A—2a

it must be emphasized as the main basis of all its work ; $2,937,000,000, say £734,000,000 sterling, is a substantial amount. On the possible availability of military surpluses of medical stores a resolution was passed : " The Council, recognizing the continued need for assistance in the field of health and medical services, and being informed that there may be surpluses of medical stores and equipment in certain countries, requests the Director-General to invite Governments and private organizations, such as the Eed Cross and the Bed Crescent, to make such supplies available to the administration to assist in the completion of its work." Austria A more controversial issue was raised by the Director-General when (recalling a resolution—No. 91 —passed at the fourth session) he referred to conditions in Austria : —■ " Austria," said Mr. La Guardia, "is an occupied country ; there are four armies of occupation there. The very purpose and intent of UNRRA is inconsistent with military occupation . . . Resolution 91 specifically provided that all indigenous food and supplies in a receiving country must be used for the economy of that country ... In the zone occupied by the U.S.S.E. there is production of oil —crude petroleum. Ido not question the right under the Potsdam Agreement —if it so provides, Ido not know—for the Russian Army to take that oil, but if it does, it is inconsistent with the rules and regulations and the law of UNRRA, and the differences ought to be reconciled by the appropriate international authority." The Director-General referred also to large areas of cropland in the Russian zone requisitioned and occupied. The U.S.S.R. objected to the inclusion of this subject in the agenda ; after long discussion in the General Committee the United States delegate withdrew his proposal for so including it as a specific item ; but he presently spoke frankly, critically, and in public session backing up the Director-General. Similarly, the U.S.S.R. delegate repeated his protest against raising this, as he claimed, extraneous and political matter, before UNRRA. The United Kingdom delegate looked to the signing of a peace treaty with Austria and the evacuation of armies therefrom as the one hopeful solution. On another occasion the observer for Austria, addressing the Council, said that his country's difficulties " will only cease when Austria has concluded a treaty with the United Nations which will establish a legal basis for her future." He reviewed Austria's prospects, particularly in regard to food, and spoke of the work of UNRRA in impressive words, some of which deserve to be quoted even in this short report: " UNRRA has given to the Austrian people some of the inspiration and the practical example they need if they are to help themselves and, before long, help others, and thus make their contribution to the peace of the world . " For a long time the people of Austria continued to believe that strings were attached to the relief provided by UNRRA, that repayment will have to be made, and that interest is charged for UNRRA's help. Slowly, however, they have realized that UNRRA has set an example which creates bonds of mutual respect between all partners in this great adventure of relief and rehabilitation. They have learned to appreciate the inspiration, the enthusiasm, the courage, and the patience that must have gone into the work of UNRRA . . . This Assembly and, above all, the contributing countries have set an example. Many Austrians want to follow this example. They hope, above all, that their country will soon be in a position to follow this example by soon making a worthwhile contribution to the solution of the difficulties which the world is facing. If they receive generous help in 1947, they hope they will soon cease to be a burden to their friends and be able to make their contribution to the welfare and peace of the world." (For full text, see Journal, Vol. V, No. 5, pages 44-46.) No action was taken, and resolution 91 remains as it was.

11