THE DEPARTMENT OF STATE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP60-00442R000100140003-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 40
• Document Creation Date: December 15, 2016
• Document Release Date: June 10, 2002
• Sequence Number: 3
• Publication Date: April 5, 1954
• Content Type: BULL

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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
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Al-le ?e,.r9ey" bulletin
April 5, 1954
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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-
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eral international interest.
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well as legislative material in the field
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currently.
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 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
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 Two-thirctspt~veloagreMCI~pQ1@,Mqp*D4A10fl0II3ienhower, have
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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
.
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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
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 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.
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 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.
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 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
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 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
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 ,
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
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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
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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.
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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
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 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
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 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
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 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
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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.
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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
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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.
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 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
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 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
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 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.
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 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
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 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.
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 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.
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 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
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 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
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 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.
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 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
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 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.
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 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.
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 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
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 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
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 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.
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 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.
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 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.
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 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
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 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
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 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 ---------------------.------------_
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r meat