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M S

BEFORE THE

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Home COMMITTEE ON FOREIGN AFFAIRS

HOUSE OF REPRESENTATIVES

EIGHTY-FIRST CONGRESS

FIRST SESSION

CARD DIVISION

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

Printed for the use of the Committee on Foreign Affairs

50- ( 2 137 ha

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1950

97625

COMMITTEE ON FOREIGN AFFAIRS

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, Staf Assistant
MABEL HENDERSON, Staff Assistant
Mary G. CHACE, staff Assistant

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LIST OF WITNESSES

Tuesday, September 27, 1949:

Page

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

4-9, 21-41

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

Affairs-----------------

9-39

Wednesday, September 28, 1949:

Hon. Charles F. Brannan, Secretary of Agriculture_----------------- 43-63

Friday, September 30, 1949 :

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

Hon. Nelson Rockefeller, formerly Coordinator of Inter-American

Affairs-------

Monday, October 3, 1949 :

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

Trade Council-------

---- 99–120

Tuesday, October 4, 1949:

Hon. Charles Sawyer, Secretary of Commerce_---

- 121–132

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

sions Conference---

--- 132–153

Wednesday, 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

Thursday, October 6, 1949 :

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

of American Republic Affairs-------

--- 219–256

Thomas M. Tarleau, attorney, of New York ----

--- 256–265

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

ference of Catholic Charities---

--- 265–270

Friday, 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

1. Gif

the Detroit Board of Commerce

311-329

1-3

-----

pt. 1

CCO -----------

--

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-

-

-

Statement of the Secretary of Labor on the International Technical Page

Cooperation bill.---

--------- 273–277

Statement on H. R. 5615 on behalf of the Detroit Board of Commerce --- 312–314

Memorandum concerning technical-assistance program of the Economic

Cooperation Administration ----

----------------------------- 330

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

business program of Phi Beta Sigma, a national collegiate fraternity-- 330–332

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

ciation of Morocco and the Morocco Post of the American Legion--- 332–335

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

State Willard Thorp---

334

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

can Trade Association of Morocco---

--------- 335–336

State Department hearings on Morocco-French proposals for continued

suppression of independent American business-----

--------- 336–338

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

State-------------

----- 338–339

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------- 339–342

Letter of August 28, 1949, from Robert E. Rodes to Assistant Secretary
of State George McGhee--

--------- 342–345

United States exports to French Morocco, 1947 and 1948, by quarters---- 343

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

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

eign Affairs------

----------- 345-346

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_-

--------- 346-347

Statement by Burlin B. Hamer concerning technical assistance in the

field of agriculture-------

--------- 347–350

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.- 350–351

339

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INTERNATIONAL 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) presiding.

Chairman KEE. The committee will come to order.

The Foreign Affairs Committee has under consideration today 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.

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

[H. R. 5615, 81st Cong., 1st sess. ] 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

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the “International Technical Cooperation Act of 1949”.

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

SEC. 3. It is the objective of this Act to effectuate the policy set forth in section 2 by enabling the Government of the United States to participate in programs, in cooperation with other interested governments, for the interchange of technical knowledge and skills which contribute to the balanced and integrated development of the economic resources and productive capacities of economically 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 organizations shall be sought wherever practicable; and

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

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