refugee-problem-in-hong-kong-and-macao — Page 3

been estimated at anywhere from 60,000 to 70,000. The men to whom
I spoke told me there were at least 30,000 to 40,000 people waiting in
villages and on illsides on the Red Chinese side of thefrontier look
ing for a chance to slip into the crown colony.
Little groups of peoplefrom the villages would sit around where
they examine these buses and watch them taking them off. Some of
the refugees told me that the Red guards were sympathetic to them
and turned their backs on them when they saw them escaping.
Now, there is no denying that the Hong Kong Government, our own
U.S. Government, through its Far East refugee program , the volun
 REFUGEE PROBLEM IN HONG KONG AND MACAO 35

tary foreign relief agencies, and the indigenous agencies of Hong
Kong have done an amazing job in meeting the problem of the more
than 1 million Chinese refugees who are inHong Kong and Kowloon
at the moment.
When I was there in 1951, practically all of the refugees were liv
ing in makeshift huts of cardboard and tin all over the hillsides with
out anything inthe way of sanitation, schools,churches, dispensaries,
hospitals, and the like. Today, as you know , hundreds of thousands
of them are nicely housed in Hong Kong. There are roads and sew
ers, schools and churches, hospitals and dispensaries, and almost any
thing you want to mention for the welfare and the health of the
people. Practically everyone is employed even though wages are low.
More than anything else, the people are happy and contented in their
freedom .
It is true that there are still thousands of them living in makeshift
huts. In fact, you can stand in the foyer of the beautiful new hospital
of the Maryknoll Sisters which , incidentally, was erected with help
from our own Government and the HongKong Government in Kow
loon and lean out the window and touch the huts of refugees in which
life goes busily on . However, all of these people have hope that they
will be able to obtain the better type of housing that so many of their
friends andneighbors now enjoy.
I recall that in the early 1950's the situation looked almost hopeless
to the Hong Kong authorities. They refused to face the fact that
these refugees were going to be with them for a long time to come.
The voluntary agencies on theother hand had a more realistic attitude
about it. We began to build small cement houses for some of the
refugees; we erected schools, dispensaries, social centers and, of course,
churches. Gradually the Hong Kong Government and our own U.S.
Government began to help us with the housing. Then finally the
Hong Kong Government faced the situation squarely and began to
developpublic housing on a broad scale. The housing situation is
far fromperfect today,but itis a. far cry from that of 1950.
In those early days, the Chinese refugees themselves, industrious
and self-reliant as they are, began to build up small industries. To
day these have been expanded and there are industries of every nature,
small and large, in this bustling metropolis. I am only saying all
this toprove that no situation is hopeless.
In those early days of May, Hong Kong was threatened with an
other on -rush of halfmillion refugees. Someone estimated that with
an expenditure of $100 million housing and roads and sanitation and
all the other necessary facilities could have been erected for these
500,000 refugees in the stillundeveloped sections of the Crown Colony
just outside of Kowloon. That would have meant an expenditure of
$ 200 a person , little enough to save a life and possiblythe lives of
thousands of families still in China.
I think the refugees would have housed themselves in temporary
huts just as the refugees of the late 1940's had done while this new
development was taking place. However, I suppose that sounds like
too easy a solution for the problem .
I think the events of the last month have demonstrated that the
Chinese refugee problem in Hong Kong must be looked upon as an
international one. I think our Government should encourage the
36 REFUGEE PROBLEM IN HONG KONG AND MACAO

other nations of the free world — incidentally, I cabled that to Presi 1
dent Kennedy and to Secretary Rusk — to look upon it as just such .
Perhaps it may even be desirable to set up another international
refugee organization similar to the old IRO to provide all that is
necessary for aa broader resettlement program for the Chinese refugees
who are presently in Hong Kongand Kowloon .
We have made a significant token gesture in agreeing to make it 1

possible for some 5,000 of these refugees to come to the United States
at the present time. It is hoped that Taiwan, Canada, Brazil, and
Paraguay will follow through no their offers to provide refuge for
additional numbers of them . Their transportation to these countries i

may present a problem and that is why I think the development of a
United Nations refugee organization to handle this phase of the prob 1
lem is essential .
Incidentally, I have a N.C.W.C. news service release of the 4th of
June, which says that the Taiwan Government is now preparing to 9

take about 30,000 of these refugees. One of our Government officials 1
said that the economy in Formosa could absorb between 100,000 and 1
200,000 of them without the economy being affected. Well , I ques
tion that. There is not too much economy in Formosa to be affected
anyway, but certainly, they can absorb 30,000 and possibly eventually
additional thousands.
However, I don't think immigration is the complete answer to the
problem , and even though much has been done, still more can be ac +




complished in the way of better housing and care of the refugees in
Hong Kong and Macao. The voluntary agencies are doing a fairly
good job of supplementary feeding with U.S. surplus food for the
poorest of the refugees. Their efforts are limited to some extent by
the amount of money that the Hong Kong Government and our own
provide for the processing and distribution of such foods. A little
more governmental help in this direction would mean much also .
Finally, I agree with those who feel that aa revision of our own basic
immigration law along the lines that Senator Hart has suggested in
his bill , would make it possible for the United States to offer its lead
ership in such crises on a more sound and salutary basis than is now
done on an emergency level.
These new refugee problems which are developing all over the
world are not ones of easy solution . However, the lives of hundreds
of thousands of human beings, made to the image and likeness of
God , like ourselves, are involved and no human effort should be
spared to find a solution to them . The nations of the free world met
the test before, when over 10 million people found themselves dis
placed in Europe after the last World War and I am sure they can
meet it again. Much of the leadership, however, will have to come
from our own Nation .
Senator Hart, I appreciate the opportunity given me to put that on
the record . I thank you.
Senator Hart. Bishop Swanstrom , we appreciate your help to the
committee in putting it on the record.
A number of things in the statement will continue to provide help
ful counsel , but one of them , I think, is of special value at the mo
ment - the reminder that you include on the situation of the early
fifties. Ever so many people in the last couple of weeks, including
 REFUGEE PROBLEM IN HONG KONG AND MACAO 37

editorial commentators, have made the point that this is a hopeless
situation. We should respond, they say, but largely with sympathy,
because, really , there are just too many Chinese.
>

Bishop SWANSTROM . I would like to say something, not for the rec
ord, though, if I may.
Senator Hart. Of course, you are in the presence of the press, so
we cannot go off the record for them .
Bishop SWANSTROM . This would have to be off the record .
Senator HART. Off the record.
( Discussion off the record. )
Bishop SWANSTROM . In 1945, when we had 10 million refugees,
maybe 11 million, and then new millions of expellees being added to
them , if everyone had thrown up their hands then, and if you will
remember, we started to forcibly repatriate some of them , then
righteous voices were raised and that was stopped, and IRO was set
up and they said, “We will resettle those of them who want to be
resettled someplace else in other countries." With the help of IRO,
over a million of them were resettled. I know it is not an easy job,
but I do not think you are going to do it without some sort of inter
national machinery, because you have the whole process of transpor
tation, place reception, and something else.
May I throw one thing more in ?
Senator HART. Yes.
Bishop SWANSTROM . It is only symptomatic of what is happening in
other parts of the world. They have refugee problems developing
in all of these African Republics. We are about the only ones who
still say that the Yugoslav refugee problem is a serious one. There,
too, you have people escaping from a system. The argument is given
in Congress and other places all the time that they are economic
refugees. All right ; call them economic refugees, but they are escap
ing from an economic system under which they cannot live. That
is what we are up against in this modern -day world of ours. The
Europan refugee problem has gradually disappeared. We are getting
all these refugee problems— we have a new refugee problem down in
Laos. While I was there, I gave a priest a couple of thousand dollars
to feed for 2 months 6,000 refugees who had just escaped from
Laos into Thailand .
It might have been only the beginning of a new refugee movement.
In — well,why go intoit, I am taking too much of your time.
Senator HART. No. Go ahead.
Bishop SWANSTROM . But it is true, I see this thing as part of a
total world problem in this age we are living in. It is a tough one.
Senator HART. I was interested in your comment that in Congress,
particularly, we spend a lot of time debating the distinction between
an " economic refugee” and a “ political refugee.” You would, accept
-

ing the definitions that have been developed in the course of this
debate, describe the people whom you saw in Hong Kong as " eco
nomic refugees” !
Bishop SWANSTROM . I would be inclined to. Many of them are
" economic refugees.” Oh, they prefer to leave China anyway, but
they would stay if they could get sufficient food and aa livelihood for
their people. Most of the people I talked to laughed at the present
situation politically in China. I asked them , well,“ What doyou hear
about the efforts of the United States in the exploration of space ? "
38 REFUGEE PROBLEM IN HONG KONG AND MACAO


Well, they had heard all about the Russians. They heard a U.S.
man went up , but he only made sort of a token trip or something
likethat. They do not hear about what we are doing for the refugees
in Hong Kong or what we are trying to do for these African coun
tries, what we are trying to do for the Cuban.
So they know . Thethings they do not hear about — they hear about
them by word of mouth , of course, are the things that are being done
in the world but are hidden from them by their own Government.
But I would say “ economic refugees,” most of them , trying to escape
from a system that is breaking down.
Senator HART. You described the situation in a village, where the
villagers observed the local police stopping refugees and turning
them back . Was there any reaction to this on the part of the Chinese
who had settled in Hong Kong ?
Bishop SWANSTROM .I do not think I understand that completely.
Senator Hart. Well, specifically, when the Hong Kong authorities
stopped a group of refugees, the local Hong Kong people would ob
serve it. Whatwas theirreaction ?
Bishop SWANSTROM . Sort of a sad and pathetic one. They sat it
little groups by the roadside and watched these trucks being exam
ined. They saw the trucks going back, they felt kind of hopeless
about it.
I will tell you another one,though,off the record .
( Discussion off the record .)
Bishop SWANSTROM . I would say it was a feeling of desperation and
sadness. I would say there was a willingness on the part of - they
begged me to try todo something to prevent the Hong Kong authori
ties from stopping these people come across. Those million refugees
in Hong Kong would have absorbed those people just like the Cubans
in Florida absorbed their Cuban relatives and friends in the early
days. There would have been shacks going up all over if those people
had come in, you know .
Senator HART. Well, what about the reports we have seen in the
press of not only food shortages in Hong Kong, but аa water shortage
as well? Wouldn't this suggest difficulty in successfully absorbing
refugees. Have you any feeling about that ?
Bishop SWANSTROM . Well, I have to admit there was a water short
age,because in the middle of the day in your hotel, you would not get
much water. Well, with the ingenuity of man, I think you might meet
that one, too. I had not thought too much about it, but a few more
wells and so forth . I do not think the water did it. I think it was
largely a problem of their housing, roads, sanitation and so forth,
you see.
But, Senator, we spend millionsfor many things. With aа hundred
million dollars, you could just broaden the Kowloon colony. There
are 25 miles of land there . There are some farms and so forth , but
there is still plenty of land around Kowloon that could be developed.
As I say, that sounds like — it is not an easy solution, but it could
be done ; it was done before.
Senator Hart. What was your impression of the working relation
ship between the voluntary agencies in Hong Kong and the crown
colony authorities ?
 REFUGEE PROBLEM IN HONG KONG AND MACAO 39

Bishop SWANSTROM . Excellent, and between - the highest praise
for our own U.S. refugee program group there. Excellent. The
Hong Kong government,our ownGovernment, the voluntary agencies,
foreign ones, and the indigenous agencies, all working hand in hand.
It is really fine.
And you know , it is an answer to those who say that government
help cannot be extended nicely through voluntary agencies which
happen to have a religious character, you see. Our own Government
and the Hong Konggovernment have helped both the Protestants
and ourselves to erect fine hospitals and dispensaries in Hong Kong.
No one has questioned it. We are church -related agencies . But I
hear people say no state aid to the church, you cannot spend money
through a voluntaryagency that is church related. Well,, you have
the answerto it in Hong Kong.
Senator Hart. Almost as an aside — this may be useful someplace
down the road, although not necessarily in connection with a discus
sion of refugee matters — but you commented, and so did Mr. Mac
Cracken, on the distribution of our surplus food abroad. People
cite the fact that some of this gets into "black market " channels. They
say this is inevitable, it is normal, and from that they argue either
that we should continue the program or shut off.
What have you in your visits abroad, observed ?
What impression did you get ?
Bishop SWANSTROM . In Hong Kong in the early days, a black mar
ket developed because we gave people flour and corn meal in its natural
form and they did not have the meansto prepare it. Nowadays we are
converting flour and cornmeal into noodles and other things and feed
ing them that way and there is no attempt on the part of the people to
sell it because they need it for their own sustenance. We are giving
them foods that they can eat .
There is no organized black market in Hong Kong or Taiwan or any
place else. In Taiwan, where people are hungry, you give them the
foods in the same form .. Children are sick. They are going to go out
and sell some of the food in order to buy medicine for the sick child .
We are preventing that, even , nowadays, with the help of the Taiwan
Government. They recently passed a law making it a crime for anyone
to sell or buy any of the U.S.surplus food .
I would say there is a very limited, tiny black market sometimes.
Things are bound to get on to the black market if people exchange them
for something that they need more. But the important thing about
it, there is no organized black market in any one of those places. I
think that thing is blown up outof all proportions.
I wentall over the place while I was there. You cannot go into a
store in Hong Kong now and buy U.S. surplus food. Oh, you might
find an isolated store where .a number of people in аa. small community
sell it. I could not find any.
No, Senator, between our own Government, U.S. aid, between the
indigenous government and between the voluntary agencies and the
indigenous agenciesof the country, a superhuman effort is being made
to wipe out even a minor black market.
You raised - well, I do not want to go into the question of Taiwan.
Senator Hart. By all means.
40 REFUGEE PROBLEM IN HONG KONG AND MACAO

Bishop SWANSTROM. Well, there is a tremendous poverty all over
the island. About 8 months ago, our two governments, representatives
of the two governments concerned, representatives of the agencies got
together, set up a new ration card system and so forth, had the Chi
nese Government pass this law, and we are prepared to move ahead on
the basis of that now, don't you see . What they are doing, they are
eliminating these little hawkers, as they call them , who stand outside
a distribution center and try to buy the flour and cornmeal and milk
from the people, because they are no longer permitted by law and the
local peoplecanarrest themif theydo it now. I see whateverthreat
of a black market there was in Taiwan being gradually wiped out a
year from now . And I will fall on that statement a year from now if
I have to.
But, gentlemen, I talk tomen who are out distributing this food day
after day or week after week and they are making a superhuman effort,
you see. Now , as I say, we are converting the food into other forms.
We are converting the milk into liquid form . We are converting the
cornmeal and flour into noodles, even doughnuts and a few other pal
atable things, so that the people can eat them or use them immediately.
Of course, in order to do it, the voluntary agencies have not an
unlimited budget, either ; we need some help from governments in
order to do the conversion and do the distribution and so forth , and
we have been getting it.
Senator HART. One last question from me. Not frequently,, but
occasionally, we have been told of instances where Communists have
attempted to infiltrate the community in Hong Kong, the refugee
community. Have you any comment on that ?
Bishop SWANSTROM. I read it in the papers. Isaw no evidence of
it myself, but I have no doubt but that isdone. But, Senator, I say,
are we afraid of a few Communist agents in Hong Kong? The gen
eral masses of the people in Hong Kong want no part ofcommunism .
So of the few Chinese agents, they cannot put it in the light of the
story of the hunger and deprivation in China that the new refugees
arebringing into the colony.
You can talk to any refugee in the colony nowadays and they
know what is going on in China. They know that they were lucky
to get away from it and their friends and relatives are coming in and
telling them the true story.
It may be true. I was going to say something about it in my
statement, but I did not think it was necessary. I do not think we
should have too much of a fear of them . Youhave a security police
in Hong Kong which is as good as any in the world and they should
be able to ferret out these Communist people as they come in . I do
not think there is anything to it.
If they want to send them in, Mr. Senator, they can send them over
the border at night just like these other refugees that come over the
border, escape. They do not have to come in as part of a big surge
of refugees. They get into thecolony, come through Macao.
Andincidentally ,I think it is a mistake to think that this thing is
going to stop now . If the famine goes on in China, more people are
going to try to escape, and they are still trying to escape right now.
We had a letter from our manin Hong Kong yesterday saying that
some of them are still managing to find their way across. They
 REFUGEE PROBLEM IN HONG KONG AND MACAO 41

come through Macao every day in the week. So whether there will
be another big onrush of them , no one can tell, but it would not sur
prise me at all.
The Formosa Government thinks that there will be. They say that
the government feels certain that the present stoppage of refugees
in Hong Kong due to measures taken by the Communists is only
temporary. The government is therefore proceeding with prepara
tions for receptionof refugees.
I doubt if it has been stopped permanently, unless conditions im
prove greatly in China.
Senator HART. There is always a danger in saying this is your last
question. What you have just said suggests another one, not directly
related, however,to the problem in Hong Kong at the moment. But
what about food for Red China ? Let's assume, as you say, there is
a possibility that famine may develop in Red China. What should
our response be ?
Bishop SWANSTROM . Well, I must be honest ; I have not been able
to form a true opinion in regard to it. I spoke with a number of
people in Hong Kong and there was a divided opinion. Some felt
that you would be helping the Chinese Communist Government, that
maybe the people would prefer to suffer rather than help the Chinese
Communist Government. Others felt, well, here, a poor human being
is starving and no matter what the end result is, you should try to
help them. I must confess, I have not got a real, definite opinion
on it .
I would say in a humanitarian, Christian point of view, I would
do everything I could to bring food in to them . On the other hand,
in view of the political consequences, the danger of helping a Commu
nist government to grow stronger - I do not know . We had the same
question in regard to Cuba, you know .
Senator Hart. Well, at least your answer , Bishop, is helpful
Bishop SWANSTROM . Have you got an answer!
Senator Hart. No. At least your answer is helpful to those who
write us who do know absolutely what we should do.
Monsignor McCarthy, did you have something you wanted to add ?
Monsignor MoCARTHY. I have nothing to add, Senator ; thank you.
Mr. JOHNSON . Bishop Swanstrom , in one part of your statement,
you suggest that there is an actual shortage of food for purposes of
distribution. Did I understand you correctly ? We have had con
flicting reports on this. The immediate reaction , of course, to the
dramatic situation early in May, was that vast quantities of food were
going to be needed. Are there adequate surplus agricultural com
modities available for Hong Kong's needs ?
Bishop SWANSTROM . My answer to that is we could provide a better
ration to the people if we had the means of converting more of the
food into things that could not be sold, you see. Our ration at the
present timeis very limited formany of the people.
Mr. JOHNSON. You are speaking, now, qualitatively ?
Bishop SWANSTROM . Yes ; qualitatively. But everyone who needs it
is getting something. That is the only reason I say they could use
more if we had the means of convertingmore and the means, the finan
cial means of distributing it.
We would furnish a better ration to many people.
42 REFUGEE PROBLEM IN HONG KONG AND MACAO

Mr. JOHNSON. Would this be, for example, an increase in noodle
production and the reconstitution of milk, and probably a higher
amount of protein ? I assume the major part of the present diet is
starch .
Bishop SWANSTROM. That is right. All those in need , however, are
being covered at the present time.
Mr. JOHNSON . There is no starvation ?
Bishop SWANSTROM . No.
Mr. JOHNSON. The other thing I was interested in was the view
expressed that a similar situation, aswe are presently faced with in
Hong Kong, was solved in Europe. I do notknow the total number
of people who emigrated from Europe, but it was in excess of a million,
probably 2 or 3 million .
Bishop SWANSTROM . I think that is about right.
Mr. Johnson .One of the things we noticed was that following the
passage of the Displaced Persons Act in 1943, Canada increased its
quota , and Australia began admitting non-British people. But in
the case ofChinese refugees, there seems to be a different feeling.
Assuming the United States and other countries have the capacity
to admit additional people, to what degree do you think it possible
to provide opportunities for Chinese immigration, commensurate with
the inflow of refugees into Hong Kong, which over the past 10 years
has been around 50,000 a year ?
Bishop SWANSTROM . Ithink if the governments would get together
on it, it might be possible to assist places like Taiwan, Vietnam ,
Malaya, and places that have traditionally accepted Chinese, to absorb
more ofthem . Andthe Philippines, possibly, although I knowthat is
crowded already. We might open up some opportunities for them in
Latin American countries.
Mr. JOHNSON . Well, in essence, then , the program would call for
a shift from a relief operation to the stimulation of the economies of
the areas they would be resettling in ?
Bishop SWANSTROM . I think so.
Mr. Johnson. Hong Kong some years ago was a port. Now it is
an industrial center. If Taiwan wants to become a place of resettle
ment, it will likewise have to become an industrial area.
Bishop SWANSTROM . Right.
Mr. JOHNSON . And likewise other places.
Bishop SWANSTROM. Yes. Which can be done, though, you see .
Mr. JOHNSON. Well, in effect, it might mean we would have to shift
our operation from one of relief to a greater emphasis on economic
development as envisaged under the foreign aid programs.
Bishop SWANSTROM . That is right. And it is in line with the food
for peace program , it is in line with the title II program - use more
of our food for work projects to help make the peopleself-sustaining.
You can oversimplify it, but there are thousands of little things that
can be done in Taiwan, like opening up roads, improving irrigation
through the driving of wells, all of which is being done at the present
time by voluntary effort, which little help from government of any
kind, you see.
The missionaries have changed their whole tack from a purely
missionary effort to what you might call a social effort, the social
mission of these missionaries. AndI talked to them. They are help
 REFUGEE PROBLEM IN HONG KONG AND MACAO 43

ingto cut little roads so that men can bring their produce to the market
easier ;driving wells, building little irrigation ditches and so forth.
With the help of the U.S. aid program and the local government
itself, much more could be done in that direction, you see, using title
II foods and using some help.
I honestly think - I am expressing too many opinions— we do not
do enoughto bring our foreign aid program down to the level of the
people. That is the thing we have to do and then you will help bring
about a better absorption of these people.
Senator Hart. I have heard that opinion expressed before, too.
Mr. Nishimura, do you have questions ?
Mr. NISHIMURA. Bishop Swanstrom , in your observation in Taiwan ,
how many thousand Hong Kong refugees can Taiwan absorb for
resettlement purposes ?
Bishop SWANSTROM . I would say at the moment, 25,000 with no
difficulty. Gradually, up to 100,000, with the type of assistance we
have just been talking about, get the people established on farms and
in little industries andso forth .
Mr. NISHIMURA. Up to about 100,000 ?
Bishop SWANSTROM . Yes ; and I say that because I think the Chi
nese Government in Taiwan would agree with that.
Senator Hart. Mr. Ziemba, do you have any questions ?
Mr. ZIEMBA. No.
Bishop SWANSTROM . Thank you. I hope I have not taken too much
time.
Senator HART. I had indicated the subcommittee would next hear
from Mr. Richard Reuter. But I understand Mr. vanden Huevel
has an appointment downtown soon. Perhaps he has already left.
Our next witness is Mr. Richard Reuter, the directer of CARÉ.
STATEMENT OF RICHARD REUTER, EXECUTIVE DIRECTOR OF
CARE, INC.
Mr. REUTER. As executive director of CARE , I have had the oppor
tunity to be conversant with the evolving HongKong picture over
the years since World War II. The CĂRE office in Hong Kong
consists of two men from our American staff and six local employees.
We work closely with the British authorities and find them most
cooperative and helpful. The donors to CARE have exhibited over
these years a sincere interest in the refugees who have crowded this
free world outpost.
May I provide for the committee a report of the activities of CARE
in Hong Kong and Macao since we started regular operations there
in 1954 ?
Senator HART. The committee will receive that for the files and wel
come it.
( The document referred to will be found in the files of the sub
committee.)
Mr. REUTER. As background information on any on-going people
to-people program , this may be useful for your deliberations. Cer
tainly following Bishop Swanstrom's thorough report, it is not nec
essary to take the committee's time now for the details. I would be
most happy, after these few words, to attempt to answer any ques
tions that are within my competence.
44 REFUGEE PROBLEM IN HONG KONG AND MACAO


Two weeks ago, as the influx of refugeesreached a new high , CARE
authorized its stockpile of food and blankets to be used as required
to aid the most needy of the newcomers. This was distributed through
special emergency machinery set up by the Hong Kong Government
and was part ofa pool arrangement by all of the agencies working
jointly. Within a week, the CARE board of directors representing
the 28 major American welfare,social and fraternal organizations
which are member agencies of CARE allocated an additional $100,000
from net margin funds for emergency refugee aid in Hong Kong.
This sum is available when we have the appropriate project.
This additional $175,000 brought the total of CARE aid for Hong
Kong to over $ 6,400,000 since 1954. Quite naturally the bulk of this
CARE aid was in the form of food and it includes some $4.3 million
worth of U.S. surplus foods distributed under CARE's so-called food
crusade program and an additional $ 1,114,000 worth of food pur
chased by CARE , including rice, tea, pickled cabbage, and other items.
I might interpolate just a comment here, in light of your question ,
Mr. Chairman, in regard to the use of surplus commodities.
One of the factors that we found in our experiences in Hong Kong
was the difficulty of utilizing foods unfamiliar to the refugees for
family feeding operations. The flour distributed in the form of
flour alone, and milk powder, was not satisfactory to a family that was
not used to its use. It created difficulties in proper utilization. We
have found these sameitems distributed through a controlled situation,
a Kaifong school distribution or through an institution, accomplished
the proper goal. But this is the reason that, despite the availability
of surpluses, we still purchased over a million dollars' worth of food,
much of it in the Hong Kong market, because it was typical food that
would be the type used by the people normally. Over the years, our
experience has been that it is very difficult to change dietary habits,
regardless of the pressure for food .
CARE is therefore continuing this purchasing policy , as well as the
use of American agricultural commodities wherever possible. Under
agreement just reached with the U.S. Department of Agriculture
and AID , some 10,000 needy children and 12,000 adults in hospitals
and other institutions will be the recipient on a regular basis of
powdered milk, cornmeal, vegetable oil, and other foods as they are
available during the coming fiscal year.
In addition, CARE has distributed some $290,000 worth of blankets,
clothing materials, and other supplies, usuallyto fire victims and on
an emergency basis. Some of these, incidentally, are received as cor
porate gifts from American manufacturers, who have shown a con
siderable interest in this problem .
Most importantly, we believe, however, in terms of strengthening
the capacity of Hong Kong to withstand the continuing threat of eco
nomic warfare is the $540,000 which has been made available by donors
for so-called self-help assistance which CARE has been able to bring
to the people in the colony. This includes tool kits, supplies for fish
ing cooperatives, for agriculture, supplies for public health and social
welfare centers, cooperation with ongoing programs. The unique as
pect of the CARE self-help program in the economic field is that its
beneficiaries are paying back over a period of time the cost of the orig
inal equipment. Such moneys go into a revolving fund administered
 REFUGEE PROBLEM IN HONG KONG AND MACAO 45

by the cooperative neighborhood improvement association or by their
Kaifong so that other members may be able to purchase much needed
equipment. We feel this is a continuing factor in maintaining the dig
nity of the recipient and giving him a sense of participation in the
solution of his own economic problem .
A perfect illustration of this is a fisherman's settlement at the island
of Ap Chau,in Mirs Bay, nearthe northeastern corner of the newer
territories . Some 60 fishermen's families were settled on this little
island after they escaped from the mainland. The story is detailed in
this report and it is an encouraging story of government and private
effort. Because this island, which had previously been uninhabitable,
was made satisfactory for these families by the provision of a water
line which was put under the bay from the mainland as a joint effort
of British Government engineering support, USEP funding, and
CARE voluntary participation. We, ourselves, put almost $20,000
into this program , and these families are today living in a degree of
self-sufficiency that would have seemed impossible previously.
Not included in the CARE Hong Kong total of $6,400,000 is an ad
ditional $ 431,000 worth of refugee aid so far distributed in neighbor
ing Macao, including specifically some $405,000 worth of U.S. surplus
foods and $ 20,000 worth of food purchased by CARE and about $ 5,500
worth of self-help supplies. We have not been able to develop the
same type of imaginative self-help programing in Macao. The im
portance of Macao, however, as a halfway stop on the escape route,
has also been recognized by the U.S. Government, and the U.S. Refu
gee and Migration Unit in Hong Kong has recently earmarked some
$ 430,000 for food, blanket, and other emergency supplies to be dis
tributed by CARE among escapees in Macao and an additional $12,000
which we are quite proud of, was allocated to a dining room and
noodle plant in Macao which will serve some 3,000 needy children
daily with a hot meal under the food -for-peace program. These RMU
programs, I should add, are in addition to the $690,000 spent over the
past 6 years by this unit of the State Department for various projects
and emergency fire victim aids administered by CARE in Hong
Kong proper.
This matter of Hong Kong, concluding, sir, is a deeply emotional
question . Americans want to help refugees from communism , but
even more deeply, from my experience, I would say that we are moved
as Americans by need, human need , regardless of the reason. The
plight of the homeless, the pathetic, but the energetic refugees in
Hong Kong stirs our sympathies. Yet I do not feel, in carrying out
comment on your discussion earlier, that there is a solution short of an
international political solution or short of aa solution within mainland
China itself. Hong Kong, Formosa, the Pacific islands, the Western
World generally, cannot possiblyabsorb all the peoplewho apparently
are eager to leave China. But I think the danger of this position is
that it should not be taken to mean that we should not do what we
can in terms of resettlement for those individuals we can help.
The situation, of course , is very different from that other former
doorway - Berlin. There, refugees from East Germany could look
forward to assurance for establishing a new life in West Germany.
It seems to us at CARE that especially because there does not appear
to be a reasonable hope for resettlement of significant numbers of
87544462
46 REFUGEE PROBLEM IN HONG KONG AND MACAO


either those now in Hong Kong or the millions more who would be
there, that we have a responsibility to try tomake the lot of the human
being therewhom we can reach more bearable.
I would like to include for the record that we feel the British au
thorities have done a most commendable job. I think, too, that
USEA, the refugee and migration unit of our State Department
should particularly be commended for the imagination and the
human consideration that they have put into carrying out their as
signment. But nowhere have the voluntary agencies done a larger
share of the relief job than in Hong Kong.
The churches of America, as you have heard this morning, have con
sistently and persistently sacrificed to maintain_large -scale, well
staffed , effective programs. The International Rescue Committee,
World University Service, and similar nonsectarian groups have im
portant programs. Although each works in its own way, these Amer
ican voluntary efforts have been surprisingly well coordinated . Yet
all of us together, both public and private sector assistance, have, it
seems to me ,as the most important reason for effectiveness, the energy,
the patience, the inherent skill of the Chinese people themselves. They
arewonderful people to work with. I think this is a reason that, more
and more, CARE is putting its resources and energies, which are,
ofcourse, limited, into cooperative development schemes, into fishing
villages and farmer assistance and cottage industry. The result of
these programs is to help raise the dignity of those individuals.
These projects may not solve the overall problem — they will not
solve the overall problem . But they can solve the individualproblem
and with enoughof these we may materially ease the overall human
burden . I believe that we can do no less and be true to ourselves.
Senator Hart. Mr. Reuter, thank you for a fine statement. I am
sure that those who read it will recognize again the substantial con
tribution that CARE has made to a part of the world that many of
us will never get to. For that the committee certainly thanks you.
On a narrower question ,What is the present regulation or law with
respect to the sending of CARE packages into mainland China ?
Mr. REUTER. There is not thepossibility of sending CARE pack
agesas such into mainland China. I am not familiar with all of the
regulations, which would be postal regulations, for providing pack
ages. I am sure the committee staff would have much more informa
tion on that regulation, but CARE itself has pursued the policy that
it does not work in any area of the world in which it cannot have
agreement by the host country to its basic provisions of operation .
We feel we should not operate in acountry unless we have been in
vited to work there and that wewould have the opportunity of utiliz
ing our own staff for the handling of such distributions. This has
never been a possibility in mainland China, although we did operate
briefly in Kwantung Province just before the Chinese Communist
takeover, and at that time made overtures toward continuing a pro
gram there which were never answered .
Senator Hart. Is this also the situation, as far as CARE is con
cerned, in those European countries which are behind the Iron Cur
tain ?
Mr. REUTER. We have it at the present time an operation that is a
very effective operation in Poland and in Yugoslavia. At least, we
did have such up until last night. These programs are with the
 REFUGEE PROBLEM IN HONG KONG AND MACAO 47

participation of CARE American staff and have, it seems to me,
provided a magnificent opportunity for individuals in the United
States to indicate a concern for individuals in those countries, and
the relationship, because it has not been done on a political basis,
and because it has no other purpose than to exemplify this very legiti
mate concern, has had a remarkable effectiveness. And I would just
like to add in the record that our experience in both countries has
been one of strict adherence to the provisions of the contract which
has allowed us to operate with our own staff and with clear identifica
tion as to the source of the donor.
Senator HART. I appreciate getting that statement. I am not sure
that if it had been available 24 hours ago, it would have made any
difference in the Senate voting. But it is an additional reason why
I hope that the action taken by the Senate yesterday with respect
to limiting the President's authority in distribution of mutual aid,
and even Public Law 480 commodities, will not be agreed to by the
House .
Mr. Johnson . Mr. Reuter, I would like to ask one question, which
I think I also asked Mr. Devine last year. Perhaps your experience
in this last year has been helpful. How much potentiallies in the
further development of the self-help projects which CARE has done
so much in pioneering in termsof refugees, and particularly, of course,
I am thinking of the Hong Kong situation. We are familiar with ,
and had rather extensive testimony, on the fishing village which
CARE established in Hong Kong. I am wondering how much fur
ther opportunity there is for similar help by CARE .
Mr.REUTER. I think this can be materially increased. The ability
to organize a cooperative effort there has been so successful because
of the nature of the people participating and because of the support
ing position of the British authorities who provide machinery for
the regulation of cooperatives which is properand provides backstop.
Because of this, I think that that type of programing can be mate
rially increased. Each time you improve the economic position of a
small group of these people, I think that you also improve the poten
tial for the children to go to school, so that you start to bring a new
generation with skills that in turn improve the economic potential
wherever they may find their future life. The tragedy is that the
inherent skill which the Chinese brings as a refugee is so frequently
not supported by technical skills. It is not necessarily supported by
an educational background that allows him to write, and in the com
petitive picture thre, the availability of education is of great im
portanceto the economic future of the people. Now , I think these
can be materially increased, but unfortunately , this is not the kind
of thing that can be necessarily projected by the amount of money
available. If they are going to be legitimately useful, they must
spring from the people themselves to a very large degree. And while
you can encouragethis, you cannot be sure that you are going to have
the project unless the people really wanted it.
Mr. JOHNSON . This leads to my next question, and that is, could the
U.S. Government, through any of its programs, do anything to stimu
late, to assist, or to promote such activity ?
Mr. REUTER. Not only canthey, but they have been . Our experi
ence has been, and I mentioned in my prepared testimony, particularly,
48 REFUGEE PROBLEM IN HONG KONG AND MACAO


the imagination that has been shown by the RMU people, because it
seems to methat in aa situation such as this, we do require imagination.
At many points, the solution is not going to be the standard approach.
It may require a new method to accomplish our goal. And I have been
particularly pleased by the willingness to consider new approaches
and by their willness to provide financing for pilot efforts in this
in this direction .. I am certain that additional funding will be useful,
but in honesty, I will have to report that there has not been a restric
tion on funding that has materially held us back in the operation.
Mr. JOHNSON. I notice Mr. Richard Brown sitting in the back of
the room .I am sure he will appreciate your comments.
Mr. DE HAAN . I have a general question here which in your answer
you may or may not apply to Hong Kong. But what is your view
of the position of the voluntary agencies in the overall pattern of
American foreign policy ? What are your feelings on this matter,
as to what role the agencies play ? Do they play a great role, a small
role ?
Mr. REUTER . I have aa feeling on this, that could keep the committ
much longer than they wish to stay. I would just try to summarize
that by saying that I feel strongly that the voluntary agency is a re
flection of the natural American pattern of meeting itsresponsibili
ties, that in many instances, Americans in our own country and in
terms of the international scene, find a satisfaction in making use of
an organization of their choice and their control to undertake their
program . I think that it has been one of the magnificent stories of
the postwar period, the way the American public has made use of its
agencies, through its church groups and throughother organizations,
and I think groups such as the Federation of Women's Clubs and
Lions Clubs are not often recognized for the amount of activity they
do undertake in the international field . I think this has been a
strength, because it also helps to interpret to the Congress the
concerns .
Specifically, IΙ would say that one of the great values to the CARE
program has been the ability to undertake pilot efforts until wefind
new techniques. Then these can often be better supported by the
large scale financial abilities that can only be made available through
Government moneys. But this ability to represent the concern of
Americans without other reason is of great value.
Much of what we are doing in the world today, I think, is trying to
change the attitudes of people, and we don't know many of the answers
in this area .
Mr. De Haan . I have just one more question. Would it be correct
to assume from your testimony, that you believe the best approach to
the Hong Kong situation is through the local integration of the
refugees — through the boosting of the economy so that it can absorb
the talents and the potential of the refugees !
Mr. REUTER. I am only saying this within my frame of competence .
I would not wish to use this and say this is the best answer, because
that includes aa lot of variables which I am not competent to answer .
Mr. De Haan . But under today's circumstances and for the present
time, this is a substantially correct approach ?
Mr. REUTER. Yes.
 REFUGEE PROBLEM IN HONG KONG AND MACAO 49

Mr. NISHIMURA . You stated in your statement that you feel that
the resettlement of refugees can be carried out in fishing villages, in
farmlands, and I believeyou said cottage industry.
Mr. REUTER. Yes.
Mr. NISHIMURA. What do you mean by "cottage industry ” ?
Mr. REUTER. I am speaking about small - scale production indus
tries, the handicraft production, which often can be used as a supple
ment for the income of the fishing villager.
Mr. NISHIMURA. Family avocation, or family enterprise ?
Mr. REUTER. Yes ; and this will frequently provide a cash income
to the family which is not available from their other activity which
may be at a pretty much subsistence level.
Mr. NISHIMURA. I see.
Thank you .
Senator HART. Thank you again , Mr. Reuter.
Mr. REUTER. Thank you, sir.
Senator Hart. Our next witness is the president of the Interna
tional Rescue Committee, Mr. vanden Heuvel.
STATEMENT OF WILLIAM J. VANDEN HEUVEL, PRESIDENT, INTER
NATIONAL RESCUE COMMITTEE , INC., NEW YORK , N.Y.; ACCOM
PANIED BY DEANNA CHU

Mr. VANDEN HEUVEL. I would like, if I may, to begin by introduc
ing Deanna Chu, who is the first of the Chinese refugees to arrive in
New York from Hong Kong under the President's emergency pro
gram . She arrived yesterday afternoon.
Senator HART. I welcome you , Miss Chu. I wish the record in
cluded photographs. I am sure that the reception of Chinese in this
country would be stepped up appreciably if they could just see you,
Mr. VANDEN HEUVEL. Speaking as president of the International
Rescue Committee, I would say that Miss Chu's presence here today
is a positive vindication of the validity of the President's program
which has opened the portals of the United States to at least 5,000
Chinese refugees from Hong Kong. Her own case history is an in
teresting one . She has come to joinher family , her mother andher
father and her four sisters who have lived in the United States. They
all escaped from Shanghai in 1949 when the Communists took over
that city. At various times since then they came to the United States.
Miss Chu was deprived of that privilege because she had a tubercular
mark in 1956 when her eligibility came up. She is now, of course,
totally recovered, but unless the program had come along which is
now being discussed, she could have only looked forward to many more
years of separation from her family. Instead of that, she has been
welcomed to the United States and you may have seen the pictures
in today's papers of the family reunion yesterday in New York . It
was an extraordinary scene. She is in Washington today to per
sonally thank the Congress and the Attorney General of the United
States for the program that has made it possible for her to be here.
Senator HART. Well, it goes without saying that this is a very excit
ing and emotionally charged moment. I repeat with much greater
seriousness than perhaps my first commentindicated , the warmest
welcome. I think the International Rescue Committee can feel what,
50 REFUGEE PROBLEM IN HONG KONG AND MACAO

in a sense , the chairman feels. There are a lot of times around here
when I am glad that the Senate is not on television, but this is one time
when I wish very much that every American could be present, and I
think certain attitudes might change.
Mr. VANDEN HEUVEL . Thank you, Senator.
I have not prepared a statement to submit today, principally be
cause, returning only yesterday from Hong Kong, and with the events
that have filled the last 24 hours, I have not had an opportunity to
prepare a written statement, but I have given a considerable amount
of thought to the remarks that I would like to make and I shall re
duce them to written form later.
I would like to begin by making several observations. I have been
to Hong Kong several times prior to 1957, generally in the company
of General Donovan, who had been our Ambassador to Thailand.
This is the first time I have been to Hong Kong as president of the
International Rescue Committee to really study the refugee situation .
As we all consider the Hong Kong refugee problem , I think there are
certain basic points that we should keep in mind. First of all, Hong
Kong has not asked for our assistance. When I say " our, " Í mean
the United States or free world assistance. In other words, the Hong
Kong Government, which has set such an extraordinary example to
the world in dealing with refugee problems, has not to this point found
it necessary to make a direct appeal for the assistance of the nations of
the free world .
Secondly,in considering programs that may affect the Chinese
refugees in Hong Kong, I think we should keep in mind that Hong
Kong itself is ananachronism , that it is a colony in an era of anti
colonialism , that it exists by Communist sufferance. I do not think
there is any doubt in the minds of any of those who are given the re
sponsibility for Hong Kong but that the Chinese Communists could
take it over in a matter of minutes if they so desired .
The fact that it is allowed to continue must mean, it seems to me,
that Hong Kong servesa purpose for many nations. It serves the
purpose of Communist China as perhaps its only and most valuable
outlet to the rest of the world . It serves the extraordinary purpose to
us, to the free world, as being one of the sole sanctuaries being the
sole sanctuary, really — for allowing Chinese refugees to come to free
dom and security. I say this about Hong Kong and its political status
only because I think that theChinese refugee problem allows very little
room for political maneuvering, that the greatest single need for Hong
Kong and its refugees is the unselfish concern and the compassionate
assistance of the nations of the free world .
I will go onestep further and associate myself completely with the
remarks of Bishop Swanstrom . I would emphasize his remark and
perhaps take it somewhat further by saying thatmass migration, in
myjudgment, is not the answer for Hong Kong and it is not the answer
to the Chinese refugee problem .
If the question could have been posed precisely to the authorities in
Hong Kong in the early days of May as to whether or not they could
have permitted or would have permitted the exodus of 50,000 or
60,000 or 70,000 refugees into Hong Kong, there isno doubt in my
mind but that they would have allowed it. But the question that
was posed to the authorities in Hong Kong was not the allowance,
 REFUGEE PROBLEM IN HONG KONG AND MACAO 51


the permission for 70,000 people to come into the crown colony. It
was the fact that the Communist border controls had been totally
relaxed for reasons that no one knew and theprospect they faced was
not of a limited number of refugees coming into the colony, but per
haps 100,000 or 200,000 or perhaps 1 million.
The point that I am making is that what the authorities in Hong
Kong faced and the problem that compelled their direct reply was a
problem without dimensions that were measurable. As we think of
the problem today aided by hindsight, it is altogether possible for us
to say they should have opened up the gates and let these 70,000 people
in. But that is not the problem that they faced on May 1.
I tried, in speaking to British authorities, to Americans, to count
less Chinese refugees themselves, to representatives of the Chinese
community, to answer some questions for myself, such as what was
the crisis and who were the refugees ? Again, I associate myself with
the remarks of Bishop Swanstrom , I would go somewhat further in
saying that these refugees generally speaking numbered around 60,
000. The great majority of them were refugees from the southern
provinces of China. They were peasant farmers principally . Only in
the last days of the exodus was it clearly seen that the refugees were
also coming from thecities. As far as Ican understand, there was no
obvious indication of extensive malnutrition. Very possibly, there
was hunger. But thatis not to say that there wasstarvation. The
refugees who came in, I think , complainedof a variety of things asso
ciated with hunger and they were fed by the Hong Kong authorities.
No one can precisely say what it is that motivated this exodus. In
terms of China, in terms of the Chinese refugee situation, to say that
70,000 people sought asylum in Hong Kong is not to measure a very
large number.
My own feeling is that the exodus was motivated by several things.
First of all, I think it had its roots in the census taken in Hong Kong
last year which revealed that 312 million people now live in that terri
tory , that the potential population explosion - and when Isay poten
tial, I mean that that is just ahead in the next 2 or 3 years — faces Hong
Kong with an automatic increase (without any additional influx of
refugees) of at least 100,000 people a year. In the period of the next
decade, without the additional influx of a single refugee, Hong Kong
will have another million in its population.
Thecensus figures show, for example, that 41 percent of the popula
tion of HongKong is under 15. As this population approaches ma
turity, marries, the population explosion is going to be even greater
than presently anticipated . With this in mind, I think the authorities
probably gave the first real concern to the problem of how many can
you let in and still maintain aa viable colony.
In early April six refugees who had illegally entered the colony
were returned to China. At approximately the same time, as I under
stand it, there was mounting pressure in China itself for relaxed
border controls so that peasants and the residents of southern China
could more freely enter Hong Kong to visit relatives, to buy food,
etc. The indication is that the Chinese Communist government gave
in to this pressure because it cost them nothing to do so and it wasone
means of lessening tensions. So a great number of exit permits were
issued at that time.
52 REFUGEE PROBLEM IN HONG KONG AND MACAO

The rumors spread fast. With the exit permits being issued , with
the possibility that the British were going to close off entrance into
the crown colony except for very limited numbers, a great number
suddenly decided that this was the time to take advantage of an op
portunity to leave. If you described the suffering they brought with
them in terms of spiritual depression , in terms of moral anguish, in
terms of physical ħunger, and I think you would be right in every
respect .
This was an additional cause that drove the refugees to the border.
The Communists have now entered upon a new policy where ashortage
or raw materials has caused the closing of factories in cities like
Canton . The city populations have been compelled to go to the villages
to help with the harvest and the farming. This has been resentedby
both groups, by the villagers who also have too little food and are
not anxious to share what they have with strangers, and by the city
dwellers, who have no desire to becomepeasants in turn and who do not
care to live among strangers.
The one side effect, certainly for those voluntary agencies and the
agencies of the United States that have been concerned with Hong
Kong for a number of years, is that for the first time, the real focus
of attention in this country has been put upon Hong Kong and its
refugee problems. We in the International Rescue Committee had
more calls, for example, of offers of help and assistance from private
American citizens in the first 2 weeks of May concerning the Chinese
refugees than we have had in the past year concerning the Cuban
refugees. There was a real identity with the problem and a tre
mendous urge to help.
I said earlier that the Hong Kong Government, to my knowledge,
has not asked for assistance . I think it is important in assaying this
refugee problem to know that , to know that we are dealing with a
problem that is under the general jurisdiction of the British Govern
ment, to know that we are also dealing with a colony that has managed
to set an unprecedented example of having budget surpluses in 12 of
the last 14 years. The extraordinary example that Hong Kong has
shown of the capability of absorbing a million refugeesis also em
phasized by what I think is a fact, that the greatest resources of Hong
Kong is the refugee. The refugee has enabled the Hong Kong
economy to expand and to be enlarged and to be immensely profit
able in many ways, and at the same time, Hong Kong has given to the N