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APPENDIX 1

December 12, 19391

Division for the Study of Problems of Peace

and Reconstruction

The functions of the Division should be as follows:

1. To assemble information, ideas, and views, bearing on the problems of peace and reconstruction through

a. Special reports from our missions abroad;

b. Contacts with other Departments and agencies of the Government;

c. Informal contacts with appropriate unofficial groups in this country; with similar groups abroad; and with such international agencies as the League of Nations, the International Labor Office, the Bank for International Settlements, the International Chamber of Commerce, etc.;

d. Contacts with informed individuals;

e. Study of published and other available materials.

2. To build up systematic files of data and ideas on the following groups of topics, in their relation to the problems of peace and reconstruction:

a. Commercial policy and relations;

b. Monetary problems;

c. Problems of investment and credit;

A.

d. Other problems of economic relations.

B.

a. Territorial claims and problems of territorial adjustment;

b. Population and migration problems;

c. Possibilities of political arrangements for the maintenance of peace;

d. Problems of machinery for revision of treaties and peaceful settlement of disputes.

C.

a. Problems of limitation and reduction of armaments;

b. Problems of belligerent and neutral rights and obligations;

c. Problems of the humanitarian aspects of warfare.

D.

a. Methods of limitation of national sovereignty;

b. Problems of general machinery of international cooperation; c. Other relevant problems.

1 Attachment to memorandum of proposal discussed Dec. 27, 1939.

3. To study and analyze the materials assembled, and, if necessary, to engage in appropriate research activities;

4. To prepare for the use of the Intradepartmental Committee factual and/or analytical memoranda on various topics and on proposals and suggestions coming from various sources; and to record the Committee's proceedings.

It is not anticipated that the Division would engage in extensive research activities, at least for some time to come. At the outset, its work should be directed toward assembling and studying materials which are available; preparing appropriate instructions to the Missions; and attempting to influence the research activities of unofficial organizations in the direction of studying such problems or aspects of problems as would be of value to the work of the Division. Later on, if important lacks should appear in the materials gathered and systematically analyzed by the staff of the Division and if there should appear to be no promising chance of supplying the needs through outside agencies, the Division might have to develop its own research activities. For the present, therefore, the Division would not require more than a small staff, which could easily be recruited in the main by detail from the Foreign Service and from some of the existing Divisions in the Department.

APPENDIX 2 January 3, 1940

Subcommittee on Economic Problems of the Intradepartmental Committee on Peace and Reconstruction: Program of Work

I. OBJECTIVES

The objectives of the Subcommittee's work should be to assemble information and ideas, on the basis of which our Government will be able to

1. Prepare for possible participation in a Conference;

2. Prepare for participation in reconstruction efforts during the post-Conference period;

3. Attempt to influence the policies and actions of other governments prior to the Conference.

II. CURRENT PROBLEMS

The Subcommittee should proceed on the obvious basic assumption that whatever economic order may result from a Conference and the reconstruction efforts of the post-Conference period must grow, in large measure, out of the conditions which will develop during the pre-Conference period. Hence the importance of objective No. 3 above. As part of the basis for pursuing this objective, the Subcommittee should give its attention to five principal fields, as follows:

1. Commercial policy and relations.

2. Monetary policy and relations.
3. Credit and investment relations.
4. Production trends.

5. Price trends.

In connection with each of these fields, the following data are needed for as many countries as might seem to be desirable, such data to be currently kept up to date:

1. Statistical position.

2. Government action.

3. Influencing factors other than government action.

4. Relation of current developments abroad to basic ideas advocated by the Government of the United States.

5. Relation of current developments abroad to the interests of the United States.

6. Action taken or in contemplation by the Government of the United States with respect to particular developments.

A part of the Subcommittee's task should be to advise whether or not any particular action on the part of our Government mentioned above should be utilized as an opportunity to call the attention of other governments to basic ideas advocated by us. Similarly, the Subcommittee should advise whether or not such representations should be made in connection with any development abroad with respect to which no action on the part of our government is taken or is in contemplation.

The Subcommittee should also build up a factual and analytical file, currently kept up to date, on policy and actions of the Government of the United States in the five fields indicated above.

III. BROAD PROBLEMS

In addition to data and ideas with reference to the subjects indicated above, the Subcommittee should secure the necessary data and prepare analytical reports on the following broad topics:

1. Character of a desirable economic world order.

2. How much of such a world order appears to be practicable on the basis of certain assumptions.

3. How much can be achieved through the peace conference.

4. What should be the direction and machinery of post-conference effort.

5. What policies would be necessary for the United States as a contribution to the establishment of such a world order.

6. On the assumption that the United States would be willing to pursue such policies, what contribution would have to be made by the other countries. 7. Relation of an economic program to political relations, disarmament, and other factors.

IV. BASIC ANALYSES

As background material for its work in connection with Parts II and III of this outline, the Subcommittee should prepare or secure basic analyses on the following topics, and possibly others:

1. Economic provisions of the treaties of peace.

2. Economic policies pursued by the principal countries, 1919-1939.

3. Various types of government action in the economic field, especially during the last decade.

4. International economic efforts, 1919-39.

V. PROPOSALS AND PLANS

Finally, the Subcommittee should study and analyze proposals and plans put forward in various quarters.

843388-49- -30

APPENDIX 3 January 15, 1940

Subcommittee on Economic Problems of the
Advisory Committee on Problems of
Foreign Relations

OUTLINE OF A MEMORANDUM ON THE BASES OF AN ECONOMIC SETTLEMENT

The Memorandum to be prepared along the lines of the following outline would be intended to serve as a program of action, which might be submitted as a basis of discussion to a Conference of Neutrals and/or to a more general Economic Conference. The topics covered in Part A should be embodied in a General Declaration to be adopted by the Conference. The topics covered in Part B should find expression in Resolutions and Conventions.

Part A: General Questions

I. The Desired Objectives

II. The Interdependence of Economic and Political Factors

III. The Interlocking of Commercial, Financial, Monetary, and other Economic Policies

IV. Types of Action

Part B: Technical Questions

I. Commercial Policy

1. Desirable Machinery of Trade Relations 2. Tariff Matters

3. Governmental Quantitative Controls

4. Most-favored-nation treatment

5. Regional Arrangements

6. Subsidies, Dumping, and other Forms of Unfair Competition 7. Indirect Protectionism

II. Problem of Raw Materials

1. Is there a Specific Raw Materials Problem?

2. Governmental Commodity Controls

3. Producers' Agreements

4. Machinery of Possible Action in the Light of Past Experience

III. Credit and Investment Policy

1. Probable Credit and Investment Needs of the Post-War World

2. Problems of Commercial Credit

3. Problems of Long-term Credit

4. Problems of Existing Indebtedness

5. Problems of Machinery of Credit and Investment

IV. Monetary Policy

1. Type of Monetary Arrangements Necessary for the Promotion of Trade, Credit, and Investment Relations

2. Problems involved in the Establishment and Maintenance of Such

Arrangements

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