THE DEPARTMENT OF STATE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP58-00453R000100300010-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 36
• Document Creation Date: December 9, 2016
• Document Release Date: July 31, 2000
• Sequence Number: 10
• Publication Date: August 3, 1953
• Content Type: BULL

Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
ARMISTICE; IN KOREA:
President's Message to the Nation
Statement by Secretary .Dulles
Text of Armistice Agreement and Supplementary
Agreement on Prisoners of War .
AMERIC STAKE IN A 'HEALTHY FREE-WORLD
OMY ? by Assistant Secretary Waugh . .
142
ADMINISTERING THE PACIFIC TRUST TERRI-
TORY 9 Statement by Frank E. Midkif . . . . 150
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
bulletin
August 3, 1953
For sale by the Superintendent of Documents
U.S. Government Printing Office
Washington 25, D.C.
PRICE:
52 issues, domestic $7.50, foreign $10.25
Single copy, 20 cents
The printing of this publication has
been approved by the Director of the
Bureau of the Budget (January 22, 1952).
Note: Contents of this publication are not
copyrighted and items contained herein may
be reprinted. Citation of the DEPARTMENT
OF STATE BULLETIN as the source will be
appreciated.
The Department of State BULLETIN,
a weekly publication issued by the
Office of Public Affairs, 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
Department of State and the Foreign
Service. The BULLETIN includes
selected press releases on foreign
policy issued by the White House
and the Department, and statements
and addresses made by the President
and by the Secretary of State and other
officers of the Department, as well as
special articles on various phases of
international affairs and the func-
tions of the Department. Informa-
tion is included concerning treaties
and international agreements to
which the United States is or may
become a party and treaties of gen-
eral international interest.
Publications of the Department, as
well as legislative material in the field
of international relations, are listed
currently.
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
ARMISTICE IN KOREA
White House press release dated July 26
My fellow citizens : Tonight we greet with
prayers of thanksgiving, the official news t1lat an
armistice was signed almost an hour ago in Korea.
It will quickly bring to an end the fighting be-
tween the U.N. forces and the Communist armies.
For this Nation the cost of repelling aggression
has been high. In thousands of homes it has been
incalculable. It has been paid in terms of
tragedy.
With special feelings of sorrow-and of solemn
gratitude-we think of those who were called
upon to lay down their lives in that far-off land
to prove once again that only courage and sacrifice
can keep freedom alive upon the earth. To the
widows and orphans of this war, and to those
veterans who bear disabling wounds, America re-
news tonight her pledge of lasting devotion and
care.
Our thoughts turn also to those other Ameri-
cans wearied by many months of imprisonment
behind the enemy lines. The swift return of all
of them will bring joy to thousands of families.
It will be evidence of good faith on the part of
those with whom we have signed this armistice.
Soldiers, sailors, and airmen of 16 different
countries have stood as partners beside us through-
out these long and bitter months. America's
thanks go to each. In this struggle we have seen
the United Nations meet the challenge of aggres-
sion-not with pathetic words of protest, but with
deeds of decisive purpose. It is proper that we
salute particularly the valorous armies of the Re-
public of Korea, for they have done even more
than prove their right to freedom. Inspired by
President Syngman Rhee, they have given an ex-
ample of courage and patriotism which again
demonstrates that men of the West and men of the
East can fight and work and live together side
by side in pursuit of a just and noble cause.
And so at long last the carnage of war is to
cease and the negotiation of the conference table
'Delivered over radio and television at 10 p. in., e. d. t.
July 26, immediately after the signing of the Korean
armistice at Panmunjom.
is to begin. On this Sabbath evening each of us
devoutly prays that all nations may come to see
the wisdom of composing differences in this
fashion before, rather than after, there is resort
to brutal and futile battle.
Now as we strive to bring about that wisdom,
there is, in this moment of sober satisfaction, one
thought that must discipline our emotions and
steady our resolution. It is this : We have won
an armistice on a single battleground-not peace
in the world. We may not now relax our guard
nor cease our quest.
Throughout the coming months, during the pe-
riod of prisoner screening and exchange, and dur-
ing the possibly longer period of the political con-
ference which looks toward the unification of
Korea, we and our U.N. Allies must be vigilant
against the possibility of untoward developments.
And as we do so, we shall fervently strive to
insure that this armistice will, in fact, bring free
peoples one step nearer to their goal of a world
at peace.
My friends, almost 90 years ago, Abraham
Lincoln at the end of a war delivered his second
inaugural address. At the end of that speech he
spoke some words that I think more nearly ex-
press the true feelings of America tonight than
would any other words ever spoken or written.
You will recall them :
With malice toward none ; with charity for all ; with
firmness in the right as God gives us to see the right,
let us strive on to finish the work we are in . . . to do all
which may achieve and cherish a Just and a lasting peace
among ourselves and with all nations.
This is our resolve and our dedication.
STATEMENT BY SECRETARY DULLES2
We welcome the Korean armistice.
The commander of the U.N. forces, with whom
are joined the troops of the Republic of Korea,
has signed for his command. The Communist
commanders have signed for their commands.
We hope that they have acted and will proceed
in good faith. However, until that is demon-
'Delivered to the Nation over radio and television
on July 26 (press release 397).
August 3, 1953 131
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
strated, the present armistice is by no means the
equivalent of assured peace. So, we shall not
relax our vigilance nor shall we reduce our
strength in Korea until future events show that
this is prudent.
This is a solemn hour.
In this hour, it is fitting that as God-fearing
people we should give thanks to the Almighty
that the killing and maiming of man by man will
stop and that evil passions will be allayed. That
is a precious gain for all who believe in human
dignity and in the moral law.
In this hour, we rejoice that the -shadow of ap-
prehension which, for over 3 years, has darkened
many a home is now lifted. Tomorrow, no new
names will be added to the long list of American
casualties. Also, our thoughts go out eagerly to
those of our sons, for long months captives of
the enemy, who are now to be returned. But our
mood is also one of sorrow as we think of the
many who never will return, or who return bear-
ing grievous hurts.
In this hour, let us also think of the cause for
which so great a sacrifice was made. For the first
time in history an international organization has
stood against an aggressor and has marshaled
force to meet force. The aggressor, at first vic-
torious, has been repulsed. The armistice leaves
him in control of less territory than when his
aggression began, and that territory is largely
wasted.
The North Korean Army is virtually extinct,
the Chinese and Korean Communist armies have
sustained about 2 million casualties, and of the
10 million people of North Korea, one out of
every three -has died from the war ravages and
the inhuman neglects which their rulers have im-
posed. These tragic results will surely be pon-
dered by other potential nominees for aggression-
by-satellite. All free nations, large and small,
are safer today because the ideal of collective
security has been implemented and because
awful punishment has been visited upon the
transgressors.
In this hour, we welcome also the triumph of
the principle of political asylum. Many of the
North Korean and Chinese prisoners of war want
hereafter to live in freedom. The Communists
stubbornly insisted that these prisoners must be
forcibly returned. Now that demand is aban-
doned. No prisoners will be returned against
their will. They may choose freedom. The con-
sequences of this decision run far beyond Korea.
The Communist rulers now know that if they
wage another war of aggression, those who un-
willingly serve in their Red armies can escape to
freedom, confident that they will never be handed
back. Thus the Red armies become less depend-
able as instruments of aggression and the chance
of aggression is correspondingly reduced.
In this hour, when we think of the gains which
this armistice records, we must think' also of the
cost. We owe much, indeed all humanity owes
much, to the gallant troops who fought under the
U.N. Command. The young Americans of our
armed forces wrote, often with their blood, an
epic chapter of heroic response to duty., The brave
people of the Republic of Korea, under the in-
spiring leadership of President Rhee, sustained
their will to fight in the face of frightful suffer-
ing. Also, 15 members of the Unitedl Nations, in
addition to the United States, contributed valiant
fighting men to the U.N. Command. All of this
cost must be held in grateful remembrance.
In this hour, as we recognize our (debt, let us
also recognize that gratitude is not enough. We
face new tasks. An immediate task is the bind-
ing up of the wounds that war has inflicted. We
shall do so in South Korea, and indeed in all
Korea, if unification can be achieved. We are no
less determined than before to achieve this unifica-
tion. Since World War II, it has been our firm
conviction that the unification of the peninsula
must come about through political means rather
than by force. Nothing has happened to alter
that conviction. Now we shall press forward, in
political conference, to end an unnatural division
which, so long as it persists, will be a potential
cause of strife.
Finally,, in this hour, let us recognize that the
need for effort and for sacrifice has not passed. In
war, men make vast sacrifices for peace. Then,
when peace is won, they fail to mak the lesser
sacrifices :needed to keep the peace. Let us, this
time, not relax, but mobilize for peace the re-
sources, spiritual and material, which we too often
reserve for war. Now more than ever we are
bound irrevocably to press forward toward the
goals of universal peace and justice.
Agreement between the Commander-in-Chief, United
Nations Command, on the one hand, and the Supreme
Commander of the Korean People's Army and the Com-
mander of the Chinese People's Volunteers, on the other
hand, concerning a military armistice in Korea.
PREAMBLE
The undersigned, the Commander-in-Chief, United Na-
tions Command, on the one hand, and the Supreme Com-
mander of the Korean People's Army and the Commander
of the Chinese People's Volunteers, on the other hand, in
the interest of stopping the Korean conflict, with its great
toll of suffering and bloodshed on both sides, and with the
objective of establishing an armistice which will insure
a complete cessation of hostilities and of all acts of armed
force in Korea until a final peaceful settlement is achieved,
do individually, collectively, and mutually agree to ac-
cept and to be bound and governed by the conditions and
terms of armistice set forth in the following' articles and
paragraphs, which said conditions and terms are intended
to be purely military in character and to pertain solely to
the belligerents in Korea.
132 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28
ARTICLE I
MILITARY DEMARCATION LINE AND
DEMILITARIZED ZONE
1. A military demarcation line shall be fixed and both
sides shall withdraw two (2) kilometers from this line so
as to establish a demilitarized zone between the opposing
forces. A demilitarized zone shall be established as a
buffer zone to prevent the occurrence of incidents which
might lead to a resumption of hostilities.
2. The military demarcation line is located as indicated
on the attached map (Map 1).3
3. This demilitarized zone is defined by a northern and
a southern boundary as indicated on the attached map
(Map 1).
4. The military demarcation line shall be plainly marked
as directed by the Military Armistice Commission herein-
after established. The Commanders of the opposing sides
shall have suitable markers erected along the boundary
between the demilitarized zone and their respective areas.
The Military Armistice Commission shall supervise the
erection of all markers placed along the military demarca-
tion line and along the boundaries of the demilitarized
zone.
5. The waters of the Han River Estuary shall be open
to civil shipping of both sides wherever one bank is
controlled by one side and the other bank is controlled by
the other side. The Military Armistice Commission shall
prescribe rules for the shipping in that part of the Han
River Estuary indicated on the attached map (Map 2).
Civil shipping of each side shall have unrestricted access
to the land under the military control of that side.
6. Neither side shall execute any hostile act within,
from, or against the demilitarized zone.
7. No person, military or civilian, shall be permitted
to cross the military demarcation line unless specifically
authorized to do so by the Military Armistice Commission.
8. No person, military or civilian, in the demilitarized
zone shall be permitted to enter the territory under the
military control of either side unless specifically author-
ized to do so by the Commander into whose territory entry
is sought.
9. No person, military or civilian, shall be permitted
to enter the demilitarized zone except persons concerned
with the conduct of civil administration and relief and
persons specifically authorized to enter by the Military
Armistice Commission.
10. Civil administration and relief in that part of the
demilitarized zone which is south of the military demar-
cation line shall be the responsibility of the Commander-
in-Chief, United Nations Command ; and civil adminis-
tration and relief in that part of the demilitarized zone
which is north of the military demarcation line shall be
the joint responsibility of the Supreme Commander of
the Korean People's Army and the Commander of the
Chinese People's Volunteers. The number of persons,
military or civilian, from each side who are permitted to
enter the demilitarized zone for the conduct of civil
administration and relief shall be as determined by the
respective Commanders, but in no case shall the total
number authorized by either side exceed one thousand
(1,000) persons at any one time. The number of civil
police and the arms to be carried by them shall be as
prescribed by the Military Armistice Commission. Other
personnel shall not carry arms unless specifically author-
ized to do so by the Military Armistice Commission.
11. Nothing contained in this article shall be construed
to prevent the complete freedom of movement to, from, and
within the demilitarized zone by the Military Armistice
Commission, its assistants, its Joint Observer Teams with
their assistants, the Neutral Nations Supervisory Com-
mission hereinafter established, its assistants, its Neutral
CIA-RDP58-00453R000100300010-1
Nations Inspection Teams with their assistants, and of
any other persons, materials, and equipment specifically
authorized to enter the demilitarized zone by the Military
Armistice Commission. Convenience of movement shall
be permitted through the territory under the military con-
trol of either side over any route necessary to move be-
tween points within the demilitarized zone where such
points are not connected by roads lying completely within
the demilitarized zone.
ARTICLE II
OONCRETE ARRANGEMENTS FOR CEASE-FIRE AND
ARMISTICE
12. The Commanders of the opposing sides shall order
and enforce a complete cessation of all hostilities in Korea
by all armed forces under their control, including all
units and. personnel of the ground, naval, and air forces,
effective twelve, (12) hours after this armistice agree-
ment is signed. (See paragraph 63 hereof for effective
date and :hour of the remaining provisions of this armistice
agreement).
13. In order to insure the stability of the military
armistice so as to facilitate the attainment of a peaceful
settlement through the holding by both sides of a politi-
cal conference of a higher level, the Commanders of
the opposing sides shall:
(a) Within seventy-two (72) hours after this armistice
agreement becomes effective, withdraw all of their mili-
tary forces, supplies, and equipment from the demilitarized
zone except as otherwise provided herein. All demolitions,
minefields, wire entanglements, and other hazards to the
safe movement of personnel of the Military Armistice
Commission or its joint observer teams, known to exist
within the demilitarized zone after the withdrawal of
military forces therefrom, together with lanes known to
be free of all such hazards, shall be reported to the MAC
by the Commander of the side whose forces emplaced
such hazards. Subsequently, additional safe lanes shall
be cleared; and eventually, within forty-five (45) days
after the termination of the seventy-two (72) hour period,
all such hazards shall be removed from the demilitarized
zone as directed by and under the supervision of the MAC.
At the termination of the seventy-two (72) hour period,
except for unarmed troops authorized a forty-five (45)
day period to complete salvage operations under MAC
supervision, such units of a police nature as may be spe-
cifically requested by the MAC and agreed to by the Com-
manders of the opposing sides, and personnel authorized
under paragraphs 10 and 11 hereof, no personnel of either
side shall be permitted to enter the demilitarized zone.
(b) Within ten (10) days after this armistice agree-
ment becomes effective, withdraw all of their military
forces, supplies, and equipment from the rear and the
coastal islands and waters of Korea of the other side.
If such military forces are not withdrawn within the
stated time limit, and there is no mutually agreed and
valid reason for the delay, the other side shall have
the right to take any action which it deems necessary
for the maintenance of security and order. The term
"coastal islands", as used above, refers to those islands
which, though occupied by one side at the time when
this armistice agreement becomes effective, were con-
trolled by the other side on 24 June 1950; provided,
however, that all the islands lying to the north and
west of the provincial boundary line between HWAN-
GHAE-DO and KYONGGI-DO shall be under the military
control of the Supreme Commander of the Korean People's
Army and the Commander of the Chinese People's Volun-
teers, except the island groups of PAENGYONG-DO
124?42' E.), 1SOCHONG-DO aE7? 6' N., 0 124-46' E.),
YONPYONG-DO (37?38' N., 125?40' E.), and U-DO
(37?36' N., 125?58' E.) and which shall remain under the
military control of the Commander-in-Chief, United Na-
August 3, 1953 133
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved
tions Command. All the islands on the west coast of
Korea lying south of the above-mentioned boundary line
shall remain under the military control of the Com-
mander-ia-Chief, United Nations Command. (See Map 3.)
(c) Cease the Introduction into Korea of reinforcing
military personnel ; provided, however, that the rotation
of units and personnel, the arrival in Korea of personnel
on a temporary duty basis, and the return to Korea of
personnel after short periods of leave or temporary duty
outside of Korea shall be permitted within the scope
prescribed below :
"Rotation" is defined as the replacement of units or
personnel by other units or personnel who are commenc-
ing a tour of duty in Korea. Rotation personnel shall
be introduced into and evacuated from Korea only through
the ports of entry enumerated in paragraph 43 hereof.
Rotation shall be conducted on a man-for-man basis ;
provided, however, that no more than thirty-five thousand
(35,000) persons in the military service shall be admitted
into Korea by either side in any calendar month under the
rotation policy. No military personnel of either side shall
be introduced into Korea if the introduction of such per-
sonnel will cause the aggregate of the military personnel
of that side admitted into Korea since the effective date of
this armistice agreement to exceed the cumulative total
of the military personnel of that side who have departed
from Korea since that date. Reports concerning ar-
rivals in and departures from Korea of military person-
nel shall be made daily to the MAC and the NNSC ; such
reports shall include places of arrival and departure and
the number of persons arriving at or departing from
each such place. The NNSC, through its Neutral Nations
Inspection Teams, shall conduct supervision and inspec-
tion of the rotation of units and personnel authorized
above, at the ports of entry enumerated in paragraph 43
hereof.
(d) Cease the introduction into Korea of reinforcing
combat aircraft, armored vehicles, weapons, and am-
munition ; provided, however, that combat aircraft, ar-
mored vehicles, weapons, and ammunition which are des-
troyed, damaged, worn out, or used tip during the period
of the armistice may be replaced on the basis of piece-
for-piece of the same effectivness and the same type.
Such combat aircraft, armored vehicles, weapons, and
ammunition shall be Introduced into Korea only through
the ports of entry enumerated in paragraph 43 hereof.
In order to justify the requirements for combat aircraft,
armored vehicles, weapons, and ammunition to be in-
troduced into Korea for replacement purposes, reports
concerning every incoming shipment of these items shall
be made to the MAC and the NNSC ; such reports shall
include statements regarding the disposition of the items
being replaced. Items to be replaced which are removed
from Korea shall be removed only through the ports of
entry enumerated in paragraph 43 hereof. The NNsc,
through its Neutral Nations Inspection Teams, shall
conduct supervision and Inspection of the replacement
of combat aircraft, armored vehicles, weapons, and am-
munition authorized above, at the ports of entry enu-
merated in paragraph 43 hereof.
(e) Insure that personnel of their respective com-
mands who violate any of the provisions of this armistice
agreement are adequately punished.
(f) In those cases where places of burial are a matter
of record and graves are actually found to exist, permit
graves registration personnel of the other side to enter,
within a definite time limit after this armistice agreement
becomes effective, the territory of Korea under their mili-
tary control, for the purpose of proceeding to such graves
to recover and evacuate the bodies of the deceased military
personnel of that side, including deceased prisoners of
war. The specific procedures and the time limit for the
performance of the above task shall be determined by the
Military Armistice Commission. The Commanders of the
opposing sides shall furnish to the other side all available
information pertaining to the places of burial of the de-
ceased military personnel of the other side.
. (g) Afford full protection and all possible assistance
and cooperation to the Military Armistice Commission, Its
Joint Observer Teams, the Neutral Nations'; Supervisory
Commission; and its Neutral Nations Inspection Teams,
in the carrying out of their functions and responsibilities
hereinafter assigned ; and accord to the Neutral Nations
Supervisory Commission, and to its Neutral Nations In-
spection Teams, full convenience of movement, between the
headquarters of the Neutral Nations Supervisory Commis-
sion and the ports of entry enumerated in paragraph 43
hereof over main lines of communication agteed upon by
both sides (See Map 4), and between the headquarters of
the Neutral. Nations Supervisory Commission and the
places where violations of this armistice agreement have
been reported to have occurred. In order to prevent un-
necessary delays, the use of alternate routes and means of
transportation will be permitted whenever the main lines
of communication are closed or impassable.
(h) Provide such logistic support, including communi-
cations and transportation facilities, as may be required
by the Military Armistice Commission and, the Neutral
Nations Supervisory Commission and their Teams.
(1) Each construct, operate, and maintain a suitable
airfield in their respective parts of the demilitarized zone
In the vicinity of the headquarters of the Military Armi-
stice Commission, for such uses as the Commission may
determine.
(j) Insure that all members and other personnel of the
Neutral Nations Supervisory Commission ancl of the Neu-
tral Nations Repatriation Commission hereinafter estab-
lished shall enjoy the freedom and facilities necessary for
the proper exercise of their functions, including privileges,
treatment, and immunities equivalent to those ordinarily
enjoyed by accredited diplomatic personnel; under inter-
national usage.
14. This armistice agreement shall apply to all op-
posing ground forces under the military control of either
side, which ground forces shall respect the ;demilitarized.
zone and 'the area of Korea under the military control of
the opposing side.
15. This armistice agreement shall apply! to all oppos-
ing naval forces, which naval forces shall respect the
waters contiguous to the demilitarized zo a and to the
land area of Korea under the military control of the op-
posing side, and shall not engage in blockade of any kind
of Korea.
16. This armistice agreement shall apply to all opposing
air forces, which air forces shall respect the air space
over the demilitarized zone and over the area of Korea
under the military control of the opposing side, and over
the waters contiguous to both.
17. Responsibility for compliance with and enforcement
of the terms and provisions of this armistice agreement
Is that of the signatories hereto and their; successors In
command. The Commanders of the opposing sides shall
establish within their respective commands', all measures
and procedures necessary to insure complete compliance
with all of the provisions hereof by all elements of their
commands. They shall actively cooperate ':with one an-
other and with the Military Armistice Commission and
the Neutral Nations Supervisory Commission In requiring
observance of both the letter and the spirit of all of the
provisions of this armistice agreement.
18. The costs of the operations of the Military Armistice
Commission and of the Neutral Nations Supervisory Com-
mission and of their Teams shall be shared equally by the
two opposing sides.
B. Military Armistice Commission.
1. Composition
19. A Military Armistice Commission is' hereby estab-
lished.
20. The Military Armistice Commission !shall be com-
posed of ten (10) senior officers, five (5) of whom shall
be appointed by the Commander-in-Chief, United Nations
Command, and five (5) of whom shall be appointed jointly
134 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 . Aroved ForBelea a 2001/08/28
by the Supreme o ander of the orean eople's Army
and the Commander of the Chinese People's Volunteers.
Of the ten members, three (3) from each side shall be of
general or flag rank. The two (2) remaining members on
each side may be major generals, brigadier generals,
colonels, or their equivalent.
21. Members of the Military Armistice Commission shall
be permitted to use staff assistants as required.
22. The Military Armistice Commission shall be pro-
vided with the necessary administrative personnel to es-
tablish a Secretariat charged with assisting the Commis-
sion by performing record-keeping, secretarial, Interpret-
ing, and such other functions as the Commission may
assign to it. Each side shall appoint to the Secretariat
a Secretary and an Assistant Secretary and such clerical
and specialized personnel as required by the Secretariat.
Records shall be kept in English, Korean, and Chinese,
all of which shall be equally authentic.
23. (a) The Military Armistice Commission shall be
initially provided with and assisted by ten (10) Joint
Observer Teams, which number may be reduced by agree-
ment of the senior members of both sides on the Military
Armistice Commission.
(b) Each Joint Observer Team shall be composed of
not less than four (4) nor more than six (6) officers of
field grade, half of whom shall be appointed by the Com-
mander-in-Chief, United Nations Command, and half of
whom shall be appointed jointly by the Supreme Com-
mander of the Korean People's Army and the Commander
of the Chinese People's Volunteers. Additional person-
nel such as drivers, clerks, and interpreters shall be fur-
nished by each side as required for the functioning of the
Joint Observer Teams.
2. Functions and Authority
24. The general mission of the Military Armistice Com-
mission shall be to supervise the implementation of this
armistice agreement and to settle through negotiations
any violations of this armistice agreement.
25. The Military Armistice Commission shall:
(a) Locate its headquarters in the vicinity of PAN-
MUNJOM (37?57'29" N. 126?40'00" E). The Military
Armistice Commission may relocate its headquarters at
another point within the demilitarized zone by agreement
of the senior members of both sides on the Commission.
(b) Operate as a joint organization without a chair-
man.
(c) Adopt such rules of procedure as it may, from time
to time, deem necessary.
(d) Supervise the carrying out of the provisions of this
armistice agreement pertaining to the demilitarized zone
and to the Han River Estuary.
(e) Direct the operations of the Joint Observer Teams.
(f) Settle through negotiations any violations of this
armistice agreement.
(g) Transmit immediately to the Commanders of the
opposing sides all reports of investigations of violations
of this armistice agreement and all other reports and rec-
ords of proceedings received from the Neutral Nations
Supervisory Commission.
(h) Give general supervision and direction to the activ-
ities of the Committee for Repatriation of Prisoners of
War and the Committee for Assisting the Return of Dis-
placed Civilians, hereinafter established.
(i) Act as an intermediary in transmitting communica-
tions between the Commanders of the opposing sides ;
provided, however, that the foregoing shall not be con-
strued to preclude the Commanders of both sides from
communicating with each other by any other means which
they may desire to employ.
(j) Provide credentials and distinctive insignia for its
staff and its Joint Observer Teams, and a distinctive
marking for all vehicles, aircraft, and vessels, used in
the performance of its mission.
26. The mission of the Joint Observer Teams shall be
CIA-RDP58-00453R000100300010-1
to assist the Military Armistice Commission in super-
vising the carrying out of the provisions of this armistice
agreement pertaining to the demilitarized zone and to
the Han River Estuary.
27. The Military Armistice Commission, or the senior
member of either side thereof, is authorized to dispatch
Joint Observer Teams to investigate violations of this
armistice agreement reported to have occurred in the de-
militarized zone or in the Han River Estuary; provided,
however, that not more than one half of the Joint Ob-
server Team which have not been dispatched by the
Military Armistice Commission may be dispatched at any
one time by the senior member of either side on the
Commission.
28. The Military Armistice Commission, or the senior
member of either side thereof, is authorized to request
the Neutral Nations Supervisory Commission to conduct
special observations and inspections at places outside the
demilitarized zone where violations of this armistice
agreement have been reported to have occurred.
29. When the Military Armistice Commission deter-
mines that a violation of this armistice agreement has
occurred, it shall immediately report such violation to
the Commanders of the opposing sides.
30. When the Military Armistice Commission deter-
mines that a violation of this armistice agreement has
been corrected to its satisfaction, it shall so report to
the Commanders of the opposing sides.
3. General
31. The Military Armistice Commission shall meet
daily. Recesses of not to exceed seven (7) days may be
agreed upon by the senior members of both sides; pro-
vided, that such recesses may be terminated on twenty-
four (24) hour notice by the senior member of either
side.
32. Copies of the record of the proceedings of all meet-
ings of the Military Armistice Commission shall be for-
warded to the Commanders of the opposing sides as soon
as possible after each meeting.
33. The Joint Observer Teams shall make periodic re-
ports to the Military Armistice Commission as required by
the Commission and, in addition, shall make such special
reports as may be deemed necessary by them, or as may
be required by the Commission.
34. The Military Armistice Commission shall maintain
duplicate Tiles of the reports and records of proceedings
required by this armistice agreement. The Commission
is authorized to maintain duplicate files of such other
reports, records, etc., as may be necessary in the conduct
of its business. Upon eventual dissolution of the Com-
mission, one set of the above files shall be turned over to
each side.
35. The Military Armistice Commission may make
recommendations to the Commanders of the opposing sides
with respect to amendments or additions to this armistice
agreement. Such recommended changes should generally
be those designed to insure a more effective armistice.
C. Neutraii Nations Supervisory Commission
1. Composition
36. A Neutral Nations Supervisory Commission is hereby
established.
37. The Neutral Nations Supervisory Commission shall
be composed of four (4) senior officers, two (2) of whom
shall be appointed by neutral nations nominated by the
Commander-in-Chief, United Nations Command, namely,
SWEDEN and SWITZERLAND, and two (2) of whom
shall be appointed by neutral nations nominated jointly
by the Supreme Commander of the Korean People's Army
and the Commander of the Chinese People's Volunteers,
namely, POLAND and CZECHOSLOVAKIA. The term
"neutral nations" as herein used is defined as those na-
tions whose combatant forces have not participated in
the hostilities in Korea. Members appointed to the Com-
mission may be from the armed forces of the appointing
August 3, 1953 135
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 nat
i
ons. Each member shall designate an alternate mem-
ber to attend those meetings which for any reason the
principal member is unable to attend. Such alternate
members shall be of the same nationality as their princi-
pals. The Neutral Nations Supervisory Commission may
take action whenever the number of members present from
the neutral nations nominated by one side is equal to the
number of members present from the neutral nations
nominated by the other side.
38. Members of the Neutral Nations Supervisory Com-
mission shall be permitted to use staff assistants fur-
nished by the neutral nations as required. These staff
assistants may be appointed as alternate members of
the Commission.
39. The neutral nations shall be requested to furnish the
Neutral Nations Supervisory Commission with the neces-
sary administrative personnel to establish a Secretariat
charged with assisting the Commission by performing
necessary record-keeping, secretarial, interpreting, and
such other functions as the Commission may assign to it.
40. (a) The Neutral Nations Supervisory Commission
shall be initially provided with, and assisted by, twenty
(20) Neutral Nations Inspection Teams, which number
may be reduced by agreement of the senior members of
both sides on the Military Armistice Commission. The
Neutral Nations Inspection Teams shall be responsible
to, shall report to, and shall be subject to the direction
of, the Neutral Nations Supervisory Commission only.
(b) Each Neutral Nations Inspection Team. shall be
composed of not less than four (4) officers, preferably
of field grade, half of whom shall be from the neutral
nations nominated by the Commander-in-Chief, United
Nations Command, and half of whom shall be from the
neutral nations nominated jointly by the Supreme Com-
mander of the Korean People's Army and the Commander
of the Chinese People's Volunteers. Members appointed
to the Neutral Nations Inspection Teams may be from
the armed forces of the appointing nations. In order
to facilitate the functioning of the Teams, sub-teams
composed of not less than two (2) members, one of whom
shall be from a neutral nation nominated by the Com-
mander-in-Chief, United Nations Command, and one of
whom shall be from a neutral nation nominated jointly
by the Supreme Commander of the Korean People's Army
and the Commander of the Chinese People's Volunteers,
may be formed as circumstances require. Additional
personnel such as drivers, clerks, interpreters, and com-
munications personnel, and such equipment as may be
required by the Teams to perform their missions, shall
be furnished by the Commander of each side, as required,
in the demilitarized zone and in the territory under his
military control. The Neutral Nations Supervisory Com-
mission may provide itself and the Neutral Nations In-
spection Teams with such of the above personnel and
equipment of its own as it may desire ; provided, how-
ever, that such personnel shall be personnel of the same
neutral nations of which the Neutral Nations Supervisory
Commission is composed.
2. Functions and Authority
41. The mission of the Neutral Nations Supervisory
Commission shall be to carry out the functions of super-
vision, observation, inspection, and Investigation, as
stipulated in sub-paragraphs 13 (c) and 13 (d) and
paragraph 28 hereof, and to report the results of such
supervision, observation, inspection, and investigation
to the Military Armistice Commission.
42. The Neutral Nations Supervisory Commission
shall :
(a) Locate its headquarters in proximity to the head-
quarters of the Military Armistice Commission.
(b) Adopt such rules of procedure as It may, from
time to time, deem necessary.
(c) Conduct, through its members and its Neutral
Nations Inspection Teams, the supervision and inspection
provided for In sub-paragraphs 13 (c) and 13 (d) of this
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
armistice agreement at the ports of entry enumerated in
paragraph 43 hereof, and the special observations and
inspections provided for in paragraph 28 hereof at those
places where violations of this armistice agreement have
been reported to have occurred. The inspection of combat
aircraft, armored vehicles, weapons, and ammunition by
the Neutral Nations Inspection Teams shall be such as
to enable them to. properly insure that reinforcing combat
aircraft, armored vehicles, weapons, and ammunition are
not being Introduced into Korea; but this shall not be
construed as authorizing inspections or examinations
of any secret designs or characteristics of any combat
aircraft, armored vehicle, weapon, or ammunition.
(d) Direct and supervise the operations of the Neutral
Nations Inspection Teams.
(e) Station five (5) Neutral Nations Inspection Teams
at the ports of entry enumerated in paragraph 43 hereof
located in the territory under the military control of
the Commander-in-Chief, United Nations Command ; and
five (5) Neutral Nations Inspection Teams at the ports
of entry enumerated in paragraph 43 hereof located in
the territory under the military control of the Supreme
Commander of the Korean People's Army and the Com-
mander of the Chinese People's Volunteers and establish
Initially ten (10)' mobile Neutral Nations Inspection
Teams in reserve, stationed In the general Vicinity of the
headquarters of the Neutral Nations Supervisory Com-
mission, which number may be reduced by' agreement of
the senior members of both sides on the military Armis-
tice Commission. Not more than half of the mobile
Neutral Nations Inspection Teams shall be!dispatched at
any one time in accordance with requests' of the senior
member of either side on the Military Armistice Com-
mission.
(f) Subject to the provisions of the preceding sub-
paragraphs, conduct without delay investigations of re-
ported violations of this armistice agreement, including
such investigations of reported violations of this armis-
tice agreement as may be requested by the Military
Armistice Commission or by the senior member of either
side of the Commission.
(g) Provide credentials and distinctive insignia for
its staff and its Neutral Nations Inspection Teams, and
a distinctive marking for all vehicles, aircGraft, and ves-
sels, used in the performance of its missioh.
43. Neutral Nations Inspection Teams shall be stationed
at the following ports of entry :
Territory under the military control of the United Na-
tions Command
INCHON------------------------- (37?28'I N, 126?38' E)
TAEGU------------------------- (35?52' V', 128"36' E)
PUSAN------------------------- (35?06' sl, 129"02' E)
KANGNUNG_____________________ (37?459 N, 128?54' E)
KUNSAN------------------------- (35?59' N, 126?43' E)
Territory under the military control of the Korean
People's Army and the Chinese People's Volunteers
SINUIJU-----------------------
(40?06'N, 124?24' E)
.
CHONGJIM_____________________
(41?46'
, N, 129?49' E)
HUNGNAM_____________________
(39-50`N, 127?37' E)
MANPO--------------------------
(41?09'', N, 126?18' E)
SINANJU-----------------------
(39?36' N, 125?36' E)
These Neutral Nations Inspection Teams shall be ac-
corded full! convenience of movement within the areas and
over the routes of communication set forth on the attached
map (Map 5).
3. General
44. The Neutral Nations Supervisory Commission shall
meet daily. Recesses of not to exceed seven (7) days
may be agreed upon by the members of the Neutral Na-
tions Supervisory Commission ; provided, that such re-
cesses may be terminated on twenty-four (4) hour notice
by any member.
45. Copies of the record of the proceedings of all meet-
136 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28: CIA-RDP58-004 3R 0 0
ings of the Neutral Nations Supervisory Commission shall elude name, rank (i any a i e - or military
be forwarded to the Military Armistice Commission as serial number.
soon as possible after each meeting. Records shall be (b) Each side shall release all those remaining pris-
kept in English, Korean, and Chinese. oners of war, who are not directly repatriated, from its
46. The Neutral Nations Inspection Teams shall make military control and from its custody and hand them over
periodic reports concerning the results of their super- to the Neutral Nations Repatriation Commission for dis-
vision, observations, inspections, and investigations to position in accordance with the provisions in the annex
the Neutral Nations Supervisory Commission as required hereto : "Terms of Reference for Neutral Nations Repatri-
by the Commission and, in addition, shall make such spe- ation Commission."
cial reports as may be deemed necessary by them, or as (c) So that there may be no misunderstanding owing
may be required by the Commission. Reports shall be to the equal use of three languages, the act of delivery of
submitted by a Team as a whole, but may also be sub- a prisoner of war by one side to the other side shall, for
mitted by one or more individual members thereof ; pro- the purposes of this armistice agreement, be called "re-
vided, that the reports submitted by one or more indi- patriation"' in English, "Song Hwan" ( ) in Korean,
vidual members thereof shall be considered as informa- and "Ch'ien Fan" ( ) in Chinese, notwithstanding
tional only. the nationality or place of residence of such prisoner of
47. Copies of the reports made by the Neutral Nations war.
Inspection Teams shall be forwarded to the Military 52. Each side insures that it will l not employ in acts of
Armistice Commission by the Neutral Nations Super- war in the Korean n es conflict any prisoner not of war released visory which received. . They y shall not delay be delayed by t the he process nCommih and in the language and repatriated incident to the coming into effect of this
which at aagreement.
of translation or evaluation. The Neutral Nations Super- armistice 53. i All the sick and injured prisoners of war who in-
earliest Commission shall evaluate such reports findings nos sist upon repatriation shall be repatriated with priority.
tolie practicable
Amisttice and Coshall mmission forward as a their matter of of Insofar as possible, there shall be captured medical per-
priority. Military Armistice sonnel repatriated concurrently with the sick and injured
until the not prisoners of war, so as to provide medical care and at-
take p. final The action with Military Milit regard to any such report shall
evaluation Armistice Commission
evaluation thereof has been received from the Neutral tendance enroute.
5d prisoners of war re-
sub-paragraph repatriation of 51 all l o of the hereof shall prisoners
Nations Supervisory Commission. Members of the Neutral 54 a . The
completed
Nations Supervisory Commission and of its Teams shall be q
subject to appearance before the Military Armistice Com- within a time limit of sixty (60) days after this armistice
mission, at the request of the senior member of either side agreement becomes effective. Within this time limit each
on the Military Armistice Commission, for clarification of side undertakes to complete the repatriation of the above-
any report submitted. mentioned prisoners of war in its custody at the earliest
48. The Neutral Nations Supervisory Commission shall practicable time.
maintain duplicate files of the reports and records of 55. PANMUNJOM is designated as the place where pris-
proceedings required by this armistice agreement. The oners of war will be delivered and received by both sides.
Commission is authorized to maintain duplicate files of Additional, place(s) of delivery and reception of prisoners
such other reports, records, etc., as may be necessary in of war in the demilitarized zone may be designated, If
the conduct of its business. Upon eventual dissolution necessary, by the Committee for Repatriation of Pris-
of the Commission, one set of the above files shall be oners of War.
turned over to each side.
49. The Neutral Nations Supervisory Commission may
make recommendations to the Military Armistice Commis-
sion with respect to amendments or additions to this
armistice agreement. Such recommended changes should
generally be those designed to insure a more effective
armistice.
50. The Neutral Nations Supervisory Commission, or
any member thereof, shall be authorized to communicate
with any member of the Military Armistice Commission.
ARRANGEMENTS RELATING TO PRISONERS
OF WAR
51. The release and repatriation of all prisoners of
war held in the custody of each side at the time this
armistice agreement becomes effective shall be effected
in conformity with the following provisions agreed upon
by both sides prior to the signing of this armistice
agreement.
(a) Within sixty (60) days after this armistice agree-
ment becomes effective each side shall, without offering
any hindrance, directly repatriate and hand over in groups
all those prisoners of war in its custody who insist on
repatriation to the side to which they belonged at the
time of capture. Repatriation shall be accomplished in
accordance with the related provisions of this article.
In order to expedite the repatriation process of such per-
sonnel, each side shall, prior to the signing of the armis-
tice agreement, exchange the total numbers, by national-
ities, of personnel to be directly repatriated. Each group
of prisoners of war delivered to the other side shall be
accompanied by rosters, prepared by nationality, to in-
56. (a) A committee for repatriation of prisoners of
war is hereby established. It shall be composed of six (6)
officers of :field grade, three (3) of whom shall be appointed
by the Commander-in-Chief, United Nations Command,
and three (3) of whom shall be appointed jointly by the
Supreme Commander of the Korean People's Army and the
Commander of the Chinese People's Volunteers. This
committee shall, under the general supervision and direc-
tion of the Military Armistice Commission, be responsible
for coordinating the specific plans of both sides for the
repatriation of prisoners of war and for supervising the
execution by both sides of all of the provisions of this
armistice agreement relating to the repatriation of pris-
oners of war. It shall be the duty of this committee to co-
ordinate the timing of the arrival of prisoners of war at
the places of delivery and reception of prisoners of war
from the prisoner of war camps of both sides ; to make,
when necessary, such special arrangements as may be re-
quired with regard to the transportation and welfare of
sick and injured prisoners of war ; to coordinate the work
of the Joint Red Cross teams, established in paragraph
57 hereof, in assisting in the repatriation of prisoners of
war ; to supervise the Implementation of the arrange-
ments for the actual repatriation of prisoners of war stipu-
lated in paragraphs 53 and 54 hereof ; to select, when
necessary., additional places of delivery and reception of
prisoners of war ; to arrange for security at the places of
delivery and reception of prisoners of war ; and to carry
out such other related functions as are required for the
repatriation of prisoners of war.
(b) When unable to reach agreement on any matter
relating to its responsibilities, the Committee for Repatri-
ation of Prisoners of War shall immediately refer such
matter to the Military Armistice Commission for decision.
The Committee for Repatriation of Prisoners of War
137
August 3, 1953
Approved For Release 2001/08/28 : CIA-RDP58-00453ROO0100300010-1
 4
shall niai~j@~iit~tt~t4~i~1~~$ll~eac~lA-FpPS> b0(~45
si es R
000a OOjoQ(~ORed Cross team, the size
quarters of the Military Armistice Commission. of such team may be increased or decreased, subject to
(c) The Committee for Repatriation of Prisoners of confirmation by the Committee for Repatriation of Prison-
War shall be dissolved by the Military Armistice Com- ers of War.
mission upon completion of the program of repatriation (c) The Commander of each side shall cooperate fully
of prisoners of war. 'th +1, - 4 t R C
wr
d
57. (a) Immediately after this armistice agreement
becomes effective, Joint Red Cross teams composed of
representatives of the National Red Cross Societies of the
countries contributing forces to the United Nations Com-
mand on the one hand, and representatives of the Red
Cross Society of the Democratic People's Republic of Korea
and representatives of the Red Cross Society of the
People's Republic of China on the other hand, shall be
established. The joint Red Cross teams shall assist in
the execution by both sides of those provisions of this
armistice agreement relating to the repatriation of all
the prisoners of war specified in sub-paragraph 51 (a),
hereof, who insist upon repatriation, by the performance
of such humanitarian services as are necessary and de-
sirable for the welfare of the prisoners of war. To ac-
complish this task, the Joint Red Cross teams shall
provide assistance in the delivering and receiving of pris-
oners of war by both sides at the place(s) of delivery and
reception of prisoners of war, and shall visit the prisoner-
of-war camps of both sides to comfort the prisoners of
war and to bring in and distribute gift articles for the
comfort and welfare of the prisoners of war. The Joint
Red Cross teams may provide services to prisoners of
war while en route from prisoner-of-war camps to the
places of delivery and reception of prisoners of war.
(b) The Joint Red Cross teams shall be organized as
set forth below :
(1) One team shall be composed of twenty (20) mem-
bers, namely, ten (10) representatives from the national
Red Cross societies of each side, to assist in the delivering
and receiving of prisoners of war by both sides at the
place(s) of delivery and reception of prisoners of war.
The chairmanship of this team shall alternate daily be-
tween representatives from the Red Cross societies of the
two sides. The work and services of this team shall be
coordinated by the Committee for Repatriation of Pris-
oners of War.
(2) One team shall be composed of sixty (60) members,
namely, thirty (30) representatives from the national
Red Cross societies of each side, to visit the prisoner-of-
war camps under the administration of the Korean
People's Army and the Chinese People's Volunteers. This
team may provide services to prisoners of war while en
route from the prisoner-of-war camps to the place(s) of
delivery and reception of prisoners of war. A repre-
sentative of the Red Cross society of the Democratic
People's Republic of Korea or of the Red Cross Society of
the People's Republic of China shall serve as chairman
of this team.
(3) One team shall be composed of sixty (60) mem-
bers, namely, thirty (30) representatives from the na-
tional. Red Cross societies of each side, to visit the pris-
oner-of-war camps under the administration of the United
Nations Command. This team may provide services to
prisoners of war while en route from the prisoner-of-war
camps to the place(s) of delivery and reception of pris-
oners of war. A representative of a Red Cross society of
a nation contributing forces to the United Nations Com-
mand shall serve as chairman of this team.
(4) In order to facilitate the functioning of each joint
Red Cross team, sub-teams composed of not less than two
(2) members from the team, with an equal number of
representatives from each side, may be formed as cir-
cumstances require.
(5) Additional personnel such as drivers, clerks, and
interpreters, and such equipment as may be required by
the joint Red Cross teams to perform their missions,
shall be furnished by the Commander of each side to the
team operating in the territory under his military control.
(6) Whenever jointly agreed upon by the representa-
e orn e
ross teams in the performance of their
functions, and undertakes to insure the security of the
personnel of the joint Red Cross team in the area under
his military control. The Commander of each side shall
provide such logistic, administrative, and] communica-
tions facilities as may be required by the team operating
in the territory under his military control. i
(d) The Joint Red Cross teams shall be dissolved upon
completion of the program of repatriation of all the prison-
ers of war specified in sub-paragraph 51 (a) hereof, who
insist upon. repatriation.
58. (a) The Commander of each side shall furnish to
the Commander of the other side as soon as practicable,
but not later than ten (10) days after this Armistice
Agreement becomes effective, the following information
concerning prisoners of war : I
(1) Complete data pertaining to the prisoners of war
who escaped since the effective date of the data last
exchanged.
(2) Insofar as practicable, information regarding
name, nationality, rank, and other indentification data,
date and cause of death, and place of burial, of those
prisoners of war who died while in his custody.
(b) If any prisoners of war escape or die after the ef-
fective date of the supplementary information specified
above, the detaining side shall furnish to the other side,
through the Committee for Repatriation of Prisoners of
War, the data pertaining thereto in accordance with the
provisions of sub-paragraph 58 (a) here4 Such data
shall be furnished at 10-day intervals until the comple-
tion of the program of delivery and reception of prisoners
of war.
(c) Any escaped prisoner of war who returns to the
custody of the detaining side after the completion of the
program of delivery and reception of prisoners of war shall
be delivered to the Military Armistice Commission for
disposition.
59. (a) All civilians who, at the time this armistice
agreement becomes effective, are in territory under the
military control of the Commander in Chief, United
Nations Command, and who, on 24 June 1950, resided
north of the military demarcation line established in this
armistice agreement shall, if they desire to 'return home,
be permitted and assisted by the Commander-in-Chief.,
United Nations Command, to return to the area north
of the military demarcation line; and all civilians who,
at the time this armistice agreement becorhes effective,
are in territory under the military control ofithe Supreme
Commander of the Korean People's Army and the Com-
mander of the Chinese People's Volunteers, and who,
on 24 June 1950, resided south of the military demar-
cation line established in this armistice agreement shall, if
they desire to return home, be permitted and assisted
by the Supreme Commander of the Korean People's Army
and the Commander of the Chinese People's Volunteers
to return to the area south of the military demarcation
line. The commander of each side shall b responsible
for publicizing widely throughout territory under his
military control the contents of the provisions of this
subparagraph, and for calling upon the appropriate
civil authorities to give necessary guidance and assist-
ance to all such civilians who desire to return home.
(b) All civilians of foreign nationality who, at the time
this armistice agreement becomes effective, are in terri-
tory under the military control of the Supreme Com-
mander of the Korean People's Army and tbe'' Commander
of the Chinese People's Volunteers shall, if they desire
to proceed to territory under the military control of the
Commander-in-Chief, United Nations Command, be per-
mitted and assisted to- do so ; all civilians of foreign
nationality who, at the time this armistice agreement be-
Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 p
comes effective, are In territory under the military con-
trol of the Commander-in-Chief, United Nations Com-
mand, shall, if they desire to proceed to territory under
the military control of the Supreme Commander of the
Korean People's Army and the Commander of the Chinese
People's Volunteers, be permitted and assisted to do so.
The Commander of each side shall. be responsible for
publicizing widely throughout the territory under his mili-
tary control the contents of the provisions of this sub-
paragraph, and for calling upon the appropriate civil
authorities to give necessary guidance and assistance to
all such civilians of foreign nationality who desire to
proceed to territory under the military control of the
commander of the other side.
(c) Measures to assist in the return of civilians pro-
vided for in sub-paragraph 59 (a) hereof and the move-
ment of civilians provided for in sub-paragraph 59 (b)
hereof shall be commenced by both sides as soon as pos-
sible after this armistice agreement becomes effective.
(d) (1) A committee for assisting the return of dis-
placed civilians is hereby established. It shall be
composed of four (4) officers of field grade, two (2)
of whom shall be appointed by the Commander-in-Chief,
United Nations Command, and two (2) of whom shall
be appointed jointly by the Supreme Commander of
the Korean People's Army and the Commander of the
Chinese People's Volunteers. This committee shall,
under the general supervision and direction of the Mili-
tary Armistice Commission, be responsible for co-
ordinating the specific plans of both sides for assistance
to the return of the above-mentioned civilians, and for
supervising the execution by both sides of all the
provisions of this armistice agreement relating to the
return of the above-mentioned civilians. It shall be
the duty of this committee to make necessary arrange-
ments, including those of transportation, for expediting
and coordinating the movement of the above-mentioned
civilians ; to select the crossing points through which
the above-mentioned civilians will cross the military
demarcation line ; to arrange for security at the crossing
points; and to carry out such other functions as are
required to accomplish the return of the above-men-
tioned civilians.
(2) When unable to reach agreement on any matter
relating to its responsibilities, the Committee for Assist-
ing the Return of Displaced Civilians shall immediately
refer such matter to the Military Armistice Commission
for decision. The Committee for Assisting the Return
of Displaced Civilians shall maintain its headquarters
in proximity to the headquarters of the Military
Armistice Commission.
(3) The Committee for Assisting the Return of Dis-
placed Civilians shall be dissolved by the Military
Armistice Commission upon fulfillment of Its mission.
ARTICLE IV
RECOMMENDATIONS TO THE GOVERNMENTS
CONCERNED ON BOTH SIDES
60. In order to insure the peaceful settlement of the
Korean question, the military commanders of both sides
hereby recommend to the governments of the countries
concerned on both sides that, within three (3) months
after the armistice agreement is signed and becomes effec-
tive, a political conference of a higher level of both sides
be held by representatives appointed respectively to settle
through negotiation the questions of the withdrawal of all
foreign forces from Korea, the peaceful settlement of the
Korean question, etc.
ARTICLE V
MISCELLANEOUS
61. Amendments and additions to this armistice agree-
ment must be mutually agreed to by the Commanders of
the opposing sides.
Ap
roved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
62. The articles and paragraphs of this armistice agree-
ment shall remain in effect until expressly superseded
either by mutually acceptable amendments and additions
or by provision in an appropriate agreement for a peaceful
settlement at a political level between both sides.
63. All of the provisions of this armistice agreement,
other than paragraph 12, shall become effective at 2200
hours on July 27. 1953.
Done at PANMUNJOM, Korea, at 1000 hours on the
27th day of July 1953, in English, Korean, and Chinese,
all texts being equally authentic.'
NAM IL
General, Korean People's Army, Senior Delegate, Delega-
tion of the Korean People's Army and the Chinese People's
Volunteers
WILLIAM K. HARRISON, Jr.
Lieutenant General, United States Army, Senior Delegate,
United Nations Command Delegation
Editor's Note. The official text of the agreement
reached Washington as this issue was going to press. A
comparison with the unofficial text, as distributed by the
Department on July 26, disclosed a number of minor dif-
ferences, chiefly of a stylistic nature. All substantive
changes have been made in the text as printed here; in
order not to delay publication, changes in style, such as
the capitalization of "armistice agreement," "demili-
tarized zone," and "military demarcation line," have not
been made.
SUPPLEMENTARY AGREEMENT ON PRISONERS
OF WAR5
In order to meet the requirements of the disposition
of the prisoners of war not for direct repatriation In
accordance with the provisions of the terms of reference
for Neutral Nations Repatriation Commission, the Su-
preme Commander of the Korean People's Army and the
Commander of the Chinese People's Volunteers, on the
one hand, and the Commander in Chief, United Nations
Command, on the other hand, in pursuance of the provi-
sions in paragraph 61, article 5 of the agreement concern-
ing a military armistice in Korea, agree to conclude the
following temporary agreement supplementary to the
armistice agreement :
1. Under the provisions of paragraphs 4 and 5, article
II of the terms of reference for Neutral Nations Repatria-
tion Commission, the United Nations Command has the
right to designate the area between the military defnarca-
tion line and the eastern and southern boundaries of the
demilitarized zone between the Imjin River on the south
and the road leading south from Okum-Ni on the north-
east (the main road leading southeast from Panmunjom
not included), as the area within which the United Na-
tions Command will turn over the prisoners of war, who
are not directly repatriated and whom the United Nations
Command has the responsibility for keeping under its
custody, to the Neutral Nations Repatriation Commis-
sion and the armed forces of India for custody. The
United Nations Command shall, prior to the signing of
the armistice agreement, Inform the side of the Korean
People's Army and the Chinese People's Volunteers of
the approximate figures by nationality of such prisoners
of war held in its custody.
2. If there are prisoners of war under their custody
'The agreement was subsequently signed by Gen. Mark
W. Clark, Commander-in-Chief, U. N. Command ; Marshal
Kim Il Sung, Supreme Commander, Korean People's
Army ; and Peng Teh-Huai, Commander of the Chinese
People's Volunteers.
'For text of the Agreement on Prisoners of War
signed on June 8, see BULLETIN of June 22, 1953, p. 866.
August 3, 1953 139
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
who request not to be directly repatriated, the Korean
People's Army and the Chinese People's Volunteers have
the right to designate the area in the vicinity of Panmun-
jom between the military demarcation line and the west-
ern and northern boundaries of the demilitarized zone, as
the area within which such prisoners of war will be
turned over to the Neutral Nations Repatriation Com-
mission and the armed forces of India for custody. After
knowing that there are prisoners of war under their cus-
tody who request not to be directly repatriated, the
Korean People's Army and the Chinese People's Volunteers
shall inform the United Nations Command side of the
approximate figures by nationality of such prisoners of
war.
3. In accordance with paragraphs 8, 9, and 10, article I
of the armistice agreement, the following paragraphs are
hereby provided:
a. After the cease-fire comes into effect, unarmed per-
sonnel of each side shall be specifically authorized by the
Military Armistice Commission to enter the above-
mentioned area designated by their own side to perform
necessary construction operations. None of such per-
sonnel shall remain in the above-mentioned areas upon
the completion of the construction operations.
b. A definite number of prisoners of war as decided
upon by both sides, who are in the respective custody of
both sides and who are not directly repatriated, shall be
specifically authorized by the Military Armistice Commis-
sion to be escorted respectively by a certain number of
armed forces of the detaining sides to the above-mentioned
areas of custody designated respectively by both sides,
to be turned over to the Neutral Nations Repatriation
Commission and the armed forces of India for custody.
After the prisoners of war have been taken over, the
armed forces of the detaining sides shall be withdrawn
immediately from the areas of custody to the area under
the control of their own side.
c. The personnel of the Neutral Nations Repatriation
Commission and its subordinate bodies, the armed forces
of India, the Red Cross Society of India, the explaining
representatives and observation representatives of both
sides, as well as the required material and equipment, for
exercising the function provided for in the terms of refer-
ence for Neutral Nations Repatriation Commission shall
be specifically authorized by the Military Armistice Com-
mission to have the complete freedom of movement to,
from, and within the above-mentioned areas designated
respectively by both sides for the custody of prisoners of
war.
4. The provisions of sub-paragraph 3C of this agree-
ment shall not be construed as derogating from the privi-
leges enjoyed by those personnel mentioned above under
paragraph 11, article I of the armistice agreement.
5. This agreement shall be abrogated upon the com-
pletion of the mission provided for in the terms of refer-
ence for Neutral Nations Repatriation Commission.
Done at Panmunjom, Korea, at 1000 hours on the 27th
day of July 1953, in Korean, Chinese, and English, all
texts being equally authentic.
Korean Armistice Problems
Press Conference Remarks by Secretary Dulles
Press release 389 dated July 21
I am sure that the topic which is on the minds
of most of us, as it is on my mind, is the question
of Korea and whether or not there will be an
armistice in Korea. I know that you would like
me to tell you what the answer to that question is.
I am sorry that I shall have to disappoint you in
that respect and not make any prophecies.
The prospects for an armistice in Korea have
gone up and down and up and down so many times
that I think it is important for all of us to keep a
steady view, not to become elated, enthusiastic,
before the event or to become depressed before
the event. We are, of course, hopeful that there
will be an armistice, but to go beyond that would
be inaccurate. There are still matters that need
to be ironed out, and one can never be confident of
the Communist intentions until they are fully re-
flected in their actual deeds. We do not have that
yet at the present time.
There are a number of details in relation to the
armistice--the question of remapping the line;
the question of the physical arrangements for
handling prisoners of war of various categories-
problems, I believe, of translation. These are
matters which ought not to be an insoluble diffi-
culty if there is a real will to conclude the armis-
tice, but whether or not there is that will is the
factor which is uncertain and will remain uncer-
tain until the last moment.
There are no qualifications that I am aware of
to the assurance, which I referred to in my radio
talk the other night with Mr. Robertson,' that
President Rhea will not take any measures to
impede the carrying out of the armistice. There
are, of course, a very large number' of matters
which are for discussion between our two Govern-
ments. Those were revealed in the letter of June
6 which President Eisenhower wrote to President
Rhee.2 They relate to questions of economic aid,
a mutual security pact, and consultation in con-
nection with the political conference which will
follow an armistice.
All of these matters were fully discussed by
Assistant Secretary Robertson when he was in
Korea with President Rhee. He has brought back
further ideas of President Rhee on those matters.
Secretary Robertson has in turn discussed them
with the President, with myself, and with congres-
sional leaders. He appeared before both the Sen-
ate Foreign Relations Committee and the House
Foreign Affairs Committee, and the further views
of our Government with respect to those matters
are being communicated to President Rhee. But
I do not think that those matters need be or, in
fact, can be finally resolved before an armistice.
That was made perfectly clear to President Rhee.
For example, a security treaty would have to go
before the Senate for ratification, and probably it
will not be practical to do that at this session of
Congress. That was explored while Assistant
Secretary Robertson was in Korea, and we were
advised by Senator Knowland that it would not
be practical, probably, to deal with matters of
that sort at this session of Congress.
' BULLuriN of July 27, 1953, p. 99.
' Ibid., June 15, 1953, p. 835.
140 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RD 8-004 3 0
We have a firm idea that at least two nations has agree to nego is e r - ity treaty
should be there [at the political conference to fol- along the lines of the United States-Philippine
low an armistice]. One is the Republic of Korea, Mutual Security Treaty, with certain modifica-
and the other is the United States. Undoubtedly tions drawn from the United States-Japan Se-
the U.N. Assembly will meet and will designate a curity Treaty which President Rhee has indicated
delegation, I suppose, which will take part in the he thought would be desirable.
political conference. But we have not given any It has been agreed that, upon the conclusion of
particular thought to the composition of such a an armistice, I would be prepared promptly to
delegation, which would be determined by the meet with President Rhee at a time and place to be
General Assembly after it meets. I assume that mutually determined, with a view to concerting
on the other side there will be representatives of our policies at the political conference which will
the so-called Peoples Government of North Korea, follow an armistice, thus assuring the maximum
presumably the Chinese Communist regime, and chance that the conference will achieve a unifica-
possibly the Soviet Union, but that latter is specu- tion of Korea.
lction because e the decision on their side about We have agreed, in concert with our principal
participation will be made by them and not by us. allies, that in the event the Communists should
Now as to agenda, I think what I said at an renew their aggression in Korea after an armi-
earlier news conference 3 as best as I recall, is that stice, we shall vigorously act to restore peace and
we would not necessarily exclude the possibility security.
of some other questions coming up, and I particu- The present is a time when rumors are rife and
larly referred to the point which had been made when it is necessary to be steady in our purpose
several times by President Eisenhower, by myself, and in our trust in our friends.
and was referred to in the three Foreign Minis- We assume that President Rhee, despite his mis-
ters' communique 4 to the effect that we would not givings, will abide by his assurances to the Presi-
expect a truce in Korea to release forces for ag- dent, the Secretary of State, and Assistant Secre-
gression elsewhere. Now, you can say that is a tary Robertson. President Rhee, in turn, can be
Korean problem, or you can say it's a problem confident that the United States will loyally sup-
which relates and extends beyond Korea, but we port the Republic of Korea in the rebuilding of its
would not certainly exclude discussion on that land and in the attainment of its honorable objec-
point. tives.
Statement by the Secretary
Press release 393 dated July 22
The question of an armistice is up to the Com-
munists. We retain confidence that President
Rhee will honor the assurances he has given. He
personally wrote President Eisenhower under date
of July 11, 1953, that, in deference to the Presi-
dent's request, he would not obstruct in any
manner the implementation of the armistice terms.
On the same date he wrote to me that, while he
questions the wisdom of a truce, he has yielded his
convictions to U.S. policies. A truce, he wrote to
me, will now be signed and. the Republic of Korea
will abide by its agreement to give the United
Nations another chance to try to unify Korea by
political negotiation.
President Rhee has sought various assurances
from the-United States and has reserved his Gov-
ernment's position in the event of a collapse of the
political talks which would follow an armistice.
This we believe he is entitled to do. With refer-
ence to the assurances sought, the U.S. Govern-
ment has responded to the best of its, ability.
The President has agreed to. initiate, immedi-
ately upon the conclusion of an armistice, a pro-
gram of rehabilitation which will cover a 4 to 5
year period and involve heavy expenditures. He
e Ibid., June 29, 1953, p. 908.
Ibid., July 27, 1953, p. 104.
Netherlands Approves European
Defense Community Treaty
Statement by Secretary Dulles
Press release 395 dated July 23
The Second Chamber of the Netherlands Par-
liament today voted approval of the treaty which
will establish the European Defense Community.
The action of the Netherlands Parliament shows
clearly that the movement toward European unity,
despite inevitable obstacles and delays, is steadily
going forward. I believe unity offers our Euro-
peaii friends their strongest assurance of freedom
and security, their best hope of lasting peace, and
their greatest opportunity for economic and social
advancement.
The American people, I know, will welcome
this constructive step, not only because of their
deep and demonstrated interest in European unity,
but because of our conviction that the need for
unity transcends the problems and tensions of the
present and has implications that extend far into
the future.
The statesmen and people of the Netherlands
can take pride in the fact that they have been at
the forefront of this movement.
August 3, 1953 141
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
America's Stake in a Healthy Free-World Economy
by Samuel C. Tvaugh
.Assistant Secretary for Economic Affairs
x
It occurred to me that, rather than attempt an
erudite discourse, you might at the outset be in-
terested in several of the particularly sharp im-
pressions I have gained during the last 60 days.
First, there is the question of the State Depart-
ment as an institution. I am deeply impressed by
the necessity for the United States, and indeed
for the free world, that there be an effective and
responsible Department of State. Our interna-
tional responsibilities today are so great and we
are all to such a great extent dependent upon the
skill with which our international relations are
conducted that none of us can be content with any-
thing less than the most effective agency for han-
dling our international affairs.
It is clearly the responsibility of the Secretary
of State and his principal assistants to do their
utmost in creating such an institution. At the
same time it is the responsibility of all of us as
citizens to see that criticism of the Department is
constructive and not destructive.
In 'view of the limited time I have been in the
Department, I feel competent only-to comment on
the professional and technical staff immediately
under my jurisdiction. And with respect to these
career people, I can unequivocally state that they
are, by and large, a highly qualified, hard-working
group of people. Indeed, before accepting my
present position, I was reliably informed that the
staff in the economic offices under my jurisdiction
was competent. My experience in the last 2
months has confirmed these statements.
A second, and as you will note an unrelated,
point that I should like to make is how one gets
along with other countries. It is common today,
and thoroughly understandable, for a great many
'Address made before the University of Illinois Insti-
tute on International Trade at Monticello, Ill., on July
18 (press release 386 dated July 17).
Americans to be impatient with our allies in the
free world, to wonder at their actions and inac-
tion, and to allow this impatience to take the form
of criticism of Washington and the State Depart-
ment and its alleged failure to get our friends
abroad to do the things which we believe they
should do. This criticism is put in various forms.
Some say that as long as we are giving and have
given so much money to these people, they cer-
tainly should be willing to do the many things
we believe they ought. Others insist. that the
United States is invariably out-negotiated. It is
said that we, are the only ones ghat make
concessions.
Now against these criticisms, one of the things
that I have come to realize is the enormous problem
of dealing on a cooperative and nondictatorial
basis with a large number of countries with diverse
interests, with varying traditions, and a'multitude
of governmental systems. It is useful to realize
that we are dealing with sovereign countries, proud
of their independence, all of which are responsive
in one way or another to their own people, and
whose governments will stand or fall on the basis
of this consent. This is in sharp contrast to the
police-state techniques of the Communist world,
which maintains an iron control backed by mili-
tary power and a controlled government.;
In short, it is essential to put this coalition we
have in the free world in its proper perspective
and appreciate the elementary fact that coalition
calls for continual give and take, with no one coun-
try calling all the shots and with other countries
making all the concessions.
The third impression which has been so sharply
brought home to me is the great and unpredictable
effects very small actions taken by the United
States can have on our friends and allies abroad.
And I am talking here not about those actions
which are necessarily aimed at the international
Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
situation but more of those things we do which has been given not for altruistic purposes but to
have a quite coincidental effect on international serve our own immediate security objectives.
affairs.
Let me say here that one of the most interesting
experiences about Washington is the fact that, once
I took over my office, there has been a constant
stream of ambassadors and ministers who have
come in to see me to pay what are called courtesy
calls. This is their manner of welcoming me to
Washington, and I have been provided a remark-
able opportunity to meet a distinguished group of
representatives from a wide number of countries.
It is in the nature of these courtesy visits not to
make any request or to attempt to transact any
serious business. However, in each case there has
been a constant thread of deep concern expressed
by all these people as to where the United States
was going in its foreign economic policy. These
ambassadors and ministers pointed out again and
merican actions
again the deep effects various American"
have had upon their own economies, in each case
far beyond what I would have imagined. The
Dutch, the Danes, and the Italians have all been
adversely affected by our restrictions over the im-
ports of dairy products. The gallant Finns, strug-
gling to survive, have had their meager exports
of doors affected by boycotts in this country. The
Commonwealth Ambassadors from New Zealand,
Australia, and South Africa are vitally concerned
with what we shall do about the imports of wool.
What I have come to realize, in a way I never
understood before, are the implications of Amer-
ican dominance in the world today. One of the
major tasks before America and one of the tasks
of groups such as this is to impress upon the Amer-
ican public the implications of our actions. Only
as we realize the significance of these actions can
we consider and in time reach sound decisions on
the kinds of policies we should decide upon in the
future.
The presence of all of you during this past week
at this conference is a clear demonstration of the
mounting appreciation of problems confronting
this country in the foreign economic field.
In the remaining time, I should like to give some
indication of why this economic aspect of our inter-
national relations, and indeed the economic situ-
ation of the free world, is of such critical impor-
tance to us and to our allies. Then I believe it
may be useful to indicate two or three of the areas
of economic activity which pose difficult problems
that need to be analyzed on an urgent basis and for
which solutions must be found.
Economic strength and the rate of economic
growth are of critical importance to the free world.
The present strength and the rate of growth to-
day are inadequate for the minimum security of
the free world, and in turn the United States.
Massive foreign assistance has gone out to our
allies abroad in the postwar period, and such aid
This aid is a clear demonstration of economic
weakness. Our friends feel that the strength of
the free world is inadequate so long as they are
incapable on their own resources of maintaining,
in cooperation with us, a defense force and internal
political and economic stability adequate to meet
the great; threat posed for us by the Soviet Union
and its satellites.
To test adequately where we stand regarding
free world economic strength requires some bench-
marks. It is insufficient to say that we need more
strength or that our rate of growth must be ac-
celerated. One of the important benchmarks is
the rival economic strength and growth of the
Soviet Union.
Soviet Economic Progress
The Soviet Union has made remarkable and dis-
heartening economic progress since the end of the
war. While we do not have the firm statistical
basis for evaluating the growth of the Soviet
Union that we do for the free countries of the
world, we do have intelligent estimates, and they
are not reassuring. Let us take the four elements
on which a strong civilian or military economy
must be based : coal, steel, oil, and electricity.
Since 1940 the Soviet Union has doubled its pro-
duction of coal. While Soviet production of coal
is still only 52 percent of ours, the rate of increase
of production is the key element to consider. Steel
production was also practically doubled in this
period and is now 29 percent of U.S. production,
but is three-fifths of Western European capacity.
Production of petroleum which was at 31 million
tons in 1940 is today at 47 million tons, and well on
its way to surpassing production in Western Eu-
rope. Electric power within the Soviet Union is
only 23 percent of that in the United States but
the increase from 1940 to the present time is 69
billion kilowatt hours. This is very rapid prog-
ress indeed.
Any comparison with the industrial potential
of the Soviet Union should be made with Western
Europe rather than with the United States, and
it is here that the comparative figures are startling.
If the rate of increase continues, it is highly prob-
able that sometime in the 1960's the economic
strength of the Soviet Union will intersect and
pass that of Western Europe. This is not a reas-
suring situation but a factor which we must always
bear in mind.
The picture which is posed to the United States
is one of rapidly mounting Soviet Union strength,
arising out of a land mass rich in natural resources,
with the prospect of a rapidly increasing popula-
tion. In the preceding analysis, no account has
been taken of the potential contribution of eco-
nomic strength which may be expected to come
August 3, 1953 143
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 A p qyed Fo Releasg 20T/08/28 :CIA -RP58-00453R000100300010-1
from the s tetilife coun rtes or from ommunist We are the leaders in this world of ours, whether
China. When we assume aggressive Soviet inten- we like it or not, and this country must take the
tions-which we must in the absence of concrete domestic measures necessary to maintain and in-
indications of contrary objectives-the United crease its own economic health and to support and
States is confronted by a growing potential of participate in coordinated actions with other
economic power, much of which can be devoted, as countries, to help solve our economic and political
Soviet rulers wish, to aggressive adventures. problems.
Now, against this picture, we hear it proposed Without attempting to suggest what the solu-?
from time to time that our allies are unworthy of tions are, it may be useful to outline' three main
us; that they do too little for themselves; that in categories of problems, the finding of solutions to
fact we cannot afford our allies. The people sug- which is vital to us and to our allies.
gesting this view insist that they are not isola- The first problem is that of food and raw ma-
tionists; they present themselves as realists. I terials. The second is that of investment capital.
submit that the only realist, in the face of the The third-and one with which you are all famil-
international situation with which we are con- ear-is the acute weakness, or what might even
fronted today and into the future, is the man who be called he breakdown, of the trading system of
sees clearly the necessity of constantly closer re- the free world.
lationships among the free nations of the world.
This. association is indispensable to our mutual
securty and certainly vital to America's security. The Problem of Food Surpluses
While this requirement of cooperation within With respect to food and raw materials, the
the free world is generally recognized in its polit- free world is confronted by a bitter paradox. The
ical and its military forms, it appears to be less United States, without question the most efficient
evident when one considers the economic area. producer of a large range of agricultural products,
If we look at the Soviet system again for a is bewildered by mounting surplusesi of various
moment, we see a police state devoting its ener- products and naturally turns to the international
gies to the construction of the basic economic market. It needs to be stated here, of course, that
elements essential to a rapidly expanding indus- many of the surpluses that are in the headlines
trial state, with its implied military strength. today arise out of certain rigidities of the present
Certainly the free world has an equal response- agricultural program, as Secretary $enson has
bility to see that its energies are at least equally indicated.
devoted to the same purposes. Nonetheless, if we take a long view of the posi-
Our common military forces in the free world tion of the United States in the food producing
and indispensable political stability rest upon an and consuming world, it is vital to the economic
economic foundation. One of the major problems well-being. of a very important segment of our
in the field of foreign affairs confronting the economy.--and not just farmers but all those peo-
United States is to design an economic program for ple whose income to some extent depends upon the
the free world which will be an appropriate ad- handling and processing of food--that there be a
junct to the progress which has been made in the large and stable market for American farm prod-
military and political spheres. ucts abroad. It would be foolhardy to suggest
It was with this problem in mind and with the that in its present condition the free world offers
clear recognition of the responsibility for leader- such assurances.
ship which rests on the United States that the Now, the other part of this paradox is the fact
President has asked the Congress to establish a that, while production of foodstuffs has tended
commission to reassess American foreign economic to increase in various parts of the world, in no
policy and to recommend the next steps to be taken area outside the United States and Canada has
domestically and internationally.2 This study, the increase in the supply of food kept pace with
which is expected to get under way within the the increase of population. War, internal unrest,
next few weeks, must be completed early next year transfer of resources to industrial activity-all
in time for consideration and action by the Con- of these have contributed to the inadequacy of
gress early in 1954. food production measured against the require-
This administration is determined to examine ments of the free world. In short, food is a prob-
the patchwork of laws and regulations which now lem in the Middle East and the Far East and to
exist in our own approach to international eco- some extent in Latin America.
nomic affairs and, on the basis of this analysis, to Present or prospective inadequacy of food sup-
ply holds the threat of hunger and internal unrest.
develop a. coordinated and comprehensive pro- In other countries, especially Western Euro pe, it
gram which we hope will find some answers to the has meant increased reliance on the United States
economic questions and economic ills which con- and Canadian supplies, with a consequent major
front us and our allies. new requirement for dollars. Indeed, it has been
argued that the necessity of buying,: from the
a BULLETIN of May 25, 1453, p. 747. United States and Canada, food previously pro-
144 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For R~elea 21$8/28 Cd~qon the
duced from indigenous sources or rom it un
kets calls today for about $2 billion worth of ex- stability of the price structure for some of their
penditures over and above expenditures made in basic exports.
' t
previous periods. This $2 billion comes qui e
close to approximating the dollar gap.
What must be found then is a solution for the
free world which will see an adequate movement
of food to the countries in the free world and one
which gives assurances to this country that there
will be adequate and stable markets abroad for
the products of its efficient agricultural industry.
There is another aspect of the food and raw
material problem which must be given careful
consideration, and that might be called the re-
quirements of the United States in the first in-
stance, but of the free world as a whole, for con-
stantly increasing supplies of strategic materials.
It is well to bear in mind that the United States
is now self-sufficient in only 9 out of 38 minerals
vital to U.S. industry. The report of the Mate-
rials Policy Commission 8 prepared under the
chairmanship of William Paley forecasts even
T
greater dependency on outside sources in comin
Along with our growing need and the nee
years
.
of our allies for raw materials for the industrial
plant of the free world, there has been inadequate
new discovery, exploitation, and development of
raw materials.
Most of the needed materials come from sections
of Latin America, the Middle East, Asia, and Af-
rica, which in the past decade have been disrupted
by tides of nationalism, political unrest, and eco-
nomic instability. To the underdeveloped areas,
exploitation of natural resources frequently is
viewed as only another variety of imperialism.
Along with the problem of greater need is the
corollary problem of surpluses in world demand.
You and I are familiar with the difficulties en-
countered during the depression days with one-
crop farms. Extend that to one-crop countries
and you can readily understand the economic
chaos resulting from sharp fluctuations in world
market prices of primary raw materials. The in-
stability of prices has resulted not only in political
unrest but in inability of countries to plan their
economic development.
In recent years we are receiving more and more
suggestions from the raw material producing
countries for some sort of international system to
stabilize commodity prices. While we believe
that competition in the long run is the only force
that can make fair decisions in the field of trade,
we cannot lightly brush aside the need of the un-
derdeveloped areas for assurances on the market-
ability of their products. Confronted with a sim-
ilar situation in the United States in regard to
wheat, we became one of the principal proponents
of the International Wheat Agreement. We can-
not but take seriously this drive on the part of the
Encouragement to Private Investment Abroad
The second major problem is that of capital in-
vestment. The new administration has made
clear that it will do all it can to encourage a high
level of investment abroad by American private
enterprise. Not only the capital, but the mana-
gerial skills, technical competence, and engineer-
ing ability of American firms can have an impor-
tant impact upon foreign productivity and eco-
nomic development. The question naturally
arises as to what lengths the U.S. Government can
appropriately go in encouraging or offering incen-
tives for investment overseas by American firms.
I recently attended a meeting in Washington
called by the Secretaries of Commerce and Treas-
ury to discuss just this problem. That meeting
was attended by many of the outstanding indus-
trialists and financiers of this country. As a re-
sult of the discussion that night a committee was
formed to evaluate the problem and to see what
positive steps can be taken by this Government to
encourage such investment.
No matter how successful we may be in en-
couraging American private investment to go
abroad, this investment will be only a small por-
tion of the amounts of capital the free world
requires.
Total direct U.S. private investment abroad is
estimated today as being something in the area
of $11 billion. The vast bulk of this investment
is in Canada, the Western Hemisphere, and in
Middle East petroleum. We can anticipate that
American investment will go into industrial ex-
pansion in minerals exploration, development, and
processing. But there remain those basic seg-
ments of the free world economy to which it is
most unlikely that the private investor will be
attracted-transportation, port development, irri-
gation, water supply. The major sources of cappi-
tal for these endeavors must be indigenous. The
primary responsibility for attracting such capital
rests, of course, with the government of the coun-
try in which such potential capital resides.
There will remain an important field for inter-
nationall institutions such as the International
Bank and also for the public lending activities of
the Export-Import Bank.
But I do not wish to prejudge this question for,
as I stated earlier, it is not my intention here to
outline solutions. It is vital, however, for all of
us to recognize the gravity of this problem of capi-
tal investment and to appreciate that today there
appear to be no immediately discernible solutions
which assure us that the capital necessary for mini-
mum economic development in the free world is
available.
Lastly, we come to the most crucial issue facing
August 3, 1953 145
264593-e3Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 alit uuicea kntates in its foreign economic policy,
namely, the principal and basic weaknesses of the
free world trading system.
As you know from your analysis in the last
few days, the efficient exchange of goods and serv-
ices is one of the most important elements of an
economic system. Whatever may be the weak-
nesses of the Soviet machine, artificial barriers re-
stricting the exchange of goods and services is not
one of them. The Marxist machine determines
what it wishes to produce, decides where it will
be produced, and presumably attempts to achieve
this production with the most efficient use of basic
resources. We would all agree that any totali-
tarian machine, where decisions of this sort are
made by bureaucrats, has built into it grave in-
efficiencies which a competitive private enterprise
system does not. Nonetheless, their system is not
weakened by artificial barriers to the movement of
goods produced by such devices as inconvertibility
of currencies, multilateral exchange rates, quotas,
discrimination, and protectionism. In short,
there is no question but that the free world is not
making adequate use of its manufacturing ca-
pacity, its raw material resources, its ingenuity,
its investment-of all of its great economic
resources.
An argument one frequently hears is that the
rest of the free world is, unfortunately, devoted to
discriminating against American goods; that cur-
rency restrictions are designed to frustrate the
American exporter; that our allies are unwilling
to permit the import of American goods and that
this attitude is all the more deplorable "in view of
all we have done for them."
I would submit that there is something much
more fundamental involved in this situation than
any idle protectionism on the part of our friends
against American goods. On the other hand I
would not say that many of these restrictions do
not have some indication of protectionism con-
tained within them. But, if we are to find solu-
tions, we have got to have an accurate assessment
of the problem.
The Dollar-Gap Problem
The basic problem is simple. Our friends just
do not have enough dollars to buy the things they
would like to get from this market, or, more im-
portantly, that we would like to sell them. They
can get these dollars in only a few ways. They
can get them from, private U.S. investors, from
public institutions such as the Export-Import
Bank: or the International Bank. But investment
to be attractive must have the promise of profits,
interest, and dollars. It must, furthermore, have
the promise of eventual repatriation of capital.
Dollars can be made available through grant
assistance, as has been the case of the $40-odd
billion we have made available to the free world
since the end of World War II. We are all agreed
that this is an unsatisfactory and undesirable
means of providing dollars to our allies.
And :finally we come down to trade-imports of
goods and services. In the final analysis, it is our
purchase of goods and use of the services of our
friends, and, of course, of such collateral activities
as tourist expenditures, that these precious dollars
will be made available.
President Eisenhower has stated
security of our country is involved
the President's own words:
that the very
in trade. In
We must; trade with others or we cannot exist, and that
is the material foundation of our whole foreign policy.
Expanding trade and lessened restrictions are vital
elements in our common defense of freedom! and our com-
mon struggle for world peace.
Earlier I indicated the stake the agricultural
community had in the export market. The Ameri-
can economy as a whole has a vital interest in this
market.
In 1952 our exports amounted to over $16 billion.
This includes nearly half of our wheat produc-
tion, 2/5 of our cotton and rice production, and 1/4
of our .production of tobacco. We also export
more than 1/5 of our output of tractors. On the
other hand we are importing at a rate of less than
$11 billion a year. With the reduction of military
and economic assistance programs, we will either
have to decrease our exports or increase our
imports to bridge the gap.
This is not to say that the United' States can
solve the dollar-gap problem merely bY' a U.S. re-
duction in tariffs, simplification of customs pro-
cedures, and so forth. Our allies must also take
constructive action. They must eliminate their
own trade barriers, revamp their financial, ex-
change, and credit policies; efficient tax programs
must be instituted in those countries.' Underde-
veloped countries in need of capital must take
action to improve the climate for domestics and
foreign investment. However, the major respon-
sibility for leadership in this field is on, the United
States. As the President has stated :
Our leadership in the free world imposes upon us a
special responsibility to encourage the commerce that
can assist so greatly in bringing economic health to all
people.
Before 1 conclude, I would like to say one word
about the responsibility of American industry to
support the programs proposed by our President
in this field. All of our activities are aimed pri-
marily at our own self-benefit. This places upon
men like yourselves a responsibility to Inform the
people of this country what is at stake for Ameri-
can industry, American labor, and American
agriculture..
146
Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28
Food for East Germany
White House press release dated July 20
Following are the texts of letters exchanged by
President Eisenhower and Chancellor Konrad
Adenauer of the Federal Republic of Germany:
Chancellor Adenauer to the President, July 13
Your letter of July 10th has been conveyed to
me through Ambassador Conant. Your generous
offer to relieve the want of the population of the
Soviet Zone through immediate and extensive de-
liveries of foodstuffs has touched me deeply. This
spontaneous demonstration of humane readiness
to help, which is in the best traditions of the
American people, has caused great joy in all of
Germany and especially has given new hope and
new courage to the people in the Soviet-occupied
zone of Germany. I should, therefore, like to
express to you, in the name not only of the Federal
Government but also in the name of the entire
German people, my heartiest thanks.
It is with regret that I have learned that the
Soviet Government has refused its cooperation
in the relief action which you had planned. I
would like to request that the delivery of food-
stuffs should not as a result be withheld. On the
contrary, I wish to express the hope that the food-
stuffs may be placed at the disposal of the Federal
Government, which for its part will do everything
to make the food available in the most effective
way possible for relief of the suffering of the popu-
lation who have fallen into need as a result of the
situation in the Soviet Zone.
The President to Chancellor Adenauer, July 20
I share the regret expressed in your letter of
July 13, 1953, at the refusal of the Soviet Govern-
ment to admit the food which the United States
Government offered the East German population
in response to your appeal of July 4.2
Immediately after the receipt of Mr. Molotov's
rejection of my offer,3 I made it clear that the offer
continues to stand and that the food continues to
be available. Since it is our joint purpose to aid
the people of Eastern Germany in spite of the
obstacles which the occupation authorities of that
area have created, I have directed the Secretary of
State and the Director for Mutual Security to
place quantities of these foodstuffs at your dis-
posal for use in relieving the suffering of the
' BULLETIN of July 20, p. 67.
' Ibid.
'For texts of the U.S.-U.S.S.R. exchange of notes, see
ibid, p. 68.
CIA-RDP58-0045380001003001
people of Eastern ermany in 0e Q t available
manner.'
At the same time, we shall continue to make
clear to the Soviet Government that the offer
which was made on July 10, 1953, was motivated
solely by humanitarian impulses and that the food
is available if that Government wishes to permit
its entrance into the Soviet Zone of occupation.
U.S. Views on German Unity
The White House on July 25 released the follow-
ing letter from the President to Chancellor Konrad
Adenauer of the Federal Republic of Germany:
JULY 23, 1953
MY DEAR MR. CHANCELLOR : During the develop-
ment of the conversations between the U.S. Secre-
tary of State and the Foreign Ministers of Great
Britain and France, it occurred to me that it
might be helpful if I were to write you a letter in
amplification of the thoughts so tightly com-
pressed in the final communique.-5
It seems to me that certain definite patterns are
emerging from the situation in East Germany
and the Eastern European satellite countries-
patterns which will unquestionably have a pro-
found effect upon the future, including the pro-
posed meeting of the Foreign Ministers of the
Four Powers.
I think, therefore, that it will be useful for me
to share my thoughts with you in some detail
at this time.
Great historical developments, such as the
recent Berlin and East German anti-Communist
demonstrations, rarely have single roots. Never-
theless, I am quite certain that future historians,
in their analysis of the causes which will have
brought about the disintegration of the Com-
munist empire, will single out those brave East
Germans who dared to rise against the cannons of
tyranny with nothing but their bare hands and
their stout hearts, as a root cause. I think also
that those same historians will record your own
extraordinary steadfastness in the cause of
European peace and freedom over many, many
years.
In analyzing these recent developments, there
appear to be five points of greatest significance.
First, this eruption against Communist oppres-
' The Mutual Security Agency on July 16 announced that
4,500 tons of food would be shipped from New York City
to Hamburg, Germany, between July 17 and July 23, and
that the entire $15 million program would provide up to
50,000 tons of food. The announcement stated: "Distribu-
tion plans are being worked out by the U.S. High Commis-
sioner in Germany in consultation with the German Fed-
BULLETIN of July 27, 1953, p. 104.
eral Republic."
August 3, 1953 147
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Aroved Far 2elease 2Q01108128 : CIA-F DP 8-OO4t53R00u1P030Q010o 1s
Sion was sp aneous. now anee not o t is nrs step o ree e ec i n , the Govern-
go into any elaborate denial with you of the fan- ment of the United States will continue to lend
tastic explanation put out by Moscow that the up- the full :force of its political, diplomatic, and
rising was caused by American provocateurs. No moral support.
provocateur of any nationality can persuade There are sincere people in Germany, in the
human beings to stand up in front of rumbling nations of Western Europe, and even iii my own
tanks with sticks and stones. Such action comes country, who have come to believe that' free elec-
from the heart and not from any foreign purse. tions, and therefore the unification of Germany,
Second, this uprising was not just a momentary contradict and possibly exclude the concept of the
flash of desperation. The continuing news of European :Defense Community which has been
disorders in Eastern Germany indicates a funda- ratified by both your Houses of Parliament and is
mental and lasting determination to be fully and now before your Constitutional Court. I do not
finally free, despite long years of stern Soviet- and have never accepted this theory that the EDC
ization. and unification of Germany are mutually exclu-
Third, nowhere were the rioters "bourgeois re- sive. Quite the contrary.
actionaries" or "capitalist warmongers.' They As the three Foreign Ministers stated at the
were workers. Therefore, the martyrs who fell conclusion of their recent meeting in Washington,
before Russian Communist guns were the very since the European community corresponds to the
same workers in whose name the Kremlin has lasting needs of its members and their people for
falsely and cynically built their empire of oppres- peace, security, and welfare, it is looked upon as
sion, their farflung "workers' paradise." necessary in itself and not linked up with existing
the German Communist leaders during the event
and their actions since the event, all indicate
the complete political bankruptcy of the SED
[Soreialistische Einheitspartei Devtschlands].
Fifth, and to me of utmost significance, when
the riots developed in the Russian sector of Berlin,
the workers' chant was, "We want free elections."
In this phrase, the people clearly and simply
summed up their yearning for the alleviation of
their grievances and sufferings.
The combination of these five facts actually
forms the background for that portion of the
July 15 Foreign Ministers' communique dealing
with German unification and free elections. Ana
the communique itself, as you know, is actually the
diplomatic confirmation of your own earlier state-
ments, of my June 26 cable to you,' and most im-
portant, of the resolution of the German Bundes-
tag of June 10.
For the past many months there have been end-
less arguments and debates on both sides of the
Atlantic over the respective priorities of such
words and phrases as "unification," "peace treaty,"
"free elections," "withdrawal of occupation
troops," etc.
It has always seemed to me-and these recent
events, to me at least, clearly confirm the thought-
that there can be no solution without free elections
and the formation of a free all-German Govern-
ment, leading to unification. From that point on
can flow a logical, orderly sequence of events,
culminating in an honorable peace treaty and the
re-emergence of a new united German Republic,
dedicated to the welfare of its own people, as a
friendly and peaceful member of the, European
family of nations.
Ibid., July 6, 1953, p. 10. The cable, dated June 25,
was released to the press on June 26.
international tensions.
It has long been my conviction that the strength-
ening of the Federal Republic, through adoption
of the EDc, the contractual agreements and further
progress in the integration of Western Europe,
can only enhance the prospects for the peaceful
unification of Germany, by increasing the attrac-
tive power of this prosperous Western Germany
vis-a-vis the Soviet Zone, an attractive power
which has already been demonstrated by the
steady stream of refugees in recent months, as well
as the demonstrations which began on June 17.
This increasing contrast between Western and
Eastern Germany, the latter with its bankrupt
regime and impoverished economy, will in the long
run produce conditions which should make pos-
sible the liquidation of the present Communist
dictatorship and of the Soviet occupation.
While a future all-German Government must
obviously be free to choose the degree to which it
wishes to enter into defensive and other arrange-
ments compatible with the principles of the United
Nations, I can hardly imagine that it would seek
the path of complete and premature disarmament
in the presence of other nations still heavily
armed. I believe this is a matter worthy of seri-
ous attention. Those who in Germany believe
they can suggest an easy, safe solution through
defenseless :neutralization should carefully ponder
the true wisdom and safety of such a course.
Speaking for America, and I believe the rest of
the free world shares this view, I can say that there
has been enough bloodshed and enough misery and
enough destruction in the past 50 years to deter
any people or any Government of the West from
any ideas of military aggression. But the peace
we all so dearly seek cannot be maintained through
weakness. ]EDc will be the simplest, most unequiv-
ocal, and most self-evident demonstration of
strength for peace.
No one can foretell what the unfolding months
148 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 will bring, bfrQ~cFrII~Iai0~~11~e8:CIA-A`AfAr~n"Go7i~iCYt~itli't~ords "United
workers of Berlin's Soviet Sector and the workers
of East Germany, with the workers of Czecho-
slovakia, have started something that will have
an important place on the pages of history. May
the concluding chapter of that history record the
reemergence of freedom, of peace, and of happi-
ness.
With kindest personal regard,
Sincerely,
DWIGHT D. EISENHOWER
Current Legislation on Foreign Policy
Reorganization Plans Nos. 7 and 8 of 1953. (Foreign
Operations Administration) ; (United States Infor-
mation Agency). Hearings before the Committee on
Government Operations, House of Representatives,
Eighty-Third Congress, First Session on H. J. Res.
261 and H. J. Res. 262. June 22, 23, and 24, 1953.
219 pp.
International Wheat Agreement. Hearing before a Sub-
committee of the Committee on Foreign Relations,
United States Senate, Eighty-Third Congress, First
Session on Ex. H, 83d Cong., 1st sess. The Agree-
ment Revising and Renewing the International Wheat
Agreement. June 26, 1953. 59 pp.
An Act To provide for the transfer of price-support
wheat to Pakistan. Public Law 77-83d Congress,
Chapter 150-1st Session, S. 2112. 2 pp.
Expressing the Friendship and Sympathy of the Ameri-
can People for the People of East Germany. Report
(To accompany S. Con. Res. 36). S. Rept. 499, 83d
Cong., 1st Sess. 2 pp.
Agreement Regarding Status of Forces of Parties of the
North Atlantic Treaty. Supplementary Hearing be-
fore the Committee on Foreign Relations, United
States Senate, Eighty-Third Congress, First Session
on Status of Forces of the North Atlantic Treaty.
June 24, 1953. 89 pp.
Agreements With the Federal Republic of Germany.
Hearings before the Committee on Foreign Relations,
United States Senate, Eighty-Third Congress, First
Session on Executives D, E, F, and G (83d Congress,
1st Session). June 17 and 18, 1953. 169 pp.
Double Taxation Conventions With Belgium and Aus-
tralia. Hearing before a Subcommittee of the Com-
mittee on Foreign Relations, United States Senate,
Eighty-Third Congress, First Session on Executive
I (81st Cong., 1st Sess.), A (83d Cong., 1st Sess.), I
(83d Cong., 1st Sess.), J (83d Cong., 1st Sess.), and
K (83d Cong., 1st Sess.), Double Taxation Treaties
With Belgium and Australia. June 29, 1953. 59
pp.; Report (To accompany Executive I, Eighty-first
Congress, first session; Executive A, Eighty-third
Congress, first session ; Executive I, Eighty-third
Congress, first session ; Executive J, Eighty-third
Congress, first session ; and Executive K, Eighty-
third Congress, first session). S. Exec. Rept. 2,
83d Cong., 1st Sess. 7 pp.
Requiring "United States of America" on Shipments
Abroad. Hearing before the Committee on Inter-
state and Foreign Commerce, United States Senate,
Eighty-Third Congress, First Session on S. 1962 A
Bill To Require the Marking of the Containers of
Correction
BULLETIN Of July 6, 1953, page 12, second column,
29th line, the figure should read : "3.45 billion
deutschmarks."
States of America," and For Other Purposes. June
12, 1953. 33 pp.
Foreign Trade in Agricultural Products. Hearings be-
fore the Committee on Agriculture and Forestry,
United States Senate, Eighty-Third Congress, First
Session on Agricultural Exports and Imports and
Their Effect on Farm Price Programs. Part 4, Dairy
Products. May 4, 5, and 6, 1953. 122 pp.
Supplemental Appropriation Bill, 1954. Report (To ac-
company H. R. 6200). H. Rept. 762, 83d Cong., 1st
Sess. 47 pp.
Expressing the Sense of the Congress That the Chinese
Communists Are Not Entitled To and Should Not Be
Recognized To Represent China, in the United Na-
tions. Report (To accompany H. Con. Res. 129). H.
Rept. 768, 83d Cong., 1st Sess. 4 pp.
Mutual Security Act of 1953. Conference Report (To ac-
company H. It. 5710). H. Rept. 770, 83d Cong., 1st
Sess. 21 pp.
Customs Simplification Act of 1953. Report (To accom-
pany H. R. 5877). H. Rept. 760, 83d Cong., 1st Sess.
48 pp.
Supplemental Hearings on Departments of State, Justice,
and Commerce Appropriations for 1954. Hearings
Before the Subcommittee of the Committee on Appro-
priations, United States Senate, Eighty-Third Con-
gress, First Session on H. R. 4974 Making Supplemen-
tal Appropriations for the Departments of State, Jus-
tice, and Commerce for the Fiscal Year Ending June
30, :1954. 42 pp.
Wheat for Pakistan. Hearing Before the Committee on
Agriculture and Forestry, United States Senate,
Eighty-Third Congress, First Session on S. 2112 A Bill
To Provide For the Transfer of Price-Support Wheat
to Pakistan. June 12, 1953. 64 pp.
Foreign Trade in Agricultural Products. Hearings Before
the Committee on Agriculture and Forestry, United
States Senate, Eighty-Third Congress, First Session
on Agricultural Exports and Imports and Their Effect
on Farm Price Programs. Part I, General. April 9,
10, 14, 15, 16, 17, 20, 21, 22, and 27, 1953. 284 pp.;
Part 2, Grains. April 23 and May 8, 1953. 80 pp.;
Part 3, Cotton, Livestock, Wool, and Poultry. April
24, 30, May 1, 6, and 8, 1953. 179 pp.
Overseas Information Programs of the United States. Re-
port of the Committee on Foreign Relations Pursuant
to the Provisions of S. Res. 74, 82d Congress, 2d Ses-
sion, and S. Res. 44, 83d Congress, 1st Session, Accom-
paniied by an Appendix Containing Staff Studies Pre-
pared For the Committee. S. Rept. 406, 83d Cong..
1st Sess. 208 pp.
Yugoslav Emergency Relief Assistance Program. Letter
From the Secretary of State Transmitting the Ninth
Report to the Congress of the United States on the
Administration of the Yugoslav Emergency Relief
Assistance Program, From December 16, 1952,
Through March 15, 1953, Pursuant to Section 6 of
Public Law 897, Eighty-First Congress. H. Doc. 193,
83d Cong., 1st Sess. 2 pp.
Trade Agreements Extension Act of 1953. Report (To
accompany H. R. 5495). S. Rept. 472, 83d Cong., 1st
Sess. 7 pp.; Hearings Before the Committee on Ways
and Means, House of Representatives, Eighty-Third
Congress, First Session on H. R. 4294 A Bill To Ex-
tend. the Authority of the President To Enter Into
Trade Agreements Under Section 350 of the Tariff
Act of 1930, As Amended, and For Other Purposes.
April 27, 28, 29, 30, May 1, 4, 5, 6, 7, 11, 12, 13, 14, 15,
18, and 19, 1953. 2028 pp.
Authority To Utilize Agricultural Commodities. Message
From the President of the United States Transmitting
Recommendations for Legislation Which Would Give
Authority To Utilize Agricultural Commodities Held
by This Government To Meet Needs Arising From
Famine Or Other Urgent Relief Requirements. H.
Doc. 202, 83d Cong., 1st Sess. 2 pp.
August 3, 1953 149
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
Administering the Pacific Trust Territory
Statement by Frank E. Midki fj
Special U.S. Representative to the U.N. Trusteeship Council'
I should indeed be gauche were I to begin my
remarks except by acknowledging the benefits I
have received from this conference on the adminis-
tration of the Trust Territory of the Pacific Is-
lands. I have been sincerely impressed with the
broad knowledge of members of the Council in
trusteeship administration generally. One also is
much impressed by the accurate acquaintance re-
vealed by all members in the detailed and exces-
sively factual Administering Authority's report
covering our past year's work.2 As I indicated in
my introductory statement and as it has been
borne out fully in the discussions, of prime value
to us has been the firsthand observations of the
United Nations very competent Visiting Mission.
The Council has provided a full discussion of
the mission's findings. The penetrating questions
of the Council have aided in pointing up aspects
of administration that the members-so many
themselves with distinguished records in admin-
istering dependent areas-have found to be im-
portant and worthy of special attention. I there-
fore acknowledge with gratitude my indebtedness
to the Trusteeship Council for its constructive
handling of the report of the Administering Au-
thority and for the many sound suggestions made
for improving administration and further bene-
fiting the people of Micronesia. It is evident that
the service being rendered by the United Nations
through the eminent members of this Trusteeship
Council is of great value to the many areas under
the Council's cognizance.
I should like to comment on some of the points
that have been made by members of the Council.
My opening statement was directed specifically to
many of these points and I request that without
its repetition in this speech, my statement be
1 Made in the Trusteeship Council on July 2 and re-
leased to the press on the same date by the U.S. Mission
to the U.N. For Mr. Midkiff's opening statement to the
Council on this subject, see BULLETIN of July 6, 1953, p.
22.
, U.N. doc. T/1047.
drawn upon where appropriate by the drafting
committee and used in the committee's task of for-
mulating the Council's report on conditions in the
Trust Territory of the Pacific Islands. It may be
useful for me, however, at this time to expand on
that statement in certain items and to add to it
where new points have been raised.
I have been gratified that in the field of political
development tie members of the Council in gen-
eral have expressed agreement with the line of
approach being used by the Administering Au-
thority in the territory and which the Visiting
Mission so competently analyzed and reported
upon.
In looking at the situation in the territory, I
suggest that two differing' ways of approaching
political change amongst the people of the trust
territory might be possible. First, we might urge
haste and strive for a violent or cataclysmic and
dramatic coup in which the old ways of governing
by the system of "the extended family" would be
overthrown and a new Western-type, democratic-
political system imposed in place thereof. It is
pertinent to note, however, that this course often
is fraught with unhappiness for the people them-
selves. It is a course responsible men adopt only
when conditions under old customs and regula-
tions have become unduly oppressive and restric-
tive. Such oppressive conditions do not obtain in
Micronesia ; actually there long has been a family
form of control and self-government, with a
healthy and happy people living under it.
The second way of political advai.icel is funda-
mentally different from the way described above.
It involves study and observance of the;situation,
the needs, and the factors underlying the existing
system as worked out by the people themselves
over untold and long generations to meet the con-
ditions imposed by their environment. And we
may observe that such a system in Micronesia has a
clearly reliable feature; namely, it works. Thus
while it is not the policy or objective of the admin-
istration to foster and more solidly entrench the
150 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
Micronesian Representative Addresses
Trusteeship Council
Mr. Midkiff, High Commissioner of the Trust Ter-
ritory of the Pacific Islands, on June 23 introduced
to the Trusteeship Council Mrs. Dorothy Kabua of
Majuro, Marshall Islands, first indigenous inhabitant
of the territory ever to attend a Council session.
Speaking in Marshallese, with her son Amata inter-
preting, Mrs. Kabua made the following statement:
We bring you greetings, over a distance of about
7,000 miles, from our people of the Marshall Islands
in the Trust Territory of the Pacific Islands. We
wish also to express our gratitude for the oppor-
tunity to be present with the U.S. delegation at this
great assembly of nations. It is a unique experience
.in our lives and it is, we feel, a landmark in the
history of the Micronesian people.
It is only in the last hundred years that our people
in the Trust Territory have been aware of any world
other than their own islands. Being here today in
this great city and meeting here in this living symbol
of the brotherhood of nations will increase to the
full our awareness of the world around us and will
help us to see our place in that world.
The Micronesians are a happy island people who
seek, even as you do, life, liberty, and the pursuit
of happiness. Because our life is simple, perhaps
we enjoy a greater measure of happiness than you
do. However, as in the present world no group of
people can remain isolated and unaffected by the
rest of the world, we are working hard to establish
ourselves alongside the rest of mankind. To this
end our efforts toward economic self-sufficiency are
uppermost in importance in our minds so that we
might be a burden to no man and so that we might
feed and clothe ourselves through our own talents
and efforts.
The U.S. Trusteeship Administration is helping
us toward that end, and we are grateful for all
that they are doing for us and for aiding us in
establishing ourselves firmly in the brotherhood of
free nations.
Of equal importance are our efforts toward
greater self-government which, with the guidance
and assistance of the U.S. trusteeship administra-
tors who are doing their utmost to encourage us
toward this goal, promises to be a reality in the
not-too-distant future.
May we say again that we thank you for the
privilege of being here with you, and that we are
proud to stand with you as a very small but equally
peace- and freedom-loving people.
"extended family" type of controls and govern-
ance, neither is it the intention to destroy these
controls that keep the communities happily and
soundly functioning until we are quite sure they
are being effectively replaced by something just
as good or better.
We may say, under the second approach, that
while changes may be made to advantage, these
changes should be made only in an evolutionary
manner and over a period of years in response to
the felt needs of the responsible people themselves,
including their competent leaders, and after the
proposed new ways have been tested properly, in
connection with and over against established cus-
tom, to see whether or not the new ideas are sound
in the circumstances.
This second method recognizes two essential
factors : one, that there is no progress without
change; and two, that in a position where life it-
self depends so intimately upon established con-
trols set up after long experience, it is unwise to
"destroy the ancient landmarks" without offering
in their place an equally valid system that will
meet the needs of island society. Political ad-
vancement in this manner would promote progress
under a, system of checks and balances which
should insure sound progress. In the trust terri-
tory, therefore, the latter procedure would mean
approval of change with tactful pressure and en-
couragement by the Administering Authority, as
suggested by one member of the Council, with
caution in relation to destruction of existing com-
petent and indigenously developed controls. This
is our policy. We are attempting through edu-
cation-.using the word in its broad sense-to pro-
mote the understanding and acceptance of new
ideas and practices, all of which are to be adapted
by the Micronesians to their own particular needs
and desires.
It is suggested that the idea of the family or ex-
tended family be used in thinking of Micronesian
society. The idea of "tribe" and tribal law tends
to mislead thinking here. The groups usually are
small, and are restricted to locally controlled areas
above the beaches or on small islands. All mem-
bers are in constant touch with each other-family
style.
Saipan Advisory Council
On the specific issue of the development of a
Saipan Regional Advisory Council, regarding
which I have promised further information, I
should like to clarify the statements appearing in
the report presently before the Council and in the
report of the previous year. The proposed char-
ter submitted in 1950 for a governmental body in
the Saipan District had called for the grant of
legislative authority to that proposed body. The
proposal as presented was to endow the people of
Saipan with the power over all the Marianas (ex-
cept Guam), but it did not provide for adequate
representation from the islands other than Saipan.
It was the opinion of the responsible administra-
tors that such a grant of legislative authority
would be beyond the political capacity of the peo-
ple and that the pro osed council was not in cer-
tain respects properly set up.
The proposed charter was therefore subjected to
reconsideration. At that time, in August 1950,
the organic act for Guam was passed and a change
was made on Guam from a bicameral to unicam-
eral legislative body. This unicameral legislature
has operated with effectiveness on Guam and such
had been noted by the leaders of Saipan. It was
thus, I believe, that the proposal for a unicameral
August 3, 1953 151.
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved Fbor Release 200,1/0t8/2h8 A-RDP58-00453Rt000100 10-1
body in Saipan came a out an as a resu o w ichCIsu stance even ough t e000orm o
arose the present problem of satisfying the de- may be modified.
sires of outer islands in the Saipan District for
representation in the advisory body sufficiently
large to insure that these smaller islands would
not be a voiceless minority in comparison with the
island of Saipan itself. Here again, if haste is
avoided, it is believed the whole matter will be
worked out in due time. The people at present
cannot be said to be held under an oppressive gov-
ernment while they are working on the problem.
I also promised information to the Council re-
garding which municipalities in the territory still
have appointed magistrates. I find that there are
appointed magistrates in Ponape in the munici-
palities of Net, Sokaze, U, Metalanim, and Kiti;
and in the Truk District on the islands of Oneap,
Pis, Satawan, Magur, and Tamatam. It is my
belief that careful review of these cases will reveal
situations in most cases in which there are good
and sufficient reasons for permitting the people
to continue their hereditary chiefs also as magis-
trates (as in the very small islands) or to appoint
magistrates where the hereditary chiefs may not
qualify or where elections are not yet practical.
These cases will be studied at once.
As for the number of cases in which the magis-
trates of municipalities also serve as judges, I find
that there are 16 in Truk, 5 in Ponape, 10 in Yap,
and 4 in the Marshalls.
In both of these situations, one, where the magis-
trates are appointed, and, two, where there is the
combination of executive and judicial functions in
the magistrates, the Administering Authority, in
accordance with our basic philosophy, will wel-
come and encourage change just as rapidly as the
people in those municipalities are ready and able
to adjust to elected magistrates in the one instance
and to the independent exercise of judicial func-
tions in the other. Without willingness of the
people to accept and recognize the relocation of
authority that would thus be brought about, a
rapid change to new ways well might be more
harmful than beneficial in certain basic factors of
effective self-government; namely, respect for and
observance of authority, and the enforcement of
law.
The fact that. over the period of a few years the
great majority of the municipalities (97 out of
117) have already elected magistrates and have
achieved a separation of executive and judicial
functions is in itself evidence that acceptance of
democratic procedures has been and is being en-
couraged by the administration. It will be noted
that at the time of the annual report there were
86 elected magistrates, whereas there has been a.
gain of 11 since that time. This is a large majority
of the total. Actually, as men experienced in ad-
ministration of dependent peoples know, there is
an inevitable variation amongst municipalities in
the degree to which the people absorb changes in
government
It is the; policy of the United States to replace
Americans in the administration with ~nhabi.tants
of the territory just as rapidly as qualified people
can be developed This has been a basic principle
of the United States in all of its territorial admin-
istrations and we are following it in the trust
territory.
I spoke in my opening statement of the work of
the training specialist who is establishing a pilot
project in Kruk to accelerate the training of Micro-
nesians f'o:r positions in the administration.
The report under examination shows 305 trained
Micronesian medical personnel. It shows 331
trained teaching personnel in addition to whom
there are indigenous elementary-school suyiervi-
sors. All municipal and all district court judges
are Micronesians. Twenty-one special Microne-
sians assist the High Court. All court recorders
and other court staff personnel are Micronesians.
The report also shows 143 Micronesian supervi-
sors, clerks, and technicians. In addition, there
are Micronesian administrative assistants, ac-
countants, and others. This I think is good rec-
ord for the few years of our responsibility for the
trust territory.
It is very encouraging to observe the wisdom
and experience expressed by the members of the
Council in connection with the necessary relation-
ship between political stability of government on
the one hand and economic stability on the other
hand. Development and evolution politically
would seem necessarily to walk hand-in' hand with
development and evolution economically. The
point has been stressed that the Micronesian
people-after the rather turbulent set of experi-
ences with the Spanish, the Germans,', the Japa-
nese, the preparations for war and the devastations
of war, and now with the Americans-these people
are entitled to all guaranties possible; that they
will have continuity of government and of peace
in the future. It may be mentioned that continu-
ity of government depends also upon not too tur-
bulent, but a gradual and evolutionary change in
the form of government, for it may hardly be said
to provide for stability in government should the
administration attempt to undermine existing con-
trols and the "extended family" set-up of govern-
ment in the communities, unless there are worked
out by the people themselves substitutes and differ-
ent forms of controls and government. This ob-
servation merely points up beliefs voiced by several
members of the Council during the past few days,
and it would seem to express a point of view that
the administration constantly must bear in mind.
The problem of the location of the headquarters
of the administration of the trust territory has
been raised by many members of the Council.
152 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved
Rather than review the points brought out in the
questioning period, I should like to assure the
Council that the decision on this matter, as one
representative suggested, will be made so as to
achieve the maximum administrative efficiency.
Recognition will also be given to the implica-
tions of the decision as to the site of the head-
quarters on the progressive assumption of admin-
istrative responsibility by the Micronesians, al-
though I would suggest that this point is of a long-
range nature and will not be of decisive importance
for some time insofar as headquarters staff func-
tions are concerned. This is particularly so since
a number of departments on the High Commis-
sioner's staff have been or are being located either
in the trust territory or on Guam. Wherever staff
personnel may be located, they continually will
have to take long trips to make contact with the
various districts. During most of their time they
will be absent from a central headquarters. This
is inherent in the geography of this trust territory.
The problems must be solved in the field to a large
extent.
Continuation of Island Trading Company
Virtually all members of the Council have com-
mented upon the desirability of continuing the
Island Trading Company or of giving attention
to plans for the satisfactory transition of commer-
cial activities in the event of its termination. Let
me assure the Council that the importance of these
matters is appreciated by the Administering Au-
thority. The continuation of the Island Trading
Company for one or more years is presently under
consideration. I have personally conferred with
district administrators and their staffs and also
with the Micronesian leaders themselves concern-
ing this problem. We also have been giving atten-
tion to defining the problems that would arise as
a result of the company's termination and to de-
vising solutions to those problems. The Island
Trading Company, as I believe members of the
Council appreciate, has been operated solely in
the interests of the inhabitants of the trust terri-
tory without thought of profit to anyone else. If
it is continued the operation will be on the same
basis. Whenever it is terminated, every effort will
be made to insure the continuation of commercial
activities on the same basic principle-to wit, in
the best interests of the inhabitants.
The administration is aware of the need of as-
sisting any Micronesian successor to the Island
Trading Company with capital, managerial. as-
sistance, and marketing and purchasing services.
The Island Trading Company is not a monopoly,
except in the field of marketing copra. Whatever
authority it enjoys is used entirely for the benefit
of the Micronesians-and no one else. At pres-
ent, there are Micronesian firms in each district
which are being encouraged to expand and which
are, in fact, now handling over halt or the LrUSL
territory's trade.
Perhaps I should mention, as a point of clari-
fication, that the Island Trading Company and the
Copra Stabilization Fund, while interrelated to
the extent that the Island Trading Company acts
as agent of the Copra Stabilization Board in buy-
ing and selling copra, and they are presently mu-
tually beneficial, nevertheless they are separate
operations. The continuation of the Copra Sta-
bilization Board may be possible if a suitable suc-
cessor to the Island Trading Company can be
devised and placed in operation.
Also I should clarify the point that the eco-
nomic development activities in which the Island
Trading Company at one time engaged, have been
relocated since the preparation of the annual. re-
port under examination and are now carried on
with other administration funds. These activi-
ties, therefore, would not terminate with the
company.
Another subject upon which virtually all mem-
bers of the Council and the Visiting Mission have
urged action is the settlement of currency and land
claims in the territory. I touched upon these sub-
jects in my opening statement. The Visiting Mis-
sion and members of the Council noted on the,
part of the people a lack of understanding of the
administration s program for settling land claims.
I might point out that until recently the efforts
of the land claims and title personnel were con-
centrated in Saipan, and now that these efforts
are being extended to, the other districts, there
should result an increased understanding by the
Micronesians of the land settlement program.
Certainly the point is well taken that every effort
should be made to give a clear explanation of the
policies and program. This we shall undertake.
All public-domain land is held by the government
of the trust territory for the benefit and use of
the Micronesians.
Again for the record may it be recalled that
while. 434 square miles of land is still designated
"public domain," none of the trust territory pub-
lic domain taken over from the Japanese is with-
held from use by the Micronesians if this area is
suitable for use or residence, except small areas
needed as sites for offices and for strategic use of
the Administering Authority, for all of which
compensation is being arranged. The very great
percentage of this public-domain land is in forest
reserve and steep slopes. All of it that is arable
is now being put to use by the Micronesians or by
agricultural experiment stations for the Micro-
nesians, and all Micronesians who wish land to
use are supplied. The Administering Authority,
that is, the U.S. Government, except for strategic
purposes, does not benefit in the slightest by any
public domain of this trust territory. It will be
recalled that at the time of the annual report ap-
proximately 200 cases had been settled whereas
at the time of the Visiting Mission's report 434
153
August 3, 1953
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 cases wee rA gqvved dFor Releadse 2d0Q1/.Q8I28 : CIA-RDP58-00453R000100300010-1
n as etermine a n eci e upon Bikini, it is hoped that final and happy solutions
for settlement. f 01 ' b1
l
Agricultural Development
I endeavored to stress in my opening statement
the importance which to date has been placed upon
agriculture. I would hope that the reorganiza-
tion of our agricultural personnel which I men-
tioned in that statement largely will meet the need
pointed out by the Visiting Mission for a sepa-
rate Department of Agriculture. I am by no
means adverse to organizing agriculture as a sep-
arate department, but possibly the program we
now have adopted will satisfy the requirements of
our situation.
The Visiting Mission and the members of the
Council very properly have stressed the necessity
for improving agriculture both from the stand-
point of abundance for subsistence and also for
the possibilities of exports to exchange for trade
goods. A detailed and approved agricultural
program has been drawn up since the Visiting
Mission made its study. This includes a thorough
land-use survey, stepped-up efforts in control of
the rhinoceros beetle, improved quarantine regula-
tions and enforcement, improvement of genetic
strains of coconuts and livestock, and improved
husbandry of plants and animals.
Our major pest is the rhinoceros beetle which
has been held localized to the Palau Islands. The
scolia wasp, a predator of the beetle in Africa, has
been introduced, but the results so far seem nega-
tive. The trust territory employs a qualified
entomologist and an assistant to him. These men
are conducting a program of clearing out fallen
and decayed coconut trees in order to destroy the
beetles' breeding places. These trees were felled
by war bombing in nearly all cases. The trust
territory will cooperate in the South Pacific Com-
mission's project to control and eradicate the
beetle. Quarantine regulations are in force to
prevent spread of the beetle to other areas outside
of Palau.
Planting of coconuts in areas overlaid with con-
crete will be further investigated. Some steps
already have been taken in this regard.
As stated during the discussions, the necessity of
preserving land for future agriculture will deter-
mine whether or not further ruining of phosphates
and bauxite will be allowed.
Every effort will be made to decrease depend-
ence upon imported foods.
Agricultural development is indeed basic to the
economy of the territory and we shall continue to
give it vigorous emphasis. Due to limitation of
funds we have to avoid creating an imbalance in
relation between expenditures on agriculture and
expenditures on other essential programs in the
territory, including health and education.
In reference to the desires of the people of
err pro ems wi
l be available before the next
annual report. Studies have been in progress to
this end.
The suggestion was made by one member of the
Council. that there should be developed a, coor-
dination of all shipping facilities available to the
territory in order to make it economical to lift
regularly all the produce that can be: made avail-
able. It now is believed that with the addition
of the second large cargo vessel to the trust terri-
tory service there will be ample shipping capacity
to handle the products of the territory. All of
our vessels, I should explain, since the point has
not before been brought out, are scheduled by the
Pacific Micronesian Lines, Inc., opera tors of the
vessels, in consultation with the executive officer
on the H'iigh Commissioner's staff. ;The Pacific
Micronesian Lines, Inc., is a corporation created
for this purpose. It is a subsidiary of the Pacific
Far East. Steamship Company. The trust ter-
ritory executive officer is now locateo on Guam,
where he can work in close coordination with the
Pacific Micronesian Lines, which also has its
offices on Guam.
Before leaving economic matters, I' should like
to say that I was unaware the Council had not
been informed of the economic surv
made in 1.946 by the U.S. Commercial
This survey has been produced in only a limited
number of copies because of its size, but a summary
of the report is available and I shall have a copy
sent to the U.N. Library.
Several members of the Council have noted that
there is still room for improvement in medical
and educational activities on the outer islands of
the various districts. The problem of serving
these outer islands is a difficulty that constantly
troubles us. We hope that it will be, materially
improved when schooners are available in each
district so that they will be able to rnmake longer
and perhaps more frequent field trips.' Our con-
tinuing program for education of Micronesian
medical and education personnel will also help
materially.
Public Health Services
At each of the six district hospitals there are
well-qualified American or European doctors and
nurses. These doctors also make regular field
trips to the outer islands.
On the outer islands there are Micronesian
medical practitioners who have been trained on
Guam or at the Central Medical School in Fiji.
There are also Micronesian nurses at the district
hospitals who have been trained on Gr.}am, in the
district hospitals, or at Truk.
No person in the trust territory :is refused medi-
cal treatment because of inability to pay. We
are experimenting with a system of token pay-
6y that was
Company,
Company.
154 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Releasef 001/08/28 : CI/-t e s 5e~-0g4gMa~1cQW A T territory
ments for medico services because one o e asic mee
principles and foundations of self-government is for their life in the islands. Due to budget limita-
the acceptance of responsibility for governmental tions, it is difficult at this time for me to be opti-
functions, whether they be political, social, eco- mistic regarding an immediate expansion of see-
nomic, or educational in nature. The charges, ondary-school facilities in the territory or the
however, are nominal and are not now designed establishment of a normal school for increased
to support the services provided-as our budget specialized teacher training. One factor that well
will testify. If, however, a person cannot pay may be considered in increasing secondary-school
these nominal charges, he is nevertheless provided attendance is the ability of the territory adequately
medical care. to utilize in its economy and administration the
In this connection, I should like to say that the graduates of these schools.
work of the medical-survey vessel, the Whidbey I am opposed to any rationing of education.
has not been lost. This vessel, which operated Nevertheless, with decided budgetary limitations
from 1948 to 1951, visited every district and com- and many needs of the territory to be filled, we
pleted medical and dental examinations of about cannot afford so to emphasize education that other
75 percent of the, population. Health records for needs are not taken care of and further, to the
each individual were opened at the respective dis- extent that graduates who have anticipated in-
trict centers, and the data for each person so ex- creased monetary return for their services in the
amined were placed on an individual card. These community as a result of their education, are
cards are now used at each district center for ref- merely disillusioned. Probably education bas-
erence purposes. ically should be for the purpose of improving the
In the opening statement which I originally ability of young people to do the things in their
prepared, I had a description of a new health or communities which they will have to do anyway.
diagnostic schooner which we have readied to op- Nevertheless, it is well known that there is a strong
erate in the trust territory. This vessel would correlation between graduating from high school
continue the operations which the members of the and dissatisfaction with the so-called lowlier op-
Council found were so effectively carried on by the portunities afforded by a community. The Coun-
S. S. Whidbey. Under the stringent plan of econ- cil, I hope, will be patient with us if we weave
omy which confronts the administration due to a into our consideration as one of the basic factors
cut in Federal appropriations, reductions are con- this latter practical aspect.
templated in several activities. These reductions
were chiefly in the field of new construction which
was to be practically entirely eliminated, in
"housekeeping services" which would be drasti-
cally reduced, and, unfortunately, also even in the
more important services including education and
health. Because of the reductions, some im-
portant personnel necessarily were dispensed with
and it has been necessary to plan to lay up the new
diagnostic ship until we see whether or not we
can afford to operate it. For this reason, I regret-
fully withdrew the, section of my report which de-
scribed our new diagnostic ship. The Council
may rest assured that an activity of this sort is
receiving priority consideration and it is hoped
that we may be operating the ship in the not too
distant future through savings in other lines.
I should be remiss were I not to take this oppor-
tunity to express a debt of gratitude to our friends
in Fiji for the work that has been done at their
Central Medical School at Suva. The young men
being trained under those auspices are rendering a
type of service to their people that could not be
expected of foreigners. We can only say that we
plan to increase the number of native medical
practitioners, native nurses, and sanitarians in our
trusteeship.
It is pleasing that members of the Council and
the Visiting Mission, as well as UNESCO, have ex-
pressed their general approval of the revised focus
of our education program in order that it may
"Bicultural" Education Program
We'may call our setup for education "bicultural"
in that we try to conserve the good things of the
old Micronesian culture that work so well in their
environment while at the same time offering the
good of modern culture-reading, writing, a unify-
ing language, the use of numbers, and the use of
applied science. It would seem foolish to discard
the good of old Micronesian culture.
The budget of the territory does not reflect the
money expended by the municipalities for ele-
mentary education. Supervisors of elementary
education are paid by the trust territory govern-
ment, and aid is given to municipalities when they
cannot afford adequate support of their elemen-
tary schools.
The intermediate schools and the Pacific Island
Central School are supported by the trust terri-
tory government. In the year under review, 505
scholarships providing free subsistence and inci-
dental costs were provided to intermediate school
students who came from outer islands and were
in residence at the district centers' intermediate
schools. Virtually all students at the Pacific Is-
lands Central School at Truk received scholar-
ships and subsistence.
One further point on which I was asked to give
information was on examples of comparative sal-
aries for Micronesian and American personnel. I
155
August 3, 1953
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 A~roved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
have obtai e some examples on which a compar- sibility of the family. Aged persons are particu-
ison might be possible, as follows : larly respected and cared for. Children are wel-
Position
Clerk-typist----
Agricultural Ex-
tension Agent_
Superintendent
of Elementary
Schools_______
Intermediate
School Teach-
er -----------
----------
$582.40-$811.20
$582. 40-$811. 20 $2,950-$3,430
corned and their trammg, care, and well-being are
well-defined responsibilities among the family
members.
Under such a system, the social-security meas-
ures of a monetary society would be superfluous
and, probably, also lacking in the human quali-
ties now so manifest in Micronesian society.
This may not be exactly "normal" if the norm
is taken from our modern, Western,, urbanized
situations.. It is normal to the Pacific Islands,
and the way it works results in happiness and
$1,164.80-$1,456.00 $5,060-$5,810
$1, 019. 2041, 331. 20 $5, 06045, 810
$665.60-$873.60 $3,410-$4,160
The foregoing examples show what was earlier
stated to be the case : there is considerable differ-
ence between the two pay scales. The Microne-
sian pay scale is geared to the normal range of in-
come for persons engaged in other local pursuits
such as copra production, local shipping enter-
prises, and so forth. In short, it is tied to the
economy of the area in which the employees must
live among their fellow Micronesians. The
American pay scale is determined by what is re-
quired to attract qualified people to leave the ad-
vantages of their life in the United States and to
accept employment in a remote area away from
their homes. These people are needed to help the
Micronesians advance and must be offered a sal-
ary that will be attractive. As a rule they lose
seniority in similar work and organizations where
they formerly had been employed in America.
The subsistence economy of the territory and
the "extended family" system mean that individ-
uals do not live on their salaries. They purchase
some imported foods not because of necessity but
because of desire. Their salaries, therefore, can-
not be used as a yardstick to measure their stand-
ards of living.
The "extended family" system in the territory
means that money generally is not considered as
individual property but is a contribution to the
other resources of all in the family. It also means
that there is not great divergence in monetary
earnings since work such as copra production is
engaged in as a family activity. Everyone on the
island works at it.
It will be seen therefore that the people who
long have used the custom of paying the "head
tax" probably will wish to continue this system for
some years to come, and until there seems to be
more point to setting up a graduated income tax.
This head tax permits payment in labor as well
as in cash.
Social Security
The Micronesian society itself provides one of
the, most complete and satisfactory forms of social
security. Food is readily available and the "ex-
tended, family" system insures that no aged per-
son or young child is permitted to fend for him-
self. These individuals are accepted as a respon-
adequacy.
Now, in. the field of social welfare, in contrast
with social security, the report speaks of the very
substantial sums spent by the Administering Au-
thority for health services and the promotion of
foods and nutrition.
One of the weaker features of our administra-
tion, but nevertheless an exceedingly' important
feature in connection with stability of government,
is continuity of service by qualified personnel.
Members of the Council have pointed out that we
have not yet gotten to the point where we can
assure our carefully selected employees that they
will have a true career in the area and therefore
that they must do all things necessary to make a
success of their administration and service includ-
ing immediately learning the language of the peo-
ple they work with. We are endeavoring to work
out a solution for this problem. Manifestly, those
conditions cannot be applied to all of our present
employees, because we are endeavoring to prepare
Micronesians to replace a very substantial percent-
age of our present American staff as soon as prac-
ticable. As I mentioned in my opening' statement,
we are aware of this problem and are giving it
attention. We do not have within our Federal
system of employment a colonial service, Broadly
speaking we have only the Civil-Service and
Foreign-Service systems. Neither of these is en-
tirely suited to the trust territory employment
situation. However, attention is being given to
modifications of the present system that may be
desirable in order to improve matters.
A suggestion was made by one representative
that our future reports on the administration of
the territory should give more detail as to plans
and accomplishments and be more specific in mat-
ters as they affect the separate districts or the trust
territory as a whole. We shall endeavor to im-
prove this situation in our next report.
Another representative asked for greater detail
regarding budgetary information, specifically
what comes from the general budget and what
from the local budgets. I may be able to clarify
this by explaining that the budget shown in the
report is the expenditure from the general budget
into which go the appropriated funds from the
Federal Government and those classes' of local
revenue which are designated prior to collection to
156
Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 accrue to the t1Rt'i~~r~G~lgi.2~(28 : 1-1 - -
itures of the districts are from allotments from
this general budget. We do not have budgets for
the municipalities, which collect and spend certain
local revenues. We surely can improve these
tables in our next report and we appreciate the
suggestion for a method of clarifying our
presentation.
It has been very gratifying to note that so many
members of the Council took the trouble to wel-
come Mrs. Dorothy Kabua and her son, Amata
Kabua, as members of the U.S. delegation to the
Trusteeship Council meeting. As we had ex-
pected, it was found that there is a value in having
representatives of the people of the trust territory
present to listen to the deliberations and afford
counsel and advice to the Special Representative
during his presentations.
Mr. President, I hope that these remarks may
have helped shed further light on the problems
Chiefs of Mission To Remain at Their Posts
The President said on July 7 that the following
Chiefs of Mission will remain at their posts :
William J. Sebald, Ambassador to Burma
Thomas E. Whelan, Ambassador to Nicaragua
Harold H. Tittmann, Jr., Ambassador to Peru
Waldemar J. Gallman, Ambassador to the Union of South
Africa
Fletcher Warren, Ambassador to Venezuela
Donald R. Heath, Ambassador to the State of Viet-Nam
and the Kingdoms of Cambodia and Laos
that members of the Council have raised. May I The Senate on July 6 confirmed Philip K. Crowe as
express my sincere appreciation again for the con- Ambassador to Ceylon and Roy Tasco Davis as Ambassa-
sideration I have been shown by the Council, for dor to Haiti.
the encouraging words of commendation members
have seen fit to bestow, and for the assistance that
I have received. It has been a benefit and a pleas-
ure to be here.
Administration of Pacific
Trust Territory
EXECUTIVE ORDER 10470'
AMENDING EXECUTIVE ORDER No. 10408' TRANSFERRING THE
ADMINISTRATION OF A CERTAIN PORTION OF THE TRUST
TERRITORY OF THE PACIFIC ISLANDS FROM THE SECRETARY
OF THE INTERIOR TO THE SECRETARY OF THE NAVY
By virtue of the authority vested in me as President of
the United States, it is ordered as follows :
1. Executive Order No. 10408 of November 10, 1952,
transferring the administration of that portion of the
Trust Territory of the Pacific Islands which includes the
islands of Tinian and Saipan from the Secretary of the
Interior to the Secretary of the Navy, is hereby amended
to provide that that portion of the Trust Territory of the
Pacific Islands over which administration is transferred
from the Secretary of the Interior to the Secretary of the
Navy shall include all of the Northern Mariana Islands
of the Trust Territory of the Pacific Islands except the
Island of Rota.
2. Nothing contained in Executive Order No. 10408, as
amended by this order, shall be construed to modify the
rights or obligations of the United States under provisions
of the Trusteeship Agreement for the Trust Territory of
the Pacific Islands approved by the President on July 18,
1947, or to affect or modify the responsibility of the Secre-
tary of State to interpret the rights and obligations of the
United States arising out of international agreements.
7
THE WHITE HOUSE,
July 17, 1953.
'18 Fed. Reg. 4231.
'BULLETIN of Jan. 12, 1953, p. 46.
Plans to close the consulate at Valletta, Malta, as re-
ported on January 22, 1953, have been canceled. The
consulate is to remain open. As in the past, Valletta will
not be under the direct supervision of any other Foreign
Service establishment. As of July 1, 1953, Departmental
jurisdiction of this post is to be transferred from the
Bureau of Near Eastern, South Asian and African Affairs
to the Bureau of European Affairs.
The Department of State on July 15 announced (press
release 381) that because of the need for greater economy
in the overseas operations of the Government, the U.S.
consulate at Gibraltar will be closed on July 31, 1953.
The American Embassy at London will assume consular
jurisdiction over Gibraltar as of that date.
The consulate at Tenerife, Canary Islands, . is in the
process of closing and will cease to perform consular
services as of the close of business on July 17. Consular
activities formerly performed at Tenerife are to be carried
out by the consulate at Seville, Spain.
The consulate at .Torreon, Mexico, was closed to the
public July 9, 1953, and will be officially closed July 31,
1953. The consular district of Torreon will be trans-
ferred to the jurisdiction of the consulate at Monterrey.
The consulate at Guaymas, Mexico, will be closed to the
public July 16, 1953, and will be officially closed July 31,
1953. That portion of the Guaymas consular district in
Baja California will be transferred to the Tijuana con-
sular district and the remainder of the Guaymas consular
district in the State of Sonora will be transferred to the
Nogales consular district.
Calendar of Meetings
The "Calendar of Meetings," regularly featured
in the BULLETIN'S first issue of the month, will ap-
pear in the August 10 issue.
August 3, 1953 157
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
President Warns Against Cuts dients in their military strength. We' must not
In Mutual Security Funds slow down the momentum of strength and growing
Y unity.
White House press release dated July 23 I realize that these military assistance appro-
The following letter was sent by the President priations involve a substantial question of judg-
to Styles Bridges, chairman of the Senate Com- ment as to the necessary amount of ead time"
mittee cn Appropriations, on of 22: that must be allowed to permit delivery of equip-
ment on schedule in the future, and that this lead
Dr-AR MR. CHAIRMAN : I wish to bring to your time allowance has an important effect in the
urgent attention my deep concern with the Mutual amount to be appropriated in any one year. I
Security appropriations now before you for con- know from first-hand observation that the lead
sideration. time required in almost every case-the building
This program and these appropriations directly up of a division in Turkey, or a jet squadron in
involve the security of our own Nation. The pro- Norway, or an armored unit in Frances--has been
gram is specifically directed toward strengthening a very long one. The emphasis in our program
the collective security of the free nations-in which on major items of equipment, such as aircraft and
the safety of our Nation is inescapably involved. ships, and the volume of our very important off-
The sums requested were carefully worked out in shore procurement require a relatively large
connection with, and as an inseparable part of, amount of lead-time financing. This necessary
our entire security program comprising the U.S. equipment-pipeline accounts for the large
military forces and the Atomic Energy Commis- amounts of carry-over funds in this program, as
sion. By strict rescreening, they were reduced reflected in my request.
one-third from those requested in the budget of I have requested these funds only toy meet dem-
the outgoing administration. onstrated military requirements including only
Our country must exercise constructive and essentials for forces that our allies are now in
courageous leadership, for its own sake as well as process of raising, training, and maintaining to
for the cake of the other free nations. Invariably, receive this military equipment. The responsible
if leadership falters in the face of grave danger in members of this Administration have proven their
a complex situation, the result is disastrous. The alertness in identifying possible savings; we have
amounts now in the Mutual Security Program reported these savings to the Congress, and we
have already been reduced and vigorously re- have made full allowance for them in ur request.
screened ; deep cuts will certainly be received, on This Administration will continue to eercise that
both sides of the Iron Curtain, as evidence of same care in the management of fun s, and will
faltering. take every advantage of opportunity to economize
As you know, I have never taken the attitude in the use of funds with which they ar e entrusted.
that an exact dollar in this program marks the I wish also to emphasize the importance of eco-
difference between success or failure. But it is nomic and. technical assistance for the'', Near East,
my conviction that grave consequences would fol- for India and Pakistan, for Latin Aiierica, and
low from a major cut below the requested amounts for the Par East, where it is vital that the people
carefully scrutinized and unanimously approved see evidence of improved conditions of iving flow-
by my key advisers, including the Secretary of ing from freedom and independent sovereignty as
State, the Secretary of the Treasury, and the Sec- contrasted. to totalitarian methods. And I place
retary of Defense, as well as the Director for great value on the work of the United Nations
Mutual Security. International Children's Emergency Fund, with
The funds requested for military assistance are its cooperative approach by many nations in the
indeed large. They are large because that is the interest of children of many areas of the world,
size of the threat before us. They are large be- and on the related United Nations Technical As-
cause the implements of military strength are not sistance Program, which brings to the people of
cheap. the underdeveloped areas concrete evidence that
It must be remembered, however, that our funds the United Nations is actively assisting their quest
are exceeded by much larger funds expended by for economic progress. These prograiis, many of
our NATO and other allies themselves. Our tanks, which require only modest amounts o1 money, are
planes, ships, and ammunition are essential if we an integral part of our program for America's
are to take advantage of the readiness of other security.
nations throughout the world to join together with This is a program for building strength. Evi-
us in a firm posture of strength. Across the dente is beginning to appear in many parts of
world-from the impressive buildup of military the world. of the success that comes from a firm
strength in NATO, to the bitter fighting against foreign policy backed by growing strength and
Communist forces in Indochina-we have allies unity on the part of the free nations. ! This, of all
who rely on us to provide certain missing ingre- times, is not a moment to hesitate. It is, above
158 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 : CIA-RDP58-00 3RQQ01Q0}30OA10-1
all, a time to make more strong and effective our largely stilled. at issatis ac ion will be re
rove
f '1 t
ment to help speed the momentum of their
growing strength.
Sincerely,
Disposal of Government-owned
Synthetic Rubber Plants
Following is the text of a letter which Secretary
Dulles sent to Homer E. Capehart, chairman of
the b"enate Committee on Banking and Currency : 1
JULY 20,1953
DEAR SENATOR CAPEHART : On June 26 Assistant
Secretary of State Morton wrote to you in support
of S. 2047, a bill to authorize disposal of the Gov-
ernment-owned synthetic rubber plants. I am
personally writing to you at this time in order to
reemphasize the importance to our foreign rela-
tions of passage of this legislation.
Natural rubber is the life blood of several
friendly countries in South and Southeastern
Asia. It is vital to Malaya, where a bitter and
bloody struggle is being fought against Commu-
nist-inspired bandits. It is vital to Indonesia, a
newly independent country whose economic prog-
ress and political orientation are of great concern
to the United States. It is important to Thailand
whose troops have fought valiantly in the cause of
the United Nations in Korea, and to Vietnam, a
country at grips with armed communism.
What we do in rubber is to a large extent the
standard by which these countries measure the
professions and the actions of the United States.
So long as the United States Government owns and
operates synthetic rubber plants there will remain
a source of friction between these countries and
ourselves. They are convinced that Government
operation of these plants means subsidization and,
therefore, unfair competition with natural rubber.
On any other assumption they find it difficult to
understand why the United States, the champion
of free enterprise, should maintain a Government
monopoly of synthetic rubber. They say they are
prepared to meet the competition of synthetic rub-
ber privately produced, but are reluctant to pro-
ceed with investment in replanting and normal ex-
pansion so Ion as they are faced with the risk of
arbitrary production and pricing policies on the
part of a Government-owned industry.
At recent international meetings, representa-
tives of both the previous and present administra-
tions have assured these countries that a plan for
disposal of the synthetic rubber plants was being
prepared and that this Congress would be urged to
act on the disposal legislation at this session. In
the light of these statements, the many expressions
of dissatisfaction with our rubber policy have been
vived and multiplied if Congress ai s o app
disposal legislation.
I hope very much that the legislation reported
by your committee will be acted upon favorably by
the Senate. Failure of the legislation at this time
would reintroduce a source of friction and suspi-
cion into our relations with an area that is of great
political and strategic importance to us anc the
Sincerely yours,
JOHN FOSTER DULLES.
Use of Surplus Agricultural
Commodities for Foreign Aid
Statement by Samuel C. Waugh,
Assistant Secretary for Economic A fjairs 1
The Department of State favors the passage of
S. 2249, which has been introduced by Senator
Aiken. This bill provides the authority that the
President requested of Congress in his message
which was communicated to the Senate on June
30 of this year.2
In recent years there have been a number of
famine emergencies in foreign countries. Simi-
lar emergencies are likely to arise during the
period covered by this bill. We now have un-
usually large stocks of agricultural products held
by the Government. No one wants these stocks
to go unused while human beings starve. If Sen-
ator Aiken's bill becomes law, the President would
be authorized to make use of some part of these
stocks in a constructive way to meet famine or
other urgent relief requirements of friendly na-
tions. This use would be consistent with the hu-
manitarian instincts of the American people and
would further our foreign policy.
I want to emphasize that the administration
understands that the purpose of this bill is to meet
emergencies. It is in the nature of emergencies
that programs to meet them cannot be planned in
advance. When they arise, prompt action is
needed. In the past, as the President pointed out
in his message, the Congress has been forced to
add consideration of these emergency programs to
its very heavy workload. It is also possible that
an emergency of this kind could arise when the
Congress is not in session. It therefore seems very
desirable that the President be granted the author-
ity to act promptly under these circumstances, so
that human suffering may be prevented and so that
the United States can use its resources promptly
for the aid of friendly countries.
Just as emergencies themselves cannot usually
be foreseen, all of the conditions that may exist
1Made on July 16 (press release 384) before the Senate
Committee on Agriculture and Forestry in support of S.
2249, giving the President authority to utilize agricultural
commodities held by the U.S. Government to meet urgent
emergency relief requirements of friendly countries.
' Reprinted from Cong. Rec. of July 21, 1953, p. 9656. ' BuILlcrIN of July 13, 1953, p. 60.
August 3, 1953 159
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Aepr%Yed For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
are unfor ea e. or his reason, the President is of great importance to the Department of State.
asked for maximum flexibility as to the terms I think that most of the bills that have been sub-
under which the relief may be extended. This mitted to Congress having to do with the use of
flexibility is provided by S. 2249. Since emer- Government-held agricultural stocks, have recog-
gencies of the kind described in the bill are likely nized the danger that such use by the Government
to involve countries which do not have large finan- might compete unfairly with normal commercial
cial resources, we would expect that the aid given exports from the United States or with such ex-
under this authority would normally be in the ports from friendly foreign countries. This
form of a grant. However, the language is suf- problem, however, should not arise under the bill
ficiently flexible to permit the President to you now have under consideration. In the kind
impose other conditions where they may be appro- of emergency provided for in this bill, people will
priate. Similarly, it may be a propriate in be fed who would otherwise go hungry. The aid
certain cases to provide for the establishment of a given under this bill will necessarily be in addi-
special fund of local currencies from the proceeds tion to the amounts which would otherwise be im-
of local sales of the commodities. In other cases, ported by the country concerned. This is another
the individuals receiving the help may be in no reason why the use for relief purposes of some
position to pay for it, and such provision might part of these large stocks of agricultural commodi-
be inappropriate. In the light of the impossi- ties should particularly commend itself to the
bility of foreseeing the circumstances of each case, Congress,
the President in his message said, "I am requesting In summary, I am authorized to sK :.y that it is
authority to establish, when the need arises, the the view of the administration that 8. 2249 pro-
terms and conditions under which these agricul- vides the kind of authority requested by the Presi-
tural commodities shall be made available. dent and it is supported by the administration as
One aspect of this bill involves a question which a whole.
Friendship Treaty With Japan and consent of that body to ratification, if the
PRESIDENT'S MESSAGE TO THE SENATE'
Tim WniTE HOUSE, June 27,1953.
With a view to receiving the advice and consent
of the Senate to ratification, I transmit herewith a
treaty of friendship, commerce, and navigation
between the United States of America and Japan
together with a protocol relating thereto, signed
at Tokyo on April 2, 1953.
I transmit also, for the information of the
Senate, a report by the Secretary of State with re-
spect to the treaty.
(Enclosures : (1) Report of the Secretary of
State; (2) treaty of friendship, commerce and
navigation, with protocol, signed at Tokyo, April
2, 1953.) 2
The PRESIDENT,
President, approve thereof, a treaty of friendship,
commerce, and navigation between the United
States of America and Japan, together with a
protocol relating thereto, signed at Tokyo on April
2, 1953.
This treaty places commercial relations between
the United States and Japan on a normal bilateral
treaty basis for the first time since the termination
on January 26, 1940, of the treaty of commerce
and navigation, signed at Washington on Febru-
ary 21, 1911 (37 Stat. 1504). It was envisaged
in article 12 of the Treaty of Peace with Japan,
which contains, in addition to temporary commer-
cial arrangements, a declaration by Japan of its
readiness to enter into negotiations for th
co
e
n-
DWIGHT D. EISENHOWER. elusion, with each of the Allied Powers; so desiring,
DEPARTMENT OF STATE,
of treaties or agreements to place their respective
"trading, maritime and other commercial rela-
tions on a stable and friendly basis."
The present treaty is a comprehensive instru-
ment which expresses the common faith of the two
countries in liberal principles and is designed to
provide an effective basis for the development of
Washington, June 22, 1953. business, trade, and other commercial relation-
The White House:
The undersigned, the Secretary of State, has the
honor to submit to the President, with a view to
its transmission to the Senate to receive the advice
1 S. Exec. 0, 83d Cong., 1st sess.
' Text of the treaty is not printed here. For announce-
ment of the signing, see BuLLETiN of Apr. 13, 1953, p. 531.
ships. It is the first treaty of this type which
Japan has negotiated with any country since the
end of World War II and may be regarded as a
significant; step in the strengthening of, cordial re-
lations between the United States and Japan.
In common with other treaties of friendship,
commerce, and navigation entered into by the
United States in recent years, the new treaty deals
in considerable detail with a wide range of subject
Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/08/28 ; CIA-RDdP58-00453R0OQ100300010-1
matter. In general, each of the two Governments tionals an companies of e o er country (art.
(1) agrees to accord, within its territories, to citi- VII, par. 2, second sentence) (3) a provision
zens and corporations of the other country treat- designed to further the United States policy of
ment no less favorable than it accords to its own favoring the broad dissemination of nonsecurity
citizens and corporations with respect to normal technological information (art. V, par. 2) ; (4)
commercial and industrial pursuits; (2) affirms a provision designed to discourage certain decep-
its adherence to the principles of nondiscrimina- tive marking practices in international trade
tory treatment of trade and shipping; (3) for- (protocol, par. 7) ; and (5) a paragraph designed
mally endorses standards regarding the protection to assure the maintenance of a free market in the
of persons and their property and interests that field of marine insurance (art. XV, par. 3). The
reflect the most enlightened constitutional prin- provision indicated under (1) above was author-
ciples; and (4) recognizes the need for special ized by section 101 (a) (15) (E) (ii) of the new
attention to the problems of stimulating the flow of Immigration and Nationality Act. he provision
private capital investment. Specifically, the pro- indicated under (5) above was recommended by
visions of the treaty fall into nine broad cate- the Association of Marine Underwriters of the
gories : (1) entry, travel and residence ; (2) basic United States.
personal freedoms; (3) guaranties with respect The provision on the application of quantitative
to property rights; (4 )the conduct and control of trade restrictions (art. XIV, par. 3) has been re-
business enterprises; (5) taxation; (6) exchange stated along the lines of article XII, paragraph 3,
navi of the treaty of amity and economic relations with
restrictions; (7) the exchange of goods; e
Ethiopia anon ? and (9) exceptions, territorial applica- (S. Ex. F, 82d Cong., 2d sess.) in the
g interests of greater clarity and adequacy.
bility, and miscellaneous provisions. In the for- As has been done in similar treaties with other
mulation of the provisions of the treaty special countries, certain changes in the standard lan-
attention has been given to the type of assurances guage have been made by way of clarification or
which American businessmen and investors are accommodation and various adjustments of sub-
understood to regard as useful and desirable. stance have been included to meet special circum-
The new treaty with Japan resembles most stances existing with respect to the foreign gov-
nearly (a) the treaty of friendship, commerce, and ernment. Most of such changes in the present
economic development with Uruguay, signed at treaty are included in the protocol (in pars. 3
Montevideo on November 23, 1949 (S. Ex. D, 81st through 6, 8 through 10, and 13 through 15),
Cong., 2d sess.), the treaty of friendship, com- which protocol is considered an integral part of
merce, and navigation with Ireland, signed at the treaty. Further, it will be noted that in para-
Dublin on January 21, 1950 (S. Ex. H, 81st Cong., graph 1 of article IX of the treaty the provision
2d sess.), both of which treaties have received on real property is confined to lease rights with
Senate advice and consent to ratification; and (b) respect to property needed for the conduct of
the treaties of friendship, commerce, and naviga- activities permitted by the treaty and does not
tion with Israel, signed at Washington on August deal with ownership rights; and the second sen-
23, 1951 (S. Ex. R, 82d Cong., 1st sess.), with tence of paragraph 3 of article XXI has been
Greece, signed at Athens August 3, 1951 (S. Ex. J, restated so that Japan will be entitled to conces-
82d Cong., 2d sess.), and with Denmark, signed sions granted by the United States to other coun-
at Copenhagen October 1, 1951 (S. Ex. I, 82d tries parties to the General Agreement on Tariffs
Cong., 2d sess.), which treaties were submitted to and Trade in the event of continued Japanese
the Senate on October 18, 1951, January 30, 1952, nonparticipation in that agreement for reasons
and January 29, 1952, respectively. beyond Japanese control, and in the event that the
There are several provisions in the treaty with General Agreement on Tariffs and Trade remains
Japan, however, which are not found in other in its present form. These changes are, on the
treaties, as follows: (1) A clause providing for whole, of secondary consequence and, though de-
visa privileges for persons desiring to enter either viations from the standard treaty, are founded
country for the purpose of developing the opera- on precedents.
tions of a business enterprise in which they have provision is made in the treaty for its entry into
a substantial investment (art. I, par. 1 (b) ) ; (2) force 1 month after the day of exchange of rati-
a clause assuring that if new limitations are im- fications and for its continuance in force for a
posed upon the extent to which aliens are accorded period of 10 years from that day and indefinitely
national treatment with respect to carrying on thereafter, subject to termination on 1 year's
certain activities reserved from the "national written notice by either Government to the other
treatment" rule, such limitations shall not be ap- Government.
plied against enterprises which are engaged in Respectfully submitted.
such activities at the time the new limitations are
adopted and which are owned or controlled by na- JOHN FOSTER Durr.ES.
August 3, 1953 161
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 One of the main objectives of our policy in the
Pacific area is the development of a close and
friendly relationship between the United States
and Japan. Both Japan and the United States
saw during the period of World War II what
could happen in the Pacific when the two countries
were aligned on opposite sides. Both Japan and
the United States have come to recognize more
and more the mutual advantage to be gained from
cooperative effort in political and economic fields.
The peace treaty and the security treaty with
Japan were fundamental steps in the establish-
ment of a friendly association between Japan and
the United States. Since the coming into force of
those treaties, we hale proceeded along several
lines to establish a firm basis for our relations
with Japan. We have concluded a fisheries treaty
with Japan. We have completed negotiation of a
civil air transport agreement. We have almost
completed a negotiation of conventions for the
avoidance of double taxation. The treaty of
friendship, commerce, and navigation with Japan,
which is now before you, is another step, and
an important step, in progress toward sound
and mutually advantageous Japanese-American
relations.
Prewar commercial relations between the United
States and Japan rested upon a commercial treaty
concluded in 1911. This treaty was terminated
by the United States in January of 1940. At the
present time our commercial relations with Japan
rest upon the temporary arrangements provided
by article 12 of the peace treaty. This article ex-
presses Japan's willingness promptly to enter into
negotiation of comprehensive commercial treaties
with the Allied Powers. In the same article
Japan agreed in the meantime to accord to Allied
Powers on a reciprocal basis most-favored-nation
treatment with respect to the importation and ex-
portation of goods and national treatment with
respect to other commercial activities normally
covered by such treaties. The pending treaty with
the United States is Japan's first postwar com-
mercial treaty.
Final negotiation of the treaty of friendship,
commerce, and navigation with japan took place
in Tokyo during the early part of this year. Am-
bassador Robert Murphy represented the United
States. The Japanese Minister for Foreign Af-
fairs, Katsuo Okazaki, represented Japan. The
negotiation was the culmination of a series of pre-
liminary discussions which extended over a period
of many months. These discussions and the final
negotiation were conducted in a spirit of cordiality
and mutual accommodation.
The final text of the treaty now before you
' Made before a subcommittee of the Senate Committee
on Foreign Relations on July 13 (press release 373). Mr.
Johnson is Deputy Assistant Secretary for Far Eastern
Affairs. The Senate approved the treaty on July 21.
emerged from a set of proposals forma lated by the
Department in consultation with other agencies
and interested business groups, as adjusted during
negotiation to Japanese needs and circumstances.
The treaty is designed to protect American in-
terests already established in Japan or which may
become established in the future. It is designed
to afford the maximum opportunity to the citizens
of both countries to exercise their abilities, in-
dustry, and resources constructively in business
relationships with each other. It will provide a
legal framework within which economic relations
between the two countries can be developed to their
mutual advantage.
The treaty with Japan is of particular signifi-
cance because of the magnitude of present and
potential U.S. investment in and trade with Japan.
Private foreign investment in Japan has been esti-
mated to total at the end of 1952 about $350 mil-
lion. Of this amount it has been estimated that
about 70 -percent represents American private in-
vestment in Japan. The provisions of the treaty
concerning investment create a climate favorable
to increased American investment in Japan under
conditions of mutual benefit to both countries.
In 1952 Japan ranked 10th among the nations of
the world in foreign trade. Total U.~.-Japanese
trade in that year amounted to about $850 million.
This trade represents a comparatively small frac-
tion of the foreign trade of the United States, but
it is a substantial portion of the foreign trade of
Japan. Imports from the United States ac-
counted for almost one-third of Japanese imports.
Exports to the United States accounted for about
one-sixth of Japanese exports. The establishment
of conditions for the maintenance and expansion
of U.S.-Japanese trade is, consequently, of con-
siderable importance to both countries.,
The treaty under consideration is a treaty of
friendship as well as a treaty of commerce. Obli-
gations in the treaty are stated in reciprocal terms
to make plain that the treaty rests on a foundation
of mutual respect and trust. The encouragement
and stimulation of the spirit of respect and trust
are essential to the establishment of satisfactory
business relationships between citizens of the
United States and Japan. It is fully as essential
as the careful delineation of rights and obligations
in the treaty.
I appreciate the great pressure of urgent matters
for consideration by the Senate, but it is my hope
that the Senate will find it possible to approve this
treaty before the end of this session. The Japanese
Diet at the present time is considering whether
to recommend Japanese ratification of the treaty.
The coming into force of the treaty will tend to
reduce uncertainties and risks now experienced
by American and Japanese nationals in doing busi-
ness with each other. It will also help to
strengthen the cooperation between the two coun-
tries which is essential to the achievement of our
mutual aims.
162 Department of State Bulletin
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Approved For Release 2001/(8 2 clA-RDP58-00453R000100ygl9911 t , No. 736
August 3, 1953
Agriculture
Use of surplus agricultural commodities for foreign
aid (Waugh) . . . . . . . . . . . . . . 169
Asia
JAPAN: Friendship treaty with Japan (Eisenhower,
Dulles, Johnson) . . . . . . . . . . . . 160
KOREA:
Armistice in Korea (Eisenhower, Dulles, text of
agreement) 131
Korean armistice problems (Dulles) . . . 140
Supplementary agreement on prisoners of war
(text) . . . . . . . . . . . . . . . . . 139
Congress
Current legislation on foreign policy . . . 149
Disposal of Government-owned synthetic rubber
plants (Dulles) 159
Friendship treaty with Japan (Eisenhower, Dulles,
Johnson) . . 160
President warns against cuts in mutual security funds . 158
Use of surplus agricultural commodities for foreign
aid (Waugh) . . . . . . . . . . . . . . 159
Check List of Department of State
Press Releases: July 20-26, 1953
Releases may be obtained from the News Division,
Department of State, Washington 25, D. C.
Press releases issued prior to July 20 which ap-
pear in this issue of the BULLETIN are Nos. 373 of
July 13, 381 of July 15, 384 of July 16, and 386 of
July 17.
No. Date Subject
1388 7/20 Chemistry Union meeting
389 7/21 Dulles: Armistice problems
*390 7/21 Gideonse: Visit to India
f391 7/22 Niagara Falls remedial works
f392 7/22 Venezuelan literary contest
393 7/22 Dulles: Rhee's stand on truce
t394 7/23 Egypt's Liberation Day
395 7/23 Dulles: Ene treaty
t396 7/24 Foreign relations volume
397 7/26 Dulles : Signing of armistice
*Not printed
tlleld for a later issue of the BULLETIN.
Europe
GERMANY:
Food for East Germany . . . . 147
U.S. views on German unity (Eisenhower) . . . 147
NETHERLANDS: Approves European defense commu-
nity treaty . . . . . . . . . . . . . . . 141
Foreign Service
Chiefs of mission to remain at their posts . . . . . 157
Confirmatiion of Crowe, Davis . . . . . . . . . . 157
Consular offices . . . . . . . . . . . . . . . 157
Mutual Aid and Defense
America's stake in a healthy free-world economy
(Waugh) . . . . . . . . 142
President warns against cuts in mutual security funds. 158
Presidential Documents
EXECUTIVE ORDERS: Administration of Pacific
Trust Territory . . . . . . . . . . . 157
Food for East Germany . 147
President warns against cuts in mutual security funds . 158
U.S. views on German unity . . . . . . . . . 147
Prisoners of War
Armistice in Korea (Eisenhower, Dulles, text of agree-
ment) . . . 131
Supplementary agreement on prisoners of war (text) . 139
Strategic Materials
Disposal of Government-owned synthetic rubber
plants (Dulles) . . . . . . . . . . . . . 159
Treaty Information
Friendship treaty with Japan (Eisenhower, Dulles,
Johnson) . . . . . . . . . . . . . . . 160
Trust Territories
Administering the Pacific Trust Territory (Midkiff) . 150
Micronesian representative addresses Council (Kabua) . 151
United Nations
Armistice in Korea (Eisenhower, Dulles, text of agree-
ment) . . . . . . . . 131
Korean Armistice problems (Dulles) . . 140
Micronesian representative addresses Council
(Kabua) . . . . . . . . . . . 151
Supplementary agreement on prisoners of war (text) . 139
Name Index
Adenauer, Konrad . . . . . . . . . . . . . . 147
Crowe, Philip K . . . . . . . . . . . . . . . 157
Davis, Roy Tasco . . . . . . . 157
Dulles, Secretary . . . . . . 131, 140, 141, 159, 160
Eisenhower, President . . . . . . 131, 147, 157, 158, 160
Johnson, V. Alexis . . . . . . . . . . . . . . 160
Kabua, Dorothy . . . . . . . . . . . . 151
Midkiff, Frank E . . . . . . . . . . . . . 150
Waugh, Samuel C .. . . . . . . . . . . . . 142, 159
Approved For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
 Ap ed For Release 2001/08/28 : CIA-RDP58-00453R000100300010-1
ar r
FOREIGN RELATIONS OF THE UNITED STATE, ,5.
the basic source of information. on U.S. diplomatic history
Now available 1935, Volume III
The Far East
In 1935, American diplomats in China and Japan gave
ominous warnings of Japanese expansionist ambitions. From
Tokyo, Ambassador Joseph C. Grew warned that the ultimate
aims of the Japanese would lead to war with the United Staten
unless deterred by sufficient armed strength. Department of
State officials shared in this evaluation of the trend of
Japanese policy.
Events of the year in the Far East were not dramatic but
highly significant. The documents contained in this volume
throw light on the situation leading ultimately to Japan's attack
on the United States in December, 1941.
This volume may be purchased from the Superintendent of
Documents, Government Printing Office, Washington 25, D. C.,
for $4.50 a copy.
u o.. um s'
Please send me ------------ copies of Foreign Relations of the United
States, 1935, Volume III, The Far East.
Name:. - - - - -- -
gy'Y Street address:
-----------------------------------------
es&, the eft' -- - -----
k ne o er). A loved For RefiWs6o2DC `i /28:.-C-lAzRDP58=0045-3ROfl0-40030001.0-1---