attempt has been made to assess the current dollar value of these commercial imports from the areas affected, but it must be in the region of $250,000,000 to $300,000,000 the principal items being tin from the Far East; nickel, copper, lead, and zine from Canada; manganese, chrome ore, and asbestos from South Africa; manganese and mica from India; cobalt and tin from Belgian Congo; and manganese from the Gold Coast.

The above figures are all in short tons except where otherwise noted and except for chrome, bauxite, and manganese, which are in long tons, as is customary in the trade.

In addition, it might be possible to obtain some of the following commodities, but the available data provide little basis for estimating a rate over a 20-year period:

Except for uranium, the aggregate value of these materials would not be large in relation to the totals shown.

EXHIBIT 63

[H. Rept. No. 1585, 80th Cong., 2d sess., Union Calendar No. 738]

FOREIGN ASSISTANCE ACT OF 1948

MARCH 20.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. EATON, from the Committee on Foreign Affairs, submitted the following

REPORT

[To accompany S. 2202]

The Committee on Foreign Affairs, to whom was referred the bill (S. 2202) to promote the general welfare, national interest, and foreign policy of the United States through necessary economic and financial assistance to foreign countries which undertake to cooperate with each other in the establishment and maintenance of economic conditions essential to a peaceful and prosperous world, having considered the same, report favorably thereon with amendments and recommend that the bill as amended do pass.

V. ANALYSIS OF TITLE I OF THE BILL: EUROPEAN RECOVERY PROGRAM

A. BASIC OBLIGATIONS ASSUMED AS CONDITIONS OF PARTICIPATION IN THE EUROPEAN PROGRAM

The nations within the scope of this program will qualify for assistance through the steps, first, of joining with the other nations concerned in the program of cooperation for restoration of the European economy and, second, of signing a bilateral agreement with the United States.

The basic agreements will be specific and intricate. They must be predicated on and derived from the details applicable to each respective participating country. The work of negotiating them necessarily will be postponed until the Congress has finally determined the basic conditions. To afford the time necessary for the making of proper agreements and yet to avoid a hiatus in getting the program under way, provision is made for limited interim assistance.

The bill as originated by the President specifies that for 3 months any country signifying by definite action its intention of going along with the program may be extended any appropriate aid authorized by the program. The bill as it comes from the Senate, in addition to the above, specifies that any CEEC nation may be extended relief-type aid through June 30, 1948.

The substance of the cooperative pledge is of such importance as to merit specific review. It is stated as follows in the CEEC report:

"In order to insure that the recovery program is carried out, the 16 participating countries pledge themselves to join together and invite other European countries to join with them in working to this end. This pledge is undertaken by each country with respect to its own national program, but it also takes into account similar pledges made by the other participating countries. In particular, each country undertakes to use all its efforts:

"(i) to develop its production to reach the targets, especially for food and coal;

"(ii) to make the fullest and most effective use of its existing productive capacity and all available manpower;

"(iii) to modernize its equipment and transport so that labor becomes more productive, conditions of work are improved, and standards of living of all peoples of Europe are raised;

"(iv) to apply all necessary measures leading to the rapid achievement of internal financial monetary and economic stability while maintaining in each country a high level of employment;

"(v) to cooperate with one another and with like-minded countries in all possible steps to reduce the tariffs and other barriers to the expansion of trade both between themselves and with the rest of the world, in accordance with the principles of the draft charter for an International Trade Organization;

"(vi) to remove progressively the obstacles to the free movement of persons within Europe;

"(vi) to organize together the means by which common resources can be developed in partnership."

H. STOCK-PILING PROVISIONS

One of the points to be covered in the bilateral agreements to be undertaken as a condition for participation in the benefits of this recovery program is stated as "facilitating the transfer to the United States by sale, exchange, barter, or otherwise for stock-piling purposes" and under terms and conditions to be agreed upon of materials that are required by the United States because of deficiencies or potential deficiencies in its own resources (sec. 115 (b) 5). The phrase "otherwise" would indicate the possibility of acquisition as repayment to the United States, but this is strengthened by the insertion of paragraph 9 in the same subsection, which makes mandatory upon the participating countries the recognition of the principle of equity in respect to the drain upon the natural resources of the United States and of the recipient countries through providing a schedule of availabilities for United States purchase of strategic materials at world-market prices in order to secure an equitable share of such materials for United States industry.

Further, the act protects, through an agreement to negotiate, the rights of access by United States enterprise for the development of the materials on terms

of national treatment in the territories of the countries concerned, and still urther provision for the negotiation of repayment through an agreed percentage f increased production of such materials where practicable (par. 10). Section [11 (c) also deals with stock-piling materials as one of the provisions governng the terms of repayment which the Administrator is authorized to accept for id. Section 117 (a) provides for funds to be made available by the Administrator to secure by agreement and wherever practical an increase in the production in the participating countries of materials which are needed by the United States because of domestic deficiencies, actual or potential.

Insofar as is legislatively possible, therefore, the bill may be said to encourage stock-piling through development, purchase, or repayment through strategic materials-those deficient in the United States.

EXHIBIT 64

[PUBLIC LAW 472-80TH CONGRESS]

[CHAPTER 169-2D SESSION]

[S. 2202]

AN ACT To promote world peace and the general welfare, national interest, and foreign policy of the United States through economic, financial, and other measures necessary to the maintenance of conditions abroad in which free institutions may survive and consistent with the maintenance of the strength and stability of the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Foreign Assistance Act of 1948."

TITLE I

SEC. 101. This title may be cited as the "Economic Cooperation Act of 1948."

FINDINGS AND DECLARATION OF POLICY

SEC. 102. (a) Recognizing the intimate economic and other relationships between the United States and the nations of Europe, and recognizing that disruption following in the wake of war is not contained by national frontiers, the Congress finds that the existing situation in Europe endangers the establishment of a lasting peace, the general welfare and national interest of the United States, and the attainment of the objectives of the United Nations. The restoration or maintenance in European countries of principles of individual liberty, free institutions, and genuine independence rests largely upon the establishment of sound economic conditions, stable international economic relationships, and the achievement by the countries of Europe of a healthy economy independent of extraordinary outside assistance. The accomplishment of these objectives calls for a plan of European recovery, open to all such nations which cooperate in such plan, based upon a strong production effort, the expansion of foreign trade, the creation and maintenance of internal financial stability, and the development of economic cooperation, including all possible steps to establish and maintain equitable rates of exchange and to bring about the progressive elimination of trade barriers. Mindful of the advantages which the United States has enjoyed through the existence of a large domestic market with no internal trade barriers, and believing that similar advantages can accrue to the countries of Europe, it is declared to be the policy of the people of the United States to encourage these countries through a joint organization to exert sustained common efforts as set forth in the report of the Committee of European Economic Cooperation signed at Paris on September 22, 1947, which will speedily achieve that economic cooperation in Europe which is essential for lasting peace and prosperity. It is further declared to be the policy of the people of the United States to sustain and strengthen principles of individual liberty, free institutions, and genuine independence in Europe through assistance to those countries of Europe which participate in a joint recovery program based upon self-help and mutual cooperation: Provided, That no assistance to the participating countries herein contemplated shall seriously impair the economic