March 29, 1949
S - The Secretary THROUGH: S/S - Mr. Lucius D. Battle ILS - Mr. Cleon O. Swayzee
Secretary's Conference with James B. Carey, Secretary-Treasurer, CIO and Michael Ross, Director of CIO International Department
A. North Atlantic Pact - The Secretary may desire to take this occasion to emphasize the importance of CIO support for the North Atlantic Pact.
Comment - The CIO has already issued a press release supporting the North Atlantic Pact and with encouragement would, we think, testify in its behalf before Congress.
B. Issues Probably to be Raised - The CIO representatives may raise the following specific issues:
1. Spain
(a) Loans - They may protest any economic aid to bolster Franco.
Department position - Continue to withhold approval of government loans until Spain relaxes restrictions on trade with U.S. and becomes a better credit risk. As for private financial institutions Department neither approves nor disapproves; American banks and business organizations are completely free to grant loans or credit if they desire. This is what Department told Chase National Bank before it made its $25 million dollar loan.
(b) Execution of Trade Unionists - They may refer to charges that non- Communist trade unionists are being executed or given jail sentences by the Spanish Government.
Department position - We assume no responsibility for Spanish Government activities. On humanitarian grounds we may make informal representations to the Spanish Government, as other Embassies at Madrid have on occasion done. No doubt jail and death sentences have been meted out to some non- Communist trade union opponents of Franco as well as to Communists - all usually charged with being Communists.
2. Occupied Areas - They may repeat criticism of labor policies of both MacArthur and Clay. AF of L leader (James Killen, Pulp and Sulphite Workers) resigned as head of SCAP labor section in protest against MacArthur's order to Japanese Government to curtail collective bargaining rights of public service employees. The CIO has supported the position taken by Mr. Killen at the time of his resignation. They may request Department's support for sending a trade union advisory group to Japan to make recommendations on labor policy in that country. Labor Department is promoting this move.
Department position - Department is generally favorable to proposed trade union mission to Japan unless SCAP or Department of Army sees overriding objections.
Clay has been condemned for vetoes of German Laender social legislation; opposition to labor consultation in general economic planning; failure to restore fully and sooner trade union properties and assets taken by Nazi Government; maintenance of Nazis in strategic posts; general arms'-length policy toward labor. The CIO may make a special plea to avoid return of Ruhr industries management to former management officials, and for labor representation in Ruhr industries administration.
Department position - Labor policy, along with other occupation policies in Germany, now under general review preparatory to possible takeover by Department of responsibility for administration of Germany. Department and U.S. position favors trade union consultation in economic affairs - in principle - On political grounds we have through USPOLAD urged - unsuccessfully - against vetoes by General Clay of works council legislation.
3. Anti-Communist International Labor Federation - With the withdrawal of the CIO and British TUC from the WFTU, negotiations for participation in a new democratic trade union international are now going on between AF of L and CIO. Negotiations have been unproductive so far because of reluctance, for personality and prestige reasons, of AF of L to participate with the CIO in new international. AF of L International Affairs Committee is meeting March 30 to formulate its position. TUC delegation is now in the United States to talk with both AF of L and CIO but intends to avoid becoming mediator between the two. While agreement among the three trade union groups would assure a new international, immediate prospects depend upon AF of L decision, and perhaps CIO willingness to accept less than equal status with AF of L.
Department position - We would welcome creation of an international in which CIO, AF of L and American railway labor organizations would participate. We regard the creation of such an international as important. It would give support to U.S. policy aims, help to strengthen democratic trade unions and help to counter Communist-WFTU drives especially in colonial and semi-colonial areas. We recognize that this is primarily a question for the labor organizations and not for Department action.
ITP:ILS:DLHorowitz:jk ITP:ILS:VRLorwin:jk
Cleared WE, FE, UNE, PL for specific points covered in March 8 memo on same topics; GA, ITP