S-0981-0004-03-00001.Pdf

S-0981 -0004-03-00001

Expanded Number S-0981 -0004-03-00001

Title Items-in-Public interest correspondence - c-2. Public interest and opinion

Date Created 15/0511945

Record Type Archival Item Container S-0981-0004: United Nations Conference on International Organization (UNCIO) subject files

Print Name of Person Submit Image Signature of Person Submit

-1I-- .1 June 25, 1945.

My dear Mrs. Casey: I acknowledge your letter of June 20p 1945, with enclosures, and I thank you for your courtesy in making your views available to the Conference. The spiritual devotion which prompted your suggestions Is appreciated, Sincerely yours,0 Faa, the Secretary General:,

Bryant Muxnford Acting Information Officer

Mrs. Lillian G. Casey, 1900 North St. Andrews, Place, Hololywood 28, California.

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/ FIND OR LOSE . AThe famous writer, Pascal, rightly says there are two types of men-those who are afraid to lose God, and those who are afraid that they might find Him. Today's I am an atheist because it's easier type of intdlectual is afraid discovering.God might make him change for the better.~o. he runs around shouting: Cod does not exist and you -can't prove anytl~g about him. The truth is just the opposite. We can clearly prove God does exist and will do so thoroughly in this column. But let's take the other side. We have defied for centuries and still do defy the atheist to prove this one statement: There is no God. Try it out. Watch the deniers flounder. Reason rejects atheism.

FEW SAMPLES . .. Not as final proofs hut just warmups, consider a few tipoff ideas. Every effect must have a cause. If this paper suddenly turned crimson under your eyes, you'd say at once: What caused that? You'd not be so stupid as to say: Pure chance, nothing to it. Yet men will see the universe around them and pretend to believe it came into existence purely by chance;, So long ago thinking men worked out a principle: Whatever begfins to exist must have a cause for its existence outside itself. This universe could no more come together with all its precise laws than Golden Gate Bridge could just happen. Chance could not explain a Hamilton watch keeping precision time. How explain a world?

SILENT VOICE . . . Ever notice how all men have within them a sense of right and wrong? A man knows inside when he's doing wrong. An inner voice, silent to others but loud to each person's own ears, rebukes our evil conduct. We did not create that voice, since it so often does just the opposite of what we'd like. It comes not from other men, for so often it blames what they praise, condemns what they allow. This inner voice is a law of right and wrong within us. Who made this law? What lawgiver is behind it? Only a Supreme Being could so write law upon human hearts. There just must be a God, or you can never explain Conscience. SQUARE DEAL ... As a kid, remember how you pined for someone to punish the bully at school? Inside, you felt some day justice would be done to such cheaters. Humanity feels that way always. We yearn to see justice done to all men. Who started that yearning? Someone higher than we is behind that instinct. Obviously, justice is not done here on earth. There has to be a Someone Who will do justice to all. Only a God can. If justice would never be done, how explain a worldwide and instinctive yearning? The good often suffer; the wicked often prosper. Our reason proclaims: Some day we'll all get justi~ce. Only if God exists. -HUGH CALKINP, O.S.M.

-OW 177 Printed in U.S.A. UPPED-Major General William R. MARTYRS-Only about 1,200 Cath- Arnold, who recently ended his tour olic priests from Poland, of a total as Chief of Army Chaplains and is of some 5,000 imprisoned by the now assistant Inspector General of Nazis during 'the war, have been the Army, has been named Titular found alive. Most of the priests were Bishop of Phocaea and appointed placed in the concentration camps Military Delegate, succeeding Bishop of Majdanek, Oswiecim, and Dachau, John F. O'Ilara. - The Catholic and died as a result of torture, Transcript. starvation, and forced labor. - Queen of All Saints, Prey fora's. NCWC. 80,000-Peace celebrations at Lis- Qs~ee of Apostles, Pray for us. bon were highlighted by a pilgrim- FAME -How many Catholics are age of 200,000 Catholics to the there who realize'that of the 10 old- Shrine of Our Lady of Fatima. time baseball players recently chosen Eighty thousand received Holy Coin- for the Baseball Hall of Fame, at inunion.-RNS. least seven were Catholics ?-M1ich- Queen of Virgins, Pray for us. igan Catholic. HONORED-Sister Tharsilla of St. Queen of Angels, Pray far as. Joseph's Convent, Baton Rouge, La., CONVERT -Achined Abdullah, 64, a Nun for 60 years, was presented playwright and author, -who died on with the Golden Deeds trophy as his birthday, May 18, was a British outstanding citizen for her work army officer in the last war, and re- among inmates of prisons, hospitals putedly the son of Grand Duke and homes for the poor. Sponsors Nicholas of Russia and an Afghan were the Baton Rouge State Times. princess. He was reared a Moslem and Morning Advocate.-The Cath- but died a devout Catholic. -The olic Herald. Register. Queen of Confessors, Pray far us. Help of Christians, Pray for as. RE-STARTED-Yi Shih Pao, a Cath- ALAS-Those who now see "the ter- olic daily paper in Chinese, has re- rible consequences of their errors sumed publication in Chungking; could have been spared had they Bishop Yu Pin, Vicar Apostolic of listened to the Church," His Holi- Nanking, is its publisher.-The Uni- ness Pope Pius XII declared.-The verse. Observer. Queen of Mlartyrs, Pray for us. Gate of Heaven, Pray for us. SYMPAThY-A letter conveying to .FRIEND? -A Vatican City broad- the women of Poland sympathy with cast reported by the Federal Com- their suffering and admiration at munications Commission said that their courage and fortitude has been "thanks to Christianity, labor has sent on behalf of Catholic, Anglican risen to an important position in so- and Free Church women of Britain. ciety," but that "workers cannot re- -Catholic Times. gard as a real friend one who denies Queen of Prophets, Pray for us. Christ," according to the Office of ALLOWANCE-A system of family War Information. - The Catholic allowances goes into effect in Can- Messenger. ada in July. The law provides an al- Refuge of Sinners, Pray for us. lowance of $5 a month for a child SOVIETIZATION - Poland today is under 6 years of age; $6 for a child undergoing a process of "virtual SO-' between 6 and 10; $7 for a child be- vietization," the influential British tween 10 and 18, and $8 for a child weekly review, The Eeonom~is~t, between 18 and 16.-Catholic Sen- charged recently.-The Catholic Uni-' tinel. verse Bulletin. JUNE 15, 1945 15 tt_

SHE'S OUR MOTHER . .We' often get protests about the "near-idolatry tone" of our Novena. Today we especially address non-Catholics, whether Jewish, Protestant, or just American Pagan. We'd like to invite you to meet the world's most charmhing woman, God's Masterpiece-Mary, the Mother of Men. Yes, Mother of Men, not just Mother of Christ. God intended Mary to mother the human race created by God and redeemed by Christ. It's stark tragedy that this Heavenly Mother has been cut off from her own children. But so it has happened. The Jewish Faith has forgotten their own Greatest Daughter: Protestants have come to ignore "our tainted nature's solitary boast" (Wordsworth, non-Catholic, so titled Mary) ; Pagans have never really known Mary at all. May we invite you all to meet Our Mother, meet her at our Novena by joining us in prayer? (YOU'DSOON SEE ... My dear non-Catholic friends, you can't blame a man for wanting you to honor and respect his mother. You would hart blame any person for rising angrily to refute a slur against his motherjJ So you won't blame us Catholics for anxiously desiring that you come to Klow and love Our Mother. And you'll understand that we've often been deeply hurt by the callous neglect and the positively unjust attacks that have been hurled at Mary, Mother of Men. For we not only believe Mary is such a mother: we can prove it from a source we're sure you will respect-Sacred Scripture. St. John tells the story in 19:25. As Christ lay dying, He said to Mary: "Woman, behold thy son." And, then to John: "Behold thy mother." John represented all faithful friends of God. Christ meant that message for all men: "Behold thy mother."

YOU RS, TOO ... John took that message to heart and received gratefully Christ's tender gift. -We invite you today to join us in prayers that you may take Mary as your Mother and give yourselves to her as children. Why turn away from such loving arms? Why refuse Christ's last pleading word to mankind to become her children? Too long have you been deprived of your birthright. Come back to Mary's motherly care, and you'll find the answer to life's riddles. Like the Jewish gunner who credited Mary for bringing his ship through bombing raids (because he wore her medal), you'll discover Mary's protection 'stretches worldwide over God's children. God wanted it that way. One Father in Heaven watches over us all. One Heavenly Mother would plead our needy cause before God. Sure, God could handle all that Himself. But He chose to assign the task of "mothering the human race" to His own Mother. Today, as all America begs God for Final Victory and Peace, will you kneel with us before Our Mother? -HUGH CALKINS, O.S.M.NOTE 8 NOVEA 8 NOVENA NOTES YOUR. LOST SHEEP-Your pres- RITA OF LOS ANGELES-A voca- ent conduct is not conformable to a tion to the religious life is a call- *child of God. It cannot be sanc- ing to a sublime, holy and a happy tioned and condoned. Why not for-, life. Pray God to grant you this de- get your hatred of God through sin sire and calling. and begin to love Him? Try to ap- Mother inviolate, Pray for us. preciate the many good things you T.O.S.-St. Agatha is one of the have from Him, such as your health, most highly venerated virgins of your home, etc., and especially the Christian antiquity. According to inestimable privilege He gives you tradition she was born of a noble of sharing His very life through family and was persecuted by a sanctifying grace. Does this mean Roman senator through his many nothing to you? Is it not worth any avowals of love. She spurned his of- sacrifice to preserve? Can God give fers, and as a result was committed you anything better than Himself? by him to the charge of a prostitute. How abh.ut a little more humility; a After the customary torture, the Ro- firm purpose of amendment; and, a man official ordered her breasts cut sincere Oh God, I thank Thee? off, but St. Agatha was cured by St. Virgin most powerful, Pray for us. Peter in a vision, and she died in MISS DORIS-Once a sin is con- prison. Her feast day is observed fessed properly it is forgiven and February 5th. Her name is included forgotten forever. God no longer in the Canon of the Mass. holds it against you and the sin does -THE OPERATOR not leave any mark upon your soul. Furthermore, you may pray for any favor from God. MISSING PERSONS Lorenza Miranda-formerly lived Virgin most merciful, Pray for us. on South May St. in Chicago. A DEVOTEE OF BLESSED MOTHER -Your confidential request has been The Switchboard is open to No- fulfilled. venites the world over. Address Mirror of Justice, Pray for us. questions to THE OPERATOR, 3121 Jackson Boulevard, Chicago 12, AGNES BORSENIK-Continue your. Ill. Send your name and ad- prayers perseveringly. Your prayers dress with your question; specify will be answered and God will give whether you want a personal re- you, perhaps, not the 'favor you ply or a reply in Novena Notes, seek but another and greater one. if possible your instructions will Always pray with the understand- be cardied out. ing--if God will it. JUNE 115, 19-45 7 -- C,

SOFT PEACE ... If Christ walked America's streets today, He'd be killed off for preaching a "soft peace." Christ would talk of: "Of old it was said to you . . . an eye for an eye and a tooth for a tooth .. . but I say to you: Love your enemies; do good to those who hate you; pray for those who persecute you, and you shall be children of yuFather in Heaven." Our age loves slogans as substitutes for thinking.( The rage now is to preach a "hard peace" and decry as folly a "soft pence." So Christ would get the gate: much the way G d got a closed door at San Francisco, lest 1I Russia's atheists be offended. )Yet we talk of America as a Christian' S nation. When are Americans g-ling to practice Love Of Neighbor? EXPERTS ... This "hard peace" gets a great play from chit-chat columnists like Winchell who suddenly are international experts. His type moan always about "fascism" but never condemn communism, fascism's wickedest offspring. The bleating of these "hard peace" advocates is nothing but bate and revenge warfare. They speak of "enjoying vengance" for each lown bombed by enemies, each prison camp, every executed American. Revenge philo'sophy comes from only one religion-Judaism. Now watch the protest against "Anti-Semnitism" in this column. More labels and slogans instead of thought. Christ Himself condemned this hate and revenge way of living. America is a Christian nation, founded upon Christ's doctrines. We must not spread hate which breeds war. War to "get even" is sinful hate. JUSTICE . .. Of course the Allied Nations must administer strict justice to war criminals. But we can't wipe out nations. We can't follow wild Wash- ington leaders screaming: "Exterminate the Saps." Or else we sink lower in humanity than those we vanquish. Have no illusions. You are for or against Christ on Hils social doctrines. He commanded: "Love your enemies." Call that "being a sucker"? Maybe, but He gave us orders. Stop this silly talk of "doing to them just what they did to us." We can't murder millions to satisfy lustful hate of a noisy minority. WE PRAY ,. . "Forgive us our debts, as we forgive our debtors." God will do just that. The yardstick of forgiveness is: "What you do to others, God shall do to you." What will God say about "hard peace" talk and wild "let's get even" warfare? We won't forget atrocities and forgive all that our enemies did? Okay, then God won't forgive America's sky- high inmnorality. God will punish severely our alarming divorce rate (the world's highest); our scandalous juvenile crime; our bloody abortions; our suicidal birth prevention. We'll win this war by power alone? Yes, then start another by hate. The next may wipe us out. Stop Hate. -HUGH CALKINS, O.S.M. JUNE 1, 1945 * *fottigIs * * Diid Vow Kamowi "4Thisis the way we do things in The Rev. Dr. Crane delivered a Venice, Ill.," is the preface for the sermon last month in the Central following newspaper advertisement: Church of Detroit; in fact it was the second of a series of sermons on "4permanent suggestions from popular songs." The title of the sermon SORROWFUL MOTHER was "Don't Fence Me In." NOVENA St. Thomas More, the great Eng- EVERY FRIDAY EVENING lish Lord Chancellor, was much at- AT 71:30 tached to animals. His pets included Novena Prayers .. Community a monkey and a fox! Erasmus wrote Singing with Soldier's Litany. of him: "All the birds in Chelsea -AT- come to him to he fed." ST. MARK'S, VENICE The first recorded flights in heavier than air machines-airplanes ALL ARE WELCOME! -were made in Spain by Father A Servant of Mary. Laurence Be Gusniaa, a Brazilian- born priest. His methods of propul- Mother most pure, Pray for us. sion are not clear but it is recorded Laurence Maguire, Louisville, Ky., that hbd\ made several flights after rightly calls attention to our slip in the matt\ of our modern gliders. referring to a Bishop as "Rt. Rever- end" instead o, euseingthe correct Believe t or not-Venice, Italy, is form "Most Re ered W tried 150 ý s TilER NORTH than Vla- hard to blame a4the type-setter. divostok, -ia! Mother mos p , Pray for as' The Sisters f Charity from Em- Lillian Reinhold, incinnati, 0., metsburg, Mar land, have been reg- chattily reports that erta church, ular nurses at e 'Louisiana State St. Patrick's, in her ci t , has been Charity Hopta in New Orleans, newly decorated. This tii e didn't La., since 1822- record that nq forget to add that fl~athe Jose E. other state institu ion can equal. Collins is pastor, and assi ant pas- tors are Father Jolhmn C. Cog Ian and One GI when offered a Bible said, Father Robert A. Maher. "Okay, cigarette papers might be Mother of divine grace, Proy for as. scarce on the nther side." On the Ann McMahon from away up on way over he idly read the hook. Re- the 38th floor of a Chicago office- sult: He sent back his first week's building shyly mentions she has salary as a corporal to purchase been a No venite for more than four Bibles for others to read! years and sends N.N. to a veterans' Every year on the Feast of St. hospital where they are "enjoyed Agnes, January 21, two lambs are and appreciated." blessed in the church named after Queen of Patriarchs, Pray for us. her. From the wool of these lambs Whoever is sending N.N. to Chap- are made the pallia which the Pope lain Robert G. Geiger at Abiliene, sends to Archbishops throughout the kindly change the address to Green. world. yulle, Texas. --J. M.. VosaURGn, O.S.M. 1'q NOVENA.NOTES The'New 'Copperhen s" By BENJAMIN, DeCASSERES 'COPPERHEAD: A poisonous snake, in the COMWMUNIST youth movement allied to the rattlesnake but without must volunteer as hostesses in U. S. 0. rattles."ý-Webster's Dictionary. canteens, churches, social groups- wherever these soldiers, sailors and HIE Copperhead during the Civil War Marines seek recreation and are prone ýT was a Northerner who sympathized to listen to a persuasive voice." with and aided the enemy. We also had Copperheads during the HIAT "persuasive voice" really comes Revolution. They were called "Tories" and T from the Kremlin. "Loyalists," being enemy plotters against It is an invitation to our service men Washington and the Continental Army. TO TURN TRAITOR TO THE AMERI- In fact, we have had Copperheads in all CAN PATTERN OF LIFE. our wars, but today for the first time in our history the Copperheads have an or- Ruth MeKenney, also of The New ganized party, DIRECTED FROM Masses, says: ABROAD, on our soil. "Those boys must be won over.' If it It is called the Communist Political is too late to win the veterans in our , Association, which has now been ordered, hospitals then we must enlist those who via Paris, to RESUME ITS REVOLU- have not as yet gone overseas and those TIONARY PROGRAM4 IN THIS COUNTRY who are yet to return here. and work, as it did betwee~n 1939 and 1941 "Hfe n ce fo r.th OUR ACTIVITIES 'for the furtherance of the totalitarian, WILL EVOLVE IN HOLLYWOOD, imperialistic Russian' strangle-state. WHERE THE PRESTIGE, INFLU- ENCE AND SUPPOR~T OF OUR COM- RADES IN THE FILM INDUSTRY will W E HAVE now an organized and a strengthen our ranks and carry our partly free-lance ("feliow-t ra ve I- fight to people from every walk of life." liug") RUSSIAN COMMUNIST PARTY in America, just as we once had aý Nazi W HAT "FIGHT"? Bund, organized and unorganized. TVWhy, the fight to fasten on us The new Copperheads are AMERICA LASTERS and STALIN FIRSTERS. either by propaganda or force of arms the T h e s e Copperl~eads-TRAITORS TO Russian system of state slavery. THEA'AMERICAN. WAY OF LIFE AND This rise of the Copperhead party has, OURt VERY LIBERTIES-are ensconced even caused Mrs Roosevelt, who has been in high 'positions in Washington and. else- finltothese imported radicals, to where, just as they were;during the Revo- souind a note of nervous warning in her *lutionary and' .Civil Wars. column, as follows: They have no "rattle," as the dictionary "At the mom ent certain actions of *says., American Con~mmunists in this countryv Many of them have a "coo" like: turtle have added fuel to the general fear o~f doves. Communism as an international force. The French Communist leader and the expose in the Hearst press of a meeting,The of these RED BUNDISTS reveals American Communists who encourage ,some startling projects outlined for what a policy of world revolution have done has been well-called "The Battle of the peace of the world harm. The America." .American Communists have been cooperative where they could be. But now, HE meeting took Place in Hollywood, as we understand 'it, they are out to T where these Moscow propagandists FORCE COMMUNISM ON OUR DE- can command the motion picture industry, MOCRACY. That we will not tolerate." now slimy with snake-trails. Listen to this piece of Copperheadism W"TILL we "tolerate" it? And if so, HOW from Bruce Minton, associate editor of TVMUCH LONGER? The New. Masses: This is a war of tl~e crawling RUSSIAN of "We must INFILTRATE the ranks COPPERHEAD viper against the free- ofthese service men-the veterans re- flying AMERICAN EAGLE.' turning from the wars and the neophytes Where do you stand, YANKEE yet to be called into action. DOODLE, UNITED STATES' AMERI- "The thousands of pretty young girls CANS? it they gave to cities and hamnlets, mountains and val- leys, and lakes and rivers and harbors of God's world the names of God and His saints. To one of the most beautiful of all they gave the name of the saint himself-San Francisco. It is to this city of San Francisco that the representatives of the "peace-loving" nations of the world have come this year to decide upon the principles by which man will be ruled for the next generation or longer. In one way or another, the whole of God's world comes under their discussion-2,OOO,0OO,OOO of God's people, all the wealth of God's earth, food, fuel, I clothing, the sea, air and land. To leave God out of this conference is like leaving parents out of their own home. It is as if the older children of a family, gathered together under their parent's roof, divided up the family estate without the consent of, or consideration for, the parents who own it. When religious people insist that the official representatives of nations recognize and observe moral and religious principles, it is not to foist a private theory of their own on omnipotent rulers who hold infinite sway; it is to remind public servants that they are not only servants of the people but first of all servants of God, their Lord and Master. God has the first say as to what shall he done to His world and to His people. This is why there are certain inalienable rights, why the human person is inviolable, why small nations and minorities have a right to justice which no might can destroy. God wants it so in His own world. The Dele- gates at San Francisco must recognize this fact.

In the City of GOD did not give a set of blue-prints in which every last detail was specified. The main lines He did set down, permanently and immutably, beyond the power San Franciosco of any human agency to change or abrogate. But over and above this area of fundamentals, He left a wide THE San Francisco Conference needs the field free for development and progress through hu- spirit of St. Francis of Assisi. If evera man ingenuity. To men He gave the intelligence they man had the true view of this world, need to bring about this progress, but He expects them St. Francis was the man. When he looked to use that same intelligence to recognize the boun- out through his great brown, burning eyes, daries between the domain which is exclusively God's everything he saw filled him with perpetual to regulate and the areas in which He leaves men delight and wonder because to him every- free to experiment. The Delegates at San Francisco thing in the universe was God's. Every human need to recognize that, too. being, every bud and flower, every hill and The spirit of the late President Roosevelt has been star; even fire, pain and Pleasure not only felt at the Conference, as it should be. But it is far came originally from the creative hand of God more important that the spirit of St. Francis be felt but were still God's own possessions. The in the city of San Francisco. For there is an unseen Delegates need to understand that fact. Presence at the Conference tables listening to men de- Men do not need to be canonized saints to cide what they want to do with His world and His see it. For seven centuries the members of people. God the Creator and Lord of the world, on the Franciscan Orders have carried the spirit whom the success of the Conference ultimately de- of St. Francis to the, ends of the earth teach- pends, is surely there. If the Delegates wish to succeed, ing it to peoples in mission fields of Europe, they had better acknowledge His presence and respect Asia, Africa and the Americas. To perpetuate His rights. Or there will be no peace in our time. / 4 A. 3

-p J1une 23,. 1945.

My dear Miass Clark:, Thank you for your very kind letter of June 21, 1945, regarding the organization and accomplishments of the United Nations Conference, The cooperative spirit which makes it possible to plan definitely and hopefully today for an international organization to be agreed upon by the peaeoeloving nations of the world is most encouraging. It is no less Important that there should be a sustained will of men and nations to make it work. Your cooperation and Interest will help to bring about the success of these undertakings. Sincerely yours, For the Secretary c0eyeral: ft

Bryant Mumford Acting''Information Officer

Miss Candace 1. Ulark, 586t' - 28th Street, Oakland,, Californiai.

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June 23, 1945.

My dear Mr. Castro,* Your telegram of June g, 1945 baa been received and its contents have been noted by appropriate officers of the United Nations Conference. Sincerely yours,$ For the Secretary General:

Bryant Mumford -Acting Information Officer

Mr. Manolo Castro, President, Federation of University Students$, Havana, Cuba.

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THavana, June 9,, 1945

The President of' the United Nations Conference San Francisco

In the face of recent mass jailings of students by the Trujillo dictatorship in t~he Dominican Renublic, we ask that that Assembly condemn such terroristic methods and'intercede in favor of freeing the nrisonets. The continuation of the Trujillo regime threatens peace in America and impedes thfR implementation of the Charter of the United Nations. M4anolo C-stro., President of the Feceration of University Students.

(Transi. by H. C. Fill) (Rev. by J. V. M~cCall) -P

(TRANSLATION) Cablegram

Havana,, Jue 9,* 1945

'rhe President of the United Nations Conference San Francisco In6 the face of recent mass Jailbngs of students by the Trujillo dictatorship In the Dominican Republic, we ask that that Assembly condemn such terroristic methods and intoerede in favor of treeing the prisonets. The continuation of' the Trujillo regime -threatens peace in America and Impedes tho Implementation of the Charter of the.United NTations, Itanolo C-'stro,, President of the Feceratlion of University Students.

(frasiby . 0 El) (Rev, by,;*- V. McCall) I

CLASSor SERVICE 21 D~a~te

his is a full-rate ~.e~rmor Cable, LNstLie ~ram inless itsde ferred character is in- o -LC=eucla dlicated by'~a suitable Nii =DerdCableNgtLte symbol aovedor pre- U N I O Ne~zh eie ceding the address A. N. WILLI-AMS Ship Radiograsi PnC5IDENT

The filing time shw niedt ieon telegrams and day letters is STANDARD TIME at point of origin. Time of receipt s TNDRD TIME at point of destination CDU397 INTL:-CD HAVANA VIA ALLAMERICA 44 9 95U M32 NLT PRESIDENTE. CON FER ENCIA NAC IONES UNIDAS= fANTE RECIENTES ENCARCELAMIENTOS EN MASA ESTUDIANTES REALIZADO DICTADURA TRUJILLO REPUBLICA DOMINICANA RECLAMAMOS ESA ASAMBLEA CONDENCACION TALES METODOS TERROR INTERCEDER LIBERTAD ENCARCELADOS SUPERVIVENCIA REGIMEN TRUJILLO AME14AZA PAZ AMERICANA OBSTACULIZA VIGENCIA CARTA NACIONES UNIDAS: MANOLO CASTRO PRESIDENTE EEDERACION ESTUDIANTIL UN IVERSITARIA9

TIM COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE till

CALIFORNIA HISTORICAL SOCIETY INCORPORATED MARCH 6, x886

Publishes the Californsia HistoricalSociety QEUARTERLYand maintains a library and gallery of illustrative mnaterial

PIONEER HALL -456 McALLISTER STREET SAN FRANCISCO 19th June 1945 Mr. T. T. MoCrosky Information Officer, United Nations Conference San Francisco, California Dear Mr. MeCrosky: We are sending under separate cover the March 'number of the California Historical Society Quarterly., with renewed thanks for your assistance in authenticating the list of participating nations and states at the United Nations Conference. You will note on page 72 that we had to retract our use of the words "... in its final form," because of Denmark's admission. (The amend- ing date is that of your letter returning the list we had submitted to you for correction.) With our kind regards, Si1 r~ely 0GW a For THE CALIFORNIA SITORICAL SOCIETY I /Z I S1~cttttoul

TO THE DELEGATES OF THE UNITED AND ASSOCIATED NATIONS in San Francisco assembled:

We, the undersigned people of the United States, believing as we do that just government rests on the consent of the governed, respectfully urge that you establish a world legislative body to which we can elect our own representative&~

The sovereignty, which belongs to us, the people, we now wish to re-divide, giving to a higher world level of government - which we continue to control through our representatives - the power to decide questions of world-wide concern.

If democratic international machinery capable of resolving the economic and political problems which menace the general welfare of our ONE WORLD is not established in San Francisco, it will remain for us to organize it in order to secure for ourselves and our children the blessings of peace, prosperity, and freedom.

NAME STREET CITY and STATE

YOUR SIGNATURE IS INVITED. PLEASE CIRCULATE AND RETURN PROMPTLY TO: CAMPAIGN FOR WORLD GOVERNMENT (est. 1937) 166 W. JACKSON BLVD. 265 W. 11TH ST. ROOM 36 -257 STRAIGHT ST. CHICAGO 4, ILL. NEW YORK 14, N. Y. PATERSON 1, N. J. WAbash 2725 CHelsea 2-6233 LAmbert 5-1842 THE UNITED NATI "IS CONIFE~rECE% OIN lifTERNATIONA fORGANIZATION

to OtANw44sO EXQLERPT FROTM A LETTER ;ON "STA-BILEM" ADDRESSED TO A FRIEND, IN NEW YORK, DATED OCTOBER 28, 1944.

"After many react-ions received, both positive and negative, I still believe in "Stabilem" as a minimum ,programm~e o~f international trade and economic *cooperation. I see -in itl a simple organic form and a simple method of operation, which n-ay feel iis way, secure irr~efutable facts and use them to grow up and expand. eitis not burdened with steadfast "a priori" commit- .ents of the kind tha,, should alarm those responsible ior the political approach. Yet, it furnishes a well paved road which may lead to the more ambitious programme~s of concerted economic cooperation of the international type. The. centra:l idea, I have in mind is that, actual and pot~ential needs of consumption, ex- p~ressed periodically round a table, should be the basis of ;all economic "Post-War" planning. It should be axio- matic that th~ world needs no more production and ilo other production than that -called for by consumption. ,So let us get at the facts of the reformed and revolu- Tionary poqssunption which, -unavoidably, W~orld War II will imipose on us all. Be it reconstruction or the means of "Post-War" security, or food, housing, irans- portation, travel, habits of life, etc., etc., 10he picture is to be a completely different one. "Stabilem's" timelv gathered and publicized irrefutable facts on the above, wvill arm both the experts and politicians with the necessary tools to secure nationial backing to the new 1aorizons of international concerted action. It should, thus, provide the ideal agency to Ilead us gradual ly, but securely, towards ýhe new patterns of world trade on which total employmnent is' depending, same to come cc via"~ the liberalized channels of the multi-lateral- trade-4greements, etc., etc., yet to be conquer'ed. Af ter all, to'tal employment is a function of well olrganized consumption and disorganized consumption is bound to

I generate inemploymeift. However, the high hurdles of complex trade agreements yet to be negotiated,, with a. cer amn aniou;t of 'a priori" specific commitments. inspire the po~litilcal negotiators with much sterilizing caution. Notice the Atlantic charter itself and its clause four:

Fourth, they (the contracting parties) will endeavour, wcith due respect for their existing Obligations, to further the enjoyment by all States,,reat or small, victor or vanquished. of access, on equal terms, -to the raw materials of the world which are needed for their economic prosperitv." That was 'Winston Chur-chill's inserted wvording, to saf eguard. the structure of Imperial preferences. It practically nullified the balance of *the clause. The above commientary is my reaction to "World Trade and Employment-I~port fromt the 'Advisory Comm-ittee on Economics" which you kindly sent m~e in pamphlet form, and which I have read with much interest. "Sta-bilem" is a smlformutla for a plan of action, and could be a United Nations economic organization to, facilitate consultation and cooperation in matters of In :ernational Commi-ercial policy.

As to its other specific executive functions, depending always on the good judgment of experts, it is not the idea, and never was, that all and anty existing sur- Pluses of raw materials in international trade, should be permaniently absorbed by "Stabilemi's" international fund. If such poisitive move should be decided upon, on the intrinsic merits of each individual case, to subsidize or help the international economy of an associate in the red, I hold that, f-he orthodox method should be, by way of an outright purchase, at a pre-announced pri'ce, of

7 the chosen serviceable and produced commodities of 'the country coincerned, and not by way of a loan, which leaves in its wake burdening interest charges and frozen assets. A better backing for international money should be title to serviceable raw-nmaerials, ready for shipment, than I.O.U.'s of doubtful solvency.

There wxill be yet time fo~r another drive to push "Stabileni" along, if, as announced, another international gathering is convened to ýdeal with the economic aspects of international cooperation.

Bretton Woods was not the proper setting to give "Stabilem" any consideratilon, but offered the right opportunity to make a distribution of the essay. All the econ~om-ic and financial talent of the world was there for the first contact. Therefore, the rush to take full advantage of said opportunity......

(s~gd.) Alfredo Alvarez- Calder6n.

THE COMMITTEE ON INTERNATIONAL ECONOMIC POLICY IN COOPERATION W"ITff THE CARNEGIE ENDOWMEBNT FOlt INTERNATIONAL PEACE.

WORLD TRADE AND EMPLOYMENT RePort frorn The Advisory Cointinitee on Economi~cs

SU.MMARY

r-hmploymient after the war is an international problem. If adequate and productive work at decent living standards is to be available, world trade must be restored and expanded.

The slate wvill be clean when the war ends. An un-

3 *precedented oppc Irtunity wvill occur to organ~ize a trziding sysieni w1- riihl give scope to enterprise on a basis of equal opportnnity.Ngt:qs npi~ac of Article VII ofjhe Mvt#-al Aid Agreements shoiidd be .direqted to that' end.

Agreement b~etween -the U.Jnited Nat'jqns to establish oiice ag~an both "nat~jornal treatmient" and "most-fav~or- .ed-ation pranetcqtA4~ t tlhe sr~ qjine .,5erve to sweep away ymapy 9 f ýte vexcatious txadebjarriers erect- ed during the interwar period. Such an agreement 5hould 14y down acept ble principles in regard .to trade to vithl st~t,e 'tr'a'4xpg mqigopojýes, to exchange coaltrol, tiheý ýhojitioni of qnxQ~as, a ý t~o the adjustment of trade ,),arriers J, cludipg tariffs and preferential systems. A United Nations Econ~opics Organization to facilitate contsultation and cooperation in matters of coin- mercial policy should be created to imp~lement the hn- terna.t~onaal EcoQprmjs Cj4arter so agreed upon. Given f air -conditions ;for , a n expanding w orld trade, such an organization could art as a clearing house f or national in a conet4 ffr pnle ecqoricpolicje ffr typo mutul 1 prQsper44

4 "STABILEM"

An Economic Essay on "ePost-War"J Problems, Connected wvith the Project of the "IlnternationalMonetary Fund"

A Peruvian Point of View

ALFREDO ALVAREZ CALDERON LLB., LLM., DCL.

Limna, June 15, 1944

(Translatedfrom the Spanish by the Author himself) -

"STABILEM"

An Economic Essay on "Post-War" Problems, Connected with the Project of the "InternationalMonetary Fund"

A Peruvian Point of View

ALFREDO ALVAREZ CALDERON LLB., LLM., DCL.

Lima, June 15, 1944

(Translated from the Spanish by the Author himself) " ST AB ILEM"

FOREWORD: GENERAL

To solve an equation in which nearly all, if not all of The problem confronting us. the terms are represented by unknown quantities, consti- Its importance and tutes an insoluble problem for even the best of mathema- magnitude.- ticians. As an individually considered case, such would be, more or less, the implications of the laudable effort now being made, to organize "a priori" an international monetary fund intended to stabilize International Monetary Exchange. However difficult and complex it may seem to fix parities for the relative values of the currencies concerned in International trade and banking, and to stabilize same once they have been fixed, the problem itself and its correct solution are invested with paramount importance in the construction of the "Better World" with which the "Post-War" should provide us. It is, therefore, obvious that any Government, which is conscious of its mission, should join hands in the common effort being made to find the panacea which is to cure so many evils. Moreover, because of the intrinsic merit of the proposition itself, it should "de facto" be brought forth to the first plane of perspective. The task, however, which confronts us, is arduous enough, since not only does the scheme refer to the fixing of the stable values of two or three of the currencies, "the principal ones," but also to all of the world's circulating mediums. In this we see the just'concept of a

I world-wide interdependence of all peoples, which a devastating totalitarian war has taught us to perceive. However, to undertake this supertask on the basis of such disorderly, disarticulating and anarchical factors as are at play, is to come face to face with numberless unknown quantities which are, nevertheless, essential ele- ments to complete the equations which will be up for solution. -Which are to be the respective trade balances? -WXhich those of international payments? - Which are to be the new channels of World trade, and foreign investments? - What the regimes of public and private debts, both internal and external? - What indexes of the cost of living are to determine the internal purchasing power of the different currencies? - What monetary policies are to prevail throughout, that is, in the different sectors? - Inflationist? - Deflationist? - Which are to be the customs systems to be enforced? - What will happen to national budgets? - Those balanced? - Those u~nbalanced? - What is to be the final settlement under "lend-lease"? - What will be the future production of the precious metals which are to back circulating mediums? etc., etc., and so "ad-infinitum." The experiences of the past that is dead and gone never to resuscitate throw little or no light, if on its shed rays we are to find reliable answers to such an exhaustive ques- tionnaire. The pawns on the chessboard have changed their relative positions and keep on changing same, as a direct consequence of "World War NUMBER TWO." New vested interests have come to life and others are potentially in being. - How are these to behave and influence one another, when the long-desired Peace does eventually materialize? - Which are to be the parallelo-

2 as- grams of forces and the resulting derivatives thereof?

-Which is to be the inspiring criterion of a peace that shall be the offspring of "unconditional surrender"? - Is of it to be tinged with the Versailles hue again? as n- It is thus, something more than the mere designing of a stabilizer machine which is required, however perfect Dr its anatomy may be. After all, a machine is just an instru- le ment subservient to the performance of a principal func- .s? tion. In the particular case we have in mind, to stabilize id the flow of streams and even whirlpools, unknown as Id to force, is the requirement, and it thus occurs, that the ti- "Stabilizer" itself would have to be stabilized, if it is to al perform the services that are expected of it. To gauge at thus the pressure and volume of the ever-changing cur- *fl rents and their directions as they flow along under the t? gravity impulse that urges them on; to measure the flow I? and ebb as well as the onrush of such non-static but essen- I- tially dynamic fluids, continuous as to motion, constitute complementary, complex and essential tasks if the machine is to work at all.

e - Which is the route to be followed? 10 e It would be, in my opinion, in the parallel operation of a kindred system to the one conceived and proposed I by the monetary stabilization experts (such as that sug- a gested in the present essay) where useful routings could be found to solve the unknown quantities. Not to lose o direct contact with the patient's pulsations, to count them

- up periodically and to be alert as to rhythmical changes, is the policy observed by the cautious practitioner in anti-

- cipation of possible events. Within the regime herein

3 suggested, such would be the case. Our "monetary friends" would have at their disposal reliable means not to lose contact with the pulsations and rhythmical changes of the blood stream of the "Great Patient," i.e., the World convalescing from the maximum and severest disease, with which it was ever afflicted. They would be better equipped or, let us say, less disarmed to anticipate possible events and to obtain timely answers, if not to all, to many of the questions hereinbef ore propounded. The organism which is here suggested, and which, as may be gathered, would be performing parallel or complementary functions to the "monetary" one, would have its own means of ascertaining the facts. They would be thus available to check up on the rhythm and intensity of the kaleidoscopic phenomena connected with international exchange and the direction of flows prevailing on foreign investments within that same international sector. The precious information thus acquired because of its very activities, would be represented by actual and real numeric values, which would be particularly useful. Precisely, some of those we were missing to solve the aforementioned equations. By injecting same at the proper places in these algebraic expressions, many of them would become sol- uble and within reach of even the students of mathematics. The stabilizer machine would then rest upon foundations of greater solidity with better bolts, nuts and grips that would materially help to insure its efficient output. If only partial, it would have been a positive contribution towards stabilizing "THE STABILIZER."

-But how is the miracle to be performed?

The premises Let us use as a background for the panorama we are of this Essay.- focusing, several of the facts and ideals hereinafter

ual evidences of this constructive tendency. The "GOOD NEIGHBOUR" policy, which is both an exponent and consequent effect of said tendency has worked and is working true mniracles to weld together Xhe "United Front" in both the military and economic defenses of this hemisphere. The coordinating entity, centering at Wash- ington, has served as a MEDIUM to canalize the joint action and to orient same technically. A predominant factor in all cooperating programmes has been, and still is, the supply of strategic primary commodities, which became unobtainable for the arsenal of the democracies from the Far Eastern sector whence they came. The neat problem of generating this unprecedented union, which has functioned and still functions in actual practice, without major impediments, called as a corollary for the stabilizing of the economic structures of these countries, and such measures as might lead to this end were adopted in due time, within the same cooperative ideal which we mean to enhance and which we are using as one of our premises. It is thus that we have in operation "lend and lease"; that concerted purchases atpre-establishedand pre- announced prices have come into effect to apply on certain of the primary commodities, some of which are even disconnected with the war effort, if such a move would be (i.e., Cotton) instrumental in tonifying and stabilizing the domestic economy of this or that unit in this Continent. Govern- ment agencies have been created, commercially organized, to carry on with these purchases. Reciprocal facilities have been arranged for the efficient operation of sea and air transportation systems. Well thought out agreements have been made for timely credit assistance to favour continental trade and to stabilize exchange. "Inter- American" organisms of various types are now function-

6 ing, all of which are oriented towards highly constructive ends, etc., etc. All of this, is moving along without friction, and with excellent lubrication. - Are we to abandon these conquered assets?

- Could we have more eloquent proofs than these, if we are to sense such results as have been actually attained, embodied potentially in these magic concepts of "cooperation" and "coordination," and carried to practice in the international field itself? Let us not forget, however, that the common effort thus concerted and performed, has for an impulse the pressing needs of accumulating imple- ments of defense, which spell blood and destruction. It would not be too much to expect, with a certain degree of optimism, that the like common action, "cooperative" as well as "coordinating," shall be put again in operation by the associates, present and future, to preserve and utilize common essentials and wealth. And here is where we come before a striking antithesis. - The action to cooperate in and coordinate a War effort, which spells destruction and destitution, i.e., the reality we are wit- nessing. - The action to cooperate in and coordinate a Peace effort for a "Better World," which is preservation and utilization, but just a fervent hope which we relegate to the "Post-War" period. If we apply the human criterion, - which of the two ideals is the preferable from the ethical and utilitarian points of view? The answer is a matter of opinions and even of tastes, and it would depend upon the sector to which the question is addressed.

We are confronted with the explosive material of Primary cOin- "Pre-War" times and with one of the basic problems of explosive

7 the "Post-War" period. From the time of the deflationary crash of the (1929-33) markets and up to the time that hostilities broke out under "World War Number Two," no one subject has been so universally discussed than that of the primary commodities. The projections thereof out- grew the economico-financial sector, to which it properly belongs, to take preponderant possession of the politico- social. Such is the importance attributed to same, and that which it really has. Countries were classified as the possessors or monopolizers of them, on the one group, and deprived or dispossessed, on the other. Ideologies of the second group were constructed on the basis of alleged grievances, either real or fictitious. Said grievances were the determining factors of the airing of claims and of political campaigns with oratorical displays, punctuated by the threatening clenched fists, and to the ideological and political literatures of "Pre-War" times. "Vital Spaces" were claimed from the privileged group. The non-possessing countries asserted their natural right to live and to own the coveted raw materials. The claims thus advanced acquired visible reality, as they were substan- tiated by the races for armaments that were feverishly undertaken. The scrambles in question had for their goals, precisely, the securing of those of the primary commodities as had a strategic value. If gold was not to be had with which to pay for them, why not have recourse to juggling finances, to barter and to "dumping" practices? The disarticulating "dumping", branded as "disloyal competition"! What could free industry do, depending as it did on costs and normal profits, if it were a case of coming to grips with the almighty totalitarian States? In- ternational "gangsterism" was in the process of organizing its destructive action by lowering its own standards of

8 living and also by throwing the normal channels of international trade out of gear. "Mein Kampf" came to light during this period, making capital of the "LEBENS- RAUM" idea, "Vital Space," and announcing unblush- ingly "DER DRANG NACH OSTEN," a polite form of naming the projected predatory expedition which was to follow an Eastern routing.

Such is the political panorama of "Pre-War" days. The nerve-center, which was afflicted with neuralgia, is to be found in the politico-economic sector of the -primaryco m- modities. Demands were advanced calling for the surrender of the ex-German colonies, for this very reason, - the "primary commodities." Said colonies would not be returned; but the "appeasers" were prone to offer a free access to the said primary commodities, under this or that formula, yet to be invented.

Here we are in the presence of the explosive material identified with the primary commodities, i.e., the rich detonating mixture, which only awaited spark action to set ablaze "World War NUMBER TWO." And the con- flagration did commence and its devastating fire still burns.

In the economico-financial panorama of the "Pre-War" days, we find other morbid symptoms which are worthy of special comment.

The general and disconcerting disarrangement gener- ated by the juggling finances, barters and "dumpings," compelled the opposite group to adopt urgent defensive measures. This gives rise to the isolationist brand of Na-

9 tionalisms, to the National Regional and Imperial preferences. Pseudo-protective, preferential and emergency tariffs are set up to function as customs barriers. Quotas and cartels are contemporaneously adopted. The "con- versionist" Gold Standard is abandoned to have recourse to managed currencies and exchange controls. Unknown quantities and hurdles increase by leaps and bounds, and beyond predictable limits; the primary commodities satu- rate the markets and become afflicted with paralysis. Prices take perpendicular drops, currencies get devaluated, gold is scarce and proportionately jumps its price, all attempts to stabilize currencies do utterly fail. (Such was the experience at the London World Economic Conference.) And here are some other aspects worthy of special comment: - foreign and internal debt services are suspended and moratorium becomes the -rule. It is deflation in action, forced liquidation and international bankruptcy. Con- temporaneously, what else was afoot in the field of the primary commodities? In some cases they would be cast overboard or were submitted to incineration processes to maintain the level of falling prices. Still worse, and subject to the same spell, States would officially subsidize the curtailment of certain specific production. Such precious material, which the cravings of hunger and of unsatisfied needs demanded in other sectors of the globe, were de- liberately condemned to destruction or their production actually curtailed. - What have we to say to this valid and well founded accusation, versus the capitalist regime coming, as it does, from the opposing ideological camp? Here again, we are confronted, in its economico-social aspect, with the explosive material of the rich detonating mixture.

10 This is the panorama of the primary commodities in "Pre-War" days. We are now invited for a discussion of the problems of the Peace, i.e., those pertaining to the "Post-War" period, among which we have that of adopt- ing a system to stabilize currencies internationally. The brief review we are making of this connecting theme is, however, leaving unanswered the following questions: - Is it advisable or not that this matter of the primary commodities be brought out to the first plane of perspective, in the discussions and studies made to organize the coming Peace of the "Better World"? - Does it merit that preferential attention be given to it? - Is it in order to look for a formula which will have for its aim to stabilize the markets of these products? - Is it, or not, a constructive move to operate upon the causes themselves rather than upon their consequent effects, and to tonify and invigorate the economic structures of the producing units of the precious materials? - Is it advisable or not, that concerted action subject to international cooperation and coordination be set to work in this extensive sector?

As a postulate, it is our endeavor to conquer an enduring peace, exempt from fear. - But how are we to go about it, without first removing the numerous barrels filled with explosive powders which are strewn about in the path of our Peace?

In the guise of coincident information, let me add, that programmes are officially formulated to stock up, during the immediate "Post-War" period, sizable quantities of primary commodities still having strategic values. Pur- chases to be made from the United States of America are being planned, to become effective over a period of five

11 years, whose purposes and projections were expounded in an address delivered at Chicago by a high official of the State Department also serving a Vice-Presidency in the War Production Board, i.e., Mr. William Batt (January 1944). In the contemplated imports by the United States, the investment of some $5,ooo,ooo,ooo U. S. Cy. is the amount under consideration, and the contemplated list of primary commodities cover items such as: - Petroleum, Manganese, Chromium, Non-Ferruginous metals, various precious metals and rare minerals, industrial diamonds, raw-rubber and fibres, chemical drugs, fats and oils. The programme is recommended, among other reasons, because of its beneficial effects upon the "Post-War" international trade. Such is our premise based on the question of the primary commodities.

Another premise. -

The free The present essay fully sympathizes with the ideals of trade ideal.- free trade and non-regimentation of economies. Within the "Better World" of the "Post-War" period, democratic ideologies will have for their endeavor to protect private initiative. It is the cherished ideal that Governments should continue to be of the mandatory type, that is, the servants of the people that elect them, and that a minimum of restrictions and curtailments be imposed by the States upon their citizens and electors. By an extension of this trend of thought similar ideals are to be pursued in the major horizon which applies on the international field. Both the concepts of the "authoritarian" or "totalitarian" State become anathemas. The endeavor would be fluid trading, free from barriers and excessive regulations. It is the aspiration to ire-

12 move gradually customs walls, quotas, preferences, cartels and exchange control systems, etc., etc. It is only within a free world, free of encumbrances, where the countries' economies can be cemented, first to convalesce and then to acquire progressive strength, after the unprecedented and dreadful bleeding with which they are still afflicted. This should not be an obstacle, either in the international or domestic field, for leadership to be exercised through timely, sagacious and technical actions, and for the creation of organisms duly prepared and capable to lead the way and to formulate programmes as well as to act efficiently for the promotion of common welfare. Nothing herein proposed would thus come into conflict with these ideals, so deserving of proper cementation. It is their preservation that will supply us with the essential pillars for the stable Peace, which it is our desire to construct for the "Post-War" period.

,Another premise. -

The concept of a better world suggests to us a world Consumption. Its paramount better nourished, better dressed, better lodged, better importance.- educated, etc. Consumption, if it is to attain such ideals, must be progressively greater and its standards progressively better. To organize and ordain consumption so that it may respond to the said aspirations, which are latent and widespread, shall be both the starting point and goal of all economies. To construct, therefore, healthy economies on the basis of a greater consumption and to place same within reach of the greater number, should be the "desideratum" and one of the chief postulates of the Peace of the "Better World" in the "Post-War" period. All

13 other concurrent factors, which may integrate this economic panorama, must perforce occupy the subsidiary position which, because of their relative importance, is indicated for them.

Production and its distribution, finance, banking, fiscal systems, and the stabilization of currencies, etc., etc., must, without exception, be subsidiary functions to be placed at the service of "CONSUMPTION - THE SO V- EREIGN." The coordinating cooperation, above referred to, must accommodate and adjust all of these factors, so that they be placed at the service of the principal function, and that they follow the progressively accelerated rhythm which said function may choose to dictate.

Consequently, let us cooperate in and coordinate, on a world wide action for bigger and better consumption.

Incoherent and accelerated production, of the blind- folded type, without any magnetic North nor a definite orientation other than that of producing more and more, without knowing whether same is claimed by consumption, or that it may be absorbed by it, is only conducive to diseased economies. Feverish competition to capture the markets shall thereby ensue, together with overstocked supplies, their repercussion on price levels, etc., etc., and once more internationally, the presence of explosive material.

The idea of maintaining direct contact with the pulsations of CONSUMPTION and of the rhythm they may acquire is a fundamental premise-which supports the present essay.

14 e, Still another premise. -

The dubitative tones of intelligent critics over the ef- International Monetary Fund. ficacy of the fund to fulfill its international mission are The Critics and our point plentiful and emerge from all sectors. They underline the of view.- fact, already expressed, that there are too many unknown I quantities afoot which apply on the "Post-War" panorama, not only in its coming transition period, but in the permanent one to follow. It is pointed out that the proposed organism called upon to act internationally may not with sufficient authority intervene in the reconstructions which more than often will be required to be made of domestic economies. Skeptical expressions are to be found re: the ability of many countries to keep themselves afloat and to avoid being minus quantities in the balance of international payments. Said doubts even refer to such countries as would, in the projected structure, constitute its main supporting pillars to ensure architectural stability. I am referring to England herself, and to the British critics, who anticipate the existence of possible negative balances in the very sector of the Sterling, if, as averred, Great Britain does not happen to increase her exports by no less than fifty per cent of that which heretofore represented normality. It is indicated from the American sector 4 that the fund, supported on the basis of healthy currencies, would offer the infirm ones an excellent opportunity to drain it, thus converting them all into equally infirm. This process, leading to a general anaemia, is not calculated as the best method, if is desired to avoid friction and to cement Peace and good will among the associates. Sum- marizing, it is pointed out, on the one hand, that there are many unknown quantities yet outstanding, and on the other, that the action must be directed towards the causes

15 themselves and not their effects. Nevertheless, all sectors are in accord in pointing out the enormous importance that the problem has and the advisability of finding a constructive solution for same.

We may add, and this on our own, that if an astro- nomical Fund, which is to result from the joint contributions of all the peoples of this earth is actually constituted, the programme for the utilization of it should be a bit more ambitious than the one which is now proposed.

Economies The mechanical function of compensating values in in ed,he the international exchange, of establishing balances which are payable, and of furnishing temporary credit relief to those in the red, is no doubt an interesting one. Said function is, however, more of the passive than of the active type. Although good accounts make for good friends, the "Post-War" world requires something more than good bookkeeping. We must not forget that same is to include even the negative cases, and the best of friendships is likely to be impaired when the numbers consistently net balances which are written in the classical red ink.

The mechanics which have been conceived for the operation of the Fund do not, by themselves, have the virtue of straightening out or tonifying economies. If the red-ink-associate has a diseased economy, and the disease becomes chronic, because the indispensable invigorating tonics were not administered in due time, nothing permanent will be obtained. The use of credit facilities is more than often a deceptive palliative and, as such, a harmful one. It would act as narcotics do, having no curative virtues, but which inspire the patient receiving them, with a false and ephemerous sense of security. In the case before

16 us, once the gold resources have been spent and credit- e narcotics used to exhaustion, - what would be the net result? - nothing less than paralysis and the possible death of the economy in question. A credit which has been drawn upon must, after all, be repaid plus the interest charges. - And what has actually happened? Our associate, who is chronically in the red, has converted the minor hole of yore in the major crater of today, and yet it is up to him to refill same by an untimely tax on his weak- ened and progressively decreased strength. ai Regardless of the admitted fact that a proper solution must be found for our problem, our interest is somewhat dampened, if all that the proposed organism has to offer e is circumscribed to correct accounting, of the clearing- e house type, and to an offer of limited facilities of international credit. e y The ephemerous relief, resulting from the utilization I- of credit accommodations by the Fund, which the experts have conceived, does not have, as already stated, the constructive virtue of straightening out the economy of the e country which is favoured with same, if it becomes perma-

o 4 nently diseased. The said credit accommodation once exhausted, would leave to the country in question but the alternative of draining its metallic reserves up to the limit of prudence. After such process has been put to work, it

o would have to re-enter the path of the managed curren- 1 cies, adopt deflationary, devaluating or some such other known heroic methods of maintaining a state of unstable equilibrium. This, with a realistic sense, is the mirror which should give us Peru's reflection.

4< 4 1 We thus endorse the critics who consider it necessary, that the action be directed towards the causes rather than their effects, and this essay has for its aim to indicate one of the forms and sectors in which such suggested action might be put to work internationally, with the cooperation and coordination of a common effort.

The question of Here is some more criticism, and same concerns Peru silver and the bimetallic directly. I am referring to the monometallic standard Standard.- (gold) which is proposed as the exclusive yardstick to measure all parities. If it be considered indispensable that currencies be anchored to one of the precious metals, and gold is the privileged one for such function, I am joining those who believe that its shortage, present and future, and the maldistribution thereof render it unappetizing for the function that is expected of it. There is not one argument of those advanced against a Gold-Silver Bimetal- lism, that cannot be countered with definitive answers. The association of Gold and Silver under a parity which, as between the two, could be internationally fixed, would furnish a yardstick of much greater stability than Gold alone. My convictions thereon were expressed ten years ago, in the Memorandum I prepared for our Central Re- serve Bank (March 1934). 1 adhere, without change, to my expressed Bimetallic faith.

Peru is a natural silver producer, and this precious metal co-exists as a subsidiary value in practically all of our mineral resources. In some cases, the silver contained in a particular ore does, by itself, cover the working costs, leaving other basic metals as a net profit to the miner. To devalue silver and not to maintain for it its category of a precious metal, with a stable value, would result in converting the greater part of our mines as commercially un-

18 workable. Silver is, thus, a most salutary asset in our economy as a whole.

It is obvious, consequently, and of national interest that Peru should join forces with those engaged in the constructive campaign pro-adoption of Bimetallism as a healthy international monetary standard. This applies to any campaign which surely will be undertaken by Mexico and by the friends of silver in the United States. There are other countries as well, which will join the crusade.

Another important factor, which, likewise, is of in- The question of priorities for terest to us, refers to the removal, as early as possible, of Gold.- such restrictions as apply against the gold industry within the system of war priorities and of restricted facilities for maritime tonnage which also apply against this industry. Gold is of the greatest importance to us if we are to pay our balances in international exchange. My points of view thereon were expressed in the Memoranda I prepared under dates December 24, 1941 and August 17, 1942. The aspects which were then expounded hold good today, and are directly connected with Peru's problems of International exchange.

These are the final expressions of this premise, and I Conclusions of shall devote them to bring out the fact that it is the, this premise.- economies themselves that constitute the major problem. Everything else becomes secondary and, therefore, subsidiary to it. Our interest should center, therefore, on the causes rather than on their effects, and for this reason the perusal made of the "International Monetary Fund" project gives one the sensation that the coach is being placed before the horses that are called upon to haul it.

19 Our premises having been laid, we are now to pass from the general to the specific, and we thus come, before: -

"Sthabilem. "Stabilem" is the Latin noun which is the euvln of: "estable" in Spanish; "stable" in English; "stable" in French; "stabile" in Italian; "stabil" in German; "stavel" in Portuguese.

It incarnates the fundamental ideal which inspires this essay, and suggests the opposite to anarchy, disorder, lawlessness, which are concepts identified with the trans- gressions of War. We are studying the problems of "Peace," those of organizing the "Post-War" period on a basis of "stable equilibrium." As a Latin word, belonging to the lexicon of a dead language, its meaning and signi- ficance shall remain permanently unaltered.

Such is the "raison d'etre" of the name "STABILEM" which is proposed for the international organism which is the subject matter of this essay.

"Stabilemn" The "International Monetary Fund," and it is so and the International expressed in the joint statement of the experts, has among Fund.- other laudable purposes (Paragraph 1, sub-paragraphs 2, 3 and 6), the following: -

12. To facilitate the expansion and balanced growth of international trade and to contribute in this way to the maintenance of a high level of employment and real income, -which must be a primary objective of economic policy."

20 "3.To give confidence to member countries by making the Fund's resources available to them under adequate safeguards, thus giving members time to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity." "-6. To shorten the periods and lessen the degree of disequilibrium in the international balance of payments of member countries." It is treading upon the ground of these ideals that means of a greater efficacy are proposed to attain them. We have already seen that constructive critics point to the flaws of a Fund, the structure of which is calculated to operate upon the effects rather than on the causes themselves. Economies which are chronically diseased cannot regain their health by having recourse to a "credit" palliative, which the Fund may facilitate within certain limits. If exhausted or on the point of exhaustion, any marking time period will correct nothing, if the action is not directed to remedy the real causes of the evil.

It is, thus, a case of bringing into play the existing Again International spirit of "cooperation" and "coordination," which we cooperation. - have already exalted and which does happily function internationally. The idea would be to join forces and to provide ways and means for the operation of an organism, which will have for its field of action, precisely, that of the primary commodities; -namely, the one identified with the explosive material of "Pre-War" days. Nothing that is herein proposed, should interfere with the function- ing of the "International Monetary Fund" as may be arranged and agreed upon. It is a parallel cooperating action which inspires the present essay.

21 "Stabiletn's" The resources to be provided for the autonomouls resources. Its Fund.- organism with which we are concerned, might be additional to those of the "International Monetary Fund" or "Stabilem's" might be constituted with a fixed proportion of same. In independenme- either of the the two cases, the two Funds would operate by a parallel action, but both distinct and independent from one another. The accounting end of both would thus maintain an identical separation. "Stabilem's" fund would "per se" constitute its working capital; namely, that destined to rotate in successive cycles of outlays and reimbursements, which would enable it to continue at the service of the main function for which the organism is created. "Stabiletn's" "Stabilem's" function would be directed chiefly to pincipal promote, through a healthy, regulating and continuous action, a well oriented production of the primary comn- modities, which would be destined to satisfy real needs of consumption.

More defi- The organism must be architecturally designed for "Stabilem"'..nition of permanent action; must be provided, as stated above, with ample means of its own, the importance of which must be impressive; shall be essentially mutual in its scope; shall seek no profits; shall have the world for its field; must be technically directed to exercise a complementary function to that of the "International Monetary Fund."

Salutary This array of factors, because of their co-excistence for Psychological infiuence.- action, will exert a most salutary psychological influence and one of great projections. To inspire with confidence and to dispel speculation, is to prepare and fertilize the soil in which our plant of the botanical "genus," "Sta- bilem," i.e. our main interest, should healthily grow and germinate. i

22 "Stabilem's" ideals should be: a) To undertake a world-wide orientation of the cycles of production and of consumption of the primary commodities; b) not to interfere with the free market of same; nor c) with the work of the "International Monetary Fund," whose functions it would be its chief aim to support; d) to invigorate, and timely so, such economies, which, internationally considered, would be afflicted with deficits which might be cured through proper aid and assistance, and to give same through a positive regulating and stabilizing action.

In the practical materialization of these ideals, whose two mainstays. programme covers specific actions, on the one hand, and Its information. inhibitions on the other, the road will be found that will Its publicity.- lead us to a solution of many an unknown quantity. "Sta- bilem" would be so placed as to discover several numeric values that would fit such equations as the "International Monetary Fund"ý would have to solve from time to time.

And let us devote our attention to such methods as we have in mind.

Two shall be the mainstays or master pillars upon which "Stabilem's" architecture shall rest. Let the first one be its WEALTH OF INFORMATION. Let the second be its PUBLICITY.

"Stabilem" must possess, and -can possess, a great wealth of information - abundant information! If bigger, and progressively better consumption, should be both the starting point and the goal of healthy economies,

23 "Stabilem's" curiosity thereon must be both avid and boundless. What consumptions must be supplied? - What are they? - The present? - The future? -The potential? - Those satisfied? - Those unsatisfied? Let the information so gathered be classified, sub-classified, - totalized. Let the results be entered in proper tabula- tions, subject to this or that classifying discipline.

We are "pro tern" treading on the territory of DEMAND, actual demand, - potential demand.

Let us now invade the territory~ of SUPPLIES. - Where is to be found the production which is capable of satisfying the commanding consumption? - Which is this production? - The present? - The future? - The immediate? - The potential? - The excessive? - The deficient? - Let us proceed with its classification, sub- classification and totalization. Let us fill all blanks for the proper tabulation thereof.

It would seem as if we were not wasting our time, and that the chosen method is leading us somewhere! We now seem to have something positive on hand, that will satisfy curiosities equally avid and active.

But we have averred that "Stabilem" must and can possess a wealth of information. - Is our second affirma- tion valid?

"Stabilem" is not likely to lack authentic sources of information. The affiliated Member States are there to supply it, and plentifully, what with their Customs houses, Statistical Departments, Chambers of Commerce, State Banks, such as the Central Reserve, Agricultural, Mining, Industrial, etc., etc. There would also be such tentacles as

24 the institution itself might detail throughout the world and from time to time.

All of these valuable antennae would be tapping the precious information that is of interest to "Stabilem." Moreover, it would be trustworthy as well as timely and willingly furnished, under a mantle of general approval.

It is thusly that "Stabilem" can possess the aforesaid wealth of information and act under same as its central broadcaster.

The information it may publicize shall be free from all suspicion. No hidden profit-seeking stimuli should be present to prompt any of its actions, as "Stabilem" will be having none. It is a mutualist organization, of the cooperative and coordinating type, having a world-wide scope of operations for the benefit of all in time and space.

And we thus proceed to delve into the second main- stay of the proposed organism, to wit: its PUBLICITY.

The publicity to be given by "Stabilem" to all of its '"Stabilemn's" valuable information, is to be aggressive, constant, profuse Publicity.- and timely. It must utilize for such purpose all of the available means of publicity and to undertake same both orally and in print. We have in mind broadcasting networks of the long and short wave descriptions. The communication networks of all types. The press, "Stabilem's" own bulletins, and annuals. Rebates and franchises would, of course, be granted.

The aforementioned publicity shall be made in as many languages as is possible, following the rule of War

25 propaganda, both oral and in print, which is currently in- festing the air we breathe.

Publicity Foremost and above all things, "Stabilem's" publicity must precede cycles of must be duly timed. It must precede the cycles of produc- production.- tion of primary commodities in the various sectors where same are actually produced.

"Stabilem" is to be the open book of the affiliated an open book.- Member States and their Governments, of the "Interna- tional Monetary Fund," of the markets of both buyers and sellers, of the Chambers of Commerce, of the Banks, of the Transportation services, of the Insurance Companies, etc., etc.

"Stabilem" will draw on its information and publicity in order to carry on its directive and educational activities pro-bigger and better c~nsumption, and to promote such productions as will be earmarked to satisfy them. It is, again, these positive factors that will furnish "Stabilem" with a solid ground upon which to proceed with its additional constructive activities.

-Let us see what these are.

"~Stabilem's" Besides the mission of orientation afore-described, and second and more important its vast educational possibilities, it will be "Stabilem's" mission.- duty to undertake a second one of a still greater scope. I am referring to such action as is calculated to invigorate diseased economies, namely, such as would require, from time to time, a stimulating tonic in the international field. This particular function, which would be essentially of the stabilizing type, would also be concordant with that contemplated in the experts' joint statement for the "In- ternational Monetary Fund" (paragraph I - sub-para-

26 graphs 2, 3 and 6). We have already mentioned that the difference lies in the method to be followed. "Stabilem" would act directly on the causes of the instability and not on its effects.

The phenomenon on which this second and more important mission of "Stabilem" is to concentrate, is that of existing surpluses of primary commodities, of the export type, not absorbed by the free market during a particular cycle of production. This eventual, yet frequent phenomenon, is the cause of serious breakdowns, which may be general at times and local at others. A bountiful production, of this or that commodity, may occur simultaneously in various sectors of the globe, in which event the phenomenon would be general; that is, coincident as to time and space. It might also be a limited one, and thus affect a particular commodity and a certain unbalanced economy.

Whichever may be the case, "Stabilem's" interest is limited to the internationalaspect of the phenomenon in * question. The non-exportable surpluses of such primary commodities as are ordinarily identified with the internal * consumption of the producing country, shall constitute a local problem to be disposed of locally.

The surpluses we are concerned with within the pre- The ill-~effets ceding definition, disseminated about in unknown quan- surpluses.- tities, and which may result from the aggregate yields of more than one cycle of production, constitute pathogenic I A germs in the producing economies, individually considered, and by extension in the major economy as a whole, which is the sum total of all the others.

27 In the consideration of this problem we have to deal with several of the aspects involved, and let us mention the principal ones: - (a) the fluctuation of prices; (b) the de- frosting action, that will release values and return them to circulation; (c) the efficient physical preservation of commodity surpluses; (d) the timely, discreet and direct disposal of same.

The "Better World" of our Peace should become free of dead-weights, and avoid, by all means, the evils of speculation, of superfluous intermediary cogwheels, and of such destruction of produced wealth as might have for a possible excuse the maintenance of price levels. "Stabilem," invested as it may be with vast resources, with complete and timely information, with numerous tentacles and a centralized panoptical vision, would occupy a privileged position to develop its stabilizing action.

- How is same to be used?

Stabilizing The action we have in mind, if it is to produce the sta- operations to bilizing effect that is expected of it, must perforce be an- be announced previous to nounced previously. The markets, the economies in gen- cycle of production.- eral, must know where they stand before the cycle of production is actually initiated. To know beforehand what is scheduled to take place, is to dispel a number of risks and to strengthen the producing structure at the proper time.

Consumption is Now then, if the magnetic North of healthy economies to be guide Ofof th"Ps-a"proshudbthacalnesf supportilig or o h Ps-a"pro hudb h culneso non-supporting consumption, "Stabilem" shall know, before anybody p0lc14 else, what is the advisable policy to follow: that of sup.- porting the market of certain of these surpluses, in all of Page 28. -- Make clause following colon in second to last line read, as in the Spanish version: "that of supporting the market of certain of these surpluses, in some sectors, or in all of the sectors ;" In the consideration of this problem we have to deal with several of the aspects involved, and let us mention the principal ones: - (a) the fluctuation of prices; (b) the de- frosting action, that will release values and return them to circulation; (c) the efficient physical preservation of commodity surpluses; (d) the timely, discreet and direct disposal of same.

"Stabilem," invested as it may be with vast resources, with complete and timely information, with numerous tentacles and a centralized panoptical vision, would occupy a privileged position to develop its stabilizing action.

- How is same to be used?

Consumption is Now then, if the magnetic North of healthy economies to be guide of supporting or of the "Post-War" period should be the actual needs of non-supporting consumption, "Stabilem" shall know, before anybody policy.- else, what is the advisable policy to follow: that of supporting the market of certain of these surpluses, in all of

I j2 28

00~ the sectors; or the opposite one of non-support. As we have already stated and here again repeat, whichever it may be, it must be previously announced. "Stabilem" would, thus, proceed to make a timely announcement of such operations as it will be prepared to undertake once the cycle of production is over. Every- thing: which means, the prices, the quantities, the commodities, the places, the currencies, the forms of payment, the contacting agencies, etc., etc., would be the subject matter of such announcements.

For a better and clearer vision of the system that is Export Sur- pluses only now proposed, it is in order further to define that "Sta- subj'ect to bilem's" operations would be strictly limited to surpluses operations.- of the export type, which have not been absorbed by the free market. This would refer to primary commodities already produced, ready for immediate shipment, of standard grades, susceptible to storage, i.e., without abnormal losses due to deterioration and/or shrinkage, and actually delivered to Fiscal Warehouses with all of their local and National taxes paid previously. Which means to say, that all of the operations, i.e., the purchases, sales, advances and others.which, from time to time, may be carried out, shall be understood to refer to deposited goods and be made against certificates or war- rants duly issued, and authenticated under the faith and authority of the producing State. It would be "Stabilem's" concern, with a long vision of things, to decide in each case, what is the advisable policy to follow regarding the prices it shall offer. Those applying to its purchases? - those applying to its sales? - If in the ."Post-War" world, the tendency is to be that of

29 *raising the standards of living, it should be quite evident that the said prices must include appropriate wages and salaries to benefit the human element serving the particular industries concerned. The personnel serving same will naturally aspire for progressively better conditions. They must also contemplate a fair profit to favour the producer. Now, as regards its prices of sale, which should be slightly higher, they must be figured on the basis of the difference strictly necessary to cover "Stabilem's" overhead and administrative costs. All other additional costs, Page 30, -Make s-entence starting in the se~renth line -and read, as in the Spanish version: "Now, as "it to regards its prices of sale, which should be ri of slightly higher, they must be figured on C the basis of the difference strictly necessary to cover 'Stabilen-'s' overhead and z h administrative costs. Said difference might thed be represented by a nouiniiaJ oinmsso."osd0 f LI1e

ginning of a cycle of production, would be that which, as a minimum, would rule the operations of the market. Specu- lators, who reap their harvest in the medium of fluctuat- ing prices, would not dare face "Stabilem," nor would they have the strength or the means even to attempt it. Fluctuations, on the other hand, would practically cease.

Currencies "Stabilem" would be in a position to operate in the and forms of payments.- currency of the producing country, in International money, be it called "Bankor" or "Unitas," or in gold; it could cover its advances or purchases either on a cash basis, or by its acceptances to mature six months or one year from their respective dates, which acceptances would be eligible world-wide for discounting in any of the Cen- tral Banks. Such short-term acceptances would give it time

30 raising the standards of living, it should be quite evident that the said prices must include appropriate wages and salaries to benefit the human element serving the particular industries concerned. The personnel serving same will naturally aspire for progressively better conditions. They must also contemplate a fair profit to favour the producer. Now, as regards its prices of sale, which should be f slightly higher, they must be figured on the basis oif the difference strictly necessary to cover "Stabilem's" overhead and administrative costs. All other additional costs, such as terminal handling charges, freights, insurance and others, from the Fiscal Warehouse or shipping point, to that of the point of consumption, shall be for account of the purchaser.

Stabilizing It does not call for much imagination to perceive the effects of stabilizing effects that a regime, such as is now proposed, operatioas.- would have in the unitarian economies and in that of the / whole. The price that "Stabilem" would offer, at the beginning of a cycle of production, would be that which, as a minimum, would rule the operations of the market. Specu- lators, who reap their harvest in the medium of fluctuat- ing prices, would not dare face "Stabilem," nor would they have the strength or the means even to attempt it. Fluctuations, on the other hand, would practically cease.

Currencies "Stabilem" would be in a position to operate in the and f orms of paymaents.ý-- currency of the producing country, in International money, be it called "Bankor" or "Unitas," or in gold; it could cover its advances or purchases either on a cash basis, or by its acceptances to mature six months or one year from their respective dates, which acceptances would be eligible world-wide for discounting in any of the Cen- tral Banks. Such short-term acceptances would give it time

30 to operate on the acquired surpluses, and to find buyers for them, possibly, within their maturity dates.

"Stabilem" would be better placed than any other or- '"Stabilemn" strategically ganism, to ascertain where the latent demand for its tern- situated for porary holdings does actually occur. It would be in con- issls- stant touch with the pulsations and the rhythm of the various consumptions.

The transportation of "Stabilem's" holdings, once duly Straightf sold, would tend to follow the straight line routing - from transporta- the warehouse at shipping point directly to their point of In destination. True enough, certain centers for World redistribution of the primary commodities would become affected; but if we are to focus the economic factors involved, with a vision for the whole, it will be of positive advantage that a lesser number of miles be traveled between the point of origin and that of consumption.

"Stabilem's" operations would have an immediate de- Beneficial frosting effect on frozen values, which would re-enter cir- stabilizing culation and thus vivify the propped-up economies. The aCtiOn.- problem of supplying foreign exchange would be materially helped in favour of such economies as are in the red in their balance of International payments. The economic crime of casting into the sea precious materials, or of incinerating same, as a means of maintaining the level of prices, would be radically extirpated. We have already seen in our own Peru what it has meant as a stabilizing factor, in terms of peace of mnind and security, such arrangements as the United States Government undertook for the duration to absorb certain surpluses of our primary commodities, at lucrative and pre-established prices. The psychological effect was immediate, and yet the quan-

31 tities which have had to be absorbed, in the case of cotton for instance, have been proportionately small. "Stabilem" following the wake of CONSUMPTION, "THE SO VEREIGN," and in the eventuality that certain of its acquired surpluses should remain indefinitely un- Cases in which "Stabilem" sold, would proceed to announce such a negative fact to would withdraw its support.- the producing States, and to the markets in general, and upon so doing, would also broadcast its adopted decision to withdraw, until further notice, the support it gave to the particular commodity concerned. Such announcement, negative as it may be, would "41per se" constitute a stabilizing factor for the interested economies; namely, the ones that, lacking orientation, would have persisted in the costly error of increasing stocks which are of difficult or impossible disposal. "Stabilem" would be quite free to detail personnel f ree to detail its own1 of its own experts to the various sectors in which it might experts.-- be operating, be it to check up on stocks or to supervise the proper preservation of them, within the best of techniques. the pre- Preference "Stabilem" would give the Member States in favour ference to purchase, on equal terms, such surpluses as it of Member States, on may have bought from the said States' own production, their own production.- provided same are still deposited in the Fiscal Warehouses of origin. "IStabilem" would be free to make specific recom- free to make mendations to the Member States, regarding the incre- recommenda- tion.- ment or diminution, which it would be advisable to make in their production of certain of the commodities, and regarding the appropriate methods for a better grading, packing, etc. Also, and this is an important one, regarding

-mm--- the customs restrictions that it should be advisable to eliminate or to dulcify.

funds of the great "Stabilem's" As far as it can be predicted, the funds engaged "POOL" to be operated by "Stabilem" would be engaged in short cycles.- in relatively short cycles. Its short term acceptances in "Bankors" or "Unitas" would constitute the most appetiz- ing of quick assets.

Such losses as might be incurred, due to deterioration "Stabilem's" lasses.- or shrinkage, applied to the aggregate of "Stabilem's" operations, would be a lesser evil for the community, than that which would result from casting the commodities overboard or incinerating same, as above mentioned. It is a vision of the whole which needs to be applied re this aspect.

"Stabilem's" stabilizing action would be felt even in Extensive stabilizing such sectors as transportation and insurance, etc., etc., due action.- to the volume that its operations would develop.

"Stabilem's" internal organization might be the twin "Stabilem's" internal and, therefore, identical to that conceived for the "Inter- organization.- national Monetary Fund," with a total representation of the Member States and the Executive action placed in the hands of a committee. Its decisions, as in the case of the "International Monetary Fund," would be adopted by a majority vote, and the vote of the Members would be pro- portionate to the amount of their respective quotas.

"Stabilem" would act in the various sectors through the State Banks, Fiscal Agencies, etc. of the Member

33 "Stablea's"States, or of such agencies of its own, as it may deem meet to establish.

"Stabilem's" headquarters would function in the same headquarters.- capital city as may be chosen for the headquarters of the "International Monetary Fund."

conclusions.- Such is the cooperative and coordinating organism that is being proposed, to perform functions, as useful and constructive as the following: - to solve unknown quantities; orient economies; decrease the factors of risk; absorb commodity surpluses; attend to the physical preservation of commodities free from deterioration and shrinkage; attend to their timely disposal; to defreeze frozen assets; return to circulation the values therein involved; generate gold exchange values in favour of Mem- ber States in the red; organize and improve consumption; help to raise standards of living; encourage free trade; dulcify Fiscal regimes; avoid exchange controls; and to positively orient the problems of the "International Mone- tary Fund," etc., etc.

"Stabilem" would be using world savings to foster additional savings, and of a kind intrinsically more useful than even the precious metals. These, by themselves, would not satiate our hunger, nor quench our thirst, nor dress our nudity. Because of its functional process it would be virtually coining "commodity money" of the best kind, that would fit the dreams of many. The one so figuratively coined, might be invested with a greater degree of firmness and stability than such as is simply anchored to the coveted precious metals.

34 The proposed organism is to be "inclusive" and not "Stabilem"' is inclusive. "exclusive." All of the States of the World should integ- The access rate same, and contribute enthusiastically to the further- tcoprmoary~ ance of its ends. Its field of action could be world-wide cmoiis and would embrace the coveted sector of the primary commodities. The dreamt of and promised free access to the primary commodities, would be obtained by following the footsteps of

"STA B ILE M

Such is, potentially, the Noble Lord and Personage, and such are his adscribed attributes and baptismal name. All of him is delivered unto the high consideration of the architects of the "Better World" of the coming Peace. Should he come to life, he would rise from the great holocaust, such as would rise from its funeral pyre the fabulous "Phoenix" bird, of the Arabian legend, to live five hundred and more years.

Lima, June 15, 1944.

(Original Spanish signed by: -

Alfredo Alvarez Calderon.

35 EX HI BI T

Joint Statembent by Experts on the Establishmnent of an InternationalMonetary Fund

Sufficient discussion of the problems of international mionetary cooperation has taken place at the technical level to justify a statement. of principles. It is the con- census of opinion of the experts of the United and Asso- ciated Nations who have participated in these discussions that the most practical method of assuring international monetary cooperation is through the establishment of an International Monetary Fund. The principles set forth below are designed to constitute the basis for this Fund. Governments are not asked to give final approval to these principles until they have been embodied in the form of definite proposals by the delegates of the United and Associated Nations meeting, in a formal conference.

1. Purposes and Policies of the International M~onetary Fundc The Fund will be guided in all its decisions by the purposes and policies set forth below:

i.To pr omiote international mlonetary cooperationI through a permanent institution which provides the mia- chinery for consultation on international monetary problems.

2. To facilitate the expansion and balanced growth of international trade and to contribute in this way to the maintenance of a high level of employment and real income, which must be a primary objective of economic policy.

36 3. To give confidence to member countries by making the Fund's resources available to them under adequate safeguards, thus giving members tine to cor-rect maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

4. To promote exchange stability, to mnaintain orderly exchange arrangements among member countries, and to avoid comnpetitive exchange depreciation. r. To assist in the establishment of multilateral pay- mients facilities on current transactions among m-emnber countries and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

6. To shorten the periods and lesson the degree of disequilibrium in the international balance of paymnents of member countries.

11. Subscription to the Fund

i.- Member countries shall subscribe in gold and in their local funds amounts (quotas) to be agr-eed, which will amount altogether to about $8 billion if all the United and Associated Nations subscribe to the Fund (corresponding to about $ io billion for the world as a whole).

2. The quotas mnay be revised from time to time but changes shall require a four-fifths vote and no member's quota may be changed without its assent.

3. The obligatory gold subscription of a miember country shall be fixed at 25 per cent of its subscription (quota) or io per cent of its holdings of gold and gold- convertible exchiange, whichever is the silaller.

37 111. Transactions with the~ Fund i, Member countries shall deal with the Fund only through their Treasury, Central Bank, Stabilization Fund, or other fiscal agencies. The Fund's account in a member's currency shall be kept at the Central Bank of the member country.

2. A member shall be entitled to buy another ineni- ber's currency from the Fund in exchange for its own currency on the following conditions:

(a) The member represents that the currency demanded is presently needed for making payments in that currency which are consistent with the purposes of the Fund.

(b) The Fund has not given notice that its holdings of the currency demanded have become scarce in which case the provisions of VI, below, come into force.

(c) The Fund's total holdings of the currency offered (after having been restored, if below that figure, to 75 per cent of the member's quota) have not been increased by more than 25 per cent of the member's quota during the previous twelve months and do not exceed 200 per cent of the quota.

(d) The fund has not previously given appropriate notice that the member is suspended from making further use of the Fund's resources on the ground that it is using them in a manner contrary to the purposes and pol-

38 icies of the Fund; but. the Fund shall not give such notice until it has presented to the member concerned a report setting forth its views and has allowed a suitable time for reply.

The Fund may in its discretion and on termis which safeguard its interests waive any of the conditions above.

3. The operations on the Fund's account will be limited to transactions for the purpose of supplying a member country on the member's initiative with another member's currency in exchange for its own currency or for gold. Transactions provided for under 4 and 7, below, are not subject to this limitation.

4. The Fund will be entitled at its option, with a view to preventing a particular member's currency fromi becoming scarce:

(a) To borrow its currency from a member country;

(b) To offer gold to a member country in exchange for its currency.

jr. So long as a member country is entitled to buy another member's currency from the Fund in exchange for its own currency, it shall be prepared to buy its own currency from 'that member with that member's currencv or with gold. This shall not apply to currency subject to restrictions in conformity with IX, 3 below, or to holdings of currency which have accumulated as a result of transactions of a current account natutre effected before the removal by the member country of restrictions on miulti- lateral clearing maintained or imiposed under X, 2 below.

39 65. A miember country desiring to obtain, directly or indirectly, the currency of another miember country for gold is expected, provided that it can do so with equal advantage, to acquire the currency by the sale of gold to the Fund. This shall not preclude the sale of newly-miined gold by a gold-producing country on any market.

7. The Fund may also acquire gold from inember countries in accordance with the following provisions:

(a) A member country may repurchase from the Fund for gold any part of the latter's holdings of its currency. (b) So long as a memiber's holdings of gold and gold-convertible exchange exceed its quota, the Fund in selling foreign exchange to that country shall require that one-half of the net sales of such exchange during the Fund's financial year be paid for with gold. (c) If at the end of the Fund's financial year a member's holdings of gold and gold-convertible exchange have increased, the Fund may require uip to one-half of the increase to be used to repurchase part of the Fund's holdings of its cur-rency so long as this does not reduce the Fund's holdings of a country's currency below 75 per"cent of its quota or the mnem- ber's holdings of gold andl gold-convertible exchange below its quota.

IV. Par Values of Memlher Currencies i. The par value of a member's currency shall be agreed with thme Fund wheni it is admitted to membership,

40 and shall be expressed in terms of gold. All transactions between the Fund and members shall be at par, subject to a fixed charge payable by the member making application to the Fund, and all transactions in member currencies shall be at rates within an agr-eed percentage of parity. 2. Subject to 5, below, no change in the par value of a member's currency shall be made by the Fund without the country's approval. Member countries agree not to propose a change in the parity of their currency unless they consider it appropriate to the correction of a fundamental disequilibrium. Changes shall be made only with the approval of the Fund, subject to the provisions below. 3. The Fund shall approve a requested change in the par value of a member's currency, if it is essential to the correction of a fundamental disequilibrium. In particular, the Fund shall not reject a requested ch-ange, necessary to restore equilibrium, because of the domestic social or political policies of the country applying for a change. In considering a requested change, the Fund shall take into consideration the extreme uncertain ties prevailing at the time the parities of the currencies of the member countries were initially agreed upon. 4. After consulting the Fund, a member country may change the established parity of its currency, provided the proposed change, inclusive of any previous change since the establishment of the Fund, does not exceed io per cent. In the case of app~lication for a further change, not covered by the above and not exceeding io per cent, the Fund shall give its decision within two days of receiving the application, if the applicant so requests. 5. An agreed uniformn change may be made in the gold value of memrber currencies, provided every member

41 country having i o per cern. or more of the aggregate quotas approves.

V. Capital Trav iact ions i. A member country mlay not use the Fund's resources to meet a large or sustained outflow of capital, and the Fund may req1uire a member country to exercise controls to prevent such use of the resources of the Fund, This provision is not intended to prevent the use of the Fund's resources for capital transactions of reasonable amount required for the expansion of exports or in the ordinary course of trade, bankingy or other business. Nor is it intended to prevent capital movements which are met out of a member country's own resources of gold and foreign exchange, provided such capital movements are in accordance with the purposes of the Fund.

2. Subject to VI below, a member country may not use its control of capital movements to restrict payments for current transactions or to delay unduly the transfer of Funds in settlement of commitments.

VI. Apportioniment of Scarce Currencies i. When it becomes evident to the Fund that the de- miand for a member coumntry'.s currency may soon exhaust the Fund's holdings of that currency, the Fund shall so inform member countries and propose an equitable method of apportioning the scarce currency. When a currency is thus declared scarce, the Fund shall issue a report embodying the causes of the scarcity and containing rec- o~mmendations designed to bring it to an end.

2.A decision by the Fund to apportion a scarce currency shall operate as an authorization to a member coun-

42 try, after consultation wvith the Fund, temporarily to restrict the freedom of exchange operations in the affected currency, and in determining the manner of restricting the demand and rationing the limited supply among its nationals, the member country shall have complete juris- ciction.

VII. Management. i. The Fund shall be governed by a board on which each member will be represented and by an executive committee. The executive committee shall consist of at least nine members including the representatives of the five countries with the largest quotas.

2. The distribution of voting power on the board and the executive committee shall be closely related to the quotas.

.3. Subject to 11, 2 and IV, 5, 211 matters shall be settled by a majority of the votes.

4. The Fund shall publish at short intervals a statement of its position showing the extent of its holdings of member currencies and of gold and its transactions in gold,

VIII. Withdrawal

i. A member country may withdraw from the Fund by giving notice in writing.

2. The reciprocal obligations of the Fund and the Country are to be liquidated within a reasonable time.

3. After a member country has given notice in writing of its withdlrawal from the Fund, the Fund may not dis-

43 pose of its holdings of the Country's currency except in accordance with the arrangements mnade under 2, above. After a country has given notice of withdrawal, its use of the resources of the Fund is subject to the approval of the Fund.

IX. The Obligations of Member Countries 1. Not to buy gold at a price which exceeds the agreed parity of its currency by more than a prescribed margin and not to sell gold at a price which falls below the agreed parity by more than a prescribed margin-.

2. Not to allow exchange transactions in its market in cturrencies of other members at rates outside a prescribed range based on the agreed parities.

,1. Not to impose restrictions on payments for current international transactions with other member countries (other than those involving capital transfers or in accordance with VI, above) or to engage in any discriminatory currency arrangements or multiple currency practices without the approval of the Fund.

X. Transitional Arrangements 1. Since the Fund is not intended to provide facilities for relief or reconstruction or to deal with international indebtedness arising out of the war, the agreement of a member country to provisions 111, 5 and IX, I above, shall not become operative until it is satisfied as to the arrangements at its disposal to facilitate the settlement of the balance of payments differences during the early post-war transition period by mneans which will not unduly encum- ber its facilities with the Fund.

44 2. During this transition period member countries may maintain and adapt to changing circumstances exchange regulations of the character which have been in operation during the war, but they shall undertake to withdraw as soon as possible by progressive stages any restrictions which impede multilateral clearing on current account. In their exchange policy they shall pay continuous regard to the principles and objectives of the Fuu~d; and they shall take all possible measures to develop commercial and financial relations with other member countries which will facilitate international payments and the maintenance of exchange stability.

3. The Fund may make representations to any member that conditions are favorable to withdrawal of particular restrictions or for the general abandonment of the restrictions inconsistent with IX, 3 above. Not later than three years after coming into force of the Fund any member still retaining any restrictions inconsistent with IX, 3 shall consult with the Fund as to their further retention.

4. In its relations with member countries, the Fund shall recognize that the transition period is one of change and adjustment, and in deciding on its attitude to any proposals presented by members it shall give the member country the benefit of any reasonable doubt.

45 .1

'The Catholic Ladies'Ald Society, Inc., 257 Pacific Building,* 8SI-S23 Market Street, Saon Etancisco, California,

The greetings and good wishes off your 57th Gralad Couancil have beeii received by the 'United Nations Confe'rence with sincere appreciation, It Is encouraging to have the support of so repzteentative a group in the important undertakings of this Conference. ?erznit me to th-ank you for this evidence of your interest. Very truly yours,3 For the Secretary General: 8?RYNT-MUMPORD

Bryant. Mmford Acting lInformation Officer

i:IS :I5Th"DMIIEL :S GT 9'

Thar& rou for youw tolosram o±f June 14o 1945 suggesting that the inspiring words of Lincoln be used as the Preomble to the 'United Nations chaarter., Your suggestion baa been noted by the appro- prints otflorsr of the Qonforence and I assure you that -your courtesy Iin makirg It available Is groat.

Slimosrely yo'weo, For theSertyGeeat

Actin0ý0 t orotioor

The Reverenld Johnf Cnrrutherný, I)4).* Saint rranclo Eotok, San Friancoisco, california. gike:ib•ANIEL: O THE UNITED NATIONS CONFERENCE

ON INTERNATIONAL ORGANIZATION

Nt sr414 I

x.~.- THE UNýTED NATIONS CONFEREN'cEk-

ON INTERNATIO NAL ORGANIZArIONN

Av ce ~T~F1220x SYM LS

This is a full-rate DL :a "' ?~rd isde LC=Dden~dCab~e syeo abov or Ire NcrtbleibLt~ dicated by a suitable U N I O cedi the address. A. N. WILLIAMS Shjip RadLesram

The filing time shown in the date line on telegrams and day letters is STANDARD TIME at point of origin. Time of receipt is STANDARD TIME at point of destination VIA CEP LD 17 NV NL PD Ff1 SAN FRANCISCO CALIF JUNE 74 79 4 S ALGER HISS E 'SECRETARY GENERAL AMERICAN-DELEGATION (FA IRMONT HOTEL) SFRAN

SUPPORTING THE SPEECH OF LORD HALIFAX AND EFFORTS OF DEAN

GI LDERSLEEVE MARSHALL SMUTS AND OTHERS WHY NQT QUOTE LINCOLN SPEECH FOR INSPIRATION OF ALL7 INCLUDING VOTERS AND

VETERANS, AND DECLARE THAT WE THE PEOPLES OF THE UNITED NATIONS IN HOMAGE TO OUR NOBLE DEAD, DO -HEREBY HIGHLY RESOLVE QUOTE THAT THESE DEAD SHALL NOT HAVE DIED IN VAIN AND THAT UNDER GOD, THERE SHALL, BE A NEW BIRTH- OFF FREEDOM FOR MANKIND END QUOTE. DR JOHN CARRUTHERS FORMER CHAPLAIN U.S.S. OKLAHOMA AND HEAD CHAPLAIN MORALE U S NAVY ROOM 205 SAINTFRANCIS HOTEL 330A JUNE 15 1945

THE COMPANY WILL APPRECIATE SUGGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE .4T

97 deer Doctor CanpariA abn: Your letter of ',,my 4,* I94$ expanding the discussiLono ia ymur previous co",mupioetion concerninog Crook afifains,-has beon ireoelve4. You have no doubt ±'eceived the libtte-r of May 17,v 1945 ezptaining that 1`t Would not bo ap propriate ifor this Confrenceo~ called soeyto dratt the charter. tor he thitod A~tion organzation, to take action on the speoilt Problems Ofl any 0"e batimon I should Uppreciato It If you would ziake this ±nformwticm availablAe to the g~roup on whose behalf you Wrote,

?Or the floroatf7 General:

B3RYANT MUMFORD fliyacnt Xumnford Atilng Infrormation Officer

tDoetor Constantin D. Csinpania Cab.anes, Coteotlvidad Oriega en "Mexico,

\IS-:IOCU:-DANI1r,:SGT Dr.' CXPampenis 0. Radiolcigist, Bilso, Guanajuato. Mexicoi. .Honorable Zuteraflie d Qonfererice, San Franqiscoo, California, U.S.A. Worthy Chalirman; 1 take the liberty of respectfully insisting on the revision of the cuirrent situation In certain territories, which despite all promises are still under the rule of mediators, Greece should annex those territories,o but Greece finds itself in a position where it "recOeives8 orders end cannot funct i on independent ly. 'Clearly seeing the Impossibility of achieving the rehabilitation of nations without reimbursement and the lack of official mention of the nullity of international debts springing from former wars, we avail ourselves of the opportunity of requestingI before the entire world assembled at this Honorable Conference, the imme diate withdrawal from the Greek capital of the International Committee of control of public finances which has vilified. Greece since 1897. The small nations, because of their extreme poverty,, are being smothered by these d~btso which they will never be able t o payr. Beasuse the GovernmeOnt in Athens does not really represent the people of Greece, with elections and plebiscites banned, we respectfully request that something- practical be decided for Graeece and its people. The formation of any type of Grganiuetion will be of no avail to humanity if the peoples become oultcasts at the mercy of an internati cnalt pltaitcrs cy. we7hope for the recognition of the territor~al rights of Greece which has sacrif iced the blood of its sons so many times for foregn. ntersts.Very respectfully, for T1HE GREEK C flIY IN MEXICO (SIGNE) Dr Constantin D). Gampanis Cabanas President Seni or Military Physician retired from the Greek Armay.

'4538 DIŽ. C. D. CA~N13NS C. Tel. E~ric. 14 Pad i6logo SiaoO, Gto., N~xico

Patios X - ~ ectroterapio I'loder'na - Laboraorolo - Dinesacorlo rormac~utico

Mayo 4 d~e 1945 H. Conferencia inteaiiaclda San Franlsisco' Oaliforn.U.S.A. E,.Sr iPresid~ente: Acus~ndo recite dle la coman~icacion y tomand~o dae base los principios proclamn&odd.aentro d~e la tfinalid~ad y prop6- sitos de la reuni~on~de la rr.Confer6ncia,nos perrniti~mos la libertad. respetuosarn6nte in~istir r'epitidnd~o con tod~o el, honor nudstra peticion6.de la revision d~e la situacion existdnte d~e ci6r- tos territorios~cque con todas las prom~sas siguen bajo e1 d~omi- nio de terc~ros.indjisoutiblem6nte arecia d~e f~actum debia aecla- rarlos anexad~os'por las razones exixaestas,pero nunca sucedera tal COS" d~esd~e luadgo que su G-obierro recite ord~enes y no obra po Yien formina ind~e-end~i"ne Viendo~se en form~a' clara, la imposibiliadad. d~e co-nseguair las R~aoio esu re'habilitacion sin el rembolso y ni tocando ha- die en formua oficiosa la nualidad. de las deudas internacion'ales, originadas por las anteriores guerras nosotros en el d~ereoho Qi e nos correspon~de corno' puaeblo ciue 's-fre~aprovechb~mos la oportu-I nidad de pedir ante el, rnuncjn entero reunid~o en esa H.Conferenci a el nim'ediato retiro de la capital heldnica.,del Gomite d~el con-~ trol internacional dec las finanoas publioas.,que ha d~enigrado ba- stante a Grec ia desde el %aAO '189,74, Indiscoutiblemente-no es posible oon~siderarase victoria d~e principios~desde'luego ajie las peq'udfas Txaciones se ahogaran en sus deud~as~cuales es imposible pagar tanto ahora como en el proximno futuro ,y suas pueblos los espera miseria ,d-esesperacion y haiubre,nho siend~o ca-pacitadas las grandes satisf~acer sus ne- cesid~ades, Asi con 'un 0-obierno en Atenas que no representa al pueblo dc CGrecia,itnposibilidado a celebrar elecciones o polevisci'- tos~ped~imos atentamente algo practico,decidir~para Grecia y su pueblo) evitando a repetirse las maniobras by~rsatiles y financi- eras~lque dejaron en la, mis~ria a todo el Vaeblo~quitando recumt- sos tndispensables para su vid-a conio. sucedic en la e-poca de la post-guerraippoi-quae siguiend~o laps cosas su camnino como ahora, pronto G4recia perdera, su ffo±*ima de ser indepedien~te y soberana) bajo el aspecto de Bu-s financas y sus. necesidades g~aotidianas, Para nad~a servira a la bxumanidad la f'orraacion cualquien a quae -sea~de Organisnios~d~esde luego cjue los pu~blos seran panl- as d~e on~a plutocracia internacional)q:ae manejara a su antojo todoLas grand~es decisiones a base he sacrificios pecunaia'rios de los grand 'es4.niciaran.diferente era,de es-peran~zas y optimi- 5iuo~quae dec tod~o carece la H.'Conferencia dec San Fran~siscoLa laumanid~ad no debe seguir vivi.endo esclava. k#2 f2. En la esrperanza. q~ae la re-union de tantas personalidades de renombre rnundi~al~ein F-a.n Franttsco,liegara a uia d~esioion a d~ar' a conocer al muxido enteroiq~ae ha fracasad~o el sisteina actual de pensar y orcienar y con mas razon de gobernar al mnrxdo~queremos creer q~ua para rxrecia,cue tantaG v-eces ha clado la sangre dle esu hijos por intereses ajenoscoon Gobierxios qcte servian imas a agquel- los y no a los griegoso,respetuosam~nte repetimos naestra petici.- on de reconocex' los clereohos ter~itoriales)para un Pais q~ue dio la sangre d~e es ahijos a la luchba de intereses yr nada mas,de las potencias, del mundoo. Nuestra, atenta i.ntervenocon la anigina u~na obligacion hi- storioa,qcuedando en la forma m~as atenta y rese'etuosa con toda nuestra con sid~eracion, -Muy-atentamente por LA r-A EN NEXICO

Presidente Dr IConAStblitin Oanpai Cabanes M~ayor Miedico Miilit-ar pensionado del Ejercito G-niego

SALLE MACU VID KNERRIANa. I TELEFONO 14 SILAO, GTO. MEXICO N. V

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May l7~ l94&5.

My dear Doctor Campania Cabanes: I acknowledge receipt of' the letter, dated May $, 1945, which you sent on behalf of your group, requesting that the 'United Nations Conference give Greece the right to annex certain Island territories, As you are no doubt aware,, the primary purpose of the San Francisco Conference Is to formulate the best possible'charter for an international organization to maintain peace and security for all people of ,the world regardless of race, color, creed or sex. It Is not anticipated that the problems to which your letter refers will be discussed at this conference. Sincerely yours, For the Secre tary General:

T. T. MoCrosky Information Officer

Doctor Constantin Do Cwapanis Cabaneas Ooleotividad Ortega en Metico, Quite Maclovic flerrera N6. 5# 4Silie,-Gtoo , Mexico.

IS 10CW" YTON.:SGT ~OTIVLIDAD GJ 1 ENMEXICO4

SILAO, GTO., MEXICO. /.6 .7

Mayo 3 d~e 1945 I.Confer-encia interallada San.Fransisc'o CalE*U.A. ESr Presid~nte: Actu~almdnte la evoluolon d~e los acontecimi.~n- tos'de la gudrrafcd:iari'amdnt'e.-ambia el perfil de los problA- mas que abklro an la existdnoia y la vida futuara de los pud-blos y eerpecialmii~te de los pequ~flos. Lasý exig~iaoias de las pot6neias en planear sus mddos de seguir vividndo~d~el trabdjo y la'mis6ria de los demias~oen lu-a gar de cdisiainuir Auiudntan :en cada momdnto dejdndo a f~orni~rse la terible oonclucoi'n,de que sera sombria y desespergnte,1a vida -y el f'utuarode las peq~udfias INaoidneSTeiidran indiscuti- blenidnte,:pie vivir' en mu± rii para s o Lotned.ncoa y el bie-nestar' de las N~aciones victorideas Deggracjiadaiu~nte a nadie convdnoe hasta ia hora~ia ffogdsa o'ratdria en las reuxni- dnes internacion.dles: que se han efectuagdo, El pudblo griego~victim'a por aiubas partes~legalmdntei no eata rePresentddo.opor G-obi6rno legitimolprod~ucto de la. voluantad Prdpia.Lo impd5nen ajdnos~y es l~gico abogar por lo que aqudllos.inidican y~orddnanvY~no por lo que el pcLdblo he- Idnioo neoesita.Fntre otras oalamidddes que han caido a las. U- frid~a y pobre Q-rdoia,1sus resdrvas metdlioas~que ascendian en algunos ai6ntos de iuillones de pdsos mexic&]nos en mongdas au-a rifferas*Slabstraidas de las aroas del Banco de Greoi~apara si- eiupre han desaparecido*En 0recia persiguen a los gue se op6- nen, a la. infludncia y dominjo ingl6slyoonservdndo al pu~blo somple tazn' nte aisl d de os e s Paises oivilisgdos.Las mi sidns dplo-metioas en el extrang~ro 'on ag~ncj-sdelsi g~~~dles~~BrtnosHptinosque la oligargia pluto'oi~tica domlina Y 4obigrna a su guasto~ G-re'aia" tne-pas !v.ine pr&Pia Iiistdria esorita- con. la- adngreqýde msu pr6pios hljosgsus territdri-os iun o n~do~porr~z ajnasM'UY df erdte de los que los habitan, porý bspgoiaý d~e giglos ent&'os~sus bijos eiuigrtdos en algunas' I~ai~nszdfren' oarg~nd~o la bruz de la.discrimjinacion y de la mied~ria.AIora- e-sa G-reciasante este Honorable onut ~ ,e Presnta±6ns,;ue onsrvan sil aitura, oampli~ndogu niision b&Jo otros prinoipios Y btses$-ten6niog el honor con todo ries-P6 to A elevar la atdnta y'respetudsa. Peticiondervarasi tuaionexst~e d NRTE])E:Ep2ERUSDE LAS ISLAS DEL DODECA- NBSO,.DH L&.ISLAL D]& Cfl')IUS,por razidnes y argurndntosphistoori etikdi~selg 005 ,$-ct~iýek~:O~en aou~grdo con el ParaIfo terodro de Ia carfts del Atlanticoo edeijneoc.. .6 ~~der el der~cho a GTrdoialde anexdrlas~o a pre~e 0 .CoCPO',"S'F. 6

1L~ Y viven en aqud11os~gri~gos,,1egitinios y verdad.gro's. E.n la anterior it.Confer~cia (interamericgna) de ChoapuL- tepdo~tuvimos la en6rie satisfac~ion de'ver nudstra peticion, ao~rea (66 la cual Iincluimos copia) ddntro de los'expedi~i tes ffoingdos,qkieridndo credr,qjue aiidra nudvos :faotdres,de po- t~icia ninJltilateral,kaoral y material,tendran la bond~ad. de abogar~por la x'esuluoion del Probldma vitdlico que se presdinta. para, Jos gridgos c-on toda la tranqAztlidad y silgncio'del G.o- bidrno'de At~nas que es monolatera). e ilegal en su existgn- aia en el territorio de G-r~oia'4Y si el pudblo de Glrcia. en e- stos moiuditos tdma la i~ni~ciativa,de presentar espontaneam~nte su118 probldmas~ante' esta H.ReurdonI,~lo impuJlsan a esta decision Y pdaoovrazdneq,'que los que condeen lo que en GTrdcia suiccede,)re- conocerkn la ratoniaoeptando en fform& def'in~itiva~que el Gobi~z'- no, de At&,as,'jio reppesdnta. ai pudblo de Gr~oia, Segro~que..de daran los pagos que la'concidnoia. y el. de- ber inidic&a~aradeardmos de parte del pueblo de Gr~cia suscribidn donod con el*mayor res~p~to y eatirnaci on distinguida, Atent LA COLECTIVID 0 ~ ~~a

~~14 twoz' on~tan'ba ,Oiani -6banes or.MediLcom .it.e. ..n del Ezldrcito Griego

CALLE MACLU VID ItRRE N& I TELEFONO 14 SILAQ, GTO. SMEXICO

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A AAAAA A'. A Dr. D. Cempanis C. Ra di ologi st . a,01RY L Silao, Guanajuato, Mexico. Honorable Interallied Conference,6 San Francisco, California,, U.S.Ar I Worthy Chairman: I take the liberty of reppeotfully insisting on the revision of the current situation in certain territories,,which despite all promnises are still under the rule of mediators. Greece should annex those territories, but Greece finds itself in' a position where it receives orders and cannot function independently. Clearly seeing the impossibility of achieving the rehabilitation of nations without reimbursement and the lack of official mention of the nullity of international debts springing from former wars, we avail ourselves of the opportunity of requesting, before the entire world assembled at this Honorable Caaference, the immediate withdrawal frciu the Greek capital of the international Ccnmittee of control of public finances which has vilified Greece since 1897. The small nations, because of their extreme poverty, are being smothered by these debts, which they will never be able to pay. Because the Government in Athens does* not really represent the people of Greece., with elections and plebiscites banned, we respectfully request that something practical be decided for Greece and its people. The formation of any type of Organization will be of no avail to humanity if the peoples become outcasts at the mercy of an international plut ocracy. W~e hope for the recognition of the territorial rights of Greece which has sacrificed the blood of its sons so many times for foreign interests. Very respectfully, f or THE~ GREEK CG=UNITY IN MEXICO (SIGNED) Dr Constantin D. Campanis Cabanes President Senior Military Physician retired from the Greek- Army.

4526 GRAND OFFICERS 1944-1945 STATF OFFICE OF Honorary Grand Chaplain Re.... nJMit GrandChapain. ev. Richard T. Howley Grand President.....Mrs. Joseph P. Moujlle Past Grand President (incorporated) ...... **s"* Grand 1st Vice President.. Mrs. Matilda Boyd Gran d2nd Vice President. 257 PACIFIC BUILDING, Mrs. Ward C. Brown 821-823 MARKET STREET Granod 3rd Vice President.... Mrs. Ann Grover Grand Secretary...... Mrs. James S, Cussen PHONE DOUGLAS 3024 Gran d Treasurer...... Miss Louise L, Koch Grand Marshal.....Mrs. Leo F. Delventhal Grand Guard ...... SAN FRANCISCO, 131 CALIF. Miss May Bohan OBJECTS RELIEF OF THE POOR GRAND DIRECTORS Irrespective of Mrs. Joseph P. Monille Creed or Nationality, and Mrs. Emily the Spiritual and Physical Help McCormick of Suffering Humanity Oat1land, Mrs. Hanna Burns Ca~lf- Mrs. Madge Blanchdield Mrs. ST. MARGARE-T'S Ju~ne Esther McGrath CLUB 15s 1945. Mrs. Eleanor R. Kearns 1499 CALIFORNIA STREET Mrs. Anna L. Davis Mrs. Mary Kropp Home for Self-Supporting Girls Mrs. Marie Krotky Mrs. May Flynn Mrs. Anna Wolf

United Nations, Conference on International Organization, San Francisco,, Califx Gentlemen:o ird Thie 57thi Grand Council,, Catholie Ladies' kid Society,, Inc. In corment Ioiass~embled at Oakland, Calife' s~end greet~ings an& best wishesa for a succeassful conference in your efforts towards a united world peace. Very sincerelys THE CATHOLIC L.ADIES.' AID 8OCIETY, INC. J~unela 15Z9U~.

I's dear Doitai?' Oamnisoeaa Xacknowledge thea receipt of the memorandum wh=cyo isbmitted to the Thited IRations Confer.- 00000 vetting forth certain iviews of the Portuguese. American Committee for Donocraoy# 'You are of onurxse aware that the purpose of the Sat Frainds~o 0o1 rei~rnee i4s to formulate the beat possible ohin'tar or an international organization to vanintain peace and seawrity. for all peop~le of the world'. it, 1oisa einstslbr eOlOusIVelý,Kto thin task and it ia not intended that the internal or externial relationahips of anyr one nation will be the stxbject of action herot

For- the Secretor? General:

Bryan MtOffordr

Doctor Joao OeMOOnsq Portuguese-Avert can 0ommt tsp for Democracyo, ~?ow York 7# Now: Yor~r.

15:100 :L-SGT Answered by Card.,

June 13, 1945.

MY dear Mr, Clark: Your recent suggestion In connection with the work of-the United Nations Conference has been received and your courtesy in bringing your views to the attention of the Conference is appreciated,. Sincerely yours, For the Secretary General:

Bryant Mum~ford Acting Information Officer

SRYANT MUMFORD

Mr. W. F. Clark,, 4Q05 Calif ornia S0treet, San Francisco 18, California.

iIS IOd,*3ANIEL SGT To the Chairman of the United Nations Conference on International Organization

Dear Sir:

The Portuguese-American Committee for Democracy respectfully submits to you this memorandum, hoping that it may be incorporated into the records of the Conference and brought to the attention of all its members.

Speaking in Chicago on October 5., 1937, the late

Franklin D. Roosevelt prophetically defined war, declared or undeclared,, as a contagion tending to "~engulf states and peoples remote from the original scene of hostilities." In that speech the President advanced the idea of a "quarentine" of those who were jeopardizing the peace, the freedom and the security of ninety per cent of the population of the world.

Again on September 3, 1939, in his Talk to the Nation, the great leader of mankind stated that "every word that comes through the air, every ship that sails the sea, every battle that is fought, does effect America's future."

This realistic sense of the close interdependence of all peoples and countries determined Roosevelt's wise international policy. In his Message to Congress on January 6, 1941, he formulated the basic faith in the Four Freedon-s: of speeck and worship, from want and from fear, everywhere and anywhere in the world. Again in his memorable speech of October 21, 1944, before the Foreign Policy Association, the late Presi- dent said: "W shall bear our full responsibility, exercise our full influence,, and bring our full help and encouragement to all who aspire to peace and freo. Finally, in his report on the Crimea Conference, on March 1, 1945, he announced "the beginning of a permanent structure of peace upon which we can begin to build, under God, that better world in which our children and grarnddhildren ...... must live and can lv. -2- Fighting for a world where respect for human dignity and freedom should universally prevail, Roosevelt won the support of the American people. And the fact that his death was so profoundly mourned in so many lands, plainly shows that he was the sylmbol of an aspiration common to all the freedom and

peace loving peoples of the world. In clear an' ringing sentences which will forever fire the imagination and enlighten

the minds of all men and women of good-will, he stated the

fttndamental truth that the world cannot live in peace and security if it be "mpart free, part enslaved."t The ideals and hopes of which Roosevelt became the

symbol were far from utopian, for they sprang from glaring realities. Mankind saw fascism spread from its apparently harmless Italian beginnings, -with the crushing power of an

epidemic. From Poland to Greece and from Austria to the Ibe-

rian Peninsula, it leaped to the Far East and even invaded the

Western Hemisphere. Encouraged by the over-confidence of the great democracies, and fostered and appeased by the tories and

reactionaries of all lands, it finally threatened the survival even of those who had helped it, and plunged the world into global war. Had the quarentine proposed by President Roosevelt in 1937 been set up, this tremendous waste of lives and riches would never have scourged mankind. Had the policy which cul-

minated in non-in~tervention, in the assassination of the Span- ish republic, and in the sacrificing of Czecho-Slovakia been

reversed -- and European democrats upheld instead of scorned - this immense catastrophe would not have been possible.

We, of the Portuguese-American Committee for Democra- cy therefore feel well jus tified in coming before the Con- ference which is framing a world order based upon the four

essential human freedoms,. to sound a word of warning: that

TO T OLERATE P ORTUGUESE FASCI SM REP RES1E1TS A SERIOGUS DANGER TO STHE WHOLE OF MANKING. Portuguese dictator Oliveira Salazar

still enjoys good diplomatic relations with most of the United 1 -3-

Nations, not withstanding the fact that he has abolished all the fundamental freedoms of his people, that he packs jails and concentration camps with his opponents, and has even dared officially to mourn the death of Adolph Hitler. His agents have free access to the Foreign Offices of all countries, to the world press, and even to your Conference; while PortuguesE democrats -who are true representatives of the Portuguese nation, continue to be treated as outcasts.

E~ncouraged by this unwise tolerance, the Portuguese dictator is behaving as though assured of political survival.

If his hopes come true, the totalitarian curse will continue to hang over the world. A refuge for the remainder of fanatic

Nazi-Fascists will be open, and geographically so ~vell situated, that from there the modern tools of destruction can easily strike at the Western Hemisphere. A focus will be maintained for the dissemination of propaganda against democratic methods threatening again to infect the whole world and frustrate all efforts consecrated to the building of a lasting peace.

Let us briefly review Salazar's record:

A military revolt took place in 1926, which set out to destroy the constitutional democratic regime which had governed the country until then. No legitimate constitutional government has existed in Portugal since that time, The "Ne State" of Salazar is totalitarian and fascist because: 1. Under it there exists no freedom of thouqt, of religion, of assembly or of association.

2. By its enforced decrees, only one political party is permitted, a fascist party, deceitfully called "National TUn ion 1t.

3. There are no free elections. Sham elections are held on the basis of a single list of candidates set up by the government. No vote against the listed candidates is admitted. The vote is not controlled. Sanctions are applied against those not voting in favor of candikhtes as listed. -4-

4. Salazar's government does not derive its power fi the so-called National Assembly: it has power to legislate regardless of that Assembly. There is no independent legislative body. 5. There are no legal means by which a change of government may be obtained; the President of the Republic is the only one empowered to bring about such a change, but the

President is chosen by the one and only party -which Proposes the one and only candidate.

6. Salazar's government employs a secret police -- the -VDE -- which is a fitting counterpart of the Gestapo; it practices espionage and denunciation, is allowed to arrest arbitrarily, applies physical torture to extort confes- sions, and may detain anyone in prison indefinitely. 7. Salazarts government maintains concentration camps for its political prisoners as well as disciplinary batallions for those whom it suispects of adverse political opinions. 8. Salazar's government does not accord Habeas Cor- pus guarantees, nor does it recognize the inviolability of the home.

9. Salazar's government arbitrarily appob~ts and summarily dismisses all bodies of justice; there is no trial by jury; both his ministers and his police are at liberty to disregard court sentences. Political infractions are tried by special tribunals. The judiciary power is not even remote- ly independent.

10. All public teaching is geared to fascist ideolo- gy; youth is thoroughly indoctrinated 'with fascism and militarism. All institutions of free education have been elimina-

ted. Every teacher suspected of anti-fascism has been dismissed.

11. The country's economy follows the erstwhile Musso lini Corporative pattern; every formi of economic enterprise, -5- transaction or activity is subject to individual control by the corresponding government-controlled Itcorporation"t.

12. The government fbes wages for all -workers; the wages established are recognizedly below subsistence levels.

Starvation and extreme poverty are widespr~ead; prostitution is increasing at an alarming rate; infant mortality is appal- ling: almost 50 percent of all deaths occur below the age of E

13. Scientific research is seriously curtailed; all cultural activities are closely watched by the fascist authorities.

14. All known anti-fascist or democratic Army and Navy officers, public officials and magistrates, have been either retired or dismissed.

15. All press and radio broadcasts are under State control.

16. The political situation prevailing in Portugal is one of Dermanent terror and agitation. It is this structure of the Portuguese fascist state, developed and headed by Salazar, which accounts for the foreign policy adopted and pursued by Portugal in alligning her self with the Axis and against the democracies.

Portugal is one of the few nations not invited to the World Security Conference at San Francisco. This means that the westernmost European country, -which controls a vast overseas area, and has strong cultural ties with Brazil, 'will not participate in the peace and post-war planning.

The Portuguese people felt that the domestic and foreign policies of Salazar would result in exclusion from the

Conference, end therefore they consider they have no cause fox

complaint. Tjhey understand the justice of such exclusion as a sign of the United Nations' repulsion for Portuguese fascism.!

The ideological affinities of Portuguese fascism wit~h

German, Italian, Spanish and Japanese totalitarianism led to -6- a common hatred of the democratic nations, fighting for the cause of freedom. Portuguese fascism brokce off diplomatic relations with Czechoslovakia and never recognized Soviet

Russia; it participated in the plot to overthrow the legal government of republican Spain; its broadcasting stations became the first propaganda units actively to serve Franco's purposes; Salazarts Portugal not only failed to fulfill its non-intervention agreements, but afforded the Spanish fascist rebels full transit through Portuguese territory, for men, supplies, arms and munitions.

Salazar actually participated in Francofs rebellion by supplying him with regular army officers and an army of tivolunteers" to fight in the fascist ranks. The Portuguese press -- totally controlled or owned by Salazarts Estado Novo --unleashed a vicious campaign against the Spanish republic and in support of Franco; Salazar refused haven to Spanish republican refugees and actually surrendered to Franco, to be shot, those who were caught on Portuguese soil. When the Second World War broke out, Salazar's government lined up 'with the Axis against the democracies: its press violently attacked England and France for declaring war on Germany, and heatedly defended the Axis inpei1alists. For five years Portuguese territory was the focal point of Ger - rgan espionage which, with the consent of Salazar, operated its wireless stations for the relay of vital information to the Reich. Salazar furnished tungsten, tin end foodstuffs to the totalitarian belligerents, and re-exported to Germany mani, supplies obtained from the democracies.

Salazar granted air bases to Japan in Portuguese Ti- mor (East Indies) and Macau (China); he failed to garrison either territory against the Japanese, but dispatched troops to the Azores and Cape Verde Islands, THERE TO RESIST A-NY

ATTEMPT AT LANDINGS BY THE BRITISH AND THE AIVFRICANS. SALA-

ZAR ACTUJALLY ISSUED ORiDERS TO FIRE ON BRITISH VESSELS, but -7- fortunately they were not carried out. His concession of' bases in the Azores in 1943., was made only when circumstances rendered it imperative.

Those Portuguese who showed any sympathy toward the United Nations were either beaten up in the streets or arrested by Salazar's police. Others who were more articulatE in their opposition to the Axis were deported to concentratior camps, in the colonies; to listen to either British or Amaeri- can broadcasts constituted cause for police persecution, whilf it was entirely permissible to listen to propaganda from R~ome or Berlin, which propaganda the Portuguese press and radio diligently reproduced.

When Salazar's concession of air bases to Japan in Timor led Australian and English forces to occupy that island, Great Britain was openly insulted in the so-called Na- tional Assembly, the fascist propaganda department having then organized a "popular" demonstration against the democracies. Salazar made haste to protest to Washington against bombardments of Macau by American air forces, but neither his government nor the "National Assembly" showed the slightest indignation against Japan or, in general, against the atrocities committed by the aggressors.

In order to save their shaking foundations, the Ibe- rian Fascist governments are today claiming that their neutrality has materially helped the Allied N'ations' cause by permitting them to wage a total war in the Mediterranean and facilitating the opening of the Second Front. As ailready pointed out, this neutrality has been a simple mockery of the truth. It is undeniable that only the well-known and open opposition of the Iberian peoples pr evented Franco and Sa- lazar from giving more effective help to the Axis and from entering the war against the Allies. In spite of the rigid control of their armed forces, Franco and Salazar knew that -8- public opinion in their countries was, and always will be, overwhelmingly on the side of the democracies. To the deep- rooted democratic beliefs of the peoples of Portugal and

Spain, and not to their present regimes, is therefore due this modest contribution to the triumph of the Allies.

Since the very beginning of the Fascist regime, imposed on them in 1926 by a small but well-organized oli- garchy, the Portuguese people have never ceased to fight for

the overthrow of their oppressors. Today the -Portuguese people, completely united behind the Council of National

Anti-Fascist Unity (whose principal aim is to destroy fascism in Portugal) are more than ever ready to contribute to the hig

ideals for which this war has been fought. The Portuguese people earnestly wish that their voice be heard by the powers who are working to build a new and better world. And their appeal is a simple one:, that conditions be created which will permit them freely to choose their own destiny, work out their own liberation, rid them-

selves of their oppressors and build a true and lasting demo-

cracy. They make a further appeal: that diplomatic relations be severed with Salazar's government.

It is not only for the sake of the Portuguese people, brutally oppressed and starved by a tyranny which has sacri- legiously been called Christian State, but in defense of the whole of mankind., that we plead against the repetition of a mistake that is still mowing lives and spreading ruin. The very instinct of self-preservation of all free peoples calls

for the immediate quarantine of every remaining totalitarian regime. To isolate such regimes as the dangerous threats

which they constitute to the social health of mankind, is to

protect the structure of world peace from deadly termiteswhich can bring about its ruin.

Thomas Jefferson said that "~no man has the natural right to suppress the rights of another."t Today we --inow, onlyl -9- too well,, that whoever dares to transgress upon this essential principle, does indeed transgress upon the whole of humanity. We owe it to the millions dead and wounded in this war, to erase such political gangsterism from the face of the globe. Now is the time to complete a job well done, and win the peace for which millions fought so bravely and suffered so much. This is our hope an-d our prayer. God help you to see the light and courageously to face the responsibil- ities which fate has placed upon your shoulders.

R~espectfully,

0.6.0 S.,0 M.ýD., Former Minister of Education in the Portuguese Constitutional 4-overnment Mume 11, 1.946.

My dear Mrs Cheer: I aoknowledgo the reeipt of the recent radio-~ gram, sic~ncd by you and by Meossraw Azoat and Zueiaria, regsardin:ý Syria and Lobanmon, You are Off course aware th~at the Purpose Of the San rranclsee Conferoene Is to formulate the bes~t possible chartar for an international organization to maintain pelace and secinity for all peo.ple of the world, regrý az'dI assc rac~e, color, reltgioxn, or sex* It is davottrtv ite, energies tand Its labors exc-Lusively to this tcsko, ard 1t is 'not Intended thnat the. matter ,you mention will11 'be the aiubject off action here., Please make th"S oxpre~silon available to the ,other signers or you "alocam Sinceorel'y yours, X'or the Secretary Conecl:I

B3RYANT MUMF.ORD Bry,,an)t %=frior4 Acting Information Offileer

W* Ashed Ohoor# Cordoba,' Argentina.

IS:I OO6VA TOEGT' (TRANSLATION) hv BADIOGRAM

Cordoba,Ai-rgentina, May 18, 1945

Th~ePresident of thý, onference of thve1lied Nations

San Francisco

Representing the most outstanding members (of the) Syrian- Lebanese (colony),. we apý-eael (to you), declaring tai ±-e~ring to your noble -purposes that the blood of millions of human beings shall not have been shed in vain for (the sake of) strengthening justice, the law of nations and freedom of all peoples in accordance with the Aýtlantic Charter and the -purposes of the late President Roosevelt, we beg you to intervene so that the independence of our countties will b~e respected such as it was recognized and guaranteed by the Allied Nationo.

Ashed Chocr., Jose Guraib Assaf, Maluf Husain Zucaria

(Transl. by H. C. Hill) (Rev, by J. V. McCall) I,

(TVANSlATION) RADIOGRAM

Qordoba, Argentina, May 18, 194+5

Conference ot. the Allied Nations Fairmont floteiý San ?ranoif~oo Representing the most outstanding aembers (of the) Syrian-~ Lebanese (colony), we appeal (to you), declaring that in ad, hering to your noble purposes that the blood of millions of' human beings shall not have been shed in vain for (the sake of) strengthening justice, the law of nations and freedom of all peoples in accordance with the Atlantic Charter and the purposes 'of the late President Roosevelt,. we beg you to intervene so that the independence of our countties will be respected such as it was recognised and guaranteed by the Allied Nations, Ashed OhooJs Guraib Assaf, Maluf fusain Zucaria.

(Trawel, by HI C, Tall) (Rev, -by 3, V.; McCall) G7 CORDOBAARGENTI NA VIA RCA 78 28 2035 P1/50 ____STANDARD TIME LC PRESIDENTE CONFERENCIA NACIONES ALIADAS 7aC (FAIRMONT HOTEL) SANFRANCISCO-

EN REPRESENTACION MAS DESTACADOS MIEMBROS SIRIOL IBANESES

ACUIDIM03 EXPONIENDO QUE AL ADH-ERIRNOS VUESTROS NOBLES PROP0S1TOS PORQUE LA SANGRE DE MILLONES SERES f4ERMANOS NO SEA DERRAMADA VANAMENTE POR AFIANZAMIENTO JUSTICIA DERECH03O DE GENTES LII3ERTAD

TODAOS LOS PUEBLOS CONFORME CARTA ATLANTICO Y PROPOSITOS EXTINTO

GRAN PRESIDENTE ROOSEVELT.

at the office of To secure prompt action on inquiries, this original RADIOGRAM should be presented the place of origin. Telephone: Garfield 4200 R. C.A. CQMMNTNICATIQNS. Inc. In telephone inquiries quote the number preceding ,Form 112EW-M-IM 27 G7 LC PRES IDENTE P2/28 =f, SAN FRANCISCO 8, CAL., AT------STANDARD TIME

- 7147 RCA ROGAMOS VtJESTRA INT RVENCION PARA QIJE LA INDEPENDENCIA NUESTRAS PATRIAS SEA RESPETADA TAL COMO FUE RECONOC IDA Y GARANTIZADA POR NACIONES ALIADAS=

ýASHED CHOCR JOSE GIJRAIB ASSAF MALIJF HUSAIN ZLICARIA

Telephone: Gairfield 4200 To secure prompt action on inquiries, this original RADIOGRAM should be presented -at the office of Form 1128U'-M-2ID 2R. C. A. COMMUNICATIONS, Inc. In telephone inquiries quote the number preceding the place of origin. Jxne 2, 1945.

MY dear Mr.* Clinchy: Ur. Stettinius has referred to me for reply your letter of May 25, 1045p concerning the pro-. posal for the creation off a Commission on Human Rights. Your courtesy in letting us know of the attitude of the National Conference of Christians and Jews in support of this proposal is greatly appreotatod, The puarpose of' this Confere-nce Is to formulate the best possible charter for an international organ- ioation to maintain paace and security for all people of the world regardless of race, color,, religion or *mIt Is appireciated t-hat thre question of security Involves all oeople everywhere irrespective off such dit'terontiatflnu. The ConII'rence Is devoting Its energies and Ito labors exclusively to the single problem off sot tins %tp such an organization* The G~eneral Assembly and the Econiomic and Social Counci in the proposed International. Organization would have as one of their pz'inoipal purpcises the promotion of re-spect for humani rights and fundamental freedoms of people throughout the world. $inoerely yours# F~or the Secretary General:

T?. T1. Meorosky Information Officer

Mr. Sverett R. Clinchy$, The National Conferenos of' Christians and Jews, Inc** $81 Fourth Avenaue, Now York 180, New York. IS :IOCU':BIýTTNER:*SGP C

14 ///,' 5' THE NATIONAL CONFERENCE OF CHRISTIANS & JEWS, INC. FOUNDED IN 2928 For Jxstice, Amity, Understanding and Co-operation among Protestants, Catholics and Jews

381 FOURTH AVENUR. NEW YORK 16, N. Y. 4/]h IX

May 25.,1945

The Honorable Edward Rh. Stettinius United States Delegation United Nations Conference on International Organization San Francisco., Calife Dear Mr. Stettinius-. The San Francisco Conference has had so many consultants., delegates, visitors., etc*., that we of the National Conference of Christians and Jews felt that it would only add to your burdens if we appeared personally. I have no knowledge that there can be any need, benefit or occasion for us to appear before you or before any sub-committee to support the proposal for the creation of Commission on Human R' hits. If, however, you should fe-el that it would be1el-f =Toyou, I should be happy to appear before you either personally or through a special representative or representatives of our organization. Dr. fl~yss S. Mitchell of our San Francisco office will be available to appear before any hearing. Sincerely yours,

ERO:-LC Everett R. Clinchy

N&Woina Co-Chaffmen AiLTHUu H. CompToN - CARLTON J. H. HAYES - RoGim WILLXAMS STRAUS - Prefidetd EVEMEMR. CUN~cHY - Trearure HmERBT J. OsaonRB

18 1 'V

June 2, 1945o

I have been reques ted to acknowledge the receipt of the communication which you addres sed to the Chairman of -the 'United N~ations Conference on behalf of the Inter- american Federation of Societies of Authors and Composers. Yon are of course aware that the purpose of the San -Francioco Conference in to formulate the beat possible charter for an International organization to maintain jpeace and security tor all people of the world regardless Of race, c~olor, religion,# or sex. It will devote its energies and its labors exclusively to this task, and it is not intended that -the problem you mention will, be the wtxbjeot at action here. I fool confident you will understand the desirability of adhering to this policy in the interest of early agreo- ýmont'on the text of the charter. Sincerely yours* For' the Secretary General:

~.T. T. MoCrosky Information Officer

:Dr, Natalio Chadiak, Fedoracion Interamericana do Sociedades do Autorea y Cowpositores,* calls Cuba $$S, Hlabana* Republica do Cuba.

IxS 1ioct 1 H THE UNITED NATIONS CONFERENCE

ON INTERNATIONAL ORGANIZATION

47-7 MEBMORANDUMV

May 14, 1945

To: Mr. Coville~

From: John C. Dreier

A representative of the Cuban Delegation brought the attached document from the FISAC to our offVice this afternoon saying that the Cuban Delegation merely wished to turn this over to the proper of'ficials of~ the Conf~erence f~or appropriate action under the rules of~ the Steer- Ing Committee. The document does not have any of~ficial status, and the Cuban Delegation' does not wish to make additional copies available for distribution* I believe this document can therefore be handled in whatever way you see fit*

* Attachment M1EMORANDUM

May 14# 1945

Too Yro, C-oville

From:s John C. Dreier:

'Arepresentative of the Cuban Delegation brought * thegattached docu~ment from the'FISAC to our office this afternoon saying that the Cuban Delegation merely wished to turn this over to the proper offitotals of the Conifer- once for appropriate action under the rules of the Steer- Ing Committee. The document does not have any official statusj, and the Cuban Dele~gation does not wish to make additional copies available for distribution* I believe this document can therefore be handled in whatever way You $ee, fto

1* - :' Attachment FEDERACION INTERAMERICANA DE SOC IEIDADES DE AuToRES Y COMPOSITORES

TELEFONO-M-9153. #ATALiO CI-EDIAIK CABLE:FISAG SReoreARio GENERAL

CALLE CUBA 355(EDIFICIO ARIOSA 52 PISO) HABANAREPUBLICA DE CUBA

The Honorable Chairman, The United. Nations Conference on International Organization., San. Francisco, California. Honorable sir:- The ttFederacion Interamericana dec Sociedades dec Autores y Compositores" (F.I.S.A.C.) wh~ch represents to societies which

protect the ria. ~ ~~ 1workers of this Hemispere. is convinced that in the present reorganization of the World by Peace, the fate of intellectual workers should not go down in history again, entirely disregarded. F.I.S.A.C., is pleased to transmit, through your worthy me-

dium, to all the distinguished Delegates to that Conference - as it does to all lovers of human welfare- its ferve~nt hope that its work will achieve the results that are being sought, and, at the same time feels that it is its duty to submit to the consideration of' the Conference a picture of the very deplorable present situation of the lAr&e majryof the intpllletqal okso

the world, specially in the Am~ian Continent. It should be emphasized that said workers are far from having that desired freedom which will protect them from want and fear., and that they lack at the present time an adequate organism within the world organiza.tion which will look after their moral and material interests as its specific task. The International Labor Office created by the Versailles Treaty has looked after the manual worker and has done very good work in the development and protection of its legitimate interests. We recognize the contribution'that is being given by Intel- lectual Cooperation in bringing closer together the cultural bonds between the nations of the world. However, all those efforts lose a decisive portion of their meaning and efficacy for humanity in IFEDERACION INTERAMERICANA DE SOCIEDADES D)E AuroREs Y COMPosiroRES

TELEFONO. M-9153 NATALio CHEMI1Al

CABLE:FtSAC SECBETA010 G~I.JEItAL

CALLE CUBA 355(EDIflC10 ARIOSA 52 PISO) HABANAREPUBLICA DE CUBA -2- a practical sense, unless at the same time an indispensable protection is granted to the creators of works of the spirit, the high exponents of culture. A way has already been fixed for achieving such an essential objective: The Inter American Academy of Comparative and International Law at its first meeting in Havana (,1945) accepted and the First Congress of the "Federacio'n Interamericana de Sociedades de Auto- res y Compositores" (F.I.s.A.C.) adopted the following resolutions: "121. To include in the Treaty of Peace or in one of its annexes a Magna Carta of the intellectual worker, assuring him a minimum of rights and punishing intellectual despoilation, thus creating peace in intellectual spheres which will greatly facilitate the preparation of the world international convention and the formulation of a uniform law. "p22. To set up a Committee of Experts within the World Organization which shall connect the existing organizations and those that may be created in the continental sphere of rights of authors, to coordinate the efforts of these organizations to the following end: a) To provide an international intellectual law which shall be more unified in the countries of each Continent, and b) To prepar .econtinental and world conferences with the purpose o1f adjusting existing conventions of protection of the rights of authors. "123. To create an International Court to handle conflicts that may arise within the conventions of rights of authors, the decisions of which shall be binding on all parties. "124. In the sphere of the private cooperative orgauniza- tion of associations of authors, there should subsist, under existing conditions, a dualism of the Continents; in Europe, the World Confederation of Societies of Authors and Composers of Paris, and in America, the Federacio'n Interaff~ricana de Sociedades de Autores y C6mposit~bres (FISAC), in Habana, with the purpose that both entities shall endeavor to extend aidd further perfect the effective protection of the rights of authors. Both should cooperate with the Committee of Experts to be set up by the new organization with the purpose of unifying methods and procedures for the protection of the rights of authors throughout the world." FEDERACION INTERAMERICANA DE SOCIEDADES DEAuTORES Y COMPOSITORES

TELEFO NO.M-9153 NATAL1O Ci4EIA CABL .E:FISAC r UapmTARIo 3MNflAL

CLECUBA 358(EEDIFlCIO ARIOSA So PISO) HABANAREPU BLICA DE CUBA -3-

"Federacio'n Interamericana de Sociedades de Autores y Corn- positores" submits these resolutions to the consideration of the United Nations Conference on International Organization of San Francisco, requesting that said basic ideas for the protection of the intellectual worker be included among the resolutions regarding the Organization of the Peace, in order that this worker will not be the last and forgotten son of hum~anity once again. Yours very respectfully,

D 10C ak eneral Secretary. F INA LACA C T

I of

The First Continental Congress

Federacion Interamericana de Sociedades de Autores y Compositores

(Inter American Federation of Societies of Authors and Composers)

F. 1. S. A. C.

HABANA, JANUARY 20, 1945 F INA L AC T

The First Continental Congress

Fedeiaci6n Interamericana de Sociedades de Aniores y Conipositores

(Inter American Federation of Societies of Authors and Composers)

F. 1. S. A. C.

HABANA, JANUARY 20, 1945 FINAL ACT

First Continental Congress of FISAC, held in the City of Habana, Senate of the Republ 'ic (National Capitol), on January 16 to 20, 1945, with the attendance of the following member societies:

ARGENTINA: Asociaci6n General dle Autores de la Argentina (ARGENTORES). Dr. Vicente Maortinez Cuitiho Dr. Hugo M6ximo Funes, (Legal Adviser),

Sociedlad Argentina dle Escritores (SADE), Dr. Leopoldo Hurtado.

BRAZIL: Soceidad Brasileira dle Autores Teatrais, (SBAT), Dr. Geysa B6scofi.

CANADA: Canadian Performing Rights Society, Mr. John G. Payne.

COLOMBIA. Asociaci6n Colombiana dle Autores y Compositores.. Dr. Camilo de Brigard Silva.

CUBA: Corporaci6n Nacional dle Autores (CNA), Dr. Luis A. Bircilt, Dr. Jorge Mco~ach, Capt. Luis Casas Romero, Sr. F6Iix B. Caignet, TECHNICAL ADVISERS: Mr. Tomds Hern6ndez Morales, Dr. Estebcan Valderrama, Dr. Fernando Vitlaverde, Sr. Jos6 Luis Vidaurreta, Sr. Florentino Gelcibert, Dr. Herbert Darn, Dr. E~rnesto Dihigo, Dr. Alberta Blanco, Dr. Juan Clemente Zamora. Dr. Antonio lroizoz, Dr. Enrique Dolz, Sr. Jos6 Conan glo Fontanilles.

ESTADOS UNIDOS DE AMERICA: American Society of Composers, Authors and Publishers (ASCAP). Mr. John G. Paine, Mr. Herman Finkelstein, (Legal Adviser).

HONDURAS: Sociedlad Hondureiia de Autores, Dr. Ernesto Alvarado Garcia, Dr. N6stor Berm6dez. MEXICO: Sindicato Mexicano de Autores, Campositores y Editores dle M6sico (SMACEM). Sr. -Alfonso Esparza Oteo, Sr. Armando Roasles, Dr. Germ6n Fern6ndez del Castillo, (Legal Adviser).

PANAMA: Asociaci6n de Autares de Panam6, Dr. Antonio lraizoz. PERU: Asociaci6n Nacional de Escritares y Artistas de Lima, Dr. Emilio NWi'ez Portuondo, Dr. Roberto Netto. URUGUAY: Asociaci6n General de Autores del Uruguay (AGADU], Dr. Ovidio Fern6ndez Rios, Sr. Emilio Acevedo, Dr. Eduordo Couture, (Legal Adviser).

4 VENEZUELA: Asociaci6n dle Escritores Venezolanos (AEV), Sr. Oscar Rojas Jim 6nez, Sr: Vicente Gerbasi, Dr. Pedro Rivera.

PUBLISHERS' BUREAU SECTION:

Argentina C6mara Argentina del Libro, Sr. Ricardo Veloso, (Representative).

Cuba C6mara Cubana del Libro, Dr. Rafael P6rez Lobo,

United States of America Book Publishers' Bureau, Mr. James S. Thompson.

M6xico C6mara Mexicana del Libro, Praf. Gonzalo B6ez Camargo.

In its plenary sessions and closing session the following RESOLUTIONS (Resolutions, Recommendations and Declarations) were approved, to wit:

A) RESOLUTIONS:

COMMITTEE 1.-"STATUTES AND ORGANIZATION". The Congress resolves: !.-To admit the fallowing sacieties as members of this Federation: Sociedlad Argentina de Escritores (SADE). Canadian Performing Rights Society, Ltd. (CPRS), Sindicato Mexicano dle Autares, Compositores y Editores dle MWsica, (SMACEM), American Society of Composers, Authars and Publishers (ASCAP), Sociedlad Hondure~a de Autores, Sociedlad Colombiana dle Autores y Compositores, Asociaci6n Nacional dle Escritores y Arfistas de Limo, Sociedoad dle Autores de Panam6.

5 2.-To refuse all other requests 'for admission.

3.-To approve the proposed amendments of the Statutes. In accord with said amendments the portions hereinafter mentioned will read-as follows:

Article I, letter C: "The Federation will be forbidden to.

I.-Impair the autonomy of the member societies regarding internal organization.

2.-Impose upon any society the payment of a sum in excess of its quota without the consent of such society.

3.-Interfere in religious or political questions."

Articles IIl, letter D: Member societies infringing the rules of the statutes or regulations or committing any offense against the principles of inter-federal solidarity will be brought before the Congress by the Executive Committee so that the former may impose the proper penalties. The penalties will consist of reprimand, warning or expulsion. The federated societies which either resign from membership or are expel- led shall lose all rights acquired from these statutes or from the regulations."

Article V, letter G: "Organizing expenses".

The cost of the lease of the headquarters and the office expenses of each Congress shall be borne by the member society or societies domiciled in the country in which it meets, and the expenses of the lodging and attention of the Delegates shall be borne by such society or societies only under the terms and conditions agreed upon by said society or societies. However, except in cases when the interested parties waive the privilege all these expenses shall be defrayed from the amount which the General Secretary may fix after having consulted the entities attending the Congress. The amount of this payment shall be distributed among the participating entities in proportion to the respective figures of the collection of rights made by them in the previous year. The resulting partial quotas will be paid by each attending society before the inauguration of the Congress, to its Treasurer-"

6 Article V1, letter C: "Powers of the Executive Committee".

The President will hove sufficient power to carry out fully his high function. The Committee shall:

1.-Represent the Federation before the competent State authorities and international bodies and organizations.

2.-Ac? as amicable mediators in arguments arising among the federated societies, relative to questions of collective interest concerning the protection, collection and distribution of authors rights.

3.-Set up, as circumstances may permit, sections in which shall be grouped the respective branches or classes of authors' rights in the order of their collection.

4.-Decide about urgent problems giving an account thereof to the next Congress, and

5.-Carry out the remaining functions given it by these statutes and their regulations."

Article IX, letter A. "Expenses and contributions". The annual membership fee of each member society will be fixed in consideration of the rights collected by them during the previous year. The General Secretary with the approval of the Executive Committee is authorized to fix the maximum and minimum fees. The maximum fee shall be fixed pursuant to an agreement with the respective society and may not be changed without its consent. Said annual fee willI be used to meet the ordinary expenses of the Fedlera- tion, the fixing of the amount and distribution of extraordinary expenses being subject to the prior approval of the contributing societies."

Article X11, letter A. "Modification of the Statutes".

To modify the present Statutes it will be necessary:

1.-That the request be signed by at least 25% of the member societies.

2-That the modification be approved by at least 2/3 of the votes in Congress.

7 3.-That should the modification impose a new financial obligation upon any member society or affect contracts entered into between the member societies, the approval of the societies so affected is required. Proposals for modifications shall not appear on the Agenda of the Congress if they have not been received at the General Secretariat two months prior to the date of the Congress".

4.-To aprove the internal regulations of the Federation which were submitted to Committee 1, in the manner that they were drafted by the General Secretariat.

COMMITTEE IL "DEVELOPMENT OF THE RIGHTS OF AUTHORS AND INTERAMERICAN COOPERATION"

5.-To support enthusiastically the interesting and ably drafted project of convention on the protection of literary, scientific and artistic property (copyright) prepared by the Pan American Union in accordalice with Resolution YXXIX of the Eighth International American Conference, with the request that when the final instrument is drafted there be taken into consideration the conclusions reached and the amendments proposed by the Juridical Sub Committee of the First Congress of FISAC in discussing said project. For this purpose the Secretary General of FISAC is asked to send a copy of the minutes of the Congress to the Pan American Union.

6.-To recommend that of the three methods stipulated in the above mentioned Resolution for the study of the project of convention drafted by the Pan American Union and to reach, on the basis thereof, the drafting of a new instrument which will take the place of and improve existing conventions on copyright protection, that wich provides for calling a special conference of experts be adopted.

7.-Likewise to support the project of a uniform copyright law drafted in accordance with a resolution adopted at the Third Conference of the Inter American Bar Association and to ask the Secretary General of FISAC to transmit it for the consideration of the member societies and of the copyright registry offices of the different countries in order that the opinions of saidI societies and offices be taken into consideration when said project is submitted to the Fourth Conference of that Association,

8.-That FISAC proceed, as soon as possible, to the organization of societies of authors and composers (collectors of rightsl in all those American

.8 countries where they do not exist, ond that the member societies should assist it in this endeovor.

9.--That inasmuch as the Center of Information, documentation and control, is an organization annexed to the General Secretariat of FISAC, from which it is inseparable, all methods ore subject to the final organization that the General Secretariat may give to the same.

10.-That member societies take steps near their respective Governments for the revision of laws relative to the public domain in order to have them amended in the sense that the works that have fallen into the public domain shall not continue to be exempt from the paym ent of author's rights. (Reserva- tion made by the Argentine Delegation).

11.-To grant a vote of confidence to the Executive Committee and to the General Secretary to take the necessary steps leading to a close cooperation with the International Center of Intellectual Cooperation and the Inter American Academy of Comparative Law, as well as with the Argentine Institute of Legislative Studies (Division of Intellectual and Industrial Property) and the Argentine Institute of Intellectual Law.

12.-To. seek the support of the Inter American Academy of Comparative and International Law and other similar institutions for the purpose of studying different laws and projects in existence oil the rights of authors, and for the preparation of a draft Uniform Law.

Publisher's Bureau Section

13.-To establish within FISAC as an integral part thereof the PUBLISHERS' BUREAU SECTION made up of the Publishers' Bureaus of the Continent. That at the outset said Section of FISAC be made up by the Bureaus that are represented in this Congress: Argentina, Cuba, United States and Mexico.

14.-The Publisers' Bureau Section shall have the following purposes: a) To coordinate the interests of authors and publishers, and to cooperate with authors in defense of their rights. b] To combine the efforts of the member Bureaus for the purpose of increasing production and increase the market for books. c) To conciliate the national interests represented by the membei Bureaus in an adequate manner. d) To organize the efforts made in the Continent to prevent arid repress clandestine publications.

9 e) To promote the conclusion of agreements regarding mutual assistance between member bureaus through special forms of agreements and other means. f) To give all possible support to the creation of Publishers' Bureau s in countries where they do not yet exist, in the manner approved by the Third Conference of the Inter American Bar Association held in Mexico in 1944. g) To establish adequate principles for the treatment of book production, their sole and importation, specially in connnection with Customs, fiscal and administrative matters, as well as to assist the the Publishers' Bureaus in the presentation of such principles to the proper authorities or institutions. h) To initiate and stimulate international cooperation among publish.. ers and book dealers of several countries with different purposes in view; for instance, to publish and distribute books jointly, to seek the greatest reduction possib~le in the sales prices to the public in the common interest of authors and publishers in order to increase the market as well as :to obtain absolute respect on the part of the dealers for the prices shown in catalogues.

15.-To consider the possibility of creating a central register of copyrights, independent of the national registers, in order to register therein all works that are published in America and thus guarantee copyright protection throughout the Continent.

16.-To carry out studies and plans for the creation of a Latin-American Edition Bank.

17.-To take the proper steps near each Government for the purpose of obtaining the possibility of a contribution of one thousand dollars from each, in proportion to a given number of inhabitants to be agreed upon, for the creation of an annual prize for the best original unpublished work each year in any Latin-American country.

COMMITTEE Ill. PUBLICATIONS; FISAC AND THE POST WAR

18.-To create in FISAC and in the member societies American bibliographic sections to act as agencies for the diffusion of the literary, artistic and scientific production of the Continent. These sections shall have charge of the interchange of works amoung the member societies. For this purpose they will receive the works entrusted to them by the members to be sent to the federated societies wich shall have charge of their transmittal. The reciving society, in reciprocity, will in turn endeavor to send an equal number of works.

*10 The bibliographic sections will also send to the affiliated societies thr' books that these may request, at the expense of their members. The General Secretarial of FISAC shall regulate the procedure to be followed in the case of these requests, shipments and payment for shipments. The member societies oblige themselves to advise the cultural entities and organizations of their respective countries of the existence of this SECTION OF EXCHANGE OF PUBLICATIONS AND BIBLIOGRAPHIC INTERCHANGE, and to promote the obtaining of works for this purpose.

19.-To create at the headquarters of FISAC in Habana, a General Register of Authors, Composers and Publishers belonging to entities affiliated there to. In the organization of this Register each federated society shall send as soon as possible to the General Secretariat of FISAC a copy of their membership lists showing the names, addresses, title of the works and their nature, of every author. From time to time the societies shall advise the Register of the changes made in their resective lists. The Register shall be at the disposition of the member societies that request any data in connection therewith. The General Secretariat shall regulate the operation of the Register.

20.-To publish a magazine to be known as "F. 1.S. A. C." and as its sub- title: "Revista Interamericana de los Derechos dle Autor". This magazine will publish general information regarding the activities oi FISAC, comments on judicial decisions, legislative projects on rights of authors, bri-ef descriptions of cases of international piracy of works, lists of protected works sent by the different member societies., bibliographical comments on the most important works sent by affiliated writers to member societies, articles on general matters relative to the rights of authors and with regard to television and the new methods of literary and artistic reproduction, projects of legislation on the subject that may be submitted to the legislatures of the different countries, reports on member societies, folk lore essays, etc. This publicationi shall be published in Habana once every three months and its cost shall be met adequately in the manner to be determined by the Executive Committee or the Internal Regulations of the Federation. Affiliated societies are requested to altemp~t to obtain advertisements from publishing houses o:r from persons who desire to advertise their works with the purpose of contributing to the cost of the magazine. The magazine shall be published in Spanish, but articles may be inserted therein in English, Portuguese or French, when the editors deem it proper. This organ of publicity shall be distributed gratis to the member societies. An endeavor will be made to hav'e the FISAC magazine follow the same format of the magazine entitled 'Droits D'Auteurs".

11 Member societies are obliged to register the magazine in the Copyrighý Registers of their respective countries.

21.--To include in the Treaty of Peace or in one of its annexes a Magna Carta of the intellectual worker, assuring him a minimum of rights and punishing intellectual dlespoilation, thus creating peace in intellectual spheres wich will greatly facilitate the preparation of the world international convention and the formulation of a uniform law.

22.--To set up a committee of experts within the World Organization which shall connect the existing organizations and those that may be created in the continental sphere of rights of authors, to coordinate the efforts of these organizations to the following end:

a) To provide an international intellectual law which shall be more unified in the countries of each Continent, and

h) To prepare continental and world conferences with the purpose of adjusting existing conventions of protection of the rights of authors.

23.-To create an International Court to handle conflicts that may arise within the conventions of rights of authors, the decisions of which shall be binding on all parties.

24.-In the sphere of the private cooperative organization of associations of authors, there should subsist, under existing conditions, a dualism of the Continents; in Europe, the World Confederations of Societies of Authors and Composers of Paris, and in America, the Inter American Federation of Societies of Authors and Composers (FISAC), in Habana, with the purpose that both entities shall endeavor to extend and further perfect the effective protection of the rights of authors. Both shauld cooperate with the committes of experts to be set up by the new organization with the purpose of unifying methods and procedures for the protection of the rights of authors throughout the world. Resolutions 21 to 24 literally reproduce the conclusions adopted by the Round Table of the Inter American Academy of Comparative and International in connection with the subject "The rights of authors in America within the new world organization". (Paper of the General Secretary).

OTHER RESOLUTIONS

25.-That societies or organizations which collect rights of authors which are of a commercial type or character may not be members of FISAC.

12 26.-That in view of the many merits of the General Secretary, Dr. Natalio Chediak, and ais lust recognition of the work done by him since the birth of the Federation that has culminated in the organization, preparation and realization of this First Congress, to appoint him Permanent General Secretary.

27.-To delegate in the Executive Committee of FISAC the power to desig- nate the seat of the next Congress, as well as the date on which it shall be held, after a prior consultation with the member societies.

28.-That in view of the great interest shown by Cuba in all cultural movements which have well entitled it to the name of the American The Hague, i.t looks upon the Cuban Government as the depositary of the aspirations of this Congress, and requests that the General Secretariat seek from the other Governments of the countries of this hemisphere official support for their respective societies of authors and composers for the better fulfilment of the resolutions of this Congress.

29.-That with absolute respect for the internal independence of the authors and composers of every country, the Executive Committee and the General Secretary of FISAC make use of whatever means they consider proper to see that in each line or branch of the rights of authors there shall exist ryo! * more than one society. That preference be given in the admission thereto to those societies that have obtained juridical personality or the official recognition of their re- * spective governments. Should two or more societies be in these conditions, * ~the Federal Congress shall decide as to which one shall be admitted afte. hearing the Executive Committee which, in order to do so, shall examine the reports of the General Secretary ýand those that may be furnished by the other * member societies.

B) RE COMMENDATIONS

The Congress recommends:

30.-That in principle it is desired that no member society may manage the repertories of similar entities of America that are not members of the Federation. In exceptional cases the use of agents or intermediarios shall be allowed in those coUntries in which there are no societies members of the Federation, and only while that situation subsists.

13 C) DECLARATIONS

31 -To express an appreciation to the Cuban Government, and specially to its President and Vice President, Doctors Raomn Grau San Martin and Ra6l de C6rdenas, as well as to the Ministers of State and of Treasury, Doctors Gus- tavo Cuerbo Rubio and Manuel Fern6ndez Supervielle, for the generous support given by having subsidized the First Congress of FISAC.

32.-To enthusiatically adhere to the great idea of the anti-tuberculosi,- campaign. The Congress would be pleased to see that the member societies collectors of rights, encourage aind facilitate their repertories for all acts thai may be held in America in behalf of this humanitarian task, and that furthermore eacn one of the societies contribute materially with a fixed percentage of the revenue obtained during the twelve months following the holding of the Congress.

33.-To enter on the record its congratulations to Senator Emilio N~fiez Portuondo for his valued and enthusiastic intervention in the ratification on the part of the Republic of Cuba, of the Convention on the Protection of Literary, Scientific and Artistic Property orf Buenos Aires (1910) and to express to him its desire that he give his authorized attention to this matter so that the ratification by the Senate may occur as soon as posible.

34.-THE FIRST CONGRESS OF THE INTER AMERICAN FEDERATION OF SOCIETIES OF AUTHORS AND COMPOSERS (FISAC], in bringing its work to a close enters on the record its sincere appreciation to the President and Vice President of Cuba, to the Ministers of State and of the Treasury, to the President of the Senate of Cuba, to the Governor and Mayor of Habana, to the Corpo- raci6n Nacional de Autores (CNA), to the Inter American Academy of Com- parative and International Law for the many attentions conferred upon the delegates which attended the same, as well as to the press of the city and to the Secretariat of the Congress for its valued cooperation in the work that has been done. In witness whereof, this act is entered, in the City of Habana, on this twentieth day of the month of January, one thousand nine hundred and forty-five.

Dr. Vicente Martinez Cuitifio, Dr. Notalio Chediok, President. General Secretary.

(Signatures follow)

S14 ANNEX TO THE FINAL ACT

The following clarification is made with regard to the full texts of some resolutions and recommendations adopted by the Congress which were not in the hands of the General Secretariat at the time the Final Act was drafted:

COMMITTEE I.-STATUTES AND ORGANIZATION

To approve the proposed modifications to the statutes as follows: Article /ill, letter B shall read as follows:

"Admission to the Federation shall be governed by the following rules:

1.-Not rrore than one society for each kind of rights of authors to be collected therein shall be admitted for each country.

2,-Preference for admission shall be given to those societies that have obtained juridical personality or been officially recognized by their respective governments. Should two or more societies be in these conditions, the Federal Congress shall decide an which shall be admitted after hearing the report of the Executive Committee, which in rendering the same shall have before it the reports of the General Secretary and those that may be furnished by member societies.

3.-Societies or organizations collectors of rights that are of a commercial nature may not be members of the Federation. Requests for admission should be addressed to the General Se- cretary and shall be decided upon by the Executive Committee which shall admit or reject the same submitting its decision to a final resolution of the Congress,

B) RECOMMENDATIONS

The recommendation appearing under No. 30 in the Final Act shall read as follows:

"INTERFEDERAL SOLIDARITY".-ln principle it is desired that in order to assure their solidarity the member societies shall take the following rules into consideration:

1.-Not to manage the repertories of other similar American entities that are not members of the Federation. In exceptional cases the

.15 use of private agents or intermediaries shall be permitted in those countries in which there do not exist societies members of the Federation, and only while this situation subsists. 2.-In the event that the entity which is called upon to manage the repertories does not offer sufficient guarantees, the member societies will not be obliged to centredl with them and shall bring thie matter to tihe attention of the Generol Secretary, with proper proof, and for the purose of awaiting thie final decision of the Executive Committee''.

The General Secretary is expressly authorized to adapt the final text of the By-laws to the resolutions approved by the Congress and to proceed to protocolize the pertinent certificate before a Notary Public of this City and to take all the steps necessary for its recordation in the Registry of Associations of the Provincial Government. In witness whereof, this supplement to the Final Act is entered, in the City of Havana, on this twenty-fourth day of the month of January, 1945.

Ovidio Fern6ndez Rios, Ermilio Acevedo, Leopoldo Hurtodo, Comilo de Brigard Silva, Luis A. lBoralt, Emilo Wi~iez Portuondo, Ernesto Alvarado Garcica, Antonio lroizoz.

16 -1 945- CULTURAL, S.A. HMA 8 A' N A ..... flj 'Si 41A 9

?ydear Mrs, Clark,: Your recent sugges~tionls,, submitted in connec. tion with the work of the U7nited N~ations Conference

on Iinternational Organization, have been received and X wish to nxpress to you my appreciation for your courtesy in bringing your views to the attean- tion Of the Conference. Sincerely your$, Forhe Soretry eneral:

T# T, Mo~rosky Information Officer

Mre.: Edith Clark,

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One World Without One Church ?' 2 2

ýby Jamres D. -Bales

G EOGRAPHICALLY SPEAKING the world has be- '1come one. No point on the globe is more than sixty hours from you by plane. Men recognize that a world which is divided in ideals and aims is a warring world. Thus much effort is being expended in an effort to plan so that this will be one world and the sons of this generation will not have to slaughter one another on the battlefields as have their fathers. The popularity of the book entitled One World indicates that many are concerned with the problem of bringing some sort of unity between men. Regardless of how the world faces the question, the Christian must consider it from the standpoint of the Christian solution of those problems which divide men and keep the world from being one world. 'The -question is: Can we have one world -w-h out having one church whicwol make the world one? Can man ýbecomeone with man, without first becoming one with God Along as our primary allegiances differ, our actionis wllcoflct soerorlaer wt the actionis-oT others. What divides men so that they are antagonistic to one anothierT-

WE CANNOT HAVE ONE WDAD WITH A DIVIDED CHfRISTENDOM Denominationalism divides those who profess to be believ- * ers in Christ. Denominationalists do not want to become one in Christ and thus to abolish denominationalism. If * believers in Christ do not unite, and they have not, how can we expect unbelievers and peoples of other religions to unite? The divided state of believers. helps keep the world asunder. In ages past, carnal wars have been fough between different denominations, such as the Roman Catholics and the' Luherans In ages past, and they still approve

.9. the principles which made -it possible, the Inquisition was' used by the -RomanCatholic Church to stamp out, It pos- sibe with violence thjat wvhich Rome regarded as heresy. She would renew tiInuisition, if shýe h~a-d the -oppdrtu- 11t1n1pwe (1],1VEIiýeCtwi nccoet, VIQ:260-k I 703. Also- affiUREii the "I'nquTi~siin"). Today believers in Christ are killing one another. Roman Catholics in the United States killed Roman Catholics in Italy and are killing each other in the war with Germany. Lutherans from the United States bomb Lutherans in Germany. The-New Testament teaches that believers must be united in the on body which is th-e body -orchurch of Christ. Je-sus prayed for a unity on earth of His disciples-w-hich-the-w-o-rld could s-ee and beinfluenced by it (IJohn 17:20). Fu condemn-e-d-th~e ta-inte-st h~int of partism (I .1N.3)..or n- less believers have enough love for, loyalty to,4and respect for Jesus Christ to answer His prayer for unity, who will they have enough love for and respect for to answer their request for unity? If those who profess to accept and follow the same Savior do not become united how can those who reject and oppose that Savior become united with one another and with believers?

AWE CANNOT HAVE ONE WORLD WITHOUT ONE RELIGION The world, outside of the realm of Christendom, cannot be one within themselves, or with Christendom, as long as such leaders as Confucius, Buddha, Mohammed, and others divide men into different, conflicting religions. These divisions must be wiped out so that men will no longer be divided in their most fundamental attitudes, those attitudes toward God, man, and life which are shaped by one's religion. As long as there is any religion left which opposes the Christian faith men cannot be one. Because there is a great deal of evil and false doctrine in the world, Christ's teaching stirs up antagonism (Luke 12:51-53). This antagonism will continue as long as the cause, false doctrines and immoral lives, continue to exist. .1ie The. solution advanced by Christians is the one advanced by Christ. That is, the world-wide preaching, by word and deed, of the Gospel. Christians 'should be more intense in this effort than worldly kingdoms are to subdue others or to preserve their own national existence. This world evangelism endeavors to bring men to faith and into the one body, or church, of Christ. If believers in all religious bodies, in all denominations, were one in Christ, what a power they would be in overcoming false religions by converting men. from error to truth.. If members of the body of Christ display no more interest in world-evangelism than most of them have in our generation, how can you expect them to dedicate themselves to a worldly plan of unity? If they do not care any more about Jesus' will, which they say that they accept, how can they care about the will of man? The pitiful thing is, that some believers are more interested inI preserving worldly kingdoms than in the spread of the Kingdom off Christ. They are a hundredfold more willing to give their time, their talents, their money, and their lives for governments of this world than they are for the King- dom of Jesus Christ. This war has demonstrated this fact again and again. And yet, such folks sometimes have the audacity to call themselves the church of Christ, with a capital "the." Lord, are these thy children?

WE CANNOT HAVE ONE WORLD AS LONG AS RACIAL HATREDS EXIST Racial hatred and strife are very evident today. Even our own country has had race riots. There are some people who immediately become suspicious of a person if he is a person of another race. As long as these racial hatreds and misunderstandings exist, they thwart the possibility of the creation of one world. The Christian has the solution to this problem. He must teach and practice love for men of all races. Why? First, God created all men (Gen. 1; Acts 17:26). Second, God loves all (John 3:16). Third, Christ died for all. Fourth, the gospel is to be preached to all. Fifth, the chosen nation today is not one country or one .11. - - .. S S

StandingCoun ttee.

All flligonitahin ellowship, Caeof Office of"WrIfrain Nnoricann &~bss zs7,ý Chng1 ng Chns-*a

I acknowledgýe th-.e receipt, through the Office of 'War Thformati on., of the cordlal Massagge to the VUniTte-d Natione Conference sent In the ameo Of all memb~ers of' the All Chdina. ?oligiontost eflowship byý Feng Yu 1Esiang., ?et Chnng1117 "it% aI#n iTa in and Chon Won Yuan. "The goad wishes of your -organization are much aprooai ntc4d a nd 'rorr me,ioz g Iwa b ee reprouCed and d ist r Ibutieto to all nati2onal dellegations at t;he Sana

It is the intent of t he grovernments which are 'partiet,-pati~ng In this great uindertaking that the proposed WnIted Natios rgniion on should protect and pronmote t"he, welfa-re of all peace"I4oving peoples. The b.road f1vramework for thits purpos wmas outlined at rttwtbartpP Oaks,. The1- cooperat-ive sp-irit, whiLch makes it possileo to plan de-finitely and tiopetfuly today for an intern~ational organiz"ation to be agreed 'ApoZI by the paeWnetntons of tlhe rworld is mnost enco rgingS, It Ist no l0asipott that4U there should be a sustained will of wen asod nationsa to mate it work. Your coope-r- ation and Interest will healp to bringp_ about theý success

since'rely, yours,_ Aor' the Secretary Genral:1*

TTh

IS:*IOCJ:DRAYT.ON :%SGT kW &(-

K4~ý

) T4

CLz.

4o / May 24, 1945

Dr. George Kates 'Room 460 Veterans Building San Francisco, California Dear Dr,.Kates**

We are in receipt of the attached message.

It would be appreciated if you would be good enough

to transi thscmunication to the Chairman of the Uni~ted' Nations Conference, Thank you very much.

Sincerely yours,

Claude A. Buss Director San Francisco Office

Attachment 0

IhN UNITEDo STATES oF AMERICA

W OFFICE OF WAR INFORMATION V III SUTTER STREET ICTORT SAN FRANCISCO 4, CALIF.

The following message was received in San Francisco from OWI f Office in Chungking:

.4' "The followino- communication has been received and should be transmitted to the Chairman of the San Francisco Conference. ,~The orig-inal communication will be pouched to you."

"Er. Chairman and Honorable Delegates of Allied and Associated Nations.A/e~ýhe true purpose and welfare of the (garble) and everlasting peace of the world are the impelling cause of the Allied Victory. It is also the effect. This is also the main object of this Association. To maintain the fruits of victory and to lay the foundation for the welfare of peace all depend upon the concrete plans of this history making Conference. Dill members of the relig7ions of all China sincerely and faithfully extend their congratulations to the respective delegates. Wish you all enjoy good health to bring complete success for Sthe Conference. 'Signed by all the members of the V0) ýA A stanin-committee of the All China.ýlgoit Fellwsip: Feng Yu Hsiang, Pei Chulng Hsi7,_aul Yu Pihr Tai ,Hsu, Chen Wen Yuan and all the members of the Fellowship."

L__ _.A.0 May 286, 1945,

MydearWlti Gardstrella: Your two coimnunieations of Way 20o 1945, suabmitting 6-uggestionq In connection with th'e work of the United N~ations Conference on International Orgniztio, tvebeen received. Your- courtesy in bringing your viewsý to the at ten tion of the Oonferenoae is appreciated,

.For the Sec6retary General:,

T MROSK TI?T. W~Ci roY In-f rmstiton Officer

?4isaa Wineta 0ardsre11a., ieae Bonnie Brat Street, Houston 6v.Texas.,

V18 : I G 1~f'.TZ -S 1ý To Whom it May Concern. My vis'ion Morning Of Th%,Warless Wol May2094 Dedicated To World pe The International Outlawing Of Wars We the people beleleve in the Outlawing of wars in any and all nations, by establishing an international law court and a standing army of righteous men and women, in each nations group to enforce world. peace. .That is when a leader or leaders of nations of any nation, shall try to make war or go to war against any other nation or powers i~n the world, they shall immeditately be imprisoned, they and all thier followers Imprisoned not killed.,. But taught the methods of peace and to keep Gods Commandments, ( Thou Shalt Not Kill ). All leaders must sign on taking oath of office on a peace dotted line.G...... Tbhou Shalt Not Kill) This together with Birth Control for all nations . Will end Wars for all Time, and instead of writing long wordy epistles Into your Laws, Come to the Point be Brief in words that is easily understood by all men. No punishment in prison will be necessary , only reading and lectureing of my books or any good peace time books, with leaders on peace and some essential work for which they are fitted., To be paid for by the State 6 hours work a day or not more than 8 hours a day.

All history has proved that captial punishment is no deterrent to crime. becauae the bible teaches us to love our Enmies and because the bible teaches us we must not kill, We will now make it our laws of all nations and for all the nations of the earth, TO plan no revenge we shall then come unto the will of God, And there will be no more wars between nations we will th4ý)become a free and prosperous nation for all men and all women unto all the earth,

NOW BEFORE ALL MEN WE ASK GOD TO SEAL THESE LAWS WITH HIS

SEAL .TO BE UNLOOSED AND GIVEN TO ALL"BY OUR ALMIGHTY GOD THE FATHER AND JESUS CHRIST THE SON OF THE LIVING GOD" WE NOW GIVE THESE LAWS TO THE PEOPLE AND THE LEADERS OF ALL NATIONS. TO BE USED AND OUTSPREAD TO THE FOUR CORNERS OF THE EARTH BY THE SAN FRANCISCO WORD PEACE

CONFER~GE.COMPOSED BY WINETA CARDARELLA 1636 j*~*Bonnie Brae Street Houston 6 Texas iiTo Whom It M4-ay Con~cerrvt?

" My Vis~ion Morning Of The Warless World" May 20 1945 Composed by Wineta Cardarella. Dedicated to World Peace To Outlaw Wars, And to become The Peace Platform Of The Entire World, This peace Platform for all nations creeds and classes for the spiritual birth, recognizes no nationality we are all as one in Christ Jesus Our Lord and G~od the Father. Build the Goverments of every nation on a firm platform of peace by outlawing war by making wars against the law,, Appoint men only of the holy order of rightouflees, those well versed in the Ten Commandme nts# Thou Shalt Not Kill ) Love your Enemies., Do good to those who hate you these words should be written into all nations laws, causeing ware to be against any and all nations laws. And we as a people unite in a solid one mind to have these peace laws upheld in the international §overments throughout the entire world* Our laws of all nations will become so strong that war will never be opned on us again. There is No Excuse for wars,, And. any man or woman who holds any goverment office, Who tries to declare war upon any other nation , Shall Ifmmeditately be discharged, and their salries taken awayfrom them. Just the same as any common workers in factories and Etc. And their places taken by other righteus men and women duly sworn in to uphold the laws of justice and Truth Not Might. There will be a peace time system to outlaw wars through out the entire world to remove any and all wicked leaders.

We should have our church men and women to rule our goverments But only if they livre up to their pledges of No More 77-.rs, No Greed Or Graft., or und-orhaiided works of the Devil will be allowed. They will be watched. rigidly . and forced by peaceful measures *a Only, To Uphold Justice Truth and Love. By Outlawing Wars.

Address 1636 Bonnie Bra~e Street EoUStCun 6 Texas .eigoi 370 k -eu

aGaitIse- 1a to thepe mond1Tati oroec 1 InoitihtratiOrrani cotie Z0ni oneat

4icttOrnellrel~ -er pyblishe$yyurogn

For the Se0cretary General;

To ýT. ?*1 ok Intomation-Of fie

IS: IOCUfS R:SGT. THE UNJTED NATIONS CONFERENCE

ON INTERNATIONAL ORGANIZATION A TAEAGENCY FOR ONE NORLD K by ELIOT GRINNELL MEARS

CIIESCNERNEO

4.ENTQA 27 eigoEOOI v8u NO Nw Yok1, -Y IV Pric F ift et

i I CITIZENS CONFERENCE ON INTERNATIONAL ECONOMIC UNION I Purpose: To stimulate interest in economic cooperation among all nations as the basis of a just and lasting peace, and to praomote educationalactivities to that end. We are for the fund and bank and 4 tariff and trade agency, and such' other International,.organizations as are necessary jar the rebuilding of a .ývciety of notions and the creation of a just and la~tsng peace. TieCitizens Conference'®on International Economic Union, formed soon afteiPearl Harbor, was the first organization to advocate a Stabilization Fund, an Iiiternational Bank and lending institution, and ýa Trade and Tariff agency as the Iloundation for the postwar -world. The Bretton Woods Agreemenit, while vital to the revival of Agriculture, industry and full, employment, is incomplete. It do;,s not provide for multilateral tariff reduction, or conmmon action to control thos( cartels which raise prices and restrict production, nor adequate machinery for, removing trade barriers and competitive preferences. Nor does it provide for equal access to, the raw materials of the earth as promised by the Atlantic Charter. Wjiethe'r the.results of San Francisco are permanpnt or not will depend mainly uporil whether we are able to erect a firm econiomic foundation for the political worl4 government which is the ýhope of mankind. Fdorce is imjportant to -prevent future agg'ressioh, but unity of purpose and williijgne~ss to stand together'f or mutual tra'de and intercourse and the fundamental rights ~of mankind is seven more important, Through force and power,. the Ptited Nations may preserve peace for several years, but only a cooperative world organization, the free ~flow of trade,, the common use of the common resources of the world, can give permanent 4ssur4ncie of full production, full emplr~yment, and la stingr peace. Ecinomic war and econoniic nationalism will ultfniately destroy any political -structure built o~n force 'alon6. Professor- Mears, a -.director of Citizens Confer- ence, ian outstanding economist, and professor ofI International Trade in the Stanf~rd Graduate School of Business, proves conclusively how futile are con- feregqes, and resolutions, and the best intentio 's of experts and representatives ýof t~hi nations, if they are not~ implemented- by world machinery supported by the-delterrmined will of the nations. No 'argument could be stron~ger for an economic union of nations as the foun.. -datioii for world government thman these- pages' describing conference after con- I eregc~e which came to nothing because no workable machinery was created, no ,unity of purpose existed anmon~g the nations, no wIllingness to sacrifice for the ;common good.ý IThe. Econormic and Social Council provided,'for under the Dumbarton Oaks plan m~ust incorporate the Fun~d, the Bank, a Tirade and Tariff agency, and such ohr co-operatlve organizationi affecting food,. aviation, and the world's house- keeping, as may bernecessary to insure employmient, an increased standard of liv-ing,; and a fair and equal op~iortunity to earn the bread of life. Our: pleais, -for implementation,' not vague promises; institutions not reso- TutionLov'sH. Pn, Chairman Citizen~ Conference. on International Economic Union, April'5, 1945. A TRADE AGENCY FOR- ONE WORLD by ELIOT GRINNELL MEARS

TABLE OF CONTENTS

I INTRODUCTORY STATEMENT...... 3 National and International Economics, 4-Exports and Im- ports, 7-I~nherent Peaceful Nature of Trade, 9-Past, Present, and Future, 9

11. TWENTY-FIVE YEARS OF EFFORT TOWARD INTERNATIONAL CO-OPERATION...... 10 League of Nations, 11-International Labour Organization, 2 1- International Chamber of Commerce, 22-Carnegie Endowment for International Peace, 23-Van Zeeland Report, 25-Latin American Conferences, 6-Reciprocal Trade Agreements, 28- Current Proposals for International Bodies, 29-Current Comi- mitments, 33

III, GROWTH OF GROUP THINKING...... 38 Trade and Industry, 38-Ocean Shipping, 43-Banking and Fi- nance, 45-Labor, 46-Agriculture, 47-Religious Groups, 49 -Women's Organizations, 50-Special Groups, 51-Public Opinion Polls, 53-Study and Research Groups, 55

U ~IV, CONCLUSION...... 61

CHARTS

1. World Trade, World Unemployment, World Standing Armies 3

2. Relation Between National Incomes and United Kingdom Exports .5

4 3. Economic Activity and International Trade...... 6

4. Relation of Trade to Industrial Production...... 7

5. Foreign Trade of the United States, 19 10-40...... 8

6. National Income, Quantity of Imports, and Industrial Production 8 Copyright, 1945, by Eliot Grinnell Mvears. Any part may be reproduced providing tbis source is mentioned.

PRESS OF HOOPER PRINTING COMPANY SAN FRANCISCO I ii L. Introductory Statement The British Secretary of State and Chairman of the British Delegation, Anthony Eden, stated, at the first plenary session of the United Nations Con- ference on International Organization, that "of equal importance" with the provision of international machinery for the settlement of political disputes is "the solution of economic problems which, if untended, can themselves sow the seeds of future wars." This statement has been re-echoed continuou~ly over the world, especially since 1918. Thus, in a radio broadcast by Assistant Secretaries of State Dean Acheson, William L. Clayton, and Archibald MacLeish, the latter said: "You can't have genuine peace without healthy world trade; and you certainly can't have healthy trade without genuine peace." Expressed in another way, it has been well said that military security cannot be devised in an economic vacuum, nor economic security in the face of the threat of war. War and the accoutrements of war and a flourishing international trade simply do not go together (Chart 1).

Chart 1. World Trade, World Unemployment, World Standing Armies*.

WORLD WORLD [MNIN STANDING ARMIES TRDEUNEMPLOYMENT OF WORLD 1925 ff11 OHM.1 1929 if' 00001* 1931 fifif 1ff WOWili 1933 ffiffffilffffl00001199. 1936 00100,100 1938 ff1ff11t 000000t1)t Each symbol represents Each symbol represents Each symbol represents 10 b illon dollars 2 million men I million men Trade cannot be separated from politics any more than politics can be separated from trade; likewise, the social and strategic implications are ever present. The time has come to study and decide how nations and people can manage to live or merely exist. For if their economic questions are slighted or forgotten entirely, no amount of peace and security planning will avail. There is always the danger of confusing goals and their means of attainment. *U. S. Department of Agriculture, InternationalTrade Increases Demand for Farm Prod- ucts, August 1944, p. 15. 3. IA Thus, the League of Nations failed partly because high-minded adherents lauded it as an ideal rather than as a utilitarian vehicle for attaining great obt~ec- tives,. The League, in the eyes of countless supporters, was figuratively set on a pedestal so that it became almost an abstraction. A similar fate is possible under the revision and greater perfection of the Dumbarton Oaks Plan; yet this danger can be greatly minimized or perhaps averted altogether. Happily, the architects of the future have made possible this new departure in Chapter IX, Suggested Arrangements for International Economic and Social Cooperation. The most heartening statement (Section D, par. 1) reads: "The Economic and Social Council should set up an economic commission, a social commission, and such other commissions as may be requiried. These commissions should consist of experts. There should be a permanent staff Which should constitute a part of the Secretariat of the Organization." Here lies a great potential. Never in all history was a greater challenge presented. But will this "must" receive its proper attention? This is the reason for this monograph dealing with a problem that has received such unquestioned timely endorsement by Mr. Eden on April 2 5, 1945.

National and International Economics Politics and economics impinge on each other. There is no political question which is not partly economic, and no economic one. which is not partly political. Absolute laissez faire, free from any form of public supervision, has probably never existed. In America, the protectionist policy put into effect by Alexander Hamilton was related to youthful industries. At the same time he stated that safety from outside danger is "the most powerful dictator of national conduct." An English publisher, Ernest J. P. Benn, has observed that, while in the late Victorian period it was often stated that "there is no politics in business," nowadays it is more correct to say that "politics is concerned with little else than business." This change is a marked feature of the past 7 5 years. In our time, the Soviet Union has completely integrated foreign trade as An * instrument of national policy, and practically all nations are thinking in terms * of political economy rather than private economy only. Hence, while trade functions best when strategic and political considerations are removed so far as * possible, practically speaking, this separation is rare and becoming more so. But all economists believe in the efficacy of international trade, in the virtues of a world-wide division of labor. There is no fundamental distinction between national and international economics, so long as politics does not interfe re harshly. Moreover, within any country, there are local, regional, and other political barriers of one kind or another, so the different treatment of foreign and domestic economics can find little justification other than upon political or military grounds. The Swedish economist, Dr. Bertil Ohlin, had demonstrated that the theory of international trade is in essence part of the theory of location, and that geography does not establish political boundaries. Viewed from either geography or economics, .4 national and international economics become one, with each national problem an international one, and each international problem a national one. This is the prime reason for a single world trade body. When leading industrial countries suffer a business recession, the results are felt quickly by the less developed countries which export foodstuffs and raw materials in exchange for desired imports. Hence, while industrial countries are inclined to feel that they are the real sufferers, actually, the weak market together with the'slump in prices for what is disposed of there cause the "terms of international trade" to move sharply against the primary producing counl

Chart 2. Relation between National Incomes and United Kingdom Exports*'

120------

110 - U.K. National Income

90 A

80- U.S. National Income

70 , It U.K. Exports

60 -

s0o-

40 - - - - - 1929 1930 19310Q32 1933 1934 193&1936 19311938 tries. The oneness of world: economics, as distinguished from national or private economics, looms as reality. Because the United States is the world's greatest industrial power and has the largest domestic market, her international importance assumes tremendous scope. "The behavior of eco nomic life in the United States is the most important fact in world economy," reports the British organization called Political and Economic Planning (PEP), in its broadsheet Planning (January 5, 1945). "It might seem curious, yet it is so, that British exports move according to changes in American prosperity. The reason is that not only British but world exports are affected by fall in American demand. Stability of American economy at a high level is more important to us even than a reduction of American tariffs." Chart 2 illustrates this graphically. *Political and Economic Planning, Planning, January 5, 1945, p. 5. . 5. Chart 3. Economic Activity and International Trade*

INDEXES OF DOLLAR VALUES (1929 -100) INDEXES OF DOLLAR V ALUES (1929.- 100) 125 125 UNITDSTTESFOREIGN COUNTRIES NATIONAL INCOME-- (ICOUArITRES) 100 100

NATIONAINCOTEr&AL / IMPORTS\,ý. 75 75

' ......

IMPORTS FROM UV.-'.'

INDEXES OF PHYSICAL VOLUME (1929 *100) IN DEXES OF PHYSICAL VOLUME (1929 100) 15 UNITED STATES FOREIGN COUNTRIES12 INoUSTRIAL PRODUCTION,,., /INDUS TRIAL PR0WGTION-.,,, (EXGLUVDIN6USS.R) 100 * *10

IMPMORTS -

75 ______75 11

50 1 I I I I I I7 I I I I I I I I 1 I 50 1925 1926 1927 1928 1929 19350 1931 1932 1933 1934 1935 1936 1937 1938 1939 1925 1926 1927 1928 1929 1930 19939 1932 1933 19534 1935 1936 1937 1936 19)39 0 0. 43 ''R44 *U. S. Bureau of Foreign and Domestic Commerce, Economic Series 23 (1943), p. 9. Chart 3 shows, both for the United States and foreign countries, the startling interdependence of national income, industrial production, and imports. These graphs are self-explanatory. Chart 4 indicates the close dependence of imports upon world industry, and of world industry upon imports. In this industrial age, this correlation is exceedingly noteworthy. Chart 5 presents a historical foreign trade record of half a century. Highly important is the striking correlation between exports and imports. To reduce exports is likely to reduce imports, and to reduce imports is likely to reduce exports, for reasons which have almost universal acceptance. Similar graphs for other countries follow the same trend, despite the individuality of each country and the absence of other comparable features. Chart 6 shows the striking similarity in the United States in the trends of national income, quantity of imports, and industrial production. If 81 per cent of the world's population have an average real income of less than the equivalent of $10 per week per breadwinner and about 53 per cent have less than $4 per week per breadwinner, to use the -estimates of Colin Clark (The Conditions of Economic Progress, London, 1940, pp. 2-3), then the trade possibilities obviously can be vastly increased.

Exports and Imports The terms "exports" and "imports" are used here in their narrow sense of merchandise which leaves or enters across a national frontier. Then there is the broader, in many respects more satisfactory, procedure of including the exchange of commodities, people, and also "intelligence": in other words, to adopt the conception of the Austrian economist, Josef Grunzel, "all mutual transactions

Chart 4. Relation of Trade to Industrial Production*

It U0 (0 t- CO M5 C - 03i to) It U WD -- OD W4 0i 04 04 0i 0W VO to Mo to to Mo to to to

0..0. 44-3 *U. S. Bureau of Foreign and Domestic Commerce, Economic Series 23 (1943), p. 9. . 7. I I

Chart 5. Foreign Trade of the United States, 19 10-4O*

*Foreign and Domestic Commerce, International Reference Service, Summary of Foreign Trade of the United States-Calendar Year 1940, December 1941, p. 1.

Chart 6. National Income, Quantity of Imports, and Industrial Production* INDEX NUMBERS (1929-100) 120 1

100

40 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19191920 19211922 1923 1924 1925 19261927 19281929 1930 19311932 1933 19341935 1936 1937 1938 1939 b.O. 43-/S0 *U. S. Bureau of Foreign and Domestic Commerce, Economic Series 23 (1943), p. vdi.

*8 between economic subjects constitute what we call commerce." But the simplest plan for our purposes is to confine these two terms to commodities which pass from one country to another. A government decides what, how, and when goods can be shipped. out of or in the domestic area. For the United States and other countries, the motives for exporting or importing, also their relative validity would be stated in different terms, dependent largely upon land, capital, and labor resources respectively; yet to all countries, intern~ational trade in some form is certainly vital.

Inherent Peaceful Nature of Trade The mutuality of trade is a simple, proposition. Seldom does any one buy something he doesn't want. Seldom -does any one sell something he wishes to keep. When two parties decide to do business, therefore, it is on an exchange basis differing in no way from boys in swapping marbles or postage stamps or knicknacks. So when trade is spoken of as evil or sinister or warlike, the fault would appear to lie with the individuals. International trade offers the most realistic example of mutual dealing and good will-more so, it might be added, than even religion or education as practiced today. For unilateral action is impossible, compulsion is foreign to the nature of trade, and the prostitution of -its inherent virtues is possible only by unfair private tactics or nationalistic propaganda. Conversely, there is no quicker way to lead to war than to deny a country the privilege of trading with another. If trade inherently is considered so productive of war, so opposed to security and peace, what is the explanation? There is no answer, providing, of course, that the real nature of trade is understood and practised. Every one of us buys and sells something almost daily, usually in the form of things but also in personal services that we procure or provide. Self- preservation demands that absolute necessities shall be supplied in peacetime as well as in wartime, and lesser wants are often placed in. the same category. Therefore, a failure to invoke the natural principles and operation of trade becomes a travesty on mutual justice and good will.

Past, Present, and Future The economic basis of civilization probably originated with the earliest human inhabitants. Prehistory is silent, but no one can tell what the future discoverers of the past will unearth. The first deciphered writing of which we have knowledge pertains to a commercial errand-a Near Eastern transaction in hides and skins. The economic historian of today is unravelling the tremendous and often preý dominant role played by economic dealings, particularly trade. The early river and later sea and ocean civilizations abound in examples, Cyrus the Great wrote that "soft countries give birth to soft men . .. there is no region which produced very delightful fruits, and at the same time men of a warlike spirit." This emphasis upon the peaceful occupations and soldiery wasý repeated by countless authorities over 2,1000 years ago. In them we have th(.- .9 p aradox of economic activities being associated with more peaceful conditions at the same time that ships were almost synonymous with assault and piracy. These commercial ventures, whether to procure industrial and other slaves or ra w materials and food, were engaged upon import rather than export missions. Piracy is not wholly unknown in the world even today, but the cardinal point to remember is the unending persistence of trade. * Nowadays, foreign trade is carried on because no country is self-sufficient, either as a market for its products or as a producer of its requirements. During wartime, import deficiencies always receive precedence over export outlets; during peacetime, exports are almost always favored over imports in conformity with the mercantilist tradition. The precise needs vary from country to country according to their geography, history, state of development, political theories, material conditions, and so forth. Since the outbreak of World War 11, there has been a pronounced world-wide shift from the profit-making aspects of international trade to the military and defense features. At this writing, private trading between nations has been mainly supplanted by trading for Government account or outright State operations. The trading motives and policies seem likely to retufa considerably to prewar conditions, but with amarked emphasis upon nonmnaterialistic factors. There is an incessant urge to attain more jobs, higher living standards, greater flow of foreign investment, and more stabilized conditions everywhere. Totalitarian, socialistic, and democratic regimes present different, contrasting questions in the uncertain future. Revolutionary advances in science and technology, notably in speeding transportation and communication, are indeterminate factors. Dy- namic changes will continue in our world of material economics, social economics, and political economics. Yet, like Tennyson's brook, trade will continue to flow on forever, and doubtless in an increasing world stream.

II. Twenty-Five Years of Effort Toward International Co-operation If, as the peoples of the nations have been promised, the United Nations Con- Ii ference on International Orga~nization gives serious consideration to some of the * most serious economic problems facing the world today, among which trade is of primary importance, the conferees will find a basis for their considerations of trade problems in the efforts, failures, and minor successes of the past twenty-five years. At the time of the framing of the Covenant of the League of Nations, international trade was viewed as a problem more in prospect than in reality. Since that time a whole battery of regulations restricting the flow of goods between countries has been invented, and even the most nationally minded peoples admit that some of the most difficult problems facing the delegates at San Fran- cisco deal with international trade.

.10 The League of Nations The final draft of the Covenant of the League of Nations contains a provision of merely eleven words concerning international trade: section e of Article 23 provides that the members of the League should make provision to secure and maintain "equitable treatment. for the commerce of all Members of the League." But the details of the drafting of the document leave no doubt that the man in whose mind the organization was evolved desired -far more. In his famous Fourteen Points speech of January 8, 1918-the speech in which he called for the formation of "a general association of nations" to be "'formed under specific covenants for the purpose of affording mutual guarantees of political independence and territorial integrityý to great and small states alike"ý-President Wilson also advocated "the removal, so far as possible, of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to the peace and associating themselves for its maintenance." By "equality of trade conditions," President Wilson, as he explained in a letter of October 1918, to United States Senator Simmons, meant "Ino restriction upon the free determination of any nation of its own economic policy, but only that, whatever tariff any nation might deem necessary for its own economic service, be that tariff high or low, it shall apply to all foreign nations."1I

Drafting of the Covenant. When, in preparation of the League Covenant, Mr. David Hunter Miller, President Wilson's legal adviser, turned to the problem of providing for the "removal of economic barriers" and "the establishment of trade conditions," he encountered "almost insuperable practical difficulties."2 . The removal of economic barriers was apparently not even considered at the Paris Conference. At that time the majority of the countries repr6'sented were not disposed to limit national freedom in this regard. Even before the end of hostilities, European belligerents on both sides had declared to the world that they intended to retain discriminatory tariffs as a feature of their trade policies: commercial trade programs announced to go into effect after the war ended embodied restrictions and discriminations against enemy countries.3 Furthermore, how could the representatives of the greatest and perhaps the best protected national market in the world expect their foreign colleagues to consider the removal of economic barriers, without the lead of the American, example? And sorely nothing, on the morrow of the armistice, could have justified the belief that the United States were ffrepared to ahandon 4 their traditional protectionism. The question of trade equality received more consideration. The United States delegation submitted a "Declaration for Equality of Trade Conditions," to

IH. W. V. Temperley, History of the Peace Conference of Paris (5 vols., London, 1921), V, 261. David Hunter Miller, The Drafting of the Covenant (2 vole., New York &London, 1928), 3 4 Vienna Declaration, 1916; R~esolutions of the Allied Economic Conference, Paris, 1916. William E. Rappard, Post-War Efforts for Freer Trade (Cobden Lectures delivered at the London School of Economics, Feb. 2-4, 1938, published in Geneva Studies, Vol. IX, No. 2, March 1938), pp. 10-11, which was appended a statement to the effect that provisions for an International

LI Trade Commission were being prepared. This declaration was "to follow in the5 Treaty this draft Agreement for a League of Nations and really as a part of it." In the final draft of the Covenant, even the British proposal that provision be made for "just treatment for the commerce of all members of the League" proved too stern, and the more elastic "equitable" was substituted for "just," in order to meet the apprehensions of the Belgians, the French, and delegates of certain other European allies. 6 One of the early preliminary drafts of the articles proposed for inclusion in the League Covenant mentions, with no details, a World Trade Tribunal; and Mr. Huston Thompson, then a member and later chairman of the United States Federal Trade Commission, drew up a constitution. 7 The Tribunal was to be a judicial body organized along lines similar to those of the Permanent Court of International justice, and publicity was to be the weapon used against activities I inimical to the public interest. President Wilson obviously supported the idea of a World Trade Tribunal. He wrote from Paris to Mr. Thompson expressing the hope that such a tribunal might eventuate and, on his return to the United States. after the Covenant of the League had been completed, expressed the belief that Article 23 "was a sufficient foundation upon which to build a World Trade Tribunal."18 The activities of the League during the years that followed are evidence of the insufficiency of that provision, or perhaps of the unwillingness of the nations concerned to make the provision effective in dealing with the problems of international trade.

Brussels Financial Conference. The first step toward restoring international trade-the demobilization of wartime exchange controls and of prohibitions on imports anid exports-had been very largely accomplished by 1919, outside of Europe and in several European countries (the United Kingdom, the Nether- lands, Belgium, and the Scandinavian countries.) Progress directed toward return to relatively unrestricted trading conditions was somewhat slower in Italy, Spain, France, and Switzerland, but the situation in the countries of Cen- N tral and Southeastern Euroj e, where trade had practically ceased by the end of the war, held the core of the problem. In those countries intergovernmental barter agreements, general trade prohibitions modified by licenses, government import and export monopolies, currency restrictions, and export duties on agricultural products stood in the way of trade relations in any way approaching

3 Miller, op. cit., I, 19. Mr. Miller also prints the Declaration with the British com~ments as marginal notes and a British draft of the same (ibid., 11, 16-22). 6 Rappard, op cit., pp. 11-12. 7 This draft is available from the International Industrial Relations Institute, 130 B. 22nd Street, New York. See Mr. Thompson's address delivered at the 34th annual meeting of the American Society of International Law, Washington, D. C., on May 13, 1940, and reprinted in Proceedings,1940, pp. 1-10. See also his recommend'ation for an International Trade Com- mission, in Annals of the American Academy of Political and Social Science, July 1922, Vol. CII, pp. 162-68. 8P-roceedings,p. 4. .12 normal. Conditions within their area were further -complicated by boundary changes and the creation of new states. In March of 1920, the Supreme Eco- nomic Council of the League had recommended that states so affected "should at once re-establish full and friendly co-operation and arrange for unrestricted interchange of commodities in order that the essential unity of European economic life may not be impaired by the erection of artificial economic barriers." 9 The International Financial Conference, which the League summoned at Brussels in Sdptember-October 1920, in obedience "not to the uncertain letter of its constitution, but to the unmistakable call of economic necessity," 10 endorsed the March 1920 recommendation'of the Supreme Council. The commission on international trade, one of the four set up at the conference, submitted a report which was unanimously adopted on October 7, 1920. Its main~propositions are worth quoting verbatim: I. The International Financial Conference affirms that the first condition for resumption of international trade is the restoration of real peace, the conclusion of the wars which are still being waged, and the assured maintenance of peace for the future. The continuance of the atmosphere of war and of preparations for war is fatal to the development of that mutual trust which is essential' to the resumption of normal trading relations. The security of international conditions is scarcely less, important, as foreign trade cannot prosper in a country whose internal conditions do not inspire confidence. The Conference trusts that the League of Nations will lose no opportunity to secure the full restoration and continued maintenance of peace. Ir. The International Financial Conference affirms that the improvement of the financial position largely depends on the general restoration as soon as possible of good-will between the various nations; and in particular it endorses the declaration of the Supreme Council of 'the 8th March last "that the States which have been created or enlarged as a result of the war should at once re-establish full and friendly co-operation, and arrange for the unrestricted interchange of commodities, in order that the essential unity of European econonjic life may not he impaired by the erection of artificial economic barriers." Ill. The Conference recommends that, within such limits and at such timre as may appear possible, each country should aim at the progressive restoration of that freedom of -commerce which prevailed hef ore the war, including the withdrawal of artificial restrictions on, and discriminations of price against, external trade. 1 1 The resolutions of the Brussels Conference were promptly submitted to the Council of the League of Nations (the first Assembly that met thereafter at Geneva endorsed them generally) and to the'i-ational governments of the states represented. But since the experts attending, although appointed by their respective governments, could speak only as individuals, "their unanimous resolutions were therefore the expression of their collective pbrsonal wisdom and not the definition of any official national or international policy."'2 In Italy new and higher tariffs. were introduced in 1921 and 1922; in France, where quantitative restrictions were abandoned in principle in 1919, those that remained were added to in 1920 and 1922; and Switzerland re-introduced an import permit system in 1921. Less than two years late, another conference was summoned.

9 League of Nations, Commercial Policy in the Interwar Period: International Proposals and National Policies (League Doc. 1942. 11. A. 6, Geneva, 1942) jp. 18. 'ORappard, op. cit., p. 12. 1 1League of Nations, Brussels Financial Conference, 1920: The Recommendations and Their1 2 Application (League Doc. C. 10. M. 7. 1923. 11, Geneva, 1923), p. 226. Rappard, op. cit., p. 13-14. * Genoa Conference. In January 1922, Mr. David Lloyd George, the principal sponsor of the gathering that convened at Genoa on April 10, 1922, presented to the Supreme Council of the League a resolution, which served as the diplomatic basis for the conference. The Allied Powers consider that the resumption of international trade throughout Europe and the development of the resources of all. countries are necessary to increase the volume of productive employment and to relieve the widespread suffering of the European peoples. A united effort by the stronger Powers is necessary to remedy the paralysis of the European sstem. This effort must include the removal of all obstacles in the way of trade, the pro-

vsyo of suhstantial credits for the weaker1 3 countries and the co-operation of all nations in the restoration of normal prosperity. Although convoked under the auspices of the Supreme Council and attended by various officials from Geneva, the Genoa Conference was not a League affair, lIt was so summoned, because Mr. Lloyd George "had in vain hoped to secure the co-operation of the United States of America and had successfully insisted on that of Soviet Russia and of Germany, which might not have been secured in Geneva." 14 The Economic Committee submitted recommiendations, which may be summarized as follows: 15 a) "The removal of obstacles created by instability in administrative and legal measures"; b) The publication of tariffs and efforts to render the nomenclature of tariffs as comparable as possible; c) Tariffs to be made so far as possible applicable over substantial periods of time; "the practice of frequent modification for the purpose of economic warfare," the Conference declared, "should he entirely abandoned"; d) No duties, except purely fiscal duties, to be levied upon the export of raw materials; such duties, where they continue to exist, to be non-discriminatory; e) The progressive suppression of import and export prohibitions, which "constitute at the present time one of the gravest obstacles to international trade"; the limitation of imports, where desired, to be "effected by the medium of customs duties"; f) The resumption of commercial relations on a basis of commercial treaties, "resting, onl the one hand, upon a sysi emn of reciprocity adapted to special circumstances, and containing, on the other hand, so far as possible, the Most-Favoured-Nation clause." These resolutions, it may be noted, are, like those adopted at Brussels, concerned with the fundamental problems of trade policy that have been the center of controversy from Brussels to tile present time. Although, so far as its entire endeavor is concerned, the conference has to be dismissed as a failure, something was accomplished as regards the publicity of tariffs and tariff nomenclature, and a step had been taken to break down the political barriers that separated Germany and Soviet Russia from the Western European nations. Fur- thermore, the conference requested the League "(1) to study dumping and differential prices, (2) to continue its examination of methods of safeguarding the validity of arbitration clauses in commercial contracts, and (3) to facilitate * the execution of the resolutions regarding the publication of tariffs and the unification of customs nomenclature."'15

13J. Saxon Mills, The Genoa Conference (London, 1922), pp. 11-12. 4 ' Rappard, op.. cit., p. 19. '5Quoted from League of Nations, Commercial Policy in the Interwar Period, pp. 22-23. 't League of Nations, Commercial Policy in the Interwar Period, p. 23. *14~ Diplomatic Conference on the Simplification of Customs Formalities. Although the Genoa Conference had recommended that the Economic Com- mittee of the League study certain problems associated with international trade, and although these problems were the main concern of the diplomatic conference, held at -Geneva in- October-November 1923, the Geneva Conference did not originate at Genoa. In 192 1, the League had instructed the Economic Committee to explore the equitable treatment. clause of the Covenant. In the preamble of the official instrument presented to the conference, the Committee proposed to free "international commerce from the burden of unnecessary, excessive or arbitrary Customs or other similar formalities," and Article 3 of that document stipulated that In view of the grave obstacles of international trade caused by import and export prohibitions, the Contracting States undertake to adopt and apply, as soon as circumstances permit, all measures calculated to reduce such prohibitions and restrictions to the smallest number.... 17 The convention also provided: (a) for the publication of customs regulations in simple and accessible form and the immediate publication of changes in tariffs or formalities; (b) for the simplification of rules and procedure; (c) for greater expedition in the application of regulations; (d) that formalities should not he used for purposes of discrimination; (e) for appropriate redress.18

When a licensing system was used, the signatories agreed to observe the above principles. Although the recommendations of the convention did not do much toward removing economic barriers, they were a step in the direction of "trade equality." The draft, having been worked out in consultation with the customs administra- tions of the states concerned and the International Chamber of Congress, re- flected the view of national governments. In fact, the technical experts comn- posing the Economic Committee, although theoretically selected by the League Council on the basis of their individual competence, were actually proposed by their respective governments. Consequently, after three weeks of debate, Lord Buxton, the chairman, -wasable to announce on November 3, 1923 that twenty of the delegations had signed the convention. It came into force on November 27, 1924, and by the close of the Economic Conference in August 1927 it had been signed by thirty-nine states and ratified by twenty-eight. Whether the progress made between 1923 and 1927 in freeing international trade from "the burden of unnecessary, excessive and arbitrary formalities" is to be attributed to the influence of this convention is a moot question; but in 19 27 the Economic Com- mittee felt justified in referring to the striking progress which has been made under the influence of the Convention both as regards the clauses which have a binding character and those which are merely in the nature of

t 7 League of Nations, International Conference on Customs and Other Similar Formalities, Geneva, October 15th to November 3rd, 1923 (League Doc. C. 66, M. 24. 1924. 11, Geneva, 1924), p. 7. 1 8League of Nations, Commercial Policy in the Interwar Period, p. 26. 15 recommendations.... The Geneva Convention has been attended with the most fortunate results. 19

EconomicS~World Conference of 1927. The circumstances attending the World Economic Conference held at Geneva in May 1927 were, in many respects, auspicious. First, as regards its composition: "194 members, attended by 2 26 experts, drawn from 50 countries in all quarters of the globe, including not only countries which are Members of the League but non-Members" met to discuss, in all good faith, the economic problems that were troubling the world. Participants at the conference spoke as experts and not as official spokesmen for their respective governments, and this undoubtedly contributed to the freedom of their discussions and the "audacity" of their conclusions and recommendations. Second, the preparatiopis for the conference were lengthy and thorough. In 1924 the League Assembly had instructed the Economic Committee to "consider the possibility and expediency" of an international agreement for the final suppression of prohibitions and restrictions to trade. In its deliberations, the Economic Committee had consulted both national governments and expert private organizations, notably the International Chamber of Commerce.2 0 The months from September 192 5, when the Assembly passed a resolution introduced by the French delegation providing that the World Economic Conference be convened, were devoted especially to preparations for the conference. As Rap- pard points out, of all the international gatherings since 1918, the 1927 conference was "the one in which the most searching attempt was made not merely, as Ji elsewhere, to improve the international situation by recommendations, but also to understand it by a close analysis of its inherent features and of their under- lying causes."121 Third, and this is of the utmost importance, the political and economic situation was such that "real peace seemed at last in sight in Europe and a real 1 chance of carrying out the policies that had been advocated." 22 The long-drawn- out reparations conflict had been allayed, for the time being at least, by the Dawes plan; Germany, obviously following a conciliatory course, had been admitted to the League of Nations; and Locarno Treaties promised to consoli- , date Franco-German co-operation. And the aggressor nations had as yet shown no signs of launching out on their adventures of territorial expansion. In the i ~economic field, the national financial difficulties of the postwar years hail for the time been overcome, and economic activity, both production and trade, was being revived. In sharp contrast to the general improvement in the economic situation, the conference found itself faced with a trade situation, which it described as follows:

19League of S~Nations, Commercial Policy in the Interwar Period, p. 26. 20The Chamber presented two reports preparatory to the conference, in both of which a plan was brought forth for an international advisory "commission" or "conference," with jurisdiction over commercial policy. See p. 22. 2 1Rappard, op. cit., pp. 23-24. 722League of Nations, Commercial Policy in the Interwar Period, p. 36. i 16 Europe remains to-day with its tariffs higher and more complicated, less stable and more numerous than in 1913. Moreover, Europe has failed to restore its former system of commercial treaties, and the habit has developed of putting tariffs designed for purposes of negotiation into force before those negotiations take place. If, as has often happened, these tariffs have failed to result in agreement, the obstruction remains higher than before. The tendency of the last three years has continued to be in an upward direction. ... 23 Consequently, in spite of the fact that the conference was not designed for a trade conference, it is not surprising that the attention of the experts preparing for it and the debates and speeches delivered at Geneva turned more and more to the problems of international trade. The portion of the final report dealing with commerce is lengthy, and it is unnecessary even to summarize it here. We pass to the "main conclusion" drawn from the work in the field of commercial policy. "Convinced that a return to the effective liberty of international trading is one of the primary conditions of world prosperity," the conference declared that the time has come to put a stop to the growth of Customs tariffs, and to reverse the direction of the movement by an effort along three lines, viz: (1) Individual action by States with regard to their own treaties; (2) Bilateral action through the conclusion of suitable commercial treaties; (3) Coilective action, by means of an inquiry, with a view to encouraging the expansion of international trade on an equitable basis by removing or lowering the harriers to 2 4 international trade which are set up by excessive Customs tariffs. The impact of this statement is brought into bold relief when one recalls that no previous League publication had come out with a statement challenging the dogma of national sovereignty so far as trade was concerned. Perhaps this stand is best summarized in the words of M. Theunis, president of the conference, in his closing address on May 23, 192 7: A fact that may he taken as marking a considerable step in the evolution of ideas in Customs tariffs is that this question, notwithstanding its fundamental importance in the economy of each State, has now come to be considered as no longer being exclusively within the domain of national sovereignty but as falling within the scope of problems for which parallel or concerted action among the different nations is possible and desirable. Each nation will then know that the concession it is asked to make will be balanced by corresponding sacrifices on the part of other nations. As the report to the Committee states, each country will then he able to give its attention to the proposed measures, not merely in view ot its own individual position but also because it is interested in the success of the general plan laid 2 5 down by the Conference. To secure the diplomatic action necessary to make the recommendations of the experts operative, a Diplomatic Conference convened at Geneva the following October. The Economic Committee recommended that the later conference utilize a draft International Convention for the Abolition of Import and Export Prohibitions and Restrictions (which had been prepared by the Economic Com- mittee of the League of Nations and submitted to the League members and the principal nonmembers) as a satisfactory basis "to lead to a prompt general 2 3Ibid., p. 37. 24 League of Nations, The World Economic Conference, Geneva, May 1927:Final Report (League Doc. C. E. 1. 44, Geneva, 1927), p. 29. 2 5 League of Nations, Report and Proceedings of the World Economic Conference, Held at Geneva May 4th to 23rd, 1927 (League Doc. C. 3 56. M. 129. 192 7, 11. (C. E. 1. 46), 2 vols., Geneva, 1927), 1, 14. 17 agreelnen priting the greatest possible number of nations .. to bring about favourable conditions for the recovery and development of the production and tradej of all countries." As~a result of the October Diplomatic Conference, 29 states, including the United States, the United Kingdom, France, Germany, Italy, and Japan, adopted an international convention, the main provision of which was that the parties undertook "to abolish within a period of six months all import and export prohibitions or restrictions and not thereafter to impose any such prohibitions or restrictions" (Art. 2). Three additional conferences were held at which certain reservations were withdrawn and others added in the eff ort to draw up an instrument that would be ratified by a sufficient number of countries to put it into effect. By January 1, 1930, the majority of the earlier ratifications had already elapsed, and through a special arrangement, the convention was put into force on a short-term basis by Denmark, Japan, the Netherlands, Norway, Portugal, the United Kingdom, and the United States. But by June 30, 1934, even these countries had ceased to be hound by the instrument. This brought to an end the practical results of the 1927 conference, which thle Swiss economist, William E. Rappard, evaluates briefly: .. What individual good will and individual brain power could do for the world, that the Conference of 1927 undoubtedly achieved. But, as no physician, no matter how careful and clear-sighted in his diagnosis nor how eager and how wise in his treatment, can save a patient itnonindulging his suicidal passions, so no gathering of experts can, by analysis and admonition, endow a society of nations with prosperity, when none proves anxious to follow teradvice and when some seem determined to sacrifice general welfare on the altars of ecuieself-aigrandisement.26

Monetary and Economic Conference of 1933. The real origin for the sum- moning of the Monetary and Economic Conference, which convened in London on June 12, 1933, is to be found in the apparently hopeless world economic situation; the immediate origin lies in a resolution adopted by the Lausanne Reparations Conference of June-July 1932. The main concern of the Lausanne conference was the reduction of the amount of German reparations, but it also undertook to decide upon "the measures necessary'to solve the other economic and financial difficulties which are responsible for, and may prolong, the present world crisis." A resolution was passed inviting the League of Nations to convoke a World Economic Conference to consider "the necessity of restoring currencies to a healthy basis" and "the vital need of facilitating the revival of international trade." The work of preparing for the conference was entrusted to a committee of experts, called the Preparatory Commission. After considering all possible methods of relieving the world's economic problems, the experts of the committee submitted in January 1933 their report, called the "Draft Annotated Agenda," which was sent to the governments of all the countries to be represented at the conference. The report differs somewhat from that of the experts preparing for the 1927 conference in that it places more emphasis on monetary and financial problems.

26Rappard, op. cit, p. 310. With reference to trade, the conclusions were closely similar to those of the 19 27 conference: Restrictions on international trade, whether they take the form of prohibitions or of quotas or licenses, have in recent years become exceptionally widespread and are so numerous that they now constitute an almost insurmountable barrier to international exchanges. Tbey have brought .about an unprecedented reduction in international trade and threaten it with complete paralysis.... .International trade will not fully revive until these new impediments have been removed and it can again flow hiýits natural channels.... We are therefore unanimous in affirming the necessity that action for the removal of the restrictions on international trade (prohibitions, quotas, exchange restrictions, etc.) should be taken as soon as possible and continued on progressively wider lines as the other causes of the preserit economic disorganization are mitigated or removed. F The fact must not hs overlooked that fhe abolition of restrictions will, in its turn, exercise a very considerable influence on the situation and will effectively help remove the other difficulties. If they can increase theft exports, many countries will be enabled to purchase larger quantities of foreign products. The opening-up of larger markets, apart from whatever action may be required in the financial sphere, will greatly ease the difficulties encoun- 27 tered by the debtor countries as regards their balance of payments. The program embodied in the Draft Agenda, particularly its recommendations on tariff problems and other matters, was supported by international bodies;, which met during the months immediately preceding the conference. 28 In April, Prime Minister Ramsay MacDonald of Great Britain and ex-Premier M. Herriot of France made a trip to the United States, to confer with President Roosevelt and to prepare the ground for the conference. The diplomatic preparation for the conference was no less promising than the technical preparation. A full diplomatic conference, it was attended by delegates from 67, countries, a well-nigh universal representation. Among the delegates were numbered I11 prime ministers, 24 foreign secretaries, and 73 cabinet officers. All governments had accepted the invitation to attend. The United States, which had been "brutally and, as it almost seemed, thoroughly and permanently converted to a policy of active internationalism,2 9 co-operated wholeheartedly. converted to a policy of active internationalism," 29 cooperated wholeheartedly. Good will seemed to attend developments. As a result of conversations with Mr. MacDonald, President Roosevelt announced the intention of conclulding a customs truce with similarly minded governments, and accordingly a few weeks before the opening of the conference an agreement was reached among 61 countries representing nearly 90 per cent of the world's trade, by which they bound themselves not to adopt "any new difficulties which might incriease the many varieties of difficulties now arresting international commerce." On June 12 King George V, who remarked that he was the first sovereign to preside at the opening of an official gathering of all the nations of the world, welcomed the delegates. 27 . League of Nations, Monetary and Economic Conference, Draft Annotated Agenda Sub- mitted by the.PreparatoryCommission of Experts (League Doc. C. 48 (1). M. 18 (1). 1933 II.,2 (Conf. M. E.I1. (1), Geneva, 1933) pp. 23, 25, 26. 8Among thesd were the International Parliamentary Commercial ýConference, the Comit6 de l'Union douanibre Europhene, the International Chamber of Commerce, the International Exchange Congress, the International Agricultural Commission, the International Co-oper- ative2 9 Alliance, and the International Labour Conference. Rappard, op. cit., p. 39. 19 In the opening address the President of the Conference, British Prime Minister Ramsay MacDonald, called for the conference "to put new heart and new confidence into the world and let it mark the end of years of uncertainties and of policies which have brought distress upon us all." After forty days of endless debate the conference was unable to reach agreement on'any essential matter, although it was in a position to present "interim" reports on some secondary issues. On July 27, 1933, in his closing address, Mr. MacDonald summarized the successes and failures of the efforts of the conference as regards trade in~these words: Another section of remedies, dealing with restrictions upon trade, obstacles to the exchange of goods, foreign currency control, and kindred matters, has made an excellent beginning and all that is now required is a close examination of the various suggestions that have been made, and the influence of a diplomatic hand in reconciling differences and in construc- ting workable conclusions. Common provisions for commercial treaties, the conditions under which these treaties should be negotiated or denounced, the application under modern con-. ditions of the most-favoured-nation clause, have all been raised and an examination of them has been begun. "Bounties and subsidies" was, unfortunately, one of the subjects which had to be postponed, owing to the paralysis in certain directions which has been the peculiar ill fatte of this section of our work. I need go no further in this summary. What I have said has been enough to convince not only the Conference itself, T, believe, but the outsiders that we have brought ourselVes face to face with some of the most potent influences in the tragic deterioration io international 30 trade. The dlosing words of the same speech would indeed- seem very bitter if they had not been uttered by a man who still held hope for future action. At this point we adjourn. We adjourn not because we are defeated, not because we are discouraged, but because the Committees require a little longer time to continue their deliberations and to consider conclusions. You will, therefore, pass to-day a resolution, keeping the machinery that has been set up in being, instructing your Bureau to remain in active life; and, that this activity may he more vital, your Bureau will appoint as an Executive Com- mittee the various chairmen and rapporteurs who have been guiding the work since the Conference opened . .. I therefore this afternoon bid you adieu in the firm conviction that before many months have passed I shall have the pleasure of offering you a very hearty welcome again to resume our labours. A second session of the Monetary and Economic Conference for which "your Bureau" was to be kept alive never took place, although the League assemblies voted, year after year, the necessary appropriations. The conclusion of the economic conferences sponsored by the League-and in fact no important economic conference as such assembled between 1933 and the outbreak of the present war-did not mark the end of the League's activities on the problems of international trade. Since the outbreak of the present war, the League has undertaken an extensive program of studies in international trade and commercial policy. 3' It was previously pointed out that the conferences of 1920, 1922, and 1927 were failures because the nations of the world were unwilling to carry out the '3 0League of Nations, Journal of the Monetary and Economic Conference (London, 1933) * p. 245. 31 Volumes which have appeared to date are: Europe's Trade (1941. 11. A. 1) ; The Network of World Trade (1942. 11. A. 3) ; Commercial Policy in the Interwar Period (cited herein); Quantitative Trade Controls: Their Causes and Nature (1943: 11. A. 5); Trade Relations between Free-Market and Controlled Economies (1943. 11. A. 4) *20~ recommendations, although, in the words of Rappard, they seem to "be but the very mild expression of obvious common sense." In evaluating the efforts of the League and in planning for a future trade policy, it is well to consider a recent statement by Dr. Henry F Grady, chairman of the League Economic Committee: ... The League has prestige in connection with its ývork in the technical fields, even though it may have none for its work in the political field. The failures of the Economnic and Finan- cial Organization in the interwar period were not the result of insufficient knowledge or ability; it could facilitate international agreement and issue recommendations on specific economic problems referred to it, but its role was purely advisory, and it had no power to enforce decisions. Some problems were never-referred to it, while the prospect of agreement on others was so remote that they never advanced beyond the stage of study and informal discussion, The technical solution of the major economic problems-such as tariffs and other obstacles to trade--on which it was mainly engaged, depended ultimately on political decisions. If no agreement was reached, or if the recommendations of the Organization were not followed, reasons of national policy rather than defects of organization or technique were to blame. If economic co-operation is to be effective in the future, national sovereignty must be limited over large areas of economic policy.3 2

International Labour Organization Certainly no aspect of the work undertaken in connection with the League of Nations has been more free from criticism than that of the International Labour Office, created under the League Covenant, and the latter organization has shown, no little concern over the broad problems of international trade. At its sixteenth session, held in Geneva in April 1932, a resolution. was passed providing:, That the problems of production and international trade should be examined by Govern- ments in collaboration with delegates from the most representative organizations of em- ployers and workers in each country, for the purpose of concluding, in a severely practical spirit, such international conventions as will ensure the resumption of economic activity... The seventeenth session, held at Geneva, passed on June 9, 1933 a resolution addressed to the World Economic Conference, which was to convene at London on June 12. In this resolution, the conference called for the cessation of economic warfare between nations by the concerted elimination of restrictions on international exchanges and dangerous impediments to the flow of commerce, and of practices which have. frequently given rise to them.... The following year, on June 19,1934, the session passed a resolution providing: Whereas at the Monetary and Economic Conference the Governments arrived at no agreement on measures designed to attain the objects proposed by the International Labour Conference last year in the resolution which it addressed to the Monetary and Economic Conference... The Conference expressed the hope that the League of Nations will take urgent and sustained action to ensure that the national economic measures now contemplated or in course of execution should take account of the principles enumerated above, especially with a view to freeing the channels of international trade... On June 18S, 1936, the twentieth conference, after pointing out that the economic depression, with its disastrous effect upon the workers to which the conference has frequently called attention, unquestionably remains one of the chief causes of the political instability of the world and of the threats to peace which result therefrom, 3 2 ' Henry F. Grady, "World Economics," in Pioneers in World Order," edited by Harriet Eager Davis (New York, 1944), p. 170. 21 requested its Gt~erning Body to consider what steps might be appropriately Il'aken to facilitate, under the League and the International Labour Office, the convocation of one or more conferences "to discuss all the problems concerning currency, production, trade," etc. At its most recent session, held in Philadelphia in the summer of 1944, the conference restated its previous position, adapted to current developments, in a resolution stating that the conference considers that the United Nations should initiate measures to facilitate the co-ordination through appropriate international machinery of the commercial policies of all countries for the purpose of promoting a steady expansion in world trade on a multilateral basis.

International Chamber of Commerce No international organization came forth so early or so strongly in support * ~of measures to free international trade of restricting national encumbrances asa did the International Chamber of Commerce. In 192 1, at a time when no direct reference to the level of tariffs had been made by any important official body except the Portorose Conference, the Congress at London passed a resolution, which reads in paft:

.. While it is recognized that each nation has the right to protect its industries by means of csostariffs against the unequal conditions of foreign production and exchange, The London Congress specifically draws the attention of the various Governments to the importance of making such tariffs moderate; in order to avoid the erection between peoples of barriers which are obstacles to peace and the progress of civilization. At about this same time, the Chamber undertook to create an International Court of Commercial Arbitration to provide for conciliation and arbitration that would suit the needs and traditions of traders from various countries. The Protocol, worked out by the League Economic Committee, was approved by the League Assembly in September 1923, and went into effect in July 1924. The International Chamber of Commerce played an important part in the preparations for the World Economic Conference of 1927. A year before the conference was to convene, its Trade Barriers Committee submitted a Prelimi- nary Report, which reads in part: The Trade Barriers Committee ... strongly recommends the creation, under the auspices of the League of Nations, of a permanent conference in whkch representatives of the Govern- ments would have the opportunity of meeting regularly, of constantly studying the condition and needs of international trade, as well as the best remedies for existing difficulties; in which the representatives of Governments would be able to draft treaties' to satisfy these needs, and arbitrate disputes arising out of the interpretation of treaties already in force .... 33f The report, as submitted in final form, had been revised to read: "The Trade 3 4 Barriers Committee ...suggests the creation .. . of a permanent Commission." Again the organization was ahead of the times, and the suggestion was not even considered at the conference. 33 * League of Nations, InternationalEconomic Conference, Cgeneva, May 4th, 1927: Report of the Trade Barriers Committee of the InternationalChamber of Commerce (League Doc. C. E, 1. 5, Geneva, 1926), p. 5% 3 4 League Doc. C. E. 1. 5. (1), Geneva, 1927. 22

I Two months after the 1927 conference had adjourned, the Stockholm Con- gress~of the Chamber recommended that the recommendations of the conference "should receive the support not merely of the international world of business as represented at this Congress, but also of the Governments of all nations." At its Vienna Congress (May-June 1933), the Chamber voiced support for the program submitted by the Preparatory Committee for the coming World Economic Conference of 1933. The most important contribution of the International Chamber of Commerce, however, was the study of international economic problems undertaken in collaboration with the Carnegie'Endowment for International Peace. A resolution passed at the eighth Congress, held in Paris June 24-29, 1935, provided a- basis for the joint effort.

Carnegie Endowment for International Peace Three months prior to the passage of the afore-mentioned declaration by the International Chamber of Commerce,,the Carnegie Endowmient for Interna- tional Peace had passed a resolution calling for a joint Committee of the Car- negie Endowment-International Chamber of Commerce to make an "exhaustive survey and study of the principal aspects of internationzil economic relations." On March 5-7, 1935, under the auspices of the Carnegie Endowment, 62 delegates from ten countries had met at Chatham House, London, for an Interna- tional Economic Conference. The recommendations there adopted indicate the nature of the problems that the proposed joint Committee was to consider. In part they read:

The conference draws the attention of governments to the desirability of forming low tariff or free trade unions on the model of the Ouchy Convention to which any nation which did not originally join might afterwards adhere on the same terms. In this connection attention is also directed to the treaty drafted at the Montevideo, Pan- American Conference, -with special reference to the most-favored-nation clause.3 5 The Joint Committee was headed by Dr. Nicholas Murray Butler, President of the Carnegie Endowment, and Dr. F. H. Fentener van Vlissingen, President of the International Chamber of Commerce; and its ten members included per- ,sons from Great Britain, France, Poland, Germany, Belgium, the United States;- Japan, Italy, and Sweden. Meeting for the first time on October 8, 1935, the joint Committee named a Committee of Experts to prepare the technical basis on which it would base its later opinions and recommendations. At a second meeting, on November 16, 193 5, it was decided to limit the scope of the inVesti- gation to two problems:

1. The improvement of commercial relations between nations and particularly the conditions under which it may reasonably be expected that existing barriers of trade can be lowered including a study of the technique by which this end can be most effectively reached.

35 lnternationaiConciliation, No. 311, June 1935, p. 323, 23 2.ýThe improvement of monetary relations between nations and more particularly the 3 6 conditions under which a satisfactory currency stability can be attained internationally. The statement took cognizance of that portion of the Chatham House recommendations which stated: "Fundamentally, international, economic, and financial problems depend for their solution upon the preservation of peace and the restoration of political confidence and security,37 for it is concluded with the words: "Any solution found for these [trade and monetary] problems would not only greatly help towards political pacification and economic recovery, but would make a solution of the other problems ipso facto the easier."138 At the November 16 meeting, the joint Committee called for a group of six experts to establish the general program for the investigation and to furnish the basis on which the joint Committee would, in the last analysis, base its opinions and recommendations. As soon as work was started, it was decided to consult a group of well-known economists especially qualified to deal with international questions. The eleven economists selected were requested to reply to a list of definite questions addressed to them. Work progressed so rapidly that on June 25, 1936, the Committee of Experts met in final session to complete the work on a draft of its practical conclusions. Less than two months later, on Augu.st 4, 193 6, the joint Committee met at the Secretariat in Paris and adopted the following "Practical Recommendations":" 1. The conclusion ofomultilateral agreements, open to "all comers", stimulating international trade. 2. Pending the development of a situation favorable to such negotiations, the conclusion of bilateral treaties consciously used as an instrument for the demobilization of trade barriers. 3. The deliberate inclusion in all such treaties of the most-favored-nation clause as a means to realize that purpose. 4. The general use of the most-favored-nation clause in its unconditional form, with a possible exception in the case of countries which even after the restoration of more orderly currency conditions would continue to practise discriminatory quotas or foreign exchange regulations (see also No. 10). 5. The establishment of an international centre which shall compile indices for measuring the comparative incidence of protection in the various countries, in order to encourage the 4 reduction of excessive barriers to trade. 6. The abolition, preferably by multilateral agreement, of import quotas, as soon as the way to a definite recovery of world- trade has been paved by appropriate monetary and other measures. 7. An acceleration of this process by the substitution of "tariff" quotas for "import" quotas during a transitory period. 3 6 Nicholas Murray Butler, "Preface," in joint Committee Carnegie Endowment-Inter- national Chamber of Commerce, International Economic Reconstruction: An Economists' and Businessmen's Survey of the Main Problems of Today (Paris, 1936), p. 8. This is Vol. IIT of the report and contains: (1) a report by Professor Bertil G. Ohlin, (2) a personal survey of the memoranda contained in Vol.1I by Professor T. E. Gregory; and (3) the Practical Conclusions of the Committee of Experts attached to the Joint Committee. Volume I is entitled The Improvement of Commercial Relations between Nations., The Problem oj Monetary Stabilization, and contains memoranda by the Committee of Experts and the economists3 7 consulted by the Joint Committee. 0 lnternation Conciliation, No. 311, June 1935, pp. 323. 3 8Nicholas Murray Butler, loc. cit. 39 The text here given is that adopted by the Council of the Chamber of Commerce at its Paris meeting on October 16, 1936. The eleventh recommendation had been modified after the stabilization accord of September 1936. For the original text, see InternationalEconomic Reconstruction,pp. 227-28. ~24 8. An orientation of commercial policy towards a limitation of the use of import quotas to purposes of temporary expediency, thus facilitating the establishmefit of a time-limit for their removal. 9. The application to the quota system of a "fair play code," as laid down by the Inter- national Chamber of Commerce.I 10. The conclusion of regional and restricted collective pacts-as long as the purpose and results thereof are the increase of trade and the appeasement of nations. 11. The progressive establishment of the correct relation of national currencies which no longer represent a fair parity, taking into account the position of balance of payments, relative costs and prices, and the domestic debt structure. Such an adjustment should be encouraged by an assurance, on lines established by the international accord of September 26, 1936, given by countries in a financially strong position to countries contemplating devaluation. 12. A joint declaration on monetary policy by the leading world powers covering the following points: the avoidance of currency depreciation as an instrument'of international trade competition; the preservation and extension of the stability of rates if once adjusted to the necessities of the situation of each particular country; the elimination of seasonal variations in the value of currencies; recognition of the desirability for a transition to a more permanent regime without undue delay. 13. Thý progressive abolition of exchange and clearing regimes in the measure that it has been possible to solve the problems of international indebtedness, to resume international lending, and to restrain uncontrolled flights of capital (e.g. by standstill agreements). These thirteen recommendations were approved at the meeting of the Council of the International Chamber of Commerce in Paris, held on October 16, 1936. On December 14, 1936, they were presented for consideration at the semi- annual meeting in New York of the Board of Trustees of the Carnegie Endow- ment for International Peace. During the past eight years, the International Chamber of Commerce has become relatively inactive. The Carnegie Endowment for International Peace, on the other hand, has extended its constructive activities to include the publication of monographs issued during the last two years in co-operation with the Committee on International Economic Policy.

Van Zeeland Report .In April 1937, while still the Belgian Prime Minister, Dr. Paul van Zeeland was asked by the British and French governments to inquire "into the possibility of obtaining a general reduction of quotas and of other obstacles to international trade." Taking his point of departure from the practical and constructive' suggestions made previously by the League40 and other organizations, van Zeeland decided to concentrate on three factors that seriously prejudice international trade, namely, tariffs, indirect protection, and quotas. The recommendations of his report, published in January 193 8, may be summarized as follows: *1. A general agreement should be concluded between governments not to raise the existing duties, not to impose new ones, and to reduce exceptionally high tariffs gradually. Reciprocal commercial agreements should be based on most-favored-nation. treatment, with allowances for certain exceptions. 4 0 Consult League Doc. A. 27. 1937. IL. B., Geneva, 1937; see also Eugene Staley, Raw Materiasin Peace and War (Council on Foreign Relations, New York, 1937). 25 2. "Indirect protectionism" should be suppressed. In case of disputes recourse should be to arbitral bodies such as that provided by the League in 1932. 3.Industrial quotas should be suppressed and replaced, if necessary by tariffs or "tariff quotas." Agricultural quotas should be abolished, and if that is impossible enlarged. In the diine months spent investigating the problem in the principal capi- tals including Washington, van Zeeland. reported tha~t he found "not one dis- cordant voice"-as regards "the principle of collaboration in order to reduce the obstacles to international economic relations," and that the attitude "took the form of an active interest in an effort the results of which could not fail to be beneficial." But -he found "that when once the first and eminently favorable stage has been passed, the attitude, almost everywhere, became qualified by a I P1 very marked reserve. It seemed that nobody wanted to commit himself to advance in any direction, before being certain that the path had been taken, or 4 that at any rate it had been mapped out, by several others." ' Hence, it is not surprising that the closing paragraphs of his report contain the following statement: The moment has thus perhaps arrived to propose the conclusion of a "pact of economic collaboration" embracing the largest possible number of States, and in any case open to all. This pact might perhaps, drawing inspiration from a precedent which has proved successful, take the form of a collection of joint declarations. The object of the pact would be to assist the participants to raise the standard of living of their nations by improving the general well-being. It would contain two parts, one negative, by which the participating countries would bind themselves to abstain from a certain number of practices contrary to the interests of the community of participants; the other positive, but general in its natur6, by which the patcptn onre ol idthem selves one toward the other to take up and to examine in a spirit of understanding and 42 - ~ mutual assistance the problems and difficulties arising in their relations. Latin American Conferences The first Inter-American Conference to give much attention to international trade was the Seventh, held at Montevideo in December 1933, when it resolved: * that the Governments of the American Republics will promptly undertake . . . to reduce the * high trade barriers through the negotiation of comprehensive bilateral reciprocity treaties based on mutual concessions. ... Agreements entered into shall include the most-favored- nation clause. the establishment of -a permanent international agency which shall closely observe the steps taken by each of them in effecting reductions of trade barriers and which shall upon request furnish information to them regarding the progress made by each in 4 3 effectuating the aforesaid program. The Inter-American Conference for the Maintenance of Peace, held at. Buenos Aires in December 1936 and convened apart from the regular series of international conferences of American states, reaffirmed the principles of the Montevideo meeting. The Eighth inter-American Conference at Lima, December 9-2 7, 193 8, held that the volume of international trade could not be developed so long as excessive barriers existed in the form of (a) unreasonably high tariffs; (b) quotas,

4llnternational Conciliation,No. 338, March 1938, p. 85. 2 4 1bid., p. 107. 4 3 For resolutions adopted at Latin American conferences discussed herein, see Interna- tional Conciliation, No. 300, May 1934; No. 328, March 1937; and No. 349, April 1939. *26 licenses, exchange controls, and other forms of quantitative restriction; and (c) discriminations of all kinds. After pointing out that such obstacles to trade U'create unemployment, lower standards of living, limit opportunities for economic advancement, obstruct the fulfillment of broad social programs, divert trade into uneconomic channels and tend to create international friction and ill will, the conference resolved: 1. To reaffirm the declarations of the Seventh International Conference of American States at Montevideo and the Conference for the Maintenance of Peace at Buenos Aires calling upon the American Governments to reduce, to the greatest extent found possible, all existfing types of restrictions upon international trade 2. To endorse the negotiation of trade agreements, embodying the principle of equality of treatment, as the most beneficial and effective method of extending and facilitating international trade....I This resolution concludes with recommendationls for carrying out the program of freeing trade from unnecessary barriers. .At the Buenos Aires and Lima conferences, provision waS made for consultation of the American republics "in the event of an international war outside of America which might menace the peace of the American republics." The first such meeting, called a "Meeting of the Foreign Ministers of the American Republics," was held at Panama in September-October 193.9. At that time an Inter-American Financial and IEcononiic Advisory Committee consisting of 21 members was set up, which discussed also problems of international trade. The Third Meeting of the Ministers of Foreign Affairs of the American Re- publics (Brazil, January 15-28, 1942) intrusted the Inter-American Juridicial Committee "with the formulaiion of specific recommendations relative to the international organization in the juridicial and political fields, and in the field of international security.""4 The Juridicial Committee drew up "Preliminary Recommendation on Post War Problems," which were submitted in September 1942 to the governments of the American republics by the Governing Board of the Pan American Union. One paragraph reads: Nations must make every eff ort to lower tariff barriers and remove other restrictions upon commerce, and to increase as far as possible the free and full exchange of articles and services among the members of the international community, so as to lessen as far as possible the inequalities of natural resources and to promote the mutual well-being of their respective 43 peoples. The recent meeting of American republics at Mexico City (March 1945) was. not primarily concerned with economic problems. However, a significant resolution was passed in favor of A constructive basis for the sound economic development of the Americas through the development of natural resources, industrialization, improvement of transportation, modern- ization of agriculture, development of power facilities and public works, the encouragement of investment of private capital, managerial capacity and technical skill; and the improvement of labor standards and working conditions, including collective bargaining, all leading to a rising level of living and increased consumption...

4 4 For resolutions passed at meetings of Foreign Ministers, see International Conciliation, No. 356, January 1940; No. 362, September 1940; No. 378, March 1942. 4 5Mimeographed report (Pan American Union, Washington, 1942), p. 22. .27 Dr. L. S. Rowe, director general of the Pan American Union, stated his position to the writer during the UNCIO conference: The liberalization of international trade and the removal of the many obstacles which today obstruct channels are indispensable requisites not only for the safeguarding of national prosperity in all countries of the world but also for the maintenance of international co- A operation and the fostering of that spirit of mutual service without which world peace cannot be made secure. We must labor in order to eliminate the essentially false idea that international trade carried with it any element of national antagonism. On the contrary, it is upon the bases of such trade that real, effective international cooperation can best be developed.

I Reciprocal Trade Agreements 13 The resolution calling for reduction of trade barriers adopted at Montevideo in December 1933 foreshadowed the United States Trade Agreements Program. The Trade Agreements Act, passed by Congress on May 12, 1934, marked a point of departure from the hitherto jealously guarded tariff autonomy that had been the core of American commercial policy. This legislation gave the President the power, "whenever he finds . .. that existing duties or other import restrictions of the United States or any foreign country are unduly burdening and restricting the foreign trade of the United States," to negotiate executive agree- menits fur the reciprocal reduction of these restrictions. However, no duty could be decreased by more than 50 per cent under that embodied in the Smoot- Hawley tariff act of 1930 and no agreement could transfer an article from a dutiable to a free list. Agreements under the act were to be based on uncondi- * tional most-favored-nation treatment. Administered under the careful supervision of Secretary of State Cordell Hull, the program met with stiiking success. During the first three years commercial treaties were concluded with Belgium, Brazil, Canada, Colombia, Cuba, Finland, Haiti, British Honduras, the Netherlands, and Sweden. Congressional renewal of the provisions necessary for carrying out the program is undoubtedly 4 due, in large part, to high regard for Cordell Hull. In his last special message to Congress, President Roosevelt called for legis- I' lative action extending the trade agreements program. He endorsed pending legislation in the form of the Doughton Bill (H.R. 2562). The proposed measure, in addition to extending the trade agreements program for three years beyond its June 1945 expiration date, proposes to give the President power to lower the tariff rates prevailing on January 1 of this year by' SO per cent. In some cases, the additional cut would mean a maximum reduction of 75 per cent below the 1930 rates. In asking for the new provisions for tariff reduction, the President disclosed that his authority for 50 per cent reduction had been exhausted in trade agreements with some countries, principally Canada and Great Britain, "our best customers." "Under the present act," he said, "we do not have enough to offer these countries to serve as a basis for the further concessions we want from them." The same situation exists, to a lesser degree, with France, the Nether- 28 lands, Belgium, Ttirkey, Sweden, Switzerland, and some of the American republics. Opposition was immediately encountered, when certain influential Republi- can members of Congress declared that "lower tariffs mean closed American industries and the postwar goal of 60,000,000 jobs won't be attained; the reciprocal trade program never has been actually reciprocal, and si~ells unemployment." When President Harry S. Truman took office, he announced that he would support the Reciprocal Trade Agreements program, but it is already clear that here the new president faces a tough battle. Since the Republican party has a high tariff tradition, it is worthwhile to quote statements of two outstanding party leaders. Wendell Willkie pointed out that this country must take positive steps to revive the world economically by opening up international trade and that failure along this line will force other nations along the road to totalitarianism. He declared that the solution of international economic problems is as indispensable for future peace and security as the solution of political and military problems. To this end the Republican Party should propose that through the United Nations Council an attempt should he made to reach general agreement on a clear and uniform code for international economic relations. Likewise the Republican Party should propose that the United States proceed to get rid of the complexities and absurdities of our present tariff. Of course we cannot and should. not go overnight from extreme tariff protection to free trade. Nor does any sensible person advocate this. But many tariff items could be swept away in the readjustments which will occur after the war without substantial injury to any American industry and with great gain to the consuming public. And many more could be lowered by effective and mutually 46 beneficial reciprocal agreements.

Ex-President Herbert Hoover has written: .. The tariffs will be a harder nut to crack than the other barriers.The most practical thing to do is probably to place tariffs on a basis of reasonable competition between imports and domestic production and, above all, have them equal to all nations. That was first attempted in the United States through the flexible tariff provisions based upon relative cost of production at home and abroad and determined by a non-political body. If every country adopted such principles, the worst of the tariff question would disappear. For world recovery and world good will, tariffs certainly require two restraints: first, that they be equal to all nations; second, that they he no higher than will preserve fair competition of imports with domestic production. Furthermore, both experience and comi~non sense declare that all forms of trade barriers .. must have a vigorous overhauling in the next peace. Certainly, if there is to be relief from trade barriers, there must be equal rights and no discrimination between nations and no *arrangements should be permitted that are not open equally to all nations.4 7

Current Proposals for International Bodies Mention has already been mnade (1) of Mr. Huston Thompson's proposal for a World Trade Tribunal, (2) of the suggestion for a "permanent conference" or "commission" for studying the condition and needs of international trade, submitted by the International Chamber of Commerce preparatory to the World 46Wendell 47 Willkie, An American Program (New York, 1944), pp. 20-21, Herbert Hoover and Hugh Gibson, The Problems of Lasting Peace (New York, 1942), pp. 218-19. 29 Economic Conference of 1927, and (3) of the "permanent international agency" to effect reductions in trade barriers proposed at Montevideo. These are mainly of historical interest. *InDr. P. E. Corbett's plan for a World Commonwealth, this Canadian legal expert calls for an Economic and Financial Organization to consist of a number of specific agencies, one of which he calls a Trade Commission. This organization should be * instructed to secure the removal of quotas and other direct restrictions on trade and the * reduction of tariffs. No further direct restrictions should be iniposed, and no customs duties raised, without the consent of this body. It should also be given control of the activities of the international cartels which regulate the production and marketing of commodities like rubber, tin, copper, steel and oil. The fault commonly found with these associations is that they consider only the producer interest; and a proposal accepted by some economists, though scouted by others as f utile, is that governmental and consumer representation on their directing boards should be made compulsory. Whether by this device or another, the cartels, proved their efficiency as instruments of international collaboration, should be which have 4 taken into the supranational organization and used in the general interest.

Mr. Otto T. Mallery has advanced a plan for his World Trade Board which he thinks is necessary "unless the economic warfare of the last decade is to be accepted as a permanent world policy." The proposed organization would perform functions similar to those of the United States Federal Trade Commis- sion,49 but on an international basis. International commodity agreements in * such raw materials as wheat, cotton, coffee, tin, rubber, and copper would have to be registered and supervised by the Board.50 * ~In a recent pamphlet, Sir Edgar R. Jones5 outlines his plan for a World Trade Alliance through which the United Nations could carry on their war against economic tyranny. As proposed, this organization would provide for the regulation of the distribution of the main export products of all countries, so as to ensure a satisfactory state of general employment, avoidance of want and poverty, and a steady uplifting of the standards of living. The international organization of distribution provides for expansion or restriction of production and employment.

The most carefully worked out plan for an international trade organization is Dr. Percy W. Bidwell's United Nations Trade Commission. In 1938 Bidwell [3 was a member of a committee of American experts who, in a report to the National Peace Conference, advocated the formation of an International Com- mercial Organization, which should have the power to "promote mutually beneficial trade between nations, . . . and to propose international conventions for ratification by governments as does the International Labour Organization.

45Post-War Worlds (Institute of Pacific Relations, New York, 1942), p. 133. 49The Federal Trade Commission is an independent establishment created in 1914, whose -principal duties are to prevent unfair methods of competition, to compile and investigate the economic facts concerning corporations engaged'in interstate commerce, and to supervise the export trade associations formed under the Export Trade Act. See W. Stull Holt, The Federal Trade Commission (New York, 1922). * Offconomic Union and Durable Peace (New York, 1943), pp. 126-37; also the same author's."The Coming Wprld Trade Conference," International Conciliation, No. 406, De- cember 1944. 51World Trade Alliance (World Trade Alliance Association, London, 1944). 30 It should be an independent organization, open to the membership of nations 53 unwilling to assume the political obligations of the League." Bidwell elaborated somewhat on his plan for an international organization for controlling trade in an article, "Controlling Trade after the War," published in Foreign -Affairs for Jailuary 1943:' In a recent publication, he advocates a multilateral convention to formulate agreements directed toward uniformity on national policies dealing with the following: customs formalities, import and export prohibitions, licensing systems and quotas, the application of the prin- sciple of equal treatment,' dumping and unfair competition in international trade, oprotective duties on imports and exports, intergovernmental commodity agreements, and international cartels.54 Steps should be taken also to reach agreement on policies regulating trade "between private-enterprise countries and those with planned economies." To make the aforementioned agreements 'effective, he proposed a governing board, which he chooses to call the United Nations Trade Commission. The duties and functions of the Commission would consist mainly of research and administrative functions, although it would also exercise consultative, advisory, standard-making, and executive duties. The research activities of the Commis- sion should be expafided considerably beyond those performed by the Economic and Financial Section of the League of Nations, which has always been handi- capped by lack of Qrganization and staff (the League never had more than six people working on commercial policy). The proposed administrative duties, Bidwell summarizes as follows: (a) To provide information to member countries regarding the implementation and observance of the convention by other member countries; (b) To afford a consistent source of interpretation of the provisions of the convention by Ithe application of stated criteria; (c) To provid(g a mechanism for the consideration of complaints, the adjustment of differences and for appropriate action in cases of violation of the convention; (d) To grant in emergencies, or to recommend to the general international organization, temporary exemptions from the provisions of the convention; (e) To recommend to member. countries any amendments which experience shows to be desirable. Another member of the committee that suggested an International Commer- cial Organization for the National Peace Conference of 1938 has enlarged upon the plan and brought it into focus with plans adopted at Bretton Woods. Dr. Alvin H. Hansen has proposed an international Trade Authority which, within *the framework o~f the United Nations organization, "will always be on the job to promote the freest possible development of world trade." The functions of the authority he describes as follows:

53 National Peace Conference, Report of the Committee of Experts to the Conference on World Economic Co-operation (New York, 1938), p. 18. Other members of the committee were John S. Dickey, Frederick S. Dunn, Harry D. Gideonse, Alvin H. Hansen, trnest Minor Patterson, James T. Shotwell, Eugene Staley, Jacob Viner, Robert J. Watt, and Quincy Wright. 54 A Commercial Policy for the United Nations. (published by the Committee on Inter- national Economic Policy in cooperation with the Carnegie Endowment for International Peace, New York, February 7, 1945). 31 I,The member countries joining the Authority should agree to report any prospective changes in import or export duties or other trade practices, such as import or export licensing, import or export quotas, before putting any of these measures into effect. The member countries should agree that the proposed changes should not he put into operation within a reasonable period during which the Authority would have an opportunity to investigate the proposals. The Authority should study the proposals from the-point of view of whether the suggested changes in trade policy would threaten to disrupt international trade or have important adverse economic effects upon other countries and upon world prosperity in general. * The Authority should he empowered to collect full evidence relating to such proposed changes and to make a -report of its findings. This report should go to the country proposing the changes and should make a recommendation with respect to modification or abandonment.55 I * Other economists are in agreement on the urgent need for international action directed toward a freer international trade. Dr. Jacob Viner, in a League of Nations publication, stated that an international trade conference might seek to obtain a multilateral agreement binding participating countries on the following "appropriate objectives'': I(1)To move toward elimination of direct controls of a mutually-agreed time-schedule; (2) To define practices which would not he permissible in the trade relations between participating countries; (3) To formulate the procedures to he followed in common in trade relations with non- participating countries adhering to direct controls; and (4) To participate in the setting-up of a continuing international agency, to which questions of violation of the convention, of needed revision of its terms, and of admission of new countries could be referred. 5 6 Dr. J. B. Condliffe advises the "creation of international economic institutions for consultation and co-ordination, and ultimately for common supranational action." The two institutions of concern here are an International Tariff Commission to "ýhave the power to review, and if need be, veto changes in niational tariffs, the sanction for defiance of its verdict being withdrawal of most- favored-nation treatment; and an International Monetary Authority, with the authority "to alter exchange rates." Condliffe, however, dwells somewhat more than other economists on the pitfalls of regulation, and warns that unless the "controls projected after this war are designed to lead back toward freer competition among producing areas and among competing products, international trade may quickly come to be conducted by political rather than economic bargaining." 57 Speaking in Stockholm, prior to the announcement of the results at Dum- barton Oaks, Professor Gunnar Myrdal, chairman of, the Swedish Postwar Plan- ning Commission, was pessimistic over the failure "to reach agreements regarding international trade," and warned that "the way in which the great powers plan for postwar trade and shipping does not indicate that they are aware of the

5 5 5 6Alvin H. Hansen, America's Role in the World Economy (New York, 1945), p. 95. Trade Relations between Free-Market and Controlled Economies (League Doc. 1943. If. A. 4, Geneva, 1943), p. 88. 573. B. Condlifte, Agenda for a Postwar World (New York, 1942), pp. 217-18; see also Condliffe's The Reconstruction of World Trade (New York, 1940) ; and The Common Interest in International Economic Organization (with A. Stevenson, International Labour Office, Montreal, 1944). *32 danger of a general development towards self-sufficiency." The problem of international trade, he stressed, "is even more fundamental than the monetary one." 58 The British economist J. E. Meade, writing at the beginning of the present war, supported the thesis that an international trade authority is highly desir-. able, if not an absolute necessity, in solving the trade problems of the postwar world .5 Dr. Eugene Staley has stressed the need for international collaboration in the period immediately following peace. At the Conference on North American Re- ltosin September 1941, he said that "the reduction of trade barriers through trade treaties and agreements or otherwise" will be one of the most important means of encouraging the flow of international trade.60 In a more recent study, Staley takes up a trade problem that Roosevelt and Churchill thought important enough to include in th~e Atlantic Charter, namely, access to raw materials. He points out not only the desirability of allowing all nations access to the raw materials of the world but also the interrelated problems of production, industry, and labor that will be involved. He wrote, the real means of increasing the access of all peoples to the raw material resources of the world, thereby increasing the chances of maintaining future peace, is through a lowering of trade barriers, coupled with general economic expansion. Yet trade barriers cannot be lowered without causing some shifts in the employment of labor and capital in countries that agree to lower barriers. One of the effects of protective import duties and of protective quotas and exchange controls is to distort the production structure of the countries applying them. ..If the protective barriers are then removed, a second shift in production structure must take place before the benefits of freer trade can really be had. The hitherto protected industries must shrink to some extent, and new opportunities for expansion 'appear in the export industries. An adaptation policy which facilitates the shifting of resources out of the former- and into the latter groups of industries will assist, therefore, in removing the complaints 6 about inequality of access to the world's resources. '

Current Commitments There is a considerable documentary basis on which the nations now in con- f erence can work in their eff orts to free international trade f rom. unnecessary and universal national restrictions. The Atlantic Charter, signed on August 14, 1941 by President Roosevelt and Prime Minister Churchill, has three paragraphs pertaining to the problem: Fourth, they will endeavor, with due respect for their existing obligations, to further the enjoyment by all states, great or small, victor or vatnquished, or access, on equal terms, to the trade and to the raw materials of the world which are needed for their economic prosperity;I Fifth, they desire to bring about the fullest collaboration between all nations in the eco- 5 8Journal of Commerce, Oct. 19, 1944. 59Sae J. E. Meade and C. J. Hitch, An Introduction to Economic Analysis and Policy (New York and London, 1938), especially pp. 397-400; and the former's The Economic Basis of a0 Durable Peace (New York and London, 1940), especially pp. 74-100. 6 Wartime and Peacetime Economic Collaboration (Doc. No. 3 of Conference oný North American Relations, Prout's Neck, Maine, September 1941. Distributed by Committee for International61 Studies, Princeton, N. J., mimeographed). ffugene Staley, World Development: Effects on Advanced Industrial Countries ý(Inter- national Labour Office, Montreal, 1944), p. 180. .33-. nomic field with the object of securing, for all, improved labor standards, economic advance- mont, and social security; 'Seventh, such a peace should enable all men to traverse the high seas and oceans without hindrance;

Article VII of the Mutual-Aid Agreements, signed by the United States and Russia on June 11, 1942, commits the two countries to the elimination of all* forms of discriminatory treatment in inter national commerce, and to the reduction of tariffs and other trade barriers and in general, to the attainment of all the economic objectives set forth-in the joint declaration made on August 14, 1941, by the President of the United States of America and the Prime Minister of the United Kingdom... At an early convenient date, conversations shall be begun between tbe two governments with a view to determining, in the light of governing economic conditions, the best means of attaining the above-stated objectives by their own agreed action and of seeking the agreed action of other like-minded governments. A dlause similar to Article VII is embodied in the Mutual Aid Agreements which the United States has signed with other countries important in foreign trade including Australia, Belgium, Canada, China, Czechoslovakia, France, Greece, the Netherlands, New Zealand, Norway, Poland, United Kingdom, and Yugoslavia. The International Monetary and Financial Conference held at Bretton Woods in July 1944 proposed the setting up of an International Bank for Recon- struction and Development, as one of the instruments desirable for the promotion of a vigorous and expanding international trade. Recognizing the fact that a balanced growth of international trade cannot be achieved through monetary and financial plans alone, the conference recommended that the participating governments should create the trade conditions necessary for the attainment of this goal. * The Dumbarton Oaks Agreement, completed in October 1944, provides that: The Economic and Social Council should set up an economic commission, a social commission, and such other commissions as may be required. These commissions should consist of experts. There should be a permanent staff which should constitute a part of the Secre- tariat of the Organization.

These form a documentary basis for the proposed international economic organization, which it is hoped will evolve from current negotiations. One possibility is that an interim economic organization similar to the United Nations Food and Agriculture Organization will be set up to serve until the permanent economic organization can be ratified by all the powers. From recent repeated stateikents of leading government officials of various countries, it is obvious that international trade will occupy an important place in any discussion of the economic problems that confront the world. One should remember that the statements of governments, government officials, and political parties naturally have a strong political tinge. To be understood in a proper light, each statement should be considered in light of the immediate world and national situation, and should be dated. Even then, there is always a qualification, for it may be that the pronouncement is a "feeler," and

.34. may represent a compromise. Furthermore, no statement is acceptable to all literate and illiterate inhabitants, even when they are sufficiently well-informed to have an opinion. Dean Acheson, Assistant Secretary of State, and Chairman of the Interde- partmental Executive Committee on Postwar Economic Policies, gave the House 'Subcommittee on Foreign Trade and Shipping the first comprehensive picture from official sources. The nine-point program of recommended or suggested action included two points that concern trade: t 6. An international trade conference "at the earliest practicable date for the reduction of all kinds of barriers to trade." The resulting agreement would be submitted to Congress for approval. 7. Creation of "an international trade organization to study international trade problems and to recommend practicable solutions."16 2 Speaking at New York before the Council on Foreign Relations on April 4, 1945, Secretary of State Stettinius said that "we shall do all in our power" to convene a conference of the world's principal trading nations at a meeting which would "prepare the way for establishment of a permanent trade organization within the framework of the world organization." After pointing out that the high tariffs in effect today have a depressing influence on the American standard of living, he declared that only by calling a conference of the principal nations could these and other problems~of international and domestic economy be met. He called for repeal of the Johnson Act, and approval of the Bretton Woods financial agreements and of the Reciprocal Trade Agreements program as embodied in the Doughton Bill. 63 Never was there such unanimity in the United States among the leading public officials. Presidents Roosevelt and Truman, Cordell Hull, and spokesman for the federal agencies most concerned have maintained the same liberal trade viewpoint. Thus Secretary of Commerce Wallace, testifying before the House Ways and Means Committee, two days before the UNCIO opened, stated: "I consider that the extensions of the Trade Agreements Act, with the increased authority provided in the Doughton bill, is the one essential requisite to the achivement of this expanding foreign trade" (Journal of Commerce, April 24, 1945). Yet there are pronounced differences of opinion between Democratic and Republi- can leaders, even as in the expressed declarations of rival parties in other non- totalitarian countries.

The official British position (British In formation Services, April 1945) is as follows: joint plans to increase the flow of trade will be fully supported by Britain. She will increase exports not at anyone else's expense but as part of a world-wide increase df trade. A prosperous Britain is a key factor in world trade because Britain can contribute, greatly to a high level of employment throughout the world by means of her vast purchases. In turn, increased standards of living throughout the world will mean- that Britain will be able to find ready purchasers for her exported goods. 62New York Times, 63 Dec. 1, 1944. S'an Francisco Chronicle, April 5, 1945. .35 Canada also is desirous of increasing her trade and that of the entire world. In the prorogation of Parliament on January 31, 1945, her Governor General, the Earl of Athone, announced: World security is the basis of lasting prosperity and of social security. Prosperity, like security, cannot be the possession of any nation in isolation. Prosperity, likewise, demands international co-operation. Canada's prosperity and the well-being of our people are bound up with the restoration and expansion of world trade. To the efficient employment of vast numbers of Canadians, export markets are essential. Similarly, to raise the standard of living, larger imports are needed. In this belief the Government has continued, in accordance with the principles of the Atlantic Charter, to explore with other countries the means by which, after the war, international trade may be-revived and developed. Peace can only be lasting through co-operative action on the part of the peace loving nations. ... [We] believe that the nations now united in the common purpose of winning the * war, should seek unitedly to ensure an enduring peace. To tbis end, Canada has sought to make a positive contribution. A statement made by the Australian delegation at the Bretton Woods conference. (July 1944) pointed out that the "machinery" for the promotion of international trade (plans and agreements for reducing trade barriers and monetary agreements) will not of themselves solve the problem, because. they cannot create demand. The crux of the matter is employment. The delegation, therefore, expressed a desire to see governments accept the obligation to maintain employment, adding: * It has been objected that domestic policies of employment are the sovereign concern oX nations and should not be made the subject of international agreement. But the, currency of a country and its tariff policy are just as much matters of sovereignty. If international agree- ? ments are not to interfere with the sovereignty of nations, no agreements whatever are possible. F Another of the "Big Four" nations has taken a firm stand in favor of international co-operation for the promotion of trade. The chairman of the Chinese delegation to the International Business Conference at Rye, K. P. Chen, issued a statement of which the following is an excerpt: the Chinese business men believe in world-wide reduction of trade barriers as a prerequisite to the development of future world trade and an effective means to promote world harmony. While monetary co-operation as embodied in the Bretton Woods agreements is. one way to remove some oif the worst forms of trade barriers, a successful removal of all other barriers through the joint effort of all nations is equally important. Although the views expressed were those of private business, it was pointed out that they were in general harmony with present policies of the Chinese Government. The trade position of the USSR has not been generally understood, so it may help to cite Valery J. Tereshtenko, principal area analyst of the Eastern Euro- pean Branch of UNRRA and member of the graduate school faculty, United States Department of Agriculture. Writing in Soviet Russia Today (February 1943), he stated: The "philosophy" behind the Soviet system of foreign trade is rather simple: it makes foreign trade an integral part of the Russian planned economy and establishes a close con- F nectioni between export and import operations. Such integration of foreign trade with the 36 economic life of the co'untry gives the USSR a mighty economic weapon to strengthen both her internal economic system and her international position. Undoubtedly, the Soviet system of foreign trade differs greatly from that prevailing in the rest of the world. However, it provides a number of advantages for those who trade with Russia. They can deal with a buyer and a purchaser whose credit record is unimpaired-no case of default in Soviet trade ever having been reported-whose potential market is as extensive as Russia herself, and whose unlimited natural resources can serve as the best guarantee for payment. The Soviet commitment "not to burden commerce'ý between the United States and Russia, as embodied in Article VII of the Mutual Aid Agreements, has previously been mentioned. * In addition to the four countries sponsoring the UNCTO, others have shown a similar inclination to co-operate on an international basis. The French delegation in San Francisco announced on April 25, 1945 that their country had removed all tariffs and other barriers to international trade. A statement by Qivind *Lorentzen, director of the Norwegian Shipping and Trade Mission (Journal of Commerce, February 13, 1945), illustrates the desire of the Norwegian government for an expanding trade. Norway, he pointed out, imports more per capita than most nations, and she pays for a high percentage of her imports through the shipping industry. The future of British India may be depicted in the words of B. P. Adarkar, reader in economics at Allabad University and managing editor of the Indian Journal of Economics (data paper, Institute of Pacific Relations conference, *Mount Tremblant, Canada, 1942): .. Prima facie, it would appear that there is bound to be a conflict between the desire of the Asiatic countries to develop their own industrial resources and the equally urgent need of the Western nations to develop their export trade. As already pointed out, however, the conflict is more apparent than real, because in so far as such industrialization leads to the enhancement of the purchasing power. of the Asiatic people, it would inevitably mean an increase in the demand for the products of the Western countries. Even in the initial stages, the Asiatic countries will need to draw on the Western nations for large quantities of plant equipment and materials. . .. Given a liberal and progressive outlook in regard to international trade, the Eastern and Western nations can do a great deal to assist the postwar reconstruction of each other. The widely discussed Bombay Plan is an industrial innovation with obvious trade effects. The foregoing indications that many of the principal trading nations are desirous of co-operating with aview to free international trade from unnecessary barriers and thereby to promote its expansion brighten a situation that other- *wise might be quite depressing. In fact, they represent quite a contrast to the situation in 1918, which offers a direct challenge to the delegates assembled in San Francisco. When Dr. James T. Shotwell wrote * Happily, the present situation is one which offers a rare chance-perhaps the only chance in'-All our history-for instituting this policy of international liberation.... What is needed is .. more education of the nation as a whole so that it may escape from the tyranny of economic militarism, which is what we have had in recent years, into a world of ordered freedom, based upon the principle of mutual advantage in increased trade.... 64 he had primarily in mind the United States, but his words are most applicable to the United Nations Conference on International Organization. 4 6 Thze Great Decision (New York, 1944), p. 157. .37 111. Growth of Group Thinking In 1917, when Cordell Hull, then a member of the House of Representatives from Tennessee, introduced into that body a resolution calling upon the Presi- dent to convoke an international trade conference of the important commercial nations for the purpose of establishing "a: permanent international trade-agree- nient congress," his suggestion was so far in advance of the thinking of other governmental officials that it was given little attention by the House and less by the country as a whole. The situation today. stands out in marked contrast. The problems of international trade have been given long and diligent consideration by people and groups representing a wide diversity of interests. As a result, the people of this nation, as well as of other like-minded nations, are not only asking that their representatives turn attention to these problems but also that they do everything in their power to seek a solution. In the United States, Hull's views have received affirmative and wide-spread acceptance by most. public and private groups. To learn the latest stand of important, interested organizations, the writer has tapped available literature and has solicited more complete information by letters sent out in February 1945. Here follow the' replies, in an unedited form; thereby the reader is in a position to learn the expressed beliefs of outstanding United States bodies.

Trade and Industry Trade sentiment in the United States is expressed most often and forcibly principally by the Department of State, the Department of Commerce, Na- tional Foreign Trade Council, U. S. Chamber of Commerce, and chambers of commerce in large cities. This section deals with private trade groups; the official endorsement of trade development is well-known. Chambers of Commerce. The Committee on Economic Reconstruction of the American Section (formerly the American Committee) of the International Chamber of Commerce has -co-operated with the Carnegie Endowment for Inter- national Peace on studies dealing with commercial policy and problems. Perhaps the most important activity of the American Section was its part in sponsoring (with the Chamber of Commerce of the United States, the National Foreign Trade Council, and the National Association of Manufacturers) an International Business Conference at Rye, New York, in November 1944. There delegates from 52 nations approved recommendations for an International Economic Charter, an International Economic Organization, and a Multilateral Trade Convention. The latter, which was to be open to all nations, would ask the contracting parties to pledge themselves: (a) to the progregsive lowering of tariff barriers; (b) to the elimination of import embargoes and quotas; (c) to the adoption of the most-favored-nation clause as a principle to be incorporated in all commercial treaties; (d) to the abandonment of discriminatory trading practices; We to the abandonment of monopolies, which discriminate against foreign producers. K3 The British National Committee of the International Chamber has also been active. In February 1944 a special subcommittee submitted a report p'roviding for the formation of an International Economic Tribunal and "a code of international economic behaviour." This code, like the Rye plan open to all adhering nations, would bind the signatories to fair national treatment of foreign traders, to moderation and stability in tariffs, and to the abolition of discriminatory treatment in commercial policies. Other British trade organizations have been concerned with the same problem. A report entitled Post-War Industrial Reconstruction, issued in May 1942 by the Association of British Chambers of Commerce, asked that early steps be taken "to ensure the closest co-operation between the British Empire, U.S.A., and Russia and all our other allies . .. to provide a more equitable distribution of the food and raw materials provided by more and more orderly control of the world movement of manufactured goods." At the annual meeting in May 1943, its president asserted that the governments of the Dominions, the United States, the USSR, and China should call trade conferences, to which representatives of the industrial, commercial, shipping, and financial interests should be included.

In a report, General Principles of Post-War Economy, submitted in May 1942, the -London Chamber of Commerce set forth some general principles for planning. The portions dealing with trade read:

2. The Chamber submits that constantly raised tariffs, the imposition of quotas and prohibitions, and other signs of growing economic belligerency between the nations in the inter-war period, were not the result of -stupidity nor illwill but were, on the contrary, imposed for most compelling reasons. They represented attempts by the nations to defend themselves against very real and pressing dangers. The Chamber is convinced that until those dangers are recognized and removed, a direct attack upon trade barriers can -serve no useful purpose but will, on the contrary, merely increase fear. In short, trade barriers are not themselves the disease but merely the symptoms of the disease. 10. The London Chamher of Commerce submits that it is now essential, if greater disas- ters are to he avoided, so to change the system as to ensure that international trade shall tend to raise the standard of living of the backward nations to. that of the advanced nations. Inter- national trade must no longer constitute a threat to the standard of living of any nation but, on the contrary, must be used as a means of mutual aid and advantage to those participating"(capturing in it. markets"The outlook must which be changed expresses to itselfone inof suchgood phrases neighborliness. of economic Competition, belligerency both as within a nation and internationally, should remain, hut should be reduced from a life or death struggle to healthy emulation.

The 1944 Report of the Council, as prepared by the Chamber's Special Com- mittee on Post-War Reconstruction (Chamber of Commerce Journal, January 1945) is devoted principally to the Bretton Woods monetary agreement. Para- graph 12 of that report reads:

Article I (ii) states that one of the purposes of the Inter-national Monetary Fund is "To f acilitate the expansion and balanced growth of international trade." An international financial system could, of course, be used for this purpose and, in the Chamber's opinion, it should be so used. In fact, however, the International Monetdry Fund does nothing t6 bring pressure to bear on nations to balance their accounts with the world in terms of goods and .39 services, but its provisions are directed to ensuring a balance in money and yet there cannot, in the song run, be a balance in money unless there is a balance in trade.

The role of the Chamber of Commerce of the United States in the Rye Busi- ness Conference has already been mentioned. In June 1044, the Chamber adopted the "Proposed Declaration of Policy" submitted by the Board of Di- rectors to the organization members, which reads in part: In order that the United Nations and Associated Powers may keep active a constructivo 4 ~postwar program of economic collaboration, there should be mutual understanding, in ad - vance of peace, as to the "rules of the game" in international trade. To encourage other nations to refrain from excessive tariffs such as followed the last war, the United States Government, on its part, should pursue a constructive, liheral, and realistic tariff policy.

The 1943 statement on policy had urged that the government take steps to prevent economic warfare after the close of hostilities, had urged "reasonable protection" for American industries, and had called for the continuance of the Reciprocal Trade Agreements prcigram. If space permitted, it would be possible to quote extensively from countless resolutions and recommendations adopted by various state and local chambers of commerce, trade associations and affiliated groups.

National Foreign Trade Council. Established in 1914 to co-ordinate national efforts toward the promotion and expansion of American trade in foreign markets, the National Foreign Trade Council has a nationwide membership composed of the most prominent industrial and other firms interested in foreign trade. Publications of the 'influential, aggressive organization include studies issued periodically by its Foreign Trade Reconstruction Committee and the highly valuable Proceedings of the annual meetings. The Council, headed by Eugene P. Thomas, has been a consistent advocate of two-way trade.

To the 2,000 delegates assembled in New York for the Thirty-first National- Foreign Trade Convention (October 9-11, 1944), President Roosevelt sent a message stressing that "for our own salvation we in the United States must co-operate with other like-minded nations in setting up a sound and equitable system of commercial and economic relationships among all nations." In agreement with the late President's strong belief, the final declaration of the Con- vention reads in part: When victory has been won, the interest of foreign traders, as of peoples everywhere, will be found in the establishment of a just and lasting peace. The goal of higher living standards and the highest possible level of employment in our land and throughout the world demands9 increased production, increased trade and increased consumption. The goal can only be achieved in a world where peace has been won and made secure... The war has taught us that we are a part of the world in which we live, and that our own economy and the economies of other nations are interlocked and interdependent. A greatly increased volume of international trade is indispensable to support th,e increased production and the complete reconversion to the processes of peace that a healthy world economy demands. *40~ The 1944 Convention approved, the holding of the International Business Conference to be held at Rye, New York, and supported the continuance of the Reciprocal Trade Agreements program, which "is the most effective way yet devised in our history to bring about the reduction of tariff barriers here and abroad and to foster a greater volume of foreign -trade," and recommended that "this country should use all its power in international negotiation to promote *the fullest flow of world trade -through the time-proven channels of private *enterprise.?' -The Convention recommended that a committee be appointed to study the Bretton Woods monetary agreements. In March 1945, the board of directors *of the National Foreign Trade Council adopted a resolution supporting the monetary agreements and at the same time called upon the government to make a direct and comprehensive statement of its policies in the international field, adding that it is equally important that other nations should make a declaration *concerning their policies and programs in the fields of international trade and finance.

National General Export Merchants Group. Formed in 1940 at the request of the British Board of Trade, the National General Export Merchants Group adopted by a substantial majority a report on postwar trade policy. This report, *which was sent to Mr. Harcourt Johnstone, M. P., chairman of the Post-War *Export Trade Committee, Department of Overseas Trade, reads in part: The Group considers that every nation should be encouraged to keep its exports of goods and services to the world in equilibrium with its imports from the world; trade should be multilatera], and claims (i.e., purchasing power) acquired on one country should be capable of exchange for claims on others. This places upon each nation the onus of taking payment in imports for its exports. If a nation found it necessary to increase its imports in order to accept payment for its exports, it could do so by lowering its tariffs, either generally or on sp~ecifi-c articles, or by other means. If it did not do so its claims should lapse over a period of years. It is submitted that trade barriers can be reduced throughout the world in an amicable and satisfactory manner without arousing a great deal of fear and il-will only if each nation is left to make its own tariff reductions when and as it thinks best. This it would do in the knowledge that its credits abroad would lapse after a period of years if it did not facilitate the entry of the required value of imports. It is clearly inequitable that nations should be free to export their goods and demand that payment he made, and yet should be at liberty by raising tariffs to make that payment more difficult or even impossible. New York Board of Trade. The International Trade Section, New York Board of Trade, Inc., has adopted a report of a special committee setting forth *eight principles to promote American international trade, four parts of which read:

* 1, The International Trade Section, New York Board of Trade, believes in a private and free enterprise system as necessary for the successful development and expansion of international trade. 2. It believes in and urges the removal, at the earliest possible moment, of all export and import controls and obstaclks, restrictions and barriers to the normal development of international trade. 4., It commends the efforts of the U. S. Department of State to remove such controls as are detrimental to international trade promotion and development, and urges that the State Department make representations to the governments of other nations towards the curtail- .41 t ment and early complete abolishment of barriers of international trade promotion. t 5. Ii~urges that representations be made to the Congress of the U. S. for the extension, in its pflesent form, of the Reciprocal Trade Agreements Program beyond June, 1945.65 National Council of American Importers. Outlining "A Practicak1~rogramn for Foreign Traders," Harry S. Radcliffe, executive secretary'of tA'-,ational Council of American Importers, stated: "The basic principles .of,_eJ Dum- barton Oaks proposals for the establishment of an international organization should receive our approval and active support. We are naturally interested in 4. the provisions for an Economic Commission contained in the proposals, and hope this may develop into a World Trade Board." 66 He proposed that the Congres- sional resolution (S.J. Res. 120), introduced by Senators Kilgore, Thomas, and Truman on March 7, 1944 and embodying a Foreign Economic Commission, should be resubmitted for prompt attention of the new Congress and that foreign traders should vigorously support the extension and liberalization of the Reciprocal Trade Agreements Act. Mo ,rrisA. Rosenthal; vice-president of the National Council and former assistant director of the federal Board of Economic Warfare, also endorsed the aforementioned resolution and called for the establishn~ent of a world trade board, which would "bring out of the stratosphere trade plans of specific industries, such as rubber" and harmonize them to the best interests of all concerned.67 Federation of British Industries.. A May 1942 report of the Federation of British Industries stressed the necessity for a common economic polic 'between the United States and Britain, with close, contact to the situations in China and the USSR. In International Trade Policy, published in February 1944, the Federation takes a stand in favor of international trade agreements to regulate the distribution of raw materials and manufactured goods. These agreements are directed toward maintaining full employment and a high standard of living, provided that "(1) the primary aim of such arrangements should be the increase of both consumption and production on an orderly basis; (2) adequate arrangements are made for safeguarding the interests of consumers; (3) arrangements are included for the maifltenance of adequate buffer stocks and for the orderly disposal of surpluses." In general, agreements should be multilateral, although circumstances may arise calling, for bilateral arrangements. An International Economic Council is proposed to co-ordinate the trade agreements concluded, to perform statistical functions st~h as estimating .the requirements and supplies of different countries, to assist various countries in problems associated with their standard of living or their industrial develop- 49 ment, and to "guide international trade into channels beneficial to consumer I' and producer."~ ii National Association of Manufacturers. Organized fifty years ago to foster

65Anserican Import and Export Bulletin, January 1945. 66American Import and 67 Export Bulletin, January 1945. New York Time;, January 16, 1945. 42 *the trade, business, and financial interests of the individual firms and corporations that are'its members, the National Association of Manufacturers is undoubtedly the most important 'group of this nature in the United States. In 193 6 the Association undertook the study of long range problems and appointed a special committee, since renamed the Postwar Committee, which now consists of approximately 1 50'members, who are assisted by outstanding authorities in the fields of trade, geography, finance, and international relations. The Second Report of the Postwar Committee (1943) proposed an Interna- tional Board of Trade, a fact-finding and advisory body, to "undertake studies arriving toward a statement of international policies which, if applied, would reduc e trade barriers as far as p ossible under the conditions then existing," and to "formulate and recommend agreements in regard to trade practices." The report also advocated that the various governments adopt certain general principles to cover such problems as the treatment of foreign business concerns and equal treatment of all import and export trade. If practicable, these principles should be incorporated into a codified system of agreements.

* Recently Ira Mosher, president of the Association, stated in a speech at the Economic Club in New York City: When we lend abroad again in order to move our cap~ital goods and employ our producing force promptly in the postwar period, let us act in full knfowledge that we have only bought a little time. Instead of letting it run out again, let us use it to launch world trade in the direction of expansion based on the recognition that if we have increased exports, they will ultimately have to be paid for by foreign goods and services. 68 * Small Business. The activities of the National Small Business Men's Associa- tion had been confined exclusively to "domestic policies and practices," accord- *ing -to a letter of March 2 7, 1945 from President DeWitt Emery. However, the U. S. Senate Subcommittee on Foreign Trade for Small Business, established-to promote the particular interests of small business in recognition of the key importance of that community in the preservation of our democratic free-enterprise system, realizes that small business enterprises are "an integral part of our interdependent economic system and that their basic interests are iflsep- arable from the general welfare and the general level of business prosperity."169 Hence, the committee regards the relation of small business to the country's foreign-trade program in two lights. An expansion of foreign trade, which is necessary to postwar prosperity, would bring far-reaching benefits to small * business enterprises; and increased participation of small business is desirable because it is unlikely that foreign trade could reach the desired level without the aid of smaller concerns.

Ocean Shipping A maritime and trading people, the British have long been conscious of the value of a broad international trade for the prosperity of their shipping interests. 6 8Foreign Commerce Weekly, March 24, 1945. 6 9Foreign Commerce Weekly, April 14,1945. 43 A report released in January 1943 by the General Council of British Shipping outlined ''A Policy for Britain's Merchant Fleet,'' reads: British shipping employed in world trade is one of our great export industries, therefore its prosperity is of the first importance. The ability of British shipping to play its part will depend on the equipment and efficiency of British ships, and the extent to which it secures employment must be controlled by the volume of world trade. Substantial freedom in the world market is also a necessity: restrictions imposed by foreign governments on the employment of ships or foreign subsidized competition will vitally affect the British Mercantile Marine. The future of shipping is . .. bound up with national economic policy on the one hand and on the other with the willingness of all nations to maintain and expand international trade in a free market. United States companies have been slower than those of Britain, Norway, and other leading maritime nations in recognizing clearly that ships exist for trade and not trade for ships. Yet it should be noted that over a decade ago a far- sighted American shipping man, president of the American-Hawaiian Company and now Mayor Roger Laphamn of San Francisco, stated at an annual meeting of the Chamber of Commerce of the United States: I do not pretend to he an expert in world economics, but it seems perfectly obvious to me that the American shipowner in foreign trade cannot expect to secure full cargoes for his ship unless it is made more possible for the American exporter to send his goods abroad, and 70 more possible for the exporter abroad to sell his goods here. The National Federation of American Shipping was organized in February 1942 as a federation of five associations-the American Merchant Marine In- stitute, the Association of American Ship Owners, the Pacific American Steam- ship Association, the Shipowners Association of the Pacific Coast, and the Pacific American Tankship Association. Their combined membership represents vir. tually all the ocean-going shipping concerns of the United States. The Federa- tion has not passed resolutions concerning international trade; but Almon F. Roth, its president, in a speech before the subcommittee of the Special Com- mittee on Postwar Economic Policy and Planning on October 2 7, 1944, gives cognizance to the fact that shipping depends on international trade for its very life, when he said: Some months ago, Admiral Land made the observation that the principal hope for the enlargement of our American merchant marine lay in the "baking of a bigger pie" of international trade, Nýo one can predict what size the "pie" will be.-It seems certain, however, that irrespective of its size,-postwar international trade will have to be divided among an enlarged number of participants. The American Merchant Marine Conference of the Propeller Clubs (New York, October 1944) adopted a resolution providing that American shipping companies should "set up a special group-within their own ranks to confer with industrial companies, individually, and their representatives, . . . in order to formulate a program by which the American shipping companies can actively assist American industry to develop foreign trade." A full-page advertisement in the New York Times Magazine of April 15, 1945 (and in other periodicals), one of a series, leaves no doubt concerning the stand 7 0 Eliot G. Mears, Maritime Trade of Western United States (Stanford University, Cali- fornia, 1935$), p. 7. of the United States Lines on the need for an expanding international trade. Under the heading "World Trade--the Symbol -of the New Year," is quoted Dr. James T. Shotwell, director of the Division of Economics and History of the Carnegie Endowment for International Peace: There can be unparalleled prosperity at the end of the war. Or unparalleled adversity. Never was there a greater challenge to intelligence. A war-torn world has to be rebuilt. The task is not beyond the capacity of science, industry and the willing labor of those whose homes and means of livelihood are restored. But to *succeed in this vast enterp~rise, we need world peace and world trade. The two go together, peace to guarantee trade, and ftrade to give vitality to peace. This means that we have to adjust our thinking to new conditions of life. Just as we must secure ourselves against the war system as an outworn and barbarous method of settling *disputes, we must make world trade a two-way street to the markets of all peoples. The age of narrow nationalism has passed forever. World trade is the symbol of the new era as militarism was of the old. This does not mean taking down all barriers at once; but it *does mean a recognition of our common interest in the welfare of those who are willing and *able to join with us in creating a freer world. The Grace Steamship Lines, through the Grace Log, has been a consistent, strong supporter of stimulating two-way trade with Latin America. This comn- *pany is affiliated with' the trading firm of W. R. Grace and Company. The American Maritime Council has recently completed an exhaustive analysis of the British and American policies ioward shipping and foreign trade. The chairman of the Council, J. E. Otterson, writing in the Journal of Commerce (February 13, 1945), advocated the formation of an American counterpart of the Federation of British Industries "to co-ordinate the consideration and action of all the different industrial and business organizations and associations *in matters concerning foreign trade." If the British pattern is followed, he pointed out, "it will ultimately he called upon to develop an operating organiza- *tion in the foreign field .. . in order that organized industry itself may participate actively in promoting foreign business and developing foreign trade and markets for American goods."

Banking and Finance The Economic Policy Commission of the American Bankers Association pub- *lished in September 1943 a report entitled Place of the United States in the Post-War Economy, which states their position: It is often hard for citizens of the United States to realize the meaning of foreign trade for the world as a whole. Export trade for us is less than 10 per cent of the country's output. ... But for many if not for most other countries foreign trade fills a much larger role..* Some of these countries are very largely dependent on the export of a few commodities: Argentina on grains and meat products, Cuba on sugar, Chile on copper and nitrates, New Zealand on wool and dairy products. Fluctuations in these exports or in their prices may spell the difference between distress or. prosperity. Similarly many countries rely largely for their standard of living on imported goods. These changes can be causes of peace and war- they are so vital. ... The freeing of trade and thereby increasing its volume can be greatly aided by constant effort by men of good will. In Section II, mention was made of the Bretton Woods monetary agreements and the recommendation included therein that the participating countries should 45 create the trade conditions necessary for the attainment of a balanced growth of

Wosagreements (February 15, 1945), the late President said:

TeInternational Fund and Bank together represent one of the most sound and useful proposals for international collaboration now before us. On the other hand, I do not want to leaewth outhe impression that these proposals for the Fund and Bank are perfect in eveyetal.Itmay well he that the experience of future years will show us how they can bemprved Ido wish to make it clear, however, that these Articles of Agreement are the prouctof hebest minds that 44 nations could muster. These men, who represented nations froal patsof the globe, nations in all stages of economic development, nations with dif- feetpolitical and economic philosophies, have reached an accord which is presented to yufor yorconsideration and approval. Ii would be a tragedy if differences of opinion on

mnrdtisshould lead us to sacrifice the basic agreement achieved on the maior problems.

Subsequently, this agreement has been the subject of controversy by bankers and other financial groups. Dr. E. A. Golijenweiser, director of division of research and statistics of the Federal Reserve Board, has brought out clearly the relation of the proposed monetary agreement and international trade (Federal Reserve Bulletin, Feb- ruary 1945): I*n international* trade we need two particular things, besides many others that cannot be discussed now. One isa ratio'nalcommercial policy adapted to a creditor nation, which means that inthe long run we have to import more goods than we sellabroad. We can not be a creditor nation and have what iserroneously called a favorable balance of trade... . Second, we ought to adopt some plan like the Bretton Woods Monetary Fund in order to establish stability in the exchanges, provide for flexibility when necessary, and help in emergencies....

Labor The British Trades Union Congress has manifested its interest in international affairs through the work of its International Committee and through the latter's co-operation with the International Federation of Trade Unions and the International Labour Office. In September 1943, the World Trade Alliance Asso- ciation asked the Trades Congress to support the principle of a World Trade Alliance. The Economic Committee studied the proposed alliance and consulted the Federation of British Industries, which proposed an International Eco- nomic Council. The 1944 Report of the Congress stated that the Economic Com- mittee considered that the proposed Economic Council was C"in principle sound and such as the T.U.C. could generally approve," although it was decided that the details of the plan merited further study.

Labor on this side of the Atlantic is also interested in international trade and rightfully so. The declarations adopted by the Executive Committee of the American Federation of Labor on April 5, 1944, contain the following statement: The program for international security in the future will have to be worked out by the United Nations as a whole. . .. We believe that the United States has much at stake in the maintenance of these foundation principles, and the American Federation of Labor pledges its full support in any steps to supplant tendencies toward unilateralism with genuine cooperative action which will broaden and deepen the mutual relations achieved by the United Nations. 46 And the "Program Dealing with the Bases of Lasting Peace: Guiding Interna- * tional Principles,." prepared by its Committee on Postwar Planning and approved by the Executive Council (April 12-13, 1944) declares that, in order to assure economic justice within nations and between states, it "will be necessary to lessen the barriers between nations so that there may be a larger interchange of goods and services for all." The postwar program for international co-opera- *tioncalls for the formation of a United Nations Economic Organization (whose, functions would be principally advisory and consultative) to co-ordinate the activities of agencies dealing with such economic matters as the stabilization of foreign exchange, commercial policy, and cartels. The first Report of the Postwar Planning Committee of the Congress of In- dustrial Organizations (January 1944) recommended an "all-embracing world federation with power to deal with political and-economic matters of world-wide importance." At the Seventh Constitutional Convention of the CIO, in Chicago on November 20-24, 1944, Philip Murray presented his "CIO Re-employment Plan." The resolution, which was adopted, reads in part: The continued prosperity of Americans is directly tied to the prosperity of people of all other nations. In addition to a domestic program for full production in the United States, there must be a vigorous, long-term program of international commerce. .. . Another problem in foreign trade is imports. Trade is a two-way proposition. In the last analysis we cannot he paid for exports except by imports. Credits and payments in gold simply postpone the day of reckoninng. At present we could not possibly accept enough imports to balance the great quantity of exports we ought to be sending abroad to keep our heavy industry going. These imports would compete with other goods produced in America. But we can readjust our economy over a longer period of years so that imports will balance exports. We should arrange it so that we produce the things we make best in this country, and other countries produce the things they make there better or more easily. ... The United Auto Workers of the CIO is in favor of extending the Reciprocal Trade Agreements Act, now under discussion. According to information in the press (San Francisco Chronicle, April 29, 1945), Irving Richter, legislative rqpresentatiVe of that branch of the C16, said the passage of the impending, bill "is essential for the maintenance of peace and the development of prosperity." After pointing out that the value of exports of automotive products averaged 406 million dollars a year from 1926 through 1930, fell to 76 million in 1933, and rose again to 254 million in 1940 under the reciprocal trade program, he continued, "Our 1950 exports can-be as much as 15 per cent of our total production, providing jobs for 150,000 workers. The foreign market for cars is inexhaustible if purchasing power abroad rises."~

Agriculture Resolutions adopted at the Twenty-sixth Annual Convention of the American Farm Bureau Federation on December 14, 1944 carry recommendations concerning foreign trade which are worth quoting: In order to facilitate international trade on a sound basis and thereby Jay the foundation fkor an economy of abundance and economic security in our Nation and throughout the world, which are so essential to the maintenafice of a lasting peace, we recommend: .47. 1.'htrade barrersaogllnationsl ardofrndeto cadiscourag the curpoeato of addimtional tradewe thetrTate banrinernationgall ntraeionference be dicoualledo the purpatose of attemtiongltorloer barriers. 2.That the United States participate in international action on monetary matters and faothe adoption of monetary and credit policies-domestic and international-that will encourage and facilitate maximum production, distribution, and consumption of goods and services, on a fair exchange basis. A stabilized price level, both domestic and international, is essential not only to international trade, but also to the maintenance of a fair balance in domestic prices of raw materials with other prices. 3. 'That foreign and domestic barriers be gradually adjusted or removed so as to facilitate the maximum exchange of goods and services between nations, and between groups in our country, to the end that maximum employment and production may be achieved throughout fth world. 4. That the trade agreement program be improved and expanded. We believe that much can be gained by including more than one nation in specific agreements. 5. That new and improved international commodity agreements for surplus agricultural products be developed among the various nations of the world; and to the extent practicable, these agreements should be co-ordinated closely. These agreements should not be confined to producer nations, but should also include the principal consumer nations. 6. Tbat, if peace is to be maintained in the world, all nations be given the opportunity to obtain essential raw materials necessary to the development of a reasonable peacetime economy. 7. That, during the immediate period of postwar reconstruction, necessary exports for the purposes of rehabilitation be treated primarily as expenditures, provided the purpose is to effect real rehabilitation and to assist nations to help themselves and lay' a sound f ounda- tion on which to build world trade. 8. That our Government adopt a positive program to develop world trade. However, it is realized that in the immediate postwar period, certain realistic approaches will have to be made to meet maladjustments. Pending the attainment of sound foreign trade policies, our Government, if necessary in order to regain our fair share of the world market, should enable domestic producers to meet world prices through export subsidies; and ways and means should be sought to provide other nations with dollar exchange with which to buy our surpluses. In a statement of The National Farmers Union presented to the Republican National Farm Committee, charged with formulating an agricultural plank for the party's 1944 campaign, three guides are given for attaining "a peace which goes beyond the mere cessation of hostilities and becomes a thing lived, enjoyed, and depended upon by the great mass of people everywhere"~: 1. The future welfare of the world demands active participation of the United States in world affairs. This participation must be economic, social, and cultural, as well as diplomatic. .1 We must give world leadership. to a movement aimed at eliminating trade barriers, thus expanding the flow of goods and services among nations. As means for accomplishing this end, we should participate in world organizations to stabilize currencies, properly direct the flow of international investments and materials and regulate international shipping. 2. Although we have placed first emphasis upon economic, social, and cultural collaboration with other countries, it will also be necessary to have some form of international organization whose primary aim is to prevent aggression. 3. One of the main contributions' we can make to the stability and security of the world is to run our own country at capacity levels of production, and be willing to trade with other countries. Our econormic conditions at home will have tremendous repercussions throughout the world. The maintenance of peace in a prosperous world is much easier than in a world beset with depression and unemployment. Moreover, the maintenance of prosperity in this country is a large and important factor in maintaining world prosperity. The position of the National Grange on international trade comes from two reports adopted at the annual session held at Winston-Salem, North Carolina, 48 in November 1944. The final report on "International Co-operation" contains this statement: America and all other nations must co-operate in eliminating the economic and racial factors -which cause war by the establishment of just trade relations and by giving all peace-loving nations access to raw materials. And concerning trade more specifically, the report of its National Welfare Corn- mittee sta'tes: To meet the competition of other surplus producing countries our products must he sold at the world market prices in a system of multilateral trade to enable us to take goods in settlement that are needed here in the United States, which will not upset our national balance of economy. To attain, the maximum of trade, trade harriers must be so reduced that the total amount of world trade will increase, of which we can then get our fair share. It is only as the peacetime consumption of the whole world increases that more markets for the world-wide increases of production of goods can be absorbed, after the shortages caused by the war have been replaced. Agriculture -must have its share of foreign markets and also be prepared to accept some imports to balance. Since the United States Department of Agriculture is so influential for the rural part of the population, the stand of the Department on our trade policy is important. A January 1944 publication entitled, What Post-War Policies jfor Agriculture, reveals the following position: World peace is a prerequisite to the achievement and maintenance of parity for agriculture, and a freer trade policy is essentinl to the preservation of peace and to the development of over-all national prosperity... We believe that . .. we should evolve programs that will tend to reduce domestic production of agricultural commodities that cannot meet world competition and yield an American level of living to producers without tariffs or other forms of Federal subsidy, and that will correspondingly increase our imports of those commodities that are needed to maintain or bring about desirable increases in domestic consumption.. This does not mean, of course, that we should suddenly and completely stop producing those commodities now protected by tariff walls and other forms of subsidy. It means. only that production of these commodities should be discouraged.. .. There is no outlook for an enduring world peace, except as it is based upon a relatively free exchange of goods and resources,

Religious Groups, On October 7, 1943, the Federal Council of the Churches of Christ in Amer- ica, the Social Action Department of the Catholic Welfare Council, and the Synagogue Council of America simultaneously released for publication a resolution, of which the following is a part: 6. International economic cooperation must be developed. International economic collaboration to assist all States to provide an adequate standard of living for their citizens must replace the present economic monopoly and exploitation of natural resources by privileged groups and States, The Commission on a just and Durable Peace, of which John Foster Dulles is chairman, was formed in 1940 by the Federal Council to study plans for, the peace and the churches' part in those plans. In its March 1943 "Statements of Political Policy," the commission pointed out: "We do not here envisage, as .49. presently practical, a condition of 'free trade.' But the world does require that the areas of economic interdependence be dealt with in the interest of all concerned and that there be international organization to promote this end." Both the Church Peace Union and its affiliate, the World Alliance, support the reciprocal trade treaties and world economic co-operation. A "Constructive Peace Program" of the Peace Committee of the Society of Friends approved a statement on December 9, 1942 asking that the United Nations commit themselves to the establishment of a world organization with. authority to: Provide agencies for effective international collaboration in political, social, economic and cultural matters that concern more than one nation; Provide for government of areas heretofore not politically independent, with the welfare of the native peoples and their development to self -government as the chief objectives, and with due regard to equality of access to the trade and natural resources of such dependent areas, and with the purpose of conserving natural resources; Develop international monetary, economic, transport, labor and demogr~tpbic organizations, to provide a means of effective co-operation on a world-wide scale in solving these world-wide problems. * In order to accomplish these purposes the Committee proposed a world organi- * zation with authority to "provide means of reaching international agreements about economic and financial policies whdse effects may extend beyond national frontiers.'' In January 1945, the Catholic Association for International justice issued a statement that the former "way of handling the economic life of the earth-unre- strained competition modified by isolationist protective tariff harriers-was and is wrong." After condemning cartels, and so forth, the association went on to declare that " international economic agreements of world-wide scope, however, are necessary."

Women's Organizations Never before in the history of the world have women taken such an active part in public life, and never have they been so keenly interested in national affairs. The larger women's organizations have taken stands on important problems and policies. ofThe American Association of University Women has gone on record in favor ofthe Reciprocal Trade Agreements program and international co-operation on economic matters. The Association is co-operating with the Women's Action Committee for Victory and Lasting Peace, and is one of the organizations sponsoring the Committee to Study the Organization of the Peace, both of which are mentioned in this section.

At its annual convention, held in St. Louis, April 2S5-28, 1944, the General Federation of Women's Club adopted the following resolution: WHEREAS, International trade is an essential element in the intercourse between nations, andatifacoryinternational economic ties are an important factor in promoting the well- aend saifatorye and friendly relations among nations; and

*50* 'if

WHEREAS, To achieve these ends, it is indispensable that artificial barriers to trade be reduced or eliminated, and that economic transactions be conducted with a proper regard for the interests of each party, as well as for the effect on the international community as a whole; and WHEREAS, The reciprocal trade agreements program of the United States is based on these principles and should contribute to the realization of these economic objectives in the period following the war; therefore be it * Resolved, That the General Federation of Women's Clubs in convention assembled, April 1944, 1. Recommends the continuance of the reciprocal trade agreements program by the Gov- ernment of the United States. 2. Expresses the hope that other governments will adopt these sampe principles in their international ecunumic relations not only with this country but with other nations of the *world. The Women's Action Committee for Victory and Lasting Peace has cir- *culated to its membership a leaflet urging support for the Bretton Woods monetary agreem.ents. But, it points out,

pthe Fund and the Bank in themselves would not be adequate to meet the situation. They must be geared into a larger pattern of economic and political co-operation. Nations will have hi work out sound and far-sighted domestic policies with a view to knitting these policies into a pattern of international economic co-operation. Other barriers to world commerce will have to he cut down-tariffs, for instance. *This is one of the big problems which the United States must face. It is not likely that the other nations will relax theft economic and fiscal controls till we shall have convinced them that we will not return to a policy of high tariffs as we did after the last war. We cannot continue indefinitely being a great creditor nation and a preponderantly exporting nation. *We shall have to let nations pay us in goods and services.

The National Federation of Business -and Professional Women's Clubs has drawn up a "Legislative Program for 1944-45," point seven of which calls for "csupport of participation by the United States of America in international organization with adequate enforcement machinery for the maintenance of peace and security; and support of a foreign policy embracing international social development, economic and-financial stability, and the peaceful settlement of international disputes." Their publication "Our-Stake in World Affairs Series," points out that a liberal foreign trade policy is the best guarantee for an unregi- mented domestic economy in this country, supports the Reciprocal Trade *Agreements program as "a useful method of making adjustments in international trade with the greatest amount of fairness and economic benefits to all concerned," and calls for some "rules for the game" in international trade. In addition, both the National Council of Jewish Women and the National League of Women Voters have endorsed tihe Reciprocal Trade Agreements program. The League also endorses the tariff reductions embodied in the Doughton

*bill and the Bretton Woods monetary agreements.

Special Groups The Conference on International Co-operative Reconstruction, called by the Co-operative League of the United States in Washington, D. C. (January 19-20, 1944) was attended by some 70 delegates representing twenty-one countries. 51 The seventh in the fourteen-point action schedule approved by the conference recommends that the organized co-operative movement "work for removal of international barriers to the free intercourse of people and of the movement of goods and of currencies between all countries as soon as and to such extent as possible." The strength of the co-operative movement is evident from the fact that 400,000,000 persons (in terms of families) were associated with the Inter- national Co-operative Alliance before the war.

At its annual Congress at Chicago (October 1944), the Co-operative League adopted the following resolution concerning international trade: We favor the full, free and unhampered flow of goods and services in both interstate and ultra-state commerce and oppose law or regulation that tends to obstruct or restrict it; furthermore, We urge the removal of any tariff agreement or other restriction or barrier to the fullest posiible developments of international trade.

At its Twenty-sixth National Convention, held at Chicago on September 18-2 0, 1944, the American Legion passed the following resolution: "We invite the' cosideration of Congress to the complex subject of cartels and foreign trade * agreements, to the end that their dangers, as disclosed by this war, may be eliminated without doing injury to our legitimate foreign business." * The Students' International Union, which was formed at Geneva in 1922, sponsors each summer an Institute of World Affairs, attended by students from various countries. In the summer of 1944, thirty students from thirteen nations gathered near Salisbury, Connecticut)- for eight weeks of lectures and study. At the close of that period the student commissions compiled and submitted reports before they departed for their respective colleges. From the report of the "Com- mission on Trade and Finance" we quote: "We are fortunate in having already the machinery which can be effectively used to reduce the formidable tariff barriers. Following the war, tariff reduction, if attempted, can be one of the best devices for promoting international good will.'' The American Tariff League was formed in 1884, and its purpose is stated in its constitution: U The object of this League shall he to carry on continuous research into all the facts and forces brought into play in trade between the nations; and to make these facts available in an, educational effort designed to provide a better understanding of the effect of these forces on the prosperity of American labor, agriculture, and industry. The chairman of its Executive Committee, Dr. Elvin H. Killheffer, gives a concise statement of the League position on international trade in a speech at the dinner sponsored by the League in New York on June 15, 1944. The League believes that ''United States influence should be directed toward creation of international trade rules which will expedite the movement of needed goods without subjecting any nation to unfair competition." As for Article VII of the Mutual Aid Agreements, the League believes that the principle embodied therein is sound,, but it also contends that "the United States should make no further reductions in its tariff rates until and unless Article VII, as contained in

K ______52 ce 'the various Mutual Aid Agreements, is implemented by appropriate action by of the United States Congress and similar action by the other signatory powers." A pamphlet issued in January 1945 sets forth the League's "Principles and I Policy," with a progr am for American action. Under Economic Principles, we read: The A m'erican Tariff League favors a healthy and mutually profitable export and import trade. Expansion of world trade that results in increased production, exchange and consumption e of goods and services and does not disrupt domestic manufacture and trade, is desirable. The League favors constructive effort directed to the elimination of discriminatory treatment of international trade and to the elimination, as soon as practicable, of burdensome d controls made necessary by war.

t ~Pubalic Opinion Polls In September 1943, a poll of the National Opinion Research Center at the University of Denver revealed that 73 out of every 100 American citizens agreed 'that trade problems between countries may often contribute to war. The importance attached to trade is further stressed in answers to another question: "Do you think it would be a good idea for countries to get together in a union of nations to decide how trade between countries should be handled, or do you think every country'should handle trade any way it wants?" In response, 65 per cent thought that the countries should "get together," 25 per cent that each country should handle its own trade, and the others were undecided, The percentage in favor of this nation's joining a union df nations in which trade regulation is a prerequisite to membership, however, was smaller. Only 5 7 per cent were so inclined, while 31 per cent were in favor of staying out, and 12 per cent were undecided. Other leading questions covering various aspects of the problem of international trade brought forth differing opinions, according to the report of the Re- search Center issued in March 1943. When people were asked if, "in order to try out a union of nations as a possible way of preVenting wars," would you be willing to "allow foreign goods to come into this country and compete with things we grow or make here-even if the prices were lower?" 28 per cent were willing, 62 per cent not willing, and lo per cent held no opinion. To the question of whether the United States should "try to develop its own industries, like rubber and sugar, to such an extent"' that it would be unnecessary to buy any products from foreign countries, 46 per cent replied in the affirmative, 42 per cent in the negative, while 12 per cent held 'Other opinions. The May 1944 issue of Fortune Magazine gives a report of its survey's p~anel of business leaders, who were asked two key questions. To the first question "Would your company benefit directly, indirectly, or not noticeably by asn increase in U. S. foreign' trade after the war?" the results were as follows: direttly, 30.9 per cent; indirectly, 28.2 per cent; not noticeably, 37.8 per cent; and don't know, 3.1 per cent. The second question was "How do you regard:i the prospects for a large increase in U. S. foreign trade after the war (a) if there is .53. no international organization to keep the peace, and (b) if there is one?" The voting on this was as follows: If there is no inter- If there national organization is one Prospects good ...... 30.9%7 6 7.7 % Prospects dubious ...... 49.9% 16.7% Don't know...... 19.2% 15:-6%o

"This whopping majority of business leaders who believe that an international organization to keep the peace will greatly help foreign trade is a figure that organization advocates might well wave under isolationists' noses," Fortune comments. In February 1945, the business journal Modern Industry presented the question, "Should the U, S. Make a Further General Reduction in Tariffs?" As reported in the April issue, 53.4 per cent of those responding voted affirmatively, and 46.6 per cent opposed the proposal. An analysis of the voting by geograph- ic4l areas revealed that in all parts of the country the number of industrialists favoring the proposal exceeds the number voting "no." The affirmative percentage was largest in the western states where almost 59 per cent were in favor of lower tariffs. The winning side, the journal reported, viewed the issue with an "international eye." One vice-president declared, "Industry doesn't need this method of nursing any longer." On the other hand, one owner of a machine company wrote: "U. S. manufacturing costs can't compete with foreign costs"; and a plant manager said, "lower tariffs mean lower wages." The poll is not an American institution exclusively, and reports are available on polls from Australia and Canada. The Australian Public Opinion Polls found that a majority of Australians favored a world-wide cut in import duties over a period of years with a view to promoting international trade. Since the problem was considered "beyond the ken of women," the results are separated by sex. Australians voted as follows (in terms of percentages): Men Women Favor world-wide lowering of tariff walls ...... 65 55 Oppose the idea ...... 18 7 Undecided ...... 17 38

The Canadian Institute of Public Opinion has reported answers to the question: "Do you think that Canada would be better off, or worse off, if every country in the world allowed all products and merchandising crossing their bor- ders to do so free of all tariff and customs duties?" Almost half (43 per cent) of the Canadians believed that Canada would be better off; I11 per cent "about the same"; 29 per cent "worse off"; and 17 per cent were undecided. When the answers were classified by geographical area, residents of the Prairie provinces

lead others in favor of free trade (54 per cent). In an Institute survey taken in February 1944, 70 per cent of those replying favored free trade with the United States after the war. .54

- - -- - Although clearly interested in international policy, the American Association of Social Workers, American Peace Society, Kiwanis International, and Rotary International are among the groups that have not adopted any resolutions dealing with trade policies.

Study and Research Groups The British organization called Political and Economic Planning (PEP) is a nonparty research organization engaged in studies on international relations, social control of the use of land and physical planning of communities, materials for a national fuel and power policy, the machinery of government, industrial relations, the problem of full employment, etc. Its "broadside" Planning, a fortnightly distributed in this country by the New Republic, devoted the Jan- uary 5, 1945 issue largely to international trade. Britain's trade problem, it points out, is "as much a world, as a national, problem." Its conclusions may he summarized as follows: 1. If Britain is to restore and maintain her prewar volume of imports, she must increase the volume of her visible exports by at least 50 per cent over their prewar level. 2. Britain can expand her exports permanently only (1) "if there is a high and rising level of world prosperity and a steady expansion of effective demand, resulting in a substantial increase in the volume of world trade and a lowering of trade barriers," and (2) if British industry can achieve and maintain a high degree of efficiency, flexibility, and inventiveness. 3. If a system of multilateral trade and exchange is established universally,. Britain should renounce the principle of Imperial Preference. 4. An expansionist world should make it possible for Britain to furnish an increasing share of certain specialized capital goods. Americans United for World Organization, which consolidates the activities of six organizations-American Free World Association, Citizens for Victory, Committee to Defend America, Fight for Freedom, United Nations Association, *and United Nations Committee for Greater New York-has as its purpose ''to do all in our power to win this war, and to prevent World War III, by backing an effective world organization with power to act against aggression." To achieve that end, the organization set out (1) to combat forces that oppose American co-operation in world affairs, (2) to see to it that the Senate does not fail to carry out the will of our people-this time, (3) to encourage trade relations and the flow of goods-essential to full employment after demobilization,, (4) to fight bias, discrimination and other anti-democratic tendencies, which sow the seed of war, (5) to oppose candidates, regardless of party, who do not *subscribe to these principles, and finally (6) to mobilize the public sentiment and mass enrollment in a nation-wide, non-partisan campaign to achieve these objectives. Americans United has formally endorsed the Dumbarton Oaks proposals and the Bretton Woods- agreements. In co-operation with the Treasury and State Departments, the organization invited a group of national organizations to send representatives to a Washington conference "for explanation and discussion. of Bretton Woods." Representatives of 109 organizations assembled on February .55 =

28 to hear talks by Secretary of the Treasury Morgenthau, Assistant Secretary T of State Acheson, Assistant Secretary of State MacLeish, and others. For its own In part, Americans United took the following action: "Believing that wars are II. caused by economic instability as well as political insecurity we favor the fundamentals of the Bretton Woods proposals for an international bank and for an international monetary fund." As for trade, the organization has taken a stand l in favor of "the free flow of trade," to provide full employment after the war. Henry J. Kaiser, chairman of the membership committee, stated in a signed statement published in connection with the recent membership drive: "We need to encourage trade relations and the flow of goods, which are altogether essential to full employment." C' The contributions of the Carnegie Endowment for International Peace to thea end of international co-operation have been discussed in an earlier part of this a report. Currently, in co-operation. with the Advisory Committee on Economics r of the Committee on International Economic Policy, the Foundation is publish-a ing a series of papers on international economic policy and problems. The first of these, World Trade and Employment (June 28, 1944), outlines K "An International Economic Charter." It proposed that, under the provision made by Article VII of the Mutual Aid Agreements, a multilateral agreement "to establish the principles under which an expanding international trade cana prosper" should be prepared. "International agreement upon an adequate t framework for postwar trade and investment," it points out, "is essential, if their expansion is to continue." The International Economic Charter should provide for national treatment, most-favored-nation treatment, simplification of customs formalities and procedures, elimination of unfair competition)' commercial arbitration, elimination of double taxation, prohibition of import restrictions and quotas, exchange control, the elimination of preferences and discrimi- K nations, abolition of export prohibitions and taxes, elimination of export and domestic subsidies, trade with countries ini which international trade is controlled by a state monopoly, and finally adjustment of tariffs. To carry out the provisions of the Charter, a United Nations Economic K Organization is proposed. Although that organization would not be directly concerned with recent proposals for stabilizing exchange rates and for supervisirfg the flow of international credits (its primary concern would be commercial policy), the planners point out that "trade, investment, monetary and fiscal questions are intimately connected.'' An annual conference of the interested governments would direct the general policy, but continuing responsibility I. would accrue to the Economic Organization on such matters as: (a) application and administration of emergency quantitative restrictions in special circumstances. (b) investigation of the commercial policy aspects of exchange cofitrol systems. (c) investigation of projected customs unions. (d) application and administration of emergency export restriction. (e) investigation of the international effects of State-trading enterprises. .56 The functions of the organization would be consultative, research, standard- making, and arbitral; in fact, it would act as a clearing-house of national policies.

The Citizens Conference on International Economic Union was formed in 1943 by some 200 economists, educators, clergymen, and leaders in the fields of labor and business, fot the purpose of stimulating "interest in economic cooperation among all nations as the basis of a just and lasting peace, and to promote educational activities to that end. On December 4, 1942, the Union sent to the President of the United States and the members of Congress a communication calling for the. establishment of (1) an international lending agency, (2) *a currency stabilization agency, (3) a trade and tariff agency, and (4) a credit and exchange agency. At its first meeting in February 1943, the Union adopted a resolution approving the early adoption of Senator Thomas' resolution, which recommended "that action should be taken-by the United States-immediately with a view to planning and formulating a comprehensive program of F international economic cooperation, which would be just and equitable to all the nations of the world" (S. Res. 99).

The Union is definitely supporting the Bretton Woods monetary agreements, and on January 15, 1945, it directed a communication to the President urging the approval and creation of: The international agencies necessary for the promotion of peaceful trade and industry, the elimination of harmful trade barriers, and the encouragement of lull employment everywhere. Means and methods for guaranteeing to all nations the equal access to the raw materials of the earth promised in the Atlantic Charter. An assembly or body such as that envisioned at Dumbarton Oaks through which all nations can work together for the creation of the conditions of peace as well as the prevention of aggression.

The Commission to Study the Organization of the Peace, whose members consist of experts in various fields, was organized in 193 9 for research and education on international postwar problems. From the beginning the commission has F insisted that. expert work in the field of research is not enough and that the people in general must understand the solutions necessary for postwar security. FIn its Third Report, entitled the United Nations and the Organization of Peace, I. and signed by more than one hundred members (1943), it is set forth that To -enable states to relieve the insecurity and discontent of their people, and to achieve the social purposes of the Atlantic Charter, three essentials may be laid down in the international economic field. There must be "access to markets." Political boundaries should not be economic barriers; they must be permeable to trade. But merely dropping the bars, will not pr'omote a healthy flow of trade; there must he positive action as well. Economic stability is the second requirement, and this means national and international measures to combat booms and depressions and unemployment. Finally, there must be a purposeful,ý progressive, economic development. Moreover, economic development, the committee contends, must be thought of in international rather than national terffs.

.57 *The Council on Foreign Relations was formed at the close of World War I to study international affairs affecting the United States. Its main fields of inquiry are strategic and armament, economic, financial, political and territorial. A very important agency, it co-operates with the government of the United States and with national and international agencies. Since its contribution on international trade problems has been mentioned elsewhere, notably in the work of Percy W. Bidwell, who is Director of Studies and Organization Director of Committees onl

Foreign Relations, it will not be necessary to do so here. One of the most active organizations doing research and publishing studies to promote understanding and constructive development of American foreign policy is the Foreign Policy Association. It maintains a research staff, headed by Dr. Vera Micheles Dean, whose findings are reported in a weekly Foreign Policy Bulletin, a semimonthly Foreign Policy Reports, and two pamphlet series-the Headline Series and World Affairs Pamphlets. In a Headline book, Thomas P. Brockway said: Whatever is done about tariffs, and whether they are raised or lowered, the fact is that the volume of our imports is fundamentally related to the level of our economic activity. In the inter-war period our imports rose and fell almost precisely as our industrial production rose and fell, and this is understandable since more than 70 per cent of our total imports 1 were used hy American industry as raw or semi-manufactured materials. Devoting its major attention to a program of research and education, the Na- tional Planning Association has as its guiding principle the highest possible material and cultural standard of lying for the whole people. Since its establishment in 1934, it has emphasized that this nation's planning for the future must

recognize the close relationship between foreign and domestic policy. This is set forth clearly in the following "Practical Possibilities for Achieving the Foreign r. Trade Program Recommended for 1950": The first requirement for increasing the flow of international investment funds is the establishment of a strong and dependable international security organization of the type recently under discussion at the Dumbarton Oaks Conference. Without such a basis of political security, backed up by guarantees of military force, there can be no hope of establishing such international financial and economic institutions as the proposed International Bank for Reconstruction and Development and the International Stabilization Fund. Nor can we hope to achieve the free and ezpanding world commerce which is necessary to the prosperity of most nations and necessary to the safety of the foreign investments-of all creditor nations. In the absence of political security-and international economic institutions to forward the world economic activity and welfare upon which it is, in turn, dependent-there will always be danger that old and pernicious habits of economic warfare, imperialism and autarchy will crop up again. Mere resumption of old-style peaceful relations will not he enough-particularly in view of the overwhelming financial and economic diaequilibrium

which will result from the war. Means must be found to extend economic aid across political boundaries whenever this is necessary in order to restore, start, and increase productive activity. But such aid cannot be extended on a business basis except where institutional stability is sufficient to provide reasonable expectation that contracts wiil be honored. And it cannot be accepted unless the flow of commerce is great enough to give the borrower confi- 7 2 dence that there will be a market for the increased production so that he can get out of debt. K 71A Peace that Pays, No. 45, October 1944. 72 National Planning Association, Committee on International Policy, America's New Opportunities in World Trade, November 1944. .58 1

S~According to apress release of April 24, 1945, the Association endorsed the Bretton Woods monetary agreements as a triumph for the American concept of future world economy and urged Congress to approve them. Its Committee on International Policy reported that approval of the agreements would encourage Multilateral, nondiscriminatory trade throughout the world and would "revise the trend toward state-owned trading systems." The National Policy Committee, -an organization fostering the participation of responsible citizens in the formation of government policies, is, like several other organizations discussed in this section, interested in the dissemination of information and does not pass resolutions. Its regional, local, and national conferences, attended by officials from various branches of the government and citizens, are for the discussion of matters of particular moment rather than for the adoption of resolutions. The results of the organization's. research and conferences are published in the form of\Reports, Papers, and Memoranda. At the Washington meeting for discussion of the Dumbarton Oaks proposals (October 20, 1944), it was pointed out that the proposed Economic and Social Council "foffers a constructive opportunity to make good workable economic agreements for the foundation of peace."173

The Twentieth Century Fund, sustained by an endowment from the late Edward A. Filene, started out in 1919 as a disbursing agency, but since 1938 the Fund has operated as an organization for research and public education on economic questions. Its study and discussion mnanual Wartime Pacts and Postwar Problems, published in 1943, contains the following statement on foreign trade: In reshaping postwar trade two basic designs will bid for a choice: renewed economic nationalism or interdependence and collaboration. The first implies tariff walls and import quotas, export and exchange controls, barter, trading -with some countries to the exclusion of others, government control or outright operation of the whole process of trade. The second implies a systematic lowering of tariffs through reciprocal agreements or otherwise and the abolition of export and exchange controls-some authorities argue for complete free trade, at least as an ultimate goal; efforts to stimulate both export and import trade between all nations rather than between any two or more; the elimination of governments, as far as possible, from nationalistic control of all the processes of trade. Whether economic nationalism or collaboration is to be the choice largely depends, of course, on whether or not isola- tionism or world organization dominates the political design of the postwar world.

The Universities Committee on Post-War International Problems was formed in late 1942 by college and university faculty groups throughout -the United States: the objectives are (1) to recognize and develop interest in the grave international problems facing all nations, and (2) to provide an organization through which the members of the faculties of American colleges and universities can discuss international problems, and through which their reasoned opinions can be brought to the attention of the people. The Committee prepares "Summaries" of reports emanating from the co-operating groups. Problem VIII, submitted to the co-operating groups in September 1943, had this leading ques- 7 3Mensorandum on the Dumnbarton Oaks Proposal, National Policy Memoranda No. 34, 1944. 59 tion: "Should the United States participate in establishing and maintaining an International Trade Authority for the purpose of eliminating or reducing the restrictions on international trade resulting from the independent and unco- ordinated action of national States?" A summary of the replies from 37 co-operating groups, released early in 1944, contains the following statement: The answers to this question again show virtual unanimity. With the exception of two Groups which fail to deal with the question, and one whose report is ambiguous, all reply affirmatively. .. Tariff harriers should he removed whenever possible hut the reports show no desire to give any real power to an International Trade Authority. Rather, they say, it should begin modestly as a fact-finding organization and proceed by consultation and recommendation. Membership in this organization should he open to all countries capable of solid and enduring political co-operation hut it is not vitally necessary for all countries to participate. One Group thinks that the importance of tariffs as barriers to trade, while great, can easily he exaggerated. Even this Group, however, wishes to see widespread modifications of existing practices. There is general approval of the Hull reciprocal trade agreements and some opinions favor the extension of this technique to multilateral agreements of the same general type. ...

In April 1941, the World Citizens Association convoked a conference of experts on foreign relations to examine the most important aspects of some problems that will confront the world during and after the war. The thirty delegates assembling represented some twelve countries. A notable French participant, Henri Bonnet, summarized the discussions that took place in The World's Des- tiny and the United States. The conclusion of the conferees was that "the establishment of agreements to govern the economic relations between nations and between regional groups-complicated by the impossibility of determining in advance the degree of regulation of planning that will be necessary" will be one of the "tasks in the vast program which will have to be undertaken by the international agencies whose function will be gradually to reorganize world trade and to. throw open the resources of the globe to the constructive activities of the various economic communities.'' In his preface to William Adams Brown's The Future Economic Policy of the United States (1942), Leland M. Goodrich, director of the World Peace Foun- dation, under whose auspices the study was published, wrote that "the Ameri- can people cannot evade the questions which Brown raises in this study." One world-emconomy," ithernauthonarsaid,. "will dependcery larg-esalysinon whehrkthe woflthemconcerns ithernautiona traide. "Thleenchnesy ofare-esalishing woehrking Americans (1) retain their faith in the advantages of a mobile and flexible economy; (2) realize that international finance is the handmaiden of international commerce, and has no independent function; (3) emancipate themselves from the fear of imports." The work of World Peaceways is largely educational, based on the research of existing agencies. A press release under date of October 29, 1944, took the following stand for international collaboration on economic problems: "If rich United States should try to stay rich, after the war, by going it alone on the international industrial front, we shall fail to achieve our objective. But if we *60 put through -An international plan to make the rest of the world prosperous as well, America will stay rich and eve~n get richer."

The foregoing summary of stands taken on international trade as evidenced by resolutions passed and publications offering proposals for the various problems involved is by no means exhaustive. Although an attempt was made to include the more important bodies, the list is not complete largely because either teir reports are of a wide, fact-finding nature or because they refrain from forulaingany resolutions. Thus, the Institute of Pacific Relations, one of the Most important research groups, was not included above since a study by P. E. Corbett, Chairman of its Pacific Council, is mentioned in an earlier section. Moreover, it should be pointed out that many organizations have not passed trade resolutions because they have been concerned with purely domestic matters. Their failure to act on international problems should not be taken, by any means, as an indication that they are indifferent to international trade.

IV. CONCLUSION The really distinctive feature of the foregoing statements by international and national bodies, private organizations and individuals, is the practically unanimous agreement regarding international trade policies. No one even hints of doing away with trade between nations despite a popular belief that this, rather than political or national ambition, is the chief cause of strife and war. There is no expression to the effect that such international intercourse should cease. On the contrary one of the most dangerous steps would be to cripple se~ierely or prohibit altogether international trade. Peacetime planning should lay great stress on trade as the indispensable contact between and among nations and peoples. There is universal agreement relative to the importance of commodity exports. Yet certain countries, notably the United Kingdom, are much more concerned with securing food and raw materials from abroad; thus they export goods because of the greater need of importing other goods, whereas numerous -countries are more interested, in importing as a basis of paymenit for their potential exports. The statements already noted call for an increased foreign trade, and it is noteworthy that there is no real hostility to commodity imports. Also, the above groups are on record in favor of liberalizing trade barriers. This includes such restrictive arrangements as exchange controls, quotas and embargoes, as well as customs duties. Except for purely strategic reasons, they do not advocate more restrictions. The goal is to treat business questions as business questions., first and foremost.

Failure to Achieve Objectives. A pertinent query is why the foregoing objectives have not been translated into reality. The idea immediately arises that 61 perhaps some of the declarations are devoid of real meaning, since they may be designed mainly in the interests of political expediency or public relations. This charge, doubtless, can be amply supported in certain cases, but if this situation is general then our whole democratic structure of free speech and free expression becomes misleading as well as meaningless. Such an indictment would be serious indeed. A more rational explanation is that there has been a change in thinking on the part of business and non-business leaders, which could not have been foreseen 25 years ago. More liberal attitudes, the result of actual experiences since World War 1, have found their way into the thinking of national and group leaders, even if the rank-and-file may be unwilling or unable to accept the trade declarations formulated by their own membership. The significant fact is that if the members of the above groups choose to exercise their influence in line with their own private polls, their very numbers which represent the great majority of the electorate in democratic countries could achieve astounding political results. 4 There are four reasons why private resolutions and other declarations -of policy are not acted upon favorably; namely, the lack of a national economic policy, the success of political and pressure groups, the absence of sustained support by interested advocates, and finally, the lack of any satisfactory machinery. Precepts and practices of economists, business men, farmers, labor, and government officials are normally at variance; therefore, it is well worth quoting a person who was successively professor of history, lumberman, American Com- mercial. Attach6 at Rome, and Vice Chairman of the U. S. Tariff Commission, Dr. Alfred P. Dennis: "Strictly speaking, our national policy is neither national, economic, nor a policy. It is a patchwork of compromises, the resultant of jarring, conflicting, sectional interests. It is beyond our wit to reconcile the conflicting tariff interests of Iowa and Connecticut" (Annals of the American Academy of Political and Social Science, July 1930). Most students and informed individuals will agree. Political and pressure groups exercise powerful influence. Small minorities composed of highly interested, vociferous, and influential groups establish a minority rather than a majority rule on many public questions. By no means are many such groups to be regarded as unpatriotic or inspired by unworthy motives, for no one can question that considerable economic protection may be necessary if such a protected group is to survive international competition (the political economist merely asks whether it is wise to subsidize the weaker industries). But the existence of special pleaders is "a condition, not a theory." Their actions are not limited to particular interests, since it is not unknown that even foreign trade groups may be less interested, according to President Abbink of the Business Publishers International Corporation, in promoting foreign trade than in "bulwarking a narrow and selfish industrial or agricultural viewpoint" (Journal of Commerce, April 4, 1945). The established protectionist tradition in the United States is the backlog of opposition to liberal trade policies. To which now should be added the vast international complications of strategic de- 62 fense and diplomatic negotiation. It is axiomnatic that trade has been viewed mostly from the standpoint of national interests and rivalries. We should subscribe to the plea by A. P. Dennis, that "in our trade with the world, we shall come to recognize more and more that we stand to profit by trading with, rather than against, our rivals." Then there has been an absence of sustained interest by large public and private groups in putting their expressed principles into practice. The common sense, idealism, and enthusiasm shown at conferences and meetings evaporates after the members have, dispersed-this is characteristic of business and non- business groups alike. One or two officers, including the executive secretary, returns to the national capital or elsewhere, but the engendered momentum quickly disappears. And finally, no machinery is available at the present time for carrying out the expressed goals. Yet there is scant hope that the existing state of nationalsuspicions will be supplanted by a condition of world good-will. unless trade is approached on an international basis. Similarly, at least in the United States, there is no centrally organized group, consisting either of business men alone or a public-private body, which can present to legislators and the people the tremendous stake of foreign trade. Trade is an international orphan.

Usefulness of an International Trade Conference. Mr. Stettinius announced in Chicago, in April, that the Department of State would probably call a, conference dealing with international trade organization within a year. The- San Francisco Conference may implement this proposal under the contemplated Economic and Social Council. There has not appeared any opposition to this plan, which certainly has so much to commend it. The chief danger, however, arises in the possibility of postponement owing to political angles and expediency. It is highly desirable that such a conference should start off under such favorable auspices that its success might be almost a foregone conclusion. But the results of any international gathering cannot be foretold; the longer the time spent in its preparation, the more costly the delay may well become. Further, there is the inevitable handicap of giving economic questions too much of a political slant. Even'the most carefully ordered diplomatic conferences yield meager economic results, hence, this strong political hue together with an inevitable delay over most pressing peace issues suggests the wisdom of an earlier and more workable approach. The International Trade Conference could follow.

Greater Need for a World Trade Agency. No one questions the vital bear- ing of trade upon world peace and security. The evidence is clear. There appears no reason, therefore, why a start cannot be made at once by setting up a world trade agency (or commission) in conformity with the expressed provisions of Chapter IX of the Dumbarton Oaks Agreement. The mere creation of such a body, without specifying details of scope and organization, would be a great step forward. Thus, a start could be made by agreeing upon simple, general objectives such as gathering information, building up a library, preparing for conferences, and working in co-ordination with public officials and private inter- 63 ests. The non-political aspects should be brought clearly into focus and suitably stressed. Every attempt should be made to avoid the possible danger that trade would be largely forgotten in the formulation of international diplomatic machinery. After all, economics should precede politics, and not the reverse. A guide as to a working agenda appears in Department of State Publication 2301 (Spring 1945), where prosperity is conceived of in terms of jobs at good wages, good business, markets for farm products, and better things at lower prices; for illustration, "consumers want to get as much for their money as possible. They want a market place full of attractive choices-goods from the four corners of the earth." And world trade is considered under the headings of seilagreements on trade problems. This program appears to the writer aloehrsatisfactory at the outset. But first, create the Agency; then, within resnbelimits let it work out its own program of study and usefulness. PeietRoosevelt was never more right than when he said that "the only thing to fear is fear itself." This world note is self-evident. Freedom.from Fear, the title of Louis H. Pink's book, develops this idea. Fear plus ignorance and narrow thinking applicable to international trade problems are stern and critical barriers to world peace and security.

F6 y CITIZENS CONFERENCE' ON INTERNATIONAL ECON1\OMIC UNION4 370 LEXINGTON AVE,, NEW YTORK n 17ý N. Y, d The Citizens Conference on International Economic Union is a nlon-partisan, unsubsidized association of individuals and groups. $Alembership is open to all persons. subscribing to the. purposes of the. Coinference, and is of three classes: Subscribing; $3; Sponsoring) $5; Organization $25. Contributions r from are exempt, taxation, Cbecks~may be made payable t4 ERNEST IL.BOGART, Treasurer. d

-BOARD OF DIRECTORS ANDYOFFICERS Louis H..Pinx; Chairman; President, AssocittediHospital Servlcd of New York Enwne, Boeciiueo, Yice-Chastrman; Pr'ofessor of International Lawk, Yald University, Coon,. Hsnsr AzRsfb, Secetdary; Editor, Pkeae Newds, New Yo~rk ERNEST L. BooAar, Treasurer; Professor. of Economics Emneritus, Unpiv'ersity of ,Ilinois d H.ýey Bear, Professor of Economics, University of ELirosG,: MEAss, Professor Kentucky .. of~ geography and Inter- .Li nationidl Trade, Stanford Universi.tyClfri REmseseDonors Bass, President, Occidental ,California College, WELsEY C. MircELLar, Professor of Economics, Columbia University, New Grssnvs-BoorsE, Chairman, York Division of Social Studies, Vrcroe 1. Morais, Dean, School of Busiess Sweet. Briar College, Virginia Administration, 'University tours beosasiELD, of Oregoln' Writer and farmere, Ohio MABEL NEwcossia, Professor and 'Roars E. Cr~eaearr, President, Chairsnan, Depart- Georgia Atlanta University, Mnent of Econo mics, Vassar College, New: York AIRSesEnpeeroy PAeRSON,Chairman, American Sec. KeNNearr CoLErsoEov, Professor of Politital Science, tion, Pan-Pacific Northwestern Uniiversity, Illnois Women's Assn., New York EaNSTesA'1NORs PnTEreSeo, Professor of Economaics 'HARTLEY WV.Ceoss, Professor of Economics, Connecticut College University of Pennsylvania, .MRSe. WILLRDssPOPE; Civic, Leader, Rev. B. WV.Desepser, 8.11, Regent School'of.Corn. Michigln merce CLEVErLAeNDRonoeS, Membetý' City Plansling Com- & Finance,&St Louis University, 'Missouri mission, New RrcnAiso T. *FRAXMEsctEsqres, York International Vice. RicirAs, B. ScANRnnET,JR., Lawyer, N'ewviyork President, United Automohile Workers;, CIO KeLW 2 '2 ichigan,. . ans roearoEooi hop,. UniversCityof Pen fsisylvansa' oniý 2 -RT. Rev. C14ARLES K. GILBEsRr, Suffragan Bishp CLAIWrc*t ofSsensylvssDan;ia ol fielao Protestant Episcopal Diocese of New York CAEcsR KNEDaýsho f~lgoi HEaRYerF. GeRADY,President, American President Tufts College, Maisachusetes Lines, - California., WILLRDciL. Tansip, Trustee, Associated Gig WrLLIAM rEasear HoQ~Nise, Professor of Philosophy, Electric Corporation, ýNew York Harvard. University,, Massachusetts. Rev, Dot. EarNeeTR.PTRATTNEE, Rabibi, Te pie HsAIrjrose HOLT, _President Rollins College; Florida; Emasmu.El, ELiZ4BgTU 1 California. E. lion, Profes4sor of Economics, Iowa oeBtcare rfso fEooist55l5 State College Duke University, North Carolina 2 hDooGAo ,C. JACKS13n, ProfessorEeiuMsaii- 3 RArs0ot WAsse, Director of Research Ind s,etts Institute of Technology Eductin CIO, Washington OTTO T1.MAr.LEsu4 Author, Pennsylvania Wimmrri t. Wssr, Editor, Emporia: Gaseti~e, Kansase

PUBLICATIONS r WANTED-AN ECONOMIC UNION or, NATIONSý, 1943. 25 Cents. THE BPETON WOOjDSAGPX±ME&T-AND WHY IT Is NECESSARY,0 1944, 2! Cents FIRST STEP~S TowAnD ECONOMIC PSACE, 1944. 15 Cents 2 p 2 2 A TRADE AGt!NcY FOR ONE WORLD*, 1945. 5Q Cents Publications are free to Conference ' & members. -'Y< 4

it"' ' 1 2j t22 42'Tht 2' "'2' 2, 2

4frt I222 -May 24, 1945.

Mydear- Sefl'ora Carbonell: ITacknowledge -the recei-opt on April 270-1945., of the teleg~ram whioh you sent- on behalf of Alianga Nacional ?ominiata' de Cuba, supporting the petition of Doctor Jimmiesz,Pztsident of the Panamanian Dole. gat-ion, for perrmanent seats for the Latin American MatioS in the security Cou"n CilI The qiiebtion of te composition of the Security, Council Is under discussion by the Conference and is beflg carefully considered from every standpoint. incerely yours$ For the Secretary General:o

T!. -! "Mo~rosky information Off'icer

$*flora Maria Come z, Carbonell,# ?jresidenta,ý Alianza Nacioncl, Feminista*,do Cuba, Hiabana,. Cuba. CLASS OF SERVICE SYWDOLS

This is a fuI4rate W SEE .R.,NDL=IO'y Lottar Telegram or Cable- NL -Night Letter gram unless its de-, aferred character is indicated by a suitable symbol above or pre- ,JLT=Cable Night Lortet ,ceding the address. A. N. WrLLIAMS Ship Radiog-a V PRESIDENT jj QTANDARD TIM tpito etnto CD 453 INTL=CD HA~a-NA, ;VlA -ALL AMERICA 34 26' ALT)PRE3JrJENTE CONVENCION NACIONES UNIDAS= SFR AN V~-

ALI.ANZA NACIONAL FEMINISTA CUBA JNTERPRETA ANUELOS M~JJJERES PAiS ADHIRlENIJOSE PETICION DOCTOR JIMENEZ PRESIDENTE DELEGACION PANAMA RELATIVO ASIENTO PERMANENTE NACIONES AMERICANAS EN ORGANISMO GARANTIA PAZ= -MARIA GOMEZ CARBONELL PREISDENTAI.

APR 27 1945

` 7 Q-0-L

-~ ~ THE COMPANY WILL APPRECIATE S1UOGESTIONS FROM ITS PATRONS CONCERNING ITS SERVICE Mvr 24, 1945# 1y dear Shirleyt I acknowledge the receipt of your card expressing an interest in.the important work of the United Nations Conference on International Organization and urging that the "D1oors of Palestine be opened.t' As you are no doubt aware,* the primary purpose of the San Francisco Conference is to formulate the best possible charter for an international organization to maintain peace and secourity for anl people of the world regardless, of race,1 color., creed-, .or sex* It is not anticipated that the matter to which your card refers will be the subject of action at this Conference, Sincerel~y yours., For the Secretary General:

P. T. 'McCrosIlr Inform-ation Officer

Miss Shirley L.. Canltor, 2076, Wallace Avenue, New Yroizik 60., New Yorko

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