THE DISCHARGE OF OUR WORLD RESPONSIBILITY

Our world policy and our actions are dedicated to the achievement of peace

with justice for all nations.

With this purpose, we move in a wide variety of ways and through many

agencies to remove the pall of fear; to strengthen the ties with our

partners and to improve the cooperative cohesion of the free world; to

reduce the burden of armaments, and to stimulate and inspire action among

all nations for a world of justice and prosperity and peace. These national

objectives are fully supported by both our political parties.

In the past year, our search for a more stable and just peace has taken

varied forms. Among the most important were the two Conferences at Geneva,

in July and in the fall of last year. We explored the possibilities of

agreement on critical issues that jeopardize the peace.

The July meeting of Heads of Government held out promise to the world of

moderation in the bitterness, of word and action, which tends to generate

conflict and war. All were in agreement that a nuclear war would be an

intolerable disaster which must not be permitted to occur. But in October,

when the Foreign Ministers met again, the results demonstrated conclusively

that the Soviet leaders are not yet willing to create the indispensable

conditions for a secure and lasting peace.

Nevertheless, it is clear that the conflict between international communism

and freedom has taken on a new complexion.

We know the Communist leaders have often practiced the tactics of retreat

and zigzag. We know that Soviet and Chinese communism still poses a serious

threat to the free world. And in the Middle East recent Soviet moves are

hardly compatible with the reduction of international tension.

Yet Communist tactics against the free nations have shifted in emphasis

from reliance on violence and the threat of violence to reliance on

division, enticement and duplicity. We must be well prepared to meet the

current tactics which pose a dangerous though less obvious threat. At the

same time, our policy must be dynamic as well as flexible, designed

primarily to forward the achievement of our own objectives rather than to

meet each shift and change on the Communist front. We must act in the firm

assurance that the fruits of freedom are more attractive and desirable to

mankind in the pursuit of happiness than the record of Communism.

In the face of Communist military power, we must, of course, continue to

maintain an effective system of collective security. This involves two

things--a system which gives clear warning that armed aggression will be

met by joint action of the free nations, and deterrent military power to

make that warning effective. Moreover, the awesome power of the atom must

be made to serve as a guardian of the free community and of the peace.

In the last year, the free world has seen major gains for the system of

collective security: the accession to the North Atlantic Treaty

Organization and Western European Union of the sovereign Federal German

Republic; the developing cooperation under the Southeast Asia Collective

Defense Treaty; and the formation in the Middle East of the Baghdad Pact

among Turkey, Iraq, Iran, Pakistan and the United Kingdom. In our own

hemisphere, the inter-American system has continued to show its vitality in

maintaining peace and a common approach to world problems. We now have

security pacts with more than 40 other nations.

In the pursuit of our national purposes, we have been steadfast in our

support of the United Nations, now entering its second decade with a wider

membership and ever-increasing influence and usefulness. In the release of

our fifteen fliers from Communist China, an essential prelude was the world

opinion mobilized by the General Assembly, which condemned their

imprisonment and demanded their liberation. The successful Atomic Energy

Conference held in Geneva under United Nations auspices and our Atoms for

Peace program have been practical steps toward the world-wide use of this

new energy source. Our sponsorship of such use has benefited our relations

with other countries. Active negotiations are now in progress to create an

International Agency to foster peaceful uses of atomic energy.

During the past year the crucial problem of disarmament has moved to the

forefront of practical political endeavor. At Geneva, I declared the

readiness of the United States to exchange blueprints of the military

establishments of our nation and the USSR, to be confirmed by reciprocal

aerial reconnaissance. By this means, I felt mutual suspicions could be

allayed and an atmosphere developed in which negotiations looking toward

limitation of arms would have improved chances of success.

In the United Nations Subcommittee on Disarmament last fall, this proposal

was explored and the United States also declared itself willing to include

reciprocal ground inspection of key points. By the overwhelming vote of 56

to 7, the United Nations on December 16 endorsed these proposals and gave

them a top priority. Thereby, the issue is placed squarely before the bar

of world opinion. We shall persevere in seeking a general reduction of

armaments under effective inspection and control which are essential

safeguards to ensure reciprocity and protect the security of all.

In the coming year much remains to be done.

While maintaining our military deterrent, we must intensify our efforts to

achieve a just peace. In Asia we shall continue to give help to nations

struggling to maintain their freedom against the threat of Communist

coercion or subversion. In Europe we shall endeavor to increase not only

the military strength of the North Atlantic Alliance but also its political

cohesion and unity of purpose. We shall give such assistance as is feasible

to the recently renewed effort of Western European nations to achieve a

greater measure of integration, such as in the field of peaceful uses of

atomic energy.

In the Near East we shall spare no effort in seeking to promote a fair

solution of the tragic dispute between the Arab States and Israel, all of

whom we want as our friends. The United States is ready to do its part to

assure enduring peace in that area. We hope that both sides will make the

contributions necessary to achieve that purpose. In Latin America, we shall

continue to cooperate vigorously in trade and other measures designed to

assist economic progress in the area.

Strong economic ties are an essential element in our free world

partnership. Increasing trade and investment help all of us prosper

together. Gratifying progress has been made in this direction, most

recently by the three-year extension of our trade agreements legislation.

I most earnestly request that the Congress approve our membership in the

Organization for Trade Cooperation, which would assist the carrying out of

the General Agreement on Tariffs and Trade to which we have been a party

since 1948. Our membership in the OTC will provide the most effective and

expeditious means for removing discriminations and restrictions against

American exports and in making our trade agreements truly reciprocal.

United States membership in the Organization will evidence our continuing

desire to cooperate in promoting an expanded trade among the free nations.

Thus the Organization, as proposed, is admirably suited to our own

interests and to those of like-minded nations in working for steady

expansion of trade and closer economic cooperation. Being strictly an

administrative entity, the Organization for Trade Cooperation cannot, of

course, alter the control by Congress of the tariff, import, and customs

policies of the United States.

We need to encourage investment overseas by avoiding unfair tax

duplications, and to foster foreign trade by further simplification and

improvement of our customs legislation.

We must sustain and fortify our Mutual Security Program. Because the

conditions of poverty and unrest in less developed areas make their people

a special target of international communism, there is a need to help them

achieve the economic growth and stability necessary to preserve their

independence against communist threats and enticements.

In order that our friends may better achieve the greater strength that is

our common goal, they need assurance of continuity in economic assistance

for development projects and programs which we approve and which require a

period of years for planning and completion. Accordingly, I ask Congress to

grant limited authority to make longer-term commitments for assistance to

such projects, to be fulfilled from appropriations to be made in future

fiscal years.

These various steps will powerfully strengthen the economic foundation of

our foreign policy. Together with constructive action abroad, they will

maintain the present momentum toward general economic progress and vitality

of the free world.

In all things, change is the inexorable law of life. In much of the world

the ferment of change is working strongly; but grave injustices are still

uncorrected. We must not, by any sanction of ours, help to perpetuate these

wrongs. I have particularly in mind the oppressive division of the German

people, the bondage of millions elsewhere, and the exclusion of Japan from

United Nations membership.

We shall keep these injustices in the forefront of human consciousness and

seek to maintain the pressure of world opinion to fight these vast wrongs

in the interest both of justice and secure peace.

Injustice thrives on ignorance. Because an understanding of the truth about

America is one of our most powerful forces, I am recommending a substantial

increase in budgetary support of the United States Information Agency.

The sum of our international effort should be this: the waging of peace,

with as much resourcefulness, with as great a sense of dedication and

urgency, as we have ever mustered in defense of our country in time of war.

In this effort, our weapon is not force. Our weapons are the principles and

ideas embodied in our historic traditions, applied with the same vigor that

in the past made America a living promise of freedom for all mankind.

To accomplish these vital tasks, all of us should be concerned with the

strength, effectiveness and morale .of our State Department and our Foreign

Service.

Another guide in the preparation of the Administration's program is:

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