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Mr. YEOMANS. I think that is essentially true, yes.

Mr. ROOSEVELT. Mr. Yeomans, may I ask you one other question. Am I correct in the statement which has been made to me that the Department of the Interior has been approached by a manufacturer seeking information as to whether they can go down to Samoa and establish a plant down there under government contract?

Mr. YEOMANS. Yes, sir. We were so approached.
Mr. ROOSEVELT. What was the nature of the inquiry?

Mr. YEOMANS. It was to go to Samoa to open a plant which would produce brassieres, using Samoan labor.

Mr. ROOSEVELT. Have you had any other requests outside of that one?

Mr. YEOMANS. No, sir. That is the only other one apart from, of course, the Van Camp operation which is already underway.

Mr. ROOSEVELT. Would there be a possibility, in your opinion-although I recognize the Department does not have jurisdiction, as I understand it, over Okinawa-that a similar operation might result in those areas that had surplus labor available to them?

Mr. YEOMANS. It is difficult for me to answer that, Mr. Roosevelt. I am not a lawyer, and I have not looked into the Okinawa situation particularly.

Mr. ROOSEVELT. You have no jurisdiction over Wake Island, do you? Mr. YEOMANS. No, sir; we have not.

Mr. ROOSEVELT. Are there any other areas that you do have jurisdiction over that would be eliminated by this act as you interpret it? Mr. YEOMANS. No, sir.

The only other area we have apart from the Virgin Islands, which already has a special provision-Hawaii is already under the act, and Guam we are discussing at the moment, and Samoa also we are discussing in this bill. And the only other one is the Trust Territory of the Pacific Islands.

Mr. ROOSEVELT. Is that not a considerable area and does that not include a considerable number of people?

Mr. YEOMANS. The act does not apply to the trust territory at the present time, to my understanding.

Mr. ROOSEVELT. The act does not apply at the present?

Mr. YEOMANS. Yes, sir.

You see the trust territory is not a possession or territory of the United States. It is an area over which we do not hold sovereignty, but an area over which we have full powers of administration.

Mr. ROOSEVELT. Under the Bermuda interpretation, is there not some possibility that it might be so held, however?

Mr. YEOMANS. Perhaps I am off base on this. The Defense Department perhaps could answer with respect to their activities in the trust territory. I am not current on that.

Mr. ROOSEVELT. Mr. Yeomans, I would appreciate if you would ask the Counsel in the Interior Department for a specific opinion as to whether or not the Bermuda opinion might not apply to the Department of the Interior also, because, as I read this bill, this would exempt other areas not specifically named, which would mean that the other trust areas would perhaps now be specifically eliminated whereas under the Bermuda opinion they would presently come under the act. I think it is important to this committee to have that opinion.

Mr. YEOMANS. I will get it.

Mr. ROOSEVELT. That is all, Mr. Chairman.

Mr. ELLIOTT. Mr. Coon?

Mr. Coon. No questions.

Mr. ELLIOTT. Mr. Fjare?

Mr. FJARE. Has the legislature of the Government of Guam expressed an opinion or desire for an enactment of this legislation we are discussing?

Mr. YEOMANS. No, sir; not to my knowledge.

(See letter of Department of the Interior and resolution of Guam legislature printed beginning on p. 344.)

Mr. FJARE. Thank you. That is all.

Mr. ELLIOTT. Thank you very much, Mr. Yeomans, for the information you have brought to the committee.

The Chair notes that we have Mr. D. M. Cramer, of the Bureau of International Organization Affairs, and Mr. Sullivan, of the Far East Office of the Department of State.

I wonder if it might be convenient for you gentlemen to come next Tuesday? As convenient next Tuesday as it is this afternoon? Mr. CRAMER. Yes, sir; it would be. Is that in the morning? Mr. ELLIOTT. Tuesday morning at 10 o'clock.

Thank you very much.

Gentlemen, if there is no objection, the committee will go over until Tuesday.

(Whereupon, at 12 o'clock noon, the subcommittee was recessed, to be reconvened at 10 a. m., Tuesday, February 28, 1956.)

MINIMUM WAGES IN CERTAIN TERRITORIES, POSSESSIONS, AND OVERSEA AREAS OF THE UNITED STATES

TUESDAY, FEBRUARY 28, 1956

HOUSE OF REPRESENTATIVES,
SUBCOMMITTEE OF THE COMMITTEE

ON EDUCATION AND LABOR,
Washington, D. C.

The subcommittee met at 10 a. m., pursuant to recess, in room 429, House Office Building, Hon. Carl Elliott (chairman of the subcommittee) presiding.

Present: Representatives Elliott, Chudoff, Roosevelt, Holt, Coon, and Fjare.

Present also: John O. Graham, minority clerk; Kennedy W. Ward, assistant general counsel; and Russell C. Derrickson, chief investigator. Mr. ELLIOTT. The committee will be in order.

The first witness we have for today is Mr. D. M. Cramer, of the Bureau of International Organization Affairs of the State Depart

ment.

Is Mr. Cramer present?

Also at the same time we have listed as a witness Mr. Sullivan, of the Far East Office of the State Department. Is he present?

If not, at this time the Chair will recognize Mr. Roosevelt, who has an insertion for the record.

Mr. ROOSEVELT. Mr. Chairman, I have received a letter, addressed to me from the Ambassador from the Philippines, Mr. Romulo. If it is agreeable to the committee, may I read the letter and then insert another letter?

Mr. ELLIOTT. Yes.

Mr. ROOSEVELT. It says:

MY DEAR MR. ROOSEVELT: I am enclosing a copy of my note to the Department of State regarding the proposed amendment to the Fair Labor Standards Act of 1938, as amended.

The proposed amendment will affect more than 13,000 Filipino laborers on Wake Island. It will be an act of discrimination against them, and I have been instructed by my Government to make the necessary representations in their behalf. Aside from that, the implications that will be drawn by the peoples of Asia from such legislation are of such far-reaching significance that I consider it my duty as a friend of this United States to call the attention of the committee to them, and to bring them to your personal attention.

May I ask you to make my note to the State Department as part of the proceedings of your committee hearings.

Thanking you for your kind attention, and with the assurance of my high regard and esteem, I am,

Sincerely yours,

CARLOS P. ROMULO.

And there is enclosed a letter or statement by the Ambassador to the Department of State, addressed to His Excellency John Foster Dulles, Secretary of State, Washington, D. C.

Mr. ELLIOTT. Without objection, the letter to the State Department will be made a part of the record of these hearings.

(The letter referred to follows:)

His Excellency JOHN FOSTER DULLES,

Secretary of State, Washington, D. C.

FEBRUARY 27, 1956.

EXCELLENCY: I have the honor to invite Your Excellency's attention to a proposed legislation now before the United States Congress seeking to exempt Guam, American Samoa, and Wake Island from the application of the Fair Labor Standards Act of 1938, as amended. I refer to the three bills, H. R. 209, H. R. 9129, and H. R. 9114, introduced in the House of Representatives and one bill, S. 2404, presented in the Senate.

I wish to express my Government's concern over this legislation which affects some 13,000 Filipino nationals now employed in Guam and Wake Island and who constitute the bulk of workers in those two areas. It will be recalled that it was at the request of the United States Government in 1947, through an exchange of notes between the American Embassy in Manila and the Department of Foreign Affairs of the Philippine Government, that Filipino laborers were allowed by my Government to be recruited for employment in Guam, Wake Island, and other islands in the Pacific where the United States Army and Navy have military installations. In the spirit of mutual cooperation my Government agreed to have its nationals go outside of the Philippines to work in such United States installations. The Philippine Secretary of Labor approved the contracts for their recruitment and employment under certain terms and conditions.

Since the Fair Labor Standards Act of 1938, as amended, now applies to Guam and Wake Island and since its application is limited to employees engaged in, or who produce goods for, interstate commerce and does not apply to those engaged in agriculture and certain types of services and enterprises, the act may thus affect only a limited number of Filipino workers in Guam and Wake Island.

The Philippine Government is, as I already stated, seriously concerned over the proposed amendment because to exempt Guam and Wake Island from the application of the Fair Labor Standards Act of 1938, as amended, would be interpreted in the Philippines as an act of discrimination against Filipino laborers in those American possessions. What is of grave concern to us also is the probable implications that will be drawn from such an act by those who are quick to misrepresent and exploit divisions and prejudices in what is now one of the most sensitive sectors of the world. We must not give the enemies of democracy and freedom an opportunity to distort America's motives and magnify the amendment as a desire of the United States to perpetuate what they will undoubtedly brand as coolie labor. This we know would be a gross misrepresentation but it would be in line with Communist tactics and it would place us who believe in America on the defensive with our own people since what we are really asking for in their behalf is but the righting of an injustice simply by enforcing an already existing law.

In view of the foregoing circumstances, I respectfully request Your Excellency's assistance to prevent discrimination against Filipino nationals now working in Guam and Wake Island which would result if the proposed amendment is approved by your Congress. I would appreciate it if Your Excellency could bring the views of the Philippine Government on this matter to the respective committees of both Houses.

Accept, Excellency, the renewed assurances of my most distinguished consideration.

CARLOS P. ROMULO.

Mr. ELLIOTT. At the same time I have a letter from Mr. William Arnold, Assistant Director for Insular Affairs of the Department of the Interior, Office of Territories, dated February 23, 1956, submitting certain information for the record that was requested at the hearings on February 17.

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