EXISTING AUTHORIZATION AND ADDITIONAL NEEDS Chairman BLOOM. If they say that they approve of that, then do you spend the money that you have now, the $1,350 million for that purpose? Mr. ACHESON. Yes. Chairman BLOOM. Without the authority of the Congress? Mr. ACHESON. We have the authority of Congress to spend $1,350 million for the purposes of UNRRA, whatever purposes UNRRA authorizes under its constitution, which the Congress has approved. We have no additional authority to use existing money for the relief of Italy. We do not need any additional authority for that. If we do that, we are going to run out of money for other purposes, and the Council will not authorize that, unless it sees that there is in the offing some more money and an extended period of time. Chairman BLOOM. Mr. Clayton is going to ask the leaders if they think this can be done. It can be done-but how much money, just in the rough, will be required? How much additional money besides the $1,350 million are you going to ask for? PROBABLE SIZE OF APPROPRIATION REQUEST Mr. ACHESON. At the present time it is hard to say with accuracy. It may be as much money again as UNRRA has already had. That will be the top limit. In other words, UNRRA has altogether $1,800 million. Of that the United States has put in $1,350 million, or authorized that much. They have not appropriated at all. That is, to carry on the Italian program and all the other programs, including the unknown Chinese program which will come in after the liberation of China, it is figured that it will cost somewhere in the neighborhood of $1,500 to $1,800 million. So, for practical purposes, we should consider asking for as much money again as UNRRA has already had. It may be that we can get out of it with less. Anyone who would assure you of that would be saying something which he could not guarantee. Mr. KEE. Would it not be a good idea to submit to Congress in some manner an estimate of the maximum amount that will be needed? Mr. ACHESON. A great deal of material has been gotten up on that. We can do it now, or we can do it with the leaders at the meeting that I spoke of a moment ago. We have gone into considerable detail on this matter. OTHER COUNTRIES' NEEDS; PRESENT AID FOR ITALY Mr. McCORMACK. There is also the question of Poland, Greece, and other countries involved. As I understand it, in connection with the statement you have just made of the probable future obligations that will be imposed on UNRRA, that is the situation [for the other countries, too]; is that correct? Mr. ACHESON. Yes. Mr. McCORMACK. So that out of this might develop a broader picture, but confining it to Italy at the present time-let me see if I follow you correctly: There are $50 million allocated by UNRRA now to meet the necessities, the immediate necessities of children and expectant mothers and refugees-displaced persons. Mr. ACHESON. Yes. Mr. McCORMACK. And $100 million available out of lend-lease for broad relief purposes? Mr. ACHESON. Yes. Mr. McCORMACK. And it is your opinion that that $100 million will meet the situation up to some time between November and January. Mr. ACHESON. Yes. TO PREVENT AN ITALIAN DOMESTIC COLLAPSE Mr. McCORMACK. And unless something is done there, there will be a bad situation, a collapse? Mr. ACHESON. There will be a collapse. Mr. McCORMACK. Can you give any information as to when the troops are going to move out of Italy? Mr. ACHESON. Only what I have read in the papers. I have no information about that at all. Mr. McCORMACK. Have you any opinion as to what the situation might be in Italy when the American troops move out? Mr. ACHESON. Do you mean the relief situation? Mr. McCORMACK. From a broader angle-what groups might take over the control of the government? Mr. ACHESON. I can get someone up here who is an expert on Italian matters, but I am not. Mr. McCORMACK. From the angle of our own country, that is a matter of great concern. Mr. ACHESON. I think what I should say is, if we do not have an import program, a relief program, then almost anything may happen in Italy. You will have a complete collapse, economically, politically, spiritually, and every other way. AD HOC APPROACH TO COLLAPSE ABROAD Mrs. BOLTON. Will that not be true of every country? Mr. ACHESON. Yes. Mrs. BOLTON. Are we going to carry the load? Is that the intention of the State Department? Mr. ACHESON. No. I am just laying the situation before you. Mrs. BOLTON. I thought that when we made the appropriations for UNRRA, it was not going to be a recurring thing every year. 4 Mr. ACHESON. That is quite right. My testimony is full of the fact that we are asking for this amount of money, and if that does not suffice, we have to come back to the Congress and lay the whole thing Secretary Acheson testified before the Committee on Foreign Affairs about the United Nations Relief and Rehabilitation Administration in executive session on July 7, 1943, for the transcript of which see hearing elsewhere in this section. He also testified at length at the public hearings held in December 1943 and January 1944, for transcripts of which, see Committee on Foreign Affairs, Hearings on H.J. Res. 192, 78th Congress, 1st and 2d sessions, to enable the United States to participate in the work of the United Nations Relief and Rehabilitation Administration, Dec. 7-17, 1943, and Jan. 11, 1944 (Washington, 1944). on the table again with a new authorization and a new appropriation. You are entirely right. Mr. JONKMAN. The authorization is for $1,350 million. Mr. ACHESON. That is right. Mr. JONKMAN. And only $800 million has been appropriated? CONTRIBUTIONS TO UNRRA BY OTHER NATIONS Mr. JONKMAN. What quota have the other nations contributed? Mr. ACHESON. Mr. Hendrickson, of UNRRA, who is the Financial Director General, is here, and I think that he can answer that. My information is that you will have altogether in the neighborhood of $1,800 million. STATEMENT OF HON. RAY F. HENDRICKSON, DEPUTY DIRECTOR GENERAL, BUREAU OF SUPPLY, UNITED NATIONS RELIEF AND REHABILITATION ADMINISTRATION Mr. HENDRICKSON. That is right. Mr. ACHESON. The difference between $1,350 and $1,800 million. Mr. JONKMAN. I mean in actual contributions; not subscriptions. Mr. ACHESON. I have been talking about Mr. JONKMAN. And the other nations have contributed $1,000 million against our $800 million? Mr. ACHESON. Oh, no. Mr. HENDRICKSON. In the case of the United Kingdom, it has made available in pounds the equivalent of $300 million which is slightly more than 1 percent of its national income; In the case of Canada, it has made available, and we have as a matter of fact, expended, $77 million, which is also about 1 percent of its national income; Brazil has made $30 million available, which is somewhat more than 1 percent of its national income-however, that is in three annual installments; Australia-and I would like to correct this figure-but I believe it is $40 million; New Zealand, around $9 million, which in both cases is about 1 percent of their national income; India has made available $20 million-it is hard to say what the national income of India is. In the case of many of the smaller Latin American countries, they have made installments, and I think there are only three or four now which have not made any contribution. Some of them have said that the resolutions of UNRRA provided that if they felt they could not afford 1 percent, the nation contributing had to be the judge of that. Mexico took the position that they could not afford more than onequarter of 1 percent, and they have already offered a contribution in that amount. Iceland has contributed in installaments, and will contribute about $1 million, which would be substantially more than 1 percent of its national income for a population of about 130,000. There are, I think, about seven or eight nations which have made no real move to make their contributions. They have indicated that they would. Those are Egypt, Iran, Iraq, Ecuador and, I think, two or three others. Outside of that, they have either made their contributions in full, as in the case of the United Kingdom and most of the dominions, or they have put an installment on the books and then indicated that they would contribute more. When it comes to administrative expenses, that is quite a separate amount. There, the country that was occupied by the enemy contributed, and I believe there are only a few instances where the administrative expense contribution has not been made. It has been made in practically all instances. CONTRIBUTORS' QUOTA: 1 PERCENT OF NATIONAL INCOME Mr. JOHNSON. You mentioned 1 percent of the national income. That was the basis of the contribution as agreed upon, as I recall. Mr. HENDRICKSON. That is right. Mr. JOHNSON. Reviewing, or recapitulating what you have said, the great percentage of these countries have contributed the quota assigned? Mr. HENDRICKSON. Yes. The principal countries, in terms of national income, have actually contributed. When we measure the national income of the various countries, the United States stands out far above and the United Kingdom stands out second. Russia is a country occupied by the enemy, and was not expected to contribute what we call program money, but was expected to contribute administrative expenses, and it has made an installment and has promised to make a further payment which would complete its record. Chairman BLOOM. What is the amount? 5 Mr. HENDRICKSON. I believe that is in the vicinity of $1 million. Mr. GILL. They have paid $200,000 and have informed us that the balance of $800,000 is in the process of transfer to us. STATEMENT OF OSCAR COX, DEPUTY ADMINISTRATOR, FOREIGN ECONOMIC ADMINISTRATION Mr. Cox. This is all included on pages 28 and 29 of the third report to Congress of UNRRA's operations. Mr. JOHNSON. The last period? Mr. Cox. Yes. It is the third report to the Congress on U.S. participation in the operation of UNRRA, and it is pages 28 and 29. QUESTION OF INCREASING OTHER COUNTRIES' CONTRIBUTIONS Chairman BLOOM. Mr. Acheson, I would like to ask you a question. Suppose that we authorize the increase of $1,350 million for the United States, will the other countries be required to do the same thing? Mr. ACHESON. The first step, I think, would be to take this up at the Council meeting in London to recommend to all its members that they make a further contribution to UNRRA. Corrington Gill, Deputy Director General, Bureau of Finance and Administration, United Nations Relief and Rehabilitation Administration. Third report to Congress on U.S. Participation in Operations of UNRRA, under act of March 28, 1944, as of March 31, 1945 (Washington, 1945), also printed as H. Doc. 251, 79th Cong., 1st sess. Mr. JOHNSON. Would that not be a reason why it should be taken up there first, before we take it up here? If we take up the appropriation now we would have initiated it before they had agreed to do the same thing. Mr. ACHESON. That is right. EXTENT OF U.S. CONTROL OVER LEND-LEASE AND UNRRA Mr. McCORMACK. Who is administering the $100 million in lendlease? Mr. ACHESON. Mr. [Leo T.] Crowley [Administrator of the FEA]. Mr. McCORMACK. We have control over that? Mr. ACHESON. That is right. Mr. Cox. That is right. CONTROL OF PERSONNEL APPOINTMENT Mrs. BOLTON. Who makes the appointments for the personnel of UNRRA? Who nominates and affirms the appointments to UNRRA? Mr. ACHESON. Under the agreement creating UNRRA, signed by the 44 nations, the Director General is in sole and complete charge. Mrs. BOLTON. But who makes the nominations for the American appointments? Mr. ACHESON. We talk together about it. He gets some help from us. Sometimes he approaches people directly himself. It is his responsibility. One of the very difficult things that UNRRA has been facing is the problem of getting the people that it wants to get. So many men, both in this country and in all other belligerent countries, have been drawn into the war machine, that it is very hard for UNRRA to get the people that it wants. ROLE OF RUSSIAN SYMPATHIZERS IN UNRRA Mrs. BOLTON. The reason I asked that question is that I have had considerable and very vehement objections to some of the people put in authority in UNRRA, and especially some of the Italian group. I have been told that they are violently pro-Russia; not only that, they are Communists by persuasion. I think that is one of the factors that should be considered by this committee, or we will be accused on the floor of the House of not knowing anything about these things. I just wonder if there is any way for us to know a little bit more about these things and what UNRRA is doing with this money. ACTUAL CONTRIBUTIONS Mr. JONKMAN. I have not had a complete answer to my question yet. The sum was fixed at $1,800 million as being available. The United Kingdom has been mentioned. I very quickly jotted down the actual figures given. The United Kingdom, $300 million. Is that an obligation, or is that a contribution that they have made? 7 For the text of the international agreement which established the United Nations Relief and Rehabilitation Administration, see appendix III, p. 285. |