Senator BALL. Is that true?

Mr. FELLER. That is right.

Senator BALL. Is that a first claim or second

Mr. FELLER. Second claim.

Senator BALL. After they have paid the UNRRA mission? Mr. FELLER. Second claim. First claim, they have got to pay the UNRRA mission expense.

SAFEGUARDS AGAINST MISUSE AND ABUSE OF SUPPLIES

Senator BALL. I see. As I recall, the UNRRA agreement itself required that any nation or any government whose people were receiving this aid must give the UNRRA people the rights of completely free inspection; and there were certain safeguards in those agreements, in the master agreement itself, against use of the supplies for political purposes or diverting them into the black market or that sort of thing. Is that right?

Mr. FELLER. There were. A resolution of UNRRA-several resolution, as a matter of fact, state the fundamental principle that there should be no discrimination in the distribution of supplies because of race, religion, or political belief. There is no provision in the basic UNRRA agreement, or as a matter of fact in the UNRRA resolutions, with respect to the free admission of UNRRA personnel to observe; but the Director General, Mr. Lehman, insisted that that be placed in every agreement that we have with recipient countries, and every agreement that we have so far negotiated makes that provision. Senator BALL. I thought that was in the master agreement that we passed in the Senate, but it wasn't?

Mr. FELLER. No, it was not.

It was not.

Senator BALL. It is in our own agreements with the recipient countries?

Mr. FELLER. It is in our own agreements, in very clear language. Very clear language.

ENFORCING AGREEMENTS FOR FREE ADMISSION OF UNRRA PERSONNEL

Senator BALL. One more question: Have you had any trouble anywhere in enforcing that agreement, in that connection, in getting your people in and gettting them freedom of movement to see what is going on?

Mr. FELLER. At the present time, we have no indication of any trouble whatever. In the early days of our operations in Yugoslavia, just after the country was liberated-and as a matter of fact it was still in the process of liberation-we had various difficulties in getting our people around in that country. The government found it difficult to get them acess to all parts of the country. Transportation was very difficult, the country was very upset, and much of the rumors that arose to the effect that governments were preventing UNRRA from observing came out of that situation. At this time and for some months past we have had no report, not even a small detail of a report, that anyone has been hampered. Our mission in Poland has had free access, without any hindrance whatever, in Government cars and

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Government planes, to go anywhere they want in Poland and see anything and check the operation.

Senator BALL. There has been no other incident even like that in Yugoslavia?

Mr. FELLER. There have been no incidents whatever. There has been no incident of any kind in Poland. There has never been any question about it.

SYSTEM USED IN FOLLOWING THROUGH ON DISTRIBUTION OF SUPPLIES

Senator RUSSELL. Just how do you follow those supplies through? What is the actual operation that takes place? How does the mission follow them through?

Mr. FELLER. The actual operation begins, at the outset, before any supplies are distributed, in effect, except-well, perhaps a few might come in before these plans are evolved. The Government prepares a plan which shows in general how they are going to distribute the supplies, at what price they are going to be sold, the allocation by regions and by general classes of consumers, the kind of rationing control they are going to have on it, the safeguards they have against diversion for the black market.

They are required to discuss that plan with the UNRRA mission, and in actual effect the UNRRA mission exercises a great deal of influence on the plan. It sits down with the government officials, and they go over whether or not this is a fair distribution or whether it is an efficient distribution. Then the government handles the supplies as they arrive in the port. It runs the trucks, and it runs the warehouses and makes the withdrawals from the warehouses.

UNRRA personnel, in the first place, advise with respect to the operation. For example, in Greece there was some difficulty in getting a satisfactory operation of the trucks, and there was, as you can well imagine, a tendency for the drivers to kind of loaf, use up gasoline, and so on. UNRRA therefore insisted that the Government put in a very rigorous kind of control over the way in which the trucks were being operated. Congressman Herter has a very interesting account. of that. He was there himself and saw it, and as a result the operation improved very much.

Now, then, we send out observers. We have them stationed in various parts of the country and also at the capital. We send out observers who make regular trips. They check in the warehouses, they check in the main distribution depots, they make spot checks all the way down, in terms of retail stores, and may talk to actual consumers. Where there is any complaint they go right to the spot.

INVESTIGATION OF COMPLAINTS

Let me give you an example of where there was a complaint. There was a rumor to the effect that in Slovakia there was discrimination against Jews in the distribution of UNRRA supplies.

Senator RUSSELL. Against Jews?

Mr. FELLER. Against Jews in Slovakia. We sent a man in there. He investigated the thing very thoroughly. He spoke to every official; he spoke to the local people; he spoke to people who had been in the stores. He went through the whole apparatus. He reported back,

after a very exhaustive investigation, with a very elaborate report, that there had in fact been no discrimination; but in the process he made people very much aware of the fact that they must themselves see to it that none of these rumors get started; and in consequence he made certain recommendations on which they tightened up the way they handle the thing in that particular area, and that was just a relatively small town in the country.

In Yugoslavia we send our people around on a regular round. There have been a lot of rumors out of Yugoslavia, a great many. They are in constant contact with the people who do this sort of thing, and they are constantly making reports to the mission, to the mission chief. These reports are then sent on to us, and very frequently we will ask for spot reports. As a matter of fact, we have followed up every rumor, no matter how fantastic.

AMENDMENTS ADOPTED BY HOUSE

Senator HAYDEN. Mr. Chairman, I wanted to ask, if I could, just along this line, whether these provisions contained in the House bill, to which apparently the State Department does not object, are in conformity with what is done. It starts out here on page 2:

(A) the President has received from the Director General of the United Nations Relief and Rehabilitation Administration a certification to the effect that the furnishing by such administration of relief and rehabilitation supplies and services, in the case of such country, will be made only under agreements between United Nations Relief and Rehabilitation Administration and such country or other suitable arrangements providing:

(1) That all trade agreements and all barter agreements of such country with other nations, together with satisfactory information on all exports from, and imports into, such country, whether for governmental or private account, will be made available to United Nations Relief and Rehabilitation Administration.

(2) That such country shall supply accredited United Nations Relief and Rehabilitation Administration personnel with all necessary facilities, credentials, documents, and safe conduct in carrying out the objectives of the United Nations Relief and Rehabilitation Administration agreement, including all necessary inspections and investigations.

And then (3), which was adopted in the House:

That the administration, if it determines such a course to be desirable, will be permitted, during the period of its operations in such country, to retain title to all motor transport equipment supplied by the administration, and will also be permitted to route such equipment and to direct the use of the fuel and lubricants supplied by the administration.

Now, the State Department has no objection to those, because they are in line with what it was already doing? Do I understand that?

STATE DEPARTMENT'S POSITION ON HOUSE AMENDMENTS

Mr. CLAYTON. Mr. Chairman, I said that we felt that it would be better if there were no amendments at all, because these are administrative matters, and we are seeing to it that the UNRRA Administration does all things that is properly should and can do in these matters, and it seems to us it would be better not to insert in this legislation amendments that relate to the actual administration of UNRRA, because we are only one of many countries that are contributing to UNRRA. If we put ideas of our own about adminis

istration in legislation appropriating funds, other countries will probably think that they should do or can do the same. So that we are likely to get a situation that will make administration very difficult. So that as a matter of principle we prefer there should be no amendments of this kind in the appropriation bill, but I did say that we could not seriously object at this time to any except the one relating to the press.

CONDITIONS HAVE NOT BEEN ATTACHED BY OTHER COUNTRIES IN

APPROPRIATING FUNDS

Senator BALL. I want to know whether any other country has attached such conditions like these to its appropriation; for instance, Australia or the United Kingdom.

Mr. CLAYTON. I don't think any country has. They have simply appropriated the money and left the administration of UNRRA to the authorities in UNRRA that are responsible for it.

HOUSE AMENDMENT FIXING TERMINATION DATES OF UNRRA AID

Senator HAYDEN. I didn't read the (B), because that is the part the Department does object to. Now I want to ask one other question. Up at the forepart of the bill it says:

Provided, That no relief or rehabilitation supplies procured out of funds heretofore or herein appropriated shall be shipped to any country except in the Far East after December 31, 1946, and in the case of any country in the Far East after March 31, 1947.

Now, what is the effect of that restriction on relief?

TERMINATION DATES PREVIOUSLY FIXED BY UNRRA COUNCIL

Mr. CLAYTON. That has already been decided as an administrative matter by UNRRA. The Council in London passed a resolution to that effect, and every country is on notice that UNRRA will finish shipments to Europe at the end of next year and to the Far East at the end of the first quarter of 1947.

Senator HAYDEN. So that the enactment of that is merely a repetition of what you have already agreed to?

Mr. CLAYTON. That is right; yes, sir.

FREEDOM OF THE PRESS AMENDMENT

Senator HAYDEN. Then, the amendment that disturbs the Department is the one relating to freedom of the press, so to speak? Mr. CLAYTON. Yes, sir. It disturbs us very seriously. Senator RUSSELL. Are you through, Senator Hayden? Senator HAYDEN. Yes.

TOTAL CONTRIBUTIONS TO UNRRA BY PARTICIPATING COUNTRIES

Senator RUSSELL. Have you furnished for the record, Mr. Clayton, a statement of the amount of funds that have been actually contributed by all the participating countries?

Mr. CLAYTON. Not for this record; no, sir. We have it here, though. There is a total of a billion-eight-hundred-and-eighty-three-millionodd dollars which has been authorized by various countries to be made available to UNRRA. There has been paid or made available a total of a billion-two-hundred-and-eighty-five-million-odd, leaving still to be made available five-hundred-and-ninety-seven-million-odd, of which the United States has to make available $550,000,000. So that of the total to be made available nearly all of it, or the great bulk of it, is due from the United States.

FREIGHT AND WAREHOUSING COSTS

Senator MCKELLAR. Mr. Secretary, let me ask this: The UNRRA when it takes supplies into a country, of course, pays the freight to the port of entry to that country, and then does it rent warehouses and pay for those warehouses in the country to be supplied, and does it pay for the handling of the supplies in that country, and does it pay for the distribution of the supplies by truck or train or otherwise to the various people in that country?

Mr. CLAYTON. Mr. Chairman, I would like to ask Mr. Feller to answer that.

Mr. FELLER. No, sir.

Mr. CLAYTON. He can answer it more accurately than I can.

Mr. FELLER. No, sir. We pay the freight to the port; that's all we

pay.

Senator MCKELLAR. You don't pay any warehousing? You don't pay for any trucks?

Mr. FELLER. Well, we do

USE OF TRUCKS IN TRANSPORTING SUPPLIES

Senator MCKELLAR. The trucks have come in here, and something is in one of these amendments about trucks.

Mr. FELLER. Well, we supply some of the trucks.

Senator MCKELLAR. Now, what is there about the trucks?

Mr. FELLER. We supply trucks where a country has no means of transportation to get the supplies around, but we don't pay the salaries of drivers. We don't pay for the warehouses. We don't pay for freight on the railroads.

Senator MCKELLAR. Do you pay for the gasoline that runs the trucks?

Mr. FELLER. Where a country has a deficiency in petroleum products we may supply petroleum for the general relief needs of the country, but that is not necessarily related to the trucks which go in there. Some countries don't need any petroleum because they have been getting it from other sources, and we send in none. Some countries need it very badly, and we may send in a certain amount. Incidentally, it is very hard to get.

UNRRA EXPENDITURES IN GERMANY

Senator MCKELLAR. I should like also to put in the record-I don't suppose you have it with you-to put in the record how much we have