It is another step forward to begin the progressive transfer of the administration of the program to the hands of the local governments from the various relief agencies, who by their methods of operation, have necessarily been unable to utilize local governments in their handling of relief supplies.

The circulation of additional wages throughout the economies of the Near East will open up still more opportunities for work by creating new buyers in local markets. Both the refugee population and the established population of the countries concerned will benefit thereby.

In addition, the works projects planned will make it possible for the refugees to establish themselves away from refugee camps. It will increase the ambition and interest of others among the idle to look for work. Work and the interest stimulated by the nature of the works projects will go far to change the outlook of many of these people. The work relief program will improve the morale of the refugee population, who obviously would become increasingly demoralized by idleness and the dole. Wages earned through work relief will restore the selfrespect of the breadwinner.

These carefully planned projects will create new and permanent wealth. The proposed developments in the Wadis of the Jordan, the terracing, and other phases of reclamation, will provide opportunities for thousands to make their living after the projects themselves have been completed.

It should be pointed out that the bulk of the work projects will be in Jordan and Arab Palestine because that is where the greater part of the refugees are to be found. The Government of Jordan, moreover, has expressed special interest in development plans and has offered Jordanian citizenship to any refugee who will request it. In Jordan, at least, absorptive capacity becomes the criterion for resettlement, and this in turn will depend on the long-range development of the area, as well as on projects that can promise a unified development within the life of the works program.

Although the ESM does not guarantee that the adoption of the proposed 18 month program will result in the termination of international assistance at any given date, the Mission has made it clear that unless steps are taken along the lines outlined, there is no end in sight to the refugee problems. With a successful works program and with a settlement of political problems now outstanding between Israel and her neighbors, there would be every prospect that emergency international assistance in the future would not be required on the scale now under consideration. The conclusion of peace between Israel and the Arab States would make the prospects for loans and investments much brighter, thus providing alternative sources for the capital required for the development of the Near East; and reducing or eliminating altogether the need for grants-in-aid.

The works program and the pilot projects described by the ESM in its final report will go far in stimulating general interest in the possibilities of development in the Near East. Completion of the program for damming and irrigation of the small streams on the Jordan will be a striking illustration of what can be done if steps are taken to carry out sound engineering plans. The projected survey of the Litani and other waterways will arouse interest in governmental, financial and other circles in the Near East. These programs will furnish a vivid illustration of the possibilities and advantages of carrying forward similar reclamation and rehabilitation work under the Point Four Program. The ESM has made it clear that in order to proceed wisely, it is necessary to move slowly. On the other hand, long-range goals should not be lost sight of. Long ago this area supported several times its present population. There is every reason to think that with the execution of sound reclamation measures, the populations of the Near Eastern countries could be supported in increasing numbers, and at higher standards as the years go by.

The program of the PRA will contribute towards the stability of the area by eliminating causes for unrest. By giving the refugees work to do and new things to think about it will make them less likely victims of the political agitator.

By changing men's attitudes and by fostering and strengthening local governmental institutions, the program will help to bring about the peace settlement which the UN is so actively seeking and which all men of good-will so earnestly desire.

Appendix G: S. Res. 231

1. S. RES. 231, INTRODUCED BY SENATOR LUCAS, CONSIDERED, AMENDED, AND AGREED TO FEBRUARY 22, 1950

Resolved, That the Senate Committee on Foreign Relations, or any duly authorized subcommittee thereof, is authorized and directed to conduct a full and complete study and investigation as to whether persons who are disloyal to the United States are, or have been, employed by the Department of State. The committee shall report to the Senate at the earliest practicable date the result of its investigation, together with such recommendations as it may deem desirable, and if said recommendations are to include formal charges of disloyalty against any individual, then the committee, before making said recommendation, shall give said individual open hearing for the purpose of taking evidence or testimony on said charges.

In the conduct of this study and investigation, the committee is directed to procure by subpena and examine the complete loyalty and employment files and records of all the Government employees in the Department of State, and such other agencies against whom charges have been heard.

Mr. CONNALLY introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To amend the Economic Cooperation Act of 1948, as amended. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That, section 111 of such Act is hereby amended by adding 4 at the end thereof the following new subsection:

5 "(d) The Administrator is authorized to transfer funds 6 directly to any central institution or other organization 7 formed to further the purposes of this Act by two or more 8 participating countries, or to any participating country or 9 countries in connection with the operations of such institution or organization, to be used on terms and conditions specified 11 by the Administrator, in order to facilitate the development

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1 of transferability of European currencies, or to promote the

2 liberalization of trade by participating countries with one 3 another and with other countries."

4 SEC. 2. (a) Section 114 (c) of such Act is hereby 5 amended in the following particulars:

6 (1) By striking out the period at the end of the first sentence and inserting in lieu thereof a colon and the fol8 lowing: "Provided further, That, in addition to the amount 9 heretofore authorized and appropriated, there are hereby 10 authorized to be appropriated for carrying out the provisions 11 and accomplishing the purposes of this title not to exceed 12 $2,950,000,000 for the fiscal year ending June 30, 1951: 13 And. provided further, That, in addition to the foregoing,

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any balance unobligated as of June 30, 1950, or subsequently 15 released from obligation, of funds appropriated for carrying 16 out and accomplishing the purposes of this title for any

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period ending on or prior to that date is hereby authorized 18 to be made available for obligation through the fiscal year 19 ending June 30, 1951, and to be transferred to and con20 solidated with any appropriations for carrying out and ac21 complishing the purposes of this title for said fiscal year." 22 (2) By amending the last sentence of such section 114 23 (c) to read as follows: "The authorizations in this title are 24 limited to the period ending June 30, 1951, in order that the Congress may pass on any subsequent authorizations."

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(b) Section 114 of such Act is hereby further amended

2 by adding at the end thereof the following new subsection:

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"(h) of the amounts authorized to be appropriated for 4 carrying out the provisions and accomplishing the purposes 5 of this title and allocated for assistance to Germany the 6 President may transfer such amounts as he deems appro7 priate to any department or agency which may be used 8 without regard to other provisions of this title as the Presi9 dent may specify, for expenses not otherwise provided for, necessary to enable the President to meet the responsibilities 11 and obligations of the United States in connection with the 12 rehabilitation of occupied areas of Germany, including such 13 minimum supplies for the civilian population of such areas 14 as may be essential to prevent starvation, disease, or unrest 15 prejudicial to the objectives sought to be accomplished, and 16 the cost of such supplies, commodities, equipment, and serv17 ices as may be essential to carry out the purposes of this 18 subsection: Provided, That any such funds which are so 19 transferred may be expended either under the authority con20 tained in this subsection or under any provisions of law applicable to the department or agency to which so transferred and not inconsistent herewith: Provided further, That 23 such part, as may be agreed upon by the Secretary of State 24 and the Administrator for Economic Cooperation, of the 25 local currency deposited or to be deposited by Germany

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