CONTENTS

235

691

340

207

Statement by~

Page

Acheson, Hon. Dean, Secretary of State..
Aiken, Hon. George D., a United States Senator from the State of
Vermont--

742

Arnold, Gen. William H., Director, Joint American Military Mission

for Assistance to Turkey -----

Batt, Hon. William L. United States member, Defense Production

Board.-

Bennett, Dr. Henry G., Administrator, Technical Cooperation Ad-

ministration, Department of State------

409

Bissell, Hon. Richard, Deputy Administrator, ECA...

139

Bolte, Cen. Charles L., Chairman, Inter-American Defense Board.-- 396

Bradley, Gen. Omar N., Chairman, Joint Chiefs of Staff...

Cabot, Thomas D., Director, International Security Affairs, De-

partment of State ----

479

Collins, Gen. J. Lawton, Chief of Staff, United States Army---

133

Douglas, Hon. Paul H., a United States Senator from the State of

Illinois ---

720

Duncan, Admiral Donald, B., Deputy Chief of Naval Operations.--
Foster, Hon. William, Administrator, Economic Cooperation Ad-
ministration ----

69
Griffin, R. Allen, Director, Far East Program Division, ECA ----- 530, 570
Gruenther, Lt. Gen. Alfred M., Chief of Staff, Supreme Headquarters

Allied Powers, Europe---
Hickerson, Hon. John D., Assistant Secretary of State for United
Nations Affairs----------

670

Holmes, Horace, agriculturalist for Department of State and Depart-

ment of Defense ----

457

Humelsine, Hon. Carlisle, Deputy Under Secretary of State.

515

Jenkins, Gen. Reuben, former Chief of Joint United States Mission

for Assistance to Greece.----

345

Katz, Hon. Milton, ECA special representative for Europe
Kerr, Hon. Robert S., a United States Senator from the State of
Oklahoma-------

389

Kibler, Gen. A. Franklin, Director, Joint American Military Advisory

Group for Europe ---------

Malony, Gen. H. J., Department of Defense representative, Southeast

Asia Policy Coordinating Committee------

530

Marshall, Hon. George C., Secretary of Defense. --

25

McGhee, Hon. George C., Assistant Secretary of State for Near

Eastern, South Asian, and African Affairs...

--- 317, 652

Miller, Hon. Edward G., Jr., Assistant Secretary of State for Inter-
American Affairs..

390

Olmsted, Brig. Gen. George H., Deputy Assistant Chief, G-4, De-

partment of the Army..

301

Pawley, Hon. William D., Special Assistant to the Secretary of State - 235

Perkins, Hon. George W., Assistant Secretary of State for European

Affairs -------

126

Robillard, Apt. George N., USN, Assistant Chief of Naval Research

for Patents and patent counsel for the Navy--

524

Rusk, Hon. Dean, Assistant Secretary of State for Far Eastern

Affairs.---------------

530

- Tu::inn

Scott, Gen. S. L., Director, Office of Military Assistance

A csic

297

Spoffoid, Hon. Charles M., United States Deputy to North Atlantic
* Council for NATO Operations in Europe. -

235

Taft, Hon. Robert A., a United States Senator from the State of Ohio.. 738

Wheeler, Leslie A., consultant to the Iran foreign-aid program, De-

partment of State. ----

684

235

235

Page

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50

80

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114

115

115

116

122

151

182

184

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-

-

-

-

-

-

-

-

Insertions (additional information supplied):

Import fees on aid: Letter of August 8, 1951, to Senator Tom Connally

from Mr. Charles A. Coolidge, Deputy Director, International Se-

curity Affairs, Department of State ----

--------------

Defense expenditures and gross national product:

Table:

Expenditures and GNP in country's own fiscal year...

Comparative capacity to bear defense cost: Europe and

United States -

Taxation (United States fiscal year 1951-52 data).---

The ECA production assistance drive. ------

Estimated ECA-financed imports, fiscal year 1952: France and DOT's.

Assistance to shipbuilding in Trieste for Italy: Trieste shipbuilding

program -

Aid to Yugoslavia:

Table:

United States assistance 1944 to June 30, 1951.----

Assistance from other countries.---

Assistance from international organizations.--

Electric power program in Greece -----

Table: Estimated distribution of country aid fiscal year 1952 .

Commitment of balances available in local currency (95 percent)

counterpart account as of June 30, 1951.---

Table: Status of European local currency (95 percent) counterpart

account as of June 30, 1951.---

Table: Total Government and defense expenditures and gross national

product. ----

--------

Table: Gross debt outstanding of European countries. -

Table: Tax receipts of European countries.

Table: Tax receipts and gross debt outstanding of selected Far East

countries

Chart: Actual and authorized length of Army conscript period.----

Chart: Comparison of earning power in terms of hours of labor..

Statement of Ambassador Milton Katz....

Charts prepared by Department of Defense:

Military assistance by Department.-------

Fund distribution ------

Military assistance planned fund utilization (Western Europe)..

Total government expenditures versus defense expenditures, West-

ern Europe. ----

Comparison of fund utilization: MDAP versus proposed fiscal

year 1952 legislation.-------

Equipment end-item programing-------

Chart: End item programing procedure...

British taxes on corporate income...

Statement by Maj. Gen. Stanley L. Scott..

Table: MDAP appropriations compared with deliveries -

Personnel procedures for military assistance advisory groups.

Statement of Hon. George C. McGhee, Assistant Secretary of State for

Near Eastern, South Asian, and African Affairs.---

Land reform ---------------

Information on the operations of the Anglo-Iranian Oil Co.: Letter to

Senator Brewster from Paul Dickens, United States Treasury repre-

sentative, Embassy of the United States, London, United Kingdom.

Cost estimate factors in proposed 1952 point 4 program

Statement of Edward G. Miller, Jr., Assistant Secretary of State for

Inter-American Affairs ----

Testimony of Dr. Henry G. Bennett, Administrator, Technical

Cooperation Administration.---.

Loans by Export-Import Bank and International Bank for Recon-

struction and Development to Latin America, February 1934

through December 31, 1950 (table)-----

Summary loans by Export-Import Bank and International Bank for.

Reconstruction and Development (table) ------

Loans by Export-Import Bank and International Bank for Recon-

.struction and Development to Latin America, July 1, 1945,

through December 31, 1950 (table)------

247

Page

418

418

419

479
550

551
553

557

570

Insertions (additional information supplied)—Continued

Summary loans by Export-Import Bank and International Bank for

Reconstruction and Development (table)--

Export-Import Bank and International Bank for Reconstruction and

Development loans in 1951 through March 31, 1951 (table)------

Export-Import Bank and International Bank for Reconstruction and

Development activities in Latin America, by countries, for the

years 1946–50..

----

Statement of Thomas D. Cabot, Director, International Security

Affairs, accompanied by Charles Coolidge -----

Status of title III funds available to defense on June 30, 1951.-----

Estimates of unobligated and unexpended fiscal year 1951 balances,

by sections, proposed mutual security bill.-----

Supplementary statement on southeast Asia programs, fiscal year 1951.

Estimated gold and short-term dollar resources of countries receiving

aid under the mutual security bill..--.

Fiscal year 1952 program (illustrative) all southeast Asia countries:

Summary table-Estimated dollar cost of program by country and

major cost components.---

Statement of R. Allen Griffin, Director, Far East Program Division,

Economic Cooperation Administration. -

Determination of loan and grant assistance to southeast Asia and

other underdeveloped areas.--

External public debt and debt service charges of Indonesia. ----

Statement of loan grant policy in Europe and the underdeveloped

areas.--------

Capital investment projects, Far East program------------

European industrial projects.----

Loans and grants, during fiscal 1950 and 1951, from the overseas

development fund in support of programs and projects in the de-

pendent overseas territories ------

List of capital-investment projects presented and approved as justi-

fication for grant aid from the overseas development fund.-------

External public debt of far eastern countries receiving ECA aid ----

Statement of Hon. John D. Hickerson, Assistant Secretary of State..

Relief and rehabilitation of Korea-Resolutions adopted by the Gen-

eral Assembly, December 1, 1950.

---

UN members having troops in Korea

The St. Lawrence seaway, statement of Senator Blair Moody -

Administration of foreign aid, letter to Senate Connally from the

Honorable Charles Sawyer, Secretary of Commerce-----

577

604

609

611

613

615

APPENDIX

Communications and other material addressed to the committee for

insertion in the record :

Letter to Senator Paul H. Douglas from Paul E. Klopsteg, director of

research, Northwestern University, Evanston, Ill.

Letter to Senator Tom Connally from James G. Patton, president,

National Farmers Union ------

Statement of E. C. Earle, Council for Independent Business ---

Statement on the point 4 program on behalf of the Detroit Board of

Commerce ---

Statement on the Economic Cooperation Administration Act on behalf

of the Detroit Board of Commerce ------

--------------

Statement on behalf of Aircraft Industries Association..

-----

Letter to Hon. James P. Richards from American Christian Palestine

Committee -------

Statement of George D. Riley, member, national legislative committee,

American Federation of Labor..

Pago

Communications and other material addressed to the committee for

insertion in the record-Continued

Letter to Senator Connally from Norman N. Littell, chairman,

committee on foreign economic cooperation, international and

comparative law section, American Bar Association; chairman,

committee on international economic cooperation, International

Bar Association.--

-------

Statement of National Council of Jewish Women ----

-------

Statement of J. T. Sanders, legislative counsel, the National Grange.--

Statement of Bernard Weitzer, national legislative director, Jewish

War Veterans of the United States of America.-.

Statement of Research and Policy Committee of the Committee for

Economic Development by Meyer Kestnbaum-----

Statement of Albert E. Noelte, chairman of the committee on patents

of the National Association of Manufacturers -

Statement of William Green, president, American Federation of Labor.

782

783

789

790

TerS

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-

-

-

-

-

-

-

-

797

799

MUTUAL SECURITY ACT OF 1951

THURSDAY, JULY 26, 1951

UNITED STATES SENATE
COMMITTEE ON FOREIGN RELATIONS

Washington, D.C. The committee met, pursuant to call, in room 219, Senate Office Building, at 10:30 a. m., Senator Tom Connally (chairman of the committee) presiding. .

Present: “Senators Connally, Green, Gillette, Wiley, Smith of New Jersey, Hickenlooper, Lodge, and Brewster. Also present: Senator Dworshak. The CHAIRMAN. The committee will come to order.

The committee has before it for consideration the foreign aid program.

We have the pleasure of having with us this morning the Secretary of State, who will open the hearing by presenting a statement. Do you have a prepared statement, Mr. Secretary? Secretary ACHESON. Yes, I have, Mr. Chairman.

The CHAIRMAN. You will be subject to questioning after the statement; is that right?

Secretary ACHESON. Yes, sir.

The CHAIRMAN. Very well. All right, Mr. Secretary, you may proceed.

STATEMENT OF HON. DEAN ACHESON, SECRETARY OF STATE

Secretary ACHESON. Mr. Chairman, members of the committee, I am very happy to appear before your committee in support of the Mutual Security Program. I know that many of you have recently been abroad to study at first hand some of the problems involved in such a huge undertaking. All of you are familiar with the main problems with which we are confronted and with the objectives of our policy.

But I would like to review with you some of the major reasons why we believe that this program is an essential and vital part of our country's defense and foreign policies.

The Mutual Security Program is based on our demonstrable need for strength and support in the rest of the free world. The need for such support is as great today as it has ever beeen. The present armistice negotiations in Korea, irrespective of their final outcome, have not affected, and will not affect, that fundamental fact. It is essential that we do not take the easy course and delude ourselves into thinking otherwise.

When the fighting was going against us in Korea it was easier to persuade ourselves and our friends abroad of the necessity for a