Mr. WOOD. We have covered the dependent overseas territories and basic materials development, althought we started out to talk primarily about overseas territories.

Is there anything further other than the insertions in the record, Dr. FitzGerald, that you would like to say about basic materials development?

Mr. FITZGERALD. I don't think so, Mr. Wood, unless there are questions from the committee.

Mr. WOOD. If not, and there are no further questions, we might have Mr. Andrews finish the United Nations technical assistance program request.

Mr. ANDREWS. The appropriations this year requested for 1954, for the multilateral technical assistance agencies, amounts to $13,750,000, of which $12,750,000 represents our contribution to the U. N., and $1 million represents our contribution to the Organization of American States.

This program, the United Nations technical assistance program, follows generally the type of work that TCA itself is doing, under the bilateral technical assistance program. It does not have supporting funds, but maintains principally experts. They are offering about 1,200 experts working with approximately 70 countries or territories and there are something over 1,500 requests for additional experts and assistants in these 70 countries or territories.

I will not take a great deal of time except to say that this represents about 60 percent of the amount of money which other nations are putting up some 66 other nations are contributing to this central pool of which the United States is putting up 60 percent, and this $12,750,000 represents our 60 percent for 1954.

I think in order to telescope this quick and save the committee time, I would like to introduce into the record a page, here, with a table on it, a statement down to paragraph 2 on the back of that page. That tells the story in a general way.

(The table referred to is as follows:)

Sec. V-Multilateral technical cooperation, United States contributions to multilateral programs-Comparative summary of United States obligations by geographic region

UNITED NATIONS EXPANDED PROGRAM OF TECHNICAL ASSISTANCE

For fiscal year 1954, it is proposed that $12,750,000 be authorized to enable the United States to continue its support of the technical-assistance program carried out by the United Nations and its specialized agencies.

The United Nations program is an international effort to enlist technical skills from many nations to help the governments and people of underdeveloped areas develop their economic resources. It was recognized that the experience and technical competence of the international organizations make them an effective instrument for carrying out this objective. In 1950 the United States therefore joined with 54 other governments in making voluntary contributions to a special technical-assistance account for the benefit of underdeveloped areas. Because of the special nature of this program, it was evident that a larger proportion of contributions would have to come from the so-called developed countries than is true in the regular programs. Recognizing the important role the program plays in economic development activities, the United States has supported it by contributing approximately 60 percent of total funds pledged.

For 1950-51, the United States contributed $12,007,500; for 1952, the United States pledged $11.4 million. For calendar year 1953, at 60 percent of total pledges, the United States pledge amounts to $12,767,145. The Mutual Security Act of 1952 authorized $14,708,750 for the United States contribution to the calendar year 1953 U. N. program, but only $8,171,333 were appropriated. Additional funds in the amount of $4,595,812 are being requested to permit full United States support for the calendar year 1953 program of the United Nations at 60 percent of total pledges for the period. For fiscal year 1954, a total authorization of $13,750,000 is requested for multilateral technical cooperation, of which $12,750,000 is for the United States contribution to the United Nations expanded program of technical assistance.

This program has almost 1,200 experts working in approximately 70 countries and territories. Over 1,500 requests for technical assistance have been received; 700 agreements have been signed by participating agencies and recipient governments. Almost 1,200 fellows are receiving professional training. Sixty-seven governemnts have pledged over $21 million in support of the program for calendar year 1953. This represents a substantial increase over the first financial period of the program, when 55 governments contributed approximately $20 million for an 18-month period.

Mr. JAVITS. What was our percentage of contributions last year? Mr. ANDREWs. Sixty percent.

Mr. JAVITS. The same as this year?

Mr. ANDREWS. Yes.

Mr. JAVITS. Is there any effort to cut down this percentage? Mr. ANDREWS. Secretary of State Dulles has looked into it to see if this is the last year that we should undertake the 60-percent figure. There is an attempt made each year to negotiate it and work it out so that we have to pay no more than necessary, but it is the opinion of the Department and of Ambassador Lodge, and I might say I could introduce that into the record if you want to do it at this time, that if we cut it back to 33% percent, the total amount of money involved for technical assistance, multilaterally, will be so small it will virtually mean the abandonment of the program. In other words, the challenge the United States thas had is "We'll put up 60 percent of the money the rest will put up." That has been a thing that challenged the other nations to make greater contributions.

Mr. JAVITS. How is that amount that is put up in the U. N. supplemented by the countries which themselves get the benefit?

Mr. ANDREWS. The countries themselves are supposed to supply the local costs of keeping the technicians in the country. Transportation. housing, office space, secretarial help, and things of that kind. Mr. JAVITS. Is there any estimate in money?

Mr. ANDREWS. There is an estimate in money, but there is no overall joint fund or anything of that kind. The latest estimate is that, while countries have pledged $21,300,000 to the central account for 1953, countries receiving assistance have committed themselves to put up over $38 million in the form of local contributions.

Mr. JAVITS (presiding). Are there any questions?

Mr. ANDREWS. Thank you, sir, and since this is my last appearance, I want to thank the committee for the courtesy and I am awfully sorry we couldn't have done a little better on this whole program. Mr. JAVITS (presiding). We thank you, Mr. Andrews. Mr. Wood. Mr. Chairman, when do we meet tomorrow? Mr. JAVITS (presiding). At 10 o'clock tomorrow morning. (Whereupon, at 4: 30 p. m., the committee adjourned to reconvene at 10 a. m., Friday, June 5, 1953.)

MUTUAL SECURITY ACT EXTENSION

FRIDAY, JUNE 5, 1953

HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,

Washington, D. C.

The committee met in executive session pursuant to call in room G-3, United States Capitol, at 10: 10 a. m., Hon. Robert E. Chiperfield, chairman, presiding.

Chairman CHIPERFIELD. The committee will come to order.
Mr. Wood, how far did you get yesterday?

STATEMENT OF HON. C. TYLER WOOD, DEPUTY TO THE DIRECTOR FOR MUTUAL SECURITY

Mr. Wood. We finished testimony on the dependent overseas territories, basic materials development, and the United Nations Technical Assistance Program. When the committee adjourned last evening, we were in chapter 5 of the bill which deals with the multilateral, most of them, United Nations, programs in which we have been taking part.

I would suggest that we go right through those programs. I think we can do so quite rapidly, perhaps covering a major portion by placing material in the record.

I suggest that we start with the program of the United Nations Korean Reconstruction Agency, and I shall call on Mr. Joseph Henderson and Mr. Otis Mulliken, both of the State Department, to lay this program before the committee.

STATEMENT OF JOSEPH S. HENDERSON, CHIEF, DIVISION OF INTERNATIONAL ADMINISTRATION, BUREAU OF UNITED NATIONS AFFAIRS

Mr. HENDERSON. Mr. Chairman, I am Joseph Henderson, of the Department of State. I have with me Mr. Otis Mulliken, also of the Department of State. Your witness on UNKRA was to have been Mr. Graham Hall, who is the acting United States representative on the Advisory Committee to UNKRA. Mr. Hall has been called to Korea on an urgent basis and has asked me to present his apologies to the committee.

I do have, however, sir, a statement which he prepared for this hearing which I will submit for the record.

1133

33064-5372

STATEMENT OF GRAHAM HALL, SPECIAL ASSISTANT TO THE ASSISTANT SECRETARY FOR UNITED NATIONS AFFAIRS (PRESENTED BY MR. HENDERSON)

United States contribution to the United Nations Korean Reconstruction Agency: Summary statement:

The United States has been providing economic assistance to the Republic of Korea by contributions to the United Nations Korean Reconstruction Agency (UNKRA) which was established in December 1950 by the General Assembly of the United Nations to provide relief and rehabilitation in Korea. During the continuance of hostilities, the United States has also provided through the unified command in excess of $300 million for emergency direct civilian relief in Korea. The unified command has the primary responsibility for emergency civilian relief until a time after a cessation of hostilities; and during such continuance of hostilities UNKRA has been engaged primarily in rehabilitation activities. The agreement between the unified command and UNKRA contemplates that, as soon after a cessation of hostilities as military circumstances permit, responsibility for emergency civilian relief will be transferred to UNKRA. The military aggression against the Republic of Korea has caused vast damage to its economy and great suffering and privation for its people, resulting in the necessity that economic assistance be furnished to enable the Korean people to sustain their military resistance to aggression, and in time, to recover from the ravages of war.

The United Nations authorized an initial $250-million program for UNKRA to be met by voluntary contributions from governments. Of this initial amount, the United States pledged, subject to the approval of the Congress, $162.5 million-65 percent-as its share. The United States, pursuant to appropriations made under the Mutual Security Act in fiscal years 1952 and 1953, has paid $50,750,000 on its pledge.

The proposed legislation authorizes appropriation of $71 million for fiscal year 1954; and, in addition, authorized the United States Department of the Army to make available toward the United States contribution to UNKRA, at the time when UNKRA assumes full responsibility for relief and rehabilitation in Korea, civilian relief supplies in the Army pipeline to Korea of a value not to exceed $40,750,000, which would approximately complete the payment of the United States pledge of $162.5 million.

If military circumstances prevent the contribution to UNKRA during fiscal year 1954 of the approximately $40-million value of civilian relief supplies from the Army pipeline to Korea, UNKRA will not have sufficient funds to complete its program for fiscal year 1954 unless there be a supplemental appropriation for United States contribution to UNKRA of $40 million cash in lieu of the unavailable pipeline supplies.

OBJECTIVES OF UNKRA PROGRAM

The overall purpose of UNKRA's program is to assist the Korean people in their own efforts, first, to produce the basic necessities of life and then to restore a stable economy. The principal objectives of this program are to assist in (1) providing food, shelter, clothing,