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Mr. HOLT. I cannot remember whether it was the Guam Legislature or the Philippine Legislature, but did not one of them appoint a committee to look into this situation? Was it the Philippine Legislature?

Mr. SULLIVAN. The Philippine Government has sent, to my knowledge, at least 3 and it could be as many as 4 delegations to Guam to investigate the labor situation over there since that agreement of

1947.

I think it was about a year ago, or maybe 18 months ago that a Senate committee or a Presidential committee, as they called it, was sent over there to make an investigation.

Mr. HOLT. Do you know what the nature of that report was?

Mr. SULLIVAN. That report was never turned over to this Government by the Philippine Government.

My understanding is, however, that the report indicated that the working conditions and the wages there were generally in keeping with the terms of the agreement.

Mr. HOLT. Did the Philippine Government issue or make any statement or any complaints after that legislative committee of theirs reported officially to our Government?

Mr. SULLIVAN. I do not believe there was any official complaint, no, sir.

Mr. HOLT. Now this new agreement will be made between the Philippine Government and our State Department. Is that correct? After you get the information from the Defense Department?

Mr. SULLIVAN. Yes, sir. The United States negotiating team would certainly be headed by a State Department representative. As Mr. Goott has suggested, we will, of course, have to depend very heavily upon the labor technicians in the Defense Department to negotiate on the details of the agreement.

Mr. HOLT. Have there been any notes from the Philippine Government regarding the subject since the one you got last fall, requesting that new negotiations begin, and this one that the Ambassador just sent in relation to this subject in the last several weeks?

Mr. SULLIVAN. This note that the Ambassador has sent made no mention of the labor negotiations.

Mr. HOLT. It was on this subject.

Mr. SULLIVAN. It was on the subject of this bill. It expressed the concern of the Philippine Government over this bill.

I cannot remember exactly the date, but it was some time, I would say, around the 10th of December the Philippine Government asked if we would be ready to enter into these negotiations, I think on about the 20th. It was about 10 days' notice.

The Defense Department at that time was not prepared, did not have the material ready. It was just before the Christmas holidays, and we at that time said we were not ready to enter into these negotiations.

Mr. HOLT. That is all that has been done on the subject?
Mr. SULLIVAN. There has been nothing more since then.

Mr. HCLT. Just out of curiosity, because I do not deal often in the realm of foreign affairs on this committee, what is the proper procedure for an ambassador from a foreign country to let his views be known on a subject of this type to a congressional committee?

Mr. SULLIVAN. Sir, I believe the proper procedure, possibly, is

I should ask Mr. Lehigh of the congressional relations staff to take this up, but I believe that the answer is that it should be done through the Department of State and not directly.

Mr. HOLT. I see.

I would not want to endanger our foreign affairs by mentioning any names, because the individual involved is a personal friend of mine, but I think we all know who we are talking about.

Thank you, Mr. Chairman.

Mr. ELLIOTT. Mr. Coon?

Mr. Coon. I do not have any questions.

Mr. ELLIOTT. Again I want to thank Mr. Goott and Mr. Sullivan and Mr. Cramer for the very helpful testimony they have brought. Before you go, I believe Mr. Ward had a question or two.

Mr. WARD. It has been covered.

Mr. ELLIOTT. Mr. Graham?

Mr. GRAHAM. I have asked this, I think, of everyone that has appeared. This is with respect to the last paragraph of your statement on retroactivity.

You have mentioned throughout your statement the act had not been enforced, and so removing some people from coverage, or setting up a different procedure, would not actually create a new problem, as in most cases the wages that were paid on leased bases were consistent with the economy of these foreign countries.

Do you feel that it would cause more disruption in the event a windfall were given to foreign laborers through a court action or an award than if the status quo were allowed to remain by a full cutoff? Mr. Gooт. Well, as I say, we have not ourselves determined, nor do we feel it is our responsibility to determine, which technique would be more effective in meeting this retroactive liability problem. There might be an occasional windfall. I do not know that that would have any special importance.

The basic problem, as I understand it, is to safeguard the situation as it has applied in the past.

From the foreign relations standpoint, we can sort of assume a neutral position on it except that we would tend to prefer this good faith procedure because it has less the semblance of an arbitrary cutoff and would be less likely to be interpreted as an arbitrary action designed to discriminate against any particular group of people.

Mr. GRAHAM. I was thinking it would have more of an adverse effect if a whole group of people received extra money in hand as far as the feeling of their countrymen is concerned than if there was a full cutoff and just a few people that had negotiated the thing originally were aware of the fact.

Mr. Goort. I do not perceive any special problems.

Mr. GRAHAM. It is a matter of opinion.

Mr. GoOTT. I do not perceive any special problems that would arise in that connection either way.

Mr. ELLIOTT. Thank you very much, Mr. Goott, Mr. Sullivan, and Mr. Cramer. Your testimony has been most helpful and most interesting.

The agreement covering the trust territory submitted by Mr. Cramer will be inserted in the record at this point.

(The agreement referred to follows:)

TRUSTEESHIP AGREEMENT FOR THE TRUST TERRITORY OF THE PACIFIC ISANDS UNDER UNITED STATES ADMINISTRATION

(Formerly the Japanese Mandated Islands)

AND RELATED DOCUMENTS

Approved by the Security Council of the United Nations on April 2, 1947 (S/318). Approved by the President of the United States on July 18, 1947, upon authorization by the Congress (Public Law 204, 80th Congress). Entered into Force on July 18, 1947

PREAMBLE

Whereas Article 75 of the Charter of the United Nations provides for the establishment of an international trusteeship system for the administration and supervision of such territories as may be placed thereunder by subsequent agreements; and

Whereas under Article 77 of the said Charter the trusteeship system may be applied to territories now held under mandate; and

Whereas on 17 December 1920 the Council of the League of Nations confirmed a mandate for the former German islands north of the equator to Japan, to be administered in accordance with Article 22 of the Covenant of the League of Nations; and

Whereas Japan, as a result of the Second World War, has ceased to exercise any authority in these islands;

Now, therefore, the Security Council of the United Nations, having satisfied itself that the relevant articles of the Charter have been complied with, hereby resolves to approve the following terms of trusteeship for the Pacific Islands formerly under mandate to Japan.

ARTICLE 1

The Territory of the Pacific Islands, consisting of the islands formerly held by Japan under mandate in accordance with Artible 22 of the Covenant of the League of Nations, is hereby designated as a strategic area and placed under the trusteeship system established in the Charter of the United Nations. The Territory of the Pacific Islands is hereinafter referred to as the trust territory.

ARTICLE 2

The United States of America is designated as the administering authority of the trust territory.

ARTICLE 3

The administering authority shall have full powers of administration, legislation, and jurisdiction over the terrotory subject to the provisions of this agreement, and may apply to the trust territory, subject to any modifications which the administering authority may consider desirable, such of the laws of the United States as it may deem appropriate to local conditions and requirements.

ARTICLE 4

The administering authority, in discharging the obligations of trusteeship in the trust territory, shall act in accordance with the Charter of the United Nations, and the provisions of this agreement, and shall, as specified in Article 83 (2) of the Charter, apply the objectives of the international trusteeship system, as set forth in Article 76 of the Charter, to the people of the trust territory.

ARTICLE 5

In discharging its obligations under Article 76 (a) and Article 84, of the Charter, the administering authority shall ensure that the trust territory shall play its part, in accordance with the Charter of the United Nations, in the maintenance of international peace and security. To this end the administering authority shall be entitled:

1. to establish naval, military and air bases and to erect fortifications in the trust territory;

2. to station and employ armed forces in the territory; and

73588-56-pt. 1- -22

3. to make use of volunteer forces, facilities and assistance from the trust territory in carrying out the obligations towards the Security Council undertaken in this regard by the administering authority, as well as for the local defense and the maintenance of law and order within the trust territory.

ARTICLE 6

In discharging its obligations under Article 76 (b) of the Charter, the administering authority shall:

1. foster the development of such political institutions as are suited to the trust territory and shall promote the development of the inhabitants of the trust territory toward self-government or independence as may be appropriate to the particular circumstances of the trust territory and its peoples and the freely expressed wishes of the peoples concerned; and to this end shall give to the inhabitants of the trust territory a progressively increasing share in the administrative services in the territory; shall develop their participation in government; shall give due recognition to the customs of the inhabitants in providing a system of law for the territory; and shall take other appropriate measures toward these ends;

2. promote the economic advancement and self-sufficiency of the inhabitants, and to this end shall regulate the use of natural resources; encourage the development of fisheries, agriculture, and industries; protect the inhabitants against the loss of their lands and resources; and improve the means of transportation and communication;

3. promote the social advancement of the inhabitants, and to this end shall protect the rights and fundamental freedom of all elements of the population without discrimination; protect the health of the inhabitants; control the traffic in arms and ammunition, opium and other dangerous drugs, and alcohol and other spiritous beverages; and institute such other regulations as may be necessary to protect the inhabitants against social abuses; and

4. promote the educational advancement of the inhabitants, and to this end shall take steps toward the establishment of a general system of elementary education; facilitate the vocational and cultural advancement of the population; and shall encourage qualified students to pursue higher education, including training on the professional level.

ARTICLE 7

In discharging its obligations under Article 76 (c), of the Charter, the administering authority shall guarantee to the inhabitants of the trust territory freedom of conscience, and, subject only to the requirements of public order and security, freedom of speech, of the press, and of assembly; freedom of worship, and of religious teaching; and freedom of migration and movement.

ARTICLE 8

1. In discharging its obligations under Article 76 (d) of the Charter, as defined by Article 83 (2) of the Charter, the administering authority, subject to the requirements of security, and the obligation to promote the advancement of the inhabitants, shall accord to nationals of each Member of the United Nations and to companies and associations organized in conformity with the laws of such Member, treatment in the trust territory no less favourable than that accorded therein to nationals, companies and associations of any other Member of the United Nations except the administering authority.

2. The administering authority shall ensure equal treatment to the Members of the United Nations and their nationals in the administration of justice. 3. Nothing in this Article shall be so construed as to accord traffic rights to aircraft flying into and out of the trust territory. Such rights shall be subject to agreement between the administering authority and the state whose nationality such aircraft possesses.

4. The administering authority may negotiate and conclude commercial and other treaties and agreements with Members of the United Nations and other states designed to attain for the inhabitants of the trust territory treatment by the Members of the United Nations and other states no less favourable than that granted by them to the nationals of other states. The Security Council may recommend, or invite other organs of the United Nations to consider and recommend, what rights the inhabitants of the trust territory should acquire in consideration of the rights obtained by Members of the United Nations in the trust territory.

ARTICLE 9

The administering authority shall be entitled to constitute the trust territory into a customs, fiscal, or administrative union or federation with other territories under United States jurisdiction and to establish common services between such territories and the trust territory where such measures are not inconsistent with the basic objectives of the International Trusteeship System and with the terms of this agreement.

ARTICLE 10

The administering authority, acting under the provisions of Article 3 of this agreement, may accept membership in any regional advisory commission, regional authority, or technical organization, or other voluntary association of states, may co-operate with specialized international bodies, public or private, and may engage in other forms of international co-operation.

ARTICLE 11

1. The administering authority shall take the necessary steps to provide the status of citizenship of the trust territory for the inhabitants of the trust territory.

2. The administering authority shall afford diplomatic and consular protectection to inhabitants of the trust territory when outside the territorial limits of the trust territory or of the territory of the administering authority.

ARTICLE 12

The administering authority shall enact such legislation as may be necessary to place the provisions of this agreement in effect in the trust territory.

ARTICLE 13

The provisions of Articles 87 and 88 of the Charter shall be applicable to the trust territory, provided that the administering authority may determine the extent of their applicability to any areas which may from time to time be specified by it as closed for security reasons.

ARTICLE 14

The administering authority undertakes to apply in the trust territory the provisions of any international conventions and recommendations which may be appropriate to the particular circumstances of the trust territory and which would be conducive to the achievement of the basic objectives of Article 6 of this agreement.

ARTICLE 15

The terms of the present agreement shall not be altered, amended or terminated without the consent of the administering authority.

ARTICLE 16

The present agreement shall come into force when approved by the Security Council of the United Nations and by the Government of the United States after due constitutional process.

[PUBLIC LAW 204-80TH CONGRESS]

[CHAPTER 271-1ST SESSION]

H. J. Res. 233

JOINT RESOLUTIONS Authorizing the President to approve the trusteeship agreement for the Territory of the Pacific Islands

Whereas the United States submitted to the Security Council of the United Nations for its approval in accordance with article 83 of the Charter of the United Nations a proposed trusteeship agreement for the Pacific Islands formerly mandated to Japan under which the United States would be prepared to administer those islands under trusteeship in accordance with the Charter of the United Nations; and

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