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Full text of "Scope of Soviet activity in the United States. Hearing before the Subcommittee to Investigate the Administration of the Internal Security Act and Other Internal Security Laws of the Committee on the Judiciary, United States Senate, Eighty-fourth Congress, second session[-Eighty-fifth Congress, first session] .."

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SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 



HE4RING.-...M 

j,,„BEFORB THE' '•"!■- !'! IS Vii-'^". 

SUBCOMMITTEE Tp,>p\fES5'IGATE THE 

ADMINISTRATION OF THE INTERNAL SECURITY 

ACT AND OTHER INTERNAL SECURITY LAWS 

OF THE 

COMMITTEE ON THE JUDICIARY 
UNITED STATES SENATE 

EIGHTY-FOURTH CONGRESS 

SECOND SESSION 
ON 

SCOPE OF SOVIET ACTIVITY IN THE 
UNITED STATES 



MAY 15, 1956 



PART 42 



Printed for the use of the Committee on the Judiciary 




UNITED STATES 
GOVERNMENT PRINTING OFFICE 
72723 WASHINGTON : 1957 



Boston Public Library 
Superintendent of Documents 

JUL 25 1957 



COMMITTEE ON THE JUDICIARY 

JAMES O. EASTLAND, Mississippi, Chairman 

ESTES KEFAUVER, Tennessee ALEXANDER WILEY, Wisconsin 

OLIN D. JOHNSTON, South Carolina WILLIAM LANGER, North Dakota 

THOMAS C. HENNINGS, Jr., Missouri WILLIAM E. JEXNER, Indiana 

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah 

PRICE DANIEL, Texas EVERETT McKINLEY DIRKSEN, Illinois 

JOSEPH C. O'MAHONEY, Wyoming HERMAN WELKER, Idaho 

MATTHEW M. NEELY, West Virginia JOHN MARSHALL BUTLER, Maryland 



Subcommittee To Investigate the Administration of the Internal Security 
AoT AND Other Internal Security Laws 

JAMES O. EASTLAND, Mississippi, Chairman 
OLIN D. JOHNSTON, South Carolina WILLIAM E. JENNER, Indiana 

JOHN L. McCLELLAN, Arkansas ARTHUR V. WATKINS, Utah 

THOMAS C. HENNINGS, JR., Missouri HERMAN WELKER, Idaho 

PRICE DANIEL, Texas JOHN MARSHALL BUTLER, Maryland 

Robert Morbis, Chief Counsel 

J. G. SouRWiNE, Associate Counsel 

William A. Rusher, Associate Counsel 

Benjamin Mandbl, Director of Research 

n 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 



TUESDAY, MAY 15, 1956 

United States Senate, 
SuBcoMMin^'EE To Investigate the 

Administration of the Internal Security Act and 

Other Internal Security Laws of the 

Committee on the Judiciary, 

Washington, D. C. 

The subcommittee met, pursuant to recess at 11 : 35 o'clock a. m., in 
room 424, Senate Office Building, Senator William E. Jenner, pre- 
siding. 

Present : Senator Jenner. 

Also present: Eobert JNIorris, chief counsel: William A. Rusher, 
administrative counsel; Benjamin Mandel, research director, and 
Robert McManus, research analyst. 

Senator Jenner, The committee will come to order. 

]Mr. Morris. I would like the record to show that we are 45 minutes 
or more late for our hearings. 

The reason is that we have had a longer executive session than we 
had originally planned. Mr. Coe has identified a statement in which 
he stated that he wished to drop the protection of the fifth amendment 
for certain facts. That on its face would be a reversal of what he 
originally said. For that reason, Senator, we spent, with Senator 
Eastland presiding, a great deal of time going over things we had 
not planned to go over m executive session testimony. I think, how- 
ever, if we get into this, with a few questions here at the beginning, 
we will find that the status of Mr. Coe — his position — is not so dif- 
ferent from what j'ou would gather from first blush on this. 

Senator Jenner. Mr. Coe, will you be sworn to testify ? 

Do you swear that the testimony you are to give before the subcom- 
mittee will be the truth, the whole truth, and nothing but the truth? 

Mr. Coe. I do. 

Senator Jenner. Proceed Mr. Morris. 

Mr. Morris. I would like to read from a certain portion of your 
statement here. 

Mr. CoE. May I read the statement into the record ? 

Senator Jenner. You have issued the statement to the press, have 
you not? 

Mr. Coe. Yes. 

Senator Jenner. Then we don't want a repetition here. Go ahead, 
Mr. Morris. 

Mr. Morris. You wish to state here that the testimony of Eliza- 
beth Bentley before the Internal Security Committee about yourself 
is false. Is that right? 

2873 



2874 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Mr. CoE. Insofar as Miss Bentley charged me with espionage, which 
I believe is her testimony, which has been widely publicized over many 
years. It is completely false. 

Mr. Morris. May we deal in specific allegations ? 

Mr. CoE. As you know, I don't even know Miss Bentley. 

Mr. Morris. May we deal in specific aspects of her testimony? 

Did you know Natlian Gregory Silvermaster? 

Mr. CoE. I certainly did; may I explain how I knew him? 

Mr. Morris. Did you know William Ludwig Ullmann? 

Mr. CoE. Yes, and I would like to explain how I knew him. 

Mr. Morris. You may. 

Mr. CoE. Nathan Gregory Silvermaster and William Ludwig Ull- 
mann I first met in the United States Government when I was em- 
ployed there. They were employed there at the same time, one of 
them in an office of the Treasury Department where I was employed. 
Inevitably, I became acquainted with Mr. Ullmann. They were both 
economists, I was acquainted with them and numerous other 
economists. 

I knew Ullmann. He was a New Dealer, a person of great loyalty 
to his country. 

Mr. Morris. Were you a Communist during the time that you knew 
them ? 

Mr. CoE. I knew Nathan Gregory Silvermaster, I think through 
Ullmann, and later in a Government office where we were jointly em- 
ployed for a short time. 

Mr. Morris. Now, were you a Communist during the period that 
you knew Silvermaster and Ullmann ? 

Mr. CoE. I would like to preface my answer to that statement, Mr. 
Morris, with this. I told you in the statement I have given you that 
I want to waive the protection of the fifth amendment in order to 
clear up the allegations of espionage against Wliite, myself, and 
others so far as I can possibly do so. You now ask me, and I hope 
you will ask a good many questions on that, and I hope that all the 
evidence of espionage or of any other improper activities of mine, 
which is in the possession of the committee, will be put into the 
record. 

Regarding questions of politics 

Mr. Morris. We are not talking about politics, w€ are talking about 
membership in the Communist Party, Mr. Coe. 

Mr. CoE. Political affiliations, membership in the Communist Party 
or any party, membership in any of the various senses which this com- 
mittee has used membership in the Communist Party to mean. 

I say first, I object to being brought before a tribunal of this sort 
and compelled to talk about my political beliefs or affiliations, or 
those of anyone else. 

Senator Jenner. The objection will be overruled. Will you answer 
the question, were you a member of the Communist Party at the 
time you knew Silvermaster and Ullmann ? 

Mr. CoE. I believe, Senator, that since you have overruled the ob- 
jection, I will have to rely on the protection of the first amendment, 
which I think prevents your inquiring into these matters. 

Mr. Morris. It doesn't prevent us from inquiring into them. It is 
a privilege which an inquiry of 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2875 

Senator Jenner. The committee does not recognize your refusal 
to answer under the first amendment. This is not a tribunaL This 
is a duly constituted congressional committee, we are seeking informa- 
tion. Now, we ask that you answer the question. 

Mr. CoE. Mr. Chairman, since the committee doesn't recognize the 
first amendment in this context, I will avail myself of my privilege 
under the fifth amendment not to be a witness against myself. 

Senator Jenner. The committee so recognizes yovir right. 

Mr. CoE. I may say for the convenience of the committee that this is 
a course which I shall follow generally on all political questions. 

Mr. Morris. Did you pay Communist Party dues to Nathan Greg- 
ory Silvermaster or William Ullmann ? 

Mr. CoE. I consider that the same question, Mr. Morris, in slightly 
a different form and, therefore, I give the same answer. 

First, the objection which I assume is overruled; second, refusal 
mider the first amendment, which you don't recognize; and, third, 
refusal under the fifth amendment, which you do recognize. 

Senator Jenner. Your refusal under the fifth amendment will be 
recognized. 

Mr. Coe. Tlmnk you. Senator. 

Mr. Morris. Did you pay Communist Party dues to Silvermaster 
or Ullmami, which, to your knowledge, was transmitted to Elizabeth 
Bentley ? 

Mr. Coe. Mr. Morris, though I seem to wish to conserve the com- 
mittee's time, I don't perceive that repetition, as you are doing, of the 
same question, "Are you or were you a Communist?" in many forms, 
is doing that. 

I have told you with what I thought was helpful spirit that that is 
one area of questions where I will defend myself in the way I have 
indicated. I thought you were inquiring into espionage. I am 
anxious to answer those questions. 

Mr. MoRMS. Well, of course you know, Mr. Coe, that we have to 
deal in specifics. It may be that you think in terms of abstracts, but 
we would like to deal with concrete facts, and for that reason I have 
to ask you the specific questions that follow the nature of the evidence 
that is in our possession. 

Miss Bentley has testified that you were a Communist and that you 
paid Communist Party dues and that she collected your dues, and that 
she didn't get it from your personally, but through Silvermaster and 
Ullmann. 

With respect to the next group of questions 

Senator Jenner. Would you read the question again Miss Reporter ? 

(The reporter read the questions back as follows :) 

Did you pay Communist Party dues to Silvermaster or Ullmann, which, to 
your knowledge, was transmitted to Elizabeth Bentley? 

Mr. CoE. I want to answer the question, and I want to rely on the 
three protections. 

Senator Jenner. Same record, Miss Reporter, as the other questions. 

Mr. Morris. Did you ever transmit classified documents to Nathan 
Gregory Silvermaster in his home? 

Mr. Coe. I told you, Mr. Morris, that I never at any time engaged in 
espionage. 

Senator Jenner. I don't believe that is a proper answer to the ques- 
tion. Did you deliver documents is the question. 



2876 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Mr. CoE. I think that would — I beg your pardon. 

Mr. Morris. Did you ever transmit classified documents to Nathan 
Gregoiy Silvermaster in his home ? 

Mr. CoE. The answer is "No." 

Mr. Morris, Did you ever transmit classified documents to William 
Ludwig Ullmann in Silvermaster's home ? 

Mr. CoE. Did I ever transmit to Ullmann — as a matter of record, 
Mr. Morris, Ullmann for certain periods of my Government career 
was under my supervision. I don't recall passing classified or even 
unclassified documents to him during that time. But commonsense 
tells me that I must have. 

Senator Jenner. I don't believe that is a responsive answer. I 
think the question was phrased, "Did you deliver documents to Ull- 
mann in Silvermaster's home?" Not in the course of your duties. 

Mr. Morris. Give it to him in his home ? 

Mr. CoE. I have no recollection of ever having done so. 

Mr. Morris. Did you give classified documents to Nathan Gregory 
Silvermaster at any time? 

Mr. CoE. At any time? 

Mr. Morris. Yes, or at any place, rather. I will take the specifica- 
tion "in his home" off. 

Mr. CoE. Well, I gave you the answer; no. 

Mr. Morris. That was in his home? 

Mr. CoE. There was a brief period when Silvermaster and I were 
employed in the same agency. I have no recollection of giving him 
classified documents at that time. I doubt, so far as I recall the 
nature of the work, that I had very much to do with him. But it is 
conceivable. 

Mr. Morris. Now, have you ever been in the basement of Silver- 
master's home? 

Mr. CoE. I don't recall. 

Mr. Morris. Is it your testimony that you were never in the base- 
ment of the Silvermaster home? 

Mr. CoE. I simply don't recall. I was in his home. 

Mr. Morris. And you can't tell us whether or not you were in the 
basement of that place? 

Mr. CoE. The period when he and I were in the Government, con- 
cerning which Bentley has spoken, was — what, 15 years ago? I 
couldn't say positively that I was or wasn't in anybody's basement 15 
years ago. 

Is that responsive? 

Mr. Morris. Yes. 

Mr. CoE. May I add something about classified documents? 

Mr. Morris. Yes. 

Mr. CoE. As you know, I have been before a lot of these committees, 
and I notice that very often, questions seemed designed to suggest that 
there is evidence of wrongdoing. If you have any evidence that I 
passed classified documents improperly to these or any other people, 
I think you ought to confront me with it. If you haven't got it here, 
I certainly want you to put it into the record and give me a chance to 
talk about it. If you don't have any evidence, well, then, I must con- 
clude that the purpose of your question is to throw a sinister cloud 
over something where the evidence is totally lacking. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2877 

Mr. Morris. Well, now, Mr. Coe, let me state this. In the first 
place, it is you who brought up this matter of reversing your past 
testimony. 

Mr. CoE. Yes. 

Mr. Morris. Now you are taking a position in opposition that you 
didn't take in the executive session a half hour ago. 

Mr. Coe. Tell me about that. I don't know that that is a crime. 

Mr. Morris. No ; but we are trying to get at your position. 

Miss Reporter, would you come into the next room with me and read 
back some of Mr. Coe's testimony in the executive session. 

Mr. Coe. I now recall, Judge Morris, the incident I think you refer 
to — or several. 

Mr. Morris. There were two such instances. 

Mr. CoE. Or several, in which I was asked about the transfer or 
possible delivery of classified documents to one or another persons, 
improperly. 

I think I declined to answer because generally, in my own mind, 
as I said, I want to do everything possible to clear up questions of 
espionage. No evidence was presented to me in executive session on 
these matters, and it seemed to me that I was within my rights to 
decline. The question was now asked about even having thought of 
changing. It seems to me that though I had the right to protect 
myself if I wanted to by claiming the fifth amendment on that, I 
also have the right to drop it and not protect myself, take certain 
risks, put myself in jeopardy as to various laws and consequences, 
and since in general I have already decided to do that, I answered 
your question, and I will be glad to answer other similar ones. 

Mr. Morris. Thank you. 

Now, is it your testimony that you never transmitted classified 
documents to Ullman or Silvermaster, knowing that they would be 
given to others who were not privy to holding them? Not eligible 
to hold them ? 

Mr. CoE. Well, if you will amend that to say that I never passed 
classified documents to them illegally, without authority, or contrary 
to law, contrary to rules and regulations of the agencies in which I 
was working, then I believe — then my recollection is certainly that 
I never did. 

Mr. Morris. Will you answer without the qualification that you 
put on it, Mr. Coe ? 

Mr. Friedman. I think he gave more than you asked for. Judge 
Morris. 

Mr. Morris. Well, answer without the qualification. 

Mr. Coe. I don't believe I ever did. To the best of my recollection, 
I never did. I can't conceive that I ever did if the purpose was 
espionage or anything improper. 

Mr. Morris. Will you give me an answer without a qualification? 

Mr. CoE. I have given you the answer. I don't mean by my second 
statement to qualify, but to add. 

Mr. Morris. Wliat is your answer? 

Mr. Coe. The answer is that I have no recollection of doing that 
whatsoever. And I don't believe I ever did. 

Mr. Morris. Now, what classified documents have you transmitted 
to Silvermaster? 

Mr. Friedman. That is an unfair question. Judge Morris. 



2878 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Mr. Morris. Let me preface it by asking : have you transmitted any 
classified documents to Nathan Gregory Silvermaster? 

Mr. CoE. I have no recollection that I ever gave Gregory Silver- 
master any classified documents whatsoever. There is a brief period 
of my Government emplo3'ment where it is quite conceivable that 
something I wrote or my staff wrote was transmitted by my secretary's 
office or by me to his office, etc., in the regular line of work. That is 
the only sort of exception which I should think would be common- 
sense, and I hope your question is not designed to entrap in any 
way on the basis of this. 

I passed classified documents in my Government capacity to lots of 
people. This whole case is built around the fact, or has been built up 
around the fact that I knew certain people whom I knew in my Gov- 
ernment work. Some of them worked for me. Of course, we were 
related. 

Mr. Morris. Do you have any knowledge that Ullmann duplicated 
documents in the basement of Silvermaster's home ? 

Mr. CoE. Except for the testimony of Bentley, which I have read 
and consider incredible, I have no such knowledge. 

Mr, Morris. So you have no independent knowledge that Ullmann 
duplicated any documents in the basement of the Silvermaster home? 

Mr. CoE. I certainly can't recall any. 

Mr. Morris. Is it your testimony that you never gave Ullmann any 
document except in the course of your official dealings with him? 

Mr. Friedman. Classified? 

Mr. Morris. Classfied documents except in the course of your official 
duties. 

Mr. CoE. That's correct. 

Mr. Morris. And you never gave Ullmann any documents with the 
knowledge that he would transmit them to any unauthorized person ? 

Mr. CoE. Certainly not. 

Do you have any evidence. Judge Morris ? 

Mr. ]\IoRRis. Because the responses of Mr. Coe differed from what 
they were in executive session testimony and from his previous ap- 
pearance before this committee, it has been necessary to defer until 
this time the subject matter of the hearing that we planned today. 
Senator, it was certainly not the intention of the staff to go back over 
material that we had covered a year ago. That was necessitated by 
the insertion of Mr. Coe's statement into the record.^ 

Mr. Coe, what are you doing now ? 

Mr. Coe. I am unemployed. I consider it the result of this and 
similar committees. 

Mr. Morris. Wliat was your last job ? 

Mr. Coe. I think I have had no regular job since I left the Inter- 
national Monetai-y Fund. 

Mr. Morris. That is in December 1952. 

Mr. CoE. Yes. I can recall a fee from some news agency, for writing 
a few pages. There may have been other instances. But aside from 
that, I have been unable to find work. 

Mr. Morris. How have you been making a living since that time? 
Mr. Coe. I have supported myself on savings, largely. A few loans. 
Mr. Morris. Are you a Communist now, Mr. Coe ? 



1 Coe's statement appears at the conclusion of the testimony. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2879 

Mr. CoE. That is the same question that I informed you earlier on 
what my answer throughout this hearing would be. Do you want to 
keep repeating it ? 

Mr. I^IoRRis. It has been hard to trace the consistency of your an- 
swers. What is your answer to that question? I haven't asked it 

Mr. CoE. I will make it quite clear as I thought I did with regard 
to the half dozen or dozen other times it seemed to me you asked the 
question. 

Though I shall talk quite freely and wish to talk on questions of 
espionage or any allegation of improper conduct of myself, and 
indeed of others, while I was a Government employee 

Senator Jenner. I believe the question now is are you a Communist 
now? 

Mr. Coe. Yes. I understand. I don't want to answer any ques- 
tions under compulsion about my political affiliations or about any- 
body else's political affiliations. Therefore, on the same grounds that 
I declined a moment ago, I decline now to answer. 

Senator Jenner. That includes the fifth amendment? 

Mr. Coe. That includes my right not to be a witness against myself. 

Senator Jenner. It is the same record. 

Then you consider the Communist Party affiliation as a political 
affiliation ? 

Mr. CoE. It is called a party. 

Senator Jenner. Do you consider it a political party in the same 
sense that you consider a Republican or Democratic Party in this 
country ? 

Mr. Coe. May I consult ? 

Senator Jenner. You may consult. 

Mr. CoE. Well, I suppose in order to assist the committee and the 
judge and to take a consistent course that, since that is a question 
of political belief, opinion, or may be interpreted so, I will decline 
for reasons previously given. 

Senator Jenner. Same record. Miss Reporter. 

Mr. Morris. Mr. Chairman, the committee has received from the 
three farm organizations, the National Grange, the American Farm 
Bureau Federation, and the National Council of Farmer Cooperatives, 
a file of papers with the following letter of transmittal : This is dated 
May 4, 1956, sent to the Honorable James O. Eastland of the Senate 
Internal Security Subcommittee. 

Dear Senator Eastland : On the invitation of Robert Morris, chief counsel 
of the Senate Internal Security Subcommittee, we are forwarding a staff report 
containing information with respect to certain phases of United Nations opera- 
tion which we believe merit study and investigation by your subcommittee. 
Each of the organizations which we represent has supported the United Nations 
and has sought to cooperate in the development of international programs to 
promote economic expansion and world peace. The attached information seems 
to provide the basis for concern as to the internal-security implications of some 
of the developments in this field ; however, we do not have the authority or 
staff to make the sort of investigation necessary to establish the validity — or 
lack of validity — of this information. Consequently, we cannot determine 
what conclusions, if any, are justified. 

We solicit the assistance of your subcommittee and its staff with regard to 
this matter. 



2880 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

That is signed, Herschel Newsom for the National Grange, Charles 
B. Shiiman for the American Farm Bureau Federation, and Homer 
L. Brinkley for the National Council of Farmer Cooperatives. 

Mr. CoE. Is that to be the basis of questions directed to me? 

Mr. Morris. We have just a few questions on that score. 

Mr. CoE. Could I see the letter, Judge Morris ? 

Mr. Morris. You may. 

Mr. Chairman, I would like to take this out of order so that we can 
relieve Mr. Coe of his further appearance here on this subject. 

Senator Jenner. Yes. 

Mr. Morris. The portion of this file which bears on Mr. Coe reads 
as follows: 

The New York Times of December 4, 1952, reported: "The International 
Monetary Fund announced today — December 3, 1952 — the dismissal of its secre- 
tary, Frank Coe, who refused last Monday to tell Senate investigators in New 
York whether he was now or had ever been a Communist or subversive agent 
taking orders from Communists." 

In the same story, the New York Times also said: "As secretary of the 
agency— International Monetary Fund— from its inception, Mr. Coe participated 
in all meetings of its Board of Governors or Directors." 

It was in these meetings of the IMF Board of Governors that instructions were 
formulated on the position to be taken by the representative of the International 
Monetary Fund in negotiations which were held between March and June 1949 
with U. N. and other specialized agencies on the subject of an expanded technical- 
assistance program. The position of the International Monetary Fund through- 
out these negotiations was to oppose establishment of a central fund under U. N. 
control to finance the proposed expanded progi-am. 

So firmly opposed was the International Monetary Fund to central financing — 
and the program control which inevitably follows — that when the central 
fund was established under U. N. administration, the IMF refused to participate 
in the U. N. expanded technical assistance program, beyond sending observers 
to meetings. It has never accepted money from the U. N. fund. 

W^hile it is certain that V. Frank Coe knew the position of his own agency 
regarding a central fund under U. N. control, records have been turned up 
which reveal that, as early as March 10, 1949, he circulated notes on a plan 
which parallels the central-fund operation of the present U. N. expanded tech- 
nical assistance program — which was not adopted by U. N.'s Economic and Social 
Council until August 1949. 

Throughout the period of negotiations among the international agencies on 
the expanded technical assistance proposal — March-May 1949 — David Wein- 
traub was the spokesman for U. N., and espoused the same plan as that circulated 
by V. Frank Coe. All of the specialized agencies strongly opposed this plan, 
and advocated a system of decentralized financing designed to strengthen and 
enlarge the technical-assistance programs which they were already conducting 
under the constitutional authority given them by their member governments 
to work in their respective technical fields. 

Examination of Coe's notes will show how closely they resemble the U. N. 
central-fund plan which was eventually sponsored by the United States delegation 
to U. N.'s Economic and Social Council in July-August 1949, and finally adopted 
by ECOSOC over the continued opposition of the specialized agencies. 

The following are excerpts from a paper circulated by V. Frank Coe on March 
10, 1949, listing proposals on technical assistance program — 

We are addressing ourselves to the memorandum in the form it is, 
because this is the memorandum we have received. I might point out 
that the three farm agencies, being semiofficial members of the FAO — 
that is, Food and Agriculture Organization, a specialized agency of 
the U. N. — can have access to documents which are not available to 
the congressional committee. They had access to the original of this 
document and they have made the notations that I have just read 
about it. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2881 

In other words, they said : 

Examination of Coe's notes, copy attached, will show how closely they resemble 
tlie U. N. central-fund plan which was eventually sponsored by the United States 
delegation to U. N.'s Economic and Social Council in July-August, 1949. 

Now I give you this paper, Mr. Coe, and I notice it says here : 

The following are excerpts from a paper circulated by V. Frank Coe on March 
10, 1949, listing proposals on technical assistance program. 

Do you recall that document ? 

Mr. CoE. No, sir ; but I would like to explain with regard to this and 
other documents. I think it will be helpful to the committee. 

As secretary of the fund, I must have circulated thousands of docu- 
ments of the Board of Directors, the staff, the governors. That, in 
fact, was my job, or one of my jobs, to circulate documents, to see that 
they got to the people who had to consider them, who had to decide 
what to do about it. I had, of course, similar functions during my 
period of Government employment. 

Certainly, during the period when I was in the fund, most, perhaps 
90 percent, perhaps 99 percent, of the documents were documents not 
prepared by me, but by others. If they represented my views, it would 
have been a mere coincidence in many cases. If they didn't represent 
my views, I had no discretion whatsoever about circulating them. I 
was told to circulate proper documents given me by authorized per- 
sons. That is what I did. 

Therefore, first, the fact that these organizations say, in the letter 
to you, that my name was attached to a note circulating these documents 
has no meaning whatsoever, and I should think that would have been 
apparent to any person with commonsense. 

Mr. Morris. Mr. Coe, you have just said you cannot recall this 
particular document. 

Mr. CoE. May I complete my answer ? 

It is a long one but it will take care of the matter. 

Mr. Morris. We don't want irrelevant answers. We are wondering 
if you can recall this particular document ? 

Mr. CoE. No, sir ; and my answer is. Why not? 

This is now 7 years after. In the nature of the case, if you have a 
position where you circulate to scores of individuals hundreds and 
thousands of documents per year, it would be a miracle if you recalled 
any particular one, particularly one which is presented to you as an 
excerpt. 

I have grave doubts — I should say I am sincerely disturbed that this 
kind of document is brought up and is presented here in excerpted 
and incomplete form. I am quite familiar with techniques which are 
made to suggest by irrelevant material. If the covering note were 
presented here, the status of this document would be clear. If the 
whole document were here, the status of this document would be clear. 

May I interject to say that from a very brief perusal, I certainly 
would not think that it was any crime, or indeed anything of which 
I need be ashamed, to have circulated this document, even to have 
written it. 

Mr. Morris. But the point is, Mr, Coe, we would like to know 
specifically whether (a) you wrote this document, or (&) whether you 
in fact circulated this document, and is it your answer that you can't 
recall ? 



2882 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Mr. CoE, I cannot recall, but I think I can help the committee by 
saying that I have grave doubts that I wrote it. It appears to me 
from looking at it that it is not the kind of document that would have 
been in my competence or duties to write while I was in the fund. 

It appears to me to be in the style of language which is quite differ- 
ent from my own. 

Second, from sometliing which is said at the very beginning of the 
document, it suggests to me — "Attached ai'e some preliminary notes 
which might be laid before th^ Administrative Committee on Coor- 
dination at its meeting on the 18th of March." 

Now, it is dangerous, I know, in view of some of the farfetched 
perjury trials that have been brought, to guess, but I would like to 
guess, in order to be helpful to the committee, that this, if it was ever 
circulated by me, was merely a document obtained from some other 
source, and circulated by me to inform the Board of Directors of the 
fund of what some other body, perhaps a staff or other body within 
the fund, perhaps some outside body, was proposing to bring up at a 
meeting where some of our people — that is the fund people — would 
be present and would have to take part in the discussion. 

Mr. Morris. May I be specific ? Have you any recollection whatever 
about it? 

Mr. CoE. I have no independent recollection whatever. 

Mr. MoREis. You are not denying that you circulated this docu- 
ment ? 

Mr. CoE. No, sir. 

Mr. Morris. But you are saying that you do not believe you wrote 
this document ? 

Mr. CoE. I don't believe I did. 

Mr. Morris. Have you any knowledge where this document came 
from? 

Mr. CoE. I have no knowledge where it came from. 

Mr. Morris. Senator, the reason we asked Mr. Coe about this par- 
ticular document is that another document turned up, and this does 
not relate to Mr. Coe. This is dated March 21, 1949. I might say that, 
in connection with this last document which was circulated by Mr. Coe 
according to the only evidence before this committee, was, according 
to this very same paper, an expression of a stand which was against 
the stand taken by the International Monetary Fund at that time. 

I would like to point out that there is another document here, an 
office memorandum to divisional directors, from the Acting Director 
General, on the subject of point 4 considerations dated March 21, 1949. 

The Acting Director General of Food Agriculture Organization 
at that time was Sir Herbert Broadley, I believe his name was. 

In examining this docmnent, Senator, which was distributed — and 
the distribution appears on this document — to 21 different sources, 
in the name of the Acting Director General 

Mr. CoE. Of whom, may I ask ? 

Mr. Morris. The Acting Director General of Food Agriculture 
Organization — an 18-paragraph letter. 

Now Senator, the staff has gone over this. I would like to point 
out that paragraph 3 of the memorandum circulated by Mr. Coe reads : 

• * * two continuing subcommittees of the Administrative Committee on Coor- 
dination may be required — an Operation Committee to supervise operations and 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2883 

a suitable Finance Committee to attend to financial details. Both committees 
should consist of officials of U. N. and the specialized agencies of senior rank. 
The present working party might become the Operation Committee. 

That paragraph is precisely the same, word for word, as paragraph 
9 of the Sir Herbert Broadley recommendation. 

Paragraph 4 of the Coe paper, that is a paper described here as 
having been circulated by Mr, Coe, was exactly word for word of 
paragraph 12 in the Sir Herbert Broadley document. Paragraph 5- 
is word for word the same as paragraph 13. Paragraph 6 is identical 
to paragraph 14. Paragraph 7 is exactly identical to paragraph 15., 
Paragi-aph 9 is identical to paragraph 16. Paragraph 10 is identical 
to paragraph 17. 

Now, Mr. Coe, can you account in any way for how it is that the 
memorandum circulated by you on a subject in which you state a po- 
sition directly contrary to the position of the International Monetary 
Fund appears almost in toto in a memorandum circulated by the Act- 
ing Director General of the Food Agriculture Organization, at a time 
when the Food Agriculture Organization had a position directly con- 
trary to the position stated in your memorandum ? 

Mr. CoE. May T say with all politeness, first, that on the facts, 
or alleged facts as you have described them, you now seem to me to be 
misrepresenting them. 

Mr. Morris. You say I am misrepresenting them. 

Mr. CoE. I say you seem. 

Mr. ]MoRRis. How is that ? 

Mr. CoE. I will now explain how. 

First, I have yet to see the evidence from anybody. I have yet 
to see a direct statement by anybody that I even circulated this 
document. But it is quite conceivable that I did and I see no reason' 
to become alarmed about it. 

Two, you said something to the effect that the position I stated in 
this document — I sincerely doubt that this document contains any 
words whatsoever written by me representing any position of mine — 
again I have explained the reasons. 

Now what you 

Mr. Morris. Didn't that represent your position ? 

Mr. CoE. I don't laiow. I sincerely doubt that it does. 

Mr, Morris, Your testimony is that you can't recall this document, 
isn't it? 

Mr. CoE. That's right. What all of this seems to me to add up to 
is this — 

Mr. Morris. I submit that Mr. Coe's observations at this time are 
completely irrelevant. If there are some facts you can add to this, 
Mr. Coe, you may 

Mr. Friedman. I think he is trying to answer your questions in that 
formulation. 

Mr. Morris. All right. 

Mr. CoE. I am saying this because I don't want any sinister infer- 
ences drawn by you, the public or this committee, from what seems to 
me to be a perfectly normal Government operation. I doubt that 
any sensible person could draw such sinister inference from the facts 
as you have described them. 

Mr. Morris. You see, there you go now. 



2884 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Mr. CoE. You asked me why or how I account for the correspond- 
ence. 

My supposition, sir, is that somebody outside the fund, some group, 

or official body 

Mr. Morris. Is this a supposition, or do you know this, Mr. Coe? 

Mr. Coe. You asked me to account for the correspondence. 

Mr. Morris. If you can. 

Mr. CoE. Now, since I told you, to begin with, that I had no recol- 
lection of it whatsoever, obviously anything that I say is derived from 
my knowledge of fund operations and my answer is designed to dispel 
any fears you may have that my circulation, if I did circulate this 
document, was the result of some sinister conspiracy. 

The correspondence undoubtedly or presumably comes from the 
fact that both documents came from a common source. You read 
into the record a letter in which Broadley of the Food Agriculture 
Organization circulates something. I don't know whether he es- 
pouses the views of what he circulates, but he circulates it. You 
state, without showing the evidence, that I circulated something 
remarkably similar. 

JMr. Morris. We have stated the evidence, Mr. Coe. 

Mr. CoE. Wouldn't the normal, reasonable conclusion be that some- 
body in his official capacity, some organization, sent me something, 
asked me to circulate it, that it Avas my duty to circulate it, that like- 
wise this was done with Mr. Broadley and that that happened. 

Now, sir, again in a spirit of helpfulness, I think I can tell you 
how you can get to the bottom of this very quickly and from witnesses 
who are in a position to know the facts and who are not under the 
cloud of charges by this committee of having been spies. 

Mr. Morris. Mr. Chairman, in that connection, I suggest that we 
ask the International Monetary Fund if we could have the original of 
which this is a copy. 

Senator Jenner. The staff will be so ordered. 

Mr. Morris. The only evidence we have is the evidence transmitted 
to us by the three farm organizations, and they have access to evidence 
not available to the subcommittee. 

Senator Jenner. Direct the staff to make that request. 

Mr. Coe. Judge Morris, you can probably get more information 
even than you are asking for, if you go through the channel that I 
understand was the one. There is a United States director for the 
fimd. I believe his name is Frank Southard. He is a United States 
official. He has access to all their documents. He could further, in 
case it turns out that I circulated this thing, further inquire there of 
the head of the fund whether, at the time this happened, it was per- 
fectly proper, indeed a duty of mine to circulate. 

Senator Jenner. The staff will pursue as suggested. 

Mr. Morris. I would like to call attention, before leaving that point, 
to the annotations made along the side, again by the three farm organi- 
zations, which shows that the recommendations of Mr. Coe's 

Mr. Coe. Judge Morris. Please don't keep putting in the record 
something that says that these are my recommendations, 

Mr. Morris. A paper which has been described as a paper circulated 
by Mr. Coe are, in fact, being practiced today, have been endorsed and 
are now in practice today with the various descriptions that appear 
in the marginal notes therein. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2885 

Senator Jenner. I suggest that tlie entire document referred to be 
incorporated into the record and be a part of the record. 
Mr. Morris. For instance it says here opposite paragraph 3 : 

Now exists as Technical Assistance Board (TAB). 

And it says opposite paragraph 4 : 

Now exists as Technical Assistance Committee (TAG). 

Mr. CoE. I can only observe that how this makes me out a spy is 
beyond me. 

Mr. Morris, There is no question like that pending. 

Senator Jenner. This will go into the record. 

(The document referred to was marked "Exhibit No. 303" and reads 

as follows: 

Exhibit No. 303 

[Emphasis and numbered footnotes on this and following exhibits, together 
with all captions therein, were supplied by the representatives of the three farm 
organizations who furnished the material to the subcommittee.] 

V. FRANK COE 

The New York Times of December 4, 1952, reported: "The International 
Monetary Fund announced today (December 3, 1952) the dismissal of its 
secretary, Frank Coe, who refused last Monday to tell Senate investigators in 
New York whether he was now or had ever been a Communist or subversive 
agent taking orders from Communists." 

In the same story, the New York Times also said : "As secretary of the 
agency (International Monetary Fund) from its inception, Mr. Coe participated 
in all meetings of its Board of Governors or Directors." 

It was in these meetings of the IMF Board of Governors that instructions 
were formulated on the position to be taken by the representatitve of the Inter- 
national Monetary Fund in negotiations which were held between March and 
June 1949, with U. N. and other specialized agencies on the subject of an ex- 
panded technical assistance program. The position <>f the International Mone- 
tary Fund throughout these negotiations was to oppose establishment of 
a central fund under U. N. control to finance the proposed expanded program. 

So firmly opposed was the International Monetary Fund to central financing 
(and the program control which inevitably follows) that when the central fund 
was established under U. N. administration, the IMF refused to participate in 
the U. N. expanded technical assistance program, beyond sending observers to 
meetings. It has never accepted money from the U. N. fund. 

While it is certain that V. Frank Coe knew the position of his own agency 
regarding a central fund under U. N. control, records have been turned up which 
reveal that, as early as March 10, 1949, he circulated notes on a plan which par- 
allels the central-fund operation of the present U. N. expanded technical assis- 
tance program (which was not adopted by U. N.'s Economic and Social Council 
until August 1949). 

Throughout the period of negotiations among the international agencies on 
the expanded technical assistance proposal (March-May 1949), David Weintraub 
was the spokesman for U. N., and espoused the same plan as that circulated 
by V. Frank Coe. All of the specialized agencies strongly opposed this plan, 
and advocated a system of decentralized financing designed to strengthen and 
enlarge the technical assistance programs which they were already con- 
ducting under the constitutional authority given them by their member gov- 
ernments to work in their respective technical fields. 

Examination of Coe's notes (copy attached) will show how closely they 
resemble the U. N. central-fund plan which was eventually sponsored by the 
United States delegation to U. N.'s Economic and Social Council in July- August 
1949, and finally adopted by ECOSOC over the continued opposition of the spe- 
cialized agencies. 

The following are excerpts from a paper circulated by V. Frank Coe on 
March 10, 1949, listing proposals on technical assistance program (marginal 
notes are printe<l here as footnotes) : 



2886 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

"Technical Cooperation Towards Economic Development 

"suggestions for procedure 

"7. Attached are some preliminary notes wliich might be laid before the 
Administrative Committee on Coordination at its meeting on IS March when 
it discusses the whole question, or alternatively presented to the Working Party 
at its opening meeting. 

"Preliminary Notes for Consideration by the Administrative Committee on 

Coordination or the Working Party 

"3. * * * two continuing Subcommittees of the Administrative Committee on 
Coordination may be required — an Operation Committee to supervise operations 
and a suitable Finance Committee to attend to financial details.^ Both com- 
mittees should consist of officials of U. N. and the Specialized Agencies of senior 
I'ank. The present Working Party might become the Operation Committee. 

"4. It will probably be necessary to envisage a Government Committee con- 
sisting of representatives of the Government which contribute" substantial 
amounts to the Operational Fund. This Committee should report to the General 
Assembly through ECOSOC. It should not attempt to examine the details of 
particidar schemes, but should adjudicate on broad programs submitted to it 
annually through the ACC from the Operations Committee. It should also 
receive and deliberate on annual reports from the same Committee on each 
year's progress. (An alternative to this suggestion would be for ACC to assume 
the functions proposed for the Government Committee proposed in paragraph c 
(c. ways of coordinating the planning and execution of the programme) and to 
report directly to ECOSOC. 

"5. The Operational Fund should be a single fund,^ even though it might 
comprise various currencies. The annual programs should be financed by ovei'all 
grants, not particular sums from particular contributors for expenditures on 
particular projects in specified countries. The Operation Committee would make 
the appropriate simis available to the different bodies and Agencies for expendi- 
ture on the share of activity which each undertook in the specific or comple- 
mentary projects. 

"6. It would be contemplated that certain Governments would continue to 
make funds available on a bilateral basis for development activities in countries 
in which they had a special interest. These activities should be related to in- 
ternational activities operated through U. N. and the Specialized Agencies and 
effective liaison would have to be established to ensure that the benefits accruing 
from bilateral activities were available for use or adaptation in international 
schemes. It will be necessary for the Operational Committee to be informed of 
bilateral activities, as it will be necessary for the Committee to be aware of them 
in planning the U. N. development schemes. 

"7. It will also be necessary for the Operation Committee to be fully infoi-med of 
the technical activities of the U. N. and Specialized Agencies in fields outside 
(but related to) those planned for financing from, the Operational Fund.* Such 
outside projects may have considerable bearing on the development schemes 
themselves. 

"8. In framing schemes of development it will be desirable for the Operation 
Committee to prepare them on broad functional bases rather than in relation to 
the field of activity of each Agency. 

"9. The Governing Bodies (or Annual Conferences) of the various Specialized 
Agencies will take note of the scope or nature of programs of development pre- 
pared by the Operation Committee and approved in principle by the Committee of 
Contributing Governments. Operation Committee will, however, be guided by 
general principles which the Conferences of the Specialized Agencies may lay 
down on the subject of development and the Conferences will necessarily be 
responsible for seeing that their Agencies carry out development projects as 
efficiently as possible. 

"10. In allocating sums to U. N. or Specialized Agencies for development proj- 
ects, alloicance loould have to be made for the general increase in operational 



1 Now exists as Technical Assistance Board (TAB). 

* Now exists as Technical Assistance Committee (TAG). 

3 Now exists as U. N. "Special Account" — or Central Fund — for expanded technical 
assistance program. 

* Bid to ln-injr regular programs under supervision of central authority. Eventually 
accomplished by USSR res. in ECOSOC, July 1949. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2887 

and overhead costs tvhich ivotild he involved. FrohaUy some 20% additional 
sums would he required to cover this. Such continyenci/ could be covered by 
part of the Operational Fund being allocated to increase regular budgets and 
part for specific projects.'' 

"12. The report of the Workins Party must embody specific projects to be 
undertaken in the first year or two. The whole problem of development is a 
long-term one, partly because projects will gradually expand to full effectiveness, 
and partly because continuing commitments must be entered into. Therefore 
a 10-year program should be envisaged. Such program must itself develop and 
change. It cannot be worked out in detail in advance. Its supervision and 
development will be a matter for Operation Committee. 

"13. Initial steps of a 10-years' scheme will be the assessment of resources and 
the preparation by underdeveloped countries (with technical assistance) of for- 
ward plans and programs. It will be in the carrying out of these plans that tech- 
nical assistance aid will be given and ultimately capital investment needed. * * * 

"14. Nevertheless, even in the early period of assessment and planning, certain 
technical activities can be undertaken — eliminating human, animal, and crop 
diseases, introducing mcw strains of animals and crops.^ There are many fields 
of development where technical aid alone will be sufficient to produce results and 
little or no capital investment required. 

"16. It will be necessary for the Working Party to present a budget and an 
allocation of financial expenditure on the various items for the first year. There- 
after this will be the responsibility of the Operation Committee and its Finance 
Committee. * * * 

"17. Administrative Committee on Coordination must delegate to Operation 
Committee responsibility for recommending projects and priorities for implemen- 
tation, including the rejection of unsuitable projects^ Priorities will vary from 
time to time and from country to country. Flexibility of operation must be 
maintained. * * * 

[Excerpt from article "Soviet Spy Rings Inside U. S. Government," U. S. News & World 

Report] 

Virginius Frank Coe 

The Berle memorandum of 1939 contains the names of Frank Coe and his 
brother Charles (Bob) Coe. In 194S Miss Bentley publicly brought forth in testi- 
mony that Frank Coe was a member of her espionage ring. Yet, when the sub- 
committee subpenaed Coe in December 1952, he held the position of secretary of 
the international Monetary Fund at $20,000 a year.s 

Virginius FrarLk Coe first worked for the United States Government in 1934. 
Since then he has held positions in Federal Security Administration, the National 
Advisory Defense Council, Monetary Research Division of the Ti-easury Depart- 
ment (Assistant Director and Director), Joint War Production Committee of the 
United States and Canada (executive secretary). Board of Economic Warfare 
(assistant to the Executive Director), Foreign Economic Administration (Assist- 
ant Administrator). He was the technical secretary of the Bretton Woods 
Monetary Conference in 1944 when the articles of agreement were drafted setting 
up the International Monetary Fund. The International Monetary Fund handles 
assets of between $7 and $8 billion and it is a specialized agency of the United 
Nations. 

Coe refused to answer, on the ground that the answers might incriminate him, 
all questions as to whether he was a Communist," whether he had engaged in 
subversive activities, or whether he was presently a member of a Soviet espionage 
ring. He refused for the same reason to say whether he was a member of an 
espionage ring while technical secretary of the Bretton Woods Conference, 
whether he ever had had access to confidential Government information or 
security information, whether he had been associated with the Institute of Pacific 
Relations, or with individuals named on a long list of people associated with the 
organization. It was noted that he did answer questions as to his relationship 



' Budget involvement of regular work of agencies tlirough contribution from Special 
Technical Assistance Fund. 

8 Had been done by FAO for previous 3i^ years. 

^ Now done by TAB executive cliairman. 

** Hearing before tlie Subcommittee on Activities of United States Citizens Employed by 
the United Nations, pp. 227-256. 

" In 1948 he denied Communist Party membership. 

72723— 57— pt. 42 2 



2888 SCOPE OF SOVIET ACTIVITY IN THE XJNITED STATES 

with Jacob Viner, Milo Perkins, Leo Crowley, and Evar Rootli but refused to 
answer questions with respect to his relationship with Harry Dexter White, Alger 
Hiss, Philip C. Jessup, Solomon Adler, Lauchlin Currie, INIichael Greenberg, 
Constautine Oumansky, and a long list of others. He testified as to how he got 
his first Government employment, but refused to say how he obtained his subse- 
quent positions. Coe was dismissed by the International Monetary Fund a few 
days after his testimony on December 3, 1952. 



March 21, 1949. 
Office Memobandum 
To : Divisional Directors. 

From : Acting Director-General [initialed HB 21/5] 
Subject : Point 4 Considerations 

At the meeting held at Lake Success on March 18 it was agreed to set up a 
working party to make recommendations regarding the ECOSOG resolution. The 
working party will meet formally at Lake Success on April 4. It will be preceded 
by informal discussions in Washington by those members of the working party 
who are able to attend. 

I attach for the information of Directors a memorandum which has teen 
prepared in FAO ^ setting out a number of considerations to be examined by the 
working party. 

In the meantime, the memorandum on an operational program prepared in 
FAO will be revised by Mr. McDougall, Mr. Gove Hambidge, and Mr. Olsen in 
consultation with the members of the divisions who have made suggestions on the 
original draft document. 

Technical Cooperation Toward Economic Development 

suggestions fob procedure 

1. The United States resolution calls upon the ACC to prepare a report. Such 
a rei)ort can only be prepared by a special working party on which the interested 
divisions of the U. N. and the specialized agencies primarily concerned are rep- 
resented. Other international interests would probably be entitled to present 
their views to the working party and later express them on the ACC. 

2. The working party will report to the ACC of which the Secretary-General of 
U. N. is chairman. It would be an advantage if the chairman of the working 
party is provided from one of the specialized agencies, or was possibly obtained 
from an independent source. 

3. In that the Bank, Fund, FAO and the United States Government (with 
whom consultation will probably be necessary) are located in Washington, it 
would be advisable for the working party to operate in Washington, or at least 
start work in that city. 

4. In that the working party will be concerned with issues of paramount im- 
portance, its membership should consist of senior oflBcials of the U. N. and spe- 
cialized agencies. The U. N. and each agency should each appoint two repre- 
sentatives — a senior official to deal with policy issues and one less senior to act 
in a secretarial capacity. 

5. The senior members would meet from time to time to discuss and determine 
main issues. The secretarial inemhers ivould be in constant session and would 
constitute the secretariat of the working party. They would prepare papers 
required for consideration by the senior members and would be responsible for 
assembling material required for the report. In this way the secretariat would 
not be provided by any one organization. 

6. The work of the party would probably occupy 4 to 6 weeks. It should 
start work as soon as possible — not later than March 28. The senior members 
would participate for the opening sessions of 2 or 3 days and then meet fre- 
quently as required. The secretarial representatives from each organization 
would keep in close touch with their senior (policy) members. 

Preliminaey Notes fob Consideration by the Working Party* 

1. The report should be prefaced by an introduction outlining the scope of the 
problem, the nature of the development contemplated, its objectives and the 



1 See V. Frank Coe Ktatement of March 10. 1949. 

* Note Bimilarity to V. Frank Coe statement circulated on March 10, 1949 (copy attached). 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2889 

necessary internal conditions to insure that development measures are fully 
effective. 

2. The working party must prepare an initial plan, with the necessary financial 
estimates for the first year, and also devise the appropriate machinery for allo- 
cating the available financial resources to the various parts of the program and 
for continuing supervision, development, and review of a long-term scheme. 

3. In framing schemes of development it will be desirable for the working 
party to prepare them on broad functional bases rather than in relation to 
the field of activity of each agency. The same principle must be maintained in 
the operations of such continuing machinery as may be established. 

4. In preparing a comprehensive program, the working party will require 
detailed plans from all agencies. FAO can cover food, agriculture, fisheries, 
forestry ; WHO, health projects ; ILO, questions of manpower and labor 
supply ; UNESCO, educational projects. No agency covers the fields of industry 
and transport. These are matters in which the Bank, the Economic Division 
of U. N. and ITO (IC) are all concerned. 

5. The report of the working party must embody specific projects to be under- 
taken in the first year or two. The whole problem of development is a long-term 
one, partly because projects will gradually expand to full effectiveness, and 
I)artly because continuing commitments must be entered into. Therefore a 10- 
year program should be envisaged. Such a program must itself develop and 
change. It cannot be woi'ked out in detail in advance. Its supervision and 
development will be a matter for the continuing machinei'y. 

6. The initial steps of a 10 years' scheme will be the assessment of resources 
and the preparation by underdeveloped countries (with technical assistance) of 
forward plans and programs. It will be in the carrying out of these plans that 
technical aid will be given and ultimately capital investment needed, as envis- 
aged in paragraph (18). 

7. Nevertheless, even in the early period of assessment and planning, certain 
technical activities can be undertaken — eliminating human, animal, and crop 
diseases, introducing new strains of animals and crops. There are many fields 
of development where technical aid alone will be sufficient to produce results and 
little or no capital investment required.* 

8. Early attention must be given to the provision and training of technicians. 
In this connection the enlistment of the active interest of the great universities 
and technical institutions would be of first-class importance. Fellowships and 
other methods of supplying new experts in many fields must be an early project. 

9. Two continuing subcommittees of the ACC may be required — an Operations 
Committee to supervise operations and a suitable Finance Committee to attend 
to financial details. Both committees should consist of officials of U. N. and the 
Specialized Agencies of senior rank. The present working party might become 
the Operations Committee. The secretariat required for servicing the Operations 
Committee and finance committees of ACC should be provided jointly by the U. N. 
and participating Agencies, and should be located at the place most convenient 
for contact with the operating bodies (possibly Washington). The secretariat 
might be constituted by each agency or other participant providing two mem- 
bers — a senior policy member and a secretarial assistant. 

10. It will be necessary for the working party to present a budget and an 
allocation of financial expenditure on the various items for the first year. There- 
after this will be the responsibility of the Operations Committee, and its Finance 
Committee. Expenditure during the early years will be less than during later 
years and it may be possible to allocate part of the appropriations for the early 
years to demonstrational undertakings and pilot plants for which commitments 
might be entered into during the first year or two, but expenditure not actually 
incurred until later. 

11. ACC must delegate to Operations Committee responsibility for recommend- 
ing projects and priorities for implementation, including the rejection of un- 
suitable projects. Priorities will vary from time to time and from country to 
country. Flexibility of oi)eration must be maintained. Grants will be made to 
overall projects in which several agencies may be carrying out complementary 
activities — but each agency will be responsible for its aspect of the project and 
for the expenditure on that aspect. Once an agency has been charged with 
responsibility for some work there will be no detailed control or interference, 
except on the basis of recommendations made on the annual report. Each agency 



* These are from Coe statement of March 10, 1949. 



2890 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

will recruit and direct its own technical personnel, in all fields of work which 
are the responsibility of that agency. 

12. It will probably be necessary to envisage a government committee consisting 
of representatives of the governments which contribute substantial amounts to 
the operational fund. This Committee might report to the General Assembly, 
perhaps through ECOSOC. It should not attempt to examine the details of 
particular schemes, but should adjudicate on broad programs submitted to it 
annually through the ACC from the Operations Committee. It should also 
receive and deliberate on annual reports from the same Committee on each 
year's progress. (An alternative to this suggestion would be for ACC to assume 
the functions proposed for the Government committee proposed in paragraph 3 
and to report directly to P]COSOC.) 

13. The operational fund should be a single fund, even though it might comprise 
various currencies. The annual programs should be financed by overall grants, 
not particular sums from particular contributors for expenditure on particular 
projects in specified countries. The Operations Committee would make the ap- 
propriate sums available to the different bodies and Agencies for expenditure 
on the share of activity which each undertook in the specific or complementary 
projects. 

14. It would be contemplated that certain governments would continue to make 
funds available on a bilateral basis for development activities in countries in 
which they had a special interest. These activities should be related to inter- 
national activities operated through U. N. and the Specialized Agencies and 
effective liaison would have to be established to ensure that the benefits accruing 
from bilateral activities were available for use or adaptation in international 
schemes. It will be necessary for the Operations Committee to be informed of 
bilateral activities, as it will be necessary for the Committee to be aware of them 
in planning the U. N. development schemes. 

15. It will also be necessary for the Operations Committee to be fully In- 
formed of the technical activities of the U. N. and Specialized Agencies in fields 
outside (but related to) those planned for fluaucing from the operational fund. 
Such projects may have considerable bearing on the development schemes them- 
selves. 

16. The governing bodies (or annual conferences) of the various Specialized 
Agencies will take note of the scope or nature of programs of development pre- 
pared by the Operations Committee and approved in principle by the Committee of 
Contributing Governments, if that is established. Operations Committee will, 
however, be guided by general principles which the conferences of the Specialized 
Agencies may lay down on the subject of development and the conferences will 
necessarily be responsible for seeing that their agencies carry out development 
projects as efficiently as possible. 

17. In allocating sums to U. N. or Specialized Agencies for development 
projects, allowance would have to be made for the general increase in operational 
and overhead costs which would be involved. Probably some 20-percent additional 
sums would be required to cover this. Such a contingency could be covered by 
part of the operational fund being allocated to increase regular budgets and 
part for specific projects. 

18. Ultimately the technical aid provided will lead to extended developments 
for which capital investment will be required. In planning development projects 
regard should therefore be had to resources available from : 

i. The special operational fund, 

il. The resources of the International Bank, 

iii. Capital available from Governments or private sources. 



[Copy of an interoffice memorandum sent by an ofl[icial of an international 
organization to the officer who was representing still another international organ- 
ization in negotiations then in progress on establishing the U. N. expanded techni- 
cal assistance program.] 

April 5, 1949. 

To: . 

From : . 



Subject : Point 4 — United States position and central budget. 

I had lunch yesterday with , of the State Department, for the pur- 
pose of emphasizing our views on point 4 organization, particularly with regard- 
to financing. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2891 
After arguing in favor of a central budget for most of the time, 



finally said to me, in effect, "You are beating a dead horse, the United States will 
not accept a central budget for three reasons: 

(1) There is a general distrust of some of the U. N. personalities involved, 
particularly Weintraub. 

(2) The pressure from those United States Government departments having 
direct relationships with certain Specialized Agencies (Agriculture — FAO, 
Public Health— WHO, CAA — ICAO, Treasury— Bank and Fund) will tend to 
counterbalance the single budget ideas in State and Bureau of the Budget. 

(3) There is a growing distrust of the idea of setting up a budget to 

which the United States will contribute 60 to 70 percent and which will 

control activities indistinguishable in general from those of agencies to which 

the United States contributes only 30 to 40 percent. 

This argument is, to me at least, a new one, but might well be borne in mind 

in connection with organizing future discussions on this subject. 

Mr. Morris. I would like to put into the record, too, a paper from 
the farm organizations, speaking with the authority that is in the cov- 
ering letter, a paper which shows the position of the Communist na- 
tions on centralization of technical assistance authority in the United 
Nations. 

I will just sketch this out. Senator. The thing is a full paper, run- 
ning approximately 20 or 30 pages. 

From ECOSOC document, the summary record of the 57th meeting: Mr. Ras- 
sadin (Union of Soviet Socialist Republics) recalled and stressed his Govern- 
ment's attitude toward the use of the technical assistance funds. The special 
fund, established by contributions from member states, should be used directly 
by the United Nations and not through the specialized agencies. 

From records of the 9th Session of the Economic and Social Council, July- 
August 1949 — on agenda item of proposed expanded technical assistance pro- 
gram : 

Mr. Katz-Suchy (Poland) : The (U. N. Economic and Social) Council should 
assume direct responsibility for working out the plans, and for formulating the 
policy and coordinating the activities of the regional commissions and specialized 
agencies active in the field of economic development and technical assist- 
ance * * * the (Economic and Social) Council itself, or a special body set up by 
it, should determine priority needs in development schemes. There should be 
a central fund under supervision of the Council, since any other method would 
encourage the introduction of unhealthy political factors. 

There are in that paper several other indications, in fact many other 
indications, that the position taken in the paper circulated by Mr. Coe, 
which again was reflected in the paper circulated by Sir Herbert 
Broadley, that that position was identical to the position of the Union 
of Soviet Socialist Republics for the Technical Assistance Committee 
and the attitude of Mr. Katz-Suchy of Poland. 

Senator Jenner. The entire document will go into the record and 
become a part of the official record for this committee. 

Mr. Morris. Before putting it into the record, I would like to point 
out that there is a notation here that at this time, earlier and up to 
this time — third page: 

The most complete picture of what the United States had in mind in 1943 ap- 
pears in President Roosevelt's speech at the close of the Food and Agriculture 
Conference (June 7, 1943). 

It should be noted that, in the above presidential statement, there is no infer- 
ence that the political problem would call for a centralized or supervisory posi- 
tion in the future structure of international relationships. In fact, the state- 
ment is clear that political relationships are equally important (and inter- 
dependent) with other problems facing nations in economic and social fields. 

There is in that paper, too, a statement of Willard L. Thorp, United 
States representative in the Economic and Social Council, Ninth Ses- 



2892 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

sion, Geneva, July 21, 1949, on the proposed expanded technical assist- 
ance program. That is the time subsequent to the circularization of 
this paper. There is a statement of our position, which I will read. 

There are several different possible methods of financing the programs. They 
are closely related to the manner in which the programs are themselves deter- 
mined. If there were to be some single agency, either the United Nations or 
a new agency, which was to make program decisions from time to time and 
allocate funds to the appropriate agencies, then a single fund would presumably 
be established. If, at the other extreme, the specialized agencies were to have 
complete responsibility in determining their programs, other than mutual con- 
sultation, completely separate budgets would be the proper form of financing. 

The method of developing the programs which I have suggested provides for 
a determination of allocations of various levels of contributions through review 
of ECOSOC (the U. N.'s Economic and Social Council) of the proposals of the 
participating agencies, and subsequent approval by the General Assembly » * *. 
If the ECOSOC should adopt the programing procedure which I have suggested, 
then the appropriate procedure for financing would need to be somewhat differ- 
ent from that suggested in the Secretary-General's report (which called for 
decentralized financing). 

That statement seems to indicate, Senator, that our position was 
between what he describes as two extremes. I would like that whole 
thing to go into the record. 

Senator Jenner. It will go in and become part of the record. 

(The document referred to was marked "Exhibit No. 304" and is as 
follows:) 

Exhibit No. 304 

POSITION OF COMMUNIST NATIONS ON CENTRALIZATION OF 
TECHNICAL ASSISTANCE AUTHORITY IN THE U. N. 

From ECOSOC document E/TAC/SR.57— December 9, 1953— 16th Session, 
Technical Assistance Committee — Summary Record of the 57th Meeting : 

"Mr. Rassadin (Union of Soviet Socialist Republics) recalled and stressed his 
Government's attitude towards the use of the (technical assistance) funds. 
The Special Fund, established by contributions from member states, should be 
used directly by the United Nations and not through the specialized agencies." 

From records of the 9th Session of the Economic and Social Council, July- 
August 1949 — on agenda item of proposed expanded technical assistance pro- 
gram : 

"Mr. Katz-Suchy (Poland). The (U. N. Economic and Social) Council should 
assume direct responsibility for working out the plans, and for formulating the 
policy and co-ordinating the activities of the regional commissions and special- 
ized agencies active in the field of economic development and technical assist- 
ance * * * the (Economic and Social Council itself, or a special body set up 
by it, should determine priority needs in development schemes. There should 
be a central fund under supervision of the Council, since any other method 
would encourage the introduction of unhealthy political factors.'' 



ORIGINAL UNITED STATES POSITION ON CENTRALIZATION OF 
ECONOMIC AND SOCIAL AFFAIRS IN THE UNITED NATIONS 

UNITED STATES FAVORED SPECIALIZED AGENCIES 

By the time of the Moscow Declaration, however. United States thinking wag 
becoming clear in the matter of creating a series of specialized international 
organizations to deal with postwar problems. 

A 44-nation conference had been sponsored by the United States 6 months 
before the 1943 Moscow meeting, to explore means of continuing the collabora- 
tion of the wartime allies in food and agriculture. Under United States leader- 
ship, the conference had recommended that a permanent internati( nal organi- 
zation be established to work in these fields. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2893 

An Interim Commission on Food and Agriculture was formed in Washington, 
D. C, to draft a constitution and lay out the structure for the future Food and 
Agriculture Organization (FAO). This body had been at worls for more than 
3 months when the Big Four meeting in Moscow announced the intention to 
create an organization "for the maintenance of international peace and security." 

OTHER ORGANIZATIONS PLANNED 

Tliere is aniplv? evidence that the United States Government expected other 
international conferences to be held, similar to the one on food and agriculture, 
and aimed at establishing permanent international organizations to work in 
other technical (or specialized) fields. For example, the invitation sent by 
the United States to ask governments to attend the Conference on Food and 
Agriculture (dated March 30, 1943) opens with the statement: 

"The Government of the United States of America is of the opinion that it is 
desirable now for the United Nations and those nations which are associated 
with them in this war to begin joint consideration of the basic economic problems 
with which they and the world will be confronted after complete military vic- 
tory shall have been attained. Accordingly, and as a first step in this direction, 
the' Government of the United States proposes to convene * * * a conference 
on food and other essential agricultural products, and hereby invites * * *." 

President Roosevelt, in his opening message to the delegates of the Food and 
Agiiculture Conference (May 17, 1943), also said: 

"In this and other United Nations conferences, we shall be extending our 
collaboration from war problems into important new fields * * *." 

Judge Marvin Jones, United States War Food Administrator and Chairman of 
the Food and Agriculture Conference, said in his opening address (May 18, 
1943) : 

"I greet and welcome you to this the first conference of the United Nations 
and Associated Nations * * * reflects a genuine desire on the part of all free 
peoples for a better understanding of our common problems and a united ap- 
proach to their solution. * * * This conference has rightfully been referred to 
as a forerunner of otlier conferences which unquestionably will have a part in 
shaping the postwar world * * *." 

WHTAT UNITED STATES HAD IN MIND IN 1943 

The most complete picture of what the United States had in mind in 1943 
appears in President Roosevelt's speech at the close of the Food and Agriculture 
Conference (June 7, 1943) : 

"* * * our goal in this field cannot be attained without forward action in other 
fields as well. Increased food production must be accompanied by increased 
industrial production and by increased purchasing power. There must be 
measures for dealing with trade barriers, international exchange stability and 
international investment. The better use of natural and human resources must 
be assured to improve the living standard ; and, may I add, the better use of 
these resources without exploitation on the part of any nation. Many of these 
questions lie outside the scope of the work you have undertaken, but their solu- 
tion is nonetheless essential to its success. They require, and shall receive, our 
united attention. 

"In the political field, these relationships are equally important. And they 
work both ways. A sound world agi-icultural program will depend upon world 
political security, while that security will in turn be greatly strengthened if each 
country can be assured of the food it needs. Freedom from want and freedom 
from fear go hand in hand." 

It should be noted that in the above Presidential statement there is no in- 
ference that the political problem would call for a centralized or supervisory 
position in the future structure of international relationships. In fact, the 
statement is clear that political relationships are equally important (and inter- 
dependent) with other problems facing nations in economic and social fields. 

BUSSIAN OPPOSITION CAME LATER 

Russian opposition to United States ideas did not crystallize until some months 
after the Moscow Declaration, when the full import of what was proposed be- 
gan to be clear to them from the constitution which was evolving in the Interim 
Commission of FAO. Then, they objected vigorously to any arrangement which 



2894 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

would permit technical ministries of governments to work with each other 
directly. 

The Russians insisted that all relationships among governments must be under 
strict political control, and they tried to prevail upon other governments I'epre- 
sented in the FAO Interim Commission to agree to place all of the technical 
organizations then being planned under the sui)ervision of an international politi- 
cal authority. 

The extent to which the United States had adopted the separate-agency idea 
is indicated by the fact that prior to Dumbarton Oaks, the United States Gov- 
ernment had initiated conferences to consider setting up autonomous inter- 
national organizations in seven different fields, as follows : 

May 18-June 3. 1043 : Food and Agriculture — 44 nations met at Hot Springs, Va. 

October 30, 1943 : Maintenance of International Peace and Security — Big Four 
(U. S. A., U. K., U. S. S. R., and China) met at Moscow. 

November 9, 1943 : Aid and Relief to Liberated Areas — 44 nations met in Wash- 
ington, D. C, to sign UNRRA Agreement. 

April 19, 1944 : Education — Conference of Allied Ministers of Education and 
a United States Education Delegation accepted a draft constitution to be sub- 
mitted to governments for a permanent organization. 

April 20-May 12, 1944: Labor — 40 nations met in 26th session of the Inter- 
national Labor Conference, at Philadelphia, to adopt "Philadelphia Charter," 
declaring international responsibilities for attention to postwar labor problems. 

July 1-22, 1944 : Stabilization of currencies — loans for rehabilitation or indus- 
trialization — 44 nations met at Bretton Woods, N. H., to draw up articles of 
agreement for International Monetary Fund and International Bank. 

As soon as Alger Hiss attained a position where he could influence State De- 
partment policies regarding international organizations, he moved rapidly to 
neutralize the results of the international conferences which had been held 
before he * * * (Remainder of paragraph not furnished.) 

UNITED STATES POSITION ON CENTRALIZATION OF AUTHORITY IN 
U. N. WHEN EXPANDED TECHNICAL ASSISTANCE PROGRAM WAS 
BEING ESTABLISHED 

Excerpts from the statement of Willard L. Thorp, United States Representative 
in Economic and Social Council, ninth session, Geneva, July 21, 1949, on the pro- 
posed expanded technical assistance program : 

"* * * The United States suggests that this Council (the U. N. Economic 
and Social Council) should determine the basic elements in a balanced program 
for recommendation in the General Assembly * * * The Council should judge 
the program put forward in the report (from the specialized agencies) on the basis 
of their contribution to effective economic development. It should determine 
in a $15 million program, for example, how much it is prepared to recommend 
for agriculture, how much for health, how much for education * * * 

"* * * the nature of the program, its priorities and emphasis, would be clearly 
formulated at this meeting (of ECOSOC) * * * 

"The second problem relates to the method of establishing and collecting con- 
tributions for this program. 

"The Secretary-General's report (prepared by the specialized agencies and 
U. N. in a joint working party) presents the consensus among the participating 
agencies that each agency would approach its membership separately, asking 
for sufficient funds in a supplemental budget to undertake their technical assist- 
ance activities * * * 

"There are several different possible methods of financing the programs. They 
are closely related to the manner in which the programs are themselves deter- 
mined. If there were to be some single agency, either the United Nations or a 
new agency, which was to make program decisions from time to time and allocate 
funds to the appropriate agencies, then a single fund would presumably be 
established. If, at the other extreme, the specialized agencies were to have 
complete responsibility in determining their programs, other tlian mutual con- 
sultation, completely separate budgets would be the proper form of financing. 

"The method of developing the programs which I have suggested provides for 
a determination of allocations of various levels of contributions through review 
by ECOSOC (the U. N.'s Economic and Social Council) of the proposals of the 
participating agencies, and subsequent approval by the General Assembly * * * 
If the ECOSOC should adopt the programing procedure which I have suggested, 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2895 

then the appropriate procedure for financing would need to be somewhat different 
from that suggested in the Secretarj^-General's report" (which called for decen- 
tralized tinancing). 

THE SPECIALIZED AGENCIES' POSITION ON CENTRALIZATION OF 

TECHNICAL ASSISTANCE AUTHORITY IN U. N. 

From the working party of the United Nations and specialized agencies on 
proposals for an expanded technical assistance program — submitted to the 
Economic and Social Council, May 20, 1949 : 

"chapter 6 — FINANCE 

"(1) Each oi-ganization, which considered it necessary, would establish a 
special budget for technical assistance for economic development and would 
invite its member governments to make contributions to this budget over and 
above their contributions to its normal budget." 



U. N.'S POSITION ON CENTRALIZATION OF AUTHORITY OVER 
EXPANDED TECHNICAL ASSISTANCE PROGRAM 

[Excerpt from article, "Technical Assistance for Economic Development — Outline of New 
Program," in United Nations Bulletin, June 15, 1949] 

In connection with the financing of the expanded cooperative program, various 
methods were examined and preferences for different methods expressed. 

It was — and remains — tJie vieto of the Secretary-Geiieral that in the interest 
of coordinated, action the most appropriate ivay of financing the program would 
he through the establishment of a single common fund into ivhich all special 
contrihiitions from govciiiments would be paid and out of which allocations 
tvould be made to the several international organizations to meet, subject to such 
broad policies as might be laid down by the Economic and Social Council and 
the General Assembly, the varying needs of governments for technical assistance 
as they arose. The majority of his colleagues from the specialized agencies 
were not able to subscribe to this position. They and he felt strongly, however, 
that the Council would wish that, in the preparation of the report requested 
from him, every effort should be made to reach agreed proposals. Accordingly 
agreement was reached on the following compromise : 

Each specialized agency, which considered it necessary, would establish a 
special budget for technical assistance for economic development and would 
Invite its member governments to make contrilnifions to this budget over and 
above their contributions to its normal budget. 

As for the United Nations, its special technical assistance budget would be in 
two parts, covering respectively (i) a program of technical assistance to be 
carried out by the United Nations itself; and (ii) a supplementary fund to be 
used by the Secretary-General in consultation with the Administrative Com- 
mittee on Coordination to finance technical assistance projects to be carried out 
jointly by the participating organizations, and to supplement the technical 
assistance budgets of these organizations when additional funds are required 
to facilitate the execution of essential projects. 

In discussing the proposed program of technical assistance (9th Session of 
the Economic and Social Council, July-August 1949). 

Mr. Katz-Suchy, of Poland, said: 

''The {U. N. Economic and Social) Council should assume direct responsi- 
bility for working out the plans, and for formulating the policy and coordinating 
the activities of the regional commissions and specialized agencies active in the 
field of economic develoinnent and technical assistance * * * the {Economic 
and Social) Council itself, or a special body set up by it, should determine 
priority needs in development schemes. There should be a central fund U7ider 
the supervision of the Council, since any other method loould encourage the 
introduction of unhealthy political factors." — U. N. Bulletin, September 1, 
1949. 

Mr. CoE. Since yon have agreed to place this lon<^ document, which 
I have never seen, into the record of my hearing, I must presume or 



2896 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

can anticipate that it is designed not to enhance my reputation in 
some way and I would like to object to the procedure for the following 
reasons. 

Mr. Morris. Mr. Coe 

Mr. CoE. May I finish my objection, please, sir? I listened while 
you read a long document. You asked me no questions about it. 

Mr. Morris. There is no question now about it. I have listened 
to you, sir, time and time again, that we have been imputing to you 
some particular activity. I would like the record to show that as 
far as I am concerned there has been no imputation whatever. I think 
whatever inferences have been drawn by anybody has been as the 
result of your own behavior before this committee, Mr. Coe, and don't 
think anybody in this committee or otherwise has made accusations 
against you, 

Mr. CoE. I think you called me a spy publicly and circulated docu- 
ments all over the Nation about me. It was circulated as a document 
of Eepublican campaign literature. So I think my fears of infer- 
ences are justified. 

I would like to say that I feel I am being smeared here. It is being 
said or implied — an unaware reader might get the impression that 
Coe circulated a document once — even though the evidence isn't here 
that I did — advocating the channeling of aid through the United 
Nations. Katz-Suchy, it said, advocated that. He is a Communist. 
Coe is an alleged spy. Many reputable people, as you know, are today 
advocating that. That report is an implication that the channeling 
of aid through the United Nations is some peculiar Communist plot. 

I wish to state in the record here that the evidence for that, so far 
as it concerns me, seems to be totally nonexistent. 

Mr. Morris. I would like here to introduce the next paper, again 
from the source described, which reads in part : 

In the middle of 1952, the Technical Assistance Committee (TAG) reviewed 
the methods of operations of the TAB and recommended to the ECOSOC a num- 
ber of changes in the basic resolution (establishing the U. N. Expanded As- 
sistance Program — 222 (IX)). The Economic and Social Council at its 14th 
session accepted these changes, which provided for the appointment of an Ex- 
ecutive Chairman and a modification in the function and responsibilities of the 
Board. The Executive Chairman was given the task of reviewing all program 
proposals, either premliminary or final, with a view to developing balanced 
country programs, and he was to make such recommendations to the Board on 
all programs as he saw it. The Chairman was also to exercise continuous 
supervision of the program, and to ensure that all the Board's activities were 
adequately coordinated. And finally, special emphasis was placed on the role 
of the Resident Representatives. 

Now, according to the papers presented to the committee for our 
scrutiny and adjudication, there is a notation here that David Wein- 
traub was slated to get this job, but resigned under fire of Senate 
Internal Security Subcommittee before assuming it. David Owen 
later took it. 

Do you have any knowledge whether David Weintraub was to as- 
sume that position in 1952, Mr. Coe? 

Mr. CoE. I certainly do not. 

In 1952? I have no recollection of the matter whatsoever. 

Mr. Friedman. May I address the chairman? There are some 
documents being put into the record and copies being given to the 
press. But apparently there is no copy for me. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2897 

Mr. Morris. They don't relate directly to the witness here. 

Mr. Friedman. It is part of his hearing and I think I should have 
them. 

Mr. Morris. It is not his hearing. It is an analysis to find if there 
is anything to support a conclusion on the basis of transmittal of 
these'jpapers from the three farm organizations, representing as they 
do, official documents. Mr. Coe was one of the witnesses and where 
they are related to him, I think you have the papers. 

Mr. Friedman. Questions are being put to him with regard to all 
the documents. Is there any real objection to my having them? 

Mr. Morris. No, there is not. 

Senator Jenner. You may have them. 

Mr. Morris. This says : 

On January 8, 1947, a meeting was called at U. N. Headquarters by David 
Weintraub, Director of the Division of Economic Stability and Development, 
Department of Economic Affairs, U. N. 

Now, it says here, in the third paragraph — this is now document 
No. 5: 

A major part of the discussion centered around a draft paper circulated 
by Mr. V^^'eintraub. The principal section is quoted below. 

That speaks for itself, Senator. 

Then again there is a reference to a letter — 

dated January 10, 1947, from David Weintraub to participants in the meeting 
which he called on January 8, 1947, to discuss steps to be taken by the U. N. 
Secretariat toward attainment of "balanced" economic development, including 
provision of technical assistance. 

Although, as I told you at the meeting, this statement is not construed by 
us as necessarily reflecting the view of any of the agencies represented at the 
meeting, it will be used by the U. N. Secretariat as a guide in our own work. 

This whole paper bears on the activity of David Weintraub in in- 
itiating and supporting the development of this particular program. 

Senator Jenner. It will go into the record and become a part of 
the record. 

(The document referred to was marked "Exhibit No. 305" and is as 
follows : 

Exhibit No. 305 

Da\t:d Weintraub and U. N. Expanded Technical Assistance Fund 

(Central E^nd) 

DAVID weintraub 

During the planning stages of the U. N. expanded technical assistance pro- 
gram (ETAP), David Weintraub was the six)kesman for U. N. in its uncompro- 
mising drive to obtain centralized appropriation and budget, as well as 
centralized control by U. N. of the program. 
Highlights of David Weintraub's record : 

Born in Kozlow, Poland, 1904, in territory now western Ukraine. Came to the 
United States at the age of 17 years, and was naturalized when he was 22 years 
old. 

The United States Justice Department reported that there had been 43 deroga- 
tory FBI reports on Mr. Weintraub between January 31, 1945, and November 12, 
1952. (New York Times, January 2 and January 7, 1953.) 

During the period when the derogatory reports were being given to the Depart- 
ment of State, David Weintraub held the following positions : 
Chief, UNRRA Committee on Supplies, 1945-46. 
Deputy Director-General of UNRRA, 1946. 

Director, Division of Economic Stability and Development, U. N. Depart- 
ment of Economic Alfairs, 1946 to January 6, 1953. (Resigned as a result 
of investigation by Senate Internal Security Subcommittee.) 



2898 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Between March and June, 1949, David Weintraub and his staff in U. N.'s Di- 
vision of Economic Stability and Development (which included eight others later 
dismissed under United States security fire) prepared the U. N. position papers 
and laid the groundwork for establishment of central financing and U. N. control 
of programs in the expanded technical assistance program. 

Despite strong objections by all of the specialized agencies to central financing, 
including prior action by governing bodies of four of them (WHO, ILO, UNESCO, 
and FAO) approving a plan calling for decentralized financing, the United States 
delegation to U. N.'s ECOSOC led the figlit to establish the financial system 
espoused by David Weintraub — namely, a central fund under U. N. control. 

In April 1950, the State Department made an adverse report on David Wein- 
traub to the United Nations (New York Times, January 2, 1953.) 

During the summer of 1952, the United States delegation to U. N.'s Economic 
and Social Council (ECOSOC) sponsored changes in the organization of the 
Technical Assistant Board (which is composed of representatives of the several 
international organizations which participate in the expanded technical assist- 
ance program) which provided for the appointment of an executive chairman, 
who was "given the task of reviewing all program proposals, either preliminary 
or final, with a view to development of balanced country programs, and he was 
to make such recommendations to the (Technical Assistance) Board as he saw 
fit. The Chairman was also to exercise continuous supervision of the 
program * * *." 

It was widely rumored among the secretariats of the several international 
agencies that David Weintraub was slated to become the Executive Chairman of 
the Technical Assistant Board (TAB) when the United States delegation had 
succeeded in getting approval of the U. N. governments in ECOSOC for the post. 
(New York Times, May 25, 1952: "Mr. Weintraub is a leading candidate for a 
high United Nations post, but, it was said, his selection has been blocked for the 
time being as a result of the grand jury investigation.") 

On January 6, 1953, David Weintraub resigned from the seci'etariat of U. N. as a 
result of publicity which followed the Senate Internal Security Subcommittee 
inquiry into Communist infiltration of U. N. (The New York Times of January 
7, 1953, said : "Mr. Weintraub was largely responsible for a series of United Na- 
tions reports on world economic conditions and also was closely associated with 
the United Nations program of technical assistance for underdeveloped 
countries.") 

The Men Behind the U. N. Central P"'und 

"Technical assistance is probably one of the most imjwrtant subdivisions of 
the U. N. right now. They have asked that the United States contribute many 
millions of dollars to the technical assistance program so that they will be able 
to spend money throughout the world. It supplements and encompasses our point 
4 program. The general thinking now, lioth in the State Department and in 
the United Nations, is that point 4 and all these international assistance organ- 
izations should be subordinated to the technical assistance program in the U. N." — 
Robert Morris, special counsel, Senate Internal Security Committee (from the 
Story of Communism in the U. N., U. S. News and World Report, December 5, 
1952). 

device for control 

The most successful device yet fashioned for bringing the programs and policies 
of the specialized agencies under U. N. control is the U. N.-administered central 
fund, created to finance the "expanded" technical assistance work of seven 
autonomous international organizations. 

Since programs are merely an expression of the ideas and purposes of people, 
it is pertinent to look behind the U. N. central fund to see who originally planned 
it, and who has since been most useful in advancing its potential for centralizing 
control in the U. N. 

In the earlier stages of planning and establishment, the star roles were nlayed 
by David Weintraub and V. Frank Coe. Later, protectors and developers 
emerged both in the United States delegations to U. N. and in the U. N. Secre- 
tariat itself. 

DAVID WEINTRAtm TAKES LEADERSHIP 

The records seem to indicate David Weintraub was one of the leaders in the 
drive to give control of all of the specialized agencies to the U. N. Of Weintraub, 
the Senate Internal Security Subcommittee said (in its report of August 24, 
1953) : 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2899 

"David Weintraub occupied a unique position in setting up the structure of 
Communist penetration of Government agencies by individuals who have been 
identified by witnesses as underground agents of the Connuunist Party, and who, 
when aslied about the truth of this testimony, either invoked the fifth amend- 
ment or admitted such membership. 

"He was the director of tlie national research project of the Works Progress 
Administration which was an object of special attention during our hearings. 
The project appears to have been a kind of trapdoor, through which agents of 
the Communist underground gained entrance to the Government." 

The New York Times of January 2, 1953, reports as follows on David 
Weintraub : 

"Washington, January 1. — A State Department memorandum listing 38 past 
and present United States employees of the United Nations as persons 'believed 
to be Communists or under Communist discipline' was made public today by 
the Senate Internal Security Subcommittee. 

"The memorandum said 11 still were on the United Nations payroll. * * * 

"One of the II named as still on the U. N. payroll was David Weintraub, Direc- 
tor of the Division of Economic Stability and Development. Last Tuesday a 
House judiciary subcommittee was told by the Justice Department that there had 
been 43 derogatory Federal Bureau of Investigation reports on Mr. Weintraub 
between January 31, 1945, and November 12, 1952. In April 1950, the State 
Department made an adverse report on him to the United Nations." 

Robert Morris, special coimsel of the Senate Internal Security Subcommittee, 
said in an interview published in the U. S. News and World Report (December 5, 
1952) : 

"The subcommittee has revealed that David Weintraub, the head of the Eco- 
nomic Division, has brought in many of the ofBcials who have refused to answer 
questions about their Communist membership. Some of these people were asso- 
ciated with him in past United States Government employment. Notwithstand- 
ing this and other testimony about Weintraub, he still remains in his position." 

The Reader's Digest for May 1954 (The Web of Subversion — condensation 
of the book by James Burnham) states : 

"When the research project disappeared from the scene with the coming of 
the war, David Weintraub's governmental career continued upward in other 
agencies. He was with the War Production Board, became an assistant to 
Harry Hopkins, and was in the State Department. After that he went into 
the budding United Nations Relief and Rehabilitation Administration (UNRRA), 
where he became Deputy Director. He was, that is to say, at the top of that 
organization, with all its billions of dollars. 

"In 1946 Weintraub has a series of quarrels with Fiorello La Guardia, then 
Director of UNRRA, as a result of which he was fired. But Mr. Weintraub had 
no occasion to seek unemployment relief. The United Nations was opening up 
shop, and he was evidently just the man the U. N. needed. In a jiffy he was 
hired, at more than $14,000 a year, and installed in the U. N. Secretariat as 
Director of the Economic Stability and Development Division. 

"Weintraub was never one to neglect his chicks. Soon there appeared at his 
side his old Associate Director, Irving Kaplan, at a $12,440 salary. To preserve 
the traditional atmosphere, there were also present in his U. N. division Joel 
Gordon ($13,000), Herman Zap ($8,700), and Sidney Glassman ($8,500), all 
three of whom pleaded self-incrimination when later questioned about Com- 
munism." 

Much has been made of the fact that David Weintraub brought into the U. N. 
Secretariat a number of people who later resorted to the fifth amendment when 
questioned about their Communist activities. The Senate Internal Security 
Subcommittee report (August 24, 1953) may provide an explanation for Mr. 
Weintraub's propensity for hiring people who would not discuss their political 
activities : 

"Almost all of the persons exposed by the evidence had some connection 
which could be documented with at least one — and generally several — other ex- 
posed persons. They used each other's names for reference on applications for 
Federal employment. They hired each other. They promoted each other. They 
raised each other's salaries. They transferred each other from bureau to bureau, 
from department to department, from congressional committee to congressional 
committee. They assigned each other to international missions. They vouched 
for each other's loyalty and protected each other when exposure threatened." 

Whatever David Weintraub's reasons were for opening the U. N. Secretariat 
door to so many who later were charged with being Communists, the fact is 



2900 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

that he had on his immediate staff in the Division of Economic Stability and 
Development eight of the people who were dismissed by the United Nations 
following Federal grand jury inquiry and hearings by the Senate Internal Se- 
curity Subcommittee regarding presence of American subversives in the U. N. 
These eight together with appropriate highlights from their records, were : 

Irving Kaplan — of whom the Senate Internal Security Subcommittee said: 
"Kaplan appeared before us during the inquiry into IPR (Institute of Pacific 
Relations)." Here is a sample of his testimony : 

"Mr. SouBWiNE. Were you ever a Soviet espionage agent? 

"Mr. Kaplan. I refuse to answer on the ground that it may tend to incrimi- 
nate me. 

"Mr. SouRWiNE. Are you a Soviet espionage agent now? 

"Mr. Kaplan. I refuse to answer * * * 

"Mr. SouRWiNE. Did you ever conspire to overthrow the Government of the 
United States by force and violence? 

"Mr. Kaplan. May I consult with counsel? 

"Senator Ferguson. Yes. 

"(Mr. Kaplan confers with counsel.) 

"Mr. Kaplan. I refuse to answer on the same grounds * * * 

"Senator Ferguson. Was there a ring in Washington, where Communists were 
active, to get other Communists in to the United States Government? 

"Mr. Kaplan. I refuse to answer * * * 

"Shortly after this testimony, Kaplan took the stand before the House Com- 
mittee on Un-American Activities on June 10, 1952. His combined testimony 
fills about 61 pages. On those 61 pages we find that he believed it might in- 
criminate him if he gave true answers to 244 questions * * * 

"The man who gave Irving Kaplan his job as associate director of the National 
Research Project of WPA in 1935 was David Weintraub. The man who helped 
Irving Kaplan get his job with the Division of Economic Stability of the United 
Nations 12 years later was the same David Weintraub, who by that time was 
Director of that U. N. division. 

"Whittaker Chambers involved both Kaplan and W^eintraub as Communists. 
He said that Kaplan gave him. Chambers, a job with the National Research 
Project of WPA in the 1930's as a service to the Communist conspiracy. 

"Elizabeth Bentley testified that Kaplan was one of the espionage ring who 
gave her stolen Government secrets in the 1940's  * * 

"When Kaplan went to the Treasury in June 1945, it was Frank Coe wko 
appointed him. Coes name was on the Berle notes and he was identified by 
Bentley as a Communist. He invoked the fifth amendment before us last De- 
cember 1, 1952. 

"After his return from Germany, both Coe and Harold Glas.ser rated Kaplan's 
Treasury work E, for excellent * * * on May 17, 1946, Kaplan was transferred 
by Coe to the Office of War Mobilization and Reconversion. *  *" 

Joel Gordon — of whom Robert Morris, special counsel for the Senate Internal 
Security Subcommittee, said in an interview (U. S. News & World Report, 
Dec. 5, 1952) : 

"Joel Gordon, chief of the Current Trade Analysis Section of the Division of 
Economic Stability and Development, also refused to say whether he was pres- 
ently engaged in subversive activities against the United States, whether he had 
engaged in espionage, or whether he was a Communist." 

The New York Times, October 23, 1952, reports : 

"United Nations, New York, October 22. — Secretary General Trygve Die today 
dismissed one United Nations employee who had balked at answering questions 
about Communist activity put by a Senate subcommittee, suspended another, 
and placed 10 on compulsory leave. All 12 were United States citizens. * *  

"Suspended — Joel Gordon, chief of the Current Trade Analysis Section of the 
Department of Economic Affairs, with a take-home pay of $10,100. Mr. Lie said 
that Mr. Gordon had refused to tell the subcommittee whether he was 'now en- 
gaged in any subversive activities against the United States Government.' Mr. 
Gordon will continue to receive his salary during his suspension." 

Herbert S. Schimmel — of whom the New York Times reported on October 15, 
1952, in connection with hearings of the Senate Internal Security Subcommittee : 

"Mr. Schimmel's testimony led to Senator O'Conor's vehement call for ousters. 
The economist had refused to say whether he had been a Communist while em- 
ployed by the Works Progress Administration. He did say that 'I was not' a 
Communist in 1941 when on the staff of a House committee headed by the late 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2901 

Representative John H. Tolan, Democrat of California, investigating national 
defense migration. 

"Confronted witli questions about various individuals, Mr. Schimmel pleaded 
that he had been ordered Monday night to appear even though his lavpyer could 
not be present. In the midst of Mr. Schimmel's discussion on this with Robert 
Morris, committee counsel, Senator O'Conor declared that it was 'a sorry day' 
when Americans working for an international organization could not answer 
questions bearing on their loyalty." 

The New York Times of January 2, 1953, said : 

"Washington, January 1. — A State Department memorandum listing 38 past 
and present United States employees of the United Nations as persons 'believed 
to be a Communist or under Communist discipline' was made public today by 
the Senate Internal Security Subcommittee * * * 

"* * * listed in the memorandum as being former employees separated from 
their jobs after adverse comment had been handed to the United Nations : 
Herbert S. Schimmel, hired April 17, 1949, adverse comment December 19, 1951, 
terminated October 30, 1952." 

With monotonous regularity, members of David Weintraub's staff refused to 
answer questions put to them by the Federal grand jury and the Senate Internal 
Security Subcommittee. The similarity of their case histories makes repetition 
unnecessary. Therefore, only the disposition of each, as reported in the New 
Yoi-k Times of January 2, 1953, will be noted here : 

Sidney Glassman — of whom the New York Times (January 2, 1953) says : 

"The State Department's list of 27, however, is not the complete accounting 
of persons dismissed by the loyalty controversy. At least 7 other i)ersons have 
been ousted by the United Nations. 6 of them for refusal to answer questions 
asked by the Senate's Subcommittee on Internal Security. They are Sidney 
Glassman  *  Herman Zap * * *." 

Herman Zai) — See above report on Sidney Glassman. 

Dimitry Varley — The New York Times (January 2, 1953) states: 

"Washington, January 1 — A State Department memorandum listing 38 past 
and present United States employees of the United Nations as persons 'believed 
to be Communist or under Communist discipline' was made public today by the 
Senate Internal Security Subcommittee •  * Mr. Hickerson named these 11 
persons as still on the United Nations payroll : Dimitry Varley, hired October 1, 
1946; adverse comment about November 21, 1950 • * ♦." 

Eugene Wallach — The New York Times (January 2, 1953) says: 

"These 25 persons were listed in the memorandum (of the State Department, 
listing United States employees of the United Nations 'believed to be Commu-P 
nists or under Communist discipline') as being former employees separated! 
from their jobs after adverse comment had been handed to the United Nations : 
Eugene Wallach, hired August 30, 1946, adverse comment April 21, 1950, termi- 
nated June 20, 1950 * • *." 

Mrs. Marjorie Zai) — The same list referred to In connection with Eugene 
Wallach, above, included the name of Marjorie Zap, as follows : 

"Marjorie Zap, hired May 5, 1947, adverse comment January 20, 1951, com- 
pulsory leave October 22, 1952, terminated November 21, 1952." 

REORGANIZATION OF THE TECHNICAL ASSISTANCE BOARD (TAB) 

24. In the middle of 1952, the Technical Assistance Committee (TAG) re- 
viewed the methods of operations of the TAJB and recommended to the ECOSOC 
a number of changes in the basic resolution (establishing the U. N. expanded 
technical assistance program; 222 (IX), The Economic and Social Council at 
its 14th session accepted these changes, which provided for the appointment 
of an Executive Chairman and a modification in the function and responsibilities 
of the Board.^ The Executive Chairman was given the task of reviewing all 
program proposals, either preliminary or final, with a view to developing balanced 
country programs, and he was to make such recommendations to the Board on 
all programs as he saw fit. The Chairman was also to exercise continuous 
supervision of the program, and to insure that all the Board's activities were 
adequately coordinated." And finally, special emphasis was placed on the role 
of the resident representatives. 

25. In making the recommendations on financial arrangements for 1953, the 
Technical Assistance Committee also provided that all programs for 1953 were 

e„!.,?^f'''^o^^'°*'"^".^ was slated to get this job, but resigned under fire of Senate Internal 
becunty Subcommittee before assuming It — David Owen later took it 
* Resolution 433 A (XIV). 



2902 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

to be reviewed by the Chairman and approved by the Board before funds were 
allocated, whether the projects were financed from the agency automatic allo- 
cations or from the retained contributions account. This latter requirement and 
the new general responsibilities necessitated a change in the organization of 
the Secretariat of the Technical Assistance Board, and this was accomplished 
over the latter half of 1952 and in the early months of 1953. 

The above paragraphs appeared in United Nations Technical Assistance Com- 
mittee Fifth Report of the Technical Assistance Board, Economic and Social 
Council Official Records : 16th session, supplement No. 10, E/2433, June 1, 1953. 

United States Citizens on Staff of David Owen (Assistant Secretaby- 
Genekal of U. N. for Economic Affairs) Who Were Dismissed Following 
Inquiry by Federal Grand Jury and Senate Internal Security Subcommit- 
tee Into Communist Infiltration of U. N. Secretariat 

Economic Stability and Development Division 

David Weintraub, Director: Net salary, tax paid by U. N., of $11,800 plus an 

$800 allowance. (Resigned under fire.) 
Sidney Glassman : Net salary of $8,500 tax paid by U. N. 
Irving Kaplan : $12,440 per year. 
Eugene Wallach. 

Herbert Schimmel : Economic affairs officer, $8,500 net, tax paid by U. N. 
Joel Gordon : Chief, Current Trade Analysis Section, $10,000 net, tax paid by 

U. N. 
Herman Zap (later transferred to U. N. Technical Assistance Administration; 

(see note below). 
Mrs. Marjorie Zap : Economic affairs officer, $4,800 net salary, tax paid by U. N. 

other sections of economic affairs 

Hope Dorothy Eldridge : Statistical oflScer, $7,525 net salary, tax paid by U. N. 
Rhoda Rastoff : Transport and Communications Division. 

United States Citizens on Staff of U. N. Technical Assistance Administra- 
tion Who Were Dismissed Following Inqxhry by Federal Grand Jury and 
Senate Internal Security Subcommittee Into Communist Infiltration of 
U. N. Secretariat 

Alfred J. Van Tassel, Chief, Economic Section, Special Projects Division, U. N. 

TAA— $9,000 salary net, tax paid by U. N. 
Stanley Graze, Executive Secretary of the Railways Operation Study Unit, 

U. N. TAA— $6,000 net salary, tax paid by U. N. 
Herman Zap, training oflScer — $6,625 net salary, tax paid by U. N. 

First Attempt by U. N. Secretariat To Control Technical Assistance 

On January 8, 1947, a meeting was called at U. N. Headquarters by David 
Weintraub, Director of the Division of Economic Stability and Development, 
Department of Economic Aifairs, U. N. 

According to Mr. Weintraub, the purpose of the meeting was to consider what 
immediate steps might be taken through the U. N. Secretariat toward the attain- 
ment of "balanced" programs of economic development, including provision of 
technical assistance. Organizations represented, with number of persons from 
each noted in parenthesis: FAO (2 representatives); International Bank (3 
representatives) ; International Labor Office (1 I'epresentative) ; WHO (2 repre- 
sentatives) ; United Nations (11 representatives). 

A major part of the discussion centered around a draft paper circulated by 
Mr. Weintraub. The principal section is quoted below : 

"4. To enable the United Nations most effectively to assist in the development 
of the less-developed countries or areas of the world ; 

"(a) The member governments of the United Nations should be invited to 
forward to the Secretary General detailed statements showing what agency or 
agencies in their countries have as their major concei*n the general economic 
development of their countries and giving a description of their authority, plans, 
programs, activities, personnel, and financial resources ; 

"(&) The Secretary General should assemble and analyze the above data and 
make them available to the Economic and Social Council and its appropriate 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2903 

commissions and subcommissions and to such other agencies or members of the 
United Nations as may be concerned ; 

"(c) The Secretary General should keep under continuous review the progress 
of development in the less-developed countries or areas so that — 

"(i) he may be in a position to consider appropriate and prompt action 
in cooperation with other Unitetl Nations or national agencies concerned, if, 
at any time, a development project or program, justified on other grounds, 
has been unable to go forward for lack of adequate international financial 
facilities or technical assistance; 

"(ii) he may be in a position to take or promote appropriate action to 
ensure that development programs are consistent with the international 
economic policies of the United Nations; 
"(d) The Secretary General should consider the establishment of a consulta- 
tive mechanism of the United Nations agencies concerned for the purpose of 
ensuring that the resources of the United Nations are utilized most effectively 
and expeditiously to achieve balanced economic and social progress and develo)> 
ment ; 

"(e) The Secretary General should, in cooperation with the other United 
Nations agencies concerned, make appropriate arrangements for the provisions 
of such technical assistance as member governments may request in order to 
enable the governments concerned to plan and carry out balanced development 
programs as speedily and as competently as iKtssible." 

Excerpt from covering letter, dated January 10, 1947, from David Weintraub 
to participants in a meeting which he had called on January 8, 1947, to discuss 
steps to be taken by the U. N. Secretariat toward attainment of 'balanced' 
economic development, including provision of technical assistance: 

"Although, as I told you at the meeting, this statement is not construed V)y us 
as necessarily reflecting the view of any of the agencies represented at the 
meeting, it will be used by the U. N. Secretariat as a guide in our own work." 



January 14, 1947. 

Note on Infoemal Discussion on Economic Development, Lake Success, 

11 A. M., January 8, 1947 

Mr. We'mirauh acted as chairman, and in addition to U. N. representatives, 
members of the staffs of the following international agencies were present : 
IMF, International Bank, FAO, ILO, the preparatory commission of ITO, 
UNESCO, and World Health Organization. The IMF was represented by Mr. 
Friedman and Mr. Fisher. 

U. N. and the specialized agencies were asked to consider what could be 
done to facilitate balanced development programs in individual countries, and 
to insure a common approach and eflSciently coordinated action on the part 
of the agencies most directly concerned. The bank is naturally the most active 
operator in this field, but FAO will also probably wish to sponsor development 
projects, and IL conferences will wish to pass resolutions on the subject. IMF's 
interest is less direct, though they are concerned that development programs 
should produce balanced economies in a slightly different sense. 

VN proposes to ask member fiovcrnments to submit statements listing national 
agencies which have general economic development as their major concern, and 
describing their authority, plans, programs, activities, personnel and financial 
resources. The document in which this request is to be embodied will be sub- 
mitted for comment, informally and without prejudice, to those who were present 
at the meeting, responsibility for it remaining, however, with U. N. The U. N. 
Secretariat will then be asked to keep the program development in the less de- 
veloped countries under continuous review, and in particular to examine the fac- 
tors which may be impeding it. It was pointed out that this request might over- 
lap with others being made by the specialized agencies such as the IMF, and it was 
agi-eed that the U. N. Secretariat should not make any request at this time, but, 
instead, each agency might report orally and informally on its activities-- in this 
field, and the U. N. Secretariat can then see what gaps, if any, exist. 

The bank showed some intelligible concern lest the process of coordination 
should threaten to impair its exclusive responsibility for making decisions on 
loan requests made to it, and it was finally agreed that it would generally be 
undesirable to place the Secretary-General in a position whore he might feel 
obliged to advocate the claims of any member state as against a bank decision. 
72723— 57— pt. 42 3 



2904 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

It appears that U. N. would like to make the systematic provision of technical 
assistance one of its positive functions. * * * The question was raised of 
sending teams of investigation to suitable areas to examine development prob- 
lems on the spot. * * * 

It appeared to be taken for granted that all the si)ecialized agencies would be 
invited to attend Commission and subcommission meetings, though the extent 
of their participation in each case is a matter of procedure to be decided by 
each Commission or subcommission itself. 

It is proposed to continue informal meetings such as these, and the second will 
probably be called within the next 4 to 6 weeks. 



[United Nations press release, March 25, 1949] 

Statement by Secretary-General Tbygve Lie on Economic Development and 
Technical Assistance to Underdeveloped Countries 

We shall be taking another step next week in the development of the United 
Nations plans for technical assistance and economic development of underdevel- 
oped countries. 

On Thursday, March 31, there will be consultations at the offices of the Inter- 
national Bank in Washington, D. C, among representatives of seven of the 
specialized agencies and a secretariat party headed by Assistant Secretary- 
General David Owen. These consultations are for the purpose of establishing 
some of the basic policy lines to be followed In the plans on technical assistance 
which the Economic and Social Council requested us to prepare. After these con- 
sultations, an expert group will start work at Lake Success. Their draft plans 
should be ready for consideration by the Administrative Committee on Coor- 
dination in the middle of May, and I hope to be able to complete the report by the 
end of that month. 

In the meantime, I have asked the International Bank and the International 
Monetary Fund, the Food and Agriculture Organization, the International Labor 
Office, and UNESCO to give me their views on methods of financing economic 
development projects. You will recall that the Economic and Social Council 
requested me to make reports to its next session on both technical assistance for 
economic development and methods of financing development projects them- 
selves. 

I look upon these plans for an expanded United Nations program of technical 
assistance and for financing economic development as affording a major oppor- 
tunity for constructive action by the United Nations and the Specialized Agen- 
cies during the months ahead. 

In addition to Mr. Owen, the Secretariat party to Washington will include 
J^rg^_AiEa3Iyrdal, top-ranking Director of the Department of Social Affairs, 
Mr. Martin Hill, Director of Coordination for Specialized Agencies, Mr. David 
Weiiitraub, Director of the Division of Economic Stability and Development, 
and Mr. Perez-Guerrero, Adviser on Coordination. 

I expect that Mr. John J. McCloy, president of the International Bank, Mr. 
Camille Gutt, Director of the International Monetary Fund, aud Sir Herbert 
Broadley, Acting Director of the Food and Agriculture Organization, will repre- 
sent their agencies at the meeting in Washington. 

Assistant Director-General C. W. Jenks is expected to represent the Interna- 
tional Labor Office. Dr. Frank Calderone, Director of Liaison Sen^ices, will 
represent the World Health Organization ; Dr. C. E. Beeby, Assistant Director- 
General in charge of Education of UNESCO ; aud Mr. E. R. Marlin, the Interna- 
tional Civil Aviation Organization. 



The U. N. Expanded Technical Assistance Pkoqram (ETAP^ 

(A high-level official of an International organization prepared for the head of 
his agency the following summary of developments in the multilateral technical 
assistance program :) 
Subject : ETAP. Date : September 21, 1954. 

President Truman's inaugural speech in January 1949, suggested, as point 4 in 
his international program, a technical assistance program, to be carried out both 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2905 

bilaterally and through the international agencies. This general suggestion was 
made specific by the United States representative to ECOSOC the next mouth. 
ECOSOC requested the Secretary-General of U. N., in consultation with the heads 
of the specialized agencies, to prepare an overall plan of the program, lor presen- 
tation to its summer session. 

The heads of the specialized agencies advised U. N. that, before setting up a 
working party to prepare this plan, a policy decision should be reached ou 
whether the proposed program would be financed and controlled centrally through 
U. N., or be financed through each of the agencies separately and operated by the 
agencies cooperatively. U. N. resisted any real discussion of this point, and 
opened the working party meetings before a final policy agreement had been 
reached. "While the specialized agencies continued strongly to argue the case 
for a decentralized program, the U. N. {whose spokesman ivas usually David 
Weintraiib) resisted any alternative to a centralized appropriation and budget 
and centralized by U. N. of the program. However, after about 6 weeks of dis- 
cussion, the report of the working party to ECOSOC was finally agreed upon. 
It reflected an essentially decentralized approach, despite U. N. objection' 

At its summer session in 1949, ECOSOC overruled the report, and votCd for a 
centralized budget and appropriation, to be administered by a Technical Assist- 
ance Board, whose decisions would be subject to ECOSOC review.^ 

Since 1949, the TAB program has been active, but there has been increasing 
restiveness by the specialized agencies under TAB and U. N., especially as 
ECOSOC continued to press for more and more control over the agencies' techni- 
cal assistance activities. This situation came to a head this spring and summer, 
when a French proposal was adopted by ECOSOC, after considerable discussion, 
which, in essence, gave TAB and its chairman, acting as agents of ECOSOC, final 
say on the technical assistance programs to be carried out by the agencies. 

This dissatisfaction of the agencies, particularly WHO and FAO, with this 
situation was reflected by people in the United States technically interested in 
their activities. During the congressional appropriations hearings this summer, 
the question was raised as to why the U. N. should have such a control over the 
agencies' work in this field. It was agreed (S. Kept. 2268) that a congressional 
study should be made of the whole question of United States relationshix>s to 
multilateral technical assistance, including the possibility of direct financing of 
the specialized agencies' programs. In making this study, there are to be consul- 
tations with interested parties, including the international organizations, if this 
seems desirable. 

Mr. Morris. I have here document No. 6, Senator, entitled "Mea- 
sures for the Economic Development of Underdeveloped Countries. 
Report by a Group of Experts Appointed by the Secretary-General of 
the United Nations. Issued by the Department of Economic Affairs, 
United Nations, New York, May 1951." 

Senator Jenner. It may go into the record and become a part of 
the record. 



1 Note. — Based on this development, the International Bank and the International 
Monetary Fund decided they could not participate In the new program, nor be members of 
TAB and thus subject their own activities to possible control by a U. N. body. 



2906 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

(The document referred to was marked "Exhibit No. 306" and is as 
follows:) 

Exhibit No. 306 

David Weintraub and SUNFED ( Special United Nations Fund fob Economic 

Development) 

also DIMITRY VABLEY 

[The New York Times, August 9, 1955] 
U. N. Unit Pushes Huge Aid Project 

economic council acts to put world group more actively in development 

business 

By Michael L. Hoffman 

Special to the New York Times 

Geneva, August 5. — The United Nations Economic and Social Council passed 
several resolutions today putting the United Nations more actively in business 
as a promoter of economic growth. The Council then closed its busy twentteth 
session. 

The Council took the project for a huge United Natians fund to make grants 
bf aid to underdeveloped countries a step further. It asked the Secretary Gen- 
eral to poll governments on their willingness to support the project, as now 
drafted. It would be known as the Special United Nutioiis Fund for Economic 
Development. The object of the promoters is to get a General Assembly vote on 
the establishment of the ftind at next year's session of the Assembly. 

Resolutions were also adopted giving the regional economic commissions for 
Europe, Latin America and Asia and the Far E;ist more authority to promote 
regional trade conferences and engage in trade expansion work generally. An 
effort by the Soviet Union to revive the project of an international trade organi- 
zation within the United Nations framework failed, however, to get approval. 

some serious doubts 

Many delegates, particularly those from countries with long experience in the 
processes of economic expansion, have serious doubts that the good intention in 
these matters will invariably be followed by good results. But the economically 
big countries have, on the whole, dragged their feet more quietly this year as the 
smaller and less developed members seek to push the United Nations further into 
various activities in these fields. 

The United States, for instance, abstained from voting on the big fund reso- 
lution, but did not vote against it, although there are several features in it the 
State Department does not like. 

The project has been tied in with the idea that a reduction in armament ex- 
penditures that might result from a still-to-be-achieved East-West disarmament 
agreement would make it easier for governments to appropriate money for aid 
to underdeveloped countries. 

united states in stronger position 

The United States delegation has been in a stronger moral and bargaining 
position this year than at any previous session of the Council. This year Con- 
gress has given the administration virtually everything asked for in the nature 
of technical assistance to the underdeveloped countries through United Nations 
agencies. 



Letter of Transmittal to the Secretary General 

We have the honor to submit herewith our report on Measures for the Economic 
Development of Underdeveloped Countries.' 



^ This group suggested a large fund, from which U. N. would give grants-in-nid to nnder- 
dPVf'Ioi»'d countries — a plan tlien called International Development Authority, now known 
as Special United Nations Fund for Economic Development (SUNFED). 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2907 

We are happy to be able to present a unanimous report containing recom- 
mendations for national and international measures to promote economic 
development. 

In view of the wide scope of our report and its general character, we have not 
dealt with specific problems of particular underdeveloped countries or regions. 
At the request of the group, George Hakim served as Chairman. 
We uHsh to express onr gratitude for the valuable assistance given us by the 
Secretariat of the United Nations' 
Tiespeetfully yours, 

[Signature illegible — presumably A. B. Cobtez.] 

D. R. Gadgil. 
George Hakim. 
W. Arthur Lewis. 

T. W. SCHULTZ. 

New York, 26 April 1951. 

Secretary General's Preface 

This report on measures for the economic development of underdeveloped coun- 
tries should be regarded as a counterpart to the earlier report on national and 
international measures required to achieve full employment in economically 
more developed countries.' It was prepared by a group of experts whom I ap- 
pointed at the invitation of the Economic and Social Council after the Council 
adopted a far-reaching series of recommendations following an exhaustive dis- 
cussion of the earlier report. Like the earlier document, the present report rep- 
resents the unanimous view of its authors, who acted in their personal capacities 
and whose recommendations are put forward on their own responsibility. 

The group was composed of Alberto Baltra Cortez, Professor of Economics, 
National University of Chile ; D. R. Gadgil, Director, Gokhale Institute of Politics 
and Economics, Poona, India ; George Hakim, Counselor, Legation of Lebanon, 
Washington, D. C. ; W. Arthur Lewis, Professor of Political Economy, University 
of Manchester, England ; and Theodore W. Schiiltz, Chairman, Department of 
Economics, University of Chicago, U. S. A. At the request of the group, George 
Hakim served as Chairman. 

The Economic and Social Council invited me to appoint a group of experts to 
study the problem of reducing unemployment and underemployment in under- 
developed countries in the light of the ciirrent world economic situation and of 
the requirements of economic development, and to transmit the report to Member 
Governments and to the Economic, Employment and Development Commission. 
The Commission in turn has been requested by the Council to examine the re- 
port and to submit to the Council any comments and recommendations for action 
which seem appropriate. I am particularly pleased to make this report available 
for general discussion because it covers a subject which I commended to the 
fifth session of the General Assembly for consideration in the development of a 
Twenty-Year Programme for Achieving Peace through the United Nations. In 
my Memorandum to the * * * 

Measures fob the Economic De\t:lopment of Underdeveloped Countries 

Report by a Group of Experts appointed by the Secretary General of the United 

Natians 

Issued by the Department of Economic Affairs * United Nations, New York, May 

1951 

Part 3 — ^Ieasures Requiring International Action 

intergovernmental grants 

270. Before rapid economic progress can begin to be made, the governments 
of the underdeveloped countries will have to spend large sums in improving the 
human factor — on schools, on agricultural extension services, on university 



* These experts met in one of a series of meetings on problems of economic development, 
■whicii were organized by tlie U. N. Division of Economic Stability and Development (of 
which David Weintratib was Director). See p. 7 of attached statement of David Owen. 

3 National and International Measures for Full Employment, December 1949, U. N. Sales 
No. 1949.II.A.3. 

* David Owen was head of this U. N. department — David Weintraub's division (Economic 
Stability and Development) was operating arm of it, in charge of organizing the meeting 
•which produced this report. 



2908 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

training, on teclinical education, and on public health. They will also have to 
spend large sums in improving their administration, and upon basic social 
capital. Most of them do not have the money required for these purposes, and 
they cannot borrow it. If they could get this money, its expenditure would 
itself stimulate both private investment and Government borrowing. Without 
this money, development proceeds at a slow pace, and the total inflow of capital is 
a mere fraction of what is needed. 

271. We therefore urge most strongly that some mechanism he created for 
transfei~ring from the developed to the underdeveloped countries, by way of 
grants-in-aid, a sum of tnoney which should increase rapidly, reaching eventually 
a level about $3 billion a year.^ This would be equivalent to rather less than 
1 percent of the national incomes of Western Europe, Australasia, the United 
States and Canada. 

272. The principle that the better off .should help to pay for the education, the 
medical services and other public services received by the poorer clas.ses of the 
community is now well established within every Member nation of the United 
Nations. The idea that this principle should also be applied as between rich and 
poor countries is relatively new. It has, however, been put into practice on 
several occasions. The work of UNRRA is an outstanding example of United 
Nations collaboration in this sphere. But even this is far overshadowed by the 
munificence of the United States which in the past few years has given away 
to the rest of the world sums that are a multiple of the figure we are now suggest- 
ing that the developed countries together should transfer to the underdeveloped 
countries. A very large part of the grants made in recent years has gone to the 
peoples of Europe, who are next in line of wealth after the peoples of North 
America and of Australasia. The need for such assistance to Europe has now 
virtually ended. If some of what Europe has been receiving were now made 
available to the underdeveloped world, our modest target would easily be met. 

273. We do not suggest that aid should be given unconditionally to under- 
developed countries. This would not be wise. Each grant should be linked to 
a specific function, and there should be international verification that the funds 
are used only for the purpose for which they have been granted. 

274. We recommend that the United Nations should establish an International 
Development Authority with potver to make grants to the governments of under- 
developed countries * for the purposes listed in paragraph 276. We make this 
recommendation, conscious of the fact that some governments may prefer to 
set up their own organiations for this purpose, such as the Economic Cooperation 
Administration of the United States. Even if some governments do set up their 
own organizations, we nevertheless recommend that there should also be estab- 
lished an International Development Authority to operate in this field. We 
believe that an international body has certain advantages over a national body 
in this kind of work, such as that international verification of expenditures is 
more acceptable to the receiving countries. We also believe that the traditions 
of some of the smaller developed countries, such as the Scandinavian and 
Australasian countries, are such that they would wish to contribute towards this 
operation. The creation of an International Development Authority would 
enable them to do this without the burden of setting up separate organizations 
of their own. 

275. We have not thought it necessary to draft a constitution for such an 
authority, since its details would depend very much on the number and types of 
countries willing to contribute, on the terms of their participation, and on the 
number of similar national organizations that might be created. The important 
points at tliis stage are that Members of the United Nations should agree that 
such an authority is necessary, and that they should have an idea of the size of 
the sum of money which is needed for disbursement by means of grants. 

276. The functions of the International Development Authority should be as 
follows : 

(1) To decide upon and administer the distribution of grants-in-aid for the 
specific purposes listed below, and to verify their utilization. 

(2) To cooperate with underdeveloped countries in preparation and coordina- 
tion of plans of economic development by affording general assistance and, where 
necessary, by providing the services of technical experts and by giving grants-in- 
aid for the preparation of plans of economic development. 

(3) To help in implementing development plans, especially in the procurement 
of scarce resources, e. g., capital goods, technical personnel. 



6 This is origin of plan now being promoted by U. N. as "SUNFED." 
• Now being promoted by U. N. as "SUNFED." 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2909 

(4) To make periodic reports regarding the preparation and progress of plans 
of development, to provide for continuous study of the problems of economic 
development of underdeveloped countries, and to make recommendations to the 
Economic and Social Council in regard to any action that may be required con- 
cerning these problems. 

The following purposes should be considered eligible for grants; other pur- 
poses, which are more capable of being self-supporting, should be financed by 
borrowing : 

(a) Research and education. This includes grants for agricultural extension 
services, technical schools, farm schools, local universities, and for training 
technicians abroad, grants to departments of governments, research institutes or 
universities, wherever located, working on problems of underdeveloped coun- 
tries ; 

(b) Public health programmes, emphasizing preventive medicine and nutrition 
rather than curative medicine ; 

(c) Subsidization of medium- and short-term farm credit; 

(d) Improvement of rural public works. This includes grants for roads, 
rural water supplies, land reclamation, drainage, soil conservation, afforestation. 

277. We have considered whether there should not also be created an institu- 
tion to make loans at very low rates of interest, such as one-half of 1 percent, 
for investment in social capital, such as roads. We have concluded that this is 
not necessary, since exactly the same purpose can be met by combining a loan 
from the International Bank with a grant-in-aid from the International De- 
velopment Authority, in cases where an undertaking desirable on social grounds, 
could not meet the full burden of loan finance. 

278. A political issue of some delicacy arises with international verification of 
the expenditure even when grants are tied to particular functions. Some coun- 
tries are ruled by corrupt or reactionary cliques whose regime might be over- 
thrown by the people if there were no foreign aid, and who may be settled 
in their rule because foreign grants have become available. Members of the 
United Nations will not wish to have had any hand in fastening such govern- 
ments on peoples. They might therefore wish to lay down certain minimum 
conditions before an underdeveloped country was admitted to the list of those 
eligible to receive grants. This is a most controversial matter, on which we do 
not make any recommendation. 



United Nations Economic and Social Council 
r 

E/CN.l/SR. 125 
31 May 1951 
Original : English i 
General Distribution 
on 11 June 1951 

ECONOMIC, EMPLOYMENT, AND DEVELOPMENT COMMISSION 

Sixth Session 

SUMMARY RECOKD OF THE HUNDRED AND TWENTT-FIFTH MEETING 

Held at Headquarters, New York, on Tuesday, 29 May 1951, at 10 : 30 a. m. 

Contents : 

Report of the group of experts appointed by the Secretary General under 
Economic and Social Council resolution 290 (XI) on measures to reduce un- 
employment and underemployment in underdeveloped countries in light of re- 
quirements of economic development (E/1986) ; discussion of Commission's 
draft report (E/CN.1/L.17) 

Chairman : Mr. Nunes Guimaraes, Brazil. 

Members: Mr. Bunge, Argentina; Mr. Bury,* Australia; Mr. Masoin,* Bel- 
gium; Mr. Wolfson,* Canada; Mr. Cha,* China; Mr. Nosek,* Czechoslovakia; 
Mr. Dayras,* France ; Mr. Saksena,* India ; Mr. Bjerve,* Norway ; Mr. Madrigal, 
Philippines; Mr. Katz-Suchy, Poland; Mr. Chernyshev, Union of Soviet Socialist 
Republics; Mr. Wilson,* United Kingdom of Great Britain and Northern Ireland; 
Mr. Stinebower, United States of America ; Mr. Lang, Yugoslavia. 



♦Alternates. 



2910 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Representatives of specialized agencies: Miss Banos, Food and Agriculture 
Organization (FAO) ; Mr. Lopez Herrarte, International Bank for Reconstruc- 
tion and Development. 

Representatives of nongovernmental organizations — Category A: Miss Kahn, 
World Fedei-ation of Trade Unions (WFTU) ; Miss Sansom, International 
Chamber of Commerce (ICC) ; Mr. Brophy, International Confederation of Free 
Trade Unions (ICFTU). 

Secretariat : Mr. Weintraub, Secretary of the Commission. 

Report of the group of experts appointed by the Secretary General under 
Economic and Social Council Resolution 290 (XI) on measures to reduce un- 
employment and under employment in underdeveloped countries in light of 
requirements of economic development (E/1986) ; Discussion of Commission's 
draft report (E/CN.1/L.17). 

Mr. NosEK ( Czechoslovakia ) wished to emphasize, as a result of the procedure 
followed the previous day in discussing the Commission's draft report that the 
basic requirement of any report was that it should give a clear and factual record 
of the proceedings and should indicate all the opinions expressed in the course of 
the discussion and not only the majority view. 

Mr. Chebnyshev (Union of Soviet Socialist Republics) wished to thank the 
Secretariat for its promptness in making the corrections to the summary record 
which he had requested the previous day. 

******* 

[Page 6.] Mr. Wilson (United Kingdom) suggested the insertion in the para- 
graph of a sentence to the effect that "in doing so, it should have regard to the 
formidable problem of education which is entailed in such reforms as these." 

Mr. Bjebve (Norway) felt that some reference should be made to the question 
of taxation mentioned in Recommendation 1. As the Chairman had previously 
pointed out, the phrase "taxation upon a progressive basis" was ambiguous. It 
also gave rise to complicated problems and he could not therefore subscribe to 
its use without some qualification. He would personally prefer to substitute 
the phrase "the improvement of the taxation system". 

The Chairman supported the Norwegian representative's suggestion. The 
point was extremely important, inasmuch as one of the main problems facing 
the underdeveloped countries was that of capital formation without the imposing 
of an undue burden on labour. 

Mr. Weintraub (Secretary of the Commission) pointed out tJiat, if it was a 
question of interpreting the phrase used by the Group of Experts, what the latter 
had intended to convey ivas that the tax system should be so organized that it 
placed the burden on those best able to pay. 

Mr. WoLFSON (Canada) remarked that other considerations also arose, for 
example, the problem of capital formation, to which the Chairman had drawn 
attention. He suggested the phrase "the establishment of taxation on a basis 
appropriate to the needs of development of the under-developed countries." 

Mr. Masoin (Belgium) said it was clear from the relevant chapters of the 
report that, in making their recommendation, the experts were concerned to 
reduce the consumption of the wealthiest classes in the interests of domestic 
capital formation, either by means of direct taxation or by other methods of 
taxation. Their aim was not so much a system which would secure social justice 
as one which would promote economic development. He therefore supported the 
Canadian representative's suggestion. 



SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 2911 

United Nations Econoiiic and Sociai, Council 

E/CN.1/SR.129 
18 June 1951 
Original : Englisli 
General Distribution 
on 19 June 1951 

ECONOMIC, EMPLOYMENT AND DEVELOPMENT COMMISSION 

Sixth Session 

summary record of the hundred and twenty-ninth meeting 

Held at Headquarters, New York, on Friday, 1 June 1951, at 10.30 a. n. 

Report of the Commission to the Council (E/CN.1/L.17, E/CN.1/L.17/Add.l 
E/CN.1/L.17/Add.2, E/CN.1/L.17/Add.3, E/CN.1/L.17/Add.4) (continued). 

Chairman : Mr. Nunes Guimares, Brazil. 

Members : Mr. Bunge, Argentina ; Mr. Bury,* Australia ; Mr. Woulbroun,* 
Belgium; Mr. Wolfson,* Canada; Mr. Cha,* China; Mr. Nosek, Czechoslovakia; 
Mr. Dayras,* France ; Mr. Saksena, India ; Mr. Bjerve,* Norway ; Mr. Madrigal, 
Philippines; Mr. Szymanowski,* Poland; Mr. Chernyschev, Union of Soviet So- 
cialist Reptdlics; Mr. Wilson,* United Kingdom of Great Britain and Northern 
Ireland ; Mr. Stinebower, United States of America ; Mr. Lang, Yugoslavia. 

Representatives of specialized agencies : Mr. Dawson, International Labour 
Organisation (ILO) ; Mr. Lopez Herrarte, International Bank for Reconstruc- 
tion and Development (Bank) ; Mr. Hassanein, International Monetary Fund 
(Fund). 

Representatives of non-governmental organizations. — Category A : Miss Kahn, 
World Federation of Trade Unions (WFTU) ; Miss Sansom, International Cham- 
ber of Commerce (ICC) ; Mr. Woodcock, International Co-operative Alliance 
(ICA). 

Secretariat : Mr. Weintraub, Secretary of the Commission. 

Report of the Commission to the Council ( E/CN.1/L.17, E/CN.1/L.17/Add.l, 
E/CN.1/L.17/Add.2, E/CN.1/L.17/Add.3, E/CN.1/L.17/Add.4) (continued). 

Paragraph S3 {E/CN.l/L.n/Add.2) 

Mr. Lang (Yugoslavia) suggested that in the second sentence it would be more 
correct to say "The view prevailed" rather than "It is the Commission's general 
view." 

Mr. Weintraub [Secretariat) suggested that the Commission might wish to 
delete the reference in the third sentence to the Department of Economic Affairs 
of the United Nations Secretariat in view of the fact that the Expanded Pro- 
gramme of Technical Assistance embraced the ivhole of the United Nations and 
the participating specialized agencies. 

******** 

[Page 8.] 

Mr. Bjerve (Noi-way) thought that the sentence referring to the part of the 
experts' recommendation vphich dealt with technical assistance was not clear. 
He did not know what the words "such need" referred to, and suggested that a 
more satisfactory form might be found. 

Mr. Weintraub (Secretary of the Commission) suggested that the sentence 
might be clearer if the words "such need" were replaced by "the need for a neto 
international agency". 

It was so agreed. 

Paragraph 33 in its amended form was approved by the Commission without 
further comment. 

The meeting rose at 12 : 50 p. m. 



•Alternates. 



2912 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

United Nations Economic and Social Council 

General 

E/CN.1/SR.128 

19 June 1951 

English 

Original : French 

ECONOMIC, EMPLOYMENT AND DEVELOPMENT COMMISSION 

Sixth Session 

provisional summary record of the hundred and twenty-eighth meeting 

Held at Headquarters, New York, on Thrusday, 31 May 1951, at 2 : 30 p. m. 

Contents : 

Draft report of the Commission to the Economic and Social Council (E/CN.l/ 
L.17/Add.l, E/CN.1/L.17/Add.2, E/CN.1/L.17/Add.3, E/CN.1/L.17/Add.4) (con- 
tinued). 

Chairman : Mr. Nunes Guimaraes, Brazil. 

Members : Mr. Bunge, Argentina ; Mr. Bury,* Australia ; Mr, Woulbroun,* Bel- 
gium ; Mr. Wolfson,* Canada; Mr. Cha,* China; Mr. Nosek,* Czechoslovakia; 
Mr. Dayras,* France; Mr. Saksena, India; Mr. Bjerve,* Norway; Mr. Garcia,* 
Philippines; Mr. Katz-Suchy, Poland; Mr. Chernyshev, Union of Soviet Socialist 
Republics; Mr. Wilson,* United Kingdom of Great Britain and Northern Ireland ; 
Mr. Stinebower, United States of America ; Mr. Lang, Yugoslavia. 

Representatives of specialized agencies : Mr. Dawson, International Labour 
Organisation (ILO) ; Mr. Lopez Herrarte, International Bank for Reconstruc- 
tion and Development (Bank) ; Mr. Hassanein, International Monetary Fund 
(Fund). 

Representatives of non-governmental organizations in Category A : Miss Kahn, 
World Federation of Trade Unions (WFTU) ; Mr. Woodcock, International 
Chamber of Commerce (ICC). 

Secretariat: Mr. Weintraub, Secretary of the Commission; Mr. Varley, As- 
sistant Secretary. 

Draft report of the Commission to the Economic and Social Council (E/CN. 
1/L.17/Add. 1, E/CN.1/L.17/Add. 2, E/CN.1/L.17/Add. 3, E/CN.1/L.17/Add. 4) 
(continued). 

Paragraph 23 (continued) 

Mr. Weintraub (Secretary of the Commission) read paragraph 23 of the 
draft report as it had been amended at the previous meeting. 

Paragraph 23, as amended, was adopted. 
Paragraph 24 

Mr. Steinbower (United States of America) suggested that the words "to res- 
olution XVII" should be replaced by "to resolution XVI and XVII." 

Mr. Chernyshev (Union of Soviet Socialist Republicas) proposed that the end 
of the paragraph, from "and specifically draws" should be deleted. 

Mr. BuNGE (Argentina) suggested as a compromise solution that the phrase 
which the U. S. S. R. representative wished to delete should be retained but that 
it should begin : "a majority of the members of the Commission specifically draws 
the Council's attention * * * ". 

He felt that the Commission had been impressed praticularly by the principles 
embodied in the resolutions of the 4th Meeting of Consultation of Ministers of 
Foreign Affairs of American States, and suggested therefore that the words 
"and the principles on which they are based" should be added after the words 
"in April 1951." 

******* 

[Page 7.] 

Mr. Wolfson (Canada) thought it would be better not to refer to the Export- 
Import Bank specifically, nor to make any recommendation to the Council in 
that connexion. 

Mr. DAYitAS (France) observed that the main defect of recommendation 10 
was that it seemed to imply that once an organization had been established 



♦Alternates. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2913 

capital for investment with a view to economic development would automatically 
become available. 

Taking into consideration various amendments submitted by Mr. Wilson 
(United Kingdom), Mr. Stinebower (United States of America) and Mr. 
WoLFSON (Canada, Mr. Weintraub {Secretary of the Commission) suggested 
that the text should contain a special reference to capital from governmental 
sources; that part of the text which referred to the organization of foreign 
investment would be retained and would apply to public as well as private 
capital. 

3/r. Weintraub's proposal was adopted. 

Paragraph 27 

Mr. Dayras (France) observed that, in general, it might be objected that 
the opening words of recommendation 11, subparagraph (a), did not call for 
bilateral action and took no account of the resources of the developed coun- 
tries. For that reason, he proposed that the words "in particular," in the 
second line of paragraph 27, should be replaced by the phrase "not only take 
into consideration the possibilities of export of capital, but should have been 
addressed * * *" 

Mr. Lang (Yugoslavia) considered recommendation 11 to be unacceptable 
unless the necessity of strengthening the guarantees set forth in the Charter 
were emphasized. 

Jlr. Chernyshev (Union of Soviet Socialist Republics) recalled that he had 
already commented in detail on subparagraphs (a), (b), and (c) of recommen- 
dation 11. His views had, accordingly, been reported in the summary records. 
******* 

[Page 9.] 

The Chairman, speaking as the representative of Brazil, recalled his previous 
observations concerning the wisdom of safeguarding foreign investments. For 
that reason, he proposed that following the words "cannot create the climate," 
a phrase should be added to the effect that certain representatives had, never- 
theless, expressed the view that capital exporting countries should take the 
initiative as regards measures to safeguard such foreign investments. 

Mr. Dayras (France) did not think that the amendment suggested by the 
Chairman would serve any useful purpose unless it was accompanied by gen- 
eral remarks on the question of the provision of capital. The extent of the 
resources of the developed countries in that field should be taken into con- 
sideration. 

Mr. WoLFSON (Canada) pointed out that the question raised by the repre- 
sentative of Brazil was a complex one and should be set forth in considerable 
detail. A brief statement might present the matter in the wrong light. 

Mr. Saksena (India) supported the Chairman's view and proposed the fol- 
lowing wording: "Some members of the Commission felt that foreign private 
capital would be greatly stimulated if the developed countries were to insure it 
against non-commercial risks." 

Mr. Dayras (France) had no objection to the wording proposed by the repre- 
sentative of India; such measures would obviously facilitate a solution of 
the problem. 

Mr. Katz-Suchy {Poland) ivondered whether capital should be thought of in 
terms of national boundaries. In reply to a comment by the Chairman, he 
observed that the concern manifested by some representatives to ensure the 
transfer of capital appeared to be inconsistent with any desire to constitute 
international reserves of capital. 

Mr. Chernyshev (Union of Soviet Socialist Republics) proposed that the 
words "The Commission * * *" at the beginning of the paragraph should be 
replaced by the words "The majority of the members of the Commission * * *" 
since his delegation did not share the view expressed in the paragraph. Further, 
he suggested that the last part of the last sentence, following the words "by 
the United Nations," should be replaced by the words "since the question dealt 
with in subparagraph (c) of that recommendation should be left entirely to 
bilateral negotiations." 

Mr. Lang (Yugoslavia) proposed that the words "The Commission," in the 
first and third sentences of the paragraph, should be replaced by the words 
"The majority of the members of the Commission." 

The Yugoslav amendment was adopted. 



2914 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Paragraph 28 

Mr. Lang. {Yugoslavia) proposed that the words "in particular, through 
United Nations organisations" should be added in the fifth line, after the words 
"■international capital." 

Mr. Bury (Australia) said that that was a substantive amendment and asked 
to what oi'ganizations the Yugoslav representative was referring. 

Mr. Lang (Yugoslavia) said that he had in mind existing organizations and 
organizations that might be set up in the future. 

Mr. Bury {Australia) agreed to the amendment as it applied to existing 
organizations but was unable to accept the implication that special bodies would 
have to be set up. 

Mr. Wilson (United Kingdom) remarked that the Commission was anticipat- 
ing the succeeding paragraphs of the draft report. Paragraph 28 formed the 
preamble, in which a general picture of the Commission's views on group C 
of the experts' recommendations was presented. He suggested that the amend- 
ment should be discussed in connection with one of the succeeding paragraphs, 
which laid down the methods to be followed. 

Mr. WouLBROUN (Belgium) supported the United Kingdom representative's 
view, adding that the majority of the Commission had unequivocably opposed the 
setting up of new international organizations for the financing of economic 
development. 

Mr. Bjeeve (Norway) proposed that the words "to the underdeveloped conn-" 
tries" should be inserted at the same iK)int in the parasr;iph. The present text 
did not mention whether the flow of international capital was to be directed. 

Mr. Dayras ( France ) agreed with the Belgian repre.«!entative. 

Mr. Chernyshev (Union of Soviet Socialist Republics) considered that the 
first sentence exaggerated the part played by foreign capital. As he had already 
stressed, it was less the volume than the purpose of foreign investments that 
mattered. In exporting their capital, some countries were seeking, not to help 
the underdeveloped countrie.s, but to establish economic domination. 

He also proposed that the words "the majority of the Commission agrees" 
should be substituted for "the Commission agrees * * *" in the first sentence. 
He would not press for liis amendment to be put to the vote ; it would suffice 
if his opinion was recorded in the summary record. 

Mr. Lang {Yugoslavia) did not think the insertion of the phrase ''in particular 
through United Nations organizations" implied that new bodies %oere needed. 
Much of the discussion in the Commission, had, in fact, turned on the way in 
which the contribution of international capital could be increased through United- 
Nations bodies. 

Mr. Bitry {Australia) observed that the main thing was to speed up the flow 
of international capital investments to under-developed countries. There was no 
need for that paragraph to impose any restriction on the source of such oapital. 
United Nations organizations could be mentioned in one of the foUoioiny para- 
graphs, dealing with the sources of capital that should be called upon. 

Mr. Saksena (India) said that, if the Commission wished, in the second 
sentence, to draw attention to certain weaknesses in the experts' report, it should 
be more specific. The sentence should be either amplified or omitted entirely. 

Referring to the last sentence of the first paragraph, he considered that the 
opinion of members who had opposed the view expressed therein ought to be 
given in the reimrt, and proposed the addition of the following sentence: "Other 
members pointed out, however, that this increased volume of foreign exchange 
has been obtained through the operation of factors which were not of a durable 
nature and that these earnings of foreign exchange could not be diverted to 
economic development purposes without strengthening inflationary pressures in 
the underdeveloped countries." 

Mr. Wilson (United Kingdom) supported the first suggestion made by the 
Indian representative. He thought it would be useful to specify the omissions 
in the experts' report. Referring to the second line of the paragraph, he i>ointed 
out that the wording should be either "accelerated development" or "increase 
the rate of development." 

Mr. Garcia (Philippines), in reply to the Indian representative, would prefer 
the second sentence to be omitted entirely rather than that the omissions of 
which the experts were accused should be specified. To do that would weaken 
the paragraph as a whole. 

He supported the Indian representative's second amendment. 



SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 2915 

Mr WouLBROUN (Belgium) remarked that the last sentence of the paragraph 
contained a simple statement of fact. He failed to see any objection to its being 
supplemented by the Indian amendment. 

(Mr Stinebower (United States of America) was in favour of the proposed 
additions to paragraph 28. He feared that the Yugoslav amendment might give 
the impression that the Commission did not unsh to increase the flow of foreign 
investments from sourees other than United Nations organizations. 

He proposed tliat the meaning of the last sentence of the paragraph should be 
made clearer by the addition of the words : "especially in relation to the supplies 
of capital equipment likely to be available in the near future." 

Mr. Weinteaub (Secretary of the Commission) read out paragraph 28 with 
all the suggested amendments. 

Mr. WoLFSON (Canada) said that the Yugoslav amendment would not preclude 
recourse to sources of capital other than United Nations organizations, but that 
a casual reader might gain the impression that the Commission was chiefly 
advocating the use of the latter. He accordingly asked the Yugoslav representa- 
tive to withdraw his amendment, failing which he would propose that the words 
"international organizations' should be substituted for "United Nations organ- 
izations." 

With reference to the Indian amendment to the second sentence, he would like 
the present wording of the paragraph to be retained, but would prefer the 
sentence to be amplified, rather than omitted. 

Mr. Dayras (France) said that to adopt a form of words restricting possible 
sources of financing for economic development would be contrary to the general 
tenor of the report and to the recommendation that the Commission had adopted 
regarding the setting up in each country of a bank specially to deal with foreign 
credits. 

Mr. Lang (Yugoslavia) explained that his amendment related to the title of 
the section containing paragraph 28 : "Action by the United Nations and other 
international agencies." 

Mr. AVoLFsoN (Canada) felt that in that case it would be better to say "through 
international agencies." 

Mr. AVii.soN (United Kingdom) agreed that section C dealt with action to be 
taken by the United Nations and other international agencies. Paragraph 28, 
however, was a preamble which was intended to state the general theory that 
international investment in underdeveloped countries ought to be substantially 
increased. 

Mr. Lang (Yugoslavia) repeated that the title of section C covered action both 
by the United Nations and by other international agencies. He had already 
pointed out that the agencies other than the United Nations and its organization 
had hitherto been more active. That icas whu the future contrihution by United 
Nations organizations should be stressed. 

Mr. Weintraub (Secretary of the Commission) wondered whether the objec- 
tions to the Yugoslav amendment might not be eliminated by deleting the words 
"in particular." 

Mr. Bury (Australia) considered that that suggestion would make the sentence 
even les.-i acceptable. 

Mr. WouT.BRorN (Belgium) pointed out that private capital was also needed 
for the economic development of underdeveloped countries. Accordingly, , it 
would not help those countries to restrict the source of capital to international 
organizations. 

ISIr. Lang (Yugoslavia) observed that the contribution of private capital had 
been studied under a different heading. The paragraph under consideration 
dealt with international organs. 

Mr. Bury (Australia) said that underdeveloped countries might receive finan- 
cial assistance for their economic derelopment from international sources other 
than United Nations organs. 

]\Ir. Weintraub (Secretary of the Commission) suggested that the question 
should be left in abeyance for the time being, and read out the text of the para- 
graph as amended so far. 

Mr. WoLFsoN (Canada) recalled that he had opposed the deletion of the second 
sentence. 

The Chairman, speaking as the representative of Brazil, supported the Cana- 
dian representative's view, and thought that the second sentence should indicate 
the methods to be applied by underdeveloped countries with a view to ensuring 
effective utilization of foreign capital. 

Mr. Bjerve (Norway) proposed that the second part of paragraph 28 Should 
begin with the words "Some members felt that * * *." 



2916 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

United Nations Economic and Social, CJouncil 

General 
E/CN.1/SR.132 
20 June 1951 
English 
Original : French 

ECONOMIC, EMPLOYMENT AND DEVELOPMENT COMMISSION 

SUMMAKY RECOKD OF THE HUNDKED AND THIRTY-SECOND MEETING 

Held at Headquarters, New York, on Monday, 4 June 1951, at 2 : 30 p. m. 

Contents : 

Draft report of the Commission to the Economic and Social Coucil (E/CN.l/ 
L.20, E/CN.1/L.20/Add.l and E/CN.1/L.20/Add.2) (continued). 

Chairman : Mr. Nunes Guimaraes, Brazil. 

Members : Mr. Bunge, Argentina ; Mr. Bury,* Australia ; Mr. Woulbroun,* Bel- 
gium ; Mr. Wolfson,* Canada ; Mr. Cha,* China ; Mr. Nosek,* Czecholsovakia; Mr. 
Dayras,* France ; Mr. Saksena, India ; Mr. Garcia, Philippines ; Mr. Szymanow- 
ski,* Poland; Mr. Chernyshev, Union of Soviet Socialist Republics; Mr. Wilson,* 
United Kingdom of Great Britain and Northern Ireland ; I\Ir. Stinebower, United 
States of America ; Mr. Lang, Yugoslavia. 

Representative of a specialized agency: Miss Bancs, Food and Agriculture 
Organization (FAO). 

Representatives of nongovernmental organizations — Category A: Miss Kahn, 
World Federation of Trade Unions (WFTU). Category B : Miss Sansom, Inter- 
national Chamber of Commerce (ICC) ; Mr. Brophy, International Confedera- 
tion of Free Trade Unions (ICFTU). 

Secretariat : Mr: Weintraul), Secretary of the Commission. 

Draft report of the Commission to the Economic and Social Council (E/CN.l/ 
L.20, E/CN.1/L.20/Add.l and E/CN.1/L.20/Add.2) (continued). 

Paragraph 22 {E/CN.l /L.20 /Add.l) 

Mr. Wilson (United Kingdom) suggested that the first sentence of paragraph 
22, which he considered unsatisfactory should be amended by placing a full stop 
after the word "indivisibility" and deleting the rest of the sentence. 

Mr. Cha (China) thought that the second sentence in paragraph 22 as it stood 
emphasized that the underdeveloped countries agreed that the developed coun- 
tries must maintain a high level of economic activity and employment. It 
should also be made clear, however, that the underdeveloped countries must also 
maintain a high level of employment, and the sentence should thei'efore be 
changed. 

Mr. Wolfson (Canada) said that the paragraph would become meaningless 
if the underdeveloped countries were mentioned. The present form of words 
merely meant that only developed countries whose economic activity was main- 
tained at a high and stable level could effectively help the underdeveloped coun- 
tries. It was too readily assumed that the developed countries could assist the 
underdeveloped countries regardless of their economic condition. 

* If * * * * * 

[Page 6.] 
[/Se] Paragraph 26 

Mr. Lang (Yugoslavia) proposed that the following sentence should be added 
after the words "appreciably accelerated" in line 8 : "it is the view of the Com- 
mission that attention should be paid to the study of augmenting the interna- 
tional flow of capital through United Nations agencies." The words in paren- 
theses would then be deleted. 

Mr. Wolfson (Canada) proposed the formula "through United Nations special- 
ized agencies" in order to eliminate any ambiguity. The formula proposed by 
Mr. Lang would automatically imply the International Bank. 

Mr. Weintraxjh (Secretary of the Commission) proposed the formula "through 
international organizations of the United Nations." 



♦Alternate. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2917 

Mr. Garcia (Philippines) proposed that the word "public" should be inserted 
before the word "capital" in line 5. 

I\Ir. WoLFSON (Canada) proposed the deletion of the word "international" 
which recurred at a later point in the text. 

Mr. Wilson (United Kingdom) did not find the Philippine representative's 
suggestion satisfactory because it contradicted subsequent paragraphs. What 
mattered most was to increase the flow of private capital. 

Mr. Ctarcia (Philippines) said that he would not press his proposal. 

Mr. WoLFSON (Canada) said that there should be an amendment to the clause 
"that this increased volume of foreign exchange has been obtained through the 
operation of factors * * * in the underdeveloped countries." 

« * * » * * * 

[Page 10.] 

After a brief discussion in which Mr. Wolfson (Canada), Mr. Saksena 
(India), Mr. Lang (Yugoslavia) and Mr. Stinebower (United States of 
America) took part, the Commission decided not to consider the following pro- 
posals: (a) the Aiistralian representative's proposals; (b) the United Kingdom 
representative's proposal for the insertion of a preamble at the beginning of 
paragraph .32, and (c) the Canadian representative's proposal for the insertion 
in paragraph 32 of a clause indicating that some members had considered that 
the question dealt with in paragraph 32 had been sufficiently discussed in the 
Commission. 

Mr. Weintraub {Secretary of the Commission) drew attention to the CounciVs 
procedure in considering recommendations in the reports of its Commissions. 
The Council considered itself seized of any recommendation submitted in those 
reports unless it ivas stipulated that a recommendation was subtnitted by the 
mdnority, in which case the Council gave it no consideration. 

Mr. WoLFsoN (Canada) said that in the circumstances he would accept the 
Indian representative's proposal. 

Mr. Wilson (United Kingdom) proposed that the words "were of the opinion" 
should be substituted for the words "were of the view", at the beginning of 
paragraph 32. 

Mr. Weintraub (Seci-etary of the Commission) proposed that the word "pay- 
ment," in line 16 (page 2) should be replaced by the word "payments." The 
amended text of paragraph .32 would then read : "Some members of the Com- 
mission, who dissented from the majority views contained, in paragraph, SI above, 
were of the opinion that the Council's desire expressed in paragraph 3 of its 
resolution 341 (XII) to consider practical methods in conditions and policies 
for improving or augmenting the existing sources of external finance, both private 
and public, with a view to achieving an adequate expansion and a steadier * * * 
• * * « * « * 

[Page 17.] 

Mr. Wilson (United Kingdom) noted that the problem was of very great 
importance and that all the members of the Commission but three were agreed 
in recognizing the existence of the inter-relationship. As the Population Com- 
mission was not at present dealing with it and the Council was currently contem- 
plating a reorganization of the work of its Commissions the problem should be 
brought to the Council's attention. 

The Chairman put the U. S. S. R. representative's proposal to the vote. 

The U. S. S. R. proposal was rejected by 7 votes to 4, with 4 abstentions. 

Mr. Chernyshev (Union of Soviet Socialist Republics) accordingly asked 
that the words "the majority of the Commission" should be substituted for "the 
Commission" in paragraph 21. 

Mr. Stinebower (United States of America) suggested that a statement should 
be inserted after the first sentence in the paragraph, to replace the remainder 
of its original text, to the effect that the Commission was unable to make specific 
recommendations on the subject, but recommended that the Council and the 
Population Commission should study it. 

Mr. WoLFsON (Canada) considering that the wording proposed by the United 
States representative could be adopted only if the Population Commission was 
already dealing with the matter. If that was not so the Council should be asked 
to invite the Population Commission to study the problem. 

Mr. WoULBROUN (Belgium) found the wording proposed by the United States 
representative adequate. He read an extract from the Population Commission's 
report, making reference to both demographic and economic factors. 



2918 SCOPE OF SOVIET ACTIVITY IX THE "LTSriTED STATES 

Mr. Weintraub {Secretary of the Commission) quoted a draft resolution from 
the report of the Population Commission to the thirteenth session of the Economic 
and Social Council, in xchich reference was made to the inter-relationship of 
economic, social and demographic factors. 

Mr. WoLFSON (Canada) thought that the studies of the matter contemplated 
by the Population Commission were merely theoretical and had no direct con- 
nection with what the Commis.sion was discus.sing. The Council should invite the 
Population Commission or other appropriate bodies to carry out more detailed 
studies. 

The Commission adopted the text proposed by the United States represent- 
ative, with amendments, reading as follows : 

"The Commission is unable to make any specific recommendation on this sub- 
ject. However, the majority of the Commission considers that the Council, 
itself or through such organs as it may specify, should keep the relationship 
between population growth and economic de^■elopment under study as a matter 
of importance." 

Paragraphs S3 to S5 (E/CN. 1/L. 20/ Add. 2) 

Paragraphs 33 to 35 were adopted. 

Paragraph 26 [continued) (E/CN. 1/L. 20/ Add. 1) 

Mr. Weintraiil) (Secretary of the Commission) announced that the Secretariat 
had drafted a text which he read: it was supported by the representatives of 
Brazil, India and the United Kingdom. 

Mr. Stineboweb (United States of A7nerica), while he could not object to a 
text stating only the opinions of other representatives, he wished to have it 
noted in the summary record that, in his opinion, the text contained economic 
inaccuracies and impaired the quality of the report. 

Mr. WoLFSON {Canada) shared the United States representativ-e's opinion. 
He considered the text faulty both in substance and in form. 

Mr. Saksema {India) agreed with the United States representative's criti- 
cisms and suggested adoption of the amendment previously submitted by the 
United Kingdom representative — his approval of which he had already sig- 
nified. 

The Commission adopted the text proposed by the United Kingdom repre- 
sentative, with a number of drafting amendments, to the following effect : 

"That these earnings of foreign exchange, if directed to economic develop- 
ment purposes, might aggravate domestic inflation in underdeveloped countries." 

Adoption of the report as a ivhole 

Mr. Chernyshev (Union of Soviet Socialist Republics) wished to state, before 
the vote was taken on the report as a whole, that the report of the Group of 
Experts which the Commission had been considering was a harmful document and 
could not serve as basis for a thorough consideratiton of the problem of economic 
development ; the U. S. S. R. delegation had already expressed its view on the 
subject at the meeting of 17 May. The Commission's report which was based on 
the report of the Group of Experts, advised the underdeveloped countries with- 
out justification to make use of foreign capital rather than of their domestic re- 
sources. Some statements in the Commission's report were even stronger than 
the recommendations of the Group of Experts, in particular the statements 
concerning land tenure adopted at the morning meeting. The U. S. S. R. dele- 
gation would therefore be compelled to vote against the report. 

Mr. Nosek (Czechoslovakia) also wished to explain his delegation's attitude 
toward the Commission's report. The Czechoslovakia delegation had already 
stated its objections to certain recommendations of the Group of Experts during 
the discussion of items 3 and 4 of the agenda. Since the Commission's report 
repeated the basic recommendations of the Group of Experts, his delegation was 
compelled to vote against it. 

Mr. SzYMANOSKY (Poland) agreed with the U. S. S. R. and Czechoslovak rep- 
resentatives. The Commission had the important function of drawing the Coun- 
cil's attention to means of promoting economic development. The Commission's 
report, however, endorsed the ideas of the Group of Experts to which the Polish 
delegation had already taken exception. The Polish delegation would accordingly 
have to vote against the Commission's report. 

Mr. Saksema (India), speaking on a point of order, observed that the members 
of the Commission were not being asked to approve the recommendations of 
the Group of Experts by their votes, but merely the Commission's report, con- 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2919 

taining a summary of the discussions that had taken i^lace in the Commission 
and their outcome. 

The Chairman, speaking as representative of Brazil, asked for his view to be 
recordetl in the summary record that the report of the Group of Experts was a 
valuable contribution to the study of the basic problem of economic development. 
The report covered all important aspects of the problem. Undoubtedly it had 
faults, but they were slight in comparison to its very real qualities. He paid a 
tribute to the Experts, and to the Secretary General who had chosen them, and de- 
clared that the report would form the basis for future detailed studies. 

He put the Commission's report as a whole to the vote. 

The report was adopted by 12 votes to 3. 

Before adjourning- the meeting and closing the session, which might be the 
Commission's last, the Chairman thanked the representatives for their collabo- 
ration and observed that, whatever its fate, the report would testify to the spirit 
of cooperation that had prevailed in the Commission. He also thanked the repre- 
sentatives of the specialized agencies and the nongovernmental organizations, 
and the Secretariat, in particular Mr. Weintraub, the Secretary of the Comtnis- 
sion. for their valuable collaboration. 

Mr. Woi-FSON (Canada), on behalf of the Commission, thanked the Chairman 
and the other officers of the Commission and the Secretariat. 

The Chairman proposed that he should send messages, in the name of the 
Commission, to its past Chairmen, Mr. Wilson and Mr. Frisch. 

The meeting rose at 6 : 30 p. m. 



fExcerpt from article, "Assembly Acts To Further Economic Development," in United 
Nations Bulletin of December 1, 1&50, p. 605] 

1. Need for Land Reforms 

Measures to hasten agricultural progress in underdeveloped countries are 
dealt with in two resolutions which the General Assembly adopted. The first 
calls for study and recommendations by the Economic and Social Council to 
reform agrarian conditions, particularly land tenure systems, which hinder the 
economic development of many underdeveloped countries. In planning such 
measures, Member countries, the resolution recommends, might avail them- 
selves of expert advice through the expanded technical assistance program. 

The second resolution calls on the Council to consider measures to facilitate 
and encourage the development of arid lands. 

The resolutions resulted from the discussion in the Second Committee of a 
Polish proposal and the various amendments suggested by Argentina, Chile, 
Colombia, Cuba, Egypt, Haiti, Peru, the United Kingdom, the United States, 
and Yugoslavia. 

polish proposal 

Because "anachronistic agrarian conditions" are a barrier to the development 
of economically backward areas, a cause of low agricultural productivity and 
low living standards, Poland proposed that the Council should, at its thirteenth 
session and on the basis of a report to be prepared by the Secretary General, 
draw up recommendations for improving the conditions of "landless, small 
and middle peasants" by: (a) land reforms; (b) governmental aid through 
cheap agricultural credit facilities and comprehensive technical assistance; (c) 
construction of small factories and workshops for making and repairing essen- 
tial agricultural machinery, equipment and spare parts; (d) easing the tax 
burden; and (e) other welfare measures. 

Many of the representatives agreed on the neetl for agrarian reform, esjpe- 
cially of land tenure .systems. 

.John J. Sparkman, for instance, said that the United States supported the 
principle that land should belong to those who cultivated it. Accordingly, he 
proposed a number of amendments to promote family owned and operated farms 
and the development of rural cooperatives * * *. 

STUDY OF ARID ZONES 

In Egypt, for instance, as in many other countries in Asia, Africa, and Latin 
America, low rural living standards were often due rather to the low acreage 
under cultivation. Wherever possible, therefore, the arid zones of these areas 
72723—57 — pt. 42 4 



2920 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

should be brought under cultivation. This would provide more land for more 
equitable distribution among peasants * * *. 

FINDINGS PREJUDGED 

The representatives of Belgium, the Netherlands, and the United Kingdom 
thought the Polish proposal prejudged the findings of the investigation it called 
for, although thev agreed that land reforms were important. 

Lord Ogmore, of the United Kingdom, also had some doubts about the motives 
behind the Polish proposal. In a recent statement, the Polish Minister of 
National Economy, had criticized Polish peasants for refusing to migrate to 
towns to enter industries there; he had favored the collective organization of 
agriculture, and had stated that rural capitalist elements would be "liquidated." 
Was it the intention to offer the same fate for cultivators in underdeveloped 

regions? ,. , 

The United Kingdom, like the United States, also felt that the Polish proposal 
should have provided for participation by the Food and Agriculture Organiza- 
tion in the work on agrarian reforms. Lord Ogmore agreed with the repre- 
sentatives of Canada and South Africa, that the proposal, by calling for more 
reports, would delay immediate action. 

He therefore proposed that the Economic and Social Council act in consul- 
tation with FAO and other specialized agencies concerned, to provide govern- 
ments of underdeveloped countries with expert advice : (a) for developing reform 
plans; (b) for rendering financial aid to farmers through agricultural credit 
facilities; (c) for constructing workshops to repair and service agricultural 
machinery; and (d) for other measures to promote the welfare of agricultural 
communities. 

By this amendment, the Secretary General would not be required to report 
to the Council on the effect of agrarian structures on conditions of landless, 
small and middle peasants in economically backward countries. 

Another point, made by the United States representatives, among others, was 
that there would not be sufficient time to prepare the study proposed by Poland 
for the thirteenth session of the Council. The matter should therefore be taken 
up at the fourteenth session. 

REPLY TO CRITICISMS 

Replying to Lord Ogmore's criticism of Polish intentions, Mieczyslaw Blusz- 
tajn said that the asrarian reforms undertaken in Poland after the war had not 
resulted in "liquidation" but in liberating the creative forces of peasants and 
creating an internal market for industrial products. Cheaper and better food 
had been produced for the urban population and the output of agricultural raw 
materials had risen. Because, however, small-holdings could not increase such 
output sufficiently to meet the demands of large-scale industrialization, co-opera- 
tive farming was needed. But this did not mean imposing reforms on peasants. 
Persuasion through demonstration was necessary, and cooperative farming ven- 
tures in Poland had been a great success as pilot projects. 

While he agreed that a system of small farmers might not be the ideal one, 
added Mr. Blusztain, he did not believe that a standard solution could be imposed 
indiscriminately. 

No one was proiwsing to change any country's way of life, said P. M. 
Chernyshev {U. 8. S. R.), who thought the United Kingdom was trying to divert 
attention from the need for prompt action on a vital problem. 

As for the role of the FAO, the whole matter before the Committee was one 
which concerned economic development. This was not, therefore a matter to be 
referred to FAO, competent though this agency rcas in its field. To do so loould 
mean placing limitations upon the powers of the Economic and Social Council. 

The innitation, dated March SO, 194S, which the United States sent to Allied 
Governments to ask them to attend the Hot Springs, Va., Conference on Food 
and Agriculture (which established FAO) opens as folloivs: "The Government 
of the United States of America is of the ojnnion that it is desirable now for the 
United Nations and those nations which are associated with them in this war to 
begin joint consideration of the basic economic problems with which they and the 
world will be confronted after complete military victory shall have been attained. 
Accordingly, and as a first step in this direction, the Government of the United 
States proposed to convene * * * a conference on food and other essential agri- 
cultural products, and hereby invites * * * 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2921 

The preamble of FAO's Constitution reads: "The Nations accepting this Con- 
stitution, being determined to promote the common welfare by furthering sepa- 
rate and collective action on their part for the purpose of * * * and thus con- 
tributing toward on expanding world economy." 

Article I of FAO's constitution reads, in part: "The Organization (FAO) shall 
promote and, where appropriate, shall recommend national and international ac- 
tion with respect to (a) scientific, technological, social and economic research 
relating to nutrition, food and agriculture * * * (e) the adoption of policies for 
the provision of adequate agricultural credit, national and international * * *. 
{a.) to furnish such technical assistance as governments may request." 

Eventually, the Committee decided to refer the Polish proposal, together with 
the various amendments to a subcommittee. 

Two draft resolutions vfere evolved. One dealing with the agrarian reforms es- 
pecially in land tenure systems, was approved by the Committee by 50 votes 
to 0, with 1 abstention. The other, dealing with the development of arid lands, 
was adopted unanimously, after one change was made in Committee. 

* * * 

David Weintraul) served as Secretariat adviser to the Committee in its dis- 
cussion on development of arid lands. 



United Nations Economic and Social Council 

Distr. 
General 
E/TAC/SR.57 
9 December 1953 
English 

Original : French 
Sixteenth Session 

Technical Assistance Committee 

summary kecord of the fifty-seventh meeting 

Held at Headquarters, New York on Wednesday, 25 November 1953, at 10 : 30 a. m. 

Contents : 

Technical assistance: Financial arrangements for the Expanded Programme 
of Technical Assistance (E/TAC/23, L.51 to L.53. 

Present : 

Chairman : Mr. de Seynes, France. 

Members : Mr. Brennan, Australia ; Mr. Woulbroun, Belgium ; Mr. Cha, China ; 
Mr. Gorse, France ; Mr. Singh, India ; Mr. Blusztajn, Poland ; Mr. Westerberg, 
Sweden ; Mr. Akant, Turkey ; Mr. Rassadin, Union of Soviet Socialist Republics ; 
Mr. Barnes, United Kingdom of Great Britain and Northern Ireland ; Mr. Kots- 
chnig. United States of Ajuerica ; Mr. Alvarado, Venezuela ; Mr. Stanovnik, Yugo- 
slavia. 

Representatives of specialized agencies : Mr. Roux, International Labour 
Organization ; Miss Banos, Food and Agriculture Organization ; Mrs. Rommel, 
United Nations Educational, Scientific and Cultural Organization ; Dr. Coigny, 
World Health Organization. 

Secretariat : Mr. Owen, Executive Chairman, Technical Assistance Board ; 
Mr. Dumontet, Secretary of the Committee. 

Technical assistance : Financial arrangements for the expanded programme 
of technical assistance (E/TAC/23, L. 51 to L. 53). 

The Chairman recalled the provisions of Economic and Social Council resolu- 
tion 492 (XVI), part C (II) C, paragraph 7, under which the Technical Assist- 
ance Committee was requested to submit recommendations on the financial pro- 
cedures under which the Expanded Programme of Technical Assistance operated. 
The recommendations were to be submitted to the Economic and Social Council 
at its resumed session scheduled for Monday, 30 November 1953. The Working 
Party responsible for reviewing the financial procedures under which the Ex- 
panded Programme of Technical Assistance operated had presented an interim 
report (E/TAC/23). He declared open the discussion on the report. 



2922 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 

Mr. KoTSCHNiG (United States of America) said that the United States sin- 
cerely hoped that the Technical Assistance Board, on the basis of the Worlfing 
Party's discussions, would soon be able to make specific recommendations to 
ensure that the best iiossible financial arrangements would be made for the Ex- 
panded Programme. He expected that the Technical Assistance Board would 
act promptly on the suggestions submitted to the Working I'arty in that con- 
nection which were designed to give stal>ility to the iirogramme and to avoid 
recurrent crises. 

One of the most important questions still to be settled was that of allocations 
for new programmes. He assumed that the Technical Assistance Board, in 
deciding on the implementation of new programmes in 1954, would take care 
not to commit all the funds theoretically available and would set part of them 
aside for the continuation in 1955 of the work undertaken in 1954. 

His delegation would support the Working Party's interim report, but won- 
dered in what form the Technical Assistance Committee would submit it to the 
Economic and Social Council. 

The Chairman said that two procedures were possible : the Committee could 
authorize its Chairman to submit an oral report to the Council to explain the 
reasons why the TAC had been unable to make recommendations at the current 
session ; or the Committee could approve the Working Party's interim report 
and make such minor drafting changes as would in that case be necessary. 

Mr. Brennan (Australia) wished to bring to the attention of the Technical 
Assistance Committee a matter which he had already raised in the Working 
Party and to which his delegation attached primary imjiortance. His delegation 
was deeply interested in the Expanded Programme of Technical Assistance not 
only because it contributed to the economic development of the underdeveloped 
countries but also liecause it symbolized to some extent the desire of the United 
Nations to play a part in their development. It must not, however, be forgotten 
that assistance imder the Programme was granted on the application of govern- 
ments and after an agreement had been concluded between the government 
concerned and the international agencies. It was especially important for the 
agreement in question to be executed according to the terms and within the 
time specified, unless of course the agreement had been amended subsequent 
to negotiation between the two parties. The financial arrangements adopted 
nmst be such that it would be mathematically impossible not to complete a 
project for want of funds. On various occasions it had been necessary to change 
the time limits or actual parts of the programme, and his delegation hoped that 
that would not happen again. The Technical Assistance Board should give 
the matter very special, if not absolute, priority. Any negligence in that respect 
might create a bad impression concerning the Expanded Programme. 

The Chairman proposed that, subject to the approval of the Committee mem- 
bers, he should make an oral report to the Council to inform it that the Working 
Party had submitted no concrete proposal to the Committee on the financial 
arrangements to be adopted, but that it hoped to be able to make recommenda- 
tions in the matter later. 

It was so agreed. 

Mr. Rassadin (Vnion of Soviet Socialist Republics) recalled and stressed 
his GorernmenVs attitude totcards the use of the funds. The Special Fund, 
established by contributions from Member States, should be used directly by tin 
United Nations and not through the specialised nycncies. 

The meeting rose at 11 : 10 a. m. 



FAO Member Countries Which Are Not Members of the United Nations 

German Federal Republic 

Japan 

Korea 

Switzerland 

Viet Nam 

Tunisia 

(8% percent are not members of the U. N.) 



SCOPE OF SOVIET ACTIMTY IN THE UNITED STATES 2923 

United Nations Member Countries Which Are Not Members of FAO 

Albania 

Bulgaria 

Byelorussian Soviet Socialist Republic 

China 

Czechoslovakia 

Hun.ira ry 

Poland 

Romania 

Ukrainian Soviet Socialist Republic 

Union of Soviet Socialist Republics 

(13% percent are not members of FAO.) 

March 1956. 

Mr. Morris. I would like also to put into the record a letter of 
March 24, 1949, which again bears reference to the role of David 
Weintraub in the establishment of this particular project. 

Senator Jenner. It may go into record and become a part of the 
official record. 

(The document referred to was marked "Exhibit No. 307"' and is as 
follows :) 

Exhibit No. 307 

March 24, 1949. 
In reply refere to UNE. 

[Confidential] 

Mr. Karl Olsen, 

Food aiul Agriculture Oryunization of the United Nations, 

1201 Connecticut Avenue 2VW. 

Dear Karl : I want to thank you, INIr. McDougall, and the members of the 
technical divisions of FAO for the help that they have given us in making avail- 
able suggestions concerning possible expanded programs of technical assistance 
under the "bold new program" indicated in point IV of President Truman's 
sijeeeh. As indicated to you orally, these suggestions are being used by us as a 
guide to some of our planning, but it is thoroughly understood that the projects, 
as you submitted them to us and as we rewrote them, commit neither you nor 
us at this stage. Because they do, however, constitute the only working papers 
that we have available at the moment on the work of FAO in relation to point IV, 
we are trying to see that the projects are as well defined as possible and we want 
to keep them on hand for use as possible examples from time to time. 

I thought it might help you in planning if I passed on to you a number of 
comments concerning tliese projects which have been made in the course of our 
discussions at the working level. I am sure you will understand that in passing 
these comments on to you I am not indicating in any way the official endorse- 
ment of this Government regarding them, nor am I suggesting that you need 
necessarily follow them. You might, however, find some of these comments 
interesting and helpful in your planning for the ACC report. 

1. general 

"With reference to Mr. ^IcDougall's letter, we are taking note of his observations 
particularly with reference to the "A-2 items" which were included in our book 
as joint U. N./FAO projects. Since our book is not definitive, I am not pressing 
at this time to get a decision regarding the location of these particular projects 
in the U. N. scheme of things, but Mr. McDougall's notes will give us some indica- 
tion of the line which you are likely to follow in the AGO. 

Later we shall, of course, hopie to have a more definitive view as to the criteria 
to be applied for setting up joint projects as against separate specialized agency 
projects. In fact, the whole question as to the U. N.-specialized agency relation- 
ship is naturally one which will occupy a considerable amount of ACC attention 
and we hope that a formula will be agreed upon which will be mutually satisfac- 
tory to everyone concerned. Meanwhile, I might .say that what prompted the 
inclusion of all the pilot projects in the A-2 section was, that although these proj- 



2924 SCOPE OF SOVIET ACTIVITY IN THE UXITED STATES 

ects are strictly agricultural technology in the imme<liate phase of operation, 
it was felt that they should be set up and established in relationship to other 
broad economic development programs. It was our thinking, therefore, that 
while the operation of these plants probably would be exclusively FAO in the 
beginning stages, the decision as to their location, the ultimate economic effects of 
them, and related economic services such as transportation, marketing, or indus- 
trial development, should all be taken into account in the early planning stages. 
You ivill be studying this ^natter further with Mr. Weintrauh and so loill we. 

With reference to the FAO projects, I think that the most general comment that 
I have heard is that they do not at this stage show any overall integration into a 
common program. Questions have been raised in particular about the number of 
rather small projects since it is felt that they in themselves could accomplish 
very little unless they are a part of a larger enterprise. Also, the descriptions 
of a number of the projects still do not indicate sufficiently the extent to which 
the work of a number of different divisions would be involved. For example, 
although the programs in dairy production, agricultural machinery, land use and 
water control, etc. are primarily in the field of technical agriculture, they also 
have very definite economic implications and the economic factors of programs 
of this kind should be fully taken into account throughout the entire program. 
In these, as well as in many other programs, the nutritional objective should 
also be fully recognized by the inclusion of nutritionists in the particular opera- 
tion. It is believed, therefore, that when you come to do your draft program for 
the ACC you will want to concentrate on a few major, large programs which 
may include a number of smaller operations under one tent. It is assumed also 
that these programs will be developed in such a way that they show a complete 
recognition of economic and nutritional factors as well as technical factors 
involved. 

2. SPECIFIC 

There are some projects on which some specific comments have been made in 
which you might be interested. I am attaching a paper by Dr. Hazel Stiebling 
which concerns a number of projects in which she considers there should be a 
provision for nutritional work. Also, joint projects A-2-e (iv), A-2-e (vi) and 
A-2-e (vii) do have some elements of overlapping, partly because they were written 
by dilTerent organizations. Whenever you have a redraft of these items that 
you would care to give to us, we would be glad to include them in our background 
material as more representative of your thinking than the present descriptions. 

Questions have been specifically asked about projects B-2-e (i), forest fire con- 
trol, and B-l-c (iii), forestry schools. It has been i>ointed out that these are 
extremely small and it is wondered how effective such a program can be over 
such a short time and for such small sums of money. At your convenience, you 
might be willing to provide us with an expanded writeup of these projects indi- 
cating what could be accomplished in the time siiggested and what the nature of 
the followup would have to be in order to secure concrete results. A question 
was also raised about A-2-1, transportation systems for timber extraction. The 
question was raised as to whether this is a matter which requires particular 
technical assistance or whether it is one which depends upon capital development 
for transportation in general, of which a byproduct would he the building of 
branch lines for timiier. A more complete description of this project might help 
to answer these question. 

Projects concerned with water utilization are very troublesome and difficult 
to write up. It is recognized in our own Government that a part of this problem 
is the direct responsibility of agriculture and forestry, but you also have a larger 
problem of irrigation, flood control, and power development which, in our case, 
is handled by the Bureau of Reclamation or Army engineers. In the case of the 
U. N. organizations, it is clear that FAO has competence in a portion of this field 
but the U. N. is also planning to promote resource development programs and 
large-scale irrigation and flood-control projects to the extent that these can be pro- 
moted by the extension of technical cooperation. It is suggested that you may 
want to pay particular attention to the writeup of FAO's work in this field, ex- 
plaining even more clearly than is now done in projects B-2-b (i) and B-2-b (iii) 
FAO's particular work in this field. This is a subject in which it is assumed you 
will have some eonsultations with Weintraiib with regard to the hroad joint 
programs in which FAO might be expected to participate. 

The question of the relationship between the agi-icultural statistics training 
schools described in B-2-a (ii), with the broader statistical work to be pro- 
moted by the U. N., has also caused us some difiiculty. Fortunately, so far as 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2925 

this Government is concerned, Mr. Stuart Rice in the Budget Bureau is thoroughly 
familiar with the international aspects of this problem as well as the United 
States Government programs and will undoubtedly assist us in making an 
appropriate presentation of the various segments of the U. N. orgunizutions' 
programs in the statistical field. However, since these schools of FAO are 
considered to be one of your major successful projects, it is felt that it would 
be very useful to have a rather detailed description available as to the exact 
way in which such a school is organized and operated. We do not want to 
burden your staff excessively but if there is available a detailed report con- 
cerning either the Baghdad or Mexico City school, indicating the kinds of 
people who came, the curriculiun which was offered, the numbers of people 
involved, and the followup work, it would be much appreciated. 

Personally, I am not satisfied with the writeup of B-l-a, improvement of 
government agricultural services. This is really the objective of all of the 
work of the organization and I do not know whether it lends itself to a separate 
budgetary item. If this item was intended to mean primarily educational 
advisory services (extension) then I think it should have been so described 
and it should be made clear how this service would operate in relation to the 
other substantive programs. You will probably remember that the United 
States delegation pushed very hard at the last conference to have extension or 
educational advisory services carried on by FAO, not just in one division, such 
as Agriculture, but from a central oflace which should service the entire organi- 
zation. We are aware of the fact that this is a most difiicult type of activity 
to organize since you must have people who have a genuine understanding of 
educational methods and who have an appreciation of the social and economic 
backgrounds of the different areas of the world concerned. It is my impression 
that there is considerable disappointment that to date FAO has not pulled 
together its educational advisory services into one central place in order to 
assist governments to do this essential job. Whether item B-l-a should cover 
solely this program or whether you should set it up in another place from a 
budgetary point of view, I do not know, but I am flagging the problem for you 
as one on which a good many people have commented. 

Item A-2-0, food production in connection with the W'HO malaria program, 
is another troublesome item. We are aware of the fact that WHO has ear- 
marked some $4,500,000 for its part in this program and presumably FAO will 
be expected to develop a matching program of comparable size. Frankly, a good 
many of us cannot see where either organization, and most especially FAO, 
can possibly organize an effective program in 1 year on such magnitude. JU|St 
the recruitment problem alone is enormous and in the case of FAO you cer- 
tainly will have to make various basic surveys and do a lot of preliminary 
planning. Moreover, the job is bigger than just FAO/WHO which is why we 
placed the item as a joint project. Supposing you do eliminate malaria, who is 
going to build schools for the children, get railroads, sanitation, and sewage 
systems developed, get industries started which will employ the nonagricultural 
parts of the population and furnish markets for the food that FAO is going to 
get produced? It seems to us that this is a very important but a very long-term 
program and that it would be much wiser to budget on a very modest basis the 
first year, allowing plenty of time for surveys and planning for all segments 
of the economy and expanding over a period of years as new and different 
operations are required. This, of course, is something you will be discussing 
with WHO and U. N. and the views I have expressed reflect only personal com- 
ments rather than official observations. 

There are numerous other comments that could be made about specific projects 
but I might mention that at the present writing it would appear that the ratio 
of technical agriculture now appears to be too high in relation particularly to 
nutrition and economics. It would seem advisable to take a look at these pro- 
grams from an overall i)oint of view and make sure, as Dr. Stiebling has sug- 
gested, that nutrition work is adequately covered in each case and also that 
the necessary economic analyses and surveys are provided in connection with 
all technical agricultural activities. Otherwise, technical development might 
outrun economic development at such a rate that the result might be positively 
harmful. We have also had a recommendation from one of the United States 
departments that the Crop Reporting Service be included as an integral part 
of economics and statistics program of FAO. 

3. ADMINISTRATIVE PROBLEMS 

There are, of course, many points which you will be covering under sections 
II and III of the Economic and Social Council's Resolution, including the funda- 
mental questions of financing, organization of the program, and relationship 



2926 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

between the various U. N. orgiinizations. There are 1 or 2 general problems 
which we find we have to worlj on and I mention them to you, since you might 
find it useful also to be prepared on them for your discussions with AGO and 
later with governments. These are : 

Manpower.- — It has been pointed out, both in FAO meetings and within our 
Government, that in many cases the bottleneck is manpower and not money. 
It is suggested that as a part of your budgeting for all projects you should 
try to get as clear an idea as possible of the number of the people needed and 
the sources from which you expect to get them. In this connection, you may 
wish to begin the development of a roster of sources of personnel, including 
not only Governments but private scientific and business groups, from which 
technicians could be secured. Having this information at hand might serve 
you in very good stead when you come to definite program proposals. You 
will, of course, need to draw upon experts from a number of different coun- 
tries. Perhaps a joint survey by the U. N. organizations would be better 
than a series of separate ones by each specialized agency, but that is a matter 
which you vdll know more about than I do. 

RpspovaihUities as-^umed hy Governments. — You will doubtless be develop- 
ing for your own use, and perhaps for common approval by ACC, certain 
criteria and procedures to be used in connection with the commitments to be 
made by recipient Governments. In this connection, Mr. Caceres has already 
supplied us with some useful information concerning the financial arrange- 
ments for the FAO missions to Poland, Siam, Greece, etc. I believe you will 
find that procedures of this kind will need to be thought out in advance in 
considerable detail if the spirit of Mr. Thorp's speech and the letter of the 
ECOSOC resolution is to be carried out successfully. 

Cowporntlre rolite of different metlwds. — We have found it necessary to 
make quick spot checks of the experience of international organizations and 
United States agencies in connection with different kinds of technical assist- 
ance, such as missions, consultants, short training courses, fellowships, etc. 
You may find it very useful also to gather all the information you can since 
you may need to arrive at certain criteria as to the types of metJiods to be 
used under particular circumstances. In this connection, you will probably 
find it particularly helpful to study and describe the kinds of followup that 
you consider necessary in order to carry any given project through to comple- 
tion. This element of followup is one that is of great interest to our technical 
people and also to budgetary oflScers who do not like to see money appropri- 
ated for a lot of scattered enterprises which appear to have no evidence of 
followthrough. 

Priorities. — In conclusion, T might mention that our old friend "priorities" 
is still with us and will, I believe, play a considerable part in the thinking of 
the Governments which will have to decide what kinds of programs to 
authorize. FAO made a good beginning at the conference in setting up some 
standards for priorities and it would seem to me that you would find it useful 
to evaluate each of your proposed projects in the light of FAO's total effort 
and also in relation to general economic development. Practically every- 
thing that has been suggested is undoubtedly useful and needs to be per- 
formed some time, but it is possible that some items are firsts. To the 
extent that you can show that you have put first things first, I believe you will 
stand the best chance of justifying your program both in ACC and with 
Government. 
I hope that you will accept this letter as purely an effort to i>oint out to you 
some of the questions which I have seen personally during the last few weeks in 
working over some of these materials and some of the questions which we have 
had to answer for internal purposes in our planning. As I indicated earlier, this 
is not an official letter to you from the United States Government and you are 
free to use or discard any of these suggestions as you see fit. 

We shall look forward to exchanging further ideas with you as plans develop 
and will be glad at any time to furnish such information as we are free to do that 
might be helpful to you. 
Sincerely yours, 

Ursula Dttpfus. 
Division of United Nations Economic and Social Affairs. 

Enclosure : Paper by Dr. Stiebling. 

P. S. There are two items which I forgot to include in the letter. 
Fisheries. — I have heard no adverse comments at all about the proposed fisher- 
ies program. The financial estimates are noticeably very small. It is wondered 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2927 

whether this is primarily because of conservative budgeting policy — a policy 
which the United States Government does not object to — or whether it arises 
from the fact that there is such a shortage of fisheries personnel that it is not 
possible to expand very rapidly in this field at the present time. It is assumed 
that the shortage of personnel does constitute a very serious handicap in this 
field and it might, therefore, be advisable for you to plan a relatively consei'vative 
fisheries program in the first year but to plan for a more rapid expansion if and 
when more trained people can become available to cai*ry out an expanded program 
of technical cooperation and advisory services. 

Administrative costs. — Our figures in the book admittedly do not give a clear 
picture of the items the figures are intended to cover. Since we are not using 
our book for purposes of exact budget justifications, we have not tried to break 
down all these items into all the fine elements of a budget. In general, the item 
which we marked "administrative" was supposed to cover the basic "housekeep- 
ing costs" of an expanded program such as additional personnel and clerical 
services, bookkeeping and financial administration, travel services, stationery, 
cables, etc. We have not actually budgeted items such as income tax reimburse- 
ment, installation costs, and allowances which FAO might have to pay to per- 
sonnel taken on the payroll for a period of a year. We have definitely omitted 
from our calculations any expenditures for per diem and travel within countries 
and for local expenses which could be paid in local currencies since we feel these 
items should be covered by the recipient Governments. For budget purposes, you 
might need to show amounts of these items in the total cost of the project and at 
the same time indicate the portion of the expenses that you would expect to have 
covered by the local government and by the organization. Our figure for admin- 
istration, then, covering as it does only "housekeeping expenses," was estimated 
at about 5 percent of the total. This was considered by some to be a fair figure 
since it is the earnest hope of people working on this program that the strictly 
administrative costs can be kept to a minimum and that the existing establish- 
ment will become increasingly efiicient and absorb some of these costs through 
streamlining operations. 

In a number of our financial statements we have an item called "Technical 
services, materials, etc." We could not break this down into any more detail 
because we did not have enough information as to the exact stei)s involved in the 
particular projects. You will, however, want to show for each project the approx- 
imate costs for items such as meetings, additional technical staff at headquarters, 
additional research and technical services directly connected with the project, 
materials used for demonstration purposes, sample seeds, vaccines, etc. It is 
believed that aU of these are recognized as legitimate items in work of this kind 
but they should be clearly shown for each project. 

It is recognized also that the item referreil to in Mr. McDougall's letter for 
information materials, such as film strips, pamphlets, charts, etc., is a very 
legitimate and important item and this should be carefully figured for each of 
your projects. Again we did not put this into a separate item because we did 
not have enough information as to the proportion of this service required for each 
separate project. It is suggested that you will want to include anywhere from 
5 to 10 i)ercent for services of this kind depending upon the nature of the project 
and the country and background of the people concerned. In this connection, 
you may find that there will be an unbearable burden upon your headquarters 
translation stafE if you attempt to produce all these materials at headquarters. 
You will probably look into the question of developing local talent and resources 
for producing or reproducing visual materials in native languages. In fact, this 
seems to be one item which might be directly chargeable to recipient governments 
in many cases. 

Economics and statistics. — ^Just a few minutes ago I received a memorandum 
from Dr. F. F. Eliott of BAE but I had to give it immediately to someone else in 
this Government working on statistical programs. My memory of his comments 
on the FAO projects is : 

(1) Provision should be made for beginning a crop reporting system but 
the exact budgetary amount to be allocated to this would depend upon the 
availability of manpower administrative arrangements, etc. 

(2) The writeup for much of the economics and statistics work should be 
included under one heading, such as "Economics and Statistics Services." 
This should include crop reporting, world census of agriculture — assistance 
to governments, and national food and agriculture programs — assistance to 
governments. 

Dr. Elliott pointed out that these are different parts of the same problem and 
taken together they constitute the basic operations necessary for a good economics 



2928 SCOPE OF SOVIET ACTWITY IN THE UNITED STATES 

and statistics sei-vice. As soon as liis memorandum has been returned to me, I 
will send it to you. 

Rural ivelfare. — It is noted that there is no item in your list of projects for this 
specific item. This should not necessarily mean, however, that rural welfare 
aspects of FAO are being neglected. It is suggested that in your planning for 
programs such as rural industries, cooperatives, as well as many of the agricul- 
tural and nutrition programs, due account should be taken of the general welfare 
and social aspects of the project and staff provision should be made for these 
items. This part of FAO's work seems to be very much a part of a joint 
enterprise with the U. N., WHO, ILO. and UNESCO. It would seem advisable, 
therefore, for this part of FAO's program to be thoroughly worked out with the 
ACC where you will have a joint attack upon economic development in an area 
"paying due attention to questions of a social nature which directly condition 
economic development." 

Copies to : Drs. Akroyd, Show, and Gerhardsen ; Drs. Kesteven and Buck ; 
Mr. Tolly and Dr. Ezekiel. 

Mr. Morris. The next docmnent which we have numbered 308 — our 
No. 308 — is a letter which, on page 9, indicates the following : 

Clearing House for Technical Information and Location of Experts. — Specific 
inquiries from governments for help on technical problems and in finding ex- 
perts to assist them have been handled to date on an ad hoc basis by the Tech- 
nical Assistance Unit of the Division of Economic Stability and Development. 

At that time, David Weintraub was a Director of that particular 
agency. This indicates. Senator, that the personnel were to be taken 
from this particular section, of which Alfred J. Van Tassel was 
executive secretary at that very time. Alfred Van Tassel has also 
been a witness before this subcommittee, Senator. After his appear- 
ance before the subcommittee in New York in 1952, he was dismissed 
by Secretary General Trygve Lie. 

I offer this to show that not only was the personnel drawn from the 
agency headed by David Weintraub and inquiries regarding it re- 
ferred to him but the information for the project was drawn by Alfred 
Van Tassel. 

Senator Jenner, It may go into the record and become a part of 
the official record. 

(The document referred to was marked "Exhibit No. 308" and is as 
follows:) 

Exhibit No. 308 

49/2499 

15 November 1949. 

Dear Me. : The enclosed note sets out briefly the present stage of 

the several types of technical assistance activities which we [U. N.] are carry- 
ing on within the limits of our resources under General Assembly Resolution 
200 (III) ^ and of requests received from Member Governments. This sum- 
mary is being sent to all interested specialized agencies. 

I hope that it will be possible for ijon to Jet vs have a similar summ-ary of your 
affenci/'s technical assistance activities in due course.* 
Yours sincerely, 

A. D. K. Owev [David Owen], 
Assistant Secretary-Oeneral in charge of Economic Affairs. 

This letter has been sent to the following specialized agencies : FAO, Intern. 
Bank, Int. Monetary Fund. 



1 This applied to U. N.'s regular technical assistance work, as contrasted; to the expanded 
Technical Assistance Program (ETAP) of which David Owen has been Executive Chairman 
since ml(l-19.52. 

'This move to brin^ the regular technical assistance work of the specialized agencies 
\inder the same U. N. review as the central-fund expanded program was the result of tlie 
U. S. S. R. resolution in ECOSOC (July 1949) calling on the specialized agencies to report 
to the Standing Technical Assistance Committee of ECOSOC (now known as TAG), through 
the Technical Assistance Board (now known as TAB — and of which David Owen is Executive 
Chairman), "on their technical assistance activities, including activities financed from the 
special account." 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2929 
United Nations Department of Economic Affairs 

STATUS REPOET ON TECHNICAL ASSISTANCE ACTIVITIES UNDER GENERAL ASSEMBLT 
RESOLUTION 200 (III), 15 NOVEMBER 1949 

General Assembly Resolution 200 (III) authorizes the Secretary General to 
provide numerous types of technical assistance to promote the economic develop- 
ment of underdeveloped countries. The types of assistance which have, in fact, 
been most requested are : 

(a) Individual experts and groups of experts worljing as a team to advise 
on economic development problems ; 

(,6) The training abroad of the experts of underdeveloped countries 
through the provision of fellowships ; and 

(c)The exchange and provision of information concerning technical prob- 
lems of economic development. 
There is set out below a brief summary of steps taken in these three fields by 
the Secretary General in response to requests from Member Governments, 

(a) International Teams of Experts 

(i) Haiti. — Following the presentation of the report of the United Nations 
Mission to Haiti, consideration is being given to appropriate measures of further 
collaboration with the Government of Haiti in its implementation of the recom- 
mendations presented in the report. An expert with wide experience in economic 
development work who could serve in Haiti on technical assistance services for 
the United Nations is being contemplated. The duties of this officer would be to 
follow up the work of the United Nations Mission, advising and assisting the 
Government as required and acting as Technical Assistance Representative in 
respect of such continuing assistance in specific development fields as the Gov- 
ernment may require. It is hoped that the specialized agencies could collaborate 
with the United Nations in such an enterprise and jointly with the United 
Nations designate such an officer. 

(ii) Ecuador. — At the Government's request five experts have been advising 
the Government of Equador since the middle of 1949 in the following fields: 
€ustoms organization, reform of the Civil Service, census organization, and 
public finance. It is foreseen that an extension into 1950 of some part of the 
groups work will be needed, particularly to complete the drafting of legislation 
which the experts have helped to prepare. 

(iii) Burma. — A statistical expert has been sent to Burma to organize and 
Improve the economic statistics of that country under the Ministry of National 
Planning. The expert took up his duties in October 1949 and it is expected that 
his services will be continued into 1950. It is anticipated that further assistance 
in other fields of economic development may be requested. 

(iv) Mexico. — Detailed negotiations are far advanced and arrangements are in 
progress to provide three experts, one on the better utilization of local coal for 
the Mexican iron and steel industry and two on technical aspects of the organiza- 
tion of that industry. Requests for expert assistance in other fields are expected 
in 1950. 

(v) Bolivia. — As a result of extended discussions a preliminary mission of one 
outside expert, assisted by two United Nations officials (one drawn from the 
Secretariat of the Economic Commission for Latin America ) left on 11 November 
for La Paz to plan, in consultation with the Government, a programme of technical 
assistance which has been requested in the fields of economic development and 
social welfare.' Upon the return of this preparatory mission, probably at the 
end of November, a team of experts will be organized in cooperation with the 
specialized agencies concerned to advise the Government in the fields mutually 
agreed upon. 

(vi) Guatemala. — A request from the Government regarding a comprehensive 
mission has been under discussion for several months. It has not been possible 



3 The request in the field of social welfare arises out of the advisory functions provided 
under General Assembly Resolution 58 (I). 



2930 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

to proceed with practical action in the alisence of certain information requested 
of the Government which is not yet available. 

(vii) Iran. — One rei>resentative from the Economic Affairs Department and 
one from the Social Affairs Department have now reported on their exploratory- 
visit to Teheran. Negotiations are to be resumed shortly with the Iranian Dele- 
gation regarding the furnishing of expert assistance requested in the fields of 
taxation, customs tariffs and organization, and also in various social welfare 
fields. In further negotiations on the request for economic experts due account 
will be taken of the activities and arrangements in any of these fields initiated 
under the Government's Seven Year Development Plan and implementing any 
subsequent reconnnendations made by the Technical Mission of Overseas Con- 
sultants Inc. which visited Iran during the first half of 1949. 

(viii) Chile. — In response to a request from the Government, arrangements 
have been proposed for the furnishing of expert advice. This will relate to 
policies bearing on problems of price and wage stabilization and general economic 
stability in relation to the economic development needs of Chile as well as on 
borrowing and tax policies and related fiscal and monetary problems. Tlie 
services of a small group of experts are being sought for this purpose. Arrange- 
ments are being made for a first visit to Chile of two of these experts during 
November-December 1949. 

(ix) Afghanistan.- — Informal discussions have been initiated by members of 
the Afghan Delegation to the General Assembly regarding the possibilities of a 
broad range of United Nations technical assistance being rendered to aid the 
economic development of Afghanistan. 

(x) Pakistan. — Discussions are planned to take place during November in 
Karachi upon the types of technical assistance which might be rendered in 
response to the preliminary inquiries of the Government of Pakistan. 

(xi) Philippines. — Notification has been received of a request which this 
Government plans to make formally in January 1950 for a "technical scientific 
research commisison" of two or three experts who would undertake a study of 
the facilities for a "proper scientific approach" to the problem of economic 
development of the Philippines, and advise the Government in this respect. A 
further clarification of this request is awaited. 

(xii) Thailand. — Hie Executive Secretary of ECAFE has received a request 
for a high ranking statistical expert to assist the Thai Government in the organ- 
ization of its statistical services. Consideration is being given by the Statistical 
OflBce to this request. 

(xiii) Bolivia, Chile, Paraguay, Peru. Vrufiuay. — Individual consultations on 
census problems have been held with the authorities of these countries by a 
census expert. 

(xiv) Hashimite Jordan Kinydom and Ceylon. — Informal inquiries have been 
made by the Government of the Hashimite Jordan Kingdom for assistance in 
respect of statistical services. Attention was drawn to the wording of the 
resolution which does not allow the Secretary-General to give exjjert assistance 
to nonmember Governments. For similar reasons a request by the Government 
of Ceylon for fellowships is being held in abeyance. 

(&) Training Abroad of Experts through Fellowships 

Notification of Memher Governments. — The 1949 programme of fellowships for 
the ti-aining abroad of experts from underdeveloped countries was initiated by a 
letter and memorandum sent to all Member Governments in February 1949. 
These communications outlined the arrangements which were being made to 
provide technical assistance under paragraph 3 (b) of General Assembly Resolu- 
tion 20O (III). In particular, the memorandum indicated that there would be 
about sixty fellowships available in 1949. oi>en to men and women with consid- 
erable experience in the field of economic development, described briefly the 
fields in which facilities could most readily be arranged, explained the procedure 
to be followed by Member Governments who wished to apply for fellowships on 
behalf of their nationals, and also set out financial arrangements relating to the 
scheme. 

Host Facilities. — The attention of Member Governments having a more highly 
developed economy was especially drawn to the fact that the success of the 
programme depended on their cooperation in extending facilities in which it 
would be possible for fellowship holders from underdeveloped countries to study 
and observe some general or specific aspect of economic development. At the 
end of October 1949 the following Member Governments had offered host facili- 
ties covering a wide area of the broad field of economic development : Australia, 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2931 

Belgium, Canada, Chile, Costa Rica, Denmark, France, India, Mexico, the 
Netherlands, New Zealand, Norway, Sweden, the United Kingdom and the 
United States. 

Award of Fellowships.^ — On 14 April 1949 the Assistant Secretary-General in 
charge of Economic Affairs [David Owen] established a Selection Committee in 
the Department of Economic Affairs to make recommendations to him regarding 
the award of fellowships. The Committee, which consists of senior officers of the 
Department [of Economic Affairs (U. N.) ] and a member of the staff of the Secre- 
tary-General's Office, held eight meetings during the year and considered 152 
applications sponsored by 26 Member Governments. Following the recommenda- 
tions of the Committee, the Assistant Secretary-General [David Owen] approved 
the award of fellowships to 67 candidates. As at 2 November 1949, 36 fellowship 
holders had commenced their programme of studies, 9 were expected to begin 
their studies within 30 days, and arrangements for host facilities were being 
completed with respect to the remaining 22 candidates. Table A in Annex I lists 
the number of candidates nominated by applicant Governments and the number 
of awards or recommendations for awards, and Table B shows the number of 
candidates accepted by each host country. 

A broad classification of awards shows that 26 were to candidates from Latin 
America, 20 to candidates from Asia and the Far East, 12 to candidates from 
the Near East, and 9 to candidates from Europe. 

Fields of Study. — The principal fields of study of the 67 fellowship holders 
mentioned above include economic planning, combined resource development, 
public administration, cooperatives, finance and trade, fiscal methods, statistics, 
hydraulics, mineral exploration, transport and communications, and electricity 
production. 

(c) Exchange and Provision of Information 

(i) Census Training Centers. — Because of the imminence of comprehensive 
censuses of population and agriculture in a large number of countries, the 
United Nations Statistical Office and the Food and Agriculture Organization 
have collaborated in census training centers in different parts of the world. At 
present two such institutes are in operation : one in Cairo and one in New Delhi. 
About 40 students attend each Center, many being key officials in national 
census offices. For all the Centers so far organized the host government has 
provided space, services and a considerable part of the instruction, and has con- 
tributed to the miscellaneous expenses of the institutes. The participating gov- 
ernments have financed the attendance of their representatives and the Food and 
Agriculture Organization and the United Nations have provided highly qualified 
instructors in census methodology. 

(ii) Meeting of Experts on Financing Economic Development. — The first of a 
series of meetings on proMems of economic development was held at Lake Suc- 
cess for two weeks commencing on 24 October. The major task of the experts 
was to study prevailing practices and problems of domestic financing in selected 
underdeveloped countries. The meeting was organized by the Division of Eco- 
nomic Stability and Development.^ 

Each of the experts contributed a paper on the subject with special reference 
to his own country's experience in financing. They also discussed appropriate 
intetvuitional assistance for developing financial resources and institutions in 
underdeveloped countries. 

The experts, participating in the meeting in their individual capacities, were: 
Sir Sidney Caiue, Head of the United Kingdom Treasury and Supply Delega- 
tion ; Antonio Carillo Flores, Director of Nacional Financiera, S. A. of Mexico ; 
Felix De La Costa, Vice President of the Philippine Bank of Commerce; S. L. 
Descartes, Treasurer of Puerto Rico ; Desiderio Garcia, General Manager of the 
Cia. de Acero del Parifico of the Chilean Corporacion de Fomento de la Pro- 
duccion : Bal K. Madan, India's Executive Director on the International Mone- 
tary Fund ; and Mtjhamed Aly Rifaat, former Controller of Exports and Imports 
in Egypt. Members nf the secretariats of interested specialized agencies par- 
ticipated, at the invitation of the expert group, in the meetings. 

The papers presented, the experts' discussion and a sununury prepared by the 
l)e]i<trtmcr,t of Econoinie Affairs will be published shortly as a contribution to the 
analysis of the piobleni «if financing economic development in underdeveloped 
countries. 



* Fellowshi]! rirfifTiiiin in David Weintraul)'s division. 
^ David Weintraiii) was Director. 



2932 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

(iii) Technical Handbooks. — 

Antimalarial Insecticides : Following a discussion of the production, trade 
and utilization of these insecticides by the Ninth Session of the Economic and 
Social Council, plans were made to publish a technical handbook dealing with 
their manufacture and formulation. Work on this is now far advanced; a 
substantial amount of the text is finished. The United Kingdom Government 
has undertaken to provide data regarding BCH, an important antimalarial insec- 
ticide, which information is needed to finish the work. 

Iron Foundries : This handbook will cover all aspects of the construction and 
operation of small-scale foundries based upon practical field experience in a 
number of economically underdeveloped countries. The text is well advanced 
but charts, diagrams and photographs will require fuither work. 

Population Census Methods : A provisional edition of a handbook of popula- 
tion census methods has been issued and is in use in two census training insti- 
tutes. 

(iv) Economic Development Bulletin.— Slow progress is being made in pre- 
paring a trial issue of this Bulletin in order to ascertain the value of a periodical 
publication in this field. Delay is due to staff limitations rather than to lack of 
material, of which enough is now on hand to produce a trial issue. 

(v) Clearing House for Technical Informaiion and Location of Experts. — 
Specific inquiries from Governments for help on technical problems and in finding 
experts to assist them have been handled to date on an ad hoc basis by the 
Technical Assistance Unit of the Division of Economic Stability and Develop- 
ment.^ In conformity with paragraph 3 (d) of General Assembly Resolution 
200 (III) and Economic and Social Council Resolution 222 (IX) C, it is now 
planned to develop this service using, on the one hand, the direct contacts estab- 
lished through the United Nations Scientific Conference on the Conservation 
and Utilization of Resources'' with experts in many countries and, on the other 
hand, the machinery set up by several governments for handling requests for 
technical assistance for economic development, including the locating of availa- 
ble experts. Use will also be made of the many contacts with economic develop- 
ment authorities in economically developed countries which have been established 
by the Technical Assistance Unit of the Division of Economic Stability and 
Development through its Fellowship Programme and Mission activities.^ 

Annex I 

Table A. — "Number of candidates nominated by applicant governments for eco- 
nomic development fellowships and number of awards and recommendations 
for awards 



Country 


Total number 
of applica- 
tions to 
Selection 
Committee 


Total number 
of awards and 
recommenda- 
tions for 
awards 


Country 


Total number 
of applica- 
tions to 
Selection 
Committee 


Total number 
of awards and 
recommenda- 
tions for 
awards 


Bolivia 


5 
12 

1 

2 

22 

4 

1 
2 

12 
2 

10 
1 
5 

15 


3 

5 
1 

1 
4 
2 
1 
1 
4 
2 
3 
1 
3 
5 


Iran -. 


12 
2 
1 
1 
2 
15 
10 
3 
2 
2 
4 
5 


4 


Brazil 


Iraq _ 

Israel - . 


2 


Burma 


1 


Cambodia (French 

Union) 

ChUe -. 


Lebanon 

Mexico 

Pakistan 


1 
1 
5 


China 

Colombia 

Costa Rica. 


Philippines 

Poland 

Syria 

Thailand 

Venezuela . 


4 
3 
2 


Ecuador 

Egypt 


2 
3 


Greece 

flllQfpTYlolQ 


Yugoslavia 

Total - . 


3 


Haiti 


152 


67 


India 











• David Welntraub was Director. 

'' Alfred J. Van Tassel was Exec. Secretary of UNSCCUR. 

* David Welntraub was Director. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2933 

Table B. — Geographical disirihution of economic development fellowship holders 

by host country 

Host country : ,. ,. . 

Numier of Number of 

fellowship holders fellowship holders 

Australia 1 Netherlands 2 

Belgium 3 Sweden 1 

Canada 1 United Kingdom 5 

Chile 2 United States *23 

Costa Rica 1 

Denmark 2 Total '45 

France ^6 

1 One fellow studying in Algeria. 

2 Three fellows studying in Puerto Kico ; 9 fellows attended UNSCCUR ; 1 fellow is 
undertaking part of bis study program in the United Nations Secretariat. 

s As 1 fellow is to study in Denmark, Sweden, and United Kingdom, this figure is not 
the arithmetic total, but the actual number of fellows for whom placement arrangements 
have been made. 

Mr. Morris. I have here a document dated August 1, 1949, a docu- 
ment from Alfred Van Tassel to Sir Herbert Broadley. I offer this 
for the reason that Alfred Van Tassel is described herein as Executive 
Secretary of the United Nations Scientific Conference on the Conser- 
vation and Utilization of Resources. 

May it go into the record to show that he had that particular title 
at that time ? 

Senator Jennee. It may go into the record and become a part of the 
record. 

(The document referred to was marked Exhibit No. 309 and is as 
follows:) 

Exhibit No. 309 

United Nations, 
Lake Success, N. Y., 1 August 1949. 
Reference : EGA 9S/7/01. 
Sir Herbert Broadley, 

Acting Director-General, 

Food and Agriculture Organization of the United Nations, 

Washington 6, D. C. 

Dear Sir Herbert : Thank you for your letter of 22 July. 

I should like to assure you that the Secretariat of the Conference which has 
been set up in the Department of Economic Affairs appreciates fully the important 
work that the Food and Agriculture Organization is doing in its field and in con- 
tributing to the success of the United Nations Scientific Conference on the Con- 
servation and Utilization of Resources. Mr. Harrison and Mr. Greene have ren- 
dered invaluable service on the Preparatory Committee as have many others on 
the staff of the FAO through their liaison. 

The Department of Public Information is, of course, responsible for relations 
with the press. I have therefore forwarded your letter to them and have asked 
that they take account of the feeling of FAO in this matter. 
Tours sincerely, 

Alfred J. Van Tassel,* 
Executive Secretary, United Nations Scientific Conference 

mi the Conservation and Utilization of Resources. 

Mr. Morris. Here is a dociunent, No. 310, also from the farm organi- 
zations, which is a paper on Alfred J. Van Tassel. 

Senator Jenner. It may go into the record and become a part of 
the official record. 



1 Separated from U. N. job (which later was Operations Director for the U. N. Technical 
Assistance Administration) on November 30, 1952, after refusin? to answer questions of 
Senate Internal Security Subcommittee regarding Communist affiliations. See attached 
David Owen statement for "N'an Tassel relationship to obtaining experts for early U. N. 
technical assistance progam. 



2934 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

(The document referred to was marked "Exhibit No. 310" and is as 
follows:) 

CoE Exhibit No. 310 

Alfred J. Van Tassel and the U. N. Expanded Technical Assistance Program 
(See also * * * David Owen statement of Nov. 15, 1949.) 

[U. S. News & World Report, December 5, 1952. pp. 18, 19] 

Interview With Robert Morris, Special Counsel, Senate Internal Security 

Committee 

THE STORY OF COMMUNISM IN U. N. 

15 High-Rank Americans Silent on Party Ties — Most Had Held Good U. S. 

Jobs — ^FBI Files Ignored 

Editor's Note. — What is behind the recent headlines about Amer- 
ican Communists in high places in the United Nations? 

For a discussion of this and related questions, the editors of U. S. 
News & World Report invited to their conference room Robert 
Morris, special counsel of the Senate's Internal Security Subcom- 
mittee. This group, which is a part of the Senate Judiciary Com- 
mitte, at present is headed by Senator Pat McCarran (Dem.), of 
Nevada. 

Mr. Morris began looking for subver.?ive activities in 1940 as 
counsel for a committee of the New York Legislature investigating 
the schools — the Coudert committee. 

In the war he was oflScer in charge of the Communist-Soviet Desk 
of Counterintelligence in Naval Intelligence for the Third Naval 
District, and later in charge of the Advance Phychological Warfare 
Section for Admiral Chester W. Nimitz in the Pacific. 

The "Paul Robeson riots" near Peekskill, N. Y., in 1949. called 
Mr. Morris into service as special assistant to the district attorney 
of Westchester County. 

And in 1950 he was counsel to the Republican minority of the Tyd- 
ings Committee, in the Senate's inquiry into the charges of sub- 
versive elements in the State Department made by Senator Joseph 
R. McCarthy. 

For the Internal Security Subcommittee, Mr. Morris has guided 
the investigations into the Institue of Pacific Relations and into 
subversive influence in the schools, as well as the current United 
Nations study. 

Q. What is the reason, Mr. Morris, why the McCarran Committee delved 
into an investigation of the personnel of the United Nations? Isn't the U. N. 
more or less sacrosanct like an embassy or legation? 

A. Possibly atmospherically that may be the case, but actually many of these 
people who are American citizens working in the Secretariat and the specialized 
agencies of the V. N. have, for many years, been susix^ct by the vai'ious loyalty 
agencies of the United States Government. Some of them have been under 
congressional charges. Some of them have been well known as people of very 
pro-Communist persuasions. And Senator McCarran has taken the position 
that, as long as they remained American citizens and engaged in subversive 
acts against the United States Government, they could be the object of inquiry 
by the Subcommittee. 

Q. Do these people who have been investigated hold high rank? 

A. Yes, almost all the people we've had before our Committee are not super- 
numeraries by any means. 

In two cases, they were head men in their divisions. In some cases, they 
were heads of their sections. 

Take the case of Jack S. Harris, who was the second oflScial in the Research 
Section of the Trusteeship Division. Harris was in the Office of Strategic Serv- 
ices for the United States during the war, in charge of militarv intelligence for 
South Africa. When asked whether while holding that post he was a Commu- 
nist, Harris refused to answer on the ground that his answer might incriminate 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2935 

him. He also declined to say, on the same grounds, whether he was then, while 
testifying or ever before had been a Communist. 

There was also the case of Alfred J. Van Tassel, chief of the Economic Section, 
Special Projects Division of the Technical Assistance Administration, earning 
$12,8JfO a year, who likewise refused on constitutional grounds to tell the Com- 
mittee wJiether he was presently a member of the Commwiist Party. 

In all, more than 15 of these officials refused to answer questions and invoked 
their privilege. 

Q. Who were some of the others? 

A. Joel Gordon, chief of the Current Trade Analysis Section of the Division 
of Economic Stability and Development, also refused to say whether he was 
presently engaged in subversive activities against the United States, whether 
he had engaged in espionage, or whether he was a Communist. 

Q. Was Gordon ever a United States Government employee? 

A. Yes. Among other important positions, he had been chief of the Yugoslav 
Branch of UNNRA. 

Q. These people you speak of in the U. N., are they American citizens? 

A. These are American citizens who are employed, for the most part, by the 
Secretariat. A few of them are working for some specialized agencies. 

Q. But we can't touch these people because they are employees of the U. N. — 
is that right? 

A. Quite the contrary. The Subcommittee has taken a very firm iwsition that 
as long as they are American citizens, and as long as the subject matter is sub- 
version committed against the United States Government, the Subcommittee has 
jurisdiction over them. 

Q. Investigation jurisdiction. But is there any kind of power to prosecute 
them for anything other than perjury? 

A. If any of them commits perjury before our Committee, he can be indicted 
by a grand jury. The Committee cannot indict. If we bring out evidence that 
he has broken a law of the United States, he can likewise be indicted by a jury. 

Q. Then he has no immunity simply because he v.'orks for the U. N.? 

A. That is right. The Committee is very firm in tnldng the position that just 
because a person works for an international body he does not acquire any 
immunity from investigation or prosecution. 

Q. How long has this U. N. investigation been going on? 

A. The Subcommittee commenced its investigation of the U. N. personnel 
approximately in May of this year. 

Q. Was there any way to accomplish this other than by a committee hearing? 
Couldn't it have been turned over to the Justice Department, to the FBI? 

A. That is a very good question. The Committee will not go into an investi- 
gation if there is no need of it. Now, in the case of the subjects of the U. N. 
investigation, their subversive records, in all cases, were known to the FBI 
for years, and in most cases have been known to the State Department for years. 
In fact, many of these U. N. officials — and these are top officials, not super- 
numeraries — were called before the federal grand jury in New York last spring 
and summer, and while they were before the federal grand jury they invoked 
their constitutional privilege against testifying on the grounds that the answer 
might incriminate them. Now, we do know that the top leaders of the U. N. 
learned that this was the case and yet did nothing until many mouths later 
when the Subcommittee held its open hearings. 

Q. Who was the official who started the presentation of this evidence to the 
grand jury? 

A. Roy Cohn, Special Assistant to the Attorney General, a very able and 
patriotic lawyer. 

Q. Can you locate the month definitely when this thing started? 

A. I would say it was April for the grand jury and May for the Committee. 

Q. So the U. N. top officials knew about this since April — they knew about this 
grand jury investigation? 

A. Yes, and it is in our record^I remember reading Van TasseVs record today. 
Van Tassel said that he had testified before the federal grand jury and had 
informed his superior in the U. N. that he had refused to answer questions on 
the grounds that his answers might incriminate him. 

Q. Who is Van Tassel? 

A. Van Tassel is one of the top-level assistants in the Technical Assistance 
Program. 

Q. VP'hat does that embrace? 

72723— 57— pt. 42 5 



2936 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

A. Technical Assistance is probably one of the most important subdivisions 
of the U. N. right now. They have asked that the United States contribute many 
millions of dollars to the Technical Assistance Program so that they will be 
able to spend money throughout the world. It supplements and encompasses 
our Point Four program. The general thinking noic, both in the State Depart- 
ment and in the United Nations, is that Point Four and all these international 
assistance organizations should be subordinated to the Technical Assistance 
Program in the U. N. 

Q. When the U. N. leaders learned those things, did they act quickly on it? 



U. S. citizens on staff of U. N. Technical Assistance Administration who were 
dismissed fOlloicing inquiry by Federal grand jury and Senate Internal Security 
Subcommittee into Communist infiltration of U. N. Secretariat: 

Alfred J. Van Tassel — Chief, Economic Section, Special Projects Division, 
UN-TAA. $9,000 salary net, tax paid by U. N. 

Stanley Graze — Executive Secretary of the Railways Operation Study Unit, 
UN-TAA. $6,000 net salary, tax paid by U. N. 

Herman Zap — training officer. $6,625 net salary, tax paid by U. N. 

Mr. MoREis. Document No. 311 consists of papers concerning David 
Owen and the United Nations Technical Expanded Assistance Fund. 

Senator Jenner. It may go into the record and become a part of 
the official record. 

(The document referred to was marked "Exhibit. No. 311" and is 

as follows:) 

Exhibit No. 311 

David Owen and the U. N. Expanded Technical Assistance Fund 

(Central Fund) 

EEORGANIZATION of the technical assistance board (TAB) 

24. In the middle of 1952, the Technical Assistance Committee (TAG) re- 
viewed the methods of operations of the TAB and recommended to the ECOSOC 
a number of changes in the basic resolution (establishing the U. N. Expanded 
Technical Assistance Program — 222 (IX). The Economic and Social Council 
at its 14th Session accepted these changes, which pro\ided for the appointment 
of an Executive Chairman and a modification in the function and responsibilities 
of the Board. ^ The Executive Chairman icas given the task of revieicing all 
programme proposals, either preliminary or final, xviih a view to developing 
balanced country programmes, and he was to make such reconnncndations to the 
Board on all programmes as he saw fit. The Chairman was also to exercise 
continuous supervision of the programme, and to ensure that all the Board's 
activities were adequately coordinated.^ And finally, special emphasis was placed 
on the role of the Resident Representatives. 

25. In making the recommendations on financial arrangements for 1953, the 
Technical Assistance Committee also provided that all programmes for 1953 
were to be reviewed by the Chairman and apiiroved by the Board before funds 
were allocated, whether the projects were financed from the agency automatic 
allocations or from the Retained Contributions Account. This latter require- 
ment and the new general responsibilities necessitated a change in the organi- 
zation of the Secretariat of the Technical Assistance Board, and this was accom- 
plished over the latter half of 1952 and in the early months of 1953. 

(The above paragrai)hs [numbered 24 and 25] appeared in "United Nations 
Technical Assistance Committee Fifth Report of the Technical Assistance Boards 
Economic and Social Council Official Records : Sixteenth Session, Supplement 
No. 10, E/2433, 1 June 1953.) 

David Owen — Executive Chairman of the Technical Assistance Board (TAB)„ 
U. N. Born Pontypnol. U. K., 1904. 



1 Resolution 433 A (XIV). 
" David Owen holds this post. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2937 

Previous employment included : 

Sec, civil res. div., Pol. and Econ. Planning, London, 1933-36. 
Gen. sec, Economic and Political Planning, London, 1940-41. 
Personal Sec, Sir Stafford Cripps, on Mission to India, 1942. 
Officer in char.!.;e. League of Nations Affairs, 1944-45 (Fgn. Office). 
Member U. K. delegation to ILO Conference, 1944. 

Member U. K. delegation to San Francisco Conference to organize U. N., 
1945. 

Deputy Director-General, U. N. Preparatory Commission, London, 1945-46. 
Assistant Secretary-General for Economic Affairs, U. N., 1946-52. 
Note. — Of the total number of U. S. citizens removed from the U. N. staff 
following Federal Grand Jury inquiry and Senate Internal Security Subcom- 
mittee hearings on Cominu)iifit infiUratlon on U. N. secretariat, 25% were on 
David Oircn's staff in the Economic Affairs Division. (See list attached.) 

U. S. citizens on staff of David Owen (Assistant Secretary General of U. N. 
for Economic Affairs) who were dismissed following inquiry by Federal grand 
jury and Senate Internal Seeurity Subcommittee into Communist infiltration of 
U. N. Secretariat: 

ECONOMIC STABILITY AND DEVTSLOPMENT DIVISION 

David Weintraub, Director — net salary, tax paid by U. N., of $11,800 plus an 
$800 allowance. (Resigned under fire) 

Sidney Glassman — net salary of $8,500 tax paid by U. N. 

Irving Kaplan — $12,440 per year 

Eugene Wallach 

Herijert Schimmel — economic affairs officer, $8,500 net, tax paid by U. N. 

Joel Gordon — Chief, Current Trade Analysis Section, $10,000 net, tax paid by 
U. N. 

Herman Zap — (later transferred to U. N. Technical Assistance Administration- 
see note on next page) 

Mrs. Marjorie Zap — economic affairs officer, $4,800 net salary, tax paid by U. N. 

OTHER SECTIONS OF ECONOMIC AFFAIRS 

Hope Dorothy Eldridge — statistical officer, $7,525 net salary, tax paid by U. N. 
Rhoda Rastoft' — Transport and Communications Division 

U. S. citizens on staff of U. N. Technical Assistance Administration who were 
dismissed folloiving inquiry by Federal grand jury and Senate Internal Security 
Subcommittee into Communist infiltration of U. N. Secretariat: 

Alfred J. Van Tassel — Chief, Economic Section, Special Projects Division, 
UN-TAA. $9,000 salary net, tax paid by U. N. 

Stanley Graze — Executive Secretary of the Railways Operation Study Unit, 
UN-TAA. $6,000 net salary, tax paid by U. N. 

Herman Zap — training officer. $6,625 net salary, tax paid by U. N. 

U. N. {Central Fund) Technical Assistance Program 

Million 

1954 program total $19. 

For total program administration in 1954 4. 3 

22 percent of total program money went into administration. 

For Technical Assistance Board (TAB) administration in 1954 1.3 

6% percent of total program money went into TAB administration. 
TAB administration in 1954 cost more than the total of all of the 
technical assistance programs carried out under the U. N. program 
during the year in Africa, considered to be the most underdeveloped 
region in the world. {African programs received $1.2 million from 
the U. N. fund in 195-'f.y 

TAB administration in 1954 cost more than the total allocated to the 
International Civil Aviation Organization (ICAO) for technical assistant© 
work throughout the world. 

TAB administration in 1954 cost slightly less than the total allo- 
cated to the International Labor Organization (ILO) for technical 
assistance work throughout the world. 



3 This is cost of David Owen and his central fund staff. 



2938 SCOPE OF SOVIET ACTrVITY IN THE UNITED STATES 

[New York Times, January 25, 1949] 
U. N. Suggests Discretion in United States Offp:ks To Aid Aeeas 

WORLD GROUP FEELS TECHNICAL HELP MUST SHUN IDEA RECIPIENT SIDES AGAINST 

COMMUNISM 

By James Reston 
Special to the New York Times 

Lake Success, January 24. — Officials of the United Nations are convinced that 
the Organization can gain a lot and contribute a lot if President Truman uses it 
discreetly to provide scientific and technical assistance to the underdeveloped 
areas of the world. 

In an organization deeply divided by political rancor, and suspicious of almost 
every move by the great powers, however, the accent is on the word "discreet." 
The fear here is that, if the President's recent proposal to help underdeveloped 
areas is not kept carefully out of the East-West fight, its great potentialities may 
be lost. 

Some underdeveloped nations — Burma, for example — have received offers of 
technical assistance from Great Britain, but have preferred to get it from the 
United Nations if possible to avoid any obligations to London. That is one evi- 
dence of the delicate atmosphere. 

Similarly, 1 or 2 other countries have hesitated about taking direct tech- 
nical assistance from the United States because they feared opposition from 
the Soviet Union and involvement in the East-West clash. 

For this reason, representatives of the underdeveloped areas welcome that 
part of Mr. Truman's inaugural speech that proposed that technical and scientific 
assistance "should be a cooperative enterprise in which all nations work to- 
gether through the United Nations and its specialized agencies whenever prac- 
ticable." 

They emphasize, however, that while the United Nations badly needs to go to 
work again on some specific unifying proposal, nothing will be "practical" — 
and indeed Mr. TrumarCs oicn suggestion tvill he jeopardized — if his idea is pre- 
sented liere or elsewhere as a tceapon against communism. 

After the San Francisco Conference, the delegates there had great hopes for 
the Economic and Social Council of the United Nations. This hope was based on 
the theory that while the big powers were divided on political questions, they 
might manage to agree on specific economic questions and that an atmosphere 
of agreement in the Economic and Social Council might eventually spread into 
the political debates in the Security Council. 

Unfortunately, this did not happen. The Economic and Social Council soon 
developed a tendency to wander away from tangible questions into the most 
controversial areas of human relations. After the retirement of Sir Rama- 
swami Mudalier, its leadership declined, and — more important than either of 
these considerations — the acrimonious atmosphere of the Security Council de- 
bates spread into the discussions of the Economic and Social Council. 

Nobody here is very sanguine that, even with discretion, the President's new 
proposal can be kept out of the propaganda area. In the Paris meeting of the 
United Nations, before Mr. Truman made his inaugural speech, the Soviet dele- 
gate had some exceedingly acid remarks to make about sending technicians into 
the underdeveloped areas of the world. 

In the old days, he observed, the capitalist powers had sent missionaries who 
had succeeded very well in "infiltrating" the colonial areas, and now that mis- 
sionaries were sort of out-of-date in a mechanical world, he added, it was the 
"teclinicians" who were often called upon to play the old capitalist imperialistic 
game. 

Nevertheless, the United Nations is still young enough to hope and work for 
another start, and officials are exploring the President's idea with enthusiasm. 

Assistant Secretary Oeneral David Otcen lias established a subcommittee in 
the Economic Affairs Section to explore the proposal. He has already been in 
touch tcith representatives of the United States delegation here and with some 
officials in Washington.^ 



"^ Four days after Truman's point 4 inaugural, David Owen had (1) established a sub- 
committee in the division headed by David WeintrauJ) — see page 9 of Owen Statement of 
No\eiiil)er 1.5. 1940; antl (2) been in touch with United States-United Nations mission and 
"some officials" in Washington. Do these contacts explain the speed with which the 
United States Department of State took a position favoring U. N. control of the interna- 
tional technical assistance program? 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2939 

As a result of preliminary inquiries, it is already obvious that both here and 
in Washington a job of coordination and exploration has to be done. Many of 
the so-called specialized agencies of the United Nations can make contributions 
to the Truman suggestion, but the contact between Lake Success and these spe- 
cialized agencies and commissions is not very good. 

Similarly, many agencies of the Government in Washington have their own 
ideas about how the President's proposal should be developed, and again the task 
of exploration has to be pulled together. 

What kind of cooperation can be expected from United States industry and 
American universities in making their specialists available on a leave-of -absence 
basis for a few months? 

M'hat kind of program does President Truman have in mind, and who is to 
run it? 

Where is there a reliable census of scientists and technicians with overseas 
training? 

What countries need help the most, and what is to be the test of granting 
priorities ? 

Nobody here knows the answers to these questions yet, and the answers are 
not expected for some time. Meanwhile, among officials here having some 
experience in tlie matter, thei"e is some concensus about how the problem should 
be approached. 

"The approach must be nonpolitical," one official remarked, "or a good idea 
will be lost so far as the United Nations is concerned," 



January 20, 19Jf9. — President Truman, as the 4th point in his inaugural address, 
announced that the United States "sliould make available to peace-loving peoples 
the benefits of our store of technical knowledge in order to help them realize 
their aspirations for a better life. * * * This should be a cooperative enter- 
prise in which all nations work together through the United Nations and its 
specialized agencies wherever practicable." 

February 25, 1949. — ^Assistant Secretary of State Willard Thorp, U. S. repre- 
sentative on the U. N. Economic and Social Council (ECOSOC), opened debate 
at ECOSOC with the U. S. proposal that Secretary General Trygve Lie (of U. N.) 
should prepare for the July meeting of ECOSOC a concrete program for enlarg- 
ing the activities of the U. N. and the Specialized Agencies in the field of tech- 
nical assistance. The Secretary General was asked to consult with the Spe- 
cialized Agencies through the Administrative Committee on Coordination (on 
which each international organization is represented by its administrative head, 
with the Secretary General of U. N. serving as chairman). 

Comment : The U. S. representative to the U. N.'s Economic and Social 
Council took this first step to center the expanded program of international tech- 
nical assistance in the U. N. (Organization) at a time when discussions \Yithin 
the U. S. Government on how to implement President Truman's Point 4 had 
barely started. There is nothing in the record noiv to indicate hoio the United^ 
States Oovernment arrived at its position so early on this fundamental question, 
which had such far-reaching implications for the programs of all of the Special- 
ized Agencies. 



[United Nations press release, 25 March 1949] 

Statement by Secretary General Trygve Lie on Economic Development and 
Technicai, Assistance to Underdeveloped Countries 

We shall be taking another step next week in the development of the United 
Nations plans for technical assistance and economic development of underde- 
veloped countries. 

On Thursday, March 31, there will be consultations at the offices of the Inter- 
national Bank in Washington, D. C, among representatives of seven of the 
specialized agencies and a secretariat party headed by Assistant Secretary Gen- 
eral David Owen. These consultations are for the purpose of establishing some 
of the basic policy lines to be followed in the plans on technical assistance which 
the Economic and Social Council requested us to prepare. After these consulta- 
tions, an expert group will start work at Lake Success. Their draft plans should 
be ready for consideration by the Administrative Committee on Coordination in 
the middle of May, and I hope to be able to complete the report by the end of 
that month. 



2940 SCOPE OF SOMET ACTIVITY IX THE UNITED STATES 

In the meantime, I have asked the International Bank and the International 
Monetary Fund, the Food and Agriculture Organization, the International Labor 
Office, and UNESCO to give me their views on methods of financing economic 
development projects. You will recall that the Economic and Social Council 
requested me to make reports to its next session on both technical assistance for 
economic development and methods of financing development projects themselves. 

I look upon these plans for an expanded United Nations program for technical 
assistance and for financing economic development as affoi'ding a major oppor- 
tunity for constructive action by the United Nations and the Specialized Agencies 
during the months ahead. 

In addition to Mr. Owen, the Secretariat Party to Washington will include 
J^Ixa^Alsia—MiTdal^ top-ranking Director of the Department of Social AJ!fairs, 
Mr. Martin Hill, Director of Coordination for Specialized Agencies, Mr. David 
Weintraub, Director of the Division of Economic Stability and Development, and 
Mr. Perez-Guerrero, Advisor on Coordination. 

I expect that Mr. John .J. McCloy, President of the International Bank, Mr. 
Camille Gutt, Director of the International Monetary Fund, and Sir Herbert 
Broadley, Acting Director of the Food and Agriculture Organization, will rep- 
resent their asencies at the meeting in Washington. 

Assistant Director-General C. W. Jenks is expected to represent the Interna- 
tional Labor Office. Dr. Frank Calderone, Director of Liaison Services, will 
represent the World Health Organization ; Dr. C. E. Beeby, Assistant Director- 
General in charge of Education of UNESCO ; and Mr. E. R. Marlin, the Inter- 
national Civil Aviation Organization. 



Asia pRHiFE:RS U. N. Aid to Dieect Grants, Assistance Board Chief Says 

After Tour 

Special to the New York Times 

United Nations, New York, March 2. — The head of the United Nations Tech- 
nical Assistance Board reported today that Asian leaders preferred aid channeled 
through the international organization to help given directly from the United 
States or the Soviet Union, 

David Owen, executive chairman of the Board, expressed the opinion at an 
interview on bis return from a 6-week tour of the Far East. Leaving New York 
January 1, he visited the Philippines, Thailand, Malaya, Burma, Indonesia, 
Ceylon, India, and Pakistan. 

Leaders in the Orient are aware, Mr. Owen noted, that economic aid from 
individual nations may be an element in advancing political aims in Asia. He 
added that in country after country spokesmen had emphasized the importance 
of placing outside aid under the administration of "international institutions." 

Prime Minister Jawaharlal Nehru of India, Mr. Owen said, was among those 
who had underlined the "international multilateral approach" in economic 
assistance. 

Some nations, including India, Indonesia, and Bunna, the technical assistancfe 
chief said, are willing to accept Soviet experts. But Indian opinion, he asserted, 
is emphatic that all aid must be "without strings." Other countries of the Far 
East were less willing to take Russian technicians. 

In India, Mr. Owen explained, "multilateral aid" through the United Nations 
is preferable because it brings in experts from many countries "through a club 
of which India itself is a member." 

The prevailing sentiment, he said, was that the United Nations now consider 
enlarging its technical-assistance program. It now is spending approximately 
$28 million a year, 

Mr. Owen reported that he had observed 2 Soviet technical programs in opera- 
tion. One was in Calcutta, where half a dozen persons are establishing a statisti- 
cal institute. In Burma, he said, 2 Soviet mining engineers are surveying coal- 
shale resources. 

Mr. Morris. Document No. 312 is called TA Chronology, a name 
given to it by the transmitting organization. The part we are particu- 
larly interested in starts on page 13. I would like to offer the whole 
thing for the record. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2941 

Senator Jenner. It may go into the record and become a part of the 
official record. 

(The docmnent referred to was marked "Exhibit No. 312" and is as 

follows:) 

Exhibit No. 312 

TA Chronology (Multilateral) 

; January 1942: Washington, D. C. 

Twenty-six Allied Nations pledged themselves to cooperate in winning the 
war against the Axis Powers and at the same time formally subscribed to 
the Atlantic Charter, naming themselves in this declaration "United Nations." 

Comment: According to the original concept, therefore, the United Nations 
are countries, not an organization. This concept continued without confusion 
until the Dumbarton Oaks conversations among representatives of U. S. S. R., 
United Kingdom, and United States (21 August-2S September 1944), at which 
time it was proposed that the "general international organization (to be estab- 
lished) for the maintenance of international peace and security"^ should be 
called "The United Nations." Thereafter, all actions which had been under- 
taken in the previous two and one-half years by the countries which had named 
themselves United Nations in the Atlantic Charter pact became confused in 
the public mind with actions by the organization which was later established 
i\s a result of the San Francisco Conference. 

18 May-3 June 194-3: Hot Springs, Virginia 

Conference of 44 nations proposed establishment of a permanent international 
organization, to be known as the Food and Agriculture Organization of the 
United Nations. Purpose of the Organization : To assist Governments to raise 
levels of nutrition and standards of living of iieoples under their jurisdiction 
and to improve efficiency of agricultural production and distribution. 

Comment: Tlie words "of the United Nations" in the name suggested for 
the proposed international organization meant the Food and Agriculture Organ- 
ization of the countries which had named themselves United Nations in the 
Atlantic Charter Daclaration on 1 January 1942. The words "of the United 
Nations" in FAO's name do not mean of the organization which was estab- 
lished 214 years later as a result of the San Francisco Conference. 

22 August 19U: Washington, D. C. 

Draft Constitution of the Food and Agriculture Organization (FAO) published 
and sent to Governments for ratification.^ 

Article I of the FAO Constitution states, in part : "It shall also be the function 
of the Organization (a) to furnish such technical assistance as governments 
may request." 

25 April^26 June 1945: San Francisco, California 

Charter of United Nations (organization) drafted and submitted to govern- 
ments for ratification. 

Comment : No mention is made in the United Nations Charter of technical 
assistance. The organization to be launched by this Charter had not been 
conceived as a technical organization, but was repeatedly referred to in all 
early official statements " as a "general international organization," the purpose 



^ United Nations Chronology, 1 January 1942-30 April 1947 ; page 2, Moscow Declaration, 
and page 6, Dumbarton Oalrs Proposals. 

2 The FAO Constitution was the product of a year of careful work by represpntatives of 
the 44 governments which had attended the Hot Springs Conference (18 May-3 .Tune 1943). 
These government representatives were experts in fields of food and nutrition, agriculture, 
forestry, and fisheries. They constituted an Interim Commission on Food and Asriculture 
(July 1943-October 1945), which A^as set up by the governments at Hot Springs, to plan 
the permanent international organization on food and agriculture, which they had 
recommended. 

3 First official call for establishment of a "general international organization * * * for 
the maintenance of international peace and security" (later to appear as United Nations 
Organization) came in Moscow Declaration of China, USSR, UK, and USA — 80 October 1943. 

Second official consideration was given to formation of a "general international organiza- 
tion" in Dumbarton Oaks Conversations among U. S. S. R., U. K., and U. S. A. in the first 
phase — 21 August-28 September 1944 ; and among China, U. K., and U. S. A. in the second 
phase— 29 September-7 October 1944. On 9 October 1944, there was published "Dum- 
barton Oaks Proposals for the Establishment of a General International Organization." 

The Yalta Conference issued a joint statement by President Roosevelt. Prime Minister 
Churchill, and Marshal Stalin (11 February 1945), announcing that a conference of 
United Nations (referring to the countries which were United Nations) should be called to 
meet at San Francisco on 25 April 1945 "to prepare the Charter for a general international 
organization." 



2942 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

of which was to provide means of international cooperation "for the mainte- 
nance of international i)eace and security." 

SO May 19J,5: Washington, D. C. 

Announcement issued by the FAO Interim Commission that governments had 
ratified the Constitution of the Food and Agriculture Organization (FAO), 
thereby enabling that Organization to be brought into existence. 

16 Octobei- — 1 November 19^5: Quebec, Canada 

First Conference of the Food and Agriculture Organization (FAO) convened, 
at which time the Organization came formally into being. 

Coniment : The delegates from FAO's member governments reached agree- 
ment at their first conference that FAO must not be merely a fact-finding agency, 
but must play a positive role in assisting governments to realiza their goal 
of freedom from want. Not only did they approve the reference to technical 
assistance in Article I of FAO's Constitution, but it w^as clear from the delibera- 
tions of the conference that FAO's member governments meant technical as- 
sistance to be an important part of the work for which they had created the 
Organization. 

It is important also to note that the member governments of FAO at their 
first conference agreed that they would regularly review in advance the work 
to be done by this Organization, and that all members would help to finance the 
approved work by making direct payment to the Organization of specified 
amounts, in accordance with an agreed scale of contributions. 

24 October 19'f5: Washington, D. C. 

U. S. Secretary of State signed the Protocol, which, in accordance with Article 
110 of the United Nations Charter, attests entry into force of the Charter. 
Article 110 of the Charter states that it would come into force wheu the five 
permanent members of the Security Council and a majority of the other states 
which had signed the Charter at San Francisco had deposited their ratifications 
with the U. S. Department of State. On 24 October 194.5, the five permanent 
members and twenty-four other states had deposited their ratifications. 

Comment : This was the U. N. Charter as drafted at the San Francisco Con- 
ference, and contained no reference to the United Nations (Organization) en- 
gaging in technical assistance work. 

3 May 1945 

FAO undertook its first technical assistance assignment, which was financed 
by regular funds appropriated to it by its member governments. 

In response to a request from the Government of Greece, FAO sent a group 
of experts to make an on-the-spot study of major Greek agricultural problems, 
and to develop and recommend to the Greek Government a program for re- 
habilitation and future development of Greek agi'iculture, land and water iw- 
tentialities, and related industries. Included in the mission were experts in 
land use and reclamation, agricultural experiment station work, agricultural 
extension and related services, dairy industry, irrigation, rural sociology, and 
agricultural economics. 

11 December 1946 

International Children's Emergency Fund (UNICEF) established by the 
United Nations General Assembly. 

In the General Assembly action, it was specified that the Fund was to be 
used for the benefit of children and adolescents in countries victimized by 
aggression. It was to consist of assets made available by UNRRA or voluntary 
contributions by governments, voluntary agencies, individuals, or other sources. 
It was to be administered by an Executive Director under policies established 
by an Executive Board, in accordance with principles laid down by the Economic 
and Social Council of U. N. (ECOSOC) and its Social Commission. 

Comment: This body is a part of the U. N. (Organization). It shoiiJd not be 
confused with the Specialized Agencies, which are autonomous bodies, estab- 
lished by governments to operate in clearly defined fields under terms of separate 
constitutions. 

As originally constituted. UNICEF was intended to be a temporary agency 
for handling relief needs of children in war-devastated countries. As its work 
got under way, however, much of it took on characteristics of technical assist- 
ance services, largely in fields in which WHO and FAO had been assigned 
responsibility by their member governments. (See page 25, under date of 1 
December 1950.) 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2943 

December 19^6 

The General Assembly of the United Nations noted that "INIembers of the 
United Nations are not yet all equally developed" and asked ECOSOC to "study 
the question of providing effective ways and means for furnishing, in coopera- 
tion with the Specialized Agencies, expert advice in the economic, social and 
cultural fields to Member Nations who desire this assistance." 

Comment: The significance of this resolution (52 [I]) is that it was seized 
upon by some members of the U. N. secretariat as a mandate for them to take 
aggressive leadership in bringing Specialized Agency technical assistance pro- 
grams into line with U. N. plans for "balanced" economic development, as well 
as authority for U. N. to start action on technical assistance programs of its 
own. (See p. 6, unrler date of 8 January 1947.) 

Examination of the records of the meetings which produced this resolution 
(52 [I]) reveals that on 9 November 1946, during committee discussions of an 
item placed on the General Assembly agenda by Lebanon, "Creation by U. N. 
of Advisory Boards," representatives of some underdeveloped countries stressed 
need for providing machinery to furnish expert advice to member governments, 
"especially concerning the less developed countries whose orderly development is 
a matter of concern to the U. N. as a whole." 

The Australian representative, and others, while expressing sympathy with 
the objectives of the Lebanese resolution, drew attention to the fact that several 
Specialized Agencies were by their constitutions authorized to supply advice 
of the kind desired within their special fields. 

The representative of the United States then proposed to include in the 
resolution a reference "to the cooperation of the Specialized Agencies with 
respect to the supplying of expert advice," Australia, Chile, and Norway still 
objected to the resolution, but when further modifications were offered by the 
Chinese representative, they said they could accept, if the U. S. and Chinese 
amendments were adopted. The resolution was sent to the plenary General 
Assembly without further discussion. In plenary, it was read by a rapport- 
eur in a session characterized by delegates as "overloaded." There was no 
reaction, whatsoever, and the resolution was merely rubberstaraped and rushed 
through without a word of comment, along with many others which were 
similarly handled in the closing days of the first General Assembly. 

H December 1946 

The General Assembly of the U. N. approved a budgetary arrangement 
($670,186) under which U. N. would continue UNRRA advisory social welfare 
functions, to he given when requested in connection with distribution of certain 
supplies which would remain at termination of UNRRA (then tentatively 
scheduled for January 1, 1947). The General Assembly resolution specifically 
excluded all advisory social welfare functions related to displaced persons, since 
those activities were to be handled by the then-existing International Refugee 
Organization (IRO). 

Comment: This resolution (58 [I]) has also been claimed by the U. N. sec- 
retariat as the point at which the General Assembly authorized the U. N. to 
engage directly in technical assistance. It is implied that the member gov- 
ernments of U. N. consciously put the U. N. (Organization) into the business 
of executing technical assistance as early as the first session of the General 
Assembly, thereby remedying the oversight of direct mention of technical assist- 
ance in the U. N. Charter. In U. N. publications, there is the implication that 
the origin of the Expanded Technical Assistance Program, which was estab- 
lished under a U. N. central fund in 1949, was an outright growth of this General 
Assembly resolution on advisory social welfare services, as well as of the 
resolution discussed in the preceding section of this paper, in which the General 
Assembly asked ECOSOC "to study the question of providing effective ways and 
means for furnishing, in cooperation with the Specialized Agencies, expert 
advice * * *." 

The fact that the ILO had been providing technical assistance in labor, social, 
and certain kinds of industrial development problems for 25 years is overlooked 
by these claimants for U. N. authority ; as is the further fact that the FAO 
Constitution, ratified by governments more than a year earlier, makes the provi- 
Bion of technical assistance a major function of that organization. 

A study of the discussion leading to adoption by the United Nations General 
Assembly of this resolution on advisory social welfare services reveals beyond 
question that the delegates were not consciously putting tlie U. N. (Organiza- 
tion) into the business of performing technical assistance. They were merely 



2944 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

finding a way to continue advisory services which they felt should accompany 
distribution of the supplies which would still remain when UNRRA was termi- 
nated. It is clear that they, at that time, considered the activity to be tem- 
porary. Also, since UNRRA's advisory social welfare services relating to dis- 
placed persons were turned over to the Interim Commission of IRO, the question 
now arises whether mauy of these activities to which U. N. fell heir to in this 
resolution (such as rehabilitation of children crippled by war action) should 
not have been turned over to the Interim Commission of WHO, instead of 
to U. N. 

8 January 1947: Lake Success, N. Y. 

Meeting called by David Weintraub, Director of the Division of Economic 
Stability and Development, Department of Economic AlTairs, U. N. 

The purpose of the meeting was to consider what immediate steps might be 
taken through the U. N. secretariat toward the attainment of balanced programs 
of economic development, including provision of technical assistance. Organi 
zations represented, with number of persons from each noted in parenthesis : 
FAO (2 representatives) ; International Bank (3 representatives) ; International 
Labor Office (1 representative) ; International Monetary Fund (2 representa- 
tives) ; UNESCO (1 representative) ; WHO (2 representatives) ; United Na- 
tions (11 representatives). 

Comment : This meeting was the first open move by the U. N. secretariat to 
exercise control over the technical work being done by the Specialized Agencies. 

A major part of the discussion centered around a draft paper circulated by 
Mr. Weintraub, covering the functions that might be performed through the 
U. N. secretariat to accomplish the desired balanced programs of economic 
development. Steps the U. N. Secretariat proposed to undertake to bring about 
coordination of development plans and programs were outlined. 

Representatives of the International Bank for Reconstruction and Develop- 
ment were extremely cautious and took the defensive frequently during the 
discussion of this paper. They resisted vigorously the suggestion that the 
U. N. might review applications for development loans that were turned down 
to ascertain how financial obstacles to development might be overcome. They 
likewise had reservations on the extent to which a political body like U. N. 
should seek to coordinate the efforts of Specialized Agencies in carrying out 
their prescribed technical functions. 

As finally drawn up by the U. N. Secretariat, the paper was not considered 
as official by the Specialized Agencies, nor did they agree that it retlected their 
views. However, ]Mr. Weintraub wrote on January 10, 1947, to all of the Special- 
ized Agencies which had been present at the meeting on January 8, that "it (the 
paper) will be used by the U. N. Secretariat as a guide In our own work." 

In its final state, Mr. Welntraub's paper retained in it : 

(1) Provision that the "Secretary-General should regularly consult with 
other United Nations agencies concerned for the pui-pose of facilitating the 
most effective and expeditious use of the financial and technical resources 
of the several United Nations agencies concerned with the achievement of 
balanced economic and social programs" ( — this, despite the fact that use of 
the financial and technical resources of each of the several agencies, under 
terms of their separate constitutions, is strictly the business of their own 
member governments, which decide their programs and provide the money 
to pay for them). 

(2) Provision that the "Secretary-General (of U. N.) should keep under 
continuous review the progress of development in the less-developed coun- 
tries or areas so that * * * he may be in a position to take or promote ap- 
propriate action to ensure that development programs (in these countries) 
are consistent with the general objectives and other activities of the United 
Nations in the economic and social field" ( — this, despite the fact that de- 
velopment programs in all countries are the responsibility of their own 
sovereign governments, and in no case are they subject to interference from 
outside or "foreign" authority, not even that of the Secretary-General of the 
United Nations). 

(3) Provision that, "Except for specialized requests clearly within the 
scope of the several agencies (an insertion insisted upon by the Specialized 
Agencies), the Secretary-General should, in cooperation with the other 
United Nations agencies concerned, make appropriate arrangements for 
the provision of such technical assistance to member governments as will 
enable them to plan and carry out balanced development programs as speed' 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2945 

ily and as competently as possible." (This was the U. N. Secretariat re- 
sponse to the "authority" obtained three weeks earlier by the half-hearted 
resolution of the General Assembly which had started as a proposal to estab- 
lish advisory boards for U. N. and, without adequate discussion of the im- 
plications involved and in the face of reminders from major powers that 
Specialized Agencies were authorized by their consitutions "to supply advice 
of the kind desired within their special fiields," ended as a request to the 
ECOSOC to "study the question of providing effective ways and means for 
funiishing in cooperation with the Specialized Agencies, expert advice in 
the economic, social, and cultural fields to Member Nations who desire this 

Such a study had not yet been undertaken by ECOSOC when Mr. Wein- 
traub's paper stated on January 8, 1947, that "The Secretary-General 
should * * =■•• make appropriate arrangements for the provision of such 
technical assistance." Nor did the General Assembly for another two years 
authorize the United Nations to engage in cooperation with the Specialized 
Agencies in technical assistance for economic development (Res. 200 [III]). 

19 FeWuary, Idlfl 

FAO signed an agreement with UNRRA (then scheduled to go out of existence 
during 1947) to assume agricultural services of a long-term nature which that 
agency had been performing in so-called "UNRRA countries." Under terms 
of the agreement, FAO received $1,135,000 to pay salaries of experts assigned 
to do technical assistance work, but was limited in making expenditures from 
this fund to those countries only which had been receiving aid from UNRRA. 

FAO insisted, however, upon integrating the work done under the UNRRA 
grant with the regular work of the Agriculture Division of FAO, utilizing the 
services of its regular staff experts for negotiation with requesting govern- 
ments and for technical supervision and general administration. In addition, 
projects carried out with UNRRA funds were to be subject to the same policies, 
rules and regulations as governed other FA_0 work. Also, FAO member gov- 
ernments were to review programs and budgets of UNRRA-grant activities, 
just as they did the regular work of the Organization. In other words, the 
activities carried out under the UNRRA grant were handled as an expansion 
of the regular technical assistance work of FAO, with the only "separation" 
being in the books kept to record expenditures. 

Coordination of UNRRA-financed work done by FAO with those UNRRA 
activities which were transferred to other international agencies (World Health 
Organization, United Nations, etc.) was expected to be handled through the 
regular machinery which had been established to coordinate the regular pro- 
grams of the several international organizations. It was not considered neces- 
sary to erect new machinery to coordinate UNRRA-grant activities, inasmuch 
a? these activities were similar in all respects to the regular work of the organ- 
izations to which they had been transferred, except that they were financed by 
UNRRA grant instead of by dues paid directly to each of the international 
organizations by their own member governments. 

Comment: The experience obtained from operating UNRRA-grant activities 
as an integral part of the regular program of FAO (and of other international 
organizations) might usefully have been considered as a precedent for opera- 
tion of the U. N. Expanded Technical Assistance Program. The alternative 
chosen of establishing a central fund under control of the United Nations 
(Organization), while the actual work is done by several international organ- 
izations, had neither precedence in international affairs, nor legal basis in the 
separate constitutions of the international organizations concerned. 

Years 191,1, 191,8, 1949 

A partial, though representative list of technical assistance activities carried 
out liy FAO at request of member countries in the years preceding establishment 
of the U. N. central fund : 

Austria. — Experts to assist the Government with projects in farm machinery, 
livestock improvement, and general agricultural development. 

Bolivia. — Agronomist sent to assist the Government with problems of agricul- 
tural production in mountain areas (Altiplano survey). 

China (Before Communist overthrow of the Nationalist Government and 
withdrawal of China as a member of FAO). — Assisted the Government with 
projects in agricultural economics, research and extension, livestock develop- 
ment, animal disease control, agronomy, small grains, tropical crops, horticul- 
ture, entomology, fertilizer manufacture, farm machinery, cotton ginning, irri- 



2946 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 

gation and drainage, food processing, conservation, silviculture, well-drilling, 
marketing and distribution, vitamin oil and pill processing. 

Czechoslovakia (Before Communist overthrow of the Government and with- 
drawal of Czechoslovakia as a member of FAO). — Projects in livestock develop- 
ment, animal disease control, crop ecology, food processing, and construction 
engineering for food-freezing plant. 

Ecuador. — Experts sent to assist the Government in restoration of irrigation 
system and storage facilities which had been destroyed by earthquake. 

Ethiopia. — Projects in agricultural development and animal disease control. 

Greece. — Projects in nutrition and food management, fisheries development, 
food processing, irrigation, and land drainage. 

Italy. — Projects in food processing, agricultural extension, animal disease con- 
trol, crop ecology, forestry, soil conservation, and range management. 

Nicaragua. — Mission sent to advise the Government on agricultural develop- 
ment, including experts on agricultural practices, livestock development, and 
forestry. 

Poland (Before withdrawal of Poland as a member of FAO). — Projects in farm 
machinery, animal disease control, insect control, forestry, and bovine sterility. 
In addition, a comprehensive mission sent to advise the Government on agricul- 
tural development, including experts in : agricultural research, human nutrition, 
soils and fertilizers, fruit and vegetable production, grain production and mar- 
keting, land utilization, processing and marketing of animal products, animal 
husbandry, forestry, and agricultural economics. 

Thailand. — Two missions sent — 

A. Agricultural development. 

B. Fisheries development, including experts in fresh water fisheries and 
marine fishing and marketing. 

Venezuela. — Mission sent to assist the Government with a project in develop- 
ment of oil seed resources, including experts in fats and oils proteins, insect and 
plant ecology, and agronomy. 

In addition to technical assistance work which was carried out by FAO within 
individual countries, the Organization also conducted a number of training 
schools during these years, in which several countries in a region participated. 
Some of these were : 

(1) Hybrid corn development: held at Bergamo Experiment Station, 
Italy — for countries of Europe — -July-August 1947. 

(2) Artificial insemination: Milan, Italy — for countries of Europe — Au- 
gust 1947. 

(3) Soil conservation methods: Florence, Italy — for countries of Eu- 
rope — September-October 1948. 

(4) Control of Infestation of Stored Products: Florence, Italy — for coun- 
tries of Europe — September 1948. 

(5) Preservation of Foods by Quick Freezing and Cold Storage: Copen- 
hagen, Denmark — for countries of Europe — October 1948. 

(6) Animal Disease Control: Warsaw, Poland — for countries of Europe — 
November 1948. 

(7) Rinderpest Control: Nairobi, Kenya — for countries of Africa — Oc- 
tober 1948. 

Still another form of technical assistance provided by FAO in the years pre- 
ceding the U. N. Technical Assistance Fund was the establishment of regional 
bodies, through which a number of member governments concerned with a 
long-range problem could work with each other over a period of time. Examples: 
(a) International Rice Commission — through which Asian governments 
are cooperating in a program of rice breeding, aimed at increasing produc- 
tion by means of developing better varieties and increasing disease resistance 
in the plant stocks. 

(6) Indo-Pacific Fisheries Council — through which countries work to- 
gether to develop fisheries of the area. 
Another Icind of technical assistance provided by FAO before the U. N. Fund 
was provision for member countries of such services as : 
(a) Seeds for experimental purposes. 

(6) Catalogue of Genetic Stocks, through which plant breeders can locate 

breeding stocks, thus eliminating long searchers for plant stocks having 

needed characteristics, which was a major factor of delay in plant breeding 

in the past. 

Comment: The above partial listing of technical assistance activities work 

undertaken by FAO during 1946-49 will illustrate : 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2947 

(1) That FAO had amassed considerable experience in providing techni- 
cal assistance before President Truman's inaugural Point 4 prompted the 
U. S. Department of State to initiate a central fund in U. N. to finance multi- 
lateral technical assistance. 

(2) That FAO's program was completely international, involving financial 
and technical cooperation by countries all over the world. 

(3) That it did not duplicate nor conflict with technical assistance pro- 
grams being carried out by any of the other international organizations in 
the U. N. family, for the reason that FAO's work is confined by its own con- 
stitution to a clearly specified field in which no other of the international 
organizations has any authority to work. 

(4) That requesting governments had full authority to decide, on the 
basis of their own country programming, how much and what kind of help 
they needed from FAO, since no technical assistance was provided except 
at request of a government, and then always on the principle that FAO's 
task was merely to help the government with its own program. 

(5) That technical assistance, being a part of the regular work of FAO, 
could easily be coordinated with the program being carried out by the other 
international organizations in their fields of competence, simply by making 
use of the coordinating machinery which exists to coordinate the whole of 
the programs of the several organizations in the so-called U. N. system ( i. e., 
reports to the Economic and Social Council, the Administrative Committee 
on Coordination, and participation in the various consultative committees). 

(6) That there was full opportunity for governmental review of FAO's 
technical assistance activities, since all work done by the Organization 
must be approved in advance by government representatives in its full 
Conference and/or its Council. 

(7) That there was ample assurance to governments of honest and eflS- 
eient handling of funds spent by FAO in technical assistance work, since 
the same financial regulations were applied to the handling of money for 
technical assistance as were applied to the appropriations from member 
governments for the balance of the Organization's work — with the same 
careful scrutiny by the FAO Conference (consisting of representatives of 
all member governments) ; Council (an 18-nation policy body) ; Committee 
on Financial Control (finance experts appointed by governments) ; external 
auditors (seconded from governments) ; and internal auditors (hired to 
make regular check on handling of funds). 

(8) That governments were represented in FAO by the right people to 
pass upon the technical assistance work done by this Organization, since 
they were officers from Ministries of Food, Agriculture, Forestry, and 
Fisheries — and were, therefore, not only competent to judge the merits of 
the work, but were themselves responsible for carrying out the programs 
in their own home countries. 

(9) That requesting governments assumed a substantial share of the 
costs of all FAO technical assistance projects, since the projects were in all 
cases planned and executed by the national government, with FAO supply- 
ing only that part which could not be obtained within the country (usually 
the services of technical experts). 

(10) That the system of handling technical assistance in food and agri- 
culture as part of FAO's regular program provided opportunity to appro- 
priating bodies of contributing countries to know in advance what their 
money was to be spent for, as well as to permit them to express their 
opinion (by regulating the size of their appropriation) on the relative 
emphasis which should be placed on the various fields in which technical 
assistance is done (i. e., food, health education, public administration, 
overhead, etc. ) . 

All of the advantages now being claimed for the U. N. central fund system 
seem, therefoi-e, to have existed in the program wliich preceded it. The earlier 
program, however, did not impose costly administrative overhead on the tech- 
nical progi-ams, which the U. N.-fund program has developed ; nor did it create 
the threat of political interference with technical programs. 

December 19Jf8 

The U. N. General Assembly (Res. 200 [HI]) appropriated $288,000 for the 
year which began January 1, 1949, with which the secretariat of the U. N. could 
commence a technical assistance program in those fields of activity for whicli 
no Specialized Agency existed, and instructed the secretariat to make concrete 



2948 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

plans for an international center for training in public administration (Res. 
216 [III]). 

Comment : Except for the earlier action authorizing post-UNRRA advisory 
social welfare services, this appropriation of $288,000 was the first major 
budgetary actioa by member governments of the United Nations to authorize 
that Organization to engage in technical assistance work. This step came 3% 
years after govei'nments had ratified the FAO Constitution which specifically 
authorized FAO to furnish technical assistance to countries on request. It 
came, also, at a time when governments had already developed an international 
technical assistance program, which they were carrying on through FAO and 
other Specialized Agencies on a scale of about $5,000,000 per year. 

January 20, 19Jt9 

President Truman, as the 4th point in his inaugural address, announced that 
the United States "should make available to peace-loving peoples the benefits 
of our store of technical knowledge in order to help them realize their aspira- 
tions for a better life. * * * This should be a cooperative enterprise in which 
all nations work together through the United Nations and its specialized agen- 
cies vrherever practicable." 

February 25, 19^9 

Assistant Secretary of State Willard Thorp, U. S. representative on the U. N. 
Economic and Social Council (ECOSOC), opened debate at ECOSOC with the 
U. S. proposal that Secretary-General Trygve Lie (of U. N. ) should prepare for 
the July meeting of ECOSOC a concrete program for enlarging the activities 
of the U. N. raid the Specialized Agencies in the field of technical assistance. 
The Secretary-General was asljed to consult with the Specialized Agencies 
through the Administrative Committee on Coordination (on which each inter- 
national organization is represented by its administrative head, with the 
Secretary-General of U. N. serving as chairman). 

Comment : The U. S. representative to the U. N.'s Economic and Social Coun- 
cil took this fi'st step to centor the expanded program of international technical 
assistance in the U. N. (Organization) at a time when discu^ssions within the 
U. S. Government on how to implement President Truman's Point 4 had barely 
started. There is nothing in the record now to indicate how the United States 
Government arrived at its position so early on this fundamental question, which 
had such far-reaching implications for the progi-ams of all of the Specialized 
Agencies. 

The question had not been" raised in the newly formed Inter-Departmental 
Advisory Committee on Technical Assistance whether that portion of the Point 
4 money to be allocated to international channels should be utilized to set up 
a new and centralized program under U. N., or whether it should be used to 
strengthen the separate agencies of the international .structure by direct dealing 
with the several international organizations in whose woi'k the U. S. participated 
and to which the U. S. paid its membership dues directly. 

Despite the fact that the Secretary of Agriculture had been named by the 
President as the responsible officer for coordinating U. S. Government participa- 
tion in FAO. the advice neither of the Secretary of Agriculture nor of his staff 
was sought before a decision was made on this matter, which was of profound 
concern to FAO. There was, likewise, no discussion of this question in the 
U. S.-FAO Inter-Agency Committee (the body from which U. S. delegations to 
FAO are drawn). 

U. S. delegations to other international organizations were equally ignored, as 
were other Departments and agencies of the U. S. Government which are pri- 
marily concerned with certain of the Specialized Agencies (Dept. of Labor for 
ILO; Public Health Service for WHO, etc.). 

Members of Congress, who had studied each of the separate charters or con- 
stitutions of the international organizations before approving U. S. membership 
in them, were not consulted before this move was made, though it might con- 
ceivably result in such changes that U. S. obligations under these charters might 
be affected. 

In the same way, important citizens' groups (farm organizations, labor unions, 
medical and health associations, etc.), which serve as advisers to U. S. delega- 
tions to the various international organizations, were overlooked. 

As far as can be ascertained now, it would appear that the Department of 
State made an internal administrative decision to centralize the international 
portion of the proposed new program of technical assistance in U. N., and then 
took immediate steps to get action in that direction by the U. N.. Ordinarily, 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2949 

when action is talien by representatives of governments in one international 
body, tbe die is cast for all the rest, since another set of representatives sent by 
the same governments to a different international organization would find it 
.embarrassing to undercut the position already taken for their governments by the 
first group. Obviously, a government cannot take a different position in each 
international organization it attends. 

In the same way, action in U. N. can be used to stop effective discussion by 
national groups of the issues involved, since any question of the correctness 
of the decision made can be answered by pointing out that many governments 
participated in the international decision, and it would be unseemingly for 
national groups to try to get their one government to try to upset the majority 
decision. 

Febi'iiary-May 19^ 

U. S. Inter-Departmental Advisory Committee on Technical Assistance met 
frequently to make plans for implementing President Truman's Point 4. 

Comment: Insofar as the multilateral program was concerned, the only 
issue threshed out by this group was whether any of the Point 4 money should 
be channeled through the international organizations. In spite of the Presi- 
dent's inaugural statement that "this should be a cooperative enterprise in 
which all nations work together through the United Nations and its Specialized 
Agencies wherever practicable", there were powerful advocates for making 
the Point 4 program wholly bilateral. 

The Department of State did make itself the spokesman for the multilateral 
ni>p roach, and did prevail to the extent of getting agreement to earmark some 
of the Point 4 money for use in a "U. N. program". 

The question of centralization of the funds in U. N. versus direct payment to 
{he separate international organizations was not raised. The Assistant Secre- 
tary of State had made a proposal in the U. N. Economic and Social Council, 
and as a result of ECOSOC acceptance of his proposal, the international organ- 
izations themselves established an interagency working party to make recom- 
mendations for expansion of international technic.il assistance. Therefore, 
the Department of State took the attitude that the question of how the money 
was to be handled at the international level was not germane to the considera- 
tions of the U. S. Inter-Departmental Advisory Committee on Technical 
Assistance. 

There is no indication in the record that any one questioned why it should 
not be germane for this Committee to help develop the position to be taken by 
the U. S. delegation to U. N. on all of the issues involved in expansion of inter- 
national technical assistance work, including whether the U. S. should support 
the plan to create a new system with a central fund under control of U. N., 
or whether the U. S. delegations to each of the international organizations 
should work out a formula for expanding and strengthening the work already 
being done by these agencies under their regular budgets. 
March It, IdJfd 

ECOSOC adopted the proposal which had been advanced by Willard Thorp 
of the U. S. A. on February 25, 1949 (Res. ISO [A'lII]). This resolution re- 
xiuested the Secretary General of U. N., in consultation with the Specialized 
A-gencies, to draw up an expanded program of technical assistance for eco- 
nomic development, together with suggestions regarding its administration 
and financing. This plan was to be submitted to the next session of the 
ECOSOC, to be held in Geneva in the summer of 1949. 
March 5, 1949 

The Secretary General of U. N. initiated interagency consultations on the 
proposed expansion of the international technical assistance programs by per- 
sonal discussions with the executive heads of the agencies at Geneva, and again 
«n March 16 at Lake Success, N. Y. The Specialized Agencies taking part in 
these and subsequent talks were: ILO, FAO, WHO, IRO, UNESCO, IMCO, the 
International Bank and Monetary Fund. 

Comment: The Specialized Agencies stressed from the beginning of these 
talks that an agreement on the question of methods of administration and financ- 
ing (which would involve the question of control of the progi-am) was desir- 
able before constructive work could be done on outlining a program. The views 
on methods of financing ranged from those of the Specialized Agencies, whose 
representatives favored each agency seeking funds through its own normal 
budgetary channels, to those of the U. N., which favored all appropriations for 



2950 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

technical assistance being made to U. N. and by it allocated to the participating 

agencies. 

March Si-April 12-April 28, 1949 

Three meetings of senior officers of the international organizations were 
called— each for the specific purpose of reaching agreement on the question 
of whether the money for the proposed expanded technical assistance program 
should be placed under U. N. control, or whether financing should follow the 
procedure already in effect for the technical assistance vrork which was being 
done by the Specialized Agencies imder their regular budgets. 

Comment: The Specialized Agencies agreed: 

(1) That their desire was to avoid new and costly administrative ma- 
chinery for handling what were essentially activities indistinguishable from 
those already being carried out under their regular programs. 

(2) That the constitution or charter which established each organiza- 
tion reserved the rights of policy and program direction to its own mem- 
ber governments, and that arrangements could not now be adopted which 
would make the secretariats responsible to two sets of intergovernmental 
policy groups — their own member governments for that part of their pro- 
gram financed by dues paid directly to them by those governments, and also 
to the governing body of U. N. for the portion of their work which would 
be financed from a fund placed under control of ECOSOC or the General 
Assembly of the U. N. 

(3) That it is essential to avoid entry of nontechnical or political factors 
into what should be essentially technical decisions in carrying out technical 
assistance work. 

However, the unwillingness of U. N. to consider any compromise from its 
position, despite the fact that it was not shared by any other agency, limited the 
usefulness of these meetings as far as financial control and administrative pro- 
cedures were concerned. 

On the question of coordination of program, however, there was ready agi-ee- 
ment by all of the Specialized Agencies on methods for strengthening interagency 
coordination machinery, not only to avoid possible conflict and duplication, but 
also to ensure that the work to be done in the separate technical fields would 
add up to an integrated whole. It was proposed to set up as part of the ACC 
structure (the ACC — Administrative Committee on Coordination — is a commit- 
tee consisting of the executive heads of the international organizations, and 
which exists to assure coordination of their regular programs) a special com- 
mittee to deal with the expanded technical assistance work. All of the agencies 
would be represented on this committee, and all of the programs to be carried 
out under the expanded programs would be compared, gaps and overlapping 
noted, cost estimates brought into line, and a report prepared on them. This 
report would be submitted simultaneously to the governing bodies of the various 
organizations, for their information and background in considering the supple- 
mental budgets presented to them to cover these programs. 

This technical assistance committee would also have before it the fullest pos- 
sible information on what is being done bilaterally in the technical assistance 
field by governments, by international agencies, and by private organizations. 

The committee would also be a place where joint or combined technical assist- 
ance activities or missions could be worked out. 

The Committee was to have a small secretariat assigned to it from the agencies 
participating in the program. 

April J,, 1949 

A working party representing each of the international organizations was 
established to draw up programs to be carried out under the proposed expansion 
of their technical assistance activities. Within a few weeks all of the agencies, 
except U. N. and UNESCO, had submitted their proposals for programs, and 
the w'orking party reviewed them and agreed on recasting them into comparable 
form. The International Bank and Monetary Fund submitted program state- 
ments, but said they did not expect to call for any funds in connection with tlie 
prop^ised expanded program. 

After considerable work had been done in reviewing and recasting the program 
proposals for the other agencies, the U. N. and UNESCO presented their pro- 
grams. Tlie U. N. program, as it finally appeared, assumed that some form of 
centralized financing would be agreed upon and, therefore, that U. N. would 
have responsibility for all technical assistance activities involving more than 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2951 

one agency. It also assigned to U. N. interest in all fields not specifically as- 
signed to other agencies — including the fields of fiscal policy and administration, 
banlcirig, and industrial development. When it was pointed out that governments 
had given responsibility for these fields to the International Bank for Recon- 
struction and Development and the International Monetary Fund, U. N. Secre- 
tariat spokesman stated that if the Bank and Fund did not participate in the 
proposed technical assistance program, then there was no responsible agency 
for these fields and insofar as the "expanded" program was concerned, such work 
should be assigned to U. N. 

Strong protests were made against the U. N. concept of centralization by all 
of the other agencies. It was decided to submit the whole matter to a meeting 
of the Administrative Committee on Coordination (executive heads of the inter- 
national organizations) for resolution. 

May 18, 1949 

A meeting of the Administrative Committee on Coordination (ACC) was held, 
to which were submitted the programs which were proposed by the interna- 
tional organizations for the expanded technical assistance program. There 
was submitted also the conflict on the question of financing, with four alter- 
native methods, for the adoption of one : 

(1) A statement calling for complete decentralization of financing. This 
position was supported by the International Bank, the Monetary Fund, 
and FAO. 

(2) A statement of the U. N.'s completely centralized financing scheme. 

(3) A statement of a possible middle position presented by ILO, UNESCO, 
and WHO as a variant on the decentralized approach, but with provision 
for a small central fund for emergencies. (During discussion, the Bank 
and Fund indicated that they would have considered this as a compromise 
position, if U. N. would have done so, also.) 

(4) A statement presented by ICAO which called for central collection 
of funds from governments and disbursement under the authority of a new 
intergovernmental technical assistance body. 

During discussion of these papers by the ACC, it was apparent that none of 
these schemes was going to get unanimous support. The U. N. Secretary General 
finally agreed to a compromise calling for decentralized financing but providing 
that in U. N.'s technical assistance budget, there should be provision for a small 
supplementary fund to handle any expenses of joint operations not allocable 
to specific agencies and to meet emergencies. This compromise proposal was 
adopted unanimously by the ACC, and went to the ECOSOC as the final recom- 
mendation of the several international organizations on financing and admin- 
istering the proposed expanded program of technical assistance. 

This meeting of the ACC also approved unanimously the machinery proposed 
by the working party for coordinating activities of the several international 
agencies in this field (see p. 16). The programs proposed to be carried out 
by the agencies also met with ACC approval. 

May 25, 19^9 

The report was issued by U. N., covering proposals of the several international 
organizations for participation in an expanded technical assistance program. 
This report was the response to the March 4, 1949, resolution of ECOSOO re- 
questing submission of such proposals. (U. N. Document E/1327/Add., 1 May 
1949.) 

Comment : On the question of financing and administration, this report recom- 
mended that each international organization, which considered it necessary, 
should establish a special budget for technical assistance, and should invite its 
member governments to make contributions to this budget over and above their 
contributions to its normal budget. 

In transmitting the report from the working party to ECOSOC, the Secretary 
General of U. N. advised ECOSOC that the U. N. Secretariat did not concur 
in the recommendations of the Specialized Agencies on methods of financing — 
that U. N. continued to prefer a central fund, to be centrally administered 
by U. N. 

June 10, 1949: Paris 

The Executive Board of UNESCO took the following action relative to the 
proposals for an Expanded Technical Assistance Program, to be carried out 
cooperatively by the several international organizations : 

72723—57 — pt. 42 6 



2952 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

"The ExEctJTivE Board 

"Having heard tlie report of the Director General on the proceedinss at the 
Committee on Coordination and having examined the document prepared by this 
Committee as a basis for the Secretary General's report to the Economic and 
Social Council : 

"Noting * * * that the Committee's proposals leave the financing and the 
conduct of technical assistance operations in the hands of each Specialized 
Agency, subject to consultation through the Secretary General's Committee 
on Coordination before the proposed program and relevant special budgets have 
assumed final form ; * * * 

"Instructs the Director General : 

"A. to prepare for the General Conference at its Fourth Session a supple- 
mentary budget for technical assistance, corresponding to the above program, 
such budget to be financed by contributions from those Member States which 
desire to participate; 

"B. subject to the decisions of the General Conference, to implement this 
program of technical assistance: 

"(a) to the extent of the requests for technical assistance received by 
UNESCO, either direct or through the United Nations or other Specialized 
Agencies, from countries desiring such aid ; 

"(b) subject to approval by the Executive Board of a detailed program 
and budget (including the assurance of adequate financial participation by 
the recipient country) for each proposed activity; 

"(c) in close cooperation with the United Nations and the other Special- 
ized Agencies, through the Administrative Committee on Coordination and 
any subsidiary body it may appoint for the purpose, with the object at all 
times of aiming at a truly integrated plan of technical assistance in which 
each organizatfon contributes its special skills towards the single objective 
of human betterment in the widest sense." 

June 13-24, iH9: Paris 

The Council of the Food and Agriculture Organization (FAO) tooli the follow- 
ing action relative to the proposals for a Expanded Technical Assistance Pro- 
gram, to be carried out cooperatively by the several international organizations : 

"The Council 

"Having considered the report of the Administrative Committee on Coordina- 
tion on Technical Assistance for Economic Development, prepared in accordance 
with the resolution of ECOSOC of March 4, 1949, and the Director General's 
proposals regarding FAO's participation therein, * * * 

"Recommends that the Director General should avail himself of the widest 
possible expert advice on methods which have been proved valuable in the 
development of underdeveloped areas, and that he should consult those coun- 
tries which have had special experience in this field, either by consulting 
individual experts or groups of experts concerned, with the object of completing 
a report for submission to the Conference at the next session, comprising 

(a) a survey of the diverse forms and techniques in which technical 
assistance can be given, and 

(b) an examination of the resources available for specialized advice upon 
which calls might be made * * * 

"Rccomm,ends that the Conference at its regular session should examine the 
revised proposals of the Director General as a basis for decisions regarding the 
supplementary budget required for technical assistance * * *." 

Comment : In submitting proposals for FAO participation in the Exi^anded 
Technical Assistance Program to the Council of FAO (Sixth Session, Paris, 
France), the Secretariat did not report on the attempt made by U. N. to control 
the technical assistance programs of the other organizations by means of estab- 
lishment of a central fund. Neither was there mention made to the FAO 
Council of the difficulties which had occupied the interagency group during 
most of the preceding 3 months. The FAO Secretariat did not ask for the 
guidance of the Council of FAO on the question of a centrally controlled fund, 
and, consequently, there was no discussion by this governmental body of the 
implications of the central-budget plan on operations of FAO, under terms of 
its separate constitution. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2953 

June 30, 1949 

The Second World Health As^sembly took the following action relative to the 
proposals for an Expanded Technical Assistance Program, to be carried out coop- 
eratively by the several international organizations: 

"The Second World Health Assembly 

"Having considered the operating programme of advisory and technical serv- 
ices to Governments prepared by the Director-General and forwarded by the 
Executive Board * * *. 

"Having noted with interest and approval Resolution No. 180 (.VIII) adopted 
by the Economic and Social Council on 4 March 1949, and that, by virtue of the 
above resolution, a comprehensive plan for an expanded cooperative programme 
of technical assistance for economic development through the United Nations 
and the Specialized Agencies has been prepared by the Secretary-General of 
the United Nations in consultation with the Executive Heads of the Specialized 
Agencies through the Adniinistn.tive Committee ou Coordination, and is to be 
submitted to the Economic and Social Council at its 9th Session, 

"Appkoves that part of the iirogramme contained in Official Records No. 18 
as amended by this Assembly and which, for budgetary reasons, is called the 
Supplemental Operating Programme of Advisory and Technical Services, stib- 
ject to arrangements having been completed to provide funds for its implementa- 
tion, and further, as there is no financial provision in the 1949 Budget for more 
than one meeting of the Health Assembly, 

"Delegates to the Executive Board authority to authorize the Director-General 
to undertake appropriate negotiations concerning the provision of funds to imple- 
ment the Supplemental Operating Programme of Advisory and Technical Serv- 
ices ; and further authorizes the Executive Board to act ou behalf of the World 
Health Assembly until its next meeting in approving the results of such negotia- 
tions. 

"Empowers the Executive Board : 

"1. To authorize the Director-General to accept and administer such 
funds * * * 

"3. To authorize the Director-General to negotiate agreements with Mem- 
ber Governments couceriiiug the amounts and curi'encies of their contribu- 
tions * * *." 

Comment: Ou July 1, 1949, the World Health Organization (WHO) issued 
the following i^ress release from the Second World Health Assembly, in session 
in Rome, Italy : 

"With the approval late on Wednesday night of a ten-million dollar supple- 
meutal budget for 1950, the World Health Organization becomes the first United 
Nations Specialized Agency to make definite provision for the implementation of 
the United Nations cooperative programme of technical assistance for economic 
development in underdeveloped areas. 

"The 1950 supplemental budget, amounting to $10,624,410, was approved in 
a meeting of the .Toint Committee on Programme and Budget for financing by 
voluntary contributions from states members of ^^'H0. The programme of ad- 
visory and technical services envisaged under the supplemental budget will be 
coordinated closely with the United Nations itself, and with similar programmes 
being planned by other Specialized Agericies * * *. 

"During the discussions which led up to the approval of the supplemental 
budget, several countries, including Ceylon, the Dominican Republic, India, the 
United States and Yugoslavia, indicated their willingness to make contributions. 
With the exception of Yugoslavia, however, which announced its intention to 
contribute $44J,000, delegates said they were as yet unable to make definite com- 
mitments on the amounts of their contributions." 

* * * * * Hi Hi 

On September 12, 1949, the World Health Organization (W^HO) issued the 
following press release : 

"Ceylon today became the first country to participate in the Technical Assist- 
ance Programme of the World Health Organization by voluntarily contributing 
the sum of .$1,000 to the WHO supplemental budget for 1950. 

"This was announced at the \\ orld Health Organization headquarters in 
Geneva today, as word was received that Ceylon had paid its regular contribu- 
tion of $2,013 to the 1949 WHO budget of $5,000,000, and had in addition con- 
tributed $1,000 to the technical asistance budget for next year. 

"The Technical Assistance Programme of the World Health Organization is 
to be financed by member countries through voluntary contributions, according 



2954 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

to a decision of the Second World Health Assembly at Rome in June 1949, This 
supplemental programme, estimated at $10,000,000, will enlarge the regular ac- 
tivities of WHO, paid for by a $7,500,000 budget for which the 66 member 
nations of the Organization will be assessed according to the usual scale of 
contributions. The Technical Assistance Programme is to be specially devoted 
to underdeveloped countries where health problems are often the cause of lack 
of economic development. 

"Several nations pledged voluntary contributions to the WHO supplemental 
budget during debate at the Second World Health Assembly, among them Ceylon, 
Yugoslavia, the Dominican Republic, India and the United States." 

July 1, 1949 — Geneva 

The International Labor Conference (ILO) took the following action relative 
to the proposals for an Expanded Techtiical Assistance Program, to be carried 
out cooperatively by the several international organizations : 

"The (ILO) Conference authorizes the Governing Body, in the event of its 
being possible to initiate an expanded programme of technical assistance for 
economic development before the 33rd Session of the Conference and pending 
submission of more detailed proposals to the Conference at that session, to make, 
in consultation with States Members and with the United Nations, and particu- 
larly with the Economic and Social Council, and with other Specialized Agen- 
cies, such interim arrangements as may be appropriate to permit the ILO to 
initiate such an expanded programme as part of the cooperative programjne 
contemplated by the Economic and Social Council, and to obtain and to expend 
the necessary funds therefor." 

******* 

Comment : In a report accompanying the resolution authorizing ILO partici- 
pation in the proposed Expanded Technical Assistance Program, the ILO Con- 
ference commented as follows on Finance and Administration : 

"The Conference has given careful consideration to the administrative and 
financial arrangements proposed in Chapter 5 of the report of the Secretary- 
General of the United Nations on Technical Assistance for Economic Develop- 
ment, and notes that the method of financing which is proposed represents an 
intermediate solution agreed upon unanimously by the Secretary-General and the 
executive heads of the specialized agencies after full consideration of the rela- 
tive advantages and disadvantages of other possible methods. 

"In the course of the consideration of the matter by the Conference, different 
views have been expressed concerning the extent to which the administrative 
and financial arrangements contemplated in these proposals provide for adequate 
coordination of the technical assistance programme as a whole. 

"A system of financing the technical assistance activities of all the interna- 
tional organizations through a single central fund, would, it is suggested in cer- 
tain quarters, make possible a more strict and effective central control over all 
such activities and would simplify the collection of contributions from Govern- 
ments. In support of this view it was argued that central collection would help 
to keep expenditure within the limits of income. 

"On the other hand, it is pointed out, there would be serious disadvantages in 
divorcing the responsibility for the collection of contributions from the opera- 
tional responsibility for technical assistance activities which must necessarily 
rest with the several organizations concerned. Moreover, any system which pro- 
vided for central control over the activities of the several organizations, as dis- 
tinct from coordination by consultation and agreement, would be open to serious 
objection on account of the differences in the membership of the organizations. 

"It is widely felt also that the system of separate budgets proposed by the 
Secretary General of the Union Nations and the executive heads of the special- 
ized agencies offers important advantages which heavily outweigh the merits 
claimed for centralized financing. Both the financial and the technical control 
of the technical assistance activities of the several international organizations 
are likely, it is considered, to be easier and more efficient if each organization is 
responsible for its own budget and its own activities. In the case of the ILO, 
such control, which would be exercised through the Governing Body, would enable 
the expanded technical assistance programme to be planned and administered in 
accordance with methods and principles which have been perfected through long 
experience. 

"There is general agreement, however, that there should be some central point 
at which the total size of the expanded cooperative programme of technical assist- 
ance to be undertaken by the various international organizations could be fixed 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2955 

and at which the size of the sums to be spent by the several organizations could 
be compared and adjusted. In this connection, one suggestion was that this proc- 
ess of comparison and adjustment could be achieved by a series of meetings of 
authorized representatives of the various specialized agencies concerned. It 
might be convenient to hold such meetings at the same time as the General Assem- 
bly of the United Nations. 

■'AVhatever method of financing may be adopted, the budgetary provision made 
for the expanded programme of technical assistance should be kept separate from 
the ordinary budget of the Organization. Measures should be taken to ensure 
that the exanded activities do not outrun the funds available to finance them. 

"The Conference attaches special importance to the proposals which have been 
made by the Secretary-General and the executive heads of the specialized 
agencies for the purposes of ensuring full and effective coordination of the tech- 
nical assistance activities of the several international organizations. Such 
coordination is essential both in order to ensure that the fullest measure of 
service is rendered to the imderdeveloped countries, and as a means of avoiding 
waste of effort and resources by the intei-national organizations engaged in the 
programme. The arrangements devised to ensure this coordination should be of 
such a character as not to impair the responsibility of the executive heads 
of the several organizations to their respective governing bodies. In the judg- 
ment of the Conference, the administrative arrangements contemplated in the 
proposals referred to above are such as to satisfy this requirement, and they 
would seem to afford a basis for the development of an effective and closely 
coordinated programme. The Conference also recognizes that general responsi- 
bility for the coordination of the expanded technical assistance programme as a 
whole will rest with the Economic and Social Council." 

July 21-Augnst 15, 1949 

The Ninth Session of the U. N. Economic and Social Council considered prob- 
lems involved in economic development of underdeveloped countries, and "recog- 
nized that the economic development of underdeveloped areas required not only 
expanded efforts in technical assistance, but also assurances of an expanded 
rate of international capital flow for the purpose of financing economic develop- 
ment." (U. N. Bulletin, September 1, 1949, page 19.) Representatives of under- 
developed countries were primarily concerned with developing methods of 
financing large-scale development projects, but finally fell in line with the United 
States drive to establish an expanded international technical assistance program 
under the United Nations. Accordingly, two actions in the field of technical 
assistance were taken by ECOSOC : 

(1) Proposals of the Secretary-General of U. N. were approved for continua- 
tion, enlargement, and making permanent the program of technical assistance 
to be carried out by U. N. on a I'egular basis, in contrast to the "expanded" pro- 
gram being proposed by the United States in that session of ECOSOC, in which 
the U. N. was also expected to participate. The preceding session of the U. N. 
General Assembly, meeting in Paris in 1948, had appropriated $288,000 to finance 
provision by U. N. of fellowships and training facilities, and the dispatch of 
technical missions. ECOSOC now recommended to the General Assembly that 
$676,000 be appropriated for these activities by the United Nations (Organiza- 
tion) during calendar year 1950, and that the Genei'al Assembly take the neces- 
sary action "to ensure that the regular budget of the United Nations should con- 
tinue to provide the necessary funds." 

Comment : This action by ECOSOC, and subsequent approval by the 1949 
session of the U. N. General Assembly, constituted the first official step by 
member governments of U. N. to put U. N. permanently into operation of tech- 
nical assistance programs. Unlike the FAO constitution, the U. N. charter 
does not state that technical assistance is a function of the organization. 

(2) A resolution (222) was adopted to set out the financial arrangements, 
organizational machinery, and guiding principles for an "expanded cooperative 
technical assistance program of the United Nations and Specialized Agencies." 

Financial Arrangements. — This resolution (222) established a central fund 
especial Account), to be administered by the Secretary-General of the U. N., 
for financing the expanded technical assistance program. Contributions to this 
account were to be made by countries on a voluntary basis at a "pledging" 
conference, to be called by the U. N. Economic and Social Council "at such time 
as the Secretary-General finds appropriate." INIember states of U. N. and the 
Specialized Agencies were to be invited to the conference, and were to be asked 
to make contributions to the program "in such form and subject to such condi- 



2956 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

tions as may be agreed between them and the Secretary-General, who should 
consult" with the Technical Assistance Board (a committee of representatives 
of U. N. and Specialized Agencies, of which the chairman was designated by 
ECOSOC as the U. N. Secretary-General or his representative). 

ECOSOC specified that contributions to the Special Account for the expanded 
technical assistance program "should be made without limitation as to use by 
a specific agency, or in a specific country, or for a specific project." 

ECOSOC further specified that "the U. N. Secretary-General should allot 
contributions received during the first fiscal year," as follows : 

(a) The first $10 million should be automatically available for transfer 
to the participating organizations, in accordance with percentages for each 
organization which were set by ECOSOC (UN, 23 percent: ILO, 11 percent; 
FAO, 29 percent; UNESCO. 14 percent; ICAO, 1 percent; V^HO, 22 percent. 

(b) Of the second $10 million, 70 percent should be available for distri- 
bution to the participating organizations, and 30 percent retained for sub- 
sequent allocation. 

(c) All contributions above $20 million should be similarly retained. 
OrganisaUondl Macli'mcry. — In laying down administrative arrangements for 

the expanr^ed program of technical assistance, ECOSOC resolution 222 created 
two standing committees : 

(a) Technical Assistance Committee (TAC), which consists of representa- 
tives of the 18 governments which are members of the ECOSOC. Duties : to 
make "critical examinations of activities undertaken and results achieved" ; 
to make such recommendations regarding the programs as it deems necessary 
to ECOSOC ; to "review the working relationships between the participating 
organizations and the effectiveness of the methods of coox'dination in con- 
nection with their programs," and to arbitrate disputes. 

(b) Technical Assistance Board (TAB), which consists of the executive 
heads, or their representatives, of the United Nations and the Specialized 
Agencies participating in the program. The resolution states that the chair- 
man of TAB will be the Secretary General of U. N. or his representatives ; 
the executive secretary is to be appointed by the Secretary General. Duties 
of TAB : to deal with coordination of and exchange of information on re- 
quests received by participating organizations for technical assistance ; to 
make reports on funds and programs to the Technical Assistance Committee 
(TAC) of ECOSOC. In regard to staff for TAB, the Secretary General was 
requested to make appropriate arrangements for assigning members of the 
staff of participating organizations to that of TAB, as may be necessary. 

G-uidinf/ Principlcfi. — As a guide to the participating organizations, ECOSOC 
recommended a number of principles to be observed in carrying out the expanded 
technical assistance program. Generally speaking, these were not different from 
the aims and standards of operation set forth in the constitution and rules of the 
Specialized Agencies for the conduct of the technical assistance work already 
being done by them under their regular programs. 

Comment: The resolution 222 (IX-A) as it was finally adopted by the 
ECOSOC was essentially that proposed and supported by the United States rep- 
resentative for operation of the expanded program of technical assistance. 

It gives no recognition to the fact that member governments of four autonomous 
Specialized Agencies (PAO, ILO, WHO. and UNESCO) had already considered 
the proposed expanded program, and had approved participation in each case 
on the basis of decentralized financing, as recommended in the report which had 
been submitted to ECOSOC. 

The decision to place all funds for the expanded technical assistance program 
In a special account, to be administered by the Secretary General of U. N., with 
contributions being made by governments on a voluntary basis at a pledging 
conference called by U. N., represented a rejection of the imanimously supported 
recommendations of the Specialized Agencies for financing and administering the 
program. It was adoption of the position held by U. N. alone. 

Review of the records of meetings devoted to technical assistance during the 
Ninth Session of L'COSOC show that Willard Thorp (representing the U. S. A. ) 
opened the discussion by making three points regarding the joint report which 
had been submitted by U. N. and the Specialized Agencies : 

(1) The internntional organizations had indicated that they could effec- 
tively use $35 million for the first year, and had outlined programs coming 
to that figure. Mr. Thorp requested that the figure be cut to around $15- 
$20 million. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2957 

(2) The international organizations had recommended that the new 
program he considered an expansion of their reguhu- work, and suggested 
that governmental review of the programs talie place in their various gov- 
erning bodies, where governments are represented by delegates from ap- 
propriate technical ministries (i. e., from ministries of food and agricul- 
ture for FAO; from ministries of liealth for WHO, etc.). Mr. Thorp pro- 
posed, instead, that the ECOSOC should set up a technical assistance com- 
mittee, composed of representatives of governments in that body, to review 
the technical assistance programs of all of the international organizations 
and recommend priorities. 

(3) The international organizations had recommended machinery for 
coordinating the programs to be carried out in the separate technical fields,, 
but had proposed that requests for funds be handled as supplemental 
budgets to be presented separately in each of the international organizations. 
Mr. Thorp proposed that funds to finance the expanded programs of tech- 
nical assistance should be raised through voluntary pledges by govern- 
ments at a technical assistance conference to be called by U. N'. The word- 
ing of his suggestion carried with it the strong implication that the funds 
so raised should be centrally administered. 

Mr. Thorp's speech was followed by a series of general statements by other 
delegates to ECOSOC. As stated earlier, the representatives of underdeveloped 
countries at first were lukewarm to technical assistance, but were willing to 
support the U. S. proposals. Their interest was in developing methods of 
financing economic development. 

As the discussion went on, more support was evidenced for a centralized 
control of funds, and for an important voice in administration of the technical 
assistance programs to be given to the political representatives of governments 
present in U. N. The chief advocates of this viewpoint were the delegations 
of Australia, New Zealand, and Poland, supported on most points by the other 
Eastern European states and by India. Opponents of the concept of centralized 
control of policy and finance by U. N. were the U. K. and Brazil, supported 
in the main by Chile and France. 

The position of the U. S. throughout the 3-week discussion continued to favor 
a central fund, to be placed in U. N., but there was a shift in the U. S. position 
at one point toward more complete supervision and control by governments 
represented in ECOSOC. When it became clear that several of the Specialized 
Agencies would withdraw from participation in the program if this position 
was accepted, the U. S. returned to its original position calling for a special 
account to be administered by the Secretary-General of the U. N. 

The U. S. S. E., despite apparent general opposition to the proposed program,, 
managed to insert a provision in the ECOSOC resolution calling on the Specialized 
Agencies concerned to report to the standing committee of governments in 
ECOSOC "on their technical assistance activities, including activities financed 
from the Special Account." It was this provision which finally made it impos- 
sible for the International Bank and Monetary Fund to participate in the ex- 
panded program as it was set up, since they stated that they could not enter intO' 
arrangements which would subject their regiTlar programs to other authorities 
than those specified in the Articles of Agreement with their member governments. 

As had been the case in the preceding February, when the U. S. representa- 
tive first took the initiative to center the international portion of the Point 4 
program in the U. N., the U. S. position in the summer session (1949) of the 
ECOSOC seems to have been reached by administrative decision within the 
Department of State and the U. S. Mission to U. N. There is no record now to 
indicate that consultations were held with any other groups, or that the matter 
was regarded as one which might have profound repercussions on the opera- 
tions of the Specialized Agencies, which are autonomous and some of which were 
already operating extensively in the field of international technical assistance. 

Novetn'ber 16, 19Ji9 

The U. N. General Assembly approved the resolution submitted to it by 
ECOSOC for establishing the "U. N. Expanded Technical Assistance Program." 

November 21, 19^9 

Proposals for FAO participation in the U. N. Expanded Technical Assistance 
Program were submitted by the FAO secretariat to the 5th Session of the FAO 
Conference (C 49/13). The FAO Conference is the principal governing body of 
the Organization, in which all member countries are represented. 



2958 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

Comment : The FAO secretariat made no report to its member governments on 
the U. N. attempt to control the expanded program of technical assistance through 
centralizing the finances for the program in U. N. In the document presented 
to the 5th Session of the FAO Conference, there is assumption that the member 
governments of FAO need only give their blessing to FAO participation in the 
U. N. program and thereafter sums of money will be transferred from the U. N. 
fund to FAO for increased technical assistance activities by FAO, with no real 
change in FAO operations, except in scoi)e. 

As was the case with the FAO Council in the preceding June, no hint was given 
of the months of bitter disagreement with the U. N. Secretariat over its arbitrary 
stand regarding centralized control of the technical assistance fund, nor was 
there any request for consideration by the meml)er g(nernments of FAO of the 
implications on FAO of the "foreign rule" inherent in the central-fund approach 
to technical assistance. Consequently, when the FAO Conference merely ap- 
proved FAO participation in the U. N. program as proposed by the FAO secre- 
tariat, the action was taken by the delegates without full information on past 
events or future implications. 

June 5, 1950 

Public Law 535, known as the "Foreign Economic Assistance Act of 1950," 
was approved by the 81st Congress of the U. S. (Chapter 220, 2d Session, H. K. 
7797). Under Title IV of this Act (Sec. 404 (ft)) the Congress authorized the 
President to participate in multilateral programs of technical assistance, under 
U. N. and other international organizations. 

June 12-14, 1950 

The first pledging conference was held under auspices of U. N., in New York 
City, in order to obtain money for financing the proposed U. N. expanded 
technical assistance program. 

All U. N. members were invited to the conference, and 46 of the 59 attended. 
Other states having membership in one or more of the participating Specialized 
Agencies were also invited, and eight were present. Contributions approximat- 
ing U. S. $20,012,500 (but offered in currencies of contributing countries or 
scholarships or services rather than in dollars) were pledged to carry out the 
U. N. expanded program of technical assistance in its first phase, from July 1, 
1950, to the end of 1951. 

According to a report in the U. N. Bulletin (July 1, 1950), "Of the total, 
the United States contributed $12,007,500; 49 countries made up the balance." 

Quoting again from the U. N. Bulletin (July 1, 1950), "Mr. Thorp (representing 
the U. S.) announced the United States Government was prepared subject to 
Congressional appropriation, to contribute $10,000,000 for the first period of 
operation, provided that other countries at the Conference contributed a total 
of $7,000,000, or its equivalent. Furthermore, the United States was pre- 
pared to raise its contribution progressively up to $12,500,000, provided that 
its share did not represent more than 60 percent of the total pledged. As the 
program was an expression of international cooperation, the United States felt 
that no country should dominate the program, either in responsibility or con- 
tribution." 

Comment : The Foreign Economic Assistance Act of 1950 states ( Sec. 416 [b] ) : 
"Nothing in this title is intended nor shall it be construed as an expressed or 
Implied commitment to provide any specific assistance, whether of funds, com- 
modities, or services, to any country or countries, or to any international organi- 
zation." Whether Mr. Thorp's pledge, modified by the qualifications "subject 
to Congi-essional appropriation," constituted a commitment is a question. Cer- 
tainly the nations which were exhorted to match it 60-40 at the U. N. pledging 
conference considered it a commitment on the part of the U. S. Government. 

How the U. S. representative arrived at the amount to be pledged at the U. N. 
conference is not clear from the records. Neither is it possible to find under 
what authority he offered to match contributions from other countries at a 
ratio of 60 percent. The Congress has repeatedly stated that the United States 
is to pay no more than one-third of any international fund. 

The system of "matching" contributions seems also to have been decided 
without the consent of the appropriating authorities in Congress, since they 
have been highly critical that this method results in a representative of the 
Executive Branch obligating the U. S. Government to pay an amount of money 
which cannot be ascertained in advance, for programs which the Congress has no 
opportunity to approve. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2959 

One peculiarity of the pledging conference which becomes apparent now is 
that a major argument used by the United States when it was first proposed to 
establish a central fund in U. N. for the expanded technical assistance program, 
and for financing it by voluntary contributions obtained at a pledging conference, 
was that the member governments of the specialized agencies would not be will- 
ing to increase their contributions to their agencies for expanding technical 
assistance work. However, the nations were making their payments to such 
agencies as FAO in scarce United States dollars in 1950, and there were sharp 
limits on dollars available to them. When they made pledges at the U. N. tech- 
nical assistance conference, they offered local currencies, scholarships, and serv- 
ices. The question now is, if they had been permitted to make supplementary 
contributions of that kind to organizations whose programs they were already 
supporting with dollars, would they not have done so? Since the other coun- 
tries at the pledging conference offered their contributions in a hodge-hodge 
of currencies and services, there is at least room for doubt that the State De- 
partment argument was valid that countries will contribute only to a central 
fund in U. N. 

In this connection, it should also be noted that member governments of FAO, 
WHO, ILO, and UNESCO had already indicated their willingness to consider 
establishment of supplemental budgets for technical assistance (see pp. 19 to 25). 
WHO had in fact, received pledges from five governments (Ceylon, Yugoslavia, 
Dominican Republic, India, and the USA) more than a year before, and had then 
received actual contributions of $1,000 (United States) from Ceylon and $10,000 
(United States) from Yugoslavia, with an additional amount of 1,500,000 dinars 
(roughly equivalent to $40,000) to be deposited in a Yugoslav bank for WHO 
technical assistance work. 

December 1, 1950 

The U. N. General Assembly voted to continue the U. N. Children's Emergency 
Fund (UNICEF) for another 3 years, after which it agreed to consider putting 
UNICEF on a permanent basis. 

The United States representative abstained from voting, with the explanation 
that the United States "had hoped to see a fund set up on a permanent basis 
at the present Assembly session. It wanted to make sure that the United Nations 
would be advancing child-welfare programs, particularly in underdeveloped 
countries, as an integral part of the work of the United Nations." (U. N. 
Bulletin, December 15, 1950, p. 677.) 

Comment: UNICEF was started (December 11, 1946) as an emergency opera- 
tion to meet needs of children in war-devastated areas when UNRIIA went out 
of existence. It inherited relief funds from UNRRA, received appropriations 
from governments and gifts from voluntary organizations and individuals. By 
mid-1950, UNICEF had received $148,000,000. United States contributions are 
on a "matching" basis of $72 for every $28 contributed by other governments. 
To June 30, 1950, United States legislation authorized $100 million for UNICEF 
on this basis. 

Gradually the character of UNICEF operations shifted from "emergency 
relief" to long-range programs of a technical-assistance character. While all 
UNICEF work is presumably done for the benefit of children, the programs 
undertaken (according to a report by Maurice Fate, Executive Director of 
UNICEF, in an article in the U. N. Bulletin, July 15, 1950) are "mainly for the 
control of disease affecting children, for strengthening maternal and child health 
services, and at the same time providing facilities for training of national staff." 
These activities are indistinguishable from the work of WHO as assigned to it by 
governments under terms of its charter. In the same way, UNICEF's work in 
such fields as nutrition education and milk pasteurization, are identical with 
responsibilities assigned by governments to FAO. 

Compared with budgets available to FAO and WHO, UNICEFs financial re- 
sources seem almost limitless. This factor, together with UNICEF's system of 
allocating sizable sums to requesting countries to help finance national iirograms 
poses a real problem to the two specialized agencies of major competition from 
UNICEF in their own technical fields. 

Repeated incursions by UNICEF into technical fields for which WHO and FAO 
are responsible finally brought complaints from the two specialized agencies. 
UNICEF's response was to urge the two agencies to "cooperate" with them 
by attaching technical advisers to UNICEF missions. Unfortunately, the very 
limited budgets of the two technical agencies prohibit this, as does the fact that 
the member governments of these two agencies expect to approve in advance the 
work undertaken by them. 



2960 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

If UNICEF funds are used to pay salaries and travel expenses of FAO and 
WTIO technicians who advise on UNICEF projects, the question presents itself 
whether it is wise for technically trained representatives of governments in 
FAO and WHO (i. e., Ministries of Agriculture and Health) to abdicate to 
UNICEF their right to evaluate the worth of projects being carried out in their 
fields of competence. Lay people are sent by governments to UNICEF and they 
are not necessarily qualified to deal with technical assistance work in the 
fields of health, nutrition, and agriculture. 

U. N.'s Regional Economic Commissions ^ 

The Economic and Social Council of the U. N., which in the original concept 
was to engage in no action in the fields assigned to the specialized agencies, has 
established large Regional Economic Commissions in Europe, Asia, and Latin 
America (ECE, ECAFE, and ECLA). On the grounds that agriculture, forestry, 
and fisheries are the economic base of the regions these bodies serve, they have 
initiated studies, issued reports, and called meetings of governments to discuss 
these subjects, which are all in the field of FAO. In Europe, where FAO already 
had government committees to deal with agriculture and forestry, ECE set up 
committees of the same governments to work in the same fields as soon as it was 
formed. To prevent the matter from degenerating into a power struggle with 
U. N., FAO finally decided to supply the secretariats for the two ECE committees, 
which represents a considerable drain on FAO's slender resources. Following 
the same pattern, FAO eventually had to station agricultural economists at both 
the ECAFE, in Bangkok, and ECLA, in Santiago, in order to keep FAO's work 
tied in with the agricultural activities of those two bodies. Probably it is not a 
matter of paramount importance whether FAO does a job under its own name, or 
whether it does it behind the front of another agency, as long as the job gets done. 
But, when the problem of duplication is being considered, it is worthy to note that 
FAO may be losing the great values that come with establishing a reputation for 
skillful operation in its own field, and may, indeed, become a secondary factor in 
the economic aspects of the work assigned to it in its charter by being forced to 
become a "feeder" to U. N. and its regional commissions. 

158. Economic reconstruction of devastated areas : report of the Second Com- 
mittee : resolution (Documents A/233 and A/233/add.l) ' 

******* 

Mr. Lange (Poland) ^ * * * We know that besides this problem, there is an- 
other very important problem, that of underdeveloped countries and of financial 
assistance toward their development. We ourselves are interested in this 
problem. * * * 

Another point in which we are particularly interested and to which I wanted to 
draw the attention of this Assembly is the recommendation that the Economic and 
Social Cmincil give prompt and favourahle consideration to the estaMishment of 
an Economic Commission for Europe, and an Economic Commission for Asia and 
the Far East. 

The idea of an Economic Commission for Europe was raised ty the Polish 
representatives at the London Conference on devastated areas, which took place 
this summer. I tvant to thank all the delegations who supported this idea and 
voted unanimously for our resolution. * * * 

ECONOMIC AND SOCIAL COUNCIL, 9TH SESSION, GENEVA 

"Amazasp Arutiunian (U. S. S. R.) noted that so far 'no realistic' proposals 
had been submitted to serve as a basis for the Council's concrete decision at 
this session. He still hoped, however, that the Council might make a useful 
contribution to the underdeveloped areas. He opposed the convening of a 
special conference on grounds that United Nations bodies possessed sufficient 
machinery and that organizational arrangements could be made in the Council's 
Economic Committee. He declared that technical assistance should not be 
granted in return for 'political, economic and military privileges', and stated 



* U. 8. 8. R. and gateUites are members of U. N.'s regional economic commission!?, but not 
of FAO. Otherwise membership and agricultural programs are the same and duplicating. 

a P. 1135 (December 11, 1046), Official Records of the Second Tart of the First Session 
of the General Assembly ; Verbatim Record of Plenary Meetings, October 23-December 16, 
1946. 

^ Poland started U. N. regional economic commissions. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2961 

that even war-devastated countries like the Soviet Union should contribute to 
development. He stressed the importance of indvxstrialization equipment and 
said that the Soviet Union's new heights of industrial progress would allow it 
to increase assistance to 'countries which need it'. He charged that the colonial 
policies of the United Kingilom, the U. S. and France were the reasons for 
the 'core of the problem', of underdeveloped areas. He said that increasing 
world interdependence required the consideration not only of a country's own 
economic plan, but also that of other countries. Similarly, he said, development 
should not favor the interests of a few important monopolies. 

"Mr. Arutiunian charged that colonial policy developed agriculture and other 
exports of commodities instead of proflucing a variety of goods needed in the 
respective areas. These areas, he said, most needed help in industrialization. 
Mr. Arutiunian declared that internal capital resources in underdeveloped areas 
must be mobilized before external assistance was provided. He argued that 
present profits from colonial and underdeveloped areas went to 'foreign monopo- 
lists' and declared that 'the new American program of colonialization is covered 
by the term assistance' which was 'simply capital seeking new outlets'. He 
also charged that President Truman's point 4 had 'political objectives' and was 
a result of fear of colonial emancipation movements. Mr. Arutiunian said 
that the proposed conditions for granting aid reflected the character of the 
U. S. program, and he elaborated that 'equal opportunity' in underdeveloped 
areas requested by the U. S. amounted to 'equality of the lamb and the wolf 
locked together in the same cage'. He felt that the U. N. organs and the U. N. 
regional Commissions were best fitted to judge the needs of the respective areas, 
and he noted that these organs were not mentioned in the U. N. plan. Con- 
cluding, Mr. Arutiunian expressed the belief that a program worthy of the U. N. 
and not favoring any particular country could be worked out in the Council's 
Economic Committee." 

26 July 1949, ECOSOC PR 524. 

"Mr. Boris T. Kolpakov (U. S. S. R.) felt that the programs should be based 
on the underdeveloped countries requests. He believed that the United Nations' 
task would not be fulfilled without fundamental changes in the economic struc- 
ture of nuder.leveloped countries. He thought the problem was raised by the 
fact that many small European countries were not members of the specialized 
<igencies. 

"He said the program should he based on 'com(pulsory consultations with pro- 
gressive organizations in the underdeveloped areas, especially ECE,^ should be 
brought clearly into the picture.' He also said that 'sending of obsolete equip- 
ment and obsolete technical knowledge to underdeveloped countries must be 
precluded.' He objected to sending missions from 'wealthy companies to extract 
as much capital as possible from the economically underdeveloped countries'." 

29 July 1949, ECOSOC PR 531. 

'fundamental changes^' in the direction of Communism. 

This is a reference to the fact that the "iron curtain" countries do not belong 
to FAO and some other Specialized Agencies. It ignores the fact that Eastern 
European countries were members of FAO and other Specialized Agencies imtil 
the Communists took over their governments, at which time they withdrew from 
member.ship. 

In addition, it ignores the fact that, even without the "iron and bamboo cur- 
tain" countries, FAO and other Specialized Agencies have more member coun- 
tries than does the U. N. FAO has 71 member countries, for example ; WHO 
has 81 — as compared to 60 member countries of U. N. (including U. S. S. R. and 
the satellites, which do not belong to FAO). In other words, 17 of FAO's mem- 
ber countries do not belong to U. N., which represents 24 percent of the FAO 
total membership. 

FAO's Work is Taken Over by U. N.'s ECE 

The following is from an FAO Staff Report dated November/December 1955 : 

ECONOMICS DIVISION 

The Geneva Office prepared for and serviced the ECE Working Party on Stand- 
ardization of Perishable Foodstuffs which held its sixth session from 24-27 
October in Geneva. Fourteen countries have now intimated their aa-reement 



* Economic Commission for Europe — a regional body of U. N.'s Economic and Social 
Council. 



2962 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

with the provisions of the Protocol on Standardization of Fruit and Vegetables. 
Several delegations expressed concern about the possible effects on international 
trade if certain countries applied provisions lower than, or differing in essen- 
tial detail fi'om those contained in the Protocol. Such a step might constitute 
discrimination against imports from countries which were applying the Pro- 
tocol, and might frustrate the whole work of standardization. In this connec- 
tion the Working Party noted with satisfaction that the representative of 
Western Germany intended to draw their authorities' attention to the views 
and fears expressed, and hoped that the West German regulations would be 
reconciled to the fullest possible extent with the international provisions. 

The Working Party approved new draft recommendations for cauliflowers 
and carrots. Some amendments were made to the existing provisions for pota- 
toes, apples, and pears and lettuces and endives. It was also agreed that for a 
transitional period it would be permissible to export apples which, while satis- 
fying the minimum requirements of the Protocol, did not fulfill the require- 
ments of Class II of the European standards for this fruit. These apples, 
however, should be labelled "substandard". 

The reiwrt of the session has been circulated (AGRIAVP.1/60). 

The Team of Exi)erts on Standardization of Eggs and Egg Products met on 
28 October. Draft proposals for egg products were considered and a revised 
text will be prepared. 

The Geneva Office (of FAO) also prepared for and provided the secx'etariat 
for the Fifth Session of the ad hoc Sub-Group on Agriculture of the Expert 
Group on Economic Development of Southern Europe (28 November-23 De- 
cember), the ad hoc Working Party on the Selection of Technical and Economic 
Problems (3-6 December) and the 6th Session of the ECE Committee on Agri- 
cultural Problems (6-10 December), all held under ECE auspices in Geneva. 

The Sub-Group on Agriculture — of the Mediterranean Experts Committee — - 
as the main item of the agenda discussed the Combined Report on the Agri- 
cultural Development Programs of Greece, Italy, Turkey, and Yugoslavia, 
which had been prepared by the Secretariat. This report was brought up to 
date and revised by the experts. A chapter on the land melioration programs 
and a list of projects for immediate action were drawn iip in the course of the 
meeting. 

Several proposals for technical assistance were taken into consideration and 
information was exchanged on the progress of specific projects of collaboration 
between two countries in the field of land melioration. 

The Sub-Group also made final recommendation to the main group concern- 
ing other items of importance to agricultural development, pasture and land 
improvement, seed improvement, veterinary and phytosanitary control, market- 
ing of agricultural products, etc. 

The Working Party on the Selection of Technical and Economic Problems 
selected from a list of projects proposed two for study: (1) exchange of ex- 
perience on new methods of planting vineyards and (2) exchange of informa- 
tion on new techniques for the conservation and improvement of soil fertility — 
and invited the governments of France and the U. S. S. R. to appoint the 
respective rapporteurs. It also made proposals for an exchange of agricultural 
films. 

The 6th Session of the Committee on Agricultural Problems was attended 
by representatives from 21 countries. The Committee heard statements by 
delegates on recent developments in their countries and reviewed the market 
situation of a number of agricultural products. 

The Committee noted with satisfaction the work being done to establish 
standards conditions of sales for cereals and citrus fruit and agreed that this 
work should be extended to deal with potatoes. 

It also reviewed the progress achieved by the Working Party on Standardiza- 
tion of Perishable Foodstuffs and by the Working Party on Mechanization of 
Agriculture. 

After the completion of the first stage of the study of relatively long-term 
production, consumption and trading trends, the Committee decided to request 
each country to draw up for a number of products its objectives as regards pro- 
ducMon and consumption to outline the methods which it proposes to apply 
for those purposes and to give statistical estimates of the volume of production 
and trade in 1960. 

The 7th Session will be held in principle in Geneva from 26 to 30 June 1956. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2963 

[Newsweek, March 14, 1955] 

U. N. AND THE U. S. Oil Industry 

By Raymond Moley 

The proposal of a commission of the United Nations for fixing the prices of 
oil produced in the Middle East is now under discussion in Geneva and is attract- 
ing wide interest in the European press. It may well provide a valuable lesson 
in international economics and politics for American oil companies and, in fact, 
for all of us. 

This oil issue has been crystallized in a report of a commission operating 
under the vague auspices of the United Nations Economic and Social Council 
(ECOSOC). It is the Economic Commission for Europe (ECE). There is alao 
a commission for Latin America (ECLA) and another for Asia and the Far East 
(ECAFE). Our representatives on these are very loosely responsible to our 
representative on the ECOSOC, Preston Hotchkiss, an Eisenhower appointee. 

This ECE report has been top secret for a long time over here but it has been 
plentifully leaked to the European press. It is hailed there as a body blow to 
the "monopolistic" practices of the American oil companies. A copy was ob- 
tained by the Wall Street Journal 2 weeks ago in Geneva and another was used 
to prepare this article. It bears the title "The Price of Oil in Western Europe." 
It says that the oil companies are getting oil in the Middle East at a very low 
price and are selling it at an excessively high price. It is suggested that there 
should be price fixing by international governmental machinery. This control 
is veiled by the innocent word "stability." Pains were taken to include in the 
report details of actions by the United States Government against the American 
oil companies involved. There is also an attack upon the companies in a 1952 
report of the Federal Trade Commission. 

The ECE report is aimed at 5 American and 3 European companies. They 
are Standard of New Jersey, Standard of California, Socony-Vacuum, Texas, 
and Gulf. Also Royal Dutch-Shell, the British Petroleum, and Compagnie 
Fran^aise. 

It is alleged that most of these companies tend to peg their European prices 
to the prices in the Western Hemisphere. 

The allegations of fact in this ECE report are violently denied by the Ameri- 
can companies. One of them says that the report overstates the net received 
by the various companies from Middle Eastern crude by 100 percent. 

These regional commissions — the ECE, ECLA, and ECAFE — go it pretty much 
as they choose. The ECAFE, for example, organized studies of the marketing 
of hides in Pakistan, the relative advantages of electric or hydraulic transmis- 
sion in Diesel locomotives, and the planning of waiting rooms at Indian railway 
stations. 

The oil proposal is not on a par with these trivia. It would provide an oppor- 
tunity for the Soviet not only to use an international commission to smear Ameri- 
can companies but to get its paw into the Middle Eastern oil situation. For, 
since the Soviet is on the ECE, it v.ould in fact be playing an important part in 
regulating the industry there and in fixing the prices of American oil companies. 

The United States is represented, too, but would be hopelessly outnumbered 
by Communist and socialist countries. 

This oil proposal is only the latest of many plans which have been made 
through the U. N. to fuse our economy with those of other nations. And in 
every case our tradition of freedom was imperiled by the presence among the 
collaborators of a heavy majority of nations in which communism or socialism 
is firmly established, or in which economic liberty has never existed or has 
become only a faded memory, or in which cartels and other restrictions on enter- 
prise have been traditional. Moreover, the Foreign Service officers and profes- 
iiors xcho have represented us on the many groups for the most part have believed 
that Qur freedom and independence must be yielded for international friendship. 

Most of this goes back to the commitment of the United States in article 55 
of the U. N. Charter adopted in 1945 which somewhat vaguely pledged us to a 
large number of international experiments in social and economic affairs. To 
implement this, the ECOSOC busied itself early in 1946. It had as a guide a 
document of our State Department entitled "Proposals for Expansion of World 
Trade and Employment." There was created a "preparatory" committee to 
make plans. Then there ensued those 4 years of naivete when compromise with 
Marxism seemed not only inevitable but desirable. 



2964 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

The Havana Charter of 1948 would have comiuittecl us to international price 
fixing of basic commodities, tariffs, and trade controls, measures for full employ- 
ment and, strangely enough, trust busting. President Truman sent the Havana 
Charter to Congress which refused to do anything more than to hold some hear- 
ings. But in 1949 we entered the International Wheat Agreement and through 
the State Department actively participated in many international economic 
committees and commissions. Prime Minister Attlee came here in December 
1950 to plead for international control and allocation of raw materials so that 
his country could get the things it needed "at the right price." Our State De- 
partment complied the next month and created what was known as the Inter- 
national Materials Conference. This had no legal standing but set out to allo- 
cate strategic materials and tix prices. This brought forth plans for agreements 
covering cotton, wool, copper, lead, zinc, sulfur, and other materials. 

In 1952 the Paley Commission (President's Materials Policy Commission) 
made the statement that, regardless of the failure of Congress to act, the United 
States was bound under a resolution of the ECOSOC to "recognize chapter VI 
[of the Havana Charter] as a general guide." Despite violent protests in Con- 
gress, the collaboratiim went on in one form or another. In 1053 we entered 
the International Sugar Agreement and extended the International Wheat Agree- 
ment for 3 years. 

Thus encouraged, the State Department proposed a tin agreement last year. 
It was given up by the administration after a hard fight between the State De- 
partment on one side and the Intericu- and Commerce Departments on the other. 
Meanwliile, the Randall Commission roundly condemned participation by the 
United States in international commodity agreements and Preston Hotchkiss of 
ECOSOC has vigorously opposed them. The ECE seems to assume that these 
objections can be avoided. 

it is significant that the current oil report is the product of the sec-etariat 
of the ECE at the head of which is GunjiaaiMyrda]^ a Swedish Socialist. He first 
appears in American annals as a beneficiary ot a .Rocljefell^r fellowship. Next 
he was employed by the Carnegie Cori)o ration to make a105O,OOO survey of the 
Negro problem in our South. This report in 1944 h.ad some strong things to say 
about the United States. Our Constitution was "impractical and unsuited to 
modern conditions" and its adoption was "nearlif a plot against the common 
people." We had "a low degree of respect for law and order'" although we "de- 
sire to regulate human behavior tyrannically." Our legal culture moreover, was 
"anarcliistic." 

Myrdal in 1946 told a Wall Street Journal reporter that in behalf of Sweden 
he had made a big deal with Soviet Russia because he believed that tlie United 
States was going into a depression. In 1949, as executive secretary of the ECE, 
he received a grant from the Rockefeller Foundation for scholarships for Euro- 
pean students. Last year Columbia University selected Myrdal as one of those 
to be highly honored at its bicentennial. He was given a degree of doctor of 
humane letters as one who had made "the world his classroom." 

In any event, these many benefits and honors for Myrdal, coupled with tlie 
present attack upon the American oil companies, can prove to Americans not 
only tliat they are a very generous people but that when oil money is given for 
cultural purposes it has no strings. This at least can give our oil companies 
some melancholy comfort. 



Pre-TAB/5 

28 December 1949 



Memorandum 



To: . 

From : M. Perez-Guerrero, Advisor on Coordination, 

Executive Office of the Secretary-General. 
Subject : Draft record of pi'oceedings of meetings, 
Lake Success, December 13-14 1949. 

Attached is a draft record of proceedings, with aimexes, of the meetings held 
on 13 and 14 December 1949, to discuss technical assistance problems. 

It was agi'eed during the meeting that rule 14 of the Draft Rules of Pro- 
cedure (see Annex II) should apply. 

Special attention is drnwn to paragraphs 3 and 4 of section I and paragraph 2 
of section II of the Draft Record (pages 3 and 4) which call for action. 

This memorandum sent to : 

United NaiioHs t^crretariat: Mr. Owen, Mr. Lnugier, Mr. Price, Mr. Martin 
Hill, Mr. Goldet. Dr. Bunche, Mffi^^^iXilii ^f- Weintraul), Mr. Schacter, Miss 
Henderson, and Mr. Coidan. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2965 

Specialized agencies : ILO : Mr. Jenks, Mr. Riches, Dr. Metall ; FAO : Sir 
H. Broadley, Mr. McDougall ; UNESCO: Mr. Laves, Mr. Berkeley, Mr. Arnaldo; 
ICAO: Mr. Marlin; WHO: Dr. Calderoiie; FUND: Mr. Williams; Bauk : Mr. 
Lopez-Herrarte ; IRO : Miss Biehle. 

Pre-TAB/5 

27 December 1949. 

Interagency Meetings on Technical Assistance 

Lake Success, 13-14 December 1949 

DRAFT record OF PROCEEDINGS 

The meetings icere held under the chairmanship of Mr. A. D. K. Owen, Assist- 
ant Secretary-General in charge of Economic Affairs, and with Mr. M. Perez- 
Guerrero, Advisor on Coordination of the Executive Office of the Secretary-Gen- 
eral, acting as Secretary. 

The following persons were in attendance : 

First meeting: 1?, December 1949 ; 10 : 30 a. m. to 1 : 00 p. m. : 

ILO : Dr. R. A. Metall ; Mr. A. Evans 

FAO : Sir Herbert Broadley ; Mr. F. L. McDougall 

UNESCO : Mr. W. H. C. Laves ; Mr. C. Berkeley 

BANK : Mr. E. Lopez-Herrarte 

FUND : Mr. G. Williams 

WHO : Dr. W. P. Forrest 

IRO: Miss M. Biehle 
United Nations Secretariat : 

Mr. H. Laugier, ASG in charge of Social Affairs 

Mr. A. H. Feller, General Counsel, Legal Department 

Mr. D. Weintraiib, Director, Division of Economic Stability and Develop- 
ment 
Second meeting: 13 December 1949 ; 3 : 00 p. m. to 5 : 40 p. m. 

ILO : Dr. R. A. Metall ; Mr. A. Evans 

FAO : Sir Herbert Broadley ; Mr. F. L. McDougall ; Mr. K. Olsen 

UNESCO : iSIr. AV. H. C. Laves ; Mr. C. Berkeley 

BANK : Mr. E. Lopez-Herrarte 

FUND : Mr. G. Williams 

WHO : Mr. W. P. Forrest 

IRO: Mi.ss M. Biehle 
United Nations Secretariat: 

Mr. D. Weintraub, Director, Division of Economic Stability and Develop- 
ment 

Miss J. Henderson, Department of Administrative and Financial Services. 
TJiird Meeting: 14 December 1949 ; 10 : 30 a. m. to 1 : 30 p. m. 

ILO : Mr. E. J. Riches ; Dr. R. A. Metall 

FAO : Sir Herbert Broadley ; Mr. F. L. McDougall ; Mr. K. Olsen 

UNESCO : Mr. W. H. C. Laves ; Mr. C. Berkeley 

ICAO : Mr. E. R. Marlin 

BANK : Mr. E. Lopez-Herrarte 

FUND : Mr. G. Williams 

WHO : Dr. W. P. Forrest 

IRO : Miss M. Biehle 

United Nations Secretariat: 

Mr. Martin Hill, Director of Coordination for Specialized Agencies and Eco- 
nomic and Social Matters; Mrs.^A^. Myrdal, Principal Director, Department of 
Social Affairs ; Mr. D. Weintraul), Director, Division of Economic Stability and 
Development ; Miss J. Henderson, Department of Administrative and Financial 
Services. 

The following agenda was approved : 

1. Preparatory work for the Technical Assistance Conference, and arrange- 
ments regarding contributions to the Special Account. 

2. Procedure for interchange of information on requests from governments for 
technical assistance prior to the establishment of the Special Account. 

3. Arrangements for the establishment of TAB. 

4. Other business. 



2966 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

DISCUSSION AND DECISIONS 

I. Preparations for the Teclinical Assistance Conference and arrangements re- 
garding contributions to the Special Account {Pre-TAB/2) 

1. In the light of a discussion on the date of the Conference, the Chairman 
stated that the Secretary-General would bear in mind the preference of many 
specialized agencies to have the Conference held in mid-March but overriding 
considerations such as the timing of preliminary governmental action might make 
it necessary to call it for mid- April. 

2. Invitations to Governments to attend the Conference will be dispatched by 
the Secretary-General in January 1950, together with an aide-memoire setting 
out the history of the expanded programme and indicating the type of action 
required by the Conference. Thorough informal consultations with governments 
were necessary prior to the Conference if its duration were not to exceed 3 or 4 
days, as is desirable. In dealing with the business of the Conference as laid 
down in ECOSOC Resolution 222 (IX), delegates, especially those from non- 
member countries would have an opportunity to make policy statements on the 
expanded programme. 

3. The meeting had before it a "Draft Agreement Concerning the Financing 
of the Technical Assistance Programme of the United Nations", ichich was 
one possible form in which action might be taken by the Conference. It was 
pointed out that such an "Agreement" though having the psychological effect 
of applying moral pressure on governments, would require elaborate and often 
protracted subsequent procedures, a factor which may reflect upon the willing- 
ness of some governments to sign it, even "ad referendum". Alternatively, 
the Conference might adopt a number of resolutions and these resolutions 
could be embodied in the "Final Act" of the Conference which would be signed 
but would not involve the procedures referred to above. A schedule of the 
declared intended contributions would lie attached or incorporated in this 
Final Act in compliance with the stipulation of the Economic and Social Council 
resolution that the Conference should "ascertain the total amount of contribu- 
tions." 

An alternative draft by the Legal Division of the United Nations would be 
fortvarded shortly to the specialized agencies. For their part, the agencies 
would send to the Secretary-General their views regarding the most effective 
form in which the Conference might take action by 15 January 1950. 

4. During a discussion on the form of contributions, it was suggested that 
governments should be encouraged to state the amounts of their contributions 
to the Special Account in monetary figures, with the understanding that sub- 
sequent negotiations would determine the proportion of the figure stated to 
be paid in services or materials as well as the exact nature of these. The 
importance of maintaining a certain degree of flexibility in these procedures 
was recognized, in order to meet the varying circumstances of individual 
contributing countries. 

It was suggested that special Contributions Officers could assist the Secre- 
tary-General in discussing problems relating to contributions with the countries 
concerned. 

The Chairman stated that the Secretary-General was considering using the 
services of a number of perhons on an ad hoc basis for this purpose and that 
the specialized agencies would be called upon to help in carrying out these 
negotiations, as appropriate. 

5. The specialized agencies will submit to the Secretariat if possible by 15 
January 1950 briefs containing illustrative information on specific services, 
and materials which would be of use to them and whenever practicable an indi- 
cation of the governments best equipped to provide these. These briefs may 
also indicate such services and materials as would be of little or no use to 
the agency concerned. This information would be considered confidential, and 
would serve only as background information for the Secretary-General in his 
negotiations with governments. 

6. A Working Party on the Collection and Disbursement of Funds for the 
Special Account will be convened at the beginning of February 1950. The 
Working Tarty will consider papers prepared bv the United Mations en the 
items listed in Annex I. 

The representative of the FUND, in the name of its Managing Director 
extended an invitation to representatives of the United Nations and specialized 
agencies to discuss at the Fund headquarters with its financial evperts such 
problems as (a) what banks to use in each countrv, (b) when and how to 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2967 

transfer assets from one form to another, (c) what freedom of use of accounts 
to insist upon, (d) what limitations on convertibility and transferability exist 
and how to avoid these, and (e) how to allow missions to draw on accounts. 

Similarly, the representative of the BANK extended an invitation to the 
United Nations and the specialized agencies concerned to call upon his Organ- 
ization for advice on such matters as how best to utilize the local currency of 
particular countries with which the BANK has already worked out arrange- 
ments. 

7. The Secretariat of the United Nations will prepare a paper for submission 
to TAB on the desirability of common standards for : salaries and fees for 
experts, subsistence allowances, other conditions of employment of experts, 
and stipends for fellows. 

//. Procedure for Interchange of Information on requests from governments 
for technical assistance prior to the estahlishment of the Special Account 
{Pre-TAB/3) 

1. A full and effective compliance with the Agreement reached by the Admin- 
istrative Committee on Coordination at its eighth session regarding exchange 
of infoi-mation on requests for technical assistance was recognized to be of 
great importance pending the establishment by TAB of permanent reiwrting 
procedures. In accordance with that agreement the United Nations Secretariat 
has prepared and distributed to the specialized agencies information regarding 
technical assistance activities of the United Nations in the economic develop- 
ment and social welfare fields. 

2. It was agreed that the United Nations and the specialized agencies con- 
cerned would submit to the Executive Secretary of TAB : 

(a) a summary report on technical assistance activities in 1949; 

(b) a progress report on assistance currently being given; and 

(e) information on requests at present under consideration together with 
information concerning steps taken for their implementation. 
Thereafter the earliest possible communication of information on technical 
assistance activities whatever its form would be of considerable help in carry- 
ing out current activities as well as in the preparation for the expanded 
program. 

3. The representative of the FUND informed the Committee that despite the 
fact that his organization was not to be a titular member of TAB, it would co- 
operate with it to the greatest extent possible and furnish periodically a list of 
all FUND missions, giving such details as length, purpose, place and accom- 
plishments of the mission. It would however not always be possible for the 
FUND to furnish advance information on consultations and missions, but the 
FUND shall consider such information as falling into four categories: (a) avail- 
able to the public; (b) available only to TAB members; (c) available only to 
TAB secretariat; and (d) available only to the FUND. 

4. The representative of the BANK stated that his organization would also 
fully cooperate with TAB ; within the next two weeks it would submit a paper 
containing information similar to that which the Department of Economic 
Affairs had circulated to the specialized agencies. The position of the BANK 
paralleled that of the FUND in that advance information on missions would 
sometimes have to be withheld. 

5. The representative of the United Nations invited each specialized agency 
to inform the United Nations of any request for technical assistance in its own 
field of activity which it xcas unable to meet because of budgetary limitations. 
The Secretary-General would investigate the possibility of financing such requests 
with United Nations funds. 

6. As regards approaches to governments it was pointed out that implementa- 
tion of the technical assistance programmes often required preliminary consulta- 
tions with governments on their needs in particular fields which had the effect 
of stimulating new technical assistance projects. This was often done through 
regional or branch representatives of the organization concerned. The initia- 
tives of these representatives should however be kept under close control in 
order to avoid a multiplicity of uncoordinated requests which, in addition, 
might be difl3cult to implement on budgetary grounds or for other reasons. 

There was general agreement that if a country requested assistance falling 
within the field of more than one organization an integrated programme of 
technical assistance in that country would be a desirable objective. Each case 
however would have to be considered individually. 

72723— 5T—pt. 42 7 



2968 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

It was suggested that in order to achieve a unified United Nations— specialized 
agencies approach to countries it might he desirable to have one person stationed 
in certain recipient countries to serve as coordinator for the international or- 
ganizations concerned and as principal channel tvith that countn/s government. 
Other means for achieving this end should be explored at an early meeting of 
TAB. 
III. Arrangements for the estadlishment of TAB (Pre-TAB/^) 

1. Since at its last meeting the Administrative Committee on Coordination 
had taken the necessary decision regarding the setting up of TAB, no further 
action by this body was required for the establisnment of the Board. The 
Secretary General would convene TAB to meet during the first week of February 
1950. 

2. The representatives of the BANK, FUND, and IRQ indicated that although 
they could not be considered as titular members of TAB, they should like to be 
considered as cooperating organizations who would attend all meetings and par- 
ticipate fully in TAB discussions. They would also, as indicated previously, 
participate in the fullest exchange of information. The views expressed by the 
observers of the cooperating organizations could, when desirable, be included 
in TAB reports to TAC. 

3. The draft rules of procedure for TAB were considered and approved for 
submission to the first meeting of TAB (see revised draft attached as Annex II). 

It was agreed that the rules of procedure of TAB should receive only restricted 
distribution. 

4. In connection with the consideration of these draft rules of procedure, the 
principle that the Executive Secretary of TAB in fulfilling his responsibilities 
and duties would be independent of the administration of the individual technical 
assistance program of the organizations concerned, was considered of great 
importance. 

The representative of the FUND emphasized that the Executive Secretary 
should familiarize himself with the activities of the various specialized agencies 
and on behalf of his Managing Director he extended an invitation to the Execu- 
tive Secretary to visit the offices of the FUND for the purpose of having discus- 
sions with the staff of the FUND, attending meetings of the Board of Executive 
Directors, etc. 

The representative of the other agencies agreed that similar visits by the 
Executive Secretary should be made to the offices of their organizations. 

5. The various participating organizations would lend every assistance to the 
Executive Secretary of TAB in the selection of his i>ermanent and temporary 
stafe. 

6. Several suggestions were made for questions to be included in the agenda 
for the first meeting of TAB. These suggestions, as well as others deriving from 
the discussions and decisions recorded above, have been included in the attached 
list of points which may serve as a tentative agenda for the first meeting of 
TAB in February 1950. 

Annex I. Problems Connected With Coixection and Disbuksement of Funds 
OF the Special Account to be Referred to a Working Party of TAB 

1. contributions 

(a) Definition of financial year. 

(b) Acceptance of installment payments. 

(c) Carryover of contributions. 

(d) Designation of banks. 

(e) Technical aspects of convertibility. 

i. Rates of exchange for convertible currencies, 
ii. Methods for achieving maximum convertibility. 

(g) Investment of funds. 

(g) Accoimting for contributions. 

i. Currency of fund accounts, 
ii. Form of accounts, 
iii. Accounting for services, 
iv. Accounting for goods. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2969 
2. TECHNICAL ASPECTS OF ALLOCATION PBOCEDUEE 

(a) Allocation of hard currencies. 

(b) Allocation of soft currencies. 

(c) Allocation of goods and services. 

(d) Procedural aspects of "automatic allocation. , , ^ ,. .^„x.^„ 

(e) Redistribution of funds not allocated or expended by participating 

agencies. 

3. EXPENDITURE ACCOUNTING 



(a) Accounts for the central fund. 
Accounts of participj 
i. Necessity for comr 
11. Form of accounts 



(b) Accounts of participating agencies. 

i. Necessity for common definition of obligations and commitments. 



4. AUDIT 



(a) Audit of the central fund. 

(b) Audit of accounts of participating agencies. 

(c) Coordination machinery. 



15 December 1949. 



Annex II. Proposed Draft Rules of Procedure for Submission to TAB (As 
Agreed Upon At pbe-TAB Meeting, 13-14 December 1949) 

1. The Technical Assistance Board consists of the executive heads, or their 
representatives, of the United Nations and of the specialized agencies that have 
taken the steps indicated iu paragraph 10 of resolution 222 (IX) A of the 
Economic and Social Council and accepted the observations, guiding principles, 
and arrangements for the administration of the expanded program of technical 
assistance for economic development set out in that resolution. 

2. Other specialized agencies may be invited to send observers who would be 
entitled to participate in the discussions. 

3. The Secretary General, or, in his absence, the Assistant Secretary General 
for Economic Affairs, as his representative, shall serve as Chairman of the 
Board. (In the absence of both, a representative of a specialized agency of 
a rank not lower than that of Deputy Director General may be invited to take 
the chair.) The Chairman or acting Chairman shall not represent his organi- 
zation on the Board. 

4. The Executive Secretary shall have no responsibilities or duties other than 
those deriving from resolution 222 (IX) A of the Economic and Social Council 
or from decisions of the TAB. In the discharge of these responsibilities and 
duties he shall be subject only to the authority of the TAB. 

5. The Executive Secretary shall be assisted by a small staff which may in- 
clude members of the secretariats of participating organizations on permanent 
or temporary assignment. The members of this staff shall be exclusively re- 
sponsible to the Executive Secretary and shall act only on the instructions and 
directives which he may give them. 

6. The TAB may set up standing or ad hoe subcommittees. 

7. Meetings of the TAB shall normally be held at the Headquarters of the 
United Nations, but may be held elsewhere. 

8. The Executive Secretary shall draw up, in consultation with the Chair- 
man, the provisional agenda of each meeting of the Board. 

9. The Board shall normally fix the date of its next meeting. The Executive 
Secretary may, however, after consultation with the Chairman and members 
of the Board, and taking into account the character and urgency of the business 
to be dealt with, arrange a meeting at some other time. 

10. The Board shall not be formally called to order by the Chairman unless 
at least four participating organizations are represented. 

11. The representative of any participating organization may be accompanied 
by such assistants as he may require. 

12. The representative of any participating organization may request the 
Chairman to accord the right to speak to any other member of his organization 

13. The Executive Secretary, after consultation with the Chairman, may invite 



2970 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

any person or representative of any agency to participate in the discussion of a 
particular item. 

14. Tlie records of the meetings of the Board shall be prepared by the Executive 
Secretary. They shall consist of a record of attendance, hour of convening and 
adjournment, the identity of presiding officer, the agenda of the meeting, a state- 
ment describing the items discussed, and the record of its decisions. These 
records shall be distributed to members as soon as possible and shall be consid- 
ered approved if no modification is proposed within two weeks of the date of 
their dispatch, or amended at the next meeting. 

15. All documentation and records of the TAB shall be maintained by the 
Executive Secretary, who shall provide appropriate administrative safeguards 
for confidential material. 

16. The Executive Secretary shall prepare draft reports to the TAG on the 
work of TAB for consideration and approval by TAB before transmission, 

17. The phrase "procedural matters" in paragraph 3 (h) of resolution 222 
(IX) A shall apply to all relevant matters covered by these rules of procedure, 

■except paragraph 18. 

18. These rules of procedure may be amended by general agreement at any 
meeting of the TAB provided notice of at least four weeks has been given of the 
proposed amendment. 

Annex III. Points foe Inclusion in Agenda for First Meeting of TAB 

1. Final Act of the Technical Assistance Conference. 

2. Draft rules of procedure for TAB. 

3. Definition of "underdeveloped country" with a view to determining criteria 
for priorities. 

4. Definition of "important" requests. 

5. Minimum obligations to be imposed on recipient countries when a pro- 
gramme of technical assistance is developed for that country. 

6. Procedures for collecting information about technical assistance rendered 
bilaterally. 

7. Reporting procedures and exchange of information between organizations 
concerned. 

8. Relations with regional organizations. 

9. Report of the Working Party on Collection and Disbursement of Funds 
(and possibly : Draft financial regulations). 

10. Consideration of Paper prepared by the United Nations secretariat on 
common standards of salaries, stipends and other expenses connected with the 
sending of experts. 

11. Consideration of Public Information Programme. 

[Excerpt from the Information Bulletin, United States Committee for the United Nations, 

March 1956] 

The U. N. Lobby Grows in Size and Strength 

The Nongovernmental Organizations and the U. N. 

******* 

consultative status with economic and social council 

Under Article 71, the Economic and Social Council has accorded consultative 
status to some 215 national and international 'Nongovernmental Organizations. 
These include most of the important labor, veterans, social, welfare, teachers, 
farm, professional, youth, and women's organizations. The list also includes 
many of the religious groups and organizations working for peace, international 
cooperation, and the United Nations. Some 200 of these organizations, sixty of 
which are international, have "observers" at United Nations Headquarters. 

Ten of these are deemed to "have a basic interest in most of the activities of 
the Council and are closely linked with the economic or social life of the areas 
which they represent." These have a consultative status which is known as 
"Category A." They may bring items to the attention of the Council for in- 
clusion on its provisional agenda and may speak before the Council. During 
its first fourteen sessions, the Council took up thirteen agenda items submitted 
by Nongovernmental Organizations. These include such diverse questions as 
forced labor, trade union rights, and the procedure for a study of world oil 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2971 

resources. Category A organizations may speak to the Economic and Social 
Council itself. 

OTHER CATEGORIES 

More than 100 other NGO's "which have a special competence in and are 
concerned specifically with only a few fields of activity covered by the Council" 
also have consultative status, which is known as "Category B." 

Another 160 or more NGO's which "have a significant contribution to make 
to the work of the Council" are on a register maintained by the Secretary-General 
and may be called in for consultation from time to time. Written statements 
may be submitted by organizations in both A and B categories for circulation 
to Members of the United Nations. Oral statements may also be made before 
the commissions of the Council or its Committee on Nongovernmental Organiza- 
tions. 

******* 

COLLABORATION WITH PUBLIC INFORMATION DEPARTMENT 

In addition to the Nongovernmental Organizations, which have some kind of 
consultative status with the U. N., there are thousands of others all over the 
world which work in close association with United Nations and help spread 
knowledge of its aims and activities. Organizing observances of United Nations 
Day in pursuance of the unanimous resolution of the General Assembly in 
December 1947, is regarded by the United Nations as one of the most important 
means of spreading this knowledge. 

Through their extensive memberships, the NGO's actually provide a two-way 
channel for exchanging information by carrying the views and ideas of those 
groups to the U. N., and by carrying the story of the United Nations and its 
activities to the group membership. 

THE U. N. HELPS THE NGO'S 

The Section for Nongovernmental Organizations of the Department of Public 
Information is responsible for working actively with such organizations, both 
national and international, to promote understanding of the U. N., and to provide 
material needed for that purpose. The U. S. Committee, for example, is the offi- 
cial distributing agent for U. N. Day literature in the United States and is in 
constant liaison with the Department of Public Information. 

Specifically, the U. N. Department of Public Information cooperates with the 
U. 8. Committee by providing literature, information, technical advice and 
assistance on special projects, and through its Radio and Film divisions has 
collaborated in the preparation of the Radio and TV Kits which are distributed 
each year to all radio and TV stations throughout the country. 

More than four thousand national organaisations in seventy-eight countries 
are continually or occasionally in touch with, and are provided documentation 
by, the Department of Public Information, or by the nearest regional V. N, 
Information Center. There are 19 such centers in the world with one in the 
United States, located in Washington. In a growing number of Member coun- 
tries, national committees similar in framework to the U. S. Committee are 
being formed with the express purpose of facilitating the work of the U. N. and 
the specialized agencies by developing public understanding of the U. N., both 
among their members and the general public. These committes promote ob- 
servances of U. N. Day and aid U. N. Information Centers in the countries in 
which these are located. In other countries they coordinate the activities of 
Nongovernmental Organizations. 



2972 SCOPE OF SOVIET ACTrV'ITY IN THE UNITED STATES 

The U. N. Lobby Briefs the Washington, D. C, Lobby 

sunfed is in the news 

[The New York Times, November 6, 1955] 
U. N. Group Pushes Special Aid Fund 

LATIN AMERICANS AND ASIANS HOPE UNITED STATES WILL BACK PLAN ON ECONOMIC 

DEVELOPMENT 

(By Arthur J. Olsen) 

Special to The New York Times 

United Nations, N. Y., November 5. — Latin-American delegaions to the 
United Nations have drafted a resolution calling for further steps toward the 
creation of a special United Nations fund for economic development. The reso- 
lution will be submitted to the Economic and Financial Committee Monday. A 
number of Asian countries will be co-sponsors. 

The special fund would finance the construction of the basic facilities on which 
modern economies could be built in underdeveloped countries. It would dispense 
funds primarily on a grant-in-aid basis. As conceived at the present the fund 
would start out with an annual budget of about $250 million donated by member 
countries. 

The plan will die stillborn unless the United States and Britain overcome their 
present reluctance to back it. The two countries would have to provide about 
two-thirds of the cost of the program. 

Both countries have undertaken a qualified commitment to support the plan. 
When and if a controlled disarmament program is effected, they promise to de- 
vote some of the savings in armament expenditures to the special fund. 

ATTITUDE OF UNITED STATES AWAITED 

Representative Brooks Hayes, Democratic of Arkansas, United States delegate 
on the committee, is expected to disclose next week whether the United States 
is ready to depart from strict adherence to the special fund disannament rela- 
tionship established by President Eisenhower in his 1953 address to the General 
Assembly. Delegates of potential beneficiary nations are not optimistic. 

United States oflicials are wary of an "open end" financial commitment to an 
aid program that would extend over a number of years with annual expenditures 
rising indefinitely. The proposed initial United States contribution of about 
$100 million probably would be only a fraction of the amount requested by the 
fund in the fifth or tenth year of its operation. 

From the strategic aspect, British and United States authorities hope to gain 
some diplomatic leverage by linking the special fund with controlled disarma- 
ment. They hope the Soviet Union will agree to a realistic negotiation on dis- 
armament when it becomes obvious to world opinion that only Soviet intransi- 
gence blocks the aspirations of underprivileged peoples. 

The resolution to be submitted next week is designed to accelerate the momen- 
tum of planning for the special fund. It would establish a special committee 
to perfect already well-advanced plans. Presumably this would be the last 
preparatory step before drafting a statute for the new agency. 

PROJECTS ARE DESECRATED 

As presently conceived, the special fund's money would be spent on roads, 
powerplants, railways, schools and port facilities. 

The special fund would be linked closely with the International Bank for 
Reconstruction and Development. 

Approved projects would be financed with outright grants or loans that would 
bear a very low interest rate or none at all. Its field is to be development proj- 
ects that the World Bank is now unable to handle, usually because the benefl- 
ciai^y country is unable to insure service of the bank's medium-term, moderate- 
interest loans. 

The fund would rely almost entirely on the staffs of existing international 
development agencies to process applications and administer expenditures. 
Representatives of those agencies would be members of its directorate. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2973 

Member countries would be assigned contribution quotas on a proportional 
basis. Tbus the United States would contribute as much as one-half of the 
funds. 



Last Call 



HAVE YOU MADE YOUR RESERVATIONS? 



For the Point IV Information Committee luncheon meeting at the Burlington 
Hotel at 12 : 30 p. m., Thursday, November 10, 1955, to hear Mr. Phillipe De Seynes, 
United Nations Under Secretary General for Economic and Social Affairs, who 
will speak on "The Present Status of SUNFED" (The Special United Nations 
Fund for Economic Development ) . 

Please telephone reservations to Kay Hoffman, Executive 3-3524. 



Publicity on Big Scale 

Comment on the San Francisco Conference would be incomplete without 
mention of the publicity campaign which attended it. Attached to the interna- 
tion secretariat staff of Alger Hiss were 34 publicity oflBcers, most of whom were 
assigned to the Conference from the Department of State and other U. S. Govern- 
ment Departments. 

In addition, in an oflScial U. S. delegation of 192, there were 21 members 
engaged solely with the task of public relations. 

More than one hundred representatives of nongovernmental organizations were 
attached as consultants to the U. S. delegation, in the expectation that they would 
serve as channels of propaganda back to the membership of their respective 
groups. 

The Department of State organized discussions in all parts of the countiT 
prior to the Conference, sent out many speakers, and issued publicity materials 
in quantities unprecedented in the history of the U. S. Government. 

More than 2,500 press, radio, and newsreel representatives covered the Con- 
ference. 



Example of Slanted Material Provided as "Discussion" Guide at Point IV 
Information Committee Conference of Non -Govern mental Organizations 

National Workshop on World Economic and Social Development, 816 21st Street 

NW., Washington, D. C. 

Jan. 27-28, 1955. 

Ontlme for Discussion of Long-Range Program for Development 

We need a new enthusiasm — new hope — we have been going downhill, falling 
below our conception of the meaning and prospect of Point Four. 
A. Three basic assumptions — agreements as a point of reference. 

1. We must conceive of the U. S. role in the world as a creative force, 
force. 

a. This means stop being on the defensive — we must do so in order 
to get off the necessity of forever defending something after catastrophe 
has struck. Otherwise we will be forever caught defending Indochinas. 

2. We must stand for something, not just for anything — the long range 
program we develop will be determined in large measure by what we stand 
for and against — our goals and values. 

a. Our strength — and what we have to offer that is unique and com- 
pelling is not material grown and stability alone, but that, plus liberty 
and personal freedom. 

(1) Otherwise we will end up heading coalitions of governments 
in which we will be defending and associating with dictatorships 
of various kinds. This is the way to weakness and ruin. 

3. In the warless period we may have, hopefully may have forever, we 
must he about the business of helping others build the institutions which are 
needed to safeguard peace and strengthen the conditions making for peace — 
this is a goal of the development program. 



2974 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

B. There follows — what we do — how we best do that — in what time. 

Specific projects and problems are to be met in these terms. 

C. An interconnected program to achieve these long range goals. 

1. Economic stability and growth — a program big enough and done rapidly 
enough to create and increase the stake of the individual. 

2. Specific problems : 

a. Land reform, 

b. International Food and Raw Materials control, etc. 

c. International commodity agreements 

d. Economic union for democratic action by democratic countries 

e. Concepts of joint administration of economic efforts 

f. Energy — atomic and hydro, to underpin economic development 

g. Trade Union 

3. Personal freedom and liberty 

a. Our aid should get at the hinderances, promote people-to-people 
and government contractual arrangements that can make headway on 

these goals 

b. Rethinking and planning for wide participation of nongovern- 
mental organizations, either with or without government assistance and 
control : 

(1) Private citizens 

(2) Organized lay groups 

(3) Labor Unions 

(4) Industrial and business groups 

(5) Church and other groups 

4. Peace — our long range program will aid and promote peace, but specifi- 
cally how can it be geared so as to promote — 

a. Disarmament 

b. Strengthening of the U. N. as a better way to achieve lasting cooi)er- 
ation between nations and peoples 

c. End colonialism and its institutions of repression 

d. The balance of world population growth and its economic resources 

e. The exchange of cultures and fusion of the best in cultures 

D. But no long range programming can be entertained with any assurance 
unless the threatening influences of today are lifted, and the trend reversed : 

1. Proposal to segment aid and its administration 

2. Militarizing aid, and its psychological effects 

3. Annual appropriations and limited life of the programs 

4. Submergence (by Secretary Humphrey) of our foreign-aid program to 
to his conception of domestic economic and government practices and 
purposes 

On these we must act now. 



Russian Rubles 

example of interference with fao program by u. n. expanded technical 

assistance fund administration 

The U. S. S. R. and its satellite countries are not members of FAO, make no 
financial contribution to FAO, have no authority directly or indirectly to super- 
vise its program. They have, however, frequently attacked FAO and taken the 
initiative in U. N. to undermine its authority to operate in fields for which its con- 
stitution gives it responsibility. (See attached resolution on land reforms, of- 
fered in U. N. by Poland and supported by U. S. S. R. — with particular attention 
to U. S. S. R. objections to United States and United Kingdom claims of FAO in- 
terest in the resolution.) 

With establishment of the central fund under U. N. control to finance "expan- 
sion" of FAO's already-existing technical-assistance program, the U. S. S. R. and 
its satellites acquired supervisory and policymaking functions relative to that 
part of FAO's work financed from the U. N. Expanded Technical Assistance Fund. 
This is so, because U. S. S. R. and its satellites are members of U. N. and have 
exercised considerable aggressiveness in formulating policies and supervision 
of the expanded technical assistance program in the U. N.'s Economic and Social 
Council and in TAC ( the committee of ECOSOC governments which was created 
to provide government supervision to administration of the U. N. central fund 
for technical assistance). Two U. N. documents are attached to illustrate 
this point, marked "B" and "C." 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2975 

With contribution of 4 million rubles (equivalent to about $1 million) per year 
by U. S. S. R. to the U. N. Expanded Technical Assistance Fund, and contribution 
by Poland of 300,000 slotys (equivalent to about $75,000), a major administra- 
tive headache was presented to FAO. By mid-1955 FAO had still made no use 
of the Russian and Polish currencies, and the secretariat report to the Council 
of FAO on March 7, 1955, contains the following cryptic comment : 

"This (carryover of funds in the U. N.-ETAP from previous years) contained 
a substantial amount of U. S. S. R. rubles and other currencies for which use 
has not been found, as well as 'services' offered by certain countries." 

On June 6, 1955, the secretariat report to the Council of FAO said : 

"The increased (expanded technical assistance) program for 1955 available to 
FAO enables additional quantities of equipment and supplies to be made avail- 
able to requesting countries, in particular from the U. S. S. R. TAB (Technical 
Assistance Board — the committee of secretariat members which directs the U. N. 
expanded technical assistance program) has allocated to FAO the equivalent of 
$471,240 in Russian rubles for the purchase of equipment in the U. S. S. R. At 
the present time FAO has not found any other use for Russian rubles than in 
the purchase of equipment. Even in this respect, no purchase has yet taken 
place, although negotiations are in progress for the utilization of the sum 
referred to above." 

Inquiry produced the information at the FAO Council meeting that between 
March and June of 1955, Mr. David Owen, Executive Chairman of the Technical 
Assistance Board (see attached paper marked "D" for information on powers 
of this officer over the U. N.-ETAP), had summoned the representatives of the 
several participating agencies to a meeting at U. N. headquarters, where he 
"allocated" specific amounts to each agency of the U. S. S. R. rubles and Polish 
zlotys. The action was tantamount to an order to the agencies to utilize the 
amounts allocated to them in their ETAP work. 

In an FAO staff progress report for October 1955, the following statement 
appears : 

"(Two officers) of the Forestry Division, is now visiting Poland and Czecho- 
slovakia for purchasing equipment relating to the ETAP program." 

Note. — Poland and Czechoslovakia were charter members of FAO, but at the 
time their governments were taken over by Communist regimes, both were 
withdrawn from membership. 

The purchasing expedition described in the report above was occasioned by 
allocation by the Technical Assistance Board (TAB) to FAO of a proportion 
of the contributions of Poland and Czechoslovakia to the U. N. central fund for 
the expanded technical assistance program. The contributions of the two coun- 
tries were in nonconvertible national currencies which must be spent in the two 
countries. 



National Workshop on World Social and Economic Development, 816 21st Street 
N.W., Washington, D. C, Hotel Woodner, January 27-28, 1955 

The Futtjee Role of the United States in United Nations Technical and 

Economic Assistance 

G. W. Shepherd, Jr., Ph. D., American Committee on Africa 

One of the primary questions that we must try to answer is what is the extent 
to which we should seek to make our United States foreign aid programs multilat- 
eral rather than bilateral? We face not only the task of convincing Congress 
and the country that increased technical and economic assistance programs are 
necesssary, but also the task of convincing people that United States programs 
should be directed increasingly through the United Nations and its associated 
agencies. 

The United States has been underwriting 60 percent of the present United Na- 
tions Technical Assistance Program ; but Congress grows more and more cool 
toward this project of continuing this support. In fact, Congress has not yet 
appropriated our contribution to the 1955 budget of the United Nations Technical 
Assistance Program, despite urgings from the Administration. Unquestionably, 
it is going to be a struggle to continue American support for this desirable pro- 
gram, and it will certainly be a double struggle to gain support for an expanded 
United Nations program, including such programs as the International Finance 
Corporation and the Special United Nations Fund for Economic Development 
(SUNFED). Although the Administration has endorsed the establishment of 
the IFC, Congress has yet to be convinced, and the difficulties involved in thia 
should not be underestimated. 



2976 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

FEAR OF NEW IMPERIALISM 

There are a great many reasons why our foreign aid programs should be grad- 
ually shifted to the United Nations. Probably the primary reason is the desire 
of the recipient nations themselves to receive the assistance through the United 
Nations rather than through bilateral negotiations with the United States. The 
largest grants for economic purposes are now going to so-called underdeveloped 
areas, and the amounts of assistance we are giving to European countries are 
rapidly diminishing. Because of the experience that erstwhile colonial countries 
in Asia and Africa have had with Western powers, they remain highly suspicious 
of the intentions of any Western power and are fearful of becoming involved in 
a new "imperialist" relationship. The United Nations framework offers to them 
certain assurances of an equitable relationship within any economic assistance 
program, by virtue of their participation in the various agencies of the United 
Nations. Small powers like Burma, for instance, feel that they have the support 
of other Asian and African nations in any negotiations and arrangements for 
assistance that take place within the framework of the United Nations, whereas 
they fear a bilateral arrangement with the United States. 

FEAR OF MILITARY INVOLVEMENT 

Many of the Asian-African countries are particularly fearful of being drawn 
into an alliance with the United States in the cold war struggle with the 
Communist powers, if they accept substantial economic aid. We have not 
helped to allay those suspicions but have intensified them by our tendency to 
give special considerations to those underdeveloped territories who show a 
willingness to cooperate in a military manner. Regardless of the view that 
we may hold of the desirability of such military programs, we can agree that 
it is a mistake to use economic assistance as bait to hungry peoples in order to 
align them more securely on our side in the cold war struggle. There are 
several Asiatic nations who have clearly defined their policy as one of non- 
commitment in the cold war, and we only alienate them by seeking to convert 
them as "rice Christians" to our faith. If we fully realize that poverty and 
ignorance are greater enemies than the Communists, we will not make our aid 
conditional on military commitments. But as long as we continue our main 
economic aid program to these areas on a bilateral basis we will always be 
tempted to attach strings to it, and there will be a suspicion on the part of 
the recipients that the strings exist even if they do not. 

COLONIAL POWER SUSPICIONS 

To date we have been able to give very little technical and economic assistance 
to the remaining colonial areas because of a similar reason. The Colonial 
Powers themselves are afraid that strings will be attached to United States 
aid, and a great many offers of assistance have been turned down largely for 
this reason. The Colonial Powers are fearful that the allegiance of the Colonial 
Peoples might be shifted from the mother power to the United States if our 
assistance were accepted. Therefore we find that a great deal more technical 
aid is already being given by the United Nations agencies to colonial territories 
than the United States has been able to give. If some of the superior resources 
of the United States program could be directed through the United Nations it 
would be possible to give a great deal more technical and economic help to the 
colonial peoples than is now being given, 

EFFICIENCY 

It is also true that over the long run it would be possible to build up a 
more efiicient and continuous program through United Nations agencies than it 
is possible for the United States to conduct. Our United States program is 
subject, to a considerable extent, to the changing internal political scene. There 
was a widespread change of leadership in oux Point IV program when the new 
administration came into power. This meant that the whole program inevitably 
suffered from uncertainty and lack of continuous leadership. If this is to 
happen every time we have a change of administration it can only harm the 
overall program. Moreover, Congress is constantly changing its mind about 
the general direction of our foreign aid programs, and the agencies that are 
needed to operate it. The future of the present Foreign Operations Agency is 
very much in doubt today. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2977 
GRADITAL TRANSFERENCE 

Of course the U. N. is not equipped today to take over the administration of 
all the foreign aid programs of the United States, and this writer is not sug- 
gesting that it should do so immediately, nor is the suggestion being made that 
the United Nations ought to take over the entire United States foreign economic 
assistance program. But the objective should be established for the gradual 
transference to the United Nations of the largest bua-den of this program. 

The administration ought to establish a goal of a certain amount of total 
economic assistance for the next five years. This goal we can hope will entail 
a considerably greater amount of money than is currently considered in the 
budget, because the assumption here is that we ought to be doing a great deal 
more than we are doing; but it is not the purpose of this paper to discuss amounts 
of money that are needed. Once the overall figure is arrived at, a plan of 
gradual transference to the United Nations of an increasing percentage should 
then be devised. With the cooperation of other nations it is safe to assume 
that the United Nations agencies can be expanded to cope with the increased 
program over a period of time. 

The diflBculty of convincing Congress each year the appropriations must 
be made will of course remain. However, we have that problem today even 
with the present small United Nations program, and if Congress understood that 
certain international commitments had been entered into and that we had a 
clear long-range policy, it ought to be possible to gain its cooperation for a 
long-term program as it was with the European Recovery Program. 

The central issue that ire face is that Congress and the country must become 
crynninced that our world responsiMlity in the field of economic and social 
assistance should lie directed primarily through the United Nations and not 
iilaterally. 

NEW AGENCIES 

The Technical Assistance program of the United Nations is only a small 
percentage of the United States Point IV and economic aid program. Expan- 
sion of existing agencies and the establishment of new ones is needed. 

The Eisenhower Administration took a big step forward in recommending 
the creation of the International Finance Corporation. This agency will en- 
courage the flow of private capital into the underdeveloped areas. This is 
greatly needed and should be established as soon as possible. However, it 
is not envisioned that such an agency will handle grants in aid to Governments 
for development programs. This points up the central need for an agency 
under the United Nations to handle such grants in aid and long-term loans that 
the World Bank is not authorized to undertake. 

8UNFED 

The creation of a Special United Nations Fund for Economic Development 
(SUN FED) has been proposed by various committees of the United Nations. 
// the United. Nations is to be entrusted with the burden of United States respon- 
sibility in this field, such an agency ivill have to be created. In deed the United 
Nations program will remain what it is today — a fine hope but scarcely a 
program capable of abolishing world poverty and ignorance — if such a fund 
is not created. 

United States policy within the United Nations has been opposed to the estab- 
lishment of SUNFED despite the strong desires of the underdeveloped nations 
for its establishment. The stated reason for this opposition has been the 
belief that we could not commit ourselves to further capital expenditures for 
world assistance unless it became possible to make certain savings from disarma- 
ment agreements. Most of the other industrialized nations of the world sup- 
ported the United States in this contention, while the underdeveloped countries 
argued that the establishment of a fund with an initial capital of $250 millions 
would not strain the resources of the Western World, and to link development 
with disarmament was unwise. 

SOME BUSINESS OPPOSITION 

Like so many of the debates in the United Nations the arguments of our 
diplomats did not reflect the underlying realties. The truth of the matter is 
that the United States Government has not yet accepted the principle of multi- 
lateral economic development with public funds. The predominant objective 



2978 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

of the present administration is to encourage world economic development pri- 
marily with private capital. There are strong business groups in this country 
who wish to end as quickly as possible any public financing of world develop- 
ment whether it be through the United States program or the United Nations. 
They are concerned primarily to balance the budget and reduce taxes, and fur- 
thermore they fear that public financing might compete with private investment 
abroad. An article in the October 1953 issue of Nation's Business was entitled 
"SUNFED— Your name on a Blank Check," with a subtitle, "Taxpayers are 
on the spot again as the new international aid scheme raises false hopes among 
the foreign nations." A report just released by the Senate Banking and Cur- 
rency Committee prepared for it by a 128-member citizen advisory committee 
under the Chairmanship of Roy C. Ingersol, president of the Borg-Warner 
Corporation of Chicago, basically urges an end to large-scale Government grants 
for overseas development and states that United States private enterprise 
should have the primary responsibility for such development except in a few 
public interest fields. 

The establishment of a program like SUNFED is the very key to the initia- 
tion of a United Nations world development program. As much as the present 
Technical Assistance Program has done to improve conditions in certain areas, 
they are only pilot projects. In some cases if they are not followed up with 
real economic assistance for development they can do more harm than good. 
For example, if the population is increased by abolishing disease to a large extent, 
but the means do not exist to increase production to offset the population gains, 
then greater discontent and conflict will result. Through SUNFED the United 
Nations would be able to launch programs of real economic development which 
will raise living standards despite increases in population. 

If we accept the necessity of transferring the major portion of our own United 
States tvorld development programs to the United Nations, then we must support 
the establishment of new agencies like SUNFED to carry out this enlarged 
responsibility. 

A NEW INTERNATIONALISM 

For those of us who, despite the sorry events of the postwar years, still hold 
in our minds the vision of "One World" ultimately in which there will be peace 
among men, the growth of the United Nations into an organization capable 
of removing the causes of conflict and arbitrating disputes is absolutely essen- 
tial. We have learned that it is not possible to strike off in one blow a world 
constitution capable of fulfilling these high ends. But rather in a world of 
such base divergences it is necessary to build block upon block through the 
years as the great cathedrals were built in the Middle Ages. Therefore the task 
of the internationalist in our time is to seek to strengthen the existing agencies 
of the United Nations and to create new ones which will help the development 
of the world community. It is in this way that we can move forward, as the 
overriding urgencies of the common task are the greatest forces for uniting 
men. There are certainly no more important concerns to men in this 20th 
century than the improvement of their living standards, and we should take 
advantage of this primary urge to strengthen the bonds that unite us. 

Unquestionably there has been growing throughout the length and breadth 
of the United States a recognition of our world responsibility in the fields 
of economic and social development. The achievements of the Marshall Plan 
and the Point IV program have shoNvn what can be done. People are tired of 
the preventive warriors — the McCarthys and the Knowlands — who have scared 
them with false predictions of dire conflict. The time has come for the American 
internationalists to come out of the storm cellar and seize the initiative once 
again. 

A Citizen's Movement 

The great liberal organizations of this country icho will be participating in 
this conference, together with many willing individuals, should form a citizens' 
committee to educate the country and pressure Congress to undertake the adoption 
of a bold new progi-am of worldwide economic and social development that will 
abolish the threat of expanding communism in the only way that it can be 
abolished. The discussions and speeches of this National Workshop will gen- 
erate new thought on the subject, but at the same time we must not let the 
opportunity to initiate new action pass. If we are going to increase the amounts 
of capital and technical assistance the United States is pumping into the life 
stream of the world, and if we are going to shift the program from a national 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2979 

emphasis to an international anphasis through the United Nations, and if we are 
really going to eliminate the sources of world conflict and lift humanity to a 
new level of hope and happiness, then ice have got to get doivn to the business of 
organizing in this country an effective education and action group that will 
bring these things to pass. 

National Woekship on World Social and Economic Deveh-opment 
816 21st St. NW., Washington, D. C. 

ABE WE BIGHT ABOUT SUNFED? 

Louis H. Pink, International Economic Union 

The provision of reasonably adequate funds for underdeveloped countries has 
been discussed for several years. The idea will not die — probably because it has 
real merit. The latest program, SUNFED (Special United Nations Fund for 
Economic Development), entails the advancement of $250 million in loans or 
grants and is a natural follow-up for U. N. technical assistance programs. Tech- 
nical assistance experts supply the plans and know-how — but capital and pump 
priming are needed to carry out the plans. 

Nelson Rockefeller suggested a similar plan for an International Development 
Authority and International Finance Corporation which would be afl31iated with 
the International Bank. The Bank can lend money only if there is a reasonable 
certainty that it will be returned. But backward countries cannot always pro- 
vide fully bankable or interest-bearing loans, nor have they enough capital to 
do the work themselves. Private investors put their money into oil or other 
natural resources when they make foreign investments, and will loan or invest 
only where there is a reasonable margin of safety. 

Now that the election is over, Congress should be less fearful of taking a 
stand for such a forward-looking program. In 1950, Congress stated that the 
policy of this country is to help people in underdeveloped areas to "develop their 
own resources and improve their working and living conditions by encouraging 
the exchange of technical knowledge and skills and the flow of investment 
capital." The United Nations Charter also declares this as one of its aims; its 
signatories pledged themselves to take joint and separate action for "higher 
standards of living, full employment and conditions of economic and social prog- 
ress and development." 

Raising living standards in these countries would not only enhance the welfare 
of the people, it would lessen the danger of war. Contented people want no 
war, but poverty-stricken people have little interest in peace or democracy. 

Speaking before the American Society of Newspaper Editors in April, 1953, 
President Eisenhower said that when the cost of armaments is less, the United 
States would contribute to an international fund for underdeveloped countries. 
The President intended this as a promise which would encourage backward 
countries to help themselves, but, unfortunately, his qualification in regard to 
armament savings put the program on an "if" basis, and has been used as an 
argument for delay by some who oppose SUNFED. 

A different kind of opposition comes, often from the same people, who contend 
that no action should be taken because the $250 million proposed is insufficient. 
While the $250 million is admittedly only a drop in the bucket compared with 
the need, a start must be made. It is impossible to do an adequate job without 
planning and machinery. Months and perhaps years of organizational wo7'k 
must be done before capital can actually be put to work, but it is important to 
start now. SUNFED should be begun with the financial help now available from 
countries willing to go ahead even if the United States and a few other nations 
are not yet ready to contribute their share. 

The political and moral imperatives are clear to most people, but the economic 
advantages of SUNFED for the larger countries are too often overlooked. It 
has been demonstrated often that the poverty of some nations limits the welfare 
of all. Industrial countries must have the abundant raw materials of smaller 
nations for their own progress ; and it is a truism that a prosperous country is 
the better customer. The hesitation of the United States on SUNFED is open 
to criticism. Great Britain and Belgium, it is said, have been influenced by 
our attitude. But France and the smaller nations, Denmark, Luxembourg, 
the Netherlands, Norway, Italy, and Japan, among them, favor going ahead. 



2980 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 



Should we not follow the courgeous attitude of little Denmark which, in re- 
plying to a questionnaire by Mr. Raymond Scheyven of Belgium (deputized by 
the General Assembly of the United Nations to report on SUNFED) said: "The 
Danish Government is of the opinion that the establishment of the special fund 
should not be postponed. It is neither found necessary nor desirable to await 
a general decline in defense expenditure. The proposed sum of $250 million 
represents only an inflnitestimal fraction of the total defense expenditure." 

Mr. Morris. I would just like to make the statement, Senator, that 
at the present time, at least from 1952 to 1956, $96,250,000 have been 
expended through the expanded U. N. technical assistance program as 
set forth by the plans we have been talking about, of which the United 
States has contributed $53,600,000, more than 50 percent. With re- 
spect to 1956 alone, the total contribution in 1956 has been $29,750,000, 
of which the United States has contributed $15,500,000. 

In the foreign-aid bill currently being considered by the Congress, 
request is made for fiscal 1957 — 

Million 

U. N. Expanded Technical Assistance Fund $15. 5 

United Nations Children's Fund (UNICEF) 10.0 

I would like to offer those figures for the record. 

Senator Jenner. It may go into the record and become a part of 
the record. 

(The docmnent referred to was marked "Exhibit No. 313" and is as 
follows :) 

Exhibit No. 313 

United Nations and Major Specialized Agencies 
Budget and United States contributions 



Fiscal year 


Total assess- 
ments 


United States 
(percent) 


United States 
contribution 


United Nations: 

1946. - - - 


WCF 

$15, 426, 172 

19. 230, 000 

27. 450, 000 

34. 698. 000 

41. 617, 000 
34, 170, 000 

42. 570, 000 
42. 940, 000 
44, 200, 000 
41, 300, 000 


39.89 
39 89 
39.89 
39.89 
39 89 
39.79 
38.92 
36.90 
35,12 
33.33 


$6. 153, 500 

9, 495, 347 

10 949 805 


1947 - - 


1948— 


1949 


13 841 032 


1950 - - --- 


16 601 021 


1951 


13, 576, 243 
16 394 244 


1952 


19.53.. 


15 440 860 


1954 - - 


15, ]67;040 
13 407 290 


1955 


1956 (estimated) 


13 212 012 


United Nations Educational, Scientific, and Cultural Organi- 
zation: 

1948. 


6, 950, 000 
7, 650, 000 
7, 639, 372 
7, 906. 279 
8, 200, 000 
8. 718, 000 
8, 538, 551 
9,461,449 


44.03 
41.88 
38.47 
37.82 
35. 00 
33 33 
33 33 
33.33 


3. 500, 385 
3 601 424 


1949 


1950.. 


2 887 173 


1951.. 


2 814 381 


1952 


2, 785, 400 
2.8.55 609 


1953. 


1954 


2 845 900 


1955 


3 153 501 


1956 (estimated). 


2 747 526 


World Health Organization: 

1949 


4, 800, 000 
5. 000, 000 
7, 000, 000 

7, 0S9, 025 

8, 600. 000 
8, 920. 200 
8, 963, 000 


38.77 
38.54 
36.00 
35.00 
33. 33 
33.33 
33.33 


1 860 884 


1950 


1,918,220 


, 1951 -— 


3 070 931 


1952 


2 481,159 


1953 


2 866 667 


1954 


2,903 400 


1955 - 


2, 987, 667 
3, 000, 000 


1956 (estimated). 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2981 



Budget and United f^tates Contributions — Continued 




Fiscal year 


Total assess- 
ments 


United States 
(percent) 


United States 
contribution 


Food and Agriculture Organization: 

1946 - 


$2, 500. 000 
5, 000, 000 
5, 000. 000 
5, 000, 000 
5, 000, 000 
5, 000, 000 
5, 225, 000 
5, 180, 000 
5, 225, 000 
5, 890, 000 


25.00 
25.00 
25.00 
25.00 
27.10 
27.10 
30.00 
30.00 
30.00 
30.00 


$625, 000 


1947 - - 


1,250 000 


1948 - 


1, 250, 000 


1949 


1,250 000 


1950 


1,2.50,000 


1951..- --- 


1, 420, 800 


1952 


1. 355, 000 


1953 - -- 


1,673 750 


1954 


1, 554, 000 


1955 - - . -- 


1, 650, 435 
1, 626, 482 


1956 (estimated) - 


International Labour Organization: 

1946 


3, 047, 873 
2,813,116 
3, 727, 332 
4, 425, 930 
5, 185, 539 
5, 983, 526 
6, 219, 506 
6, 470, 639 
6, 409, 085 
6, 556, 887 


17.53 
17.34 
15.65 
19.13 
18.35 
22.00 
25.00 
25.00 
25.00 
25.00 


632, 639 


1947 


487, 656 


1948 


521, 697 


1949 


1, 091, 739 




848 058 


1951 


1, 269, 868 




1,466 412 


1953 - - 


1,538,991 




1,421 299 


1955 


1, 527, 477 




1, 633, 855 

119, 160 

294, 400 


International Civil Aviation Organization: 


Canadian 
$996, 972 

1, 960, 000 

2, 600, 000 
2, 649, 685 
2, 610, 607 
2, 600, 000 
2, 834, 191 
2, 817, 167 
2, 530, 310 
2, 530. 260 


._ 

11.95 
15.00 
19.59 
18.69 
18.47 
24.98 
24.97 
27 00 
29.71 
32.60 


1947 


1948 - 


509 278 


1949 


498, 004 
463 979 


1950 - - 


1951 --- - 


453, 319 


1952 


698, 610 
807 273 


1953 


1954 


787, 750 

812, 776 

1, 496, 915 

146 311 


1955 


1956 (estimated) .. . _ _ . . 


International Telecommunications Union: 

1950 . - 


1 1,817,525 
1 3, 811, 467 
1 1, 394, 937 
1 1, 416. 663 
1 1, 439, 100 
' 1, 520, 000 


8.04 
12.00 
7.83 
7.96 
9.60 
8.96 


1951 


457, 376 
109, 264 
113 150 


1952 


1953 - --- 


19.54 


138, 200 


1955 . - - - - 


136 200 




148, 200 
24,855 


World Meteorological Organization: 

1952 


190, 000 
267, 379 
284, 881 
295, 892 


12.67 
12.67 
11.89 
11.45 


1953 


36 253 


1954 - - 


36, 253 


1955 


36, 253 
36, 253 

4 899 


1956 (estimated) _ 


Universal Postal Union: 

1946 - 


105,952 
125, 829 
160, 701 
198, 162 
277, 602 
281, 976 
321, 723 
400, 000 
408, 543 
408, 543 


4.63 
4.60 
4.38 
4.43 
4.34 
4.38 
4.31 
4.63 
4.36 
4.36 


1947 -— . - - . . 


5,783 


1948 


7,025 


1949 


8,781 


1950 . - 


12, 056 


1951 


12,341 
13, 867 
18, 520 
17, 820 
17,820 


1952 


1953 


1954 


1955 , 





• Includes ordinary and extraordinary budget figures. 



2982 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 



Special Programs Financed by Voluntary Conteibtttions to the United 

Nations Organization 

United States contributions, fiscal years 19^9-53 





1949 


1950 


1951 


1952 


1953 


UNTA — 






$12, 007, 500 

25, 450, 000 

7, 106, 114 


$11, 400, 000 
50,000,000 


$8, 171, 333 


UNRWA I 


$8, 000, 000 
25, 491, 692 


$10, 000, 000 
15, 356, 361 


16, 000, 000 


UNICEF 


6, 666, 667 


UNKRA 


10, 000, 000 


40, 750, 000 


UNREF2 










IRO 


70, 643, 728 
1, 103, 366 


70, 447, 729 
547, 939 


25, 000, 000 
650, 000 






lOAO, joint support 


676, 312 


653, 814 






Total 


105, 238, 786 


96,352,029 


70, 213, 614 


72, 076, 312 


72, 241, 814 







' Includes expenses of predecessor agency in 1949 and 1950. 

s No contributions made from appropriated funds prior to fiscal year 1954. 

Note.— The abbreviations used above stand for the followtag: UNTA— United Nations expanded pro- 
gram of technical assistance; UNRWA — United Nations Relief and Works Agency for Palestine Refugees 
In the Near East; UNICEF — United Nations International Children's Fund; UNKRA— United Nations 
Korean Reconstruction Agency; UNREF— United Nations High Commissioner for Refugees Emergency 
Fund; IRO— International Refugee Organization; IC A O— International CivU Aviation Organization. 

Statement by Roy Battles, Assistant to the Master, the National Geange, 
Befobe Subcommittee on International Organizations and Movements, 
House Foreign Affairs Committee, Conceeninq FAO and Related Organiza- 
tions and Movements, February 29, 1956 

The testimony of the National Grange today will deal primarily with the Food 
and Agriculture Organization, although we have developed some FAO compari- 
sons with respects to the other so-called specialized agencies, certain of the 
U. N. programs and with respect to our own bilateral United States technical 
assistance program. These comments and comparisons concerning agencies other 
than FAO are designed to illustrate problems, and to enable us to place the total 
United States situation as it relates to these various programs in proper 
perspective. 

FAO is a technical and scientific organization, global in nature, which this or- 
ganization strongly endorses. It is made up of 72 nations — each nation with one 
vote. FAO is connected formally with the United Nations only through an 
agreement. Actually, it is an independent body, operating under its own consti- 
tution and is one of eight so-called specialized agencies. It was organized 
between 1943 and 1945, and was the fiirst of the specialized agencies to be 
organized. 

It is the feeling of the National Grange that FAO has blazed an enviable trail 
during the past decade. It is a pioneering movement between nations of the 
world that are joined together in a mutual undertaking. To a rather sizable 
degree, FAO has set a pattern for the other specialized agencies that have 
profited by FAO's experiences, successes and failures. 

Grange interest in and support of FAO stem from our belief in what it is 
designed to accomplish. First, it is designed to help eliminate hunger around 
the world. Hunger breeds revolution and war, and it is to our national interest 
to end this hunger as rapidly as possible throughout all segments of the free 
world. FAO works toward this end through a program of technical assistance. 
Scientific know-how is brought into play on a cost-sharing basis, in an effort to 
increase food production. This, furthermore, is done on a selective basis, said 
selectivity being based on the potential efl3ciency of that production. 

Second, it is designed to "upgrade diets," particularly among the under- 
privileged peoples. People who are well fed make better citizens — they can 
work harder and longer. When misery and listlessness are reduced, the oppor- 
tunity and desire for raising living standards become greater, which in turn 
creates an atmosphere which is more favorable to prosperity. Prosperous people 
are not only less likely to precipitate wars, but are generally good customers of 
ours. The segment of FAO's program, then, to our way of thinking, is also in 
the national interest. 

Then, there is a third function of the Food and Agriculture Organization. It 
collects food and agriculture data, or statistics, on a world scale. This is infi- 
nitely cheaper than for each nation to collect its own statistics. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2983 



The organization also does considerable spade and coordinating work in the 
field of marketing on a world scale, including such movements as the Inter- 
national Wheat Agreement. Special activities include studies such as that of 
appraising ways and means of disposing of surplus foods. 

Getting back to technical assistance, it not only goes to cooperating countries 
in the field of agriculture and nutrition, but it also carries out many similar 
programs in the field of fisheries and forestry. 

Actually, FAO is designed to help the ministry or Department of Agriculture 
in backward countries provide to their people, on a selective basis, the required 
know-how in production, marketing, farm credit, cooperative activities, etc. 
needed to assist them in raising their own standard of living. 

We believe progress has been made in all of these fields, and that this progress 
contributes to our own national welfare. Members nations make their financial 
contributions directly to these specialized agencies in accordance with strict 
pledges made earlier. 

In order that you may have some idea of the size of FAO compared with the 
other specialized agencies, as well as with the United States contribution 
thereto, the following table is submitted : 

Table I. — Calendar year 1955 regular programs of specialized agencies 





Total assess- 
ment 


United 

States 


United States 
contribution 


UNESCO 


$9, 491, 420 

10, 049, 350 

5, 890, 000 

6, 990, 913 

2, 530, 260 

1, 520, 000 

295, 892 

408, 543 


Percent 
30.0 
33.33 
30.0 
25.0 
32.6 

8.96 
11.45 

4.36 


$2, 847, 426 


WHO - 


3, 349, 790 


FAO .- 


1, 767, 000 


ILO - - 


1, 747, 729 


ICAO *- --- 


824, 539 


ITU 1 - -- 


136, 200 


WMO ' - - 


36, 253 


UPU ' - - 


17, 820 




Total 


37, 176, 378 




10, 726, 757 







' 1955, United States fiscal year. 

This total United States cost of about $10% million for the regular program 
of the specialized agencies is relatively small compared to our own bilateral 
point 4 Technical Assistance Program, which in fiscal 1955 totaled $117 million, 
and which is somewhat larger than this in the current fiscal year of 1956. The 
multilateral and bilateral programs both have a place, however, in furthering 
the national interest of the United States. 

This committee is also undoubtedly aware of the fact that the United States 
makes certain other contributions to organizations with objectives similar to 
those of FAO. For instance, of the United Nations International Children's 
Fund of %11V2 million for fiscal 1956, the United States pays approximately 
$9 million of the program. Of the total UNICEF Fund, $.3,060,000 is estimated 
to be allocated to food and agriculture uses. We will go into the other special- 
ized agencies after we take a look at the U. N. itself. 

The total budget of the United Nations for its regular activities for calendar 
year 1955 amounted to $39,640,000, of which the United States contributed one- 
third, or $13,212,012. 

This brings us up to the Expanded Technical Assistance Program (ETAP). 
This program is a United Nations affair ; it is controlled by the U. N. through 
its Technical Assistance Board and the Economic and Social Council, although 
through agreement, its program is carried out through the specialized agencies. 
The ETAP Program came into being as a result of point 4 of President Truman's 
inaugural address delivered in January of 1949. The following table gives 
the overall cost of ETAP in recent years, including the United States contribu- 
tion thereto : 



72723— 57— pt. 42- 



-8 



2984 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 
Table II. — Expanded U. N. technical assistance program 





Total con- 
tributions 


United States 
percent 


United States 
contribution 


1952 - 


$18, 800. 000 
22, 400. 000 
25, 300, 000 


60.0 
57.0 
55.0 


$11 400 000 


1953 


12 800 000 


1954 


13, 900, 000 


1955 


1956 J 


29, 750. 000 


52.1 


15, 500, 000 






Total 


96, 250, 000 




53, 600, 000 









• Approximate. 

Of the 1956 figure of $29,750,000, it is interesting to note that FAO is slated 
to receive something over $8 million, or just less than 27 percent of this amount. 
This is materially more than FAO's regular program amounts to. 

It is the feeling of the National Grange that it is now time for Congress to 
establish an overall United States policy concerning these multilateral global 
organizations. It is our opinion, furthermore, that 6 years' experience with 
ETAP make the development of such a policy at an early date imperative. 

Our experience with UNICEF to a lesser degree also points up the need for a 
sound, long-range policy on the part of the Congress of the United States. 

As we see it, the following problems have developed : 

1. Contributions of nations to ETAP are voluntary. A nation may or may not 
contribute — as it sees fit. It may contribute one year and not contribute the 
next. It may make a pledge to contribute, and then fail to make good that 
pledge. In short, because contributions are voluntary and because of a problem 
discussed in (2) below, it is next to impossible — if not impossible — to plan a 
sound program on a long-range basis. 

Under the regular program of the specialized agencies, member nations are 
bound by the constitution to make good their pledges so long as they remain mem- 
bers of the organization. Experience has shown that this makes sound, forward 
planning possible. 

2. Contributions to ETAP may be made by cooperating nations in (a) local 
currencies — whether convertible or not; (6) services which amount to fellow- 
ships within the boundaries of the contributing nations or the use of technically 
trained specialists from the contributing nation, to be used outside that nation, 
or (c) certain materials. 

This type of an arrangement brings forth a myriad of undesirable effects. In 
short, it becomes ^necessary for the administrators of ETAP to find ways of uti- 
lizing unsatisfactory contributions. At its worst, for example, the Russians, 
who are not members of FAO, malve their contribution to ETAP in rubles, which 
must be spent where they can be spent. This is usually within the boundaries 
of Red Russia. They may be spent there — and usually are — for equipment, in- 
struments, etc. The administrators of ETAP are also faced with the question 
of whether to accept Russian fellowships and Russian technically trained spe- 
cialists to serve in the underdeveloped countries of the world. We question 
whether this type of an arrangement is in the interest of the United States. 

Contributions made by member nations directly to the regular programs of 
the specialized agencies — including FAO — must be made in the form of readily 
convertible hard-ca.sh currencies. There are no limitations on where these funds 
may be spent. 

3. Contributions to ETAP are made by cooperating nations directly to a special 
account with the Secretary General of the United Nations for purposes of eco- 
nomic development and technical assistance. R"gardless of the arguments pre- 
sented by anyone concerning who controls ETAP, it is the position of the Na- 
tional Grange that the one who controls the purse strings calls the dance. 
This is universally true — it has always been true and will always be true. To 
argue otherwise might be bluntly and briefly described as asinine. 

It is the position of the National Grange, furthermore, that centralized U. N. 
control of these technical assistance programs is basically unsound. This 
viewpoint is based on several facts, the chief one being that the United Nations 
is a political body. It is meant to be a political body — and rightly so. Grange 
support of the United Nations is a matter of record. Technical assistance, how- 
ever, should not be run by politicians; it should be kept in the hands of the 
technically competent governing bodies of the various operating organizations 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2985 

of the specialized agencies. This, in the case of FAO, means people at the level 
of the departments or ministries of agriculture. As we umlerstand it, FAO 
from the very beginning wus meant to infuse strength into the ministries of 
agriculture, so that they could supply better services for the development of the 
national economies involved. 

FAO delegates come from the ministries of agriculture ; United Nations dele- 
gates come from the ministries of foreign affairs. The ministry of foreign 
affairs in most countries has little to do with the domestic agricultural pro- 
grams. Therefore, they are not technically unqualified to formulate food and 
agriculture technical assistance programs, but are basically uninterested in 
those programs — except as they are used as tools to implement foreign policy. 
And it is our position that they should not be used as such tools. 

The centralized ETAP approach is also immensely expensive from the admin- 
istrative point of view. For example, for the first 18 months of the program, 
the administrative expense stood at $180,000 ; in 1952 it climbed to $476,000 ; the 
1953 budget of TAB amounted to $1,299,000, while the administrative expenses 
of the program in 1954 added up to $1,300,000. I am reliably informed, fur- 
thermore, that in 1955 and 1956 even higher administrative expenses are being 
incurred by TAB. 

One of the reasons for this high expense is that the Executive Chairman of 
TAB has a large staff of "country representatives." These country representa- 
tives sn.ggest, coerce, and demand — under the guise of a balanced and fully 
coordinated program for the country — the type of work the recipient nations 
are able to undertake under ETAP. 

This, we believe, is basically wrong. Who in the United Nations, or in any 
of its resident country field ofiices, is suflBciently wise to guide the destiny of 
the sovereign recipient coimtry? How would Uncle Sam like it if some U. N. 
person entered into his affairs in this manner? This sort of centralized world 
planning leadership smacks strongly of being exactly the opposite type of 
philosophy of that upon which this Nation was founded and should be seeking 
to perpetuate and encourage — rather than stifle and restrict. 

In the case of FAO and the regular programs of the other specialized agencies, 
the nations themselves decide what they want and then come to FAO for aid. 
This, we maintain, is by far the sounder approach. 

In fact, there are several signs at the present time that since the ETAP 
portion of the total FAO program is materially larger than the regular program 
of FAO, and because of various coercive forces that have been brought into 
play, the so-called "centralizers," through their ingenious system of indirect 
financing, have been able to change the functioning of the whole international 
structure in this field during the past 5 years. This, if true, is in fiagrant 
defiance of the constitutions of the international organizations themselves, and 
we feel is also in violation of the intent of the Congress of the United States. 

4. It is the feeling of the National Grange that the United States is paying a 
much greater proportion of the total expenses of the technical assistance pro- 
grams than is either desirable or necessary. Because we are appropriating a 
different percentage share to three separate funds, the United States is contrib- 
uting, we believe, very close to 50 percent of the money used by the international 
organizations for work in the field of food and agriculture. 

(a) To FAO, where the entire program is food and agriculture, the 
United States pays 31% percent of the budget, which in 1956 
is $6.8 million, or $2,079,000 

(6) To the U. N. technical assistance program (ETAP), where the 
portion of the fund to be used for food and agriculture in 1956 
is estimated at $8 million, the United States pays 52 percent, or_ 4, 160, 000 

(e) To UNICEF where the portion of the fund to be used for food 
and agriculture in 1956 is estimated at $3,060,000, the United 
States pays 74 percent, or 2, 264, 400 

There is still another peculiarity in FAO's budgetary affairs to which we 
would like to call your attention. During the past 10 years, as I said before, 
the number of countries in FAO has increased from 44 to 72. Each member coun- 
try pays dues. But with the United States dollar ceiling of $2 million serving 
as a tight lid on the upward movement of the FAO budget, and the United States 
taking a larger and larger percentage share of FAO's costs, the net result has 
been a substantial decrease in the dues which other member countries pay to 
FAO. For example, the United Kingdom, which is the second largest contributor 



2986 SCOPE or soviet activity in the united states 

to FAO, has gone down from 15 to about 10 percent. Other reductions are ; Brazil 
from 3.46 to 1.71 percent ; Australia from 3.33 to 2.06 percent ; New Zealand from 
1.15 to 0.58 percent; Union of South Africa from 2.31 to 0.77 percent; Columbia 
from 6.50 to 0.65 percent; Egypt from 1.73 to 0.60 percent; Nicaragua from 1.15 
to 0.05 percent. These are not the whole list, but they will serve to make the 
point that reductions have been spread pretty much over the whole membership. 

Add to all of this the fact that costs have gone up for FAO as for everyone 
else, its responsibilities have increased with larger membership, and demands 
for its services havf grown steadily as the organization has proved its worth. 
There is no easy way out of a dilemma like this for FAO, which probably ex- 
plains why it has been prostituting itself by taking large sums of money from 
the political organization, U. N., along with the controls and supervision of its 
technical programs, which the political U. N. is not qualified to give. 

Perhaps it was the indignity and unfairness of all of this which sparked the 
budget brawl which nearly wrecked the last FAO Conference, held in Rome in 
November. The Director-General, who is a distinguished American agricultural 
scientist, threatened to resign when the United States delegation would not sup- 
port his modest budget increase from $6 million to $7 million. Those countries 
which favored the increase attacked the United States for stunting the normal 
growth of FAO, and those countries which did not want to pay more themselves 
claimed that the United States was obliged to fulfill its promise to pay 33% 
percent of the FAO budget, now that the United States contribution to U. N. 
had finally been reduced to that figure. 

After the bitterest kind of wrangling, in a spirit totally foreign to FAO in 
the past, the nations voted a compromise budget for 1956 of $6.6 million, and then 
increased the United States percentage from 30 to 31.5 percent. All of this 
means that the United States, which pays three times the amount of dues in 
FAO as the next largest contributor, and which is actually the source of nearly 
half the funds on which the organization operates (counting money received 
through the U. N. expanded technical assistance program and UNICEF), was 
first blamed before the whole agricultural world for inflicting financial starva- 
tion on FAO, and then assesed an amount for the year ahead which exceeds the 
dollar ceiling imposed by the United States Congress. 

The committee, incidentally, is unquestionably aware of the congressional 
move now under way to raise the ceiling of United States contributions to FAO. 

FAO started out with the United States paying only 25 percent of the total 
budget. That was when 44 nations belonged to FAO. It was the position of 
this country from the beginning that it would be undesirable for the United 
States or any nation to assume too big a share of the budget. This was for 
the reason that if some nations assumed too large a portion of the budget, 
and then withdrew from the organization, the organization's program would 
suffer materially. It was also for the reason that it was felt — and experience 
in this country lias borne this out — that people are as interested in a program 
as the size of their financial contribution. It would seem to us that if 44 
governments in 1945 could agree, at a time of financial chaos, that 25 percent 
was a proper share for the United States to pay for food and agriculture pro- 
grams, why it is necessary now to pay 50 percent of the total cost when we 
have 72 member governments in FAO? In short, if we are going to pay that 
sort of proportion of the budget, why not make it a bilaterial program and pay 
all of it, so as to tie the programs strongly into our own foreign policy objectives? 

We are not really arguing that it would not be desirable for the United States 
to pay 331/^ percent of the total cost of these technical assistance programs. 
That is the proportion of the cost we pay with respect to the United Nations 
itself. We are not prepared to argue one way or the other on this issue. We 
are prepared to say, however, that 50 percent — even anywhere near 50 percent — 
of the total cost of these programs to be shared by the United States is not 
desirable. 

5. Actually, with the advent of ETAP, we brought about a situation whereby 
we dumped one program literally upon the other. Since the ETAP program 
is channeled through the specialized agencies themselves, we figuratively 
have a two-headed monstrosity from an administive point of view. FAO, 
for instance, must operate under 2 budgets, 2 sets of administrative funds, 2 sets 
of governing bodies, 2 sets of books, and 2 .sets of employees. Each adminis- 
trator of the specialized agencies must give an accounting to separate groups 
of governmental authorities, their own governing bodies, and the United Nations 
Economic and Social Council. To our way of thinking, this is an outrage to the 
United States taxpayer, and demands immediate termination of this wasteful, 
inefficient and costly duplication of effort. 



SCOPE OF SOVIET ACTIVITY IN THE UXITED STATES 2987 

In summation, we would like to point out that in requesting Congress to 
formulate a long-range, overall policy in this field, we base this request on the 
following points : 

1. Any advantages of voluntary contributions are outweighed by the disad- 
vantages. 

2. The day when contributions to these programs can be made in unconvertible 
currencies, or in terms of services and materials, is completely outmoded. 

3. Centralized political control on the part of the United Nations or any other 
world body is undesirable. 

4. It is unnecessary and undesirable that the United States pay anywhere 
near 50 percent of the total cost of these programs. 

5. It is unthinkable to attempt to run two completely separate porgrams in 
this same field. 

In conclusion then, we recommend that the expanded technical assistance 
program, insofar as United States contributions are concerned, be tai)ered off 
as rapidly as feasible, and that from hereon in, we make our contributions directly 
to the specialized agencies. 

The experience of FAO and other multilateral agencies shows that the so- 
called regular program and the so-called expanded technical assistance program 
are in reality a single program, basically indistinguishable except for budgetary 
and bookkeeping purposes. The distinction between them is a historical acci- 
dent, due to the way in which the so-called expanded technical assistance pro- 
gram originated. From the standpoint of operating efl3ciency and effectiveness, 
the two programs must be integrated. 

We believe such a change can be made not only without damage, but with 
great benefit to the work of these agencies, and that it will strengthen United 
States participation in the work. We also believe the change should and can be 
effected in a comparatively short period of time. 

It is the opinion of this organization that the total program of these two 
bodies, when combined under the regular programs, should not be cut back. 
W' e are unable to say just exactly how much of our total, overall United States 
effort should be channeled through the multilateral programs and how much 
of it should be bilateral. We are comparatively sure, however, that the multi- 
lateral program should not be curtailed at this time. To accomplish this, it will 
be necessary to abolish the dollar ceiling on the United States contribution to 
FAO, to enable the organization to receive the whole amount which the United 
States may appropriate for work to be done internationally in the fields of food 
and agriculture. 

In order to assist the Congress in developing such a long-range policy, we 
have joined with the American Farm Bureau Federation and the National 
Council of Farmer Cooperatives in framing the following projwsed resolution. 

JOINT RESOLUTION STATING THE POLICT OF THE CONGRESS ON THE PARTICIPATION 
OF THE UNITED STATES IN MULTILATERAL TECHNICAL COOPERATION PROGRAMS 

"Resolved by the Senate and House of Representatives of the United States of 
America in Congress assembled. That the participation of the United States in 
multilateral technical cooperation programs shall be on the same basis as the 
participation of the United States in the regularly established and budgeted 
activities of the international organizations which operate such programs and 
of which the United States is a member. 

"Sec. 2. In adopting this joint resolution, it is the sense of the Congress that the 
Government of the United States should use its best efforts to bring about, as 
soon as practicable, and in any case no later than the end of calendar year 1957, 
the transfer of operations of multilateral technical cooperation programs from 
the basis of the United Nations Expanded Program of Technical Assistance to 
the same basis as the regularly established programs of the international organ- 
izations which have participated in the Expanded Program, so that contributions 
for multilateral technical cooperation from each member government will be made 
to each international organization carrying on such activity in the same manner 
as contributions for regularly budgeted activities of the organizations, and so that 
the programs of multilateral technical cooperation administered by these organ- 
izations will be reviewed and determined by the representatives of their member 
governments in the same manner as their regularly established programs. It is 
further the sense of the Congress that the participation of the United States in 
any multilateral programs of a nonemergency nature for economic development 
or for other purposes, which operate now or which may be proposed in the future, 



2988 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

shall be on the same basis as its participation in the regularly established activi- 
ties of the international organizations that may be proposed to have a part in 
carrying on such programs. 

"Sec. 3. In adopting this joint resolution the Congress does so with the under- 
standing that, in the transfer of operations of multilateral technical cooperation 
programs to the same basis as the regular programs of the international organi- 
zations operating these programs, the Government of the United States should 
secure the adoption by the governing organ of each such international organiza- 
tion of a precise statement of the purjwses, objectives, and methods of these 
programs appropriate to each such international organization to insure that the 
programs will operate in a coordinated and integrated manner and that the 
programs will be susceptible of achieving meaningful progress toward defined 
objectives. The Congress also understands that the basic objectives of the 
programs will be stated as being to assist member governments to establish the 
services necessary to enable their people to improve their industrial and agricul- 
tural livelihood and well being and their health, education, condition of labor, 
and general welfare." 

This latter section of the above proposed joint resolution is actually only a 
precautionary feature. A mechanism to accomplish this type of needed coordi- 
nation is already a part of FAO and the other specialized agencies. The founders 
of these agencies recognized that their work cannot be done in a vacuum, and 
made provisions in the various constitutions for cooperation with other organiza- 
tions working in the same or related field. As a matter of fact, FAO has nego- 
tiated an agreement of general cooperation with the United Nations and the other 
specialized agencies to handle problems of common interest, such as the Joint 
Committee on Nutrition with WHO. 

Furthermore, most of the coordination actually needs to be done within the 
recipient governments themselves. Since the projects of the specialized agencies 
are largely carried on within countries, it therefore becomes a country problem 
of making sure that the program instituted therein does not carry with it over- 
lapping or duplicating features with respect to other programs. 

In short, we believe that there is ample provision for full coordination under 
existing relationships between the specialized agencies without the kind of unde- 
sirable central control that has tended to characterize the system of appropriation 
to and allocation from a central fund under a United Nations administrator. 

If, on the other hand, this machinery mentioned above needs strengthening to 
meet the special conditions of an enlarged technical assistance program, the 
problem can and should be worked out by the agencies themselves, with the poncy 
guidance of their governing bodies, and in accordance with the recommendations 
proposed under section 3 of the above-proposed joint resolution. 



The following statements by representatives of the National 
Grange, the American Farm Bureau Federation, the National Coun- 
cil of Farmer Cooperatives, and of Francis O. Wilcox, Assistant Sec- 
retary of State for International Organization Affairs, were later 
ordered printed in this record and read as follows : 

Statement of the American Farm Bureau Federation Before the House 
Foreign Affairs Subcommittee Dealing With International Organiza- 
tion, BY John C. Lynn, Legislative Director, March 1, 1956 

The American Farm Bureau Federation appreciates this opportunity to pre- 
sent its views with regard to certain aspects of international organizations 
and some guiding principles we think should be followed. Our testimony 
today will deal primarily with the Food and Agriculture Organization and the 
expanded technical assistance program. 

The American Farm Bureau Federation has had a long continuing interest in 
technical assistance and related programs. We recognize full well that there are 
forces at work in the world today that make it necessary for the United States 
to take aggressive action in order that we may maintain our freedom and per- 
petuate and promote the freedoms of other nations. 

The security of America and that of the rest of the free world are insep- 
arable and require building up the collective strength of the free nations 
through mutual cooperation. 

Quoted below is our resolution dealing with United Nations and specialized 
agencies : 



SCOPE OF SOVIET ACTIVITY EST THE UNITED STATES 2989 

"The United Nations is a force for world peace. Though it has failed to 
solve some problems, it has succeeded in solving others. Where there is dis- 
cussion, there is hope. 

"We favor continued financial support of the United Nations and its spe- 
cialized agencies. However, we insist that these funds be allocated to the 
specialized agencies and that the funds and program be administered on a 
decentralized basis. We oppose centralizing the use and administration of 
funds for specialized agencies in the United Nations." 

The United Nations and its specialized agencies have been carrying on the 
technical assistance program for several years. We would like to comment 
briefly with regard to the technical assistance program as it relates to the 
Food and Agriculture Organization of the United Nations. We know of some 
of the work FAO is doing in the technical assistance field, and dollar for 
dollar expended, FAO is perhaps getting a better job done than is the United 
States bilateral technical assistance program. 

The Food and Agriculture Organization has, as you know, a regular budget 
of about $6 million, of which the United States contributes about $1.6 million. 
The authorization for FAO is fixed by Congress at $2 million. We believe con- 
sideration should be given to increasing this authorization. 

In recent years the FAO has been carrying on what is commonly referred to 
as the expanded technical assistance program. The United States contribution 
to this expanded program is about $16 million annually. This represents about 
56 percent of the total program. 

There has been a recent move to centralize the allocation and use of these 
funds in the United Nations. We believe that FAO is more familiar with the 
needs for technical assistance in agriculture and that this program should be 
directed and the funds utilized by FAO, with sufficient coordination between 
agencies to avoid duplication of effort. 

The United States has contributed dollars, at first on the basis that its con- 
tributions should not exceed 60 percent of the total contributed by all govern- 
ments and now on the basis that it should not exceed 50 percent of the total. 
This type of contribution arrangement is the same as that used for emergency 
or temporary U. N. programs such as those for relief of Korea or for Palestine 
refugees. It was never contemplated, however, that multilateral technical coop- 
eration programs would be temporary. 

In the light of the experience with the operation of these programs on this 
basis over the past 6 years, it is considered essential that they now be placed 
on the same basis of contribution and operation as are the regular programs of 
the international organizations such as WHO and FAO which have, up to now, 
been operating these programs. The arrangement of voluntary contributions 
with the United States contributing 50 to 60 percent of the total was perhaps 
useful as a means of getting the programs underway and accepted by the 
other member countries, particularly the underdeveloped countries. However, 
it is clear now that these programs have become well accepted that the disad- 
vantages of voluntary contributions to a si)ecial U. N. account far outweight what- 
ever the initial advantages might have been. The disadvantages of continuing 
these programs on a voluntary basis are : 

1. The fact of the programs' being established on a voluntary basis means 
that their continuity and level of operation is at best tenuous. Any government 
at any time may fail to make its annual pledge for the operation of the pro- 
grams and may fail to pay up on its pledge at any time. This makes sound 
forward planning and effective operation of the programs difficult if not 
impossible. 

2. The fact of contributions being made in nonconvertible currencies or in 
services or materials on the basis of credits in domestic currencies also severely 
limits effective operations and forces the operating organizations into all man- 
ner of extra and undesirable efforts in order to find ways to utilize these un- 
satisfactory contributions. One of the prime examples of this is the problem 
presented by the contribution over the past 3 years of Russian rubles. Because 
these are nonconvertible it means in effect that they can be utilized only for 
Russian technicians. Russian equipment, or for fellowships in Russia. There 
are similar problems with other currencies including blocked Australian pounds 
and many others. 

3. In addition to these financial disadvantages, there are many administra- 
tive disadvantages which have resulted in large part from the establishment of 
contributions to multilateral technical cooperation programs on the basis of a 
special account set up by the Secretary General of the U. N. with allocations 



2990 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

from that account made to the operating organizations. This is contrary to the 
regularly established arrangements for contributions to the specialized agencies 
of the U. N. system such as FAO and AVHO whereby contributions are made 
by member governments directly to these organizations. The establishment of 
the special account set up by the Secretary General has lead to efforts on the 
part of member governments of the U. N. Economic and Social Council and 
General Assembly to have control over the content of the programs and dis- 
bursement of the funds placed in those bodies rather than in the governing 
bodies of the operating organizations. This has meant friction between these 
various bodies and has lead to a warping of the process of program development 
in order to facilitate the establishment of control over these programs by the 
U. N. bodies. For example, under the latest set of procedures established by 
these U. N. bodies programs are developed by countries receiving technical 
assistance and are approved by the U. N. bodies without approval of the gov- 
erning bodies of the operating organizations. The disadvantage to this proce- 
dure is that the operating organizations have the technical competence which 
should be the determining factor in the development of these programs, whereas 
the representatives of member governments on the U. N. bodies represent inter- 
national political rather than technical interests. 

In view of these disadvantages and in order to provide for the continuation 
on a sound long-term basis of those aspects of the technical cooperation pro- 
grams which have proved worthwhile in the experience of their 6 years of 
operation, it is necessary that the basis of operation be transferred from that 
of volvmtary contributions to a special account to that of contributions on a 
regular basis. 

The advantages of transferring the administration of these programs to a 
regular basis are that this would overcome each of the disadvantages listed 
above. Contributions to international organizations on a regular basis are 
made by member governments to the organizations such as FAO and WHO, 
which were established to carry on technical programs. These contributions 
are made on the basis of a scale of contributions which is agreed to in advance 
by the member governments and are made in currencies which are usable for 
program purposes or are convertible to currencies which can be freely used in 
the operation of the program. Sanctions are provided in the financial regula- 
tions of these organizations to insure that member governments pay their 
contributions within a reasonable period. This system of contribution pro- 
vides an adequate degree of assurance to the international organizations to 
permit it to plan and develop sound programs on a continuing basis and it 
places contributing member governments on a relatively equitable footing. This 
is in contrast to the present voluntary system of contribution which puts the 
United States, for example, at a relative disadvantage in regard to govern- 
ments which are free to contribute any amount they see fit in soft currencies 
or in services or materials. 

The administrative advantages of transferring the operation of these pro- 
grams to a regular program basis are that this would place the determination 
and control of the programs in the hands of the technically competent govern- 
ing bodies of the operating organizations ; it would do away with the necessity 
of duplicate sets of books and other administrative requirements. 

In general, transfer of the present basis of operation of these programs to a 
regular basis of operation would mean sounder, more constructive, and more 
effective programs operated with a greater total efficiency. For programs thus 
established the regular coordination machinery of the U. N. system would 
be adequate to insure integrated operations and at much less cost than the 
overdeveloped centralized administrative structure which has grown up through- 
out the operation of the present centralized fund. 

We recommend that the Congress indicate clearly its desires in connection 
with the expanded technical assistance program and that the money appro- 
priated by the United States for this purpose be distributed to the specialized 
agencies. We believe it is sound policy for the Congress to indicate its desires 
with regard to the expenditure of these funds. 

Over the long period we believe it wise to consider a reduction of funds for 
the so-called expended technical assistance program in FAO and a gradual 
increase in the regular funds available for FAO. This would give other nations 
an opportunity for further participation in the expanded program and would 
permit better planning and administration. We recommend that Congress 
give consideration to this matter. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2991 

We believe that a joint resolution stating the policy of Congress with regard 
to the participation of the United States in multilateral technical cooperation 
programs would be very helpful. We have had meetings with farm organiza- 
tions and other interested groups and believe that a joint resolution, attached 
to this statement, would help clarify the situation. 

Joint Resolution Stating the Policy op the Congress on the Paeticipation 
OF THE United States in Multilateral Technical Cooperation Programs 

Resolved iy the Senate and House of Representatives of the United States of 
America in Congress assembled, That the participation of the United States in 
multilateral technical cooperation programs shall be on the same basis as the 
participation of the United States in the regularly established and budgeted 
activities of the international organizations which operate such programs and of 
which the United States is a member. 

Sec. 2. In adopting this joint resolution, it is the sense of the Congress that the 
Government of the United States should use its best efforts to bring about, as 
soon as practicable, and in any case no later than the end of calendar year 1957, 
the transfer of operations of multilateral technical cooperation programs from 
the basis of the United Nations expanded program of technical assistance to the 
same basis as the regularly established programs of the international organiza- 
tions which have participated in the expanded program, so that contributions 
for multilateral technical cooperation from each member government will be 
made to each international organization carrying on such activity in the same 
manner as contributions for regularly budgeted activities of the organizations, 
and so that the programs of multilateral technical cooperation administered by 
these oragnizations will be reviewed and determined by the representatives of 
their member governments in the same manner as their regularly established pro- 
grams. It is further the sense of the Congress that the participation of the 
United States in any multilateral programs of a nonemergency nature for eco- 
nomic development or for other purposes, which operate now or which may be 
proposed in the future, shall be on the same basis as its participation in the 
regularly established activities of the international organizations that may be 
proposed to have a part in carrying on such programs. 

Sec. 3. In adopting this joint resolution the Congress does so with the under- 
standing that, in the transfer of operations of multilateral technical cooperation 
programs to the same basis as the regular programs of the international organi- 
zations operating these programs, the Government of the United States should 
secure the adoption by the governing organ of each such international organiza- 
tion of a precise statement of the purposes, objectives, and methods of these 
programs appropriate to each such international organization to insure that the 
programs will operate in a coordinated and integrated manner and that the pro- 
grams will be susceptible of achieving meaningful progress toward defined objec- 
tives. The Congress also understands that the basic objectives of the programs 
will be stated as being to assist member governments to establish the services 
necessary to enable their people to improve their industrial and agricultural 
livelihood and well-being and their health, education, condition of labor, and 
general welfare. 

National Council of Farmer Cooperati\'es, 

Washington, D. C, March 1, 1958. 

Statement on Expanding Technical Assistance Concerning FAO Before 
Subcommittee on International Organization^ and Movements of the 
House Foreign Affairs Committee 

The National Council of Farmer Cooperatives has traditionally been in favor 
of the Food and Agriculture Organization and has supported its worli in the 
technical-assistance field in foreign countries. The program has been partici- 
pated in by member countries on a growing basis and the work has been generally 
acceptable and constructive. 

We are concerned, however, that the expanded technical-assistance program 
which has been grafted upon the regular program of FAO, appears to have in- 
jected some very unhealthy issues into the operation of FAO. We refer par- 
ticularly to the fact that there has been developed 2 separate sets of criteria, 
programs and program controls — 1 for the regular work program of FAO and 
1 for the expanded work under control of ECOSOC. Yet both areas of work 



2992 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 

activity are one and the same pi-ogram. With the expanded program on a basis 
of voluntary contributions, it is difficult to plan continuity and to establish 
permanent levels of operation, which makes effective operation extremely un- 
certain and dependent to an inordinate degree on United States contributions. 
While ours is the major contribution there can be no effective guidance or 
impact upon the program because of the interposition of ECOSOC and the 
U. N. between our contributions and final use. 

The administrative disadvantages of a special account for the expanded pro- 
gram, set up on the basis of control by the Secretary General of the United 
Nations with arbitrary allocations to that account made to operating organiza- 
tions, clearly lays the basis for ultimate controls of their programs and opera- 
tions by an international political organization with no competence in the tech- 
nical field. FAO is a technical organization and should be operated by trained 
technicians, not only as to program decisions but their implementation. 

There have already been efforts, we understand, on the part of member 
governments of ECOSOC and the United Nations General Assembly, to secure 
control of the programs and disbursement of funds rather than continue them in 
the governing bodies of the operating organizations. This has led to friction 
within these bodies and between them. For example, under the current pro- 
cedures established by these U. N. bodies, countries receiving technical assistance 
develop the programs and they are approved by the U. N. bodies without the 
approval of the operating organizations. This injects international jwlitical 
considerations rather than those of a technical nature. 

Further, there is required a very foolish procedure of having to maintain 2 
sets of administrative and financial operations as well as 2 sets of advisory 
and reporting relationships. Yet, these technical bodies carry out 1 rather than 
2 programs, and divisions as mentioned above tend to maintain an entirely 
fictitious and useless basis for operation. 

In view of all these disadvantages, and so that continuity on a sound long- 
term basis of these technical cooperation programs may be provided, we believe 
it to be necessary that the basis of operation be transferred from that of 
voluntary contributions to a special account in the United Nations, to one of 
participating countries making contributions on a regular and foreseeable basis 
to FAO. This would eliminate many of the disadvantages listed and would 
keep the control of technical programs in the hands of technically trained people 
without dominance by international politics, and would permit of sound forward 
planning. 

Contributions, moreover, should be made in currencies which are usable for 
general purposes or which are convertible and thus freely available in the opera- 
tion of the program. This would eliminate the situation of Russian contributions 
which are made in rubles which are inconvertible and therefore usable only for 
payment to Russian technicians. 

Generally, a transfer of the present basis of dual operation to the regular 
basis we propose, would mean far greater efficiency and devotion to practical 
food and agriculture projects. The regular coordinating machinery of the 
U. N. is regarded as adequate to safeguard integrated operations and to avoid 
duplication. 

Statement by Francis O. Wilcox, Assistant Secretaby of State for Interna- 
tional Organization Affairs, July 24, 1956, Re the United Nations Expanded 
Program of Technical Assistance 

Mr. Chairman, I am grateful for the opportunity to come here today to 
endeavor to help set the record straight with respect to the origins and nature 
of the U. N. expanded technical assistance program. This program has proved 
to be one of the most successful operations of the specialized agencies of the U. N. 
system, as well as of the U. N. itself. Suport of the program has become an 
important element in American foreign policy. 

I note that the three farm organizations, in their letter to Senator Eastland of 
May 4, 1956, stated that certain information provided by them on the origins 
of his program "seems to provide the basis for concern as to the internal- 
security implications of some of the developments in this field." 

I also note that the farm organizations themselves state that they "cannot 
determine what conclusions, if any, are justified" from this information. I am 
anxious to help you in any way that I can to investigate this matter. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2993 
POINTS ARISING OTTT OF DOCUMENTATION 

The documentary information supplied by the 3 farm organizations seems, on 
its face, intended to establish 4 principal points : 

(1) that the new technical assistance program was established in in- 
herent violation of the U. N. Charter and the constitutional purposes of the 
various agencies of the United Nations system ; 

(2) that the Soviet Union favored a technical assistance program based 
on a central U. N. fund, with the hope that they might dominate it ; 

(3) that the United States position in favor of a technical assistance pro- 
gram based on a central fund was influenced by certain pro-Communist 
■elements in the U. N. ; 

(4) that this United States position was the result of State Department 
■decisions taken without adequate consultation with the other interested 
departments and agencies of the United States Government ; 

With respect to other points that arise from the documents furnished by the 
three farm organizations, I shall be glad to deal with as many of these in such 
manner as the committee may desire. 

I. CONTENTION THAT EXPANDED PROGRAM IS IN VIOLATION OF U. N. CONSTITUTIONAL 

ST STEM 

The information furnished by the farm groups contends that the expanded 
technical assistance program, based on a central fund and including the United 
Nations as one of the participating organizations, is inherently in violation of 
the U. N. Charter and constitutional purposes of the U. N. system. I cannot 
subscribe to this contention. My reasons are as follows : 

1. U. N. Charter encompasses technical assistance 

The documentation of the farm groups makes the point that, although technical 
assistance was expressly provided for in the constitution of the Food and 
Agi'iculture Organization and certain other specialized agencies, it was not 
expressly provided for in the Charter of the United Nations. 

It is true that the words "technical assistance" are not in the charter but a 
good deal else is there. Article 1 sets forth the purposes of the United Nations. 
Among these purposes, in paragraph 3, is included the following : "To achieve 
international cooperation in solving international problems of an economic, 
social, cultural, or humanitarian character * * *." Paragraph 4 goes on to 
state that the United Nations should "* * * be a center for harmonizing the 
actions of nations in the attainment of these common ends." Under article 55, 
it is provided that "* * * the United Nations shall promote (a) higher stand- 
ards of living, full employment, and conditions of economic and social progress 
and development; (&) solutions of international, economic, social, health, and 
related problems ; and international cultural and educational cooperation * * *." 
Article 66, paragraph 2, is more specific. It provides that the Economic and 
Social Council "may, with the approval of the General Assembly, i)erform 
services at the request of members of the United Nations and at the request of 
specialized agencies." The technique of technical assistance has proved to be 
one of the genuinely constructive means of international action in the field of 
economic development. The institution of technical assistance progi-am under 
the United Nations constitutes a concrete measure designed to carry out the 
broad purposes of the United Nations as set out in the charter. 

I have had occasion, in the cour.se of the last 11 years, to give some attention 
to the meaning of the charter. I am not aware that the restriction suggested 
in the farm group documentation has been significantly advanced in any other 
quarter. On the contrary, as the documentation makes clear, member govern- 
ments of the U. N. have voted by very large majorities for a number of resolutions 
specifically authorizing the Secretary General of the U. N. to undertake technical 
assistance activities. 

2. U. N. technical assistance is in fields not assigned to specialised agencies 
The specialized agencies were given responsibility for certain definite fields 

of activity, such as agriculture, health, education, and labor. But, as interna- 
tional interest in economic development grew, it soon became evident that 
certain other fields of great importance to economic development did not fall 
within the orbit of any one of the specialized agencies. Chief among these fields 
was that of industrial development — a matter of great interest and significance 
to the underdeveloped countries. Also outside the jurisdiction of the existing 



2994 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 

specialized agencies were such other areas as development of natural resources, 
surface transportation, public administration, and community development — all 
of these vital components of any program of economic development. It seemed 
wholly logical, therefore, that the United Nations should have been assigned 
authority to furnish technical assistance in these areas, which no specialized 
agency was constitutionally responsible for. 

3. U. N. has clearly established coordinating role 

The role of the United Nations as a coordinating agency was, of course, clearly 
established by the charter. When the charter was drafted, several specialized 
agencies, including the FAO, were already in existence. Others were contem- 
plated. To those drafting the charter it was obvious that the United Nations 
had to be assigned a definite coordinating role. Otherwise the effectiveness of 
the specialized agencies would have been seriously threatened by overlapping 
or duplication of activities. One of the main purposes of chapters IX and X of 
the charter was to establish this role of coordination. Specifically, article 58 
provided that the United Nations "shall make recommendations for the coordi- 
nation of the policies and activities of the specialized agencies" ; article 60 vested 
responsibility for the discharge of this and other functions "in the General As- 
sembly and, under the authority of the General Assembly, in the Economic and 
Social Council" ; article 63, paragraph 2, provided that the Council "may coordi- 
nate the activities of the specialized agencies through consultation with and 
recommendations to such agencies and through recommendations to the General 
Assembly and to the members of the United Nations"; and finally article 64, 
paragraph 1, provided that the Council "may take appropriate steps to obtain 
regular reports from the specialized agencies." Within the framework of these 
broad provisions, the mechanism of the new technical assistance progi-am could 
be fitted. 

The specialized agencies must have reached precisely the same conclusion. Ex- 
cept for the International Bank and the International Monetary Fund (which 
had particular reasons of their own for not joining), these agencies— including 
the FAO — joined the program pursuant to their own constitutional processes 
and have rendered distinguished service within it ever since. In other words, 
the alleged constitutional difficulties and improprieties that the farm gi'oups 
have subsequently discovered did not seem to be weighty arguments with either 
the agencies or their member governments. 

/f. U. N. constitutional authority sufficient to cover new technical assistance pro- 
gram 
In the face of the lisiug interest in economic development that became evident 
soon after the beginning of the United Nations, the members of the U. N. took 
steps to use the constitutional authority which had been given to the organization. 
The U. N. undertook technical assistance activities of its own in fields not assigned 
to the specialized agencies. With the consent of the agencies, it very naturally 
became the point at which the coordinating mechanism of the new program rested. 
The fact is that the United Nations, and the specialized agencies acting with it, 
did precisely what had to be done, by moving forward together, under full consti- 
tutional authority, to deal in a businesslike way with a problem that concerned 
them all. 

II. CONTENTION THAT SOVIET UNION FAVORED A TECHNICAL-ASSISTANCE PEOGRAM 

BASED ON A CENTRAL U. N. FUND 

The second contention made in the documentation is that the Soviet Union 
was in favor of a technical-assistance program based on a central U. N. fund, 
with the hope that they might dominate it. It seems to us, Mr. Chairman, that 
on this point the documentation which has been furnished fails to make its case. 

1. Soviets opposed new machinery 

The ninth session of the Economic and Social Council, held in Geneva from 
July 5 to August 15, 1949, is the point at which the basic resolution of the expanded 
program was drafted. It is at this point, therefore, that we can best ascertain 
just what the governments' members of the Council wanted to accomplish. 
Among these governments in 1949 were the Soviet Union, Byelorussia, and 
Poland. On four separate occasions, the Soviet representative, Mr. Arutiunian. 
plainly stated that his Government did not favor the creation of any new 
International machinery for technical assistance, but thought that existing 
machinery would be adequate for the purpose. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2995 

On July 26, 1949, in the general debate during which each delegation put forward 
its fundamental ideas as to how the new technical-assistance activities should 
be organized, the official records record the views of the Soviet representative 
on page 397, as follows : 

"The Soviet Union delegation considered that the present machinery of the 
United Nations and the specialized agencies was already sufficiently complex, 
and that existing organs for international cooperation could furnish the United 
Nations with all the technical information required. With regard to the advan- 
tages of a single fund to finance the technical assistance program, he believed 
that that question had not yet been sufficiently studied. On the whole, he inclined 
to the view that each of the specialized agencies should continue to provide what 
assistance it could within the limits imposed by its terms of reference and budget. 
Ample scope would still be left to the Council, which had been entrusted by the 
General Assembly with overall responsibility for the programme." 

Following the general debate, the technical-assistance item was referred to the 
Economic Committee of the Council. When the draft plan came back again to 
the plenary body, the Soviet representative expressed himself three more times 
along the lines indicated above: on August 14 (pp. S59-S60) ; on August 15 (pp. 
903-904) ; and again at a second meeting on August 15 (p. 912). 

It is thus clear that the Soviet Union, at the very beginning of and throughout 
The discussion, was opposed to the fundamental concept of the expanded program. 
This is a conclusion wholly at variance with what is suggested in the documenta- 
tion supplied to this committee. 

2. Soviet bloc favored technical assistance in the field of industrialization 
The Soviet bloc, although strongly opposed to a centrally administered techni- 
cal assistance program in general, nevertheless pressed heavily for technical 
assistance in the industrial field, to be administered hj the United Nations. As 
the Polish delegation put it, the economic development of underdeveloped coun- 
tries should be "for the purpose of developing their national industries including 
the development of heavy industry, metallurgy, machine tools, chemicals, the 
construction of powerplants, etc." (Official Records; Annex, p. 119; Document 
E/1542.) The industrial area was the field which the United Nations itself 
would undertake. When the Soviet Union first offered a contribution to the 
technical assistance program in 1953, they sought to have their contribution go 
only to the United Nations, and none of it to the specialized agencies. The 
Soviet Union and its satellites have thus consistently favored separate contribu- 
tions to separate agencies in order that they themselves may make their whole 
contribution to those segments of technical assistance which would, from a 
propaganda standpoint, be most likely to appeal to the underdeveloped countries 
with their primarily agricultural economies. 

3. Soviets later favored strong governmental control in U. N. 

As soon as it became evident that, contrary to the original Soviet position, 
the new plan was to be based upon a central fund, with both a Technical Assist- 
ance Board (made up of officials of the agencies involved), and a Technical 
Assistance Committee (made up of government representatives), the Soviets 
introduced amendments to strengthen the Technical Assistance Committee in 
relation to the Technical Assistance Board. The purix)se of this seems obvious : 
To provide for themselves a place in the continuing, and even day-to-day 
administration of the program, even with respect to programs of specialized 
agencies of which they were not members. Soviet amendments to accomplish 
this purpose were rejected, and I want to emphasize that the United States was 
included in those voting against. 

4. Soviet position rvas thus one of extremes 

The Soviet position on the organization of the new program was thus one of 
extremes. Although they opposed the new program and the central fund to 
begin with, they later switched over to become extreme centralists. At each 
stage, they were opppo.sed by the United States, which held to a consistently 
middle-of-the-road position. 

I should like to submit for the record at this point a series of excerpts from 
the official records of the ninth session of the Economic and Social Council, 
which illustrate the attitude of the Soviet countries toward this program in 1949. 



2996 SCOPE OF SOVIET ACTIVITY IX THE UNITED STATES 

III. CONTENTION THAT CERTAIN ELEMENTS IN THE U. N. INFLUENCED THE: 

UNITED STATES POSITION 

The next point with which I should like to deal is the charge that the United 
States policy in favor of a technical-assistance program based on a central fund 
was influenced by the activities of certain individuals in the United Nations, in- 
cluding David Weintraub. In answer to this contention, I should like to advance 
the following considerations. In this connection I should like to point out that 
very naturally many different people held many different views as to the way 
in which the new t( ihnical-assistance program might be organized within the 
system of United Nations agencies — in New York, in Washington, and elsewhere. 

1. Views in the international agencies 

Since the Charter had given to the U. N. overall coordinating responsibilities, 
including relations with the specialized agencies, U. N. oflBcials were naturally 
concerned with their responsibilities when discussions of the new program began. 
It was their constitutional duty to devise ways and means of maintaining a 
proper balance in the new movement for economic development. It was wholly 
desirable, therefore, that plans emphasizing an effective coordinating role for 
the U. N. should have been prepared by U. N. officials. It was perhaps to be ex- 
pected that many officials of the specialized agencies should take a different 
view, and that their planning sometimes emphasized the autonomy of the spe- 
cialized agencies. 

2. Views in the United States Government 

To the extent that there was pulling and hauling in the executive branch over 
this issue, it was natural that some persons in some of the United States Federal 
departments concerned with specialized fields should have tended to view eco- 
nomic development from the standpoint of their own specialties. It was equally 
natural that the State Departpent, with responsibilities for foreign policy as a 
whole, should have tended to favor technical-assistance activities being carried 
on within the framework of a single, coordinated program. Very much the same 
problem has arisen from time to time within the United States Government, in 
the organization of our own bilateral aid program. 

5. A single official could not have dictated the U. N. plan 

In any case, so far as the U. N. is concerned, it is unreasonable to suppose 
that a single official, of intermediate rank, could have led the U. N. as an insti- 
tution to his way of thinking if the top officials of the U. N. had not themselves 
agreed with him. Even after the report of the Administrative Committee on 
Coordination was finalized in May 1949— with its strong reflection of specialized 
agency thinking — the Secretary General of the United Nations stated his own 
view in favor of a single-fund technical-assistance program. Mr. Tryg^-e Lie had 
very definite ideas of his own on matters affecting the U. N. He had personally 
presided over the meetings of the Administrative Committee on Coordination, 
where this subject had been thoroughly discussed by his colleagues, the Directors 
General of the specialized agencies. It is difficult to believe that the views of a 
sul)ordinate, 2 or 3 levels down, could at this stage have talked Mr. Lie into 
something other than Mr. Lie himself believed. 

J/. A single indirifJiKil in the U. N. could not have determined United States- 
Government policy 
It is equally impossible to ."suppose that a single U. N. official could have 
significantly altered the views in the T'nited States Government to a position 
different from what they would otherwise have been. Too many people were 
involved. In the State Department, perhaps 20 officials were actively concerned 
with the development of the new arrangements. From other dei)artments, there 
were many more. A specially creater interdepartmental committee, the Advis- 
ory Committee on Technical Assistance, met regularly to consider issues arising 
with respect to both the bilateral and multilateral programs. Another inter- 
departmental committee, the Executive Commitee on Economic Foreign Policy, 
wih its subcommittee, the United Nations Economic Subcommittee, had juris- 
diction over the preparation of position papers to serve as instructions to United, 
States delegations to meetings of U. N. bodies. In both these committees, all 
interested United States Federal departments and agencies were represented. 
A middle-level official of the United Nations could not singlehandedly have 
altered the massive concensus that eventually constituted the United States 
position. 



SCOPE OF SOVIET ACTR^TY IN THE UNITED STATES 2997 

5. Frequcncii of consultations between United States Oovernmcnt and Interna- 

tional agencies 

The docmnentation supplied by the fax-in organizations refers at several 
points to consultations early in 1949 between U. N. and United States otficials. 
If we could fully reconstruct the record, it would show a great many such con- 
sultations. They were carried on then ; they are carried on today — not only 
with the U. N. but also between United States Federal departments like the 
Department of Agriculture, and specialized agencies like the FAC. Such con- 
sultations are necessary and they are encouraged. In 1949, given the impor- 
tance and impact of President Truman's proposals, it would strain credulity 
to believe that there would not have been immediate and frequent contact be- 
tween Washington and New York, as well as between Washington and the 
headquarters of the specialized agencies. 

6. No change in United States Policy since 1953 

David Weiutraub. who is specifically mentioned in the documentation, resigned 
from the United Nations in 1953; but the views of the United States Govern- 
ment toward the expanded program have not substantially altered since that 
date. Furthermore, since that date a new administration has searchingly ex- 
amined the workings of the expanded program. In 1954, for example, the 
United States supiJorted a modified version of a French proposal, to do away 
with the percentage allocation of funds to the specialized agencies and to depend 
instead upon the needs and wishes of recipient countries for programs in various 
subject-matter areas. This development in 1954 provoked a considerable amount 
of discussion within the executive branch. The three farm organizations which 
have filed papers with your committee protested strenuously ; they entered into 
extended consultations with State Department officials upon this subject. Be- 
fore the General Assembly session in the fall of 1954, the United States position 
to vote the approval of the new plan required a decision at the highest level of 
the Government. In October 1954, the matter was brought to the Cabinet upon 
the basis of a carefully prejiared paper ; and this paper was circulated in ad- 
vance to the members of the Cabinet. After discussion in the Cabinet, the 
United States position was decided for the executive branch by the President. 

7. Soviet riens icere at variance with those advanced iij the U. N. 

The farm group documentation suggests that the views of cert^ain U. N. officials 
who are pictured as having been unduly influential in Washington, were them- 
selves heavily influenced by the views of the Soviet Union. But, as we have 
seen, Soviet views on the basic organization of the program were wholly at 
variance with the views that these U. N. officials were advocating. In view 
of this simple fact, the argument made in the documentation falls to the ground. 

IV. CONTENTION THAT UNITED STATES POSITIONS WEKE FORMULATED IN THE STATE 
DEPARTMENT WITHOUT ADEQUATE CONSULTATION WITH OTHER INTERESTED FEDERAL 
DEPARTMENTS 

I should now like to deal with the contention that United States positions in 
1949 concerning the origins of the technical-assistance program were State 
Department positions and not adequately checked with the other agencies of this 
Government. 

1. The United States interdepartmental consultative system 

It is a well-established practice in the State Department, and of the Bureau 
of International Organization Affairs (for which I am now responsible), that 
positions put forward in meetings of the U. N. or in any one of the specialized 
agencies must be, so far as possible, fully representative of the views of the 
Government as a whole. Full consultation with all interested Federal depart- 
ments and agencies is constantly carried on to effect a genuine and government- 
wide consensus. This was true in 1949, and it has been true continuously since 
the inception of the U. N. system. 

This consultative process is conducted informally by telephone and ad hoc 
meetings ; and formally by a regular system of interdepartmental committees. 
Basic to the committee system is the advance circulation of numbered docu- 
ments, so that each department is informed of what is coming up at meetings 
and has opportunity to express its views. 

I might add that it is curious to note that criticism on this score comes from 
the fann organizations, who cannot so soon have forgotten the unusual lengths 
to which our staff went, in the fall of 1954, to agree upon specific language with 



2998 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

the farm organizations before our final instructions went to the United States 
delegation to the General Assembly, in New York. 

2. United States positions on technical assistance in 19^9 were fully checked 
u'ith other departments 

At the two sessions of the Economic and Social Council in 1949, the United 
States positions on technical assistance grew directly out of the interdepart- 
mental consultative process which has just been described. The regular mecha- 
nism for the clearance of position papers for United States delegations to inter- 
national meetings was a subcommittee of the Executive Committee on Economic 
Foreign Policy. Specially created for the consideration of technical-assistance 
problems, after the President's speech of January 20, 1949, was the Advisory 
Committee on Technical Assistance, which concerned itself with technical-assist- 
ance i)roblems of both an operational and an administrative nature in both the 
bilateral and multilateral areas. These two committees had as their members 
all interested departments and agencies. 

As was to be expected, in the spring of 1949, following the President's pro- 
posals, discussions in Washington were active and voluminous ; and both the 
above-mentioned committees were much concerned with the emerging technical- 
assistance problems. The farm group documentation states that the United 
States FAO Interagency Committee was not brought in on this problem. How- 
ever, the Department of Agriculture, along with other interested departments, 
was a member of both the committees mentioned above ; and the views of all 
interested agencies (though they sometimes differed) were constantly exposed, 
through the consultative process, to the views of other agencies. It is difficult 
to conceive of means by which the establishment of a United States position 
coidd have been more equitably and conscientiously carried out. The United 
States representative to the eighth and ninth sessions of the Economic and 
Social Council received and carried out instructions which fully and fairly re- 
flected the consensus of the United States Government. 

V. THE EXPANDED PROGRAM HAS RECEIVED WIDE SUPPORT BOTH IN THE UNITED 

STATES AND INTERNATIONALLY 

I would like to suggest that it would be helpful for the committee to view this 
whole problem in a somewhat broader perspective. It is very significant to note 
that the expanded program has received very wide support both at home and 
abroad, 

1. Executive "branch 

I have already stated that United States participation in the expanded pro- 
gram has been subjected to searching scrutiny in the executive branch — not only 
in the State Department but also in the Bureau of the Budget, the International 
Cooperation Administration, and other departments and agencies. I have also 
stated that in 1954 a particular question involving the so-called centralization 
issue was decided by the President after all interested departments had had an 
opportunity to be heard. 

2. The Congress 

The Congress, too, examines the expanded program regularly and conscien- 
tiously each year when request is made for funds for the annual United States 
contribution. The Senate Foreign Relations Committee and the House Foreign 
Affairs Committee hold hearings and make recommendations on authorizing 
legislation. The Appropriations Committees of both Houses also examine the 
record annually. From this process has come a regular appropriation of funds. 

All congressional committees have regularly expressed concern over the possi- 
bility of overlap and duplication with our own United States bilateral progi-am. 
Coordination with our bilateral program, which is, of course, highly centralized, 
demands an effective coordination mechanism in the United Nations program. 
There is no doubt but that congressional committees, have on the whole, very 
much favored a vigorous coordination mechanism in the U. N. program. 

The Senate Foreign Relations Committee established in 1954 a Subcommittee 
on Technical Assistance Programs which held exhaustive hearings on both bi- 
lateral and multilateral activities. At these hearings, the farm groups and other 
private organizations testified. The report of the subcommittee was issued by 
the Senate Foreign Relations Committee on May 7, 1956. This report stated that 
the "United States should continue its support of the United Nations expanded 
technical assistance program." It is significant to our discussion this afternoon 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 2999 

that the subcommittee also took the position that the trend toward centralization 
"has had a salutary effect in administration of the U. N. program." The subcom- 
mittee recommended that "United States representatives in the various U. N. 
agencies concerned support further moves in this direction." 

I should like to submit for the record a series of excerpts from the studies 
and reports of this subcommittee, concerning the expanded program. 

These views, which have been reflected in the reports of various congressional 
committees, obviously deserve careful consideration. Certainly those who ad- 
vocate further decentralization would do well to consider their merits and the 
sources from which they come. We in the executive branch are doing our 
utmost to see that the present machinery operates with a maximum of efficiency, 
so that these legitimate demands for coordination are met without in any way 
jeopardizing the autonomy or the efficiency of the specialized agencies. 

S. Private organizations 

The expanded program has received very careful attention from many private 
organizations in the United States. The great majority of these organizations 
have found the program to be an extremely important part of U. N. activity, 
which deserves strong United States support. A few organizations have been 
relatively silent with respect to this program. So far as I am aware, only the 
three farm organizations have opposed it. 

4. Specialized agencies 

So far as the U. N. and the specialized agencies are concerned, the strains 
and stresses of a few years ago have been very largely eliminated. The most 
recent information from Geneva emphasizes the point. 

Less than 3 weeks ago, the United States representative at the Technical 
Assistance Committee asked the representatives of the specialized agencies 
whether or not they felt that any fundamental change was required in the 
organization of the United Nations technical assistance program. The si)ecial- 
ized agencies unanimously replied in the negative. I regard the answer of the 
FAO as especially significant. I would like to quote one paragraph from this 
statement and submit the whole statement for the record. 

"We in FAO are satisfied, however, that the present procedure for the opera- 
tion of the program can adequately safeguard the various principles which I 
have mentioned and we feel that it would be most undesirable to undertake 
at this stage a fundamental change in the present setup." 

We fully subscribe to this statement. The FAO representative does not close 
the door to changes indefinitely ; neither, of course, do we. He sees the possi- 
bility of procedural improvements at all times ; and so do we. But he says 
plainly that his organization is opposed to fundamental changes at this stage 
in the present organization of the program. This, too, we endorse 100 percent. 

I think this demonstrates clearly, Mr. Chairman, that the specialized agencies 
who have day-to-day responsibility for the administration of this program, are 
satisfied with it ; and that they do not want it either fundamentally changed 
or abolished. 

On this aspect of the question raised by the farm organizations, I should like 
to introduce for the record a statement which I made on June 25, 1956, before 
the Subcommittee on International Organizations and Movements of the House 
Foreign Affairs Committee. The statement is pertinent to our topic, and I 
would appreciate it if you would permit it to appear as part of my testimony. 

VI. CONCLUSIONS 

In conclusion, Mr. Chairman, I hope I have succeeded in showing that the four 
contentions arising out of the documentation submitted by the farm groups 
are quite without foundation. 

First, there can be no doubt that the expanded program, today one of the 
most significant activities of the United Nations and the participating specialized 
agencies, is completely consistent with the provisions of the U. N. Charter and 
the constitutions of the specialized agencies. 

Second, the Soviet Union, whose undue influence has been alleged, was ac- 
tually opposed to the expanded program when it was first proposed. Since that 
time, the Soviet Union has given the program only meager support, and has 
been quite unable to influence its major policies in any significant respect. 

Third, no individual in the United Nations secretariat brought undue or im- 
proper influence to bear upon the formulation of United States policy with re- 

72723— 5.7— pt. 42 9 



3000 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

spect to this program. The United States decision was talsen purely on the 
merits of the case. 

Fourth, United States policy with respect to this program, in 1949 and sub- 
sequently, has always been based on governmentwide positions, adopted with a 
view to bringing the best consensus of the whole Government to bear in what- 
ever international meeting they have been prepared for. 

I have also endeavored to malie a fifth point. The expanded program has 
been carefully observed and examined by a great many people in the executive 
branch, in the Congress, and outside the Government. The overwhelming 
majority of these persons have concluded that the program is fundamentally 
sound and that its full support is very much in the interest of the United 
States. And to this must also be added the testimony of the specialized agencies 
themselves, the operators of the program, wJiich have within the month unani- 
mously expressed themselves as favoring its present type of organization. 

This concludes my formal statement, Mr. Chairman. I shall be glad to go 
more fully into any aspects of the matter which you may wish to explore. 

Mr. Morris. Now, there is one other thing. I know the hour is get- 
ting late. 

Senator Jenner. Yes, we want to conclude as soon as possible. 

Mr. Morris. We have here Mr. Jonathan Mitchell, who has spent 
some time going through Morgenthau Diaries. We have taken out 
many items from the Morgenthau Diaries, particularly as they relate 
to Mr. Coe. I would like to offer them now. Senator, for the record. 

Senator Jenner. AVill you be sworn ? 

Do you swear the testimony you will give before this committee will 
be the truth, the whole truth, and nothing but the truth? 

Mr. Mitchell. I do. 

Mr. Morris. We had Mr. Coe in executive session on this subject. 
I wonder if a good proposal might be for us to offer these for the 
record and let Mr. Coe have them in their entirety again. He spent 
yesterday going through them. 

Mr. Coe. I didn't go through all of them. 

Mr. Morris. I wonder if Mr. Mitchell may put them into the record 
and after they have been put into the record, the record may be avail- 
able to Mr. Coe and he may have some comment to add to them at that 
time. 

]VIr. CoE. Before they go into the record, in view of the fact that now 
there is going into the record documents presumably relating to me in 
some way and we have a preceding record which will be submitted 
with documents which, as far as I can tell, can refer to me in no way, 
but which could be designed to smear, for instance, Adlai Stevenson, 
I wonder if at this time, the record can show that questioning of 
Mr. Coe was now resumed — something to indicate that the foregoing 
has nothing to do with me. 

Mr. Morris. I made it clear that the foregoing had nothing to do 
with Mr. Coe. 

Senator Jenner. I think the record speaks for itself. 

Mr. Morris. Do you want these done now individually, or may we 
not put them all into the record ? 

Senator Jenner. We can put them all into the record. 

Mr. Mitchell. These documents are from the diaries kept by Henry 
Morgenthau, Jr., at the time he was Secretary of the Treasury. They 
consist of transcripts of meetings held in his office, transcripts of tele- 
phone conversations, memoranda supplied to him, letters, and other 
matters which he considered of a significant character. These are 
bound in 864 volumes, and I suggest that we identify them by the book 
number and the page number. 



SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 3001 

Shall I just read off the book numbers and the page numbers ? 

Mr. INIoRRis. Why not just put them into the record in their entirety. 

Mr. Mitchell. These are 13 documents taken from volumes in the 
800's. 

Senator Jenner. They will all go into the record and become a part 
of the official record of tliis committee. 

Mr. CoE. I am afraid that I didn't make it sufficiently clear to the 
Chair that insofar as these documents relate to any activities of mine, 
I shall indeed want the opportunity of discussing the documents and 
those activities as fully as my recollection will permit, and to defend 
every official action which I took, w^hich will mean explaining, so far 
as I now recall, why and how I did whatever it is I did. 

Senator Jenner. Anything further? 

Mr. Morris. I think that is all, Senator. 

Senator Jenner. The committee will stand in recess. 

Mr. CoE. Pardon me, will I have a chance to comment on these docu- 
ments and explain and just file my activities this afternoon? 

Senator Jenner. The record will not be made up by this afternoon, 

Mr. Morris. There will be more than 13, I think Mr. Mitchell has 
13 specific ones in mind but there are at least a hundred bearing on 
your alleged activity. I think we should put all of those as soon as 
possible into the record and as soon as they are in galley form, we 
will send them to you. 

Mr. CoE. Ordinarily, I would certainly want time. I think every- 
body likes a little opportunity to loiow what he is testifying about in 
advance. 

Senator Jenner. Yes ; you didn't have enough time when you had 
them yesterday. 

Mr. CoE. I said so now, but rather than have my innocence of wrong- 
doing in suspense, let us say, for even a few hours or minutes w^hile 
I testify, I will be prefectly willing to have each document submitted 
to me and testify ad hoc and expeditiously. 

Senator Jenner. Of course, the documents are voluminous. They 
are all now in the record. The record will be made available to you. 

Mr. Friedman. By arrangement with Judge Morris, I had Mr. Coe 
come here yesterday to examine the documents about which he was to 
be questioned. He did spend yesterday here, and he examined the 
documents submitted to him, which were 9 in number, 9 of these 13. 
In executive session he was questioned and testified at some length 
about the docimients presented to him there. He is ready to do so 
here. He wants to testify about them, and that is presumably what 
he is here for. 

JNIr. Morris. In the first place, you have said you didn't have enough 
time. In addition to that, we are going to present more than 13 of 
them now, so I think you would want to wait until the whole of them 
is presented. 

Mr. Coe. I prefer to comment as I did in executive sessions on the 
ones I have had opportunity on and speak very raj)id]y and helpfully 
to the committee on all the documents relating to me . 

Senator Jenner. I don't see how we can conclude. It is now 1 
o'clock. The documents are all in the record. I think the only prac- 
ticable way to do it is to put all the documents into the record, making 



3002 SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES 

the record available to Mr. Coe and at some later date make them 
available to Mr. Coe. 

Mr. CoE. Before they are published ? 

Senator Jenner. Oh, yes. 

Mr. CoE. So that I will have a chance to talk about them. 

(Following is the statement submitted to the subcommittee at an 
executive session prior to the public session :) 

Coe Statement 

This subcommittee has announced that it is continuing to investigate th& 
late Harry White, myself, and others. I want the record to contain the fol- 
lowing : 

1. This is no investigation t it is an attempt to keep alive the stale and dis- 
credited charges of Elizabeth Bentley. The FBI has been investigating White 
and his associates for 15 years at least, grand juries for 9 years, and congres- 
sional committees — about 20 — have been so occupied for 8 years. This particular 
subcommittee has devoted 6 years to the matter. In every election year since 
1948 these "investigations" have become feverish. 

2. But none of the eighty-odd persons investigated following their being named 
as spies by Elizabeth Bentley has ever been convicted or tried or indicted for 
espionage. 

3. Why? Because the charges are false, and known to this subcommittee 
to be false. I wish to drop the protection of the fifth amendment and to state 
for the record : 

I was never a spy. 

I am convinced that Harry White was not a spy, and that any notion 
to the contrary is unthinkable. 

I am also convinced that none of the other persons named by Bentley 
were spies. 

4. Brownell, Hoover, and Jenner as chairman of this subcommittee, betrayed 
their ofl3ces when they announced that White and myself were spies. That was 
in 19.53. How dared they brand us criminals when we have never been con- 
victed of crime? How could they even presume to know the truth of what 
they said? We had never received a trial of any sort. Yet these men who 
occupied three of the highest legal positions in our Government staged a hearing 
at which they "convicted" me, as well as numerous other people, of a heinous 
crime. Brownell, our chief law-enforcement officer, thus showed his complete 
contempt for the laws of the land. No other Attorney General in our history 
has been so arrogant. 

5. The American people understand that these spy shows have a political 
purpose. Our people know that there are laws and courts to deal with spies, 
congressional committees stage spy hunts when there are no facts which can 
be presented to a court. The low prestige of Senator McCarthy is clear evi- 
dence that the public is suspicious of Congressmen who try to exploit this subject 
without basis. Perhaps, this subcommittee has thougiit that its spy shows 
were useful in waging the cold war. But surely the committee knows "that the 
cold war is collapsing and that policies will have to be found to insure peaceful 
survival. 

6. This subcommittee should retract its false charges against White, myself, 
and others. That would be simple decency. It would not repair the damage- 
already done, but it would help to restore confidence in our public officials. 

Senator Jenner. We stand in recess. 

(Whereupon at 1 o'clock p. m. the committee was adjourned.) 



INDEX 



Note. — The Senate Internal Security Subcommittee attaches no significance 
to the mere fact of the appearance of the names of an individual or an organiza- 
tion in this index. 

A 

ACC (Administrative Committee on Coordination; see United Nations). P^se 

Adler, Solomon 2888 

Agriculture, Department of 2983, 2997, 2998 

Akroyd, Dr 2928 

Allied Nations 2941 

American Committee on Africa 2975 

American Farm Bureau Federation 2879, 2880, 2887, 2888 

American oil companies 2963, 2964 

American Society of Newspaper Editors 2979 

Are We Right About SUNFED? 2979 

Arnaldo, Mr 2965 

Arutiunian, Amazasp 2960, 2961 

Assembly Acts To Further Economic Development (U. N. Bulletin) 2919 

Atlantic Charter 2941 

Attlee, Prime Minister 2964 

Attorney General 3002 

Axis powers 2941 

B 

Bamboo curtain countries 2961 

Banos, Miss 2910 

Battles, Roy (statement) 2982 

Beeby, Dr. C. E 2904,2940 

Bentley, Elizabeth 2873-2875, 2878, 2887, 2900, 3002 

Berkeley, Mr. C 2965 

Berle memorandum of 1939 2887 

Berle notes 2900 

Biehle. Miss M 2965 

Big Four meeting in Moscow 2893, 2894 

Bjerve Mr, 2910, 2914 

Blusztajn, Mr 2920, 2921 

Borg-Warner Corp., Chicago 2978 

Bretton Woods Monetary Conference in 1944 2887, 2894 

Brinkley, Homer L 2880 

British Petroleum 2963 

Broadlev, Sir Herbert, Acting Director General of Food and Agriculture 

Organization 2882-2884, 2891, 2904, 2933, 2940, 2965 

Broadley document 2883 

Brophy, Mr 2910 

Brownell, Herbert 3002 

Buck, Dr 2928 

Budget Bureau 2891, 2925 

Bunche, Dr 2964 

Bunge, Mr 2912 

Bury, Mr 2941, 2915 

Byelorussia 2994 

O 

CAA 2891 

Caceres, Mr 2926 



II INDEX 

Page 
Caine, Sir Sidney 2931 

Calderone, Dr. Frank 2904, 2940, 2965 

Carnegie Corporation 2964 

Census Training Centers 2931 

Central budget (see also Central fund, etc., under technical assistance) 2891 

Central financing 2898 

Central fund. (See Technical assistance.) 

Centralized appropriation and budget 2897, 2905 

Centralized control by U. N. of the program (technical assistance) 2897 

Cha, Mr 2916, 2921 

Chambers, Wliittaker 2900 

Chernyshev, Mr 2909-2914, 2916-2918, 2920 

Churchill, Prime Minister 2941 

Coe, Charles (Bob) 2887 

Coe, Virginius Frank (testimony of) 2873-3002 

Statement 3002 

Cohn, Roy 2935 

Coidan, Mr 2964 

Colonial peoples 2976 

Colonial powers 2976 

Columbia University 2964 

Commerce Department 2964 

Committee of Contributing Governments 2890 

Communism 2934,2961 

Communist (s) 2874, 

2875, 2878, 2880, 2885, 2887, 2891, 2896, 2899, 2901, 2934, 2963, 2976 

Communist discipline in U. N 2899, 2901 

Communist infiltration of U. N 2890, 2898, 2900, 2902 

Communist penetration of Government agencies 2899 

Communist Party 2874, 2875, 2879, 2887, 2935 

Underground agents of 2998 

Compagnie Francaise 2963 

Conference of Allied Ministers of Education 2894 

Congress 2964, 2975-2979, 2984. 2986-2991, 3000 

Cortez, Alberto Baltra 2907 

Crowley, Leo 2888 

Currie, Lauchlin 2888 

Czechoslovakia 2975 

D 
Dayras, Mr 2912-2915 

Decentralized approach 2905 

Decentralized financing 2892, 2898 

De La Costa, Felix 2931 

De Seynes, Phillipe 2973 

Document dated March 21, 1949 2882 

Draft record of proceedings 2965 

Draft rules of procedure 2964 

DufCus, Ursula 2926 

Dumbarton Oaks 2894, 2941 

E 

Eastland, Senator James O 2879, 2992 

Economic aid program 2977 

Economic Cooperation Administration (ECA) 2908 

Economic development 2903 

Economic Stability and Development, Division of 2897-2900, 

2902, 2904, 2907, 2928, 2931, 2935, 2965 

Current Trade Analysis Section of 2900, 2902 

Unit of 2932 

ECOSOC (Economic and Social Council ; see United Nations). 

ECOSOC, Ninth Session of, Geneva, July 5-August 15, 1949 2994, 2995 

Eisenhower administration 2977 

Eisenhower, President 2963, 2972, 2979 

Eldridge, Hope Dorothy 2902, 2937 



INDEX III 

Page 

Eliott, Dr. F. F 2927, 2928 

ETAP (expanded technical assistance program; see Technical assistance). 

European recovery program 2977 

Evans, Mr. A 2965 

Example of interference with FAO program by U. N. expanded technical 
assistance fund administration 2974 

Example of slanted material provided as "discussion" guide at Point 4 
Information Committee Conference of Non-Governmental Organizations- 2973 

Executive chairman 2896 

Exhibit No. 303— Re V. Frank Coe 2885 

Exhibit No. 304 — Position of Communist nations on centralization of tech- 
nical assistance authority in the U. N 2892 

Exhibit No. 305— David Weintraub and U. N. Expanded Technical Assist- 
ance Fund (Central Fund) (ETAB)__ 2897 

Exhibit No. 306 — Measures for the economic development of underdevel- 
oped countries. Report by a group of experts appointed by the 
Secretary-General of the United Nations. Issued by the Department of 
Economic Affairs, U. N., May 1951 2906-2923 

Exhibit No. 307 — Letter of March 24, 1957, re role of David Weintraub 

and FAO projects 2923-2928 

Exhibit No. 308 — Re specific inquiries from governments for help on tech- 
nical problems and in finding experts to assist handled by Technical 
assistance unit of division of economic stability and development headed 
by David Weintraub 2928-2933 

Exhibit No. 309 — Letter to Sir Herbert from Alfred Van Tassel, August 1, 
1949 2933-2934 

Exhibit No. 310 — Paper on Alfred J. Van Tassel from the farm organi- 
zations 2934r-2936 

Exhibit No. 311 — David Ovpen and the U. N. expanded technical assistance 
fund 29.36-2941 

Exhibit No. 312— TA chronology (multilateral) 2941 

Exhibit No. 313 — United Nations and major specialized agencies — Budget 
and United States contributions 2980 

Ezekiel, Dr 2928 

F 

FAO 2997 

FAO (Food and Agricultural Organization; see United Nations). 

Federal Bureau of Investigation (FBI) 2899, 2935, 3002 

Federal Trade Commission, 1952 report of 2963 

Feller, A. H 2965 

Fellowship programme 2932 

Fifth amendment 2873, 2874, 2875, 2877, 2879, 3002 

Finance Committee (subcommittee of Administrative Committee on 
Coordination). 

First amendment 2874, 2875 

Fisher, Mr 2903 

Flores, Antonio Carillo 2931 

Foreign Economic Assistance Act of 1950 2958 

Foreign Operations Agency (FOA) 2976 

Foreign Service 2963 

Forestry Division 2975 

Forrest, Dr. W. P 2965 

French proposal re technical assistance programs 2905 

Friedman, Mr 2903 

Friseh, Mr 2919 

"Future Role of the United States in United Nations Technical and Eco- 
nomic Assistance, The" 2975 

G 

Gadgil, D. R 2907 

Garcia, Mr 2914, 2917 

Garcia, Desiderio 2931 

Geneva 2892, 2949, 2953, 2954, 2961-2963 

Gerhardsen, Dr 2928 



IV INDEX 

Page 

Glasser, Harold 2900 

<31assman, Sidney 2899, 2901, 2902, 2937 

Goldet, Mr 2964 

Gordon, Joel 2899, 2900, 2902, 2935, 2937 

Grand jury 2898, 2900, 2901 

Graze, Stanley 2902, 2936, 2937 

Greenberg, Michael 2888 

Greene, Mr 2933 

Guimares, Nunes 2911 

Gulf Co 2963 

Gutt, Camille 2001, 2910 

H 

Hakim, George 2907 

Hambridge, Mr. Gove 2888 

Harris, Jack S 2934 

Harrison, Mr 2933 

Havana Charter (1948) 2964 

Hayes, Brooks 2972 

Henderson, Miss J — 2964, 2965 

Herrarte, Lopez 2910 

Hickerson, Mr 2901 

Hill, Martin 2904, 2940, 2964, 2965 

Hiss, Alger 2888, 2894, 2973 

Hoffman, Kay 2973 

Hoover, J. Edgar 3002 

Hopkins, Harry 2899 

Hot Springs, Va 2894 

Hotclikiss, Preston 2963, 2964 

I 

ICAO (International Civil Aviation Organization; see United Nations). 
IFC (International Finance Corporation; see United Nations). 
ILO (International Labor Organization; see United Nations). 

IMOO 2949 

Information Bulletin, United States Committee for the United Nations, 

March 1956 2970 

Ingersol, Roy C 2978 

Institute of Pacific Relations (IPR) 2900 

Inter-Departmental Advisory Committee on Technical Assistance, 

United States 2048, 2949 

Interior Department 2964 

International Bank for Reconstruction and Development 2888-2891, 

2894, 2902. 2904, 2905, 2909, 2929, 2039, 2940, 2944, 2949, 2950, 2951, 

2957, 2965, 2967, 2968, 2972, 2979, 2994. 

International commodity agreements 2964 

International Development Authority 2979 

International Economic Union 2979 

International Labor Conference 2894 

International Materials Conference 2964 

International Monetary Fund (IMF) 2878, 

2SS0, 2883-2885, 2887, 2888, 2891, 2894, 2904, 2905, 2929, 2940, 2944, 

2949, 2950, 2951, 2957, 2994. 

Board of Directors 2882, 2885 

Board of Governors 2880, 2885 

Position in negotiations on expanded technical assistance program — 2902 

International Organization Affairs, Assistant Secretary of State for 2988 

International Organization Affairs, Bureau of 2997 

International price fixing 2964 

International Sugar Agreement 2964 

International teams of experts 2929 

International Wlieat Agreement 2964, 2983 

IRO rinternational Refugee Organization; see United Nations). 

Iron Curtain coimtries 2961 

ITO 2903 



INDEX V 

Page 

ITO ( 10) 2889 

JTU (International Telecommunications Union; see United Nations). 

J 

Jenks, C. W 2904, 2940, 2965 

Jenner, Senator William B 2873, 3002 

Jessup, Philip C 2888 

Joint Committee on Programme and Budget 2953 

Joint Resolution by United States Congress on multilateral technical co- 
operation programs 2987, 2988, 2991 

Justice Department 2899 

K 

Kahn. Miss 2911, 2916 

Kaplan, Irving 2899, 2900, 2902, 2937 

Katz-Suchy, Mr 2891, 2892, 2895, 2896, 2909, 2912, 1913 

Kesteven, Dr 2928 

Kolpakov, Boris T 2961 

Kotschnig, Mr 2922 

Kozlow, Poland 2897 

L 
La Guardia, Fiorello 2899 

Lake Success 2903, 2904, 2931, 2938, 2939, 2949, 2964, 2965 

Lang, Mr 2909, 2911-2917 

Lange, Mr - 2960 

Latin America 2963 

Latin Americans and Asians hope United States will back plan on Eco- 
nomic Development 2972 

Laugier, Mr. H 2964 

Laves, W. H. C 2965 

Letter of May 4, 1956, from National Grange, American Farm Bureau Fed- 
eration and the National Council of Farmer Cooperatives 2879 

Lewis, W. Arthur 2907 

Lie. Secretary-General Trygve 2900, 2904, 2928, 2939, 2948, 2996 

Lopez-Herrarte, E 2965 

Lynn, John C 2988 

M 
Madan, Bal K 2931 

Mandel, Benjamin 2873 

Marlin, E. R 2904, 2940, 2965 

Marshall Plan 2978 

Marxism 2963 

Masion, Mr 2910 

McCarran committee 2934 

McCarran, Senator Pat 2934 

McCarthy, Senator Joseph R 2934, 3002 

McClov. John J., president of the International Bank 2904, 2940 

McCougall, F. L 2888, 2923, 2927, 2965 

McManus, Robert 2873 

Metall. Dr. R. A 2965 

Middle East 2963 

Mitchell. Jonathan 3000, 3001 

Moley, Raymond 2963 

Morgenthau Diaries 3000 

Morgenthau, Henry, Jr 3000 

Morris, Robert 2873, 2901, 2934 

Article in U. S. News & World Report 2898, 2900 

Moscow 2893 

Moscow Declaration 2892, 2893, 2941 

Mudalier, Sir Ramaswami 2938 

Myrdal, Mrs. Alva 2904, 2940, 2964, 2965 

Myrdal, Gunnar 2964 



VI INDEX 

N 

Pag« 

National Council of Farmer Cooperatives 2879, 2880, 2987, 2988, 2991 

National Grange 2879, 2880, 2982, 2984, 2985, 2988 

National Workshop 2978 

National Workshop on World Social and Economic Development. 2973, 2975, 2979 

Nation's Business (October 1953) 2978 

Nehru, Prime Minister Jawaharlal 2940 

New Dealer 2874 

New York Times 2900, 2901, 2906, 2938, 2940, 2972 

Newsom, Herschel 2880 

Newsweek, March 14, 1955 2963 

Nimitz, Adm. Chester W 2934 

Nongovernmental Organizations and the U. N., The 2970 

Nosek, Mr 2909-2912, 2916, 2918 



O'Couor, Senator 2900, 2901 

Office of War Mobilization and Reconversion 2900 

OgTQore, Lord 2920 

Oil produced 2963 

Olsen, Mr 2888 

Olsen, Mr. Arthur J 2972 

Olsen, Mr. K 2965 

One World 2978 

Operation Committee (subcommittee of Administrative Committee on 

Coordination) 2882 

Operational fund 2886, 2887, 2890 

Operational program 2888 

Oumansky, Constantine 2888 

Owen, David 2896, 2901, 2902, 

2904, 2907, 2928, 2929, 2934, 2936-2940, 2964, 2965, 2975 

Previous employment 2937 



Paley Commission (President's Materials Policy Commission) 2964 

Pate, Maurice 2959 

Perez-Guerrero, Mr 2904, 2940, 2964, 2965 

Perkins, Milo 2888 

"Philadelphia Charter" 2894 

Pink, Louis H 2979 

Point IV Information Committee 2973 

Point IV Program 2888. 

2890, 2898, 2904, 2936, 2938, 2939, 2947-2949, 2957, 2961, 2976, 2977 

Poldan 2891, 2892, 2974, 2975, 29^ 

Position papers, U. N 2898 

"Present Status of SUNFED, The" 2973 

President's speech of January 20, 1949 2998 

Price, Mr 2964 

"Price of Oil in Western Europe, The" 2963 

"Proposals for Expansion of World Trade and Employment" 2963 

Protocol on standardization of fruit and vegetables 2962 

R 

Railways operation study unit (TAA) 2902 

Randall Commission 2964 

Rassadin, Mr 2891, 2892, 2921, 2922 

Rastoff, Rhoda 2902, 2937 

Regional Economic Commissions, U. N.'s 2895, 2960 

Republican 2806 

Resident Representatives 2896 

Reston, James 2938 

Rice, Stuart 2925 



INDEX vir 

Page 

Riches, E. J 2965 

Rifaat, Mohamed Aly 2931 

Rockefeller fellowship 2964 

Rockefeller, Nelson 2979 

Roosevelt, President 2891, 2893, 2941 

Rooth, Evar 2888 

Royal Dutch-Shell 2963 

Rusher, William A 2873 

Russia. (See U. S. S. R) 

Russian opposition to the United States 2893 

Russian rubles 2974 

S 
Saksena, Mr 2913, 2914, 2917, 2918 

San Francisco Conference 2938, 2941, 2973 

Sansom, Miss 2910 

Schacter, Mr 2964 

Scheyven, Raymond 2980 

Schimmel, Herbert S 2900-2902, 2937 

Schultz, Theodore W 2907 

Secretary General. (See United Nations.) 

Shepherd, G. W., Jr 2975 

Show, Dr 2928 

Silvermaster, Nathan Gregory 2874^2878 

Socialist countries 2963 

Socony- Vacuum 2963 

Southard, Frank 2884 

Soviet. (SfeeU. S. S. R.) 

Soviet espionage agent 2900 

Soviet Russia. {See U. S. S. R.) 

"Soviet Spy Rings Inside U. S. Government" 2887 

Soviet Union. (See U. S. S. R.) 

Sparkman, John J 2919 

Special account 2956, 2957 

Special programs, United States contributions, fiscal year 1949-53 2982 

Specialized agencies 2880, 

2886, 2889-2892, 2894. 2895, 2898, 2903-2905, 2910, 2940, 2942-2945, 
2947-2956, 2958, 2960, 2961. 

Coordination for 2904 

Partial list of 2891 

Speech of President Roosevelt, June 7, 1943 2891 

Message, May 17, 1943 2893 

Stalin, Marshal 2941 

Standard of California 2963 

Standard of New Jersey 2963 

Stanovnik, Mr 2921 

State Department 2890, 

2891, 2894, 2898, 2901, 2906, 2935, 2947, 2948, 2957, 2959, 2963, 
2964, 2973, 2993, 2996, 2997. 
Statement of the American Farm Bureau Federation before the House 
Foreign Affairs Subcommittee dealing with international organiza- 
tion, by John C. Lynn, legislative director, March 1, 1957 2988 

Statement by Roy Battles, assistant to the master, the National Grange, 
before Subcommittee on International Organizations and Movements, 
House Foreign Affairs Committee, concerning FAO and related or- 
ganizations and movements, February 29, 1956 2982 

Statement on expanding technical assistance concerning FAO before 
Subcommittee on International Organizations and Movements of 

the House Foreign Affairs Committee 2991 

Statement by Francis O. Wilcox, Assistant Secretary of State for Inter- 
national Organization Affairs, July 24, 1956, re the United Nations 

expanded program of technical assistance 2992 



VIII IXDEX 

Page 

Steinbower, Mr 2912, 2913, 2915, 2917, 2918 

Stiebling, Dr. Hazel 2924, 2925, 2927 

Subversive agent 2885 

SUNFED. ( Special United Nations Fund for Economic Development ; See 
Technical assistance.) 

"SUNFED is in the news" 2972 

"SUNFED— Your Name on a Blank Check" 2978 

Supplemental operating program of advisory and technical services 2953 

Swedish Socialist 2964 

Szymanowski, Mr 2911, 2916, 2918 

T 

TAB (Technical Assistance Board; see Technical assistance). 
TAG (Technical Assistance (Committee; see Technical assistance). 
Technical assistance : 

Administration 2902, 2936 

Advisory Committee on 2996, 2998 

Board (TAB) 2885-2887, 2896, 2898, 2901, 

2905, 2922, 2928, 2937, 2940. 2956, 2965, 2967-2970, 2974, 2983, 2985, 2995 

Secretariat of TAB 2902 

Central fund (also called special account for ETAP) 2881, 2886, 

2888, 2890, 2895, 2897, 2937, 2945, 2947, 2952, 2954, 2956-2959, 2967, 2994 

Committee (TAG) 2885, 2886 

2891, 2892, 2896, 2901, 2902, 2922, 2928, 2936, 2956, 2968, 2974, 2995, 2998 
"Draft Agreement Concerning the Financing of the Technical Assist- 
ance Programme of the United Nations" 2966 

Economic development and technical assistance to underdeveloped 

countries 2904, 2906, 2939, 2955 

Purposes eligible for grants , 2909 

Expanded Technical Assistance Program (ETAP)__ 2892, 2896, 2898, 2904, 
2921, 2922, 2928, 2935, 2936, 2943, 2945, 1947, 2951-2955, 2957, 2959, 2975, 

2983-2985 

Expanded Technical Assistance Fund (UNTA) 2936, 

2946, 2974, 2975, 2980, 2982 

Fund, The 2965-2968 

Interagency meetings 2965 

Pledging conference 2958, 2959 

Problems 2964 

Program 2975, 2977-2080 

2982, 2983, 2985-2988, 2990, 2991, 2993, 2994, 2997, 2998 

Secretary-General's report 2894, 2895 

Secretary-General's report on decentralized financing 2892 

Special Technical Assistance Fund {see also Central Fund) 2887, 2892 

Special United Nations Fimd for Economic Development ( SUNFED ) _ 2960. 

2908, 2972, 2973, 2975, 2977-2979 

Working party 2886-2889, 2905, 2921, 2922, 2950, 2951, 2961, 2962 

Working party on the collection and disbursement of funds for the 

special account 2966, 2968, 2970 

"Technical Cooperation Toward Economic Development, Suggestions for 

Procedure" 2886 

Texas (company) 2963 

Thorp, Willard 2891, 2894, 2926, 2939, 2948, 2949, 2956-2958 

Tolan, Representative John H 2901 

Tolly, Mr 2928 

Treasury, Secretary of 3000 

Treasury Department 2874, 2891 

Truman, President 2923, 2938, 2939, 2947-2949, 2961, 2964 

U 
Ullman. William Ludwig 287'4-2878 

UNESCO (United Nations Educational, Scientific, and Cultural Organi- 
zation) 2889, 2898, 2903, 2904, 

2921, 2928, 2940, 2944, 2949, 2951, 2952, 2956, 2959, 2965, 2980, 2983 



INDEX IX 

Page 

UNICEF (United Nations International Children's Emergency Fund) 2942, 

2959, 2960, 2980, 2983-2986 

United Kingdom 2974, 2985 

United Nations 2880, 2886, 2887, 2889, 2890, 2892, 2895. 

2896, 2899-2903, 2905, 2906, 2908, 2915, 2916, 2920, 2922, 2924-2926, 
2928, 2929, 2934, 2935, 2937-2940, 2943, 2944, 2947-2951, 2953-2959, 
2961, 2963, 2966-2972, 2974-2980, 2982-2988, 2990, 2992-2997, 2999 

Administrative Committee on Coordination (ACC) 2882, 2886- 

2890, 2895 2904, 2923, 2926, 2928, 2947, 2950-2953, 2967, 2968, 2996 

Finance Committee 2883, 2886, 2887, 2889, 2890 

Operations Committee 2882, 2886, 2887, 2889, 2890 

Administrative and Financial Services, Department of 2965 

Central fund. ( See Technical assistance, central fund. ) 

Charter 2942, 2963, 2979, 2983, 2996, 2999 

Committee on Nongovernmental Organizations 2971 

ECAFE. (See Economic Commission for Asia and the Far East.) 
ECE. (See Economic Commission for Europe.) 
ECLA. ( See Economic Commission for Latin America. ) 

Economic Affairs, Department of 2929, 2931, 2933, 2937, 2967 

Selection committee re award of fellowships 2931 

Economic Commission for Asia and the Far East (ECAFE) 2960, 2963 

Economic Commission for Europe (ECE) 2960-2964 

Economic Commission for Latin America (ECLA) 2960, 2963 

Economic Division 2889 

Economic, Employment, and Development Commission 2907 

2909,2911,2912,1916 

Report of group of experts 2909 

Economic and Social Council (ECOSOC)__ 2880,2885.2886,2888,2890-2892, 
2894, 2896, 2898, 2901, 2902. 2904^2907, 2909, 2911, 2912, 2916, 2918- 
2921, 2928, 2932, 2936, 2938-2940, 2942, 2943, 2945, 2947, 2950. 2952, 
2957. 2960. 2963. 2964, 2969-2971, 2974, 2983, 2986, 2990- 2994, 2998 

Executive Chairman of 2901 

Resolution 2926 

Resolution 222 2966, 2969 

United States Delegation to ECOSOC 2898 

Economic subcommittee 2996 

Executive Committee on Economic Foreign Policy 2996, 2998 

Food and Agriculture Organization 2880, 

2883, 2884, 2887-2889, 2892. 2898, 2902, 2904, 2905, 2920. 2921, 2924, 
2925. 2927-2929, 2931, 2933, 2940-2942, 2944-2947, 2949, 2952, 2956- 
2959. 2961, 2962, 2965. 2974. 2975. 2981, 2983, 2994. 2999. 

Conference 2957, 2958 

Constitution 2921, 2941, 2942, 2948 

Council 2975 

Hot Springs, Va., Conference 2920 

Interagency Committee, United States 2998 

Interim Commission 2893, 2894, 2942 

Member countries, not members of U. N 2922 

General Assembly— 2889, 2891, 2898. 2902, 2906, 2919, 2942. 2943, 2945, 2947, 
2950, 2955, 2957, 2959, 2971, 2972, 2980, 2990, 2992-2995, 2997, 2998 

Meeting in Paris in 1948 2955 

Head(iuarters 2897, 2970. 2975 

Information Centers 2971 

International Civil Aviation Organization (ICAO) 2891. 

2904, 2937, 2951, 2956, 2965, 2981, 2983 

International Development Authority 2908. 2909 

International Finance Corporation (IFC) 2975, 2977, 2979 

International Labor Office 2902, 2904, 2928, 2940, 2944 

International Labor Organization (ILO) 2889. 

2898. 2937. 2940, 2943, 2948. 2949, 2951, 2954. 2956, 2965. 2981, 2983 

International Refugee Organization (IRO) 2943, 2949, 2965, 2968, 2982 

Interim Commission 2944 

International Telecommunications Union 2981. 2983 

Joint Committee on Nutrition 2988 



X INDEX 

United Nations— Continued Page 

Member countries not members of FAO 2923 

Mission to Haiti 2929 

Public Information, Department of 2933, 2971 

Secretariat 2897-2899, 2902, 2903, 2964, 2965, 2967 

Secretary General 2895, 

2902, 2903, 2905, 2906, 2966, 2967, 2969, 2989, 2990, 2996 

Social Affairs, Department of 2904, 2965 

Special Account {see also Central fund) 2956, 2967 

Special Projects Division (TAA) 2902 

Statistical Office 2931 

Transport and Communications Division 2902 

United States citizens (suspended or dismissed from U. N.) 2900 

United States Delegation 2898 

U. N. Group Pushes Special Aid Fund 2972 

U. N. Lobby Briefs the Washington, D. C, Lobby, The 2972 

U. N. Lobby Grows in Size and Strength, The 2970 

United Nations and Major Specialized Agencies — Budget and United 

States contributions— Exhibit No. 313 2980 

U. N. and the U. S. Oil Industry 2963 

United States Education Delegation 2894 

United States Favored Specialized Agencies (report) 2892 

United States security 2898 

Universal Postal Union 2981 

UNKRA (United Nations Korean Reconstruction Agency) 2982 

UNREF (United Nations High Commissioner for Refugees Emergency 

Fund) 2982 

UNRRA (United Nations Relief and Rehabilitation Administration) 2894, 

2897, 2899, 2908, 2935, 2942-2945, 2948, 2959, 2980 
UNRWA (United Nations Relief and Works Agency for Palestine Refugees 

in the Near East) 2982 

UNSCCUR (United Nations Scientific Conference on the Conservation 

and Utilization of Resources) 2932, 2933 

UNTA ( United Nations expanded technical assistance fund ; see Technical 
Assistance). 

UPU 2983 

United States-FAO Inter-Agency Committee 2948 

U. S. News & World Report 2899, 2900, 2934 

U. S. S. R 2891, 2892, 2906, 2938, 2957, 

2960, 2961, 2963, 2964, 2972, 2974, 2975, 2984, 2989, 2994, 2995, 2999 
U. S. S. R. resolution in ECOSOC, July 1949 2886 

V 

Van Tassel, Alfred J 2902, 2928, 2932-2937 

Yarley, Dimitry 2901, 2906, 2912 

Viner, Jacob 2888 

W 

WaU Street Journal 2963, 2964 

Wallach, Eugene 2901, 2902, 2937 

War Production Board 2899 

Web of Subversion 2899 

Weintraub, David, Director of the Division of Economic Stability and 

Development 2880, 2896-2907. 2910-2913, 2915, 2916, 2918. 2919. 2921 

2923, 2924, 2928, 2931, 2932, 2937, 2940, 2944, 2964, 2965, 2996, 2997 

Background 2897 

Grand jury investigation of 2898, 2900, 2901 

White 2874 

White, Harry Dexter 2888, 3002 

WHO (World Health Organization) 2889, 

2891, 2898, 2902-2905, 2921, 2925, 2928, 2942, 2944, 2945, 2948, 2949, 
2951, 2953-2959, 2965, 2980, 2983, 2988-2990. 

Interim Commission 2944 

Wilcox, Francis O 2988 

Williams, G 2965 



INDEX XI 

Page 

Wilson, Mr 2913-2917, 2919 

WMO 2983 

Wolfson, Mr 2910, 2912, 2913, 2915-2919 

Works Progress Administration (WPA) national research project of the 2899, 

2900 

World Bank, The 2972, 2977 

World Health Assembly, Second 2953, 2954 

World Meteorological Organization 2981 

Woulbroun, Mr 2914, 2915, 2917 

T 

Yalta Conference 2941 

Z 

Zap, Herman 2899, 2901, 2936, 2937 

Zap, Mrs. Marjorie 2901, 2902, 2937 



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