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TERNATIONAL TECHNICAL COOPERATION ACT OF 1949

(“POINT IV” PROGRAM)

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i 1950

COMMITTEE ON FOREIGNATPATRS
HOUSE OF REPRESENTATIVES

EIGHTY-FIRST CONGRESS

FIRST SESSION

ON

H. R. 5615

A BILL TO PROMOTE THE FOREIGN POLICY
OF THE UNITED STATES AND TO AUTHORIZE
PARTICIPATION IN A COOPERATIVE ENDEAVOR
FOR ASSISTING IN THE DEVELOPMENT OF
ECONOMICALLY UNDERDEVELOPED AREAS

OF THE WORLD

SEPTEMBER 27, 28, 30, OCTOBER 3, 4, 5, 6, AND 7, 1949

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JOHN KEE, West Virginia, Chairman
JAMES P. RICHARDS, South Carolina CHARLES A. EATON. New Jersey
JOSEPH L. PFEIFER, New York

ROBERT B. CHIPERFIELD, Illinois THOMAS S. GORDON, Illinois

JOHN M. VORYS, Ohio HELEN GAHAGAN DOUGLAS, California FRANCES P. BOLTON, Ohio MIKE MANSFIELD, Montana

LAWRENCE H. SMITH, Wisconsin THOMAS E. MORGAN, Pennsylvania CHESTER E. MERROW, New Hampshire LAURIE C. BATTLE, Alabama

WALTER H. JUDD, Minnesota GEORGE A. SMATHERS, Florida

JAMES G. FULTON, Pennsylvania
A. S. J. CARNAHAN, Missouri

JACOB K. JAVITS, New York
THURMOND CHATHAM, North Carolina JOHN DAVIS LODGE, Connecticut
CLEMENT J. ZABLOCKI, Wisconsin DONALD L. JACKSON, California
A. A. RIBICOFF, Connecticut
OMAR BURLESON, Texas

BOYD CRAWFORD, Administrative Officer and Committee Clerk
CHARLES B. MARSHALL, Staff Consultant
IRA E. BENNETT, Staff Consultant
SHELDON Z. KAPLAN, Staff Consultant
GEORGE LEE MILLIKAN, Staff Consultant
JUNE NIGH, Staff Assistant
WINIFRED OSBORNE, Staff Assistant
DORIS LEONE, Staff Assistant
MABEL HENDERSON, Staff Assistant
MARY G. CHACE, Staf Assistant

II

CONTENTS

LIST OF WITNESSES

uesday, September 27, 1949:

Page

- Hon. James E. Webb, Under Secretary of State---

4-9, 21-414

- Hon. Willard L. Thorp, Assistant Secretary of State for Economic

Affairs --

9-39

Tednesday, September 28, 1949:

- Hon. Charles F. Brannan, Secretary of Agriculture_-

43-63

riday, September 30, 1949:

Hon. Oscar Ewing, Administrator, Federal Security Administration - 65–79

- Hon. Nelson Rockefeller, formerly Coordinator of Inter-American

Affairs ---

79-97

onday, October 3, 1949:

Austin T. Foster, chairman of the treaty committee, National Foreign

Trade Council.

99-120

uesday, October 4, 1949 :

Hon. Charles Sawyer, Secretary of Commerce

121-132

Wynn C. Fairfield, secretary for general administration, Foreign Mis-

sions Conference---

132–153

fednesday, October 5, 1949:

L. G. Shreve, president, Counsel Services, Inc---

163-170

Dr. Gerald Winfield, formerly with Office of War Information----- 170-174

Hon. Christian A. Herter, Representative in Congress from the State

of Massachusetts

180–207

Rayford Logan, representing the National Association for the Ad-

vancement of Colored People ---

208–213

Hyde G. Buller, representing the Agricultural Development, Inc---- 213-217

nursday, October 6, 1949:

Hon. Spruille Braden, formerly Assistant Secretary of State in charge

of American Republic Affairs----

219-256V

Thomas M. Tarleau, attorney, of New York-

256–265

Very Rev. Msgr. John McClafferty, representing the National Con-

ference of Catholic Charities..

265-270

iday, October 7, 1949 :

Hon. Philip M. Kaiser, Assistant Secretary of Labor-

277-294

Hon. Julius A. Krug, Secretary of the Interior---

294-311

R. W. Gifford, representing the Detroit Board of Commerce--

311-329

STATEMENTS SUBMITTED FOR THE RECORD

st of H. R. 5615, Eighty-first Congress, first session---

1-3

ivate Enterprise and the Point IV Program (recommendations of the

National Foreign Trade Council Inc.)--

100-110

uited States loses in United Nations on a Point IV move Economic Coun-

cil bars plan to have experts draft lines for development aid (article

in New York Times, July 29, 1949)

149-150

port of special committee on Point IV program, Chamber of Commerce

of the United States---

154-162

xt of H. R. 6026, Eighty-first Congress, first session---

174-180

mmary of tax treatment accorded by other countries to business income

of their nationals from foreign sources.

182-183

tter of August 23, 1949, from Hon. Spruille Braden to Hon. Christian

Herter, Representative in Congress from the State of Massachusetts-- 221–224

int IV by private enterprise (address by Hon. Spruille Braden). 227-236

itement of Benjamin C. Marsh, secretary, Peoples' Lobby, Inc----- 270-272

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Statement of the Secretary of Labor on the International Technical

Cooperation bill..

273-

Statement on H. R. 5615 on behalf of the Detroit Board of Commerce- 312-

** Memorandum concerning technical-assistance program of the Economic

Cooperation Administration ---

Statement of H. A. Howard, national director of the bigger-and-better-

business program of Phi Beta Sigma, a national collegiate fraternity--330-

Statement of Robert E. Rodes, representing the American Trade Asso-

ciation of Morocco and the Morocco Post of the American Legion -- 332-

Letter of June 2, 1949, from Robert E. Rodes to Assistant Secretary of

State Willard Thorp----

Joint statement by Morocco Post No. 1, American Legion, and Ameri-

can Trade Association of Morocco

33

State Department hearings on Morocco-French proposals for continued

suppression of independent American business-

336

Letter of September 7, 1949, from Robert E. Rodes to the Secretary of

State---

338

Recommended terms for negotiation relative to concessions requested by

French officials in Morocco-

--Letter of September 30, 1949, from Albert Mevi, president, Tartaric Raw

Materials, Inc., to Assistant Secretary of State Willard Thorp------- 339.

Letter of August 28, 1949, from Robert E. Rodes to Assistant Secretary

of State George McGhee---

342-

United States exports to French Morocco, 1947 and 1948, by quarters.--

Letter of October 11, 1949, from Allan B. Kline, president, American

Farm Bureau Federation, to the chairman of the Committee on For-

eign Affairs

345

Letter of October 3, 1949, from Benjamin C. Marsh, executive secretary,

the Peoples' Lobby, Inc., to the chairman of the Committee on For-

eign Affairs, enclosing press release of Dr. Colston E. Warne, professor

of economics, Amherst College-----

346

Statement by Burlin B. Hamer concerning technical assistance in the

field of agriculture_--

347-

Letter of October 7, 1949, from Hamilton A. Long to the chairman of the

Committee on Foreign Affairs, in opposition to the Point IV program.- 350

NTERNATIONAL TECHNICAL COOPERATION ACT OF 1949

TUESDAY, SEPTEMBER 27, 1949

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,

Washington, D. C.
The committee met at 10 a. m., the Honorable John Kee (chairman)
residing.
Chairman KEE. The committee will come to order.

The Foreign Affairs Committee has under consideration today I. R. 5615, a bill to promote the foreign policy of the United States nd to authorize participation in a cooperative endeavor for assistag in the development of economically underdeveloped areas of the torld.

The purpose of this bill is to authorize the implementation of what 3 known as the President's Point IV program for the economic help f the backward or underdeveloped nations of the world. (H. R. 5615 follows:)

[H. R. 5615, 81st Cong., 1st sess.) BILL To promote the foreign policy of the United States and to authorize participation in a cooperative endeavor for assisting in the development of economically underdeveloped areas of the world Be it enacted by the Senate and House of Representatives of the United States f America in Congress assembled, That this Act may be cited as the "Interational Technical Cooperation Act of 1949".

SEC. 2. The Congress hereby finds that the United States and other nations f the world have a common interest in the material progress of all peoples, oth as an end in itself and because such progress will further the advance of uman freedom, the secure growth of democratic ways of life, the expansion of iutually beneficial commerce, and the development of international understandag and good will. The Congress further finds that the efforts of the peoples ving in economically underdeveloped areas of the world to realize their full apabilities and to develop the resources of the lands in which they live, can be urthered through the cooperative endeavor of all nations to assist in such deelopment. It is, therefore, declared to be the policy of the United States, in the aterest of its people, as well as that of other peoples, to promote the developient of economically underdeveloped areas of the world.

Sec. 3. It is the objective of this Act to effectuate the policy set forth in ection 2 by enabling the Government of the United States to participate in prorams, in cooperation with other interested governments, for the interchange f technical knowledge and skills which contribute to the balanced and interated development of the economic resources and productive capacities of ecolomically underdeveloped areas. Sec. 4. In carrying out the objective of this Act

(a) the participation of the United Nations, the Organization of American States, and their related organizations and of other international organiza. tions shall be sought wherever practicable; and

(b) the participation of private agencies and persons shall be encouraged,

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