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April 5, 1954
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State Dept. review cAp pioved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 2A .25X1A: 25X1 A9A Vol. XXX, No. 771 April 5, 1954 GRAM ? 12th Semiannual Report . INTERNATIONAL EDUCATIONAL EXCHANGE PRO ALLIED EFFORTS TO RESTORE FREEDOM OF. MOVEMENT IN GERMANY ? Texts of Correspond- ence . . . . . . . . . JAPAN'S PROGRESS AND., PROSPECTS ? . by Deputy Under Secretary Murphy . . 513 MUTUAL DEFENSE ASSISTANCE AGREEMENT WITH JAPAN 518 INTERNATIONAL COPYRIGHT PROTECTION ? State ment by Thorsten V. Kahiarvc 530 Ap a Frs e~$ 3 r 5X1 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Al-le ?e,.r9ey" bulletin April 5, 1954 For sale by the Superintendent of Documents U.S. Government Printing Office Washington 25, D.C. PRICE: 62 issues, domestic $7.50, foreign $10.25 Single copy, 20 cents The printing of this publication has been approved by the Director of the Bureau of the Budget (January 22, 1962). Note: Contents of this publication are not copyrighted and items contained herein may be reprinted. Citation of the DEPARTMENT Of STATE BULLETIN as the source will be appreciated. The Department of State BULLETIN, a weekly publication issued by the Public Services Division, provides the public and interested agencies of the Government with information on developments in the field of foreign relations and on the work of the De- partment of State and the Foreign Service. The BULLETIN includes selected press releases on foreign pol- icy, issued by the White House and the Department, and statements and addresses made by the President and by the Secretary of State and other officers of the Department, as well as special articles on various phases of international affairs and the func- tions of the Department. Informa- tion is included concerning treaties and international agreements to which the United States is or may become a party and treaties of gen- eral international interest. Publications of the Department, as well as legislative material in the field of international relations, are listed currently. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 The International Educational Exchange Program AN APPROACH TO A PEACEFUL WORLD ON A PERSON-TO-PERSON BASIS Following is the text of the 12th semiannual report of the International Educational Exchange Program of the Department of State, which was transmitted to the Congress on March, 22.1 LETTER OF TRANSMITTAL To: The Honorable the President of the Senate The Honorable the Speaker of the House of Representatives SIRS: Pursuant to Section 1008 of Public Law 402 (80th Congress), I transmit herewith the 12th semiannual report of the International Educa- tional Exchange Program of the Department of State. This report reviews exchange activities carried out under authority of this act during the period July 1-December 31, 1953. Previously, reports on educational exchange ac- tivities were included in the semiannual reports of the former International Information Admin- istration. However, under President Eisenhow- er's Reorganization Plan No. 8,2 effective August 1, 1953, international educational exchange activ- ities and information activities were separated. The educational exchange program was retained in the Department of State and an independent agency created to administer information activi- ties under the act. This report on educational exchange activities administered under the act is therefore submitted separately by the Department of State. Very truly yours, JOIIN FOSTER DuLIs Secretary of State THE DEPARTMENT OF STATE, March 15,1954. 1 Also available as Department of State publication 5409. 'For text, see BULLF7rIx of June 15, 1953, p. 854. The International Educational Exchange Pro- gram was born of a faith and a conviction. It was faith in the democratic system, in the American way of life. It was conviction that the sharing of ideas through direct personal experi- ence would strengthen genuine understanding and mutual respect basic to the security of the free world. Today that security is threatened. The Com- munists are trying to convince the peoples of the world that international communism, not de- mocracy, is the answer to their problems. Other anti-American forces are sowing mistrust of our motives. The Educational Exchange Program has proved that it is a sound antidote. It is building up a receptive climate of public opinion overseas. In this atmosphere our actions, our motives, and our policies can be correctly understood. As now constituted, the program has its leg- islative roots in the Smith-Mundt Act, the UT bright Act, and a number of other pieces of special legislation. An integral part of the Department of State, the program receives special policy guidance which makes it immediately responsive to sensi- tive world conditions. Through the conduct of this program the Department is able to carry out its leadership role, as desired by the Congress, in coordinating the exchange efforts of other U.S. Government and private agencies to further for- eign policy objectives. In the past year the International Educational Exchange Program arranged for 7,121 exchanges with over 70 countries of the free world. April 5, 1954 499 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Two-thirctspt~veloagreMCI~pQ1@,Mqp*D4A10fl0II3ienhower, have ican children A ti L group of people from other countries who came to the United States to study, to teach, to lecture, to carry on specialized research, or to gain actual work experience. They were young people, such as the deputy chief of the Legislative Reference Service of the Government of India, who this year completed work on his Ph.D. in public administration at American University. They were teachers, like the director for a number of rural schools in Cuba, who observed educational methods in our schools. Another group included current leaders of thought and opinion-newsmen, government offi- cials, members of national legislative bodies, labor and business leaders, and social workers. Be- cause of duties back home, many of this latter group stay in the United States only a brief period, usually not more than 3 months. The other third of the exchanges were Amer- icans who went abroad to study, teach, lecture, or do research. They represented all of our 48 States. Some are holding conferences on Amer- ican studies or teaching English as a foreign lan- guage to meet the growing interest overseas in American life. Others are specialists, like the Labor Commissioner of the State of Wyoming or the Chief Justice of the State of Nebraska, who are helping to correct many distorted conceptions of American life, not only in professional and academic circles but among workers in the fac- tories, farms, and mines. Many of these exchanges were planned within the framework of projects to meet special situa- tions in different countries. For example, in Korea a group of American educators is helping Korean teachers and school administrators to reestablish primary and secondary schools with an up-to-date curriculum. Groups of newsmen from NATO coun- tries are seeing our defense efforts at firsthand, within the setting of our national life. Efforts are made to keep the exchange program flexible enough to meet other immediate needs. For example, shortly after the President's pro- posal to the United Nations on the peaceful uses of atomic energy, the Department developed a panel of top-flight experts who will be available to lecture overseas on American uses of atomic energy for peaceful and humane purposes. In addition, 384 impressionable young people in 12 countries were given scholarships to study in American-sponsored schools overseas. These institutions, like the American Farm School in Greece and the American University of Beirut, have long been recognized as a bulwark of Ameri- can influence in the Near East. Twenty-two American-sponsored schools in the other American Republics were given small cash grants, and 208 similar schools received profes- sional guidance and other services to help them to maintain American standards of teaching and school administration. These schools, recently . mer n a educated over a million As the American Ambassador to Guatemala pointed out, they are "training a generation of young people who will, through their education, have achieved strong ties with and a basic under- standing of the United States." The Department also helped 311 other exchange projects. Through these projects more, than 1,886 exchanges were arranged which furthered the De- partment's objectives at no cost to the United States Government. Expenditures under the Smith-Mundt Act for exchanges were relatively small, $8,011,043, con- sidering the scope of the program. However, without these funds the Department would have been unable to make full use of approximately $8 million in private support or $9 million in foreign currency available under the Fulbright Act. It must be assumed that the full results of ex- change experience are a matter of cumulative im- pact. All exchanges also have an immediate result. There was, for example, the Japanese legislator who told his countrymen : I realized from this trip that the essential difference and disagreement between Communist Russia and the United States is that the former represents a way of life by compulsion and the latter a way of life which is based on and derives its strength from voluntary processes. The American way is just and proper for human society. Or as a European specialist put it : I had always been afraid of Russian imperialism. Not however until I visited your country did I learn to believe in the United States as a supporter of all the good and culture-supporting ideas. If you invite people from other countries to visit the U.S.A., you can make your passive friend your active ally. Such examples are almost endless. In Copen- hagen a returned Danish teacher, Otto Breinholt, is conducting evening classes for adults entitled "U.S.A., Community and People" and "Aspects of Life Expressed in American Literature." A Latin American newspaper editor wrote over 80 feature stories, highly favorable, about his expe- rience in the United States. They were given front page space and followed up by a lecture tour. Thorarinn Thorarinsson, editor of a daily paper in Iceland, has launched a one-man campaign to explain the necessity for American troops in Ice- land. He reminds his readers that as early as 1020 Lenin had noted the importance of Iceland in time of war. He has stated, "All Communist actions indicate that they intend to conquer the world and dominate it." He refuted charges of "imperialism" in the United States. He told his countrymen that, by not cooperating in the build- Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 ApprQvfed For tRelease 200303/25 ing of free wor cll e enses, ey were working against the prospect of peace. On the other side of the world, a Far Eastern grantee is making it his business to place publica- tions and other material about the United States in the schools in his area. And this is an area where the Communists are especially active. The program is also strengthening our ties with the free world by sharing our knowledge and building up skills which are of mutual benefit to the United States and other countries. Bai Ma tabai Plang, a Moro princess from the Philippines who studied social work in the United States, established an Institute of Technology in Min- danao modeled upon courses at Berea College in Kentucky. An Indian who studied industrial relations in the United States was solely responsible for or- ganizing the Division of Industrial Relations at the Tata Institute in Bombay. Dr. Emmanuel H. Phuoc, leading dental sur- geon in Indochina, organized a schedule of United States information films in his spare time. This particular former visitor to the United States keeps up his membership in the American Dental Association and has organized a similar group in Viet-Nam as well as a free medical and dental clinic where American methods have been intro- duced. A husband and wife team, Emir Birjandi and his wife Parvin, studied at the University of Wis- consin. They took what they learned back to their native village of Tabas, Iran, with such good re- sults that Tabas is becoming the pattern of a widely extended Iranian village improvement system 3 Americans who have gone abroad under the In- ternational Educational Exchange Program have accepted seriously the responsibilities of the trust placed in them. Richard J. Coughlin, an exchange student in Thailand, wrote that he had "visited about 125 different homes, both Thai and Chinese . . . In most cases I was the first Westerner, and certainly the first American, to have entered their homes. My reception was in all instances exceptionally friendly. . . . I would judge that this was one of the few ways these people had to get the Ameri- can point of view." In Austria an American teacher, Harold Grothen, gave 103 lectures on American education and life in a small town to 4,700 people in 36 dif- ferent towns and villages-and this in addition to his regular classroom teaching. American Negro sociologist Joseph H. Douglass was able, by his own example and by his talks in Egypt, to clear up many false ideas about the 'For an account of their work, see "Rural Development in Iran," Department of State Field Reporter, January- February 1953 (Department of State publication 4874), p. 13. CIA-RDP6~-00442R(~QO a~4~ ~3-6 position o is race in ze m e ates. He told his audience that our country "is truly one in which countless individuals . . . Negro, Catholic, Jew, Oriental . . . through hard work and appli- cation can and do achieve happiness and relative measures of success and that, despite attitudes to the contrary, bonds of friendship extend across racial and cultural lines." 4 Greek newsmen were so interested in Dean Ken- neth Olson's workshops to help them with their problems that the group had to meet in the great Parliament Hall in Athens to accommodate all who wished to take part.' No wonder indeed that a survey by Time maga- zine revealed that cabinet ministers in 54 countries considered the exchange program the most effec- tive medium yet devised for the free exchange of ideas. Backing up these individual examples are scien- tific evaluation studies which show that the ex- change experience helps foreign grantees to -lose unrealistic or stereotyped views of Amer- ican life; -obtain a more favorable view of the motives behind American foreign policy; -report more favorably and actively, on their return, to their countrymen. Americans gain and share with their fellow citizens -wider understanding of the political, eco- nomic, and cultural life of other countries; -increased knowledge and appreciation of our own international problems; -extensive professional benefit. These findings were supported by the report of the Hickenlooper subcommittee," which stated that- Exehangees often are or may become prominent in gov- ernment, business and the professions and their potential impact on attitudes toward this country is considerable. The program enjoys a high prestige both at home and abroad and is therefore able to attract the voluntary participation of leading citizens. DEVELOPMENT AND COORDINATION OF PROGRAMS Foreign Service posts throughout the world alert the Department as to the size and character of programs needed to meet particular situations. Each post coordinates its exchange plans with similar efforts developed by public and private groups for that country. These recommendations ' Ibid., November-December 1953 (Department of State publication 5232), p. 8. 'Ibid., September-October 1953 (Department of State publication 5162), p. 22. 6 Overseas Information Programs of the United States, S. Rept. 406, 83d Cong., 1st Bess. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 are then reviewed by the International Educa- 4-H Club Foundation in enabling 270 American tional Exc@ } ~~ A~~ ' 3~ 2 g CIABRbk8100442 %oli1-?IlgiLge on farms and appropriate o i ica bureaus o e epartment. in communities o each other's countries.' The U.S. Advisory Commission on Educational The Massachusetts Institute of Technology con- Exchange provides overall policy advice and tinued to receive help from the Department in its guidance. Foreign Student Summer project, under which 60 Exchange proposals from binational U.S. educa- technical students from 35 countries were brought tional foundations and commissions in countries to the United States to study at MIT during the participating in the program authorized by the Fulbright Act are reviewed by both the Depart- inent and the Board of Foreign Scholarships ap- pointed by the President. A constant effort is also made in this country to coordinate exchanges with other U.S. Government and private programs. The Department was in- strumental, for example, in setting Iup an Inter- Agency Committee on Training 'rograms and Exchange of Persons. It has set up a program of joint instruction for overseas posts, standardiza- tion of allowances, and cooperative insurance programs. Other measures initiated by the Department to insure teamwork and prevent duplication include an orientation and English language training pro- gram for certain incoming grantees of three major agencies-State, the Foreign Operations Adminis- tration, and Defense. The Department has established a clearing house of information on all U.S. Government grantees. Working with the Institute of Inter- national Education, a similar clearinghouse estab- lished by the institute under a grant from the Ford Foundation, has been set up for exchanges under private auspices. Coordination is maintained also between the ex- change activities of the Department and the inter- national information activities of the United States Information Agency. Procedures have been established for exchange of information in Washington. Overseas coordination is assured since the same staffs operate both programs. (The Department utilizes overseas personnel of USIA through a contractual arrangement with that Agency.) COOPERATION WITH OTHER EXCHANGE PROGRAMS The Department works closely with reputable private groups here and abroad and with interna- tional organizations and foreign governments in carrying out projects sponsored by them that con- tribute to our Government's exchange objectives. Typical of such projects was the placement in U.S. Government agencies and supervision of 92 United Nations fellows from 36 countries. The major subjects studied were economic develop- ment, public administration, and social welfare. The Department cooperated with such groups as the American Field Service and the National summer months. The Department gave assistance in publicizing and facilitating the tours of American artistic groups such as the American National Ballet Theatre. One of the Department's major activities in stimulating private exchanges comes under section 201 of the Smith-Mundt Act. This section eases visa difficulties for foreign nationals coming to the United States for bona fide educational purposes. For example, before the act was passed., it would have been difficult to carry out the broad kind of exchange activity envisioned by the Eisenhower Fellowship Foundation. The before and after story of the trainee program sponsored by the American-Scandinavian Foundation illustrates this point. Previously, it was difficult for a trainee to obtain a visa that would permit on- the-job training and observation. In addition, each trainee had to provide financial and other personal guaranties. In the face of this discour- agement, the program came to standstill. After the act was passed, the foundation was able to provide the necessary guaranties for all trainees it sponsored and to qualify as a program that would contribute to the objectives of the act. To- day the foundation is bringing in over 50) trainees annually for training in American industry and commerce. By approving these programs, the Department helps American industrial, educational, medical, and other groups to bring foreign nationals to this country for limited periods of time. Since July 1, 1953, 195 exchange programs were desig- nated or amended, bringing to 1,x(02 the total num- ber of programs under which foreign nationals may be currently admitted to this country for exchange purposes. Hospitals and clinics are the major users of this service at the present time, with educational institutions and industrial con- cerns next in order. Another exchange activity, involving no U.S. Government funds, is the assignment of American specialists and the performance of technical serv- ices under sections 301 and 402 of the Smith- Mundt Act. During the past 6 months it total of $282,000 was advanced by Japan, Spain, Australia, Thailand, Singapore, and Saudi Arabia for carry- ing out such services. A bacteriologist and sanitary engineer was as- signed to Japan from the U.S. Department of Health, Education, and Welfare. He will advise 7 Field Reporter, January-February 1953 (Department of State publication 481'4), p. 22. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 on sanitary measures in the processing and mar- keting of froze ~ r~ s_ f~ Q?N 25 of the Govern C "o`~ n a , e ~Sa~ ment arranged for the U.S. Bureau of Recla- mation to test soil samples. The Department of Agriculture produced a quantity of guayule seeds for Spain. Continued assistance was provided Australia and Thailand in developing the Snowy Mountains Hydroelectric project and the Chao Phy River Dam. In connection with the latter project, arrangements were made to train 10 Aus- tralian and 2 Thai engineers. In Europe The friendship between the United States and the nations of free Europe is well established. There are, however, in all of the European coun- tries, and particularly in several, groups either hostile to the United States or ignorant of Amer- can ways. The Kremlin makes a constant effort to use these groups in its efforts to divide the United States and its European allies. Since July 1, 1953, the Department has brought 3,738 Europeans to this country and has assisted private groups in bringing over an additional 466. These exchanges include, for example, such in- dividuals as the General Secretary of the Central Federation of Finnish Trade Unions, the Presi- dent of the Swedish Social-Democratic Youth Federation, and such other key figures as influen- tial newsmen, members of national legislatures, and government officials. The carrying out of exchanges within the framework of projects to accomplish specific ob- jectives has been particularly effective in Europe. The influence of groups of NATO newsmen who have returned home show this. For example, they have written favorable articles appearing in over 150 major European newspapers, with a circula- tion of several million readers. Their accounts have been carried by many European radio and television networks, wire services, and magazines. Typical of a project designed for a specific coun- try was the visit of nine Cooperative Community Action Teams from Germany. These teams, com- posed of community leaders from German towns, visited comparable American communities, par- ticipating in community activities and interview- ing community officials 8 Upon their return home these teams found many ways to explain the United States to their fellow citizens. For example, members of a team from Muenster, Germany, since their return, have given 75 talks to their townsmen. They have pro- posed plans for the administrative reorganization 'Ibid., July-August 1953 (Department of State pub- lication 5106), p. 18. of the cit along the lines of American advances i I~i In a.ddi- - 't , 0 e nclusion of American studies in the schools and the estab- lishment of a Muenster-American Circle. The purpose of the latter will be to maintain continu- ing contacts between Muenster and the American cities visited by the team. Rich dividends have also resulted from the Conferences on American Studies held in Nor- way, the Netherlands, and the United Kingdom. These meetings centered around such themes as "The U. S. in the Atlantic Community," "The American Labor Movement," and "American Literature." Prominent American lecturers led these discussions, in which foreign university faculty members, teachers, students, and many others participated. Many of the foreign par- ticipants came with serious reservations as to whether this would be a propaganda stunt on the part of the Americans. Nearly all of them ended up by praising the conferences and asking for more. Among the 1,468 American exchangees now in Europe are 917 American students, who have en- tered into student and university circles in 13 countries, forming an important link between the United States and European youth groups. These students were carefully selected through wide and stiff competitions, stressing personality and emotional suitability as well as professional competence. American specialists assigned to Europe in- cluded the Labor Commissioner of the State of Wyoming, who went down into mines accom- panied by members of local labor organizations and out into the fields to talk with workers about their problems. He was given a good press every- where except in Communist papers. The Department was also active in encouraging and supporting the visits to Europe of privately sponsored American groups and individuals whose trips would contribute to exchange objec- tives. Among these were the American National Ballet Theatre, the New York City Ballet, and se- lected American musical groups and individual artists. They are creating a new respect for American artistic achievement in areas that have long regarded this country as lacking in cultural values. The ballet was so completely successful that the Communist press, which habitually derides American artistic attainments, was forced to give favorable reviews. Other critics highly praised the performances and described the development of ballet in America from an essentially European art into a uniquely American form today on par with the best Europe has to offer. The potential effect of the Department's ex- change efforts in this area may be gaged by study- ing past exchanges. For example, evaluation studies in one large European country show that Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 former views of the United States than persons who have not visited this country. Furthermore, such grantees are convinced, on the whole, of the sound- ness of America's foreign policy. The exchange experience has also often en- hanced the grantee's position as an opinion leader. A measure of this influence, in the country con- cerned, was seen in recent elections, in which 70 of those reelected and 25 of those newly elected to the national legislature were former grantees. Many European government and private agen- cies are reciprocating U.S. exchange efforts by inviting Americans to visit their countries. Re- cently, for example, the German Government in- vited 48 American experts in the fields of religion, welfare, and local government to tour Germany at that Government's expense. German and Aus- trian families have opened their homes during summer months to American teen-agers in ac- knowledgment of the German and Austrian teen- age program conducted by the Department, under which 2,000 youths have lived with American families and attended local high schools since 1949. Other countries offering scholarship op- portunities to Americans include the United Kingdom, France, the Netherlands, all the Scandi- navian countries, and Italy. In the Near East and Africa More than 900 exchanges were carried out with 26 countries in this area during the last 6 months. Embracing critical African, Near Eastern, and South Asian countries, this area is characterized by extreme nationalism and strong antiforeign attitudes. The exchange program has helped to develop local leadership and to inspire that lead- ership with confidence in the United States. For example, Aref ben Musa, now in the Libyan Min- istry of Foreign Affairs, interviewed by Tripoli's only Arab newspaper upon his return, talked of impressions gained while in the United States as an exchange student. Among other things, he said, "I was able during my stay in the United States to study and know the American people and their various aspects of life, their democratic spirit which they display at all times." He spoke of the "generosity of American families," the "brotherly atmosphere of cooperation in the United States," and the way "the individual relies upon his personal ability for his position in so- ciety." An important part of the exchange program in this area is the bringing over of young persons between the ages of 25 and 35 to study in American colleges and universities. Most of these students were active professional leaders in their home countries at the time they received their invita- tions-doctors, lawyers, government officials. What the American experience can mean to them is demonstrated by an evaluation study conducted EgvgMWe) e gRer 31a o~gbIFIA-Wall ~9pg9s+Vff9A0l ffl4@fRr? country. This study, which included. student interviews before, during, and after their trips, showed that largely derogatory attitudes toward the United States were transformed into favorable concepts of this country as a friendly, democratic, hard working Nation interested in the life and problems of other countries. The Department also brought over many out- standing opinion leaders. In cooperation with Princeton University and the Library of Congress, the Department invited 35 eminent Muslim scholars to a "Colloquium on Islamic Culture in Its Relation to the Contemporary World." Dele- gates from Egypt, Turkey, Lebanon, Syria, Jor- dan, Yemen, Iran., Afghanistan, Pakistan, India, Malaya, and Indonesia met with American scholars who have specialized in the history and culture of the Islamic world. Maximum public information was given overseas on this event by the U.S. Information Agency. Plans have been made to bring over a group of Southeast Asian journalists under a project which has as its primary objective a demonstration of the way in which responsible newspapers can contribute to the economic, cultural, social, and political development of a democratic society. In addition to attending a seminar arranged by the American Press Institute of Columbia University, these newsmen will tour the country to get an objective view of American life and institutions and an understanding of some of our problems. Grants have been given also to individual educa- tors from India, Thailand, Greece, Iraq, and Pakistan to enable them to participate in a 6- week seminar on higher education at the Univer- sity of Chicago. Among the American lecturers visiting this area was Dr. Roy G. Blakey, an economist, who, in addition to developing courses in public finance and taxation for college students, served as con- sultant to the Turkish Ministry of Finance. An- other was Mrs. Dolores M. Carter, a lecturer in dietetics who organized and put into operation in Afghanistan a program of instruction in nutri- tion, sanitation and health, home nursing, and infant care. The Department also encouraged and supported the exchange of 101 persons with this area spon- sored by private American and foreign groups. A recent trend among these exchanges was the interest of American students in visiting India and other Southeast Asian countries. This in- creased interest is attributable to a group of Amer- ican students from the University of Southern California, who carried out a plan that they en- titled "Project India." They lived and worked with Indian students for 3 months in attempting to correct misunderstandings about American life. The Department also cooperated with the U.S. National Student Association in arranging the visits to this country of five outstanding Arab Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 , youth leaders. paovetedFoel R I~ae Ol 3 i0d3/25 o A 1RI Pb6 h0 44 3. (L 9oQa10Px~e ~il a~, and mu- visers from American universities in tours of Middle East countries to survey educational needs and to renew contacts with returned foreign students. It facilitated the tour to 10 Near East- ern countries of a group of American mayors and private citizens desiring to observe U.S. foreign aid programs and the work of the United Nations in rehabilitation and refugee problems. In the Far East This area is of the greatest importance. The natural resources of the Far East make it a rich prize in the eyes of the Communists. Nor is its strategic importance overlooked. As Lenin once said, `the road to Paris is through Peking" . Therefore, the anti-American pressure by the Communists in the Far East is continuous and strong. The personal approach through exchanges makes it possible for these people to obtain a true picture of America. It allays suspicion and in- spires cooperation. The 774 exchanges carried out in the Far East include those with the new nations of Indochina, Malaya, and Indonesia. The programs emphasize our desire to share our achievements rather than to impose our way of life. In one country the exchange program concen- trated on bringing over officials from one of the more important ministries, not only because of their far-reaching influence at both national and local government levels, but as directors of gov- ernment publications, motion pictures, radio, and other information activities. From the Philippines came a group of youth leaders, who toured the United States learning about American youth activities and the role they play in our national life. A group of labor leaders came from Japan to study the labor movement in the United States, first by participating in a spe- cially arranged seminar at an American univer- sity and later by working directly with union locals. Individual exchanges included specialists such as the Public Health doctor from Ceylon con- cerned with the control of certain tropical dis- eases, now receiving specialized training at the U.S. Public Health Service; a member of Parlia- ment and chairman of a finance committee in Burma; an editor and publisher from Thailand; and important government officials from critical Indochina. Plans were also made for a two-way "Repre- sentative Government Project" in Japan, under which groups of Japanese students will pursue special programs in this field at American uni- versities, and a seminar will be held in Japan by prominent American lecturers and specialists. Five hundred Japanese educators and government nicipal levels will participate in this seminar. A special exchange project was planned for Korea under which a past president of the Amer- ican Bar Association and a dean of a law school in a large southwestern university will conduct a legal institute for Korean judges, prosecutors, and lawyers. Among the 104 Americans to visit this area was Anna Lord Straus, a former United Nations dele- gate, who is influential among Far Eastern wom- en's groups, speaking on the subject of each in- dividual's responsibility for good local and na- tional government. Other visitors included a labor leader and a pio- neer in the development of the television industry who, together, discussed good labor-management relations and industrial research under the free enterprise system. Among the particularly effective tours of pri- vate groups to this area was the visit to Japan of the New York Giants. The Department cooper- ated with American baseball officials in coordinat- ing the tour, arranging through Foreign Service posts for advance publicity and other assistance. The Japanese are avid baseball fans and re- sponded in large numbers to see the Giants in action against a Japanese team. Perhaps the most significant tribute to the Giants and their per- formance in Japan was the total absence of any Communist propaganda or unfavorable comment. The presence on the team of some Negro players was noted as an indication of racial equality. Widely and favorably reported was the message of President Eisenhower which Baseball Com- missioner Ford Frick brought with him. Altogether, the Department assisted 50 groups in exchanging 111 persons with the Far East during this period. The Department also administers a program of emergency aid to Chinese and Korean students and scholars stranded in the United States. As self- support became impossible for the majority of these persons, grants were awarded to enable them to reach their educational objectives in this coun- try. Carried out under authority of Public Law 535, 81st Congress, this program reached its peak during the 1950-51 academic year. It has been declining steadily since that time. Regulations promulgated by the Attorney General in 1951 under Public Law 535 enabled these grantees to seek employment in the United States. The De- partment has since encouraged private groups and individuals to employ Chinese grantees aided under the program until it becomes practicable for them to return to their home country. During the last 6 months, 182 Chinese students and scholars were assisted as compared with 2,400 during the 1950-51 academic year. The China Aid Act was amended in 1951 to provide Korean students with similar benefits, with the exception that Koreans may not remain Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 and accept employment in the United States. This is in accordance with Department policy and with the strong recommendation of the Korean Gov- ernment that Korean students return immediately to help in the rehabilitation of their country upon completion of their studies. Thirty-two Korean students have been assisted under this program, 11 of whom were aided within the past 6 months. In the Other American Republics Recognizing that the inter-American system must be founded on mutual knowledge, under- standing, and respect, the person-to-person ap- proach of educational exchange was determined in 1938 to be one of the most direct ways to achieve this. The cooperation and mutual respect which now characterize our relations with Latin Ameri- can countries stem in large measure from the cumulative effect of personal contact afforded by exchanges over a period of 15 years. An intensive study conducted in Brazil, for example, by an independent research organization concluded that among the major effects of the exchange experience are a higher regard for the North American peo- ple, greater conviction that the United States is a true democracy, and an increase in the belief that we are doing more than any other nation to prevent war. It is nevertheless necessary to recognize that to- day anti-U.S. propaganda is making a determined effort in Latin America to capitalize on every motive for misunderstanding. Communist propa- ganda is making special use of the Soviets own kind of exchange of persons program, which in- cludes invitations to influential Latin American figures in press and labor circles for "guided tours" behind the Iron Curtain. The Department is now carrying out nearly 200 exchanges. with 22 countries in this area. Among the 35 Americans who visited Latin America re- cently with Hilton R. Hanna, a labor leader, who met with all levels of workers and management, stressing-in excellent Spanish-the theme of good labor-management relations for expanding production. The visit of this eminent American Negro prompted one high union official to reexamine anti-U.S. propaganda in regard to race relations and to seek help from the local U.S. mission in getting the facts on the Negro in America. An American economist served as consultant to a Central American government and lectured on economics at a university. An American profes- sor furthered the establishment of a new Depart- ment of Library Science at a Brazilian university, meanwhile conducting, at the request of local gov- ernment officials, a training program for librar- ians throughout the area. In addition to the 72 Latin American students brought to study in American colleges and uni- versities, grantees included 91 teachers, lecturers, and influential leaders, including the Chief Justice of Peru, the Ecuadoran President's assistant and liaison contact with the Ecuadoran Congress, and a Brazilian editor and radio broadcaster. An important part of the program in Latin America is assistance to 230 nonprofit American- sponsored schools, representing a private invest- ment of $6,500,000. This program, recently praised highly by Dr. Milton Eisenhower, in- cludes small cash grants and professional guid- ance on curricula and other services, amounting to $132,250 this year. In spite of the small amount of money involved, the program has stimulated these schools to maintain U.S. stand- ards of teaching and school administration. Private groups carried out 632 exchanges in furtherance of the Department's exchange objec- tives in this area. For example, a group of Cleveland, Ohio, clubwomen made a tour of six Latin American countries, with the assistance of our Foreign Service posts and the Department. In the field of sports, the Department assisted an American baseball team to play a series of games with a Mexican team, and arrangements were made for players from Mexico and Cuba to par- ticipate in the Brooklyn Dodgers Baseball School in Florida. The Department continued to assist a large number of Latin American students in arranging trips to this country. By way of illustration, arrangements were made for 63 engineering stu- dents and 3 faculty members from the National University of Colombia and 60 students from the University of Mexico to visit places of technical interest in the United States. The Department also assisted the National Education Association in arranging educational tours to Latin America for a large number of American teachers. PUBLIC SUPPORT OF PROGRAM Participation of Private U. S. Citizens The cooperation of the American public has contributed substantially to the success of the ex- change program. Hundreds of organizations and thousands of individuals have offered hospitality and professional guidance to these foreign visitors without remuneration. American citizens who invite an exchangee "home for dinner" or into the family circle are playing a significant part in developing the ob- jectives of the program. Such hospitality is a two-way street in that it is frequently equally rewarding to the hosts. The word "foreigner" loses all alien connotations to the family where an exchanges has become a fre- quent visitor. Barriers of different cultures go down before this person-to-person cor.Ltact. In 506 t Approved For Release 2003/03/25 :CIA-RDP60-00442R00~4b3` State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 that contact, too, there are opportunities to clear up misunderstandings which, left uncorrected, at times mean the difference between a permanent friend of the United States and a resentful critic. There is the story of a young Chinese lad who complained to an American friend that the towns- people in the little village near his school "stared" at him. He was very unhappy about it. The American boy asked him, "Pal," he said, "what would the people do if I visited a little town in your country where they had never before seen an American?" The Chinese boy thought it over. "The children," he admitted laughing, "would chase after you yelling `Big Nose'." The hurt was gone. The financial support given the exchange pro- grams by private individuals and groups has been substantial. For the 1953 program such support is estimated at $8 million, given through scholar- ships and other assistance awarded in conjunc- tion with Government grants. An example is the cooperative arrangement de- veloped for foreign newsmen to enable them to get work experience on American newspapers. These papers pay the expenses within the United States of the newsmen, while the Department pro- vides international transportation. Now in its second year, this project has brought over 35 for- eign newsmen to work on American newspapers in all parts of the United States. Also, over 1,000 local screening committees assist in recommend- ing qualified American candidates and some 600 officials of educational institutions serve as stu- dent advisers in helping foreign students become adjusted to American college and campus life. Many similar services are performed by overseas groups in cooperation with our missions abroad. Cooperating Agencies The Department utilizes a number of public and private agencies to assist in carrying out the complex services involved in the program, such as, for example, scheduling and announcing com- petitions, processing and recommending candi- dates, orienting and supervising grantees, and evaluating program effectiveness. This is in ac- cordance with section 1003 of the Smith-Mundt Act, directing the Department to utilize to the maximum extent practicable the services and fa- cilities of private agencies. Altogether, 36 such agencies are currently co- operating with the Department under contract. They were selected because of their particular competence in specialized exchange fields and in- clude such agencies as the Institute of Interna- tional Education, the United States Office of Education, the National Social Welfare Assembly, the Governmental Affairs Institute, the Confer- ence Board of Associated Research Councils, and the American Council on Education. Reception Centers The Department, through its four reception centers (New York, Miami, New Orleans, San Francisco) helps to create a favorable first impres- sion of this country. These centers make ar- rangements for meeting certain visitors at docks and airports, make arrangements for hotel accom- modations and onward travel, and set up local con- tacts which further the purpose of their visits. Altogether, these centers assisted 5,003 foreign visitors during this period. Washington International Center The Washington International Center provided 1,427 leader grantees with a week's intensive orien- tation course, including lectures, discussion groups, tours to points of historic interest, and visits to Washington homes." These visitors also included grantees sponsored by the Foreign Oper- ations Administration and the Department of De- fense under a cooperative arrangement whereby the Department and these agencies share the cost of the center. The success of the program is due largely to the hospitality and other assistance pro- vided by over 200 private Washington individuals and agencies. American Language Center The language center provided English language refresher instruction to 137 grantees of the De- partment, the Foreign Operations Administra- tion, and the Department of Defense, whose lan- guage proficiencies were inadequate to carry out their program. In the course of instruction, usually lasting 2 weeks or more, materials having to do with American government, social structure, and culture are used. University Orientation Centers Orientation centers were established in 12 col- leges and universities to provide an introduction to American life and the American system of higher education, as well as to give instruction in the English language to 544 foreign students as a preparation for their study in the United States. The Experiment in International Living also ar- ranged for 116 additional students to live in American homes for 6 weeks during the summer months. 6 ibid., September-October 1952 (Department of State publication 4714), p. 10. 507 April 5, 1954 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Allied Efforts To Restore Freedom of Movement in Germany Representatives of the United States, the United Kingdom, and France in recent weeks addressed identical letters to Soviet authorities in Germany proposing the removal of restrictions on freedom of movement within Germany.' Following are texts of the correspondence between Ambassador James B. Conant, U.S. High Commissioner for Germany, and Vladimir Semenov, Soviet High Commissioner for Germany, together with letters exchanged by Maj. Gen. Thomas S. Timberman, U.S. Commandant in Berlin, and Sergei Dengin, Berlin representative of the Soviet High Com- missioner for Germany. Ambassador Conant to Mr. Semenov, February 22 At the meeting in Berlin on February 18 of the Foreign Ministers of the U.K., U.S.A., France and the U.S.S.R., it was stated that the govern- ments of the U.K., the U.S.A. and France had initiated a study of the steps that could be taken to lessen the hardships which result for the German people from the present division of Germany.2 Although such steps are no substitute for the re- unification of Germany and the conclusion of a peace treaty which remain the objectives of its policy, the 'U.S. Government considers that it should be possible for the four occupying powers in Germany to reach immediate agreement on the elimination of a certain number of unjustifiable ob- stacles which still prevent freedom of movement between the different parts of Germany. The U.S. Government believes that the Four Powers could in this way bring about an immediate and essential improvement in the living conditions of all Ger- many. I therefore propose to you that we shall agree that each of us should, as appropriate, take the following measures : A. The abolition of the requirement for resi- dence permits for Germans residing in the Federal Territory who desire to travel to the Soviet Zone. The maintenance of this formality in fact consid- ' For earlier correspondence on this subject, see BULLE- TIN of Sept. 21, 1953, p. 391, and Oct. 12, 1953, p. 490. 'Foreign Ministers Meeting: Berlin Discussions, Janu- ary 5S February 18, 1954, Department of State publica- tion 5399, p. 129. erably reduces the effect of the abolition of inter- zonal passes which was decided at the and of 1953. B. The opening of the inter-zonal crossing points which have been closed by the Soviet au- thorities on various dates before the, middle of 1952. I would remind you of the proposal on this subject made to you in my letter of January 81 C. The improvement of inter-zonal road and rail transport services including the introduction of fast rail services with improved passenger fa- cilities between the principal cities of West Ger- many on the one hand and East Germany and Berlin on the other. D. The removal of the prohibited zone, the barbed wire fences and all other barriers placed in the Soviet Zone along the Soviet Zone border. E. The abolition of all controls and of all im- pediments to the free circulation of printed matter. As regards Berlin, we should agree upon suit- able methods for re-establishing more normal living conditions for the inhabitants of the city. In particular, I consider it necessary to reach de- cisions on the two following questions : A. The abolition of all formalities re movement of ppersons between Berlin and the Soviet Zone. B. The removal of all impediments to the free movement of persons and of goods between the Western sectors of Berlin and Western Germany; in particular the abolition of the requirement for the endorsement of Warenbegleitscheine [certifi- cates for goods in transit] for such goods by the authorities of the Soviet Zone and the introduc- tion of arrangements for the customs-free transit of such goods. I shall be glad to meet with you at ;your early convenience to discuss these proposals. If, as I hope, they are acceptable to you, tech- nical discussions may be required concerning pro- posals B and C in paragraph 2 above. In that event I shall be prepared to furnish the names of the German technical experts authorized to deal with these matters in respect of Western Germany and I would be glad to obtain corresponding in- formation from you. 508 Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 JW, 2 Oc' Qb1 Q0 t6relations I have authoAPffC& FPi l t Qg/25 G. P1AaRPP?Q1 contact with Mr. Dengin and to transmit to him between the two parts of Germany, and other a proposal dealing with the other restrictions questions, I deem it necessary to state the which we wish to see eliminated in Berlin. following : General Timberman to Mr. Dengin, February 22 In his letter of February 22 the United States High Commissioner has drawn Mr. Semenov's at- tention to the necessity of re-establishing more normal living conditions for the inhabitants of the city of Berlin. In particular he has expressed the desire that the four occupying powers should reach agreement on the removal of impediments to the freedom of movement of persons and goods be- tween the Western sectors of Berlin and Western Germany and on the abolition of all formalities re the movement of persons between Berlin and the Soviet Zone. In the same spirit and in order to eliminate all restrictions on freedom of communications be- tween the four sectors of Berlin, I request you to agree that the following measures should be put into effect: A. The abolition of police controls at the bor- ders and of other forms of hindrance to the com- plete freedom of movement of persons throughout the city. B. The removal of all street barriers between sectors. C. The re-establishment of direct tram services throughout the city. D. The re-establishment of the automatic city- wide telephone service. E. The re-establishment of reliable and efficient postal services throughout the city. F. The abolition of controls over and inter- ference with the free circulation of printed mat- ter, films and other cultural media throughout the city. I am convinced that an agreement should be reached on these different proposals for the com- mon good of the people ofBerlin and am ready, for my part, to discuss with you without delay all the measures required to put them into force. Should technical discussions be required con- cerning proposals C and D above, I am prepared to furnish the names of the German technicians authorized to deal with these matters for my sector and would be glad to receive similar information from you. Mr. Semenov to Ambassador Conant, March 6 [Translation] In acknowledgment of your letter of February 22, 1954 containing a proposal that the High Com- missioners of the Four Powers in Germany ex- amine certain problems concerning movement of the German population and goods across the demarcation line between Western and Eastern In the relations between Eastern and Western Germany there are a number of important prob- lems the solution of which is an urgent matter for the German people who are interested in the bringing together of Western and Eastern Ger- many, in the development of economic and cul- tural ties between the German Democratic Re- public and German Federal Republic. Taking this into account, at the Berlin Confer- ence of the four Foreign Ministers, after it had been made clear that it was impossible to effect agreement between the positions of the confer- ence participants on basic questions regarding the unification of Germany and the conclusion of a peace treaty, the Soviet Government sub- mitted for the consideration of the conference a proposal to recommend to the appropriate organs of Eastern and Western Germany the following : 4 1. The creation of an all-German committee with the functions of effecting agreement and coordination in the spheres of trade, financial settlements, transport, frontier and other ques- tions concerned with economic relations; 2. The creation of an all-German committee on problems of the development of cultural, sci- entific, and sport relations with the view of elim- inating existing obstacles to the development of German national culture. The creation of such all-German committees would best facilitate a solution of urgent internal German problems, since the settlement of these problems is the internal affair of the German people themselves. There can be no denial of the great significance for the populations of both parts of Germany of the questions referred to in your letter as well as of other practical questions in the relations between Eastern and Western Germany. All- German committees could immediately decide such internal German questions in the interests of the populations of both parts of Germany with- out the interference of the occupation powers. Problems relating to the situation in Berlin could also be examined and decided by German authorities. The establishment of the above-mentioned all- German committees would serve as an important contribution to the bringing together of Western and Eastern Germany and would facilitate the creation of conditions favorable for the unifica- tion of Germany. The government of the German Democratic Republic has officially stated that it is agreeable to the immediate launching of negotiations for the creation of all-German committees. The Soviet authorities for their part are ready to give Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 all possible assistance to the creation and func- tioning of roved FWor Release c ~OQ3T0 Y1~ a lA- ommi tte p Mr. Dengin to General Timberman, March 6 [Translation] Referring to your letter of February 22, I deem it necessary to advise you that in the letter of March 6 from the USSR High Commissioner for German yy to Mr. Conant it is pointed out that in- ternal (Grman problems could be successfully solved by all-German committees on economic and cultural relations between Eastern and Western Germany. With regard to practical questions relating to Berlin, suet" uch questions could also be settled by-ap- propriate representatives of the German authori- ties. Soviet authorities for their part will give every kind of assistance to the German authorities in the settlement of these questions. Toward this end, it is envisaged that the occupation authorities of the Western Powers will take immediate steps toward the normalization of the life of the Berlin population, and, particularly, will take appropri- ate measures for the liquidation of various criminal organizations, located in West Berlin and carrying on subversive work against the German Demo- cratic Republic, on which the Soviet authorities have repeatedly queried the occupation authorities of the US, UK, and France. Ambassador Conant to Mr. Semenov, March 17 I have received your reply of March 6, 1954 to my letter of February 22 in which I proposed to you that we should agree together with the British and French High Commissioners in Ger- many to eliminate immediately a number of un- justifiable obstacles which still prevent freedom of movement between the different parts of Germany. I regret, however, that instead of replying posi- tively to my proposals of dealing with the prac- tical and urgent problems with which we are faced, you have confined yourself in your reply merely to repeating M. Molotov's proposal for all-Ger- man committees which was rejected by the three Western Foreign Ministers at the Berlin confer- ence. The matters covered by my proposal must con- tinue closely to concern the four occupying pow- ers until such time as the reunification of Ger- many takes place. None of these powers can rightly evade its responsibilities in that respect. It is, therefore, the duty of the four powers to secure the removal of obstacles to free movement of Germans between the different parts of Ger- many, and insofar as the continued existence of such obstacles is due to action or inaction on the part of the authorities in Soviet occupied terri- tories, my government will continue to hold the Soviet authorities responsible for this hindrance l~j~ gg~ e~t ion of German n t'i 9 ' 1' , on that I have requested you, in my previous letter, to inform me of the Soviet, attitude towards the specific proposals which 1. have made and which I have offered to discuss with you. It is clear that certain of the questions mentioned in my letter of February 22 require only uni- lateral decision and action by the authorities of the Soviet Zone. These are: (A) The abolition of the requirement for resi- dence permits for Germans residing in the Federal territory who desire to travel to the Soviet Zone; (B) The removal of the prohibited zone, the barbed wire fences and all other barriers placed in the Soviet Zone along the interzonal border; (C) The abolition of all formalities regarding movement of persons between Berlin and the Soviet Zone. If, as I hope, the Soviet authorities share my government's desire to alleviate conditions which are oppressive to the German people, may I ask you to indicate to me at an early date that you are now ready to take steps to have the above measures put into effect? With regard to the further proposals made in my letter of February 22, I suggest that, in every case in which we consider it useful, discussions should take place between German technical ex- perts with a view to reaching practical solutions which, once they are agreed, should become effec- tive without delay. I shall be ready, as I have already informed you, to furnish you with the names of the experts authorized to deal with these matters in respect of Western Germany who would then meet with corresponding experts to be nom- inated by you. If you agree with the foregoing, I suggest that the first step should be for us to meet in order to draw up terms of reference which would enable the discussions between experts to begin at once. General Timberman to Mr. Dengin, March 17 I have the honor to refer to your letter of March 6, 1954. In my letter dated February 22, I asked you to signify your agreement to put into effect six practical measures intended to eliminate restric- tions on free communication between the four sectors of Berlin. I regret to note not only that have you not thought fit to associate yourself with these prac- tical proposals, but that you have evaded the real issues by repeating allegations, which are devoid of all foundation, about the existence in West Berlin of so-called espionage organizations. You suggest, in your reply, that "appropriate representatives of the German authorities" should Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 consult together in order to resolve "the practical questions relating to Berlin". U.S. and Canada Examine I must in thAo y eFpigrige ts%&D tOi1i25 : 1 PB0r1Mg0bOfOMbbn%6 of the proposals whit I made to you do not re- quire any consultation or prior discussion of this kind. This is the case, for instance, with regard to the abolition of police controls and the removal of the barriers erected at inter-sector borders. There are at present in the U.S. sector no police controls on the movement of persons between the U.S. sector and the other sectors. As for the bar- riers erected at the inter-sector borders, all those which were formerly in existence in the U.S. sector have been removed long ago. The same steps have been taken in the British and French sectors. It requires therefore only a decision by the au- thorities of the Soviet sector in order to eliminate these obstacles to freedom of movement. I shall be glad to learn that you are ready to take the necessary steps to put such a decision into effect as soon as possible. The solution of other questions mentioned in my letter of February 22 could, on the other hand, be facilitated by discussions between German tech- nical experts who would make preparations for putting the proposed measures into effect. It was with this in mind that I offered to furnish you with the names of the experts authorized to deal with these measures with respect to my sector. I hope that you for your part will agree to nomi- nate experts for the purpose of participating in such technical discussions, and I renew my pro- posal that we should meet together in order to draw up jointly the terms of reference required so that these discussions may begin without delay. "Sovereignty" of East Germany Statement by Lincoln White Department Press Officer 1 The reported proclamation [on March 25] of "full sovereignty" of the "East German Peoples Republic" is sheer facade. If these reports are true, the significant fact is the last one reported : That Soviet occupation troops would remain in East Germany. If those troops were removed, the entire puppet regime would collapse under the weight of the hatred and hostility of the populace which it has the effrontery to claim it represents. Letters of Credence Paraguay The newly appointed Ambassador of Paraguay, Guillermo Enciso Velloso, presented his creden- tials to the President on March 26. For the text of the Ambassador's remarks and the text of the President's reply, see Department of State press release 162. Text of Joint Communique Press release 143 dated March IT 1. The first meeting of the joint United States- Canadian Committee on Trade and Economic Affairs was held in Washington on the 16th of March. The United States was represented by: Hon. John Foster Dulles, Secretary of State Hon. George M. Humphrey, Secretary of the Treasury Hon. Ezra Taft Benson, Secretary of Agriculture Hon. Sinclair Weeks, Secretary of Commerce Canada was represented by : Rt. I-Ion. C. D. Howe, M. P., Minister of Trade and Commerce, and Defence Production Rt. Hon. James Garfield Gardiner, M. P., Minister of Agriculture Hon. Douglas Charles Abbott, M. P., Minister of Finance Hon. L. B. Pearson, M. P., Secretary of State for External Affairs In addition to the members of the Joint Com- mittee, Governor [Sherman] Adams, the Assistant to the President; the Honorable Douglas Stuart, United States Ambassador to Canada; and Dr. Gabriel Hauge, Economic Assistant to the Presi- dent, participated in the discussions. 2. The purpose of the meeting was to provide an opportunity for United States and Canadian Min- isters to examine the trade and economic problems that are common to both countries. 3. The Ministers noted that the flow of trade be- tween Canada and the United States is greater than that between any other two countries. They discussed various aspects of present trade rela- tions and agreed on the desirability of avoiding any action which would interfere with this trade from which the two countries derive such great benefits. 4. Since the common economic problems of Canada and the United States can be solved with greatest success in a world where the volume of trade is steady and increasing and where exchange arrangements are of a kind to facilitate such growth, consideration was given throughout the discussions to the need for action toward freer trade and payments on a broad front. It was agreed that few things would contribute more to the well-being and stability of the free nations of the world than a forward move in this direction. The need for such progress seemed all the greater at a time when many Western countries are faced with the necessity of supporting effective defense programs over a long period. 5. The United States and Canadian Ministers found encouragement in many of the economic Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 developm tl WR6FPiE *pSeo2 ?B SasiCIA-IRDIf toU4r (J Wrl4('t9@Djtd be :negotiated l i l year. They noted that the gold and dollar reserves of other countries generally have been rising; that there has been a marked improvement in the in- ternal economic stability of many countries; and that these favorable developments have made pos- sible some relaxation of import restrictions. Nevertheless, it was agreed that the recovery to economic health has not progressed equally for all countries. What is needed, it was concluded, is the creation of a more flexible system of trade and payments throughout the world which would offer greater resilience to changing circumstances and which would contribute dynamically towards ris- ing standards of living. It was agreed that much of the necessary preparation for such an advance has already been accomplished by the work of the Commission on Foreign Economic Polic in the United States, by the proposals of the Common- wealth Economic Conference, and by discussions within the Organization for European Economic Cooperation. 6. In the meantime, it was agreed that it is essential that pressing, but possibly temporary, economic problems should not be solved by expedi- ents which might make more difficult the advance on a broad front that was held to be necessary. One immediate problem which received close con- sideration was that raised by the accumulation of large agricultural surpluses. Special incentives and favorable weather conditions have operated in varying degrees to enlarge these surpluses. The Ministers of both countries recognized that if surpluses were to be disposed of without regard to the impact on normal trade, great damage might be done not only to the commerce of Canada and the United States but also to the world economy. The Ministers reaffirmed that it is the continuing policy of their respective governments, in dispos- ing of agricultural surpluses abroad, to consult with interested countries and not to interfere with normal commercial marketings. They stated that it is their settled intention that any extraordinary measures that might be adopted to reduce sur- pluses should result in greater consumption and should augment, and not displace, normal quanti- ties of agricultural products entering into world trade. 7. In advancing toward a freer system of world trade and payments, it was agreed that existing international organizations would continue to play an important role. The valuable work al- ready done by the International Monetary Fund, the International Bank, and the Contracting Parties of the General Agreement on Tariffs and Trade, was recognized. Ministers noted with sat- isfaction the arrangements which have recently been made within the Fund to enable its resources to be used more effectively. Acknowledgment was also made of the useful service that has been performed by GATT in developing a code of com- mercial conduct and in providing a forum where po icy a and where the problems of commerc 8. It was appreciated that it is for countries whose currencies are now inconvertible to decide when and under what circumstances they might wish to make them convertible. It was also real- ized that enlightened economic policies on the part of the United States and Canada will ma- terially contribute to establishing and maintain- ing broader freedom of trade and payments throughout the world. Because of the importance of that objective, the United States and Canadian Ministers warmly welcomed the evidence of a de- sire in many countries to take dec:.sive steps toward the restoration of a broad area of con- vertibility, and expressed a willingness to do their part to help in making such a movement successful. 9. The discussions at this meeting of the Joint Committee were marked by the friendliness and candor which are characteristic of relations be- tween the two countries. At the invitation of the Canadian Ministers the second meeting of the Joint Committee will be held in Ottawa. U.S. Views on Situation in Indochina News Conference Statement by Secretary Dulles Press release 154 dated March 23 I do not expect that there is going to be a Com- munist victory in Indochina. By that I don't mean that there may not be local affairs where one side or another will win victories, but in terms of a Communist domination of Indochina, I do not accept that as a probability. There is a very gall ant and brave struggle bein an carried on at Dien-Bien-Phu by the 'French Associated States Forces. It is an outpost. It has already inflicted very heavy damage upon the enemy. The French and Associated States Forces at Dien-Bien-Phu are writing, in my opinion, a notable chapter in military history. Dien-Bien- Phu is, as I say, an outpost position where only a very small percentage of the French Union forces is engaged and where a very considerable percent- age of the forces of the Viet Minh is engaged. Broadly speaking, the United States has, under its previously known policy, been extending aid in the form of money and materiel to the French Union Forces in Indochina. As their requests for materiel become known and their need for that becomes evident, we respond to it as rapidly as we can. Those requests have assumed various forms at various times. But I think that we have responded in a very prompt and effective manner to those requests. 512 Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 If there are further requests of that kind that are made, I have no doubt that our military or defense people will attempt to meet them. As soon as this press conference is over, I am meeting with Admiral Radford.' But so far I have not met General Ely,2 and I do not know what requests he has made, if any, in that respect be- cause that would be primarily a matter for the Defense people in any case. The policy has already been established so far as the political aspects of it are concerned. We have seen no reason to abandon the so-called Navarre 3 plan, which was, broadly speaking, a 2-year plan which anticipated, if not complete victory, at least decisive military results during the fighting season which would follow the present fighting season, which is roughly a year from now. As you recall, that plan contemplated a very substantial buildup of the local forces and their training and equipment. It was believed that under that program, assuming there were no seri- ous military reversals during the present fighting season, the upper hand could definitely be achieved in the area by the end of the next fighting season. There have been no such military reverses, and, as far as we can see, none are in prospect which would be of a character which would upset the broad timetable and strategy of the Navarre plan. Asked whether that ruled out any possibility of a negotiated peace at Geneva, Mr. Dulles replied: At any time if the Chinese Communists are willing to cut off military assistance and thereby demonstrate that they are not still aggressors in spirit, that would, of course, advance greatly the possibility of achieving peace and tranquility in the area. That is a result which we would like to see. To date, however, I have no evidence that they have changed their mood. One is always hopeful in those respects, but so far the evidence seems to indicate that the Chinese Communists are still in an aggressive, militaristic, and expansionist mood. Japan's Progress and Prospects by Deputy Under Secretary Murphy ? In nearly 50 years of its existence, the Japan Society has been of inestimable value to U. S.- Japanese relations. Your program of promoting cultural relations between our two great countries and in expanding the base of understanding of Japan in the United States is of service to both nations. Your work constitutes a genuine con- tribution to the goals of American foreign policy in a most critical area. It is much appreciated by those of us responsible for conducting America's foreign relations. Together with his many American friends, I extend a warm welcome to our guest of honor to- night, the new Ambassador of Japan to the United States, Sadao Iguchi. Ambassador Iguchi's dip- lomatic career is one of outstanding service to his country. We are honored that his Govern- ment has selected him as its representative here. 'Adm. Arthur W. Radford, Chairman of the Joint Chiefs of Staff. 'Gen. Paul Ely, French Chief of Staff. 'Gen. Henri-Eugene Navarre, French Commander in Indochina. 4 Address made before the Japan Society at New York, N. Y., on Mar. 18 (press release 146). April 5, 1954 293698-64-3 I first met Ambassador Iguchi when I went to Japan as Ambassador in 1952. He was then Vice-Minister in charge of the Japanese Foreign Office. I acquired it profound respect for him both as an official and as a person. Most of you, I am sure, will recall his diligent work as Japan's chief negotiator for the multilateral Treaty of Peace with Japan and his efforts in connection with the Security Pact between the United States and Japan. Although I know him to be an un- assuming and modest man, he can well be proud of his role in these achievements. Of course, one of the less heralded but, in its field, no less significant results in which Ambassa- dor Iguchi played a leading role in the early months of Japanese sovereignty was the arrange- ments by which Japan and America might benefit from the interchange of professors, students, and specialists in various fields. I refer to Ambassa- dor Iguchi's considerable part in concluding with my Government the Fulbright Agreement which laid the foundations for cultural exchange. One of the most rewarding experiences of my career was to serve as my Government's first Am- bassador to Japan on the conclusion of the treaty of peace. I had never previously served in the Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Orient. I came to Japan eager to learn about her people and her problems. The friendships ex- tended to me, the faith placed in our intentions, the unflagging consideration shown by high offi- cials in the Japanese Foreign Office and through- out the Government is an experience for which I shall always be grateful. At that time Ambassador Iguchi was the Under Secretary for Foreign Affairs. Now, Your Excellency, as Ambassador to the United States, it might be suggested that our positions are rather in reverse. But you are not a stranger to my country as I was to yours. Am- bassador Iguchi first came to America in 1933, when lie served as consul for 2 years in New York and then in Chicago for 1 year. After returning to Japan, Ambassador Iguchi came back to us in 1940 as Consul General in New York and then as Counselor of Embassy in Washington. Thus, Your Excellency, you bring to your new responsi- bilities a knowledge and experience of greatest value. You also return to America and to a wide circle of friends who remember you with esteem and affection. Ambassador Iguchi has many other qualities which endear him to Americans. Among them, he is a baseball player-at least, like many of us these later years, an armchair one-who owned the "Taiyo Whales." I don't know how the record of the Whales would compare with the Yankees; perhaps he will feel more at home with the Sena- tors. In any case, another hobby of his, golf, will doubtless protect him from the rigors of Wash- ington. Ambassador Iguchi is, furthermore, one of the postwar leaders of Japan who has contributed most effectively to Japan's progress in reestab- lishing itself within the community of nations. There is no denying that Japan, its leaders, and its people still have a long, hard road to travel before reaching their objectives. Nevertheless, the strides made since the end of the war support the conviction that the courage and determination of the Japanese nation will produce success. At a time when American responsibilities for occupa- tion and reconstruction have ceased, Japan and the United States have entered an era of friendly and understanding cooperation. Postwar Treaties With Japan For example, one of the major steps Japan and the United States have taken together is the com- pletion of a Treaty of Friendship, Commerce, and Navigation, which I signed at Tokyo last April. This is the first commercial treaty entered into by Japan since the war. Based on a belief in the mutual benefit of expanded trade, commer- cial relations between the two countries have been placed on a basis that grants the businessmen of our respective countries more freedom of action. Japan is also a participant in the General Agree- ment on Tariffs and Trade. Thirty-four contract- ing parties to GATT and Japan have agreed that commercial relations between them will be based on the agreement until Japan becomes a full mem- ber of GATT, probably by mid-1955. In early February regularly scheduled com- mercial flights were started by Japan Air Lines be- tween Tokyo and San Francisco, a result of the recent United States-Japanese Civil Air Transport Agreement. This agreement has been effective since September 1953. A 4-year copyright arrangement between the United States and Japan was established last November 10 to protect both Japanese and Ameri- can literary, artistic, and musical works. Both of our Governments look forward to the day when a permanent copyright agreement can be reached on a mutually satisfactory basis. A protocol on the exercise of criminal juris- diction over United States forces in Japan was negotiated and signed on September 29, 1953, granting Japan the same rights as are enjoyed by the NATO countries. On February 12 our Ambas- sador at Tokyo signed an agreement on behalf of the United Nations forces stationed in Japan which accorded them substantially the same treat- ment as is accorded to United States forces there. Japan's Bid for-U.N. Membership The United States, as you know, has sponsored Japan's bid for United Nations membership, when we presented a resolution to that effect to the Security Council in August 1952. The Soviet Union used the veto to block Japan's admission.5 In December of that year it also opposed a reso- lution of the General Assembly which registered the opinion that Japan was a peace-loving state within the meaning of the charter and should there- fore be admitted to membership. The United States will continue to press for Japan's admission to the United Nations. Ambas- sador Warren Austin stated our position in Sep- tember 1952. He declared : It is for the Security Council to say whether Japan is a peace-loving state, able and willing to carry out its obligations under the charter. In the opinion of my Gov- ernment, Japan fully possesses all of these qualifications. Japan desires to be a part of and play an important role in the international community. As 'a state which now lacks the means of self-defense, she needs collective security as envisioned by the United Nations Charter. 'The United Nations needs this nation of 85,000,000 people. Japan's membership will strengthen the United Nations and will assist in achieving the maintenance of inter- national peace and security. The United States is proud to recognize Japan's return to the international community of nations and to put before the Security Council the draft resolution in support of Japan's application for admission to the United Nations.6 'For a statement by Mr. Murphy regarding the Soviet veto, see BULLETIN of Oct. 6, 1952, p. 524, 6 Ibid., p. 526. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 This ositio EA" W / 5 : I P 00 21f,1 1 01 003-6 negot. p 9g < a he to es as iated with years ago. The United Nations needs Japan and sovereign nations throughout the world. In effect Japan needs the United Nations. Let us hope this agreement makes Japan a full member of that the Soviet Union will soon recognize the the free world team. barrenness of its position and vote to admit Japan In planning a program to assist Japan in to its rightful place among the members of the strengthening its defenses, we recognize that an United Nations. essential element for consideration is its economic Until such time as its admission becomes a fact, stability. We shall also provide a military assist- Japan is maintaining its interest in the work of the ance advisory group to help train the Japanese United Nations through its permanent observer forces. This agreement represents an important delegation. step to redress a situation which at one time saw Japan is a member of the International Court Japan completely defenseless and entirely under of Justice, of the International Monetary Fund, the protection of United States forces. and of the International Bank for Reconstruction Of course, the Soviet Union has attacked and and Development. It is a member and is on the will continue to attack this step toward safeguard- Council of the Food and Agriculture Organiza- ing the integrity of Japan as a threat to itself. tion. Other specialized agencies to which the Sometimes one may wonder how naive the Com- country belongs are the International Labor munists think the rest of the world may be; when Organization, the International Telecommunica- their power drive smashed down across the 38th tion Union, the Universal Postal Union, the World parallel and ravaged the Republic of Korea., the Health Organization, the International Civil source of aggression in Asia was immediately Aviation Organization, and the World Meteor- apparent. ological Organization. Japan is also an associate member of the Economic Commission for Asia and the Far East. Japan's active participation in the International North Pacific Fisheries Commission, for which provision was made in the International Conven- tion for the High Seas Fisheries of the North Pacific Ocean, demonstrates Japan's cooperation with Canada and the United States in the. sphere of fisheries conservation. The first meeting of the Commission was held in Washington last month. Discussions centered around organiza- tional matters and research programs on fish of common concern to the three countries. U.S.-Japanese relations were further cemented last Christmas Day, when control of the Amami Oshima Group, the northernmost of the Ryukyus, was relinquished to Japan. Mutual Defense Assistance Agreement The Mutual Defense Assistance Agreement signed last week at Tokyo is, in the view of the United States, a logical step in implementation of the Security Treaty between the United States and Japan, which became effective simultaneously with the Treaty of Peace on April 28, 1952. You will recall that the preamble to the Security Treaty states that the United States is ".. . willing to maintain certain of its armed forces in and about Japan, in the expectation, however, that Japan will itself increasingly assume respon- sibility for its own defense. ..." The Mutual Defense Assistance Agreement provides the basis for the grant of assistance pur- suant to the mutual security legislation of the United States. It takes us nearer to the time when we shall be able to withdraw our forces from Japan. The agreement signed last week is not unique. It is one of a series of such agree- April 5, 1954 Aim of Communist Aggression in Korea And, further, it was clear that South Korea was not the main Communist target. The Commu- nists were aiming at Japan. By occupying the Korean Peninsula, the aggressors would have held the historical dagger aimed at Japan's heart. When the United Nations stalled this move, the immediate Communist threat to Japan was checked. In this breathing spell, Japan and the United States are working together to guarantee that any such future threat will not find Japan unprepared. Now that Japan has joined with the United States in a Mutual Defense Assistance Agreement, the question naturally arises : "What does this mean with regard to the evolution of regional security in the Pacific?" In some quarters, questions arise as to why we have not gone ahead and organized a Pacific pact as we did for the North Atlantic community. Such questions miss the problem entirely. As you know, the United States is on record as favoring a regional security arrangement in the Pacific. We feel that the menace to the free world by international communism is great. However, one does not bring such organizations as NATO into being with a wave of the wand. NATO, like any . regional security agreement, evolves from a set of essential conditions. A pri- mary condition was a common recognition of a common peril from without. Another condition was the habit of cooperation that had evolved over a period of many years. A third condition was the conviction shared by all that the security of each could only be achieved through collective action. Clearly, unless these conditions obtained in the North Atlantic community, it would have been Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 roved For R lea 3/ CI foolish to a fepmpt a regiona~ orRaen i t - eady been ap h TT t d St f. Sentite While these e the conditions were there. Consequently, the or- ganization was possible. The situation in the Pacific is very different. In the past decade the area has, witnessed the birth of many new national states preoccupied in large measure with their internal problems and still distracted to some extent by memories of Western colonialism. The idea that Communist imperialism is the immediate and major threat has been slow in taking hold. Some have come to recognize this menace more rapidly than others. Consequently, we cannot expect to find a positive trend afoot aiming at the establishment of a Pacific coalition. In addition, as of now, the type of relationships between the nations of the Pacific area. necessary before collective action can be effected is as yet undeveloped. Several Far Eastern nations have failed to conclude treaties with Japan, and sev- eral have not recognized the Associated States. Although these divergencies may not be serious in the long run, they militate against the kind of cooperation and collaboration upon which real regional security depends. To those who know the region and its problems, it is clear that the initiative for a Pacific regional grouping must come from the Asian countries themselves. The leadership must develop there. This country can only stand ready to encourage the movements, to give support when needed, and to participate when invited. The fundamental decisions on Asiatic-Pacific security must be made by Asians themselves. Growth of Inter-Asian Understanding It is encouraging to note that the specific con- ditions mentioned earlier, on which the develop- ment of a Pacific pact rests, are coming into being. Inter-Asian understanding is growing. And rec- ognition of the true character of Communist im- perialism is spreading steadily. The Communists themselves have aided the spread of this recogni- tion is no small fashion. Their attack on the Re- public of Korea, their performances at Panmun- jom, their war in Indochina-all these reveal them in their true colors. And as they continue to press their strategy of conquest, their identification as imperialists, as the exponents of a. new and pecul- iarly vicious twentieth-century colonialism, be- comes more and more clear. While it has not been possible to bring an "Asian NATO" into being, the United States has been contributing to a strengthening of the free world's defense in the area. As part of our con- tribution, we have concluded a series of bilateral security agreements with Pacific powers. The agreement with Australia, and New Zealand, known as ANzus, has been operative for several years now. We also have pacts with the Republic of the Philippines and with Japan. The pact proved byte m e, a agreements are similar in framework, they are separate and distinct-each from the other. They contain no provisos which could offer obstruction to a regional agreement. Indeed, it is conceivable that their effect would be quite the reverse. In the most practical of terms, cooperation, be- tween individuals or between nations, is a habit that requires cultivation. I believe we can ex- pect that, under the spur of Communist ambitions in Asia and the Pacific, the nations of the area will move toward collective action as the only practical safeguard against the Red aggressor. The United Nations Economic Commission for Asia and the Far East is another activity that is helping to cultivate the habit of cooperation about which we have talked. In ECAFE we find'. a highly diverse group of nations which have joined hands to tackle regional economic and social problems. Their efforts have already met with some success. Perhaps it is significant that collective action is first going forward in the field of economics, be- cause it is there that some of the most pressing and immediate difficulties are to be found. Japan's Economic Needs As mentioned earlier, it is essential that Japan gain sufficient strength to assume responsibility for her own defense. To do so, the Japanese economy must add a good deal of muscle. And the neces- sary muscle will not be easily developed. The country is now under terrific pressure from a rap- idly expanding population. Without a corre- sponding increase in economic activity., levels of living will drop rather than rise and make Japan susceptible to the spread of Communist subver- sion within its borders. Pressures would also increase for trade with Communist China. Because of this as well as the economic require- ments of effective self-defense, a large and expand- ing volume of Japanese industrial production and foreign trade is essential. We. must be frank enough to recognize that this will not be possible unless the U.S. is willing to continue to lead the world in reducing trade barriers and increasing purchasing power in the free world. With the end of the fighting in Korea, the end of our special expenditures in Japan is in sight., although it will probably be a year or more before the full. impact of this move is felt. What we do to take up the slack in this situation will in large measure deter- mine the economic future of Japan. Japan's industrial recovery since the war has been phenomenal. Its present industrial produc- tion is half again what it was in 194:0, and its capacity is thought to be equal to 25 percent of the Soviet Union's. The problem facing Japan today, therefore, is how to employ this industrial production to cut down the imbalance in Japanese trade. 516 Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Since JapaA vic,6 -A ,3$qt, 4Q, J4 h25 terials and about one-fourth of its food, it will have to have access to world, markets and be able to compete for them on equal terms. This is not the case at present, and thus Japan's imports dangerously outweigh its exports. In 1952 the adverse trade balance reached $759 million. Japan's trade deficit in 1953 is estimated to be $1,135 million, larger by far than any pre- vious year. This is a grave situation, which has been sustained thus far only by our special ex- penditures in connection with the Korean hostili- ties and the stationing of our forces in Japan, which, of course, are no permanent solution to Japan's problem. Japan's trade with the United States is also sharply out of balance-the deficit in 1952 was $539 million. Almost one-third of all Japanese imports came from the United States, and we bought about one-sixth of Japan's total exports. In 1952 Japan was our largest customer for cotton, rice, barley, and soybeans and our second most important buyer of wheat. Reduction of Tariff Barriers We have a self-evident stake in preserving and expanding'the market for U.S. goods in Japan. Equally important to recognize is the necessity for Japan to sell in the American market. It is the only way Japan can earn dollars to continue to buy in the United States so long as most currencies of the world are inconvertible. I recognize that there are many serious problems involved in this question, but the fact remains that we must buy more Japanese goods in this country-and that means lower tariffs. There are several recommendations in the recent report of the Randall Commission which, if im- plemented, can be of benefit not only to the United States but to the Japanese economy as well. The recommendations which call for further simplifi- cation of customs procedures and for authorizing the President to reduce tariff barriers would im- prove the Japanese export outlook significantly. Legislation permitting the United States to take the lead in reducing world trade barriers would probably enable Japan to negotiate fully with the contracting parties to the General Agreement on Tariffs and Trade, with a view to becoming a full-fledged contracting party to the agreement. Tariff negotiations with the United States would result in an increased volume of U.S.-Japanese ctf4dLzR @hOA441 0&19PA4T @ntageous to both nations. Recommendations of the Randall Commission of importance in our economic relations with Japan are those which call for a vigorously pressed program of technical assistance and the creation abroad of a climate conducive to, private foreign investment. The Commission also sug- gests U.S. Government loans where economic aid is needed and cannot be provided by private or international sources. These recommendations would be particularly important in increasing the purchasing power of Southeast Asia, an area, in which expanded trade regulations with Japan would be immensely beneficial to all parties concerned. I should like to make it clear that we are not favoring Japanese trading interests at the ex- pense o'those of U.S. and European businessmen trading in Southeast Asia or to the detriment of the countries of that area. An increase in Japan's trade with Southeast Asia would not be a gift benevolently bestowed but a reward that the Jap- anese businessmen would have to earn on a, basis of effort and merit. Japanese competition in the Southeast Asian market will undoubtedly create new problems in some places, but I am convinced that the market is large enough for all comers. With nearly a billion people in the area. whose needs cannot pos- sibly be filled in the immediate future, the influx of Japanese trade would work to the advantage of everyone concerned. This review of Japan's progress since it re- gained sovereignty is by no means complete, as you are well aware. But I think it sketches in some general lines that show how far Japan has progressed in that period and what must be achieved in the future. A cautious optimism about the future of Japan is justified, but we should recognize the many pitfalls to be avoided and the numerous obstacles to be overcome before the danger zone is passed through. We are all familiar with the old expression that "the first hundred years are the hardest." The first hundred years of formal relations between the United States and Japan come to an end on March 31, the 100th anniversary of the Treaty of Kanagawa. Let us indeed hope that the hard- est years are behind us and go forward together in the confidence that our friendly relations are heralding the advent of a century of friendly co- operation, of peace and prosperity. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 U.S. and Japan Sign Mutual Defense Assistance Agreement Following are the tuts of (1) a U.S.-Japanese joint communique of March 8 regarding the sign- ing on that date of the Mutual Defense Assistance Agreement, (0) a statement made by Ambassador John M. Allison on the occasion of the signing of the agreement, and (3) the agreement, together with related agreements and arrangements signed on the same date. Press release 117 dated March 8 Japanese Foreign Minister Katsuo Okazaki and American Ambassador John M. Allison in a cere- mony held at the Foreign Office today signed a Mutual Defense Assistance Agreement between Japan and the United States of America. At the same time they signed a series of three other re- lated agreements pertaining to the purchase of agricultural commodities, economic arrangements, and guaranty of investments, and arrangements for the return of equipment under the Mutual De- fense Assistance Agreement. The Mutual Defense Assistance Agreement signed today is modeled after similar agreements between the United States and many other nations participating in the Mutual Security Program. It provides the basis for the grant of assistance pursuant to the Mutual Security legislation of the United States, and is designed to facilitate the planning of a Defense Assistance Program for Japan with recognition that economic stability of the country is an essential element for consid- eration in developing its defense capacities. The agreement also contemplates the establishment of an American MAAG 1 to operate under the direc- tion and control of the American Ambassador in Japan. This group will serve in an advisory ca- pacity to assist and guide the development of Japanese defense forces. The Japanese Govern- ment has agreed to provide the sum of yen 357,- 300,000 or approximately $990,000, in addition to certain contributions in kind, for the purpose of meeting the expenses of the MAAG. The arrangements for the return of equipment are closely related to the MDA agreement, and pro- vide generally that any equipment furnished to Japan no longer required for the purposes in- tended shall be returned in accordance with mu- tually agreed procedures. The agreement concerning the purchase of agri- cultural commodities lays the basis for the sale to Japan of surplus American agricultural proj- ects of a value not to exceed $50,000,000. Accord- ing to this agreement, the United States will pay dollars to purchase the products and Japan will deposit a yen equivalent in the Bank of Japan in favor of the United States. Under the terms of the agreement on economic arrangements, 20 per- cent of this deposit or not more than the yen equivalent of $10,000,000 will be made available by the United States in the form of y,-Ti grants to Japan for the purpose of assisting Japanese de- fense industry and for other purposes serving to promote Japan's economic capacities. The re- maining 80 percent; of this fund will bs used by the United States to procure goods and services in Japan in support of the Military Assistance Pro- gram. The agreement concerning investment guaranties is designed to provide certain safe- guards to American businessmen in an. effort to stimulate investments in Japan. These agreements will be submitted to the Diet for its action and will enter into force when the United States is notified of Japan's ratification or approval of the agreements. Press release 118 dated March 8 We are about to sign today a mutual defense assistance agreement and three allied agreements. Those officers in both our Governments who have been arduously engaged for so long in the details of these negotiations deserve our thanks and congratulations. There are two points which at the very begin- ning I wish to emphasize. One is that these are mutual agreements and secondly, that, they are the result of 8 months of negotiations. These two facts are interrelated. If these were not mutual agreements, freely entered into, there would have been no necessity for 8 months of negotiations. The very essence of the documents Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 we are signin ppttj'i dl ffgr I pa Md1 Q 05 beliefs, both of the Japanese and American nego- tiators, that their signature will be in the mutual interest of both our countries. These agreements require our countries to assume mutual obligations but they give our countries mutual benefits. The Investment Guarantee Agreement will not solve Japan's economic problems but it will help in a modest way to encourage American capital to come to Japan to build up your industry, pro- vide more jobs for your workers, and develop more exports to pay for the imports you must have. That is your gain. Our benefit is not only profit for individual firms, but, more important, it represents a further step toward making the Japanese economy strong, healthy, and independ- ent of . outside assistance or special dollar expenditures. The Purchase Agreement under section 550 2 and the companion Economic Arrangements Agreement likewise serve both our interests. Un- der them 500,000 tons of surplus wheat and 100,- 000 tons of surplus barley which our farmers and a bountiful nature have pproduced, will be sold on terms advantageous to Japan and without cost to you in dollars. One of the benefits is that it will help to tide you over the consequences of last year's rice crop failure and flood disaster. The yen which you pay us for this wheat will be turned back to Japan to help build up your de- fense industries and to purchase goods which will enable the Japanese people and other free peoples to defend themselves against the threat of Com- munist imperialism. Thus these two agreements also serve both our national interests. The Mutual Defense Assistance Agreement is, of course, the basic one. Since negotiations were commenced last July there has been much public and press discussion and debate in Japan about this agreement. That is good. It is only as a result of public discussion and debate that govern- ments of free peoples can successfully hammer out these policies which are in their own interest. It is only the totalitarian governments which feel they can make agreements and establish funda- mental policies without the consent of the people as voiced by their elected representatives. However, in spite of the public discussion given to this subject, I am afraid there is still in some quarters misunderstanding and a reluctance to accept the plain facts of the case. In spite of what has been and is still being said, you will look in vain for any requirement in the Mutual Defense Assistance Agreement that Japan send its young men abroad. You will look in vain for any re- quirement that Japan take any action to which its Government does not of its own free will agree. Let me quote again from a statement by Secretary of State Dulles made just before our negotiations 2 For text of sec. 550 of the Mutual Security Act, see BULLETIN of Nov. 9, 1953, p. 639. April 5, 1954 n~A~i~~tl to in my remarks at that time. In speaking of the mutual security program for Japan, Secretary Dulles said that it would be "purely of a defensive nature, directed exclusively toward contributing to the defense and internal security of the Japanese homeland".3 Another prevalent misconception is that by signing this agreement Japan subordinates eco- nomic rehabilitation of its people to a purely mili- tary effort. Here again let me recall what I pointed out 8 months ago when I quoted President Eisenhower's message of May 5 last year in which he presented the mutual security program to the Congress. The President stressed certain con- clusions about this program which I believe are fundamental and of great importance. He said : The United States and our partners throughout the world must stand ready, for many years if necessary, to build and maintain adequate defenses. To accomplish this objective we must avoid so rapid a military buildup that we seriously dislocate our econo- mies. Military strength is most effective-indeed it can be maintained-only if it rests on a solid economic base. We must help the free nations to help themselves in eradicating conditions which corrode and destroy the will for freedom and democracy from within. I felt it necessary, Mr. Minister, to recall these previous statements in order to make clear that America's purpose in concluding these agreements has been consistent and enlightened. In a specific sense these agreements are for the purpose of help- ing Japan undertake a larger share of its own defense. This agreement takes us one step nearer the time when the Japanese people will not need to rely on American forces for protection. It takes us one step nearer the time when the United States can withdraw its forces from Japan. The great- est contribution Japan can make to the security of the free world is to strengthen her own security and be in a position to assure her own people that they will be able to live and develop their own ideas and their own culture in their own way and not become subject to an alien dictatorship. A strong, free, and enlightened Japan can contribute much to the peace and stability of Asia and the world. It is my belief that these agreements we are signing today will contribute toward the build- ino of such a Japan. It is also important, I believe, to point out that this agreement is not unique, but that in signing it the Japanese Government is following a pattern already set by many countries in all parts of the world. The United States has entered into these agreements in order to assist in building up eco- nomic power and defensive strength of friendly nations. Slowly but surely-through their own efforts and with some help from us-the nations which treasure their national independence are strengthening their economic foundations and creating the means of defending themselves 2 BULLETIN of July 20, 1953, p. 91. ' Ibid, May 25, 1953, p. 735. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 P.Jqq arnoved of aion. For Release 20&3/03/21: CIA- o n n e e Charter of the g gg - against the Ap ail- In d i t b simple meaning and purpose of this ceremony today. Mr. Ministier, I consider it indeed a, great privi- lege to be. able to represent my Government on this historic occasion. I can also assure you, Mr. Minister, that I shall always treasure this moment as a true indication of the ever-increasing friend- ship between. our peoples and of cooperation be- tween our nations. Mutual Defense Assistance Agreement Between the United States of America and Japan The Government of the United States of America and the Government of Japan, Desiring to foster international peace and security, within the framework of the Charter of the United Na- tions, through voluntary arrangements which will further the ability of nations dedicated to the purposes and prin- ciples of the Charter to develop effective measures for individual and collective self-defense in support of those purposes and principles ; Reaffirming their belief as stated in the Treaty of Peace with Japan signed at the city of San Francisco on Sep- tember 8, 1951 that Japan as a sovereign nation possesses the inherent right of individual or collective self-defense referred to in Article 51 of the Charter of the United Nations ; Recalling the preamble of the Security Treaty between the United States of America and Japan, signed at the city of San Francisco on September 8, 1951, to the effect that the United States of America, in the interest of peace and security, would maintain certain of its armed forces in and about Japan as a provisional arrangement in the expectation that Japan will itself increasingly assume responsibility for its own defense against direct and indi- rect aggression, always avoiding any armament which could be an offensive threat or serve other than to pro- mote peace and security in accordance with the purposes and principles of the Charter of the United Nations; Recognizing that, in the planning of a defense assistance program for Japan, economic stability will be an essential element for consideration in the development of its de- fense capacities, and that Japan can contribute only to the extent permitted by its general economic condition and capacities ; Taking into consideration the support that the Gov- ernment of the United States of America has brought to these principles by enacting the Mutual Defense Assistance Act of 1949, as amended, and the Mutual Security Act of 1951, as amended, which provide for the furnishing of defense assistance by the United States of America in furtherance of the objectives referred to above; and Desiring to set forth the conditions which will govern the furnishing of such assistance ; Have agreed as follows : 1. Each Government, consistently with the principle that economic stability is essential to international peace and security, will make available to the other and to such other governments as the two Governments signatory to the present Agreement may in each case agree upon, such equipment, materials, services, or other assistance as the Government furnishing such assistance may au- thorize, in accordance with such detailed arrangements as may be made between them. The furnishing and use of any such assistance as may be authorized by either a e av ance as may e s United Nations. Such ass able by the Government of the United States of America pursuant to the present Agreement will be furnished under those provisions, and subject to all of those terms, conditions and termination provisions of the :Mutual De- fense Assistance Act of 1949, the Mutual Security Act of 1951, acts amendatory and supplementary thereto, and appropriation acts thereunder which may affect the fur- nishing of such assistance. 2. Each Government will make effective use of assist- ance received pursuant to the present Agreement for the purposes of promoting peace and security in a manner that is satisfactory to both Governments, and neither Government, without the prior consent of the other, will devote such assistance to any other purpose. 3. Each Government will offer for return to the other, in accordance with terms, conditions and procedures mutually agreed upon, equipment or materials furnished under the present Agreement, except equipment and ma- terials furnished on terms requiring reimbursement, and no longer required for the purposes for which it was originally made available. 4. In the interest of common security, each Govern- ment undertakes not to transfer to any person not an officer or agent of such. Government, or to any other gov- ernment, title to or possession of any equipment, mate- rials, or services received pursuant to the present Agree- ment, without the prior consent of the Government which furnished such assistance. ARTICLE II In conformity with the principle of mutual aid, the Government of Japan agrees to facilitate the production and transfer to the Government of the United States of America for such period of time, in such quantities and upon such terms and conditions as may be agreed upon of raw and semi-processed materials required by the United States of America as a result of deficiencies or potential deficiencies in its own resources, and which may be available in Japan. Arrangements for such trans- fers shall give due regard to requirements for domestic use and commercial export as determined by the Govern- ment of Japan. ARTICLE III 1. Each Government will take such security measures as may be agreed upon between the two Governments in order to prevent the disclosure or compromise of classified articles, services or information furnished by the other Government pursuant to the present Agree- ment. 2. Each Government will take appropriate measures consistent with security to keep the public informed of operations under the present Agreement. The two Governments will, upon the request of either of them, make appropriate arrangements providing for the methods and terms of the exchange of industrial property rights and technical information for defense which will expedite such exchange and at the same time protect private interests and maintain security safeguards. ARTICLE V The two Governments will consult for the purpose of establishing procedures whereby the Government of Japan will so deposit, segregate, or assure title to all funds allo- cated to or derived from any programs of assistance undertaken by the Government of the United States of America so that such funds shall not be subject to gar- nishment, attachment, seizure or other legal process by any person, firm, agency, corporation, organization or government, when the Government of Japan is advised by the Government of the United States of America that any such legal process would interfere with the attain- ment of the objectives of the program of assistance. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Appr v Fw Release 2003/03/25 : CIA-RDP60-00442800 10Q140003-6 1. The Government of Japan will grant a. Exemption from duties and internal taxation upon importation or exportation to materials, sup- plies or equipment imported into or exported from its territory under the present Agreement or any similar agreement between the Government of the United States of America and the Government of any other country receiving assistance, except as otherwise agreed to ; and b. Exemption from and refund of Japanese taxes, as enumerated in the attached Annex E, so far as they may affect expenditures of or financed by the Government of the United States of America effected in Japan for procurement of materials, supplies, equipment and services under the present Agreement or any similar agreement between the Government of the United States of America and the Government of any other country receiving assistance. 2. Exemption from duties and exemption from and refund of Japanese taxes as enumerated in the attached Annex E will apply, in addition, to any other expenditures of or financed by the Government of the United States of America for materials, supplies, equipment and services for mutual defense, including expenditures made in con- formity with the Security Treaty between the United States of America and Japan or any foreign aid program of the Government of the United States of America under the Mutual Security Act of 1951, as amended, or any acts supplementary, amendatory or successory thereto. ARTICLE VII 1. The Government of Japan agrees to receive personnel of the Government of the United States of America who will discharge in the territory of Japan the responsibilities of the latter Government regarding equipment, materials, and services furnished under the present Agreement, and who will be accorded facilities to observe the progress of the assistance furnished by the Government of the United States of America under the present Agreement. Such personnel who are nationals of the United States of America, including personnel temporarily assigned, will, in their relationships with the Government of Japan, operate as part of the Embassy of the United States of America under the direction and control of the Chief of the Diplomatic Mission, and will have the same privileges and immunities as are accorded to other personnel with corresponding rank in the Embassy of the United States of America. 2. The Government of Japan will make available, from time to time, to the Government of the United States of America funds in yen for the administrative and re- lated expenses of the latter Government in connection with carrying out the present Agreement. ARTICLE VIII The Government of Japan, reaffirming its determina- tion to join in promoting international understanding and good will, and maintaining world peace, to take such action as may be mutually agreed upon to eliminate causes of international tension, and to fulfill the military obligations which the Government of Japan has assumed under the Security Treaty between the United States of America and Japan, will make, consistent with the politi- cal and economic stability of Japan, the full contribution permitted by its manpower, resources, facilities and gen- eral economic condition to the development and mainte- nance of its own defensive strength and the defensive strength of the free world, take all reasonable measures which may be needed to develop its defense capacities, and take appropriate steps to ensure the effective utiliza- tion of any assistance provided by the Government of the United States of America. 1. Nothing contained in the present Agreement shall be construed to alter or otherwise modify the Security Treaty between the United States of America and Japan or any arrangements concluded thereunder. 2. The present Agreement will be implemented by each Government in accordance with the constitutional pro- visions of the respective countries. ARTICLE X 1. The two Governments will, upon the request of either of them, consult regarding any matter relating to the ap- plication of the present Agreement or to operations or arrangements carried out pursuant to the present Agreement. 2. The terms of the present Agreement may be reviewed at the request of either of the two Governments or amended by agreement between them at any time. 1. The present Agreement shall come into force on the date of receipt by the Government of the United States of America of a written notice from the Government of Japan of ratification of the Agreement by Japan. 2. The present Agreement will thereafter continue in force until one year after the date of receipt by either Government of a written notice of the intention of the other to terminate it, provided that the provisions of Article I, paragraphs: 2, 3 and 4, and arrangements entered into under Article III, paragraph 1 and Article IV shall remain in force unless otherwise agreed by the two Gov- ernments. 3. The Annexes to the present Agreement shall form an integral part thereof. 4. The present Agreement shall be registered with the Secretariat of the United Nations. IN WITNESS WHEREOF the representatives of the two Governments, duly authorized for the purpose, have signed the present Agreement. DONE in duplicate, in the English and Japanese lan- guages, both equally authentic, at Tokyo, this eighth day of March, one thousand nine hundred fifty-four. For the United States of America : JOHN M. ALLISON For Japan: KATSUO OKAZAKI ANNEx A In carrying out the present Agreement, the Government of the United States of America will give every considera- tion, to the extent that other factors will permit, to pro- curement in Japan of supplies and equipment to be made available to Japan, as well as to other countries, where feasible, and to providing information to and facilitating the training of technicians from Japan's defense-produc- tion industries. In this connection, representatives of the Government of Japan stated that the development of Japan's defense capacities will greatly be facilitated if the Government of the United States of America will give consideration to assisting in the financing of Japan's defense-production industries. The two Governments recognize the advisability of establishing adequate liaison between them to facilitate procurement by the Government of the United States of America in Japan. ANNEx B The security measures which the Government of Japan agrees to take pursuant to Article III, paragraph 1 will be such as would guarantee the same degree of security and protection as provided in the United States of America, and no disclosure to any person not an officer or agent of the Government of Japan of classified articles, services or information accepted by Japan, will be made Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 without the prior consent of the Government of the United States of America,. considered part of the Diplo- United States of America. matic Mission of the Government of the United States of Aooroved For-Release 2003/03/25 : CIA- 1&0~10 42 1 MO8O& &s of personnel of The two Governments recognize the benefits to be de- rived from the principle of standardization, and agree to the advisability of taking feasible joint measures to achieve that degree of standardization, with respect to specifications and quality, which will promote the effec- tive utilization and maintenance of any assistance furnished under the present Agreement. ANNEx D In the Interest of common security, the Government of Japan will cooperate with the Governments of the United States of America and other peace-loving countries in taking measures to control trade with nations which threaten the maintenance of world peace. To effectuate Article VI, the Governments of the United States of America and Japan agree as follows: 1. The Japanese taxes referred to in Article VI, para- graph lb and paragraph 2, are as follows : a. Commodity tax ; b. Travelling tax ; c. Gasoline tax ; d. Electricity and gas tax. With respect to any present or future taxes of Japan not specifically referred to in this Annex which might be found to be applicable to the expenditures covered by Article VI, the two Governments will agree upon procedures for granting exemption and refund. Exemption from duties and exemption from and re- fund of Japanese taxes will be applied upon appro- priate certification by the Government of the United States of America. Materials, supplies and equipment imported into or procured by the Government of the United States of America in Japan exempt from duties and taxes under Article VI, shall not be disposed of in Japan except as such disposal may be authorized by the authorities of the United States of America and Japan in accordance with mutually agreed conditions. Nothing in Article VI, or this Annex shall be con- strued to a. Require exemption from import or export pro- cedures provided for by the laws of Japan, or b. Affect exemption from, duties and internal taxa- tion provided for by the laws of Japan In accord- ance with existing agreements and arrangements such as the Administrative Agreement under Article III of the Security Treaty between the United States of America and Japan. 1. With respect to the facilities to be accorded by the Government of Japan to the personnel of the Govern- ment of the United States of America who, pursuant to Article VII of the present Agreement, will discharge in Japan responsibilities of the Government of the United States of America to observe the progress of assistance furnished in pursuance of the present Agreement, the two Governments agree that such facilities to be accorded shall be reasonable and not unduly burdensome upon the Government of Japan. 2. The two Governments agree that the number of such personnel to be accorded diplomatic privileges will be kept as low as possible. 3. It is understood between the two Governments that the status of such personnel of the nationality of the of America in Japan. Such personnel will be divided into three categories: a. Upon appropriate notification by the Government of the United States of America, full diplomatic status will be granted to the senior military member and the senior Army, Navy and Air Force officer assigned thereto, and to their respective immediate deputies. b. The second category of personnel will enjoy privileges and immunities conferred by International custom to certain categories of personnel of the Embassy of the United States of America in Japan, such as the immunity from civil and criminal jurisdiction of Japan, immunity of official papers from search and seizure, right of free egress, exemption from customs duties or similar taxes or restrictions in respect of personally owned property imported into Japan by such personnel for their personal use and consumption, without prejudice to the existing regulations on foreign exchange, exemption from internal taxation by Japan upon salaries of such personnel. Privileges and courtesies incident to diplomatic status such as diplomatic automobile license plates, iinclusion on. the "Diplomatic List", and social courtesies may be waived by the Government of the United States of America for this category of personnel. c. The third category of personal will receive the same status as the clerical personnel of the Embassy of the United States of America in Japan. ANNEx G 1. The two Governments agree to restrict to the min- imum necessary the amount of expenses to be made avail- able from time to time by the Government of Japan pur- suant to Article VII. 2. The two Governments also agree that the Govern- ment of Japan may, In lieu of meeting the expenses re- ferred to in the preceding paragraph, make available necessary and suitable real estate, equipment, supplies and services. 3. The two Governments agree that, in consideration of the contributions in kind to be made available by the Government of Japan, the amount of yen to be made available as a cash contribution by the Government of Japan for any Japanese fiscal year shall be as agreed upon between the two Governments. 4. The contribution,; by the Government of Japan will be made available in accordance with arrangements as may be agreed upon between the two Governments. 5. The two Governments further agree that, in con- sideration of the contributions in kind to be made avail- able by the Government of Japan during the Initial period from the date of coming into force of the present Agree- ment to March 31, 105:5, the amount of cash contributions by the Government of Japan for such period shall not exceed Three Hundred Fifty-Seven Million Three Hundred Thousand Yen (Y357,300,000). Arrangements for Return of Equipment (Under Ar- ticle I of the Mutual Defense Assistance Agree- ment Between the United States of America and Japan The Government of the United States of America and the Government of Japan agree to the following arrange- ments under the Mutual Defense Assistance Agreement between the two countries signed today, respecting the disposition of equipment and materials furnished by the Government of the United States of America under the said Agreement, and no longer required for the purposes for which originally made available : Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 1. The Government of Japan will report to the Gov- ARTICLE I ernment of the United States of America, through thepr ~ Military Assistang"'tj,9#d 1~N~i~1~AS i~O@ /0t3~25 : >lt t r ec ion of~t7ie u ual Securit materials furnishe n er en em programs as are no fd y longer required in the furtherance of the Mutual Defense Act of 1951, as amended, aggregating Fifty Million United Assistance Agreement between the United States of States Dollars ($50,000,000) during the current United States fiscal year ending June 30, 1954. America and Japan. The Military Assistance Advisory Group shall not be precluded from drawing to the atten- tion of the authorities of the Government of Japan any ARTICLE II equipment or materials which the Military Assistance The particular commodities to be purchased and the Advisory Group considers to be within paragraph 3 of terms of particular transactions shall be agreed upon Article I of the said Agreement and when so notified between the two Governments from time to time in ac- the Government of Japan will enter into consultation cordance with procedures established for the Govern- with the Government of the United States of America ment of the United States of America by the Foreign concerning the return to the Government of the United Operations Administration. States of America of such equipment and materials in accordance with procedures set forth in the following ARTICLE III paragraphs. 2. The Government of the United States of America It is understood that the procurement and utilization may accept title to such equipment and materials for of the commodities which may be obtained pursuant to transfer to a third country or for such other disposition this agreement will not cause displacement of or sub- as may be made by the Government of the United States stitution for usual marketings of the United States of of America. America or of other friendly countries. 3. When title is accepted by the Government of the United States of America, such equipment and materials ARTICLE IV will be delivered free alongside ship at a Japanese port The Government of the United States of America shall in case ocean shipment is required, or free on board in- disburse the United States dollars required for the pur- land carrier at a shipping point in Japan designated chases referred to in Article II, and the Government of by the Military Assistance Advisory Group in the event Japan shall, upon notification of such dollar disburse- ocean shipping is not required, or, in the case of flight- ments, deposit the yen equivalent in a special account deliverable aircraft, at such airfield in Japan as may of the Government of the United States of America to be be designated by the Military Assistance Advisory Group. established in the Bank of Japan. 4. Such equipment and materials reported no longer required by the Government of Japan and not accepted ARTICLE V by the Government of the United States of America for redistribution or return will be disposed of as may be The rate of exchange of United States dollars to yen agreed between the Governments of the United States of to be deposited shall be the official par value established America and Japan. by the Government of Japan with respect to United States 5. Any salvage or scrap from equipment and materials dollars prevailing at the time of the receipt of each notifi- furnished tinder the Mutual Defense Assistance Agree- cation referred to in Article IV, provided there are no ment shall be reported to the Government of the United multiple official basic rates of exchange. States of America in accordance with paragraph 1 and shall be disposed of in accordance with paragraphs 2, 3 ARTICLE VI and 4 of the present Arrangements. Salvage or scrap which Is not accepted by the Government of the United Detailed arrangements necessary for the operation of States of America will be used to support the defense this Agreement shall be agreed upon between the two effort of Japan or of other countries to which military Governments. assistance is being furnished by the Government of the ARTICLE VII United States of America. This Agreement shall enter into force on the date of IN WITNESS WHEREOF the representatives of the two receipt by the Government of the United States of Governments, duly authorized for the purpose, have America of a note from the Government of Japan stating signed the present Arrangements. that Japan has approved the Agreement in accordance DONE in duplicate, in the English and Japanese lan- with its legal procedures. guages, both equally authentic, at Tokyo, this eighth IN WITNESS WHEREOF the representatives of the two day of March, one thousand nine hundred fifty-four. Governments, duly authorized for the purpose, have signed For the Government of the United States of America : this Agreement. JOHN M. ALLISON DONE in duplicate, in the English and Japanese lan- For the Government of Japan: guages, both equally authentic, at Tokyo, this eighth day KATSUO OKAZAKI of March, one thousand nine hundred fifty-four. Agreement Between the United States of America and Japan Regarding the Purchase of Agricultural Commodities The Government of the United States of America and the Government of Japan : Considering the mutual benefits to be derived from the sale by the United States of America and the purchase by Japan of United States surplus agricultural com- modities under the provisions of Section 550 of the Mutual Security Act of 1951, as amended ; and Desiring to set forth the necessary arrangements there- for; Have agreed as follows : For the United States of America : JOHN M. ALLISON For Japan: KATSUO OKAZAKI Agreed Official Minutes With Respect to the Agree- ment Between the United States of America and Japan Regarding the Purchase of Agricultural Commodities It is understood that the words "basic rates" in the phrase "provided there are no multiple official basic rates of exchange" in Article V are employed to distinguish such a rate from the ordinary rates utilized in the buying and selling of exchange. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Ambassador/ OMI.>FyorReIeaser2OO 25rsCIA-RDP60-00442ROOa1OO1'4b03-6 and Plenipotentiary of of Japan : This Agreement shall enter into force on the date of the United States of receipt by the Government of the United States of America America to Japan : t f m te h Government of Japan stating that Japan r o a no e o KATSUO OKAZAKI has approved the Agreement in accordance with its legal Agreement Between Japan and the United States of America Regarding the Guaranty of Investments The Government of the United States of America and the Government of Japan : Recognizing that economic benefits will accrue to the United States of America and Japan from the guaranties by the United States of America of private investments which may be made in Japan by nationals of the United States of America pursuant to the provisions of Section 111 (b) (3) of the Economic Cooperation Act of 1948, as amended: and Desiring to set forth the understandings concerning such guaranties ; [lave agreed as follows : procedures. IN WITNESS WHEREOF the representatives of the two Governments, duly authorized for the purpose, have signed this Agreement. DONE in duplicate, in the English and Japanese lan- guages, both equally authentic, at Tokyo, this eighth day of March, one thousand nine hundred fifty-four. For the United States of America : JOAN M. ALLISON For Japan: KATSTJO OKAZAKI Agreement Between the United States of America and Japan on Economic Arrangements The Government of the United States of America and the Government of Japan : Having concluded an agreement for the purchase of agricultural commodities pursuant to Section 550 of the Mutual Security Act of 1951, as amended ; The Government of the United States of America and Recognizing that economic stability is essential to inter- the Government of Japan will, upon the request of either national peace and security ; Government, consult respecting projects in Japan proposed Considering that the Government of the United States by nationals of the United States of America with regard of America is prepared, under this agreement, to utilize to which guaranties under Section 111 (b) (3) of the yen funds resulting from the aforesaid purchase of agri- Economic Cooperation Act of 1.948, as amended, may cultural commodities for the purpose of assisting in the be made or are under consideration. development of the industrial production and economic ARTICLE II potential of Japan; and Recognizing that encouragement of private :investments With respect to guaranties extended by the Government of the United States of America in accordance with the provisions of the Section referred to in Article I to projects which are approved by the Government of Japan, the Government of Japan agrees: (1) That if the Government of the United States of America makes payment in United States dollars to any person under any such guaranty, the Government of Japan will recognize the transfer to the Government of the United States of America of any right, title or in- terest of such person in assets, currency, credits, or other property on account of which such payment was made and the subrogation of the Government of the United States of America to any claim or cause of action of such person arising in connection therewith. The. Govern- ment of Japan shall also recognize any transfer to the Government of the United States of America pursuant to such guaranty of any compensation for loss covered by such guaranties received from the Government of Japan ; (2) That yen amounts acquired by the Government of the United States of America pursuant to such guaranties shall be accorded treatment not less favorable than that accorded, at the time of such acquisition, to private funds arising fraln transactions of United States nationals which are comparable to the transactions covered by such guaran- ties, and that such yen amounts may be used without re- striction by the Government of the United States of America for non-military administrative expenditures ; (3) That any claim against the Government of Japan to which the Government of the United States of America may be subrogated as the result of any payment under such a guaranty, shall be the subject of direct negotiations between the two Governments. If, within a reasonable period, they are unable to settle the claim by agreement, It shall be referred for final and binding determination to a sole arbitrator selected by mutual agreement. If the Governments are unable, within a period of three months, to agree upon such selection, the arbitrator shall be one who may be designated by the President of the Inter- national Court of Justice at the request of either Govern- ment. in Japan by nationals of the United States of America would also serve the above purpose; Have agreed as follows : The Government of the United States of America shall, subject to the terms and conditions of any applicable United States legislation, use the yen funds to be deposited in the special account established in accordance with the provisions of Article IV of the Agreement between the United States of America and Japan regarding the Pur- chase of Agricultural Commodities, signed at Tokyo on March 8, 1954, for the following purposes : (1) The Government of the United States of America will make grants of yen from this account to the Govern- ment of Japan subject to such terms as may be mutually agreed upon for assistance to Japanese industry and for other purposes serving to promote Japan's economic ca- pabilities. Such grants shall aggregate 20 percent of the total deposits in the account resulting from transactions entered into under the aforesaid Agreement. but not to exceed the yen equivalent of Ten Million United States Dollars ($10,000,000). (2) The Government of the United States of America may use the remainder of such yen funds without re- strictions for the procurement of goods and services in Japan in support of military assistance programs of the United States of America. ARTICLE II The Government of Japan shall establish a special ac- count in which will be deposited yen resulting from grants made available by the Government of the United States of America to the Government of Japan. ARTICLE III It is agreed that the guaranties by the United States of America of private investments which may be made in Japan by nationals of the United States of America purr- 524 Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 suant to the pI^ri X aVtrt" a IC7A~2ia 2 3d9 lYb5 l9'dZ'inC2Lto S"'o~i'/~ ~E bIC'tt5'h~.tL i~ 3o~aeccde before Economic Cooperation Act of 1948, as amended, would May 1, 1954: encourage such investments and contribute to the pro- 1953 motion of the purposes of this Agreement. United States . . . . . . . . . . . . December 151 ARTICLE IV Detailed arrangements which may be necessary for the operation of this Agreement shall be agreed upon be- tween the two Governments. ARTICLE V This Agreement shall enter into force on the date of receipt by the Government of the United States of America of a note from the Government of Japan stating that Japan has approved the Agreement in accordance with its legal procedures. IN WITNESS WHEREOF the representatives of the two Governments, duly authorized for the purpose, have signed this Agreement. DONE in duplicate, in the English and Japanese lan- guages, both equally authentic, at Tokyo, this eighth day of March, one thousand nine hundred fifty-four. For the United States of America : JOHN M. ALLISON For Japan : KATSUO OKAZAKI Agreed Official Minutes With Respect to the Agree- ment Between the United States of America and Japan on Economic Arrangements It is understood that the term "without restrictions" In Article I, paragraph (2), shall be interpreted, for the purposes of this Agreement, to mean without restrictions as to the method of utilization of such yen funds not to exceed the equivalent of 40 million United States dollars. It is further understood that, in such utilization, due regard shall be paid by the Government of the United States of America in consultation with the Government of Japan to the requirements of Japan for domestic use and commercial exports. Ambassador Extraordinary and Minister for Foreign Plenipotentiary of the United Affairs of Japan : States of America to Japan : JOHN M. ALLISON KATSUO OKAZAKI Current Actions MULTILATERAL Commodities-Sugar International sugar agreement. Done at London under date of Oct. 1, 1953. Ratifications deposited: Australia, Dec. 14, 1953; Cuba, Dec. 16, 1953; United Kingdom, Dec. 12, 1953. Accession deposited: Hungary, Dec. 18, 1953.' Belgium ......... .. ..... November 19 Brazil . . . . . . . . . . . . . . . . . December 19 China . ....... ... . December 12 Czechoslovakia ... . .. .. December 18 Dominican Republic . . . . . . . . December 12 France ....... December 11 Federal Republic of Germany . . . December 11 Haiti . . . . . . . . . . . . . . . . . December 15 Japan ......... ........ December 15 Lebanon .... ............ December 15 Mexico . ... ....... .. .. December 10 Netherlands . . . . . . . . . . . . . . December 10 Philippines . . . . . . . . . . . . . . November 25 Poland . . . . . . . . . . . . . . . . . December 18 Portugal ........ December 14 Union of South Africa . . . . . . . December 15 U.S.S.R . ........... ..... December 18 Entered into force provisionally Dec. 18, 1953 (for ar- ticles 1, 2, 18, and 2746, inclusive), and .Jan. 1, 1954 (for articles 3-17 and 19-26, inclusive). Trade and Commerce Declaration on the continued application of the sched- ules to the General Agreement on Tariffs and Trade, TIAS 2886. Done at Geneva Oct. 24, 1953. Signature: Australia, Feb. 23, 1954. Entered into force for Australia Feb. 23, 1954. Third protocol of rectifications and modifications to the texts of the schedules to the General Agreement on Tariffs and Trade.' Done at Geneva Oct. 24, 1953. Signature: Denmark, Jan. 27, 1954. Australia Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on the estates of deceased persons, TIAS 2903. Signed at Washington May 14, 1953. Ratifications exchanged at Canberra Jan. 7, 1954. Entered into force Jan. 7, 1954. Proclaimed by the President Jan. 20, 1954. Canada Convention for the preservation of the halibut fishery of the Northern Pacific Ocean and Bering Sea, TIAS 2900. Signed at Ottawa Mar. 2, 1953. Entered into force Oct. 28, 1953. Proclaimed by the President Jan. 7, 1954. Greece Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on the estates of deceased persons, TIAS 2901. Signed at Athens Feb. 20, 1950. Entered into force Dec. 30, 1953. Proclaimed by the President Jan. 15, 1954. Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, TIAS 2902. Signed at Athens Feb. 20, 1950. Entered into force Dec. 30, 1953. Proclaimed by the President Jan. 15, 1954. India Agreement relating to air transport services, TIAS 1586. Signed at New Delhi Nov. 14, 1946. Entered into force Nov. 14, 1946. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Notice of termination, by India: Received by the United States Jan. 14, 1954. To terminate 1 year from date of receipt of notice. Current U.N. Documents: A Selected Bibliography I Agreement Revising and Renewing the International Wheat Agreement Open for signature at Washington from April 13 until April 27, 1953, inclusive Date of Date of entry Date of entry Country deposit of instrument into force for parts 1, into force for part 2 of acceptance 3, 4, and 6 1953 1953 1953 Canada . . . . . . May 18 July 15 Aug. 1 Cuba . . . . . . . June 30 July 15 Aug. 1 Philippines . . July 1 July 15 Aug. 1 Ceylon . . . . . . . . July 3 July 15 Aug. 1 Iceland . . . . . July 4 July 15 Aug. 1 Guatemala . . . . . July 6 July 15 Aug. 1 Peru . . . . . . . . July 8 July 15 Aug. 1 Israel . . . . . . . July 11 July 15 Aug. 1 Indonesia . . . . . . . July 13 July 15 Aug. 1 Costa Rica . . . . . . . July 13 July 15 Aug. 1 Ireland . . . . July 13 July 15 Aug. 1 Switzerland . . . . . . July 14 July 15 Aug. 1 Japan . July 14 July 15 Aug. 1 United States of America. July 14 July 15 Aug. 1 Bolivia . . . . . . . July 15 July 15 Aug. 1 Egypt . . . . . . . . . July 15 July 15 Aug. i Norway . . . . . . July 22 July 15 Aug. 1 Portugal . . . . . . July 24 July 15 Aug. 1 Denmark . . . . . July 24 July 15 Aug. 1 India . . . . . July 272 July 15 Aug. 1 Dominican Republic . . July 27 July 15 Aug. 1 Netherlands . . . . . . July 28 July 15 Aug. 1 New Zealand . . . . . . July 29 July 15 Aug. 1 Ecuador . . . . . . . . July 29 July 15 Aug. 1 El Salvador. . . . . July 29 July 15 Aug. 1 Spain July 29 July 15 Aug. 1 Federal Republic of Ger- many . . . . . . . . July 30 July 15 Aug. 1 Belgium . . . . . . July 31 July 15 Aug. 1 Haiti . . . . . . . July 31 July 15 Aug. 1 Austria . . . . . . July 31 July 15 Aug. 1 Greece . . July 31 July 15 Aug. 1 Union of South Africa Aug. 1 July 15 Aug. 1 Date of de- Date of de- Date of en- Country posit of in- strument of posit of in- strument of try into force for parts 1, acceptance accession 2, 3, 4, and 5 1953 1963 1953 Nicaragua . . . . . Sept. 11 Sept. 11 Jordan . . . . . Sept. 17 Sept. 17 State of Vatican City . . Sept. 30 Sept. 30 Venezuela . . . . . Oct. 14 . . Oct. 14 Saudi Arabia . . . . Oct. 19 . . Oct. 19 Lebanon . . . . . . Oct. 29 . . Oct. 29 Australia . . . . . . Oct. 31 . . Oct. 31 Liberia . . . . . . . Dec. 3 . . Dec. 3 Mexico . . . . . . . Dec. 30 . . Dec. 30 Panama . . . . . . Dec. 31 Dec. 31 Korea . . . . . . . . . Dec. 31 Dec. 31 1 As of Mar. 19, 1954. 2 Instrument of ratification includes a statement. Security Council Report by the Chief of Staff of the Truce Supervision Organization to the Security Council pursuant to, the Council's Resolution of 24 November 1953 (S/3139/ Rev. 2). S/3183. 15 pp. mimeo. Letter Dated 15 February 1954 from the Permanent Rep- resentative of Israel Addressed to the President of the Security Council. 8/3179, February 15, 1954. 6 pp6 mimeo. Exchange of Correspondence Between the Secretary General and the Governments of the Hashemite King- dom of the Jordan and Israel Regarding the Convoca- tion of a Conference Under Article XII of the General Armistice Agreement. 8/3180, February 19, 1954. 19 pp. mimeo. General Assembly The Promotion of Permanent Solutions for the Problems of Refugees who are within the Competence of the United Nations, High Commissioner for Refugees. A/AC.36/32. January 29, 1954. 22 pp. mimeo. The Situation of the United Nations Refugee Emergency Fund. A/AC.36/31, January 29, 1954. 15 pp. mimeo. United Nations Conciliation Commission for Palestine. Thirteenth Progress Report (for the period from 28 November 1952 to 31 December 1953). A/2629, Janu- ary 4, 1954. 11 pp. mimeo. The Korean Question. Cablegram Dated 9 January 1954 from the Minister for Foreign Affairs of the Central People's Government of the People's Republic of China, Addressed to the Secretary-General. A/2632, January 11,1954. 8 pp. mimeo. The Korean Question. Cablegram dated 11 January 1954 from the Minister for Foreign Affairs of the :Democratic People's Republic of Korea. A/2633, January 14, 1954. 7 pp. mimeo. The Korean Question, Communication dated 10 Janu- ary 1954, addressed to the President of tie General Assembly by the Government of India. A/2634, Janu- ary 18, 1954. 4 pp. mimeo. Reconvening of the Eighth Session of the General As- sembly. Note by the Secretary-General. A/2635, Jan- uary 31, 1954. 22 pp. mimeo. The Korean Question. Cablegram dated 29 January 1954 from the Minister for Foreign Affairs of the Central People's Government of the People's Republic of China. A/2636, January 29, 1954. 12 pp. mimeo. Third Report on the Regime of the Territorial Sea. A/CN.4/77, February 4, 1954. 17 pp. mimeo. Peace Observation Commission. Balkan Sub-Commis- sion. Eighth Periodic Report of the United Nations Mil- itary Observers in Greece. A/CN.7/SC.1/53, January 13, 1954. 13 pp. mimeo. Annotations of Items on the Provisional Agenda for the Seventeenth Session of the Economic and Social Council. E/L.575, January 25, 1954. 8 pp. mimeo. 'Printed materials may be secured in the United States from the International Documents Service, Columbia University Press, 2960 Broadway, New York 27, N. Y. Other materials (mimeographed or processed documents) may be consulted at certain designated libraries In the United States. 526 Approved For Release 2003/03/25 : CIA-RDP60-00442R00d f! b(3-cd State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 International Organizations and Conferences Calendar of Meetings' Adjourned during March 1954 U.N. Petitions Committee (Trusteeship Council) . . . . . . . . International Exhibition on Low-Cost Housing . . . . . . . . . U.N. Trusteeship Council: 13th Session . . . . . . . . U.N. Standing Committee on Administrative Unions (Trusteeship Council). FAO Working Party of Experts on Agricultural Surpluses . . . . . ILO Governing Body: 124th Session . . . . . . . . . . . . . . Tenth Inter-American Conference . . . . . . . . . . . . . UNICEF Executive Board and Program Committee . . . . . . . . U.N. ECAFE Third Regional Conference of Statisticians . . . . . International Exposition in Bogota . . . . . . . . U.N. High Commissioner for Refugees: 4th Session of Advisory Committee. International Cinema Festival . . . . . . . . . . U.N. Economic Commission for Europe: 9th Session . . . . . . U.N. Technical Assistance Committee . . . . . . . . . . Warn Eastern Caribbean Hurricane Committee of Regional Associa- tion IV (North and Central America). In Session as of March 31, 1954 ICAO Council: 21st Session . . . . . . . . . . . . . . U.N. Human Rights Commission: 10th Session . . . . . . . . . ICAO Communications Division: 5th Session . . . . . . . . . . UNESCO Executive Board: 37th Session . . . . . . . . . . Panama International Commercial Exposition . . . . . . U.N. Commission on the Status of Women: 8th Session . . . . . Seventh International Film Festival . . . . . . . . . . . . FAO Technical Meeting on Forest Grazing . . . . . . . U.N. Economic and Social Council (Ecosoc): 17th Session . . . . New York . . . . . . . . Jan. 12-Mar. 5 New Delhi . . . . . . . . Jan. 20-Mar. 5 New York . . . . . . . . Jan. 28-Mar. 25 New York . . . . . . . . Feb. 8-Mar. 5 Washington . . . . . . . . Feb. 23-Mar. 18 Geneva . . . . . . . . . Feb. 27-Mar. 13 Caracas . . . . . . . . Mar. 1-28 New York . . . . . . . . Mar. 1-12 New Delhi . . . . . . . . Mar. 1-13 Bogota . . . . . . . . . . Mar. 1-21 Geneva . . . . . . . . . Mar. 2-3 Mar del Plata (Argentina) . Mar. 6-16 Geneva . . . . . . . . Mar. 9-25 New York . . Mar. 15-24 Port-of-Spain (Trinidad) . . Mar. 24-26 Montreal . . . . . . . . Feb. 2- New York . . . . . . . . Feb. 23- Montreal . . . . . . . . Mar. 9- Paris . . . . . . . . . . . Mar. 10- Col6 n . . . . . . . . Mar. 20- New York . . . . . . . . Mar. 22- Cannes . . . . . . . . . . Mar. 25- Rome . . . . . . . . Mar. 29- New York . . . . . . . . Mar. 30- Scheduled April 1-June 30, 1954 Second Meeting of the Provisional Committee of the Pan American Washington . . . . . . . . Apr. 5- Highway Congress. Apr. Statistical Commission: 8th Session . . . . . . . . . . . Geneva. . ... . Pr Caribbean Trade Promotion Conference . . . . . Port-of-Spain (Trinidad) . . Apr. 6- Joint ILO/ WHO Committee on the Hygiene of Seafarers: 2d Session . Geneva . . . . . . . . . . Apr. 9- Second International Congress on Irrigation and Drainage . . . . Algiers . . . . . . . . . . Apr. 12- International Trade Fair of Milan . . . . . . . . . . . Milan . . . . . . . . Apr. 12- U.N. Commission on Narcotic Drugs: 9th Session . . . . . . New York . . . . . . . . Apr. 1IcEM Ad Hoe Committee on Permanent Staff Regulations. . . Geneva . . . . . . . . . Apr. 20- ICAO Conference on Coordination of European Air Transport Strasbourg . . . . . . . . Apr. 21- Fourth International Congress of Prehistoric and Protohistoric Madrid . . . . . . . . . . Apr. 21- Sciences. Apr. Intergovernmental Conference on Protection of Cultural The Hague . . . . . . . pr Property in the Event of Armed Conflict. Washington . Apr. 22 PASO Executive Committee: 22d Meeting . . . . . . . . . . . Gashin. . . . . . . . Apr. 23- NATO: Finance Subcommittee: 5th Session . . . . . . . . Apr. Ministerial Meeting of the North Atlantic Council . . . . Paris . . . . . . . . . . . Apr. International Fair . . . . . . . . . . . . . . . . Lyon . . . . . . . . . . . Apr. 26- Intergovernmental Political Conference Geneva . . . . . . Apr. Committee for European Migration: 7th Session . Geneva . . . . . . . . . . Apr. 26- International Conference on Oil Pollution of the Sea and Coasts . . London . . . . . . . . . Apr. 26- International Exhibition of Industry . . . . . . . . . . . . Tehran . . . . . . . . . . May 1- Uru Meeting of the Executive and Liaison Committee . . . . . Lucerne . . . . . . . . . May 3- 1 Prepared in the Division of International Conferences Mar. 24 1954. Asterisks indicate tentative dates and locations. Following is a list of abbreviations: LTN-United Nations; FAO-tiCod and Agriculture Organization; ILO-International Labor Organization; UNICEF-United Nations Children's Fund; ECAFE-Economic Commission for Asia and the Far East; Ecosoc-Economic and Social Council; WMo-World Meteorological Organization; ICAO-International Civil Aviation Organization; UNEsco-United Nations Educational, Scientific and Cultural Organization; Wxo-World Health Organization; IcEM-Intergovernmental Committee for European Migration; PAso-Pan American Sanitary Organiza- tion; NATO-North Atlantic Treaty Organization; Uru-Universal Postal Union; ITU-International Telecommunica- tion Union; EcE-Economic Commission for Europe; CrnRE-Conference Internationale des Grands Reseaux Electriques. 527 April 5, 1951kpproved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Calendar q~ ~~t l ea~k 2003/03/25 : CIA-RDP60-00442R000100140003-6 Scheduled April 1-June 30, 1954-Continued International Rubber Study Group: 11th Meeting . U.N. International Law Commission: 6th Session . U.N. ECAFE Inland Waterways Subcommittee: 2d Session . Seventh Assembly of the World Health Organization . . International Sugar Council: 2d Session . . . American International Institute for the Protection of Childhood: Annual Meeting of Directing Council. ILO Salaried Employees and Professional Workers Committee: 3d Session. ICAO Special Middle East Regional Communications Meeting . U.N. Conference on Customs Formalities for Temporary Importa- tion of Private Vehicles and for Tourism. Electric High Tension Systems (CroRE), International Conference on: 15th Session. International Fair of Navigation . FAO Mechanical Wood Technology: 3d Conference . U.N. ECAFE Regional Conference on Water Resource Development Caribbean Commission: 18th Meeting . . . . . Ir,o Governing Body: 125th Session . . . . . . WHO Executive Board: 14th Meeting . . . . . . International Cotton Advisory Committee: 13th Plenary Meeting . Eleventh International Ornithological Congress . Tenth International Congress of Agricultural and Food Industries FAO Technical Advisory Committee on Desert Locust Control . ICAO Assembly: 8th Session . Liu Administrative Council: 9th Session . . . Fourteenth International Congress of Actuaries . ILO Conference: 37th Session . . . . . . FAO Committee on Commodity Problems: 23d Session . UNESCO Intergovernmental Conference of Experts on Cultural Rela- tions and Conventions. Colombo . . . . . . . . . May 3-- Geneva . . . . . . . . . . May 3- Saigon . . . . . . . . . . May 3-- Geneva . . . . . . . . . . May 4- London . . . . . . . . . . May 5- Montevideo . . . . . . . . May 10- Geneva . . . . . . . . . . May 10- Island of Rhodes (Greece) . May 11- New York . . . . . . . . May 11- Paris . . . . . . . . . . . May 12- Naples . . . . . . . . . . May 15-- Paris . . . . . . . . . . . May 17-- Tokyo . . . May 17-- Belize (British Honduras) . . May 19-- Geneva . . . . . . . . . . Geneva . . . . . . . . . . Sao Paulo . . . . . . . . Basel . . . . . . . . . Madrid . . . . . . . . . . Rome . . . . . . . . . Montreal . . . . . . . . . Geneva . . . . . . . . . . Madrid . . . . . . . . . . Geneva . . . . . . . . . . Rome . . . . . . . . . . Paris . . . ... . . . . . . Fifth Inter-American Travel Conference . Panama City . . . . June 10-- Fourth Annual Mee i f th I ng o e nternational Commission for North- t west Atlantic Fisheries. U.N. EcE Conference on European Statisticians . U.N. Permanent Central Opium Board and Narcotic Drugs Super- visory Body: 11th Joint Session. ICAO Meteorology Division: 4th Session . WHO Commission for Aeronautical Meteorology: 1st Session . UNESCO Seminar on Educational and Cultural Television Program Production. U.N. Economic and Social Council (Ecosoc): 18th Session . ITU International Telegraph Consultative Committee (CcrT) : St d G u y roup XI. Arte .Bienniale, XXVIIth (International Art Exhibition). International Wheat Council: 15th Session . . . . . . . . . . . John P. Davies Case News Conference Statement by Secretary Dulles Press release 153 dated March 23 Geneva . . . . . . . . . . Geneva . . . . . . . . . . Montreal . . . . . . . . . Montreal . . . . . . . . . London . . . . . . . . . Geneva . . . . . . . . . . Geneva . . . . . . . . . . Venice . . . . . . . . . London* . . . . . . . . . May 24-- May 27-- May 29-- May 29-- May 30- May- June 1- June 1*-- June 2- June 2- June 3- June 8- June 14-- June 14-- June 15-- June 15-- June 27-- June 29-- June 30-- June-Oct. June- questions to Mr. Davies, to which Mr. Davies has replied. On the basis of the information now at hand, I do not find it necessary to suspend Mr. Davies. There are some matters bearing upon re- liability which are susceptible of conflicting inter- pretations and which seem to call for clarification by testimony under oath by Mr. Davies and others. In order to make this possible, I am asking that from the roster maintained by the Civil Service Commission a Security Hearing Board be desig- nated to take testimony. Such action as I have requested is taken on the assum ti th t M D p on a r. avies will voluntarily accept The proper officials of the Department of State, the jurisdiction of the Security Hearing Board. after examining the voluminous record in the Mr. Davies continues his assignment as Coun- matter of John P. Davies, formulated a series of selor of Embassy at ]Lima, Peru. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Eighth For@iviose iee Release 2003/03/25: CIA-RDP60-00442R09199140003-6 Selection Boards Meet Arthur L. Richards (Chair- FSO-D i r e c t o r, Office of Press release 1i55 dated March 23 The Eighth Foreign Service Selection Boards convened in Washington for their initial joint meeting on March 22. It is the responsibility of the three Boards to evaluate the performance of all members of the Foreign Service Officer Corps for purposes of promotion and selection-out. The members and observers were welcomed and addressed by Gerald A. Drew, Director General of the Foreign Service; Scott McLeod, Adminis- trator, Bureau of Inspection, Security and Con- sular Affairs ; and George Wilson, Director of the Office of Personnel. A list of the membership, together with the ob- servers, for each of the three Boards follows : 1954 EIGHTH FOREIGN SERVICE SELECTION BOARDS Board A John F. Simmons (Chair- FSO-Career Minister- man). Chief of Protocol George H. Butler ...... FSO-Career M i n 1 s t e r- Retired ; former Ambassa- dor to Dominican Republic John J. Muccio ....... FSO-Career Minister- Deputy Chairman of the Inter-Departmental Com- mittee on Relations with Panama Raymond C. Miller ..... FSO-Career M i n i s t e r- Chief, Foreign Service In- spection Corps H. Hamilton Hackney . . . Former Judge, Baltimore City Juvenile Court Oliver C. Short', L. H. D. . . Consultant on Personnel to the Assistant Secretary of Commerce for Administra- tion Observers Department of Agricul- Robert B. Schwenger, Special ture. Assistant to the Assistant Administrator for Foreign Service and Trade Pro- grams Department of Commerce . Lester M. Carson, Associate Director, Projects and Technical Data Division, Office of Export Supply, Bureau of Foreign Com- merce Department of Labor . . . . James F. Taylor, Chief, For- eign Service Division, Office of International Labor Affairs man). Greek, Turkish, and Ira- nian Affairs, Bureau of Near Eastern, South Asian and African Affairs Bernard Gutter ....... FSO-Foreign Service In- spector Brewster H. Morris ..... FSO--Officer in Charge of German Political Affairs, Bureau of European Affairs FSO-NATO Adviser, Office of European Regional Affairs, Bureau of European Affairs Vice President and Treas- urer, Metallurgical Re- search and Development Company, Commander U.S.N., Retired Hobson . . . . . . . Professor of Agricultural Economics, University of Wisconsin Observers Department of Agricul- C. E. Michelson, Assistant to ture. the Assistant Administra- tor for Management Department of Commerce . 11. Douglas Keefe, Chief, Re- porting Program and Re- view S e c t i o n, Foreign Service Operations Department of Labor . . . . Herman B. Byer, Assistant Commissioner, Bureau of Labor Statistics Board C Richard W. Byrd (Chair- FSO-Department of State man). Adviser, Army War College Gordon H. Mattison .... FSO-Foreign Service In- spector Fraser Wilkins ....... FSO-Policy Planning Staff Byron E. Blankinship ... FSO-Officer in C h a r g e North Coast Affairs, Office of South American Affairs, Bureau of Inter-American Affairs George T. Brown . . . . . . Staff Member of the Ameri- can Federation of Labor James Sterling Murray .. Assistant to the President, Lindsay Light and Chemi- cal Company Department of Agricul- Carlos Ortega, Agricultur- ture. alist, Division of Interna- tional Agricultural Organi- zations Department of Commerce . Grant Olson, Business Econ- omist, European Division, Bureau of Foreign Com- merce Department of Labor . . . . Margaret Sheridan, Depart- ment of State Liaison Officer, Foreign Service Division, Office of Interna- tional Labor Affairs Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 International Copyright Protection Statement by Thorsten V. Kalijarvi Acting Assistant Secretary for Economic Affairs 1 I am appearing in support of the identical bills R. 6616 and H. R. 6670. This proposed meas- ure to amend the opyrig Act was forwarded to the Congress last summer by the Secretary of State as implementing legislation for the Univer- sal Copyright Convention, which is now before the Senate for its advice and consent to ratification. A companion Senate bill, S. 2559, identical with those before you, is before the Senate Judiciary Committee. Background I should like first to comment on our present outgrown and inadequate arrangements for inter- national copyright protection. I shall then sum- marize the benefits to be derived from the Univer- sal Copyright Convention, which, I am gratified to say, has elicited enthusiastic support through- out the United States from all those interested in copyright protection abroad. During the past 75 years there has been a vir- tually complete transformation in the position occupied by the United States in the literary, scientific, and creative fields. From a pioneer nation, importing far more than it exported in the way of books, music, and other copyrightable ma- terials, we have grown to a position of prestige and leadership in this important cultural field. Amer- ican novels and technical books are in constant demand throughout the world, and our music and movies are enjoyed everywhere. This rapid growth in American literary, musi- cal, and artistic creation and its international recognition has sharply accentuated the need for improved copyright protection abroad for Amer- ican works. It is apparent, however, that the le-al bases on which such protection can be estab- lished are not adequately supplied by our present framework of international arrangements. The Department believes that these needs can be fully 'Made on Mar. 15 before Subcommittee No. 3 of the Committee on the Judiciary of the House of Representa- tives (press release 132). met by adherence to the Universal Copyri ht Con- vention. It is for this reason that the secretary of State and the President have urged its ratifica- tion. Our present system of international copyright protection stems from legislation adopted shortly before 1900. Before that time, we had no inter- national arrangements for this purpose. Our paramount need had been to obtain free access to foreign works. Protection of American works abroad was sketchy and piracy of foreign works here was rampant. This legislation permitted the United States to begin the establishment of a series of bilateral arrangements. This scheme of bi- laterals, as modified through the years, represents the principal foundation for our international copyright relations. Reduced to its simplest terms, our present law provides that the United States will extend copyright protection to the na- tionals of a foreign state when such state grants to United States citizens copyright protection on substantially the same basis as to its own citizens. The law requires that in each case the President de- termine by means of a proclamation that the nec- essary reciprocal conditions exist. To form a basis for the issuance of the proclamation, the State Department usually negotiates an exchange of diplomatic notes to obtain the assurances of the foreign state that it is granting "national treat- ment" to citizens of the United States. This bilateral system is not only complicated and cumbersome but offers inadequate foreign protec- tion to our nationals. Each arrangement requires separate time-consuming negotiations. In addi- tion, whenever the law in the foreign country is changed, the arrangement must be reviewed and new negotiations as well as the issuance of a new proclamation may become necessary. The pro- tection which it would provide our citizens, if they had to rely solely upon it, would be ineffective and costly. In order for an American national to ob- tain protection abroad under this system, he would have to know and comply with a large number of technical requirements in the different countries in Department of State Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 which he desires protection, which would ? enerally make acquisition ,Q ,p g e t 96d2 MY25 impractical pr i 34 It is fortunate for those Americans interested in copyright protection abroad that nearly 40 countries of the free world are members of the Bern convention of 1886. The United States has not been able to join the Bern convention because some of its basic provisions are incompatible with the United States legal concepts of copyright. Americans have been able to enjoy the multilateral protection of the Bern convention by entering what is called the "side door" of the convention. To illustrate, an American publisher can get pro- tection for a new book in all Bern countries by issuing it in London or Toronto at the same time he does so in New York. In effect the book gets protection as a British or Canadian work. owever, the is widespread fear among copy- right circles in l try that, if our copyright relationships are n b rengthened, this side door will be closed to American authors. Indeed, pro- visions of this convention permitting its members to limit or deny convention protection to nationals of nonconvention countries have recently been strengthened. It is the Department's belief that the reason no action has so far been taken under these provisions is the pendency of the new Uni- versal Copyright Convention. In addition to the uncertain status of this side door approach to protection in most of the major countries, there are other respects in which our copyright relations are unsatisfactory. There are many countries in which we desire protection, which are not members of Bern and which under their law grant comparatively little protection to foreign works. Many of these countries are un- derdeveloped ones which feel a need for making available to their nationals in their native tongues foreign writings and culture. Special provisions have been included in the Universal Copyright Convention to meet this problem and to encourage the adherence of such countries. It is to be noted, as the Secretary of State pointed out in his report on the convention,2 that some of these free-world countries are in areas of the world bordering on the Soviet bloc in which Communist propaganda has its greatest impact. Improving our copyright relations with such countries would be of signifi- cant importance as a means of stimulating the flow of books and other educational media to them from the rest of the free world. In the light of this situation, it can be fully appreciated why there has been such strong sup- port in the United States for a multilateral con- venition in which the United States could partici- pate, which would cement our relations in this field with the rest of the free world. Development of the Convention C W2ROOWM $- onvention began shortly after the war. It is the result of careful and thorough preparatory work. From 1047 to 1951 a series of experts meetings was held to shape the broad outlines of the convention. The people who participated in this preparatory work were outstanding copyright specialists rom a number of countries, drawn largely from the legal profession. In the United States, this prepara- tory work was closely coordinated with the copy- right bar and other representatives of interested groups as well as committees of the various bar associations. Finally, after extensive consultations with gov- ernments, a draft was laid before the intergovern- mental negotiating conference held at Geneva in the summer of 1952, which adopted the final docu- ment as transmitted by the President to the Senate for its advice and consent to ratification. Many of the same, specialists who had participated in the development work accompanied governmental rep- resentatives as members of delegations to this con- ference. The United States delegation was honored in having present in addition Represent- ative Crumpacker and the former chairman of your subcommittee, the late Mr. Bryson. Fifty countries were present at the conference and 40 have signed the convention. Incidentally, no Soviet bloc country attended the conference or has shown any interest in adhering to the convention. I should like at this point to submit for the record the list of the countries which have signed the convention.3 Largely as a result of the thoroughness and care with which it was drafted, this instrument is a realistic, effective and relatively simple means of eliminating the unsatisfactory conditions which presently prevail and of increasing the scope and effectiveness of our international copyright rela- tions. Basically the convention provides for the granting of national treatment. From the stand- point of the United States author, it would pro- vide him with a permanent and secure basis for foreign copyright protection and a simple pro cedure for attaining this protection. He would receive a higher standard of protection than is presently afforded under the laws of some of the less developed countries in such matters as the number of years of protection and the conditions under which translations of his work are made into local language. He would be freed of the for- mal requirements which burden him under the bilateral system. When his work was published ' Following are the signatories to the convention : Andorra, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, Cuba, Denmark, El Salvador, Finland, France, Germany, Guatemala, Haiti, Holy See, Honduras, India, Ireland, Israel, Italy, Japan, Liberia, Luxembourg, Mexico, Monaco, Netherlands, Nicaragua, Norway, Peru, Portugal, San Marino, Spain, Sweden, Switzerland, United Kingdom, United States, Uruguay, and Yugoslavia. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 A tpy ve For Release 2003/03/25 ? CIA- 4PA$ 41 4 4~9 b A -? in this cou wit 1 a co rig t no ice on i it is a e s o eliminate the would automatically receive protection in all the clause to which consideration- has been given by other countries which are members of the conven- this Committee. The bills before you would waive tion. the manufacturing clause only as to foreign states The ImplementingLegislation The Universal Convention is, by its terms, what is generally called non-self-executing. Legisla- tion by both Houses of Congress is needed in order to make such changes in the United States law as are necessary to implement the convention. The bills before you would, with very minor excep- tions, make only such changes in the Copyright Law as are necessary to bring it into full con- formity with the terms of the convention. The proposed legislation has been drafted with a view to making to changes applicable only to foreign countries which join the convention, and it would not come into effect until the convention enters into force with respect to the United States. These changes would have the effect of exempt- ing works of authors of convention countries or works first published there from certain formal provisions of the United States Copyright Law and of modifying the requirements for notice of reservation of copyright. I wish to comment on only one of these changes-that relating to the manufacturing requirement. Experts in the field of copyright who will follow me will discuss the remainder. This so-called manufacturing clause means in effect that a foreign author writing in English can only obtain 5 years copyright protection in this country unless his book is printed here. Such a provision would not be too surprising in the law of an underdeveloped country, but it is in- congruous in the light of our present economic position in this field. It is a carryover from the days in the late 1800's when book manufacturing in this country was an infant industry. Now, however, we are a major exporter of printed mate- rials. For example, in 1953 our exports of books alone totaled over 24 million dollars-well over twice the level of book imports. The negotiation of the convention involved con- siderable give and take in view of the differing systems of copyright which it must bridge. A number of countries, particularly the English- speaking ones, made it clear to us during the negotiations that one of the things they insisted upon from us was modification of the manufactur- ing clause with respect to ratifying countries. They pointed out that they have been giving full protection to American works and are receiving only a very limited protection in return. We have felt and continue to feel that their point of view has considerable justification if we are to expect to receive the protection from them which would be provided by the convention. The modification of the manufacturing clause which is now being proposed is different in essen- which adhere to the convention and would not become effective as to them until they ha;d done so. Thus, in waiving the manufacturing clause as to these countries, we would receive in each case a.. substantial quid pro quo in the form of better copyright protection. Not only would this im- prove the position of all creators and users of copyrighted material, but it would have the very important additional effect of contributing signif- icantly to the maintenance and strengthening of our growing foreign market for books and similar materials. No change in the manufacturing clause is, of course, contemplated to permit American authors to have their books printed abroad in. quantity, and no change would be made as to countries not joining the convention. As I have indicated previously, for a great many years people in this country interested in im- proved copyright protection abroad have been convinced that the best solution for the difficulties that presently beset the field of copyright is partic- ipation in a multilateral convention which could be adhered to by most of the free wo:dd. I be- lieve the importance of this convention from the United States standpoint is amply attested to by the widespread support which it has among au- thors, composers, songwriters, and all the creative artists, as well as among those who constitute the media for public dissemination of their creations- book and music publishers, and the radio, tele- vision, and motion-picture industries. It has in addition the endorsement of committees of the leading bar associations and of the American Bar Association itself. In addition to its importance in establishing satisfactory copyright protection abroad for United States nationals, acceptance of this conven- tion would materially improve our general foreign relations with the rest of the free world. This is so because this action would have a highly favor- able impact on the intellectual and cultural groups of other countries, particularly in Western Eu- rope. The successful negotiation of the conven- tion has been hailed in Europe as the beginning of a new era in improved cultural relations. In order that our citizens may have the full benefits of copyright in foreign markets, and that the United States may assume a position of leader- ship in the field of international copyright, the Department wholeheartedly recommer.-ds the en- actment of this legislation. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Apprved Er,~ Release 2003/03/25x1 ?~i~~af)?k40O03 a objec- Sale of Vessels to B3razi or tive of the joint Commission's coastal shipping Coastwise Shipping Recommended program has been to provide Brazil with an effi- cient, well-regulated coastal shipping service Statement by Robert F. Woodward 1 which can meet the bulk freight demands of the expanding Brazilian economy. This objective has The Secretary of State in his letter of not as yet been achieved. The lack of adequate July 1, 1953, to the Speaker of the House set transport, therefore, results in low production, forth the reasons why the Department believed and this, in turn, is partially responsible for the that such legislation was necessary. The bill au- lack of transport. The logical way to correct this thorizes the sale of not more than 12 CI-MAV-1 situation is to assist Brazil in obtaining more effi- type merchant vessels to Brazil for use in the coast- cient means of coastal transportation. wise trade to Brazil. The CI-MAV-1 type vessel The Joint Commission in making its recom- was designed for coastal operations. mendations in its rehabilitation of the Brazilian The United States in cooperation with the Gov- coastal fleet made the following comments : ernment of Brazil established in 1950 a Joint Anyone who glances at a map can see that the Brazilian Brazil-United States Economic Development economy is still largely made up of isolated areas scat-e to a Commission, under congressional authorization te along S generals the sip anion netrat is this given by Public Law 535, the Act for International considerable and it is clear that the cheapest and best means of dis- Development, to assist Brazil in its development tribution should be by water. Indeed, in many instances planning and economic rehabilitation. One of the distribution still has to be by water. Apart from the air are, competition ang has projects which this Commission recommended was transport ween Ncom and companies, shipping rail the improvement of Brazil's coastal shipping. bbetet road North bet South, an thhenrel, only weal, and The sale of the vessels covered by this bill would North Eastern regions. not only assist in the economic rehabilitation of Brazilian coastal shipping but would promote our Coastal shipping is, at present, the only trulllyy,, own national interest. The rehabilitation of et national transportation system and in rn, centrsouthern, internal economy, and since Brazil is a traditional regions, and in many cases and important South American ally of the United connection between the various regions. States, its improved economic strength should add Brazil has remained more dependent upon to the defense potential of the Western Hemis- coastal shipping in interstate commerce than most phere. nations of continental dimensions. This is borne Moreover, it may be pointed out that President out by the fact that coastal shipping carried 45 Vargas of Brazil has personally requested U.S. percent of the total interstate commerce tonnage between 18 major political units (17 states and fed- cooperation in permitting Brazil to purchase oral districts) which possess in Brazil ocean ports. coastwise vessels from our laid-up fleet of war- According to the Joint Brazil-United States buBtrazil e uvessls. nder the Ships Sales Act of 1946 per- Economic Development Commission report, eight B states, six northern and two southern, with apop- chased 12 vessels of the same type specified in this pop- ulation of over 20 million, depend upon coastal bill and has continually indicated an interest shipping to carry between 74 and 99 percent of since that time in obtaining more vessels of this their total interstate commerce. These are the type. In view of their experience with this type states in which coastal shipping has an absolute of ship, which has been used principally in advantage, due either to the complete lack of com- coastal operations, it is the intention of the Bra- petitive means of transport or the poor condition zilian Government to add the vessels covered by of that which does exist. this bill to its coastal fleet. The states in the North (Para, Amazonas, Coastwise shipping is a vital link in Brazil's Maranhao, Ceara, Bahia, and Rio Grande de transportation system because of its extensive Norte) are most dependent upon coastal shipping, coastline, population concentration on the coast, followed by the southern states of Santa Catarina the lack of adequate highway and railroad sys- and Rio Grande do Sul. terns. Brazil's internal economic progress de- As to the composition by commodity of Brazil's pends to a large extent upon improving its inade- coastal shipping traffic, the Joint Brazil-United quate coastwise shipping fleet, which now contains States Economic Development Commission re- many vessels from 40 to 60 years old. An efficient ported that the basic role of coastal shipping in the coastwise transport system should promote trade transportation system of Brazil is a carrier of bulk raw materials and foodstuffs. Approximately 1 Made in support of H. R. 6317 before the Merchant Marine and Fisheries Committee of the House of Repre- sentatives on Mar. 24 (press release 158). Mr. Wood- ward, Deputy Assistant Secretary for Inter-American Affairs, testified as Acting Assistant Secretary. April 5, 1954 55 percent of the total tonnage carried by coastal ships consists of primary raw materials, 35 per- cent of foodstuffs, and the remaining 10 percent of manufactured items. Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 Approved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 The 10 major commodities in Brazilian coastal trade in terms of volume are, in descending order: salt, coal, sugar, lumber, wheat, flour, rice, manioc flour, wood manufactures, beverages and iron and steel manufactures. Brazil's coastal shipping is largely concentrated upon the transportation of bulk raw materials from the North and the South to the consuming and manufacturing centers of Rio and Sao Paulo and conversely transporting a smaller volume oft manufactured items from these centers to both the North and the South. The second major func- tion is the transportation of foodstuffs such as wheat, rice, manioc, beans, and charque (jerked beef) from the southern producing regions to the central and northern consuming areas. The present Brazilian coastal fleet is composed of 307 vessels of 609,000 dead weight tons. Over 25 percent of the total tonnage is above 40 years of age, and approximately 40 percent is more than 30 years. The Brazilian coastal fleet is pri- marily composed of obsolete vessels, and newer, small, converted landing vessels. Less than 30 ships may be considered as large, modern, effi- cient vessels specifically designed for the coastal trade. The fleet described above must serve a coastline over 5,500 miles long with 33 major, and many smaller, ports. There is no competitive trans- portation between the northern and southern ex- tremities of the coastline and only fair road and rail communication between the central southern and northeastern regions. The bill under discussion provides that every vessel sold and transferred shall be subject to an agreement by the Government of Brazil that the vessels whether under mortgage to the United States or not shall not engage in international trade or in other than the coastwise trade of Brazil. Moreover, United States ships cannot operate in the Brazilian coastal trade since Brazil has coastal laws similar to ours in that regard. Consequently, such vessels will not be in competi- tion with vessels operated by United States ship- ping-lines operating to Brazil. As I have indicated, the sale of these vessels as authorized by this legislation would contribute to the economic development of Brazil, serve the foreign policy of the United States by strengthen- ing and helping to unify a friendly country in this hemisphere, and cannot adversely affect the American Merchant Marine. Current Legislation 83d Congress: 2d Session Overseas Information Programs of the United States. Final Report of the Committee on Foreign Relations Pursuant to the Provisions of S. Res. 74, 32d Congress, 2d Session ; S. Res. 44, 83d Congress, 1st Session, and S. Res. 117, 83d Congress, 1st Session, as Extended. S. Rept. 936, February 10 (legislative day, February 8), 1954, 6 pp. Mexican Farm Labor. Hearings before the House Com- mittee on Agriculture on H. J. Res. 355. February 3, 5, 8, 9, 10, and 11, 1954, Serial V, 239 pp. Mexican Agricultural Workers. Report to accompany H. J. Res. 355. H. Rept. 1199, February 12, 1954, 9 pp. Certain Cases in Which the Attorney General Has Sus- pended Deportation. Report to accompany S. Con. Res. 60. S. Rept. 940, February 15 (legislative day, Febru- ary 8), 1954, 2 pp. Certain Cases in Which the Attorney General Has Sus- pended S. Reptr941 Deportation. 15 (legislative day, oFebru- ary 8), 1954, 2 pp. East-West Trade. Hearing before the Subcommittee on Foreign Economic Policy of the House Committee on Foreign Affairs. February 16, 1954, III, 40 pp. Atomic Energy Act of 1946. Message from the President of the United States Transmitting Recommendations Relative to the Atomic Energy Act of 1946. H. Doc. 328, February 17, 1954, 8 pp. Proposed Supplemental Appropriation to Pay Claims for Damages, Audited Claims, and Judgments Rendered Against the United States. Communication from the President of the United States Transmitting a Pro- posed Supplemental Appropriation to Pay Claims for Damages, Audited Claims, and Judgment.; Rendered Against the United States, as Provided by Various Laws, in the Amount of $5,500,707, Together 'With Such Amounts as May Be :Necessary to Pay Indefinite Interest and Costs and to Cover Increases in Rates of Exchange as May Be Necessary to Pay Claims in Foreign Cur- rency. H. Doe. 329, February 17, 1954, 67 pp. Authorizing the Admission for Instruction at the United States Military and Naval Academies of Citizens of the Kingdoms of Thailand and Belgium. Report to ac- company S. J. Res. 34. H. Rept. 1211, February 17, 1954, 6 pp. Continuation of Mexican Farm Labor Program. Report to accompany S. J. Res. 121. S. Rept. 985, February 17 (legislative day, February 8), 1954, 3 pp. The Problem of the Veto in the United Nations Security Council, Staff Study No. 1, Subcommittee on the United Nations Charter of the Senate Committee on Foreign Relations. February 19, 1954, 23 pp. The St. Lawrence Seaway. Report of the House Com- mittee on Public Works on S. 2150, a Bill Providing for Creation of the St. Lawrence Seaway Development Corporation to Construct Part of the St. Lawrence Seaway in United States Territory and for Other Pur- poses. H. Rept. 1215, February 19, 1954, 121 pp. 534 t Approved For Release 2003/03/25 : CIA-RDP60-00442R000t1~rv~' ~~0-3- to Bulletin Approved For Release 2003/03/25 : CIA-RDP60-00442ROO0100140003-6 April 5, 1954 I n d e x Brazil. Sale of Vessels to Brazil for Coastwise Shipping Recommended (Woodward) . . . . . . . . . 533 Canada. U.S. and Canada Examine Common Economic Problems (text of joint communique) . . . . .. 511 Congress, The Current Legislation . . . . . . . . . . . . 534 International Copyright Protection (Kalijarvi) . . . 530 The International Educational Exchange Program (12th semiannual report) . . . . . . . . . . . . Economic Affairs Sale of Vessels to Brazil for Coastwise Shipping Recom- mended (Woodward) . . . . . . . . . . . 588 U.S. and Canada Examine Common Economic Problems (text of joint communique) . . . . . . . . . 511 Educational Exchange. The International Educational Ex- change Program (12th semiannual report) . . . . 499 Foreign Service John P. Davies Case (Dulles) . . . . . . . . . 528 Eighth Foreign Service Selection Boards Meet . . . . 529 Germany Allied Efforts To Restore Freedom of Movement in Germany (texts of correspondence) . . . . . . 508 "Sovereignty" of East Germany (White) . . . . . . 511 Indochina. U.S. Views on Situation in Indochina (Dulles) . . . . . . . . . . . . . . . . 512 International Information. International Copyright Pro- tection (Kalijarvi) . . . . . . . . . . . . 530 International Organizations and Meetings. Calendar of Meetings . . . . . . . . . . . . . . . . 527 Japan. U.S. and Japan Sign Mutual Defense Assistance Agreement (texts of joint communique, statement, and agreement) . . . . . . . . . . . . . 518 Military Affairs. U.S. Views on Situation in Indochina (Dulles) . . . . . . . . . . . . . . . . 512 Mutual Security. U.S. and Japan Sign Mutual Defense Assistance Agreement (texts of joint communique, statement, and agreement) . . . . . . . . . 518 Paraguay. Ambassador to U.S. (Velloso) . . . . . 511 Protection of Nationals and Property. Allied Efforts To Restore Freedom of Movement in Germany (texts of correspondence) . . . . . . . . . . . . 508 Vol. XXX, No. 771 Treaty Information Current Actions . . . . . . . . . . . . 525 International Copyright Protection (Kalijarvi)i . . . 5.30 U.S. and Japan Sign Mutual Defense Assistance Agree- ment (texts of joint communique, statement, and agreement) . . . . . . . . . . . . . . . 518 Name Index Allison, John M . . . . . . . . . . . . . . 518 Conant, James B . . . . . . . . . . . . . . 508 Davies, John P . . . . . . . . . . . . . . . 528 Dengin, Sergei . . . . . . . . . . . . . . . 508? Dulles, Secretary . . . . . . . . . . . 499, 512, 528 Kalijarvi, Thorsten V . . . . . . . . . . . . 530 Murphy, Robert . . . . . . . . . . . . . . 513 Semenov, Vladimir . . . . . . . . . . . . 508 Timberman, Thomas S . . . . . . . . . . . 508 Velloso, Guillermo Encisco . . . . . . . . . . 511 White, Lincoln . . . . . . . . . . . . . . . 511 Woodward, Robert F . . . . . . . . . . . . 533 Check List of Department of State Press Releases: March 22-28 Releases may be obtained from the News Division, Department of State, Washington 25, D. C. Press releases issued prior to March 22 which ap- pear in this issue of the BULLETIN are Nos. 117 and 119 of March 8, 132 of March 15, 143 of March 17, and 146 of March 18. No. Date Subject *150 3/22 Radio discussions with Mexico t151 3/22 Trade relations with Philippines t152 3/23 Wheat to Afghanistan 153 3/23 Dulles: John P. Davies case 154 3/23 Dulles: Indochinese situation 155 3/23 Foreign Service Selection Boards t 156 3/23 Convictions in illegal arms case 1157 3/24 Claims against Cuban Government 158 3/24 Woodward: Sale of vessels *159 3/24 Summary of Exchange Program report t J60 3/24 Exchange Advisory Commission report 1161 3/25 Note to Czechoslovakia 162 3/26 Paraguay: Letters of credence (re- 1163 t 164 write) 3/26 Soviet lend-lease vessels 3/26 Patterson: U.N. Day Committee *Not printed. t Held for a later issue of the BULLETIN. April 5, 1954 535 Approved For Release 2003/03/25 : CIA-RDP6O-00442R000400N0O035.6FrtCr, gas, ved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 THE PERLIN CONFERENCE A meeting of the Foreign Ministers of the United States, France, the United Kingdom, and the Soviet Union, John Foster Dulles, Georges Bidault, Anthony Eden, and Vya- cheslav Molotov, took place in Berlin between January 25 and February 18, 1954. The major problem facing the Berlin Conference was that of Germany. Two publications released in March record discussions at the Conference.... Our Policy for Germany This 29-page pamphlet is based on statements made by John Foster Dulles, Secretary of State, at the Berlin meet- ing. It discusses the problem of German unity, Germany and European security, and the significance of the Berlin Conference. Foreign Ministers Meeting - Berlin Discussions January 25-February 18, 1954 This publication of the record of the Berlin discussions of the four Foreign Ministers is unusual in that a substan- tially verbatim record of a major international conference is being made available to the public so soon after the close of the Conference. Included in the record is the report on the Conference by Secretary of State John Foster Dulles, delivered over radio and television on February 24, 1954. Publication 5399 70 cents ty-P& D u rats 7,61A so. # o vet, Pri itin ice Washington 25. D.C Please send me ------ copies of Our Policy for Germany Please send me ------ copies of Foreign Ministers Meeting - Berlin Discussions January 25-February 18, 1954 Name --------------------------------------------------- Street Address ---------------------- -----?------------- City, Zone, and State ---------------------.------------_ droved For Release 2003/03/25 : CIA-RDP60-00442R000100140003-6 r meat