They have been persistently ignored and violated by one nation. The Congress is also familiar with the developments concerning the United Nations. Most of the countries of the world have joined together in the United Nations in an attempt to build a world order based on law and not on force. Most of the members support the United Nations earnestly and honestly, and seek to make it stronger and more effective.

One nation, however, has persistently obstructed the work of the United Nations by constant abuse of the veto. That nation has vetoed 21 proposals for action in a little over two years.

But that is not all. Since the close of hostilities, the Soviet Union and its agents have destroyed the independence and democratic character of a whole series of nations in eastern and central Europe. It is this ruthless course of action, and the clear design to extend it to the remaining free nations of Europe, that have brought about the critical situation in Europe today.

The tragic death of the Republic of Czechoslovakia has sent a shock throughout the civilized world. Now pressure is being brought to bear on Finland, to the hazard of the entire Scandinavian peninsula. Greece is under direct military attack from rebels actively supported by her Communist-dominated neighbors. In Italy, a determined and aggressive effort is being made by a Communist minority to take control of that country. The methods vary, but the pattern is all too clear.

Faced with this growing menace, there have been encouraging signs that the free nations of Europe are drawing closer together for their economic well-being and for the common defense of their liberties.

In the economic field, the movement for mutual self-help to restore conditions essential to the preservation of free institutions is well under way. In Paris, the 16 nations which are cooperating in the European recovery program are meeting again to establish a joint organization to work for the economic restoration of western Europe.

The United States has strongly supported the efforts of these nations to repair the devastation of war and restore a sound world economy. In presenting this program to the Congress last December, I emphasized the necessity for speedy action. Every event in Europe since that day has underlined the great urgency for the prompt adoption of this measure.

The Soviet Union and its satellites were invited to cooperate in the European recovery program. They rejected the invitation. More than that, they have declared their violent hostility to the program and are aggressively attempting to wreck it.

They see in it a major obstacle to their designs to subjugate the free community of Europe. They do not want the United States to help Europe. They do not even want the 16 cooperating countries to help themselves.

While economic recovery in Europe is essential, measures for economic rehabilitation alone are not enough. The free nations of Europe realize that economic recovery, if it is to succeed, must be afforded some measure of protection against internal and external aggression. The movement toward economic cooperation has been followed by a movement toward common self-protection in the face. of the growing menace to their freedom.

At the very moment I am addressing you, five nations of the European community, in Brussels, are signing a 50-year agreement for economic cooperation and common defense against aggression.

This action has great significance, for this agreement was not imposed by the decree of a more powerful neighbor. It was the free choice of independent governments representing the will of their people, and acting within the terms of the Charter of the United Nation

Its significance goes far beyond the actual terms of the agreement itself. It is a notable step in the direction of unity in Europe for the protection and preservation of its civilization. This development deserves our full support. I am confident that the United States will, by appropriate means, extend to the free nations the support which the situation requires. I am sure that the determination of the free countries of Europe to protect themselves will be matched by an equal determination on our part to help them to do so.

The recent developments in Europe present this nation with fundamental issues of vital importance.

I believe that we have reached a point at which the position of the United States should be made unmistakably clear.

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We in the United States remain determined to seek, by every possible means, a just and honorable basis for the settlement of international issues. We shall continue to give our strong allegiance to the United Nations as the principal means for international security based on law, not on force. We shall remain ready and anxious to join with all nations-I repeat, with all nations-in every possible effort to reach international understanding and agreement.

The door has never been closed, nor will it ever be closed, to the Soviet Union or any other nation which will genuinely cooperate in preserving the peace.

At the same time, we must not be confused about the central issue which confronts the world today.

The time has come when the free men and women of the world must face the threat to their liberty squarely and courageously.

[After unprecedented preliminary study and preparation, the Foreign Assistance Act of 1948 was passed by the Congress and signed by the President on April 3, 1948. Section 102 (a) of the act, which sets forth the basic policy underlying United States foreign assistance especially as it applies to the European recovery program, is quoted below.]

FINDINGS AND DECLARATION OF POLICY

SEC. 102. (a) Recognizing the intimate economic and other relationships between the United States and the nations of Europe, and recognizing that disruption following in the wake of war is not con

tained by national frontiers, the Congress finds that the existing situation in Europe endangers the establishment of a lasting peace, the general welfare and national interest of the United States, and the attainment of the objectives of the United Nations. The restoration or maintenance in European countries of principles of individual liberty, free institutions, and genuine independence rests largely upon the establishment of sound economic conditions, stable international economic relationships, and the achievement by the countries of Europe of a healthy economy independent of extraordinary outside assistance. The accomplishment of these objectives calls for a plan of European recovery, open to all such nations which cooperate in such plan, based upon a strong production effort, the expansion of foreign trade, the creation and maintenance of internal financial stability, and the development of economic cooperation, including all possible steps to establish and maintain equitable rates of exchange and to bring about the progressive elimination of trade barriers. Mindful of the advantages which the United States has enjoyed through the existence of a large domestic market with no internal trade barriers, and believing that similar advantages can accrue to the countries of Europe, it is declared to be the policy of the people of the United States to encourage these countries through a joint organization to exert sustained common efforts as set forth in the report of the Committee of European Economic Cooperation signed at Paris on September 22, 1947, which will speedily achieve that economic cooperation in Europe which is essential for lasting peace and prosperity. It is further declared to be the policy of the people of the United States to sustain and strengthen principles of individual liberty, free institutions, and genuine independence in Europe through assistance to those countries of Europe which participate in a joint recovery program based upon self-help and mutual cooperation: Provided, That no assistance to the participating counties herein contemplated shall seriously impair the economic stability of the United States. It is further declared to be the policy of the United States that continuity of assistance provided by the United States should, at all times, be dependent upon continuity of cooperation among countries participating in the program.

17. THE CONVENTION FOR EUROPEAN ECONOMIC

COOPERATION (WITH RELATED DOCUMENTS)

[On September 22, 1947, the representatives of 16 European countries adopted the report of the Committee of European Economic Cooperation, and began preparations for the setting up of an organization for European economic recovery along the lines recommended by the committee. On April 16, 1948, the convention for European economic cooperation, which implemented the committee recommendations, was signed in Paris. That convention and certain related documents are reproduced below.]

FINAL ACT OF THE SECOND SESSION OF THE COMMITTEE OF EUROPEAN ECONOMIC CO-OPERATION

With a view to determining the manner of the European economic co-operation contemplated in the General Report adopted on the 22nd September, 1947, by the Committee of European Economic Co-operation, and, in particular, in order to set up the Organization contemplated by paragraph 113 of the said Report, the Governments of Austria, Belgium, Denmark, France, Greece, Ireland, Iceland, Italy, Luxembourg, Norway, the Netherlands, Portugal, the United Kingdom, Sweden, Switzerland and Turkey, having invited the Commanders-in-Chief of the French, United Kingdom and United States Zones of Occupation of Germany to participate in the work;

Initiated in Paris on the 15th March, 1948, through their representatives, the preparations necessary for this purpose.

These preparations terminated on the 16th April, 1948, and have resulted in the framing of the following instruments:

(1) Convention for European Economic Co-operation;

(2) Supplementary Protocol N° I on the Legal Capacity Privileges and Immunities of the Organisation for European Economic Cooperation;

(3) Supplementary Protocol N° II on the Financial Regulations of the Organisation.

The following Resolutions were also adopted:

(1) Resolution on the Functions of the Organisation;

(2) Resolution on Relations between the Organisation and the United States Special Representative in Europe;

(3) Resolution on the Rules of Procedure of the Organisation; (4) Resolution on the Financing of the Initial Budget of the Organisation;

(5) Resolution on the Interim Financing of the Organisation; (6) Resolution on the Staff Regulations of the Organisation; (7) Resolution on the location of the first Meeting of the Council of the Organisation.

All the above mentioned Governments and Authorities will have the right to participate at once in the initial work of the Organisation on the provisional putting into operation of the Convention as provided for in Article 24 (b).

The signatories of the present Final Act who become signatories of the Convention will be deemed to be original Members of the Organisation as from the date of the deposit of their instruments of ratification.

In faith whereof the Representatives of the above mentioned Governments and Authorities have signed the present Final Act.

Done in Paris this sixteenth day of April, Nineteen Hundred and Forty Eight, in the English and French languages, both texts being equally authentic, in a single copy which shall remain deposited in the Archives of the Government of the French Republic, by which certified copies will be communicated to all the other signatories.

CONVENTION FOR EUROPEAN ECONOMIC CO-OPERATION

The Governments of Austria, Belgium, Denmark, France, Greece, Ireland, Iceland, Italy, Luxembourg, Norway, the Netherlands, Portugal, the United Kingdom, Sweden, Switzerland and Turkey, and the Commanders-in-Chief of the French, United Kingdom and United States Zones of Occupation of Germany:

CONSIDERING that a strong and prosperous European economy is essential for the attainment of the purpose of the United Nations, the preservation of individual liberty and the increase of general well-being, and that it will contribute to the maintenance of peace;

RECOGNISING that their economic systems are inter-related and that the prosperity of each of them depends on the prosperity of all;

BELIEVING that only by close and lasting co-operation between the Contracting Parties can the prosperity of Europe be restored and maintained, and the ravages of war made good;

RESOLVED to implement the principles and to achieve the aims set forth in the General Report of the Committee of European Economic Co-operation, particularly the speedy establishment of sound economic conditions enabling the Contracting Parties as soon as possible to achieve and maintain a satisfactory level of economic activity without extraordinary outside assistance, and to make their full contribution to world economic stability;

DETERMINED to combine their economic strength to these ends, to join together to make the fullest collective use of their individual capacities and potentialities, to increase their production, develop and modernise their industrial and agricultural equipment, expand their commerce, reduce progressively barriers to trade among themselves, promote full employment and restore or maintain the stability of their economies and general confidence in their national currencies;

TAKING NOTE of the generous resolve of the American people expressed in the action taken to furnish the assistance without which the aims set forth above cannot be fully achieved;

RESOLVED to create the conditions and establish the institutions necessary for the success of European economic co-operation and for the effective use of American aid, and to conclude a Convention to this end;

HAVE ACCORDINGLY APPOINTED the undersigned Plenipotentiaries who, having presented their full powers, found in good and due form, have agreed on the following provisions:

ARTICLE 1

The Contracting Parties agree to work in close co-operation in their economic relations with one another.

As their immediate task, they will undertake the elaboration and execution of a joint recovery programme. The object of this programme will be to achieve as soon as possible and maintain a satisfactory level of economic activity without extraordinary outside assistance, and to this end the programme will take special account of the