part channeled directly to these offices and divisions, and only the usual administrative matters pertaining to this Division came under the supervision of Mr. Wilson and Mr. Pasvolsky. All matters of postwar concern, other than those in the field of international organization and the few further exceptions to be noted below, were merged in the appropriate standing offices of the Department. There were twelve such offices, nine having responsibilities primarily for foreign policy and relations. The determination of policy recommendations on the postwar matters so allocated became essentially inseparable from the formulation of policy and coordination of action on the current matters with which each office was charged. In some cases, the divisions of these offices were specifically directed to make studies or conduct work of postwar significance in collaboration with one or another of the divisions still engaged in completing the preparation for the international security organization. Among such instances, for example, were the directives for cooperation between the Division of American Republics Analysis and Liaison and the Division of International Organization Affairs with respect to inter-American organizations, meetings, and agreements. The collaboration provided for between the Division of International Labor, Social and Health Affairs and the Division of International Organization Affairs in formulating recommendations and in maintaining liaison on labor, social, and health matters relating to the operations of specialized international agencies in these fields was a further illustration. Such directives, however, involved essentially only additions to the normal type of anticipatory work that attends operations. In general terms, it may be said that in the reorganization of December 20, 1944, only transitional and temporary provisions were made for the further preparation on postwar problems needed on a special basis. The provisions made at this time for the working of the policy offices and divisions of the Department reflected in various ways, however, the permanent absorption in the Department of the methods developed in the extraordinary preparation. This development is suggested by the following random quotation of phrases or words from the Departmental Order concerned: "emerging problems," "background and policy studies," "basic country and area policies," "long-range economic development projects," "preparation for international discussions," "informal working relationships," "the work of interdivisional and interdepartmental committees," "trends," "analysis of basic data," "research staff," "study," "special studies.” It was within the foregoing structure, extended by the interdepartmental committees that continued to function in connection with it, that the terminal work of preparation was undertaken, described below by main fields. IT CHAPTER XVII Remaining Economic and Social T HAS ALREADY been observed that, by autumn of 1944, no separate staffs and no extraordinary committee arrangements for postwar preparation in the economic and social field continued to exist in the Department. The remaining preparation on the many problems in this wide field was being carried forward through the ordinary operating structure of the Department and, interdepartmentally, through the Executive Committee on Economic Foreign Policy and its special and other committees, which continue, with some changes, to function to the present day. During the period of the autumn of 1944 through the spring of 1945, definitive international agreement was reached on only one problem in this field-civil aviation. Negotiations were initiated or continuing, however, on several other problems, and great emphasis was being laid on certain fundamental economic policies, many of which had been developed in the course of the earlier preparation and attendant informal international discussions. The development of detailed plans and proposals on the basis of these broad policies and the furthering of the negotiations in progress were a major concern of the operating functional offices and divisions of the Department during this period. These activities were, in large degree, to come to fruition only after the war and over an extended period of months-in some cases, years. The Executive Committee on Economic Foreign Policy was the main organ before which current and postwar problems continued to come for the interdepartmental consideration necessary on practically all matters in this field. For the most part, no change in the structure of this Committee was made during the period here considered, but one new subcommittee of direct interest-that on Specialized International Economic Organizations—was established November 17, 1944. This subcommittee had the following terms of reference: 'The Interdepartmental Committee on Social Policy which has since functioned in a part of the field covered in 1945 by the Executive Committee was not established until the end of that year, its first meeting being in January 1946. 1. To formulate, within the framework of the proposals of the Dumbarton Oaks Conference, recommendations regarding: A. The organization of such agency or agencies as may be required to carry out the economic programs, as approved by the Executive Committee, of the Committees on Private Monopolies and Cartels, Commodity Agreements, and Trade Barriers. B. The relationship which should be established between such agency or agencies and the Economic and Social Council proposed by the Dumbarton Oaks Conference. C. Such relations, if any, as should be maintained between such agency or agencies and the International Monetary Fund, the International Bank for Reconstruction and Development, the Food and Agriculture Organization, the International Labor Organization, and possible international organizations in other economic and social fields, such as aviation, shipping, communications, health, and narcotic trade. D. Such elaboration of the proposals of the Dumbarton Oaks Conference as may be deemed desirable to facilitate any recommendations made under the above terms of reference. 2. To work closely with the Committees on Private Monopolies and Cartels, International Commodity Problems, and Trade Barriers in carrying out the above assignment. The members of this subcommittee were Department of State: Charles P. Taft (chairman), Walter Kotschnig (vice chairman), Leroy D. Stinebower and John M. Leddy (secretary); Department of the Treasury: Harold Glasser, Raymond F. Mikesell (alternate); Department of Agriculture: Robert B. Schwenger; Department of Commerce: Frank A. Waring; Department of Labor: Carter Goodrich, A. F. Hinrichs (alternate); United States Tariff Commission: Lynn R. Edminster; Foreign Economic Administration: Miss Ethel Dietrich; Bureau of the Budget: Arthur Smithies (observer); War Production Board: William L. Batt (observer). Within the Department, it will be recalled, the work on postwar economic problems was centered chiefly in two offices: the Office of Transportation and Communications, which had no Director and reported directly to Assistant Secretary Clayton; and the Office of Economic Affairs, under Bernard F. Haley after the appointment of Harry C. Hawkins in September 1944 as Economic Counselor at the London Embassy. On January 26, 1945, however, the Office of Economic Affairs, and also that of Wartime Economic Affairs, was abolished. In their places were established the Office of Commercial Policy, with Mr. Haley as Director, and the Office of Financial and Development Policy, with Emilio G. Collado as Director.2 These new offices, together with the Office of Transportation and Communications, and their divisions had primary responsibility in the Department for developments concerning the specialized international or ganizations for economic and social cooperation. Some of their work was conducted through the new Subcommittee on Specialized International Economic Organizations. No new or modified arrangements were evolved for the consideration of cultural problems, the Division of Cultural Cooperation (previously Science, Education, and Art) continuing to have the principal responsibility for preparing for a specialized international organization in the educational, scientific, and cultural field. The work in all these fields was conducted in collaboration with the Division of International Organization Affairs insofar as organizational questions were involved. Recommendations were transmitted to the appropriate ranking officials of the Department or to the Staff or Coordination Committees, their reference depending on the character and importance of a problem, on whether it called for policy decision or implementation of determined policy, and on the timing of action involved. Viewed from the standpoint of economic and social foreign policy, the winter of 1944-45 and the following spring were periods of pronounced activity. The conduct of the preparation leading to decisions now reflected in this activity has been described in earlier pages. The passage of many of the economic policy problems beyond the scope of this volume was denoted during this period by the requests of the Executive branch for legislative authorization, as in the case of the United Nations Food and Agriculture Organization and the Bretton Woods Agreement for an International Bank and Monetary Fund, and for Senate consent to ratification, as in the case of the Convention on International Civil Aviation. The period was marked by official declarations of policy or by reaffirmations of policy already enunciated. As has been said, basic policy and even specific proposals in the economic and social field were more advanced at the outset of the preparation than in the political, territorial, and security fields. The views subsequently developed were therefore marked by a high degree of continuity with the prewar policy of the United States. Expansion of world trade, for example, had been a basic tenet of United States foreign policy in the thirties. The renewal for the fourth time of the Trade Agreements Act (first passed in 1934) on July 5, 1945, and the emphasis placed during the last winter and spring of the war by the President and by high officials of the State Department on international agreement for the reduction of trade barriers, the regulation of 3 United States membership in the FAO and in the International Bank and Monetary Fund was authorized July 31, 1945. The FAO came into being Oct. 16, 1945, and the International Bank and Monetary Fund, Dec. 27, 1945. Department of State Bulletin, XIII, 252, 619-20, 1058-59. 4 Ibid., p. 437. international cartel practices, and the adoption of a code of principles to govern commodity arrangements all stemmed from this same basic tenet. The preparation in the economic and social fields had resulted not so much in development of wholly new policy as it had in elaboration and modification of existing policies and in extension of their scope to meet anticipated postwar conditions. Special effort had been made toward the development of world-wide specialized international organizations, in order to obtain multilateral cooperation in the major fields of economic and social advancement. Policy regarding regional economic, social, and cultural arrangements in this Hemisphere had also been refined and expanded. While, in general, implementation of agreed policy rather than completion of preparation characterized the closing months of the war in the economic and social field, the latter process was to some extent still in progress in this period. A summary of the main lines of activity relevant to the preparation, and which therefore does not attempt to sketch the full picture of the Department's economic activity from the autumn of 1944 through the spring of 1945, is presented below. THE CIVIL AVIATION CONFERENCE THE BILATERAL discussions of civil-aviation policy with the United Kingdom, the Soviet Union, China, Canada, India, New Zealand, Belgium, the Netherlands, and other countries, which had been initiated by the United States in April 1944,5 made possible the convening of an international aviation conference in Chicago on November 1, 1944. This conference, in which fifty-two nations participated and which the Danish and the Thai Ministers in Washington attended in a personal capacity, differed from the preceding wartime conferences in that such neutral states as Sweden, Switzerland, Turkey, Spain, and Portugal were represented. It also differed from previous conferences in that the Soviet Union at the last moment withdrew its delegation on the reported grounds that countries that had "conducted a pro-fascist policy hostile to the Soviet Union" were to be represented. The Chairman of the United States Delegation, and the President of the Conference, was Assistant Secretary Berle. The remaining members of the United States Delegation were Senators Josiah W. Bailey, Democrat of North Carolina, and Owen Brewster, Republican of Maine; Representatives Alfred L. Bulwinkle, Democrat of North Carolina, and Charles A. Wolverton, Republican of New Jersey; As 5 See p. 243. 18 New York Times, Oct. 30, 1944. |