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92
4
5
2
�Harry S. Truman, ig^6
to
Europe go cold
ne of the founthe hope for
We must help
ind we will."
:he last sentence
>t that you give
problem which
m demands,
be done to proj , inland transid ocean trans1 the wheat and
1
I. We must reantity of wheat
Also, all other
rease wheat for
ne possibility of
alio in milling
:o coordinate all
in this country
ttain maximum
1 as coal to libler has directed
ment Coordinaty understanding
>resented on this
d him to keep
rogress being
iy major diffidjusted by his
S. TRUMAN
Jan. 30 [25]
24 Statement by the President Announcing Agreement To Arbitrate
the Railway Labor Dispute. January 26, 1946
I H A V E just received a telegram from the
National Mediation Board, reporting on the
conclusion of mediation proceedings in Chicago. A wage dispute between all the 134
principal railroads of the nation and the
railroad labor unions had been in process
of mediation for the past three weeks.
The telegram informs me that an agreement to submit the dispute to voluntary
arbitration in accordance with the Railway
Labor Act has just been concluded between
the railroads and eighteen of the twenty
railroad labor unions. About 1,300,000 employees are covered by the agreement. As
the Mediation Board pointed out, "this is
another demonstration that collective bargaining is still functioning in this industry
that has operated under the Railway Labor
Act for the past twenty years."
I am highly gratified at this report from
the National Mediation Board and congratulate the Board and the parties concerned on their fine accomplishment.
25 Special Message to the Congress Transmitting Financial
Agreement With the United Kingdom. January 30, 1946
To the Congress of the United States:
The establishment of a permanent state
of peace and prosperity is not a simple matter. The creation and maintenance of conditions under which nations can be prosperous
and remain peaceful involves a series of
highly complex and difficult problems. If
wc are to reach this greatly desired goal,
we must be prepared at all times to face the
issues that will constantly present themselves and we must be determined to solve
them. If peace is to be permanent, we must
never relax our efforts to make it so.
In his message to the Congress recommending the approval of the Bretton Woods
Agreements, President Roosevelt called
these proposals "the cornerstone for international economic cooperation." By enacting the Bretton Woods Agreements Act, the
79th Congress laid this cornerstone for the
construction of an orderly economic peace.
The Congress took many other steps during
the same session which enlarged the struc-
ture, and its achievements in this field are
just cause for pride. Among the most important of these other steps were the ratification and implementation of the treaty
establishing the United Nations Organization, the enactment of legislation to support
the United Nations Food and Agriculture
Organization and to carry on the operations
of the United Nations Relief and Rehabilitation Administration, the extension in a
broader form of the Reciprocal Trade Agreements Act, and the expansion of the Export-Import Bank. These steps will take
us a long way on the road to world-wide
security and prosperity. They should not
make us blind, however, to the job that
has not been done—to the work that lies
ahead.
In approving the establishment of the International Monetary Fund and the International Bank for Reconstruction and
Development, the Congress specifically expressed its belief that additional measures
97
�[25]
Jan. 30
Public Papers oj the Presidents
for international economic cooperation
would be necessary to render most effective
the operations of the Fund and Bank. In
the Bretton Woods Agreements Act the
Congress declared it to be the policy of the
United States to seek to bring about further
international agreement and cooperation
along these lines.
The International Monetary Fund Agreement was drafted and the Bretton Woods
Agreements Act was enacted during the
war. Both recognized that the financial
condition of somc countries resulting from
the war might make it impossible for them
to apply at once the fundamental rule of
non-discrimination in their monetary and
financial transactions. Therefore, provision
was made for a transition period which
might postpone as long as five years the
complete application of this fundamental
rule.
Now in time of peace as we rapidly proceed with the organization of the International Monetary Fund we find that the fears
which were responsible for this period of
grace are verified by the facts. The most
important of these facts is that the United
Kingdom as a result of the war must continue for a long period many of its emergency wartime financial controls unless it
obtains additional working capital. It is
apparent that, in the case of a principal
member of the International Monetary
Fund, we can ill afford to wait for the period permitted by the Bretton Woods Agreements for the removal of these hindrances
to the financial and commercial relationships
between nations. Now is the time to establish postwar monetary and financial policies
of the United Nations. Now is the time to
take action to enable the United Kingdom
to move with us toward the prompt abolition of these restrictions.
98
For these reasons, the next order of international business before the Congress should
be our financial relations with the United
Kingdom. The problems involved, which
are severe but not insoluble, arc direct consequences of the war. They are matters of
great urgency and I believe that the Financial Agreement which I am transmitting
herewith furnishes a real basis for their
solution. It is my earnest hope that the
Congress will implement the Financial
Agreement as speedily as is consistent with
careful legislative consideration.
It is not too much to say that the Agreement now transmitted will set the course of
American and British economic relations for
many years to come. In so doing it will
have a decisive influence on the international
trade of the whole world. Those who represented the United States in these discussions and those who represented the United
Kingdom were fully aware of the fundamental nature of the problems before them.
After long and careful consideration they
agreed upon the arrangements which in my
opinion will provide a solid foundation for
the successful conduct of our economic relations with each other and with the world.
The Financial Agreement will by its terms
come into operation only after the Congress
has made available the funds necessary to
extend to the United Kingdom the line of
credit of $3.75 billion in accordance with the
terms set forth in the Agreement. Britain
needs this credit and she needs it now. It
will assist her to meet the expected deficit
in her balance of payments during the next
six years. It will enable her to buy from
the world the supplies of food and raw materials which arc essential to the life and work
of the British people. At the same time it
will keep open a market for those surpluses
of the United States which are customarily
�Harry S. Truman, 1946
ler of intcrjress should
the United
ived, which
direct con: matters of
the Finanransmitttng
s for their
pe that the
: Financial
sistent with
: the Agreehe course of
relations for
oing it will
nternational
se who rephese discus! the United
the funda>efore them.
:ration they
vhich in my
indation for
Dnomic rela1 the world,
by its terms
he Congress
necessary to
the line of
: with the
. Britain
now. It
ed deficit
; the next
buy from
id raw matefe and work
;ame time it
)se surpluses
customarily
exported to the United Kingdom. These
are the important short-term purposes of
the credit.
But the Financial Agreement is much
more than a credit. Let me repeat, its most
important purpose from our point of view
is to cause the removal of emergency controls exercised by the United Kingdom over
its international transactions far more speedily than is required by the Bretton Woods
Agreements. The Financial Agreement will
enable the United Kingdom, through the
prompt relaxation of exchange restrictions
and discriminations, to move side by side
with the United States toward the common
goal of expanded world trade which means
expanded production, consumption and employment and rising standards of living
everywhere.
The line of credit which will be extended
to the United Kingdom under the Agreement may be drawn upon until the end of
1951. At that time the United Kingdom
will be obligated to begin repayment of the
principal with interest and those payments
will continue over a period of 50 years.
These terms are neither unusual nor difficult
to understand. There is one new concept,
however, embodied in the terms of the
credit. We have recognized that conditions
may exist temporarily during such a long
period of time which would make the payment of interest on such a large amount difficult if not impossible. Accordingly, provision has been made for the waiver of
interest by the United States Government
after a certification by the International
Monetary Fund as to the facts regarding the
balance of payments position of the United
Kingdom. It is not to our advantage to
press for payment of interest when payment
is impossible and thus force default and
a crumbling of international economic
relations.
Jan. 30 [25]
The financial assistance which the United
Kingdom would receive under the Agreement has made it possible for the two governments to agree on a specific course of
action which in a short period of time will
result in the removal of emergency controls
over foreign exchange and discriminatory
import restrictions and the reestablishment
of peacetime practices designed to promote
the recovery of world trade. Britain has
agreed to abolish the so-called "sterling area
dollar pool." She has agreed to give up
most of her rights during the transition
period provided for in the International
Monetary Fund Agreement and thus to
abandon controls over foreign exchange
which she would otherwise be permitted by
the terms of that Agreement to continue for
a considerable period of time. In addition
to the direct benefits which will flow from
this stimulus to Anglo-American trade there
will be the added benefits derived from the
ability of other nations to relax their restrictions once the United Kingdom has led the
way.
Another troublesome financial problem
which has been fully and frankly discussed
by the two nations is that of the sterling
liabilities of Great Britain which have resulted from her large expenditures abroad
during the war. In the Financial Agreement the British Government has undertaken to adjust and setde these obligations
out of resources other than the American
credit and has outlined its intentions with
respect to their setdement. Our concern in
this connection is two-fold. In the first
place we want other countries which are in
a position to do so to grant assistance to the
United Kingdom within their means.
Those which hold large sterling balances
can do so by scaling them down. In the
second place we want to be certain that the
liquidation of these balances will not dis-
99
�[25]
Jan. 30
Public Papers of the Presidents
criminate against American trade. The
Financial Agreement contains a specific
undertaking by the Government of the
United Kingdom that no such discrimination shall result from these settlements.
The Financial Agreement also makes it
possible for the United Kingdom to give
wholehearted support to the Proposals for
Expansion of World Trade and Employment
which the United States has recently put
forward as a basis for international discussions by the United Nations. In the Joint
Statement on Commercial Policy published
at the same time as the Financial Agreement,
the United Kingdom has undertaken to
support these Proposals and to use its best
endeavors in cooperation with the United
States to bring to a successful conclusion
international discussions based upon them.
The implementation of the Financial
Agreement will be a great contribution to
the establishment of a permanent state of
peace and prosperity. We are all aware of
the dangers inherent in unchecked economic
rivalry and economic warfare. These dangers can be eliminated by the firm resolution
of this nation and the United Kingdom to
carry forward the work which has been so
well begun.
The Financial Agreement transmitted
herewith means that instead of economic
controversy between the two countries, the
wise rules of the Bretton Woods Agreements
will be fully effective much sooner than wc
believed possible when the Congress enacted
the Bretton Woods Agreements Act. I urge
that Congress act on the Financial Agreement promptly.
HARRY S. TRUMAN
NOTE: The text oi the Financial Agreement is published in the Department of State Bulletin (vol. 13,
p. 907), and in the U.S. Statutes at Large (60 Stat.
1841).
For the President's statement upon signing bill
implementing the Agreement, see Item 169.
26 Radio Remarks on Behalf of the March of Dimes Campaign.
January 30, 1946
[ Broadcast from the White House at 11:55 p.m. ]
Fellow Americans:
Tonight would have been the 64th birthday of Franklin Delano Roosevelt. In a life
dedicated to his fellow man, the fight against
infantile paralysis was only one which he
waged for the welfare of humanity.
Someday there will be written the full
story of what Franklin Roosevelt gave to
others. Someday there will be a deeper,
fuller appreciation of his infinite sympathy
for the man who had less—less strength—
less chance—less health.
The National Foundation for Infantile
Paralysis, which he founded in 1938, is a
living monument to his interest in mankind.
100
It is a symbol of his sacrifice and courage.
It has become a living tradition.
The fight to conquer infantile paralysis
is an unfinished task of Franklin Delano
Roosevelt. It must, and shall be carried to
complete victory.
I am happy to be able to lend my support
to this cause, and I am glad to do it also
because of my conviction that the health of
the people is the direct concern of the
Government.
Our country is not merely the sum of its
parts. It is not the total of its resources,
the aggregate of its wealth. Our country is
much more than the complement of all our
�Harry S. Truman, 1945
reciation of
mander-inir Allies to
ins made a
ffort.
vN
toward Bruce
ice Medal
15
and disice of duties
Director of
:ical periods
: staff of the
exceptional
eloping and
dstory. His
the Supply
:thods. His
cridcal mamoving obnprovement
ranee and
lity to the
redit upon
DUS
iarry Hopkins
Sept. 6 [128]
127 The President's News Conference of
September 5, 1945
I just called you in to give you an announcement on the
Roosevelt Memorial Association meeting over in the White House. It
was well attended, and the various proposals for memorials were discussed, and it was finally agreed to appoint a committee to nominate
officers for the Roosevelt Memorial Association into an enlarged executive committee and to study plans and call another meeting to report
back to the Executive Committee again. And the committee appointed—I was authorized to appoint the committee—was Mr. Hopkins, chairman; Miss Perkins, Mr. Morgenthau, Mr. Walker, and
Admiral Leahy. And that was the substance of the meeting. Now, I
am going to have a press conference tomorrow, and I will let you ask
me all the questions you want then.
Reporter: Mr. President, it is going to be very pleasant to have you
at the Byron Price dinner tomorrow nighr at the Press Club.
THE PRESIDENT. Isn't that Saturday ?
Reporter: No, tomorrow, Thursday.
THE PRESIDENT. I'll be there; but you must be careful of me.
[Laughter]
THE PRESIDENT.
;
NOTE: President Truman's twenty-third the White House at 4 p.m. on Wednesnews conference was held in his office at day, September 5, 1945.
128
Special Message to the Congress Presenting a 21-Point
Program for the Reconversion Period.
September 6, 1945
To the Congress of the United States:
I regret that you have been compelled to cut short your recess period.
I know, however, that you have been just as eager as any of us to meet
the problems which naturally have crowded down upon us with the
surrender of the Japanese.
263
%1
�[128]
Sept. 6
Public Papers of the Presidents
You have cut short a well-merited vacation in order to do so. I hope
that the American people realize as fully as I do, that from the very first
days of the emergency, the Congress has most energetically and patriotically devoted its time, energies, and capabilities to the immediate problems of war and to the long-range problems of peace. The legislative
branch of the Government is entitled to its full share of credit and
glory for the victory of the Allied armies. I wish to take this opportunity
on behalf of the Nation to congratulate you on the great victory which
has been won—in which you played so important a part.
The Congress reconvenes at a time of great emergency. It is an
emergency about which, however, we need have no undue fear if we
exercise the same energy, foresight, and wisdom as we did in carrying
on the war and winning this victory.
The sudden surrender of the Japanese has not caught us unawares.
President Roosevelt, as early as the Fall of 1943, began to set up
machinery which he foresaw would become necessary to meet the
reconversion period. The Congress in its wisdom has adopted some of
that machinery by statute, and has improved and added to it. As a
result, Government agencies, for some time, have been able to plan
for the immediate and long-range steps which now have to be taken.
As the Congress has undoubtedly noticed, many steps were taken
immediately after the surrender of the Japanese. Many more have
been taken since.
The process of reconversion will be a complicated and difficult one.
The general line of approach to the problem is to achieve as full peacetime production and employment as possible in the most efficient and
speedy manner. The following policies have been laid down and will
be followed:
(1) Demobilize as soon as possible the armed forces no longer needed.
(2) Cancel and settle war contracts as quickly as possible.
(3) Clear the war plants so as to permit contractors to proceed with
peacetime production.
(4) Hold the line on prices and rents until fair competition can
operate to prevent inflation and undue hardship on consumers.
(5) Hold wages in line where their increase would cause inflationary
264
price rises
bargainin
(6) Re
speed anr
(7) I
version
and inl
(8)
The
time indi
Obvioi
unemplo
peacetim
number
industry
TheC
process.
Throi
ment to
It has
sary for
is still a
It has
By pi
to get si
In th
articles
civilian
Fort
to this
conver
ment i
The;
J Mr
One,' Is
�Harry S. Truman, 1945
lo so. I hope
the very first
y and patriotnediate prob'he legislative
of credit and
is opportunity
victory which
t.
ney. It is an
lue fear if we
id in carrying
us unawares,
jan to set up
to meet the
opted some of
d to it. As a
i able to plan
e to be taken,
ps were taken
ny more have
d difficult one.
e as full peacest efficient and
down and will
nger needed.
proceed with
Sept. 6 [128]
price rises. Where price ceilings would not be endangered, collective
bargaining should be restored.
(6) Remove all possible wartime government controls in order to
speed and encourage reconversion and expansion.
(7) Keep only those controls which are necessary to help reconversion and expansion by preventing bottlenecks, shortages of material,
and inflation.
(8) Prevent rapid decrease of wage incomes or purchasing power.
The major objective, of course, is to reestablish an expanded peacetime industry, trade, and agriculture, and to do it as quickly as possible.
Obviously during this process there will be a great deal of inevitable
unemployment. What we must do is to assist industry to reconvert to
peacetime production as quickly and effectively as possible so that the
number of unemployed will be swiftly and substantially reduced as
industry and business and agriculture get into high production.
The Government is now doing what it can to hurry this reconversion
process.
Through contract termination procedures it is providing quick payment to contractors.
It has released controls on practically all materials which are necessary for peacetime production, reserving only those few in which there
is still a critical shortage.
It has made arrangements for credit facilities for industry.
By plant and surplus property disposal, it is helping private enterprise
to get started again.
In the consumer field the Government has released controls over
articles which were needed for the war in such large quantities that
civilians had to go without.
For the information of the Congress, I am submitting as an appendix
to this message a report by the Director of War Mobilization and Reconversion showing what has already been done by the Federal Government in reconversion.
There is much that the Congress can do to help this process and to
1
jmpetition can
nsumers.
use inflationary
J
Mr. Snyder's report, dated September 4, 1945, and entitled "Tbe Transition : Phase
One,' Is printed with the message In House Document 282 (79th Cong., Ist Bess.).
265
�T
Harry S. Truman, 1945
y through the
to provide the
at needs of an
v well-planned
the usefulness
manufacturing
ent and future
ie Secretary of
approximately
an half of the
he program be
shared equally
:ies. I recomthis program,
ed to construct
upplement and
ndustrial facili'apid rate, it is
xeed with the
•r supply, hosacilities. Such
upplement and
etc with it for
V of the War
ions for ado assist them
>ns for their
y inadequate
lis important
iting a decision
public facilities
Sept. 6 [128]
started promptly which do not compete with private construction, I
recommend that the Congress give early consideration to grants for
such public works under conditions that will insure that each level
of government, Federal, State, and local, shall make its appropriate
contribution.
(7) The Congress has also been giving consideration to legislation
with respect to the construction of hospitals and health centers throughout the country. During the war the Government, through the Federal
Works Agency and the Public Health Service, has assisted State and
local governments and nonprofit organizations in the construction of
such facilities. The beneficial results of this program are well known.
The Federal Government must continue to recognize its obligation to
maintain and improve the health of the Nation by providing Federal
grants where necessary for the construction of hospital and health
centers.
Programs of internal improvements of a public character—Federal,
State, and local—must preserve competitive bidding, guarantee collective bargaining and good wages for labor, utilize the skills of our
returned veterans to the fullest extent, and effectively prevent discrimination because of race, creed, or color.
l 8 . LEND-LEASE AND POSTWAR RECONSTRUCTION
With the arrival of VJ-day lend-lease aid has practically come to
an end. It was always understood that it would come to an end at
that time. Immediately after Japan accepted the terms of unconditional surrender, I instructed the Foreign Economic Administrator to
advise promptly all governments that deliveries of supplies under lendlease would cease on VJ-day.
I also directed the Administrator in advance of the actual termination of lend-lease deliveries on VJ-day to enter into immediate negotiations with the receiving governments for the purchase of all goods
in the pipe line or in storage. These negotiations are proceeding
satisfactorily.
In due time we must consider the settlement of the lend-lease obligations which have been incurred during the course of the war. We
305
�[128]
Sept. 6
Public Papers of the Presidents
must recognize that it will not be possible for our Allies to pay us
dollars for the overwhelming portion of the lend-lease obligations
which they have incurred. But this does not mean that all lend-lease
obligations are to be canceled. We shall seek under the procedure
prescribed in the Lend-Lease Act and in subsequent agreements with
other governments to achieve settlements of our wartime lend-lease
relations which will permit generally a sound world-wide economy and
will contribute to international peace and our own national security.
We must turn from economic cooperation in war to economic cooperation in peace. We have taken steps to carry out the Bretton Woods
proposals for an international monetary fund and an International
Bank. We are preparing to extend the operations of the Export-Import
Bank. Our objective is to enable the peace-loving nations of the world
to become self-supporting in a world of expanding freedom and rising
standards of living.
Further legislation is also necessary. If we are to avoid the maintenance of governmental monopoly of international credit, the Johnson
Act must be repealed. Private loans on a sane basis are an essential
adjunct to the operations of the Export-Import and International Bank
operations.
I am directing the executive agencies to give full weight to foreign
requirements in determining the need for maintaining domestic and
export controls and priorities.
We have already solemnly stated that we will do all that is reasonably
possible to help war-torn countries to get back on their feet. I am sure
that the Congress will wish the Government to live up to that pledge.
Further legislative action is needed in connection with the United
Nations Relief and Rehabilitation Administration. I recommend that
the Congress fulfill the commitment already made by appropriating
the remaining $550,000,000 granted by the Congress for United States
participation.
The Council Meeting of the United Nations Relief and Rehabilitation Administration has just been brought to a successful conclusion.
At that meeting our delegate found the need for an additional contribution from all participating countries, to enable the United Nations
306
�Harry S. Truman, 1945
lies to pay us
se obligations
: all lend-lease
the procedure
reements with
ime lend-lease
: economy and
•nal security.
> economic co
Bretton Woods
i International
Export-Import
is of the world
lom and rising
void the mainlit, the Johnson
ire an essential
rnational Bank
:ight to foreign
5 domestic and
lat is reasonably
feet. I am sure
o that pledge,
vith the United
ommend that
appropriating
United States
nd Rehabilita>bful conclusion,
dditional contriUnited Nations
Sept. 6 [128]
Relief and Rehabilitation Administration to complete its work in
Europe and Asia. On his motion, the Council voted to recommend to
member countries a further contribution. Our own share will amount
to approximately $1,350,000,000. I am confident that you will find
this request for an additional authorization and appropriation fully
justified, and I ask for prompt examination and consideration of the
request.
In meeting the needs of the United Nations Relief and Rehabilitation Administration, surplus military and lend-lease goods will be used
to the fullest possible extent.
Finally, I foresee the need for additional interim lending power to
insure a rapid and successful transition to peacetime world trade. Appropriate recommendations will be made to the Congress on this
matter when we have completed the exploratory conversations already
begun with our associates. We wish to maintain the flow of supplies
without interruption. Accordingly, I have directed the executive agencies to complete their conversations and studies at the earliest possible
moment. I ask the Congress for speedy consideration of the recommendations when they are made.
IQ. CONGRESSIONAL SALARIES
Now that restrictions on voluntary salary increases have been removed, I hope that the Congress will take action soon on the salaries
of its Members.
My experience as a Member of the Senate has given me a very keen
appreciation of the quantity and quality of the work of the Members
of the Congress. They are called upon to carry great responsibility and
make important decisions in a multitude of matters involving "the welfare of the Nation and of the world. Their tasks continue day in and
day out. They have increased in number and in importance year by
year.
There is no doubt in the mind of any thinking American that Members of the Congress are grossly underpaid and have been for many
years. I think that they are entitled—and have already so expressed
myself—to a salary anywhere from fifteen to twenty-five thousand dol307
�Harry S. Truman, 1947
ess we have made
ommunity of nanforce the law on
ter of the United
;ts the world coma measure of such
ood-neighbor comican Republics we
'itnessing a similar
it, beginning at
ith unanimous aces of consultation.
nter-American Sysic great work done
onfcrencc on Probvhere the plan of a
hened System was
have traditionally
ss game in which
vit and checkmate
pt that comparison
ions between your
. President. The
:o are working toenefit of their peo: world. You have
Id not have doubted
here, in the midst
lexico, as a trusted
uest.
icople of Mexico I
endship and trust
- United States,
and wearisome
borhood as wide
.el it together.
3t fail each other.
u
at 9:35 P-m. in the
ing words "Mr. Presit Miguel Aleman of
irried on a nationwide
Mar. 6
[52]
52 Address on Foreign Economic Policy, Delivered at
Baylor University. March 6, 1947
President N e f f , ladies and gentlemen, members of the faculty of this great school and
its pupils:
I can't tell you how very much I appreciate this honor which you are conferring
upon me.
I am particularly touched by your remembrance of my mother.
It is with a real sense of gratification that
I meet with you today on the beautiful
campus of Baylor University in Waco. I
congratulate you on the outstanding achievements of this great university during the one
hundred and one years of its existence. I
am sincerely grateful for the degree of Doctor of Laws that you have bestowed upon
me, and I am honored to become a fellow
alumnus of the distinguished men and
women of this institution who have contributed so much to make our country great.
At this particular time, the whole world is
concentrating much of its thought and energy on attaining the objectives of peace and
freedom. These objectives are bound up
completely with a third objective—reestablishment of world trade. In fact the three—
peace, freedom, and world trade—are inseparable. The grave lessons of the past have
proved it.
Many of our people, here in America,
used to think that we could escape the
troubles of the world by simply staying within our own borders. Two wars have shown
how wrong they were. We know today
that we cannot find security in isolation. If
we are to live at peace, we must join with
other nations in a continuing effort to organize the world for peace. Science and
invention have left us no other alternative.
After the First World War, the United
States proposed a League of Nations, an organization to maintain order in the world.
99-438—63-
-14
But when our proposal was accepted and the
League was established, this country failed
to become a member.
Can any thoughtful person fail to realize
today what that mistake cost this Nation
and cost the world?
This time we are taking a different course.
Our country has taken a leading part in
building the United Nations, in setting up
its councils, its committees and commissions, and in putting them to work. We
are doing everything within our power to
foster international cooperation. We have
dedicated ourselves to its success.
This is not, and it must never be, the policy
of a single administration or a single party.
It is the policy of all the people of the United
States. We, in America, are unanimous in
our determination to prevent another war.
But some among us do not fully realize
what we must do to carry out this policy.
There still are those who seem to believe
that we can confine our cooperation with
other countries to political relauonships; that
we need not cooperate where economic questions are involved.
This attitude has sometimes led to the assertion that there should be bipartisan support for the foreign policy of the United
States, but that there need not be bipartisan
support for the foreign economic policy of
the United States.
Such a statement simply does not make
sense.
Our foreign relations, political and economic, are indivisible. We cannot say that
we are willing to cooperate in the one field
and are unwilling to cooperate in the other.
I am glad to note that the leaders in both
parties have recognized that fact.
The members of the United Nadons have
renounced aggression as a method of setding
167
�[52]
Mar. 6
Public Papers of the Presidents
their political differences. Instead of putting
armies on the march, they have now agreed
to sit down around a table and talk things
out. In any dispute, each party will present
its case. The interests of all will be considered, and a fair and just soludon will be
found. This is the way of international
order. It is the way of a civilized community. It applies, with equal logic, to the
setdement of economic differences.
Economic conflict is not spectacular—at
least in the early stages. But it is always
serious. One nation may take acdon in behalf of its own producers, without notifying
other nations, or consulung them, or even
considering how they may be affected. It
may cut down its purchases of another country's goods, by raising its tariffs or imposing
an embargo or a system of quotas on imports.
And when it does this, some producer, in the
other country, will find the door to his market suddenly slammed and bolted in his
face.
Or a nation may subsidize its exports,
selling its goods abroad below their cost.
When this is done, a producer in some other
country will find his market flooded with
goods that have been dumped.
In either case, the producer gets angry,
just as you or I would get angry if such a
thing were done to us. Profits disappear;
workers are dismissed. The producer feels
that he has been wronged, without warning
and without reason. He appeals to his government for action. His government retaliates, and another round of tariff boosts,
embargoes, quotas, and subsidies is under
way. This is economic war. In such a war
nobody wins.
Certainly, nobody won the last economic
war. As each battle of the economic war of
the thirties was fought, the inevitable tragic
result became more and more apparent.
From the tariff policy of Hawley and Smoot,
the world went on to Ottawa and the system
168
of imperial preferences, from Ottawa to the
kind of elaborate and detailed restricdons
adopted by Nazi Germany. Nations
strangled normal trade and discriminated
against their neighbors, all around the world.
Who among their peoples were the
gainers? Not the depositors who lost their
savings in the failure of the banks. Not the
farmers who lost their farms. Not the
millions who walked the streets looking for
work. I do not mean to say that economic
conflict was the sole cause of the depression.
But I do say that it was a major cause.
Now, as in the year 1920, we have
reached a turning point in history. National
economies have been disrupted by the war.
The future is uncertain everywhere. Economic policies are in a state of flux. In this
atmosphere of doubt and hesitation, the decisive factor will be the type of leadership
that the United States gives the world.
We are the giant of the economic world.
Whether we like it or not, the future pattern
of economic relations depends upon us. The
world is waiting and watching to see what
we shall do. The choice is ours. We can
lead the nations to economic peace or we
can plunge them into economic war.
There must be no question as to our
course. We must not go through the thirties
again.
There is abundant evidence, I think, that
these earlier mistakes will not be repeated.
We have already made a good start. Our
Government has participated fully in setting
up, under the United Nations, agencies of
international cooperation for dealing with
relief and refugees, with food and agriculture, with shipping and aviation, with loans
for reconstruction and development, and
with the stabilization of currencies. And
now, in order to avoid economic warfare,
our Government has proposed, and others
have agreed, that there be set up, within the
United Nations, another agency to be con-
cerned with problems a
world trade. This i
Trade Organization.
This organization w
mercial relationships tl
fair dealing that the U
plying to political :
taining unlimited frc
economic aggressioi
adopt a code of econ
to live according t<
adopting measures 1
to others, without warr
sultation, countries wo
the table and talk thii
pute, each party would
interest of all would
fair and just solution
economics, as in inter
is the way to peace.
The work of draftin
ter was begun by the 1
carried forward by a P
of eighteen nations m
fall. It should be cc
meeting of this Comi
ginning on April tenti
The progress that h
on this project is one c
developments since th
If the nations can a
of good conduct in in
will cooperate more i
national affairs. Sue!
vent the bitterness th:
economic war. It w
phere congenial to tht
As a part of this pi
the other nations of t
us in reducing barrie
not asked them to rer
have we ourselves o
we have proposed nt
ward the reduction
abroad, toward the e
�Harry S. Truman, 1947
)ttawa to the
1 restrictions
y.
Nations
liscriminated
nd the world,
s were the
/ho lost their
iks. Not the
is. Not the
s looking for
hat economic
ie depression,
or cause.
:o, we have
>ry. National
1 by the war.
where. Ecoflux. In this
ation, the deof leadership
ie world,
•nomic world,
future pattern
ipon us. The
g to see what
>urs. We can
peace or we
ic war.
on as to our
gh the thirties
I think, that
it be repeated.
' start. Our
ly in setting
agencies of
ealing with
ind agricul', with loans
.^pment, and
rencies. And
lomic warfare,
;d, and others
up, within the
ney to be con-
cerned with problems and policies affecting
world trade. This is the International
Trade Organization.
This organization would apply to commercial relationships the same principle of
fair dealing that the United Nations is applying to political affairs. Instead of retaining unlimited freedom to commit acts of
economic aggression, its members would
adopt a code of economic conduct and agree
to live according to its rules. Instead of
adopting measures that might be harmful
to others, without warning and without consultation, countries would sit down around
the table and talk things out. In any dispute, each party would present its case. The
interest of all would be considered, and a
fair and just solution would be found. In
economics, as in international politics, this
is the way to peace.
The work of drafting a world trade charter was begun by the United States. It was
carried forward by a Preparatory Committee
of eighteen nations meeting in London last
fall. It should be completed at a second
meeting of this Committee in Geneva, beginning on April tenth.
The progress that has already been made
on this project is one of the most heartening
developments since the war.
If the nations can agree to observe a code
of good conduct in internadonal trade, they
will cooperate more readily in other international affairs. Such agreement will prevent the bitterness that is engendered by an
economic war. It will provide an atmosphere congenial to the preservation of peace.
As a part of this program we have asked
the other nations of the world to join with
us in reducing barriers to trade. We have
not asked them to remove all barriers. Nor
have we ourselves offered to do so. But
we have proposed negotiations directed toward the reduction of tariffs, here and
abroad, toward the elimination of other re-
Mar. 6 [52]
strictive measures and the abandonment of
discrimination. These negodations are to
be undertaken at the meeting which opens
in Geneva next month. The success of this
program is essential to the establishment of
the International Trade Organization, to
the effective operation of the Internadonal
Bank and the Monetary Fund, and to the
strength of the whole United Nadons structure of cooperation in economic and political
affairs.
The negotiations at Geneva must not fail.
There is one thing that Americans value
even more than peace. It is freedom. Freedom of worship—freedom of speech—freedom of enterprise. It must be true that the
first two of these freedoms are related to the
third. For, throughout history, freedom of
worship and freedom of speech have been
most frequently enjoyed in those societies
that have accorded a considerable measure
of freedom to individual enterprise. Freedom has flourished where power has been
dispersed. It has languished where power
has been too highly centralized. So our
devotion to freedom of enterprise, in the
United States, has deeper roots than a desire
to protect the profits of ownership. It is
part and parcel of what we call American.
The pattern of internadonal trade that is
most conducive to freedom of enterprise is
one in which the major decisions are made,
not by governments, but by private buyers
and sellers, under conditions of active competition, and with proper safeguards against
the establishment of monopolies and cartels.
Under such a system, buyers make their
purchases, and sellers make their sales, at
whatever time and place and in whatever
quantities they choose, relying for guidance
on whatever prices the market may afford.
Goods move from country to country in response to economic opportunities. Governments may impose tariffs, but they do not
dictate the quantity of trade, the sources of
169
�Mar. 6
PwMr Papers of the Presidents
imports, or the destination of exports. Individual transacdons are a matter of private
choice.
This is the essence of free enterprise.
The pattern of trade that is least conducive
to freedom of enterprise is one in which decisions are made by governments. Under
such a system, the quantity of purchases and
sales, the sources of imports, and the destination of exports are dictated by public
officials. In some cases, trade may be conducted by the state. In others, part or all
of it may be left in private hands. But, even
so, the trader is not free. Governments
make all the important choices and he
adjusts himself to them as best he can.
I
I:
3
s•
This was the pattern of the seventeenth
and eighteenth centuries. Unless we act,
and act decisively, it will be the pattern of
the next century.
Everywhere on earth, nations are under
economic pressure. Countries that were
devastated by the war are seeking to reconstruct their industries. Their need to import, in the months that lie ahead, will
exceed their capacity to export. And so they
feel that imports must be rigidly controlled.
Countries that have lagged in their development are seeking to industrialize. In
order that new industries may be established,
they, too, feel that competing imports must
be rigidly controlled.
Nor is this all. The products of some
countries are in great demand. But buyers
outside their borders do not hold the money
of these countries in quantities large enough
to enable them to pay for the goods they
want. And they find these moneys difficult
to earn. Importing countries, when they
make their purchases, therefore seek to discriminate against countries whose currencies
they do not possess. Here, again, they feel
that imports must be rigidly controlled.
One way to cut down on imports is by
curtailing the freedom of traders to use
170
foreign money to pay for imported goods.
But recourse to this device is now limited
by the terms of the British loan agreement
and by the rules of the International Monetary Fund. Another way to cut down on
imports is by raising tariffs.
But if controls over trade are really to be
tight, tariffs are not enough. Even more
drastic measures can be used. Quotas can
be imposed on imports, product by product,
country by country, and month by month.
Importers can be forbidden to buy abroad
without obtaining licenses. Those who buy
more than is permitted can be fined or jailed.
Everything that comes into a country can be
kept within limits determined by a central
plan. That is regimentation. And this is
the direction in which much of the world
is headed at the present time.
If this trend is not reversed, the Government of the United States will be under
pressure, sooner or later, to use these same
devices to fight for markets and for raw
materials. And if the Government were to
yield to this pressure, it would shortly find
itself in the business of allocating foreign
goods among importers and foreign markets
among exporters and telling every trader
what he could buy or sell, and how much,
and when, and where. This is precisely
what we have been trying to get away from,
as rapidly as possible, ever since the war.
It is not the American way. It is not the
way to peace.
Fortunately, an alternative has been offered to the world in The Charter of the International Trade Organization that is to
be considered at Geneva in the coming
month. The Charter would limit the present
freedom of governments to impose detailed
administrative regulations on their foreign
trade. The International Trade Organization would require its member nations to
confine such controls to exceptional cases,
in the immediate future, and to abandon
them entirely
abandoned.
The trade-a
will accompan
ter, should ena
difficulty to •
affording thi
of the work
restore and i
consistent w
prise in evei
for its own <_..
will serve the
well as those c
If these nej
ful, we ourselv
mitments that
the world to n
to make conces
cessions from i
gotiations shot:
restoration of
which private
lost. I say agai
The progran
will make our
otherwise wou
ports will be \:
ports will be la
are afraid of i
cause they hav<
more products
duce just that
This is not
market is not
when we atter
the other cou
larger when w£
Our imports v
in 1932;they v
But no one wi
better year th;
making profit
is poor when
is good when
�Harry S. Truman, 194J
imported goods.
: is now limited
loan agreement
;rnauonal Moneto cut down on
; are really to be
gh. Even more
ed. Quotas can
iduct by product,
lonth by month,
n to buy abroad
Those who buy
be fined or jailed,
a country can be
ned by a central
on. And this is
ich of the world
ie.
•sed, the Govern:s will be under
o use these same
ets and for raw
ernment were to
ould shortly find
dlocating foreign
d foreign markets
ing every trader
, and how much,
This is precisely
to get away from,
;r since the war.
ay. It is not the
e has been ofarter of the Intion that is to
n the coming
imit the present
u impose detailed
on their foreign
Trade Organizaember nadons to
exceptional cases,
and to abandon
Mar. 6 [52]
them entirely as soon as they can be
abandoned.
The trade-agreement negotiations that
will accompany consideration of the Charter, should enable countries that are now in
difficulty to work their way out of it by
affording them readier access to the markets
of the world. This program is designed to
restore and preserve a trading system that is
consistent with continuing freedom of enterprise in every country that chooses freedom
for its own economy. It is a program that
will serve the interests of other nations as
well as those of the United States.
purpose of the coming negotiadons to lower
exisdng barriers to trade so that markets
everywhere may grow.
I said to the Congress, when it last considered the extension of the Trade Agreements Act, and I now reiterate, that domestic interests will be safeguarded in this process of expanding trade. But there still are
those who sincerely fear that the trade
agreement negotiations will prove disastrous to the interests of particular producing
groups. I am sure that their misgivings are
not well founded. The situation briefly is
this:
If these negodations are to be successful, we ourselves must make the same commitments that we ask all other nadons of
the world to make. We must be prepared
to make concessions if we are to obtain concessions from others in return. If these negotiations should fail, our hope of an early
restoration of an international order in
which private trade can flourish would be
lost. I say again, they must not fail.
(1) The Reciprocal Trade Agreements
Act has been on the books since 1934. It
has been administered with painstaking care
and strict impartiality. Some 30 agreements
with other countries have been made. And
trade has grown, to the great benefit of our
economy.
(2) This Government does not intend,
in the coming negotiadons, to eliminate
tariffs or to establish free trade. All that is
contemplated is the reduction of tariffs,
the removal of discriminations, and the
achievement, not of free trade, but of freer
trade.
(3) In the process of negotiations, tariffs
will not be cut across the board. Action
will be selecdve; some rates may be cut substantially, others moderately, and others
not at all.
(4) In return for these concessions, we
shall seek and obtain concessions from other
countries to benefit our export trade.
(5) Millions of Americans—on farms, in
factories, on the railroads, in export and
import businesses, in shipping, aviation,
banking, and insurance, in wholesale establishments and in retail stores—depend upon
foreign trade for some portion of their livelihood. If we are to protect the interests of
these people, in their investments and their
employment, we must see to it that our
The program that we have been discussing
will make our foreign trade larger than it
otherwise would be. This means that exports will be larger. It also means that imports will be larger. Many people, it is true,
are afraid of imports. They are afraid because they have assumed that we cannot take
more products from abroad unless we produce just that much less at home.
This is not the case. The size of our
market is not forever fixed. It is smaller
when we attempt to isolate ourselves from
the other countries of the world. It is
larger when we have a thriving foreign trade.
Our imports were down to a billion dollars
in 1932; they were up to five billion in 1946.
But no one would contend that 1932 was a
better year than 1946 for selling goods, or
making profits, or finding jobs. Business
is poor when markets are small. Business
is good when markets are big. It is the
171
�[52]
Mar. 6
Public Papers oj the Presidents
trade does not decline. Take one of these
groups as an example: wc exported in 1946
over three billion dollars worth of agricultural products alone, mostly grain, cotton,
tobacco, dairy products, and eggs. If we
should lose a substantial part of this foreign
market, the incomes of over six million farm
families would be materially reduced and
their buying power for the products of our
factories greatly curtailed.
(6) There is no intention to sacrifice one
group to the benefit of another group. Negotiadons will be directed toward obtaining
larger markets, both foreign and domestic,
for the benefit of all.
(7) No tariff rate will be reduced until
an exhaustive study has been made, until
every person who wishes a hearing has been
heard, and careful consideration given to
his case.
(8) In every future agreement, there will
be a clause that permits this Government—
or any other government—to modify or
withdraw a concession if it should result, or
threaten to result, in serious injury to a
domestic industry. This is now required
by the Executive order which I issued on
February the 25th, following extensive conferences between officials in the Department
of State and the majority leaders in the
Senate.
1
All these points—the history of trade-agreement operations, the way in which negotiations are conducted, the protection afforded
by the safeguarding clause—should provide
assurance, if assurance is needed, that domestic interests will not be injured.
The policy of reducing barriers to trade is
a setded policy of this Government. It is
embodied in the Reciprocal Trade Agreements Act, fathered and administered for
1
Executive Order 9832 "Prescribing Procedures
for the Administration of the Reciprocal Trade
Agreements Program" (3 CFR, 1943-1948 Comp.,
p. 624)172
many years by Cordel Hull. It is reflected in
the Charter of the International Trade Organization. It is one of the cornerstones of
our plans for peace. It is a policy from
which we cannot—and must not—turn aside.
Those among us—and there are still a
few—who would seek to undermine this
policy for partisan advantage and go back to
the period of high tariffs and economic isolation, I can only say this: Times have
changed. Our position in the world has
changed. The temper of our people has
changed. The slogans of 1930 or of 1896
are sadly out of date. Isolationism, after
two world wars, is a confession of mental
and moral bankruptcy.
Happily, our foreign economic policy docs
not now rest upon a base of narrow partisanship. Leaders in both parties have expressed their faith in its essential purposes.
Here, as elsewhere in our foreign relations,
I shall welcome a continuation of bipartisan
support.
Our people are united. They have come
to a realization of their responsibilities.
They are ready to assume their role of leadership. They are determined upon an international order in which peace and freedom
shall endure.
Peace and freedom are not easily achieved.
They cannot be attained by force. They
come from mutual understanding and cooperation, from a willingness to deal fairly
with every friendly nation in all matters—
political and economic. Let us resolve to
continue to do just that, now and in the
future. If other nations of the world will
do the same, we can reach the goals of permanent peace and world freedom.
NOTE: The President spoke at 1 p.m. on the campus
of Baylor University in Waco, Tex., immediately
after receiving an honorary degree from the university. His opening words referred to Pat Morris
Neff, president of the university. The address was
carried on a nationwide radio broadcast.
53 Lett
on tl
To the c
nomic Ai
My dea
The A.
Mobilizat
mitted to
Wage. In ;
said, "The
bution to
field and d
Governmen
public."
Although
guaranteed
subject of
clear the n
for maintai
guaranteed
and inform
guarantees.
Accordin
of Econom
implication
ticularly as
employmer
power. T l
legislation
minimum •
other laws
operation <
Since the
other Fedei
provide cu
wage plan
applicabilit
questing t
Secretary •
�H
[20]
Feb. 1
Public Papers of the Presidents
combined efforts of labor, management, and
government yielded an outstanding record of
uninterrupted producdon.
Now that most of the war-time controls
have been removed, it is appropriate that in
the American tradition labor and management assume their full responsibility. You
have negotiated the present plan without
government participation. The public and
the government look to you to make it
work.
The agencies of government stand ready
to be of all possible assistance to you in
this new venture. The Secretary of Labor
informs me that the Conciliation Service
of the Department of Labor will cooperate
with the Joint Conference Committee in
every possible way on any disputes that
may arise. The statistical services of the government agencies, and in particular those of
the Bureau of Labor Statistics, stand ready
to be of assistance to you. The splendid
record of cooperation with the Davis-Bacon
Division of the Department of Labor will no
doubt be continued.
21
You have taken a notable step along tht
road to industrial peace. I know that with
the full support of the members of all your
organizations—both
management and
labor—your industry and the nation will
achieve a higher level of production and
greater stability.
Very sincerely yours,
HARRY S. TRUMAN
NOTE: This is the text of identical letters sent to
Herbert E. Foreman, Managing Director, and
James D. Marshall, Assistant Managing Director,
of the Associated General Contractors of America,
and to Richard Gray, President, and Herbert Rivers,
Secretary-Treasurer, of the Building Trades Department, AFL. The text of the joint letter to iht
President from Mr. Foreman, Mr. Marshall. Mr.
Gray, and Mr. Rivers was released with the President's reply, together with the text of an agreement
between the organizations providing for a National
Joint Conference Committee. The purpose of the
Committee, as stated in the agreement, was to set
up machinery in the building and construction industry "for the settlement of any dispute or disagreements which may arise and which is voluntarily
submitted to the Committee by mutual agreement
of the parties involved in the dispute thereby furnishing adequate machinery for the settlement of such
disputes or disagreements in an orderly manner
without any stoppage of work by lock-out or strike.
Message to the Congress Transmitting First Annual Report on
U.S. Participation in the United Nations. February 5, 1947
To the Congress of the United States:
In accordance with the provisions of the
United Nations Participation Act of 1945 I
submit herewith my first annual report to
the Congress on the activities of the United
Nations and the participation of the United
States therein.
The Charter of the United Nations came
into force as a fundamental law for the
peoples of the world on October 24, 1945.
1
1
On Mar. 19, 1946, I transmitted to the Congress
the Report submitted to me by the Secretary of State
on the First Part of the First Session of the General
Assembly in London. [See 1946 volume, this series,
Item 65.]
Il8
The General Assembly convened for the first
time in London in January 1946. It elected
the Secretary-General and brought into being the Security Council, the Economic and
Social Council and the International Court
of Justice.
In December 1946, at the Second Part of
its First Session, in New York, the General
Assembly completed its main organizational
tasks by establishing the Trusteeship Council. Thus all of the principal organs of the
United Nations have now been established.
All of them, except the Trusteeship Council,
have been working on their appointed tasks
during most of the past year.
The policy of the United States,
General Assembly in New Yo»
i s
t o
t h
ober 23, 1946.
Nations with all the resources
possess
not as a temporal
ent but as a permanent partnershi]
That policy—in season and face of temporary failure as wt
ments of success-has the su,
overwhelming majority of th
people. I t must continue to h
port if the United States is to
pointed role in the United N L . .
United Nations is to fulfill its pu
if our land is to be preserved fror
ter of another and far more tern
In the work of the United Nat
the past year the United States
constandy to carry out that poliq
resentatives have spoken for
Nation. They have been Den
Republicans, members of both tl
and legislative branches of our C
men and women from private li
t
The work of the United
the past year has been the work
foundations for the future.
First of all, there have been t
foundations. The Assembly, 1
the Court and the Secretariat
vast amount of organizational
in order to establish themselve:
ing agencies of the internationa
Much of this has been pioneenn
whole structure of the United
far more extensive endeavor in
cooperation than the nations
fore attempted.
The essential parts of this str
not only the principal orga
by the Charter. They incluc
specialized agencies, such as
Agriculture Organization, th.
Labor Organization, the Unit,
ucational, Scientific and Cult
�Harry S. Truman, 1947
i notable step along the
eace. I know that with
he members of all your
management
and
ry and the nation will
evei of production and
iy yours,
HARRY S. TRUMAN
t of identical letters sent to
, Managing Director, and
\ssistant Managing Director,
'eral Contractors of America,
President, and Herbert Rivers,
,£ the Building Trades Detext of the joint letter to the
Foreman, Mr. Marshall, Mr.
was released with the Presiwith the text of an agreement
:ions providing for a National
nmittec. The purpose of the
in the agreement, was to set
building and construction inicnt of any dispute or disagreerise and which is voluntarily
mmittee by mutual agreement
I in the dispute thereby furnishiery for the seuiement of such
ments in an orderly manner
of work by lock-out or strike."
nnual Report on
bruary 5, 1947
;mbly convened for the first
.n January 1946. It elected
icral and brought into bejuncil, the Economic and
1 the Internadonal Court
:
46, at the Second Part of
\ New York, the General
id its main organizational
hing the Trusteeship Coun: the principal organs of the
have now been established,
ept the Trusteeship Council,
ing on their appointed tasks
the past year.
Feb. 5
[21]
The policy of the United States, as I told
the General Assembly in New York on October 23, 1946, is to "support the United
Nadons with all the resources that we
possess
not as a temporary expedient but as a permanent partnership."
That policy—in season and out—in the
face of temporary failure as well as in moments of success—has the support of the
overwhelming majority of the American
people. It must continue to have this support if the United States is to fulfill its appointed role in the United Nations, if the
United Nations is to fulfill its purposes and
if our land is to be preserved from the disaster of another and far more terrible war.
tion, the International Civil Aviation Organization, the International Bank for Reconstruction and Development, the International
Monetary Fund, the proposed World Health
Organization and International Trade Organization and several others. Each of these
specialized agencies operates in a specific
field under its own constitution. Each is or
will be related to the central structure of the
United Nations through the Economic and
Social Council and the General Assembly.
There is scarcely a field of activity having a
common interest for the peoples of the world
for which continuing instruments of international cooperation have not been developed
during the past year.
In the work of the United Nations during
the past year the United States has sought
constandy to carry out that policy. Our representatives have spoken for the whole
Nation. They have been Democrats and
Republicans, members of both the executive
and legislative branches of our Government,
men and women from private life.
Perhaps the most immediately significant
development of the past year in this direction was the General Assembly's demonstration of its power to influence the policies of
nations and to bring about greater understanding among them. The Assembly
possesses few definitive powers. It makes
recommendations that can be translated into
effective law only by the action of the nations
concerned. But the Assembly during its
meetings in New York expressed a higher
sovereignty of the people's will in a manner
which promises much for its development
as a dominant power for peace and progress
in the world.
The work of the United Nations during
the past year has been the work of building
foundations for the future.
First of all, there have been the structural
foundations. The Assembly, the Councils,
the Court and the Secretariat have had a
vast amount of organizational work to do
in order to establish themselves as functioning agencies of the international community.
Much of this has been pioneering work. The
whole structure of the United Nations is a
far more extensive endeavor in international
cooperation than the nations have ever before attempted.
The essential parts of this structure include
not only the principal organs established
by the Charter. They include equally the
specialized agencies, such as the Food and
Agriculture Organization, the International
Labor Organization, the United Nations Educational, Scientific and Cultural Organiza-
The building of the structural foundations
of the United Nations during the past year
has been accompanied by action over a very
broad field toward giving life and meaning
to the purposes and principles of the Charter.
There has been progress toward building
security from war. Step by step we have
advanced the first part of the way toward
agreement on the essential principles of a
truly effective international system of control
over the means of destruction that science
has placed in the hands of mankind.
The initiative in the control of atomic
energy and other major weapons adaptable
119
�[21]
Feb. 5
Public Papers of the Presidents
to mass destruction was taken by the United
States. The resolution creating the Atomic
Energy Commision was adopted at the First
Meeting of the General Assembly in London.
The United States presented in the Atomic
Energy Commission last June its proposal
for international control of atomic energy.
The Soviet Union opposed these proposals,
but the Commission worked throughout the
summer and fall to build the bases for agreement.
In October the Soviet Union introduced
in the General Assembly proposals on the
general regulation and reduction of armaments that seemed at first far removed from
the United States position. Nevertheless,
seven weeks later the Assembly was able to
adopt unanimously a resolution reaffirming
all the principles of the Atomic Energy
Resolution and reflecting for the first time
unanimous agreement on the essential principle of a system of international control and
inspection established by treaty and not subject to any veto in its operations.
Two and a half weeks later, on December
31, the Atomic Energy Commission transmitted its first report to the Security Council.
The Report had been adopted by the Commission by a vote of 10 to 0, the Soviet Union
and Poland abstaining.
Many months of hard work and difficult
negotiation in the Security Council and the
Atomic Energy Commission lie ahead. Not
all the essential principles have yet been
agreed upon. The problem of enforcement
must still be resolved. A l l the principles
must be given specific and practical application in treaties and conventions unanimously
agreed upon.
This is one of the main tasks before the
United Nations in the coming year. To succeed, we must at the same time build the
other essential foundations of a general system of collective security. The nations can
safely lay aside their arms only in so far
120
as their security is protected by other means
An essential element of collective security
will be the ability of the Security Council to
fulfill its primary responsibility for the maintenance of international peace and security.
In its consideration of international disputes
during its first year the Council demonstrated increasing power to ameliorate situations that otherwise might have become
dangerous and to influence the policies of
nations in the direction of upholding the
purposes and principles of the Charter. This
was generally true even when the five permanent members failed to reach the required
unanimity for definitive action. The Security Council's application on a continuing
basis of the public and peaceful methods of
the council chamber to the settlement of disputes between nations is a new development
in international relations, the significance
of which gives every promise of becoming
more apparent in the year ahead.
Important steps have been taken by the
United Nations during the past year toward
economic reconstruction and toward establishing the necessary basis for an expanding
peace-time trade and employment.
A draft Trade Charter establishing principles and practices aimed at increasing the
volume of world trade and employment by
reducing or eliminating artificial trade barriers and restrictions has been proposed by
the United States and is now being developed
by a Preparatory Committee of 18 nations.
One of the primary United Nations' tasks
of the year ahead is the adoption of such a
Charter and the creation of an International
Trade Organization to carry it out.
The General Assembly has unanimously
asked the Economic and Social Council to
act on recommendations for the reconstruction and integration of the European economy and establishment of an Economic
Commission for Europe. This Commission
would unite all the interested countries, in-
cluding the Soviet Union or
the United States on the W
mon program. Steps towan
construction and developme
East will also be undertake
nomic and Social Council th
Progress has also been r
nomic and Social Council a
agencies during the past y<
respects. It is not too mu
establishment and mainu
peace will depend in lar;.
ability of the United Na
through to a successful cone
it has begun toward worl
covery and cooperation.
The promotion and protec
man rights for all peoples v
purpose of the United Natic
port for the wider realizatio
and freedoms has been and
to be a primary objective <
policy in the United Natioi
During the past year ou
in the Assembly and the
Social Council took the inii
a charter for the Internatic
ganization under which the
and another chance for a
million victims of war anc
or religious oppression wo
I shall recommend to the
acceptance of the constitu
and appropriation of our
penses of its program.
The United States belie
of information must be >
.
wider basis than exists in
if the United Nations is
have strongly supported t l
debate of all issues in th
because this promotes pub
understanding and gives
world a more direct oppoi
the results. We have als
�Harry S. Truman, 1947
tected by other means,
t of collective security
he Security Council to
onsibility for the mainlal peace and security.
: international disputes
the Council demonver to ameliorate situamight have become
ifluence the policies of
tion of upholding the
les of the Charter. This
en when the five perma1 to reach the required
tive action. The Secucation on a continuing
md peaceful methods of
to the settlement of disns is a new development
lations, the significance
ry promise of becoming
ie year ahead,
have been taken by the
ring the past year toward
iction and toward estab.7 basis for an expanding
id employment.
Dharter establishing prins aimed at increasing the
.rade and employment by
lating artificial trade barins has been proposed by
"d is now being developed
jmmittee of 18 nations.
• United Nations' tasks
the adoption of such a
ition of an International
i to carry it out.
sembly has unanimously
mic and Social Council to
idations for the reconstruction of the European econishmcnt of an Economic
Europe. This Commission
the interested countries, m-
eluding the Soviet Union on the East and
the United States on the West, in a common program. Steps toward economic reconstruction and development in the Far
East will also be undertaken by the Economic and Social Council this year.
Progress has also been made by the Economic and Social Council and the specialized
agencies during the past year in many other
respects. It is not too much to say that the
establishment and maintenance of lasting
peace will depend in large part upon the
ability of the United Nations to carry
through to a successful conclusion the work
it has begun toward world economic recovery and cooperation.
The promotion and protection of basic human rights for all peoples is a fundamental
purpose of the United Nations. Active support for the wider realization of these rights
and freedoms has been and should continue
to be a primary objective of United States
policy in the United Nations.
During the past year our representatives
in the Assembly and the Economic and
Social Council took the initiative in writing
a charter for the International Refugee Organization under which the right to freedom
and another chance for a decent life of a
million victims of war and racial, political,
or religious oppression would be preserved.
I shall recommend to the Congress prompt
acceptance of the constitution of the IRO
and appropriation of our share of the expenses of its program.
The United States believes that freedom
of information must be realized on a far
wider basis than exists in the world today
if the United Nations is to succeed. We
have strongly supported the policy of public
debate of all issues in the United Nations
because this promotes public knowledge and
understanding and gives the peoples of the
world a more direct opportunity to influence
the results. We have also asked for action
Feb. 5
[21]
to break down the barriers to a wider, freer
flow of information in the world. Preparations are now going forward for a world
conference on freedom of information before
the end of this year as one step in this
direction.
The provisions of the Charter relating to
dependent peoples offer to those hundreds
of millions who do not yet govern themselves their best hope for attainment of this
and other basic human rights and freedoms.
The United States Representatives took a
leading part in the General Assembly in
bringing about the establishment of the
Trusteeship System in the face of sharp disagreements and other major difficulties that
might have caused indefinite delay. The
United States will support further steps
during the coming year toward strengthening the Trusteeship System.
America has long been a symbol of freedom and democratic progress to peoples less
favored than we have been. We must maintain their belief in us by our policies and
our acts.
One of the important long-range achievements of the General Assembly's First
Session was the adoption of resolutions
introduced by the United States on the codification and development of international
law.
The General Assembly unanimously directed its committee on codification to give
first attention to the charter and the decision
of the Nuremberg Tribunal, under which
aggressive war is a crime against humanity
for which individuals as well as states must
be punished. The Assembly also agreed
that genocide—the deliberate policy of extermination of a race or class or any other
human group—was a crime under international law. These developments toward the
application of international law to individuals as well as to states are of profound significance to the state. We cannot have lasting
121
�PK£/IC
Papers of the Presidents
peace unless a genuine rule of world law
is established and enforced.
The justifiable hope and confidence to
which the great progress of the United Nations in the past year has given rise can be
betrayed and lost. The difficulties and dangers that lie before us are many and serious.
They are strewn across the road that leads
to the final peace sctdcments, to the establishment and maintenance of collective
security, to the control of atomic energy
and regulation and reduction of other arms,
to the attainment of economic recovery and
an expanding world economy, and to the
wider realization of human rights.
Our policy of supporting the United Nations "with all the resources that we possess"
must be given effective practical application
on a genuinely national, bipartisan basis in
every activity of the United Nations. This
is just as necessary in the economic and social
field as it is in the political field. Wc must
22
jt
pursue without hesitation bipartisan policies
of economic cooperation with the rest of the
world in such matters as economic reconstruction and development and the expansion
of world trade and employment. Because
of the interdependence of the economy of
nations, it will also be vital to world recovery
as well as to our own prosperity that we
maintain at home a stable economy of high
employment.
The responsibility of the United States
is a particularly heavy one because of the
power and influence that our history and
our material resources have placed in our
hands. No nation has a higher stake in the
outcome than our own.
I said then, and I repeat now, that in a
democracy, this power should not rest with
122
It is my belief that
succession as provided i
ute, which was enacted
accord with our basic
HARRY S. TRUMAN
NOTE: The report is printed in House Document 81
(8oth Cong., ist sess.).
For the President's address of October 23, 1946,
to the United Nations General Assembly, see 1946
volume, this series. Item 236.
Letter to the President of the Senate and to the Speaker of the
House on Succession to the Presidency. February 5,1947
My dear Mr.
:
On June 19, 1945, I sent a Message to the
Congress of the United States suggesting
that the Congress should give its consideration to the question of the Presidential succession.
In that Message, it was pointed out that
under the existing statute governing the
succession to the office of President, members of the Cabinet successively fill the office
in the event of the death of the elected President and Vice President. It was further
pointed out that, in effect, the present law
gives to me the power to nominate my immediate successor in the event of my own
death or inability to act.
Message to the Congres:
still exists today.
I see no reason to ch
suggestion which I pre\
Congress, but if the C
posed to pass the type
passed by the House, t
some other plan of su
that the office of the
filled by an officer wh
a result of the expres
voters of this country.
the Chief Executive. I believe that, in so
far as possible, the office of the President
should be filled by an elective officer.
In the Message of June 19, 1945, I recommended that the Congress enact legislation
placing the Speaker of the House of Representatives first in order of succession, and
if there werc no Speaker, or if he failed to
qualify, that the President pro tempore of the
Senate should act until a duly qualified
Speaker was elected.
A Bill (H.R. 3587) providing for this
succession was introduced in the House of
Representatives and was passed by the
House on June 29, 1945. It failed, however,
to pass the Senate.
The same need, for a revision of the law
of succession, that existed when I sent the
23 Statement by
February 6, i
T H E N A T I O N mourr
ing of O. Max Gardner
achievements in public
he was on the thresh(
friends were confident •
distinction and furthei
field of diplomacy.
Whether he turned h
to business and industr
so great and so versatile
his achievements at on
ing.
In Washington, parti
years onward, his cou
In his last official post,
24 Special Mess;
February 7,
To the Congress oj the
In my recent messag
questing the extension
Second War Powers A
�Harry S. Truman, 7947
I Reserve, FDIC. Funds
The money is all In the
affect the budget,
the budget—would affect
Might. Might.
: Really no controversial
is there. It's a question
.vernment does with the
y
whole point, sir. It's the
had me confused, too, and
the items of 379
ents by the FDIC and Fednk and the Treasury ultimoney now lies in the FDIC
Reserve Bank which is part
.ent, and yet when it is paid
ry it results in receipts of
a r e
c o r n
U
;T. That's right.
«e receipts arc required to
get into balance. Therefore,
consider those actual receipts
,udget or is the money already
•ally is not a balanced budget,
at
ENT. The budget is balanced
sident makes the recommendabudget for legislation to meet
b: There are a good many
ns here for increases in ex.ey are all totaled on page
under Proposed Legislation,
deals with both sides of the
5
IDENT. You take it off both ways.
•t comply with what you request
he situation of expenditures and
out coming out even.
, l taking it out of one pocket
ig it into another?
y
Q. So it isn't actual receipts to Government?
Director Webb: Up to now, when the
Government put up the money for the
FDIC, that was charged out as an expense
and it has been carried outside. Now, if
they pass this legislation and permit it to
be paid back into the Treasury, it will be
shown as receipts, although the money has
been right in the Treasury all the time.
THE PRESIDENT. Certain appropriations are
estimated in there. You will come out even,
anyway.
Director Webb: If you are disturbed about
that, we will give you a statement about it.
Give us a ring on it. Come over and sec us.
if you
States. I am curious to know what a high
priority at overseas base might be?
THE PRESIDENT. I can't tell you.
THE PRESIDENT. Yes they are.
THE PRESIDENT. It's complex
Jan. 10 [7I
want
to make it that way, but it isn't complex to
e. / understand it. [Laughter]
[39.] Q. On the bottom of page M17
(p. 64), expenditures for the War and Navy
Departments, on estimates, include contemplated projects of highest priority at
overseas bases and in the continental United
m
It's a
diplomatic secret, and until we find out
ourselves—[laughter]. I will tell you one
of these days, but not now.
[Pause]
Well gendemen, are you out of questions?
That's a mighty thick book to be over with
so quickly.
[Laughter]
Mr. Ross: I would like to repeat—may I
repeat that the attributable part of the President's statement I will have mimeographed
and give out this afternoon. Only that part
may be attributed directly.
Reporter: Thank you, Mr. President.
NOTE: President Truman's ninety-fourth news conference was held in the Movie Projection Room in
the East Wing at the White House at 3 o'clock on
Wednesday afternoon, January 8, 1947. The President was assisted in presenting information on the
budget by Secretary of the Treasury John W. Snyder
and by James E. Webb, Director of the Bureau of
the Budget, J. Weldon Jones, Assistant Director in
Charge of the Fiscal Division, and L. C. Martin,
Assistant Director in Charge of Estimates.
7 Annual Budget Message to the Congress: Fiscal Year 1948.
January 10, 1947
[ Released January io, 1947. Dated January 3, 1947 ]
To the Congress of the United States:
I am transmitting the Budget for the fiscal
year 1948. It includes recommendations for
the entire Federal program.
Expenditures under existing and proposed
legislation are estimated at 37.5 billion dollars and revenues under existing tax laws at
37 7 billion dollars, leaving a very slight margin of surplus.
I strongly recommend that the Congress
uke early action to continue throughout the
'"cal year 1948 the war excise-tax rates,
"bich, under the present law, will expire July
1, 1947. My declaration of the end of hostilities on December 31, 1946, was not issued
in order to achieve tax reduction. I considered it essential that war excise-tax rates
be retained, but I also considered it necessary
to terminate the "state of hostilities" as soon
as it became possible to do so.
I also recommend that the Congress increase postal rates sufficiendy to wipe out
the postal deficit.
These recommendations would reduce
expenditures to 37.1 billion dollars and increase revenues to 38.9 billion dollars. Wc
SIDENT. That's all.
55
�[7] I
a n
-
1 0
Public Papers of the Presidents
I N T E R N A T I O N A L AFFAIRS A N D F I N A N C E
The budget for our international program
is designed to contribute to a peaceful world
and a stable world economy. We have definite responsibilities to our wartime allies
and in occupied countries. Our international lending program is an essendal part
of our efforts to achieve a world economy
in which private trade will flourish.
The period when large-scale general rdit-;
is required for our allies is almost over.
With the termination of the United Nations
Relief and Rehabilitation Administration,
there will remain, however, the urgen:
question of refugees and displaced persons
I urge the Congress to provide adequate
support for the Internadonal Refugee Organization, now in process of being formed
under the United Nations. It is also neccs-
INTESNATIONAL AFFAIRS A N D FINANCE
[Fiscal years.
In millions]
Expenditures
Actual,
Program or agency concerned
Reconstruction and stabilization-.
Subscriptions co International Fund and Bank
Treasury loan to United Kingdom
Reconstruction Finance Corporation loans to United
Kingdom
Export-Import Bank loans
Aid to China
U.S. Commercial Company
Foreign relief:
United Nations Relief and Rehabilitation Administrarion
War Department (occupied countries)
Other
Philippine-aid program
Membership in international organizations
Foreign relations:
State Department
Other
Proposed legislation
Total
From—
General and special accounts:
Purchase of capital stock in Export-Import Bank. .
Philippine-aid program
Other
Corporation accounts:
Issuance of Export-Import Bank capital stock. . . .
Export-Import Bank loans
Reconstruction Finance Corporation loan to Philippines
Other
Total.
66
Estimate,
Estimate,
1948
1946
$159
$ 1 , 42.6
1, 500
-39
464
Appropri*
tions, ipd
-39
1, 015
$1, zoo
-40
730
ILO
-Il8
2.0
743
556
x
J
4
305
645
$715
137
18
144
I?"
116
173
15
316
. 394
3.510
i,if9
137
z,683
1,015
105
1
'5
81
140
10
12.
1,464
6
674
18
18
9
-6
1
r- )
1,119
3°
5,183
-674
464
144
-3 5
y that we provide a modest r
pram for a £ countries which a
desperate straits. I recommend
Congress speedily enact legislado
thorize these expenditures for wh
making provision in this Budget
dition, I recommend tiiat th
authorize participation in the W
Organization and the propos
tional Trade Organization an
duded the small amounts need
support.
Expenditures.—-The sharp declin
expenditures in the fiscal year 19.
chiefly to the fact that in 1947 we s
plete our payment to the Internatioi
tary Fund and our basic cash sul
to the International Bank for Recor
and Development. Further liabilit
International Bank will arise only ;
called upon, within the limits of
subscripdon, to join with other coi
making good any defaults by borrov
the Bank.
w r
e w
More than half of our expenditui
international field in the fiscal year
be loans for reconstrucdon or t
pansion. Disbursements will be
nandy under existing commitments
end of the fiscal year 1948 we shall
charged about three-fourths of our
ents under our loan agreeme
Britain. Since the International Bar
ready for business, new authoriza;
feconstruction loans by the Expoi
Bank are being sharply curtailed,
future, the Export-Import Bank wi
Warily concerned with loans to
United States trade and small develi
ans in which we have a special
Outlays by the Export-Import Bar
fiscal years 1946 and 1947 have been
a considerable extent by the sale
ock to the Treasury. Since the
subscription is now complete, f i
m
lo
1
1,015
730
t o
75
-157
1,464
-19
6
. 394
5t
-40
3, 5!°
1,169
�Harry S. Truman, 1947
n large-scale general relief
our allies is almost over,
anon of the Umted Nations
.abilltation Administration,
.ain, however, the urgent
a « c s and displaced persons,
.ngress to provide adequate
e International Refugee Orin process of being formed
ted Nations. It is also necesie
w
sptndtturcs
,w ,
Estimatt,
f
Approfhat
T
w
s ip4i
'°" '
$1,416
$1,2.00
1,500
-40
730
-39
1,015
305
1,515
144
18
137
18
105
15
197
9
76
173
15
316
140
11
116
3, 5
6,394
3^
5,2.83
74
^4
$715
645
556
-3'-5
1,015
75
157
-19
464
6,394
1 0
144
137
1,683
1, o-S
73°
-40
3'5
sary that we provide a modest relief program for a few countries which are still in
desperate straits. I recommend that the
Congress speedily enact legisladon to authorize these expenditures for which I am
making provision in this Budget. In addition, I recommend that the Congress
authorize participation in the World Health
Organization and the proposed International Trade Organization and have inJuded the small amounts needed for their
support.
Expenditures.—The sharp decline in total
expenditures in the fiscal year 1948 is due
chiefly to the fact that in 1947 we shall complete our payment to the International Monetary Fund and our basic cash subscripdon
to the International Bank for Reconstruction
and Development. Further liabilities to the
International Bank will arise only if wc are
called upon, within the limits of our total
subscripdon, to join with other countries in
making good any defaults by borrowers from
the Bank.
More than half of our expenditures in the
international field in the fiscal year 1948 will
be loans for reconstrucdon or trade expansion. Disbursements will be predominandy under exisdng commitments. By the
end of the fiscal year 1948 we shall have discharged about three-fourths of our commitments under our loan agreement with
Britain. Since the Internadonal Bank is now
ready for business, new authorizations for
reconstrucdon loans by the Export-Import
Bank are being sharply curtailed. In the
future, the Export-Import Bank will be primarily concerned with loans to finance
'-nited States trade and small developmental
"ns in which wc have a special interest.
Outlays by the Export-Import Bank in the
"Kal years 1946 and 1947 have been financed
•0 2 considerable extent by the sale of capital
'
to the Treasury. Since the Treasury
^ r i p d o n is now complete, future net
Jan. 10 [7]
oudays will be financed entirely by sale of
notes to the Treasury.
The existing appropriation for United
Nations Relief and Rehabilitation Administration expires at the end of the current
fiscal year. Estimated expenditures in 1948
are entirely to wind up the program.
During the fiscal year 1948, the War Department will incur expenditures for administration and relief in Germany, Japan,
Korea, and the Ryukyus and for administration in Austria. We must continue to
provide subsistence to prevent disease, hunger, and unrest, and to provide proper administration, if these lands are eventually to
become democratic and self-supporting.
Moreover, shipments of food and other supplies are required to maintain the working
efficiency of the populations and to stimulate
production. Resulting increases in exports
from these areas will furnish a growing
source of funds to pay for necessary imports
and thus help eliminate the need for financial assistance.
The recent agreement for economic unification of the British and United States
zones in Germany will increase exports from
those zones and help to make them selfsufficient by the end of the calendar year
1949. All costs incurred for the support of
the German economy are to be repaid out
of future German exports as quickly as
recovery permits.
An important contribution to the economic
revival of the occupied areas is being made
by Federal agencies such as the U.S. Commercial Company in temporarily financing
exports from these areas. Net dollar proceeds arc currendy being used primarily to
purchase raw materials and equipment
needed for a further expansion of exports in
order to hasten the time when the occupied
areas will become fully self-supporting. To
aid in this program, I urge that the Congress
authorize the U.S. Commercial Company to
10
67
�[7] Ian- ^
Harr)
Public Papers of the Presidents
VETERAN
continue operations beyond June 30, 1947,
the present expiration date.
Aid for the Philippine Republic includes
assistance in rebuilding its economy, payments to fulfill our pledge to compensate
partially for war damage, and maintenance
of training programs for Philippine citizens.
The 1947 total includes a Reconstruction Finance Corporation loan of 75 million dollars
for aid in financing the current budget of
the Republic.
Estimated expenditures of 18 million dollars for our membership in international
organizations consist primarily of our share
of the administrative budgets of the United
Nations and its affiliated specialized organizations. In view of the immense tasks we
have entrusted to the international organizations, this is a modest sum. Our contribution to the International Refugee Organization and funds for additional relief are
included under proposed legislation.
Expenditures by the State Department are
expected to increase in the fiscal year 1948.
It is of utmost importance that the Department be equipped with sufficient funds and
an adequate staff to make its maximum contribution to international peace. In 1948
there will be an increase of expenditures to
carry on the improved Foreign Service
program authorized under the Foreign
Service Act of 1946. The Budget estimate
for the Foreign Service buildings fund provides for the purchase of real property obtained by the Office of the Foreign Liquidation Commissioner in lend-lease and surplus
property settlement agreements with other
nations. Payment for these properties by
the State Department increases miscellaneous
receipts of the Treasury by a corresponding
amount.
Appropriations.—Appropriations for the
fiscal year 1948 total 1,169 roillion dollars,
mainly for the administration and relief of
occupied countries and for various State De-
68
partment programs. Funds for loans bi
the Export-Import Bank in the fiscal y .
1948 will be obtained under its current bo:
rowing authority. Advances to the United
Kingdom will be made under the existing
authorization. The appropriations total in
eludes 11 million dollars of anticipated supplementals for the State Department and f
million dollars for proposed legislation.
'
I
j
tt
VETERANS'
j
I
'
SERVICES AND BENEFITS
^
The Servicemen's Readjustment Act pe
rv
vides education and training benefits,
unemployment and self-employment allow
ances, and loan guarantees. National senice life insurance is an additional tangible
benefit. For those who suffered disabilities,
the best of medical care is provided. Pension rates for disabled veterans and for dependents of veterans were increased by the
last Congress. In addition to the veterans
program, our servicemen have been assisted
in resuming civilian life by mustering-ou'
nents and terminal-leave payments,
.ice the main purpose of our veterans
j ^ram is to reestablish former servicemen
in civilian life, we must carefully avoid type'
of assistance which would encourage,
unnecessarily prolong, dependence up°
Government subsidy. Any other pol'O'
would not only put an intolerable burden
upon the taxpayer, but would be a gr '
disservice to veterans themselves.
01
n
63
Although some amendments to veterans
legislation may still be required, no maj
new programs of assistance appear necessaryThe job is now primarily one of effecti
administration. The Veterans' Administr '
tion has made great progress in establish'
ing machinery that will administer this comprehensive program with speed and equityor
ve
3
15
Expenditures.—The readjustment benefi
program as a whole will continue in 19^
at its present level, as reductions in unen '
1
Gene
[Fi*
Program or agency concerned
R d|us mcnt benefits, Veterans' Adnr '
Pensions, Veterans' Administration...
insurance, Veterans' Administration. . . .
Hospitals, other services, and administrai
Construction:
Veterans' Administration
Federal Works Agency
War Department
Current expenses:
Veterans' Administration.
Federal Works Agency
War Department
:l
t
Total
ployment allowances will be offset
creases in education and loan-gu:
expenditures. These estimates assun
tinuing prosperity and present legisla
In the fiscal year 1947, almost 1,
veterans, on the average, are drawing
ployment allowances and more than .
are receiving self-employment alio'
a time when total unemployment
United States is less than 2,500,00c
turn-over on the allowance rolls h;
pid. Almost one-half of the 14,
discharged from the services have
awn unemployment or self-empl
allowances. In recent months tighte
tfiinistration and a more positive jc
ment program by the employment
have contributed to a reduction in tl
kers on the allowance rolls. In tl
y ar 1948 it is expected that about
erans on the average will receiv'
ie billion dollars in these allowanc
On the average 2,000,000 vetei
Reiving education and training be
^e fiscal year 1947. In 1948 possibl
o will participate at a cost of •
a t
ra
dr
e
Vet
or
0o
�Harry S. Truman, 1947
1945. Big events were then impending and
ihe months that have ensued have presented
problems of the utmost moment, with all of
which you have dealt with rare tact and
judgment and—when necessary—firmness
and tenacity of purpose.
Yours has been a steadying hand as you
have met the difficult problems which have
arisen with such unvarying succession.
For all that you did during the war, and
in the making of the peace, you have earned
the thanks of the Nation. So I say: well
Jan. 8 [4]
done, in the hope that we can continue to
call upon you for the counsel which you
can give out of so rich and varied an
experience.
With every good wish,
Very sincerely yours,
H A R R Y S. T R U M A N
NOTE: Mr. Byrnes served as Secretary of State from
July 3, 1945, to January 21, 1947. His letters of
resignation dated April 16, 1946, and December 19,
1946, were released with the President's reply.
4 Special Message to the Congress: The President's First
Economic Report. January 8, 1947
: to do
To the Congress oj the United States:
As the year 1947 opens America has never
been so strong or so prosperous. Nor have
our prospects ever been brighter.
Yet in the minds of a great many of us
there is a fear of another depression, the loss
of our jobs, our farms, our businesses.
But America was not built on fear.
America was built on courage, on imagination and an unbeatable determination to
do the job at hand.
The job at hand today is to see to it that
America is not ravaged by recurring depressions and long periods of unemployment,
but that instead we build an economy so
fruitful, so dynamic, so progressive that
each citizen can count upon opportunity
and security for himself and his family.
Nor is prosperity in the United States
important to the American people alone. It
is the foundation of world prosperity and
world peace. And the world is looking
to us.
I believe that the American people have
the wisdom and the will to use our abundant
resources so that all may prosper. I reject,
and I know the American people reject, the
notion that wc must have another depression. I am not referring to minor detours
and bumps in the road ahead—these we
know we shall have. I am referring to
economic collapse and stagnation such as
started in 1929. This need not happen
again, and must not happen again.
The Congress passed the Employment
Act of 1946 by an overwhelming bipartisan
vote. This Act wisely provided for a Council of Economic Advisers to the President,
men who as a result of training, experience,
and attainments are exceptionally qualified
to analyze and interpret economic developments, to appraise programs and activities
of the Government and to formulate and
recommend national economic policy.
The Congress also provided for a permanent joint committee to receive and analyze this annual Economic Report of the
President and to submit recommendations
concerning it to both Houses.
In transmitting this first Economic Report, I am conscious of its significance as the
beginning of a series of reports that will
serve the Executive and the Congress as the
basis for an orderly and continuing review
13
�Harry S. Truman, 7947
ion of an enlightened
,uld expand them as our
, between these welfare
eral economic conditions
•tely explored. Proposals
jloyment, production, and
, and proposals tradition•ing in the general-welfare
itegrated because they are
rther studies will provide
s integration.
wd education programs.—
•hose income is less than
cessary for a decent subsist•ho cannot earn their living
cal unfitness or lack of edun of public health, nutrition,
regional development pro;reate additional job opporpply workers fit to fill these
y small Government expendi1 and education yield a high
nd. It is more economical to
: to earn a decent living than
m through relief.
.1 Government is now spendlount of money for health and
,grams for war veterans, but
.ditures in these fields are relaT urge the Congress to give
.ion to expanded peacetime
ublic health, nutrition, and
y—Although maximum emid protect wage earners genie effects of prolonged mass
ent, the individual is still exposed
lards of economic insecurity.
A security program has not kept
che times, nor with our increase
living standards. Many wdi: not covered by the present pro
visions of the Act, and the benefit payments
to those covered are inadequate under today's
conditions.
I recommend that the Congress, cooperi g with the States, take acdon that will
lead to increasing the amount and duration
f unemployment benefits. Present unemployment reserve funds are ample to support
such increases.
I recommend that the Congress amend the
social-security laws to extend the benefits of
ld-age and survivors' insurance to the occupational groups now excluded, and to include under unemployment compensation
the employees of all establishments, regardl ss of size, in the industries now covered by
the Unemployment Compensation Tax Act.
In expanding general social security, the
Congress should not overlook the railway
workers, whose protection is under separate
laws.
While we compensate workers for loss of
wages due to unemployment arising from
lack of work opportunities, we do not insure
ihem against the risks of loss of earnings
from temporary or permanent disability, nor
against the costs of medical care. This repreitnts not only a heavy loss for the individual
but a great waste of productive manpower.
There is an urgent need to spread the risks
arising from sickness and disability by insuring workers against the loss of income
and by providing, through social insurance,
ready access to essential preventive and curative medical services. I have, in a previous
message, presented recommendations for a
program of medical care and disability bene•'its. I urge early consideration of this
program.
Our present social insurance system is fi"Jnced by employee and employer contribu• ons. Wc must recognize, however, that
he employees' contributions and the employers' pay-roll tax curtail mass purchasing
a t
n
0
0
e
Jan. 8 [4]
power and increase businessmen's costs.
From an economic point of view, it would be
desirable to finance a part of the social
security system out of the general budget.
Therefore, I propose that the Congress, in
working out a system of financing an expanded social security program, give full
consideration to the economic as well as the
social import of various methods of taxation
for this purpose.
5. Cooperation in international
relations
economic
While most of this Report has necessarily
been devoted to the domestic aspects of employment, production, and purchasing
power, we must bear in mind that we are part
of a world economy. Our sales of goods
and services abroad, amounting to about 15
billion dollars in 1946. played an important
role in the maintenance of domestic production, employment, and purchasing power and
may be expected to do so this year. Such
a high level of exports reflects in large part
the war destruction of productive capacity
in other countries. If we are to maintain a
well-balanced prosperity over a long period,
our foreign trade must be established on a
more permanent basis.
In the long run we can sell to other countries only if we are willing to buy from them,
or to invest our funds abroad.
Both foreign trade and foreign investment
are vital to maintaining a dynamic economy
in this country.
The shortages we have suffered during the
war and are even now experiencing have
proved to us our need for foreign imports.
We will continue to need imports not only
to add richness and variety to our standard
of living but also as a means of conserving
strategic materials. We do not have to fear
so-called foreign competition when we have
37
�[4]
Jan. 8
Public Papers of the Presidents
maximum production, employment, and
purchasing power. We must not, of course,
indulge in indiscriminate reduction of barriers to imports. Such a policy is not contemplated.
For a few years we cannot expect to buy
as much from abroad as other countries buy
from us. We will find it profitable to invest
a part of our savings in developing the
world's productive resources through sound
loans and investments of equity capital
abroad. This is important not only in the
first instance as an immediate outlet for our
goods and services, the supply of which will
be increasing in the coming years, but also
as a means of permanently increasing foreign markets for our farmers and businessmen. The quickest demonstradon of this
can be seen by the fact that nations that are
industrialized are our best customers.
Many countries fear economic depression
in the United States as a threat to their own
stability. If faced with the alternatives of
smaller trade and economic insulation on the
one hand or close relations with an unstable
American economy on the other, many might
prefer some insulation as the lesser evil.
In preference to either of these alternatives, these countries would choose closer
relations with a stable American economy
operating at high levels. They have already
begun to cooperate toward achieving these
related goals: economic stability and expansion of world trade. The International
Monetary Fund, designed to stabilize exchange rates, and the International Bank for
Reconstruction and Development, set up to
facilitate the international flow of capital,
have already started to operate. At our initiative, experts of 18 important governments
recendy worked out a tentative charter for
an International Trade Organization. This
charter embodies principles of commercial
conduct designed to enlarge the beneficial
flow of world trade, to reenforce the domestic
38
employment and development programs of
the cooperating governments and, by inter- ;
governmental commodity agreements, to remove the depressing effects of burdensome
world surpluses. This charter represents the
first major effort in the field of trade to replace unilateral acdon—which often injured
other countries and provoked retaliation—
by cooperadon, and joint action under a set
of common principles. Continued progress
in the formation of the Internadonal Trade
Organization represents the most important
step that we can take to reestablish a high
volume of foreign trade on a sound basis.
The willingness of many other countries
to enter the proposed trade organization will
depend to a great extent on our attitude in
connection with the reciprocal tariff negotiations scheduled for this year. In return for
our own tariff concessions, we can hope to
secure not only reduction of foreign tariffs
and discriminations but also elimination of
a mass of restrictions, in particular, rigid import quotas preventing our access to foreign
markets. Thus we should press forward
with our program to secure the reciprocal
reduction of trade barriers.
If we fail to do our part in putting international economic relations on a healthier
basis, it is quite likely that some other countries will feel compelled to increase their
own controls. Such a development would
tend to break the world into trading blocs
and could have profound effects upon world
politics and the prospects for creating an
enduring peace.
6. Combating economic fluctuations
Only by blending all practicable programs
in wise proportions can we be successful in
stabilizing our economy at the highest feasible levels. The long-range policies I have
oudined are designed to strengthen the structure of the economy and to reinforce its
resistance to economic fluctuatioi
The greater this power of res.
l«s need there will be for some of
d specialized stabilizing dev
have received much attention in r
I have directed the Council oi
Advisers and the other approp
ment agencies to make a cow
ot" the stabilization devices thai
necessary and to recommenc
placed in operation in ample t
the anticipated effect.
Among these devices are a wel
program of employment stabili
provements in the process by wh;
find jobs and employers find w
provements in the tax structure;
agement of the public debt; an.
credit policy.
a n
5 Memorandum Concei
January 8, 1947
Memorandum for the Heads o
Departments, Commissions, ana
The American Red Cross dur
years of World War I I gave a f
of devotion to the relief of hum;
and the welfare of our countryme
in all parts of the world. In t l
the immense activities of this a
been rechanneled from demand
the complex problems of peace ai
responsibilities in binding up thi
War.
During the coming year the
activities of the Red Cross will
be very extensive. Large num
will still be in uniform. There
of veterans to whom the Red I
obligation. Tens of thousand
Army, Navy and Veterans' he
long time to come. The Red C
09-438—63-
�I Letter Accepting Resignation of Bernard M. Baruch as U.S.
Representative on the United Nations Atomic Energy
Commission. January 4, 1947
Dear Mr. Baruch:
The Secretary of State has handed me
your letter of resignation as the Representative of the United States on the Atomic
Energy Commission.
At first I was reluctant to accept the
resignation. However, upon reflection, I
have to agree with the correctness of the
condusions stated in your letter. The recent
action of the General Assembly of the United
Nations placed the responsibility for the consideration of disarmament proposals primarily upon the Security Council, where Senator
Austin will represent the United States. I
am impressed by the fact that, with one exception, the governments represented on the
Security Council have the same representatives on the Atomic Energy Commission.
I know how tremendously interested you
have been in the accomplishment of the task
assigned you, and when you tell me that you
believe your task is completed and that the
work should now be taken over by Senator
Austin, I accept your decision.
I wish to congratulate you most heartily
on having secured the acceptance by the
2
Commission of the United States proposal.
It is inevitable that members of the Commission representing many governments
should have differences of opinion as to the
best approach to a solution of this problem.
That our proposal should finally be accepted
by a vote of ten to nothing, with two states
abstaining, is a tribute to the fairness of our
proposal. At the same time, it is convincing
evidence of your skill and patience in presenting the proposal.
I wish you would extend to those who
have been associated with you in this most
important service my sincere appreciation
of their efforts. Your own efforts in this
matter only furnish additional evidence of
your unselfish devotion to your country.
Very sincerely yours,
HARRY S. TRUMAN
NOTE: Mr. Baruch served as U.S. Representative on
the United Nations Atomic Energy Commission
from April 6, 1946, to January 4, 1947. His letter
of resignation, released widi the President's reply,
was accompanied by "The First Report of the
United Nations Atomic Energy Commission," dated
December 31, 1946 (Government Printing Office,
101 p p . ) .
Annual Message to the Congress on the State of the Union.
January 6, 1947
[ As delivered in person before a joint session ]
Wr. President, Mr. Speaker, Members oj the
Congress oj the United States:
It looks like a good many of you have
moved over to the left since I was here last!
I come before you today to report on the
State of the Union and, in the words of the
Constitution, to recommend such measures
as I judge necessary and expedient.
I come also to welcome you as you take
up your duties and to discuss with you the
manner in which you and I should fulfill our
obligations to the American people during
the next 2 years.
The power to mold the future of this
II
�Jan. 6 [2]
Harry S. Truman, 1947
welfare,
nt of a
Jfare.
spend, but by the further contribution we
enable our veterans to make to their
country. In considering any additional
legisladon, that must be our criterion.
C I V I L RIGHTS
servicehe great
citizens
don. I t
vicemen
my that
> rapidly
We have recently witnessed in this country numerous attacks upon the constitutional rights of individual citizens as a result
of racial and religious bigotry. Substantial
segments of our people have been prevented
from exercising fully their right to participate in the election of public officials, both
locally and nationally. Freedom to engage
in lawful callings has been denied.
The will to fight these crimes should be
in the hearts of every one of us.
For the Federal Government that fight
is now being carried on by the Department
of Justice to the full extent of the powers
that have been conferred upon it. While
the Constitution withholds from the Federal Government the major task of preserving peace in the several States, I am
not convinced that the present legislation
reached the limit of Federal power to
protect the civil rights of its citizens.
1
I have, therefore, by Executive order,
established the President's Committee on
Civil Rights to study and report on the
whole problem of federally-secured civil
rights, with a view to making recommendations to the Congress.
N A T U R A L RESOURCES
In our responsibility to promote the general welfare of the people, we have always
to consider the natural resources of our
country. They are the foundation of our
1
Executive Order
Comp., p. 590).
808
(3
CFR,
1943-1948
life. In the development of the great river
systems of America there is the major opportunity of our generation to contribute to
the increase of the national wealth. This
program is already well along; it should be
pushed with full vigor.
I must advise the Congress that we are
rapidly becoming a "have not" Nation as
to many of our minerals. The economic
progress and the security of our country depend upon an expanding return of mineral
discovery and upon improved methods of
recovery. The Federal Government must
do its part to meet this need.
FOREIGN AFFAIRS
Progress in reaching our domestic goals
is closely related to our conduct of foreign
affairs. A l l that I have said about maintaining a sound and prosperous economy and
improving the welfare of our people has
greater meaning because of the world leadership of the United States. What we do, or
fail to do, at home affects not only ourselves
but millions throughout the world. If we
are to fulfill our responsibilities to ourselves
and to other peoples, we must make sure
that the United States is sound economically,
socially, and politically. Only then will we
be able to help bring about the elements of
peace in other countries—political stability,
economic advancement, and social progress.
Peace treaties for Italy, Bulgaria, Rumania,
and Hungary have finally been prepared.
Following the signing of these treaties next
month in Paris, they will be submitted
to the Senate for ratification. This Government does not regard the treaties as completely satisfactory. Whatever their defects,
however, I am convinced that they are as
good as we can hope to obtain by agreement
among the principal wartime Allies. Fur-
t •
�FK^Z/C:
Papers of the Presidents
ther dispute and delay would gravely
jeopardize polidcal stability in the countries
concerned for many years.
During the long months of debate on these
treaties, we have made it clear to all nadons
that the United States will not consent to
settlements at the expense of principles we
regard as vital to a just and enduring peace.
We have made it equally clear that we will
not retreat to isolationism. Our policies will
be the same during the forthcoming negotiations in Moscow on the German and Austrian treaties, and during the future conferences on the Japanese treaty.
The delay in arriving at the first peace
setdements is due partly to the difficulty of
reaching agreement with the Soviet Union
on the terms of setdement. Whatever differences there may have been between us
and the Soviet Union, however, should not be
allowed to obscure the fact that the basic interests of both nations lie in the early making
of a peace under which the peoples of all
countries may return, as free men and
women, to die essential tasks of production
and reconstruction. The major concern of
each of us should be the promotion of collective security, not the advancement of individual security.
Our policy toward the Soviet Union is
guided by the same principles which determine our policies toward all nations. We
seek only to uphold the principles of international justice which have been embodied
in the Charter of the United Nations.
We must now get on with the peace setdements.
The occupying powers should
recognize the independence of Austria and
withdraw their troops. The Germans and
the Japanese cannot be left in doubt and fear
as to their future; they must know their
national boundaries, their resources, and
what reparations they must pay. Without
trying to manage their internal affairs, we
can insure that these countries do not re-arm.
IO
INTERNATIONAL RELIEF AND DISPLACED
PERSONS
The United States can be proud of its part
in caring for the peoples reduced to want
by the ravages of war, and in aiding nations
to restore their national economies. We
have shipped more supplies to the hungry
peoples of the world since the end of the
war than all other countries combined!
However, insofar as admitting displaced
persons is concerned, I do not feel that the
United States has done i u part. Only about
5,000 of them have entered this country
since May, 1946. The fact is that the executive agencies are now doing all that is reasonably possible under the limitation of the
existing law and established quotas. Congressional assistance in the form of new legislation is needed. I urge the Congress to turn
its attention to this world problem, in an
effort to find ways whereby we can fulfill
our responsibilities to these thousands of
homeless and suffering refugees of all faiths.
guards sufficient to i
be able to use this
poses. So long as
agreed on means of
atomic energy, the
scure the bright
use of this enorn
In accordance ^
of 1946, the Cor
that law is assui
domestic atomic
program of the Coi
be worked out in ck
military services in c
of the Congress, bu
that the military
energy will steadily
Commission to fos
atomic energy for i
tific and medical re
and effective develo;
atomic energy rests
force may ultimatel;
ing for all nations.
INTERNATIONAL TRADE
MILIT;
World economic cooperation is essential
to world political cooperation. We have
made a good start on economic cooperation
through the International Bank, the International Monetary Fund, and the ExportImport Bank. We must now take other
steps for the reconstruction of world trade
and we should continue to suive for an international trade system as free from obstructions as possible.
In 1946 the Arm
the demobilization •
They are now mam
e need for nation;
our international ot
We live in a wori
the part of peace-lo
greatest deterrent
stability can be destr
great responsibilities
means of dischargin
ATOMIC ENERGY
This is an age v
eould come with un
must be strong enoi
forestall, any such
Progress toward a m
the need for large :
sively declining; but
The United States has taken the lead in
the endeavor to put atomic energy under effective international control. We seek no
monopoly for ourselves or for any group of
nations. We ask only that there be safe-
w
�Harry S. Truman, 1946
ng of
non struggles
and freedom,
y-eight years
g strength of
two republics
e in our peose principles.
ian
,31 as a result
etary of State
• refugees will
1 will in due
;as which will
ountry.
dated
cialist Repubi and to New
a draft of a
-vent which
lis Governands under
ve plan to
lally to the
ent is published
vol. 15, P- 889)-
Nov. 9 [249]
248 Statement by the President on the Forthcoming International
Conference on Tariffs and Trade. November 9, 1946
THE SECRETARY OF STATE has today
formally announced the intention of this
Government to enter into concerted tradeagreement negotiations with eighteen other
principal and representative trading nations
for the reciprocal reduction of trade barriers
and substantial elimination of trade discriminations among the nations participating.
It is important that the people of the
United States realize the true significance of
these negotiations, for us and for the world.
They are not solely trade bargains. They are
that; but they are much more. They are
central to the structure of international economic cooperation under the United Nations.
They are necessary to achieve the objectives
of the Atlantic Charter and of Article V I I
of our mutual-aid agreements. They arc
necessary to strengthen and support the
foundations of the International Monetary
Fund and the International Bank for Reconstruction and Development and to pave the
way for the kind of economic world envisaged in the Suggested Charter for an International Trade Organization.
The substance of the Suggested Charter
is now being discussed in London by a Com-
mittee of nations designated by the Economic
and Social Council to prepare for an International Conference on Trade and Employment and for the establishment of an
International Trade Organization. The
subsequent trade-agreement negotiations
announced today will carry forward these
general principles and objectives by concrete
and specific action to clear the channels of
trade, replacing trade warfare by trade cooperation to the common benefit of all
countries. Their success or failure will
largely determine whether the world will
move towards a system of liberal international trade, free from arbitrary barriers,
excessive tariffs, and discriminations, or will
pay the heavy costs of narrow economic
nationalism.
I am confident that the people of the
United States will give these negotiations
their full support and encouragement.
NOTE: The formal announcement by the Secretary
of State is published in the Federal Register ( n F.R.
13447)The Suggested Charter for an International Trade
Organization is published in the Department of State
publication 2598 (Government Prindng Office,
1946).
249 Statement by the President Upon Terminating Price and Wage
Controls. November 9, 1946
THE GENERAL CONTROL over prices
and wages is justifiable only so long as it
is an effective instrument against inflation.
I am convinced that the time has come when
these controls can serve no useful purpose.
I am, indeed, convinced that their further
continuance would do the nation's economy
more harm than good. Accordingly, I have
directed the immediate abandonment of all
control over wages and salaries and all control over prices except that necessary to
implement the rationing and allocation programs of sugar and rice. Rent control, however, must and will be continued.
475
�Harry S. Truman, 1946
telegrams ari^heldon Clark,
Justin Miller,
adcasters; ClarGeneral Foods
ctor, American
Luce, Editor o£
s W. Young,
.; Dr. William
ster C. Davis,
'ublisher of the
IUSS, President,
Mrs. Emily G.
Federation of
President, U.S.
e
, 1946
housing comagogue.
e membership
ie to discover
s in need of
r Rolls as the
ration in this
1 civic groups,
las served his
hould now be
om service. I
en will take
his effort in
.hould share,
an render a
our veterans.
Mar. 1 [47]
47 Special Message to the Congress Transmitting a Statement on
Foreign Loan Policy. March 1, 1946
To the Congress oj the United States:
On July 31, 1945, the Bretton Woods
Agreements Act became law. In that legislation the Congress established the National
Advisory Council on International Monetary
and Financial Problems "in order to coordinate the policies and operadons of the representatives of the United States on the Fund
and the Bank and of all agencies of the
Government which make or participate in
making foreign loans or which engage in
foreign financial, exchange or monetary
transactions." The Congress provided that
the membership of the Council should consist of the Secretary of the Treasury, as
Chairman, the Secretary of State, the Secretary of Commerce, the Chairman of the
Board of Governors of the Federal Reserve
System, and the Chairman of the Board of
Directors of the Export-Import Bank of
Washington.
On August 9, 1945, the Secretary of the
Treasury submitted for my approval a proposal as to the manner in which the National
Advisory Council should proceed in performing the task assigned it. The essence
of this proposal is contained in the following
excerpt from the communicadon which the
Secretary of the Treasury sent to me:
"As you can see from the attached memorandum, the United States Government is
now extending financial assistance to foreign
governments through a large number of
programs, administered by different departments and agencies, and with different procedures for inter-agency consultation. In
order for the Council to carry out the functions assigned to it, it seems to me necessary
that the Council should have a picture of
the over-all program of financial transactions
which it is proposed to carry out in the next
period. On such a basis, we can make
decisions in a rational way, strike the best
bargains with foreign countries, and save
money for the taxpayer."
On August 10, 1945,1 expressed my complete approval of the proposal and requested
the Council to proceed along the lines indicated. Prompdy thereafter the Council
completed its organization and commenced
to function without delay. Since that time
the Council has labored unremittingly in
the performance of its duties.
I have now received from the National
Advisory Council a document containing
significant conclusions concerning the entire
problem of foreign lending. The Council
in submitting the document to me stated:
"At an early date the Council undertook
to consider proposals and applications for
foreign loans, and to study the problems
and broad implications of foreign lending.
The statement which is now submitted to
you is an outgrowth of these activities of
the Council and represents our present views.
The Council will continue to study these
matters and will report further to you as
the rapidly changing conditions at home and
abroad may require."
This document, which is based upon the
careful study and direct experience of the
body established by the Congress to coordinate the foreign financial activities of this
Government, I now transmit to the Congress for its information and consideration.
The document is attached hereto.
I fully endorse the recommendations of
the National Advisory Council. Furthermore, I wish to emphasize that in my judgment the successful execution of this policy,
137
�[47] Mar.
Public Papers oj the Presidents
including the implementation of the Financial Agreement with the United Kingdom,
which I transmitted to the Congress on January 30, 1946, is of basic importance in the
attainment of the objectives of the economic
foreign policy of the United States. The
international economic cooperation which is
the keynote of our economic foreign policy
must accompany internadonal political cooperation, and we must achieve both if
world peace is to be enduring.
The statement of the National Advisory
Council concerning foreign loans reaches
the conclusion that the Export-Import Bank
will require during the next fiscal year addiUonal lending authority of
billion. I
endorse this conclusion and at a later date
I will discuss further with the Congress the
need of appropriate legislation.
HARRY S. TRUMAN
NOTE: The National Advisory Council document,
dated February 21 and released with the President's
message, is published in House Document 489 (79th
Cong., 2d sess.).
48 Letter to the Speaker of the House of Representatives Concerning
Measures To Stimulate Veterans Housing Construction.
March 1, 1946
My dear Mr. Speaker:
The House of Representatives is now considering a bill of supreme importance to
make it possible for veterans and their families to move out of trailers and temporary
shacks and overcrowded dwellings into decent homes within their means—the kind
of homes they fought and risked their lives
to defend.
Everybody concerned with this problem—
home builders, lenders, workers and local
officials—agree unanimously that the first
indispensable step to provide these homes is
the breaking of materials bottlenecks and
the expediting of the free flow of building
materials.
At the very heart of this materials effort
is the plan proposed by the Housing Expediter and approved by me to make premium
payments in selected cases to producers to
increase the supply of materials. The National Association of Home Builders, representing 30,000 builders and meeting this
week in Chicago, has endorsed this necessity for premium payments.
138
These premium payments cannot be made
available without immediate legislation
along the lines of an amendment which I
am informed has been prepared for introduction. It is for the Congress to decide
whether or not it wishes to adopt this premium payment amendment. But I would
be shirking my responsibility as Chief Executive if I did not make it transparendy
plain that, without this authorization for
premium payments, the facilities do not
exist within the administrative branch of
the Government to make these premium
payments, or otherwise to stimulate sufficiently the flow of building materials for
moderate and low-priced homes for veterans.
I am, therefore, bound to state the simple
logical deduction of fact that the defeat of
this premium payment amendment would
defeat the hopes and transgress the rights of
ever-increasing hundreds of thousands of
veterans and their families whose housing
conditions are now deplorable and are becoming increasingly acute.
This issue on premium payments is not
draw:
facts
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know
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it i
i
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the
49
50
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Dublin Core
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Title
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Michael Waldman
Description
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<p>Michael Waldman was Assistant to the President and Director of Speechwriting from 1995-1999. His responsibilities were writing and editing nearly 2,000 speeches, which included four State of the Union speeches and two Inaugural Addresses. From 1993 -1995 he served as Special Assistant to the President for Policy Coordination.</p>
<p>The collection generally consists of copies of speeches and speech drafts, talking points, memoranda, background material, correspondence, reports, handwritten notes, articles, clippings, and presidential schedules. A large volume of this collection was for the State of the Union speeches. Many of the speech drafts are heavily annotated with additions or deletions. There are a lot of articles and clippings in this collection.</p>
<p>Due to the size of this collection it has been divided into two segments. Use links below for access to the individual segments:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+1">Segment One</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+2">Segment Two</a></p>
Creator
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Michael Waldman
Office of Speechwriting
Date
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1993-1999
Identifier
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2006-0469-F
Extent
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Segment One contains 1071 folders in 72 boxes.
Segment Two contains 868 folders in 66 boxes.
Provenance
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Clinton Presidential Records: White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Text
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Original Format
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paper
Dublin Core
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Title
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Research Requests: Truman on IMF [International Monetary Fund]
Creator
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Office of Speechwriting
Michael Waldman
Is Part Of
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Box 42
<a href="http://clinton.presidentiallibraries.us/items/show/36404"> Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763296">National Archives Catalog Description</a>
Identifier
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2006-0469-F Segment 2
Provenance
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White House Staff and Office Files
Publisher
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William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Medium
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Preservation-Reproduction-Reference
Date Created
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6/3/2015
Source
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7763296
42-t-7763296-20060469F-Seg2-042-003-2015