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SEC. 5. Funds appropriated to the joint committee shall be disbursed by the Secretary of the Senate on vouchers signed by the Chairman and Vice Chairman.

SEC. 6. The joint committee may constitute such advisory Committees and may consult with such representatives of State and local governments and private organizations as it deems advisable.

SECRETARY TO THE MAJORITY Mr. TAFT submitted the following resolution (S. Res. 29); which was considered by unanimous consent and agreed to:

Resolved, That William T. Reed, of Virginia, be, and he is hereby, elected secretary for the majority of the Senate.

REVIEW OF UNITED NATIONS CHARTER Mr. GILLETTE submitted the following resolution (S. Res. 30); which was referred to the Committee on Foreign Relations:

Resolved, That, pursuant to its responsibilities under the second paragraph of section 2 of article II of the Constitution of the United States, the Senate requests and urges the President to take immediate steps under the provisions of article 109 of chapter XVIII of the Charter of the United Nations for the purpose of reviewing the present Charter, and

That in furtherance of this purpose the Senate also urges the President to take such initial steps as are necessary to fix a date and place for the holding of the general conference and to secure the approval of two-thirds of the members of the General Assembly and of seven members of the Security Council for the calling and holding of this general conference under the provisions of the article and chapter of the United Nations Charter referred to in this resolution. AMENDMENT OF RULE RELATING TO CLOTURE

Mr. IVES submitted the following resolution (S. Res. 31); which was referred to the Committee on Rules and Administration:

Resolved, That rule XXII of the Standing Rules of the Senate (relating to cloture) is modified as follows:

1. The first paragraph of subsection 2 is amended by striking out “except subsection 3 of rule 22."

2. The first paragraph of subsection 2 is amended by striking out “on the following calendar day but one,” and inserting in lieu thereof, “on the twelfth calendar day thereafter (exclusive of Sundays and legal holidays).

3. The second paragraph of subsection 2 is amended by striking out "by two-thirds of the Senators duly chosen and sworn,” and inserting in lieu thereof, "by the vote of a majority of the authorized membership of the Senate.” 4. Subsection 3 is hereby deleted.

QUESTION OF QUORUM Mr. TAFT raised a question as to the presence of a quorum;

Whereupon

The VICE PRESIDENT directed the roll to be called;

When

Ninety Senators answered to their names, as follows: Alken

Griswold McCarran Anderson Hayden

McCarthy Barrett

Hendrickson Millikin Beall

Hennings Monroney
Bennett

Hickenlooper Morse
Bricker
Hill

Mundt
Bridges
Hoey

Murray
Bush
Holland

Neely
Butler, Md. Humphrey Pastore
Butler, Nebr. Hunt

Payne
Byrd
Ives

Potter
Capehart
Jackson

Purtell
Carlson
Jenner

Robertson
Case

Johnson, Colo. Russell Chavez

Johnson, Tex. Saltonstall Clements Johnston, S. C. Schoeppel Cooper

Kefauver Smathers
Cordon

Kennedy Smith, Maine
Daniel
Kerr

Smith, NJ.
Dirksen
Kilgore

Smith, N. C.
Dworshak Knowland Sparkman
Eastland
Kuchel

Stennis
Ferguson Langer

Taft
Flanders
Lehman

Thye
Frear
Long

Tobey
George

Magnuson Watkins
Gillette
Malone

Welker
Goldwater Mansfield Wiley
Gore
Martin

Williams
Green

Maybank Young
A quorum being present,
MEMBERSHIP OF STANDING COMMITTEES

On motion by Mr. TAFT, and by unanimous consent,

The Senate proceeded to the consideration of the appointment of members of the standing committees of the Senate under rule XXIV.

Mr. TAFT submitted a list to constitute the majority members, including the chairmen.

Mr. JOHNSON of Texas submitted a list to constitute the minority members.

The Senate proceeded to consider the proposed assignments to membership, as follows:

On Agriculture and Forestry: George D. Aiken, of Vermont, chairman; Milton R. Young, of North Dakota; Edward J. Thye, of Minnesota; Bourke B. Hickenlooper, of Iowa; Karl E. Mundt, of South Dakota; John J. Williams, of Delaware; Andrew F. Schoeppel, of Kansas; Herman Welker, of Idaho; Allen J. Ellender, of Louisiana; Clyde R. Hoey, of North Carolina; Olin D. Johnston, of South Carolina; Spessard L. Holland, of Florida; Clinton P. Anderson, of New Mexico; James O. Eastland, of Mississippi; Earl C. Clements, of Kentucky.

On Appropriations: Styles Bridges, of New Hampshire, chairman; Homer Ferguson, of Michigan; Guy Cordon, of Oregon; Leverett Saltonstall, of Massachusetts; Milton R. Young, of North Dakota; William F. Knowland, of California; Edward J. Thye, of Minnesota; Joseph R. McCarthy, of Wisconsin; Karl E. Mundt, of South Dakota; Margaret Chase Smith, of Maine; Henry C. Dworshak, of Idaho; Everett McKinley Dirksen, of Illinois; Carl Hayden, of Arizona; Richard B. Russell, of Georgia; Pat McCarran, of Nevada; Dennis Chavez, of New Mexico; Burnet R. Maybank, of South Carolina; Allen J. Ellender, of Louisiana; Lister Hill, of Alabama; Harley M. Kilgore, of West Virginia; John L. McClellan, of Arkansas; A. Willis Robertson, of Virginia; Warren G. Magnuson, of Washington.

On Armed Services: Leverett Saltonstall, of Massachusetts, chairman; Styles

Bridges, of New Hampshire; Ralph E. Flanders, of Vermont; Margaret Chase Smith, of Maine; Robert C. Hendrickson, of New Jersey; Francis Case, of South Dakota; James H. Duff, of Pennsylvania; John Sherman Cooper, of Kentucky; Richard B. Russell, of Georgia; Harry Flood Byrd, of Virginia; Lyndon B. Johnson, of Texas; Estes Kefauver, of Tennessee; Lester C. Hunt, of Wyoming; John C. Stennis, of Mississippi; Stuart Symington, of Missouri.

On Banking and Currency: Homer E. Capehart, of Indiana, chairman; John W. Bricker, of Ohio; Irving M. Ives, of New York; Wallace F. Bennett, of Utah; Prescott Bush, of Connecticut; J. Glenn Beall, of Maryland; Frederick G. Payne, of Maine; Barry Goldwater, of Arizona; Burnet R. Maybank, of South Carolina; J. W. Fulbright, of Arkansas; A. Willis Robertson, of Virginia; John Sparkman, of Alabama; J. Allen Frear, Jr., of Delaware; Paul H. Douglas, of Illinois; Herbert H. Lehman, of New York.

On the District of Columbia: Francis Case, of South Dakota, chairman; Frank A. Barrett, of Wyoming; J. Glenn Beall, of Maryland; Frederick G. Payne, of Maine; Matthew M. Neely, of West Virginia; Willis Smith, of North Carolina; Albert Gore, of Tennessee; Mike Mansfield, of Montana;

On Finance: Eugene D. Millikin, of Colorado, chairman; Hugh Butler, of Nebraska; Edward Martin, of Pennsylvania; John J. Williams, of Delaware; Ralph E. Flanders, of Vermont; George W. Malone, of Nevada; Frank Carlson, of Kansas; Wallace Bennett, of Utah; Walter F. George, of Georgia; Harry Flood Byrd, of Virginia; Edwin C. Johnson of Colorado; Clyde R. Hoey, of North Carolina; Robert S. Kerr, of Oklahoma; J. Allen Frear, Jr., of Delaware; Russell B. Long, of Louisiana.

On Foreign Relations: Alexander Wiley, of Wisconsin, chairman; H. Alexander Smith, of New Jersey; Bourke B. Hickenlooper, of Iowa; Charles W. Tobey, of New Hampshire; Robert A. Taft, of Ohio; William Langer, of North Dakota; Homer Ferguson, of Michigan; William F. Knowland, of California; Walter F. George, of Georgia; Theodore Francis Green, of Rhode Island; J. W. Fulbright, of Arkansas; John J. Sparkman, of Alabama; Guy M. Gillette, of Iowa; Hubert H. Humphrey, of Minnesota; Mike Mansfield, of Montana.

On Government Operations: Joseph R. McCarthy, of Wisconsin, chairman; Karl E. Mundt, of South Dakota; Margaret Chase Smith, of Maine; Henry C. Dworshak, of Idaho; Everett McKinley Dirksen, of Illinois; John Marshall Butler, of Maryland; Charles E. Potter, of Michigan; John L. McClellan, of Arkansas; Clyde R. Hoey, of North Carolina; Hubert H. Humphrey of Minnesota; Henry M. Jackson, of Washington; John F. Kennedy, of Massachusetts; Stuart Symington, of Missouri.

On Interior and Insular Affairs: Hugh Butler, of Nebraska, chairman; Eugene D. Millikin, of Colorado; Guy Cordon, of Oregon; George W. Malone, of Nevada; Arthur V. Watkins, of Utah; Henry C. Dworshak, of Idaho; Thomas H. Kuchel,

of California; Frank A. Barrett, of Wyoming; James E. Murray, of Montana; Clinton P. Anderson, of New Mexico; Russell B. Long, of Louisiana; George A. Smathers, of Florida; Earle C. Clements, of Kentucky; Henry M. Jackson, of Washington; Price Daniel, of Texas.

On Interstate and Foreign Commerce: Charles W. Tobey, of New Hampshire, chairman; Homer E. Capehart, of Indiana; John W. Bricker, of Ohio; Andrew W. Schoeppel, of Kansas; John Marshall Butler, of Maryland; John Sherman Cooper, of Kentucky; Dwight Griswold, of Nebraska; Charles E. Potter, of Michigan; Edwin C. Johnson, of Colorado; Warren G. Magnuson, of Washington; Lyndon B. Johnson, of Texas; Lester C. Hunt, of Wyoming; John O. Pastore, of Rhode Island; Mike Monroney, of Oklahoma; George A. Smathers, of Florida.

On the Judiciary: William Langer, of North Dakota, chairman; Alexander Wiley, of Wisconsin; William E. Jenner, of Indiana; Arthur V. Watkins, of Utah; Robert C. Hendrickson, of New Jersey; Everett McKinley Dirksen, of Illinois; Herman Welker, of Idaho, John Marshal Butler, of Maryland; Pat McCarran, of Nevada; Harley M. Kilgore, of West Virginia; James O. Eastland, of Mississippi; Estes Kefauver, of Tennessee; Willis Smith, of North Carolina; Olin D. Johnston, of South Carolina; Thomas C. Hennings, Jr., of Missouri.

On Labor and Public Welfare: H. Alexander Smith, of New Jersey, chairman; Robert A. Taft, of Ohio; George D. Aiken, of Vermont; Irving M. Ives, of New York; William A. Purtell, of Connecticut Frank A. Barrett, of Wyoming; Barry Goldwater, of Arizona; James E. Murray, of Montana; Lister Hill, of Alabama; Matthew M. Neely, of West Virginia; Paul H. Douglas, of Illinois; Herbert H. Lehman, of New York; John F. Kennedy, of Massachusetts.

On Post Office and Civil Service: Frank Carlson, of Kansas, chairman; James H. Duff, of Pennsylvania; William E. Jenner, of Indiana; John Sherman Cooper, of Kentucky; Dwight Griswold, of Nebraska; William A. Purtell, of Connecticut; Olin D. Johnston, of South Carolina; Matthew M. Neely, of West Virginia; John O. Pastore, of Rhode Island; Mike Monroney, of Oklahoma; Price Daniel, of Texas.

On Public Works: Edward Martin, of Pennsylvania, chairman; Francis Case, of South Dakota; Prescott Bush, of Connecticut; Thomas H. Kuchel, of California; J. Glenn Beall, of Maryland; Dennis Chavez, of New Mexico; Spessard L. Holland, of Florida; John C. Stennis, of Mississippi; Robert S. Kerr, of Oklahoma; Albert Gore, of Tennessee;

On motion by Mr. MORSE to amend the said order by adding a member of the majority party to the Committee on Armed Services and to the Committee on Labor and Public Welfare and to add his own name to the said committees,

Mr. SALTONSTALL raised a question of order, viz, that the motion to amend the order was a motion to amend the rules and required 1 day's notice.

The PRESIDING OFFICER (Mr. CLEMENTS in the chair) sustained the point of order.

Mr. MORSE (for himself, Mr. MAGNUSON, Mr. LEHMAN, Mr. HUMPHREY, and Mr. JACKSON) by unanimous consent, submitted the following resolution (S. Res. 32); which was referred to the Committee on Rules and Administration:

Resolved, That paragraph (1) of rule XXV of the Standing Rules of the Senate be, and it is hereby, amended by adding, for the period of the Eighty-third Congress, a member of the majority party to the Committees on Armed Services and Labor and Public Welfare and that the Senator from Oregon (Mr. MORSE) be assigned to service on the same committees. Pending debate,

On motion by Mr. TAFT, and by unanimous consent,

Ordered, That the proposed appointment of respective chairmen and other members to the Committee on Agriculture, the Committee on Appropriations, the Committee on Banking and Currency, the Committee on Finance, the Committee on Foreign Relations, the Committee on Government Operations, the Committee on Interior and Insular Affairs, the Committee on Interstate and Foreign Commerce, the Committee on the Judiciary, the Committee on Post Office and Civil Service, and the Committee on Rules and Administration be agreed to.

The Senate proceeded to consider the proposed appointments to the Committee on Armed Services; and,

On motion by Mr. Taft, and by unanimous consent,

Ordered, that Mr. SALTONSTALL be appointed as the chairman of the said committee.

On motion by Mr. ANDERSON to appoint the remaining members of the committee by secret written ballot,

Pending debate,

On motion by Mr. KNOWLAND to amend the motion by substituting therefor that each Senator as his name is called submit a written ballot showing the names of the 14 members voted for to complete the membership of the committee,

On motion by Mr. CAPEHART to amend Mr. KNOWLAND's substitute by adding that after the signed ballots have been delivered and when the balloting has been finished the names of each Senator voting be called and the names each voted for be read.

Mr. KNOWLAND modified his proposed motion by accepting Mr. CAPEHART's amendment; and

Mr. KNOWLAND's motion, as modified, having been agreed to,

Mr. ANDERSON's motion, as amended, was agreed to.

Mr. TAFT raised a question as to the presence of a quorum;

Whereupon

The VICE PRESIDENT directed the roll to be called;

When

Eighty-eight Senators answered to their names, as follows: Aiken

Hendrickson Millikin
Anderson Hennings Monroney
Barrett

Hickenlooper Morse
Beall
Hill

Mundt
Bennett
Hoey

Murray
Bricker
Holland

Neely
Bridges

Humphrey Pastore
Bush
Hunt

Payne
Butler, Md. Ives

Potter Butler, Nebr. Jackson

Purtell Capehart Jenner

Robertson Carlson

Johnson, Colo. Russell Case

Johnson, Tex. Saltonstall Chavez

Johnston, S. C. Schoeppel Clements Kefauver Smathers Cooper

Kennedy Smith, Maine
Cordon
Kerr

Smith, N. J.
Daniel
Kilgore

Smith, N. C.
Dirksen

Knowland Sparkman Dworshak Kuchel

Stennis
Ferguson Langer

Taft
Flanders
Lehman

Thye
Frear
Long

Tobey
George

Magnuson Watkins
Gillette
Malone

Welker
Goldwater Mansfield Wiley
Gore
Martin

Williams
Green

Maybank Young Griswold

McCarran
Hayden

McCarthy
A quorum being present,
Pending debate,

Ordered, That the written ballot of each Senator when delivered be read.

The Senate proceeded to ballot, by roll call, for the remaining members of the Committee on Armed Services, when the whole number of votes cast was 88.

Mr. BRIDGES, Mr. FLANDERS, Mrs. SMITH of Maine, Mr. HENDRICKSON, Mr. CASE, Mr. DUFF, Mr. RUSSELL, Mr. BYRD, Mr. JOHNSON of Texas, Mr. KEFAUVER, Mr. HUNT, and Mr. STENNIS each received 88 votes;

Mr. COOPER received 83 votes;
Mr. SYMINGTON received 86 votes; and
Mr. MORSE received 7 votes.

Those who voted for Messrs. BRIDGES, FLANDERS, Mrs. SMITH of Maine, Messrs. HENDRICKSON, CASE, DUFF, RUSSELL, BYRD, JOHNSON of Texas, KEFAUVER, HUNT, and STENNIS are

Messrs. AIKEN, ANDERSON, BARRETT, BEALL, BENNETT, BRICKER, BRIDGES, BUSH, BUTLER of Maryland, BUTLER of Nebraska, CAPEHART, CARLSON, CASE, CHAVEZ, CLEMENTS, COOPER, CORDON, DANIEL, DIRKSEN, DWORSHAK, FERGUSON, FLANDERS, FREAR, GEORGE, GILLETTE, GOLDWATER, GORE, GREEN, GBISWOLD, HAYDEN, HENDRICKSON, HENNINGS, HICKENLOOPER, HILL, HOEY, HOLLAND, HUMPHREY, HUNT, IVES, JACKSON, JENNER, JOHNSON of Colo. rado, JOHNSON of Texas, JOHNSTON of South Carolina, KEFAUVER, KENNEDY, KERR, KILGORE, KNOWLAND, KUCHEL, LANGER, LEHMAN, LONG, MAGNUSON, MALONE, MANSFIELD, MARTIN, MAYBANK, MCCARRAN, MCCARTHY, MILLIKIN, MONRONEY, MORSE, MUNDT, MURRAY, NEELY, PASTORE, PAYNE, POTTER, PURTELL, ROBERTSON, RUSSELL, SALTONSTALL,

SCHOEPPEL, SMATHERS, Mrs. SMITH of Maine, Messrs. SMITH of New Jersey, SMITH of North Carolina, SPARKMAN, STENNIS, TAFT, THYE, TOBEY, WATKINS, WELKER, WILEY, WILLIAMS, and YOUNG.

On Rules and Administration: William E. Jenner, of Indiana, chairman; Frank Carlson, of Kansas; Charles E. Potter, of Michigan; Dwight Griswold, of Nebraska; William A. Purtell, of Connecticut; Carl Hayden, of Arizona; Theodore Francis Green, of Rhode Island; Guy M. Gillette, of Iowa; Thomas C. Hennings, Jr., of Missouri.

Pending debate,

which was read the first and second times.

The Senate proceeded, by unanimous consent, to consider the said joint resolution; and no amendment being made,

Ordered, That it be engrossed and read a third time.

The said joint resolution was read the third time, by unanimous consent.

Resolved, That it pass, and that the title thereof be as aforesaid.

Ordered, That the Secretary request the concurrence of the House of Representatives therein.

ADJOURNMENT On motion by Mr. TAFT, at 5 o'clock and 8 minutes p. m.,

The Senate adjourned until Friday next.

Cabinet, and heads of independent agencies.

Together with this report, I am transmitting a report, the Annual Economic Review, January 1953, prepared for me by the Council of Economic Advisers in accordance with section 4 (c) (2) of the Employment Act of 1946. Respectfully,

HARRY S. TRUMAN.

Those who voted for Mr. COOPER are

Messrs. AIKEN, BARRETT, BEALL, BENNETT, BRICKER, BRIDGES, BUSH, BUTLER of Maryland, BUTLER of Nebraska, CAPEHART, CARLSON, CASE, CHAVEZ, CLEMENTS, COOPER, CORDON, DANIEL, DIRKSEN, DWORSHAK, FERGUSON, FLANDERS, FREAR, GEORGE, GILLETTE, GOLDWATER, GORE, GREEN, GRISWOLD, HAYDEN, HENDRICKSON, HENNINGS, HICKENLOOPER, HILL, HOEY, HOLLAND, HUMPHREY, HUNT, IVES, JACKSON, JENNER, JOHNSON of Colorado, JOHNSON of Texas, JOHNSTON of South Carolina, KENNEDY, KERR, KNOWLAND, KUCHEL, LANGER, LEHMAN, MAGNUSON, MALONE, MANSFIELD, MARTIN, MAYBANK, MCCARRAN, MCCARTHY, MILLIKIN, MONRONEY, MORSE, MUNDT, MURRAY, PASTORE, PAYNE, POTTER, PURTELL, ROBERTSON, RUSSELL, SALTONSTALL, SCHOEPPEL, SMATHERS, Mrs. SMITH of Maine, Messrs. SMITH of New Jersey, SMITH of North Carolina, SPARKMAN, STENNIS, TAFT, THYE, TOBEY, WATKINS, WELKER, WILEY, WILLIAMS, and Young.

Those who voted for Mr. SYMINGTON are

Messrs. AIKEN, ANDERSON, BARRETT, BEALL, BENNETT, BRICKER, BRIDGES, BUSH, BUTLER of Maryland, BUTLER of Nebraska, CAPEHART, CARLSON, CASE, CHAVEZ, CLEMENTS, COOPER, CORDON, DANIEL, DIRKSEN, DWORSHAK, FERGUSON, FLANDERS, FREAR, GEORGE, GILLETTE, GOLDWATER, GORE, GREEN, GRISWOLD, HAYDEN, HENDRICKSON, HENNINGS, HICKENLOOPER, HILL, HOEY, HOLLAND, HUMPHREY, HUNT, IVES, JACKSON, JENNER, JOHNSON of Colorado, JOHNSON of Texas, JOHNSTON of South Carolina, KEFAUVER, KENNEDY, KERR, KIL RE, KNOWLAND, KUCHEL, LANGER, LEHMAN, LONG, MAGNUSON, MALONE, MANSFIELD, MARTIN, MAYBANK, MCCARRAN, MCCARTHY, MILLIKIN, MONRONEY, MUNDT, MURRAY, NEELY, PASTORE, PAYNE, POTTER, PURTELL, ROBERTSON, RUSSELL, SALTONSTALL,

SCHOEPPEL, SMATHERS, Mrs. SMITH of Maine, Messrs. SMITH of New Jersey, SMITH of North Carolina,

SPARKMAN, STENNIS, TAFT, THYE, WATKINS, WELKER, WILEY, WILLIAMS, and YOUNG.

Those who voted for Mr. MORSE are

Messrs. ANDERSON, KEFAUVER, KILGORE, LONG, MORSE, NEELY, and TOBEY.

On motion by Mr. TAFT, The chairman and the 12 additional members submitted to constitute the Committee on Labor and Public Welfare were agreed to.

On motion by Mr. TAFT, and by unanimous consent,

The chairman and the additional seven members submitted to constitute the Committee on the District of Columbia, and the chairman and the nine additional members submitted to constitute the Committee on Public Works were agreed to. HOLIDAY ON INAUGURATION DAY FOR FEDERAL

EMPLOYEES IN METROPOLITAN AREA OF
DISTRICT OF COLUMBIA

Mr. KNOWLAND, by unanimous consent, introduced a joint resolution (S. J. Res. 20) making January 20, 1953, a holiday for Federal employees, field service postal employees, and employees of the District of Columbia in the metropolitan area of the District of Columbia;

FRIDAY, JANUARY 16, 1953 The PRESIDENT pro tempore called the Senate to order, and the Chaplain offered prayer.

THE JOURNAL On motion by Mr. TAFT, and by unanimous consent,

The Journal of the proceedings of Tuesday, January 13, 1953, was approved.

MESSAGE FROM THE HOUSE A message from the House of Representatives by Mr. Chaffee, one of its clerks:

Mr. President: The House has passed without amendment the joint resolution (S. J. Res. 20) making January 20, 1953, a holiday for Federal employees, field service postal employees, and employees of the District of Columbia in the metropolitan area of the District of Columbia. AUTHORITY FOR COMMITTEES TO SIT DURING

THE SESSION OF THE SENATE The following committees were authorized to sit during the session of the Senate today:

The Committee on the District of Columbia; on the request of Mr. CASE;

The Committee on Banking and Currency, on the request of Mr. CAPEHART; and,

The subcommittee of the Committee on Government Operations, on the request of Mr. DIRKSEN.

REPORT OF CIVIL SERVICE COMMISSION

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States, which was read, and referred to the Committee on Post Office and Civil Service: To the Congress of the United States:

I am transmitting herewith the Sixtyninth Annual Report of the United States Civil Service Commission. This report covers the fiscal year ended June 30, 1952.

HARRY S. TRUMAN, THE WHITE HOUSE, January 16, 1953.

(Note: The above report was transmitted to the House of Representatives.) REPORT OF NATIONAL SCIENCE FOUNDATION

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States, which was read and, with the accompanying report, referred to the Committee on Labor and Public Welfare: To the Congress of the United States:

Pursuant to the provisions of Public Law 507, Eighty-first Congress, I transmit herewith the Second Annual Report of the National Science Foundation.

HARRY S. TRUMAN. THE WHITE HOUSE, January 16, 1953.

ECONOMIC REPORT OF THE PRESIDENT

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States, which was read, and, with the accompanying report, referred to the Joint Committee on the Economic Report:

THE WHITE HOUSE, Washington, D. C., January 14, 1953. The honorable the PRESIDENT OF THE

SENATE. The honorable the SPEAKER OF THE

HOUSE OF REPRESENTATIVES. SIRS: I am presenting herewith my economic report to the Congress, as required under the Employment Act of 1946.

In preparing this report, I have had the advice and assistance of the Council of Economic Advisers, members of the

REPORT ON THE MUTUAL SECURITY PROGRAM

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States, which was read and, with the accompanying report, referred to the Committee on Foreign Relations: To the Congress of the United States:

I am transmitting herewith a report on the operations of the Mutual Security Program covering the period from July 1 to December 31, 1952, insofar as statistics are available at this date. Since this is the last such report that I shall furnish to the Congress, I am taking this opportunity to review, in broad outline, the origins of the program, its accomplishments, and the kind of policy decisions that it will present to the new administration and Congress.

In October 1951 the Congress combined most of the major aspects of our international programs in the fields of defense, economic development, and technical assistance into one statute authorizing the Mutual Security Program.

The story of this program and its predecessors is the story of a crowded and dangerous period—a period of historic decisions. And mirrored in the evolution of this program is the story of a great national awakening, of a people in reluctant transition from wishful think

ing to a firm acceptance of the responsibilities of free-world leadership.

There is no need here to recall the state of the world at the end of hostilities—the destruction, the dislocations, the misery, and the demoralization of great areas and great segments of humanity. It was natural that American sympathy should go out to peoples everywhere suffering from the aftermath of history's most destructive war—and that our sympathy should be expressed in the form of generous assistance to the hungry and the sick and the displaced.

We already knew from painful experience that what happens in the rest of the world necessarily affects our own domestic life; that we cannot live secure and prosperous, isolated from a world community that is insecure and depressed. But not long after the end of the war we found that the problem was more than just physical relief from disaster. Gradually we realized that the world was suffering not only from the wreckage and wastage of war, but from deep social unrest

and from the predatory acts and intentions of a former ally.

In 1947 we were faced with a great decision. The British could no longer afford to carry the burden of support to the Greek Nation in its fight against Communist insurrection. On March 12, 1947, I addressed the Congress and explained the urgent need for a program of military and economic aid to Greece and Turkey, which was also under Communist pressure. In that address I reminded the Congress that the problems of Greece and Turkey were parts of a fundamental challenge facing the American people, and I said:

"I believe that it must be the policy of the United States to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures.

“I believe that we must assist free peoples to work out their own destinies in their own way.

“I believe that our help should be primarily through economic and financial aid which is essential to economic stability and orderly political processes."

The implications of these propositions soon became clear, as did the next steps that needed to be taken on the difficult course upon which we were embarked. The scattered aid that we were givingto Greece and Turkey and China in the form of military and economic aid, to France and Italy and Austria in the form of grant economic assistance, to Great Britain in the form of a loan, and to many countries through support of the United Nations special agencies clearly was not adequate in amount or in form.

For in early 1948—just 5 years ago large areas of Greece were still held by the still-powerful Communist forces.

Across the Adriatic Sea from Greece, 5 years ago, a new democratic government in Italy faced an election in a chaotic country—an election which, it was widely feared, might be won by the Communists.

Across the Alps in France there were unemployment and increasing hunger, black markets, and strikes—and bankruptcy ahead.

On the other side of the English Channel the British people were struggling against terrible odds to repair the dreadful damage of war and to feed a population which grows about one-third of the food it needs.

Western Germany lay prostrate, and the Kremlin was completing its plans to drive the Western Allies out of Berlin.

The peoples of Western Europe, aided by stopgap American help, had made a gallant effort to get up and stand on their own feet after the end of World War II, but the odds were too great. The inescapable fact was that they did not have and could not earn the dollars they needed to buy the things that were required to restore economic and social order in time to prevent chaos. In desperation, they were forced to seek relief in nationalistic economic and financial restrictions which, in the end, could only make the situation worse.

It was a situation that was made to order for the Kremlin-and the Kremlin made the most of it by promoting strikes and riots, by sabotaging recovery through its puppet Communist Parties, by political maneuver, and by massive injections of propaganda. It looked as if Western Europe might well fall to the Communists through economic and political collapse.

That, in broadest outline, was the state of Europe and its dependencies, and it bade no good for the peace of the world nor for the security of the United States.

Elsewhere in the world, the symptoms were not less alarming. The forces of Nationalist China were giving way before the Communists; fighting was under way in Indochina; there was violence in Burma and in Malaya; in Indonesia a new state was emerging with difficulty and uncertainty; the subcontinent of India had been divided and the long struggle for national security and stability was just beginning; Iran and Turkey were still subject to Soviet pressure. There were other areas of danger and potential danger in the Middle East, north Africa, and elsewhere.

The threat that this posed to the security of the United States needs no emphasis.

On both sides of the Atlantic the realization was growing that the problem of restoring economic and social stability in Europe could not be solved cheaply or quickly--nor by separate national efforts. What was required was a sustained cooperative undertaking. The ground work for this was laid in an address in June 1947, by Secretary of State Marshall. He said that if the nations of Europe would come together and prepare a plan of self-help and mutual aid, the United States was prepared to provide the critical margin needed for a successful recovery program. He specifically stated:

"It is logical that the United States should do whatever it is able to do to assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace. Our policy is directed not against any country or doctrine, but against hunger, poverty, desperation, and chaos."

That meant-among other thingsthat if the Soviet Union were prepared to enter into a cooperative international program of economic recovery, the United States would help in that endeavor.

This put Soviet policy to the test, and it soon became clear what the real Soviet intentions were with respect to Western Europe. When the then foreign ministers of the United Kingdom and France issued invitations to all of the governments of Europe to meet and discuss the implications of this American proposal, Mr. Molotov came to the conference, denounced the whole idea, and walked out to set up the Cominform which promptly set out to sabotage the recovery of Western Europe. The Soviet-dominated nations of Eastern Europe were forbidden by the Kremlin to participate in the European Recovery Program, but 18 nations enthusiastically went ahead with this unprecedented international venture. By spring of 1948 the Congress had enacted the Economic Cooperation Act which got the program under way and a scant 2 years later, these things had happened:

The industrial production of Western Europe had greatly exceeded prewar levels, and agricultural production had almost recovered.

The dollar deficit in the balance of payments of all the 18 countries participating in the recovery program had been reduced from $7 billion in 1947 to less than $2 billion in 1950.

Trade among the participating countries had more than doubled.

With the exception of Italy, Germany, and Belgium there was virtually full employment.

Rationing of almost all consumer items had been abolished and recourse to black markets for the necessities of life had been virtually eliminated.

Relative industrial peace had been established.

Measured by all indexes-parliamentary strength, party membership, membership in Communist trade-unions, circulation of party newspapers, et ceteraCommunist strength in Western Europe was on the wane.

The organization for European Economic Cooperation was providing general direction to the recovery program on a basis of unprecedented international cooperation; Belgium, the Netherlands, and Luxemburg were forging an economic union; the Council of Europe had been established; and the idea of European unification was gaining ground.

The principle of common defense of the west was accepted and the first great organizational steps were taken.

In 1948, the United Kingdom, France, Belgium, the Netherlands, and Luxemburg concluded a defense treaty and established central headquarters in France. In April 1949, the North Atlantic Treaty Organization had been established linking together the greatest potential aggregation of military power, industrial strength, and human skills ever brought together in a common enterprise. Shortly thereafter, the Congress enacted the Mutual Defense Assistance Act to

contribute to a moderate increase in the military defenses of the free world.

The statistical story of physical recovery during the first 2 years of the European recovery program was deeply impressive. But more important than exact quantitative measurements was the reversal of trends toward economic deterioration, political weakness, and spiritual despair and the emergence of trends toward economic growth, political strength, and spiritual hope. By far the major part of this record was due to the efforts of the Europeans and the vitality and imagination of European statesmanship. The role of the United States was to supply the missing elements without which the program could not be undertaken.

All this was accomplished in spite of every effort-diplomatic pressure, political intrigue, propaganda onslaught, and actual sabotage on the part of the Communist Parties of Western Europe to wreck this program.

In short, by 1950, the Kremlin's plot to take over Western Europe had been frustrated: The nations of Western Europe were still free, still democratic, and had new hopes and a new faith in the future. There was no longer any great likelihood that Western Europe would collapse internally and fall into the arms of the Kremlin.

Meanwhile, China had fallen to the Communists and the Nationalist Chinese had retreated to Formosa. The Chinaaid program, conducted by the Economic Cooperation Administration, was continued in Formosa and, under special authorization, funds from that program were used in other far eastern countries which were either subject to direct or indirect Communist attack or were in economic difficulties. In addition, the Mutual Defense Assistance Act had made funds available to provide military equipment required by these countries to combat overt Communist efforts to take them by force. Despite the serious impact on the economy of Formosa of the arrival of thousands of refugees, the island was kept away from the Communists and the first steps had been taken to relieve the impact upon its economy. This assistance, particularly to Indochina, began to have effect in building up strength to resist direct or indirect Communist aggression. In short, the Kremlin's plot to take over all of Asia had been frustrated also.

By 1950 we were starting the next great step on the difficult course upon which we had embarked in 1947—the point 4 program to provide the technical assistance needed to lay the basis for economic and social progress in the underdeveloped areas of the world. Working directly with individual nations, and through the United Nations, we began the long process of attacking hunger, disease, and illiteracy. Programs began to take shape to bring scientific knowledge and modern techniques to the underdeveloped area, mainly in the fields of agriculture, public health, and education.

Hope for a decent life had begun to dawn for tens of millions in the underdeveloped areas of the world.

But in the fall of 1949 the Soviet Union had produced its first successful atomic explosion. In the summer of 1950 came the Kremlin's decision to test the courage and the will of the free world by instigating aggression in Korea. These two events forced the United States and its allies to shift regrettably from a proyram which emphasized economic recovery to a program which emphasized urgent rearmament, especially in Europe. Rearmament on the scale undertaken after the Korean invasion could not even have been considered had it not been for the economic recovery and the restoration of hope and confidence that already had taken place.

Since 1950, our principal efforts in the Atlantic community of nations have been directed toward the establishment of military security.

And since then these things have happened:

The first international military command in the peacetime history of the world has become a going concern.

The NATO nations, originally 12 and now 14, have agreed on a common strategic plan for the common defense.

These nations are building, together, balanced collective forces.

Armed forces of the original NATO nations have more than doubled and to those have been added the powerful forces of Turkey and Greece.

Intensive joint training exercises and war games have been carried out on land, sea, and in the air by the armed forces of many nations.

The consultative machinery originally established under NATO has been transformed into a permanent working organization.

While the nations of Western Europe and the Atlantic world are not yet secure against Soviet invasion, they have created and will continue to strengthen a powerful military deterrent to any aggression.

At the same time there has been real progress toward the establishment of a Western European community of nations, including the Federal Republic of Germany. The Schuman plan-one of the most imaginative acts of statesmanship in our times—has led to the es. tablishment of a six-nation merger of coal and steel resources. The same six nations are considering ratification of a treaty to establish a common defense force with a common budget under supranational control; other projects are pending for economic integration; and work has been started on a draft constitution for political federation. There have been disappointments and setbacks; we face a number of difficult problems right now. But, over-all, the movement toward greater unity in Europe is still continuing.

In short, what began as international cooperation for economic recovery in Western Europe is growing into collective defense, economic integration, and political unity. This is one of the most

hopeful—and essential-developments in our time.

All this has been accomplished despite every effort short of general war which the Kremlin could devise to stop us. It has been done, too, with conscious regard for the economic and social consequences of the diversion of resources from economically constructive purposes to the military program that has been forced upon us.

Since 1950 the United States-principally through the Mutual Security Program-has been helping many nations outside of Europe to strengthen their miiltary security. We helped equip the armed forces of France and the Associated States of Indochina in their gallant and exhausting fight against Communist insurrection; we helped supply the forces of the Philippines to put down the Communist-inspired Huk rebellion; we concluded mutual defense treaties with Japan and with the Philippines; we completed a tripratite treaty with Australia and New Zealand for common defense of the South Pacific; we provided both military and economic assistance to the free Chinese on Formosa; we continued to help bolster Iranian defenses; and we are helping to supply our Latin-American friends with military equipment in line with the Western Hemisphere defense alliance concluded in the Rio Pact.

The heavy emphasis we have placed on military preparedness in the past few years has been brought about because we have been confronted with a military threat, because we and the other free nations considered it urgent to mobilize the military and industrial resources of the free world for mutual defense against this threat, and because the initiative in this imperative task clearly lay with the United States.

But we have not lost sight of the fact that the Soviet design for conquest counts on subversion as well as military aggression. In contrast to the false promises of food and better living conditions offered by the Communists, we have joined with other peoples, particularly in the underdeveloped areas, in tangible cooperative programs that strike directly at hunger, disease, and illiteracy. We have aided and participated in basic economic development projects in many parts of the world. Technical assistance programs are now under way in 41 countries and also in many overseas territories of European nations.

These programs of technical assistance would be vitally important quite apart from the existence of the Communist conspiracy. Our basic desire is to help other people to help themselves build decent conditions of life in which they can find political and social security. When we strike against the enemies of mankind-poverty, illiteracy, hunger, and disease-we work for freedom also; when we build the conditions in which freedom can flourish we destroy the conditions under which totalitarianism can grow. Moreover, the resulting increase in production and trade help, in turn, not only the underdeveloped countries but

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