COUNCIL ON FOREIGN RELATIONS ANNUAL REPORT OF THE EXECUTIVE DIRECTOR 1951 - 1952 WITH LIST OF MEMBERS AND BY-LAWS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R001200010036-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 15
• Document Creation Date: December 14, 2016
• Document Release Date: July 11, 2003
• Sequence Number: 36
• Publication Date: January 1, 1952
• Content Type: REPORT

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COUNCIL ON FOREIGN RELATIONS
ANNUAL REPORT
OF THE
EXECUTIVE DIRECTOR
1951-1952
COUNCIL ON FOREIGN RELATIONS
ANNUAL REPORT
OF THE
EXECUTIVE DIRECTOR
1951 - 1952
OFFICERS
1952 -1953
R. C. LEFFINGWELL ............... Chairman of the Board
ALLEN W. DULLES............ Vice-Chairman (on leave)
HENRY M. WRISTON ......................... President
DAVID ROCKEFELLER .................... Vice-President
FRANK ALTSCHUL ............. Vice-President & Secretary
DEVEREUX C. JOSEPHS......... Vice-President & Treasurer
WALTER H. MALLORY ..... Executive Director (on leave)
GEORGE S. FRANKLIN, JR...... Acting Executive Director
FRANK D. CARUTHERS, JR .............. 4ssisiant Treasurer
DIRECTORS
THE HAROLD PRATT HOUSE
FIFTY-EIGHT EAST SIXTY-EIGHTH STREET
New York
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Retiring 1953
FRANK ALTSCHUL W. AVERELL HARRIMAN
WILLIAM A. M. BURDEN JOSEPH E. JOHNSON
JOHN W. DAVIS GRAYSON L. KIRK
HENRY M. WRISTON
Retiring 1954
ALLEN W. DULLES WALTER H. MALLORY
CLARENCE E. HUNTER GEORGE O. MAY
R. C. LEFFINGWELL PHILIP D. REED
MYRON C. TAYLOR
Retiring 1955
HAMILTON FISH ARMSTRONG DEVEREUX C. JOSEPHS
LEWIS W. DOUGLAS DAVID ROCKEFELLER
THOMAS K. FINLETTER WHITNEY H. SHEPARDSON
JOHN H. WILLIAMS
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STANDING COMMITTEES
1952 -1953
Finance & Budget
FRANK ALTSCHUL, Chairman
DEVEREUX C. JOSEPHS PHILIP D. REED
GEORGE O. MAY JOHN H. WILLIAMS
Studies
HENRY M. WRISTON, Chairman
HAMILTON FISH ARMSTRONG STACY MAY
ARTHUR H. DEAN PHILIP E. MOSELY
ALLEN W. DULLES GEORGE N. SHUSTER
GRAYSON L. KIRK JOHN H. WILLIAMS
Nominating
JOHN W. DAVIS, Chairman
HAMILTON FISH ARMSTRONG WHITNEY H. SHEPARDSON
Membership
DAVID ROCKEFELLER, Chairman
FRANK ALTSCHUL GEORGE S. FRANKLIN, JR.
JOSEPH E. JOHNSON AUGUST HECKSCHER
DEVEREUX C. JOSEPHS WARREN T. LINDQUIST
WALTER H. MALLORY OSCAR M. RUEBHAUSEN
Library
MYRON C. TAYLOR, Chairman
FRANK ALTSCHUL LEWIS W. DOUGLAS
ROBERT WOODS BLISS THOMAS K. FINLETTER
WILLIAM A. M. BURDEN W. AVERELL HARRIMAN
DAVID ROCKEFELLER
STAFF
August 1, 1952
HAMILTON FISH ARMSTRONG WALTER H. MALLORY
Editor of "Foreign Alf airs" Executive Director (on leave)
PERCY W. BIDWELL GEORGE S. FRANKLIN, JR.
Director of Studies Acting Executive Director
FRANK D. CARUTHERS, JR. RUTH SAVORD
Business Manager Librarian
"Foreign Affairs": BYRON DEXTER (Managing Editor); HENRY
L. ROBERTS (Bibliographical Editor); MARY H. STEVENS
(Editorial Assistant); PATRICK TANNER (Promotion Man-
ager); JEAN GUNTHER, EDITH MACDIARMID, CATHERINE
MAHONEY, DOROTHY ROSSHEIM.
Research: RICHARD P. STEBBINS (Editor, "U. S. in World
Affairs"); WILLIAM DIEBOLD, JR. (Economist); HELENA
STALSON (Assistant to the Director of Studies); LORNA BREN-
NAN (Assistant to the Acting Executive Director); ELAINE P.
ADAM, MARY E. COFFEY, MARGUERITE HATCHER, JOAN
ROBBINS, INEZ VITERBO.
Administrative: ESTHER L. GILBERT (Office Manager); ROGER
Ross (Administrative Assistant); MARTHA CURRY (Business
Assistant); CAROLYN SLOCUM (Secretary to the Executive Direc-
tor); JEAN ALLAN, ELLEN R. KENNEDY, SALLY KUNEMUND,
ARTHUR N. WALKER, VIVIAN WEAVER.
Library: DONALD WASSON (Assistant Librarian, on military
leave); FLORENCE BRADLEY (Acting Assistant Librarian);
DOROTHY BELL, JANTTE CRAFT, ROBERTA G. KIDDE, JANET
RIGNEY, JOHN M. WEAVER.
Committees on Foreign Relations: JOSEPH BARBER (Director);
NANCY L. MCCLAIN.
Political Implications of Economic Development Project: EUGENE
STALEY (Director); PETER J. DAVIES (Research Associate);
BETTY ANN MITCHELL.
Carnegie Research Fellows: GALE W. McGEE, HENRY L.
ROBERTS, ROBERT S. SCHWANTES.
Carnegie Newspaper Fellows: ALPHEUS W. JESSUP, IRVING R.
LEVINE.
House: WILLIAM WYCK (Superintendent); FRANK FORSELL,
JOSEPH PINE, GIZELLA WYCK.
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FORM OF BEQUEST'
I bequeath to the Council on Foreign
Relations, Inc., a New York non-profit
corporation, the sum of
a. for its general purposes (or)
b. to become part of a general
endowment fund.
"Bequests to the Council on Foreign Relations are
deductible for tax purposes.
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REPORT OF THE
ACTING EXECUTIVE DIRECTOR
T WENTY-FIVE YEARS AGO, when Walter H. Mallory
joined the Council on Foreign Relations as its
Executive Director, the organization was already
earning an enviable reputation in its own field, and,
under the leadership of Hamilton Fish Armstrong,
had started many of the activities which were to be of
importance in its subsequent development. Its first
book had just been published; FOREIGN AFFAIRS,
which had been founded only five years earlier, was
well on its way to a position of unchallenged eminence
in its field; small groups of members had begun meet-
ing to study topics of special interest; and the practice
of inviting distinguished American and foreign states-
men to discuss important problems at off-the-record
dinners for members was already a Council tradition.
But, although an excellent start had been made, the
Council was still a very different organization from
what it is today. In 1927 there was no research staff,
and, in fact, no research; there was no library; there
were no affiliated Committees on Foreign Relations
throughout the country; there were no newspaper fel-
lows; and there was no real Council headquarters,
only a few rooms in a midtown office building.
Then as now, however, the Council was fortunate
in having an unusually able and helpful group of
members and a Board of Directors which took a deep
and active interest in its work. In Mr. Armstrong and
Mr. Mallory it found an unusual team which under-
in the Middle East, United States-Soviet Relations,
Financial Aspects of American Foreign Policy, U. S.
Interests in the Mediterranean, and Problems of
Western European Labor.
The study groups were all well serviced. Two of
these groups, the groups on Political Implications of
Economic Development and on Problems of Strength-
ening Democratic eLadership Abroad, had full time
staff members attached to them, while the other two,
on Anglo-American Relations and on German Unity,
were each serviced by a research secretary devoting a
considerable part of his time to this purpose. The only
discussion group provided with a research secretary
was the group on American Policy in the Middle
East, and the papers written for this group proved so
successful in furnishing a background for its discus-
sions and in pointing up the issues involved, that we
hope to be able to extend this practice to other dis-
cussion groups in coming years.
In our opinion, the most important development in
the Council's research program during the past year
was the Carnegie Corporation's decision to make it
possible for the Council to offer three research fellow-
ships each year for the next three years. These fellows,
all of them young men of special promise, have now
been selected. They will undertake projects of par-
ticular interest to themselves, but each will have a
Council group to help him and will in turn greatly
aid the work of the group.
The Council held eighteen full membership after-
noon meetings during the year and sixteen dinner
[31
stood the opportunities before the growing organiza-
tion and knew how to take advantage of them. The
Council's accomplishments during the past twenty-
five years have been largely due to their collaboration.
This coming year Mr. Mallory has been granted a
leave of absence to return to the Far East and work
again in the area he knew so well before leaving it to
join the Council twenty-five years ago. His judgment,
his fairness, and his never failing encouragement of
those who worked under him will be very much missed
while he is away.
As will be seen from this report, the Council in
1951-52 had a particularly good year intectually, but
a poor one financially, the combined deficit 'n t eien-
eral and research accounts amounting to $
During the course of the year four study groups
and five discussion groups have been in active opera-
tion. With a group, chaired by Mr. Stacy May and
under the direction of Dr. Eugene Staley, the Council
commenced an important new study of the Political
Implications of Economic Development. Other study
groups considered the Problems of Strengthening
Democratic Leadership Abroad, German Unity, and
Anglo-American Relations. This last group, under
the leadership of Dr. Henry M. Wriston, has been
working toward a joint meeing at Arden House the
first week in September with a sister group from the
Royal Institute of International Affairs, and it is our
hope that at that time both groups may achieve agree-
ment on a joint report on Anglo-American relations.
Discussion groups have considered American Policy
meetings. The foreign speakers included Mr. Anthony
Eden, General Jean de Lattre de Tassigny, Premier
William Drees, Professor Walter Hallstein, Mr. Dirk
U. Stikker, and Dr. Jaime Torres Bodet. Among the
Americans were Governor Dewey, Mr. David K. E.
Bruce, Mr. John Foster Dulles, and Mr. Charles E.
Bohlen.
This year's Council publications included our an-
nual works, The Political Handbook of the World
and The United States in World Affairs, as well as
two new books of special significance. These new
books are The Challenge to Isolation, the first volume
of a two volume history of U. S. foreign policy from-
the outbreak of World War II to Pearl Harbor, by
Professors William L. Langer and S. Everett Gleason,
and Trade and Payments in Western Europe, the first
of a two volume analysis of European economic co-
operation since the war, by William Diebold, Jr. Both
the Langer and Diebold books have received very
favorable reviews.
The Committees on Foreign Relations, which are
now established in 25 cities throughout the country,
enjoyed an unusually successful season, having organ-
ized 191 meetings, a greater number than ever before.
Also 790 Committee members, a greater number than
ever, answered the Council's detailed questionnaire on
"Foreign Aid and the National Interest."
Finally, during the past year, FOREIGN AFFAIRS
continued to maintain its usual standard. Its position
is perhaps attested to by the fact that one of the Presi-
dential candidates is a member of its Editorial Advi-
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sory Board, while the other, Governor Stevenson,
outlined his views on our foreign policy in an article
entitled "Korea in Perspective" in the April issue.
Among other important articles this year were the
following: "United to Enforce Peace," by Paul H.
Douglas; "The American Tradition in Foreign Rela-
tions," by Frank Tannenbaum; "Security in the Pa-
cific," by John Foster Dulles; and "India: Do's and
Don't's for Americans," by M. R. Masani.
cific," by John Foster Dulles; and "India: Dos and
Don'ts for Americans," by M. R. Masani.
This coming year the influence of FOREIGN AFFAIRS
will be considerably broadened by a project under-
taken with the aid of a grant from the Fund for Adult
Education. Nine times a year an article from FOREIGN
AFFAIRS will be reprinted in its entirety and distrib-
uted, together with a discussion guide, to the members
of approximately iooo adult discussion groups
throughout the country to serve as background for
meetings on the topics covered in the articles.
One of the primary reasons for the Council's suc-
cess has been the willingness, in fact eagerness, of its
Directors and staff continuously to re-examine its pro-
gram and methods in the light of changing conditions.
In line with this long term policy, the Board of Direc-
tors last December established a Committee on Policy
to undertake a thorough review and reassessment of
the Council's work. This committee consists of Messrs.
Henry M. Wriston, Chairman, Hamilton Fish Arm-
strong, George A. Brownell, William T. R. Fox, John
W. Gardner, Devereux C. Josephs, Walter H. Mal-
[51
American universities and colleges, stipulating that
the fellows should have already demonstrated capacity
for productive research in American foreign policy
and related subjeects. A sub-committee of the Coun-
cil's Committee on Studies, consisting of Messrs.
Grayson L. Kirk, Walter H. Mallory and the Director
of Studies, made the following awards:
To Dr. Gale W. McGee, Professor of History, Uni-
versity of Wyoming, for a study of Essential Require-
ments for a Settlement between the U.S.S.R. and the
United States.
To Dr. Henry L. Roberts, Assistant Professor of
History, Columbia University, for a study of The
Contest for Central and Eastern Europe, 1943-1945.
To Dr. Robert S. Schwantes, Chairman of the
Board of Tutors in History and Literature, Harvard
University, for a study of Japanese-American Cul-
tural Relations.
Dr. McGee will spend a year at the Council, begin-
ning in September 1952. The term of Dr. Roberts'
fellowship is for fifteen months, beginning in July
1952. Dr. Schwantes' fellowship will run for two
years, beginning on June 15, 1952.
These appointments will make possible a significant
expansion in the Council's research and publication
program. Each fellow during his term of appoint-
ment, in addition to his own research project, will be
expected to participate in other Council activities,
particularly in study and discussion groups dealing
with related subjects. Their association with members
of the Council's permanent research staff should prove
[71
lory, Stacy May, David Rockefeller, and George S.
Franklin, Jr., Secretary. It has already held seven
meetings on the following aspects of the Council's
work: Purposes, Research and Publication, Admin-
istrative Organization, Membership, Committees on
Foreign Relations, the Library, and Financial Affairs.
The interest of the Committee members is attested
by the fact that seven out of the ten members have
attended every meeting.
Until its meetings have been concluded in the fall,
it will not be possible to set forth the detailed findings
and recommendations of the Committee, but it is clear,
even at this stage that the Committee believes the
Council is working effectively and in general along
sound lines. It is equally clear, however, that the Com-
mittee will recommend certain changes to increase the
effectiveness of what we are doing and that some of
these changes will require a moderate expansion of
the Council's program, which will, in turn, require
expansion in its sources of support.
GEORGE S. FRANKLIN, JR.
Appointment of Carnegie Research Fellows
A promising new development in the Council's
research activities is the establishment of three new
research fellowships made possible by a grant from
the Carnegie Corporation of $75,000 for a three year
period. The terms of the grant give the Council wide
latitude in determining the tenure of the fellows and
the basis for their selection.
We invited applications from men now teaching in
[6]
mutually stimulating, with resultant improvement in
all phases of our work.
These groups are made up of particularly compe-
tent men who devote continued attention to some prob-
lem of foreign policy in a series of meetings. The
primary objective of the groups is not self-education
of the members but the close examination of certain
aspects of foreign policy, usually for the purpose of
producing a report of sufficient merit to be published
by the Council.
The work of study groups is a major part of the
Council's research activity. Most Council books stem
from this work. Each group has a membership rang-
ing from 1o to 20 and is usually built around a man
writing. The output can take various forms. A paid
research secretary may prepare working papers. Later,
if the group's discussions prove fruitful, he or some-
one else may prepare a manuscript for pub] ication.
Alternatively, the group may function largely as an
advisory board for a writer who consults with the
members in planning his book and turns to them as a
group, or individually, for criticism, especially with
respect to his conclusions or recommendations. Some-
times members of the Council's research staff may
submit papers, or members of the group may write
memoranda. As a rule, however, the product is a book
written by a single author. He takes into account the
group's discussion and criticism but without attempt-
ing to present a consensus. Sometimes several authors
contribute to a book, or write articles for FOREIGN
AFFAIRS. Only in very exceptional cases does any
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group, as a body, prepare a report for publication by
the Council.
The chairman of a group is chosen because of his
knowledge of and interest in the particular area or
subject. He aids in the selection of the members of
the group when it is being formed and helps to organ-
ize and guide the project. Attached to each group is
a reporter who takes notes and prepares digests of its
discussions. The following groups were in active oper-
tion in 1951-52
I. Anglo-American Relations
Chairman: Henry M. Wriston
Secretary: Henry L. Roberts
Rapporteur: William Henderson
An investigation and interpretation of the major
problems of Anglo-American relations was under-
taken jointly by the Council and the Royal Institute
of International Affairs in March T9K1 with the assist-
ance of the Rockefeller Foundation, Since that date
the Council's study group has held fourteen meetings.
At these meetings practically every area of agreement
and disagreement in the foreign policies of the two
countries has been explored. Each group has pre-
nared memoranda analyzing and criticising narticu-
n2red memoranda analyzing and criticizing particu-
lar aspects of the foreign policy of the other. By the
exchange of these naners, their re-examination and
revision, the two groups are attempting to clear away
misconcentions and false internretations so as to arrive
at an agreed statement of coincidence and divergence
of views.
[6]
What effects may we expect will accompany our
technical assistance and capital investment programs
in Southeast Asia, in Africa and in other underde-
veloped areas? How can our economic aid be man-
aged so as to promote the growth of free institutions
and check Communism? How much of the American
way of life should we attempt to export along with
our know-how and capital equipment?
Questions such as these are at the heart of an
inquiry which the Council organized with the assist-
ance of the Rockefeller Foundation in September
TorT. Dr. Eugene Staley of the Stanford Research
Institute was engaged to direct the study. To advise
and assist him a study group was organized with
Stacy May as chairman.
4. Problems of Strengthening Democratic
Leadership Abroad
Chairman: Harry H. Harper, Jr.
Study Director: Alan Hovey, Jr.
Rapporteur: Walter William White
During the fall and winter of 1951-52 the work of
this group entered a new phase with a series of meet-
ings with representatives of various non-official or-
ganizations having contacts abroad.
One meeting brought together members of Ameri-
can press organizations, J. Montgomery Curtis, Amer-
ican Press Institute; Roscoe Drummond, Economic
Cooperation Administration; Andrew Heiskell,
inter-American Press Association; Hal Lehrman,
author, foreign correspondent; Lester Markel, The
[11]
The analysis of policies is conducted on three levels:
First, what is the official policy in each country re-
garding, let us say, the Far East or the Middle East;
second, to what extent has government policy the sup-
port of domestic public opinion; third, how do the
members of the study group view the policy in ques-
tion.
Supplementing the exchange of memoranda, mem-
hers of each group (from the British group, Admiral
Sir Henry Moore, the chairman, and Arnold Toyn-
bce ; from the Council, President Wriston, Henry
Roberts, Edward M. Earle, Joseph Johnson and Wil-
liam T. R. Fox) have crossed the Atlantic to take
part in the meetings of the other.
A conference of members of both groups lasting
several days is scheduled in early September at Arden
House. Its agenda will consist of the draft of a single
report prepared by the British and. American rap-
porteurs.
2. Political Implications of Economic Development
Chairman : Stacy May
Study Director: Eugene Staley
Research Assistant: Peter John Davies
The Point Four program has political as well as
economic and humanitarian goals. It is too often as-
sumed that economic progress will be accompanied
automatically by the development of the snirit of de-
mocracy and free political institutions. Yet history
shows, notably in the cases of Toth century Germany
and Tanan, that, in the short run at least, industriali-
z.-stion may lead to quite an opposite result.
[TO]
New York Times; and Ralph Novak, American
Newspaper Guild.
At a meeting to consider American-sponsored agri-
cultural programs the participants were Harold B.
Allen. Near East Foundation: Andrew Cairns, In-
ternational Federation of Agricultural Producers;
Franklin Ho, Columbia University: Albert Mayer,
Mauer & Whittlesev - Raymond W. Miller, Harvard
Graduate School of Business: and Clayton E. Whip-
nle, Department of. State.
The topic considered at a third meeting of the group
was the role of American business-, discussion leaders
w?re Courtney Brown, Standard Oil Company of
New Jersey; William R. Herod, International Gen-
eral Electric Company: John E. Lockwood, Curtis,
Mallet-Prevost, Colt & Mosle; H. W. McCobb,
Standard-Vacuum Oil Company; and Medley G. B.
Whelpley, business consultant.
At the final meeting the group considered the role
of education in strengthening democratic leadership
abroad. The guests were President Frederick Burk-
hardt, Bennington College; Russell L. Durgin, Japan
International Christian University Foundation;
Alonzo G. Grace, New York University; I. L. Kan-
del, National Committee for a Free Europe; and Lev-
ering Tyson, National Committee for a Free Europe.
Mr. Edmond L. Taylor resigned as director of the
study in December IgK1 in order to accept an appoint-
ment in the Office of Psychological Warfare in Wash-
ington. His work at the Council was continued by
Mr. Allan Hovey, Jr.
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In. its meetings the group has given particular atten-
tion to the "compulsion" or pressures for economic
development which have arisen both in the under-
developed countries and in the United States, and to
posisble conflicts between our aims and theirs. This
subject was developed by members of the group in a
series of case studies. Hugh Keenleyside, head of the
UN technical assistance mission to Bolivia, told how
foreigners, as a condition of assistance, had been
placed in key positions in the civil service of that
country. Robert Garner, vice president of the Inter-
national Bank; reported on Turkey; Harvey S. Perl-
off of the University of Chicago, J. K. Galbraith of
Harvard and Frank Notestein of Princeton discussed
political aspects of economic development in Puerto
Rico; and Gordon Clapp, chairman of TVA and
former head of a UN mission to the Near East, gave
an exposition of the situation in Syria.
Dr. Staley meanwhile has conducted a series of
research studies, dealing intensively with these and
related subjects, to be brought together in a book for
publication by the Council. The book will contain
(1) an analysis of the pressures for economic develop-
ment and the aims of various interested parties; (2)
case studies of the interrelation of economic and politi-
cal factors in the industrial development of certain
countries in the 19th century; (3) an analysis of Soviet
theory and practice with respect to economic develop-
ment; and (4) consideration of key problems which
arise in the development of so-called backward areas,
e.g., population growth, land tenure, controls applied
to foreign investments.
East Germany.
5. A reassessment of American policy on German
unity.
Working papers contributed by Professor Schorske
and members of the group provided background in-
formation for the discussions. Also, the presence in
the group of a number of men who had served in
Germany with the U. S. Military Government and
in the Office of the American High Commissioner
helped greatly in keeping the discussion well informed
and down to earth.
DISCUSSION GROUPS
Discussion groups are organized not only to throw
light on important issues of foreign policy, but in
considerable part to inform the members who parti-
cipate and to stimulate their interest in foreign affairs
and in the work of the Council. The discussion groups
are larger than study groups and not all of their mem-
bers need be experts in the subject to be discussed. In
selecting members for these groups the Council's staff
relies to a considerable extent on replies to question-
naires which are periodically sent to all Council mem-
bers. Meetings of discussion groups regularly open
with a thirty-minute talk by an "outside" expert. This
procedure is not so frequent in study group meetings.
The following discussion groups were in operation
this past winter:
1. American Policy in the Middle East
Chairman: George A. Brownell
Research Secretary: J. C. Hurewitz
Rapporteur: Lenoir C. Wright
[15]
3. Questions of German Unity
Chairman: George N. Shuster
Research Secretary: Carl E. Schorske
Rapporteur: Frank Poe
The partition of Germany was one of the major
consequences of the second World War and of the
ensuing cold war between Russia and the West. No
one likes the result. Americans, Russian and, above
all, Germans profess themselves champions of re-
unification, but each has his own view of how re-unifi-
cation should be brought about and what kind of a
Germany should emerge. For several years Americans
and Russians, East Germans and West Germans have
negotiated about unification without reaching agree-
ment; meanwhile they have made it a major issue in
the propaganda war.
To undertake a careful, objective study of questions
of German unity, the Council's Committee on Studies
organized a study group with President George N.
Shuster of Hunter College as chairman and Professor
Carl E. Schorske of Wesleyan University as research
secretary. In a series of five meetings this group con-
sidered the following topics:
r. American and .Russian poicies on the partition
of Germany.
2. Political and social pressures in Western Ger-
many for, and against, re-unification.
3. Negotiations between the governments of East
and West Germany.
4. Economic aspects of the separation of West from
[14]
This group held five meetings on the following
topics :
Developments in the Oil Industry of the Middle East
Discussion leader: Walter J. Levy
The Political Situation in Egypt .
Discussion leader. G. Lewis Jones
The Conflict Between Israel and the Neighboring Arab States
Discussion leader ~ Harold B. Hoskins
American Policy with Respect to Turkey
Discussion leader: Lewis V. Thomas
The Future of American Economic Aid Programs in the
Middle East
Discussion leader a Ambassador Edwin A. Locke, Jr.
Background information for these meetings was
supplied in working papers prepared by Dr. J. C.
Hurewi.tz, lecturer on Middle Eastern affairs in the
School of International Affairs, Columbia University.
2. Financial Aspects of American Foreign Policy
Chairman: James M. Nicely
Since 1949 American grants and loans to foreign
countries have amounted to $zo billion. The appropri-
ations for foreign military and economic aid for 1952
are over $7 billion; proposed appropriations for 1953
are of the same order of magnitude. This outflow of
public funds abroad, unparalleled in peace time, is de-
signed to implement the goals of American foreign
policy, viz., to increase national security and to pro-
mole peace and freedom. How necessary is this aid?
Are the funds wisely apportioned as between military
and economic aid; as among various countries and re-
gions? What may we expect will be the future role of
U. S. grants and loans in the cold war?
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These and similar questions occupied the attention
of a group of which James M. Nicely was chairman.
At the first meeting Dr. Per Jacobsson, economist of
the Bank for International Settlements, led a discus-
sion of the monetary and credit conditions in Western
Europe, with particular attention to defense expendi-
tures. Dr. Winfield W. Riefler, Assistant to the Chair-
man of the Board of Governors, Federal Reserve
System, led the discussion at the second meeting, pre-
senting a fairly optimistic view of the chances of
carrying out the present arms program without higher
taxes or further inflation, considering increased pro-
ductive capacity, a high rate of savings, and a cautious
purchasing policy on the part of the armed services.
Members of the group, having observed the fall in
corporate profits after taxes and expressing doubts
about continued high savings, were inclined to be less
optimistic than the speaker.
The group concluded its series with a meeting at
which Richard M. Bissell, Jr., formerly Deputy Ad-
ministrator of the ECA and now consultant to the
Ford Foundation, discussed the future of foreign aid.
In a brilliant address Mr. Bissell argued that the
transfer of substantial quantities of American re-
sources to our European allies, by means of both
economic and military aid, was an economical way of
increasing our security.
3. American Interests and Policies
in the Mediterranean
Chairman: Charles E. Saltzman
Secretary: August Heckscher
Rapporteur: Wilbur Edel
[17]
U. S.-Soviet Relations
Chairman: Geroid T. Robinson
At the beginning of its series of meetings, this group
decided to focus on two questions: (i) How much
time have we bought by our containment policy and
by our increasing economic and military power, and
(2) if we, in fact, do have some time, how can we best
use it to strengthen non-communist states? The first
three meetings were devoted to the first question and
the last two to the second.
At the first meeting, William H. Baumer, formerly
U. S. Military Advisor at the Council of Foreign
Ministers meetings in London and Paris estimated
Soviet military strength and compared it with that
of the United States.
At the second meeting, Mr. Abram Bergson, Pro-
fessor of Economics at the Russian Institute of Colum-
bia University, compared the economic capacities and
potentialities of Russia and the United States.
The third meeting was devoted to an examination
of the degree of political stability and cohesiveness
within the Soviet Union by Professor Merle Fainsod
of the Harvard Russian Research Center.
As a result of these meetings, the group concluded
that the Soviet Union probably would not attack the
Western Allies in the near future and decided at its
two final meetings to examine how the United States
could best aid the constructive forces within the non-
communist camps in two or three countries in Western
Europe and Southeast Asia. As examples, it decided to
['9]
This group held six meetings on the following sub-
jects :
The United States and the Mediterranean
Discussion leader: Arnold Wolf ers
Political and Strategic Considerations Determining U. S.
Policy in the Mediterranean
Discussion leader: George C. McGhee
Strategic Problems in the Mediterranean
Discussion leader: Major General C. P. Cabell
U. S. Policy and Interests in North Africa
Discussion leaders : Gabriel van Laethem and Rom Landau
U. S. Policy and Interests in Yugoslavia
Discussion leaders: Philip E. Mosely and Jan V. Mladek
U. S. Policy and Interests in Turkey
Discussion leader: Cuneyd Dosdogru
4. Organized Labor in Western Europe
Co-chairman: Michael Ross
Co-chairman: Boris Shishkin
Rapporteur: John Furey
Two leaders in the American labor movement,
Michael Ross of the C. I. O. and Boris Shishkin of
the A. F. of L., assisted the Council in the organization
of this discussion group and served as its co-chairmen.
Meetings were held as follows :
Problems of Western European Labor
Discussion leader: J. H. Oldenbroek
European Labor and the Mutual Defense Program
Discussion leader: Samuel Berger
The Labor Situation in France Since the War
Discussion leader: Richard Eldridge
The Labor Situation in Germany Since the War
Discussion leader: Ludwig Rosenberg
[ 18]
consider France, Italy, and Indo-China. Professor
Mario Einaudi, chairman of the Department of Gov-
ernment at Cornell, led the discussion qn France and
Italy at the fourth meeting, while Mr. Paul Mus, who
spent many years in Indo-China as professor at the
Ecole Francaise d'Extreme Orient and then as politi-
cal advisor to General Leclerc, led it at the fifth.
Professor Geroid T. Robinson of Columbia Uni-
versity helped to shape the program of this group as
well as being chairman of the meetings.
Ad Hoc Meetings
American Political and Military Policy in Europe
On April 29, twenty Council members met to con-
sider a memorandum on "American Political and
Military Policy in Europe." Grayson L. Kirk pre-
sided, and Hanson W. Baldwin led the discussion.
The author of the memorandum, an American well
acquainted with the present condition of the European
defense effort, makes the following points:
i. Our present policy in Europe is-or was-based on the theory
that we could make ourselves strong enough so that the Russians
would be forced "to make the best peaceful bargain they could"
with us.
2. The unexpected strengthening of Russia's atomic situation, plus
the inability of Europe to revive her military strength as anticipated,
make it unlikely that we can "develop preponderant force, which
will defeat Russia without being employed." The difficulties of
organizing an effective European army and of integrating Germany
into Western defense were particularly noted.
3. "The Russian leadership does not desire open war . . . with
a powerful United States, and . . . will seek to avoid . . . war so
long as its regime does not otherwise appear doomed by a fruition
of hostile preparation."
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4. The Russian leadership has a genuine fear of U. S. intentions.
His conclusions from these observations were that:
The best way to avoid war is to abate Russia's fear by moderating
our own military preparations, particularly those with an offensive
rather than defensive connotation. "The NATO effort in Europe
might be about halved" and the goals of our rearmament effort at
home should be reduced by something like a quarter. We should
not "go so far or so fast as to suggest that Russia might engage in
open aggression with prospects of a victory which the Kremlin
regime could survive to exploit." Also, we must make it clear to
Russia that if she attacks any of our allies, she will be at war
with us also.
Although evidntly not satisfied with the way things
were going in Europe, the majority of the group
nevertheless rejected these measures as too drastic.
Some held that American policy was too much dom-
inated by military thinking, to the neglect of our dip-
lomatic and economic resources. Others held that our
present policy might lead to disaster because of the
inadequacy of our armed forces and those of our allies
for the task of containing Russia. The only area of
agreement seemed to be on the need for critical ex-
amination of our present defense policies and the ex-
ploration of possible alternatives.
Climate and Economic Development in the Tropics
On May 27 the Council brought together a small
group to explore the possibilities of a study of Climate
and Economic Development in the Tropics. Included
in the group were geographers, economists and spe-
cialists in public health and tropical diseases, as well
as businessmen who had lived and worked in the
tropics.
At the meeting Mr. Heman Greenwood, who until
[ 21
American Export Lines
American Metal Company
Carrier Corporation
Chase National Bank
Continental Can Company
Freeport Sulphur Company
General Electric Company
General Motors Overseas
I.B.M. World Trade Corporation
Irving Trust Company
J. P. Morgan & Company
The Macmillan Company
Marine Midland Trust Company
National City Bank
Pan American Airways
Price Waterhouse & Company
Standard Oil Company of New Jersey
Standard Vacuum Oil Company
Sullivan and Cromwell
Trans World Airlines
United States Steel Corporation
Six meetings were held on successive Wednesday
afternoons with the following speakers:
Conflict of Russian and American Purposes and
Policies-Philip E. Mosely
Economic Defense of Western Europe-William
Diebold, Jr.
Point IV and U. S. Investment Abroad-Eugene
Staley
Problems of American Policy in the Near and
Middle East-Edwin M. Wright
Bases for a Settlement .in the Far East-Amos
Landman
Anglo-American Relations-Henry L. Roberts
[23]
his recent retirement was vice president of the Carrier
Corporation, first outlined the problem as he had ob-
served it. During a residence of fifteen years in Brazil
and extensive travels in the tropics he had become
greatly interested in finding out why underdeveloped
countries are underdeveloped. Is climate responsible,
or are there other more convincing explanations? He
stressed the need for more precise knowledge of the
effect of excessive heat and humidity on human activi-
ties.
Dr. Douglas H. K. Lee of the Johns Hopkins Uni-
versity gave a summary account of the scattered
knowledge accumulated by physiologists and psychol-
ogists on the effects of climate. His conclusion was
that social scientists, industrialists and engineers had
as much, perhaps more, to contribute than physiol-
ogists to the solution of the problem. The attack should
be synoptic. This conclusion seemed to be shared by
all present. It was also generally agreed that a study of
this subject might usefully be undertaken in two
stages : (i) an inventory of what is actually known
about the effects of tropical climate on men, animals
and plants, and (2) the integration of this knowledge
with studies of political, cultural and economic ob-
stacles to economic development.
In the spring of 19.52 the Council reinstituted its
Seminar for Junior. Executives which, established in
1939, had been discontinued in 1941. The following
business firms responded to the Council's invitation
to nominate a participant:
[22]
The seminar provides opportunity for young men
of promise, who may in years to come hold positions
of prime responsibility, to come together with mem-
bers of the Council's research staff for informal dis-
cussion of questions of American foreign policy. The
Council organizes the program and provides discus-
sion leaders, each of whom is a recognized expert in
his field. The Director of Studies acted as chairman.
TRADE AND PAYMENTS IN WESTERN EUROPE, 1947-
1952, by William Diebold., Jr.
Dr. John H. Williams, in his foreword to this book,
says : "I am confident that it will occupy a high place
in the literature. I can think of few books in this field
with which I would compare it, for the breadth as
well as the intensiveness of the treatment, and for its
objectivity and well-balanced judgment."
The author, economist on the Council's research
staff, has provided both a descriptive account and a
critical analysis of what Western European countries
have accomplished since the beginning of the Mar-
shall Plan in facilitating trade and payments among
themselves. The account is based largely on public
sources, supplemented by information gained in Coun-
cil study groups, and by conversations in Europe with
nersons actually engaged in operating the mechanisms
of economic cooperation. The book, however, is more
than current, or nearly current history, for the author
has interwoven analysis and interpretation with his
narrative, showing why Britain, France, Germany and
other countries took positions sometimes favoring and
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sometimes opposed to EPU, trade liberalization and
other cooperative measures.
After an introductory chapter on the nature of co-
operation and its role in the Marshall Plan, Part I
deals with payments. Part II covers the OEEC pro-
gram for removal of import quotas, the re-emergence
of the tariff problem, proposals for the integration of
the European market for specified commodities, car-
tels, and dual pricing. Benelux and other efforts to
form customs unions are discussed in Part III. Con-
cluding chapters, in Part IV, are concerned with (1)
the relation between the cooperative measures and
Western Europe's position in the world economy, and
(2) the impact of rearmament programs on the liber-
alization of inter-European trade and payments. An
extensive critical bibliography adds greatly to the use-
fulness of the book for research and teaching.
In his conclusions Mr. Diebold is conservative with-
out being pessimistic. EPU, he finds, although ini-
tially dependent on dollar aid, may eventually become
a clearing union that can stand on its own feet. That
will depend on the member countries not letting their
intra-European accounts get too far out of balance.
Rearmament, however, threatens to be a disturbing
factor.
Notwithstanding some progress in the removal of
import quotas, tariffs remain a real obstacle to in-
creased intra-European trade; as yet no effective
means of reducing them on a regional. basis has been
found. Regional cooperation, even if it could be
achieved, might disappoint some of its American ad-
vocates. For unless the countries of Western Europe
[25]
expert research, including full use of the files of the
Stae Department and many unpublished diaries and
memoranda of leading protagonists, it is highly suc-
cessful in relating American policy to the world situa-
tion.
THE UNITED STATES IN WORLD AFFAIRS, 1951
by Richard P. Stebbins and the Research Staff
The latest volume in the Council's annual survey
of American world relations is scheduled for publi-
cation in September 1952, with an introduction by
Henry M. Wriston. Like previous volumes, it presents.
a balanced interpretation of developments through-
out the world and is designed to provide orientation
for the student and general reader as well as the precise
factual data needed by the foreign affairs specialist.
In the increasingly strenuous discussion of current
foreign policy issues in the United States, the objec-
tivity and fairness of these volumes has been widely
remarked upon by reviewers both at home and abroad.
A typical comment is that of the Italian weekly Rela-
zioni Internazionali on the volumes for 1949 and
1950:
Among the numerous publications of the Council on Foreign Rela-
tions, the series entitled The United States in World fl ffairs merits
particular appreciation. Even for the best qualified author it was
certainly not easy to review so many events in sequence, illuminate
their immediate or remote causes, and judge their implications. But
the author, aided by the Research Staff of the Council on Foreign
Relations, has met the test-thanks especially to the wise method he
has adopted by which he refrains from treating all the facts with
equal attention but has emphasized the more important ones with
keen historical insight and absolute objectivity.
[ 27 ]
show more willingness than they have yet displayed to
accept changes in their national economies and in-
creased dependence on other countries, their closer
cooperation might result only in hindering them from
getting maximum advantage from world trade.
THE CHALLENGE TO ISOLATION, 1937-1940
by William L. Langer and S. Everett Gleason
In 1946 the Council laid plans for a scholarly his-
tory of the participation of the United States in World
War II. A substantial grant was obtained from the
Rockefeller Foundation, later supplemented by the
Sloan Foundation, and the project was put into the
hands of Professor William L. Langer who obtained
a four-year leave of absence from Harvard for this
purpose. Professor S. Everett Gleason was associated
with the project from the first and became joint author.
Originally it was planned to complete the history of
American policy from 1939 to 1945 in three or four
volumes. But because of the unanticipated magnitude
of the materials, both published and unpublished,
which became available, the authors found this
achievement impossible. To date they have completed
two volumes; the ;first, published in January 1952,
covers the period from October 1937 to September
1940. A second volume will carry the narrative to
Pearl Harbor.
The Challenge to Isolation is the most complete and
authoritative account yet published of American di-
plomacy from President Roosevelt's "quarantine"
speech to the destroyer deal which, in effect, ended
American neutrality. The product of extensive and
[ 26 ]
POLITICAL HANDBOOK OF TIIE WORLD, 1952
edited by Walter H. Mallory
In the silver anniversary edition of this authorita-
tive and. compact manual, three countries appear for
the first time, Cambodia, Laos and Libya. In format
and arrangement the volume follows the pattern
which has proved so convenient for. reference pur-
poses. In addition to the information on political par-
ties, leaders and platforms and the composition of gov-
ernments and parliaments, the book contains short
summaries of recent political events in most of the
states catalogued.
Manuscripts in Preparation
The tense international situation, bringing constant
pressure of demands for Dr. Mosely's time, from both
public and private sources, has delayed the completion
of his book on The Power of the Soviet Union. Mean-
while important new material has become available
which will add greatly to the value of the publication,
e.g., on the Soviet economy in the Arctic, on con-
flicts among Soviet governmental agencies and be-
tween military government in East Germany and
authorities in Moscow, and on the economic exploita-
tion of satellites.
Dr. Leland M. Goodrich has completed his manu-
script on Korea: A Study of American Policy in the
United Nations. Stimulus for this project was pro-
vided by a Council study group on which the author
served as research secretary. Harpers has scheduled
the book for winter publication.
Middle East Dilemmas is the title of a book which
[ 28 ]
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Dr. J. C. Hurewitz is writing. It is based on working
papers which he prepared for a Council study group
on American Policy in the Middle East.
Plans for 7952-53
The Council's Committee on Studies supervises the
Council's program of research and publication. It
decides, upon recommendation of the research staff,
what study and discussion groups should be formed
and approves the selection of chairmen.
In the coming year the studies of Political Implica-
tions of Economic Development and of Anglo-Ameri-
can Relations will be continued. Japan's Position in
World Trade will be dealt with by a group under the
leadership of August Maffry, Vice President of the
Irving Trust Company. Dr. Jerome Cohen, of the
Department of Economics at the College of the City
of New York, will be associated with this group as
research secretary. In addition, study groups will be
organized to advise the three research fellows ap-
pointed under the terms of a grant from the Carnegie
Corporation (See p. e). The Committee on Studies
has also approved a study of The United States and
World Air Transport to be undertaken by Dr. Oliver
J. Lissitzyn of Columbia University.
Discussion groups will be organized on Political
Unrest in Latin America (Hon. Spruille Braden,
chairman) and India's Position in International Af-
fairs (Mr. Phillips Talbot, chairman). Other groups
are under consideration.
PERCY W. BIDWELI,
[ 29 7
tute of Columbia University in his special field of
interest, Mr. Landman pursued allied subjects having
to do with the history and politics of the Far East. He
also took courses in the Japanese language.
At the end of the fellowship year, Mr. Landman
received his Master's degree in Public Law and Gov-
ernment. His thesis was entitled: "Some Implications
of Trade (or Lack of Trade) between Japan and
Communist China."
Before coming to the Council, Mr. Lehrman's two
main areas, in which he had had extensive experience
as a free-lance correspondent, were Eastern Europe
and Palestine. Though he had written about these
areas for some years, he reported that he felt handi-
capped by his lack of linguistic, cultural and historical
background. The repairing of this deficiency was the
object of Mr. Lehrman's studies as a Council Fellow.
He applied himself to acquiring greater familiarity
with Slavic and Semitic cultures, and he pursued an
intensive reading program, with the assistance of ex-
perts in his special fields. He also undertook to acquire
a reading and speaking knowledge of Russian and
Hebrew. During the year, Mr. Lehrman began a
dissertation on the Middle East, in partial fulfillment
of the requirements for the degree of Ph.D. at Cornell
University.
Mr. Palmer came to the Council from his post as
Rome correspondent of the Associated Press. Prior to
his assignment to Italy, he had served as a correspon-
dent in the Middle East, and it was the latter area upon
which he concentrated his efforts during the period
of his fellowship. By the end of the year, Mr. Palmer
0317
FELLOWSHIPS FOR FOREIGN CORRESPONDENTS
During 1951-52, a grant of the Carnegie Corpora-
tion made possible the continuation, for the third suc-
cessive year, of the Council's fellowship program for
American foreign correspondents. Under this pro-
gram, men of promise, who have been preoccupied
with meeting journalistic deadlines, are given an op-
portunity to broaden their perspective by means of
intensive reading, study and informal discussion.
There are no set study requirements other than that
holders of the fellowships shall utilize as they see fit
the facilities of the Council and of nearby universities.
The purpose of the program is to help correspondents
to increase their competence to report and interpret
events abroad.
Recipients of resident fellowships for the past year
were Amos Landman, Hal Lehrman and George
Palmer. They were chosen from a number of appli-
cants by an advisory committee of Council members,
which consisted of Carroll Binder, Minneapolis
Morning Tribune; Gardner Cowles, Look; John K.
Jessup, Fortune; and Edward R. Murrow, Columbia
Broadcasting System. Joseph Barber, of the Council
staff, was again designated to supervise their work
and to serve as Secretary to the advisory committee.
Mr. Landman, who was formerly correspondent in
China for the National Broadcasting Company, used
his fellowship to prepare himself for work as a cor-
respondent in Japan. To this end, he concentrated on
study of the Japanese economy and of Japan's likely
future economic relations with the rest of Asia. Besides
enrolling for courses offered by the East Asian Insti-
[.307
completed the requirements for his Master's degree
in Public Law and Government, at Columbia Uni-
versity. The subject of his thesis was: "The Arab
Attitude toward the Palestine Issue, 1945-1950." Uni-
versity courses taken by him included: The Making
of Modern Iran, The Political, Economic and Social
Institutions of Pakistan, Sociology of Israel, and The
Diplomatic History of the Near East.
Besides their university work, the Fellows partici-
pated in various Council activities and made use of
the Council Library. Messrs. Lehrman and Palmer
were members of the Council's discussion groups on
the 'Mediterranean and the Middle East. Mr. Land-
man led the discussion at a meeting of the Council's
Seminar for Junior Executives, when the Far East
was the subject of study. The three Fellows were, of
course, regular attendants at late afternoon and din-
ner meetings of the Council.
In March, the Council brought together some forty
editors and publishers to discuss at a dinner meeting
the relation of American foreign correspondents to
the shaping of American foreign policy. The Chair-
man of the meeting was Mr. C. D. Jackson, of For-
tune, and the leader of the discussion was Mr. Joseph
Harrison, Foreign Editor of The Christian Science
Monitor. The resident Fellows also had places in the
oroo,ram and related their own experiences to issues
under consideration, which included: the dimensions
of the foreign story, problems of censorship of news
at the source, and the number of correspondents and
their capacities to provide adequate coverage of com-
plex problems.
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The success of a fellowship program of this kind
is dependent in large degree not only upon securing
men of high calibre but also upon assisting them to
make such use of their grants as to justify the inter-
ruption in their professional careers which is occa-
sioned by the acceptance of fellowships. It is a source
of satisfaction that this past year, as in the previous
years, the holders of the fellowships embarked upon
and completed work programs of ambitious propor-
tions, and all have made abundantly clear their grati-
fication with the results of their labors-a not incon-
siderable conclusion in view of the unusually high
expectations of useful study which were entertained
by them when they began their work under the fel-
lowship grants.
The Carnegie Cornoration made a grant of $ r 5,ooo
for the support of the fellowship program for for-
eign correspondents in 19Kr-K2, and has appropriated
$2 5,ooo for the support of the program during the
two-year period, 1952-54.
JOSEPH BARBER
MEETINGS
The following full membership meetings were held
during the year:
Speaker: Hon. David K. E. Bruce
Subject: The Present Situation in France
Presiding: Hamilton Fish Armstrong
Speaker: Gen. Jean de Lattre de Tassigny
Subject: Indo-China
Presiding: Allen W. Dulles
Speaker: Hon. Philip C. Jessup
Subject: The Atlantic Community After Ottawa
Presiding: Allen W. Dulles
[33]
Speaker: Robert L. Garner
Subject: The World Bank and the Iranian Oil Problem
Presiding: David Rockefeller
Speaker : Lt. Gen. Maxwell D. Taylor
Subject: United States Security Obligations and Capabilities
Presiding: Hon. Charles E. Saltzman
Speaker: H. E. Dirk U. Stikker
Subject: The Partnership Between the United States and
Europe
Presiding: Hon. James Grafton Rogers
Speaker: Pierre Wigny
Subject: The Development of the Belgian Congo
Presiding: Stacy May
The following dinner meetings were held for off-
the-record discussion of the subjects listed :
Speaker : Rt. Hon. Anthony Eden
Subject: Anglo-American Relations
Presiding: Hon. John W. Davis
Speaker: Andre Siegfried
Subject: France's Post-Election Political Situation
Presiding : Grayson L. Kirk
Speaker: Eugen Kogon
Subject: European Unity and German Unification
Presiding: Col. Lawrence Wilkinson
Speaker: Minoo R. Masani
Subject: Problems of Indian-U. S. Relations
Presiding: Hon. James Grafton Rogers
Speaker : Paul Mus
Subject: Indo-China and the Problems of Southeast Asia
Presiding: David Rockefeller
Speaker: Samuel Pope Brewer
Subject: Spain's Relations with the Western Democracies
Presiding: Hanson W. Baldwin
Speaker : Hon. Walter H. Judd
Subject: Problems and Prospects of European Unity
Presiding: Frank Altschul
[35]
Speaker: Hon. Henry F. Grady
Subject: The Iranian Crisis
Presiding: Devereux C. Josephs
Speaker: Hon. John Foster Dulles
Subject: The Implications of the Japanese Peace Treaty
Presiding : R. C. Leflingwell
Speaker : Geoffrey Crowther
Subject: After the British Election
Presiding: Gardner Cowles
Speaker: Hon. Thomas E. Dewey
Subject: U. S. Farr Eastern Policy
Presiding: R. C. Leffingwell
Speaker: Charles E. Bohlen
Subject: The Soviet Union and the World Situation
Presiding: Hamilton Fish Armstrong
Speaker: H. E. William Drees
Subject: The Netherlands' Foreign Policy
Presiding: R. C. Leffingwell
Speaker: William R. Herod
Subject: Problems of European Rearmament
Presiding: Langbourne M. Williams, Jr.
Speaker: Gordon Dean
Subject: International Aspects of Atomic Energy
Presiding: David E. Lilienthal
Speaker: H. K. Selim Bey
Subject: Egypt and Middle East Defense (first of a series
of two meetings)
Presiding: George A. Brownell
Speaker: Brig. Gen. Cyril D. Quilliam
Subject: Egypt and Middle East Defense (second meeting
of series)
Presiding: George A. Brownell
Speaker: Hon. Walter Hallstein
Subject: Principles of German Foreign Policy
Presiding: Hon. Myron C. Taylor
[341
Speaker: George N. Shuster
Subject: Can We Trust the Germans?
Presiding: Arthur H. Dean
Speaker: H. E. Jaime Torres Bodet
Subject: UNESCO and Fundamental Education.
Presiding: Grayson L. Kirk
Speaker: Paul Bareau
Subject: The New Economic Policy in Britain
Presiding: Thomas H. McKittrick
Speaker: Arthur L. Goodhart
Subject: Some Oxford Interpretations of American Foreign
Policy
Presiding: James T. Shotwell
Speaker: Joseph Harrison
Subject: The Role of American Foreign Correspondents in
Shaping U. S. Foreign Policy
Presiding: C. D. Jackson
Speaker: Andre Geraud ("Pertinax")
Subject: Interaction of Foreign and Domestic Policy in
France
Presiding: Lindsay Rogers
Speaker: Robert Montagne
Subject: The Future of the Arab World
Presiding: Herbert Feis
Speaker: Chester Wilmot
Subject: The Impact of American Policy in Europe
Presiding: George N. Shuster
Speaker: Hon. Charles M. Spofford
Subject: NATO and United States Responsibilities
Presiding: Gen. Lucius D. Clay
When the small meeting room at the Council on
Foreign Relations is crowded to capacity, place can
be made for twenty-six persons around the cloth-
covered table. To illustrate the dimensions of one
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aspect of the Committee program this past year, had
the meetings of the Committees been held in this room
rather than in home communities, the room would
have been crowded to capacity five nights a week from
late September to early June.
During the year under review, the twenty-five Com-
mittees held 191 meetings. This was twenty-one more
than were held the preceding year and represents a
new peak in Committee activity. No Committee held
less than six meetings and two held ten meetings. The
Council helped to arrange 132 of these meetings; the
Committees arranged fifty-nine without Council assis-
tance. For the groups as a whole, average attendance
at each meeting was twenty-six persons. The total
Committee membership at the end of the year was
1,419, compared with 1,341 the preceding year.
Ninety men of special competence in the field
of international affairs led Committee discussions.
Among them were the following members of the
Council: Eugene R. Black, Gardner Cowles, William
R. Herod, Joseph E. Johnson, Isador Lubin, James
Grafton Rogers, Phillips Talbot and Albert C. F.
Westphal. Other Americans who met with the groups
included: Charles E. Bohlen, Frederick Burkhardt,
John Sherman Cooper, Joseph M. Dodge, Marriner
S. Eccles, Mark Ethridge, Harold H. Fisher, Henry
F. Grady, Eugene Holman and Abe A. Ribicoff.
Among the many foreign discussion leaders were:
Paul Bareau, Assistant Editor, The Economist, Lon-
don ; Sir Oliver Franks, British Ambassador at Wash-
ington; Khalifa Abdul Hakim, Director, Institute of
Islamic Culture, Lahore; Mosfeq Hamadani, Editor
[371
tial way, without excessive cost to the American
taxpayer.
Reports of Committee discussions, forwarded regu-
larly to the Council, disclosed very great preoccupa-
tion with the size and effectiveness of the American
aid program. So diverse were the apparent views of
members, as reflected in the reports, and so important
was the subject that the Council undertook to find out
exactly where Committee members stood on issues
related to the aid program. A questionnaire addressed
to all Committee members was accordingly drawn up
and distributed. Nearly Boo members set forth their
views, often in great detail, in response to the twelve
questions asked. Their replies were analyzed by the
Council which reported its findings in the pamphlet,
Foreign Aid and the National Interest, published in
March, 1952. This was the sixth in a series of annual
pamphlets describing Committee views, and it elicited
the largest numerical participation of any of the in-
quiries. As usual, the Council's findings were widely
publicized in this country and abroad, and the nature
of public and private comment about the inquiry testi-
fied to its usefulness.
For the theme of the fourteenth annual conference
of representatives of the Committees, the Council
selected United States Intervention in the Internal
Affairs of Free Nations. This had been a subject of
recurring interest and concern at Committee meetings
during the year, and made possible further explora-
tion of issues of American leadership, which had been
discussed at the previous conference. On June 6, some
thirty-five Committee members and guests, represent-
1391
and Publisher, Kavian, Teheran; Alexander Loudon,
Secretary General, Permanent Court of Arbitration,
the Hague; Minoo R. Masani, Director, Industrial
Relations, Tata Industries, Ltd., India; Honorable
Leslie Knox Monro, New Zealand Ambassador at
Washington; J. W. Patten, Assistant Editor, The Star,
Johannesburg; Hussein Bey Kamel Selim, formerly
Dean Faculty of Commerce, Fuad I University,
Cairo; Jean Jacques Servan-Schreiber, foreign affairs
analyst, Paris Presses R.U. Singh, member, Indian
Parliament; Dolf Sternberger, Lecturer, University
of Heidelberg and Editor, Die Wandlung; Lord
Wilmot, formerly Labor member of Parliament and
British Minister of Supply.
Committee discussions dealt with a wide variety of
problems affecting American political, economic and
strategic interests. As was the case the previous year,
members were bent on acquiring a better understand-
ing of the measures necessary to promote the security
of the non-Soviet world. In this connection, many dis-
cussions centered upon the obligations of the United
States as leader of the free world and upon American
capacities to insure security. Special attention was
paid to the Middle East where, it was generally felt,
the United States was bound to become increasingly
involved. Members took it upon themselves to become
informed about the efforts of the United States to assist
backward areas. The prospect for greater participa-
tion by the United States in the development of under-
developed countries was discussed at length, a great
many members concluding that here was a relatively
unexplored means of promoting stability in a substan-
[387
ing' cities throughout the country, gathered at the
Harold Pratt House to consider questions such as
these: What justifies U. S. intervention? Are current
attempts to influence the internal affairs of the free
nations paying off, in terms of the advancement of
U. S. interests? Are there practical alternatives to
intervention by the United States, which would in-
crease the effective use of American aid? Have we, in
effect, scrapped non-intervention as a principle of
American foreign policy?
In order to provide expert testimony at the daytime
sessions on June 6, certain Council members were
asked to participate. They included, as Chairmen,
Percy W. Bidwell and Joseph E. Johnson, and as dis-
cussion leaders, Honorable Spruille Braden, William
Diebold, Jr., and Heman Greenwood. Other guests
who assisted with the discussion were Maurice Ferro,
Washington correspondent, Le Monde, Paris; Jay
Lovestone, Executive Secretary, Free Trade Union
Committee, American Federation of Labor; Professor
Dexter Perkins, Chairman, Department of History,
University of Rochester; and Judd Polk, Chief, Bri-
tish Commonwealth and Middle East Division, Trea-
sury Department.
At the dinner session of the conference, the Com-
mittee representatives were joined by some forty
Council members for joint discsusion of NATO and
United States Responsibilities. The guest of the eve-
ning was Honorable Charles M. Spofford, who until'
recently had been United States Representative and
Chairman, North Atlantic Council of Deputies. Gen-
eral Lucius D. Clay presided.
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The chairmanship of the fourth and concluding
session of the conference, on June 7, was shared by
Joseph Barber, the Council's administrator of the
Committee project, and H. F. Kretchman, Editor,
Salt Lake Telegram and Secretary of the Salt Lake
Committee. The year's work was reviewed, plans
were made for 1952-53, and the conclusions. of the
group with respect to the conference theme were sum-
marized and placed on record.
Since; establishment of the first Committees in 1938-
39, the Council has taken special pains each year to
keep itself informed of the progress of the groups and
of the exact nature of purely local problems, which
vary from one community to another. To this end, the
administrator of the project spent five weeks with
Committee members in 1951-52, visiting twenty of
the twenty-five cities in which the groups are located.
The fostering in this way of a closer relationship
between the Council and the Committees has been
mutually beneficial, contributing to improved guid-
ance by the Council and to gratifying expansion of
Committee activity.
The Carnegie Corporation made a grant of $30,000
for the support of the Committees in 1951-52, and
has appropriated $9o,ooo for their support during
the three-year period, 1952-55. The grant of $30,000
for each of the three years ahead continues Carnegie
support at the level obtaining since 1948.
The Committees, since their founding in 1938, have
raised a continually increasing proportion of the
expenses of the project and in recent years, in fact,
the funds they have assembled for local expenses have
[41]
the gap between the learned journals and specialists
in foreign studies on the one hand and the general
public and its policy makers on the other. The govern-
ing policy was indicated in the following editorial
note which appeared in the first issue, and has been
reprinted in all subsequent issues:
The articles in FOREIGN AFFAIRS do not represent any consensus
of beliefs. We do not expect that readers of the review will sym-
pathize with all the sentiments they find there, for some of our
writers will flatly disagree with others; but we hold that while
keeping clear of mere vagaries FOREIGN AFFAIRS can do more to
guide American public opinion by a broad hospitality to divergent
ideas than it can by identifying itself with one school. It does not
accept responsibility for the views expressed in any articles, signed
or unsigned, which appear in its pages. What it does accept is the
responsibility for giving them a chance to appear there.
The members of the Editorial Advisory Board
assist the Editor and the Managing Editor with advice
both on general policy and on special problems. In
addition, they insure that the editors will enjoy com-
plete freedom in the exercise of their editorial func-
tions. Needless to say, they are not individually respon-
sible in any sense for particular articles appearing in
the review. The members of the Board at present are:
George H. Blakeslee, John W. Davis, Allen W.
Dulles, Dwight D. Eisenhower, George F. Kennan,
William L. Langer, Charles H. Mcllwain, Charles
Seymour, Henry M. Wriston. Mr. Davis and Pro-
fessor Blakeslee have been members since the start.
In the year just ended, FOREIGN AFFAIRS has printed
the usual quota of articles covering a broad variety of
topics in its special field. A number of them seem to
have attracted wide notice, judging by press comment,
[431
slightly exceeded the Carnegie grants. In response
to a suggestion by the Council they have now agreed
somewhat further to increase their contributions
toward the cost of the Committee program for 1952-
53. Committee activities, however, are novel of such
dimension that additional funds must be forthcoming,
if this important phase of the Council's work is to be
maintained at the present level. The organization of
new Committees and expansion otherwise of the scope
of the program-an objective successfully pursued
each year since the establishment of the first Com-
mittees in 1938-does not seem feasible at present,
without the acquisition of substantial additional funds.
JOSEPH BARBER
FOREIGN AFFAIRS, the Council's first important ven-
ture, reached its 3oth birthday with the issue for Octo-
ber 1952. In those thirty years it has published 120
issues, each containing something like a dozen articles,
or a total of about 1,5oo articles in all-this in addition
to the regular departments listing new books and offi-
cial documents at present being prepared by Professor
Henry L. Roberts, of Columbia University, and Miss
Ruth Savord, Librarian of the Council. Mr. Byron
Dexter continues as Managing Editor and Miss Mary
H. Stevens as Editorial Assistant. From the start, the
business affairs of FOREIGN AFFAIRS have been in the
hands of Mr. Frank D. Caruthers, Jr. He is now
assisted by Mr. Patrick Tanner, 3rd.
The editors of FOREIGN AFFAIRS have always con-
sidered it a principal purpose of the review to bridge
[42]
request for reprints and requests from newspapers and
other periodicals, here and abroad, for permission to
quote from or reprint the text. As usual, many of the
articles were used by government agencies and formed
the basis of broadcasts by "The Voice of America."
FOREIGN AFFAIRS is maintaining about the same cir-
culation that it has had in recent years. The following
table is based on the average paid circulation for six
months ending July 30 of each year.
1949 - 19497
1950- 19,110
1951 - 19,021
1952 - 19,058
It will be noted that although the subscription price
was raised from $5.oo to $6.oo a year, beginning with
the issue of April 1950, this fact does not seem to have
affected the willingness or ability of people to sub-
scribe (although, of course, there is no way of telling
whether circulation might not have actually increased
if there had been no increase in price).
HAMILTON FISH ARMSTRONG
The Board of Directors during the past year con-
tinued its policy of limiting the number of resident
members to 6oo. In view of the resulting tightness in
the membership situation and the necessity of assuring
that the Council accept only the most desirable candi-
dates, the Board voted to enlarge the Membership
Committee, so that it could give an even more careful
screening to candidates. The Committee now con-
sists of Messrs. David Rockefeller, Chairman, Frank
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Altschul, August Heckscher, Joseph E. Johnson,
Devereux C. Josephs, Warren T. Lindquist, Walter
H. Mallory, Oscar M. Ruebhausen and George S.
Franklin, Jr., Secretary. At the same time the Board
relieved the Membership Committee of the task of
nominating officers and members of the Board and
entrusted it to a new Nominating Committee, com-
posed of Messrs. John W. Davis, Chairman, Hamil-
ton Fish Armstrong, and Whitney H. Shepardson.
The new Membership Committee has held two
meetings to re-examine criteria for membership in
the Council and to decide what types of members the
Council particularly needs at the present time.
The membership situation compared with last year
is as follows :
Membership Classification
Aug. 1
1951
Aug. 1
1952
Gain or
Loss
Resident
420
420
-
Resident Academic
164
167
+3
Junior
13
9
--4
Non-Resident
16o
16o
-
Non-Resident Academic
170
177
+7
927
933
+6
During the past year, the Library and the Research
Staff reviewed carefully the present function of the
Library and investigated means of adding to its use-
fulness. It was agreed to continue the policy of not
attempting complete coverage of all phases of inter-
national relations, but, as in the past, to limit the
Library in size as much as possible consistent with
14S]
tions, the National Committee for a Free Europe, the
Mid-European Studies Center, and the New York
Office of the Public Administration Clearing House.
All of these organizations have commented on the fact
that the Council Library contains materials which are
frequently inaccessible or unavailable elsewhere.
The Library has continued its practice of sending
duplicates from the Council's collection to other or-
ganizations which can make use of them. For example,
576 volumes, 120 pamphlets, and T,500 periodicals
were sent to the New York Public Library for distri-
bution to devastated libraries abroad. The Library
has also continued its exchange program; Council
publications have been sent to 33 different foreign
institutes of international affairs in exchange for
publications issued by those organizations. Other
cooperative activities in which the Library partici-
pated during the year include completion of a list
of selected American books on international affairs
for Munich's newly organized Hochschule f fir Poli-
tische Wissenschaf ten (at the request of the Rocke-
feller Foundation), and the securing of numerous
articles and photostats which were urgently needed
by the Royal Institute of International Affairs. The
Council, for its part, is deeply appreciative of the
many gifts provided by Congressional Committee
Chairmen, by other United. States and foreign govern-
ment representatives, by public and private organi-
zations, and particularly by members of the Council
and other individuals who have kept our needs in
mind and generously helped to meet them.
RUTH SAVORD
1471
the basic objective of good service to the Council's
research staff, members and other users.
It was recognized that the carefully indexed clip-
ping files of the Council, which include material from
both newspapers and periodicals and are constantly
consulted by the research staff and others using the
Library, constitute an invaluable research tool, undu-
plicated in this country in the field of international
relations. It was agreed that, when possible, these files
should be re-indexed, weeded of all material no longer
of interest, and micro-filmed for future preservation.
Added
The Library now includes: Total 1951-52
Books, Pamphlets, Government Documents
28,640
1,530
D
N
i
8oov
ocuments
ons
League of
at
UN Documents
.
40,533
7,805
UNESCO Documents
2,710
491
I.R.O. Documents
870
102
Permanent Court and International Court
219
23
Far Eastern Commission
736
66
Clippings
27,000
This year a particular effort has been made to
increase our materials on Germany, and we have
added considerably to our resources in this field both
in periodical, documentary, and secondary material.
In addition to the day-to-day service it provides for
the Council's Research Staff, the Library continues
to serve Council members, the UN Library, UN Dele-
gations, the Department of State, graduate students
sent by our members, and many other organizations,
libraries and individuals. The heaviest and most con-
stant demands have been made by the UN Delega-
46 ]
General Account and Research Department
'['he Council has had an unsatisfactory year finan-
cially. The combined deficit in ,th general and
research accounts amount to $ 4, all but $2,474
of it in the research account. For this, the only sub-
stantial deficit the Council has ever had, there were
two principal reasons. First, the Board of Directors
at its meeting of December 17, 1951, voted a 1o per
cent cost of living salary increase for members of
the staff who had been on the pay-roll for six months.
Second, the Rockefeller Foundation, in line with its
policy of discontinuing support for the general bud-
gets of organizations which it has helped for some
years, did not renew the grant of $45,000 which it
made the previous year for the Council's general
research program.
However, as in the past the foundation did con-
tinue to support a number of special Council proj-
ects. It appropriated $i8,5oo for the Council's study
of the Political Implications of Economic Develop-
ment, $3,500 for a study of the Problems of German
Unity, and $4,000 for a critical bibliography of the
works noted in FOREIGN AFFAIRS during the ten years
1942 to 1952.
The general research program of the Council was
supported by contributors of $35,000 from the Car-
negie Corporation, $32,787 from members and cor-
porations, $7,660 income from investments and by
a-special gift of $17,030.86 in memory of Mr. Edwin
F. Gay, who was a director of the Council from 1921
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to 1945, and its treasurer from 1921 to 1933. He was
also the first chairman of the Council's research com-
mittee and, as such, largely responsible for the initia-
tion of its program of research and publication. After
his death in 1946, his friends raised a fund for
the purpose of commissioning his biography. This
memoir, entitled Scholar in Action: Edwin F. Gay,
was written by Harold Heaton and published this
year by Harvard University Press.
The remainder of the fund, left over after the
book's publication, was divided between the Com-
mittee on Research in Economic History, Inc. and
the Council $17,030.86 being the Council share.
In addition to its contribution to the general
research program of the Council, the Carnegie
Corporation appropriated $3,ooo to cover the ex-
penses of the Committee on Policy, and $30,000 for
the Committees on Foreign Relations. For the year
1952-53, it has granted. the same amount for the
Committees on Foreign Relations and $25,000 for
the three new research ,fellowships. The Sloan Foun-
dation made a grant of $ro,ooo to finance the prepara-
tion of the second volume of Mr. Diebold's study
of European economic cooperation.
The Committee on Policy has given detailed at-
tention to the Council's financial affairs and will
recommend steps not only to bridge the current gap
between receipts and expenditures, but also to make
possible a moderate expansion as well as some reorien-
tation of Council activities.
[491
dent of the Council and Chairman of the Study Group
on Anglo-American Relations, and Professor Henry
L. Roberts, the group's Research Secretary, attended
meetings of Chatham House's Study Group on the
same subject, which, together with our own group,
is working toward a joint report on Anglo-American
relations. On November r 3th, Dr. Wriston addressed
a full membership meeting at Chatham House on
"The Fabric of American Opinion on Foreign
Affairs."
During the year, the Council group had the
pleasure of meeting here with two members of the
British group, Admiral Sir Henry Moore, Chair-
man, and Professor Arnold Toynbee.
In November, r95r, at the invitation of the
Canadian Institute of International Affairs, Mr.
William Diebold, Jr. visited five of their branches.
At each meeting he spoke on one of two topics,
"The Implications of the Schuman Plan" or "Re-
armament and U. S. Economic Policy."
Other visitors to the Council this past year included
Sir Clement Jones, Chairman of the Council of
Chatham House, Mr. Ivison S. Macadam, its Director
General, Mr. M. S. Rajan, Administrative Secre-
tary of the Indian Council of World Affairs, and
Mr. John Goormaghtigh,Director of the Paris office
of the Carnegie Endowment for International Peace,
who spoke here May r 3th, on "European attitudes
toward the United States."
On July 2nd, the Council arranged a meeting for
a group of twelve German foreign service officers
[51I
Foreign Affairs
Various steps taken in the preceding fiscal year
to improve the financial position of FOREIGN AFFAIRS
have been continued in force in the fiscal year ending
July 31, 1952. In addition to an increase in the
subscription price from $5.00 to $6.oo, substantial
economies were effected in binding and production.
However, heavy increases in printing costs again
came into effect, and, in addition, the Board of
Directors instituted a general increase in Council
salaries in order to keep pace in part with increases
which had taken place in the costs of living. Once
again, then, there was a deficit in the financial opera-
tions of FOREIGN AFFAIRS. Though it was not large,
the fact that there was any deficit at all was a source
of concern and regret to the management. In view
of continually mounting printing and other costs,
there seems no prospect that the review can be placed
on a permanently stable financial basis until a capital
sum has been raised for the purpose. Meanwhile,
FOREIGN AFFAIRS must rely on the generosity of
a few interested members to meet deficits when these
occur. The last fiscal year in which operations showed
a profit was r944-45; circulation then was only 17,179,
compared with 19,058 today, but costs then were very
much lower. Last year, the contributors who gener-
ously made up the FOREIGN AFFAIRS deficit were :
Frank Altschul, Percival F. Brundage, R. C. Lef-
fingwell, George O. May, David Rockefeller, and
John Hay Whitney.
CONTACTS WITH FOREIGN INSTITUTIONS
In November, 1 9 5 1 , Dr. Henry M. Wriston, Presi-
[ 5o]
who had spent four months studying and traveling
in the United States. They asked us about various
aspects of U. S. foreign and domestic policy, and we
in turn questioned them about Germany.
Finally, this report would not be complete without
a word of thanks to those whose help has played
such a large part in ensuring the success of the
Council this past year. The keen interest which so
many members take in the Council's work is probably
its greatest single asset; without their active and
thoughtful participation, our type of study program
would, of course, be impossible.
We wish to give particular thanks at this time
to those members who have served as chairmen and
secretaries of the Council's study and discussion
groups, every one of whom has worked hard to make
his group a success.. We also wish to express our
special thanks to the Council's officers and directors.
Their concern for the Council's progress and the
guidance they have given through the Standing Com-
mittees and in many other ways have greatly contrib-
uted to our successful season.
Respectfully submitted,
GEORGE S. FRANKLIN, JR.
Acting Executive Director
[52]
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