we are finding we can make substantial savings that way, by careful purchasing policies. Senator FERGUSON. Any others? Mr. STASSEN. We are examining certain aspects of the program like that, involved in the Benton-Moody amendment as to whether that present program is the best way to approach the productivity problems, and whether that money is spent as well as it should be. Senator FERGUSON. What have you found along that line? Mr. STASSEN. We have found that there are grounds for a pretty careful examination of the present process, and indications that it should be changed with some less expenditure of funds. Senator FERGUSON. That was somewhat of a union support, was it not? Mr. STASSEN. Well, I don't know how it got through Congress. Senator FERGUSON. No, I meant the way it has been used, that it was Mr. STASSEN. The law has something in it about the support of free trade labor movements. Senator FERGUSON. I know the law does, but what about the actual operation. Mr. STASSEN. The past operation? Senator FERGUSON. Yes, what did you find when you went into it? Mr. STASSEN. I found it needed some changes in some of the contracts, some contracts should be cancelled, as they did not seem to be desirable within the objectives of the United States. Senator FERGUSON. Would you give us a report then on that? Mr. STASSEN. If you wish. Senator FERGUSON. That is all I have. Senator SMITH of New Jersey. Senator Mansfield, you are next. AID TO SPAIN Senator MANSFIELD. Governor, I realize there is a certain amount of French antipathy to Germany coming in EDC, and eventually we hope into the North Atlantic Treaty Organization. I realize that there is a certain amount of antipathy toward any aid to Yugoslavia, and personally it has been pretty hard for me to countenance trade with that country, but I think it is in the best interest of mutual security to do so, and I recognize the fact that there is a certain amount of antipathy on the part of both Britain and France agains aid to Spain, and eventual inclusion into NATO. However, in my talks with military men, from Eisenhower on down, over the past years, they have all told us, from a military point of view, that Spain would be invaluable in the defense of Europe. I hope that the will of Congress, expressed here last year in the appropriation of $125 million is adhered to, and that MSA, which I understand has control of the funds, will do what it can to bring about some sort of a legitimate basis by means of which the military can use those airfields in the military build-up of Western Europe. I think it is very important to all of us. PROGRESS ON TAX PROBLEMS Now, what is MSA itself doing in the breaking down of this heavy tax situation which is confronting us in the building of the infrastructure, the airfields all over France and North Africa and that problem being settled, are we being able to take any steps to remove those taxes in these countries where we are doing this construction, where we make these appropriations? Mr. STASSEN. Yes, I understand that successful progress is being made in that particular problem. Senator MANSFIELD. Do you think that when the request for funds come up next month, that somebody will be prepared to give us the detailed explanation as to just what progress has been made? Mr. STASSEN. Yes, and bring up the documents on it. Senator MANSFIELD. Fine. That is all, Mr. Chairman. Senator HICKENLOOPER. May I suggest that they ought to be, we have been asking for it for 3 years, that kind of a report in detail, and we ought to be able to get it. Mr. STASSEN. This is the first request made of me. Senator HICKENLOOPER. No, we have not asked you, but it has been asked by each Congress, what has been done about the tax businesses and so forth. I hope, eventually, we can report. Senator SMITH of New Jersey [in the absence of the chairman]. Senator Knowland, you seem to be next. OFFSHORE PROCUREMENT IN THE FAR EAST Senator KNOWLAND. Governor, what is the situation on the offshore procurement in the Far East? Are we doing something in Japan, the Philipines and Formosa? Mr. STASSEN. A small amount out there, yes. I am not familiar, for certain, with whether Japan is included or not. I know there is some in Formosa, the Philippines, and Thailand. Senator KNOWLAND. Would you be prepared at your next appearance before the committee to give us some indication as to what our offshore procurements are planned for those areas? Mr. STASSEN. Yes, sir, I will be glad to. Senator SMITH of New Jersey. Your estimate is to be based on adequate figures, I take it, relating to the foreign aid program? Mr. STASSEN. Next week we will be ready to give you the whole picture, country by country. Senator SMITH of New Jersey. For the past year? Mr. STASSEN. That is right. We have been examining and studying carefully since the inauguration, and have been going through the MSA study on the overall strategy and translating our policy, and we will be prepared. Senator SMITH of New Jersey. Will you be here again between now and May 5? Mr. STASSEN. Yes. Senator SMITH of New Jersey. I have a number of other questions that I want to ask, but they are not relevant at this particular time, so I will wait until a later date and ask them at that time. Mr. STASSEN. All right, sir. The CHAIRMAN. Are there any further questions? ARE THE BRITISH SHIPPING JET ENGINES TO RUSSIA? Senator HICKENLOOPER. Governor, are the British shipping jet engines such as those others to the Russians now or electronic mechanisms or strategic materials of that kind, to your knowledge? Mr. STASSEN. They are not. Senator HICKENLOOPER. There was a time when they were shipping jet engines of course to the Russians. Mr. STASSEN. That was quite a long time ago. Senator HICKENLOOPER. I know, but I just wondered if they might be continuing that practice, if there had been any change. Mr. STASSEN. No, they are not. Senator HICKENLOOPER. Or, any other strategic, fabricated material, let us say, things such as electronics, all materials like that? Mr. STASSEN. No, they are not. Senator HICKENLOOPER. That is all. The CHAIRMAN. I understand there will be a vote on the Douglas amendment. If there are no further questions, the committee will stand adjourned. [Whereupon, at 4:50 p.m., the committee stood in recess until 10:30 a.m., the following morning Wedneday, April 29, 1953.] MINUTES TUESDAY, APRIL 28, 1953 UNITED STATES SENATE, Washington, D.C. The subcommittee on overseas information met at 10:30 a.m. in the Foreign Relations Committee Room, to hold an executive session. Present: Chairman Hickenlooper, Senators Wiley, Knowland, Mundt, Green, and Fulbright. For record of proceedings, see official transcript. (368) REPORT BY THE SECRETARY OF STATE1 WEDNESDAY, APRIL 29, 1953 UNITED STATES SENATE, COMMITTEE ON FOREIGN RELATIONS, The committee met, pursuant to recess, at 10:30 a.m., in the Foreign Relations Committee Room, U.S. Capitol, Senator Alexander Wiley (chairman) presiding. Present: Senators Wiley (chairman), Smith of New Jersey, Hickenlooper, Taft, Langer, Ferguson, Knowland, George, Green, Fulbright, Sparkman, and Gillette. Also present: Dr. Wilcox, Dr. Kalijarvi, Mr. O'Day, Mr. Cahn, Mr. Marcy, and Mr. Holt, of the committee staff. NOMINATION OF M'FALL The CHAIRMAN. The committee will please be in order. Gentlemen, may I have your attention. They have set up the nomination of Jack M. McFall, Foreign Service Officer, class 1, to be Minister to Finland. He is over there now and we are informed by Mr. Wilcox that we have the FBI report, and he is all right. Do you want anything further on that? Senator GREEN. I think he is a pretty good man. Senator KNOWLAND. I think he is an excellent man, Mr. Chairman. The CHAIRMAN. Then you move to suspend the rule, and report him favorably? Senator KNOWLAND. I so move. The CHAIRMAN. Without objection, it is so moved. NOMINATION OF WADSWORTH Next is the nomination of George Wadsworth of New York. Some of you know him. I know him. Senator FULBRIGHT. He is in Czechoslovakia, is he not? Senator SMITH. I thought he was in Turkey. Senator FULBRIGHT. He was but now he is in Czechoslovakia. What is he up for? The CHAIRMAN. Ambassador to Czechoslovakia. Senator FULBRIGHT. That is all right with me. The CHAIRMAN. I understand the FBI cleared him. Mr. WILCOX. Yes. og 7 |