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Department of State bulletin (Volume v. 22, Apr- Jun 1950) online

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est in these areas, as the President said in his
inaugural address, in —

' This article is based on an address made before the
Foreign Policy Association at New York on Apr. 11, the
text of which was issued as Department of State press
release 341.

. . . making available to peace-loving peoples the bene-
fits of our store of technical knowledge in order to help
tliem realize their aspirations for a better life.

This is a humane purpose, and one consistent
with the highest traditions of American demo-
cratic life. The question of our interests in the
underdeveloped areas in terms of factors vital to
the well-being and security of this country goes
somewhat further.

First, it is obvious that we camiot remain aloof
from the problems of these regions because of the
sheer weight of their hundreds of millions of
people, their material resources, and their stra-
tegic positions. These considerations of geogra-
phy, resources, and population become more co-
gent in the light of the present state of relations
between the Soviet Union and the free world.

Second, since many of the states in the area
under consideration have only recently emerged
from colonial status, we have an interest in assist-
ing them to establish a healthy economy on which
to develop their new political and social institu-
tions, and to maintain their hard-won independ-
ence. In this, we are motivated by considerations
of friendship, but no less by our conviction that
attainment of these conditions is essential to world
stability. "We have no desire to dominate the
countries concerned or to force them into any
"bloc" but only to make it possible for them to
develop independently and along their own lines.

A third factor affecting our interests in this
area arises from the advantage to ourselves and
the other trading nations of the world as well as
to the countries concerned, through their increased
production and participation in world trade. We
have given tangible expression to our interest in
the dependent areas of Africa through the provi-
sion under the European Kecovery Program of
funds for development in the overseas territories
of tlie European powers. This action enables us
to assist in the development of mutually profitable
economic relations between the European coun-
tries and the African non-self-governing terri-

June 26, 7950


tories and at the same time to further the aspira-
tions of the African peoples toward economic

A fourth factor which has accelerated our inter-
est in large parts of the underdeveloped areas has
been our participation in the United Nations and
our commitments under its Charter. The basic
objectives of the international trusteeship system,
as defined in the Charter, call for promotion of
the political, economic, social, and educational
advancement of the inhabitants of the trust terri-
tories and their progressive development as may
be appropriate to the special circumstances of each
territory and its peoples. In addition, the Charter
places upon the administering powers of non-self-
governing territories outside the trusteeship sys-
tem obligations with respect to the advancement
of these territories.

Thus we have a strong national interest in the
underdeveloped areas. It is in our interest that
the peoples and governments of these areas have
the incentive to progress toward the realization
of their aspirations in an ordei'ly manner, in co-
operation with us and the rest of the free world,
and within the framework of the United Nations.

Carrying Out Objectives

How can we help these areas to achieve their ob-
jectives? In the first place, we must consider the
attitudes of the countries themselves and their
ability or willingness to receive our assistance. In
the second place, we must consider what we have
to offer which could be effective for this purpose.

It is an obvious fact that there are limitations
upon assistance available from the United States,
and the picture must be viewed in terms of these
limitations, and on limiting factors other than
material and financial aid.

Apart from this consideration, there are diffi-
culties to be overcome in the form of attitudes on
the part of the countries themselves. The pro-
Soviet elements are, of course, opposed to any
measures calculated to alleviate the distress on
which they thrive. There are also those who fear
that acceptance of external aid would impair their
hard-won sovereignty or mean the return of for-
eign control ; those who fear it would necessitate
involvement in the present world struggle; and
those who do not wish to make the individual and
national effort required both to obtain such aid
and to use it effectively.

We have no desire or intention of imposing our
assistance. As the Secretary of State said in his
speech before the National Press Club, we have a
number of techniques which "we are preparing
to make available if they are wanted, where they
are wanted and under circumstances where they
have a fighting chance to be successful. We will
not do these things for the mere purpose of be-
ing active."

The attitudes of underdeveloped countries to-
ward acceptance of external assistance are condi-

tioned by many factors. Let us look at the back-
ground which gives rise to their reactions.

In the first place, in those countries which have
only recently attained independence, the reaction
to colonialism has produced a strong drive toward
nationalism, which seeks to repudiate all the trap-
pings of the old system. One aspect of colonial-
ism in the minds of these peoples is the capitalist
system, whicli in many cases represented to them
an instrument of exploitation. Although we are
not a colonial power and although neither our
Government nor American business interests has
an imperialist mentality, these countries unfor-
tunately tend to associate us with this mentality
because of our European antecedents and our close
economic and political alinements with the Euro-
pean powers. They feel that we have, through
the European Recovery Program, indicated a
greater interest in European reconstruction than
in the development of these new states.

Another factor is, in some cases, a genuine sus-
picion of our basic motives which has led some to
the conclusion that we are imperialistic. Altru-
ism on the government level, the outpouring of
assistance from one government to another is a
relatively new phenomenon in the world. The
peoples of the underdeveloped areas have known
little of it. Life to them has been a hard struggle.
Outside assistance has often meant debt and ex-
ploitation. In altruism they see an attractive bait,
and they look underneath for the hook.

Moreover, in many countries of the Near East,
national wealth has traditionally been a relatively
fixed quantity, consisting mainly of land holdings
on which the peasant lived in a semifeudal status,
or hoards of gold and precious stones. Wealth,
whether in the hands of the government or of
individuals, was largely acquired by taking from
others, not by productive effort. As a consequence,
the possession of wealth itself became associated
with special privilege and exploitation. It is diffi-
cult for these peoples to visualize a situation in
which a country such as ours could acquire
national wealth without exploiting other nations,
and individuals could acquire wealth based solely
on contributions to a productive effort. It was
one of Prime Minister Nehru's most outstanding
impressions of the United States — as he told his
people after his return to India — that, despite the
large numbers of wealthy people here, all work to
earn their living and to increase this country's

Another important factor in our relations with
the peoples of the undeveloped areas is their at-
titude toward racial or color discrimination in
this country. Instances of such discrimination
appear prominently in their press reports and are,
of course, ably exploited by Communist propa-
gandists, while the peoples of this area are told
little about the real progress which is being made
in this country toward solving this difficult prob-


Deparfment of State Bulletin

Finally, there is a tendency anions these coun-
tries to suspect our aims in the "cold war" and to
believe that we are engaged in a power struggle
in defense of our economic system and our own
national interests. Even those who understand
the true nature of the present world struggle have
a tendency to ignore it or to minimize it in order
to justify remaining aloof to pursue their more
limited national objectives. In other cases, there
is a genuine misconception of the fact that we have
come forward at great sacrifice to defend the
rights of free nations striving to maintain their
independence against Conuiuinist aggression.

Needless to say, these barriers to cooperation
are fully exploited by Soviet propangandists.
How can we counteract these effects^ How can
we surmount these barriers? We believe that our
record will itself dispel any misconceptions. We
take legitimate pride in our long record of inter-
national service, and we can be confident that it
will ultimately dispel any doubts which may exist
among the peoples of the underdeveloped areas
concerning the true nature of our intentions.
Nevertheless, we must not take too much for
granted. We must continue to keep our motiva-
tions beyond reproach, to make the scale of our
effort commensurate with our capabilities, and
with patience and tolerance to seek to "see the other
man's point of view" and overcome the barriers of
doubt and suspicion between us and other peoples.

Developing American Assistance

Secretary Acheson recently pointed out that —

American assistance can be effective when it is the missing
component in a situation which might otherwise be solved,

since we obviously are not in a position to fur-
nish all the components required to bring about
economic development and human betterment.
What can we offer the underdeveloped countries
which will constitute the missing component?
What attributes, services, and facilities of our
American system are exportable as this missing
component ?

It is frequently asserted that our system of po-
litical democracy is an exportable product, and
one which can give substantial aid to the under-
developed areas. Certainly, we feel that the prin-
ciples of democracy provide the best basis for gov-
ernment which has as yet been demonstrated. We
have been gratified with the development of the
Negro republic of Liberia, in West Africa, which
was first established in 1822 through the efforts
of American philanthropic interests and with the
participation of the United States Congress. Its
capital, Monrovia, takes its name from President
Monroe. Its constitution is modeled after ours.
It constitutes a demonstration of the success of a
transplanted ideal. But, in considering democ-
racy as an exportable product, we must avoid any
tendency to confuse the forms of democracy with
its inner substance. We have no intention of mak-

ing American assistance to underdeveloped coun-
tries contingent upon acceptance of our special
brand of democracy, since we recognize that politi-
cal institutions are in part the product of his-
torical and environmental factors inherent in each

Many Americans would say that our free enter-
prise capitalism is the essential ingredient of our
system and the exportable product which can best
solve the economic problems of underdeveloped
areas. It is true that this system has produced
the economic vitality which made possible our re-
markable development. It is also true that it has
worked well elsewhere and should do so generally
wherever there exist industrious people bent on
developing their economic potentialities. How-
ever, conditions in certain countries today have
forced a trend toward economic development
through extensive government ownership and con-
trol. In some of these countries, both local and
foreign private capital is reluctant to come for-
ward because of unsettled local or world condi-
tions, lack of raw materials, skilled labor or
markets, or refuses to sacrifice quick profits from
speculative ventures for participation in longer-
range enterprises. Although we will continue to
encourage free enterprise w-herever its operation is
feasible, we must be aware that it cannot be offered
as a panacea for all economic ills.

Other Americans regard our high standard of
living as the most significant attribute of our sys-
tem. This condition, however, is a result of our
system rather than a cause. We cannot export it
save in terms of products or funds for loans and
investments. We cannot offer the underdevel-
oped areas a quick and easy road to a standard of
living comparable to ours. To cite a few exam-
ples, in comparison with our average population
density of 44 persons per square mile, Egypt has
a density of 2,000 to the square mile in its cul-
tivable areas, and its population of 20 million has
increased about 25 percent during the past decade.
Consequently, the benefits produced by the large-
scale irrigation works which Egypt has carried
out during the last two generations have been
largely absorbed by the corresponding population
increases. In the subcontinomt of India and Pak-
istan, the population is increasing at a rate
of approximately 5 million a year, an increase
which would tax the administrative and material
resources of the most highly developed country,
simply to maintain parity between production and
population increase. In Africa, the soil of large
sections of the continent is among the least pro-
ductive in the world. As agriculture has devel-
oped, the land has rapidly passed from the point
of marginal productivity to the stages of deteri-
oration and soil erosion. Thus, in many of these
areas, the raising of living standards can only be
carried out with enormous effort and labor.

It has been fortunate that, as a byproduct of our
high national income, we have in the postwar

June 26, 1950


period been able to give financial assistance to
other nations. Since Europeans do business
much the way we do, the provision of financial aid
could be expected to assist Europe in restoring to
full productivity a highly developed industrial
plant which already existed. In this case, it was
largely financial aid which provided the missing
component. But our postwar program of aid to
Europe has perhaps given us, and other nations,
too much confidence in the efficacy of financial

Unfortunately, there is no assurance that the
same type of assistance in the underdeveloped na-
tions could achieve a comparable result. We are
discovering that there are limits to what Ameri-
can dollars can do to assist other nations, even
where expenditures are effectively administered.
There are many reasons for this situation: the
lack of basic surveys by competent specialists; the
lack of skilled technicians ; the limitations on in-
ternal financial resources; the deficiencies in local
administrative experience.

In short, since there are so many other missing
components, it is unlikely that direct, large-scale
financial aid would achieve the desired results.

Examples of Cooperative Programs

These factors have been highlighted recently by
a report of the United Nations Economic Survey
Mission to the Near East, headed by Gordon
Clapp, Chairman of the Board of Directors of the
Tennessee Valley Authority. Mr. Clapp con-
cluded that the states of the Near East were, be-
cause of their basic lack of technical skills, admin-
istrative talents, local capital, and other factors,
unable to proceed with the large-scale develop-
ment schemes which have dazzled many whose as-
pirations exceeded their resources. He recom-
mended that, instead of attempting to establish
a Tennessee Valley Authority for the Tigris and
Euphrates or the Jordan, there be undertaken
modest demonstration projects which could give
the countries concerned experience in the balanced
and unified development of a small area in all of
its aspects, through proper use of water resources,
afforestation, terracing, road building, and related
projects. If the Near Eastern peoples can carry
out such small programs effectively, it will give
them confidence and knowledge to proceed with
larger schemes.

I recently visited a village near Tehran in Iran,
where the Near East Foundation (a private
American organization) has been working with
the people demonstrating a project on how to im-
prove living conditions by means of simple and
intelligible methods: the introduction of DDT,
improved seeds and animal breeds, and certain
elementary sanitation measures. In one village,
the Foundation constructed a simple, inexpensive
filter on an experimental basis for the local storage
cisterns for water, which was effective in prevent-

ing the spread of water-borne diseases. It was
not only fully accepted by the village, but dele-
gations from neighboring villages, who came to
observe, went back and installed similar filters
without assistance. The Arabs have a saying
that the brains of the fellahin — the peasant farm-
ers — are in the eyes.

Certainly, even the most scientific farmer is usu-
ally convinced only when he sees for himself that
a favorable change has been introduced. If our
teachings are adjusted to the capacity of the re-
cipient peoples to understand and adopt, they will
accept our methods. Otherwise, our efforts are
unrealistic and useless.

We know that we can be of assistance to other
countries in the field of technology, in which we
have ourselves made such remarkable progress.
Indeed, the export of technical skills to the under-
developed countries is a fundamental purpose of
the President's Point 4 Program. The miracle
of DDT, which reduced the incidence of malaria
in Greece from 2 million cases to 50 thousand
within a few years, has saved from 30 to 60 mil-
lion man work days per year. Our Bureau of
Reclamation has assisted the Government of Cey-
lon in obtaining technical advice in constructing
a large dam. Within a few years, the new acreage
which will be opened up will enable Ceylon to
provide food for half a million additional persons.

But these examples of success through technol-
ogy should not obscure the fact that progress is
more often the results of slow, patient effoi'ts, in
teaching the farmers who reap with a sickle how
to use a scythe, rather than a complex tractor.

Moreover, the effective exportation of technol-
ogy depends upon the availability of trained per-
sonnel. Our programs of foreign assistance have
already drawn heavily upon our resources in
skilled manpower, and the demands of under-
developed countries for technical advice are stead-
ily increasing. We must learn to utilize what we
have to the maximum advantage. We must un-
dertake to develop new resources to meet the grow-
ing needs.

Relating Missing Components With Confidence

Thus, we know that technology is not in itself
enough. There also exist other problems, the
problems of financing and of effective organization
and vision on the part of the governments con-
cerned. Means must be found to attract private
investment capital to these countries if large-scale
development is to be achieved. This will depend
upon the abatement of existing tensions within
this area and further steps by these governments
to create a favorable climate for foreign invest-
ment. The peoples of these countries must be in-
spired with the will to accomplish. They must
be trained to insure that technological contribu-
tions will have a lasting benefit.

It is obvious, then, that the missing component


Department of State Bulletin

diffei-s witli each country and each people and
that it may turn out to be any one or a combina-
tion of the elements which I have mentioned.
But we have still other attributes to offer, attri-
butes which are more of the spirit than those I
have mentioned, attributes which are characteris-
tically American and which will lit all situations.

The first is confidence — the confidence that basic
human aspirations to achieve a larger measure
of human freedom and progress can be realized, a
confidence which we in America have attained by
having in such large measure satisfied those aspira-
tions. In much of the world there is no hope —
there is no confidence in the concept of progress.
The passage of time connotes change, but not neces-
sarily progress. In America, where we have in
a short time seen cities rise from the prairies and
have never suffered a major reverse, we take prog-
ress for granted.

But we must understand that other peoples can
develop only in their own way. Only gradually
can they adopt our ways, even if we can demon-
strate that they are better ways. What we can
give them is the confidence to achieve in their own
way the maximum which their capabilities make
possible. We can offer them the hopes for a better
life, even in the face of enormous odds. And we
can do this best through broadside contacts between
the American people and the peoples of other na-
tions — not alone by the export of dollars or tech-
nicians but through human sympathy, understand-
ing, and moral backing. We can do this through
Americans, imbued with the spirit of disinterested
service, working directly with the peoples of other
countries, at the "peoples" level, and infusing them
with confidence and determination to achieve in
their way what we have achieved in ours.

And there is one further contribution we can
make, which is perhaps the most important of
all, the concept of the inherent dignity of man.
Whether it be through political democi'acy as we
know it or through other systems, this concept is
the fundamental point of difference between our
system and that of totalitarian Kussia. Our con-
viction is that man is not a statistic in a Five-
Year Plan, nor an automaton behind a machine,
nor a tool of foreign policy. It is our conviction
that his daily life should be based on the maximum
possible freedom of action in political, economic,
and spiritual matters.

Statement by John Foster Dulles
on Departure for Far East

[Released to tTie press June 14]

At the request of the President and the Secre-
tary of State, I am going to the Far East to gather
information which may help our nation carry out

its determination to wage peace and to consolidate
and strengthen the free world.

I go first to Korea on the invitation of the Presi-
dent of the Korean Republic. In I'J-iT, and again
in 1948, I had the responsibility in the United
Nations General Assembly of representing the
United States in the sponsorship of the resolu-
tions which led to the reestablishment of Korea's
independence under a representative govermnent
administering the free part of Korea. The peo-
ple of that free area of the south are carrying on
with fortitude despite the fact that the Russian
armies have imposed Soviet conmiunism on the
northern area, cutting off about one-half of the
country and menacing the rest. I am grateful for
this opportunity to be among the courageous Ko-
I'ean people and to meet with their leaders.

On June 20, 1 expect to go from Seoul to Tokyo
for the purpose of conferring with General Mac-
Arthur, William J. Sebald, Lis political adviser,
and with members of the Japanese Government
and with Japanese business, trade-union, and re-
ligious leaders.

I emphasize that my trip is only for the purpose
of getting first-hand information and that I have
no mission to negotiate about anything.

I expect to return to Washington aoout June


Economic Officers in Europe
Hold Meeting at Paris

The Department of State announced on May 23 that it
held an informal meeting of economic officers assigned to
its European missions at Paris from May 22-May 24. Rep-
resentatives of the EGA and the Departments of Treasury,
Commerce, Agriculture, and Labor were present. Edwin
M. Martin, Director of the Office of European Regional
Affairs, Department of State, directed the meeting.

These meetings are held periodically to enable economic
officers at Washington and in Europe to exchange views
on matters of common interest.

Consular Offices

The American consulate general at Shanghai, China
was closed to the public March 15, 1950.

The consulate at Medan, Indonesia was officially opened
to the public March 15, 1950.

The American consulate general at Salisbury, Sonthem

Online LibraryUnited States. Dept. of State. Office of Public CoDepartment of State bulletin (Volume v. 22, Apr- Jun 1950) → online text (page 109 of 116)