HIGHLIGHTS OF FOREIGN POLICY DEVELOPMENTS - 1956

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00022R000400170003-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 20
• Document Creation Date: December 9, 2016
• Document Release Date: January 31, 2001
• Sequence Number: 3
• Publication Date: March 1, 1957
• Content Type: OPEN

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PUBLIC. SERVICES DIVISION DEPARTM NT` QF STATE
HIGHLIGHTS OF FOREIGN POLICY DEVELOPMENTS-1956
This pamphlet has been prepared as a readily accessible source for reference to some of the major events
and pronouncements affecting U.S. foreign policy during calendar year 1956. It encompasses events in each of
the major geographic areas as well as various general developments of our foreign policies. The material is pre-
sented in chronological order by subject and is compiled from previously published official sources.
CONTENTS
Page
Soviet Union . . . . . . . . . . . . . . . . . . . . . . .
The Satellites . . . . . . . . . . . . . . . . . . . . . . 2
4
Middle East and Africa . . . . . . . . . . . . . . . 6
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Latin America . . . . . . . . . . . . . . . . . . . . 12
Far East . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Disarmament . . . . . . . . . . . . . . . . 15
Highlights in Some Other Areas of Foreign Policy . . . . . . . 16
Mutual Security . . . . . . . . . . . . . . . . . . . 16
Atomic Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Trade Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Information Abroad . . . . . . . . . . . . . . . . . . . . 18
East-West Exchanges . . . . . . . ..... 18
Educational Exchange and Cultural Programs . . . . . . . . . . . . . . . . 18
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SOVIET UNION
_ The new year 1956 soon brought evidence of
the "new phase of the struggle" between inter-
national communism and freedom, which Sec-
retary Dulles had portended at the end of 1955.
President Eisenhower, in rejecting Soviet Premier
Bulganin's proposal that Russia and the United
States sign a 20-year treaty of friendship and
cooperation, pointed out that such a treaty might
"work against the cause of peace by creating the
illusion that a stroke of a pen had achieved a
result which in fact can be obtained only by a
change of spirit."
But the President held "some faint hope" of
eventual useful results from his correspondence
with the Soviet Premier; and Secretary Dulles
looked forward confidently to a day when Russia
would be governed by men "who put the welfare
of the Russian people above world conquest."
The New Look
In February the Secretary announced "a notable
shift" in Soviet foreign policy to economic and
political devices for furthering their "expan-
sionist aims," a shift which came about, he stated,
because Soviet policies of violence had been
"thwarted by the free world." And he called
for new flexibility in our foreign policy. The
20th Soviet Communist Party Congress ' which
ended in February had repudiated one-man rule.
However, the full impact of the new look in Soviet
policy became apparent in March when the world
first heard news of Party Secretary Khrushchev's
violent denunciation of Joseph Stalin and his
regime in a speech given on the last day of the
Party Congress.
Taking some satisfaction in these "signs of
light which could mark the dawning of a new
day," Secretary Dulles declared that "forces of
liberalization are at work within the Soviet bloc."
And President Eisenhower estimated that "we
have reason for cautious hope that a new, a fruit-
ful, a peaceful era for mankind can emerge from
a haunted decade." The United States warned,
however, that these developments did not signify
any change in basic Soviet objectives. Deputy
Under Secretary Robert Murphy asserted that
the new strategy was "no less dangerous than the
old."
In May the Soviet Union announced that it
was cutting its armed forces by 1.2 million men.
This move was greeted with little enthusiasm by
Secretary Dulles, who viewed it as motivated by
a calculated Russian desire to channel more man-
power into industry and agriculture. He pointed
out that "real disarmament" called for a reduc-
tion in weapons rather than reversible shifts in
military manpower.
In June the State Department released an ad-
mittedly incomplete version of Khrushchev's
February speech, which denounced Stalin as a
murderer. Referring to the speech, President
Eisenhower pointed out that Khrushchev Lad not
condemned outright the methods of torture and
terror of Stalin but had merely complained that
the wrong individuals apparently were picked as
victims. Secretary Dulles labeled the speech "the
most damning indictment of despotism ever made
by a despot" and called on the U.S.S.R. to permit
free elections in the Soviet-bloc countries.
Later in June the Secretary noted that "control
of the Soviet Communist Party over local Com-
munist Parties had been very greatly weakened,"
and said the basic policy of Western unity "was
beginning to pay off."
Probing Soviet Policy
In Moscow the Soviet Communist Party on
June 30 issued a statement attempting to explain
why the abuses of Stalinism had been tolerated
for so long and what needed to be done to prevent
their recurrence. Secretary Dulles again called
on the U.S.S.R. to "restore independence to the
satellite countries." The Secretary said such a
step would be "one of the touchstones of the
reality of a new policy." But there was little
evidence of a new spirit as secret police crushed
an uprising of Polish workers against Communist
rule in Poznan.
In reply to a letter from Premier Bulganin
proposing a reduction of armed forces, the Presi-
dent in August reemphasized the "obvious need
of international supervisory mechanisms and con-
trols" to encourage greater reductions in national
armaments. And he appealed to the Soviet
Premier to consider carefully U.S. proposals for
aerial inspection and for calling a halt to the
stockpiling of nuclear weapons.
In September the Soviet Union accepted an in-
vitation to send representatives to observe U.S.
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 Approved
national elections, and the United States offered
to enter into a reciprocal agreement for U.S. and
Soviet planes to fly between Nome and Murmansk
in connection with. the International Geophysical
Year. The latter offer was turned down in De-
cember by the U.S.S.R.
In October the United States presented the
U.S.S.R. with a $1,355,650 bill for damages to a
U.S. Navy plane which the Soviets had shot down
in 1954.
THE SATELLITES
As the new year began, the White house re-
iterated U.S. policy toward the Soviet satellites,
declaring "the peaceful liberation of the captive
peoples has been, is, and, until success is achieved,
will continue to be a major goal of U.S. foreign
policy."
By midsummer 1956 conditions in Poland
proved so oppressive that on June 28 crowds of
workers rioted in Poznan. At once they were
brutally suppressed by Communist security forces.
The United States expressed its sympathy for the
workers and "profound shock" at the Communist
killings and again called on the Soviets to give
Poland self-government. Noting that the dis-
orders were marked by "demands for bread," the
TTnited States offered to supply wheat, flour, and
other foodstuffs through the International Red
Cross.
Furthermore, the United States in October in-
dicated its readiness to provide longer range eco-
nomic aid to the captive peoples to tide them over
the period of economic adjustment which would
take place as they gained economic independence
from Moscow. In making this offer, Secretary
Dulles indicated it did not depend upon "the
adoption by these countries of any particular form
of society."
Also that month the Secretary expressed the
belief that we were seeing "the beginning of the
process whereby Poland would again retrieve its
national freedom." Even if the Polish Govern-
ment was Communist, lie explained, the important
thing from the point of view of the United States
was to see the breakup of the "monolithic struc-
ture of the Soviet Communist world."
President Eisenhower, in turn, predicted that
the Poles and other Eastern European peoples
who have known freedom "cannot be for always
deprived of their national independence and of
their personal liberty." Our mission as a nation,
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Fleeing such scenes of
tanks and terror as these in
their native country, Hun-
garian refugees escaped to
the free world.
lie declared, was never to "compromise the funda-
mental principle that all peoples who have proved
themselves capable of self-government have a
right to an independent government."
Revolt in Hungary
Mid-October brought a crisis in Eastern Europe
for the Soviet rulers and their puppet regimes. A
peaceful demonstration in Budapest was fanned
by Communist repression into a nationwide revolt,
and a general strike was called against Communist
rule. President Eisenhower spoke out strongly
against Soviet action in bringing troops into
Hungary to quell the disturbances and declared
that the Hungarians were seeking human rights
guaranteed by the U.N. Charter and the peace
treaty.
When wholesale Soviet troop movements into
Hungary took place on November 2, the United
States, Britain, and France called for an urgent
meeting of the Security Council to consider the
matter. President Eisenhower promptly author-
ized $20 million for Hungarian relief.
The United Nations in November and December
became the focus of U.S. efforts to aid the Hun-
garian people. The U.S.S.R. on November 4 in
the Security Council vetoed a U.S.-sponsored
resolution calling for the Soviet Union to desist
from intervening in Hungary's internal affairs.
But the Security Council then adopted a U.S. mo-
tion for a special session of the General Assembly,
under the Uniting-for-Peace resolution, to con-
sider the question. At this session a U.S. resolu-
tion calling for an end to Soviet intervention was
adopted. When it became known subsequently
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Hungarian refugees registering at a
receiving point in Vienna.
that Hungarian patriots were being deported to
the Soviet Union, the United States gave strong
support in the United Nations to efforts to prevail
on the U.S.S.R. to cease the deportations and to
return the thousands already shipped out in box-
cars. And despite Soviet refusal to comply with
U.N. resolutions, the United States continued to
urge that U.N. observers be admitted to Hungary
to determine the facts about conditions there.
Hungarian ReFugees
President Eisenhower intervened personally
with Soviet Premier Bulganin on behalf of the
Hungarian people. He immediately ordered
"extraordinary measures" to admit 5,000 refugees
to the United States. Authorization was later
given for the admission to this country of 21,500
Hungarian refugees, and in November the United
States allocated $1 million to the United Nations
for Hungarian relief.
Again, President Eisenhower, stating U.S. pol-
icy toward the satellites, made it clear that, while
we seek to keep the spirit of freedom alive behind
the Iron Curtain, we have never advocated open
rebellion by the people against force over which
they could not possibly prevail.
As the year drew to a close, Hungarian refugees
under an accelerated program were arriving in
substantial numbers in the United States where
they were finding a warm welcome, both officially
and from American sponsors in all parts of the
country. The United Stites continued to mani-
fest its concern for the Hungarian people. An
additional $4 million was made available to the
United Nations for Hungarian relief, and Vice
President Nixon flew to Austria, acting as the
President's personal representative, for a first-
hand inspection of the escapee problem.
MIDDLE EAST AND AFRICA
In the Middle East and Africa area, 1956 be-
gan auspiciously with the achievement of inde-
pendence by the Sudan, now a new sovereign
nation in Africa. This happy event was over-
shadowed, however, by an intensification of the
conflict between Israel and the Arab States and
the dispute over Cyprus involving Britain, Greece,
and Turkey.
As to Cyprus, President Eisenhower recalled
our friendship with all parties to the conflict and
offered to help in any reasonable way; but he
pointed out that a solution would have to be
reached by those most concerned.
Israel-Arab Policy
On February 1 President Eisenhower and
Prime Minister Eden, after 3 days of talks, called
on Israel and the Arab States to "reconcile the
positions" they had hitherto taken and pledged
the support, financial and otherwise, of both the
United States and the United Kingdom to assist
in a settlement. Shortly thereafter Secretary
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the preservation of the State of Israel," and he
pointed out that the U.N. Charter and the Tri-
partite Declaration of 1950 provided better pro-
tection for Israel than an, arms race.
The problems to. be solved in the area, the Secre-
tary said, were the plight of the Arab refugees,
the fear existing between Israel and her neighbors,
and the lack of fixed boundaries between them.
By the end of March the United States, increas-
ingly concerned that developments in the Pales-
tine area might endanger the maintenance of peace
and security, called for a meeting of the U.N.
Security Council. There Henry Cabot Lodge,
U.S. Representative to the United Nations, called
on the Secretary-General to undertake immedi-
ately "a personal investigation of ways and means
of settling the numerous problems which stand in
the way of peace."
Conflict Intensifies
In April, regarding the situation with the "ut-
most seriousness," President Eisenhower sent per-
sonal messages to the Heads of State of Israel
and Egypt. In a significant pronouncement the
White House pledged U.S. support of the
Secretary-General's mission. The statement said
the United States would observe its commitments
under the U.N. Charter to oppose any aggression
in the area and would assist any nation which
might be attacked.
In May Secretary Dulles returned from a NATO
Council meeting in Paris and reported "grave
concern that the Soviet Union was playing fast
and loose with peace" in the Middle East. Ile
said the NATO countries backed Israel's independ-
ence but that we sought friendly relations with
all the nations of the area on a basis of
impartiality.
Egyptian-Soviet Rapprochement
Meanwhile, however, Egypt's relations with the
Soviet Union grew closer. In May, when Egypt
recognized Red China, Secretary Dulles com-
mented that the United States did not look with
favor on action by President Nasser "which seems
to promote the interests of the Soviet Union and
Communist China," and President Eisenhower
called the Egyptian action a mistake.
to help finance the High Aswan Dam in Egypt,
pointing out that developments since the United
States had first offered in December 1955 to assist
Egypt in this project "have not been favorable to
the success of the project." The U.S. statement
added that "the ability of Egypt to devote ade-
quate resources to assure the project's success has
become more uncertain than at the time the offer
was made." The United States, however, indi-
cated that it was "prepared to consider at an
appropriate time . . . what steps might be taken
toward a more effective utilization of the water
resources of the Nile."
Suez Canal Nationalized
On July 26 Egypt seized the installations of the
Suez Canal Company, a step which was to set off
a tragic chain of events in the Middle East area.
Secretary Dulles declared at the time that to per-
mit Egypt's action to go unchallenged would be
"to encourage a breakdown of the international
fabric upon which the security and the well-being
of all peoples depend."
Subsequently, at a 22-nation conference held in
London in August, the Secretary called for an
international, nonpolitical administration of the
canal which would have the confidence of the users,
and he stated a set of principles upon which an
equitable plan should be based. These included
operation of the canal as a free, secure interna-
tional waterway in accordance with the Suez
Canal convention of 1888 and divorced from the
influence of any nation's politics, consideration for
the rights of Egypt, and fair compensation for the
Suez Canal Company.
Meetings and Agreements
Following acceptance by 18 nations at the con-
ference of a. U.S. plan for a solution of the Suez
problem, President Nasser of Egypt agreed to
meet with a 5-nation committee to hear the views
of the majority group. Despite the subsequent
rejection of the plan by President Nasser, the
United States in September reasserted its deter-
mination to continue to seek a just and peaceful
solution to the problem. President Eisenhower
and Secretary Dulles both declared that U.S.
policy barred the use of force in seeking a solu-
tion. The Secretary revealed that the United
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plan for a Suez Canal Users President Eisenhower deplored this military ac-
Association to act as agent for the users.
Early in October the Suez problem came before
the U.N. Security Council. There the first part
of a British-French resolution, which embodied
a 6-point agreement on the principles that should
guide a Suez settlement, was unanimously
approved.
Conflict in Egypt
The events of late October were to supplant
negotiations on the canal with even more urgent
matters. Reports from the Middle East indi-
cated large-scale mobilization of troops in Israel.
President Eisenhower on October 27 sent an ur-
gent personal message to Israeli Prime Minister
Ben-Gurion expressing his grave concern and urg-
ing that no forceful initiative be taken which
would endanger the peace. The next day the
President dispatched a stronger message to Israel
and announced that he had ordered discussion of
the developments with Britain and France un-
der provision of the Tripartite Declaration of
1950.
President Eisenhower's plea went unheeded,
however, for on October 29 Israeli military forces
invaded the Sinai Peninsula of Egypt. Follow-
ing emergency meetings with top U.S. officials,
the President declared the United States would
honor its pledge to assist any victim of aggression
in the Middle East. The following day the U.N.
Security Council, meeting at the request of the
United States, considered a draft U.S. resolution
urging Israel to cease its military activities against
Egypt and to withdraw to its borders. This reso-
lution was vetoed by both Britain and France.
Anglo-French Intervention
A new element then entered the situation. Brit-
ain and France on October 30 sent an ultimatum
to the combatants to cease fire or face Anglo-
French intervention. President Eisenhower at
once sent personal messages to the Prime Minis-
ters of our two allies urging them not to use force
and to permit the United Nations to achieve a
settlement. But with Egypt's rejection of it cease-
fire, Britain the next day launched air assaults
on Egyptian bases, and Britain and France pre-
pared to invade Port Said.
tion and declared the United States would not
become involved in the fighting. Ile revealed that
the United States intended to bring the matter
before the U.N. General Assembly, where no veto
could be used. In this subsequent emergency ses-
sion of the Assembly in the first days of Novem-
ber, the United Nations adopted a U.S.-sponsored
resolution urging an immediate cease-fire and a
return of Israeli forces behind the armistice lines.
Though Britain and France rejected the U.N. call
for a cease-fire, they did agree to a U.N. takeover
of the Suez area by a U.N. international force.
The resolution establishing the United Nations
Emergency Force (UNEF) was adopted by the
United Nations following deferral by the United
States of action. on a pair of resolutions seeking to
achieve "permanent" solutions to the problems of
the canal and the Arab-Israeli conflict.
Soviet Proposal
In the United Nations the United States con-
tinued to urge an end to the fighting in Egypt and
offered logistic support for UNEF. The Soviet
Union's solution for the problem was embodied
in a proposal that the U.S.S.R. and the United
States act together militarily to halt "aggression
against Egypt," a suggestion the White House on
November 5 termed "unthinkable." The next
day Britain and Frame announced a cease-fire.
And Israel, on November 8, agreed to withdraw
from Egyptian territory when UNEF could take
over, following a request the previous day by
President Eisenhower to Prime Minister Ben-
Gurion that Israel comply with a U.N. resolu-
tion to that effect.
One Law For All
The situation again grew tense, however, with
reports that "volunteers" from the U.S.S.R. and
China might join Egypt's forces. At this junc-
ture President Eisenhower warned that the United
States would support the United Nations in op-
posing such a move. Meanwhile, the first UNEF
units left for Egypt. In mid-November Acting
Secretary of State Herbert Hoover, Jr., in the
United Nations repeated the President's warning
and called for an attack on the basic causes of
unrest in the area, a policy restated a few days
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later by Secretary Dulles, who made the point that Other Significant Developments
a truce alone would not bring peace. The United Other developments in the Middle East and
States continued to press for withdrawal of the A X__*__ *__ _,__ , , ? a ? .
invading forces from Egypt and supported an
Asian-Arab resolution to that effect, which was
adopted on November 24.
In a significant address in early December, Vice
President Nixon made the point that, if aggres-
sive force were to be outlawed as an instrument
of national policy, other ways would have to be
found to protect the legitimate interests of na-
tions when they were threatened by means short
of force. He observed that the United States
in its stand in the United Nations on the Egyptian
question upheld the rule of law and that the
peoples of Asia and Africa now know that we
have one law for both the East and the West.
President Eisenhower pointed out that while our
policy had created a certain strain with our tra-
ditional allies, Britain and France, it was limited
to a particular difference and meant no weakening
or disruption of the great bonds with which we
were joined.
At the U.N. Emergency Force Headquarters at Port Said,
Egypt, a Danish military policeman stands guard under
the U.N. flag.
The Baghdad Pact, linking the United King-
dom, Turkey, Iran, Iraq, and Pakistan, received
strong U.S. support; and although not a member
of the pact, the United States did participate in
its economic and countersubversive committees
and engaged in bilateral economic and technical
aid agreements with pact members. In late No-
vember the Department of State declared signifi-
cantly that the United States would view "with
the utmost gravity" a threat to the territorial
integrity or political independence of the members
of the pact.
Sudanese independence, which began the year
so auspiciously, was followed by autonomy for
Tunisia and Morocco as well-developments which
met with U.S. backing. The United States also
supported the movement toward independence of
the Gold Coast, which, together with British
Togoland, now forms the new state of Ghana. In
addition to its recognition of the three new African
nations which gained independence in 1956, the
United States in October relinquished its right to
extraterritoriality in Morocco.
Clarifying our policy in North Africa, the U.S.
Ambassador to France, C. Douglas Dillon, an-
nounced that the United States stood "solidly be-
hind France in her search for a liberal and equi-
table solution of the problems in Algeria." He
explained that the United States considered
Algeria primarily a French domestic affair.
In September 1956 the Department of State
gave practical recognition to the increasing im-
portance of Africa in world affairs by reorganiz-
ing its African Affairs area, creating a new
position of Deputy Assistant Secretary of State
for African Affairs.
EUROPE
Declaration of Washington
The United States early in 1956 conferred with
some of its closest allies in Europe on common
problems and laid the groundwork for joint action
to meet a number of international contingencies.
First, there was the conference at the end of Janu-
ary between President Eisenhower and Prime
Minister Sir Anthony Eden. Following this meet-
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ing, the two Western leaders issued the "Declara-
tion of Washington." In this statement they set
forth the basic principles which guide their con-
duct in their relations with other nations. Also,
in a joint statement, they welcomed the increasing
range of consultation on political and other prob-
lems in NATO and pledged themselves to the
reunification of Germany.
German and French Talks
Secretary of State Dulles in June held confer-
ences separately with French Foreign Minister
Christian Pineau and with German Chancellor
Konrad Adenauer. The French talks took in the
subjects of effective disarmament controls, Ger-
man reunification, NATO's expanding functions,
Algeria's future, European unification, the prob-
lems of peace in the Middle East, and the economic
development of newly developing areas.
As might be anticipated, the talks with Chan-
cellor Adenauer dealt primarily with the subject
of the reunification of Germany. In a joint com-
numique issued at the close of the conference, the
two nations asserted that the West's attitude to-
ward the Soviet Union should be determined by
the U.S.S.R.'s performance on the matter of Ger-
man reunification. The communique dealt also
with such topics as German war assets in the
United States, NATO, Franco-German agreement
on the Saar, and recent steps toward European
integration, a subject which had also received ex-
tensive consideration in the French talks.
The problem of German reunification received
further consideration in early October when
France, Britain, and the United States sent identi-
cal notes on the subject to the U.S.S.R.
Another matter which continued to occupy the
attention of Western diplomacy in 1956 was the
movement toward European unity. Secretary
Dulles said on October 2 he believed it would be
"quite appropriate" for Europe to become a "third
great power," and he strongly advocated the unity
movement.
Aid to Yugoslavia
During consideration of the Mutual Security
Act of 1956, Congress questioned the advisability
of continuing assistance to Yugoslavia, particu-
larly in the military field. Therefore, the act was
U.S. Air Force Sabre jets stationed in. Holland under the
North. Atlantic Treaty Organization streak over the Dutch
countryside.
amended to provide for a suspension of assistance
to Yugoslavia unless the President found that
Yugoslavia was not under Soviet control and that
it was in the U.S. national interest to continue
furnishing aid. On October 16 the President de-
cided that aid should be continued.
NATO Developments
Beginning in the spring of 1956 the future of
NATO and the extent of its role in the Western
alliance was the subject of intensive discussion by
the member nations. Secretary Dulles, after
meeting with the Foreign Ministers of the other
NATO nations in April, reported general agreement
on the further development of NATO cooperation
"particularly in the nonmilitary political fields."
And he explained that a committee composed of
the Foreign Ministers of Canada, Italy, and
Norway (the "three wise men") was to consider
the matter and report on it as quickly as possible.
Again, in May, Mr. Dulles called on NATO to ad-
vance from its initial phase "into the totality of
its meaning." In pursuance of this objective,
President Eisenhower called upon Senator Walter
F. George to act as his "Personal Representative
and Special Ambassador" to NATO, and requested
him to study the problem in consultation with the
"three wise men."
At the meeting of the NATO Council in Paris in
mid-December, the committee's report was sub-
mitted for consideration. It was at this time that
Secretary Dulles took the opportunity to try to
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strengthen those relationships which had been our southern neighbors with the dollars needed to
weakened as a result of the Middle East situation. purchase U.S. products.
The Secretary pledged that the United States
would seek the way to "bury past discords in a
future of peaceful and fruitful cooperation," and
he offered U.S. aid in the economic crisis facing
Europe as a result of the interruption of the oil
flow from the Middle East.
Final Communique
Evidence of the progress made by the NATO
members toward their aim of strengthening the
alliance was embodied in the final communique
of the Council meeting. It indicated approval
of the committee's recommendations for "wider
and more intimate consultation among the mem-
ber states on political matters." The Council also
approved arrangements to aid in settling disputes
among members and adopted measures to
strengthen NATO internally. The extent of the
unity achieved by the Council members was
demonstrated by their unanimity on measures to
be taken concerning the urgent problems in the
Middle East and Hungary and their determina-
tion to maintain their "concept of forward de-
fense in NATO strategy" in the face of the "con-
tinued rise in Soviet capabilities." At the year's
end it appeared that politically, as well as mili-
tarily, NATO was still the main bulwark against
any Communist aggression in the North Atlantic
area.
LATIN AMERICA
Economic and Political Bonds
The year 1956 saw a further strengthening of
the many economic, social, and political bonds
which link the United States with the other
American Republics. As in recent years, Latin
America continued its amazing economic prog-
ress, due in large part to its mutually beneficial
trade relations with the United States. Henry
F. Holland, at that time Assistant Secretary of
State for Inter-American Affairs, told the Con-
gress in January that 27 percent of our exports
were sold in Latin America and 34 percent of our
imports came from there. And he pointed out
again the need for the United States to import
even more goods from Latin America to provide
Communism Under Control
Politically, as well as economically, U.S. rela-
tions with Latin America continued to set the
world an enviable example. The unity of the
American Republics in the face of Communist
attempts to penetrate the hemisphere had been
demonstrated at Caracas in 1954. And in 1956
Secretary Dulles was able to say that the danger of
Soviet penetration was "more under control in
Latin America than in most" other areas.
Meeting of the Presidents
Outstanding among the developments in the
hemisphere was the historic meeting of the Presi-
dents of 19 of the 21 American Republics at Pan-
ama, July 21-22. There, in a room where the first
Pan-American Conference was held 130 years ago,
the American Presidents signed a 5-point declara-
tion outlining the political and economic philoso-
phy of the Western Hemisphere nations. At the
meeting President Eisenhower called on the na-
tions of the Americas to combat disease, poverty,
and ignorance in the area just as they had joined
together to oppose aggression. And he offered
practical assistance along those lines by proposing
that the Presidents appoint representatives to a
committee which would prepare recommendations
for making the Organization of American States
"a more effective instrument in those fields of co-
operative effort that affect the welfare of our peo-
ples." The President suggested that thought be
given to "ways in which we could hasten the bene-
ficial use of nuclear forces throughout the hemi-
sphere."
Presidents' Committee
At its first meeting held in Washington Septem-
ber 17-19, the Committee of Presidents' Repre-
sentatives decided to proceed with a study of
problems in a dozen different fields of activity.
Dr. Milton Eisenhower, brother of the President
and Chairman of the session, outlined U.S.-Latin
American cooperative efforts in the atomic energy
field. He also invited the other nations to send
representatives to an Inter-American Symposium
on Nuclear Energy to be held in 1957 in New
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 Approved F
At the Presidential Palace
at Panama City, Panama,
Presidents from 19 of the 21
American Republics meet
for the first time in the his-
tory of the Americas.
York. As to the further work of the Committee
of Presidents' Representatives, it was decided that
they would meet again in January, after the mem-
ber governments had had time to consider the
problems presented, in order to draw up an agenda
for a final meeting later in 1957.
In the field of atomic energy in Latin America
the United States during 1956 signed agreements
for cooperation in research in the peaceful uses
of atomic energy with Uruguay, Costa Rica, the
Dominican Republic, and Guatemala. These
were similar to the agreements concluded since
June 1955 with Argentina, Brazil, Chile, Colom-
bia, Cuba, Peru, and Venezuela.
FAR EAST
Secretary's Report
Early in 1956 Secretary Dulles visited 10 coun-
tries of the Far East and Southeast Asia. His
trip followed a meeting with the Foreign Min-
isters of the member nations of the Southeast Asia
Treaty Organization' in Pakistan. Reporting
later on the trip, Mr. Dulles expressed his confi-
dence that the combined strength of the Sn+A ro
powers would safeguard the treaty area against
open armed aggression. He also declared that
Asian leaders were well aware of the dangers of
Communist economic penetration of Asia. The
Secretary called for continued U.S. economic as-
sistance to the Asian nations to help them meet
the "powerful urge" for economic and social
betterment.
SEATO Progress
In March the SEATO Council representatives
issued their first annual report in which they
stated that in the past year "substantial progress
' The Southeast Asia Collective Defense Treaty came
into effect on Feb. 19, 1955, with the following member
countries : Australia, France, New Zealand, Pakistan,
the Philippines, Thailand, the United Kingdom, and the
United States.
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 has been riadcY~-'l for Release sse0rtecC ~l9i/aR3i4t elA-RPrP8Js091g 9gPaJ lJpWd0 to such action.
determination of the members to prevent and
deter further aggressive expansion into South-
east Asia by armed force and subversion has made
an important contribution to the preservation of
peace in the area." In June a SEATO headquarters
was established at Bangkok, and subsequently a
SEATO international staff was recruited and began
activities in various civilian fields. Secretary
Dulles called the establishment of the new head-
quarters "another forward step" in. SEATO's de-
velopment, serving, as lie put it, as an aid "in
strengthening the security of the member states
against armed aggression or subversion."
SEATO in 1956 also engaged in two successful
military maneuvers designed to test the mobility
of the defensive forces of the treaty countries.
More Broken Agreements
During the year the vigilance and strength of
the free nations did indeed bar any serious overt
aggression. But Communist violation of the ac-
cepted practices of international conduct con-
tinued throughout the area.
In Korea there was flagrant violation of the
armistice agreement by the North Korean Com-
munists who brought new weapons into the area
and built a new air force. Also, the Communists
prevented Neutral Nations Supervisory Commis-
sion teams from carrying on inspections in the
Communist zone. The U.N. Command on May
31 accordingly ordered the withdrawal of the
inspection teams from South Korea.
In Viet-Nam the story was much the same. In
June Assistant Secretary of State Walter S. Rob-
ertson reported that the Communist Viet-Minh, in
complete disregard of their obligations under the
Geneva accords, had imported voluminous quan-
tities of arms from Red China.
The United States continued throughout the
year to offer support and encouragement to the
Republic of Viet-Nam, and the new nation made
great strides in achieving political, economic, and
military stability.
Communist China
During 1956 the United States remained firm
in its opposition to recognition of Red China or
its admission to the United Nations, with both
Congress and the executive branch going on rec-
Congressional action was unanimous.
The conversations between American and Red
Chinese representatives continued at Geneva, but
by the year's end the Chinese still held 10 Ameri-
cans in violation of their pledge of September 10,
1955, to release them. The Reds also continued in
their refusal to renounce the use of force in the
Formosa area. In a statement in January, the
United States pointed out that the Chinese Reds
"seem willing to renounce force only if they are
first conceded the goals for which they would use
force."
A new aspect of Red Chinese policy which de-
veloped during the year was their attempt to
launch a so-called "cultural offensive." In ambas-
sadorial talks at Geneva the Communists sought
to develop cultural exchanges with the United
States. The United States held to the position
that it could not consider such a proposal at a time
when Americans were being held as political
hostages in Red China and when the Communists
were unwilling to renounce the use of force in
the Formosa area.
Even while they sought to convince the world
of their peaceful intentions, the Chinese Commu-
nists engaged in an unjustified attack on August
22 on a U.S. Navy patrol plane, resulting in the
loss of the plane and its crew. The United States
subsequently served notice on the Communists
that compensation would be demanded.
Free Asia
As to the free nations of Asia, the United States
drew closer to many of them during 1956, either
individually or through their association with
SEATO.
On July 3 Vice President Nixon and Philippine
President Magsaysay issued a joint statement in
which it was announced that the United States
would transfer to the Philippines all title papers
and claims to all land areas used as military bases.
The transfer was made in December.
Japan during 1956 continued as our major mar-
ket in Asia and a strong friend of the United
States. However, the question of the importation
of Japanese textiles into the United States in com-
petition with local producers led to some difficul-
ties. In January 1956 Japan began voluntarily
controlling cotton textile exports to the United
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decided on a broader program of limiting exports
for 1.957 and subsequent years to effect orderly
marketing of Japanese textile products in the
United States.
Japan-U. S. S. R. Negotiations
In connection with Japan's negotiations during
1956 with the Soviet Union relative to a peace
settlement, the United States, in support of the
Japanese position, informed Japan of its view
that certain islands under Soviet occupation
should in justice be acknowledged as under
Japanese sovereignty. With the conclusion of a
Joint Declaration between the U.S.S.R. and Japan
on October 19 ending the state of war between the
two countries, the Soviet Union agreed to hand
over to Japan the Habomai Islands and Shikotan
after the signing of a peace treaty. Another re-
sult of the agreement was Soviet acquiescence in
the membership of Japan in the United Nations,
it step it had previously prevented and the United
States had strongly supported. The achievement
by Japan of U.N. membership at the year's end
became the final step in the full circle of Japan's
return as a free, respected, and valuable member
of the family of free nations.
DISARMAMENT
The administration in 1956 did not cease in its
efforts to find a basis for a comprehensive, pro-
gressive, and enforceable system of disarmament
under effective international inspection and con-
trol. In the United Nations and elsewhere, the
United States urged the adoption of President
Eisenhower's plan for aerial inspection and other
confidence-building measures which on December
16, 1955 had received the overwhelming approval
of the U.N. General Assembly. In February Sec-
retary Dulles told Congress that, with a thorough
system of inspection, conditions could be created
so that neither the U.S.S.R. nor the United States
would feel in danger of a sudden surprise attack,
and this "would open the way to some substantial
limitation of armament."
On March 1, 1956, President Eisenhower in a
letter to Soviet Premier Bulganin stated that
Prominent Japanese attend the ceremony as the flag of
Japan is raised at U.N. Headquarters following Japan's
admission. to the world organization. Left to right: Mrs.
Toshikazu Kase, wife of Japan's Permanent Representa-
tive to the United Notions; the late Mamoru Shigemitsu,
Japan's Deputy Prime ?Minister and Minister for Foreign
Affairs; his daughter Miss Hanah Shigemitsu; and
Naotake Sato, Japan's chief delegate to the Eleventh
General Assembly.
efforts should be directed especially to bringing
under control the nuclear threat and that the
United States would be prepared to work out,
with other nations, suitable and safeguarded ar-
rangements so that future production of fission-
able materials anywhere in the world would no
longer be used to increase the stockpiles of ex-
plosive weapons. He reaffirmed his proposal of
December 8, 1953, "to begin now and continue to
make joint contributions" from existing stockpiles
of normal uranium and fissionable materials to
an international atomic agency. Ile stated it was
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 A to lope Fr Rll~eased c2 1109 t10, f/ 3 CIA-RDP$1114140,022RAh I S IN JJVM
his ulti a e lo that a pro uc ion o fission 1 LV711-~iILLi~CV7C~'11 ~IIVV
able materials anywhere in the world will be de-
voted exclusively to peaceful purposes. The Pres-
ident also stressed his feeling that disarmament
should be sought primarily through limitation of
arms not men.
During the session of the Subcommittee of the
U.N. Disarmament Commission in London March
19 to May 4, the United States proposed the ex-
change, for a test period, of a small number of
inspection personnel who could be used as mem-
bers of inspection teams if an inspection agree-
ment is subsequently concluded. Likewise, as a
preliminary measure, the United States proposed
the designation of small strips of territory in the
United States and the U.S.S.R. within which the
feasibility of inspection systems could be tested.
U.S. representatives also stated that, assuming
the political situation is reasonably stable, the
levels of armaments, armed forces, and military
expenditure should be reduced in the first stage
of any comprehensive disarmament plan. Given
a reasonably stable international political situa-
tion and adequate inspection and control methods
installed and operating satisfactorily, the United
States would be willing to make definite arma-
ment reductions. The United States proposed, as
a basis for measurement, force levels of two and a
half million men for the armed forces of the
United States and the U.S.S.R., assuming the
conditions mentioned and agreement on relatively
equitable force levels for other states.
In July the U.N. Disarmament Commission
stated that a resolution introduced by the United
States, the United Kingdom, Canada, and France
"sets forth the principles upon which an effective
programme for the regulation and limitation of
all arms and armed forces can be based." The
Commission requested the Subcommittee to con-
tinue its efforts to increase the area of agreement
in the field of disarmament.
In October President Eisenhower issued a re-
view of the Government's policies and actions
concerning the testing of nuclear weapons as they
affect defense and disarmament. Included was
a 90-point memorandum presenting the record on
disarmament negotiations. The President con-
cluded, "We must . . . continue to strive cease-
lessly to achieve, not the illusion, but the reality
of world disarmament."
E OTHER
AREAS OF FOREIGN POLICY
Mutual Security
During 1956 the administration continued its
efforts to promote the security and interests of the
United States through its programs of military
assistance to 38 countries and economic and tech-
nical assistance to some 60 nations, most of them
newly developing nations.
As the year began the U.S. delegation to the
United Nations called on the American people to
"wake up" to the fact that we are in a contest with
the U.S.S.R. "in the field of economic development
of underdeveloped countries which is bitterly
competitive."
President Eisenhower, in his message to the
Congress on March 19, stressed the "urgent" need
for the mutual security program if we are to
achieve our goal of an enduring peace with justice.
He pointed out that "there are still forces hostile
to freedom that compel the free world to main-
tain adequate and coordinated military power."
And, he added, "there are still people who aspire
to sustain their freedom but confront economic
obstacles . . . beyond their capabilities of sur-
mounting alone." He called these facts "as funda-
mental to our own security and well-being as the
maintenance of our own armed forces."
In May the President pointed out to the Con-
gress that the nations receiving our support had
forces equivalent to 200 divisions, over 2,000 naval
ships, and some 300 air squadrons.
Secretary Dulles, testifying before the Congress
in April, stressed the need for longer term com-
mitments in the mutual security program to match
the long-range projects of other countries. He
pointed out that, while a number of matters justi-
fied a study of the program (several studies were
under way during the year), "none of these ques-
tions relates to the basic validity of the program
itself." The program, he said, "is part of a na-
tional insurance policy" against a serious and evi-
dent threat.
In its appropriation for mutual
1957, the Congress made available
security for
for military
assistance $2 billion and for economic aid $1.8
billion. Also, in response to the President's em-
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 Approved For Release 2001/09/03: CIA-RDP84-00022R000400170003-0
? ? ? ? ? ? ? ? a e ? ? ? ? ? ?
.
?.0? ?
? ?`? **sees***
? i? ?`?':.? ? ? ?? ? ?? ? ?
??:??????????????
? ? ? ?:? ? ? ? ? ? ? ? ?? ? ?
? ? ? ? ?
?????~
A Japanese technician explains a niodet of a graphite reactor at the United States atoms-for-peace exhibit at Tokyo, Japan.
phasis on the need for a long-term program, the
Congress included in the Mutual Security Act
a fundamental statement of policy. It declared
essentially that it was U.S. policy to continue,
as long as the danger to world peace and U.S. se-
curity persists, "to make available to free nations
and peoples assistance . . . as may be needed and
effectively used by . . . [them] to help them main-
tain their freedom."
Atomic Agency
Atomic energy matters were prominently on the
scene in 1956. By far the most important de-
velopment in this field was the great step taken
toward the creation of the International Atomic
Energy Agency. After 18 meetings the Twelve-
* i ? ? ? ? ? ? ? ? ? ? ? ?
a ? ? ? ? ? ? ? ? ? ?
Nation Negotiating Group came to agreement on
a draft statute for the agency. And finally on
October 26 at U.N. headquarters in New York, the
statute of the International Atomic Energy
Agency was signed by 70 nations at the conclusion
of an 81-nation conference. The conference
heeded a plea by U.S. Delegation Chairman
James J. Wadsworth to invest the agency with "a
uniform system of safeguards of universal appli-
cation," a step which Mr. Wadsworth declared
could help make the agency the cornerstone of U.S.
international activities in the field of atomic
energy for peace. In a message read at the clos-
ing session of the conference, President Eisen-
hower told the delegation that the statute and the
new agency "hold out for the world a fresh hope
for peace." Furthermore, lie offered to make
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available to the agency 5,000 kilograms of uranium
235 and agreed to match the contribution of atomic
matcria]s to the agency by all other members.
Trade Policy
The foreign trade of the United States-both
imports and exports-rose to record levels during
1956. At Geneva during the early part of the
year, 22 of the 35 countries that are parties to the
General Agreement on Tariffs and Trade, includ-
ing the United States, successfully concluded
negotiations at the 1956 tariff conference. In an-
nouncing the results of the bargaining, the De-
partment of State declared that the United States
and each of the governments with which it had
negotiated "struck a mutually satisfactory
balance of concessions on products which figure
importantly in their two-way trade."
In May President Eisenhower received, from a
group of nongovernmental advisers who had at-
tended the negotiations, a strong recommendation
for U.S. adherence to the proposed Organization
for Trade Cooperation, which is designed to ad-
minister the General Agreement. After full
hearings the House Ways and Means Committee
approved the Oi`c bill 18-7, but the measure was
not brought up for debate in either House. At
the year's end the President indicated he would
again urge passage of the legislation in 1957.
With the passage of the Customs Simplifica-
tion Act of 1956, one important administration
trade proposal did receive congressional approval.
In approving the bill, the President said it would
do "more than any other single measure to free
the importation of merchandise from customs
complications and pitfalls for the inexperienced
importer."
Information Abroad
In its 11th semiannual report to the Congress,
the U.S. Advisory Commission on Information
stated that over the past 2 years the U.S. In-
formation Agency had made remarkable advances
in the orderliness and efficiency of its operation.
An innovation by the Agency during 1956 was an
agreement whereby the United States now sells
each month in the U.S.S.R. 50,000 copies of a new
Russian-language magazine America Illustrated.
Russia has the reciprocal privilege of selling an
equal number of its magazine U.S.S.R. in the
United States.
A significant break in the Iron Curtain was cre-
ated when the Government of Poland decided to
stop jamming Western broadcasts. The action
was taken both on economy grounds and in con-
nection with the general movement toward lib-
eralization in that country.
East-West Exchanges
On June 29 President Eisenhower approved the
recommendation of the National Security Council
that the United States should engage in exchanges
of persons with the countries of Eastern Europe,
including the U.S.S.R.
The President expressed the belief that such a
program, "if carried out in good faith and with
true reciprocity," could contribute to better under-
standing among the peoples of the world. The
exchanges were to be along the lines of the 17-point
program proposed to the U.S.S.R. by the Western
Foreign Ministers at Geneva in October 1955.
Several groups were exchanged under the pro-
gram during the year, but following the repressive
Soviet action in Hungary in the fall, officially
sponsored exchanges with the U.S.S.R. were sus-
pended by the United States. Exchanges with
the other countries of Eastern Europe, however,
were continued.
Educational Exchange and Cultural Programs
August 1, 1956, marked the 10th anniversary of
the signing of the "Fulbright Act," which
launched the largest international educational ex-
change program in U.S. history. The Depart-
ment of State, which administers the program,
commemorated the occasion by issuing a review
of the program's accomplishments over the decade.
The study indicated that 24,750 persons had been
exchanged through 1955; this figure includes both
Americans and nationals of the 28 countries with
which we had exchange agreements during that
period.
An important development affecting the pro-
gram during the year was the acquisition of addi-
tional foreign currencies-through the sale abroad
of surplus agricultural commodities-to be used
for exchange activities. This permitted a notable
expansion of the program, particularly in Latin
America. Agreements were signed during the
year with Argentina, Ecuador, Israel, and Peru
for educational exchanges under the Fulbright
Act.
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Noteworthy progress was also made by the Cul-
tural Presentations Program of the Department
in 1956. Since 1954 the United States had been
sending abroad outstanding American performing
artists and athletes under this program, using
funds appropriated from the President's Emer-
gency Fund for International Affairs. But with
the passage of a new act by the 84th Congress,
Public Law 860, the program was put on a per-
manent basis.
The new act, known as the International Cul-
tural Exchange and Trade Fair Participation Act
of 1956, provides also for the appointment of a
10-member Advisory Committee on the Arts. Its
function is to advise and assist the President, the
Secretary of State, and the U.S. Advisory Com-
mission on Educational Exchange on the conduct
of the Cultural Presentations Program.
September marked the launching by President
Eisenhower of the "People-to-People" program.
This nongovernmental venture, under the aegis
of the U.S. Information Agency, gives promise
for the development of international understand-
ing through personal contacts and other media
of communication. Its purpose, like that of the
Government-operated programs, is to promote
international friendship and understanding
through contacts between Americans and other
peoples, principally those of the free world.
Greek students demonstrate United States farm equipment on model farm forming part of United States exhibit at the
Salonika International Trade Fair.
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 Approved For Release 2001/09/03 : CIA-RDP84-00022R000400170003-0
Department of State Publication 6451... General Foreign Policy Series 115
Released March 1957
For sale by the Superintendent of Documents, U. S. Government Printing Office,
Washington 25, D. C.-Price 15 cents
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