are our actual or potential competitors in world markets. This is certainly evidence of our faith in the proposition that the economic advancement of each country is of benefit to the world as a whole."

In discussing international economic policies, Mr. Thorp recalled to the Council that the United States has for over 15 years "advocated an expansion of world trade on a multilateral and nondiscriminatory basis, convertible currencies, and large and unhampered international flow of capital." He observed that the Council is "interested in a properly functioning international economic system primarily, if not entirely, because of its importance to the economic and social welfare of the peoples of the world. . . . What we want to know is what has happened during the year to the people of the world in terms of their daily living their nutrition, working conditions, housing, health, social security, their educational and recreational facilities, their personal liberty, and their opportunities for individual self-expression.” In conclusion Mr. Thorp pointed to the need for world-wide expansion in economic activity and trade and the large possibilities for such expansion. In this connection he cited the January 1950 Economic Report of the President to the Congress: "We have regained stability: but we need more than stability. The great motivating force in our economic system is the perpetual will to move ahead, to use our skills and our resources more efficiently, to produce more at lower cost, and to provide a better and richer life for all our citizens. The American economy must expand steadily."

During the spring of the year the three U.N. regional economic commissions, in Europe, in Latin America, and in Asia and the Far East, issued their annual economic surveys of their respective areas. The survey of the Far East pointed out that although 1949 may have been a turning point in the economic recovery of the region, and although mineral and industrial production and transport had made a marked improvement, nevertheless agriculture remained a dominant problem and the political unrest of the area was taking a serious economic toll. As a result it would be totally unrealistic to expect a rapid increase in the standard of living and welfare of the people of the region. The survey of Latin America concerned itself with the theory of economic development for the area, with studies of specific countries, and with gathering new economic data. It pointed up the need for greater technological progress and industrial development. The European survey referred to the substantial increases in production and showed that industrial production in 1949, excluding the U.S.S.R. and Germany, exceeded the prewar level by 25 percent and that inflationary pressure was being reduced. The survey emphasized the danger which was presented by the "dollar gap" and the need to

formulate plans to bridge this gap prior to the end of United States extraordinary aid.

By the time of the summer session of the Council it was recognized that world production had "turned the corner" and that both production and employment were speedily rising. The July issue of the United Nations Bulletin of Statistics showed that, whereas the index of world production had fallen from 140 in the first quarter of 1949 and from 148 to 137 in the third quarter of 1949, it was up again to 144 in the last quarter of 1949 and to 148 in the first quarter of 1950. This resumption of progress was recognized at the eleventh session of the Council at Geneva and in the discussions of the General Assembly's Economic Committee in the fall.

In fact, at the time of the Assembly discussion it was clear from the speeches of many of the U.N. members that their preoccupying concern was with the shortages and inflationary pressures being created by the world rearmament program rather than with unemployment and surpluses. Accordingly the Assembly adopted a resolution requesting the Council at the twelfth session, to be held in the winter of 1951, to pay special attention to changes taking place with a view to recommending measures designed to make possible the uninterrupted progress in economic stability and development programs in spite of the difficulties being caused by the rearmament program. It is likely therefore that the next session of the Council will be concerned in large measure with questions of commodity shortages and with means for dealing with these shortages.

2. Technical Assistance

In the first half of 1950 U.N. action for the development of an expanded program of technical assistance was held in suspense, since the scope and character of the program depended largely on the legislation to be adopted by the Congress of the United States. On June 5, 1950, the Congress having passed the Economic Cooperation Act of 1950 (Public Law 535, 81st Cong.), Title IV of which is called the Act for International Development, the President approved the legislation and the technical-assistance program became part of United States basic law. Under this act the United States was authorized to participate in technical-assistance programs of the international organizations "wherever practicable." The President was also authorized to make contributions to the United Nations for technical-assistance programs carried on by the United Nations "which

will contribute to accomplishing the purposes of this Title as effectively as would participation in comparable programs on a bilateral basis." The act also provided that United States participation in any technical-assistance program (either a U.N. program or a U.S. program) should be terminated by the President if he determined that such participation was contrary to a General Assembly resolution that the continuance of such programs was "unnecessary or undesirable."

A week later there assembled at Lake Success the Technical Assistance Conference of countries interested in participating in the expanded technical-assistance program of the United Nations. The purpose of the conference was to secure from these countries pledges to the Special Account. At the conference and afterwards (to December 31) 54 countries had pledged a total of $20,046,552 to the special technical-assistance account. The United States pledged $12,007,500 subject to two conditions: (1) that its share should not represent more than 60 percent of the total pledged; (2) that Congress appropriate the money. Other major contributions were (in dollar equivalents): United Kingdom, $2,128,255; France, $1,207,500; Canada, $772,727; Brazil, $459,600; Australia, $400,000; Netherlands, $400,000; Belgium, $270,000; India, $250,000; Switzerland, $231,481; Argentina, $200,000; Turkey, $182,000; Pakistan $140,663; New Zealand, $124,138; Indonesia, $121,522; Uruguay, $99,408. Of the total contributions of other countries, only a small portion is fully convertible into dollars. The U.S.S.R. and its group of adhering states made no contribution.

In the summer of 1950 a Technical Assistance Administration was established within the United Nations Secretariat. Hugh Keenleyside of Canada was appointed Director General, with a deputy, Mr. Martines-Cabanas of Mexico. Within this administration has been united responsibility for operation and administration of not only the U.N. share of the expanded program of technical assistance but also the other U.N. programs of technical assistance which have been established on a continuing basis and are financed under the regular U.N. budget. These are relatively small programs and include advisory social-welfare functions; technical assistance for economic development under General Assembly resolution 200; and training in public administration. Within each of the participating specialized agencies special arrangements have been made for handling the expanded technical-assistance program.

By late summer the first payments to the Special Account were being made. The United States appropriation was enacted on September 6, 1950 (Public Law 759, 81st Cong.), and very promptly the

United States made its first payment of $4,000,000. As of December 31 other countries had paid (in dollar equivalents) $3,470,741 The first projects began to get under way.

During 1950 the Technical Assistance Board (TAB), made up of the executive heads of the participating specialized agencies and the United Nations, began regular meetings at approximately bimonthly intervals. This Board, center of the coordination mechanism for the U.N. program of technical assistance, is kept informed of all requests for assistance received by each organization, examines proposed programs in relation to each other, helps in arranging joint projects involving two or more organizations, and makes recommendations regarding the whole program of technical assistance to the Technical Assistance Committee (TAC), composed of the members of the Economic and Social Council.

The Board has achieved considerable success in the avoidance of duplication, and it has made good progress in establishing a reasonable uniformity of administrative and fiscal procedures.

With regard to the program as a whole, no significant action was taken in 1950 by either Ecosoc or the General Assembly because these bodies had already taken all necessary action the previous year. A resolution was provided for the continuance of technical assistance to Libya after Libya should have achieved its independence on January 1, 1952, but before it became a member of the United Nations or of any specialized agency. This resolution was directed at the technical difficulty that Libya, eligible for technical assistance as a dependent area, might find itself ineligible during the period between the achievement of its independence and the time when it should become a member of the United Nations or one of the participating specialized agencies.

Great efforts have been made to promote full coordination between the multilateral programs to be carried on in the United Nations and the bilateral programs being developed by the United States and other countries. The foundation of such coordination is full and free interchange of information between the United States Government and the international organizations. Reporting facilities are being steadily developed. The Technical Assistance Board reports regularly to the governments members of the Technical Assistance Committee those requests which have been received by the TAB. For example, if the Food and Agriculture Organization (FAO) receives a request for technical assistance, FAO automatically reports the request to TAB and TAB then reports the request to the governments members of TAC. Reciprocally the United States is furnishing to TAB requests which it receives from governments for technical assistance under the

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United States bilateral programs. Governments have been informed hat any requests which they make to the United States for technical assistance will be reported to TAB and hence to the specialized agencies concerned. The technical-assistance programs of the Economic Cooperation Administration are also being brought within this arrangenent. In addition to informational interchange, field coordination is being increasingly looked to as a means of adjusting U. S. and U. N. programs to each other in the planning stages.

As financing materialized in the second half of 1950, country requests for technical assistance grew in number under both the expanded program and the regular programs of the United Nations and the specialized agencies. Fifty-one countries requested technical assistance under the expanded program as of December 15, 1950 (including requests which did not specifically distinguish as between expanded and regular program). Many of the requests involved assistance from more than one agency. The agency distribution of the requests was as follows: United Nations, 28; Food and Agriculture Organization, 29; International Labor Organization, 9; United Nations Educational, Scientific and Cultural Organization, 15; World Health Organization, 34; International Civil Aviation Organization,

15.

Significant among the projects which were carried on in 1950 under the regular budget of the United Nations were a comprehensive mission to Bolivia, headed by Dr. Keenleyside, the Director General of the United Nations Technical Assistance Administration; a mission on economic and financial matters to Chile; and a mission concerned with industrial metallurgy in Mexico.

The U.N. program of granting fellowships for training in public administration, under General Assembly resolution 246 (III), was inaugurated in 1950. Twenty-eight member governments nominated 125 candidates for fellowships and scholarships; 32 fellowships and 25 scholarships were granted, although 7 fellowship requests and 7 scholarship requests were subsequently withdrawn by their governments. Nine of the fellowship holders and 10 of the scholarship holders were placed for study in the United States.

Certain survey missions were organized in 1950 as a means of developing detailed plans for further technical assistance in the countries to which they were sent. Of these, four illustrate the approach and method used.

An exploratory mission arrived in Afghanistan in March and remained there several weeks, working out plans for a long-term technical-assistance program for Afghanistan. On the basis of these recommendations, a larger United Nations technical-assistance mis