Mr. SIKES. Assuming that they will have lower wages, longer working hours, the machinery that we have, that would almost certainly follow, don't you think?" Dr. EMENY. I am still willing to bet on the technological genius of this country. Mr. SIKES. It comes to this, I think: Can a piece of machinery produced by a $50-a-week man working 7 hours a day be sold as cheaply on the world market as a similar piece of machinery produced by a man of equal skill drawing $10 a week for a 12-hour day? Doesn't it boil down to that, when we start trying to compare totalitarian and capitalistic economy? Dr. EMENY. Well, I think it depends upon whether you have a market that is consuming a million items of the particular article or ten thousand. Mr. SIKES. Doctor, do you think that if we were largely eliminated from world trade as a result of such conditions as I have pointed out, that we could continue to exist and to maintain our national strength Dehind a Chinese wall of trade? Dr. EMENY. I do not think it would be necessary for us to maintain ourselves against a Chinese wall of trade. Mr. SIKES. If we were eliminated from the world market, it would. Dr. EMENY. I do not think we are going to be eliminated from the world markets under any conditions. Mr. SIKES. Then you think that our capitalistic system of government can compete with any totalitarian system in production of goods? Dr. EMENY. I think by and large it can continue to compete with any system that we can conceive of now. Mr. SIKES. Regardless of the hours of the working day, and regardless of the pay the workers receive? Dr. EMENY. I think we have the ability to adjust ourselves to those circumstances, sir. Maybe I have overconfidence in our power. Mr. SIKES. That is all. The CHAIRMAN. Doctor, there is just one question. You say you have been through Japan and China. Where are the largest tin smelters in the world? Dr. EMENY. I believe they are in England. There are some very considerable ones in Malay now. The CHAIRMAN. How about the Malayan? Dr. EMENY. There are some considerable ones there. The CHAIRMAN. Yes. What would happen to our tin supply if the Japanese should gain control of the Malay States? Dr. EMENY. Well, they would probably run the tin smelters there. The CHAIRMAN. Wouldn't that be the tin supply of the world, practically? Dr. EMENY. Yes; it would, practically. The CHAIRMAN. Any further questions? Thank you very much, Doctor. We will now recess until tomorrow morning at 10 o'clock. (Whereupon, at 6 o'clock, the committee recessed until Friday, January 24, 1941, at 10 o'clock.) the bill, and the American people today are still under the delusion that we can aid China and aid Britain and declare ourselves the "arsenal of democracy," short of war. We may be able to get away with it, but the chances are that we won't, and I think that it is sufficiently serious that Congress should be under the obligation of seeing that the American people take all sides into consideration. Mrs. BOLTON. Thank you, sir. The CHAIRMAN. Mr. Šikes. Mr. SIKES. Doctor, it has been said this afternoon that the totalitarian powers will have to trade with this Nation, even if they are victorious. Do you believe that? Dr. EMENY. I think that in the return to normal trade relations any attempt to raise the standard of living in a nation is based upon the necessity of freer trade. Mr. SIKES. Can't the totalitarian powers get the goods that they need, Doctor, from other nations of the world? Assuming that all of Europe might conceivably in time be under the heel of Germany, could not those nations get goods they need from other parts of the world, other than this country? Dr. EMENY. Yes; I think with certain restrictions they could probably get along without us if they had to; it would still be very restricted, but on the other hand they would at the same time desire the American market. Mr. SIKES. Yes; I think they would-on their terms-but do you believe, Doctor, that goods produced under our free capitalistic system can compete on a world market with goods produced under the totalitarian system? Dr. EMENY. I do not think that a nation that has normally a consumption capacity of half that of the world is going to have to submit to the terms of others in the matter of trade. I think that market is too valuable. Mr. SIKES. But the fact is obvious they will have longer working hours, and lower wages; they will have modern machinery, just as we will; they may have in some circumstances enforced labor, slave labor; isn't that conceivable? Dr. EMENY. I do not know how long physically the working people could stand the pace. Mr. SIKES. Doctor, we have relied strongly on constantly increasing tariffs to make it profitable for this Nation to compete with capitalistic nations in a world market, heretofore, isn't that true? Dr. EMENY. Yes. Mr. SIKES. Our standard of living has gone up constantly, thereby constantly increasing the cost of goods to our people, is that true? Dr. EMENY. Yes. Well, not necessarily. We have improved the machines. The goods have not necessarily risen in cost; no. Mr. SIKES. But nevertheless they have gone up over a period of years? Dr. EMENY. No. Automobile prices have gone down. Mr. SIKES. At the present time foreign goods produced under a totalitarian system of government would cost only a fraction as much. as goods produced under our system, that is true, isn't it? Dr. EMENY. I am not prepared to answer that question. I do not know. Mr. SIKES. Assuming that they will have lower wages, longer working hours, the machinery that we have, that would almost certainly follow, don't you think? Dr. EMENY. I am still willing to bet on the technological genius of this country. Mr. SIKES. It comes to this, I think: Can a piece of machinery produced by a $50-a-week man working 7 hours a day be sold as cheaply on the world market as a similar piece of machinery produced by a man of equal skill drawing $10 a week for a 12-hour day? Doesn't it boil down to that, when we start trying to compare totalitarian and capitalistic economy? Dr. EMENY. Well, I think it depends upon whether you have a market that is consuming a million items of the particular article or ten thousand. Mr. SIKES. Doctor, do you think that if we were largely eliminated from world trade as a result of such conditions as I have pointed out, that we could continue to exist and to maintain our national strength Dehind a Chinese wall of trade? Dr. EMENY. I do not think it would be necessary for us to maintain ourselves against a Chinese wall of trade. Mr. SIKES. If we were eliminated from the world market, it would. Dr. EMENY. I do not think we are going to be eliminated from the world markets under any conditions. Mr. SIKES. Then you think that our capitalistic system of government can compete with any totalitarian system in production of goods? Dr. EMENY. I think by and large it can continue to compete with any system that we can conceive of now. Mr. SIKES. Regardless of the hours of the working day, and regardless of the pay the workers receive? Dr. EMENY. I think we have the ability to adjust ourselves to those circumstances, sir. Maybe I have overconfidence in our power. Mr. SIKES. That is all. The CHAIRMAN. Doctor, there is just one question. You say you have been through Japan and China. Where are the largest tin smelters in the world? Dr. EMENY. I believe they are in England. There are some very considerable ones in Malay now. The CHAIRMAN. How about the Malayan? Dr. EMENY. There are some considerable ones there. The CHAIRMAN. Yes. What would happen to our tin supply if the Japanese should gain control of the Malay States? Dr. EMENY. Well, they would probably run the tin smelters there. The CHAIRMAN. Wouldn't that be the tin supply of the world, practically? Dr. EMENY. Yes; it would, practically. The CHAIRMAN. Any further questions? Thank you very much, Doctor. We will now recess until tomorrow morning at 10 o'clock. (Whereupon, at 6 o'clock, the committee recessed until Friday, January 24, 1941, at 10 o'clock.) 288128-41-31 LEND-LEASE BILL FRIDAY, JANUARY 24, 1941 HOUSE OF REPRESENTATIVES, The committee met at 10 a. m., Hon. Sol Bloom (chairman) residing. The CHAIRMAN. The committee will come to order. MAN. The committee has under consideration H. R. 1776. Mr. Johnson? Mr. JOHNSON. I thought Mr. Fish wanted to call some witnesses. Mr. FISH. I do not know whether I do or not. Perhaps I had better make a statement. Mr. JOHNSON. I thought there were some witnesses. Mr. FISH. I do not know anything about it. I am perfectly willing to make a public statement. Mr. JOHNSON. I move that we go into executive session. The CHAIRMAN. It is so ordered. The committee will go into executive session. Do you wish to have a vote as to whether we go into executive session? If so, the clerk will call the roll. Mr. FISH. May I know if we are going into executive session? The CHAIRMAN. The Chair has ruled. This committee is in execuutive session, and we will move to the committee rooms in the Capitol. Mr. VORYS. You have not ruled. The CHAIRMAN. I have ruled we are going into executive session. It is so ordered. I asked if you wanted to have a vote on it, and you said you did not want to have a vote. Let us have a vote. The clerk will call the roll. (Whereupon the clerk called the roll). The vote is 11 to 8. The committee will go into executive session and move to other committee room. The committee resumed open session at 12 noon, Hon. Sol Bloom (chairman) presiding. The chairman announced that the Democratic members of the Committee on Foreign Affairs of the House of Representatives had authorized the chairman to issue the following statement: The full committee, in a prior executive session, had authorized Representative Fish, the ranking minority member, to invite whatever witnesses he wishes "as minority witnesses." Representative Fish invited Admiral Stark, General Marshall, and General Brett. Subsequent to the invitations issued by Mr. Fish and after their names had been announced at Mr. Fish's request, the witnesses, in conversation with the chairman of the committee, asked whether or not the committee had invited them to appear as witnesses, to which |