United States. Dept. of State. Office of Public Co.

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

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wliicli the African peoples will feel that their
aspirations can best be .served by continued associ-


ation and cooperation with the nations of the free
world, both in their present status and as they
advance toward self-government or independence
in accordance with the United Nations Charter.
As long as the African peoples feel that their
aspirations can best be achieved by this association
with the free world, we believe that they will not
be lured by the enticements which the Commu-
nists may oifer them now or in the future. We
know only too well, and we must see that they
tmderstand, that communism does not offer them
the goal to which they aspire, but utter and com-
plete slavery many times more onerous than any
restrictions they have ever Iviiown.

Development Programs

We liave a number of instrumentalities thi'ough
which these objectives can be promoted. We have,
first, regular program funds available through
ECA to assist the African dependencies, strategic
nniterials funds, technical assistance funds, and a
special overseas development fund established
under ECA. Wliile assistance extended to the
overseas territories through these means is de-
signed to strengthen the economies of the countries
])articipating, the interests of the African peoples
themselves are given first consideration. More-
over, as the overseas territories themselves partici-
pate in an expanding world economy through in-
creased production and trade, the standard of
living of their peoples will be raised and their
welfare will be advanced.

In accordance with the diverse nature of the
ECA funds available, our activities under ECA
in Africa have been diversified in I'liaractcr.
Thus, for example, France has undertaken large-
scale imports to Africa of machinery and mining
erjuijjment for development purposes, which are
procured through the regular program funds.
We have participated in the development of stra-
tegic materials by conducting a geological and
topographical survey in British Africa and by
aiding in the expansion of coljalt production in
Northern Rhodesia and of kyanite in Kenya
Colony. ECA is undertaking technical assist-
ance activities, such as a preliminary railroad sur-
vey in East Africa; an agricultural reconnais-
sance in British Africa: and assistance in re-
search related to control of malaria and sleeping
sickness in Nigeria and East Africa, diseases
which have been major factois impeding devel-
opment of iwtentially proiluctive mineral and
agricultural lands.

A second tool through which to acliieve our ob-
jectives is oui' information and educational cx-
changi^ program, which will in tinu^ overcome
those diliiculties which have faci>d us in our vvhx-
tions with .\fiica. such as the need to enhance
nnitual uiideistanding between ourselves and the
Afi'ican jx'oples, and the need to dispel any dovibts
and suspicions concerning our motives which may
exist on the part of the admiuistei'ing authoi-ities.

Department of State Bulletin

A third means is the proposed Point 4 Program
of technical assistance, a projzram which will place
])rimary einithasis on the problems of the under-
developed areas themselves — both in the independ-
ent states and the dependent areas — and will seek
to contribute to tlieir wholesome and orderly de-
velopment. In the dependent areas, Point 4 pro-
grams will serve to supplement EGA activities in
fields which condition economic development, that
is, in health, education, and training programs.

These are the tangible instruments through
which we are working or intend to work. But
there are still other means through which we can
further our aims. One such important asset is
our friendly relations with the independent gov-
ernments oi" Africa, who look to us for assistance
and advice in meeting their problems. In Liberia,
for example, a republic originally established
with the assistance of American philanthropic in-
terests and the United States Congress, the Gov-
ernment looks to us for assistance in many aspects
of its economic and social development. In re-
sponse to its requests, we have sent a United States
public health mission to Liberia, and an economic
mission, which has surveyed the whole economy
of the country and is^assisting in the development
of agriculture, transportation, and related

Another factor is the relationship of mutual
friendship and mutual confidence which exists
between the LTnited States and the European
powers, a relationship which provides a channel
through which to cari-y on a full and frank ex-
change of views on African problems and to as-
sure ourselves that developments in the depend-
encies are moving in the direction which we desire.
On the technical side, for example, we are in close
consultation with the Overseas Technical Com-
mittee of the Organization for European Eco-
nomic Cooperation — the organization of states
participating in the Erp — -whom we are urging to
undertake a survey of transportation facilities in
the area south of the Sahara as a means of pro-
viding a framework for future development jfn
the individual territories. ^

In addition, the United States, through its par-
ticipation in the many organs and speciaJized
agencies of the United Nations, has still another
means of promoting objectives and of furthering
the political, economic, social, and educational ad-
vancement of the peoples of Africa. The ex-
change of ideas on administration among the va-
i-ious administering states and the contribution of
ideas by those nonadministering members who
have experienced common problems in their own
countries, can be a most fruitful development of
the international trusteeship system and of chap-
ter XI of the United Nations Charter. The
United Nations represents the international con-
science with respect to such territories — the final
guaranty that their progressive advancement can
and will be realized.

Finally, through all these diverse means, we
will seek to encourage the maximum toleiance
and respect for the human rights and dignity of
the African peoples, to the end that there can be
developed tlie must harmonious pattern of coexist-
ence possible between the white residents of Africa
and the indigenous peoples of the continent.
Through all these diverse means, we i)roposo tx)
work, in close cooperation with the European
powers and with the peoples of Africa them-
selves, to create a conviction on the part of the
African peonies — through tangible ])i()gress — that
their indiviuual and national aspirations can best
be achieved through continued association with
the United Nations and free nations.

Senate and House Committee
Continue Study of Foreign
Policy Questions

Statement by the President

[Released to the press by the White House May ^]

I asked Judge Kee and Secretary Acheson to
meet with me this morning in order that 1 might
canvass in a general way the over-all situation
on foreign policy legislation and at the same time
express to Chairman Kee my appreciation for the
arduous effort that he and the House Foreign
Affairs Committee have been putting forth since
the beginning of the session in considering the
multitude of foreign policy measures that require
the Committee's attention.

The Foreign Affairs Committee has been in
almost continuous session since the first of the
year and present indications are that there will
be no respite from their toil for several more
weeks. I thought it appropriate that I let Judge
Kee know I am both cognizant and appreciative
of the burden that he and his Committee are

Statement by Acting Secretary Webb

[Released to the press May 19]

The consultation subcommittees of the For-
eign Kelations Committee, set up by Senator Con-
nally, have begun to function. Thus far, there
have been four meetings between Departmental
othcers and the subcommittees : One with the Sub-
committee on Public Affairs, one with the Sub-
conmiittee on American Republics Affairs, one
with the Subcommittee on European Affairs, and
one with the Subcommittee on Far Eastern Affairs.
In the Dei)artment's opinion, these meetings have
been very successful, and it is hoped that meetings
will be held with all the subcommittees within the
very near future. The Department is ready to
meet at the convenience of the subcommittees.

June 19, 1950


The Oil Import Situation

iy Willard L. Thorp

Assistant Secretary for Economic Affairs ■

In the extensive discussion of the oil import
situation which has taken phice during the last
year and a half, there seems to be agi-eement on
at least one point — that is on the need for a strong
and healthy domestic petroleum industry. It is
also true that we must have sound coal and trans-
portation industries. One other point on which
those who have studied the problem would prob-
ably agree is that it is an exceedingly complex one
involving many important American interests,
some of which are clearly in conflict with others.

I doubt that any department of the Govern-
ment is more conscious than we are in the De-
partment of State of the need, in these critical
times, for a strong and vigorous economy in the
United States. To a very large degree, the influ-
ence and success of the United States in interna-
tional affairs depends on the economic well-being
of the United States. This is, of coui-se, a matter
of our general economic health which in turn de-
pends upon the health of our various industries.

It is charged by some that oil imports have
seriously injured important domestic industi'ies.
In discussing this subject, I should like to set out
briefly for you three series of facts. The first
series deals with various aspects of the oil in-
dustry. It indicates that the domestic oil industry
operated at a very high level of activity in 19-19
and that jjresent prospects are for the industry to
operate at even higher levels in 1950, notwith-
standing an increase in imports.

The second series of facts concerns the domes-
tic coal industry. It indicates that whatever the
problems of that industry, and it appears that
the industry has very real problems, oil imports
have not been primarily responsible for its

And, finally, I should like to point out briefly

' Statement made before the Subcommittee on Unem-
ployment of the Senate Committee on Labor anil Public
Welfare on .Tune C, 1950.

For other material on the international petrpleum
policy, see Buli.etin of Apr. 24, 1950, p. ti40.


some of the other important factors involved in
any proposals to limit oil imports. The factors
which I shall mention deserve serious considera-
tion by those who are concerned not only with
the problem of oil imports, but also with the
national interest in its fullest sense.

Effects on the Oil Industry

In studying the effects of oil imports on the oil
industry, one is immediately impressed by the
fact that the domestic oil industry's recent opera-
tions are among the best in its history. 1949 was
second only to 1948. And, it appears that 1950
will be a better year than 1949.

Production in 1949 was 50 percent higher than
in 1935-39. It was only slightly below the 1947
output, 8.4 percent below the 1948 level, and 11.3

Eercent below the record level attained in Decem-
er 1948. "Wliereas, production was reduced
steadily from January to July 1949, largely as a
result of curtailment in Texas by the Texas Rail-
road Commission, production has been rising
steadily in recent months. The Texas Railroad
Commission increased allowables 130,000 barrels
daily in April, 58,000 barrels daily in May, and
140,500 barrels daily for June. The June allow-
able is nearly 500,000 barrels a day higher than
the low point at which allowables were set in
July last year. After announcement of the June
increase, it was indicated that further increases in
July and August seem in prospect, which, if they
materialize, will bring Texas allowables to within
8 percent of their highest period. It thus appears
that production in 1950 is almost certain to be
hi^lier for the year than production in 1949.

The demand and stock jjositiou in 1950 give
further support to the prospects for an
in i)rodiiction in 1950 compared to 1949.

Due to the mild winter months and the midj'ear
recession, demand in 1949 was slightly below the
previous year, whereas an annual increase of 5
to 6 percent is normal. In the first quarter of

Department of Stale Bulletin

1950, demand, accordinjr to the Bureau of Mines,
was nearly 9 percent hifrlier than in the first
quarter of I'.Mi). And tiic Indepemlent Petroleum
Association of America tH'AA) recently forecast
an increase in demand for the year of nearly 6
percent over 1949.

The record production in 1948 was achieved
with the addition of nearly 300,000 barrels daily
to stocks of ci'uile oil and products. In 1949,
there was a snuill decline in stocks. And for
the first 4 moiitlis of 1950, statistics of the Bureau
of Klines and the American Petroleum Institute
show that stocks of cruile oil and principal pro-
ducts have declined nearly GO million barrels.
Thus, whereas there were steady and substantial
increases in crude stocks from July 1948 to June
1949, there has been a steady decline in stocks most
of the time since, indicating a rate of consumption
in excess of production.


In regard to drilling activity and especially ex-
ploratory drilling, where unfavorable develop-
ments affecting the industry's prospects would
become evident at an early stage, it is relevant to
note that more wildcats and greater footage were
drilled in 1949 than in any j'ear in our history.
AVildcat wells increased 6 percent and total footage
slightly when compared with the previous record
in 1948. Total well completions were only 2 per-
cent less than in 1948. So far this year, more wells
of all kinds have been drilled than during the
same period of 1949, and the high rate of drilling
is continuing.

The price of crude oil was higher in 1949 than
in any year since 187.5, except for 1920 and 1948.
It was 140 percent higher than the 1935-39 aver-
age, 30 percent higher than in 1947, and was only 2
percent less than the 1948 price. As a result, the
value of production in 1949 was exceeded only by
the 1948 values. Crude oil prices are currently
firm at slightly below the 1949 average.

Employment in 1949, in the crude oil and natural
gas production industry, was about the same as in
1948. If employment of drillers, rig builders, and
some white collar workers is also considered, the
picture remains the same, with average employ-
ment in 1949 equal to average employment in 1948.
In the case of both categories of workers connected
with crude oil production, there was a downward
trend in employment in the latter part of 1949
despite increases in production at that time and a
high level of drillin

Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 22, Apr- Jun 1950) → online text (page 98 of 116)