Senator BREWSTER. Now you refer to a proposal for expansion, I think the term was.

This document which I have here refers to proposals for consideration by an international council for trade and employment. Do I understand it is the same thing?

Mr. WILCOX. Yes, sir.

Senator BREWSTER. The terminology is different?

Mr. WILCOX. In the document which bears on the cover: "Proposals for Expansion of World Trade and Employment," after a preface, on page 8 there appear details under the heading: "Proposals for Consideration by an International Conference on Trade and Employment." It is the same document.

Senator BREWSTER. One of the subsidiary headings under the broader title you speak of?

Mr. WILCOX. The document to which the British-American statement refers is on pages 8 to 28 of this longer document with which they were then working in typescript.

Senator BREWSTER. This one here is the joint statement issued at the time of settlement of the commercial and financial agreements?,

The second item is what is termed an understanding reached, a commercial policy joint statement by the United States and United Kingdom which was a purely executive arrangement on which the negotiations would proceed in accordance with the principles laid down in this document. That document-do they mean this one you referred to?

Mr. WILCOX. They mean the last 20 pages of the pamphlet headed "Proposals."

The CHAIRMAN. Doctor, awhile ago you gave an exact quotation on the British attitude toward the instant proposal; do you remember what that one was?

Senator BREWSTER. I have that here.

Do you have more copies of that available?

Mr. WILCOX. I do not believe I have any here, but they are readily available.

The CHAIRMAN. The quotation I have reference to is one that the doctor himself read awhile ago.

Mr. WILCOX. In regard to full agreement on all important points in the proposal, is that what you mean?

The CHAIRMAN. I think so.

Mr. WILCOX. I did not read the rest of it, but I will read the whole paragraph.

The CHAIRMAN. That is what I had in mind.

Now, what was the date of that?

Mr. WILCOX. That was December 6, 1945.

The CHAIRMAN. Now, is that a part of the joint statement by the United States and United Kingdom following the lease-lend settle

ment?

Mr. WILCOX. Yes, sir.

The CHAIRMAN. In that same document, in paragraph 2, a statement occurs, and I am reading as follows:

They

the two Governments

have also taken full cognizance of the general obligations assumed by them in article VII of the mutual-aid agreement of February 23, 1942, and the under

standings agreed upon this day with regard to commercial policy. Pursuant to this settlement, both Governments will continue to discuss arrangements for agreed action for the attainment of the economic objectives referred to in article VII of the mutual-aid agreements.

If I have any point in what I have quoted, it is that the British Government has in effect simply agreed to continue discussion of these matters; that it has not completely committed itself to this proposed organization.

Mr. WILCOX. That is perfectly true.

The positions of the two Governments are identical.

Senator BREWSTER. In other words, they both mutually agree to go forward with discussion and that the negotiations would proceed on the general terms outlined but that, naturally, each reserved full freedom of action.

Mr. WILCOX. That is true.

The CHAIRMAN. Proceed, sir.

Mr. WILCOX. Now, I have here statements similar to differing in detail, but similar to-the joint United States-United Kingdom statement which I have read with respect to certain other governments.

Now, I do not think it would be worth while to read through the texts of these in detail, but I can name the countries and submit them for the record.

The CHAIRMAN. If you please.

Mr. WILCOX. Belgium, October 19, 1945; Greece, January 25, 1946; Poland, April 24, 1946; France, May 28, 1946; Turkey, May 29, 1946. Senator BREWSTER. Were these others the settlement of lend-lease? Were they incident to those settlements?

Mr. WILCOX. Not all of them.

Senator BREWSTER. Turkey was what attracted my attention; because they were not eligible for lend-lease, were they?

Mr. WILCOX. They were all exchanges of notes with reference to future negotiations with respect to international commercial policy and a statement that neither country will take action until these negotiations occur which would prejudice the negotiations.

The CHAIRMAN. Doctor, when you finish that, I believe it would be a good idea to get into the record as promptly as possible the names of the countries which are members of the preparatory committee working on this. (See p. 60.)

Mr. WILCOX. I shall be glad to do so.

Senator BREWSTER. Were those incident to some other negotiations, either loans or settlements, or something of that nature?

Mr. WILCOX. They were generally incident to other economic discussions; yes, sir.

Senator BREWSTER. We made a loan to Turkey, did we not, at one time, for $25,000,000 or something of that kind?

Mr. WILCOX. I believe so.

Senator BREWSTER. Was it incidental to that that we got this statement? I think it has relevance. I do not remember the terminology that the chairman used. I believe he said "feedbag theory."

Mr. WILCOX. I believe that most of these are incident to financial settlements.

The next one is Czechoslovakia, November 19, 1946, and that is a pure exchange of notes.

Senator BREWSTER. I think when you put these quotations in, if you would include with it a statement of what the particular nature

of the transaction was at the time this was made, that would indicate at least in general terms. If we were advancing them $25,000,000, $50,000,000, or $100,000,000 at the time, they naturally were inclined to pretty agreeable in this conversation, and I think to the extent that affected their attitude or arrangements it might have some significance.

be

Mr. WILCOX. The last of these items is the Netherlands, December 5, 1946. The character of thte statement appears in the text in every

case.

Senator BREWSTER. Yes.

Mr. WILCOX. The next item is the resolution-

Senator BREWSTER (interposing). Do we have those as exhibits, distinct from the record?

The CHAIRMAN. I am familiar with what the doctor is reading from, and in the printed record we will have quite a little matter that we will not develop fully during the hearing.

Senator BREWSTER. If this could be an appendix, and have the documents as appendixes, it would save the record somewhat so that the record will read much more rapidly, as we simply have the citations and excerpts.

The CHAIRMAN. We will fix the record up after we finish in here. Go ahead, Doctor.

(The texts of the agreements with the countries mentioned appear in exhibit IX.)

Mr. WILCOX. The next item is the resolution of the Economic and Social Council, dated March 5, 1946, regarding the calling of an international conference on trade and employment.

(The resolution is as follows:)

ECONOMIC AND SOCIAL COUNCIL

RESOLUTION REGARDING THE CALLING OF AN INTERNATIONAL CONFERENCE ON TRADE AND EMPLOYMENT

The Economic and Social Council, considering it essential that the cooperative economic measures already taken be supplemented by further international measures dealing directly with trade barriers and discriminations which stand in the way of an expansion of multilateral trade and by an undertaking on the part of nations to seek full employment.

1. Decides to all an International Conference on Trade and Employment, in the latter part of 1946, for the purpose of promoting the expansion of production, exchange, and consumption of goods;

2. Constitutes a Preparatory Committee to elaborate an annotated draft agenda, including a draft convention, for consideration by the Conference, taking into account suggestions which may be submitted to it by the Economic and Social Council or by any Member of the United Nations;

3. Suggests, as a basis of discussion for the Preparatory Committee, that the agenda include the following topics:

(a) International agreement relating to the achievement and maintenance of high and stable levels of employment and economic activity.

(b) International agreement relating to regulations, restrictions, and discriminations affecting international trade.

(e) International agreement relating to restrictive business practices. (d) International agreement relating to inter-governmental commodity arrangements.

(e) Establishment of an international trade organization, as a specialized agency of the United Nations, having responsibilities in the fields of (b), (c), and (d) above;

4. Requests the Preparatory Committee, when considering the foregoing items, to take into account the special conditions which prevail in countries whose manufacturing industry is still in its initial stages of development, and the

questions that arise in connection with commodities which are subject to special problems of adjustment in international markets;

5. Requests the Preparatory Committee to report to a subsequent session of the Council recommendations regarding the date and place of the Conference and the agenda (including a draft convention) and also what States, if any, not Members of the United Nations, should be invited to the Conference on Trade and Employment;

6. Appoints as Members of the Preparatory Committee the representatives of the Governments of the following countries: Australia, Belgium, Luxembourg, Brazil, Canada, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, Netherlands, New Zealand, Norway, South Africa, USSR the United States of America, and the United Kingdom.1

This resolution, I believe, is also reproduced in the report of the Preparatory Committee, which the members of this committee have. But this is the next item in chronological order.

After the issuance of the proposals, this interdepartmental committee structure went to work on the development of a "Suggested Charter" which was purely an American document. When it was published, it was published solely on the authority of this Government, and no other government had stated that is was committed to it in any

way.

This document was sent on July 24, 1946, to the Speaker of the House, the President pro tem of the Senate, the majority leader of the House, the majority leader of the Senate, the chairmen of the Foreign Relations Committees in the House and Senate, and the ranking minority members of the Foreign Relations Committees in the House and Senate.

I have here a copy of the letter of transmittal with which it was sent, to the chairman of the Foreign Relations Committee of the Senate which I shall file.

(The letter is as follows:)

Confidential.

The Honorable TOM CONNALLY,

United States Senate.

JULY 24, 1946.

MY DEAR SENATOR CONNALLY: You will recall that at the time of the conversations which led up to the signature of the financial agreement with the United Kingdom last December, the Department of State published a document entitled "Proposals for Expansion of World Trade and Employment." At that time the British Government, in a statement accompanying the financial agreement, indicated that it was "in full agreement on all important points in these proposals and accepts them as a basis for international discussion; and it will, in common with the United States Government, use its best endeavors to bring such discussions to a successful conclusion, in the light of the views expressed by other countries."

In statements before the committees of the Senate and the House of Representatives considering the legislation to implement the financial agreement, and during the debates on that legislation in both branches of the Congress, it was made clear that the ability of the British Government to implement is agreement with the substance of the Proposals for Expansion of World Trade and Employment was closely linked with the approval of the financial agreement. The possibility of achieving general acceptance and adoption of these proposals, which we consider essential to the revival and stimulation of international trade on a multilateral, nondiscriminatory basis, was also dependent on the outcome in the Congress of the British financial agreement.

In the months since the issuance of the proposals and the signature of the British-loan agreement, an interdepartmental organization has been actively engaged in the task of translating into more specific terms the rather broad principles set forth in the proposals, for study and comment by our own people as well as by other governments. Work on the first draft of this document has now

1 These nineteen nations became the "Eighteen Nations" by reason of Russia's nonattendance at meetings of the Preparatory Commission.

been completed, and a copy is enclosed. The document is set up in the form of a draft charter of an International Trade Organization, comprising not only our present ideas regarding the structure of such an organization but also our views on the questions of substance which the member nations of such an organization should agree upon in the fields of governmental restrictions on internatioal trade, private barriers to trade, national employment policies as they affect trade, and commodity problems.

The United Nations Economic and Social Council, on February 18, 1946, in anticipation of the proposed International Conference on Trade and Employment, which it is hoped may convene in the late summer or early fall of 1947, appointed a group of 18 countries, including the United States, as a Preparatory Committee for that Conference. The first meeting of the Preparatory Committee is scheduled for London on October 15.

We are in process of circulating copies of the enclosed document for study by the other nations which will meet with us in the Preparatory Committee at London in October. We also propose at an early date to publish this document and give it as wide circulation as possible in order to stimulate discussion of the important issues involved and to. obtain the views of interested individuals and organizations. Following consideration by our own people and other countries, it is hoped that there will emerge in the next several months a draft charter for final action at the International Trade Conference. The instument resulting from that Conference would be presented to the Congress for approval, late in 1947 or early in 1948.

After you have had an opportunity to study the enclosed document, I will be happy either to have your comments in writing or to arrange for whatever diseussion you may wish to have upon the contents.

In substance the enclosed document does not go beyond the proposals issued last December and which were discussed with various members of the Congress at that time. The issues involved are of the highest importance, affecting the economic welfare of every citizen of our country. I sincerely believe that the adoption of the program here proposed will make an important contribution to economic security and hence to the peace of the world.

Sincerely yours,

For the Secretary of State:

W. L. CLAYTON, Assistant Secretary.

Enclosure: Suggested draft of a charter for an International Trade Organization of the United Nations.

Mr. WILCOX. This draft was published on September 2, 1946, and that is the Suggested Charter for an International Trade Organization of the United Nations. That is purely a United States document. It is the first draft of a charter. You might call it the Washington draft. Of course, it has now been superseded.

(The suggested charter appears as exhibit III.)

Senator LUCAS. What was that last statement, sir?

Mr. WILCOX. The Washington draft has now been superseded by two subsequent drafts.

The CHAIRMAN. That was the draft put in the mill at London for consideration at the United Nations?

Mr. WILCOX. That is right, sir.

The CHAIRMAN. That is the draft that has touched off the subsequent proceedings by the nations?

Mr. WILCOX. That is true.

Senator BREWSTER. What was the date of that?

Mr. WILCOX. It was published September 20, 1946.

I have here a copy also of the release that was given out at the time

it was published which contains a summary of the draft.

The CHAIRMAN. When did you start your public hearings?

Mr. WILCOX. The public hearings were not held on that draft. They were held on the London draft.

The CHAIRMAN. Exactly.