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to it, because it contained the germ of an idea on the lines which we have been discussing for so many days, and that is the best form of future mutual helpfulness. There are just two paragraphs that I would like to read : " ' Detailed propositions concerning the implements to be imported have been submitted by the Hungarian Government in a memorandum to the UNRRA Council on 15th June, 1946. The main items of the proposed imports were : live-stock ; tractors ; agricultural machinery and tools ; materials required for the reconstruction of an industrial plant which formerly produced about 50,000 tons of nitrogenous fertilizers per annum, and which can at full capacity produce 80,000 tons per year.' " And here is a proposition : —■ " ' The Hungarian Government is willing to assume the obligations of contributing gratuitously to the food supply of Europe by delivering agricultural products to the value of the imports of the agricultural implements requested.' " I want to commend the Hungarian delegation for its vision in submitting such a proposition, which is most interesting, and to assure the Hungarian delegation of the support of the Administration in aiding and making any such arrangements that may be possible to carry out the purpose of this proposition." Liquidation or UNRRA When in due time UNRRA is ended, it may have some unexpended funds. Reference has been made above to the proposal that an International Children's Fund be the residuary legatee in such an event. In his opening address the Director-General recalled that — " UNRRA delivers its supplies to the Government of the receiving country, which distributes through the regular channels of trade. After deducting all costs of distribution there necessarily should be some net proceeds, and these are reserved for further use, by the terms of UNRRA agreements." He cited some actual or expected " surplus sales fund " amounts —such as Czechoslovakia, $40,000,000 to $50,000,000; Italy, $200,000,000; Ukraine, 1,020,000,000 roubles (" there is no exchange rate ") ; Yugoslavia ("I want to congratulate Yugoslavia," said Mr. La Guardia, " Yugoslavia has been most efficient in its distribution system ; it has no black market; and there is a present fund of $90,000,000 from commodity sales "). Special reference was also made by him to the excellent work in Italy, with funds from local sales, in a campaign against malaria. The Director-General continued : " The UNRRA agreement in each country calls for a control of these funds .realized from the sale of supplies, and provides that they may be used for welfare and medical services and for rehabilitation. I recommend an agreement with these countries that these funds may be used as a revolving fund for industrial and agricultural rehabilitation ... In this way UNRRA's service and usefulness would continue long after we have ceased our field activities." At the end of the Geneva session, despite opposition by the U.S.S.R. and receiving countries, a resolution was adopted in the following terms : " Whereas " (i) Resolution 14, Section 19, and the various agreements between the Administration and the recipient Governments contemplate the utilization for relief and rehabilitation work of sums equivalent to the local currency proceeds from the sale of supplies furnished by the Administration ; and " (ii) Such agreements also provide for consultation between the Governments and the Administration in the planning and execution of such relief and rehabilitation expenditures ; and

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