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MOSCOW MEETING OF THE COUNCIL OF FOREIGN

MINISTERS • Statementahy the Secretary oj State:

Procedure for Preparation of German Peace Treaty .
Reparations Received by the United States



CONGRESSIONAL HEARINGS ON TRADE AGREE-
MENTS ACT • Statement by Under Secretary Clayton .

INTERNATIONAL BROADCASTING FOUNDATION

OF THE U.S. • Proposal by the Department of State . .

TWO ILO INDUSTRIAL COMMITTEES MEET IN

BELGIUM • Article by Murray Ross ........



607
609

627

618

613



for complete contents see back cover



Vol. XVI, No. 405
April 6, 1947







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o/^iate bulletin



Vol. XVI, No. 405 • Publication 2791
April 6,1947



For sale by the Superintendent of Documents

U. S. Government Printing OflSce

Washington 25, D. C.

Sobsceiption:
C2 issues, $5.00; single copy, 15 cents

Published with the approval of the
Director of the Bureau of the Budget

Notp: 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 compiled and
edited in the Division of Publications,
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 De-
partment of State and the Foreign
Service. The BULLETIN includes
press releases on foreign policy issued
by the White House and the Depart-
ment, 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 inter-
natioruil affairs and the functions of
the Department. Information con-
cerning treaties and international
agreements to which the United States
is or may become a party and treaties
of general international interest is
included.

Publications of the Department, cu-
mulative lists of which are published
at the end of each quarter, as tcell as
legislative material in thefield of inter-
national relations, are listed currently.



COUNCIL OF FOREIGN MINISTERS



Moscow Meeting of the Council of Foreign Ministers:
Procedure for Preparation of German Peace Treaty



STATEMENTS BY THE SECRETARY OF STATE



U. S. Position on Peace Conference >

The American Deputy refrained from taking a
position on the peace conference. He did so not
Ijecause the United States is not wholeheartedly
in favor of a peace conference, but because we
thought this matter required the attention of the
Ministers.

It is the view of the United States that this
Coimcil with China as a member should invite all
states at war with Germany to a peace conference
to consider the draft of the peace settlement as
soon as its preparation is sufficiently advanced.
It is our view that all these states should be ac-
corded full and equal rights as members of the
conference. At the close of the conference the
four members of the Council of Foreign Ministers
which prepared the preliminary text of the peace
settlement should, we think, draft the final text
of the settlement on the basis of the recommenda-
tions of the peace conference which are supported
by a two-thirds vote of those present and voting
at the conference, taking into consideration the
other recommendations which are supported by
a majority of those present and voting at the con-
ference. The final text of the peace settlement
when completed should be submitted for signature
by all the states at war with Germany. Respon-
sible representatives of Germany should be given
the opportunity to present their views to the con-
ference. Since, however, the Allies required the
imconditional surrender of Germany, particular
officials should not, in our opinion, be obliged to
take upon themselves the burden of signing the
settlement or voting for its ratification.

We have suggested that the Allies should re-
quire the German Constitution to contain a clause
which clearly provides that all powers thereunder
shall be exercised subject to and in accordance

April 6, 1947



with the peace settlement that may be agreed upon
by and between the Allies. If our view prevails,
when the Germans accept the Constitution, they
will be obliged thereby to accept the peace settle-
ment. Then the German people, and not particular
officials or parties, become responsible for the ac-
ceptance of the Constitution and the peace settle-
ment or statute.



Association of Allies With Council of
Foreign Ministers'

Wliile for practical reasons it may be imprac-
ticable to grant to all the Allies the same degree
of participation at every stage, the United States
hopes that all states at war, large and small, wiU be
granted some degree of participation at all stages.

The United States supports the view that the
cooperation of the Allies in the making of the
peace should not be less extensive than their co-
operation in the war. No state that contributed to
victory should be denied a voice in the peace. For
that reason we welcomed the French proposal for
the setting up of an information and consultation
conference to provide the Allied states with the cur-
rent documentation of the work of the Council, the
Deputies, and the committees, and to afford them
the opportunity to comment and offer suggestions
on the work of the settlement as it progresses.



' Made on Mar. 25, 1947, and released to the press In
Moscow on the same date, and in Washington on Mar. 28.

' Made on Mar. 25, 1947, during discussion of how best
to associate with the Council of Foreign Ministers, in work-
ing out a just and lasting German settlement, the Allies
who joined In the common struggle against Germany;
released to the press in Moscow on Mar. 25, and In
Washington on Mar. 20.

607



i



COUNCIL OF rORBIGN MINISTERS

There would be no voting in this body : it would
provide a channel to keep the Allied states informed
of the work of the Council and the Council in-
formed of the views of the Allied states. In view
of the character of the proposed information and
consultation conference, we see no reason why it
should not include all the states at war with Ger-
many, and we so urge. A number of states which
declared war against Germany did not contribute
armed forces because they were told that they
could contribute more effectively in other ways.
We do not believe that they should be penalized for
taking our advice.

Support of Committees and Conference for
Allied States 3

I should like to refer at this time to what I said
yesterday — that the "Allied states" should specifi-
cally include all states at war with Germany. The
United States has consistently supported the par-
ticipation in the making of peace with Germany by
those states which helped win the war. We want
that participation to be as broad and dignified as
circumstances permit.

In accordance with our belief we agree to the
organization of four permanent committees with
subcommittees as well as to an information and
consultation conference. We insist that these
Allied states who have participated in the winning
of the war, whether they be large or small, should
share at least in some degree the honor as well as
the responsibility for this work. I stress the word
responsibility because I find it of importance that
states associated with the United States in the
winning of the war should shoulder responsibility
for the maintenance of the peace.

I am naturally concerned that our allies in the
Western Hemisphere should be recognized. They
cooperated loyally and often adapted themselves to
our views as to the manner of their participation in
the waging of the war. Just as most men prefer
active combat posts in wartime, Mexico, for ex-
ample, urgently desired to send an expeditionary
force. We recommended against it for logistical
reasons — shortage of shipping, supplies, and so
forth. But Mexico, as did others, made a substan-
tial contribution in other ways, particularly in the
economic field and in manpower. Mexico, there-

'Made on Mar. 26, 1947, and released to the press in
Moscow on the same date and in Washington on Mar. 27.

' Made on Mar. 25, 1947, and released to the press in
Moscow on that date and in Washington on Mar. 26.



fore, should have a dignified place in the making
of the peace. Other American republics should, we
feel be represented on the proposed information
and consultation conference. The countries whose
armed forces fought with us certainly acquired, by
expenditure of men and resources, the right to par-
ticipate in the organizing of the peace at all stages.
Tlie example of Canada, however, would emphasize
what I mean. Canada had over one million in her
armed forces of which 400,000 were under arms as
early as 1941. Canada suffered over 100,000 casual-
ties, provided naval power for the North Atlantic,
was fourth among the nations in air power and ex-
pended about 19 billion dollars for war purposes
to say nothing of the value of vital metals and
other supplies. Facts of this kind cannot be ig-
nored in the selection of our associates who will
work with us in preparing the peace.

I recommend that my colleagues instruct their
deputies to agree to our proposals for the member-
ship of all states at war in the information and con-
sultation conference, and for the participation of
a convenient number of other Allied states in the
permanent committees, and the principal subcom-
mittees. In that way we shall recognize the war-
time contribution of our allies and obtain the bene-
fit of their cooperation in the peace.

Statement on Albania *

The Soviet Delegation has proposed that Al-
bania not only be treated as an Allied state but
be grouped with those states which actively par-
ticipated with their armed forces in the war or
were invaded. The United States Delegation
does not agree that Albania should be so treated
or grouped. Albania as a state was not at war
with Germany and did not declare war on Ger-
many. Albanian troops took an active part allied
to Germany in the treacherous attack on their
valiant neighbor, Greece. The regime now ruling
Albania has declined to recognize that country's
international obligations. Albania was not in-
vited to the Paris Conference as an Allied or as-
sociated power. The United Nations have not yet
agreed that Albania has qualified for membership
with them.

Albania in our opinion has no claim to a privi-
leged position over other states and people who
have fought against the Germans. Other states
have contributed more to the defeat of the Ger-
mans.



608



Department of State Bulletin



The United States Delej^ation therefore sees no
acceptable basis for inviting Albania to partici-
pate in the preparation of the peace settlement.

Position on Yugoslav Representatives '

The United States Delegation does not believe
it is necessary to invite the Yugoslav Government
to send representatives to present their views con-
cerning the report of the Commission on the
financial situation in the free territory of Trieste.
If Yugoslavia should be given a hearing, obviously
the Italian Government should also be invited to
present its view. I am informed that in accord-
ance with its terms of reference which provided
for consultation with the Yugoslav and Italian
authorities in Trieste, the Commission during its
work there in January and February was in con-
stant consultation with these authorities. It is



COUNCIL OF FORE/GN MINISTERS

therefore to be assumed that both the Italian and
Yugoslav Governments are fully informed con-
cerning the work of this Commission.

The report is of a technical nature and deals
with the financial assistance which the free terri-
tory of Trieste, when established, will require. It
is for these reasons the United States Delegation
does not see the necessity for inviting representa-
tives of Yugoslavia to come to Moscow to present
their views on this question to the Council of
Foreign Ministers. The purpose of the Trieste
Commission was by the terms of reference largely
to save the Council of Foreign Ministers the
necessity and time-consuming procedure for ascer-
taining the facts, and the views of the interested
governments. If the representatives of these gov-
ernments are invited here we, in effect, will be re-
doing the work of the Commission.



Reparations Received by the United States



SUMMARY STATEMENT BY THE U.S. DELEGATION"



Tlie United States has thus far received as repa-
rations from Germany:

Industrial capital equipment: (A) Through lARA,
66,666; (B) directly, less than 10,000,000; ships: 5,000,000;
German external assets : 150-250,000,000 ; current produc-
tion : none ; gold : none ; total : less than 275,000,000.

[The tabulation is in dollars.]

A. Industrial capital equipment. As of the end
of February 1947, the Inter-Allied Separation
Agency has been allocated slightly more than
Eeichsmarks 300 million in industrial capital
equipment consisting of 71 plants on advance
reparation account, the general-purpose equipment
from 51 war plants and the equipment included in
French and British emergency removal programs.
Of this amount lARA has completed the alloca-
tion of Reichsmarks 62 million. Of the Reichs-
marks 62 million allocated, the United States has
received approximately Reichsmarks 200,000.

Note : For the purpose of this tabulation the Reichsmark
has been valued at 3 to the dollar.

The United States has made certain removals of
industrial capital equipment from Germany which
have not taken place through the Inter-Allied
Reparation Agency. These removals were ordered
to further our war effort prior to the Japanese
surrender. Evaluation of the removals conducted
by the United States is now being compiled. The



value of all these removals is not large and is not
expected to exceed $10,000,000. When the evalua-
tion has been completed it will be reported to the
Council of Foreign Ministers and the Inter- Allied
Reparation Agency.

B. Ships. The Inter- Allied Reparation Agency
has allocated practically all ships assigned to it by
the tripartite Merchant Marine Commission. The
value of these ships has been placed at Reichs-
marks 220 million. The United States has received
ships valued at Reichsmarks 15.5 million.

C. German external assets. External assets to
be received from Germany as reparation by all
members of the Inter-Allied Reparation Agency
is expected to amount to less than $600 million.
No final figures can be given because of liquidation
still in progress. The United States will receive
between $150 and $250 million. The amount to
be realized by the United States cannot be stated
with greater accuracy at this time, because of doubt
as to whether one substantial asset is in fact
German or of other nationality. This doubt is be-
ing resolved in the courts.



'Made on Mar. 27, 1947, and released to the press in
Moscow on the same date and in Washington on Mar. 28.

' Paper circulated within the Council of Foreign Min-
isters in Moscow on Mar. 25, 1947, and released to the
press in Moscow on the same date and in Washington on
Mar. 26.



AprW 6, 1947



609



INTERNATIONAL ORGANIZATIONS AND CONFERENCES

Calendar of Meetings ^



In Session as of March 30, 1947



Far Eastern Commission



United Nations:

Security Council

Military Staff Committee

Commission on Atomic Energy

Telecommunications Advisory Committee



Economic and Social Council: Fourth Session
Commission on Conventional Armaments . .
Trusteeship Council



German External Property Negotiations (Safehaven) :

With Portugal

With Spain

Inter-Allied Trade Board for Japan



PICAO:

Interim Council

Air Transport Committee: Sixth Session

Airworthiness Division

Airline Operating Practices Division . .



Inter-Allied Reparation Agency (lARA) : Meeting on Con-
flicting Custodial Claims.



International Court of Justice .
Council of Foreign Ministers . .
International Wheat Conference



Scheduled March-May 1947

World Health Organization (WHO) : Third Session of In-
terim Commission.

International Wool Study Group

Interparliamentary Union: 36th Plenary Session . . . .

UNESCO Executive Board



International Conference on Trade and Employment:
Second Meeting of Preparatory Committee.

International Red Cross Committee



United Nations:

Meeting of Experts on Passport and Frontier Formali-
ties.

Permanent Central Opium Board

Committee on Progressive Development and Codifica-
tion of International Law.

ECOSOC:
Subcommission on Statistical Sampling



Washington .



Lake Success
Lake Success
Lake Success
Lake Success

Lake Success
Lake Success
Lake Success



Lisbon .
Madrid



Washington .



Montreal
Montreal
Montreal
Montreal

Brussels



The Hague
Moscow . .
London . .



Geneva



London
Cairo .
Paris .
Geneva

Geneva

Geneva



Geneva . . .
Lake Success .



' Prepared in the Division of International Conferences,
' Tentative.



Lake Success . . . .
Department of State.



1946



Feb. 26



Mar


25




Mar


25




June 14




Nov


10


1947


Feb.


28-


Mar. 29


Mar


24




Mar


26


1946


Sept


3




Nov


12




Oct.


24


1947


Jan.


7-Apr. 2


Jan.


13-Feb. 13


Feb.


20-Mar. 16


Feb.


25-


Mar. 30


Jan.


29-


Recessed Mar.


22


; will reconvene in


May.





Feb. 10

Mar. 10

Mar. 18-. Temporarily
adjourned; will recon-
vene Apr. 14.

Mar. 31

Mar. 31-Apr. 3
Apr. 7
Apr. 9
Apr. 10

Apr. 14-26

Apr. 14

Apr. 14
May 1 2



Apr. 14'



610



Deparfment of Sfafe Bulletin



Calendar oj Meetings — Continued

ECOSOC— Continued
Subcommission on Protection of Minorities and Pre-
vention of Discrimination.

Fiscal Commission

Subcommission on Freedom of Information

Social Commission

ICAO (International Civil Aviation Organization):

European-Mediterranean Special Air Traffic Control
Conference.

Interim Council

First Meeting of General Assembly

International Tin Study Group: First Meeting

European Central Inland Transport Organization
(ECITO) : Seventh Session of the Council.

Fifth International Hydrographio Conference

ILO:

Industrial Committee on Coal Mining

Industrial Committee on Inland Transport

American International Institute for the Protection of
Childhood: Meeting of International Council.

International Meeting of Marine Radio Aids to Naviga-
tion.

FAO:

International Timber Conference

Rice Study Group

International Refugee Organization (IRO) : Second Part
of First Session of Preparatory Commission.

Congress of the Universal Postal Union

International Radio Conference

International Technical Committee of Aerial Legal Ex-
perts (CITEJA).

International Emergency Food Council (lEFC) : Fourth
Meeting.



Lake Success

Lake Success

Lake Success

Lake Success

Paris

Montreal

Montreal

Brussels

Paris

Monaco

Geneva

Geneva

Montevideo .

New York and New London



Marianske-Lazne, Czechoslo-
vakia.
Southeast Asia

Geneva

Paris

Atlantic City

Montreal

Washington



Apr. 21 '

Apr. 28 >
May 5'
May 26 »

Apr. 15

Apr. 29
May 6

Apr. 15-18

Apr. 17 »

Apr. 22

Apr. 22
May 6

Apr. 25

Apr. 28-May 10

Apr. 28-May 10

May
May 1

May 6
May 15
May

May



Activities and Developments »



ALLIED TRADE REPRESENTATIVESIIN JAPAN*

1. The Far Eastern Commission establishes as
a policy decision the following status for the Allied
trade representatives in Japan.

2. The trade representatives shall represent
their governments and for the time being exercise
the following functions :

(a) To know what items are desired by their



' Poliey decision approved by the Par Eastern Commis-
sion on Mar. 13, 1947, and released to the press Mar. 24.
A directive based upon this decision has been forwarded
to the Supreme Commander for the Allied Powers for
implementation.



April 6, 1947



611



ACTIVITIBS AND DEVELOPMENTS

governments for import from Japan and for ex-
port to Japan.

(h) To keep the Supreme Commander for the
Allied Powers currently informed as to progress
of import and export programs, and items re-
quested or suggested by their governments.

(c) To accept for their governments terms of
sale, with Japanese selling agencies, agreed to by
the Sujireme Commander for the Allied Powers.

(d) To accept delivery of Japanese exports
f .o.b. Japanese port, and to handle details of ocean
shipping and insurance.

(e) To deliver to the Supreme Commander for
the Allied Powers all documents from their gov-
ernments covering imports and to facilitate such
importation and delivery.

(/) To supply the Supreme Commander for the
Allied Powers with all financial data such as costs,
sale prices, and claims, and any necessary docu-
ments affecting imports from and exports to their
governments.

(ff) To maintain an operating relationship with
military or diplomatic liaison missions which their
governments have established in Japan, in order to
coordinate action and take care of routine matters
such as communication.

(h) The trade representatives may use secret
code for communication with their governments
through the Missions of their governments in
Japan.

3. The functions of the Allied trade representa-
tives defined in this interim document may sub-
sequently be reviewed by the Far Eastern Com-
mission in the light of experience.

REVIEW OF NEW JAPANESE CONSTITUTION >

1. The new constitution, which will in due sea-
son after promulgation become the legal successor
of the present constitution with such changes as
have been made or may be made as a result of con-
sideration and policy decision of the Far Eastern

' Policy decision approved by the Far Eastern Commis-
sion on Oct. 17, 1946, and released to the press Mar. 27,
1947. A directive based upon this decision has been for-
warded to the Supreme Commander for the Allied Powers
for Implementation.

' For article on "American Wool Import Policy" by James
Gilbert Evans, see Bulletin of Nov. 3, 1946, p. 783. For
"Statement by Heads of Delegations to International ^Yool
Talks", see Bulletin of Nov. 24, 1946, p. 942. For "Report
on International Wool Talks" by Clarence W. Nichols, see
Bulletin of Dec. 29, 1946, p. 1166.



Commission, shall be subject to further review by
the Diet and the Far Eastern Commission in terms
of the following paragraph.

2. In order that the Japanese people may have
an opportunity, after the new constitution goes
into effect, to reconsider it in the light of the ex-
perience of its working, and in order that the Far
Eastern Commission may satisfy itself that the
constitution fulfills the terms of the Potsdam Dec-
laration and other controlling documents, the Com-
mission decides as a matter of policy that,
not sooner than one year and not later than two
years after it goes into effect, the situation with
respect to the new constitution should be reviewed
by the Diet. Without prejudice to the continuing
jurisdiction of the Far Eastern Commission at
any time, the Commission shall also review the
constitution within this same period. The Far
Eastern Commission, in determining whether the
Japanese constitution is an expression of the free
will of the Japanese people, may require a refer-
endum or some other appropriate procedure for
ascertaining Japanese opinion with resjject to the
constitution.

U. S. DELEGATION, TO INTERNATIONAL
WOOL STUDY GROUP

[Released to the press March 26]

The Acting Secretary of State announced that
the President has approved the composition of
the American Delegation to the First Meeting of
the International Wool Study Group, which is
scheduled to be held at London beginning March
31, 1947.^ The nominations were submitted upon
the recommendation of the Secretary of Agricul-
ture, Clinton P. Anderson, and the Acting Secre-
tary of State, Dean Acheson. The composition of
the Delegation is as follows :

Delegate

Leslie A. Wheeler, Director, Office of Foreign Agricul-
tural Relations, Department of Agriculture

Alternate Delegate

Donald D. Kennedy, Chief, International Resources Divi-
sion, Department of State

Advisers

Robert B. Schveenger, Head, International Economic
Studies Division, Office of Foreign Agricultural Rela-
tions, Department of Agriculture

Paul O. Nyhus, Agricultural Attach^, .\merican Embassy,
London

Adviser and Secretary of the Delegation