provide for regional arrangements dealing 
with the maintenance of international peace and 
security, on condition that such arrangements are 
consistent with the purposes and principles of the 
Charter. 

In recognition of the possibility foreseen in the 
Charter that an armed attack might occur upon a 
member of the United Nations, despite the bind- 
ing obligations accepted by every member to re- 
frain from the threat or use of force against 
another state, the United States and the other 
American republics concluded at Rio de Janeiro 
last year a treaty for individual and collective 
self-defense. Certain countries of western 
Europe likewise have organized themselves into a 
Western Union, for their individual and collective 
self-defense. By such arrangements under article 
51 of the Charter and the articles providing for 
regional arrangements, constructive steps have 
been taken to bulwark international security and 
the maintenance of peace. Our intention to af- 
ford encouragement and support to arrangements 
made by free nations for the preservation of their 
independence and liberty has already been stated 
by the President in his message to the Congress 
on March I7th. 

The United States Government has followed 
an active policy of strengthening the existing 
machinery of the United Nations. 

(1) We have endeavored to assure that the 
United Nations would carry out its responsibilities 
in dealing with the dangerous political issues 
which have arisen in various quarters of the world. 
We have sought to promote its basic work on eco- 
nomic problems, human rights, freedom of in- 
formation, health, and related needs. 

(2) We have made proposals toward restrain- 
ing the use of the veto in the Security Council 
and reducing the scope of the veto through its 
elimination from matters of i^acific settlement and 
tlie admission of new members. 

(3) We proposed the establishment of an In- 
terim Committee of the General Assembly, 
popularly known as the Little Asscmblj', to con- 
sider various possibilities for improving inter- 
national cooperation and to put to work the unde- 
veloped powers of the General Assembly in the 
field of international security. By means of this 
Committee the far-reaching influence of the Gen- 
eral Assembly is being brought more effectively to 
bear in fulfilling the purposes and principles of the 
Charter. 

Department of Slate Bulletin 



The United Nations is tlie forum of daily world 
negotiation. It is the world's vehicle for dealing 
with basic economic and social maladjustments, 
for developing safeguards of essential freedoms, 
for advancing the development of dependent peo- 
ples and areas. 

On several occasions negotiation in the United 
Nations, even during its short history, has post- 
poned righting long enough to remove the cause 
for fighting. It is a forum of negotiation where 
charges or distortions are held answerable, where 
violations of treaty obligations must meet the 
verdict of world opinion, and where those re- 
sponsible must answer for their conduct. It is 
a forum where the nations of the world are called 
upon to uphold the purposes and principles of the 
Charter. United Nations negotiation afl'ords con- 
tinuing working contacts in international rela- 
tions and an open door to communication between 
the East and the West. 

A number of projects designed to improve in- 
ternational conditions by new forms of inter- 
national organization have been proposed. These 
projects envisage radical changes in the existing 
United Nations Charter. Some propose the elimi- 
nation of a veto on enforcement measures, the 
establishment of inequality of voting among the 
major powers, and the virtual elimination of the 
influence of small nations in Security Council de- 
cisions. Others go beyond the revision of the 
United Nations Charter and call for the establish- 
ment of new forms of international structure along 
the lines of world government. In general, the 
proponents of these jarojects recognize the prob- 
ability that the proposals would not be accepted 
by at least one of the major powers and by a num- 
ber of other governments now members of the 
United Nations. Tliey advocate that in this case 
the respective projects be put into effect among 
such nations as would accept them. 

All of these projects appear to rest on the as- 
sumption that the present unsatisfactory state of 
■world affairs is a result of inability on the part 
of the United Nations to prevent aggression ; that 
this inability arises from the exercise of the veto 
power in the Security Council and the lack of a 
United Nations police force ; that if the veto power 
on enforcement decisions could be removed and 
the United Nations provided with armed forces, 
aggi'ession could be prevented ; and that the prin- 
cipal barrier to world peace would thereby cease 
to exist. 

The general assumption rests I think on an in- 
complete analysis of our main problems of foreign 
policy at this juncture and of the part which in- 
ternational organization can play in solving them. 
The underlying problem in the immediate 
future is to bring about the restoration of eco- 
nomic, social, and political health in the world and 
to give to the peoples of the world a sense of se- 
curity which is essential for them to carry on the 

May 76, 7948 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

task of recovery. What is needed for the achieve- 
ment of a world order based on law and dedicated 
to peace and pi'ogress is a widespread improve- 
ment in the material and social well-being of the 
peoples of the world. The responsibility for such 
improvement will always rest primarily upon the 
peoples and governments themselves. In this 
field the United Nations, however, can play an in- 
creasingly active role. 

The factor of military strength is of immediate 
and major importance in the present world situa- 
tion, but is not the element which will be para- 
mount in the long run. The emphasis often placed 
solely on the military aspects of world affairs does 
a disservice to the cause of peace. The more that 
present differences are talked about and treated ex- 
clusively as a military problem, the more they tend 
to become so. 

The problems today presented to those who de- 
sire peace are not questions of structure. Nor are 
they problems solvable merely by new forms of or- 
ganization. They requii'e performance of obliga- 
tions already undertaken, fidelity to pledges al- 
ready given. Basic human frailties cannot be 
overcome by Charter provisions alone, for they 
exist in the behavior of men and governments. 

The suggestion that a revised United Nations, or 
some form of world government, should be 
achieved, if necessary, without those nations which 
would be unwilling to join, deserves special at- 
tention. Such a procedure would probably destroy 
the present United Nations organization. The re- 
sult would be a dispersal of the community of na- 
tions, followed by the formation of rival military 
alliances and isolated groups of states. This result 
would weaken us and expose us to even greater 
dangers from those who seek domination of other 
states. 

It is not changes in the form of international in- 
tercourse which we now require. It is to changes 
of substance that we must look for an improvement 
of the world situation. And it is to those changes 
of substance that our policy has been directed. 
When the substance of the world situation im- 
proves, the United Nations will be able to func- 
tion with full effectiveness. Meanwhile we will 
continue our efforts in cooperation with other gov- 
ernments to improve the working of the United 
Nations under the Charter. 

The United Nations was created after years of 
study and after many months of difficult negotia- 
tions. It now has 58 members. It is the symbol of 
the aspirations of mankind. Its success is the hope 
of mankind. All new efforts to attain order and 
organization in the affairs of men require time to 
grow roots in the loyalties of men. The history of 
our own people testifies to this necessity. Let us 
not in our impatience and our fears sacrifice the 
hard- won gains that we now possess in the United 
Nations organization. 

625 



STATEMENT BY AMBASSADOR WARREN R. AUSTIN > 



U.S. Representative at the Seat of the United Nations 



I am deeply moved by the desire to strengthen 
the United Nations that is demonstrated by the 
Congress in calling these hearings. Earnest and 
continuing support of the United Nations is 
clearly needed in a world which has suffered two 
devastating wars in 25 years, which faces the 
danger (which is filled with fear) of a third, and 
in which over half the people are both hungry 
and illiterate. 

Building peace and security in such a world is 
a tremendous job. Fortunately, the work of secur- 
ing agreement among sovereign nations on the 
plan for an international organization to main- 
tain peace was begun while a majority of them 
were united in fighting a common enemy. 

Structure of the United Nations 

The men who wrote the Charter at Dumbarton 
Oaks and San Francisco realized that an interna- 
tional organization formed to preserve the peace 
must include every major power in its membership, 
with no exceptions. That was true in 1945; it is 
true today. To attain that goal, each member 
had to pay a price. Each had to yield on some of 
its own desires as to the shape of the Organization 
and to accommodate itself to the wishes of others. 

The Charter which resulted clearly defined the 
effort wliich would be required if the peoples of 
the world were to find the peace, the freedom, and 
the decent living which they earnestly sought. 

The first task was the removal of the causes of 
war. 

The Charter was framed to combine the efforts 
of the members of the United Nations in creating 
the conditions of peace through joint action. 

The second task was to substitute for war pacific 
settlement of disputes. 

The third task was to insure collective security 
by peace forces voluntarily agreed upon by mem- 
bers. 

Assuming that the numerous and varied efforts 
of the Congress, of state legislatures, of towns and 
cities, as well as of important civic organizations, 
recognize the need for the United Nations and are 
intended to strengthen it — then there must be a 
reconciliation among them and with the members 
of the United Nations which is based on reality. 
It goes without saying that such a reconciliation 
cannot occur if the purpose is something else. If 
the purpose should be to discredit the United 
Nations as impotent or to dissolve it in order to 
try erecting a new organization with its rubble, 
there cannot be reconciliation. 



- Made before the House Foreign Affairs Committee on 
May 5, 1948, and released to the press on the same date. 

626 



Wliat I have to say is based upon the assumption 
that we all seek to take measures that are practi- 
cable and feasible for preserving and strengthen- 
ing the United Nations. 

In the beginning, we must consider the reality 
of the unanimity rule bearing upon amendment of 
the Charter. Article 108 provides that amend- 
ments cannot come into force without ratification 
by all of the permanent members of the Security 
Cfouncil. I can give you positive evidence that 
such unanimity is not now possible. 

On January 19, 1948, the five permanent mem- 
bers met at my request and considered suggestions 
to amend the Charter with respect to the use of the 
veto on matters of pacific settlement and upon pe- 
titions for membership. You will recognize that 
these suggestions are far less drastic than any of 
the proposals for revision now before you. Only 
one of the five was willing to amend the Charter 
in this regard : that was the United States of 
America. 

It is my firm conviction that, in the present con- 
ditions confronting the world, at least four of the 
permanent members will exert their influence to 
prevent a convention being called under article 
109 for reviewing the present Charter with a view 
of amending it. 

Therefore, what procedure should we adopt ? In 
the first place, we have to know where our trouble is 
and the specific objective we are aiming at. If ex- 
perience for the brief life of the United Nations is 
a guide safe to be followed, then we ought right 
here and now to consider that experience. Wliat 
is it ? 

Let us look at what has been accomplished in 
connection with the first task, namely, removal of 
the causes of war. 

Accomplishments 

The Economic and Social Council now has 12 
commissions of experts at work. These include 
three regional economic commissions which are 
studying the feasibility of concerted regional ac- 
tion for raising levels of economic activity. A 
fourth is starting. Rules have been agreed upon 
for increasing international trade in a changing 
world economy and organizing to make these rules 
effective. Specialized agencies are at work on fi- 
nancial problems, on health problems, on problems 
of human rights and the freedom of information. 

The three postwar years have seen the building 
of more instruments for constructive international 
cooperation than ever before in history. During 
this year, the United Nations network of interna- 
tional organizations is bringing governmental rep- 
resentatives together at more than 2,500 meetings. 

Department of Slate Bulletin 



The Food and Agriculture Organization pro- 
vides a good example of what is actually being 
done. 

Its studies have revealed that with the expected 
increase in population, food production in the next 
25 years must be increased 110 percent if we are to 
avoid mass starvation with all its accompanying 
hazards to peace and stability. 

Consequently, it has established the World Food 
Council to help allocate exportable food surpluses 
and fertilizers, to promote the production and dis- 
tribution of farm machinery, and to focus atten- 
tion on dangerous food situations. 

It has sent agricultural experts on special mis- 
sions to Greece, Poland, and Siam to work out 
plans for increased agricultural production in 
these countries. 

It has held international conferences to increase 
production of rice, cereals, and timber. It has 
helped countries in the Near East to begin deep- 
well irrigation and swamp-drainage projects. 

It is aiding Peru to establish refrigeration and 
storage facilities for its fishing industry. Iran, 
Czechoslovakia, and China have received help on 
specific projects to increase their food supplies. 

It has undertaken other food-producing meas- 
ures such as field demonstration schools in western 
Europe on hybrid corn, artificial insemination, 
and veterinary techniques. 

It has given advice to the International Bank 
on loans for the purchase of agricultural and in- 
dustrial machinery. 

These positive accomplishments are little known. 
Tlie conflicts that have been prevented never make 
the headlines. A single veto in the Security Coun- 
cil gets more publicity than an entire session of the 
Trusteeship Council or the Economic and Social 
Council. And it is easy to forget that there is no 
veto in any of the United Nations agencies which 
are advancing the economic, social, and ethical 
standards of mankind. Collective effort to remove 
the causes of war and create the conditions of 
peace cannot be vetoed. 

We have given only a partial survey of the work 
which one of the 12 specialized agencies of the 
United Nations has under way to remove condi- 
tions that lead to conflict. These agencies are at 
work removing ill health, poverty, ignorance, 
economic conflict, and intolerance, which are 
causes of shooting war. Let us encourage and not 
hinder them. Let us support the United Nations 
instead of destroying it. 

The second task is comprehended in chapter 
VI, '■^Pacific Settlement of Disputes^ This task is 
being performed, hut here help is needed. 

War cannot be abolished without substituting 
something for it. Historically, it has been a means 
of determining political solutions. Yet, its re- 
sults are so tragic that other means must be found 
to arrive at real solutions. The dreadful curse 
of massacre is an impelling force which drives us 

May ?6, J948 



THE UNnED NATIONS AND SPECIALIZED AGENCIES 

forward toward all reasonable measures for 
strengthening the capacity of the United Nations 
to perform its second task. 

Chapter VI, "Pacific Settlement of Disputes," is 
by far the most important part of the Charter. 
Experience in the United Nations with disputes, 
"the continuance of which is likely to endanger 
the maintenance of international peace and secu- 
rity", leads to the judgment that we should stay 
within chapter VI just as long as it is humanly 
possible to do so. 

The frailty in the Security Council to which I 
wish to point is one of procedure. We have en- 
countered a misuse of the veto. It is in chapter VI, 
where we seek to substitute for war the great 
principle of agreement, that the misuse of the veto 
has caused skepticism, criticism, and search for 
improvement. Right here it is necessary to rec- 
oncile with the facts the efforts at strengthening 
the United Nations. 

The Soviet Union has exercised the veto 23 
times — eleven times on membership applications, 
nine times on issues of pacific settlement, and three 
times on the Balkan issue. 

It is not true that the United Nations has failed 
because of this veto. On the contrary, it has suc- 
ceeded in spite of the veto, as I will demonstrate. 
However, it is true that the United Nations could 
expedite its service and accomplish more effective 
solutions of disputes and situations if the veto 
privilege were not permitted to interfere with 
pacific settlement of disputes. 

I wish to persuade you, from the facts. Your 
earnest work toward strengthening the United 
Nations is encouraging because of the influence 
which your views may have upon the adoption of 
improved practices and procedures within the 
Charter. When it becomes feasible to amend the 
Charter in respect of chapter VI, as well as in 
respect of admission of new members, the strong 
position you will have taken in criticism of this 
frailty should prove to be of great assistance to the 
members of the United Nations. That time has 
not arrived, as I will point out. 

Now, first let me show what has actually hap- 
pened in the use of the United Nations to substi- 
tute pacific solutions for war. 

1. The Security Council succeeded in inducing 
the Soviet Union to withdraw its troops from the 
territory of Iran. 

2. The withdrawal of British and French troops 
from Syria and Lebanon was a result of a Security 
Council expression of strong views. 

3. The Security Council has helped to protect 
the political independence and territorial integrity 
of Greece, even though the Soviet Union three 
times vetoed efforts to deal with the situation. 
Twice the vetoes overcame a majority of nine, 
which supported resolutions finding that assistance 
to and support of guerrillas on the northern bor- 

627 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

ders of Greece constituted a threat to the peace 
within the meaning of chapter VII of the Charter. 
The third veto was on a resolution requesting the 
General Assembly to make recommendations in the 
Greek case. The veto failed in its purpose ; it did 
not bar all United Nations service for peace. The 
Security Council merely divested itself of the 
subject, and the General Assembly, five weeks 
later, passed a resolution calling upon Albania, 
Bulgaria, and Yugoslavia to do nothing which 
could furnish assistance to the guerrillas. 

The General Assembly also established the Bal- 
kan Commission with headquarters at Salonika to 
observe the compliance with the recommendations 
and to assist in implementing them. These recom- 
mendations outlined specific methods for settle- 
ment of their disputes by peaceful means. This 
Balkan Commission is now at work on the ground. 
The tremendous moral effect of surveillance by all 
of the rest of the world is now being witnessed. 

The United Nations certainly has upset the time- 
table of the aggression of Communism in Greece. 
The United Nations is helping Greece in her strug- 
gle for freedom. The United States in cooperation 
with the United Nations has helped Greece to pre- 
serve her independence. 

4. Indonesia was another situation, the continu- 
ance of which might have led to a threat to inter- 
national security and peace. War had already be- 
gun between the Dutch and Indonesians, but the 
Security Council was able to obtain a truce. More- 
over, a Good Offices Committee was set up, which 
helped to determine lines of demarcation between 
the forces and to obtain agreement on 18 principles 
to guide the setting up of the United States of In- 
donesia. Progress is now being made on the basis 
of those principles. This was an achievement 
which involved the peace and security of a popula- 
tion equal to half of that of the United States. In 
addition, one of the great consequences of the pa- 
cific settlement of this dispute is to give strength 
to the movement away from the old colonial system 
toward self-government and independence. This 
movement is of critical importance to a vast area 
both in Asia and Africa. We find it involved in- 
directly in the next item — India-Pakistan. 

5. India and Pakistan brought their dispute 
over Kashmir to the Security Council with repre- 
sentations that, if the conditions continued, war 
of communal intensity might break out all over 
the subcontinent. Four hundred million inhabi- 
tants of the newly established free dominions of 
India and Pakistan were on the verge of war. If 
the United Nations had not been available to them, 
the conditions, now bad enough, would certainly 
have been much worse by this time. 

Their case was kept within chapter VI. Pro- 
longed, difficult negotiations were tried without 
agreement between the parties ; whereupon the Se- 
curity Council adopted recommendations for a 

628 



truce and a plebiscite. These recommendations are 
not compulsory but are a guide and help to the 
parties if they acquiesce in them. This matter is 
still pending. But already it has rendered a great 
service in cooling off the parties and in keeping the 
violence from spreading. 

In both of these last two cases the veto privilege 
existed but was not exercised. The Soviet Union 
opposed but did not veto. Instead, it followed the 
procedure of abstaining from voting. In passing, 
let me point out that this procedure has grown out 
of experience and has whatever validity custom 
can give, because it has been employed by all of 
the great powers several times. 

6. In the Korean case, the General Assembly was 
called upon for help when negotiations between 
ourselves and the Soviet Union on establishing a 
government in Korea reached an impasse. Now, 
a General Assembly commission is in operation in 
Korea preparing for a plebiscite. This plebiscite, 
under United Nations observation, will be held in 
the whole of Korea, if possible ; but if not possible, 
it will be held in the southern zone which contains 
at least two thirds of Korea's total population. 

The Soviet Union is not participating in this 
Korean Commission ; but at no time in its history 
did the veto apply because the Commission is a 
subsidiary organ of the General Assembly under 
article 22. 

7. The Palestine case illustrates the basic doc- 
trine that General Assembly recommendations 
depend wholly on voluntary cooperation. It was 
brought by Great Britain, the mandatory power, 
to the General Assembly for recommendation re- 
specting the future government of Palestine. On 
November 29, 1947, the General Assembly adopted 
a resolution recommending the partition of 
Palestine; but it referred the resolution to the 
Security Council for action of the following 
nature : 

"The General Assembly, . . . 

^'■Recommends to the United Kingdom, as the 
mandatory Power for Palestine, and to all other 
Members of the United Nations the adoption and 
implementation, with regard to the future govern- 
ment of Palestine, of the Plan of Partition with 
Economic Union set out below ; 

'''■Requests that 

"(a) The Security Council take the necessary 
measures as provided for in the plan for its imple- 
mentation ; 

"(?>) The Security Council consider, if circum- 
stances during the transitional period require such 
consideration, whether the situation in Palestine 
constitutes a threat to the peace. If it decides that 
such a threat exists, and in order to maintain inter- 
national peace and security, the Security Council 
should supplement the authorization of the Gen- 
eral Assembly by taking measures, under Articles 
39 and 41 of the Charter, to empower the United 

Deparimeni of Sfafe Bulletin 



Nations Commission, as provided in this resolu- 
tion, to exercise in Palestine the fmictions which 
are ussifrned to it by this resolution; 

"(c) The Security Council determine as a threat 
to the peace, breach of the peace or act of aggres- 
sion, in accordance with Article 39 of the Charter, 
any attempt to alter by force the settlement en- 
visaged by this resolution; 

"(rf) The Trusteeship Council be informed of 
the responsibilities envisaged for it in this plan;" 

This was done by virtue of paragraph 2 of 
article 11, providing, among other things: "Any 
such question on which action is necessary shall be 
I'eferred to the Security Council by the General 
Assembly either before or after discussion." 

This case is so well known that I need only 
point to the fact that the Security Council denied 
action. On the motion of the United States to 
accept the request of the General Assembly to 
implement the plan, only five votes could be ob- 
tained in suj^port of it, namely : the United States, 
the Soviet Union, France, Belgium, and the 
Ukraine. Thereupon, the Security Council di- 
rected the five permanent members to consult on 
whether or not the situation in Palestine consti- 
tuted a threat to international security and peace 
and also to report what recommendations ought 
to be made to the United Nations Palestinian Com- 
mission to carry out the partition plan. They 
found and reported that the partition plan could 
not be implemented by peaceful means, and they 
were unable to make the finding of a threat to in- 
ternational peace. Therefore, the problem of Pal- 
estine was again referred to a Special Session of 
the General Assembly where it is now under 
consideration. 

8. In addition to the Security Council and the 
General Assembly, the resources of the Interna- 
tional Court of Justice are being utilized in the 
pacific settlement of disputes. 

British charges against Albania resulting from 
the damage by mines to two destroyers and the loss 
of 44 lives in the Corfu Channel are now before 
the Court. Here is another case where a Soviet 
veto failed to achieve its purpose. The Soviet 
Union vetoed a Security Council resolution fixing 
the blame upon Albania, but the case was referred 
to the International Court for adjudication none- 
theless, and both parties have recognized the juris- 
diction of the Court. 

9. The Court also is considering the validity of 
Soviet vetoes of membership applications. Its 
findings should be ready in time for consideration 
by the regular session of the General Assembly in 
September. 

10. Even when Security Council action is 
stymied by the misuse of the veto a great deal is ac- 
complished nevertheless. The current Security 

May ?6, 1948 

787917—48 2 



THE UWliD NATIONS AND SPBCIAUZED AGENCIES 

Council consideration of the coup in Czechoslo- 
vakia is a good example. This entire proceeding 
has been conducted in the face of Soviet veto 
threats. But their threats cannot halt the Coun- 
cil's examination of evidence. If and when the 
veto occurs, the evidence will become part of the 
record. 

Changes Are Needed 

Notwithstanding these accomplishments, 
changes are needed. There are ways of woi'king 
for them within the Charter. 

Vigorous efforts are under way now to improve 
the machinery of the United Nations for the pa- 
cific settlement of disputes. 

The United States was largely responsible for 
the establishment of the Interim Committee of 
the General Assembly. This Little Assembly, as 
it is generally known, is now studying a number 
of pi'oposals aimed toward strengthening the ma- 
chinery for the pacific settlement of disputes. 
Moreover, it is working on a series of suggestions 
to restrict the application of the veto and liberalize 
the voting procedures of the Security Council. 
The results of this work will be taken up at the 
next regular session of the General Assembly in 
September. 

I believe that this distinguished Committee has 
a copy of a provisional list of Security Council de- 
cisions which the United States proposes should be 
made by an affirmative vote of seven members 
whether or not such decisions are regarded as pro- 
cedural or non-procedural. Your views touching 
this effort could stimulate it. They would 
strengthen us in our efforts to obtain what is really 
needed : agreement among the permanent members 
that such voting procedures could be followed and 
the establislmient of these voting procedures by 
rules. 

This apjjroach has a chance of success, it is real- 
istic, and it recognizes the one essential in build- 
ing a genuine system of collective security — Big 
Power unity. 

No abandonment of universality should be tol- 
erated. There is no real security without uni- 
versality. We must not tear down this powerful 
buttress of the world organization. Instead, the 
structure should be braced on the inside. 

East and West Relations the Core 

The core of the world-security problems is the 
relationship between the East and the West. 
Since the end of the war, the rift between these 
two powerful groups has gradually widened. No 
matter what the machinery, no matter how strin- 
gent the Charter limitations, the operators of the 
machinery would still be the member states. If 
these states will observe the obligations contained 

629 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 



in the jiresent Charter and cooperate within the 
present framework of the Organization, its 
gravest problems will be solved. 

Creation of additional machinery would not af- 
fect the basic political situation with which we 
are confronted. What is necessary is a funda- 
mental adjustment between East and West. This 
will have to be undertaken at the suitable time. 

The fact that in the short span of its existence, 
the United Nations has not been able to solve this 
basic problem has profoundly affected the think- 
ing of many members of Congress and of some of 
our most forward-looking civic leaders and or- 
ganizations. But I have yet to find a single 
radical revision of the United Nations Charter 
which could, as a practical matter, be adopted at 
this time by any appreciable number of states and 
which, if adopted, would solve that crucial prob- 
lem which is at the basis of present world inse- 
curity. The most likely result of revision, under 
the present circumstances, would be the destruction 
of the United Nations. 

U.N.— The Bridge Between East and West 

The end of the United Nations would lead to the 
complete destruction of the political, economic, 
social, and technical activities of the United 
Nations. The present effectiveness of these ac- 
tivities stems to a great degree from the fact that 
all major powers and an overwhelming majority 
of other states take part in the organization. Once 
this relative universality of membership is de- 
stroyed, such collaboration as now exists would 
cease, and a complete break between the East and 
the West would occur. The only possible bridge 
between the East and West would collapse; and 
yet, the problem of bridging the gap between the 
East and West is precisely the crucial problem of 
our time. 

The U.S. and the U.N. 

Meanwhile, the United Nations affords us an 
equal opportunity to mobilize world opinion and 
action against activities which threaten peace and 
security. It provides an unsurpassed forum for 
explaining our policies to other states and peoples 
and for mobilizing their support. It serves as an 
instrument of negotiation with other powei-s. It 
permits the United States to act in concert with 
other powers in carrying out enterprises wliich 
this country could not or would not undertake 
unilaterally. It is the outstanding instrumen- 
tality for solving economic and social problems, 
safeguarding human rights and fundamental free- 
dom, and improving the welfare of all the peoples. 
It IS and sliould continue to be the cornerstone of 
our foreign policy. 

Since the desire of the overwhelming majority 
of the American people is the strengthening of the 
United Nations, what, then, is the best course to 
pursue ? 

630 



How To Strengthen the U.N. 

Not one, but many acts are required. 
One of the most important actions you have 
already initiated — I refer to the European Re- 
covery Program. The United Nations is as strong 
as its members. An organization of economically 
weak and politically chaotic members cannot have 
strength itself. When only the United States and 
the Soviet Union are strong, rivalry between them 
is virtually inevitable. The successful completion 
of the European Recovery Program, in my opin- 
ion, will not only strengthen the United Nations 
but will reduce the rivalry which is a basic cause 
of today's difficulties. 

Second, we should strengthen our own military 
posture. It is futile to talk about arming the 
United Nations when we know that our force is 
inadequate to fulfil existing commitments. If we 
strengthen our ability to protect international law 
and order, we strengthen collective as well as 
national security — we strengthen the United 
Nations. 

Third, we should strengthen the military pos- 
ture of our friends. History is full of evidence 
that the weakness of the just increases the malice 
of the wicked. We have acted to strengthen the 
economies of friendly states; now let us act to 
strengthen their military position. 

Fourth, we should promote associations of like- 
minded states within the framework of the United 
Nations. The Act of Chapultepec, the Rio treaty 
and the Bogota charter for the organization of 
American states are significant advances in this 
direction. Similar important associations are in 
the process of formation. There is, for example, 
the economic organization established by the 16 
Marshall Plan countries. The unified defense 
system of the five western European states is 
another act which strengthens the United Nations. 
Fifth, we should support specific efforts to 
strengthen the United Nations and help remove 
the causes of war. This means, I believe, that we 
should approve the loan for building the United 
Nations headquarters, join the World Health Or- 
ganization, adopt S.J. Resolution 136 accepting 
the convention on privileges and immunities, and 
ratify the constitution of the proposed Inter- 
national Trade Organization. 

Support for the United Nations, to be genuine 
and effective, must be constant. We should, as a 
leading member, negotiate and ratify specific con- 
ventions for the progressive development and 
codification of international law, for prevention of 
the crime of genocide, for the protection of human 
rights, and the promotion of freedom of in- 
formation. 

Wise, patient, and persistent action in efforts 
such as these will lead to the development of a 
strong United Nations and the fulfilment of its 
tasks. 

Department of State Bulletin 



The Headquarters Loan 

The bill relating to the headquarters loan agree- 
ment has a sigiiificanco whicli goes far beyond its 
terms. As a piece of financial legislation, it has 
some unusual features, but these are not of first- 
rank importance. The political implications of 
congressional action on the bill are important. 
Fiftj'-eight countries, besides the United States, 
have a stake in the United Nations. All of them 
will be observing carefully the action of the Con- 
gress in this matter. 

They will do so because, in this period of ten- 
sion and uncertainty, the decisions of this Congress 
can be of crucial importance for the future of the 
United Nations and for the success of international 
cooperation to keep the peace. 

Nothing could be more crippling to the organi- 
zation and to the attainment of its purposes than 
an official act of Congress which appeared to cast 
doubt on the wisdom and necessity of supporting 
the United Nations with all our energies. 

Our willingness to play a leading part in the con- 
struction of the headquarters has always been re- 
garded as a test of our faith in the United Nations. 

History of Headquarters 

The United States has never been found wanting 
in its material support for the organization. By 
the unanimous action of both Houses of Congress, 
on December 10 and 11, 1945, the United Nations 
was invited to make its headquarters in the United 
States. Through the generosity of Mr. John D. 
Rockefeller, Jr., and the City of New York, a site 
in the heart of New York City was made available 
without cost. The Congress cooperated by passing 
legislation exempting the transaction from federal 
gift tax. The conditions under which the perma- 
nent headquarters are to be set up in New York 
have been established by the headquarters agree- 
ment between the United Nations and the United 
States and approved by the Congress on August 
4, 1947. The necessary demolition on the site has 
been completed. Internationally famous archi- 
tects have unanimously agreed upon plans for an 
imposing group of buildings which will be a suit- 
able center for world collaboration. The city au- 
thorities are ready to proceed with plans involving 
the expenditures, by the city, of some 20 million 
dollars for development of the appi'oaches and im- 
provement of the surrounding areas. 

Finally, the United States has offered, subject to 
the approval of Congress, to make an interest-free 
loan to the United Nations in an amount not to ex- 
ceed 65 million dollars to meet construction costs. 
The offer has been gratefully accepted. The terms 
of the proposed loan are before you for exami- 
nation. 

Thus the proposal before the Congress is the last 
link in a chain of events stretching over a period 
of almost two and one-half years. The United 

May 76, 1948 



THE UNITED NATIONS AND SPECIALIZED AGENCIES 

Nations is ready to begin construction. The "world 
capital" foreseen by Congress in 1945 can at last 
become a permanent physical reality. 

No Political Strings to Hospitality 

Through all this period, the United States has 
scrupulously refrained from attaching political 
conditions to its hospitality. We did not ask that 
the United Nations should take this or that course, 
or develop in a particular direction, or amend its 
Charter, or revise its organizational structure, 
before it could establish its headquarters in this 
country. We invited the United Nations to these 
shores in the full knowledge of its possible limita,- 
tions. We had signed and ratified the Charter. 
We did not "buy a pig in a poke". (See the 723 
pages of hearings before the Committee on For- 
eign Eelations, U.S. Senate, 79th Congress, 1st 
session.) 

Now, however, the loan is associated with the 
Ferguson-Judd resolution. The implication is 
that until certain actions such as the calling of a 
special session of the General Assembly to debate 
a particular problem, or until the United Nations 
is reorganized so as to perform moi-e effectively 
certain of its political functions, the loan may be 
retarded. 

If the Congress should now take the view that 
we should not proceed with the loan agreement or 
begin construction of the headquarters until these 
things were done, a heavy blow would be struck 
both at the organization and at the sincerity and 
prestige of the United States. It would be un- 
fortunate if other members of the United Nations 
should feel that we were attempting to use our 
financial resources in this case to achieve a political 
end. It would be equally unfortunate if they were 
to feel that we had so little faith in the United 
Nations that we were unwilling to make this 
demonstration of our support. 

Provisions of the Loan 

It is proposed that we lend the organization a 
sum not to exceed 65 million dollars. This will be 
repaid from the ordinary budget of the United 
Nations, to which we now contribute 39.89 percent 
of the total. Wliat we would actually be ad- 
vancing beyond our own proportionate share of 
the cost, therefore, is the balance over 60 percent 
of the principal of the loan. We would also, of 
course, in effect be making a gift to the United Na- 
tions of some 60 percent of the interest which 
might have been earned had the money been 
invested in some other entei'prise. 

It will be clear to the Congress, I am certain, 
that there is no feasible alternative to financing 
the construction of the headquarters by a loan. 

Ordinarily it would have been desirable to raise 
the necessary funds through immediate cash con- 
tributions by all member states. But at this par- 

631 



THE UNITED NATIONS AND SPBCIALIZED AGENCIES 

ticular juncture, when so many are struggling to 
recover from the devastation of war and wlien all 
must contend with a critical shortage of dollar 
exchange abroad, dollar payments on the scale re- 
quired would have imposed a very heavy burden 
on many states. Some would certainly have felt 
that, since the money was to be spent in this 
country, the United States might i-easonably have 
been expected to make a higher proportionate con- 
tribution toward the cost of the buildings than it 
makes to the ordinary budget of the United 
Nations. 

In my opinion, such an arrangement would have 
been most unfortunate. We have directed our 
eiforts in the United Nations toward a reduction 
in our general budget quota. Our offer of an 
interest-free loan forestalled any suggestion that 
we should pay a disproportionate share of the con- 
struction costs. 

Other Alternatives Surveyed 

A number of possibilities for financing were ex- 
plored before the United States consented to enter 
into the loan agreement. Arrangements for pri- 
vate financing would have been far frojn satisfac- 
tory. Under the most favorable terms, a large 
part of the total cost would still have had to be 
contributed in cash. The interest rate quoted was 
high. It would have been necessary to mortgage 
the buildings as security — a step which would have 
involved serious legal problems and which would 
have required legislative action by State and pos- 
sibly Federal authorities. The plans themselves 
would have had to be reviewed with the lenders to 
assure the convertibility of the headquarters to 
other uses in the theoretical event of foreclosure. 
Finally, there is a strong psychological objection 
to placing the United Nations under obligation to 
private financial interests. 

Other methods of financing were also canvassed 
without encouraging results. It was discovered 
that under its charter the International Bank for 
Reconstruction and Development could make loans 
only to member nations, or to business enterprises 
with a guaranty from the government concerned. 
Similarly, neither the Reconstruction Finance 
Corporation nor the Export-Import Bank ap- 
.peared to have the statutory authority to make 
such a loan without specific congressional authori- 
zation. 

These were the circumstances in which the 
United States Goverimient entered the picture. 
A thorough study of the problem by experts in the 
Department of State and the Treasury resulted 
in the preparation of the plan suggested by the 
President to the United Nations. 

Reasons for Interest-Free Feature 

The interest-free feature of the proposed loan 
may be regarded as an offset to the financial ad- 
vantages gained by the United States because the 
headquarters is located here. Quite apart from 

632 



considerations of prestige, the principal benefits 
to the United States may be summarized as fol- 
lows : 

First, there is a substantial inflow of funds from 
abroad to finance United Nations activities in New 
York. It is conservatively estimated that about 
$20,500,000 was expended by foreign countries at 
the United Nations in 1947. This sum included the 
contributions of members to the United Nations 
budget, the expenditures necessary for maintain- 
ing permanent delegations in New York City, and 
expenses of the large delegations which attend the 
regular and special sessions of the General As- 
sembly. There are also expenditures by delegates 
to smaller meetings, such as the Security Council, 
the Economic and Social Council, the Trusteeship 
Council, and many other gatherings held at the 
United Nations headquarters. This annual ex- 
penditure is likely to grow rather than to diminish. 

Second, the United States Government makes 
an annual saving on the expenses of its own delega- 
tions because the United Nations headquarters is 
located in New York rather than in a foreign 
country. If the General Assembly were held each 
year in Europe, for example, the additional cost 
to the United States in travel, communications, 
and other conference expenses would be at least 
$300,000 a year. Contact and communication be- 
tween the Governme)it in Washington and the 
United States Delegation would be far less speedy 
and satisfactory. 

Third, the expenditures for construction of the 
headquarters will be made primarily in the United 
States. American labor will be employed on the 
project ; American materials will go into the con- 
struction; and the furnishings antl equipment for 
the buildings will be purchased from American 
manufacturers. Construction will extend over a 
period of several years. 

Fourth, the headquarters, when completed, will 
be a permanent asset to the United States. 

Present Headquarters Handicaps Work 

Gentlemen, I most earnestly hope that the Con- 
gress will not see fit to impose any delay in carrying 
out this project. The United Nations has been 
functioning in the United States since the spring 
of 1946. Since that time, foreign delegations and 
the staff of the Secretariat have been living and 
working under crowded conditions in the New 
York area. The temporary headquarters at Lake 
Success, and the temporary General Assembly 
building at Flushing Meadows, were not designed 
for the use to which they are now being put. They 
are not the facilities the United Nations should 
have. Their location is inconvenient. I hesitate 
to attempt to compute the number of manhoui"s lost 
in travel to, from, and between these buildings and 
the New York headquarters and residences of the 
various delegations. 

(Continued on page 655) 

Department of State Bulletin 



Summary Statement by the Secretary-General ^ 



MATTERS OF WHICH THE SECURITY COUNCIL IS SEIZED AND THE 
STAGE REACHED IN THEIR CONSIDERATION 



A. Pursuant to Eule 11 of the Provisional Rules 
of Procedure of the Security Council, I submit 
the following summary statement of matters of 
which the Security Council is seized and of the 
stage reached in their consideration on 24 April 
1948. [For omitted materials, see U.N. doc. 
S/728 or consult the semiannual BtriiLEXiN 
indexes.] 

1. The Iranian Question 



2. Special Agreements under Article l^S and the 
Organization of the Armed forces made avail- 
able to the Security Council 



?>. Rules of Procedure of the Security Council 



Bj' letter dated 5 September 1947 (document 
S/540/Corr.l) the representative of the United 
Kingdom suggested several additional rules of 
procedure concerning meetings of the Security 
Council. This letter has not yet been considered 
by the Council. 



4. Statute and Rules of Procedure of the Military 
Staff Committee 



5. The General Regulation and Reduction of 
Armaments and Information on Armed 
Forces of the United Nations 



6. Appointment of a Governor of the Free Ter- 
ntory of Tneste 

By letter dated 13 June 1947, the representative 
of the United Kingdom requested that an early 
date be fixed for the discussion by the Security 
Council of the question of the appointment of a 
Governor of the Free Territory of Trieste. The 
question was placed on the agenda at the 143rd 
meeting of the Security Council, and discussed in 
private at the 144th and 155th meetings on 20 June 
1947 and 10 July 1947. The Council set up a sub- 
committee composed of the representatives of 

May 16, ?948 



Australia, Colombia and Poland to collect addi- 
tional information about the candidate. 

At its 203rd meeting held in private on 24 Sep- 
tember 1947, the Council examined the report of 
its sub-committee and also examined a new candi- 
date proposed by the representative of China. The 
Council decided to ask the permanent members 
to hold an informal consultation. 

The Council took up this matter again at its 
223rd meeting held in private on 18 December and 
decided in pursuance of Article 11 (paragraph 1) 
of the Permanent Statute for the Free Territory 
of Trieste to request the Governments of Italy 
and Yugoslavia to consult with each other in an 
effort to reach agreement on a candidate and to 
report on their i^rogress to the Council not later 
than 6 January 1948. 

At its two hundred and thirty-third meeting 
held in private, the Council discussed the replies 
from the Governments of Italy and Yugoslavia to 
the Security Council's request of 19 December. 
The representative of the Union of Soviet Socialist 
Republics suggested that the members of the 
Council should express their opinion regarding the 
new candidates mentioned in the above replies. 
Some permanent members of the Council, how- 
ever, declared that they were not yet in a position 
to discuss those candidates. The Council decided 
to ask the permanent members to have a further 
consideration on the matter next week and also 
decided to have another meeting of the Council on 
this question as soon as possible. 

At its two hundred and sixty-fifth meeting held 
in pi-ivate, the Security Council agi'eed, after some 
discussion, to postpone further consideration of 
this question until such time as it was requested by 
any Member of the Council. 

7. The Egyptian Question 



The Council further considered the question at 
its 201st meeting on 10 September 1947. A draft 
resolution submitted by the representative of 
China (document S/547) and amendments thereto 
submitted by the representative of Australia (doc- 
ument S/549) failed to receive a majority of votes 



' U.N. doc. S/728, Apr. 27, 1948. 



633 



THB UNITED NATIONS AND SPECIALIZED AGENCIES 

and were not adopted. The President then stated 
that the Egyptian question would remain on the 
agenda and that the Council would continue its 
consideration of the question at the request of any 
member of the Council or of either of the two 
parties concerned. 

8. The Indonesian Question 



At the 181st meeting the representative of Aus- 
tralia introduced a draft resolution (document 
S/488) and amendments to this resolution were 
submitted by the representative of Poland (docu- 
ment S/488/Add.l) and China (document 
S/488/Add.2) at the 185th and 187th meetings. 
At the 192nd meeting the representatives of Aus- 
tralia and China introduced a joint draft resolu- 
tion (document S/513) and the representative of 
Australia introduced a new separate draft reso- 
lution (document S/512. The representative of 
the United States also submitted a draft resolution 
(document S/514) . At the 193rd meeting the rep- 
resentative of Belgium introduced a draft resolu- 
tion (document S/517). 

At the 195th meeting the draft resolutions were 
put to a vote. An amendment submitted by the 
representative of the Union of Soviet Socialist 
Republics to the joint Australian-Chinese resolu- 
tion (S/513), providing for the establishment of 
a Commission of the Security Council to super- 
vise the "cease fire" order received seven votes in 
favour, two against (Belgium and France) with 
two abstentions (China and the United Kingdom) 
and was not adopted since one of the permanent 
members voted against it. The joint Australian- 
Chinese resolution was then aclopted by seven 
votes in favour with four abstentions (Colombia, 
Poland, United Kingdom and the Union of Soviet 
Socialist Republics). 

The Polish amendment (S/488/Add.l) to the 
original Australian draft resolution was re-sub- 
mitted as an amendment to the second Australian 
resolution (S/512). The Polish amendment re- 
ceived three votes in favour, four against (Bel- 
gium, France, United Kingdom and the United 
States) with four abstentions (Australia, Brazil, 
China and Colombia) , and was not adopted. The 
Australian resolution received three votes in 
favour (Australia, Colombia and Syria), none 
against with eight absentions, and was not 
adopted. 

The United States draft resolution (S/514) 
received eight votes in favour, none against with 
three abstentions (Poland, Syria and the Union 
of Soviet Socialist Republics) and was adopted. 

The Belgian draft resolution (S/517) received 
four votes in favour, (Belgium, France, United 
Kingdom and the United States) one against 
(Poland) with six abstentions and was not 
adopted. 

634 



A new draft resolution submitted by the repre- 
sentative of Poland (S/521) received ten votes 
in favour, one against (United Kingdom) and 
was adopted. 

The President announced that he considered 
the discussion of the Indonesian question closed 
for the present stage, but that the question would 
remain on the list of matters of which the Council 
is seized. 

The resolutions on the Indonesian question 
adopted at the 194th and 195th meetings are given 
in document S/525. 

By letters dated 4 and IS September 1947, (docu- 
ments S/545 and S/564), the representatives of 
the Netherlands and Indonesia informed the Coun- 
cil that the Governments of Belgium and Aus- 
tralia had accepted their invitation to serve on 
the Council's Committee of Good Offices on the 
Indonesian question. By letter dated 18 Sep- 
tember 1947 (document S/558), the representa- 
tives of Australia and Belgium informed the 
Council that the Government of the United States 
had agreed to be the third member of this Com- 
mittee. By letters dated 26 September, 1 and 2 
October 1947 (documents S/469, S/571 and S/570) , 
the representatives of Australia, United States 
and Belgium informed the Council of the repre- 
sentatives appointed to this Committee by their 
Governments. 

The Council adopted a resolution submitted by 
the representative of Australia (document S/574') 
requesting the Seci'etai'y-General to act as con- 
venor of the Committee of Three on the Indonesian 
Question and requesting the Committee to pro- 
ceed to exercise its functions with the utmost 
dispatch. 

The Security Council, at its 207th through 219th 
meetings discussed the interim report (document 
S/573) and the full report (document S/586) from 
the Consular Commission at Batavia. Draft 
resolutions were submitted by the representatives 
of the Union of Soviet Socialist Republics (docu- 
ment S/575), Australia (document S/579/Rev.l) 
the United Kingdom (with amendments by the 
representative of Belgium accepted by the repre- 
sentative of the United Kingdom, document 
S/578), the United States (document S/585, later 
revised document S/588) and Poland (document 
S/589). The representatives of Belgium and 
China submittecl amendments to the revised 
United States draft resolution (documents S/592 
and S/591). The representative of the United 
Kingdom later withdrew his resolution. 

Two messages from the Government of the Re- 
public of Indonesia to the Security Council were 
circulated as documents S/5S3 and S/590. 

At the 217th meeting, the draft resolutions sub- 
mitted by the representatives of the Union of 
Soviet Socialist Republics (document S/575) and 
Australia (document S/579/Rev.l) were put to a 

Department of State Bulletin 



vote and were not adopted as they did not obtain 
the necessaiy affirmative votes. 

The representative of Australia then submitted 
an amendment to the United States revised draft 
resohition (document S/593). 

A Sub-Committee consisting of the representa- 
tives of Australia, Belgium, China and the United 
States was created with the task of trying to 
merge the revised United States draft resolution 
and the various amendments thereto into one text. 
A proposal by the representative of the United 
Kingdom to use both the revised United States 
draft resolution (document S/588) and the Polish 
resolution (document S/589) as a basis was re- 
jected by the Council. 

The above-mentioned Sub-Committee met on 1 
November and submitted a combined draft reso- 
lution to the Security Council (document S/594). 
The combined draft resolution was considered by 
the Security Council at its 218th and 219th meet- 
ings on 1 November 1947. 

The representative of the United States, in sup- 
port of the draft resolution submitted by the Sub- 
Committee, withdrew his own revised draft reso- 
lution. He further stated that he was authorized 
by the representatives of Australia, Belgium and 
China to announce that they, for the same reason, 
also withdrew their amendments to the United 
States revised draft resolution. 

An amendment introduced by the representative 
of Colombia (document S/595) to the draft reso- 
lution submitted by the Sub-Committee was not 
carried. 

The revised United States draft resolution as 
submitted by the Sub-Committee (document 
S/594) was put to a vote and adopted. 

The Polish draft resolution (document S/587) 
was then put to a vote and rejected as it did not 
obtain the required number of affirmative votes. 

At its 222nd meeting on 9 December 1947, the 
Council took note of a report from the Committee 
of Good Offices regarding the place for holding 
meetings with the two parties concerned (docu- 
ment S/611). 

At its 224th meeting, held on 19 December 1947, 
the Security Council agreed that the Committee 
of Good Offices should continue with its present 
composirion after 31 December 1947. 

At the same meeting of the Council the President 
informed that the Committee of Good Offices was 
preparing an interim report to the Security Coun- 
cil on the progress of its work and that it hoped 
to cable the report on or about 22 December 1947. 

At its 225th meeting on 30 December 1947, the 
Security Council took note of a cablegram from 
the Chairman of the Committee of Good Offices 
stating that the Committee was now preparing a 
more compehensive report than originally antic- 
ipated, and that the report would be forwarded 
upon its early completion. 

May 16, 7948 



THE UNITED NATIONS AND SPBCIAUZED AGENCIES 

At its 229th meeting of the Security Council on 
17 January, the President read a cablegram from 
the Chairman of the Committee of Good Offices 
(document S/650) stating that delegations of the 
Eepublic of Indonesia and the Netherlands would 
sign a truce agi-eement on 17 January 1948 on 
board the USS "Renville" and that immediately 
thereupon, both parties would sign an agreement 
on twelve political principles which were to form 
the agreed basis for discussions concerning the 
settlement of the dispute. 

The first interim report of the Security Coun- 
cil's Conunittee of Good Offices on the Indonesian 
Question (documents S/649 and S/649/Corr.l) 
was considered by the Security Council at its 
247th, 248th, 249tli, 251st, 252nd, 256th and 259th 
meetings with representatives of Australia, India, 
Netherlands, the Philippines, the Republic of 
Indonesia and the Committee of Good Offices par- 
ticipating without a vote. A draft resolution re- 
garding the interim report was introduced by the 
representative of Canada (document S/678) and 
amendments thereto were submitted by the repre- 
sentatives of Australia (document S/681) and 
of Colombia (document S/682). 

The representative of China introduced a new 
draft resolution (document S/689) which was 
adopted at the two hundred and fifty-ninth meet- 
ing with eight votes in favour, none against and 
three abstentions (Agentina, Ukrainian Soviet 
Socialist Republic and the Union of Soviet Social- 
ist Republics). The Colombian amendments 
(document S/682) to the Canadian draft resolu- 
tion (document S/678) were then put to a vote 
paragraph by paragraph but did not obtain the 
required number of affirmative votes. The Cana- 
dian draft resolution (document S/678) was 
adopted with seven votes in favour, none against, 
and four abstentions ( Colombia, Syria, Ukrainian 
Soviet Socialist Republic and the Union of Soviet 
Socialist Republics) . 

9. Voting Procedure in the Security Council 

At the 197th meeting on 27 August, the Council 
discussed the resolution adopted by the General 
Assembly at its sixty-first plenary meeting, held 
on 13 December 1946, concerning voting procedure 
in the Security Council (document S/237). It 
was decided to refer the resolution to the Com- 
mittee of Experts with instructions to consider the 
matter and to make recommendations as to action 
the Council might take to comply with the 
recommendations. 

By letter dated 2 December 1947, (document 
S/620) , addressed to the President of the Security 
Council, the Secretary-General drew the attention 
to the resolution concerning the Voting Procedure 
in the Security Council adopted by the General 
Assembly on 21 November 1947. 

The Security Council considered this communi- 
cation at its 224th meeting on 19 December 1947. 

635 



THC UNITBD NATIONS AND SPECIALIZED AGENCIES 

The President of the Council confirmed the receipt 
of the above-mentioned letter. 

10. Procedure in Application of Articles 87 and 

88 of the Charter With Regard to the Pacific 
Islands under Strategic Trusteeship of the 
United States of America 

By letter dated 7 November 1947 addressed to 
the President of the Security Council, the Secre- 
tary-General drevf attention to certain questions 
in connection with the procedure to follow in ap- 
plication of Articles 87 and 88 of the Charter in 
relation to the Pacific Islands under strategic 
trusteeship of the United States of America 
(document S/599). 

The Security Council, at its 220th meeting on 15 
November discussed the above-mentioned letter 
and decided to refer all questions arising from that 
letter to the Committee of Experts for study and 
report. 

By letter dated 2 December 1947 (document 
S/613) addressed to the President of the Security 
Council the representative of the United States in- 
formed the Security Council that Eniwetok Atoll, 
part of the Pacific Islands under strategic trustee- 
ship by the United States had been closed for secu- 
rity reasons in order that the United States 
Government might conduct experiments i-elating 
to nuclear fission there. 

The Security Council at its two hundred and 
twenty-second meeting on 9 December 1947 took 
note of the above-mentioned communication and 
unanimously decided to defer further considera- 
tion of the matter until the report from the Com- 
mittee of Experts now examining the functions of 
the Security Council in relation to strategic areas 
had been received. 

By letter dated 12 December 1947 (document 
S/621) the Chairman of the Committee of Experts 
announced that due to unexpected complications 
the Committee of Experts had not been able to 
report to the Council within the time specified, and 
that it would do so at the earliest possible moment. 

The Security Council considered this letter at 
its 224th meeting on 19 December 1947. A resolu- 
tion submitted by the representative of Poland 
(document S/625) giving further instructions to 
the Committee of Experts and settiiig new time 
limits was ruled out of order by the President of 
the Council. The ruling was challenged, but con- 
firmed by a vote with nine affirmative votes. The 
representative of Poland reserved his right to re- 
introduce his draft resolution under a separate 
agenda item later. 

The President stated that the Council took note 
of the above-mentioned letter. 

11. Applications for Memhership 

At its 118th plenary meeting held on 17 Novem- 
ber 1947, the General Assembly adopted resolu- 
tions requesting the Security Council to recon- 

636 



sider, before the end of the Assembly's session, 
the applications by Transjordan and Italy for 
admission as Members. 

By letter (document S/606) dated 18 November 
1947, the Secretary-General transmitted these 
resolutions to the President of the Security 
Council. 

At its 221st meeting on 22 November 1947, the 
Council considered these Assembly resolutions. 
The President stated that none of the Members of 
the Security Council had changed its position on 
either application. The Security Council would 
report to the General Assembly accordingly and 
would postj^one further reconsideration of these 
two applications in order to allow consultation 
among the j^ermanent Members. 

By letter dated 22 November 1947 (document 
A/515), the President of the Security Council 
informed the President of the General Assembly 
of these proceedings. 

At the 261st meeting, the application of Burma 
for Membership in the United Nations (document 
S/687) was referred without discussion to the 
Security Council Committee on the Admission of 
New Members. 

The Security Council considered this question 
again at the 279th and 280th meetings. At the 
279th meeting the resolution (document S/717), 
recommending the application of the Union of 
Burma for membership in the United Nations was 
adopted by ten votes to none with one abstention 
(Argentina). 

The Council then reconsidered the applications 
of Albania, Austria, Bulgaria, Eire, Finland. 
Hungary, Italy, the Mongolian People's Ile])ublic, 
Portugal, Eoumania and Transjordan. The re- 
sult of the vote on the application of Italy was 
nine in favour and two against (the Ukrainian 
Soviet Socialist Republic and the Union of Soviet 
Socialist Republics). Inasmuch as one of the 
negative votes was cast by a permanent member, 
the application of Italy failed to obtain the recom- 
mendation of the Security Council. 

At the 280th meeting, since none of the repre- 
sentatives had changed his attitude with regard 
to the other applications, the Council decided to 
report accordingly to the General Assembly, 
and to adjourn the discussion on this matter 
indefinitely. 

12. The Palestinian Question 

By letter dated 2 December 1947 (document 
S/614) the Secretary-Genei-al requested that the 
President of the Security Council draw the atten- 
tion of the Council to the General Assembly resolu- 
tion of 29 November 1947 (Document "A/516), 
particularly paragraphs (a). (6), and {c) of the 
opei-ative part of that resolution. 

By two telegrams dated 7 December the Minister 
for Foreign Affairs of Egypt (document S/617) 

Department of State Bulletin 



and the Acting Minister for Foreign Affairs of 
Lebanon (document S/618) requested that their 
countries, under Article 31, be given the right to 
participate without a vote in the discussions in 
the Security Council whenever the question of 
Palestine is under consideration. 

At its 222nd meeting on 9 December the Security 
Council took note of the above-mentioned letter 
of the Secretary-General (document S/614) and 
the resolution of the General Assembly on the 
Palestinian question and decided to postpone dis- 
cussion of the matter. 

At its two-hundred and forty-third meeting, 
the Security Council considered the first monthly 
Progress Report from the United Nations Pales- 
tine Commission (document S/663). 

The President of the Council stated that this 
report was purely factual and for the information 
of the Council. However, the Commission was 
preparing a special report which would be avail- 
able shortly and which would involve questions 
requiring determination by the Council. He sug- 
gested that the Council at this stage only take note 
of the first monthly Progress Report and postpone 
consideration of it until the Council would also 
have the special report before it. 

No objection was raised against the procedure 
suggested by the President and it was so decided. 

The Security Council at its two hundred and 
fifty-third, two hundred and fifty-fourth, two 
hundred and fifty-fifth and two hundred and 
fifty -eighth meetings considered the first monthly 
progress report to the Security Council of the 
United Nations Palestine Commission (document 
S/663) and the first special report to the Security 
Council, covering the problem of security in Pales- 
tine, submitted by the United Nations Palestine 
Commission (document S/676). The representa- 
tives of Egypt and Lebanon were, in accordance 
with a previous decision of the Council, invited 
to participate in the discussion without a vote. 
The Jewish Agency for Palestine was, at its re- 
quest, invited to the Council table for the purpose 
of supplying such information and rendering 
such assistance as the Council might require. At 
the suggestion of the President of the Council, it 
was agreed to grant the same privilege to the Arab 
Higher Committee if it so requested. 

Draft resolutions were introduced by the repre- 
sentatives of Colombia (document S/684) and the 
United States of America (document S/685). 
The representative of Belgium submitted an 
amendment to the United States draft resolution 
( document S/688 ) . The representative of Colom- 
bia later withdrew his draft resolution. Further 
consideration of this question was postponed until 
Tuesday, 2 March 1948. 

The Security Council at its two-hundred and 
sixtieth, two-himd'red and sixty-first, two-hun- 
dred and sixty-second and two-hundred and 

Ma/ 16, 7948 

787917 — 48 3 



THE UNITED NATIONS AND SPECIALIZBD ACENCIBS 

sixty-third meetings continued consideration of 
the First Monthly Progress Report to the Security 
Council of the United Nations Palestine Commis- 
sion (document S/663) and the First Special Re- 
port to the Security Council on the Problem of 
Security in Palestine submitted by the United 
Nations Palestine Commission (document S/676). 

At the two-hundred and sixty-second meeting, 
the President requested that the representatives 
of the United States and the Union of Soviet 
Socialist Republics consult together in an effort 
to formulate a mutually acceptable version of the 
United States draft resolution (document S/685). 
At the two-hundred and sixty-third meeting the 
representatives of the United States and the Union 
of Soviet Socialist Republics reported on the re- 
sults of their consultation and the representative 
of the United States amended his draft resolution 
accordingly. The representative of Belgium an- 
nounced that he accepted certain of the changes 
made in the United States amended resolution and 
wanted them to be incorporated in the Belgian 
amendment (document S/688). Thereupon, the 
Belgian amendment as revised was put to a vote 
paragraph by paragrajDh, but failed to obtain the 
requi'.'ed number of affirmative votes and conse- 
quently was not carried. The amended resolution 
of the United States was also voted upon para- 
gi-aph by paragraph. The preamble, the first part 
of paragi-aph 2 and the final paragraph were 
adopted. The accepted paragraphs of the amended 
United States Resolution were then put to the vote 
as a whole and adopted by eight affirmative votes, 
none against and three abstentions (Argentina, 
Syria and the United Kingdom. For the text 
of the resolution as finally adopted see document 
S/691). 

At its two hundred and sixty-seventh meeting, 
the Security Council heard statements by the rep- 
resentatives of Lebanon and Syria. At the two 
hundred and seventieth meeting, Members of the 
Council who had participated in the consultations 
of the permanent members reported to the Council 
on the results of their discussion. At the two 
hundred and seventy-first meeting, the representa- 
tive of the United States outlined the contents of 
a proposed resolution which would be submitted 
at a later date. 

Discussion was continued at the two hundred 
and seventy-fourth, two hundred and seventy-fifth 
and two hundred and seventy-seventh meetings. 
At the two hundred and seventy-seventh meeting 
the draft resolution (document S/704) introduced 
by the representative of the United States as 
amended by the representative of the Ukrainian 
Soviet Socialist Republic, calling for a truce in 
Palestine was adopted unanimously. The draft 
resolution (document S/705) also introduced by 
the representative of the United States, requesting 
the Secretary-General to convoke a special ses- 

637 



THE UNITED NATIONS AND SP£C/At/ZED AGBNCIES 

sion of the General Assembly regarding Palestine, 
was adopted by nine votes in favour with two 
abstentions (Ukrainian Soviet Socialist Kepublic 
and the Union of Soviet Socialist Eepublics). 
The Secretary-General announced that the special 
session of the General Assembly called for by the 
terms of the United States resolution (S/705) 
would be convoked on 16 April 1948. 

Discussion was continued at the 282nd and 283rd 
meetings. The representative of Colombia intro- 
duced a draft resolution containing the terms of 
a truce in Palestine. The resolution as amended 
(document S/723) was adopted by a vote of nine 
in favour, none against, and two abstentions 
(Ukrainian Soviet Socialist Republic and the 
Union of Soviet Socialist Republics). 

A the 287th meeting, the representative of the 
United States introduced a draft resolution calling 
for the establishment of a Truce Commission to 
supervise the implementation of the resolution 
adopted by the Council on 17 April (document 
S/723). The resolution (document S/727) was 
adopted by a vote of eight in favour, none against 
and three abstentions (Colombia, Ukrainian 
Soviet Republic and the Union of Soviet Socialist 
Republics). 

13. The India-Pakistan Question 

By letter dated 1 January 1948 (document 
S/628), the representative of India, under Article 
35 of the Charter, drew the attention of the Coun- 
cil to the present situation in Jammu and Kashmir 
and requested the Security Council to ask the Gov- 
ernment of Pakistan: 

1. to prevent Pakistan Government personnel, 
military and civil, from participating or assisting 
in the invasion of the Jammu and Kashmir State : 

2. to call upon other Pakistan nationals to desist 
from taking any part in the fighting in the Jammu 
and Kashmir State: 

3. to deny to the invaders: 

(a) access to and use of its territory for opera- 
tions against Kashmir, 

(i) military and other supplies, 

(c) all other kinds of aid that might tend to 
prolong the present struggle. 

The Security Council admitted tliis question 
to its agenda at its 226th meeting on 6 January. 
Representatives of the Governments of India and 
Pakistan were, in pursuance of Article 31 of the 
Charter, invited to participate in the discussion 
without a vote. 

At the request of the representative of Pakistan, 
the Council postponed further consideration of 
the question until a meeting to be held not later 
than 15 January 1948. 

In a letter addressed to the Secretary-General 
(document S/646) the Minister of Foreign Affairs 
of Pakistan answered to the application to the 

638 



Security Council made by the representative of 
India (document S/628). 

The Security Council at its 227th, 228th and 
229th meetings on 14, 16 and 17 January 1948 heard 
statements by the representatives of the two 
parties concerned. 

At the 229th meeting, a draft resolution sub- 
mitted by the representative of Belgium (docu- 
ment S/651) was adopted with nine votes in 
favour, none against and two abstentions (Ukrain- 
ian Soviet Socialist Republic and Union of Soviet 
Socialist Republics). The representative of the 
United Kingdom then proposed that the President 
of the Council sliould meet with the representa- 
tives of the two Governments concerned and that, 
under his guidance, they should try to find some 
common ground on which the structure of a set- 
tlement might be built. This proposal was met 
with the approval of the parties concerned and 
the President expressed his readiness to assist. 
No objection was voiced against the proposal by 
any representative on the Security Council. The 
President then announced that the Council would 
adjourn until 20 January 1948, at 10.30 a. m. and 
that, at this meeting, the Council would hear the 
rejjorts of the representatives of India and Paki- 
stan on the conversations held. 

Consideration of this question was continued 
at the two hundred and thirtieth, two hundred and 
thirty-first, two hundred and thirty-second, two 
hundred and thirty-fourth and two hundi'ed and 
thirty-fifth meetings. At the two hundred and 
thirtieth meeting, the President reported to the 
Council on the result of the conversation he had 
had with the two parties and introduced a draft 
resolution (document S/654) which had the sup- 
port of the parties. This resolution was adopted 
at the same meeting by the Council with nine af- 
firmative votes and two abstentions (the Union 
of Soviet Socialist Republics and the Ukrainian 
Soviet Socialist Republic) . 

By letter dated 20 January (document S/655) 
the Minister for Foreign Affairs of Pakistan re- 
quested that the Securitj' Council at as early a date 
as possible, consider the situations (other than the 
Kashmir and Jammu situation) mentioned in his 
previous letter (document S/646 and Corr. 1). 
This letter was included in the provisional agenda 
of the two hundred and thirty-first meeting of the 
Security Council. The Council, at this meeting, 
decided to describe the question under considera- 
tion : "The India-Pakistan Question". The Secu- 
rity Council heard additional statements by the 
representatives of India and Pakistan at the two 
hundred and thirty-second, two hundred and 
thirty-fourth and two hundred and thirty-fifth 
meetings. 

The Council decided to adjourn further consid- 
eration of this question until 27 January, the Presi- 
dent's conversations with the parties to continue 
in the meantime. 

Department of State Bulletin 



The question was further considered at the 
236th, 237th, 238th, 239th, 240th, 241st and 242nd 
meetings and the President reported on his con- 
tinuing conversations with the parties. At the 
237th meeting the representative of Belgium in- 
troduced two draft resolutions (documents S/661 
and S/662) . At the 239th meeting, the representa- 
tive of India introduced two proposals. 

Further consideration of the question was post- 
poned until 10 February 1948, the conversations 
between the President and the two parties to be 
continued in the meantime. 

Discussion continued at the two hundred and 
forty-third, two hundred and forty-fourth, two 
huncired and forty-iifth and two hundred and 
forty-sixth meetings. At the two hundred and 
forty-sixth meeting, the Council, concurred with 
a request of the representative of India to post- 
pone indefinitely the consideration of the situa- 
tion in Jammu and Kashmir (document S/628) 
in order to give the representative of India an 
opportunity to return to India for consultation 
with his Government. The representative of India 
was urged to be at the disposal of the Council for 
continuation of the consideration of this question 
at as early date as possible, aad the Council re- 
served its right to take up the Jammu and Kaslimir 
question again at its discretion before the return 
of the Indian representative. Consideration of 
aspects of the India-Pakistan question other than 
those relating to the situation in Jammu and Kash- 
mir would be resumed on Wednesday, 18 February 
1948. 

At its 250th and 257th meetings the Security 
Council considered aspects of the India-Pakistan 
Question other than those relating to the situation 
in Jammu and Kashmir. 

Discussion was continued at the 264th, 265th and 
269th meetings. The representative of China 
introduced a draft resolution (document S/699) 
which resulted from his consultations with the 
delegations of India and Pakistan. At the 284th. 
285th and 286th meetings, the Council considered 
a revised draft resolution submitted jointly by 
the representatives of Belgium, Canada, China, 
Colombia, the United Kingdom and the United 
States of America, (document S/726) outlining 
the terms of a general settlement of the dispute. 
At the 286th meeting, this resolution was voted 
on paragraph by paragraph, and adopted. At the 
287th meeting the nomination of Belgium and Co- 
lombia, to the Commission provided for in the 
terms of the resolution (document S/726) was ap- 
proved by a vote of seven in favour, none against 
and four abstentions (Belgium, Colombia, 
Ukrainian Soviet Socialist Republic and the 
Union of Soviet Socialist Republics). It was 
agreed that the President of the Security Covuicil 
should continue to meet with both parties in an 
effort to find a solution to the question of 
Junagadh. 

May 16, 1948 



THE UNltBD NATIONS AND SPBCIALIZED AGBNCIBS 

14. The Csechoslovakian Situation 

By letter dated 12 March 1948 (document 
S/694) the permanent representative of Chile to 
the United Nations requested that, in accordance 
with Article 34 of the Charter, the Security Coun- 
cil, "investigate the events reported by the perma- 
nent representative of Czechoslovakia, Dr. Jan 
Papanek, which constitute a threat to interna- 
tional peace and security". At the two hundred 
and sixty-eighth meeting this item was admitted 
to the Agenda and the representative of Chile in- 
vited to participate in the discussion in accordance 
with Article 31 of the Charter. The representative 
of Chile requested that, in accordance with Rule 
39 of the Provisional Rules of Procedure, the Se- 
curity Council should invite Dr. Jan Papanek to 
supply it with information. 

At the two hundred and seventy-second meet- 
ing, on the request of the representative of Argen- 
tina, and in accordance with Rule 38 of the Pro- 
visional Rules of Procedure, the proposal of the 
representative of Chile to invite Dr. Jan Papanek 
to supply the Security Council with information, 
in accordance with Rule 39 of the Provisional 
Rules of Procedure, was adopted by a vote of 
nine to two. 

Discussion was continued at the 273rd, 276th 
and 278th meetings. The resolution (document 
S/711) introduced by the representative of the 
United States, inviting the Government of Czecho- 
slovakia to participate in the discussion of the 
Czechoslovakian question, was adopted by nine 
votes to none with two abstentions (the Ukrainian 
Soviet Socialist Republic and the Union of the 
Soviet Socialist Republics). In response to this 
invitation the Government of Czechoslovakia 
stated that it did not find it possible to take part 
in the discussion (document S/718). 

At the 281st meeting, the representative of Chile 
submitted a draft resolution proposing that a sub- 
committee of the Council be appointed to hear 
statements and testimony relative to this question, 
and to submit a report thereon to the Security 
Council as soon as possible. 

Current U.N. Documents: 
A Selected Bibliography^ 

International Children's Emergency Fund. Programme 
Committee. Report of the Sub-Committee on Medical 
Projects. E/ICBF/43, Feb. 18, 1948. 56 pp. mimeo. 

Executive Board. Report of the Executive Director 

to the Nineteenth Meeting of the Executive Board, 9 
March 1948. E/ICEF/46, Feb. 27, 1948. 15 pp. 
mimeo. 



' 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. 

639 



FOREIGN AID AND RECONSTRUCTION 



Economic Cooperation Act of 1948 



STATEMENT BY THE DEPARTMENT OF STATE AND THE 
ECONOMIC COOPERATION ADMINISTRATION 



Tlae Department of State and the Economic 
Cooperation Administration released on May 8 
copies of the exchanges of notes between the 
United States and 11 member nations of the Or- 
ganization for European Economic Co-operation.' 

The purpose of the notes is to record certain 
assurances which the Economic Cooperation Act 
specifies are to be received from the participating 
countries before the Administrator can proceed 
■with a full assistance program with respect to 
them. According to subsection 115(c), each 
country is expected to signify its adherence to the 
purposes of the Act and its intention to conclude 



an agreement with the United States. Each note 
contains statements to this effect, and further 
states that the country in question is carrying out 
the provisions of subsection 115(b) which are ap- 
plicable to it and is also engaged in continuous 
efforts to bring about a joint recovery program. 
In addition, those countries which will probably 
receive some assistance in the form of grants agree 
to make deposits in their own currency commen- 
surate with the dollar amount of assistance fur- 
nished as a grant. These deposits are to be 
available for certain United States expenses 
abroad and for other purposes agreed to by the 
two countries. 



EXCHANGES OF NOTES BETWEEN THE U.S. AND ELEVEN MEMBER NATIONS OF THE 
ORGANIZATION FOR EUROPEAN ECONOMIC CO-OPERATION > 



The Acting Secretary of State to the 
Netherlands Ambassador 

Excellency: I have the honor to inform you 
that the Economic Cooperation Act of 1948 (Title 
I of the Foreign Assistance Act of 1948) became 
law on April 3, 1948. 

You will note the general requirement of the Act 



' Released to the press by the Department of State and 
the Economic Cooperation Administration on May 8. 

" While all the notes are similar, there are certain slight 
differences. For this reason copies of the notes which do 
differ are included in this release. On the list of countries 
which have exchanged notes with the United States are: 
Austria, Denmark, France, Iceland. Ireland, Italy, Luxem- 
bourg, the Netherlands, Norway, Sweden, and the United 
Kingdom. Notes have not been excliauged as of this date 
with Greece, Portugal, Switzerland, and Turkey, nor with 
the western zones of Germany. 

Copies of the notes exchanged are with (1) the Nether- 
lands (exchanges with Denmark, Luxembourg, and Nor- 
way are in the same form) ; (2) Ireland (these are in the 
same form as those with Iceland and Sweden) ; (3) Italy 
(which are in the same form as those with France) ; (4) 
the United Kingdom ; and (5) Austria. 

«40 



that, before assistance may be provided by the 
United States to a country of Europe which par- 
ticipates in a joint recovery program based on self- 
help and mutual cooperation, an agreement must 
have been concluded between that country and the 
United States as described in subsection 115(b) of 
the Act. However, before such an agreement is 
concluded and until July 3, 1948, the Government 
of the United States proposes, under the terms of 
subsection 115 (c) , to arrange for the performance, 
with respect to your country, of those functions 
authorized by the Act which may be determined to 
be essential in furtherance of its purposes. This 
action by the Government of the United States is 
contingent upon the requirements of subsection 
115(c) of the Act being fulfilled. 

Accordingly, I should appreciate your notifying 
me whether your Government adheres to the pur- 
poses and policies in furtherance of which the Act 
authorizes assistance to be provided, and is en- 
gaged in continuous efforts to accomplish a joint 
recovery program through multilateral under- 
takings and the establishment of a continuing or- 

Deparfmenf of State Bulletin 



gaiiization for this purpose, and also whether your 
Government intends to conchide an agreement 
with the United States in accordance with sub- 
section 115(b). The purjjoses of the Act are stated 
in the whole of subsection 102(b) and the policies 
referred to in subsection 102(b) are thosQ desig- 
nated as such in subsection 102(a). 

My Government would be required by the Act 
to terminate assistance authorized by subsection 
115(c) to your country if at any time it should 
find that your Government was not complying 
witli such provisions of subsection 115(b) of the 
Act as my Government might consider applicable. 
I should appreciate being notified whether your 
Government is complying with and, for so long as 
assistance may be made available to it under the 
Act pursuant to this note, is prepared to comply 
with the applicable provisions of subsection 
115(b). 

During the period covered by this note, assist- 
ance may be furnished to your Government under 
the Act on terms of payment or by grant. It is 
anticipated that during the period covered by this 
note, a proportion of the assistance furnished to 
your country will be by grant. Consequently, my 
Government would like to have the agreement of 
your Government that The Netherlands will make 
deposits, in guilders upon notification by my Gov- 
ernment, in amounts commensurate with the dollar 
amount of assistance furnished hereunder desig- 
nated as a grant, such deposit to be available for 
the administrative expenses incurred by my Gov- 
ernment in your country under the Economic Co-