gency Fund (UNICEF). The United States continued support of both agencies until IRO was terminated on January 31, 1952,1 and it continues support of the Children's Fund to date.

Out of the settlement of mutual aid agreements underlying lendlease, came also the negotiation of the General Agreement on Tariffs and Trade (GATT) in November 1947 and later of the Havana charter for an international trade organization. These two moves were an attempt to lay down certain universal principles of commercial policy which soon ran afoul of economic regionalism and national interests.

UNRRA, which was terminated late in 1947, and the IRO ran in parallel with our bilateral civilian supply program, Government and Relief in Occupied Areas (GARIOA). The duplication was eliminated with the demise of the two international agencies. United States policies leading to the end of UNRRA were based on the expectation that in 1947 only a few countries would need help; United States policy embodied four points: (1) each country should state what it could contribute for relief, and use the U. N. secretariat as a clearinghouse to coordinate country plans; (2) recipient nations must first prove their need and distribute aid on the basis of need; (3) there was no justification for making grants of money without effective control by the grantors; and (4) nations diverting manpower to armies instead of producing necessities of life would not be entitled to relief. Based on this policy, our Government tried to phase out aid by a small post-UNRRA relief program. But the store of large-scale American assistance was just beginning, as the Marshall Plan was announced the following summer.

The National Advisory Council on International Monetary and Financial Problems, which we had created for ourselves at Bretton Woods, announced a longer term reconstruction policy in February 1946. Our objective was an international economic environment free from warring blocs and barriers obstructing the flow of trade and capital. And the International Bank was to be the principal agency to make foreign loans for reconstruction and development which private capital cannot furnish on reasonable terms. Our policy was to limit Export-Import Bank loans to the most urgent needs, until the International Bank could get underway. Basic to recovery was a free and full flow of private international loans, which could be easily serviced within the economic environment which the operations of the Bank and Monetary Fund would create and sustain. Another underlying assumption was that the United States would encourage imports. It soon became clear that these assumptions were false, and the policies untenable in the short run. The ITO never came into existence;

1 See Brown and Opie, American Foreign Assistance (1953), pp. 89-95. See Brown and Opie, American Foreign Assistance (1953), p. 111.

H. Doc. 497, 79th Cong., 2d sess., p. 17. Quoted in Brown and Opie, p. 113.

the Monetary Fund played a minor role, and the International Bank was able to supply only a fraction of the transitional assistance called for. Far from being able to reduce military expenditures, borrowing countries were soon under pressure from us to increase them. And the United States did little to remove trade barriers.

Most of the international agencies created to serve these ends have remained in existence, and have played a part in the conduct of economic aid as it has developed through the periods of economic aid, cold war, and post-Korean reconstruction. American policy and administration has taken them into account in varying degrees. Their current status and organization is set forth below.

b. Current U. N. Organizations

(1) Food and Agriculture Organization of the United Nations.— The Food and Agriculture Organization came into being on October 16, 1945, with the signing of its constitution by the delegates of 34 member nations. By the spring of 1954 its membership had increased to 71. Its purposes are raising of levels of nutrition and standards of living of the peoples under their respective jurisdictions, securing improvements in the efficiency of the production and distribution of all food and agricultural products, bettering the conditions of rural populations, and thus contributing toward an expanding world economy. As the central agency through which member countries exchange information, FAO promotes and recommends national and international action, furnishes such technical assistance as governments may request, including the organizing of such special missions as may be needed, and furthers the rapid exchange of information.

(2) International Labor Organization.—International Labor Organization is a specialized agency of the U. N., financed by the governments of its 66 member nations. It was originally created in 1919 as an autonomous part of the League of Nations. The United States became a member in 1934. The purpose of ILO is to improve labor conditions, raise living standards, and promote economic and social stability.

ILO sets international labor standards by working out conventions and recommendations for adoption by its members. These standards form an international labor code that covers employment, freedom of association, hours of work, migration for employment, the protection of women and young workers, prevention of industrial accidents, workmen's compensation, colonial labor problems, conditions of seamen, and social security.

(3) International Bank for Reconstruction and Development.-The articles of agreement of the International Bank for Reconstruction and Development were formulated at Bretton Woods by 44 nations in July 1944. IBRD began operations in June 1946 with 56 governments

as members. Its capital stock, subscribed in the currencies of its members, is the equivalent of about $9 billion. Its purposes are (1) to assist in the reconstruction and development of its member countries by facilitating the investment of capital for productive purposes, and thereby promote the long-range growth of international trade and the improvement of standards of living; (2) to make loans for productive purposes out of its own funds when private capital is not available on reasonable terms; and (3) to promote private foreign investment by guarantees of and participations in loans and investments made by private investors.

The Bank may lend to member governments and—with the guarantees of member governments to their agencies and to private enterprises in the member countries. As of May 1, 1954, the Bank had inade a total of 102 loans amounting to the equivalent of $1,892,948,464 in 30 member countries and 3 overseas territories of member countries. In addition to technical aid given to its members in the normal course of business, the Bank makes available various kinds of technical assistance unrelated to specific loans. For instance, general survey missions to aid in appraising the resources of the countries and development recommendations have been provided.

(4) IMF.-The articles of agreement on the International Monetary Fund (IMF) were formulated at Bretton Woods in July 1944. They were approved by the United States and came into effect on December 27, 1945, having been accepted by nations representing 80 percent of the quotas.

The purposes of IMF, as stated in the articles, are:

(a) To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.

(b) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

(c) To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

(d) To assist in the establishment of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

(e) To give confidence to members by making the Fund's resources available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

(f) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

Member countries in IMF numbered 56 in April 1954 and their combined quotas aggregated approximately the equivalent of $8.9 billion. The Fund began exchange transactions on March 1, 1947. At the end of April 1954, 24 members have purchased the equivalent of $1,149 million from the Fund's foreign exchange resources, paying corresponding amounts of their own currencies.

(5) UNREF.-Section 405 (c) of the Mutual Security Act of 1954 authorizes contribution to United Nations Refugee Emergency Fund (UNREF) of not to exceed $500,000 during fiscal year 1955. This agency is responsible for the care and maintenance of some 2 million refugees throughout the world, and are not, and have no prospect of, receiving adequate care from their host government or from other sources. Contributions to UNREF are made by 16 governments and many individuals.

(6) UNESCO.-United Nations Educational, Scientific, and Cultural Organization (UNESCO) is a specialized agency of the United Nations. Its constitution was adopted on November 4, 1946. As of January 1, 1954, there were 69 member nations.

The purpose of UNESCO is to contribute to peace and security by promoting collaboration among the nations through education, science, and culture, in order to further universal respect for justice, for the rule of law and for the human rights and fundamental freedoms which are affirmed for the peoples of the world by the Charter of the United Nations.

(7) WHO.-A constitution was signed on July 22, 1946, by 62 governments which led to the official establishment of the World Health Organization (WHO) in April 1948. WHO has 81 sovereign nations as members and 3 associated members.

The purpose of WHO, as defined in its constitution, is to raise the physical and mental health level of all peoples, going far beyond the older concept of health as a mere absence of illness. It recognizes that attacking disease at its sources is a better defense than setting up artificial barriers against epidemic spread. It aims for control and eventual eradication of communicable disease, and it recognizes that the health of all peoples is fundamental to the attainment of peace and security and is dependent upon the fullest cooperation of individuals and States.

The major undertakings of WHO include programs on malaria, tuberculosis, veneral diseases, maternal and child health, nutrition, environmental sanitation, virus and parasitic diseases, mental health, and training of public health personnel. WHO is continuing work on biological standardization, the unification of pharmacopoeias, the

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establishment of a uniform system of health statistics, the adoption and administration of international quarantine regulations, and the collection and dissemination of epidemiological information.

(8) UNICEF.-Section 406 of the Mutual Security Act of 1954 authorizes an appropriation not to exceed $13.5 million during the fiscal year 1955 to the United Nations Children's Fund (UNICEF). UNICEF is a focal point for help to children by various agencies within the United Nations system, and through this agency all countries have an opportunity to cooperate with others in providing effective assistance to the needy mothers and children of the world. The United States has been the mainstay of the Children's Fund since its inception. In 1953 a total of 53 nations pledged or contributed funds to this agency. UNICEF aids governments of the underdeveloped countries to enable them to build into their own activities programs of maternal and child health assistance which would not be possible in the absence of external help.

(9) UNKRA.-Section 132 of the Mutual Security Act of 1954 authorizes $205 million during fiscal year 1955 for defense support, relief, and rehabilitation, and other necessary assistance in those parts of Korea which the President shall have determined to be not under Communist control, as well as the continued availability of unexpended funds previously authorized. In addition, a contribution to the United Nations Korean Reconstruction Agency (UNKRA) not to exceed $3,452,615 is also authorized. United States contributions to UNKRA are estimated at $22 million.

(10) UNRWA.-Section 407 of the Mutual Security Act of 1954 authorizes a contribution not to exceed $30 million to the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) during fiscal year 1955, as well as the continued availability of funds previously appropriated. United States contributions to UNRWA have been estimated at $23 million for the relief, rehabilitation, and resettlement of more than 800,000 Arab refugees from their former homes in Israel.

2. Organization of American States

The International Union of American Republics was established on April 14, 1890, later to become the Pan American Union. The charter of organization was signed April 30, 1948, at Bogota.

The Organization of American States (OAS), made up of 21 republics of the Western Hemisphere, is now formally a regional agency within the United Nations. It was established to achieve an order of peace and justice, to promote the solidarity of the American States; to strengthen their collaboration; and to defend their sovereignty, their territorial integrity, and their independence. OAS is a pro