Colonel HERR. Experience has shown that the imposition of personnel principles, customs, or procedures of the guest power on personnel of the host country is unsatisfactory.

When we use the term "guest power" we are talking about ourselves, and when we say "host country" we are talking about the government of the country in which we are establishing our base.

It may become a source of friction and misunderstanding between the host government and the guest force, and usually results in general employee dissatisfaction. Local nationals should be paid wages and salaries, and be afforded conditions of employment which are based on local law and custom and which are not more or less favorable than those enjoyed by those with similar skills and in similar occupations in the economy of the host country. Wages paid and employment conditions offered should be favorable enough to meet existing fair standards in the labor market, but not so advantageous as to create a "privileged group" within the host country.

There are various instances where a failure to adhere to the abovestated principle would have resulted in the evil meant to be avoided by utilization of the principle. In response to inquiries made by the committee, some of these instances are herein recorded.

In Germany the United States forces adhere as closely as possible to wage and employment conditions and customs prevailing for comparable employment in local industry. Local labor legislation is observed to the extent that it is compatible with administrative, budgetary, or security requirements of the United States forces. Personnel are covered by the local social insurance program. This situation is the result of an informal agreement reached by discussion and negotiation betwen the commanding general of the United States forces and the Finance Minister of the host nation, Germany in that instance.

An informal arrangement concluded between the United States Ambassador and a representative of the Turkish Government constitutes the basis for labor policy in that country. There again the principle is followed of paying wages at local rates comparable to those paid in Government and local industry. However, employment practices are patterned after personnel practices in the United States.

Japan has a similar system, the result of a contract between the commanding general of the United States forces and an agency of the host nation. There the foreign government agency does the hiring and direct paying. The wage scales and employment conditions are based on those applicable to employees of the host governmentJapan. Personnel are covered by the social insurance program of the host government-Japan. Local labor laws and customs are fully observed. This is true also of France with the exception that the system was established by an administrative regulation of their own government promulgated under authority of a treaty between the two nations and, with the further exception that wage scales and conditions of employment are based on those applicable, to governmental or industrial workers.

Like France and Japan, in Italy recruitment is accomplished by an agency of the host government according to the terms of a written arrangement between a representative of the United States forces and a commission appointed by the host nation. Here the practice is to adhere as closely as practicable to wage and

and customs prevailing for comparable employment in local industry. To the extent that it is compatible with administrative, budgetary, or security requirements, local labor legislation is observed. Personnel are covered by the social insurance program of the host government. In Korea there is an informal arrangement concluded by representatives of the two nations. The wage rates and employment conditions are patterned after prevailing practices in the local economy. Such labor legislation as exists is followed to the extent possible under budgetary and security limitations. No provision is made for social security. The same situation exists in Austria with the exception that the social security program of the host nation covers these employees.

Further particulars with respect to these various countries are, as I pointed out, enumerated in this chart showing a substantial portion of the understandings reached with these various governments.

It can be seen that in each instance the employment practices regarding standards were instituted after some form of agreement was reached with representatives of the host nation. This office is informed that these representatives were desirous of creating an employment policy which closely corresponded with the policy generally existing in the economy of the host nation.

I believe, gentlemen, that gives you the examples you asked for in connection with the previous testimony that was given by me. Mr. ELLIOTT. Thank you very much, Colonel Herr.

Colonel HERR. Here are the other items, Admiral, to present. Mr. ELLIOTT. Will you detail the other items there that you are submitting for the record?

Colonel HERR. Yes, sir; I will. We have here a list of documents to be submitted.

First, Government of the Ryukyu Islands, Act. No. 42, 3d session, 2d regular. And this is an act relating to trade unions, dated October 1, 1953. That is an act of the legislature of the Ryukyus.

One question was asked: do we control that legislation.

We do.

Can we tell them what to legislate?

We have ways of telling them how to legislate.

Do we control their executive acts as well as their legislative acts? Yes. That is one of the acts that we passed relating to labor standards.

2. Government of the Ryukyu Islands, Act No. 43, 3d session, 2d regular. This is an act concerning the labor relations adjustment, and it is dated October 1, 1953. That again goes into labor standards and matters of that sort.

3. Government of the Ryukyu Islands, Act No. 44. This is an act concerning the Labor Standards Act, and that talks about minimum wages, child labor, extra leaves for pregnant women, and also labor standards both from the normal State-controlled standpoint and from the type of control that we exercise in the Fair Labor Standards Act and other Federal labor legislation.

Then we have No. 4, the United States Civil Administration of the Ryukyu Islands, Ordnance No. 68, dated February 29, 1952. That was the ordnance that I spoke about last time, which brings us within the control or brings the people that we hire and the employees of our contractors within the control that we are desirous of permitting, of

these various acts of the Ryukyus, and covers the same subject matter. No. 5 is the United States Civil Administration of the Ryukyu Islands, CA Ordnance No. 90, which has to do with the question that Congressman Roosevelt asked concerning whether or not businesses could be set up in the Ryukyus which would be competitive with the United States businesses. That act points out that the governor will exercise control through a board of any business or any economic enterprises that are set up in the Ryukyus.

I am further informed by our military government personnel who handle the Ryukyu administration that the Commerce Department has designated the Ryukyus as being a foreign government, and that any impor.s coming in would be subject to the same imposts or duties that those coming from some other foreign government would require. Mr. ROOSEVELT. Have a copy of that?

Colonel HERR. I have a copy of the act.

Mr. ROOSEVELT. Of the Commerce Department decision?

Colonel HERR. I do not. That was merely information I thought perhaps the Commerce Department itself could be called to give such testimony if you desired it because I do not want to speak for the Commerce Department.

Mr. ROOSEVELT. Would it be all right if the staff requests that from the Commerce Department?

Mr. ELLIOTT. Without objection, if the staff will get that information and submit it, it will become a part of the record following the documents that Colonel Herr is discussing now.

Mr. CHUDOFF. Is there any industry on the Ryukyus other than the building of military basis by the military?

Colonel HERR. I have some information on that, too.

Mr. CHUDOFF. It just seems to me unless there is some private industry there this is all much ado about nothing.

Colonel HERR. There are two reasons why your question might be well taken, or, rather, your statement might be well taken. One is that we think perhaps there is very little likelihood that the Fair Labor Standards Act could conceivably apply to the Ryukyus because of its foreign status and because of the entire employment force being non-American Ryukyuians, and so forth.

The second is that there is practically no industry to speak of. There are a total of 777,000 Ryukyuians on the Ryukyu Islands, of which 657,431 are on Okinawa. There are a total of 9,000 of these folks unemployed.

The 132,000 employables are employed as follows: self-employed and in-family workers, 50,000. Of these 50,000, 35,00 are proprietors of their own little businesses, and 15,000 are the family working for the proprietors. There are paid workers, a total of 82.000. Working for the government are 20,000 employees. Total employed by the United States forces there: 44,000. There are 9,000 domestics, and there are 9,000 employed in private industry having no relationship with the United States forces.

Mr. CHUDOFF. Do they manufacture anything in the Ryukyus? What do they manufacture outside of mats and things like that? Colonel HERR. I beg your pardon?

Mr. CHUDOFF. Outside of maybe mats, do they have any kind of industry at all on the islands?

Colonel HERR. I would like to be able to look through this a little more carefully on that point.

As far as I have been able to learn, the bulk of their industry, or the bulk of these privately employed people work for people who employ five or less. So if they manufacture, it is in very small units.

I believe that in this document I might find more particulars on that particular question, if I may beg off for a few moments on it.

Mr. ELLIOTT. Colonel, at this point, will you name the principal islands in the Ryukyu group?

Colonel HERR. There is Okinawa and Amami. Those are the only two I can see listed on the map. I don't know whether Amami is within the Ryukyus chain or not. In what appears to be the Ryukyu chain there are two names listed. One is Okinawa and the other is Amami.

Mr. ELLIOTT. Thank you very much.

Colonel HERR. But, as I pointed out before, Amami must not be a principal one because the total population of all the islands is 777,000 plus, and, of that 657,000 are on Okinawa.

So I believe Okinawa would be the principal island.

Mr. HOLT. Kwajalein is a part of the Marshall Islands, is it not? Colonel HERR. Yes, sir.

Are there any other questions that do not have to do with geography?

Thank you.

I will look up that other question. I will be prepared to give you what I have on it in the next few moments, sir.

Mr. ELLIOTT. You have not finished detailing those documents. Colonel HERR. I beg your pardon. I was thrown off the track. The next is the United States Civil Administration of the Ryukyu Islands, Civil Administration Ordnance No. 116, entitled "Labor Relations and Labor Standards Concerning Ryukyuan Employees." That is another one relating to the fair labor standards within the Ryukyu Islands.

The seventh is the one I read from a moment ago, the statement of policy regarding use of local labor standards in foreign areas with instances which give reason for that policy.

Mr. ELLIOTT. Without objection, the documents will become a part of the record at this point.

(The documents referred to follow :)

GOVERNMENT OF THE RYUKYU ISLANDS

Act No. 42

(3d Session, 2d Regular)

(L-35)

AN ACT RELATING TO TRADE UNIONS

Be it enacted by the Legislature of the Government of the Ryukyu Islands—

CHAPTER I. GENERAL PROVISIONS

ART. 1. The purposes of this Act is to elevate the status of workers by promoting that they shall be on an equal standing with their employers in their bargaining with the employer; to protect the exercise by workers of autonomous self-organization and association in labor unions so that they may carry out Pollective action including the designation of representatives of their own choos

ing to negotiate the term and conditions of work; and to encourage the practice and procedure of collective bargaining resulting in trade agreements governing relations between employers and workers.

2. The provisions of Article 35 of the Criminal Code (Law No. 45 of 1907) shall apply to collective bargaining and other acts of a trade union which are appropriate and being performed for the attainment of the purposes of the preceding paragraph: Provided, however, that in no event shall acts of violence be construed as appropriate acts of trade unions.

ART. 2. "Trade unions" under this Act shall be those organizations, or federations thereof, formed autonomously and substantially by the workers for the main purpose of maintaining and improving the conditions of work and for raising the economic status of the workers. However, this rule shall not apply to those;

1. Which admit to membership officers, workers at the supervisory post having direct authority to hire, fire, promote or transfer, workers at the supervisory post having access to confidential information relating to the employer's labor relations plans and policies so that their official duties and obligations directly conflict with their loyalties and obligations as members of the trade union concerned, and other persons who represent the interest of the employer;

2. Which receive the employer's financial support in defraying the organizations' operational expenditures: Provided, That this shall not prevent the employer from permitting workers to confer or negotiate with him during working hours without loss of time or pay; making contribution to welfare funds, or benefit and similar funds which are actually used for payments to prevent or relieve economic misfortune or accident; or to the furnishing minimum office space to the workers;

3. Whose objects are confined to mutual aid work or other welfare work; 4. Which principally aim at carrying on political or social movement.

ART. 3. "Workers" under this Act shall be those who live by wages, salaries or other remuneration assimilable thereto regardless of the kind of occupation. ART. 4. "Employers" under this Act shall be those, regardless of nationality, who are employing workers as specified in the preceding Article.

CHAPTER II. TRADE UNION

ART. 5. Unless the trade union has submitted evidence to the Labor Relations Commission and proved that it is in compliance with the provisions of Article 2 and Paragraph 2 of this Article, the trade union shall not be eligible to participate in the formal procedures provided for in this Act and the Labor Relations Adjustment Act and to avail itself of the remedies provided therein: Provided, That nothing herein shall be construed so as to deny any individual worker the protection accorded by Article 7, Item (1).

2. The constitution of the trade union shall include provisions provided for in each of the following items:

(3) Members of a trade union besides a federated trade union (hereinafter referred to as "local union") shall have the right to participate in all affairs of the trade union and the right to be rendered equal treatment;

(4) In no event shall any one be disqualified for union membership because of race, creed, sex, social status or family origin;

(5) The official of a local union shall be elected by secret ballot directly by the members, and the officials of a federation of a Ryukyu-wide union shall be elected by secret ballot directly by the members of the local union or by delegates elected directly by secret ballot of the members of the local union;

(6) General meetings shall be held at least once every year;

(7) Financial report showing all sources of revenue and expenses, names of main contributors and present financial status shall, after the auditing by auditor, be made public to the members at least once every year, together with certification of its accuracy by a professionally competent auditor appointed by the members;

(8) No strike action shall be started without a decision made by secret ballot either directly by a majority of members voting or by a majority of delegates voting directly elected by secret ballot by all members;

(9) No constitution of a local union shall be revised except by a majority vote by direct secret ballot of the members. No constitution of a Ryukyu-wide union or a federation shall be revised except by a majority vote by direct secret ballot