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SCOPE OF SOVIET ACTIVITY IN THE UNITED STATES
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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. 0
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
o
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