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It was necessary to draw up a release covering Field's resignation. Field himself proposed the rough draft of such a resolution, which I revised considerably before it was released.

Now, in transmitting my redraft to Mr. Carter, in a letter which Senator McCarthy has reproduced on page 25 of his brochure and which was discussed in the hearings before this committee a few days ago, I said that I would be glad to help Field with his cause.

The meaning of this expression becomes clear when considered in the light of the views I held concerning America's entrance into World War II. I touched on this matter yesterday, Mr. Chairman, but I feel it important to restate some of the points and to state more fully the point of view which I held at that time, and which gives the interpretation to the words used in that letter.

Senator BREWSTER. I was just going to ask the date of that meeting of the executive committee. Have you that?

Ambassador JESSUP. I think that I have it here, Senator. I will look just a moment.

Senator SPARKMAN: Wasn't it September 18, 1940?

Ambassador JESSUP. Yes, sir, that is right; September 18, 1940. Senator SPARKMAN. That is shown on page 24 of Senator McCarthy's presentation.

Ambassador JESSUP. That is correct, sir.

Senator GILLETTE. Mr. Chairman.

Senator SPARKMAN. Senator Gillette.

FIELD'S RESIGNATION IN ORDER TO DO RESEARCH

Senator GILLETTE. I have two or three questions to ask. I personally consider this to be the most pertinent and important matter that was presented to us by Senator McCarthy, which you are now discussing. Dr. Jessup, on page 30 you state that in the report to the board of trustees on June 28, 1940, Field stated that he wished to resign as secretary so that he could "devote his time to research work." Do you have available for the use of this subcommittee that report from which this purports to be a quotation?

Ambassador JESSUP. That is the report to the board of trustees. Senator GILLETTE. Do you have it available?

Ambassador JESSUP. I think I have. I will try to produce it and give it to the committee.

Senator GILLETTE. Will you make it available to us, not right now but so that it will be available?

Ambassador JESSUP. Yes, sir.

(The material referred to appears in the record as follows:)

PHILIP C. JESSUP'S COVERING LETTER TO THE IPR BOARD OF TRUSTEES, JUNE 28, 1940

To the Board of Trustees:

AMERICAN COUNCIL,

INSTITUTE OF PACIFIC RELATIONS,
New York City, June 28, 1940.

In transmitting Mr. Field's report of the reorganization of the American Council, involving a drastic reduction of its budget, I should like to let you know that Mr. Field's tactful and sincere handling of the problem has carried us through a crisis with less damage than an outsider would have believed possible. The staff's cooperation in this most unfortunate contraction which the financial situation made unavoidable is a tribute to it and to the unusual abilities of Mr.

Field. He and the staff built up a spirit in the organization which has proved that it can withstand a hard blow. The spirit is still there and the job of the American Council is still to be done with your help.

It is not possible, in my opinion, to refuse Mr. Field's request that he be freed from the administrative and financial routine of the office. But, since I share the view of the staff as expressed in a letter from Miss Farley of the staff to the executive committee, I cannot acquiesce in his complete separation from the direction of the affairs of the American Council. I have, therefore, appointed him staff adviser with the understanding that he is to be on leave without salary for the next 6 months. Miss Farley's letter included the following resolution of the entire staff:

"At this time the staff wish to express their appreciation of the leadership which Mr. Field has given to the American Council in the past. We consider that it is in the best interests of the American Council that Mr. Field should remain as closely associated with it as possible. We should therefore, like to see him continue as secretary of the council, exercising the maximum amount of guidance in the determination of policy consistent with his desire to be relieved of the burden of administrative work and financial promotion."

Sincerely yours,

PHILIP C. JESSUP, Chairman.

REPORT OF FREDERICK VANDERBILT FIELD TO THE IPR BOARD OF TRUSTEES,

JUNE 28, 1940

AMERICAN COUNCIL,

INSTITUTE OF PACIFIC RELATIONS, INC.,
New York City, June 28, 1940.

REPORT OF THE SECRETARY TO THE BOARD OF TRUSTEES

The chairman of the American council, Mr. Jessup, has asked me to report to the trustees on the steps which, in view of the heightening of the international crisis and its effect on the organization's income, it uas been necessary to take in reorganizing our staff and activities. Paradoxically, it has been the intensification of the war in Europe rather than the Sino-Japanese war which has brought the council's affairs to the critical state requiring immediate and drastic action. Financial situation

For some years the American council has been operating on a budget of approximately $90,000 a year of which from $10,000 to $15,000 has been earmarked for special projects, the remainder going to the organization's general purposes. Of the total budget approximately one-third has been contributed by the foundations for our general purposes, an additional fraction has come in the form of special grants for the special projects, and the remainder has been contributed by individuals, banks and corporations. This spring it became clear that because of the new state of emergency and because of the diversion of large sums of money to European relief the chances were very great indeed of a serious falling off of income. In addition, it became apparent that a considerable portion of the funds usually received from Carnegie sources could not be counted upon.

There were therefore two alternatives before the American council. The first was to continue our then rate of expenditure in the desperate hope that the situation would improve so that before the end of the year the whole of the originial budget could be attained. This course involved the great risk that if the situation did not improve the organization at the end of the year would find itself hopelessly in debt, to such an extent that its entire existence would be jeopardized. The other alternative was to take immediate steps of a sufficiently drastic nature to reduce our expenditures to sum which, it could reasonably be assumed, could be raised so that the nucleus of the council's activities could be maintained for the duration of this abnormal situation. It seemed wise to count on the critical situation lasting for a number of years.

Methods whereby drastic savings in the expenditures could be made were given thorough consideration by the entire staff and by members of the executive committee during the latter half of May with the result that decisions were taken on the 1st of June, to become fully effective on the 1st day of July. The consequent effect on the organization's budget for 1940 is to call for an expenditure during the second half year of about $31,000 as against an expenditure of about $52,000 if cuts had not been put into effect, a saving, in other words, of about

$21,000. For the full 12 months of 1941 the effect of the reductions which have been made, excluding the special projects category which represents in and out items in the budget, will be an expenditure of $40,000 as contrasted with $75,000 or $80,000. It is believed that if the members of the council renew their efforts to support the organization's program these sums can be secured even though the general situation should become worse than it is today.

Staff reorganization

In view of the fact that a large proportion of the expenditures of this type of organization goes toward staff salaries, important budget savings could be made only by reducing the size of the staff. The entire staff was asked to make its own recommendations and the plan which was finally adopted met with its complete approval as well as with my own. The principal criterion adopted was to reduce the staff in such a way that those who remained would constitute a well rounded group able to carry forward certain activities efficiently. This meant that in dismissing certain staff members emphasis was put on the cutting out of types of activity rather than on length of service or individual ability. As a result it was not possible to retain Mr. Lasker who has served the institute with unusual distinction for over 11 years, Mrs. Barnes who has been one of our most valuable staff members for nearly 6 years, Miss Wiss who has been a secretary on the staff for 11 years, and three stenographers who had served for much shorter periods. Fortunately, the council had worked out some time before a system of severence pay to govern just such eventualities as this and Mr. Lasker, Mrs. Barnes, and Miss Wiss will consequently remain on salary for a number of months. Nevertheless, I should like at this point to request the cooperation of the trustees in finding new positions for these highly competent individuals. I have every hope that regardless of whatever new work Mr. Lasker and Mrs. Barnes undertake they will retain a close association with the activities of the American council.

In discussing our reorganization I have told the chairman, Mr. Jessup, the chairman of the executive committee, Mr. Parker, and the treasurer, Mr. Harmon, as well as my colleagues on the staff that as soon as our reorganized office was working successfully I intended to submit my resignation as secretary of the American council. It is, I believe, in this connection that Mr. Jessup has asked me to forward the enclosed with this report. My reasons for wishing to resign are several. I have mentioned above that in cutting our staff so drastically we have aimed to retain a well-rounded group who could carry forward the activities described below as well as continue to promote the general purposes of the organization. In such a reduced staff it is clear that the secretary must undertake financial and membership promotion as a major part of his work. This is an aspect of the council's work in which I sincerely do not regard myself as particularly able and which I am frankly not willing to undertake as a major activity. While this in itself seems to me a convincing reason for offering my resignation, I have others. For a long time I have wanted to return to research work which the admiinstrative burdens of the secretary do not permit. I should hope that this research would be in connection with the American council's work. I believe further that in my 6 years as secretary I have made whatever particular contribution to the organization's work I could make in that capacity and that it would be to the organization's advantage to introduce a new personality and a fresh point of view. In view of these considerations, therefore, I most earnestly hope that the trustees will accept my resignation as of such time as a successor can be found and that they will cooperate with the officers in finding the best possible person to take over this work.

To complete the staff picture it is necessary to report that, irrespective of the reorganization which has been described above, an arrangement had been made some time ago whereby I should take 4 Months' leave of absence, beginning in the latter part of June, to give full time to the completion of the Economic Handbook of the Pacific Area. The international secretariat of the institute has requested that this job be completed this year and in order to make it possible has urged the American council to make this arrangement. I am very happy to report that Mr. Carter, the secretary-general of the institute, who is now in New York, has, in addition to continuing his duties with the Pacific council, agreed to take over the duties of the American council's secretary for this period.

The council's new program of activities

We have felt it to be vitally important that reductions be made in such a way that the American council could continue functioning vigorously. At the same time we have felt that the international and domestic situation required a re

appraisal of our program to make certain that the old activities which we continued or the new ones which we initiated would at one time carry forward the institute's long-term research and educational objectives and go as far as we felt possible in meeting the shorter-term demand for current information and discussion of contemporary events.

The central activities around which our plan of reorganization has been made are: (1) The continuance of the Far Eastern Survey as it has been prepared and edited for a number of years. Considerable reductions, however, have been obtained in printing costs, and the Survey will hereafter depend more on staff contributions and less on articles contributed from outside sources. (2) The inauguration of a Far East news summary and analysis, to be provided free of charge to the membership. The details of this project are now being formulated. In doing so we are governed primarily by two considerations: the first, that news of military and political developments in the Far East has never been adequately handled in American newspapers or journals; and, second, that in attempting to supplement this deficiency by its own bulletin the council must carefully avoid any sort of political bias. (3) A continuation and expansion of the council's program of conferences, discussions, and study groups. In this connection we have in mind promoting on a more extended and systematic basis than heretofore week-end discussion conferences, as well as less formal meetings for the exchange of views on the Far East situation as it affects this country, and the initiation of more serious and sustained study of what alternative outcomes of the Far East war would mean to the United States. (4) A considerable number of other, less tangible miscellaneous activities can be carried forward but on a scale greatly reduced from that prevailing when we could afford a larger staff. It is believed that even under the reorganization we can maintain fairly extensive contacts with those engaged in various forms of research and education in Far East questions; that we can continue our cooperation with a large number of other organizations and that we can also continue our efforts to stimulate projects which, while central to our field, can be carried out by universities or other private organizations. With regard to the council's research program, no great change from what we have been doing for the last year or year and a half will be involved, for with the launching of the international secretariat's large-scale inquiry into the SinoJapanese War we had for some time felt that the main job was to apply the results of this project as they became available rather than to initiate new projects. Our policy in this respect has, in other words, been and will continue to be to apply research now becoming available rather than to set new studies under way. Finally, in connection with a summary of activities, it should be remarked that the council hopes that its regional branches and groups will continue the development of programs in their local communities. Relations between these groups and the national body are in process of reformulation in the interests of all concerned.

Conclusion

Implicit in whatever plans have recently been made with respect to the American council has been the conviction that regardless of the disastrous wars which face us across both oceans and regardless of whatever relation this country adopts toward those wars, the kind of work which the American council is doing must be sustained with all the vigor possible under the circumstances. No trustee or member of the organization has given any contrary counsel. In closing, I should consequently like to appeal for the fullest possible cooperation of the trustees in seeing that this conclusion is successfully carried out.

Senator GILLETTE. Second, on page 31 you say:

FREDERICK V. FIELD.

Prior to the settlement of the matter, however, Field sent me a telegram that he was accepting the job of secretary of a newly formed organization later called the American Peace Mobilization, and must affirm his resignation. This telegram was considered by a meeting of the executive committee.

Do you have a copy of that telegram or the original that you can make available to us?

Ambassador JESSUP. I will look, sir, and find it. It may be merely that I have a reference to it. If I have the text, I will produce it and make it available to the committee.

of

Senator SPARKMAN. May I suggest that what purports to be a copy your report to the board of trustees appears on page 21 of Senator

McCarthy's presentation. You might check that to see if that is correct, and I believe the telegram is given somewhere in his presentation,

too.

Ambassador JESSUP. I do not know if the telegram is.

IPR EXECUTIVE COMMITTEE MEETING SEPTEMBER 18, 1940

Senator GILLETTE. My third point: on the second paragraph on page 31, you speak of the meeting of the executive committee. You state:

The consensus of this meeting was that we should express appreciation for the service that Field had rendered

and so forth. Do you have minutes of that meeting from which you draw the conclusion that it was the consensus? Was it a formal action, or was it your opinion of the consensus?

Ambassador JESSUP. It was formal action, I believe, sir. I think that I have the report. I will try to find that and make that available. Senator GILLETTE. If there was formal action, I would like to know what it was.

Ambassador JESSUP. Yes, sir.

Senator GILLETTE. And have that made available to us, rather than your own conclusion that it was the consensus of those present that a certain action took place.

All of these matters, I think, are of outstanding importance. They are to the Senator from Iowa.

Ambassador JESSUP. I think, Senator, that the meeting of the executive committee referred to in that second paragraph on page 31 is the one we have identified as the meeting of September 18. A photostatic copy of the minutes of that meeting is on page 24 of Senator McCarthy's brochure, and you will find there, sir, that paragraph 2 begins by saying:

The chairman read a long telegram which he had received from Mr. Frederick V. Field in Chicago on September 1, in which Mr. Field indicated that he had been called to the secretaryship of a new society which was being created to strengthen the forces of democracy during the coming critical years. Dr. Jessup explained that he had subsequently talked at length with Mr. Field, who explained in detail the reasons that had led him to accept the new position. Mr. Parker voiced the feelings of all present when he inquired whether Dr. Jessup felt that Mr. Field could not be persuaded to resume the secretaryship of the American council. Dr. Jessup replied that he thought Mr. Field's decision was final. Under the circumstances it was moved that a minute be drafted indicating the committee's acceptance of the resignation with great regretand it goes on to explain what else the minute should include.

Senator GILLETTE. Dr. Jessup, the date of those minutes from which you have just been reading is September 18, 1940?

Ambassador JESSUP. That is correct, sir.

Senator GILLETTE. The report to the board of trustees to which you allude is June 28 ?

Ambassador JESSUP. That is correct, sir.

Senator GILLETTE. And you also quote from these various men who would like to keep Field in the employ of your organization. The only date you give is July 3 and then the telegram, of course, not being in the record here, is undated, and you do not date in your report the meeting of the committee. Are the minutes of the meeting scheduled September 18, 1940, or is that the meeting to which you referred to on page 31, in which you say the consensus of this meeting was thus and so?

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