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basis, recognizing that it is in the best interest of the United States that, by assisting to maintain transportation systems and develop the natural resources and industrial capacities of the other Americas, the resultant rising standard of living and increase of buying power would not only strengthen the nations of the Western Hemisphere measurably, but also provide greater outlets for United States capital, technical skill, and goods than have existed heretofore.

The objectives of the Department of Transportation and Economic Development, therefore, are:

1. To cooperate, in accordance with the foreign policy of the United States, with the other American republics in the sound and economic development of certain of those countries in the best interests of the United States and the other American republics.

2. To provide technical advice and instructional opportunities for industrial and transportation officials and other personnel of the other Americas.

3. To furnish upon request, missions of technical advisors in the fields of highway and inland waterway transportation, rail, air, and ocean shipping transportation.

4. To encourage the use of United States products and the adoption of United States standards, organization, and operational methods, in the industrial and transportation systems of the other American republics.

Operations.-The Department of Transportation and Economic Development maintains a small headquarters staff in Washington for the direction and planning of its operations.

In the transportation field the Department operates primarily through missions of widely experienced transportation specialists, usually on leave of absence from their companies in the United States and the necessary administrative personnel. The strength of the missions used thus far has varied from 1 to 50 technicians. Help given by these missions includes advice in improving operations so as to carry more tons with limited equipment available, improving quality and speed of equipment repairs, extension of transportation lines necessary in the emergency, and in long-range planning. The Department also encourages the proper United States Government agencies to make their training schools available to selected students from the American republics, such as the Maritime Commission's school for merchant marine officers, the Civil Aeronautics Administration schools for civil aviation, and to assist where necessary in bringing the students to the United States and returning them. It further encourages the proper United States Government agencies to establish training schools at the request of the American republics, such as for the training of civil aviators. This usually requires only the services of one or two men widely experienced in their field.

There is close cooperation with the country commissions of the Inter-American Development Commission and the parent commission in the planning of economic development programs in the other American republics. The Department and the parent commission of the Inter-American Development Commission make available upon request such technical missions as may be required.

The Department works in close cooperation with the Inter-American Financial and Economic Advisory Committee through the Inter-American Development Commission and directly, as the occasion may require, in the implementation of the resolutions of the meeting of foreign ministers of the American republics held at Rio de Janeiro in January 1942. It also implements the recommendations of the conference of the Inter-American Development Commissions held in New York in May 1944.

The Department cooperates with American advertisers in connection with the maintenance of advertising budgets in the other American republics during the emergency period.

All projects are cleared with the appropriate agencies of the United States Government, particularly the Department of State, the Foreign Economic Administration, and the Department of Commerce in line with the customary procedure of the Office of Inter-American Affairs.

Mr. Harrison. We are trying to do an orderly job of decreasing activities—not simply closing down without any particular plan The objective is to have some of them financed on a cooperative basis

INTER-AMERICAN DEVELOPMENT COMMISSION

There is one phase of the Department's activities, the Inter-American Development Commission, that we are endeavoring to have financed not only by the private nationals of this county, but also by the governments of the other American republics. I offer for the record the following justification: Estimated obligations: 1945.

$100,000 1946.

62, 000 2. Inter-American Development Commission--Purposes and accomplishments of the Commission.--The Commission, an international body, was created by act of the Inter-American Economic Financial Advisory Committee on January 15, 1940, and reaffirmed by resolution at the meeting of ministers of foreign affairs in Rio de Janeiro in the early part of 1942. Its primary objective the development of natural resources, trade, and industry of the Americas, is of greatest wartime as well as long-term importance to the United States and to each of the other American republics. The parent commission operates in Washington, and there are local national commissions in each of the 21 republics. These commissions are composed of government representatives and citizens prominent in financial, industrial, and engineering fields in their respective countries. The United States Commission has a liaison with the Committee for Economic Development, formed by many outstanding businessmen of the United States and with the sponsorship of the Department of Commerce.

Mr. WIGGLESWORTH. How long is it going to take to turn them over?

Mr. HARRISON. About a year, because of certain meetings that will be held in 1946 in regard to the program.

SPECIAL PROJECTS

Mr. WIGGLESWORTH. You have some special projects there?

Mr. HARRISON. Yes; we have a series of special projects. I offer for the record the following justification:

DEPARTMENT OF TRANSPORTATION AND ECONOMIC DEVELOPMENT

Program expense Estimated obligations: 1945

$750, 000 1946.

200, 000 1. Transportation and economic development projects.—This program provides for the implementation of the objectives of the Department of Transportation and Economic Development.

In the transportation field the Department has sent missions of widely experienced transportation specialists to assist transportation officials of the other American republics. These missions have kept the Office advised of the development of the several forms of transportation in each of these republics and the extent to which basic needs, both of the country and the war effort, are served. These funds are also used to bring to the United States for tours of inspection, officials of the local, national, or State governments connected with transportation. The officials study the United States transportation system operating under heavy war pressure and under Government emergency controls. Their tour usually includes visits to repair shops, to manufacturing plants, as well as seaports and airports.

In the field of economic development the Department primarily extends cooperation for the economic development of the other American republics by encouraging private enterprise to undertake sound programs utilizing private capital for the purpose. The Department assists in the development of these programs by making available the services of technical personnel during the initial stages. The facilities of the Inter-American Development Commission and its local national commissions are used in this connection.

An example of this type of cooperation is the work that was undertaken with the Mexican-American Commission for Economic Cooperation. With the assistance of thi Department this international commission has approved projects urgently needed for the economic development of Mexico. The results of this work are summarized in the following announcement made in January 1945: “The Commission has approved a total of 58 development projects, of which 20 were the total major projects submitted for the minimum 1944 program; 31 were included in the long-range report of subcommittee on industrial devclopment, and 7 were important miscellaneous projects."

Thus the United States has cooperated with Mexico by making available capital equipment to the extent consonant with the war effort and thus absorbing a certain amount of the dollar balance which Mexico has accumulated by reason of the United States procurement program. The way has thus been paved for longterm economic cooperation between the two countries and can provide a much needed market in the immediate post-war period for excess capital equipment accumulated in this country during the war.

All the programs under this title are carried out in cooperation with the Department of State and other interested agencies such as the Foreign Economic Administration, the Office of Defense Transportation, the Maritime Commission, the War Shipping Administration, the Civil Aeronautics Authority and the Army and Navy.

Mr. TABER. What is the reason for any of these things being left? I do not see any yet.

Mr. Hisle. I have here a list of the transportation projects, this year's projects. Do you want the list for next year?

Mr. WIGGLESWORTH. Yes.
Mr. HARRISCN. We have them for fiscal 1946.
(The list referred to is as follows:)

Transportation missionsmissions of technical advisers to Latin America, fiscal

year 1946

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Total.....

200,

1 Funds-Average yearly cost of each adviser computed as follows (length of each mission estimates months):

Balary..
Living and quarters
Travel to and from the United States and within the country
Local expenses-clerical and technical assistance, supplies, rent, etc.

Total per year.
Per period of 4 months.

· Funds for railway mission in Mexico already provided.

Mr. TABER. Why do you need to keep this going?

Mr. HARRISON. In the transportation field we have a problem that is exceedingly difficult in Central and South America.

Mr. TABER. You mean they do not have enough politicians there to promote their highways and railroads?

Nr. Harrison. They may have, but we have the technical skill that can assist the other American republics, and we have been endeavoring to help them out in particular areas where they do not have adequate transportation. We have been sending small numbers of technicians there to help alleviate that condition and enable them to use what they have to a better advantage. These technicians are experts on rail, highway, and other transportation, usually on leave of absence from their companies in the United States to undertake this work.

The condition there is still serious and probably will be for another year, and for that reason we believe it necessary to continue assistance.

Mr. Rabaut. That has something to do with the delivery of war materials?

Mr. HARRISON. Yes, it has a great deal to do with the delivery of strategic, critical, and war materials.

Mr. ROCKEFELLER. There are two phases of the program. One is that which Congressman Rabaut just referred to; that is, to maintain the flow of war goods, principally war materials, from the other republics, which involves the use of trucks, railroads, and ocean shipping.

Then there is the problem of the movement of food from the rural areas into the concentrated urban areas.

Transportation in the other Americas has suffered severely during the war period, and as a result there has been a shortage of foodstuffs in the densely populated areas. This has caused another problemserious inflation.

Prices have risen from 50 to 150 percent, and have caused considerable unrest, social unrest, in part because of high prices and in part because of shortage of food.

What we have tried to do in this program, while it is impossible for the United States to deliver new equipment from the United States, is to deliver spare parts, and to teach technicians in the other republics to make the maximum use of what they have, in order to make their quipment carry more and last longer. We are trying to give to them our knowledge so they can be more efficient in the use of their equipment, particularly in the movement of foodstuffs and basic 200ds, as well as raw materials for the war.

ECONOMIC DEVELOPMENT PROJECTS-TOURIST TRADE

Mr. TABER. Is it the purpose to aid in the establishment of automobile touring clubs so that the folks in each of these Latin-American republics Mr. RABAUT. Where is that? Mr. TABER. That is a part of the program. Mr. RABAUT. Is it in our book here? Mr. TABER. No; but it is a part of what they put in my hands. (The statement referred to is as follows:)

An example of this type of cooperation is the work that was undertaken with the Mexican-American Commission for Economic Cooperation. With the assistance of thi Department this international commission has approved projects urgently needed for the economic development of Mexico. The results of this work are summarized in the following announcement made in January 1945: “The Commission has approved a total of 58 development projects, of which 20 were the total major projects submitted for the minimum 1944 program; 31 were included in the long-range report of subcommittee on industrial development, and 7 were important miscellaneous projects.".

Thus the United States has cooperated with Mexico by making available capital equipment to the extent consonant with the war effort and thus absorbing a certain amount of the dollar balance which Mexico has accumulated by reason of the United States procurement program. The way has thus been paved for longterm economic cooperation between the two countries and can provide a much needed market in the immediate post-war period for excess capital equipment accumulated in this country during the war. All the programs under this title

are carried out in cooperation with the Department of State and other interested agencies such as the Foreign Economic Administration, the Office of Defense Transportation, the Maritime Commission, the War Shipping Administration, the Civil Aeronautics Authority and the Army and Navy.

Mr. TABER. What is the reason for any of these things being left? I do not see any yet.

Mr. Hisle. I have here a list of the transportation projects, this year's projects. Do you want the list for next year?

Mr. WIGGLESWORTH. Yes.
Mr. HARRISCN. We have them for fiscal 1946.
(The list referred to is as follows:)

Transportation missionsmissions of technical advisers to Latin America, fiscal

year 1946

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Mexico 2
Central America.
Venezuela
Colombia..
Ecuador.
Bolivia.
Peru.
Chile.
Brazil
Uruguay.
Paraguay.

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32.00

Reserve for extension of periods of missions where required..

Total...

12.00

100,00

1 Funds-Average yearly cost of each adviser computed as follows (length of each mission estimated st4 months):

Salary.
Living and quarters
Travel to and from the United States and within the country.
Local expenses-clerical and technical assistance, supplies, rent, etc..

Total per year.
Per period of 4 months.

· Funds for railway mission in Mexico already provided.

00

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