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have advantages. To some extent we may be able
to provide these opportunities in areas where we
are highly competitive, in the expectation that the
energy and ingenuity of American producers will
prevent lower tariffs from resulting in substan-
tially increased imports. In other areas more im-

March 19, 1962


ports must be expected to come in. Since this
increased competition will take place because of a
governmental policy which is in the common inter-
est of the people as a whole, it is only fair that the
people as a whole, represented by their Govern-
ment, should be concerned about these social costs
and take whatever steps may be necessary to mini-
mize them.

But before going into the specific steps which
it may prove necessary for the Government to take
for this purpose, I should like to make several
observations bearing on the probable size of this

First, as I observed earlier, the United States
has the strength it has because, for a variety of
reasons connected with our history and the char-
acter of our people, we have combined an aggres-
sive and competitive spirit with a highly flexible
and adaptable economic system. It has been a
system in which change almost seemed to be a
good, in and of itself. People were always ready
to move to new places, to take new jobs, to try new
products, to start new plants, to experiment with
new ways of doing things. The success of the
American private-enterprise system is founded on
this unparalleled appetite for change, fed by a
fierce competitive spirit. Our road to riches is
littered with the skeletons of obsolete industries
and inefficient plants.

If we ever reach the stage when we value safety
and security in the economic struggle more highly
than new ideas or products or than better and
cheaper ways of doing things, we shall be starting
down the path of hardening economic arteries,
which can only be the beginning of the end for
United States economic and political power. As
we are to an increasing degree dependent on our
trade with a worldwide market, we must, to an
increasing degree, accept the changes resulting
from our competition in this market as being as
necessary to progress and as possible to make as
the changes we have used as steppingstones to bet-
ter things within the United States economy ever
since this country was founded. And we should
recognize that our economy over the years has be-
come better adapted to change tlian any other.
We should build on this fact as an asset in our
attempt to open up new trade patterns and as a
basis for confidence that we can exploit these new
patterns to our net advantage.

Second, as we can improve the rate of economic
growth in the United States by expanding exports

and by other means, we will make a major con-
tribution to easing the task of adjusting to imports.
In a rapidly growing economy, alternative uses
for capital and manpower and facilities will be
easier to find. Here is another administration
policy which is both good in itself and helpful in
making more practicable the bold venture the
President has proposed in his new trade program.

Third, two-thirds of all imports are not compet-
itive with United States products. They are
things we must have to survive and grow. The
remaining imports are not exclusively bad. They
will often cut costs and provide desired variety to
producers and consumers, thus making us more
competitive exporters and raising the real stand-
ard of living of our people. They can stimulate
United States ingenuity. I need only mention
compact cars, the answer of our industry to for-
eign small cars — a far more fruitful answer, I
would suggest, from the United States consumers'
standpoint, as well as that of the auto industry,
than higher tariffs. Another case is provided by
transistor radios, a field first exploited by the Jap-
anese on the basis of a United States invention but
the market for which is now being largely recap-
tured by the United States industry. During the
first half of 1961 Japanese exports of transistor
radios fell half a million units below the 1960 level
and deliveries from United States producers rose
by 1 million.

Moreover imports have not, even in the case of
the one-third where they are directly competitive,
been able to make deep, across-the-board inroads
on U.S. output, for in these very categories 88 per-
cent of U.S. consumption is still met from U.S.
factories and farms.

Fourth, wage rates have been much exaggerated
as a measure of costs and of competitive position.
They cannot, of couree, be wholly disregarded, but
from coal to cotton textiles to airplanes we are suc-
ceeding as exporters, despite wage rates 2, 3, or 10
times those of our competition. Quality, design,
worker productivity and skill, raw material and
energy costs — a dozen factors — are also important.
Coal is a bulky material, but we can sell it competi-
tively at the door of the Ruhr despite the $3.25
per hour our coal miners earn, and we do so be-
cause ours produce five times as much coal per
manshift as the European miners. As trade is
more and more in sophisticated products with
smaller and smaller labor content, and as wage
rates and prices abroad continue to increase more


Deparfment of Sfate Bulletin

rapidly than our own, such weight as this factor
now has is being reduced. And I must stress
again tliat our own practical experience com-
pletely undermines the validity of the charge that
wage rates are the dominant factor in trade com-
petition. Our most successful export industries
are our high-wage industries, and the most fre-
quent complaints about imports seem to come from
less efficient industries whose wage rates are below
the United States average.

But if necessary, we shall, we hope, have au-
thority from the Congress to assist firms, em-
ployees, or even industries to carry out approved
plans either to increase their ability to compete
with imports or to convert to new industries or
occupations with more promising futures. In
this way, without subsidies, we will be helping
meet the costs of adjustments required in the gen-
eral interest. And if all else fails, the President
would, of coui-se, be empowered to restore tariffs
and establish quotas to protect essential U.S.

The Trade Expansion Act is so designed, in
other words, as to enable the President to protect
and serve the interests of all. It will not require
the sacrifice of some for the common good. The
act contains explicit recognition that it will serve,
and is intended to serve, a broad range of national

As the President stated in his trade message to
Congress, ". . . enactment of this measure will
benefit substantially every State of the Union,
every segment of the American economy, and
every basic objective of our domestic economy and
foreign policy." And as he said in his state of the
Union message : ' "The United States did not rise
to greatness by waiting for others to lead. This
nation is the world's foremost manufacturer,
farmer, banker, consumer, and exporter. The
Common Market is moving ahead at an economic
growth rate twice ours. The Communist eco-
nomic offensive is under way. The opportunity is
ours, the initiative is up to us, and I believe that
1962 is the time."

' Ibid., .Ian. 29. 1962, p. 159.

News Media Invited To Attend
Foreign Policy Briefing

The Department of State announced on Febru-
ary 28 (press release 130) that a foreign policy
briefing conference would be held at Washington
March 26 and 27 for the press and the broadcast-
ing industry of the United States.

Editors of the daily and periodical press and
public affairs broadcasters of radio and television
from all 50 States are being invited to the con-
ference by Secretary Rusk. President Kennedy,
Secretary Rusk, and other principal officers of the
Department of State and other Government agen-
cies concerned with foreign policy will participate
in the meeting.

The conference will be the fourth of its kind.
Two were held in April and a third in August of
last year. Regional conferences have also been
held since last July at San Francisco, Denver,
Kansas City, Dallas, Chicago, and St. Paul. The
purpose of these meetings is to help in keeping the
American public informed about the foreign af-
fairs of the United States.

"The important developments since August
1961, when the last such conference was held
here— developments in Southeast Asia, in the Con-
go, at the United Nations, and elsewhere — make it
seem desirable that another meeting be arranged
at an early date," Secretary Rusk wrote in his let-
ter of inidtation.

The conference sessions will be conducted, as be-
fore, on a "background" basis, which means that
the information presented by the briefing officers
may be published and broadcast but without at-
tribution to an individual officer or to his agency.

Letters of Credence


The newly appointed Ambassador of Greece,
Alexander A. Matsas, presented his credentials to
President Kennedy on February 28. For texts of
the Ambassador's remarks and the President's re-
ply, see Department of State press release 132
dated February 28.

March 19, J 962



Calendar of International Conferences and Meetings'

Adjourned During February 1962

U.N. ECOSOC Commission on Human Rights: 14th Session of the New Yorli Jan. 8-Feb. 2

Subcoramission on Prevention of Discrimination and Protection

of Minorities.

ICAO Communications Division: 7th Session Montreal Jan. 9-Fcb. 9

ITU CCITT Plan Subcommittee for Africa Dakar Jan. 22-Feb. 2

UNESCO Conference on Development of Information Media in Paris Jan. 24-Feb. 6


North Pacific Fur Seal Commission: Scientific Committee .... Ottawa Jan. 29-Feb. 9

GATT Cotton Textiles Committee: 2d Session Geneva Jan. 29-Feb. 9

WMO Commission for Instruments and Methods of Observation: New Delhi Jan. 29-Feb. 16

3d Session.

U.N. ECOSOC Regional Seminar on the Participation of Women Singapore Jan. 30-Feb. 12

in Public Life.

U.N. ECAFE Committee on Industry and Natural Resources: 14th Bangkok Jan. 31-Feb. 9


OECD Trade Committee Paris Feb. 5-6

IMCO/ICAO/WMO Joint Expert Working Group on Coordination London Feb. 5-7

of Safety at Sea and Air: Preparatory Meeting.

3d Regional Civil Aviation Conference Bogotd Feb. 5-10

North Pacific Fur Seal Commission: 5th Meeting Ottawa Feb. 7-9

OECD Development Assistance Committee: Ad Hoc Coordinating Paris Feb. 8-9

Group on Economic Development in Latin America.

NATO Food and Agriculture Planning Committee Paris Feb. 8-9

NATO Science Committee Paris Feb. 8-9

GATT Working Party on Cereals Geneva Feb. 12-16

FAO Intergovernmental Committee on World Food Program: 1st Rome Feb. 12-19


U.N. ECAFE Inland Transport and Communications Committee: Bangkok Feb. 12-19

10th Session.

ITU CCIR Study Group IX (Radio Relay Systems) and Joint Paris Feb. 12-23

CCIR/CCITT Study Group on Television Transmission Over

Lon« Distances.

FAO Cocoa Study Group: Committee on Statistics Rome Feb. 13 (1 day)

OECD Oil Committee: Working Group on Stockpiling Paris Feb. 13-14

OECD Maritime Transport Committee: 2d Session Paris Feb. 14-16

U.N. Economic Commission for Africa: Presession on Work Pro- Addis Ababa Feb. 14-16

gram for Plenary Session.

U.N. ECLA Committee of the Whole: 8th Session Santiago Feb. 14-16

FAO Committee on Commodity Problems: 6th Session of Consult- Rangoon Feb. 15-26

ative Subcommittee on the Economic Aspects of Rice.

OECD Economic Policy Committee: Working Party III (Balance Paris Feb. 19-20

of Payments).

OECD Committee for Scientific and Technical Personnel .... Paris Feb. 19-23

U.N. ECE Conference of European Statisticians: Group of Rap- Geneva Feb. 19-23

porleurs on Comparison of Systems of National Accounts in Use

in Europe.

GATT Committee III on Expansion of International Trade . . . Geneva Feb. 19-28

U.N. ECOSOC Committee on Nongovernmentul Organizations . . New York Feb. 20 (1 day)

I MCO Council: Gth Session London Feb. 20-23

OECD Economic Policy Committee Paris Feb. 21-22

OECD Manpower Committee: 1st Meeting Paris Feb. 22-23

CENTO Economic Committee Washington Feb. 26-28

IBE Executive Committee Geneva Feb. 27-28

' Prepared in the Office of International Conferoncos, Feb. 28, 19fi2. Following is a list of abbreviations: CCIR,
Comite consultatif international dcs radio cotninunications; CCITT, Comitfi consultatif international telegraphique et
telephoni(|ui'; CE.NTO, Central Treaty Orgaiiizalion; ECAFE, Economic Commission for Asia and the Far E:ust; ECE,
Economic Commission for Europe; ECLA, Economic Commission for Latin America; ECOSOC, Economic and Social
Council; FAO, Food and Agriculture Organization; GATT, General Agreement on Tariffs and Trade; IAE.\, International
Atomic Energy Agency; IBE, International Bureau of Education; ICAO, International Civil Aviation Organization;
ILO, International Labor Organization; IMCO, Intergovernmental Maritime Consultative Organization; ITU, Inter-
national Telecommunication Union; NATO, North Atlantic Treaty Organization; OAS, Organization of American States;
OECD, Organization for Economic Cooperation and Development; U.N., United Nations; UNESCO, United Nations
Educational, Scientific and Cultural Organization; WMO, World Meteorological Organization.

480 Departmenf of State Bulletin

Calendar of International Conferences and Meetings — Continued

In Session as of February 28, 1962

Geneva Oct. 31, 195S-

Confercnce on Discontinuance of Nuclear Weapon Tests (not


5th Round of G ATT Tariff Negotiations Geneva Sept. 1, 1900-

InternatioiKil Conference for tlie Settlement of the Laotian Question. Geneva May 16, 1961-

United Nations General Assembly: 16th Session (recessed Feb- New York Sept. 19, 1961-

ruary 23).

OAS Group of Experts on Compensatory Financing of Export Re- Washington Jan. 5-

United Nations Wheat Conference Geneva Jan. Bi-
ll. N. Economic Commission for Africa: 4th Session Addis Ababa Feb. 19-

GATT Contr;icting Parties: Council of Representatives Geneva Feb. 22-

ILO Governing Body: 1 5 Ist Session (and its committees) .... Geneva Feb. 26-

lAEA Board of Governors Vienna Feb. 27-

United States Delegations
to International Conferences

18th ECAFE Session

The Department of State announced on March
2 (press release 139) that Philip M. Klutznick,
■will serve as U.S. representative to the 18th session
of the Economic Commission for Asia and the Far
East, which will be held at Tokyo March 6-19.

Edward J. Doherty, Counselor for Economic
Affairs, American Embassy, Tokyo, and Kufus
B. Smith, Counselor for Economic Affairs, Amer-
ican Embassy, New Delhi, will serve as alternate
U.S. representatives. Advisers to the delegation

Saul Baran, Chief. Japan-Korea Section, Bureau of Inter-
national Programs, Department of Commerce

Arthur Blaser. American Embassy, Tokyo

Robert L. Brown, Economic Development Division, De-
partment of State

William E. Culbert, American Embassy, Tokyo

Philip M. Davenport, American Emhas.sy, Bangkok

Clifford C. Jlatlock, Office of Development Planning,
Bureau of Far East, Agency for International Develop-

Paul E. Lanius, Jr., Office of International Economic and
Social Affairs, Department of State

The Commission meets annually to approve tlie
program of activities for the next 12 months.
One of the highlights of this session -will be a dis-
cussion of the program of teclinical assistance in
the Far East.

Secretary Rusk To Attend ANZUS
Meeting at Canberra

Press release 125 dated February 27

The Secretary of State has accepted an invita-
tion from the Australian Government to attend
the nth ANZUS Council Meeting, which will be
lield at Canberra May 7-8, 1962. Secretary Rusk
will fly directly to Australia from Athens follow-
ing the NATO ministerial meeting scheduled for
May 3-5, 1962. He will spend 1 day, May 9, in
Wellington before returning to Washington on
May 10. Because of the tightness of his schedule,
he will be unable to make other stops en route.

Previous ANZUS meetings have been held in
the United States. The last ANZUS meeting
held at Washington was in October 1959.^ The
Council meetings are held at mutually convenient
times under the terms of the security treaty be-
tween Australia, New Zealand, and the United
States, which was signed in 1951 and which pro-
vides for the foreign ministers of the respective
countries to consult from time to time regarding
the implementation of the treaty. ANZUS Coun-
cil meetings are based on broad informal discus-
sions of matters of mutual interest following no
fixed procedure. The forthcoming talks will pro-
vide the three governments with an opportunity
for a useful review of world developments.

' Bulletin of Nov. 16, 1959, p. 708.

March 79, J 962



Current Actions

United Nations

Memorandum of understanding concerning a grant to the
United Nations of Congo francs accruing to the United
States under the agricultural commodities agreement of
November 18, 1961 (TIAS 4925), between the United
States and the Republic of the Congo (L^poldville).
Signed February 13, 1962. Entered into force Feb-
ruary 13, 1962.


Law of the Sea

Convention on the continental shelf. Done at Geneva
April 29, 1958.'
Ratification deposited: Colombia, January 8, 1962.

Postal Services

Universal postal convention with final protocol, annex,
regulations of execution, and provisions regarding air-
mail with final protocol. Done at Ottawa October 3,
1957. Entered into force April 1, 1959. TIAS 4202.
Adherence deposited: Sierra Leone, January 29, 1962.



The Senate on March 1 confirmed John Bartlow Martin
to be Ambassador to the Dominican Republic. (For bio-
graphic details, see Department of State press release 136
dated March 2.)



Agreement amending the agreement of May 26, 1961
(TIAS 4801), relating to economic, technical, and re-
lated assistance. Effected by exchange of notes at
Yaounde December 8, 1961. Entered into force De-
cember 8, 1961.


Agreement amending the agricultural commodities agree-
ment of October 6, 1959, as amended (TIAS 4337, 4747,
and 4911). Effected by exchange of notes at Bogoti
January 31 and February 14, 1962. Entered into force
February 14, 1962.


Agreement amending the agricultural commodities agree-
ment of October 18, 1961 (TIAS 4876). Effected by
exchange of notes at Athens February 13, 1962. En-
tered into force February 13, 1962.


Agreement relating to the establishment of a Peace Corps
program in Jamaica. Effected by exchange of notes at
Kingston February 15 and 22, 1962. Entered into force
February 22, 1962.


Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 455; 7 U.S.C. 1701-1709).
Effected by exchanges of notes at Rabat February 9,
1962. Entered into force February 9, 1962.


Agreement relating to the establishment of a Peace Corps
program in Tunisia. Effected by exchange of notes at
Tunis February 7 and 13, 1962. Entered into force
February 13, 1962.

Agricultural commodities agreement under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended (68 Stat. 455; 7 U.S.C. 1701-1709),
with exchange of notes. Signed at Tunis February 16,
1962. Entered into force February 16, 1902.

' Not in force.

Cliecic List of Department of State
Press Releases: February 26-IViarcli 4

Press releases may be obtained from the OflSce
of News, Department of State, Washington 25, D.C.

Releases appearing in this issue of the Bulletin
which were issued prior to February 26 are Nos.
102 of February 15 and 118 of February 23.


Mann : Laredo, Texas.

U.S. participation in international

Rostow : CENTO Economic Committee.
American polo teiixn visits Pakistan.
Rusk : VOA 20th anniversary.
Rusk to attend ANZUS meeting.
Mann : "The Semantics of Commu-

No. Date


























Ball : Senate Special

Trezise : Senate Foreign Relations

Tubby : Senate Special Preparedness

Foreign policy briefing conference (re-

Rusk : interview on German tele-

Greece credentials (rewrite).

Visit of Thai Foreign Minister.

McConaughy sworn in as Ambassador
to Pakistan (biographic details).

Visit of President of Cameroon.

Martin sworn in as Ambassador to
Dominican Republic (biographic de-

Salute to new nations of Africa.

Rusk : news conference.

Delegation to 18th BCAFE session ( re-

Rusk : interview on "Eyewitness to

•Not printed.

tlleld for a later Issvie of the Bulletin.

Department of State Bulletin

March 19, 1962


Agriculture. American Agriculture in Foreign

Trade (Martin) 471

American Republics. America's Goal — A Commu-
nity of Free Nations (Rusk) 448

Argentina. $150 Million In Loans Made Available

to Argentina 470

Asia. ISth ECAFK Session (delegation) .... 481

Atomic Energy

Nuclear Testing and Disarmament (Kennedy) . . 443
Secretary Rusk Interviewed on "Eyewitness to
History" (Herman, Rusk) 464

Australia. Secretary Rusk To Attend ANZUS
Meeting at Canberra 481

Brazil. Workers of Brazil Contribute to West's
Ideals and Hopes ( Kennedy ) 470

Canada. Secretary Rusk's News Conference of

March 1 455

Congo (Leopoldville). America's Goal — A Com-
munity of Free Nations (Rusk) 448

Cuba. Secretary Rusk's News Conference of

March 1 455

Department and Foreign Service

Confinnationa (Martin) 482

Secretary Rusk's News Conference of March 1 . 455


America's Goal — A Community of Free Nations

(Rusk) 448

^uclear Testing and Disarmament (Kennedy) . . 443

President Kennedy Reafltoms Views on Framework
for Conduct of Disarmament Negotiations (Ken-
nedy, Khrushchev) 465

Secretary Rusk Interviewed on "Eyewitness to His-
tory" (Herman, Rusk) 464

Secretary Ru.sk's News Conference of March 1 . 455

Dominican Republic. Martin confirmed as Ambas-
sador 482

Economic Affairs

American Agriculture In Foreign Trade (Martin) . 471

I8th ECAFE Session (delegation) 481

Secretary Rusk's News Conference of March 1 . 455

Bducational and Cultural Affairs. Secretary Rusk's
News Conference of March 1 455

Foreign Aid. $150 Million in Loans Made Available
to Argentina 470


America's Goal — A Community of Free Nations
(Rusk) 448

e X Vol. XLVI, No. 1186

U.S. Suggests International Authority To Control

Berlin Access Routes 463

Greece. Letters of Credence (Matsas) 479

Indonesia. Secretary Rusk's News Conference of
March 1 455

International Organizations and Conferences

Calendar of International Conferences and Meet-
ings 480

18th ECAFE Session (delegation) 481

Secretary Rusk To Attend ANZUS Meeting at Can-
berra 481

Labor. Workers of Brazil Contribute to West's
Ideals and Hopes (Kennedy) 470

Laos. America's Goal — A Community of Free Na-
tions (Rusk) 448

Netherlands. Secretary Rusk's News Conference of

March 1 4.55

New Zealand. Secretary Rusk To Attend ANZUS
Meeting at Canberra 481

North Atlantic Treaty Organization. Secretary

Rusk's News Conference of March 1 . . . . 455

Norway. Prime Minister of Norway To Visit United

States 470

Presidential Documents

Nuclear Testing and Disarmament 443

President Kennedy ReaflSrms Views on Framework

for Conduct of Disarmament Negotiations . . . 465
Workers of Brazil Contribute to West's Ideals and

Hopes 470

Public Affairs. News Media Invited To Attend For-
eign Policy Briefing 479

Treaty Information. Current Actions 482

U.S.S.R. President Kennedy ReafBrms Views on
Framework for Conduct of Disarmament Negotia-
tions (Kennedy, Khrushchev) 465


America's Goal — A Community of Free Nations

(Rusk) 448

Secretary Rusk's News Conference of March 1 . 455

Name Index

Herman, George 464

Kennedy, President 443,465,470

Khrushchev, Nikita 466

Martin, Edwin M 471

Martin, John Bartlow 482

Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 46, Jan- Mar 1962) → online text (page 92 of 101)