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Department of State bulletin (Volume v. 22, Apr- Jun 1950) online

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measures proposed to it, in accordance with what
the deputies believe to be the will of the people.
But we in the American missions regard parlia-
mentary approval of major recovery measures to
be essential not oiUy as a validation of the demo-
cratic process of government but as an assurance
that the hard tasks of reconstruction have the
willing support of the sovereign Greek people.

It is in the hands of the Greek Government and
the Greek Parliament to decide whether or not
they wish to continue to receive American aid and,
hence, to accept the responsibilities which will
attain its purpose. It is the obligation and inten-
tion of the American Govermnent with regard to
all Marshall aid countries to decide whether or
not the performance of the recipient government,
whether Greek or any other, justifies a continuance
of the aid on the scale heretofore contemplated.

I trust that this clear statement of the American
concern in the Greek recovery will receive the
earnest consideration of the Greek people and their
representatives and that decisions to proceed
boldly with an ambitious reconstruction effort will
be taken quickly by the new Parliament.
Accept [etc.]



April 17, 1950

881-103—50—



601



U.S. Concerned Over Korea's
Mounting Inflation

[Released to the press April 7]

The foUowinff is the text of an aide-memoire
handed to the Korean Ambassador on April 3 hy
the Assistant Secretary-designate for Far Eastern
Affairs. This text has already been made pvhlic
iy the Korean Government in Seoul:

Tlie Secretary of State wishes to take this op-
portunity to express to His Excellency the Am-
bassador of the Republic of Korea, prior to the
latter's return to Seoul, the deep concern of this
Government over the mounting inflation in Korea.
The Secretary of State wishes His Excellency to
convey to the President of the Republic of Korea
the view of this Government that the communica-
tion of March 4, 1950, from the Korean Prime
Minister to the Chief of the Economic Cooper-
ation Mission in Korea,^ in which the view was
expressed that there is no serious problem of in-
flation in Korea, but rather a threat of deflation, in-
dicates a lack of comprehension on the part of the
Korean Government of the seriousness of the prob-
lem and an unwillingness to take the drastic meas-
ures required to curb the growing inflation.

It is the judgment of this Government that the
financial situation in Korea has already reached
critical proportions and that, unless this progres-
sive inflation is curbed in the none too distant fu-
ture, it cannot but seriously impair Korea's ability
to utilize effectively the economic assistance pro-
vided by the Economic Cooperation Administra-
tion. Government expenditures have been vastly
expanded by bank overdrafts without reference to
limits set by an approved budget. Tax collec-
tions have not been increased, aid goods have been
underpriced, and governmental subsidies have been
expanded. The dangerous practice of voluntary
contributions has been used as an inefficient substi-
tute for a sound taxation system. These uneco-
nomic practices have, in turn, served to expand the
currency in circulation, unbalance the Korean na-
tional budget, and cause a sharfj rise in wholesale
and retail prices, thereby strengthening the grow-
ing forces of inflation.

Tlie Secretary of State must inform His Excel-
lency that, unless the Korean Government is able
to take satisfactory and effective measures to
counter these inflationary forces, it will be neces-
sary to reexamine, and perhaps to make adjust-
ments in, the Economic Cooperation Administra-
tion's assistance program in Korea.

The Secretary of State wishes to inform His Ex-
cellency in this connection that the American Am-
bassador in Seoul is being recalled for consultation

' Not here printed.



within the next few days regarding the critical

{)roblems arising out of the growing inflation in
iorea.

Of equal concern to this Government, are the
reported intentions of the Korean Government, as
proposed by the President of the Republic of Korea
in a message to the National Assembly on March 31,
to postpone the general elections from the coming
May until sometime in November. The Secretary
of State wishes to draw to His Excellency's atten-
tion the fact that United States aid, both military
and economic, to the Republic of Korea has been
predicated upon the existence and growth of dem-
ocratic institutions within the Republic. Free,
popular elections, in accordance with the consti-
tution and other basic laws of the Republic, are the
foundation of those democratic institutions. The
holding of the elections as scheduled and provided
for by the basic laws of the Republic appears to this
Government as equally urgent with the taking of
necessary measures for the countering of the infla-
tionary forces already discussed.

President of Chile To Visit
in the United States

On March 17, 1950, the Department of State
announced the prom-am for the visit of Gabriel
Gonzalez Videla, President of the Republic of
Chile, who will arrive in Washington on April 12.
The President will be accompanied by Seiiora de
Gonzalez Videla.

Animal Husbandry Specialist
To Visit Colombia

Daniel H. Chavez of Albuquerque, New Mexico,
has been awarded a grant by the Department of
State to serve as a visiting professor of animal
husbandry at the School of Agriculture, Medellin,
Colombia, for a year, beginnig in February 1950.

K. G. Wakim, Physiologist
To Visit in Syria

Dr. K. G. Wakim, professor of physiology at the
Mayo Foundation and ]Medical Research Consul-
tant at the Mayo Clinic, Rochester, Minnesota, has
been awarded a grant by the Department of State
in cooperation with the Mayo Foundation and
Clinic to serve as a visiting professor at the Na-
tional University of Syria at Damascus. This is
the first grant awarded to a visiting professor for
an assignment in the Eastern Hemisphere under
the exchange-of-persons program authorized by
the Smith-Mundt Act. Dr. Wakim left New
York on March 21 for Damascus where he will
remain for approximately 3 months.



602



Department of State Bulletin



Foreign Assistance Act of 1950:
A Major Blow for Peace

Letter From the Prenidenf to John Kee, Chairman
of House Committee on Foreign Affairs

March 25, 1950

My dear Mr. Chairman : I understand that the
House of Kepresentatives will soon consider the
Foreign Assistance Act of 1950. I believe the
Congress of tiie United States has an opportunity
to strike a major blow for peace on behalf of people
ever J' where by taking rapid and favorable action
on this legislation.

Approval of this measure will give renewed
hope and vigor to people everywhere who are
working to achieve their economic independence
and maintain their political freedom. Passage of
this act will strengthen all nations threatened with
intimidation, subvei'sion, or direct aggression.

It is in the interest of each American that there
be a far greater measure of well-being in other
lands. Other countries must be able to produce
and procure from us and each other those things
which will enable their people to have the food,
health, and housing necessary to maintain eco-
nomic and political stability.

Poverty, misery, and insecurity are the condi-
tions on which communism thrives. Freedom-
loving peoples can eliminate these conditions only
by joining their knowledge and resources in a
gi-eat cooperative effort.

The Foreign Assistance Act will authorize con-
tinued economic aid to the Marshall Plan countries
in Europe and to the Republic of Korea to enable
them, through their own efforts, to establish self-
supporting economies. It will authorize aid
where needed to those free countries in the general
area of China whose survival is threatened by the
imminent danger of Communist infiltration.
This act will provide authority for a major effort
to assist the peoples of Southeast Asia.

It will provide for participation in the United
Nations effort to solve the serious problem of the
Palestine refugees. Satisfactory solution of this
problem is fundamental to permanent peace in the
Near East.

The act will authorize the carrying forward of
the vital program of technical and other assistance
to underdeveloped countries which was the fourth
point in my inaugural address. This will provide
the peoples in underdeveloped areas of Asia, the
Middle East, and other parts of the world the hope
and the tools they need to achieve and maintain
real freedom for themselves.

The program called for by this act is the mini-
mum consistent with the interest of the United
States and our efforts to achieve a peaceful world.
Failure to enact it in its full amount would do
irreparable damage. We cannot live isolated in
relative wealth and abundance. We cannot ignore



the urgoni jiroblems of other peoples or threats to
their independence.

These measures are not acts of charity. Neither
are they a waste of the resources of the United
States. Tliey are, iiuleed, the keystone of our pro-
tection against the destruction of another war and
against the terrible weapons of this atomic age.
Our armed forces can afford us a measure of de-
fense, but real security for our Nation and all the
rest of mankind can come only from building the
kind of world where men can live together in
peace.

The United States turned its back upon the rest
of the woild after the first world war. Some
twenty years later, we found that we had to fight
another world war. We cannot afford to follow
that course again. We will save nothing if we
ignore the needs of other nations now only to find
that the result is World War III.

Passage of this act will enable us in company
with other nations to move ;i long step forward in
our offensive for freedom and for peace. It will
bring appreciably nearer the goal all freedom-
loving peoples seek — a peace whei'e all nations live
in equality and mutual respect. It will be tangible
evidence of our determination to achieve this kind
of peace — evidence which will be understood by
every nation in the world.
Sincerely yours,

Harry S. Truman



Japanese Foreign Office
Officials To Study U.S. Methods

[Released to the press March 22]

A group of six Japanese Foreign Office officials
have recently arrived in the United States as the
recipients of a grant-in-aid from the Department
of State in cooperation with the Department of
the Army for a stay of 2i/4 months to study the
organization of the Department of State, imple-
mentation of the Foreign Service Act of 1947,
formulation of American international trade poli-
cies, management of international cultural rela-
tions, consular affairs, relations between the De-
partment of State and other governmental agen-
cies and legislative branches, and activities of the
United Nations.

The group is composed of: Masato Fujisaki,
Michitoshi Takahashi, Torao Ushiroku, Shigezo
Yoshikawa, Shizuo Saito, and Bunishichi Hoshi.
All are foreign office officials in Tokyo.

Messrs. Fujisaki, Takahashi, Ushiroku, Yoshi-
kawa, Saito, and Hoshi will visit various cities
while in the United States to observe the operation
of governmental and cultural organizations and
confer with leaders in these fields.



April 17, 1950



603



INTERNATIONAL ORGANIZATIONS AND CONFERENCES



FULL EMPLOYMENT ACTION



National and International Measures



Summary hy Ruth S. Donahue



Pursuant to a resolution passed by the Economic
and Social Council in August 1949 when a discus-
sion of full employment revealed great concern at
the down trend that had taken place during the
latter part of 1948 and early 1949, the Secretary-
General of the United Nations named a group of
experts to prepare for subsequent consideration of
the Council a report on national and international
measures required to achieve full employment.
This group was composed of John Maurice Clark,
professor of economics at Columbia University,
New York, who worked in association with Arthur
Smithies, professor of economics at Harvard Uni-
versity; Nicholas Kaldor, fellow of King's Col-
lege, Cambridge Univereity, England; Pierre Uri,
economic and financial adviser to the Commissariat
general du Plan, Paris; and E. Ronald Walker,
economic adviser to the Australian Department of
Economic Affairs. Mr. Walker served as chair-
man. In preparing the report, the experts acted
in their personal capacities and their recommenda-
tions, which were unanimous, are put forward on
their own responsibilities.

In accordance with the Ecosoc resolution,
copies of the report were transmitted to all mem-
ber governments. In January 1950, the Economic
and Employment Commission, as requested by the
Council, examined the report and transmitted to
the Council its comments and recommendations for



action. Although many members of the Economic
and Employment Commission registered agree-
ment with the general objectives and with numer-
ous recommendations therein, questions were
raised concerning some of the proposals.

The Economic and Social Council voted on Feb-
ruary 21, 1950, to refer the report to member gov-
ernments for study and to invite the members of
Ecosoc to express their views on the experts'
proposals, or to submit any alternative proposals
they may have for solving unemployment prob-
lems, to the next Ecosoc meeting at Geneva in
July-August 1950. Meanwhile, the Secretary-
General of the United Nations, at the request of
the Council, is continuing to collect reports from
governments on measures taken to achieve full em-
ployment. The release of regular analytical sum-
maries of these reports will begin in July-August
1950.

Without attempting to make any forecasts as to
the world economic situation, the experts outline
the necessary steps which should be taken — do-
mestically and internationally — so that policies for
maintenance of full employment may be imple-
mented as the occasion arises. The measures
recommended, the experts assert, are consistent
with the institutions in free enterprise economies
although a good deal of government action is in-
volved. The plans proposed leave to each govern-



604



Departmenf of State Bulletin



niont the definition of the level of employment
wliich it proposes to maintain.

Recommendations are based on the premise tliat
memhei- jjovornmcnts are obli



Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 22, Apr- Jun 1950) → online text (page 20 of 116)