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?

Mr. 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 goods, 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:)

Inter-American post-war travel, $25,000.-It is proposed to encourage the early reestablishment of the Committee on Inter-American Travel, set up in 1941 and discontinued during the war, and to assist it until it can be put on a selfsupporting basis.

The functions of the Committee on Inter-American Travel are: To encourage through government channels already existing in the other American republics | the development of post-war travel for their countries; to initiate and support investigations into the facilities now available for such travel, and to recommend the fundamental necessities in transportation facilities, hotel accommodations, and travel regulations needed to develop a post-war travel program; to encourage business groups within the other American republics, such as the local chambers : of commerce, Rotary clubs, etc., to evaluate the economic value of the travel dollar to their communities when tourist facilities are made available; and to develop channels for the promotion of travel in the United States for Latin-American citizens.

It is further proposed to assist the Inter-American Hotel Association in the exchange and training of hotel personnel, and to assist the American Automobile Association in their development of automobile touring clubs in each of the Latin-American republics.

Mr. ROCKEFELLER. One of the important factors in our relationship to the other Americas is going to be the movement of the tourist trade. That will not only contribute a great deal to a better understanding among the countries, but tourists also are one of the sources i of dollar exchange to the other republics.

Mexico, before the war, was getting a net of about $36,000,000 a year from the tourist trade. That is a very important factor, since it provides dollars in hand which can be used to buy goods from us.

Canada was getting about $156,000,000 a year in tourist trade. We believe that the development of hemisphere travel is one of the best factors in the close ties between this country and the other Americas, and one which will result in better economic conditions. Mr. TABER. The commercial outfits down there are willing to do that on their own, of course, are they not?

Mr. ROCKEFELLER. Good evidence of that is the recent action of the Pan American Airways in setting up plans for the construction of hotels in the other republics, which are badly needed in many areas. They have put, I think, a million dollars into it, and they have made application for a loan from the Export-Import Bank to supplement that program. I think that is something that calls for cooperation between private and government groups. With active automotive clubs, tourist travel is going to be increased, which will increase the demand for United States products, United States automotive equipment, and thereby help increase exports from the United States. Mr. TABER. There is not much use of trying to form tourist clubs until we can get to where we can have more automobiles. Mr. ROCKEFELLER. A thing of this kind takes time. There is no question that if we get people in the other Americas thinking in that direction, it ought to promote interest in United States products and increase the demand for those products.

Of course we do not want to do it to the exclusion of the production of other nations.

Mr. RABAUT. When our group returned from South America and made our report it was along those very lines

Mr. TABER. That was before the war.

Now we are not going to be able to reach out particularly along the automobile line for a year and a half or 2 years anyway.

Mr. ROCKEFELLER. I think it should be pointed out in that con-nection that other nations are looking forward to expanded trade with Latin-American countries. I do not think we can afford to sit back. and not do anything.

Mr. TABER. That is not going to promote export, trade at this time. A premature operation along that line is more apt to run into an impasse, to undertake something that cannot be done.

Mr. HARRISON. Of course, we will not get this money for some time.

Mr. TABER. Almost 8 weeks.

Mr. HARRISON. Yes; but on top of that, it has been my experience that in trying to make any start it will take several months at least. Mr. ROCKEFELLER. That is correct.

Mr. HARRISON. I agree with you that it may sound a little premature, but this activity must be developed in order to place us in a position where we can get results from it.

OTHER ECONOMIC DEVELOPMENT PROJECTS

Mr. WIGGLESWORTH. You have here the Inter-American Safety Council, Joint Committee on Inter-American Engineering Cooperation, Uniform Technical Standards, Practical Survey for Capital Goods Requirement of Latin America, and Pan-American Institute of Mining Engineering and Geology in addition to the one previously discussed which was Inter-American Post-War Travel."

Those are projects which you list in the economic development program.

(The project statements referred to are as follows:)

Inter-American Safety Council, $15,000.-The Inter-American Safety Council,. Inc., since its organization in 1938 has extended its activities to all of the 20 Latin-American republics; has more than 700 industrial unit members of affiliated councils in Argentina, Brazil, Chile, Cuba, and Mexico; has organized safety committees in Colombia, Guatemala, Panama, and Peru, and has made its program accessible to more than 1,500,000 workmen, to the satisfaction of employers and employees, as well as to official security boards, insurance companies, the church, and public authorities. An important feature of the Council's activities is the preparation in Portuguese and Spanish of numerous pamphlets, illustrated bulletins, and leaflets of an educational nature.

War conditions having interfered with the contributions from the usual sources, especially in Latin America, the council will not be able to continue its safety program unless it receives funds from some other source. It is proposed to assist it by this project.

Joint Committee on Inter-American Engineering Cooperation, $10,000.-—Programs for industrial development and construction of public works in Latin America in the post-war period will require the collaboration of the engineering profession throughout the Western Hemisphere. With the idea of mobilizing the members of the profession for this purpose, five leading engineering societies of the United States organized the Joint Committee on Inter-American Engineering Cooperation to establish relations with the leading engineering societies in the other American republics, to promote acquaintance, exchange of ideas, suggestions, and collaboration in rendering professional services and advice.

The Joint Committee has on various occasions been of assistance in obtaining qualified industrial and other engineers whose services were required by the national commissions or by the governments of their respective countries. These and other services the Committee has rendered gratuitously.

The Joint Committee has been exchanging technical papers among the engineering societies of the several republics and is arranging for the publication of a quarterly magazine in Spanish containing articles by leading United States engineers on recent technical developments of interest to engineers in Latin America.

Uniform technical standards, $20,000.-The American Standards Association has been promoting for some time in the other American republics a technical standards program, including the organization in those countries of standardization agencies and providing them with informative material, in the Spanish and Portuguese languages.

Besides the advantage to all of our countries of reducing to a minimum number the several kinds of standards used in industry, the purpose of this program is to encourage the use of American standards so as to assist American manufacturers in marketing their products in the Western Hemisphere in competition with those in other parts of the world. The efforts of the latter in the field in the past have resulted in the adoption of many of their standards in South and Central American countries. It is reported that they are planning greater activity than before.

The cost of this work in behalf of United States standards has been met largely in normal times by private industry. Its contributions to the cause have decreased during the war. It is important that maintenance of the work be aided pending renewal of complete support by private business when the effects of the war have passed. This plan has that object in view.

At the Conference of Commissions of Inter-American Development, held in New York City in May 1944, which was attended by official delegates of business and government from all American republics, the subject of uniform technical standards was emphasized. A Brazilian representative is now in South America conferring with various interests on plans for an active program.

Pan American Institute of Mining Engineering and Geology, $5,000.-The Pan American Congress of Mining Engineering and Geology held in Santiago, Chile. in 1942, participated in by delegates from the Departments of State and Interior, and from the Inter-American Development Commission, created the Pan American Institute of Mining Engineering and Geology as an autonomous private institution with headquarters in Santiago, Chile. National sections have been organized in Argentina, Bolivia, Brazil, Peru, Uruguay, and the United States. The membership of the Institute consists of minerals industry societies and com panies, mining engineers and geologists intent upon promoting improvements in this field of industrial activity.

The purpose of this project is to aid the United States section in promoting the use in the other American republics of modern mining methods and machinery and the sending of their young men to the United States for education and practical experience in modern mining methods and the use of American machinery and equipment.

Practical survey of capital goods requirements of Latin America, $25,000.-In January last the Office of Inter-American Affairs prepared for the Senate Military Affairs Committee an estimate of the probable demand for capital equipment that will be needed by industries in the Latin-American republics after the war. This estimate placed the value of new and used equipment required during the first 10 years after cessation of hostilities at 5,780 millions of dollars.

The estimate, published in the Congressional Record, provoked a flood of requests from business concerns in the United States and from Latin America, for copies and for further information. It is now proposed that a practical survey he made in the various Latin-American countries of their probable capital goodrequirements under various classifications. The information thus developed wi be helpful to governmental authorities charged with the disposal of surplus property in making equitable allocations to Latin America, and also will aid United States manufacturers in planning their post-war conversion programs.

The survey will be made by sending competent investigators to Latin-American countries where they will collaborate with the various national commissions of Inter-American development and other private and public organizations.

Mr. HARRISON. Yes, those things all come under the head of trying to set up United States standards and practices down there so that when we get into the post-war period the standards and practices adopted by the various ergineering societies and various munici palities will be based at least partially on our standards and practices. thereby helping us to sell our materials and manufactured products and equipment.

Those projects, generally, are the result of requests from people down there.

DEPARTMENT OF SPECIAL SERVICES

Mr. WIGGLESWORTH. You have got a Department of Special Services here.

Mr. HARRISON. I offer for the record the following justification:

DEPARTMENT OF SPECIAL SERVICES

Objectives. The objectives of this Department are twofold.

1. To carry out a program in the United States of general education about the interdependent relations which exist and are developing between the United States and the other republics in the Western Hemisphere, especially as these relations bear upon success of the war effort and upon common inter-American interests in the immediate post-war period and in the future, and to encourage the participation of individuals, groups, and organizations in inter-American activities.

The inter-American program can be successful only with the fullest understanding and knowledge by the people of this country of all phases of our inter-American relationships. There is a widespread and growing interest in the United States regarding the history, economy, and commercial possibilities of the other countries of the Americas. The various divisions of the department are set up to cooperate with, counsel, and service thousands of organizations and individuals now devoting time to inter-American programs. The work embraces programs in the formal education field as well as among adult groups and further recognizes certain special and diverse problems such as the proper aid and reception of Latin American visitors in the United States, and the problems peculiar to the Spanishspeaking people in the United States.

These objectives will be carried on for approximately 6 months by the Education and Teacher Aids Division and Services and Field Coordination Division (with the exception of one section) due to the transfer of these programs to the Office of Education and to other organizations in the inter-American field. The other objectives will be continued for the full fiscal year.

2. To administer such projects of an emergency nature that do not fall within the operations of any of the other departments and divisions of the Office. This necessitates coping quickly and efficiently with situations that arise from wartime conditions. Other departments and divisions of the Office carry out planned and continuing programs. Unless the emergency projects fall into their welldefined areas, the administration of such projects would seriously hamper the execution of their continuing programs.

Operations. Operations include all work of the Office within the United States not assigned specifically to other divisions, including such activities as cooperation with key groups, furnishing of informational materials on request, advice with regard to available speakers on inter-American affairs, working with the Spanishspeaking people in the United States, cooperation and maintenance of reception centers at the principal ports of entry to assist visitors from the other American republics, supervision of projects falling outside the scope of other divisions, etc. These operations will be carried on for approximately 6 months by the Education and Teacher Aids Division and Services and Field Coordination Division (with the exception of one section) due to the anticipated transfer of these programs to the Office of Education and to other organizations in the inter-American field. The balance of the operations will be carried on for the full fiscal year.

Mr. HARRISON. That is a department, as you can see, whose activities are largely gradually being transferred to other governmental and private agencies.

Mr. WIGGLESWORTH. When will that be completed?

Mr. HARRISON. This year.

Mr. WIGGLESWORTH. You mean in fiscal 1946?

Mr. HARRISON. Yes.

Mr. WIGGLESWORTH. Or in calendar 1945?

Mr. HARRISON. No; fiscal 1946.

Mr. TABER. Why are you not able to liquidate that right now? You have more personnel expenses than you have project expenses by a considerable amount. It looks to me like you could cut the personnel expenses down and divide it at least by 2.